Charfty r•glstration number 1130567 Company reglstratlon number 06849844 (England and Wales) PRO BONO ECONOMICS ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
PRO BONO ECONOMICS LEGALAND ADMINISTRATIVE INFORMATION Trustees Lord Gus O'Donnell - Chalr Matthew 8rumsen - Vic8 Chair Dr Rublna Ahmed David GrRg.san Aknko Hart Edward Htjmphèrson Jonathon Loyngs ichele Oliver Belinda Phipps Damien Rég8nt- Tr8a$urgr Jenny Scott {Aprx)inted 7 September 20231 IAppointed 7 Sgplemb8r 20231 IAppointed 13 March 20231 Charity numbèr 1130567 Company number 06849844 Roglstered t)fflcg The Factory 120 London Road London SE16LF Auditor Alliotts LLP Frlary Court 13-21 High Street Guildford Surrey GU1 3DL Bankers Barclays Bank PLC Leicester M60 4EP Solicitors Weil, Golshal & Manges LLP 110 Fetter Lane London EC4A 1AY
PRO BONO ECONOMICS CHAIR AND CEO'S STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2023 2023 marked an official end lo the two-year pay 5queez8 that had afflicted milllons across the country, as inflation fell laster than expècted. But in pra¢li¢e. the cosl-of4iving challenge remain6d 811 loo real lor all loo many households over the course of the year and the wellbeing of the nation's atizen5 remained in a precarious r.nndilinn. .%nmft 2 1 million adults reported low levels of satisfaction with their live. an incroaC of 750,000 over just three years. The number ol adults recording high anxiety scores stood al 12.8 million, some 3 mlllion higher than the low recofded a decade earlier. And th8 UK languished fourth bollom in the OECD league tsble of life Satisfaction afflong teens. Given the scale and urgency of the wellbeing challenge, we are proud of the contribution that Pro Bono Economics IPBEI was able to make over the course of 2023. This includes delivering a lolal of nine major policy wins that will better equip civil society lo lulfil ils potential. We se¢urÈd changes d9signed lo enable and encourage more philanthropy in the UK". to improve charity data, which is key lo a more impactful 5eclor,' and to iTnprove links between civil society and the civil service. Through our work with coalitions DI children's charities, poverty organisalions. and those supporting disabled children, we published hard-hilling research on some of the most pressing issues affecting people with low wellbeing. This research is now being used by hundreds of charities to make the case lor policy change. Through our partnerships with the Bank of England. Nottingham Trent University and charity membership organi5alions, we pfovided insights lo almost 2,000 individuals across civil society in allendance al SgGlor events. We also provided important detail Dn the challenges lacing charilies al the highest levels ol govemmenl, prompting the Chancellor lo announce a £100 million fund for the sector in hi5 Spring Budgel. And we helped 137 organisations from a huge range of areas- including women's refuges, LGBT+ community cenlres, black ¢realive networks and rare disease charities- to measure. improve and communicate their impaGI and make better use of their data. In doing so, we malched our 500th economist volunteer in 2023. as part of our engoing detemiinalion lo help th8 profession to delivèr impact. In support ol all of this. we have made some significant internal changes over 2023 too. We havè widened the organisalions we work with lo in¢lude granl-makers, loe21 authorities and public sector bodies. likè intégrated care systems. in order to have impact al scala and at source. And we have invested in our tèam, improved our ullure, refreshed our strategy, and expanded our k)c>ard to be stronger, more inclusive and ultimately more impacttul. Against the backdrop of another challenging y8ar for the country- and wllh continued thanks lo our staff, volunleers, partners and supporters- we will be working hard to deliv&r still more and deoper ifflpact in 2024. Lord Gus O'D¢nn•ll Chalr Dated.. Q.*.o.fj , z Matt Whittaker CEO Dated.. 05..._.V
PRO BONO ECONOMICS CONTENTS Pago Chair and CEO'S Statement Trustees, Teport Statement of Tru$tees' r8sponsibilities 10 Independent audttorfs report Ststsmant of flnanc4al act1eS 14 Balanc8 sh88t 15 Statement of cash flows 16 Notes to the financlal statements 17-28
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees present their annual report and financial ststemenls for the year ended 31 December 2023. Th8 financlal statements have been prepared in accordance wth the accountlng w)licies set out in note 1 to the financial statements and comply with the charity's governing document. the Cornpani8s Act 2006 and 'A¢counling and Reporling by ChaTitic.. Statomcnl of Rocommcndod Practico applicablo lo oharitios proparing their accounts in accordance with the Financial Reporbng Standard applicable in the UK and Republic of Ireland IFRS 1021 {eff8ctive 1 January 20191" Ob e¢v¢S and a¢tivllie$ The objectives of the charity are to.. promota th8 èffici8ncy and effeCVenesS of ¢h8rllles and the effectlve use of charttable resourc88 for the benefft of the publ5¢, in partIlar by providlng analyllcal economic assistance and advice lo the charitsble sector a(Ivanc8 tha education of the publlc In tha Unilad Klngdom of Great Britain and Nothorn Ireland in subjects relating lo civil society. and for Ihal puipos8 10.. conduct or commission.research into civil socAety', coordinate, deliver. organise and a5S15t in the provision of Courses of education, conferences, semlnars, leclLtres and other èducational events and activities related to civil socièty- and Support all f¢)rms of civil society organisalions. When setting the oblectives and planning the work of the charity for the year. the Trustees confirm that they have completed their duty UTMYer section 17 of thè Char(ties Act 2011 with regards to Charity Commission guidance on publlc benefit. About Pro Bon¢ E¢onoml¢$ Pro Bono Economics, IPBE'SI vision is an end lo low personal wellbeing in the United Kingdom. To support this, we usè economic analysis and our unique connection lo the social sector lo help charities, funders, fimis and policymakers to collectively tackle the causes and consequences of IDW wellbeing across the country. We do this through two main roulgs.. our impact advice & analysis and our research & pollcy work. On the former, we provide impact advice and analysis to individual charities to help thèm lo measure, und8rsland nd communicate their impact. On the latter, we produce 'bigger picture. analysis and Snsight that helps lo infom and steer the wider pollcy debate surmunding w8llb8ing 8nd tha social sector. How we work: Im act advlce & anal sls Our in-hDuse and associate experts work alongside our large pool of enOmist volunteers via three main seNlce lines-. Data FirstAid.' Unlocking Impact workshops; and analysls and advocacy prolects. Data First Aid is our fasl-track volunteer offer. It provides social sector organisations of any size with the opportunity lo be matched with one of our volunteer economists lo acce5S SUPPOrt on any number of 'Ilght touch. d8la tssks. Our Unlocking Impact workshops are half-day interactive sessions in which charities are introduced to th8 principles and practicalle$ of economic evaluation. They allow u5 to build capacity across a broad range of organSs8tlons, while also pparlrng some lo take the next slèp towards a full analysis or advocacy prolecl. Havlng attended the workshop. charities that feel ready to go further can follow up with bespoke one-lo-one sessions with one of our 8xpert economists. devgloping a deepgr understsnding of what impact might mean in IheiT own conlexl. Our analysis and advocacy project5 provide focused support designed to help charities understand their Impact and Ihelr effectiveness. When undertaking an analysis project, w& provide detailed evaluations of the outcomes and irnpacls aOcIated with an individual charity's interventions. When undertaking an advoc8cy project, wa locus le$$ on the $peafics of an individual charity's programme of work and more on the conditions and issues relatlno to sub-sectors or policy themes.