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2021-12-31-accounts

The Charity for Civil Servants ANNUAL REPORT AND ACCOUNTS for the year ending 31 December 2021 The Clvll Service Benevolent Fund operating as The Charity for Civil Servant5 Caring, home-schooling, changing jobs and mounting debts just got too much and I didn't know what to do. Thank you for all your help. Rohaan. Scott15h Prlson Servlce Leaving an abusive marriage would have been impossible for me and the children if it weren't for the Charity. We simply can't thank you enough. Lucy. Department for Work and Pensions Details w be thanged to protert identity

Contents

CHAIR’S FOREWORD
TRUSTEES’ ANNUAL REPORT COMPRISING:

TRUSTEES’ STRATEGIC REPORT

TRUSTEES’ ADMINISTRATIVE REPORT
AUDITOR’S REPORT

FINANCIAL STATEMENTS		 PAGE
1
2-30
31-34
35-38
39-61

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THE CHARITY FOR CIVIL SERVANTS

Chair’s Foreword

I am very pleased to introduce the Charity’s Annual Report and Accounts for 2021.

The pandemic has continued to challenge us all in ways which we couldn’t possibly have imagined just a couple of years ago. In line with the shifting Covid-19 guidance, necessary changes to longestablished ways of working have been essential for so many organisations. Whenever required, adapting approaches swiftly and working remotely where possible, has become a well-practiced response.

In this respect, the Charity has been no exception.

This report shows that in the face of all of these challenges, the organisation achieved over 90,000 instances of help on behalf of those in civil service community. Alongside all of the other crucial work continuing behind the scenes in the Charity in 2021, this is a record high - and I believe it should remain a great source of pride for the Board of Trustees, supporters, donors, partners and volunteers – and for everyone working so hard in the Charity itself, to make this possible.

Across 2021, furlough, bans on evictions and other key government alleviation measures were extended. This influenced the shape of support requested from the Charity which accordingly has continued to adapt its offer to reflect the issues coming to the fore through a second year of Covid. Working extensively and very effectively with Civil Service HR and a range of staff networks within Departments, initiatives helping people to deal with Grief and Bereavement, Smarter Working and the co-production of the highly successful 2021 Civil Service Mental Health and Wellbeing Conference are just a few of the highlights.

As Chair, I would like to thank the Civil Service Insurance Society (CSIS) and its Charity Fund– as our largest donor organisation – for their continued support and crucially important partnership. I would also like to offer my particular thanks to the Board of Trustees for their commitment throughout.

There has been some really important work done through 2021 within the Charity, notably on the CRM programme, which nears its ‘go-live’ in 2022. These changes will underpin a stronger future for the Charity, the foundations on which the drive for income generation can now build.

Like everyone, I continue to hope that 2022 offers lasting change for the better, with an effective path out of the Covid pandemic for all of us. But, whatever 2022 and beyond has in store, it has certainly been rewarding to know that the Charity has so successfully managed to continue helping people throughout the last year, at a time when they really needed that support.

For that, I’d like both to congratulate and to extend my gratitude to everyone in the Charity for their ongoing hard work and commitment. Well done and thank you.

Peter Schofield CB Chair, Board of Trustees

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

The Trustees of The Charity for Civil Servants present their Annual Report for the year ended 31 December 2021 under the Charities Act 2011 and the Companies Act 2006, including the Trustees’ Annual Report comprising the Strategic Report and the Directors’ Report under the 2006 Act together with the audited financial statements for the year.

Trustees’ Strategic Report

Objectives and Activities

The Charity’s Objects

[ “ For the public benefit, to relieve from suffering, hardship or distress (whether financial or otherwise), and to promote and sustain the wellbeing of Civil Servants, former Civil Servants, Public Body Employees or former Public Body Employees, employees and former employees of the Charity (and any predecessor organisation of it) and their dependants including without limitation by:

Given the large number of serving and former civil servants and public body employees (and their dependants) that fall under the Charity’s remit, the Trustees are satisfied that the Charity is providing public benefit under the Charities Act 2011. Further details are given under Achievements and Performance below. They are also satisfied that they have had due regard to the public benefit guidance published by the Charity Commission and in particular the requirement that the Charity benefits a sufficient section of the public.

[ The Charity’s Vision A supportive community in which everyone has the chance to live their life to the full.

The Charity exists to support all civil servants, past and present, when times are tough, listening without judgement and providing practical, financial and emotional support. Alongside financial grants and issue-specific advice, we continue to develop and enhance our services, offering digital and self-help tools and techniques, which meet the changing needs our Civil Service community.

We help people to deal with the complex challenges, which anyone can face throughout their lives, from mental or physical health issues and financial capability and debt management, to relationship breakdown, caring responsibilities and bereavement.

The Charity’s Mission

[ Helping people to overcome life’s challenges and thrive.

We regularly review our aims, objectives and activities, and in doing so evaluate the appropriateness and effectiveness of our services. As a result of these reviews, we have continued to develop the Charity’s offer, details of which are outlined in this Trustees’ Strategic Report.

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Strategic Review

The Charity has agreed an organisational strategy to 2025 in line with its charitable purpose and mission. As the occupational charity for more than 1.5m current and former civil servants, plus their financial dependents, we want more people to come to us for assistance and to support our work through donations. By 2025, each year we want to see:

We will achieve these targets through transformation of our systems, tactics and infrastructure, reaching and effectively engaging with more of our community, and by growing our donor numbers.

Specifically, we will:

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Achievements and Performance

At the beginning of 2021, we set ourselves ambitious targets, but were also aware that the need to remain agile in responding to the pandemic had not abated.

We had a good view of the impact of Covid on serving civil servants due to the research we conducted in December 2020. We knew that civil servants were struggling in lots of areas of their lives, particularly with their wellbeing and mental health.

Thinking about now (i.e. December 2020) compared to the beginning of the year (i.e. January 2020) in general, to what extent would you say each of the following are better, worse or about the about same compared to the beginning of 2020?

the about same compared to the beginning of 2020?
YouGov survey – Base 1,014
Net: Worse Net: Better
Myfinancial situation 16% 37%
My physical health 39% 16%
Myrelationships with others 23% 15%
My general wellbeing 45% 14%
Mymental health 49% 10%

YouGov research commissioned by the Charity for Civil Servants with current service Civil Servants, December 2020. Full base 1014 respondents.

We knew that serving civil servants’ financial situations had not been as significantly affected, as had been evidenced in our research and also in a reduction for applications for financial support across the previous year. But we also knew that this picture would change at some point when additional government measures were withdrawn.

As an occupational charity we were making plans, but were still unsure when civil servants might be returning to the office. We were also trying to understand what the impact might be for both civil servants and subsequently on the performance all of our activities.

Finally, the Charity itself was at the outset of a large scale transformation programme - changing our Customer Relationship Management (CRM) system and looking to build a solid technical infrastructure foundation for our ongoing development.

Throughout 2021, we have had to continue to be flexible and develop relevant approaches to support our audiences. By using our own insight and partnering extensively with the Civil Service, we were able to provide the right content at the right time. Driven by our wellbeing offer, this has resulted in record numbers of people coming to us for help. We brought in new partners that were relevant to the issues facing civil servants and within our applications for case worker support, we also continued to deal with lower volumes, but higher levels of complexity.

These were the key trends in our help provision performance in 2021:

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Our income generation performance continued to be stifled by the pandemic. Fundraising activities and donor recruitment struggled, with Civil Service staff not being in the office, and virtual only activities not performing as well as hoped.

The transformation programme continued across the year, and the Charity is due to launch the new CRM in early 2022.

Key Successes in 2021:

The Charity received over 97,000 requests for help in 2021 – an all-time record which exceeded our target by 30%.

