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2021-12-31-accounts

Charity registration number 1130567

Company registration number 06849844 (England and Wales)

PRO BONO ECONOMICS

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

AMENDED

PRO BONO ECONOMICS

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Lord Gus O'Donnell - Chair
Dr Rubina Ahmed (Appointed 15 September 2021)
Matthew Brumsen
David Gregson
Edward Humpherson
Belinda Phipps
Sir David Ramsden
Damien Régent
Jenny Scott
Charity number 1130567
Company number 06849844
Registered office The Factory
120 London Road
London
SE1 6LF
Auditor Alliotts LLP
Friary Court
13-21 High Street
Guildford
Surrey
GU1 3DL
Bankers Barclays Bank PLC
Leicester
M60 4EP
Solicitors Weil, Gotshal & Manges LLP
110 Fetter Lane
London
EC4A 1AY

PRO BONO ECONOMICS

CONTENTS

Page
Chair and CEO's Statement 1
Trustees' report 2 - 10
Statement of Trustees' responsibilities 11
Independent auditor's report 12 - 15
Statement of financial activities 16
Balance sheet 17
Statement of cash flows 18
Notes to the financial statements 19 - 30

PRO BONO ECONOMICS

CHAIR AND CEO'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2021

Despite the backdrop of continued Covid-related uncertainty, 2021 was another strong year for Pro Bono Economics. Thanks to the generosity of our supporters and volunteers, we were able to build on the momentum of 2020 – a year in which we significantly expanded our size, reach and influence. We added more new faces to the team, welcomed a new trustee to the board and worked with over 100 charities in total.

Perhaps most visibly, we pushed into new terrain as we delivered the first year of the Law Family Commission on Civil Society. This major undertaking brought us into contact with private, public and social sector experts and practitioners from across the country (and indeed, the globe). We published our own ground-breaking work on the conditions and challenges facing civil society, and we provided a platform for many others to discuss and debate the priorities that government, business and charities should be focusing on in the coming decade. Pleasingly, the worked sparked considerable interest from both the media and policymakers at national and local level. The Commission’s work has already helped to influence government policy, and we are keen to make more progress as we conclude the work in 2022.

The impact advice and analysis work we undertake directly with charities also went from strength to strength in 2021. Indeed, it was in relation to this work that we secured perhaps our most high-profile policy cut through of the year, with PBE analysis being used to help secure more than £1 billion of new funding for two different charity interventions at the Chancellor’s October Budget.

The two new charity services we introduced in 2020, in part in response to the particular challenges of the pandemic, became more permanent and more streamlined in 2021. The resulting suite of services we now offer provides organisations that have varying levels of data ‘maturity’ with the opportunity to benefit from working with us. Our Unlocking Impact workshops were extremely well-received in 2021, helping us spread best practice on economic evaluation across a growing number of organisations. Our Data First Aid programme further broadened our reach, giving us the opportunity to support often hyper-local organisations for whom relatively light touch data help can prove transformational. It also gave us the opportunity to work with more of our large pool of expert volunteers.

The developing cost of living crisis is set to produce new challenges for both the social sector and the wider country in 2022. PBE will continue to play its part by combining direct impact advice and analysis for charities with policy-focused research and insight that covers the activities of the broader sector. We intend to work with more organisations while simultaneously deepening our relationships with existing partners, all in furtherance of our mission to empower the social sector and drive wellbeing improvements across the United Kingdom.

..............................

Lord Gus O'Donnell Chair 23 June 2022 Dated: .........................

..............................

Matt Whittaker CEO Dated: .........................16 June 2022

PRO BONO ECONOMICS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees present their annual report and financial statements for the year ended 31 December 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 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)".

Objectives and activities

The objects of the charity are to:

When setting the objectives and planning the work of the charity for the year, the Trustees confirm that they have completed their duty under section 17 of the Charities Act 2011 with regards to Charity Commission guidance on public benefit.

About Pro Bono Economics

Pro Bono Economics’ (PBE’s) vision is for a United Kingdom with high wellbeing for all. To support this, we use economics to empower the social sector and to increase wellbeing across the UK. We do this through two main routes: our impact advice & analysis and our research & policy.

On the former, we provide impact advice and analysis to individual charities to help them to measure, understand and communicate their impact. On the latter, we produce ‘bigger picture’ analysis and insight that helps to inform and steer the wider policy debate surrounding wellbeing and the social sector.

