Charlty règlstr8tlon numbèr 1130567 Compary r•glstratlon numbor 06849844 (England and Wales) PRO BONO ECONOMICS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022
PRO BONO ECONOMICS LEGAL AND ADMINISTRATIVE INFORMATION Tntst0•5 Lord Gu$ O'Donnell- Chair Dr Rubina Ahmed Matthew Brurnsers Oavid Gregson Edward HurnpheN8on Belinda Phipps Damièn Régènt Jenny Scott Michele Oliver IAppoint•d 13 March 2023) Charity numb•r 1130567 Company numb•r 06849844 Roglstsr•d offi¢• The Factory 120 London Road London SE16LF Auditor Alli0tt5 LLP Friary Court 1&21 High Str¢*t Guildford Surrey GU13DL Bankor¥ Bardays Bank PLC Leicester M60 4EP Soli¢llorn Weil, Gotshal & Manges LLP 110 Fèttèr Lane London EC4A 1AY
PRO BONO ECONOMICS CONTENTS Page Chair and CEO'S Statement Trustees. report 2-10 Slalgment of Trustees. responsibiliti0$ 11 Independent au¢Jilorfs report 12-15 Statement of ffinanclal actlvhitrs 18 Balan sheet 17 ststem8nt ol cash Ilows 18 Notes to the financial stalernents 19-29
PRO BONO ECONOMICS CHAIR AND CEO'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022 2022 began wilh the drdlling down of pandemic reslriction5 and hope that morts of our lives might bo r&luming to normal, but the outbreak ol war in Europe quickly changed that VW4 and prompted a cost of living crisis that has affected millions across the UK. Against the backdrop of another drfficuk year for the country, charitie5 and comtnunity group5 wefe gnc£ again Ihoie at every tum. PBE likls• stepped up, both by helping more ol the soaal sector to understand and improve its èffe¢tivenoss and-to an increasing degree- by advising those policymakers and practitioners focused on supporting the nalioii'5 wellbeing. To meet as much charity demand for PBE services as possible-from our deepdive impact evaluation lo our light-touch volunt&r economist support-we continued to roll out the see delivery improvement programme started in 2020. As a rè8uIt. we're proud to say that PBE delivèred four times as many serviceg for charities in 2022 as il did in 2019- a quadrupling that has been achieved without gny meoningful chango in the undedying budget. Atongside the very direct need presented by individual organisation5, we saw growiTrJ uigency fot an ambibou$ vision for the changes that the social sector requires to fvlly meet its potential. Through both our research into Ihe state of the social sector and our work in support of the Law Family Commission on Civil Society's ambitious programme of policy development, we helped to elevate critical issues- like donor Irends. energy costs and workforce bumout- to national debate. Among PBE'S key achievements in 2022 was th6 sacvring of a govemment pledge to develop a new'civil society 58tellrtè account'_ in line with the recommendation made by the Law Famity Commission- to improve understanding of the 5E8 and shap6 of the social Sector in thè UK. Our work with Nottingham Trent Univer5ty on estsbli5hing a major new quarterty'barometerf survey marked a further big step forward in our attempts to build the sector's evidence base and contributed directty to the govemment's dec3sion to allo& £130 rnillion to support the sector in meeting demand and improving its energy efficiency. Our collaboration with Nottingham Trent fomad part a growing suite of partnerships, a shrfl whith we hope to sustain in the coming years. From research bodies like UCL and the Economics Stat15tics Centre of Excellen¢ and the Anna Frej Centre, through to other chartties like Pilotlight and funders like lrnpact100 London, the breadth and depth ol the partnerships we've esiablished this year stsnd us in great stead to accelerate our Impact in 2023. Wè'd likè to extend our sincere thanks to the partners we worked with in 2022. and to the many generous supp)rt8rs who h•lp•d us further d•v8lop atKI continue to secure positive change across so mary areas. Thank5 also 90 to the PBE staff and board of tmstees for their dedicat)n and hard work. Above all. we're grateful lo the htjndreds of organisations and individuals across the social sector that eroaged with PBE last year and delivered brilliant impact up and dthvn the county on a daily basis. Lord Gu$ O'Donn•ll Chair Whittaktr CEO
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees present IheSr annu81 report and financial slalemenls for the year ended 31 December 2022. The financial statements have been prepared in accordance with the accounting poli¢ies set out In note 1 to the financial ststements and comply wlth the chaiity'$ goveming do¢ument, the Companies A¢t 20 and "Accounting and Reporb'ng by Charttiès.. Slalement of R8eommended Practice applKable to charitie8 preparing their accounts in accordants with the Finanaal Reporting Standard applicable in the UK and Republic of Ireland IFRS 102} l•ffèctiV8 1 January 20191.. The objects of the thaiity are to-. promgte the gffiuency and effectiveness of charities and the effective us¢ of tharitable s0rS for the bÈnèfrt of the public, in particular by providing anatytical economic assistance and athiicè to the charitable sector advance the edur2tion of the public in the United Kingdom of Great Britain and Northem Ireland in subjects relating to ovil society, 8fKI for that purpose to.. conduct or commission research into civil socEty', coordinate. deliver, organise and assist in the provision of eoursas of èducation, conftrènces, seminars, lectures and other educational events and activities ralatèd to u¥il soaety., and support all fomis of rAvil socS2ty organlsalons. hen setting the objectives and planning thè work of thè charity for thè y88r, the Trustees confirm that they have copIeted their duty under section 17 of Ihe Charthes Au 2011 with regards to Charty Commission widance on public benefft. Pro Bono Economics, IP8E's} vision is for 8 United Kingdom th high wellbeing for 311_ To support this. we use econornic5 to errpower the social sector and to increas• wèllbèing 8UOSS the UK. We do this through main rout85'. our impact 8dvice & anatysis and our resèarch & policy work. On the forrner, we provide impact adv 4nd analy51$ 10 indivu81 chaiilies to help them to measlre, understsnd and communicate their impact. On Ihe lattar, wè produeA 'biggèr pidure, anatyshs and ins'MJht that helps to infomi and 51eer the wider policy debate surrounding wèlbèing and thè social sector.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT> (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 OUT irbhouse and assoaate experts wtsrk alongsidè our18rg8 pool of econornist volunteers via three main servi lines.. Data FirstAid', Unlocking ImpaGI workshops., and anatysis and advocacy projects. Dats First Aid 1$ our tsst-track volunleer offer. 11 provides social sector organisations of any site with the opportunity to be rnatched wilh one of our volunteer economists lo accèss support on any number of 'Ih1 touch, data tasks. Our Unlocking lrnpact workshops are haif-day inleractNe sessions in which charrties a introduced lo e principltts and practicalrties of economic evaluation. They allow us to build capaaty across a broad range of otganisalions, while also preparing some to take the next stèp towards a full analysis or 8dvoca¢y project. Having attend8d the workshop, charits"85 that feel ready Io go further can follow up with bespoke one-twne sessions with one of our expert enOMI5t3. developing 8 deeper understanding of what impact might mean in thèir own context. Our anatysis and advocacy project5 wovide focused support designed to help charities understand thèir impact and th8ir effectivenes5. When undertaking an analysis project, we provide detailed 8valuations of the outcotnes and impacts associated wth an indivual charity's interventions. Vvhen undertakn'ng an advocacy projed. we locus 3S on the specifics of an individual charrty's programme of work and more on the ¢ondilions and Issues relating to su§ors or policy themes. Delivèring support across these three different See lines allows us to work with chaiitr85 and soaal sedor organisations of all differ8nt levels of daia 'maturity'. while embedding a culture and appreciakn.tsn of imp8Ct 8valL4ation auoss the sector more broadly. In doing so, we highlight