Help By Type Year-on-Year

----- Start of picture text -----
120000
c.97,000
100000
c.80,000
80000
c.54,000
60000
c.48,000
c.40,000
40000
20000
0
2017 2018 2019 2020 2021
Key Service Other Applications One-to-One Events Partners Digital Help
----- End of picture text -----

The Charity successfully delivered the Mental Health and Wellbeing Conference in partnership with Civil Service HR and CSSC. 12,867 civil servants registered and to date there have been over 20,000 views of the sessions, both live and recorded.

‘… the charity delivered the multi-platform approach to pre-recording, live streaming, and hosting the sessions which thoroughly engaged delegates, and helped us to achieve our goal of a truly Civil Service wide conference…. It was two weeks of insightful and practical sessions to support civil servants with personal and work-related needs and worries during what has been a very difficult year.’

Rupert McNeil Government Chief People Officer

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Key Measures in 2021

As outlined in last year’s annual report, we had some key ambitions for 2021 to support us in heading to our 2025 goals. Below is a synopsis of the results.

Help

People coming to us for help 75,000
times		 People came to us for help 97,294 times.
Reverse downward trend of
financial help when the community
is likely to be in more need of it,
aiming to provide more than £1.7m
in financial assistance		 We delivered £1.6m of financial assistance.
We believe that demand for financial help
was suppressed, as government support
measures continued longer than anticipated.
Increase the use of digital tools such
as the Carer’s Digital Passport and
Statement		 The tool issued 1,721 passport and statement
outputs.
Deliver over 100 subject based
webinars on debt and financial
capability and web content
alongside complex casework		 Achieved.
Provide appropriate content and
services to all areas of the civil
service community, including
reaching out to under-represented
groups such as the retired
community, or younger civil
servants		 We used insight from our Covid survey and
engagement across the civil service to inform
our communication and activities
Use evaluation, insight and data to
understand the gaps in our help
reach, to ensure we are effective,
diverse and inclusive		 Within our programme we have built an
improved case management system, which
allows us to capture help inputs in a more
structured way, leading to improved
reporting. We have also systemised
evaluation which will help us understand
gaps in our reach or differences in outcomes.
Work closely with other charities
and Civil Service Departments to
develop and share best practice,
including the Association of
Charitable Organisations		 We contributed to ACO workshops and
worked with a Social Innovation Council on a
new shared referral platform.
Contribute to the programme of
digital transformation to achieve a
more customer-friendly and		 The team have worked to create a new online
application and messaging portal to support
user journeys across different case types, and
created easier access to Relate counselling.

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

intuitive journey through all our services Continue to consider individual Within our transformation programme, we circumstances and needs, and offer have designed the ability to request a of human intervention at whatever conversation with a member of staff during the application process. point people choose or require it

Income Generation

Raise £50k using virtual
fundraising techniques		 The Charity was able to run ‘Step this September’,
raising £7k and increasing the conversion to gift to
21% of participants (1.75% in 2020). Further in-year
development of digitally led events activity was
reduced and slower than anticipated due to pressures
on resourcing and the key phasing of crucial
transformationpriorities.
Uplift the amount given by
2,000 regular donors		 Although the start of this initiative was delayed until
far later in the year than anticipated, 140 donors
uplifted their gift during the limited November pilot
and we will build on the learning from this activity to
increase future numbers of those who uplift.
Re-acquiring 500 recently
lapsed donors		 100 donors resumed their regular gift after the
October pilot which was delayed due to recruitment
challenges bringing in resource to deliver.
Reach 1000 volunteers by
year end		 We started the year with 611 volunteers. Over the year
we wanted to expand our programme – with
volunteers either becoming a Champion and
advocating the Charity within the workplace, or a
skills-based role aligned to our charitable activities.
We finished 2021 with 975 people actively
volunteering to support the Charity.
Carry out three issue-led
campaigns		 The Charity delivered:
- The Burnout Hub campaign
- Smarter working for your wellbeing campaign
- Bereavement and loss (including the launch of the
new Griefworks app)
- ‘Essentials’ financial assistance campaign
Lapse-rate within regular
donors		 This year we lost 6,462 regular pledges which is a
continuation of the long-term trend of a reduction in
regular givers. Over recent years the rate of decline
has slowed. In Q3, The Charity asked around 300
donors if they would complete a short survey about
their reasons for stopping their gift – the most
common answer (>90%) was that they were no longer
employed in the Civil Service and their giving has
stopped automatically.

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

People we can reach: This was achieved, with 66,578 at the end of the year. Key activities driving this included the Mental Health We aimed to have 65,000 and Wellbeing Conference, as well as other key people who consented to marketing campaigns throughout the year like receive information about Smarter Working for your Wellbeing. the Charity by the end of the year

Providing more financial support

The Charity’s unique selling point lies in our ability to provide practical transformative help in the form of financial assistance of grants and funded services. We also run FCA approved Money and Debt Advice and Wellbeing Conversations.

Through regular marketing communications activity that included internal monthly bulletins through our stakeholder network, external marketing via email, social media and advertising, volunteer initiatives and engagement opportunities, the Charity promoted its ability to help people in financial need – whether unexpected bills, financial hardship, or other reasons in line with our grant-making policy.

Our patterns of help changed considerably during the year, reflecting the issues running through a second year of Covid. Continued support from extensions to furlough, the extra £20 weekly Universal Credit remaining in place for longer, bans on evictions and local authority extra funding led to a lower demand for financial help than anticipated. We produced our budget based on government assumptions of timelines for ending support before the start of 2021. Unlike many sectors, civil servants continued to work operationally on the front line or remotely from home so were being paid throughout the period, although their households may have been impacted by redundancy or lack of support for some of the self-employed. Extra staff were recruited, but through 2022 there is likely to be a reduction of headcount.

Our results for financial payments came in around 10% below 2020. This is because January to early March 2020 was a period of normal requests, whereas the whole of 2021 was affected by the pandemic and government alleviation measures were carried into September. This started to shift in October, however, with more payments made in the last quarter.

The pattern of referrals for our FCA money debt advice service followed the same trend and continued to be low, but by the final months were at pre-pandemic levels. This reflects the beginning of Covid in March 2020 and the end of alleviation measures at the end of September 2021. Overall there were 498 referrals for money and debt advice.

Despite requests for help with financial issues remaining low, there were broad increases in funded wellbeing services with partners which can take many forms such as counselling services, app licenses or tailored courses.

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Financial payments

The total paid in financial payments was £1.6m, with 3951 payments made.

Payments for people moving away from domestic violence, relationship breakdown and unsafe/unstable living arrangements saw an understandable rise in 2021 after a difficult year and one in which many could not move out of their house.

Wellbeing products and services continued to be a cost effective form of help, with 1,045 Sleepstation licences paid for in the year. We also saw a rise in relationship counselling through Relate, from 245 in 2020 to 463 sessions paid for by the Charity in 2021. This reflects the easier access created and also the fact that relationship breakdown was cited as a major issue from the pandemic.

Category Total Paid
2021		 Total Paid
2020		 %
Increase/
Decrease
in total		 Number of
Payments
2021		 Number of
Payments
2020		 %
Increase/
Decrease
in no. of
payments
Bereavement £114,000 £151,000 -25% 105 148 -29%
Caring £2,000 £4,000 -50% 5 11 -55%
Community Projects £0 £1,000 -100% 0 1 -100%
Disability £113,000 £186,000 -39% 71 108 -34%
Domestic Abuse £44,000 £30,000 47% 85 50 70%
Emergency Situation £11,000 £12,000 -8% 92 81 14%
Ill health £335,000 £297,000 -9% 592 620 -39%
Poor Wellbeing £379,000 £332,000 14% 1437 1003 43%
Reduced, Insufficient or Low Income £438,000 £474,000 -16% 784 979 -22%
Relationship Breakdown £181,000 £161,000 12% 712 529 35%
Unsafe unstable living arrangements £20,000 £11,000 82% 32 29 10%

All figures are rounded and demonstrate trends rather than actuals. Total amount paid is based on final figures after accruals have been accounted for. Total number of payments is based on actual payments offered within the year.