PRO BONO ECONOMICS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

How we work: Impact advice & analysis

Our in-house and associate experts work alongside our large pool of economist volunteers via three main service lines: Data First Aid; Unlocking Impact workshops; and analysis and advocacy projects.

Delivering support across these three different service lines allows us to work with charities and social sector organisations of all different levels of data ‘maturity’, while embedding a culture and appreciation of impact evaluation across the sector more broadly.

How we work: Research & policy

Our policy research function – introduced in 2020 – aims to uncover new insight and new influence that can complement and amplify our work with individual charities. It is delivered primarily by our in-house team, though we additionally commission work from external providers and experts and work in partnership with other research and policy organisations when appropriate.

Our primary focus in 2021 came in the form of delivering the first half of the two-year Law Family Commission on Civil Society. This major review of conditions, challenges and opportunities in the social sector uses the generous support of the Law Family Charitable Foundation to bring together leading thinkers from the private, public and social sectors to consider how all parts of our political and economic system might work together to “unleash the potential of civil society”. The Commission is due to conclude at the end of 2022.

Outside of the Law Family Commission, our policy research work focuses on drawing the link between developments in the economy and conditions in the social sector. We undertake surveys to better understand the state of the social sector and its evolution over time – especially important during the period of the pandemic. And we serve as economic ‘interpreters’, helping charities and others understand the implications for the social sector of wider developments in economic circumstances and policy.

We support our policy research work through a programme of free, public events. These provide us with an opportunity to showcase our own work and open up debate around issues of importance to wellbeing and the social sector. We invite a diverse range of experts and practitioners to speak on our panels and emphasise interaction with the audience by way of stimulating discussion and understanding.

PRO BONO ECONOMICS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Organisational changes during the year

Both Clare Lombardelli and Andy Haldane stepped down from the PBE board over the course of the year. Andy was appointed on a short-term basis as Head of the government’s Levelling Up Taskforce, covering the period from September 2021 to March 2022. Given PBE’s own work on the levelling up agenda as part of the Law Family Commission on Civil Society, the board and Andy agreed that he should relinquish his formal role within PBE while undertaking such a prominent government position. PBE would like to thank both Andy and Clare for their valuable contribution to the organisation.

Dr Rubina Ahmed joined the board in 2021, adding to our expertise and experience in relation to charity strategy and funding. We will be looking to bring in at least two additional trustees in 2022, ensuring that our board is diverse and brings a variety of skills and views to the organisation.

Within the executive team, we would like to thank our Development Director Susannah Behr, who left at the end of the year. Her replacement is due to be announced in Spring 2022. Recognising the volume of work associated with running the Law Family Commission on Civil Society, we added a second Research & Policy Director to work alongside Anoushka Kenley from the middle of 2021. Helen Barnard joined on a two-year secondment from the Joseph Rowntree Foundation and splits her time between the two organisations.

The team continued to work primarily from home over the course of 2021, though we did make a partial return to the office when regulations allowed. Following the significant expansion of the executive team over the period of the pandemic, we sought larger premises in the second half of the year. A new office space was identified during the year, allowing the move to take place early in 2022. Going forward, we will continue to operate a hybrid working model, with staff having the option of working up to 60% of their time from home.

We undertook our first-ever staff survey in 2021, designed to understand more about our culture and practices and to support improvements in employee engagement and wellbeing. The results were extremely positive, with staff recording an average overall score of 8.1 out of 10 and an average range across different elements of our work of 7.5-9.0. We intend to monitor progress against selected metrics in annual re-runs of the survey, and we are working across the organisation to embed the lessons of the findings.

PRO BONO ECONOMICS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements and performance

Despite a backdrop of continued Covid-related challenge and uncertainty, 2021 was another year of great progress for PBE. Our impact advice and analysis work helped us engage with more than 100 unique charities, while our policy research team published 16 reports and nine shorter blogs in support of the Law Family Commission on Civil Society.

Our work increasingly garnered media coverage – with more than 260 mentions across the trade press and the national news media over the course of the year – helping to generate debate around the role of the social sector and spread the message about the importance of understanding the impact of charity activity. We also secured some very significant policy successes along the way, with the government’s October Budget announcing more than £1 billion of new spending on interventions that can draw a link back to PBE’s work.