and support eff$¢bv¢ness in organisalions focused r>n delivering wellbeing improvements for individuals across the UK. Our policy research function aims to unc4)ver new insight and new influence that can complement and ampl our work with individual ch8ri1ies. 11 is delivered primarily by our in-hDus• t8am, though w8 additionally commission work from external yoviders and experts and work in partnership with other research and policy organisations when appioprial8. Our primary fo¢us in 2022 came in the fomi of delsvering the second half of the two-yèar Law Family Commission on Civil Society. This major ieview of condrtions. challenges and opportunities in the social s•ctoc usès th8 generous support of th8 Law Farnily Charitable Foundation to bring together leading Ihinkers and prnditioners from the pri¥at•, public and Social $8cIor5 to C4)nsidw how all parts of our political and economic syst8m might work together to'unleash the polenth'al of civil swe. The Commission concluded in January 2023. Outsidè of thè Law Famity Commission, our policy research worf( focuses on drawing th• link b•{w dévèlopments in the economy and conditions in the social sector. We undertake surveys to better understsnd the 513le of the social sector and its evolution ov8r time - espeoally itnportant during the tu911 prornpled by the challenges of pandemic and cost of Iwing crisis. And we serve as ecorbtsmi¢ 'interpr8ters'. helping chanties and others understsnd the implications for the soaal sector of wider d¢v$lopments in ewnornic circurnslances and policy. support our policy 18search work through a programme of free. public events. These provide us with an opportunty lo show¢ase our ¢)wn work and open up debate around issues of importance to wellbeing and th• $oaal Sector. We invrte a diverse range of experts and practitioners to speak on our panels and emF4)asise interaction with the audience by way of stimulating discussion and undèrstandin9.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 There were no tnjstee changes in 2022, but we laid the groUnOrk fow a planned expansion and refresh in 2023 by reviewing potential skills, experion¢o$ and perspectives gaps within the current board, with an nphaSS on trustee diversity. Following thè conclusion of his time working within government in the earfy part of 2022. we were also dalighled to appoint the organisation's co-founder Andy Haldane lo a new patron poth'on as PBE Pr8sid•nt. After thr8• yèars of substsntial growth, in which PBE'S executive t•am grew from 7 to 18 staff members, 2022 wag a year of bedding in. It was an important year for recruiting the skills we need to PLrt the organisation On a ustainablg financial and operatsonal footing and ensuring th our pr$$8$ and infrastru¢ture allow us lo be as impaclful as possible. To this end, wè add•d Al•x Bennett as Develwmenl Director and Jansev Jemal as Research & Poliq Director. with )th being tasked with helping to establish the direction and resourang of the or9anisation's work wogramme bgyon¢J the condusion of the Law Family Commlsslon. W8 made further steps to improve our indusivity, refining our recrLJttment pro¢ess&s. in¢rÈasing the accessibilrty of our conlenl. bringing in a paid intern to improve the pipeline of diverse tslent intr) the think rank and charily $e¢tor. and estsblishing a new staff-led Diversity, Equity arkl Indusion Committee. We likewise made improvements to how w• undertake project rnanagemenl, quality assurance. comrnissioning ontracts. internal communications and much more. to ensurè that our processes are appropriate for our inc¥ea5ed size. And it was a critical year for imprIng th$ piodurtivily of our ServiS. We ended 2022 having qldrUp1ed our tharity impact engagement relative to what W8 deSivered in 2019. all within broadty the same core lev•1 of expenditure. Having played a central role in many of thÈso improvernen15. we were sorry lo lose Director of SeNces Malinda Kunjasich at the end of 2022 as she movgd lo Australia. Vve were pleased however to be able to promote Mfill Dè La Cruz to Head of Projeci Manag•m8nt to take forward thi5 Irnportanl work. Follcw4ing its axpansion in over the course of the pandemiq the team moved into a new Offi spa¢e at the start ol the year. Once settled in, we implemented a new hybrhl workiro rnodel. wth staff having the option of working up to 80¥0 oftheir from home.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2022 PBE aelivtty reached naw highs in 2022. We èngaged wtth 178 charities and other social sector organisations through our Servi5- 8 74% year-on-year increase, And we delivered 380A more 5ervice5 than in 2021 - as the Unlocking Impacl workshops and Dats First Aid services which we developed over the pandemic really hit their stride. The numbèr of volunteer 8conomist9 on our b(x)ks rèady to h8lp social sector ros& to 921. as we found nèw ways of identifying pre(¥sely the right kind of volunteer S.115 charities need froffl their econornists. And the ways in which we make an irnpact for the organisations we work with and the sector as 3 whole on the national stag6 also accelerated. Vve undertook a st•p-change in our publications and commentary, with our mentions In the media reaching a new high at 268 pieces of TV, radio, paper and online news. Our rebtionships wth polwmakers al$0 sky-rocketed so that not a week went by in 2022 without engagement with multipl8 poltcymakèrs in nab.onal or local government. or in parliament. 2022 was also a year of partnerships for PBE. Working alongside other swal sector organisations ha5 alway5 been a core part of our approach. and the way we understand and value the expertise in the seGtOf is of tre things we know many organisations appreciate us for. However. in 2022. we went further than over b8f018 in th? range of organi5alj.ons we have partnerships with and Ihe depth with which we look those relats'cnship¥. The addition of formal partnerships wrth universibes and research instllulions. has allowed us to wnlinue increasin9 the rigour with which we undertake our work. so that our outputs Temain of the highest quality possible. Meanwhile, our collaborations wth oth8r organisations in the sector have alk)wed us to deepen our neorkS throughout the year. Against a challenging backdrop for the charity sector, we were especialty pleased to partner wlh the National VCSE Data and Insights Observatory at Nottingham Trent Univer&ly to produce one of ihe biggest social sector trackers in years. This VCSE Sector Barometer was designed in collat)oration wth 14 membership organisations at the Department for Culture. Media and Sport IDCMS}. and we worked with 65 secttsr mernbership and n6Ork organisalions in total to distribute the suNey. The first of these quarterly survey5 receNed responses from nearfy 800 organisalions nationally and was published in Dember 2022. Among a raft of findings. the survey showed that Iwo-filths140%1 of charities had experienced a rise in energy bills, while half149Yol expected demaThJ for their servic88 in the cA)rniry fnonlhs Its exceed their ability to meet It. The ffindings made headline national news. induding an exdusive televi519n report on the BBC News at Ten. In March 2023, these efforts paid off in a subslanlial way. when the UK govemment made £130 millk)n available to charities in tranches - through the Spring Budget and Domiant Assets Scheme - to help them meet demand and improve en&rgy 8ffiaency. The VCSE Sector Barometer provided the essential evidence base to make the case to and within govemment for extra support for charities. The importance of the VCSE Sector Barometer stems in no $rn811 part from thè pauoty of Offal statistics on thè Social sector. To rectify that, throughout 2022 we partnered WTth the Econom5 Stat15tics Centre of Exce118ncè IESCOEI to develop new methodologies for measuring charrty sector productivty and tharty sethr value. 