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Cindy, HMRC (Spouse)

After 50 years of marriage, Cindy and Tony were inseparable. They had been looking forward to spending their retired years together but sadly, Tony’s health took a turn for the worse. After a diagnosis of dementia, he struggled with further medical complications and eventually passed away surrounded by his family.

At a time when all Cindy wanted to do was grieve, she was faced with financial problems and couldn’t afford Tony’s funeral. As a spouse of a civil servant however, The Charity for Civil Servants was able to pay towards the funeral costs, allowing the family to say goodbye in the way they wanted to.

“I burst into tears when you told me you could help me. My daughters were with me at the time and I couldn’t stop crying. I couldn’t believe it. I want to say thank you from the very bottom of my heart. Without you, I wouldn’t have survived.”

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Grant making policy

Our charitable objects include relief from hardship or distress (whether financial or otherwise) for the public benefit of current or former civil servants and their dependants. Grants are made within our charitable objects and the agreed strategy of the Charity. All grants are subject to a formal approval process. We award grants on the basis of the four principles below:

Grants include financial help payments for emergency situations, grants to replace items that have broken or need repair, grants towards essential household bills, advanced rent and deposit for a new rented property, travel expenses, mobility aids and adaptations, as well as payment to third party suppliers for assessment of wellbeing and relationship counselling.

In response to the pandemic, the policy has generally been sufficiently flexible to allow for needs arising specifically, through some slight amendments and use of exceptions. An example of one such amendment was for funeral arrangements that were compromised by Covid 19 restrictions. We have been allowing more discretion in the types of payment to include commemorative events.

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

People Coming to Us for Help

Through marketing activity and promotional campaigns such as carer’s rights and money-matters, and through the development of hubs on specific topics we saw a big increase in the number of people accessing our digital help. Improvements to our website content and the way it is organised has increased the number of people completing a user journey successfully and finding the help they needed. This will continue as we prepare for a new website in 2023.

A focus in partnership working has supported us in providing the right content at the right time. We worked extensively with a range of networks within Departments to refresh some of our content, to gain insight for developing existing services and to develop new services which included:

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Webinars

In addition, we have broadened our webinar content. During 2021, we held 20 webinars covering a variety of topics about wellbeing, caring and dementia, all of which were delivered together with experts from other charities. The topics are based on continual feedback we receive from participants. Over 2,500 civil servants participated, either live or on demand from our website, with many more accessing by telephone.

Our evaluation results show:

Many cited examples of what they were planning to do, or had already done, differently as a result of what they had learnt, for example to take note of the early signs of burnout in themselves and others, carry out acts of kindness and be more supportive, engage more with other people, and spend less time using mobile phones.

Our offer of subjects also includes nutrition, grief and digital overload.

We were also able to develop our range of funded partners to expand our help offer:

Engagement with senior Civil Service leaders though a series of Active Listening Panels has increased our understanding of the nuanced needs in Departments and allowed us to increase our reach with targeted services from our offer.

Our continued engagement with the Fast-Stream network through the Basecamp initiative has been very well received this year, with feedback demonstrating the value of this activity for younger civil servants starting out a career with the Civil Service.

Overall, applications for support from our caseworkers and specialised support staff continued to be supressed through much of the year, though patterns fluctuated. Following the pattern of need for wellbeing services there was a 52% increase in referrals for wellbeing conversations with our caseworkers in 2021, with peaks in May, the final quarter of the year and a spike of increase in requests following the wellbeing conference. Our trained staff working through 737 referrals in total.

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Don’t Tone Alone Post Course Evaluation

In line with our evaluation approach Don’t Tone alone are looking to capture both the immediate outcomes of the programme as well as longer term impact. An interim report from our first wave of courses shows positive changes in health and wellbeing. Next year there will be a follow up evaluation to track whether change is sustained.

Mental Wellbeing Outcomes

Behaviour Change Outcomes

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Aiden, DWP

*Details changed to protect identity

Aiden was regularly seeing a specialist therapist to help him cope with the trauma of a recent homophobic attack. He knew this type of support was making a positive difference to his wellbeing but he couldn’t afford to continue with the sessions. That’s when his colleague recommended contacting The Charity for Civil Servants.

We had a confidential conversation with Aiden where we explored his options together. Led by a professional recommendation, we found that we could pay towards a fixed number of these tailored therapy sessions, allowing Aiden to continue to grow in confidence.

“The person I spoke to from the Charity was kind and respectful of my situation. She helped me with the application and I was ecstatic to find out it was a success. It was very emotional to be granted financial support for something so important to me and I will always be grateful for that.”

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Income Generation

Fundraising

During the year, the Charity maintained its regular giving programme, raising £3.7m including gift aid (down from £4.0m in 2020) through a combination of payroll giving and monthly direct-debit donations, representing 77% of the Charity’s overall voluntary income. Activities such as our impact mailing and our new uplift and donor retention programmes aim to improve our relationship with our supporters. These are still in their infancy and in-year results have been affected by the pandemic, mostly due to delays in getting them underway, but we continue to do more to build this important approach to arrest the decline in regular giving. This has meant that we didn’t achieve our ambitions of 2,000 uplifted donors (140 in the October appeal), or on reacquiring 500 lapsed donors (100 by year-end), however we intend to build on the learnings from these activities in 2021 and continue to grow these two areas of focus going forward. Tax relief on donations (more commonly known as Gift Aid) is a significant source of income for the Charity. In preparation for migrating to a new CRM in 2022, the Charity undertook a review of its gift aid processes. This included validating and, where necessary, repairing or reaffirming gift aid declarations supplied by donors to ensure continued compliance with the rules. Total tax relief received (included in regular contributions from individuals) in 2021 was £615k (2020: £723k). This was in-keeping with the changes in voluntary income, most of which is eligible for Gift Aid.

To support our regular giving recruitment, we piloted a partnership to promote payroll giving to the charity with HMRC and they have committed to running this again in 2022.

Income from people leaving a gift in their will rose during 2021, with 15 generous donors donating £324k, and has already been used to provide vital assistance during the year. The Charity undertakes several initiatives to encourage supporters to pledge a legacy gift to the Charity, including providing a free-will service as part of our financial assistance offer. In December we began a review of our legacy fundraising activities to better understand how we can improve this long-term source of income.

Major giving including employer contributions has provided most of the rest of overall voluntary income, thanks to grants from the Cabinet Office, Northern Ireland Civil Service, and a donation from the CSIS Charity Fund. A change in the funding arrangement with NICS led to the Charity receiving two grant payments this year. All grants are unrestricted but are given as the occupational charity for civil servants to support our mission of helping people in need.

The pandemic has continued to affect our abilities to raise money through community and events. In September, we ran a virtual walking challenge that raised £8k, while the Civil Service Mental Health and Wellbeing Conference performed poorly at raising money from virtual attendees (<£1k). We re-started our community and participation fundraising initiatives with £118k raised and growth plans to take us beyond prepandemic levels going forward. In November the committee at HASSRA (a sports and leisure association for employees of DHSC, DWP, and the FSA) picked the Charity as its 2022 charity of the year.

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Fundraising Approach

As part of the DMA Fundraising Working Group, the Charity has been involved in developing industry best practice on consent, privacy, and data retention. Fundraising staff have been issued a copy of the Code of Fundraising Practice, trained using the guide provided by the Chartered Institute of Fundraising on treating donors fairly, and on fundraising with people in vulnerable circumstances. All staff are aware of the agreed procedures to protect vulnerable people, and the Charity has established a safeguarding group to protect the people we interact with. Fundraising staff are encouraged to attend conferences and training to maintain their continuing professional development, as well as maintain an understanding of changing behaviours or regulation. Our regular training programme will continue in 2022.