Following its relaunch in Summer 2022, we engaged with 18 charities via the Data First Aid programme. It has been extremely well received, with charities and volunteers alike scoring the programme at more than 9 out of 10. We also ran eight Unlocking Impact workshops in 2021, covering 72 individuals and 28 charities (compared with six, 54 and 33 respectively in 2020). Participants scored the sessions at 9.3 out of 10 on average. We further supported 34 charities with analysis and advocacy work in 2021, up from 30 in 2020 and 28 in 2019.

Among the projects we completed, our work for Magic Breakfast was especially notable. The charity offers free breakfasts in schools across the UK that have high proportions of disadvantaged children in attendance. There is already a solid evidence base which shows that, by tackling classroom hunger and improving concentration and behaviour, such interventions can drive up academic performance, lower truancy rates and boost future earnings potentials. Magic Breakfast wanted to understand what that might mean in terms of long-term economic benefits and asked us to help. Our analysis suggested that rolling out free school breakfast provision to all Key Stage 1 pupils in disadvantaged schools across England could generate as much as £2.7 billion in long-term gains.

Our approach to advocacy working evolved over the course of 2021, such that we increasingly worked with collections or alliances of charities expressing an interest in the same thing. In doing so, we hoped to broaden the reach of our work and increase its impact and usefulness.

A particularly successful example of this is the work we undertook for the Children’s Services Funding Alliance (comprising Action for Children, Barnardo’s, National Children’s Bureau, NSPCC and The Children’s Society). Our analysis and comparison of early- and late-intervention children’s services spending in local authorities across England highlighted an apparent false economy, whereby those areas recording the sharpest cuts in the former (e.g. children’s centres, family support services and services for young people) found themselves facing correspondingly sharp statutory requirements for increased funding in the latter (e.g. youth justice services, looked after children and safeguarding) further down the line.

The report prompted an immediate response from a number of councils across England. We were also asked to provide some additional follow-up analysis on behalf of the House of Lords Public Services Committee, with our work featuring prominently in its subsequent review findings. And the Funding Alliance used our analysis to help persuade the government of the need for greater financial support within the sector. As a result, the Chancellor of the Exchequer included £500 million for a new ‘Start for Life’ programme in his October Budget.

In that same Budget speech, the Chancellor directly cited PBE advocacy work as providing the rationale for introducing a major new £560 million ‘Multiply’ skills and employment programme of support for adults with low levels of numeracy. Our work, undertaken on behalf of National Numeracy, highlighted the economic costs associated with failing to tackle the issue. It found that 16 million workers in the UK with low numeracy skills are earning an average of £1,600 a year less than they could if they had just ‘basic’ levels of numeracy.

PRO BONO ECONOMICS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Policy research outputs delivered for the Law Family Commission on Civil Society covered topics across three key themes of valuing the social sector, improving cross-sector working, and unleashing potential within civil society. Highlights included:

We also published a series of summaries of responses to the Commission’s ‘call for evidence’. This call provided the UK’s charities, community groups, social enterprises, volunteers, policymakers, business leaders and academics with the opportunity to submit their thoughts on the future of civil society by responding to a detailed questionnaire covering the Commission’s key topics. To ensure smaller and more under-resourced groups could have their voices heard too, we ran a series of focus groups at which participants were compensated for their time.

The Commission will turn increasingly to developing policy solutions in 2022, but we achieved good progress in this area even in 2021. We engaged with practitioners and policymakers from across the social, public and private sectors, focusing on both national and local approaches to unleashing the potential of civil society. We established especially strong links with officials in DCMS, and worked with them and others to take practical steps towards improving the availability and usability of data that relates to the social sector.

Financial review

We are grateful for the generous support of our funders, with the expansion of PBE’s team and scope that has taken place over the course of 2020 and 2021 only made possible by the arrival of significant new multi-year funding.

Total income for the 2021 stood at £1,483,885 (2020: £1,398,596), drawn from a combination of donations, grants, service fees and gift aid. Restricted income stood at £858,150 (2020: £687,675), with continued funding for specific projects from the Oak Foundation, City Bridge Trust and the Law Family Charitable Foundation.

Income opportunities are generated by our in-house Development team, and we are regulated by the Fundraising Regulator. We do not use a professional fundraiser or commercial participator and have received no complaints from the public in relation to our fundraising. We are grateful for the continued support of several grant making trusts, including the Law Family Charitable Foundation, Oak Foundation, City Bridge Trust, Porticus, and the Golden Bottle Trust, as well as corporate funders such as Weil and FTI Consulting.

Expenditure in 2021 reflected the steady state costs associated with the expansion of the team in 2020 and within the year. Headcount reached 18 by the end of 2021 (2020: 14), and total expenditure came in at £1,385,058 (2020: £860,227).