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Delivering support across these three drfferenl service lines allows us lo work wlh charities and social sector orgonisations of all different levels of data 'malurity'. while embedding a culture and appreciation of impacl evaluation across the sector more broadly. In doing so, we highlight and support effectiveness in organisalions fnr.Ii*p.(I nn dp.livpring wellbeing improvements for individuals across the UK. How we work.. Research & oli Our policy research function aims to uncover n8w insight and new influence that can complement and arnplify our work indlvldual charities. It is deliv&r8d prlmarily by our In-house team. though we additionally commission work from exlemal providers and 8xperts and work in partnership with other research and policy organisations when appropriate. Our work in 2023 was largely shaped by th8 conclusion of the Law Family Commission on Civil Society, our ambitious cross-sector iwo-year programme d&signed lo èxplore the ways in which the UK might unlaash th8 harity sector'5 full polenlial. W& published the final report at the start of 2023, pulling together 180 people over the Course of a morning in central London lo discuss how civil society effectiveness, data, fundlng, busin8ss connections and relationships wlh govemmenl could all be improved. Over ils lifetime, the Commission helped advance 8 number of causes and arguments and elevated the position of civil society in political thinking. The launching of the final report was a moment to reflect 8nd to celebrate. but it did not mark an end of PBE'S work in this area. Instead, over the remaind8r of 2023, we both delivered policy changè infomed by the Commission and provided rich data and insights about civil society that helped charltlgs better serve people with low wellbèing during a deeply challengirbg y8ar. Throughout 2023, PBE raised th8 volume on the slate of volunteering, charity Income, employee burnout. women in the charfty sector, and racruitmonl challenges. As a result of our survey partnership wlth Nottlngham Trent University and eight sector mgmb&rship organisalions. as well as data sharing with the Bank of Englan¢J. we weff abl8 to amplrfy the voices of charities and their users. bring charity sector issues lo llational attention. and stimulate debate on negjected issues. Wo support our policy reSeah work through a programmg of froe. publlc 8v8nts. These provide us with an opportunity to showcase our own work and open debate around issues of importance lo wdlbeing and the social sedor. We invite a dwerse range of èxperts and practitioners lo speak on our panels and empha515e interaction with the audience by way of stimulating (liscusslon 8nd understandlng. Or anisational chan es durln the ear In 2023, after a revi8w of twstee skills. experi8nc8S and perspectives gaps. we undertook an open recrultmenl process for new trustees, with an emphasis on trusteè divèrsity. We were delighted lo welcome Michèlè (Mitch Oliver, Akiko Hart and Jonathan Loynes as new board mewnbgrs, each bringing unique and valuable insights to PBE. Mitch has since been nominated as the board diversity chafflpion and is working closely with the executive lo further develop and implement PBE'S EDI strategy. Early in 2023 we completed an inlemal restructtjre to merge our research and economist resources. We also recruited a further researchers and an economist lo develop our post-Law Family Commission research agenda and to increase the numbers of charities and consortium groups we work with. The Development team expanded in support of the organisalion's ambib'ons for income diversification. with an additional fundraiser focused on grant and programmatic funding. We mainlained our focus on divgrsily and inclusbon by taking a holistic view of our organisational culture, holding staff feedback sessions and an EDI audi( and ?ng8ging with the results. These were very positive exercl595, and resulted in sèveral adons lo move forwards. induding the development of our EDI stral8gy and the Idantl¢ation and implementation of Intemal values and b8haviours. Al the end of 2023 our chalr of trustees. Lord Gus O'Donnell, signalled hés InlenliDn to step down. Gus has overseen a period of significant growth and enhanced Impact at PBE and will remain a strong supporter of the organisalion ov8r the coming years. The trustees are working with an extemal agency to recruit someone with the right skills lo bring to this phase of PBE'S development as well as continuing to broaden the diversity of the PBE Board. We expect an appointment lo be made in 2024, but Gus has been clear about his preparedness lo continue as a fully committed chair until that lime comes.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED> FOR THE YEAR ENDED 31 DECEMBER 2023 Achievements and erformance Armed with the evidence provided by both the Law family Commission our wider research, PDI had its most successful yeaT ever in driving reform in 2023. Policy successes induded.. Cash for charities.. PBE'S eviden was the critical data that persuaded the chanlIor lo commit lo £100 million in grants to support charities struggling wf(h high demand and high energy costs. Growin ivin Thanks to PBE and our partners, governmènt stsrted to actively look at ways lo expand. enable and encourage more philanthropy in the UK. Action included establishing a diplomatic concierge Seice to support phllanlhropic flows into the UK, and a minister taking on the role of 'Philanthropy Champion,. Together, they supported a £35 million philanthropic investrnent in the UK 8soBank and a £1 billion philanthropic investment in a technology institute. Dt3win in dat8.' In response to PBE'S argument that more charity sector data is needed. the government comrnissioned a study to explore the potential of a civil society 'satellile aon1'. comTnissioned a major research prq8Ct on improving local charity infrastructure. and expanded slgnlffi¢ant surveys. Closer civil service relationw. PBE'S work prompted senlor CMI servants lo act to Increase civil servlce vdUntein9 and trust88 ijplakè, and brought senior Civil servants and civll so¢igty leaders tog&ther to make cross-sector, cross4Iepartmental plans for change. Togelhgr. the nlne policy changgs we secured over the course of 2023 set the foundatlons for a stronger (ivil sou8ty that is battèr ablè lo supp¢xt people with low wellbeing and to prevent peopl8 experiencing very low wellbéing in the first place. Alongsid8 our big picture, s8etor-wdè research pollcy work, we made a consdous 8ffort In 2023 to seek out and support coalitions of c4viI soci91y OTganisations in need of analytical help to build the evidence base on key issues affecting people with low wellbeir¥J. By putting our economic and research skills at the disposal of multiple partners. we w8re able to infomi the campaigning efforts of hundreds of charities at once, Our efforts supported collaboration in th8 Sector and drove coalescence around key, evidence-led. policy positions. In doing so. we increased the likelihood of making a difference in the lives of people with the lowest wellbeing. Evidoncin the ur enl need for beller su ort for disabled hild The Disabled Children's Partnership {DCPI is a coalition of over 100 organisations. bringing together large charfties Ilke Mencap and Scopè with smaller specialist organisauons. One of the Issues whlch unites them is Ihat of education. health and care plans IEHCPS) the slngle document whlch consolldales a young person's suppo PBE'S research for the DCP showed Ihat dem8nd for these tal plans has doubled bul that the support being off8red is increasingly found by famili8S to be insufficient or Inapproprfate. In 2021-22, over 11,ODO EHCPS were challenged al tribunal, meaning one tribunal was registered for every six n8w EHCPS issu8d. Of th8sè tribunals, 96% were ruled in favour of the parent, carer or young person challenging the local authority's docisions. That means over £60 million was wasted, and the economy loses lar more as parents give up work, Ghildren miss out on the support they need for their development, and the NHS likely lakes on more emergèncy care. This story had a major media impact, being covered by The Finanal Times, Daily Mail. Evening Standard, The Ind8pendenl, The Sun and on BBC Radio 4's Woman's Hour. hli htin the eo 18in ove Benèvolent chariti8s and charit*s that make grants lo indwiduals are brought together under an urnbrella organisalion called the Association of Charltable Organisalions IACOI. Collectively, these organisalions noted an Increasing d8mand for grants for whlte goods over the course of cost-of-living crfsls, with fepairs out of Teach lor Ihose struggling the most and an increasing number of people finding themselves with no recourse to public ftjnds. They ther8for8 lumad to PBE frjr more formal analysls.