The Charity normally uses a range of fundraising methods:

2021 saw the pandemic continue to impact our fundraising activities. With most of our voluntary income coming through regular giving, the Charity is fortunate to have been less severely impacted than charities relying on income streams such as community fundraising and events.

Responsibility and Accountability

The Director of Strategic Marketing and Income Generation (SMIG) is responsible for all our fundraising activities and is accountable to the Chief Executive as the head of the Executive Leadership Team.

The Charity’s Board of Trustees has overall accountability for all our fundraising and income generation activities. The Strategic Steering Group (a subcommittee of the full Board of Trustees) meets regularly and ensures continued compliance.

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Fundraising Compliance

To maintain the highest standards of fundraising ethics and welfare, the Director of SMIG ensures our compliance and adherence with:

The Charity is registered with the Fundraising Regulator, and as part of our efforts to uphold the highest fundraising standards, we are organisational members of:

Our supporter promise (available on our website) outlines the commitment made to our supporters and the public, affirming that we ensure that our fundraising is legal, open, honest and respectful.

The Charity also has:

Review of our fundraising compliance includes:

All of the Charity’s fundraising activities complied with the Code of Fundraising Practice. Our website outlines our complaints policy for the public and clearly explains how an individual can complain. In 2021, the Charity received no complaints about its fundraising activities or practices (2020: none), and no complaints were lodged with the Fundraising Regulator (2020: none).

Volunteering

Volunteering is a major part of the Charity’s outreach and engagement activity. The Charity launched its volunteer ‘Champions’ programme in 2020, partly as a result of the pandemic and the need to continue raising awareness of the charity and its need to raise funds. Our volunteer numbers reached 975 at year end up from 611 at the beginning of

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

the year an increase of 364. Their regular activity and advocacy have helped the Charity deliver more instances of help than ever before, and Champions are beginning to advocate the need for fundraising at a local level. 2021 has seen the creation of a number of key ‘skills-based volunteering’ roles at the Charity as we seek to grow the Charity’s reach, relevance, and income. We now have a Welsh-speaking volunteer role, a volunteer steering group, and are about to commence a speaker-ambassador volunteer role that will enhance our ability to deliver introduction presentations across the Civil Service.

Ambition and plans for 2022:

This year’s performance against our goals reflects both our own activities and the ongoing impacts of the pandemic on our audience. Looking ahead we will face another year of change and once again we know our audiences will face more challenges. It is likely that civil servants will be returning to offices this year but what the ‘new normal’ will look like for the Civil Service is still unclear. We are anticipating more demand for financial support as the increase in inflation, impacting energy costs and the cost of living, is likely to accelerate debt and financial worries. Which in turn means we need to increase our income performance in order to ensure we can sustainably continue to deliver help for the long term.

The Charity will need to continue to change to respond to these challenges both in our activities externally and internally with how we deliver them, as the new CRM and case management platform is also due to launch in the first couple of months of 2022.

Building towards our 2025 goals, against our core objectives in the year ahead we are aiming to:

  1. Deliver £1.9m in financial help through a combination of direct assistance and funded services or provision.

  2. Deliver 85,000 instances of help.

  3. Raise £4.5m in voluntary income, through individual and relationship fundraising.

We will achieve this by:

Help

The target for instances of help (85,000) is lower than our performance this year. This is due to the fact that civil servants are likely to return to offices in greater numbers this year and a reduction in flexibility and privacy may affect attendance at virtual seminars and interaction with digital tools.

Following trustee guidance, we will continue to work closely with CSHR, Departments and staff networks to take an “inclusion by design” approach to developing services across all of our themes below.

The way we report help will change over the year as our systems improve to capture help delivery across our case management led services.

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Financial assistance

We will review policy in March, looking at any trends emerging and with a view on cost of living and need. We anticipate financial need to grow as pay is unlikely to keep pace with inflation. We will continue to promote less well-known types of assistance such as respite breaks and assistive technology. We anticipate a higher level of need during the year but we will continue to find cost effective ways of providing help as we have done through our digital services and third parties, as well as providing people with the usual forms of practical help. We aim to give out £1.9m in financial help.

Money advice and guidance

We will deal with around 600 money advice cases with our in-house FCA regulated team. Money advice can be a lengthy process in terms of giving the information, agreeing next steps, and taking those steps. From the casework we will evidence 100 significant outcomes within the year, such as prevention of repossession and token payments acceptance. We will also be able to arrange debt relief orders (DROs) following new guidance. At least 10% of the cases will lead to financial assistance also being given. Our KPIs include this kind of intervention as we continue to improve reporting on outcomes. We will also continue to work closely with departments to understand needs around financial capability as well as debt advice.

Caring, Health and Wellbeing

We will Continue our involvement in the Civil Service Mental Health and Wellbeing Conference. One area where we will be developing support is around autism. This emerged as a problem area in 2021, especially for those without a diagnosis. Numbers are increasing as the availability of health care professionals decreases and with diagnoses taking longer. We have the opportunity to develop our wellbeing app, but want to consult first with the Civil Service HR policy team and with staff networks and Departments to find out what support will be most used and whether we need to tailor the app for different needs, for example for a specific Department, or line managers. We will evaluate the Griefworks app, and are seeking to provide Headspace or a similar product for mental wellbeing.

We will deliver 650 wellbeing and/or caring conversations in-house, with 10% of these leading also to financial assistance.

Webinars

We will continue to expand our content offer and commission 30 external expert webinars that bring additional opportunities for help to complement our existing offer.

Digital services

We are continuously learning about how to source, develop and use digital services as cost effective solutions for some types of help. We will integrate more digital services with the CRM, and create consistent models for bot development and digital tools. Where third parties are used as suppliers, contracts and reporting will be standardised. We will also review all caring digital resources, with a target of 500 uses of the Wellbeing Hub and 1500 Carer’s Passport and Statement digital resources to be produced. The Civil Service created their own Carer’s Passport in 2018 which meant the Charity switched

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from developing these to creating a tool that supported the creation of both Carer’s Passports that can be used in the workplace and Carer’s Statements for life outside work. This year we will be reviewing how our tool supports the passport creation and whether there can be clearer separation between our documents and the workplace document.

Income Generation

The Charity for Civil Servants will maintain its focus on two key areas of fundraising and our target is to raise £4.5m in voluntary income – the same as 2021.

We aim to do this by:

Individual and legacy giving

Developing effective, long-term, and sustainable communications with our existing, new, and recently lapsed donors so that we:

Relationship fundraising

Restarting our community and events fundraising programme is key in 2022 as we come out from covid-related restrictions. Demonstrating impact for our supporters is also a priority, as well as forging new partnerships, so that we:

Supporting this effort will be our network of volunteers and advocates, as well as our engagement activities and our marketing communications efforts. We will aim to increase our email community again pushing it to 80K. In addition to raising £4.5m in 2022, we will also be preparing the groundwork for a fundraising appeal in 2023, including putting focus into our brand strategy and case for support.

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Financial Review

Overview

In 2021, the Charity recorded net expenditure of £3,143k (2020: £2,867k) in line with its agreed approach to draw down from its reserves. The Charity has been expanding the types of help it provides, ensuring its systems are fit for the future and building up its fundraising expertise to tackle its long-term financial sustainability challenge.

This is before taking into account the return on the Charity’s investments, which was a gain of £945k (2020 gain of £368k) and the loss on the defined benefit pension scheme of £156k (2020 loss of £797k).

Net assets at the year-end were £34.9m, down £2.4m on 2020 (£37.3m). The Charity’s Investment portfolio was valued at £32.6m at 31 December 2021 which was down £2.9m on December 2020 (£35.5m) largely reflecting the £4.2m divested to fund the Charity’s activities.