11 progress is made toward5 adoption of these melhodologies, it would be much easier for the social $e(oT to prove its value, and for il to have greater impact in the long-term, as it could make evidencerybased decAsions. One of the major strands of this work is the case we have been making since 2020 that a civil soaety satellite account- which would publish rggular stalistiGs on the stalg of ovil $o¢iety- is an essential step to ensuie Ihè sector is property valued. In February 2022, thè govemment committed to dolivering suth a satellite account in its L&velling Up Whtite Paper. In the aLJiumn, w¥ weie commis8ioned by DCMS to dèliver 8 study on the feasibility of a avil society Satlite aGcounl in partnership with ESCOE. PBE has a strong record of supporting charities thal work with disadvantaged children and young people. Wth significant pressures on schools struggling with increasing costs and the posl-pandemic criss in young peoe'S mental health, this remained a priority for us throughout 2022. We diredy supported more than 20 individual charities and other soual sector organisations focused on childre and young people ihrough our advice and analysis services, and our Data FirstAid. But Ihis year we went further. by undertaking a major piece of work focused on supporting children at risk of exdusion from school and providin9 Vital independenl eC0MiC analysis lo support case building in the sector.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT} (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 th the support of the Porticus Foundation. we pathered wSlh the Eviden¢e Based Practu Unit IEBPUI al the Anna FreLJ Centre and UCL, to èxplore and te51 new way5 to improve the mentsl heatth and wèllbèing of young pètsple aged 11>16 - wf(h a focus on how children and youro people al risk of exdusion frofn sGhool might be id8ntffi6d and 5UPPOrted. Using dats from the National Lottery Community Fund's Headstart programme, the anatysis undertaken in this partnership has produced invaluable insight on the number of young people at different levels ol risk of permanent school exdusion and tha differences in wellbeing betsveen those at th highest risk and those at the low•st risk. Using data from the National Lottery Using d8ta from Ihe National Lottery Comrnunity Fund's Headstart programme. the analysi5 undertaken in this partnership has produced invaluable insight on the number of young people at different levels of risk of permanent sthool exdusion and the drflerences in wellbeing befvleen thoso at the highest risk and those at the lowest risk. Additionally, we undertook for the 8e(x)nd sucGe$sive year - anaty5is on the state of England's children's seN1$ for a coalition of NSPCC, Action for Children. Barnardo's, Save the Children and The Children's Society. Our 2021 work helped the ¢oalilion rnake thè ¢ase for over £500 million in investrnent frorn governrnent. and the 2022 work wa$ again wo11 r¢ceivgd. ElsewhEre, PBE helped the Artis Foundation evidence the beneffits of arts education in schools and in thè process Sere significant new fvnding for trialling a new delivery model-, helped Our fime and Tavistock Relations rnake the case for supporting parents, mental health to help children,. and provided the evKlenTr for th¢ PTI 19 rnake the case for addilional CPD for teachers. ongsid8 our lone5tablished work with charities, we spent time in 2022 developing new ways to pptrrt funders and businesse5 in haviro more social impact. We worked wth s&v8ral funders- itxluding Impact 100 London - to provide cu5tomised Unlod(ing Impact w0$hopS and support their benefiaary chanties to fvrther understsnd their impact, and to develop their own measurement and impact frameworks. We continued our efforts for spre•Jing best practice wthin the economics profession too. HM Treasury guidan¢ on Ihe use of wellbeing measurement in px)licy appraisal and evaluatiDn- intioduc8d in 2021 Is a powerful tool, bul one that is under-used across Whrtehall. As part of the Porticus Foundation's IntegratED partnership. we worked with the hat Works Centre for Wellbeing and State ol Lrfe to spread understanding and use of the appioach. Specrfically. we delivered four short online IntuCtOry sessions arKI two hadaY in4epth workshops, reaching more than 250 people. Feedback was very supportivè of the SessicS - with 92°/u of partiopants repotbng they were saiisffied or very satisfied with the training - and att•nd8•s stating that th•y lèft f8eling "mobvated lo bring more wellbeing valuations to Itheirl work in the future". inancial review ar& grateful foi Ihe gengrou$ support of our lunders. with the expansion of PBE'S team and scope that ha$ taken pla¢e over the ¢our3e of recent yeaTr onty nwde possible by Ihe arrival of signrficant new muy88r funding. Total incomé for 2022 stood al £982,044 12021.. £1,483,885), drawn from a combination of donations, grants, service fees and gift aid. Restricted income stood at £301,600 12021.. £858,150), wrth continued fund'ng for speafjc projects from the Oak Foundation, Porticus. City Bridge Trust and the Law Family Charrtable Foundation. The reduction in irwme reflects the natura of the Commission thjnding from the Law Famity Charitable Foundation. which was receivad ovèr two years 12020-20211. with expenditure split over three years 1202tk20221. Income opportvnilies are generated by our in-house Development team. and we are regulated by the Fundraising Regulator. We do not use a professional fundraiser or comm•roal participatr)r and have rtrceived no complaints frorn the public in relalitin to our fundraising. We are grateful for the continued support of several grant making trusts, induding the Law Family Charitable Ftrundation. 08k Foundation, City Bridge Trust, Porticus and the Golden Bottle Trust, as well as corporate funders sud) as Wéil. Gotsh81 & Manges LLP, OakNorth Bank PLC and FTI Consulting. Expenditure in 2022 flected the steady st81& ¢osts a$$ticiated with the expansion of the team and the Ongn9 worft of ihe Commission on Civil Society. H¢adcounl rea¢hed 19 in 202212021.. 181, and total expendre came in at £1,568,79712021'. £1.385,058}.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 The net result of our income and expenditure outturns was a deficit of £58S.753. This comprised a £422,025 d•ficit in restricted actMti•s {ralating to a d•liberate drawdown of funds received in 2021 for the Law Family Commission for Civil Soaely to ¢over continued activrty through0 2022} and a £164,728 deft in unrestricted aclivibes Ifgflecting a combinatK)n of planned re$$N¢ drawdown and slightty Iowgr than budgated irtoma from trusts and foundations as we built up our fundraising cap8bilityl. Our policy is to tnaintain fi89 re58tves {unrestricted funds minus any fix8d and intangible assets) that at any tlrng ¢over our unrestricted opering expenses for al least Ihree months. with an upper limit of six months. This is set to mrtige tho risk of peiiods of rgductrd income. Given our current expenditure proffile, that means holding sornewhere betsveen £450.000 and £910,000 in free reseNes. At the end of 2022 our free reserves totalled £301,381. This under-shoot relative to our reserve5 policy largely refiected a change in our expenditure profile from the start of 2023 following the Conclusi of the Law Family Commission on Civil Soci?ty. In agreeing the organisats"on's budget for 2023, the board was satisfied that th• funding pipéline was sufficientty woll-stocked to &nsure that tha organisth'on would return within the reserves policy aady in 2023. The reserve5 policy is reviewed annually by the Finance. Audit and Risk Committee {FARComl and by the Board. Our current reserves reflect the future operating expenditure profile over the ¢L)ursg ¢)f tho finawal plan. The charity rnaintained restricted reserves of £130.122 at yearnd. to be expended in 2023 on the Law Family Commi55ir)n on Civil Society, City Brldge Trust, Porticus and the Oak Foundation progtamrne. The charity maintained no designated funds. The Board carries out regular reviews of the charity's financaal performance and reserves posilion. It ¢onsiders that the charity has adequate finanryal reserves to continue to delNer its plans. It has a i&¥$onaLl$ ¢xp¢tation that it will have adequate reSoUrS to continue to operate for the foreseeable fijture. The Trustees believe that there are no material uncertainties trat call into doubl the tharivs ability lo continue ils operations. The