PRO BONO ECONOMICS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Reserves policy

The net result of our income and expenditure outturns was a net surplus of £98,827 (2020 £538,369). This comprised a £222,137 surplus in restricted funds related to expenditure earmarked for 2022, and a £123,310 deficit in unrestricted funds which was as a result of planned expenditure. The overall picture was in line with our financial strategy for 2021.

Our policy is to maintain free reserves (unrestricted funds minus any fixed and intangible assets) that at any time cover our unrestricted operating expenses for at least three months, with an upper limit of six months. This is set to mitigate the risk of periods of reduced income.

Given our current expenditure profile, that means holding somewhere between £252,000 and £504,000 in free reserves. At the end of 2021 our unrestricted funds stood at £466,109 (2020 £589,419) and free reserves totalled £457,560.

The reserves policy is reviewed annually by the Finance, Audit and Risk Committee (FARCom) and by the Board. Our current reserves reflect the future operating expenditure profile over the course of the financial plan.

The charity maintained restricted reserves of £552,147 (2020 £330,010) at year-end, to be expended in 2022 on the Law Family Commission on Civil Society, Porticus and the Oak Foundation programme. The charity maintained no designated funds.

The Board carries out regular reviews of the charity’s financial performance and reserves position. It considers that the charity has adequate financial reserves to continue to deliver its plans. It has a reasonable expectation that it will have adequate resources to continue to operate for the foreseeable future. The Trustees believe that there are no material uncertainties that call into doubt the charity’s ability to continue its operations. The accounts have therefore been prepared on the basis that the charity is a going concern.

Risk management

The Trustees are responsible for ensuring that the charity has an appropriate system of risk management and controls. They are also responsible for safeguarding the assets of the charity, and for taking reasonable steps to prevent fraud and other irregularities.

Our Finance, Audit and Risk Committee (FARCom) works closely with the executive to identify, manage and mitigate appropriate risks through a risk register, and to report progress to Board meetings. The Trustees have a programme of controls to manage financial risks through management account reporting and consideration of liquidity, cash flows and going concern status.

Reflecting the expansion in our team and PBE’s broadened remit and reach, we continued to strengthen our governance procedures in 2021. The Trustees established a new Policy, Politics and Communications Committee (PolComm) to understand and mitigate any risks that might fall out of our enhanced focus on policy change. The organisation’s risk register was updated to reflect the conclusions of the first PolComm meeting.

The updated risk register was reviewed by FARCom and the Board, with continued special consideration given to the risks associated with Covid-19. The most significant risks related to loss of income, a failure to maintain the run rate required to sustain the larger organisation, a failure to sustain funding for the Research & Policy function beyond the lifetime of the Law Family Commission on Civil Society, and problems with the organisational structure related to the rapid expansion of the charity. Mitigants included a focus on developing new funding networks, an enhanced fundraising role for the CEO and trustees, and the early establishment of a Research & Policy workstream for 2023 against which new funding could be sought.

PRO BONO ECONOMICS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

Future plans

Having achieved so much in 2021, we are keen to build on the obvious momentum within the organisation in 2022. It is, however, likely to be a more challenging year for different reasons. Alongside ongoing pressures associated with Covid-19 and the growing difficulties prompted across the social sector by surging inflation, we need to renew or replace existing sources of funding. Several of our multi-year programmes and donations conclude in 2022, and we have started focusing our attention on renewing or replacing those funding sources to sustain the elevated level of output we have delivered over the past two years.

We are confident in our ability to do that, aided by the recruitment of two key roles early in 2022: a new Director of Development who will oversee an update of our fundraising strategy; and a new Research & Policy Director who will focus on developing and resourcing the policy research programme we intend to deliver in 2023.

Nevertheless, we recognise that we need to be pragmatic in setting out our ambitions for the coming year. Accordingly, our 2022 strategy is underpinned by an assumption of very modest core income growth. Within this steady funding envelope however, we believe there is scope for continued development of the range of ways in which we use economics to empower the social sector and drive wellbeing improvements in the UK.

That means building on the suite of products – Data First Aid, Unlocking Impact workshops, analysis and advocacy, policy research and public events – that we have established over recent years. We want to deepen existing relationships and approaches and explore new opportunities for funding, partnership and activity.