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Our work showed that 480,000 households, or 1.2 million adults and children. in the UK are missing al least one essential Large appli8n¢e. Further. having a large appliance could improve wellbeing by 8 value of £7,200 per adult per year lived with an appliance- or by as much as £6.7 billion a year across 940.000 adults. The analysis headlined ITV News. and the ACO has U88d the report to bring tog8ther 14 granl-makers to collaborate on ending appliance povgrty. Shinin hl on the inadfj of looked-after chiklren fundin A coalition of the UK'S leading children's charitles turngd to PBE for analyts'cal support for a third year runnlng in 2023, r8flé¢ting the impact that our previcyjs work had mada in helplng lo reverse a decade of decline in fvndlng for children's services. PBE'S 2023 analysis for tha NSPCC, The Children's Society. Adon for Children, Bamardo's and Ihe National Children's Bureau showed that £4 £5 of Ihg additional £800 million of children's services spending in 2021-22 went into late intervention serwce5. Relative to 2010-11, the number of children entering resid8ntial care has increased by almost four-frfths {79%1, but spending on those children has only risen by just under two-thirds 163%). Meanwhile spending on earfy inteTvention setvicès, such as Sure Start children's ¢8nlres and services for young people. fell by more than 45% over the same peri(xJ. Mukiple local authorities have referenced the report at fvll council meetings while discussing budgets, and it was used by the Local Govemment Association ILGA} as a key piece of evidence for their influencing of the Autumn Statement. The children's charitles Continue to use this analysis lo highlight tha importance of delivering a children's services system which enables a gater number of children to stay with their families. more young people to grow up In stable and loving homes, and fewer children lo experience abuse. negl8cl. harni. or exploitation. The charities tell us they arg seeing more recognition for the issue as a result of the work. Workin wFth charities across fhe UK In terms of our widar support for th8 charfty sector, in 2023 we supported more tharities than ever before.. We dèlivered 159 s8niices lo provide 137 charities and other purposeful organisations wth ways to better understand, measure and communicate their impact, and lo make the best possible use of their data. This was a 71 V. year-on-year increase in the number of organisations provided wth support and took PBE'S all-time total above the 500 mark. As our activity level has scaled however, the high quality of our services has been maintsined. On average, the organisalions we worked with in 2023 rated their likelihood to recommend fAJr sejvlces al 9.5 out of 10. Typically, the impact of PBE'S services last well beyond the original intervention. The Capacity PBE builds. the skills we confer, the research we undertake. and the relationships we estsblish can transform the activity of arb organisalion over the longer term. In 2023. charS1ies told us they had used what they galned accessin9 PBE'S servlces to.. Impmve hotv th&y und&rst8nd and demonstrate their impact over the long term. The Youth Sport Trust is now using what it laamed from a PBE Unlocking Impact Workshop and follow-up sessions wrth PBE'S economists to enhan its evaluation measures lo batter sUPPOrt childrèn and young p80pIe. Redefine th&ir str8tegy. Action Cèr8bral Palsy has used the logic chain developed at one of PBE'S Unlocking Impact Workshops to redefine Its strategic approach and sat a MO impactful long-t8rm direction for th8 organisation. Secure funding. stem4 has us8d PBE'S report to secure an NHS grant to expand its sarvices to support young peopl& with eating disorders. as w811 as a research grant to lest the effectiveness of ils apps to reduc8 NHS waiting lists. Use dala to make impaclful interventions. The Public Law Prolgct has ulillsed the volunteer PBE matched it wth to train rts whole loam in data visualisation, n¢)w that the organisalion understands Ihe potential of it. Enhanco tlpeir govemance. The volunle8r PBE originally matched to Energise Bamsl8y lo improve its financial mcKl&lling ha5 joined its board. He conlillues lo help the organisation with ils finances and approaches to couneils and housing associations.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 In PBE'S pursuit of greater impact in 2023. we trialled new approaches, models an¢J servicès with organisats'ons that have substantial reach. For example, we helped funders to establish an approach that works for them to measure the impact they are having through the charities they fund. Thls includes supporting granl-maklng trusts and foundatlons, bul also local authorftlès. By worklng wlth East Sussex County Councll. for example, we were able lo support a substantial organi5ation to develop a logic model and evaluation methods for hornelessness prevention, which has the potential to affect hundr8ds of people with very low wellbeing. Financlal fevlew Total income for 2023 stood al £1,613.829, drawn from a combination of grants, donations, consultancy and gift aid 12022.. £982.044 NB income was artificially low in 2022 85 the 2022 Law Family Commission on Cniil Society funds were received in 2021 and Carried over into 2022 as restricted TeseTves to be fully expen¢Jedl. In 2D23 wo successfully mel our strategy to build the pipeline of research funding, largely thanks to several new multi-yoar programmatSc grants. This also contributed lo the diversification of our income sources, thereby continuin9 ID d8-risk our income proflle. Restricted income for the year stood at £426.89412022: £301.6001, wlth contlnued funding for speclfic projects from Portlcus, CMY Bridg8 Trust and the Law Family CharTtable Foundation and new multi-year funding from CAF. Income opportunities are generated by our in-house Dev8lopment team, and we are regulated by Ihg Fundraising R8gul8tor. W8 do not use a professional fundraiser or commercial participator and have receNed no complaints from the publ1¢ In relation to our fundraising. We are grateful for the continued support of Several grant making trusts, induding CAF, City Bridge Trust, Garfi8ld Weston, tha Golden Bottle Trust. the Law Family Charitable Foundation, Mohn Wesllake. and Porticus. Additionally, our thanks go to corporate funders such as Weil. Gotshal & Manges LLP, and OakNorth Bank PLC, and lo all our major donors. Expenditure in 2023 was £1,452,131 {2022.. £1,568,797), a slight year-on-year redudion due lo Ihe complgtion of thg Law Family Commission on Civil Society and a corresponding reduction in extemal commissioning and polling. At the end of the year, headcount remained at the steady slate of 1812022.. 