accounts have therefore been Pared on the basis that the charity a g)in9 concern. The Trustees are resporksible for ensuring ihat the charity ha5 an appropriate system of risk rn8nagem8nt 8nd controls. They are also responsible for safegu8rding thg assets of the charity. and fortsking reasonaNe steps to prevent fraud and other irregularities. Our Finance. Audit and Risk Cornrnittee IFARComl works closely with the executivgto identify. manag9 and mitigate appropriate risks through a risk register. and lo report progress to Board meeb"ngs. The Trust•os have a programme of contro15 to manage financial risks thiough management )Unt rewting and consideration of liquidity, cash flows and going concern status. Rellecting th& difficult economic contexi and tho imminènt C(dUs1on of tha Law Family CommiOn on Civil Souety and the assoaated funding the key issues identrfied in the risk register related to the potential loss of income or difficultiés with resetves. Tha potènb.al foi a loss of momentum or cohesion as the oiganisation transitioned frorn one phase lo another was also consldérèd. Mrtigants includèd tha appntment of the new Director of Development and an addition81 Research and Policy Director wf(h 8 dèliberatè foojs on navw81ing the transition and establishing p05t-Comrnission prograrnrnes ofwork and income.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 utLTrr With the conduslon of the Law Farnily Commission on Civil Soaety al the start of 2023, PBE enters a new phasè of development.. one th81 builds on the progress we've made over recent years and takès us into exating new territory. The warm reception enjoyed by many oflhe Commission'$ fe¢ommendab"on5- from policymakers, corporate leaders and those in the soaal sector rtsetf- provides us with 8 rJear sel of research and policy priorit$ lo take forward. Some we v4ill advance ourselve5'. olheis wll diaw on partner5 old and new. And in some instances we'll be handing the tllom8nlum over entirely lo those best-placed to cornplete the jouiney from report to reality. Vve're likewise planning on fvrther str6ngth&ning the dirsct support WÉ piovide lo the social sector via our pro bono economic seThices. Simply by scaling the approach that we have developed over Ihe past few years and that we know woths so w811, we want to help more ofthe organisation5 that seek our support with measuring. undèrstanding and communicating their impact. But we want to broaden our audience loo, developing our support for funders and. increasingty. for those private seclor firms that want to make a positive soual dhyerence lo the world around thom- helping embed an understanding of wellbeing, social good and economic evaluation across a significantly wider stakeholder group. In support of all of this, we'll be pioviding new insight and analysis tsn the condition of the social sector and on the unique role it can play in tackling low wellbeing aeross thè UK_ By h81ping the sedor understand itself and the backdrop against which it operatés, and by helping policytllakers and practitioner5 know more about what works in this space and where and how strategic investment Gqn have most irnpact, we hope to further our ambition of unleashing the potential of civil soaety for the benefit of 811. To enter this new phase and broaden our impact, we be actwety loong lo strengthen our support base. Much oflh& growth we have se¢>Jred in recent years has been achieved thanks to the inueased generosty of a long*stablished pool of supportèrs. Now w8 want to deepen that pool.. growing and diversfying our funding so that we can continue to recruit and rèt8in the best tslent, develop a practical and impacthjl mediunFtenn agenda, and remain responsive to thè changing economic and political context. we' aided in that context by the Law Family Charitable Foundation's generous provision of 8 malth-fvnding pot, with new donations over the next three years being matched pound lor pound. ènt PBE is a registered charity and a company limit8d by guai3nt8e and 1$ govemed by its memorandum and artid8s of as50cAalion. The company was In(x>rporated on 17 March 2009 registered as a charity on 15 Juty 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 signatur• of the financial Statements were.. Lord Gus O'Donnell- Chair Dr Rubina Ahmed Matthew Brumsen David Gregson Edward Humplierson Belinda Phipps Sir Oavid Ramsden Darnien Régent Jenny Stt Michele Oliver (Resigned 17 January 20231 (Appointed 13 March 20231
PRO BONO ECONOMICS TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) {CONTINUEDI FOR THE YEAR ENDED 31 DECEMBER 2022 PBE is governed by a Board of Trustees whith meets up lo fwr b"m8s a year. TtU5t8es are appointed by Board resolution. In selecting new Trustees. the Board utilises a Ncminations Cornmiltee lo consider the skills, knowledge and expwience needed for the effective running of the charity. Since 2017, Trustees ale inilialty appointed for a terrn of three years and may be reappointed al the annual retirement meeting for up to fvrther tèrms. The Board is responsible forlhe strategic di¢tIOn of PBE and for appointing the Chief Executive. Charity staff are accountable lo the Twslees through the Chief Execub've and carry out the day-lfrday 0ratIonS of the charity in accordance with the pol1$ and procedures appmed by the Board. The Board has fivè $ub-committee$'. The Finance. Audit and Risk Committee IFARComl h8s tr40 Tru51ee mernb8 ID8mien Régènt, Chair. and Ed Humpherson) and is an advisory comrnittee of the Board. Ifs main dtty is to help tha Board ensure that all matters related to the statutory audit and thg risk regi51er are dealt with appioprialely and to review the finanaal performance of the charity. FARCOM leads the work of the Board on the stalulory audit, periodically reviews risk management processes including the risk register. and helps ensure that the charity complies with all aspects of the law, relevant legislation and good practice. The Policy, Polrtics and Comrnuni(tions Commrttee IPolComml has Trustee members (Jenny S¢ott, Chair. and Damion Règenll and is an advisory committee of the Board. The committee was established in 2021 to providè greater trustee oversight of PBE'S policy development, approach to policymakers and èxtèm81 communications. It agreed that its most immediate priorities shoukl be r8¥iewing the risks telated to communications. the principles by which the charity should undertake its commUntiOns, wlicy development and political engagement. and overseeing the establishment of a crisis communications process. The Ramuneration Commrtt8è (Rèmcoml has Trustee members {Belinda Phipps, Chair, and Jenny Scott) anrl is an advisory committte of the Board, advising the Board on all matters related to staff compensation. The executive undertook a salary benchmarking exercise in 2022, with a payroll spectalist, to ensure staff were being faidy compensated. The executive recomrnended a three-year staged approach to salary increases frorn 2023 as a result of the benchmarking exercise lo ensure continued focus on high calibre recruilment and retention of wrrent staff. Remcom reviewed tho proposal and Tecomrnended approval by Ihe Board. The Fundraising Comrritt88 has four Tnjstee members {Matthew Bnjmsen. Damien Régent, Belinda Phipps and David Gregsonl. The Cornrnee was set up as an advisory panel to consider PBE'3 fundraing strategy as PBE seeks to diversify its income base. Th¥ NOMIn*n$ Committee (Nomcoml ha$ five Truste¢ member$ (L4 Gus O'Donnell. Chair. Belinda Phipps, Jenny stt, Rubina Ahrned and Ed Humphèrsonl. Thè committèè considers the diversity of skills and experience represented within the Board and manages subsequent Trustee recruitment. In 2022. Trustees tjpdaled, reviewed and approved the charty'3 risk register, delegation of aullh)rty, investment, accounting and safeguarding policie5. Prior lo their appointment, new Trustee5 go through an induction proc&ss. and are providgd with ? copy ol the Memorandum and Articles of AssocAalion. ihe Trustees, Annual Report and Financ1 Stalemenls. together wlth other relevant infomiation, antj a invited to spend time with the charty executive. Nontr of the Twstees ha$ any benefia81 interest in the company. All of the Trustees are members ofthe company and guarantee 19 c¢intribule £1 in the event of a winding up. Indetnntty insuranGe is held foi the Trustees.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Dlsclosure of Snformatlon to audltor EaGh of the Trustees has confirmed that thaca is no information of which they are 8w8r8 whith 18 rèlevant lo the audit. but of which the auditor is unawarè. They have fvrther confirmed that Ihey have taken appropriate steps to identty such relevant infomation and to establish that the audrtor is aware ¢f such information. The Trustees, report wa approvod by the Board ofTwstees. Lord Gus O'Donnèll - Chair Chair of Trustee Dated. ...l.¥. .. . . 10-