More specifically, we want to run more projects that explicitly help charities to improve their effectiveness: going beyond a cost benefit analysis of a single intervention to better compare the impacts of different approaches. And we want to work more closely with funders too: supporting them to drive better evaluation practices with their grantees. Finally, we’ll also be looking to grow our capacity for being creators of evidence rather than just users of it: exploring new datasets to establish and improve the evidence base that allows us to connect charity outcomes to economic impact .

Structure, governance and management

PBE is a registered charity and a company limited by guarantee and is governed by its memorandum and articles of association. The company was incorporated on 17 March 2009 and registered as a charity on 15 July 2009.

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Lord Gus O'Donnell - Chair Dr Rubina Ahmed Matthew Brumsen David Gregson Andrew Haldane Edward Humpherson Ms C Lombardelli Belinda Phipps Sir David Ramsden Damien Régent Jenny Scott

(Appointed 15 September 2021)

(Resigned 21 October 2021)

(Resigned 15 September 2021)

PRO BONO ECONOMICS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

PBE is governed by a Board of Trustees which meets up to four times a year. Trustees are appointed by Board resolution. In selecting new Trustees, the Board utilises a Nominations Committee to consider the skills, knowledge and experience needed for the effective running of the charity. Since 2017, Trustees are initially appointed for a term of three years and may be reappointed at the annual retirement meeting for up to two further terms. One new Trustee was recruited in 2020, with the Nominations Committee playing a full role in this process.

The Board is responsible for the strategic direction of PBE and for appointing the Chief Executive. Charity staff are accountable to the Trustees through the Chief Executive and carry out the day-to-day operations of the charity in accordance with the policies and procedures approved by the Board.

The Board has five sub-committees:

In 2021, Trustees updated, reviewed and approved the charity’s risk register, delegation of authority, investment, accounting and safeguarding policies.

Prior to their appointment, new Trustees go through an induction process, and are provided with a copy of the Memorandum and Articles of Association, the Trustees’ Annual Report and Financial Statements, together with other relevant information, and are invited to spend time with the charity executive.

PRO BONO ECONOMICS

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £1 in the event of a winding up. Indemnity insurance is held for the Trustees.

The Trustees' report was approved by the Board of Trustees.

..............................

Lord Gus O'Donnell - Chair Chair of Trustees Dated: .........................23 June 2022

PRO BONO ECONOMICS

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees, who are also the directors of Pro Bono Economics for the purpose of company law, 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).

Company Law 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, including the income and expenditure, of the charitable company for that year.

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

The Trustees are responsible for keeping adequate 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 Companies Act 2006. 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.

PRO BONO ECONOMICS

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF PRO BONO ECONOMICS

Opinion

We have audited the financial statements of Pro Bono Economics (the ‘charity’) 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 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:

PRO BONO ECONOMICS

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF PRO BONO ECONOMICS

Responsibilities of Trustees

As explained more fully in the statement of Trustees' responsibilities, the Trustees, who are also the directors of the charity for the purpose 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 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 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

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.

PRO BONO ECONOMICS

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF PRO BONO ECONOMICS

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

PRO BONO ECONOMICS

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF PRO BONO ECONOMICS

Use of our report

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 auditors' 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.

Stephen Meredith BA FCA DChA (Senior Statutory Auditor) for and on behalf of Alliotts LLP

26 June 2022

.........................

Chartered Accountants Statutory Auditor

Friary Court 13-21 High Street Guildford Surrey GU1 3DL

Alliotts LLP 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.

PRO BONO ECONOMICS

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income from:
Donations and legacies
3
562,540
858,150
Charitable activities
4
63,136
-
Investments
5
59
-
Total income
625,735
858,150
Expenditure on:
Raising funds
6
157,671
5,100
Charitable activities
7
591,374
630,913
Total expenditure
749,045
636,013
Gross transfers between
funds
-
-
Net (expenditure)/income for
the year/
Net movement in funds
(123,310)
222,137
Fund balances at 1 January
2021
589,419
330,010
Fund balances at 31
December 2021
466,109
552,147		 Total
Unrestricted
funds
2021
2020
£
£
1,420,690
679,857
63,136
30,850
59
214
1,483,885
710,921
162,771
85,394
1,222,287
401,738
1,385,058
487,132
-
2,070
98,827
225,859
919,429
363,560
1,018,256
589,419		 Restricted
funds
2020
£
687,675
-
-
687,675
-
373,095
373,095
(2,070)
312,510
17,500
330,010		 Total
2020
£
1,367,532
30,850
214
1,398,596
85,394
774,833
860,227
-
538,369
381,060
919,429