181. Reserves olic The nel result of our income and expenditure outturns was a surplus of £161,698. This comprisad a £65.253 surplus in restricted activities and a £96,445 surplus in unrestricted a¢tivilies (reflecting our linancial 51ralegy in 2023 to build our reserves to reflect the larger cost base of Ihe organisallonl. Our policy is to maintain free reserves lunr8stricled funds minus any fixed and intangible assets) that al any time cover our unreslricled operating expenses for at least thre6 months, with an upper limit of six months_ The policy is sel ID miligale a key risk to PBE, namely periods of reduced income caused by our, al-llmes, 'lumpy' funding model. Given the unrestricted expendrture profile al the end of 2023, the policy dictate5 that we hold solnewhere between £271.000 and £543,000 in free reserves. At the end of 2023 our ft6è reserves totslled £369,516. The charity maintained restricted reserves of £195,375 at year-end, lo be expended in 2024 on CAF, the Law Family research projacls, and Porficus. The charity wnainlained no designated funds. In agreeing the organisation's budget for 2024. the board was satisfied that the funding pipeline ensures that the organi5ation remains within the reserves policy. The board has approved a financial strategy for 2024.2026 10 further grow our resarves incr8m@ntally to reflact both the larger size of the organisation and the increased risk of having pariods of lower income given the longer lead Umes associated with research funding. The reserves policy is reviewed annually by the Finance. Audit and Risk Committee {FARComl and by the board. The board carries out regular reviews ol the charity's financial perfomiance and r8seN8s position. 11 consklers that the charity has adequate financial reserves to continue to deliver its plans. It has a reasonable expectation that it wll have adequate resources to continue lo operate for the foreseeable future. Tha trustses believe that th8r8 ar8 no material uncertainties that Call into doubl the charity's ability lo continue its operations. Th8 accounts have th8refore been prepared on the basis that the charfly Is a going Gonm.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Risk mana ement The truste8s are responsible for ensuring that the charity has an appropriate system of risk managenI and controls. They are also responsible for safeguartling the assets of the charity. and for taking reasonable steps to prevent fraud and other irregularities. FARCOM works closely with the executive lo identtfy, manage and mitigate approprlale rfsks through a risk register, and to report progress lo board meetings. Trustees have a programme of controls to manage financial rlsks through managemènt accokjnt reporting and nSideratiOn of liquidity, cash flows and going concern stslus. The key iSSLtes identified in the risk re¢Jister in 2023 remained Ihe potenti81 loss of InMe or difficulties with res8rves, as w8 moved away from the Law Family Commission work and bulll the pip81ing of research fundlng. Mitigants inclLKJ8d racwiting a dedicated grant and programmatic fvndraiser and increasing th8 number of researchers and economlsls to enable the executive to focus on fundlng applications. Future lan5 Alongside the help of our pathers and supporters. PBE'S success in 2023 was built on thr88 solid foundations: the work of the Law Family Commission on Civil Society. our long track record of supporbng charities In ever- improving ways, and our relationships with the economist profession. The Law Famlly Commission enabled us to apply our research skills lo major issues affecting society in the UK. tr> grow our networks, and to deliver meanlngful policy change. Our services ground all we do in the organisalions which are making a drfterence day after day. And for nearfy 15 years, we have operated at the intersecfjon of economists and lh¢ charitable sector, serving as a plvolal link that facilltstes collaborallon bettveen th&s8 ttvo sectors. In 2024, we enter a new Ihree-year strategic phase. In continuing to pursue our mission of using economic analysls and the uniqu8 insvjhl provided by our connection lo the social sector to help charities, funders, firms and policymakers lo coll8ctsvely tackle the causes and consequen¢es of low personal wellbelng In the UK. we have established three priority ambitions.. More Im act.. We wlll b8 scaling our exi51ing servlce delivery work th nol-for-proflt organlsallons auoss the UK, developing new products and reaching new audiences within the public, private and social sectors, and continuing to gri)w and diversity our funding base. 11. Dee erim act.. We will devglop expertise across more policy themes assoualed with low wellbeing, grow and strengthen our network of partners lo amplify OLJr influence, and 5UPPOrt better policy and practice by raising the bar on data and evidence. Better workin ' We will agree, develop and display an intèrnal Culture that priorttises the wellbeing of our workforce, improvè our internal processes to better support our working practices. and invest in our managemgnt expertise and personal development.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Structure overnance and mana ement PBE is a registered Charity and a company limited by guarantee and is governed by 11$ memorandum and articles of association. The company was incorporated on 17 March 2009 and registered as a Charty on 15 July 2009. The Trustees. who are also the directors for the purpose of company law, and who served durfng the year and up to thg dat8 of signature of Ihg financial slalements were.. Lord Gus O'Donnell- Chair Matthew Brumsen - Mce Chair Dr RubinaAhmed David Gregson Akiko Hart Edward Humpherson Jonalhon Loynes Mich918 Oliv8r Belinda Phipps Sir David Ramsden Damien Régent- Trgasuror J8nny Scott (Appointed 7 Sept8mber 2023) (Appointed 7 September 20231 IAppoir)ted 13 March 20231 (Rgsigngd 17 January 2023) PBE is govemed by a Board of Trustges which meets up to four tim8s 8 year. Trustees are appointed by Board resolution. In selecting new Trustees, the Board utilises 3 Nominations Committee to consider the skills, knowledge and experienco n88ded for the effective running of the charity. Since 2017, Trustees are initially appointed for a term of Ihree years and may be reappolnted al the annual retirement meeting for up to Iwo further temis. Th8 Board is responsible for Iho Strategic direction of PBE and for appointing the Chief Executive. Charity staff are accountable to th6 Trustees through the Chief Executive and carry Out the day-to-day operations of the Charity in a¢cordanco with the pollcies and procedures approved by the Board. The Board has five sub-commlttees: The Finance, ALJdit 8nd Risk Committee IFARComl has Iwo Trustee members (Darnien Régent, Chair, and Ed Humphersonl and is an advisory (x)mmittee of the Board. Its main duty is to help the Board ensure that all matters relate(I to tha slalutory audit and the risk register are dealt with appropriately and to review tt)e financial p8rformance of the charity. FARCOM leads the work of the Board on the statutory audit, reviews rlsk management PTocesses including the risk register. and helps ensure that the charity compliès with all aspècts of the law. relevant legislation and good practi. The Policy, Polllics and Communications Committee IPolComl has three Trustee members (Jenny Scott, Chair, Akiko Hart and Damien Régenll and is an advisory wmmittee of the Board. The ¢ommittge provides greater Iruslee oversight of PBE'S policy development, approach to policymak8rs and external communications. It reviews the risks related to communications, the principles by which the tharity should undertake its communications. policy development and polillcal engagement, and il oversees the crisis communications process. The Remuneration Commlttee IRemComl has ttvo Trusteè mèmb8rs (Belinda Phipps, Chair, and Jenny Scott) and is an admsory committee of the Board, advising the Board on all matters related to stsff ompensatlon. The executivè undertook 8 salary banchmarklng exerclse In 2022, wllh a payroll SP8cialisl, lo ensure staff were being fairly Compensated. The cownmittee approved 8 three-year staged approach to salary incr8as8S tg ensure ¢ontinuod focus on hlgh calibre recruf(ment and Telention of urrent staff.