PRO BONO ECONOMICS STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2022 The Trustees, who are also the directors of Pro Bono Economic5 for the purpose of o)mpany law, afe responsible for preparing the Trustees, Report and the financial statements in accordan with applicable law arKI Unrted Kingdom Accounting Standards (Unrted lfjngdom Génerally Accepted Accounts'ng Practice). Company Law requires the Ttuslees lo prepare financi81 slatsmenls for each financial y¥ar whith ge a true and fair view of the state of affairs of the charty and of the incoming resources 8nd application of resourc8s, including the ino)me and expenditUTe, of the charitable company for that year. In preparing these financial statements, the Trustees are required to.. select 5Ultable accounting policie5 and th?n apply Ihern consistently,. - observe the methods and principles in the charitS SORP: make judgements and estsmates that are reasonable and prudent.. state whether appIable UK Accounting Standards have been followed. subject to any rnaterial d8p8rtures disclosed and explained in the financjal statements., and prepare the financial statements on the going conrn basis unless Il is inappropriale to presurre that the charrty will continue in operation. The Trustees are responsible for keeping adequate accounting records that disdose with reasonable accuracy at any time the financ4al position of the charity and enable them to ensure th* the financial statements ¢omply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charty and hon¢¢ for laking reasonable steps frjr the prevention and deteclion 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 Econom¢os (the 'tharity'l for Ihe ygar ended 31 December 2022 which o)mprise the statement of financial activities, the balance sheet. the statement of cash flc>ws and notes to the finanaal statements, including signrficant accounting policies. The financial portIng frarnework that has been applied in th•ir preparation is applicable law 8tHI United Kingdom Accounting Standards, including Financial Repon9 Stsndard 102 The Financial Reporting Standanl &ppli¢able In th8 UK and Republic of Irelènd (United Kingdom Generally Accepled Awunling Practice). In our opinion, the financial statèments.. give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, for the year then ended.. have been properfy prepared in accordan with United Kingdom Generally Apted Accounting Practi.. and have been prepared in accordance with the requirements ofthe CompaniesAct 2006. Ba51s for oplnlon We conducted wr audit in accordan¢x with Inlemational Standards on Audthng IUKI {ISAs IUK)) and applicable law. Our re5pon5ibilitie5 under those standards are further described in the Audilorts responsibilAlies for Ihe audit ol tl)e ffinanal statements section of OUT report. We are independent of the charity in accordance with the 81hical quirernents that are relevant to our audit of the financial statements in the UK. includiro the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordan wth these requirements. Wè believe at the audit evideno? we have obtained is sufficieni and appropriate to provide a basis for our opinion. onclu8ionB relating to going concern In audrting the finanaal statements, we have conduded that the Trustees, use of the goin9 cOr•M basls of accDurhting in the pr8paiation of the finar131 st41gmgnts 1$ oppropti8. ased on the work we have perfomied, we havè not identified any materfal unrtaIne$ relang lo events Of conditrons that, individually or eollactivèly, may cast 5ignrficant doubt on thé charity's ability to continuè as 8 going ¢oncem for a period of at least twafv& months from when th8 finanaal stat8mants ar8 Buthoris8d fDf issu9. Our responsibilities and the responsibilities of Tnjstees with respect to going concern are described In the revant sections c¥f this report. Other information The other information comprises the infomiation included in thè annual report other than the finatKial stat8manl8 and our audito¢s r8POrt thèr•on. The Trustees are rpsponsible ft)r thg other Information Gontaingd within the annual report. Our opinion on the financial statements does not Cover the other infomiation and wtr do not presS any form of assi1ran conu$ln Iher¢on. Our responsibility is to read the other inlomation and, in doing so, consider whéthèr the othèr inftsrm8tion 15 merially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otheThwse appears to be materially misstaled. If we identfy such material inconsistencies or apparent material misstslements, we are required to determine whether Ihis gives rise to a rnater1 misstatem8nt in the financial statements theMsees. If, based on the work we have performed. we conclude that there is a material misstatemeni of this other infomiatlon, we a required to report that fact. Wè havè nothing to raport in this règard. Matters on 7•vhich we are required to report by exception We have nothing to rèport in iespect of the following matters in relation to whith the Charrties (Accounts and Reports) Regulations 2008 require us lo report lo you if. in our opinion.. the informatiDn given in the finan(xal statements is in¢onsistent in any material rèspèet wfjth the Trustees, report", or suffiaent accounting records hav6 not been kept., or lh$ fin8n¢ial statemenls aro not in agreement with the accounting record5." or we have not received all the information and explanationg wè require for our audit. 12-
PRO BONO ECONOMICS INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF PRO BONO ECONOMICS Rgsponsibiliti•s of Trusteès As explained more fully in the statement of Trustees. responsibilities. the Tiust88s, who are also the direck)rs of the ¢harity for the purpose of company law, are responsible lor the preparation of the ffinancial statements and for being saty"5fi$d that they give a true and fair view, and for such internal control as the Ttuslees deleitnine is necessary to enable the prèparatitsn (>f financial statements that are free from material misslatÈmèrtt. whèther due to fraud or error. Sn preparing the financi313tstements. the Truste85 are responsible for asse55ing the chatty's ability IEF continue as a going concem. di5d05ing. as applicable. matters Iat&d to going concern and using the going Conrn basis of accounting unless the Trustees either intend to liquidate the d7aritable company or lo cease operations. or have no aliStiC alternative but to do so. Auditorfs re8pon$ibilitio$ for th• audlt of th• finan¢ial statements Wè have been appointed as auditor under section 144 of the Charities Act 2011 and report in 8ccordance with the Act and relev8nt regulations made or having effe¢t thereunder. Our objectives are to obl8in reasonable assurance about whether the financial slatement5 as a whole are free figtn rnaterial misstalemenl. wheth91 du9 to fraud or ertor. and to issu8 an auditorfs report Ihat include5 our opinion. Reasonable assurance 1$ a high ltyvel of assur8r but Is not a guarantee that an audit CondLted in accordancè with ISAS (UK) will aayS dètèct $ material mi$stal¢menl when it exists. Misstatements can arise from fraud or error and are considered material if, individually ot in the aggrègate, they could reasonably be expected to influen¢tr the econornic decision5 of us8f5 taken on th8 basis of these financial statements. IrregUlar.es. induding fraud. are instan¢es of non<ompliancè with laws and regulations. We design prOrureS in line wilh our respoT15ibiI.&$, outlined above, to d¢te¢t material misstatements in respect of irregularities, indudin9 fraud. The ext8nt to whith our procedures are capable of detecting irregularities. induding fraud. is detalled below. 13-