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

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

PRO BONO ECONOMICS

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
11
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
Income funds
Restricted funds
16
Unrestricted funds		 2021
£
£
8,549
60,872
1,010,606
1,071,478
(61,771)
1,009,707
1,018,256
552,147
466,109
1,018,256		 2020
£
£
9,153
18,695
1,149,301
1,167,996
(257,720)
910,276
919,429
330,010
589,419
919,429		 2020
£
£
9,153
18,695
1,149,301
1,167,996
(257,720)
910,276
919,429
330,010
589,419
919,429
919,429
330,010
589,419
919,429

The charitable company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021, although an audit has been carried out under section 144 of the Charities Act 2011.

The trustees acknowledge their responsibilities for ensuring that the charitable company keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.

The members have not required the charitable company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on .........................23 June 2022

.............................. Lord Gus O'Donnell - Chair Trustee

Company registration number 06849844

PRO BONO ECONOMICS

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
20
Investing activities
Purchase of tangible fixed assets
Investment income received
Net cash used in 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		 2021
£
£
(134,252)
(4,502)
59
(4,443)
-
(138,695)
1,149,301
1,010,606		 2020
£
£
785,635
(8,419)
214
(8,205)
-
777,430
371,871
1,149,301

PRO BONO ECONOMICS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Pro Bono Economics is a private company limited by guarantee incorporated in England and Wales. The registered office is The Factory, 120 London Road, London, SE1 6LF.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006, 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 financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

The Trustees are confident the charity has the resources to meet its liabilities as they fall due for at least 12 months from date of signing the accounts. Hence, they consider the charity to be a going concern.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Income

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. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

1.5 Expenditure

Expenditure is recognised on the accruals basis. Liabilities are recognised as soon as there is a legal constructive obligation to pay.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings 3 years Computers 3 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

PRO BONO ECONOMICS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

Items are capitalised where the net expenditure value is greater than £500 and the expense is capital by nature.

1.7 Impairment of fixed assets

At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.8 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.

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

PRO BONO ECONOMICS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.11 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

PRO BONO ECONOMICS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

3 Donations and legacies

Unrestricted
Restricted
funds
funds
2021
2021
£
£
Donations and gifts
293,365
-
Grants
250,350
858,150
Donated goods and
services
18,825
-
562,540
858,150
Donations and gifts
Major gifts
270,994
-
General donations
4,169
-
Events income
7,299
-
Gift Aid
10,902
-
293,365
-
Grants receivable for
core activities
Porticus
-
57,500
Golden Bottle Trust
-
-
Law Family Charitable
Foundation
250,000
542,650
Oak Foundation
-
210,500
City Bridge
-
47,500
Huo Family Foundation
-
-
Other
350
-
250,350
858,150		 Total
Unrestricted
funds
2021
2020
£
£
293,365
309,857
1,108,500
330,000
18,825
40,000
1,420,690
679,857
270,994
285,256
4,169
6,591
7,299
7,615
10,902
10,395
293,365
309,857
57,500
25,000
-
5,000
792,650
250,000
210,500
-
47,500
-
-
50,000
350
-
1,108,500
330,000		 Restricted
funds
2020
£
-
687,675
-
687,675
-
-
-
-
-
-
-
542,650
85,025
60,000
-
-
687,675		 Total
2020
£
309,857
1,017,675
40,000
1,367,532
285,256
6,591
7,615
10,395
309,857
25,000
5,000
792,650
85,025
60,000
50,000
-
1,017,675

4 Charitable activities

Supporting Supporting
Charities Charities
2021 2020
£ £
Fees for Services 63,136 30,850

PRO BONO ECONOMICS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

5 Investments

Unrestricted Unrestricted
funds funds
2021 2020
£ £
Interest receivable 59 214
Raising funds
Unrestricted Restricted Total Unrestricted
funds funds funds
2021 2021 2021 2020
£ £ £ £
Fundraising
Other fundraising costs 12,168 - 12,168 129
Staff costs 121,885 5,100 126,985 60,895
Support costs 23,618 - 23,618 24,370
Fundraising 157,671 5,100 162,771 85,394
157,671 5,100 162,771 85,394