PRO BONO ECONOMICS TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The Development CommTttee (Devcoml has four Trustee members (Matthew Brumgen, Damien Régent, Belinda Phipps and David Gregsonl. The committee was sel L¢P as an advisory panel to consider PBE'S fundralsing strategy as PBE diversifies its income base. The Nomin8tions Committee (Nomcoml has five Trustee mernbers (Lord Gus O'Donnell. Chair, Belinda Phlpps, Jenny Scott. Rubina Ahmed and Ed Humphèrson}- The committee considers the diversity of skills and expèrience represented within the Board and manages subsequent Trustee recruitment. In 2023, Trustees updated, review8d and approved the charity's risk register. delegation of authority, investmenL accounlSng and safeguarding policiès. Prior lo their appointment, new Trustees go through an induction process, and are provided wNh a copy of the Memordndum and Arti¢les of Association, th8 Trustees, Annual Report and Finanual Slatements, together with other relevant infomiation, and are invited to spend time with the charity executive. None of the Trustees has any beneficial intèrèst in the company. All of the Trustees are members of the company and guarante& to contribute £1 in the event of a winding up. Indemnlty insurance is held for the Truslegs. Dlsclosur• of Infomiation to audltor Each of the Trustees has confirmed that thère is no inforn)ation of which they are aware which is relevant to the audit. bul of which the auditor is unaware. They have further confim)ed that they have taken appropriate steps to lentfy such relevant inforrnation and lo establish that the auditor is aware of such Infomalion. The Trustees, raport was approved by the Board of Tnjslees. Lord Gu 'Donno11- Chalr Chair of Trustees Dated: ty+.-O.fl...V"
PRO BONO ECONOMICS STATEMENT OF TRUSTEES. RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The Trustees. who are also the directors of Pro Bono Economics for the purpose of company law, are responsible for preparing the Truste8s' Report and the financial statements in Bccordance with applicable law and United Kingdom A¢nting Standards (United Kingdorn Geneially Accepted A¢¢ounting Praclicel. Company Law rgquires the Trusteos to prepare financlal slalements for aach financial year whl¢h glve a trua and fair view of the Stale of affairs of the chaiily and of the incoming re8ourc8s and application of resources. including the income and experKliture, of the charitsble company foi that year. In preparing these financial statements. the Trustees are required to.. select suitable accounting policies and then apply them consistenuy., - obsgrv8 the mathods and prinrAples in the Charities SORP- make judgements and estimates that are reasonable and prudent., stste whether applicable UK Accounting Stsndards have been followed, subjecl to any malerial departures disclosed and explained in the financial statements. and prepare the flnanclal statements on the golng eoncern basls unless it Is Inappropri8te to presume that the charity will ConnUe In operation. The Trustees are responsible for keeping adequate accounting records that disdose with reasonable accuracy al any lime the financial position of the charity and enable them lo ensure that the financial ststements wmply 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. 10-
PRO BONO ECONOMICS INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF PRO BONO ECONOMICS Opinlon We have audited th8 financial statements of Pro Bono EconorTliCS Ilhe '¢harfty'l for the year gnded 31 December 2023 which comprise th8 Statèment of financial actsvilie5, the balanc8 sheet, th8 Statement of cash flows and no18S to the financial ststements. including signrficanl accounting policies. Thè financial r8porting framèwork that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The FInanal Reporting Standard applicable in Ihe UK 8nd RepublK of Irgland (United Kingdom Gen8rally Accepted Accounting Practico). In our opinlon. the financial ststem8nts_' giv8 a true and fair viaw of the slal8 of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of reSoUs, for the year then end8d', have been properfy prepared in accordance with United lfjngdom Generally Accepted Accounting Practice., and have been ppared in accordance with thg requlrements of the Companies Act 2006. Basis for opinion We conducted our audit in accordanc8 with Intemational Standards on Auditing IUKI IISAS (UK)) and applicablo law. Our responsibililios under those standards are lurther descfibed in Ihg Auditorfs responsibilities for the audit of the financial statements se¢lion of our report. We are independent of the charity in accordance with the ethical requirements that are relevant lo our aLKlit of the financial statements in the UK, including the FRC'S Ethi¢81 Standard, and we have fulfilled our other ethical responsibilities in a¢cordance wrth thesè requirements. We beli8ve that the audit evidence we have obtained is sufficient and appropri8t8 to provlde a basis for OUT opinion. Concluslons rÈl8ting to going conc•m In auditing the financial slalements, we have concluded that the Tru8lee8' use of the going concern basls of accounting in the preparation of the financial statemgnts is appropriate. Based on the work we have performed. we have not identmed any material uncertainties relating to events or condStlons that. Indlvldually or collectively. may cast slgnlfScarit doubt on the charty's ability to continue as a going concam for a period of at least tsvelve months from when the financial statements are authorised for issuè. Our responslbllllles and the responsibilities of the Trustees with respect to going conc8m ar8 described in th relevant sèctions of this report. Other infomiation The other information comprises the irrformalion included in the annual report other than the financbal ststem8nts and our audilorfs report thereon. The Trustees are responsible for thè other infomiatlon contsined within the annual report. Our opinion on th8 financial stslernenls does not cover the other Information and we do not express any fon of assurance conclusion thereon. Our responsibility is to read Ihe other information and, in doing so, consider whether the other infomiation Is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears lo be materially misslaled. If we identify such material inconsislen¢ies or apparent material misstatements, we are required to detemiin8 whether this gives rise lo a material misstatement in the financial stat8menls themselves. If. based on thg wort( we have performed, we conclude that there is a material misstatem8nt of this othèr infomiation. w8 ar8 r8quirad to report that fact. W8 have nolhlng to report in this regard. Matters on which w• arè requir¢d to report by exception We have nothing lo report in respect of the following matters in relation to which the Charities (Accounts and R8portsl Regulations 2008 require us to report lo you if, in our opinion.. the information glven in the financial statements Ss Inconsistent In any material respect with the Trustees, rgport," or sufficient accounting records have not been kept.. or the financial statements are not in 8greemenl wth the accounting re¢ords,' or w8 have not received all tho infornialSon and explanaonS we require for our audlt. 11
PRO BONO ECONOMICS INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF PRO BONO ECONOMICS Responsibllltie$ of Trustees As gxplainod more fully in the stslement of Trustees, responsibilities, the Trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparallon of th8 financial statements and for being satisfied that thèy give a true and falr view, and for such Internal control 8s th8 Trustè6s determine is necessary to enable the preparation of financial slalemenls that are free from material misslalemenl, whether due lo fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charty's ability lo continue as a going concern. disclosing. as applicable, matters related to going conceTn and using the going concem basis of accounting unless the Trustees either intend lo liquidate the charitable company or lo cease operations, or have no realistic altemative but to do so. Audltorfs r•sponslbllltl•s f¢r the audlt of thè flnanclal statements Wa have been appointed as auditor under sgction 144 of the Charities Act 2011 and r8port in accordance wlh the Act an(J relevant regulations made or having effect thereunder. Our objectives are lo 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 audilorfs report that includes our opinion. Reasonable assurance is a high 18vel of assuranca bul is not a guarantee that an audit conducted in accordance with ISAS IUKI wll always d8lecl a mat8rial misslat8menl when il @StS. Misslalemenls can arise from fraud or error and are considered material if, individually or in the aggregate, they could asonablY be expected lo influ8n¢8 th8 ecL)nomlc declslons of us8rs lak8n on th8 basis of Ih8s8 fingncial slat8m8nts. Irregularibgs, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our iesponsibilitie5, outlined above, lo detect material misstatements in respect of irregularities, induding fraud. The extent lo which our procedures are capable of detecting irregularities, in¢luding fraud, is detailed below. Our approach to identifying and assessing the risks of material misstatem&nt in respect of irregularities. induding fraud and non-compliance wllh laws and ragulatSons, was as follows.. the engagem8nt partnèr ènsured that thè 8ngagement t8am coll8ctivaly had th8 appropriat8 comp&lence, pabililies and skn'lls to identify or recognise non-compliancè with applicable laws and regulations; we identified the laws and regulations applicable to thg charity through dlscusslons with Trustees and other managam9nl, and from our ¢ommer¢ial knowledge and experien¢e of Ihg seclor., we focused on sp8cific laws and r8gulations which wa considared may hav8 a dir8Ct m8t8rial èff8ct on the rinancial statements or the operations of the charlty. IncludSng the Companles Act 2006, the Charftles SORP. tsxation, Èmploymènt, environmental and health and safety18gislation; w8 assassad the 8Xtant of complianc8 with the laws and regulations identified above through making enquiries of management and inspg¢ting1ggal corr&spondence', and Identifièd laws and règulations wer8 communicat8d within the 8udlt team regulèrly and the team remained alert to instances of non-compliance throughout the audit. We assessed the suscèptibility of thè eh8rity's financial statements to materfal misstatement, Including obtalnlng an understsndlng of how fraud mlght occur, by.. making enqulrfes of m8nag8m8nl as lo where they considered there was susceptibility lo fraud. their knowledge of actual, 5U5pecled and alleged fraud., considerfng the Internal conlroly in place to mttlgate risks of fraud and non-compliance wlth laws and regul8llons. 12-
PRO BONO ECONOMICS INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF PRO BONO ECONOMICS To address the risk of fraud through rnanagement bias and override of controls, wè.. perfomied analytical procedures to Identify any unusual or unexpected relatlonshlps. tasted Journal entries to identify unusual transactlons", 8ssessed whether judgements and assumptions ma¢Je In detemilnlng the accounting estimates were Sndlcative of potential bias.. and investigated th8 ralionalg behind signlflcanl or unusual transactions. In response to the risk of irregularities arKJ non-wmpliance with laws and regulations, we designed procedures whlch Included, but wer8 not limited to: agreeing financial statement disclosures lo underfying supporting d0cum0ntatn'. rèading the minutes of m8etings of the board of Trustees., enquiring of management as lo actual and potential litigation and daims- and remewing corr8spondence wlh HMRC. There are inherent limitations in our audit procedures described above. The nK)re removed that 18ws and regulations are from financial transactions, the less likety it is that we would becorne aware of non-compliance. Auditing standards also limit the audit pr¢)cedures required io identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal ¢orrgspondenGe, if any. Material mbSStatem8nls that arlse due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collus¢on. A further de5CriPtion of our responsibilities is available on the Finanual Reporting Council's website al.. htlps.'Il www.frc.org_ukJauditorsresponsibilities. This description fomis part of OUT audilorfs report. Use of our report This report is made solely to the charity's Iruslees, as a body. in accordance with part 4 of the Charf(ies (Accounts and Reports) Regulations 2006. Our audit work has been undertaken so that we might stale to the charitWs trustees those matters we are required to slate to them in an audiiorfs raport 8nd for no oth8r purpose. To the fullest extgnl permitted by law, we do not accept or assume responsibility to anyone oth&r than the charity and Ihe charity's trustees as a body, for our audit work, for this report. or for the opinions we hav8 formed. Stephen Meredith BA FCA DChA IS•nlor Statutory Auditor) for and on behalf of A115otts LLP 191912024 Chartered Accountants Statutory Auditor Friary Court 13-21 High Street Guildford Surrey GU1 3DL Alliotts LLP 15 eligible for appointment as auditor of th& charity by vlrtue of its eligiblllty for appointmènt as auditor of a company undar sgdion 1212 of the Companies Act 2006. 13.