Income

In 2021, total income was £4.8m, down £0.5m (2020 £5.3m).

The principal source of the Charity’s income remains regular monthly contributions from individuals, both serving and retired civil servants. Together with Gift Aid, this source of income accounted over 77% of the Charity’s total income (2020: 75%). At £3.7m, regular contributions are down £0.3m on the previous year, following the pattern of decline.

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THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT 2021

Contributions from employer organisations amounted to £196k (2020: £152k) made up largely of an annual grant from the Cabinet Office of £110k (2019: £110k) and £84k (2019: £42k) from the Northern Ireland Civil Service (NICS) as we received two payments in 2021 as NICS brought their annual payment earlier in their financial year.

Legacy income was up at £324k (2020: £99k). We also received £150k (2020: £200k) from the CSIS Charity Fund.

As explained in the fundraising section, the Charity’s income from lotteries, fundraising events and other donations remained below pre-Covid levels income totalling £118k in 2021 (2020 £127k) compared with £314k in 2019.

During the year the charity also claimed government grants under the coronavirus Job Retention Scheme of £11k (2020: £119k).

Income from investments was £0.3m (2020: £0.6m). This largely comprises of interest and dividends from the Charity’s multi-asset investment portfolio while it was managed by Barings Asset Management up to the end of June 2021. The Charity’s portfolio is now invested in pooled funds with Columbia Threadneedle and the Charity will not receive income in the same way with almost all the return being received by way of increase in the market value of the units held in the funds.

Expenditure

Total expenditure for the year is £7.9m (2020: £8.2m) with £6.3m being spent on charitable activities.

Costs of raising funds were £1.7m (2020: £1.4m) and included elements of staff costs, investment management fees (up to June 2021) and overheads.

Total staff costs of £4.7m (2020: £5.0m) were included within direct activities and support costs. The average number of staff (on a full-time equivalent basis) in 2021 was 100 (2020: 95).

The Charity withdrew £4.2m in the year (2020: £4.6m) from its investment portfolio to fund its expenditure in line with its plan to use its reserves to support civil servants.

Investment management

The purpose of this portfolio is to generate investment returns to make the best possible sustainable contribution to the Charity’s activities in the current and the long term.

As set out in the reserves section, the Charity is intending to reduce its reserves over the next five years providing more help and more types of help to those it is there to support and ensuring that its messages reach its intended audience. This means that the Charity envisages divesting from its portfolio over this period. As a result, under its Investment Policy, the Charity’s investments are split into a short-term and long-term pool of assets. The objective of the short-term pool is to be available to provide suitable liquidity and capital protection to meet anticipated drawdowns over a 1-2 year time horizon and to avoid the need to be in a forced sale position in respect of the fund in which the long-term pool is invested.

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Fund management

Up to July 2021 our total portfolio was managed by Barings Asset Management Limited (“Barings”), through a segregated mandate, that is, where the Charity owned the investment portfolio, with Northern Trust as custodians.

Early this year Barings notified the Charity that it was exiting the market for products similar to our arrangement. The Investment Committee ran a tender process for a new fund manager and the Board approved the Committee’s recommendation for Columbia Threadneedle to manage the Charity’s funds in two pooled funds.

The longer term investments are managed in a dynamic pooled fund with Columbia Threadneedle delivering real returns with volatility control with the aim to deliver a real return of UK CPI + 3% per annum after the payment of investment management fees over a 3-5 year time horizon. The short term portfolio is invested in a fund with suitable liquidity and capital protection to meet short term cash flow requirements. The objective of this fund is to outperform the iBoxx GDP Non Gilts 1-5 Years Index (a corporate bond index) over rolling 3 year periods after the deduction of charges.

To mitigate any short term market fluctuations, the portfolio was converted to cash between May and June, until fully invested with Columbia Threadneedle in September.

Investment Performance

The value of the portfolio as at 31 December 2021 was £32.6m (£35.5m as at 31 December 2020.) The Charity divested £4.2m in the year to fund its activities. Movements in the Charity’s holdings of investments during the year and an analysis of the portfolio at yearend are shown in note 10a to the Accounts.

The agreement target with Barings was to achieve a net return of RPI plus 3.5% p.a. over rolling three-year periods. The net returns from Barings between January and June 2021 produced a realised gain of £1,016k. The Charity instructed Barings to liquidate the portfolio to cash between May and June which may have reduced overall returns to mitigate the risk of any short term volatility.

Since September the funds have been invested with Columbia Threadneedle and there was a net loss of £72k between then and 31 December 2021.

Tensions between Russia and Ukraine and then the Russian invasion of Ukraine in late February have led to increased volatility in equity markets as investors consider the attack’s expected impact on energy, global growth, inflation and central bank actions. The Charity’s investment portfolio that was valued at £32.6m on 31 December 2021 was valued at £30.8m on 30 March just before this report was signed. This reflects divestments from the funds of £1.3m and the value of the Charity’s units decreasing by £0.4m.

Approach to Environmental, Social and Governance issues

In selecting the new investment manager, the Investment Committee took into consideration the approach that the various managers would take to Environmental, Social and Governance (ESG) in its investment approach. Columbia Threadneedle’s stated approach is to integrate ESG into its investment research in companies in building a fuller picture of the risks and opportunities of all investment opportunities. This is based

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on the belief that companies which demonstrate sustainable business models, organisational stability and the ability to effect positive change are more likely to deliver value to all stakeholders including shareholders. Columbia Threadneedle’s stated approach is one of active ownership so that through continuous monitoring, targeted engagements and strategic voting it drives change and helps create future value. It is developing its ESG reporting and we envisage being able to report further on ESG metrics for the Charity’s portfolio in future years.

Reserves

The trustees are mindful of their duty to balance the interests of both current and future beneficiaries. The holding of reserves is one of a range of measures that can contribute to stability and continuity of the Charity into the future to support future beneficiaries. The Trustees determine the need for reserves by reference to a number of factors which they keep under regular review, including the time needed to reverse the recent declines in regular giving from individuals and the extent to which the remainder of its income is dependent on a small number of large donations and grants. It also considers fluctuations in beneficiary expenditure and future levels of demand for the help and services provided by the Charity. Based on its current analysis, the trustees feel that the Charity should retain reserves of between £25m and £35m.

Of our total charity funds of £35.0m, total unrestricted funds were £34.9m at 31 December 2021. In assessing our level of free reserves, we exclude the tangible and intangible fixed assets of £1.2m as these assets cannot be quickly disposed of. (We would also exclude any pension deficit. This year there is an unrecognized surplus in respect of the defined benefit pension scheme.) This leaves free reserves of £33.7m which is within the target level of £25m to £35m. The trustees expect reserves to decline over the next five years as we develop the Charity’s services to help more people in line with the strategy that was developed in 2015 and refreshed in 2020. A payment plan to reduce the pension deficit has been agreed with the pension fund trustees and this commitment is considered in all our financial planning, including the anticipated and target level of reserves. Restricted reserves – which are not taken into account in formulating our reserves policy - were £48k as at 31 December 2021, details of which are set out in note 14 to the accounts.

Going Concern

The Trustees have assessed the Charity’s ability to continue as a going concern. The Trustees have considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements including a review of updated forecasts to the end of 2023, a consideration of key risks, including the ongoing impact of coronavirus, that could negatively impact the charity and the latest available valuation of the investment portfolio.

The Charity’s principal source of income continues to be regular monthly contributions from individuals, both serving and retired civil servants. This represented approximately 77% of the Charity’s income in 2021. As reported in the financial review, contributions in 2021 reflected a net 8% decline and this trend has continued to be modelled in the revised

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forecasts albeit modified slightly as we aim to reduce this attrition to c 5%. The key area of uncertainty relates to any impact of any market turmoil on the valuation of investments. The Trustees are satisfied that the Charity has sufficient reserves and liquidity within the investment portfolio to continue as a going concern for the foreseeable future. Cash flow forecasts are regularly prepared and assets in the investment portfolio can be liquidated to meet short term requirements.