6 Raising funds

PRO BONO ECONOMICS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

7 Charitable activities

Supporting
Charities
£
Staff costs
269,081
Consultancy
35,759
Economic associates
48,029
Other service delivery costs
141,377
494,246
Share of support costs (see note 8)
38,068
Share of governance costs (see note
8)
15,195
547,509
Analysis by fund
Unrestricted funds
288,919
Restricted funds
258,590
547,509
For the year ended 31 December 2020
Unrestricted funds
181,462
Restricted funds
130,444
311,906		 Supporting
Charities
£
Staff costs
269,081
Consultancy
35,759
Economic associates
48,029
Other service delivery costs
141,377
494,246
Share of support costs (see note 8)
38,068
Share of governance costs (see note
8)
15,195
547,509
Analysis by fund
Unrestricted funds
288,919
Restricted funds
258,590
547,509
For the year ended 31 December 2020
Unrestricted funds
181,462
Restricted funds
130,444
311,906		 External
Affairs
Research &
Policy
£
£
108,562
316,202
518
44,840
4,853
14,135
5,035
99,323
118,968
474,500
13,969
43,355
6,130
17,856
139,067
535,711
113,567
188,888
25,500
346,823
139,067
535,711
98,233
122,043
15,617
227,034
113,850
349,077		 Total
2021
£
693,845
81,117
67,017
245,735
1,087,714
95,392
39,181
1,222,287
591,374
630,913
1,222,287		 Total
2020
£
406,589
67,049
75,258
86,899
£
269,081
35,759
48,029
141,377
494,246
38,068
15,195
547,509
288,919
258,590
547,509
181,462
130,444
311,906		 £
108,562
518
4,853
5,035
118,968
13,969
6,130
139,067
113,567
25,500
139,067
98,233
15,617
113,850
635,795
102,919
36,119
774,833
401,738
373,095
774,833

Other Service Delivery Costs includes Project Delivery Oak Grants to Cranfield Trust of £70,800 (2020: £6,250) and Pilotlight of £54,800 (2020: £19,625). Additionally, Research & Policy Other Service Delivery Costs includes new expenditure in Research Commissioning of £24,200 (2020: £0), and Research Polling & Focus Groups of £53,160 (2020: £0).

PRO BONO ECONOMICS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

8
Support costs
Staff costs
Depreciation
Rent
Office supplies
Computer running costs
Travelling expenses
Insurance
Bank charges
Other staff costs
HR consultancy
Website development
Audit fees
Accountancy
Legal and professional
Analysed between
Fundraising
Charitable activities		 Support
costs
Governance
costs
£
£
-
-
5,107
-
27,803
-
13,631
-
32,304
-
1,002
-
2,762
-
88
-
20,669
-
8,474
-
-
-
-
5,820
-
4,618
-
35,913
111,840
46,351
16,448
7,170
95,392
39,181
111,840
46,351		 2021Support costs Governance
costs
£
£
£
-
8,956
-
5,107
2,700
-
27,803
50,160
-
13,631
13,078
-
32,304
22,114
-
1,002
43
-
2,762
741
-
88
81
-
20,669
13,374
-
8,474
-
-
-
10,000
-
5,820
-
4,680
4,618
-
947
35,913
-
36,534
158,191
121,247
42,161
23,618
18,328
6,042
134,573
102,919
36,119
158,191
121,247
42,161		 2020
£
8,956
2,700
50,160
13,078
22,114
43
741
81
13,374
-
10,000
4,680
947
36,534
163,408
24,370
139,038
163,408

Governance costs include payments to the auditors of £5,820 (2020- £4,680) for audit fees.

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or were paid expenses during the year.

PRO BONO ECONOMICS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

10 Employees

Number of employees

The average monthly number of employees during the year was:

Number of employees
The average monthly number of employees during the year was:
Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
16
2021
£
702,962
71,467
46,401
820,830		 2020
Number
9
2020
£
408,413
41,168
26,859
476,440
The number of employees whose annual remuneration was £60,000 or more were:
2021 2020
Number Number
£100,000 - £109,999 - 1
£120,000 - £129,999 1 -

The headcount, as well as the wages and salary expense, increased during the latter half of 2020 with the addition of a new Research and Policy team and two new Director roles.