PRO BONO ECONOMICS STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2023 Unrestrlcted Restricted funds funds 2023 2023 Total Unreslriclgd Reslrictgd funds funds 2022 2022 Total 2023 2022 Notss Income from: Donations and legacies Charitablo activilTes Investments 1,043,016 138,889 5.030 426,894 1.469.910 138.889 5.030 638,624 41,500 320 301,600 940,224 41,500 320 Total Incomo 1,186,935 426,894 1,613,829 680.444 301,600 982,044 enditure on: Ralslng fund8 2SS,924 32,326 288,250 171,398 17,194 188.S92 Charitable activities 834,566 329.315 1.163.881 673.774 706.431 1.380.205 Total •xp¢nditurn 7,090,490 361.641 1,452.131 845,172 723,625 1,568,797 Net incomellexpenditure) for the yearl Net movement in funds 96,445 65,253 161,698 {164.7281 {422,0251 {586,753) Fund balances at 1 January 2023 301,381 130,122 431.503 466.109 552.147 1.018.256 Fund balancos at 31 December 2023 397,826 195,375 593.201 301,381 130.122 431.503 The slatement of financial activities indudes all gains and losses rgwgnised in Ihg year. Tha statèment of lin8ncial a¢tivf(ies indude$ all galns and losses recognised In the year. Al income and expendlture (ierive from continuing aclivitles. The statement of financial activities also complies with th& r8quir8m8nts for an income and expendiknr8 account under the Companies Ad 200fj. 14-
PRO BONO ECONOMICS BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Notes Fixed a$sgts Tdngibl¥ ass&tS 12 8.310 12.5U4 Currant assets Debtors Cash at bank and In hand 13 52,200 606,045 138.230 354,892 658.245 493.122 Credltors: amounts falling du• wlthln on• year 14 173,354) 174,1231 Net current assets 584.891 418,999 Totsl assets less curr•nt Ilabilitie5 593,201 431,503 Income funds Reslricled funds Unrestricted funds 16 195,375 397,826 130,122 301,381 593.201 431,503 The charitablè company is entitled to th8 exemptlon from the audlt requirement contained Sn sèctSon 477 of the Companies A¢1 2006, for the year anded 31 De¢8mber 2023. although an audlt has been carried out under section 144 of the Charities Act 2011. The Iruslees acknowletlge 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 vi&w of the stsle of affairs of the charitable company as at the end of the financial year and of ils incoming resources and application of resources. including ils income and expendilure, for the financial year in accordan with the requlrements of sections 394 and 395 and which OthernLS8 comply wllh the requirements of the Companies Acl 2006 relating lo financial statements, so far as applicabla to thè charitsble company. The members have not r8quired the charitabl8 company lo obtain an audlt of its financlal stslements under the requirem8nts of the Companies Act 2006, for the yea( in question in accordance with sgclion 476. These financial statements have been Prepared in accordance with thg provisions applicable lo companies subject lo the small companies regime. The financial statements were approved by the Trustees on .Q¥fr. Lord Gus Tru$tso 'tlonnell - Ch Company registration number 06849844 15-
PRO BONO ECONOMICS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Notss Ca$h flow$ frorn operating activiti•s Cash generated froml{absorbed by) operations 22 249,459 1644,680} Investing activiti•s Purchase of tangible frxed assets Investrnent incK*me received 13,3361 5,030 (11,3541 320 Net $h generat•d froml{u$•d Sn Inve$tlng activiti•$ 1,694 111,034} Net cash US in financing actlvltlès Net increaselldecrease) In cash and cash oquivalents 251.153 (655,714) Cash and cash equivalènts at beginning of year 354,892 1.010.606 Cash and Cash equtvalents at end of year 606.045 354.892 16-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollcle$ Chority infom)allon Pro Bono Economics is a private MpanY limited by guarant88 in¢orporated in England and Wales. The roglslered office IB Th8 Factory, 120 London Road. London. SE1 fjLF. 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" I'FRS 102.1 and the Charitles SORP 'Accountirig and Reportsng by Charthes: Statement of Recommended Prath'ce applicable lo charities preparing their accounts in accordance wth the Financial Reportlng Standard applicable in the UK and Republic of Ireland IFRS 1021. leffective 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling. whlch is the functional currency of the charity. Monetary amounts in these financial slalements aig rounded to the nearest £. The financial statements have been prepared under the histOriC81 ¢o$l convention. The princspal accounting policies adopted are sel out below. 1.2 Going con¢¢rn The Trustees are confident the charity has the resources lo meet its liabilities as they fall due for al least 12 months from date of signing the accounts. Henc8. they consider the charity to be a going concem. 1.3 Charitable funds Unrestricted funds are available for use at the disu8lion of the Trustees in furtherance of their charitable objectives. Restrie funds are Subj8 lo specTfic conditions by donors or grantors as lo how they may be used. The purposes and uses of the restiicled funds are sel out in th8 notes lo the financial slalements. 1.4 In¢ome Income Is recognised when thè charity Is legally enlilled lo it aft8r any performance conditions have bgen met, the amounts can be measured reliably. and il is probable that income will be received. Cash donations are re¢ognised on receipt. Other donations are recogni88d once the charity has been notifie of the donation. unless performance conditions require deferral of Ihe 8mounl. Income tsx recoverable in relation to donations rec8iv8d under Gift Aid or deeds of covènant Is recognised al the lime of the donation. 1.5 Expendlturè Expènditure is recognis8d on the accruals basis. Liabilities are recognlsed as s¢)on as Ih8r8 is a 18g81 constrnctive obligation to pay. 1.6 Tangible fixod assets Tangible fixed assets are inllially measured al cost and SLJbsequenlly measured at cost or valuation, nel of depreciation and any impairment losses. Depreciation is recognised so as lo write off the cost or valuation of a5sels1855 their residual values over thelr useful lives on the followin9 bases.. Fixtures and fittings Computers 3 years 3 yèars 17-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollclos (Continued) The qain or loss arising on the dlsposal of an asset is determined as the difference belween th8 sal8 proceeds and the carylng value of the asset. and is recognised In the stslement offinancial a¢livitigS. Items are ¢apilalised where th8 nel expenditure value is greater than £500 and th8 8xp8ns8 is capital by natura. 1.7 Impalmient offixed assets At èach reporting end date, the charity reviews the carrying amounts of its tsngible ass8ts to delemiine whether there is any indication that Ih05e assets have suffered an impaim8nt loss. If any such indication 8xis15, the recoverable amount of the asset is estimated in order to determine the extent of the impairnient loss lif any). 