After considering these factors, the Trustees have concluded that the Charity has a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future and have continued to prepare the financial statements on the going concern basis.

Pensions

The pension liability in respect of the defined benefit pension scheme that was closed to all staff for future benefit accrual in 2004 continues to change from one year to the next. This is largely driven by factors outside our control: performance of the assets in the pension scheme reflecting changing conditions in the financial markets and the sensitivity of the pension liability to changes in interest and inflation rates. The Scheme was a multi-employer defined benefit pension scheme, The CSBF Pension and Assurance Scheme, and The Charity accounts for its 92.9% share of the net assets and liabilities of the multi-employer pension scheme which is recognised on the Charity’s balance sheet.

The Charity trustees have agreed a deficit recovery plan with the pension trustees which aims to close the deficit by April 2023. The annual employer contributions needed to fund this deficit are determined by reference to the triennial valuations undertaken by the pension trustees. The latest triennial valuation reflected the position as at 6 April 2019. The best estimate of contributions to be paid by the Charity for the year beginning 1 January 2022 is £668,061. The next triennial valuation will be produced in 2022 and will reflect the funding position as at 5 April 2022.

The value of the scheme’s assets increased by £1.7m to £24.8m while the value of the scheme’s liabilities (under FRS102 principles) decreased in 2021 by £1.3m to £22.0m resulting in a surplus of £2.7m. The Charity has chosen not to recognise this surplus but instead show zero as the pension asset/ liability. This valuation is undertaken using a series of assumptions and judgments. The valuation of the scheme is very sensitive to these assumptions and thus there is a risk that this valuation will change significantly during the coming year, as it has in past years. The Charity’s exposure to the pension deficit is monitored through its risk management framework and its consideration of financial risks. There is an effective budgeting and forecasting process in place taking into account payments, including deficit payments, in relation to the pension plan. The Charity also actively engages with the pension trustees including in relation to longer term plans for the Scheme.

Since closing the defined pension scheme to future staff benefit accrual in 2004, the Charity operates a defined contribution group pension scheme.

More details about pensions are set out in note 16 to the accounts.

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Principal Risks and Uncertainties

Risk is considered in key decision processes in the Charity at Executive and Board level. The Board reviews the major risks faced by the Charity at least annually after a more detailed discussion at the Finance and Audit Committee. The review includes reviewing the adequacy of the actions being taken in response to each risk.

The Board is satisfied that the major risks facing the Charity have been identified and are being appropriately addressed. This includes the Board’s assessment of the impact of the ongoing pandemic and its economic consequences on its risk assessment. The key resulting risk for the Charity is considered to be the financial risk for the Charity arising from a significant loss in the value of its investments which is detailed below. Overall the Board considers that the key risks currently facing the Charity are as follows:

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Remuneration

Remuneration Policy

Our approach to pay at The Charity

The Charity had 103 staff as at 31[st] December 2021, which equates to 96.3 full-time equivalent employees. Salaries and total reward for the Senior Management Team – The Chief Executive and the three other directors responsible for Finance and Corporate Services, Help and Advisory Services and Strategic Marketing and Income Generation – are set and review by the Remuneration Committee, a sub-committee of our Board of Trustees.

The Remuneration Committee is chaired by the Charity’s chair and includes other members of the Board, who offer pay expertise in the Not for Profit and other sectors.

All other staff salaries are set by the Senior Management Team. Salaries are arranged in pay bands across the Charity, using external independent benchmarking and comparison data within the Charity and Not for Profit sectors, and taking into account affordability at the Charity. Salaries are clearly advertised when recruiting for new roles. At the Charity, we believe in recruiting and retaining high-calibre people to represent the organisation’s interest. We also believe in rewarding staff fairly for the jobs that they do and provide a single streamlined salary and grading framework for all staff, which is equitable and consistent with the principle of equal pay for work of equal value.

We believe this engenders a positive working environment. Additionally, we believe in encouraging young people to enter the workplace to increase their skills and establish their careers. We provide apprenticeships in some specialist areas and ensure that people in these roles are rewarded fairly for their work with pay and benefits.

The Charity works hard to retain staff who have been recruited for the specific skills that they bring to their particular role. Pay and reward are determined to ensure that we can recruit people with the right skills in a competitive market. Many of our staff have detailed knowledge, some of which is unique to the Charity and could not be easily replaced. Our staff pay scales and total reward package reflects our commitment to retaining and motivating our staff.

Senior Management Pay

The Charity’s purpose and vision means that the Chief Executive and other members of the Senior Management Team require a breadth of experience, skills and personal qualities on a par with high-quality senior-level talent in similar organisations and so the Charity needs to be competitive in the market. They need to be able to liaise and command the respect of senior civil servants and executives of other partnership charities of all sizes through their experience and credibility. At the Charity, we are able to retain this talent whilst keeping salary costs under control.

For the purposes of disclosures under the Charities SORP (FRS 102), senior management is defined as the Chief Executive Officer and the other three directors responsible for Finance and Corporate Services, Help, Advice and Services and Strategic Marketing and Income Generation. We also have an interim Programme Director for Data and Systems leading the programme of implementing the new CRM, a role that will continue into early

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2022, who is not part of the senior management team and therefore not covered in the senior management disclosures.

Benchmarking

The Senior Management Team’s salaries are externally benchmarked every 3 years and staff pay levels are reviewed annually.

Each year, the Chief Executive and directors participate in performance appraisal as part of the appraisal scheme operated for all of the Charity’s staff. In the case of the Chief Executive, this includes seeking detailed feedback from the Chair, Trustees, and direct reports.

Staff pay is reviewed by the Senior Management Team and communicated to the Charity’s recognised union, PCS. The same benefits, apart from annual leave allowance, including pensions and terms and conditions, apply to the Chief Executive and directors, as all other staff.

While they are separately determined, annual pay increases for the Chief Executive, directors and staff have been aligned for the four years leading up to 2021. In 2021, a 2% pay increase was awarded to all staff earning £29,999 and below and a 1% pay increase was awarded to both the senior management team and staff earning £30,000 and above. The Chief Executive elected not to take a pay rise in 2021.

Living Wage Foundation

The Charity continued its commitment to paying all staff the London Living Wage, calculated independently by the Living Wage Foundation. Being a Living Wage accredited employer also means paying the same basic wage to all of its contractors that fit the criteria of working on site for a specified number of hours per week. So there remains an increased cost to the Charity for its subcontracted/outsourced cleaning contractors to ensure we fulfil our commitment.

Gender Pay Reporting

As the Charity employs fewer than 250 employees, it is not required to publish information on Gender Pay Reporting. Nevertheless, as recommended by the NCVO, the Trustees requested information on gender pay differences to be collated and we are providing this information as part of a commitment to transparency and accountability.

Gender Pay Gap:

As at 31[st] December 2021:

Gender No. of
staff		 FTE Salary Differential Differential FTE Salary Differential Differential
Mean (£) (%) Median (£) (%)
Male 37 £40,829 £3,610 8.8% £30,396 -£4,864 -16.0%
Female 66 £37,219 £35,260

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As at 31[st] December 2020:

Gender No. of
staff		 FTE Salary Differential Differential FTE
Salary		 Differential Differential
Mean (£) (%) Median (£) (%)
Male 36 £42,100 £4,757 11.3% £34,910 £0 0%
Female 67 £37,343 £34,910

Percentage Gender per Quartile Salary Range (1=highest paid quartile) as at December 2021

2021
Salary Quartile Male Female
1 42%(11) 58%(15)
2 23%(6) 77%(20)
3 28%(7) 72%(18)
4 50%(13) 50%(13)
Overall 37 66

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Trustees’ Administrative Report

Structure and Governance

Constitution and Membership

The Civil Service Benevolent Fund (“The Charity”) was incorporated on 16[th] June 2010 as a company limited by guarantee (company no. 7286399). In May 2012, the company began operating under the name “The Charity for Civil Servants”. The Charity is registered with the Charity Commission in England and Wales (no. 1136870) and is on the Scottish Charity Register (no. SC041956). The Charity carries out its activities from its principal office, No. 5 Anne Boleyn’s Walk, Cheam, Surrey, SM3 8DY, which is also its registered office.