PRO BONO ECONOMICS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

11
Tangible fixed assets
Fixtures and
fittings
Computers
£
£
Cost
At 1 January 2021
2,919
20,045
Additions
-
4,502
At 31 December 2021
2,919
24,547
Depreciation and impairment
At 1 January 2021
2,553
11,258
Depreciation charged in the year
322
4,784
At 31 December 2021
2,875
16,042
Carrying amount
At 31 December 2021
44
8,505
At 31 December 2020
366
8,787
12
Debtors
2021
Amounts falling due within one year:
£
Trade debtors
1,000
Prepayments and accrued income
59,872
60,872
13
Creditors: amounts falling due within one year
2021
Notes
£
Other taxation and social security
20,371
Deferred income
14
-
Trade creditors
16,468
Accruals
24,932
61,771
14
Deferred income
2021
£
Arising from Oak Foundation deferred income
-		 Total
£
22,964
4,502
27,466
13,811
5,106
18,917
8,549
9,153
2020
£
-
18,695
18,695
2020
£
18,547
210,500
7,534
21,139
257,720
2020
£
210,500

Arising from Oak Foundation deferred income

PRO BONO ECONOMICS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

14 Deferred income

Deferred income (Continued)
2021 2020
£ £
Deferred income is included within:
Current liabilities - 210,500
Movements in the year:
Deferred income at 1 January 2021 210,500 -
(Released) from/charged to previous periods (210,500) 210,500
Deferred income at 31 December 2021 - 210,500

15 Retirement benefit schemes

Defined contribution schemes

The charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independently administered fund.

The charge to the SOFA in respect of defined contribution schemes was £46,401 (2020 - £26,859).

16 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 January 2020 resources expended 1 January 2021 resources expended 31 December
2021
£ £ £ £ £ £ £
The Oak
Foundation 17,500 85,025 (70,445) 32,080 210,500 (220,244) 22,336
City Bridge - 60,000 (60,000) - 47,500 (43,333) 4,167
The Law
Family
Charitable
Trust - 542,650 (244,720) 297,930 542,650 (371,983) 468,597
Porticus - - - - 57,500 (453) 57,047
17,500 687,675 (375,165) 330,010 858,150 (636,013) 552,147

The Oak Foundation delivers support to a portfolio of homelessness charities. The grant received was partially spent during the year with the remaining balance to be spent in 2022.

The City Bridge Trust project supports charities providing services in London. The grant received was largely spent within the year. Further funding was carried into 2022 as restricted reserves.

The Law Family Commission on Civil Society is a programme of ground-breaking research into how the potential of civil society can be unleashed. The grant received was intended to be spent during 2020 and the first six months of 2021. The remaining funds were carried into 2022 as restricted reserves.

PRO BONO ECONOMICS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

17
Analysis of net assets between funds
Unrestricted
Restricted
2021
2021
£
£
Fund balances at 31
December 2021 are
represented by:
Tangible assets
8,549
-
Current assets/(liabilities)
457,560
552,147
466,109
552,147		 Total
Unrestricted
2021
2020
£
£
8,549
9,153
1,009,707
580,266
1,018,256
589,419		 Total
Unrestricted
2021
2020
£
£
8,549
9,153
1,009,707
580,266
1,018,256
589,419		 Restricted
2020
£
-
330,010
330,010		 Total
2020
£
9,153
910,276
2020
£
9,153
580,266
589,419
919,429

18 Operating lease commitments

At the reporting end date the charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2021 2020
£ £
Within one year 15,915 23,147

19 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel (defined as Chief Executive Officer, Operations and Finance Director, Director of Development, Director of Services, Research and Policy Director and External Affairs Director) is as follows.

2021 2020
£ £
Aggregate compensation 432,746 346,891

There were no other disclosable related party transactions during the year (2020 - none).

PRO BONO ECONOMICS

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

20
Cash generated from operations
2021
£
Surplus for the year
98,827
Adjustments for:
Investment income recognised in statement of financial activities
(59)
Depreciation and impairment of tangible fixed assets
5,107
Movements in working capital:
(Increase)/decrease in debtors
(42,178)
Increase in creditors
14,551
(Decrease)/increase in deferred income
(210,500)
Cash (absorbed by)/generated from operations
(134,252)
21
Analysis of changes in net funds
The charity had no debt during the year.		 20
Cash generated from operations
2021
£
Surplus for the year
98,827
Adjustments for:
Investment income recognised in statement of financial activities
(59)
Depreciation and impairment of tangible fixed assets
5,107
Movements in working capital:
(Increase)/decrease in debtors
(42,178)
Increase in creditors
14,551
(Decrease)/increase in deferred income
(210,500)
Cash (absorbed by)/generated from operations
(134,252)
21
Analysis of changes in net funds
The charity had no debt during the year.		 2020
£
538,369
(214)
2,700
11,808
22,472
210,500
785,635