PRO BONO ECONOMICS INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE TRUSTEES OF PRO BONO ECONOMICS Our approach to Kl&ntifying arKI a55essing the risks of material misstatement In respect of Irrggulaflues, induding fraud and nO0)mpli8n¢e wrth laws and regulations, was as foll(yws'. Ihe eryJagement partner ensur•d that the gngagemenl team collectivety had the appropriate competgncg, Capabilities and skims lo idenufy or re¢ogni8e non•complKgnce wth applicable laws and regulations., we idèntif1 thè laws and iegulations applicable to th8 charity through discussions wlh Trust9e& and other managewnent, and from our commercial knowledge and experience of the se¢tor'. wè focused on speafic laws and regulati¢>ns wttich we considered may have a direct material effect on the f nancial siatements or tha op8ralion5 of the charity, including ihe Companies Acl 20(K. the Charities SORP, taxation, amployment, environmental and health and safety legislation., we assessed the eent of compliance vAth the laws aThJ regulations identified abovtr through making ènquiries of management and insp8cling legal CDrr85pond8nce', and identified laws and regulations wsre comrnunicaled within the team regularfy and the team rernained alert to InStanS of n0CoMplI8nce throughout the audit. We assessed the susc•ptibility of thg charfiy's financial statements to material misstatement, in¢luding obtaining an understanding of how fraud might ocwr. by.. making enquiries tsf management as lo where they considered ther8 was susceptibility to frdud. their knowledge of actual. $uspect8d and alleged fraud., considering the intemal controls in place to mitigate risks of fraud and non<ompliance wth laws and regulations. To address the risk of fraud through man3gem8nt bias and override of controls, we-. performed analytical procedurès lo identify any unusual or unexpected relakn"onships', tested joumal entries to kyentlfy unusual transactions., assessad Wthr judgernents and assumptions mad• in d8tamining th8 awpunling estimates were indicatwe of pDt6ntial tM8s.' and Investigated thè rationale behind Signifnt or unusual transadions. In re3ponse lo the risk of irregularities and non-wnpliarKe with laws and regulations, we designed prdurs which induded, tr1 were not limited to.. agreeing financial statem•nt disclosure5 to underfying supporting documentation., reading the minutès of Tneetings of the board of Trustees- enquiring of management a5 to actual and potenti81 litig8t¢on and dairn8,' and reviewing correspondence wfth HMRC. There are inharènt 1smrtation3 in our audit proc•dur8s describèd abova. The morg removed that laws and regulations arè from financial transactions. the less likety tt is that we would t¢ome aware of non-complian. Auditing Standards also limit the audit procedures required Ici identify now0mlance with laws and regulations lo enqulry of the directors and other rnanagement and the inspèction of règulatory and legal correspondence, if any. hAaterial misstslements that arise due to fraud can be hardw lo detect than those that arise from error as Ihey may involve deliberate ncealrnent or collusion. A further description of our responsibilities Is 8vailable on the Financial Reporting Counal's website at.. https.'Il www.frc.0rg.uklaudil0rs$ponslbllitles. This desuiplion fom5 part of our audilorfs report. 14-
PRO BONO ECONOMICS INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THETRUSTEES OF PRO BONO ECONOMICS Use of our report This report is mado solety to the charity's trusteès. as a body. in accordan with part 4 of the Charit$ {Accounls and Rèports) Règul8ts"ons 2008. Our audit work has bèèn undertaken so that we might state to the charitys trustees thos8 mAtt8rs we grè raquirad to st818 to them in 8n 8udilo¢s raport and for no other purpose. To the fullest extent permitted by law, we do not aCp1 or assume resp¢)nsibility lo anyona other than Ihe charity and the charty's trustees as a body. for Dur audit work, for this report, or for Ihe opinions we have fofflied. Strpn M•rèdlth 8A FCA DChA (Sonlor Statutory Audltorl for and on behalf of Alliotts LLP 28 June 2023 Chart•r•d Accountants Statutory Auditor Friary Court 1&21 High Street Guildfofd Surrèy GU1 3DL Allitstts LLP is digiblo for appointment as audiior of the chartty by vlrtu8 of its 81igibility for appointment as auditor of a <x)mpany under section 1212 of the Companies Aet 21JO6. 15-
PRO BONO ECONOMICS STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022 Unr•stri¢ted Restrictod lunds fund$ 2022 2022 Total Unrestricted funds 2021 Restrictéd ftjnds 2021 Total 2022 2021 Income from: DonatM)ns and legacies Charitable activrties Investments 638.624 41.500 320 301,600 940,224 41,500 320 2.540 63.138 59 858,150 f.420.690 63,136 59 Total incom• 680,444 301,600 982,044 625.73S 858,1SO 1.483.885 ndlturè o Raising funds 171.398 17.194 188,592 157.671 5,1tx) 162.771 Charitable activrties 673,774 7C6.431 1,380,205 591.374 630,913 1.222,287 Total expenditur* 845.172 723.625 1,568,797 749,045 636,013 1.385,058 Net lexpenditureVlncom• for the y?arl Net movÈm•nt In fvnds 1164.7281 1422,0251 1588,753) 1123,3101 222.137 98.827 Fund balane•s at 1 Janu 2022 466.109 552,147 1.018,256 589.419 330.010 919.429 Fund b8lan¢e• at 31 D¥¢èmbor 2022 301,1 130,122 431,503 466.109 552,147 1.018,256 The statem•nt of finanaal activthes includes all gains and lossès r•cognised in the year. All income and expenditure d8fiV8 from Continuing activities. Th8 Stat&mant of finanaal actmties also complies wrfh the requirernonts for an in)me and expenditure a¢xount under the Cunpaniès Act 20Ch%. 16-
PRO BONO ECONOMICS BALANCE SHEET AS AT31 DECEMBER 2022 2022 221 Notes Fix•d 8$s&ts Tangible assets 12 12,504 8,549 Current a¥sets Debtors Cosh at bank and in hand 13 138,230 354.892 60,872 1,010.8Q6 493.122 1,071,478 Crodltors: amounts falllng due wlthln ong y•ar 14 174,123} 161,7711 Net current assets 418.999 1.OtrJ,707 Toial assets less current liabilitie8 431,$03 1.018.256 Income fundB Rastricted lunds UnTeslricted AJnd5 16 130,122 301.381 552.147 466,109 431.503 1,018,256 The chantabte company is ents'ued to the exemption from the audf( requirgmènl conts"Lned In section 477 of the Compani8s Act 20CE. for the year ended 31 December 2022. although an audit has been carried out under section 144 of the Charities Act 2011. Thè trustèès acknowledge their responsibilities for ensuring that the tharitable MpanY keeps &counting records which compty with section 386 of the Aci and for preparing financrdl statements whi¢h give a true and fair view of the statè of affairs of the charitable company as at the end of ihe finanejal yèar and of rts incoming reSoUS and application of resources, induding its income and expenditure. for the financi81 year in a(£ordance with the requirefflents of sections 394 and 395 and which otherwise comply with the requirem8nts of th• Companies Act 28 relating to financial statements, so far as applicable to the tharTtable company. The members have not required the charitable comp8ny to obtain an audit of its financial statsmenls under th requirements ofthe Companies Acl 20(, for the ye8r in quastion in accordance with section 476. These finatl31 statements have been prepared in acts)rdan¢a with the provi&ons applicable to companies subject lo the (x)mpanies regime. Thè financial statements w re approved by the Trustees on . Lord Gus Trustee Donnell- Chair Company registration numbor 06849844 17
PRO BONO ECONOMICS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2022 2022 2021 Cagh flow¥ from oporating activities Cash absorbed by operations 20 le44,680 1134,2521 Investing activities Purchase of tangiWe ffixed assets Investment incomo received {11.3541 320 14.502} 59 Not ¢a$h used in Inve6tlng actlvltleg 111,034 14,4431 Net cash us•d In flnancing aetivitie N•t decrgaje in Cash and cash oqulvalonts 1655,7141 {138,6951 Cash and cash equivalerts at beginning of ygar 1.010.606 1,149.301 Ca¥h and cash equlvalents at end of yèar 354.892 1,010,606 18