The governing instrument of the Charity is the Articles of Association, which were adopted on 16[th] June 2010. The Charity’s Patron is Her Majesty the Queen; its president is Simon Case (Cabinet Secretary and Head of the Civil Service).

The Charity has one subsidiary, CSBF Enterprises Limited (registered in England and Wales: company number 03119311). More detail is given in Note 10 (b) to the accounts.

Trustees and Advisors

The Charity is governed by a Trustee Board of between 8 and 12 Trustees. Under the Charity’s Articles of Association, one Trustee shall be appointed by the Cabinet Office and that Trustee will be the Chair. Other Trustees are appointed by resolution of the Trustees at the Annual General Meeting. The Board is currently comprised of 12 Trustees.

The following Trustees served as members of the Board throughout 2021 and were Trustees on the date this report was approved:

The following Trustee resigned during 2021:

The following Trustees were appointed during 2021:

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No Trustees had any disclosable interests under the Companies Act 2006.

Trustees are responsible for reviewing the structure, size and composition of the Board, including the skills, knowledge and experience required. Trustees seek to identify candidates to fill Board vacancies as and when they arise and open advertising or the services of external advisers are considered to facilitate the search for suitable candidates. Trustees are appointed for an initial term of up to three years, in order to provide for an orderly succession, and are eligible to serve a second term, up to a maximum of six years. Trustees receive individual induction sessions, as well as being provided with relevant background information and training to help familiarise them with their responsibilities.

The Trustee Board meets a minimum of three times a year and takes all important strategic, policy and financial decisions. It met four times in 2021. The Board is supported by a number of sub-committees and advisory groups.

Sub-committee and advisory group membership as at 31st December 2021 is set out below (* denotes chair of each committee,[ †] denotes co-opted member):

Nominations and Investment Finance and Audit Strategic Steering
Remuneration Committee Committee Group
Committee
Peter Schofield * Mark Addison * Ross Campbell * Matthew Brook
Ross Campbell Ross Campbell Mark Addison Wendy Proctor
Deborah Loudon Clara Lane Mal Singh Selvin Brown
Wendy Proctor Robert Woods† Joanna Dally James Renwick
Alex Reeves†

Day-to-day management of the Charity is delegated to the Chief Executive, Graham Hooper, and other directors responsible for Finance and Corporate Services, Help Advice and Services (HAS), and Strategic Marketing and Income Generation (SMIG). An appropriate director or the assistant company secretary acts as secretary to each of the Board sub-committees and advisory committees, except for the Nominations and Remuneration Committee for which the Charity’s Head of HR is secretary.

The key advisers to the Charity are:

The key advisers to the Charity are:
Auditor: Bankers:
Crowe U.K. LLP Lloyds TSB Bank plc
55 Ludgate Hill 1 Butler Place
London Victoria Street
EC4M 7JW London SW1H 0PR
Investment Managers: Solicitors:
Columbia Threadneedle Investments Stone King LLP
78 Cannon Street Boundary House - 91 Charterhouse Street
London EC4N 6AG London EC1M 6HR

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Trustee Responsibilities

The Trustees are responsible for preparing the Trustees’ Report (which comprises the Trustees’ Administrative Report and the Trustees’ Strategic Report) and the accounts in accordance with applicable law and regulations. Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and of its net incoming resources for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charitable company’s transactions and disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Insofar as each of the Trustees of the charitable company at the date of approval of this report is aware there is no relevant audit information (information needed by the company’s auditor in connection with preparing the audit report) of which the company’s auditor is unaware. Each Trustee has taken all of the steps that they should have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that the company’s auditor is aware of that information.

Charity Governance Code

The Charity’s Trustees acknowledge that The Charity for Civil Servants is best placed to fulfil its vision, mission and strategic goals if it has effective governance in place. The Charity continues to utilise the Charity Governance Code as a tool to support the Board to reflect upon its governance structures and consider the most appropriate ways to adopt the Code’s principles and recommended practices. Trustees also continue to uphold their legal responsibilities and recognise that behaviour and culture are integral, both in supporting the Charity to deliver its objects most effectively for its beneficiaries’ benefit, and in achieving good governance.

The Charity’s governance structures continued to work well during 2021, with most Board and Committee meetings being held virtually but a workshop conducted as part of the triennial externally facilitated board effectiveness review allowed an opportunity for trustees to meet in person. The review concluded that the Charity already had strong systems of governance in place, and a Report of the review outlining areas in which the Charity could improve further was discussed by trustees at the October board meeting. A

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subsequent action plan has been produced outlining work in this area to be started in 2022. This includes work in some areas that were “refreshed” in the Charity Governance Code which was published in December 2020.

The Charity and its Trustees remain committed to improving the Charity’s governance standards and on increasing its overall effectiveness as an organisation and will continue to consider how best to adopt and strengthen the recommended practices within the code over the next 12 months.

This Annual Report, which incorporates the Trustees’ Strategic Report and Administrative Report, was approved by the Trustees on the 1 April 2022, and signed on their behalf by:

Peter Schofield CB

Chair, Board of Trustees

1 April 2022

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Independent Auditor’s Report to the Members and the Trustees of The Charity for Civil Servants

OPINION

We have audited the financial statements of The Charity for Civil Servants (‘the charitable company’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Cashflow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements:

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the

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other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion based on the work undertaken in the course of our audit

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

RESPONSIBILITIES OF TRUSTEES

As explained more fully in the trustees’ responsibilities statement set out on page 33, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

36

THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT `

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

EXTENT TO WHICH THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005 together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation (GDPR), employment legislation and taxation legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of legacy income, grant expenditure and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, and the Finance and Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission and reading minutes of meetings of those charged with governance.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For

37

THE CHARITY FOR CIVIL SERVANTS TRUSTEES’ ANNUAL REPORT `

example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

USE OF OUR REPORT

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Nicola May Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor

London

Date 4th May 2022

38

THE CHARITY FOR CIVIL SERVANTS STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Funds
Restricted
Funds
Income from
Note
£000
£000
Donations and legacies
2
4,453
-
Other income
2a
37
-
Investment Income
3
300
-
Total income
4,790
-
Expenditure on
Raising funds
Fundraising & Engagement
1,562
-
Investment management
91
-
Total costs of raising funds
1,653
-
Charitable activities
Alleviating need
6,280
5
Total charitable expenditure
6,280
5
Total expenditure
4
7,933
5
Net (expenditure) for the year
(3,143)
(5)

Net gain on investments
10
a
945
-
Actuarial (loss) on defined benefit pension
scheme
16
(156)
-
Net movement in funds for the year
(2,354)
(5)

Reconciliation of funds
Funds brought forward at 1 January
37,205
53
Funds carried forward at 31 December
34,851
48

The statement of financial activities incorporates an income and expenditure account. The notes on pages 42 to 61 form an integral part of these Accounts