1.8 Cash and cash equlvalents Cash and cash equivalents include cash in hand. deposits held at call wtth banks, other short-term liquid investments with original rnaturities of three months or less. and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.9 Flnan¢lal Instruments The charity has a18ct8d lo apply the provisions of Section 11 'Basi¢ Financial Inslrum8nls' and S8ction 12 'Other Finanual Instnlmgnts Issu8s' of FRS 102 to all of its financial instrumonts. Financial instruments are recognised in the charivs balance sheet when the charity becomes party lo the contractual provisions of Ihg instrurnent. Flnancial assets and 118billtles arè offset, with the net amounts presented in the fln8nclal ststemenls, when Iherg is a legally enforceable right to sel off the recognised amounts and there is an int&nllon to settle on a net basis or lo reall8e the asset and setue the liablllty 81multsneously. Basic financial assots Basic financial assets, which include debtors and cash and bank balances, are initially measured al transaction price including transaction costs and are subsequently carried al amortised cost using the effactive 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 markel rate of interest. Financial assets dassified as receivable wlthln one year ar& not amortised. Basic financial liabilitie5 Basic financial liabilrties, induding creditors and bank loans are initially recognised al Iransaclion price unless the arrangement constitutes 8 financing Irans8Ctlon, wh the debt instrument is measured at the present value of the future paymen15 discounted at a market rate of intere51. FinanGial liabilities classlfled as payable within onè year are not amorused. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations lo pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Arnounis payable are classified as curreni liabilities if payment is due within one year or less. If not, they are psented as non-current liabilities. Trade creditors are recognised initially al transaction price and subsequently measured at amortlsed cost using the effectlve Interest method. Derecognltlon of flnan¢lal liabilities Financial liabilities are derecognised when the charity's contractu81 obllgalSons expire or are discharged or cancg11gd. 18-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Ac¢ounllng pollcl•8 (Continuodl 1.10 Employoe benefits The cost of any urbused holiday enliuement is recognised in the period in vthith the employee's services are received. 1.11 Retir•ment benefits Payment5 to defined contribution retirement benefit schernes are charged as an expense as they fall due. Crltl¢al accountlng •slimats5 and ludgemonts In the application of the charity's acwunting policies, the Tru5tee5 are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent frorn other sources. The eslimales and associated assumptions arè based on historical experience and other factors that are consider9d lo b& relevant. Actual Tesults may dtlfer from these estimates. The estimates and undèrlwng assumptions ar8 r8viewed on an ongoing basis. Revislons to accountlng eslimales are recognisgd in th8 period in which tho oslimale is revised where the revision affects only that period, or in th9 period of the revision and future periods where the revision affects both Current and future periods. 19
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Donations and l•ga¢l¢$ Unrestricted Restrl¢téd funds funds Total Unrestricted funds Restricted fvnds Totsl 2023 2023 2023 2022 2022 2022 Donations arsd grfts Grants Donated goods and services 384,016 659,000 384,016 1,085.894 379,132 250,050 379.132 551,650 426.894 301,600 9.442 9,442 1,043,016 426,894 1,469,910 638,624 301,600 940.224 Donations and gifts Major gifts General donations Ev8nts incom8 Giftlj 365.000 5,647 1,926 11,443 365,000 5,647 1.926 11.443 361,000 6.125 373 11.635 361.000 6,125 373 11,635 384,016 384,016 379,132 379.132 Grants roc8ivablo for core activities Porticus Law Famlly Charltable FoundatSon Oak Foundation City Bridge Charities Aid Foundation Othèr 108.694 108,694 80,000 80.000 350,000 154,680 504,680 250,000 94.300 72,800 54,500 344,300 72,800 54.550 37.500 125,000 1,020 37.500 125,000 310,020 50 309.000 659,000 426.894 1.085,894 250.050 301,600 551,650 Charltsble adlvltl88 Supporting SuppoTting Charltl•s Charities 2023 2022 Fees for Services 138,889 41,500 Fees for serviS relates to consultancy incom8. As part of ourwork lo diversrfy our funding base we hav Increased the amount of consultancy work we undertake and have subsequently be¢ome VAT reglstered. -20-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Investsn•nts Unrnstrictèd Unreslricted funds funds 2023 2022 Interest receivable 5,030 320 Ralslng funds Unrestrlcted Restrlcted funds fund$ Total Unrestrlcted funds Rèstricted funds Total 2023 2023 2023 2022 2022 2022 Fundraising Stsging fundraising events Staff costs Support costs 17,333 203,017 35,574 17,333 233,198 37,719 7,349 137,422 26.627 7.349 152,681 28.562 30,181 2.145 15,259 1.935 Fundraising 25S,924 32.326 288,250 171.398 17,194 188,592 255.924 32,326 288,250 171,398 17,194 188,592 21
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Charitable aetlvltles Supportlng Charli1•8 External Resèarch & Affalrs Pollcy Total 2023 Total 2022 Stsff Costs Consultancy Economic associatgs Other service delovery costs ' 286.406 184.321 4.136 321,140 53.128 791,867 57,264 9,062 151.079 835.365 104,513 21,704 262.352 9.062 46,205 93.065 11,809 341,673 281.522 386,077 1,009,272 1,223.934 Share of support costs {see note 8} Sh8re of governan costs Is88 no18 49,476 25,643 54.691 129.810 133,120 81 9.452 4.899 10,448 24,799 23.151 400.601 312.064 451,216 1,163,881 1,380.205 Analysis by fund Unrestricted funds Restricted funds 310.331 90.270 228,753 83,311 295,482 155,734 834,6 329,315 400.601 312,064 451,216 1.163.881 For tha yaor ?nded 31 December 2022 Unrestricted fvnds Restricted funds 341,513 186.125 144,277 54,071 187,984 466,235 673,774 706.431 527,638 198,348 654,219 1,380,2Q15 Other Service Delivery costs include dir8Ct spend associated with the Portlcus grant of £37,726 and )nference spend associated with the CAF grant of £11,809. In 2022. it included direct spend associated with the Oak Foundation grant of £13.111 and Research & Policy spand on commissioning and polling of £85,187. -22_