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 Accounting pollcl•s Chartty Infom•tion Pro Bono Economics is 8 Private company limiled by guaranlee incorporated in England and Wales. The r8gist•r•d offiix is Th8 Faclory, 120 London Road. London, SE16LF. 1.1 Account5ng cOnvenOn The financial statemellls have been prepared in accordance with the charity's goveming document. the Companies Act 2006. FRS 102 The Financral Repotb"ng Slandard appliGablg in th8 UK and Republic of Ireland. I'FRS 102.1 and the Charities SORP 'Ac(x)unb"ng and Rèportiftg by Charities.. Statement ol Recommended Praciice appliCae to charities prgparin9 their accounts in accordance with the Financaal Reporting Standard applicable in Ihe UK and Republic of Ireland IFRS 1021" (effecaive 1 January 20191. The charity is a Public Ban8fit Entty as dèfinèd by FRS 102. The finana81 slatem¢nts are prepared in sterfing. which is the fundional currency of thè charty. Monetary amount$ in finan41 statements are rounded to the neast £. The financial ststements have been prepared uThJer the historical cost convèntlon. The principal accounting F>olicies adopted are sel out below. 1.2 Goin9 con¢em Th& Tnjstees are contldsnt thè ¢harity has the resour$ to me8t its liabilities as they fall duè at least 12 months from datè of signing th• accounts. Hen, they consider Ihe charty to be a going concern. 1.3 Charitable funds UnrestriEt8d funds aro availablg for uso 81 the discretion of the Trustees in furtheran¢g of tt)Oif tharilable objectives. Restricted funds are subject to sPeriC conditions by donors as to how they may bg used. The pUrl$eS and uses of the restricted funds are set out in the notes to the ffinan¢ial slatemenls. 1.4 Ine¢)mè Income is recognised when the charity is1•gally entilled lo il after any performance COndlOnS havè met, the amounts can be measured reliabty. and probable that in¢ome will rè1ved. Cash donations are recognised on receipt. Other donalions are recognisèd oncè the charity has been nc*tffied of the donation. unless perfomiance conditions require defetral of the amount. Income tax recoverable in reLgtion lo donations received under GiftAid or déeds of covenant is recogni5ed at the lime of the donation. 1.5 Empendlturp Expanditure is TpcryJnised on the aruar8 basis. Liabilities are recognised as soon as thare is a legal conslruGtive obligation to pay. 1.6 Tanglble fixed assets Tan9ible fixed assets are initlally measured al arKI subsequently measured at cost or valuatK)n, nel ol depreclation and any impalmienl lo$$e$. Depreciation is reco9nis8d so as to Write off the u81 or valuation of assets less their rdal values over their useful liv•s on thè following bas8S". Fixtures and fitbngs Computèrs 3 years 3 years 19-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Aeeounting policies Icontlnuodl Th8 gain or loss arising on the disposal of an asset is dotemiined as the difference befven the sale procèèds and the carrying value of the ass¢l. aTK1 is recognised in the stslement of financial ath'Vit$. Items are caytalised whèrè the n8t expenditure value is greater than £5W and the expense is caprtal by nature. 1.7 Impalnnont of fix assets Al each reporting end date, the chanty reviews the carrying amounts of its tangible assets to detèrmine whether there is any indiG8tion that those as5et5 have suffered an impaimient loss. If 8ny such IndatIOn exists. the reeoverablè amount of the asset is estimated in order to d8t•rmintr th8 extent of the impaiment loss lff any). 1.8 Cash and cash •qulval•nts Cash and cash equivalents include cash in hand. deposits held at call with banks, othei short-t•m liquid inveslrnents with original maturttias of thre8 rnonth5 or les5. and bank overdrafts. Bank overdrafts are shown within borrowings in c#Jrrent liabilit5. 1.9 Financlal instruments The charity has elected to apply the provisH)n$ of Section 11 'Basic Finanaal Instruments, and Sèction 12 'Othor Financial Instrurnents Issues, ol FRS 102 to 811 of its financial instruments. Financial instruments are recognised in the charity5 balance sheet when the tharity beojmes party to Ihg ¢ontr8Ctual provisions of the instrument. FinBnclal assets and liabiliti'es are offset, wilh the net amounts presented in the financaal statements. there is a legally enforcealAe right lo sel off the recognis¢d Smounts and there is an intention to settle on 8 ngt basls or to realise the asset and setue the liability simultaneously. Basic financial ass•ts Basic ffinancial assats. which indude debtors and cash and bank balan¢$, arè initially measured at transaction priGe indudiThJ transaction costs and are subsequenlty ¢arrièd at 8morbsed cx)sl usiro the effectN8 intar•st fflelhod unless the arrangement constitutes a financin9 tfansaction. where the transaction is measured al the prttsent value of the fvrture receipts discount * a market rate of tereSt. Finanaal assèts dassffled 9$ recoivable wthin one year ar8 not amortisèd. 88¥1¢ flnancial liabilftles Basic fin8nrial liabilities. including creditors and bank1ts8ns are initially recognised al transaction kYic• unless Ihe arrangernent nStituteS a financing transaction, where the debt instrument is measured at the presenl value of the luture payments discountéd at 8 rn8rkel rate of interest. Financaal liabilthes clas5ifigd 9$ payable within one year are not amortised. Debt instruments are subsequenuy carried at amortised cost. using the ectIV• interest rale melh¢xl. Tradè crèditors are Oblal)nS lo pay for goods or services that have been acquired in the ordin¥y coursè ol opèrations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, th•y ar8 prèsented gs non-currenl liabilities. Trade creditors arg fg¢ognisod initially al transacon price and subsequenly measured al amortised cost using the effective intèrest mèthod. Der•cognhlon of financial liabilities Financial liabilities are derecognisad wh8n the tharity's contractual obligations expirg or aro di$¢harged or cancelled. -20-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Aeeounting pollcl•s (Contlnu•dl 1.10 Employ•• n•fits The cost of any unused hOdaY entitlement is recognised in the period in which the employee's services arg rgiVed. 1.11 R•tir•m•nt b•n•fits Payments to defined contribution relirernent benefit schèmas ar8 charged as an expense as they fall due. Crftlcal a¢counting estimates and Judgoments In the appli(3tion of the charity's accounting policies. the Trustees are rèquired lo m8ke tsudmts, estirnales and assumptions about the carrying amount of ass&ts and liabl1f(S that are not readity apparent from other sourcÈs. The 8stimatÈs and assouated assurnptions are based on historic81 experTence and other factors that are ¢x)nsIdea to b& relavanl. Actual SU11$ may differ from these e8timatg5. The estimates and underlying a85UrnPtions are r8vi8wad on an ongoing basi5. Revisiws lo accounting estimates are recognised in the period in which thè •stimate is revised where the revision affects ¢ty that pericxl, or in the period of the reslon and fLrture periods where the revision affects both (xjrtent and future poriLxls. 21
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2022 Donatyons and lryacles Unrestrlcted R¥strl¢ted lunds funds Total Unrestricted Restricted nds funds Total 2022 2022 2022 2021 2021 Donations and grfts Grants Donated goods and services 379,132 250,050 379,132 551,650 293,365 250,350 293,36S 1.108.500 301,600 858.150 9.442 9,442 18,825 18.825 638.624 301,600 940.224 562,540 858,150 1.420,6 Donatlons and gifts ajor gifts General donathons Events incomè GIftd 361.CKJO 6,125 373 11.635 361.000 6,125 373 11,635 270.994 4,169 7,299 10,902 270,994 4,189 7.299 10,902 379.132 379.132 293,365 293,365 Grants r•cèiv•ble for coro actlvlti08 Porticus Law F8tnily Charitable Foundalign Oak Foundation City 8rKlge Other 80.COJ 80,OC4) 57,5 57,500 250.000 94,3(M) 72,8( 54,51X) 344,300 72,800 54.550 250.000 542,650 210,500 47.500 792.650 210.500 47.500 350 so 350 250.050 301,PAX) 551,650 250.350 858.150 1.108.stx) Charitable act5vStlo$ Supporting sUP)rting Charltlos Ch8ribe5 2022 2021 Fees for Services 41,S 63,136
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Invgstments Unrnstrlcted Unrestrictsd funds funds 2022 2021 Interest re1vable 320 59 Ralslng fundg Unrnstrleted Restricted funds fund$ Total Unrestricted funds Restricted fvnds Total 2022 2022 2022 2021 2021 2021 Fundraisin Staging fundraising events Slaff costs Support costs 7,349 137.422 26,627 7,249 152,881 28,582 12,168 121.885 23.618 12,168 126,985 23.618 15.259 1,935 5.1(M) Fundiaising 171,398 17.194 188.592 157,871 5,1 162,771 171,398 17.194 188,592 157,671 5,100 162.771 -23_
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Charitablg activitios Supporung Charities External Research & Affairs Pollcy Total 2022 Total 2021 Staff o)sls Consultancy Econotnic assoryates Other service delivery costs 308,850 34,331 21.704 104,977 156.525 2,993 369,990 67,189 835,365 104,513 21,704 262,352 693,845 81,117 67,017 245,735 9,549 147,826 469,862 169,067 585,005 1.223,934 1,087,714 Share of support costs (see note 8} Share of g¢)vernance costs (see note 49.217 24,943 S8,0 133,120 95,392 81 8,559 4,338 10,254 23,151 39,181 527.638 198.348 654,219 1.380.205 1,222.287 Analysis by lund Unrestrieted fiJnd5 Restricted funds 341,513 186.125 144.277 54,071 187,984 466,235 673,774 706,431 527.638 198,348 654,219 1,360,20S For the year ond•d 31 Decembgr 2021 Unr8stricted fund5 Restricted funds 288,919 258,590 113,567 25,500 188.888 346,823 591,374 630.913 547,509 139,7 535.711 1,222,287 Other SgNi¢e Delivery Costs indudes Project D81ivery Oak Grants to Cranffield Twst of £19.761 12021.. £70,800) and Piloilight of1£6,6SO}12021.. £54,800). Additionally, R&search & Policy Other Service Delivery Costs includes new exFenditure in Research Commissioning of £68,400 12021.. £24.2001, arKI Research Polling & Focus Gloups gf £16,78712021.. £53,160). -24_
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 Support costs Support Gov•rnanc• costs ct)sts 2022Support costs Govemance costs 2021 Depwiatlon Rent Office supplies Computer wnning Costs Travelling expenses Insurance Bank charge5 other staff costs HR consuhancy 7,399 44.677 22,969 32,304 3.463 3.363 112 31,597 8,474 7,399 44,677 22,969 32,304 5,107 27,803 13,631 40,778 1,002 2,762 88 20.669 5.107 27.803 13,631 40,778 3,363 112 31,597 8.474 2.762 88 20.669 Audtt fees Accountancy Legal and profession81 6,600 11.339 9.442 6,600 11,339 9,442 5.820 4,619 35,913 5,820 4.619 35,913 157.451 27.381 184,832 111.840 46,352 158.192 Analysed hee Fundraising Charitable actNitses 21,392 133,120 7.170 23,151 28,562 156,271 17,576 95,392 6,042 39,181 23.618 134.573 154.512 30.321 184,833 112,968 45,223 158.191 G¢vwn3e ¢osts Indude payments to auditors of E6,6(Y)12021- £5.820} lor audit fees. Other staff costs r•lat• to staff recyubtment and staff Ir8ining o)sts for the year. Trustees None of the Trustees lor any parsons connected with them) rec•ived any remuneratmin or wèrè paid expenses during the year. -25-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 10 Ernployo•s Numbar ofemployee8 The average monthty number of employees during the year was.. 2022 Numb•r 2021 Number 18 16 Employment costs 2022 2021 Wages and Salaries Soual secuity costs Othef pension costs 847.329 87,173 702,2 71,467 46,401 988.046 820,830 The number of employees whose annual remuneration was £80,000 or moi8 wer•.. 2022 Number 2021 Number £120,(QO- £129,999 Tho hoadcount. as well as the wages and salary 8XPgnse. increased in 2022 with the addfcion ol a new Diractor of Oevelopment and building out th• rèsearch and econornics teams. 11 Taxation The charity is exempt from lax on income and gains falling within section S05 of thè Taxas Act 1988 or Section 252 of the Taxationof Chargeable GainsAct 1992 to thè 8xtant that these are applied lo ils charitable objecis. 26-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 12 Tanglblo fix•d a$$•ts Flxturns and ffttlng8 Crpu Tot Cost Al 1 January 2022 Additions 2,919 3,922 24.547 7,432 27.466 11.354 At 31 December 2022 6.841 31,979 38.820 Depreciatlon and Impairmgnt At 1 January 2022 Depreciatson charged in the year 2.875 806 16.042 6.593 18.917 7,399 At 31 December 2022 3.681 22.635 26.316 Carrying amount At 31 December 2022 3,160 12,504 At 31 December 2021 8,SOS 8,549 13 Debtors 2022 2021 Amounts falling due within one year. Trade deblors Other debtors Prepayments and accrued irKome 2.250 6.650 129,330 1.wo 59.872 138.230 60.872 14 Creditors: amounts falling due within one yoar 2022 2021 Other tsxation and Swal 5gcuiity Trade uedliors Accruals 26,027 13.018 35.078 20,371 16,468 24,932 74.123 61.771 15 Retirement benefit schemes Defined contrlbution schemes The ¢harity oporates a defined contrfbutlon pension scheme for all qualfying employees. The a5$9Is of the schem8 are held separately from those of the charity in an independently administered fund. Th8 thargg to th8 SOFA in r85p•ci of dtsfined contribution schemes was £53.54412021- £46.4011. -27-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 16 Restricted fund5 The income funds of th8 thattiy indude restricted funds comprising the following unexpanded balan$ of donations and grants held on trusl for spealic purposes.. Movement in fuThgs Movèmènt in lunds Incoming re50urce¥ Balanc• at 1 January 2021 Balanco at In(x)tning Resource51 January 2022 resources expended Batsnce at ?xpend•d J1 Decomb•r 2022 The Oak Foundation Cty Bridge The Law Family Charitable Trust Porticus 32,080 210,500 47,500 1220,2441 143,3331 22.336 4.167 72.8CK) 54,500 191,536) 154.5001 3,600 4,167 297.930 542.650 57.500 {371.9831 14531 468,597 57,047 94,300 80,OCX) 1520,5421 157.047) 42,355 80,000 330,01QI 858,150 {63S,0131 552.147 301,6LX) 1723.6251 130,122 The Oak Foundation delivers sUPPOrt to 8 Portfolv) of homelessness charities. The grants received have been partially spent during 2021, wrth fvrther spending in 2022. A balance is carried forward to 2023. The Cty Brfdge Twst proje(# 8upFx)rts th81itses providing services in London. The grant received was largety spent wthin the y•ar. Funding has been rarried fOard fro 2022 into 2023 as reslncted reserves. The Family Commi55ion Civil Society is a programme of ground4)reaking researth into how the potential of civll siety Can be unlèashtd. Thè grants carried foard from 2021 and recVed in 2022 havè been largety spent during Ihg yea(. Tho rgmaining furKls were carried into 2023 as Testficted reserves. Porbcjjs granted funds to support the project. IntegralED bridge.. economu of wellbeing for chil(tren In adversity. Th• grant received in 2021 was largety spent Ihis year and the grant received in 2022 has begn carried fonNard into 2023 as $tried re8erve5 to be spent in 2023. 17 Analysis of not assets betweon lunds Unrgstrtcted Restricted 2022 2022 Total Unrestricted Restricted 2022 2021 2021 Tol81 2021 Fund balanS at 31 December 2022 are represented by.. Tangible assets Curr&nt a$s¢tsllliabi1sties) 12,504 288.877 12,504 418,999 8.549 1.009,707 130,122 457.560 552.147 301.381 130,122 431,503 466,109 552,147 1,018,256 -28-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022 18 0ratIng loase commltmgnts Al the reporting end date the charity had oul$tan¢Jing ¢ommibnonts for future minimum lease payments under nonwcaJKellable operating leases, whtch tsll due as follows.. 2022 2021 thin one year 14,622 15.915 19 Related party tran¥a¢tions Remuneration of key fflanagemenf per¥onn91 The remunÈrats"on of key management personnel (defined as Chief ExerJJtiV9 Officer. Operations and Financ& Directoi. Director of Developmènt, Director ol Services, Research and Policy DSrector and Policy and Comrnunicab'ons Director) is as follows. 2022 2021 A99r8gal8 comwnsation 460,709 432,746 There were rK) Other disd4* rglalad paty transactions during the year12021- non81. Cash yn•ratsd from 0ratIOnS 2022 2021 (Defiutysurpus for the year {586,753} 98,827 Adjustments for.. Inveslmenl incorne recognised in statam•nt of ffinancial actNitI'es Depreoation and irnpaiiment of tangible fixed assets 13201 7,399 1591 5,107 Movements in WOTIEing p41. Ilnor8a581 in debtors Increase in creditors (Decrease) in deferred income 177,358> 12,352 {42,177) 14,551 1210.500} Cash absort)ad by operations 1644.6801 1134,251) 21 Analy855 of changes in not funds The charity had no dobt duriNJ the year. -29-