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Support costs Support Governan¢e costs ¢osts 2023Support costs Govemaneè costs 2022 Depreciation Rent Office supplles Computer running costs Travelling expenses Insuranc8 Bank chargès Other staff costs HR consultancy 7.530 26,225 14,342 57,094 872 7.840 105 47,472 7.530 26.225 14.342 57.094 872 7,840 105 47.472 7.399 44,677 22,969 32,458 3,463 3,363 112 31.597 8.474 7,399 44,677 22,969 32,458 3,463 3.363 112 31.597 8,474 Aud51 fees Accountancy Legal and professional 7.788 6,139 16,921 7,788 6,139 16.921 6,600 11,340 12,381 11,340 12.381 161,480 30,848 192.328 154,512 30,321 184,833 Analysgd behveen Fundraising Charftable activities 31.670 129,810 6,049 24,799 37.719 154,609 21.392 133.120 7,170 23,151 28,562 156,271 161.480 30,848 192,328 154,512 30,321 184.833 Gov8manc8 ox)Bts Include payments to the audSlor8 of £7,78812022- £6,600) for audll fees. Other staff costs relat8 to stsff rguuitment and staff training costs for the year. Trustees None of the Trustees lor any persons connected with them) received any remuneration or were paid expenses during the year. 10 Employees Th8 average monthly number of employees during the year was: 2023 Number 2022 Number 18 18 -23-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 11J Employees (Contlnued) Employm¢nt Costs 2023 2022 Wages and salarfes Social se¢urfty costs Other pension costs 873.659 92,572 58.834 847.329 87,173 53,544 1,025.065 988.046 Th• number of employees whose annual remuneration was more than £60,000 is as follows.. 2023 Number 2022 Number £60,000- £69,999 £70.000- £79.999 £120.000 - £129,999 Remun•ratlon of kgy management personnel The remuneration of key management personnel (defined as Chief Executive Officgr. Operations and Finance Director. Director of Development. Director of Services. Research and Policy Director and Policy and Communications Directorl is os folbws. 11 Taxatlon The charity is exempt from taxation on its activits'es because all ils income is applied for ch8rilable PUTposes. 12 Tangible fixod a$$els Flxtur•s and fiiting5 Computers Cost Al 1 January 2023 Additions 6,841 31,979 3,336 38,820 3,336 Al 31 December 2023 6,841 35.315 42,156 Depreciation and Impalrment At 1 January 2023 Dgpreciation charged in the year 3,681 1,307 22,635 6,223 26,316 7.530 At 31 December 2023 4.988 28,858 33,846 Carrylng amount At 31 December 2023 1,853 6,457 8,310 At 31 December 2022 3,160 9,344 12,504 -24-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 13 Debtorn 2023 2022 Amounts falllng duè wlthln one year: Trade deb1015 Other debtors PrepayTnenls and 8cc¥ued income 21,150 2,2bU 6.650 129,330 31.050 52.200 138,230 14 Credltors: amounts falling duo wlthln one year 2023 2022 Other taxation and social wurity Trade L¥editors Accruals and deferrad income 35,588 3,913 33,853 26,027 13,018 35,078 73,354 74,123 15 Rotlrgmeht beneflt schemes Dofinod contrlbutlon schemè¥ The charity operates a defined conlributKJn pension schème for all qualifying employees. The assets of the scheme are held separately from those of the charity in an independendy administered fund. The charge to the SOFA in respact of defined contribution schemes was £58,83412022 - £53,544). -25-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 16 Restricted funds Th8 restricted funds of the chartty comprise the unexpended balances of donations and grants held on trust sublect to speclfic conditions by donors as lo how they may be used. Movement in funds Movement in funds Incorning resou¢$ Balance at 1 January 2022 Bilance at Incoming Resources1 January 2023 resources expended Balanco at expended 310ocamber 2023 Charities Foundation The Oak FoundatSon Cty Bridga The Law Family Charitable Foundation The Law Family Commission Porbcus M&tropolltsn Public Gardens Associatoon 125.000 162.140} 62,860 22.336 4,167 72,800 54,500 191.5361 154.5001 3,600 4.167 {3.600) (41.667) 37.500 130,000 {114.1791 15.821 468,597 57.047 94,300 80,000 1520,5421 157.0471 42,355 80,000 24,680 108,694 {67,0351 (72,0001 116,694 1,020 11.0201 552,147 301,600 1723,6251 130,122 426,894 {361.6411 195.375 The Charlll8s Ald Foundation funded a programme to put the case of civil society at the forefront of pollcymak8rs' minds before and aft8r the General Election. Funds were spent in the year. with the balance carried forward as restricted reserves to be spent in 2024. The 08k Foundation delivered support lo a portfolio of homelessness charities. The grants received have been spent during 2023. The City Bridge Trust project supports charities providing servlces In London. The grant rec8ived was spent within the year. The Law Family Charitable Foundation funded a progiamme of research around specillc reMMendationS from the Law Family Commission on Civil Soaèty. The grants received in 2023 were largely Spent during the year. The Law Family Commission on Civil So(#8ty 1$ a programme of ground-breaking research into how the potential of civil society can be unleashed. The grants carried fOard from 2022 and recelvèd In 2023 have been spent during thè yèar. Porticus granted funds to support the project, InlegralED bridge.. economics of wellbeing for thildren in adversity. The grant received in 2022 was largely spent in 2023 and the grant received in 2023 was carried forward into 2024 as restricted r6s8rves lo be spent in 2024. -26-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 17 Unrestrlcted funds The unrestricted funds of the charity comprise the unexpended balances of donations and qrants which are not sublect to specific conditions by donors and grantors as to how they may be used. These include designated funds which have b68n $8t aside out of unrovtrictcd fund8 by the trugteeg for gP8¢ifi¢ purposès. At 1 January 2023 In¢omlng Resourcgs Tesource5 gxpended At31 Decemb¢r 2023 General funds 301,381 1.186,935 (1,090,490) 397,826 Previous y8ar'. Al 1 January Incoming r8sources Resources expended A131 December 2022 2022 General funds 466.109 680.444 {845.1721 301,381 18 Analy$l$ of net assets between funds Unrestricted funds 2023 R¢strl¢ted lund$ 2023 Total 2023 Fund balances at 31 D¢¢•mber 2023 are repr•sÈnted by- Tangible assets Current asselsllliablllllesl 8,310 389,516 8,310 584,891 195,375 397.826 195,375 593,201 Unrestricted funds 2022 Restricted fvnds 2022 Total 2022 Fund balances at 31 December 2022 are represented by: Tangible assets Current asselsllliabll1esI 12,504 288,877 12,504 418.999 130.122 301.381 130,122 431,503 -27-
PRO BONO ECONOMICS NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 19 Operating lease cornmltm•nts At th8 reporting end date th8 charity had outstandlng commilments for future minimum lease payments under non-canc8llable operating leases, which fall duè as follows.. 2023 2022 Within one year 15.000 14,622 20 Relatod party transactlons Remuneration of key managomént personnel The remuneration of koy management personnel Idefined as Chief Executive Officer, Operations and Financ Director, Director of Development. Diroctor of Services, Research and Policy D1ctOr and Policy and Communications Director) is as follows. 2023 2022 Aggregate compensation 573,596 460.709 There were no other disclosable related paty Iransadions duiing the year12022- none). 21 Analysls of changos In n•t funds The charity had no material debt during Ihe year. Cash generatsd from operations 2023 2022 Surplusl{deficlll forthe year 181,698 (586,753) Adjustments for.. Investment income recognised in staleménl of finanaal adivities Depreciation and impairment of tangible fixed assets 15.0301 7,530 13201 7,399 Mov8menl8 In working capital= Decreasellincreasel in dgblors (Decreaseyincrease in creditors 86,030 17691 7,3581 12,352 Ca$h generat•d froml{absorbod by) operations 249.459 1644.680} -28-