39

THE CHARITY FOR CIVIL SERVANTS BALANCE SHEET AS AT 31 DECEMBER 2021

Fixed assets
Intangible assets
Tangible assets
Investment assets
Total fixed assets
Current assets
Debtors
Cash at bank and in hand
Total current assets
Liabilities
Creditors: amounts falling due within one year
Net current assets
Total assets less current liabilities
Net assets excluding pension liability
Defined Benefit Pension Scheme liability
Total net assets
The funds of the Charity:
Unrestricted funds
Revaluation reserve
Pension (deficit)
Total unrestricted funds
Restricted income funds
Total charity funds		 Note 2021
Total
£000
484
716
32,585
33,785
768
1,025
1,793
(679)
1,114
34,899
34,899
-
34,899
34,484
367
-
34,851
48
34,899		 2020
Total
£000
226
734
35,526
8
9
10a
36,486
451
1,237
11
1,688
(578)
12
1,110
37,596
37,596
16 (338)
37,258
37,176
367
(338)
14
9
16
37,205
14 53
37,258

Approved and authorised for issue by the Trustees on 1 April 2022 and signed on their behalf by:

Chair:

Peter Schofield

The notes on pages 42 to 61 form an integral part of these accounts

40

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Cash flows from operating activities:
Net cash used in operating activities
A
Cash flows from investing activities:

Investment income
3
Investment income reinvested
3
Purchase of intangible assets
8
Purchase of property, plant and equipment
9
Payments to pension fund
16
Disposal of investments
10a
Net cash provided by investing activities

Change in cash and cash equivalents in the
reporting period

Cash and cash equivalents at the beginning of
the reporting period

Cash and cash equivalents at the end of the
reporting period
B

Notes to the cash flow statement

A. Reconciliation of net income/expenditure
to net cash flow from operating activities
Net (expenditure) / income for the reporting
period (as per the statement of financial
activities)
Adjustments for:
(Gain) on investments
10a
Depreciation & amortisation charges
8 & 9
Investment income
3
(Increase)/ decrease in debtors
11
Increase/ (decrease) in creditors
12
Net pension scheme expenses
16
Pension scheme loss
16
Net cash used in operating activities

B. Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
The notes on pages 42 to 61 form an integral part of these Accounts		 2021
£000
(3,401)
300
(313)
(332)
(12)
(653)
4,199
3,189
(212)
1,237
1,025
2021
£000
(2,359)
(945)
105
(300)
(317)
101
158
156
(3,401)
2021
£000
1,025
1,025		 2020
£000
(2,915)
603
(626)
(228)
(27)
(638)
4,568		 2020
£000
(2,915)
603
(626)
(228)
(27)
(638)
4,568
3,652
737
500
1,237
2020
£000
(3,296)
(368)
85
(603)
303
(10)
177
797
(2,915)
2020
£000
1,237
1,237

41

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Accounting policies

Status of the Charity

The Charity was incorporated in England and Wales on 16[th] June 2010 (company number 7286399) and is limited by guarantee of its members. The guarantee of each member is restricted to £1 sterling. The address of the registered office is No. 5 Anne Boleyn’s Walk, Cheam, Surrey, SM3 8DY.

The Charity meets the definition of a public benefit entity under FRS 102. It is registered in England and Wales (charity number: 1136870) and in Scotland (charity number: SC041956).

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements are drawn up under the historical cost convention except that the freehold property was valued as at 30 June 2000 and investments are carried at market value.

The financial statements are presented in pounds sterling which is also the functional currency of the Charity.

The Charity has one wholly owned subsidiary undertaking, CSBF Enterprises Limited (company number 03119311). This is not consolidated on the basis that the amounts in the subsidiary are immaterial in the context of the Charity.

Going concern

The Trustees have assessed the Charity’s ability to continue as a going concern. The Trustees have considered several factors when forming their conclusion as to whether the use of the going concern basis is appropriate when preparing these financial statements including a review of updated forecasts to the end of 2023, a consideration of key risks, including the impact of coronavirus, that could negatively impact the charity and the latest available valuation of the investment portfolio.

The Charity’s principal source of income continues to be regular monthly contributions from individuals, both serving and retired civil servants. This represented approximately 75% of the Charity’s income in 2021. As reported in the financial review, contributions in 2021 reflected a net 8% decline and this trend has continued to be modelled in the revised forecasts. The key area of uncertainty relates to any impact of market turmoil on the valuation of investments. The Trustees are satisfied that the Charity has sufficient reserves and liquidity within the investment portfolio to continue as a going concern for the foreseeable future. Cash flow forecasts are regularly prepared and assets in the investment portfolio can be liquidated to meet short term requirements.

After considering these factors, the Trustees have concluded that the Charity has a reasonable expectation that there are adequate resources to continue in operational existence for the foreseeable future and have continued to prepare the financial statements on the going concern basis.

Income

Income is recognised in the accounts of the Charity when all of the following criteria are met:

42

THE CHARITY FOR CIVIL SERVANTS

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

Contributions, and any related recoverable tax, are accounted for when they are due. Donations are accounted for when received. Pecuniary legacies are recorded as income when notified; residuary legacies are recorded when the Charity is legally entitled to the income, receipt is probable and the amounts can be reasonably quantified. Income from investments is accounted for when distributions are notified by the investment managers.

Income from Government Grants is recognised using the accrual model basis. Grant Income is recognised when there is reasonable assurance that a) any conditions attached to receiving the grant will be met and b) the grants will be received. Grants relating to revenue are recognised in income over the periods in which related costs are incurred for which the grant is intended to compensate.

Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to commit the Charity to expenditure as a result of a past event, it is probable that settlement will be required and the amount of the obligation can be measured or estimated reliably.

Grants payable are accounted for when approved by the Charity and notified to beneficiaries. All other expenditure is accounted for on an accruals basis.

Governance costs represent expenditure on strategic planning for the Charity’s future development, internal and external audit, legal advice to trustees and costs associated with constitutional and statutory requirements including the cost of Board meetings and preparing statutory accounts.

Costs which cannot be directly attributed to individual activities reflected on the Statement of Financial Activities are allocated on a basis consistent with the use of resources, being the relevant proportions of either staff costs, time spent or assets utilised.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred

Allocation of support costs

Support costs are those functions that assist the work of the Charity but do not directly undertake charitable activities. Support costs include central management and office costs, finance, HR, information technology and systems, analysis and insight, defined benefit pension scheme expenses and governance costs which support the Charity’s activities. These costs have been allocated between cost of raising funds and expenditure on charitable activities.

Tangible fixed assets

Tangible fixed assets costing more than £1,000 are capitalised. All fixed assets are recorded at cost, except the freehold property which was re-valued as at 30 June 2000 and is recorded at this value, and are depreciated at rates to write off the excess of the cost or valuation over the anticipated residual value of individual assets evenly over their estimated useful lives. These rates are currently as follows:

43

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

Freehold building and property improvements 2-3% p.a. on valuation and cost Fixtures, fittings & office equipment 15% p.a. on cost Other computer hardware & software 33 ⅓ % p.a. on cost purchased before 1 January 2017

Intangible fixed assets

Intangible fixed assets are non-monetary fixed assets that do not have physical substance but are identifiable and are controlled by the Charity through custody or legal rights. An intangible asset is recognised when it is separable or arises from contractual or other legal rights and if it is probable that its expected future economic benefits will flow to the Charity, and if its cost or value can be measured reliably. Intangible fixed assets costing more than £2,000 are capitalised.

Intangible assets are measured initially at cost and subsequently at cost less impairment and less any accumulated amortisation. The residual value of intangible fixed assets is nil when calculating the charge for amortisation unless reliable evidence exists to the contrary. Amortisation of intangible fixed assets is charged as an expense to the relevant statement of financial activities (SoFA) category reflecting the use of the asset.

Intangible assets are amortised on a straight-line basis over their useful economic lives. If the useful life cannot be estimated reliably it is presumed to be no more than five years. Amortisation commences on development expenditure when an intangible asset is available for use.

The amortisation rates used are as follows: Software and website costs : 33 ⅓ % per annum Major system development: 20% per annum

Intangible assets are only reviewed for impairment if there are indicators that the asset may be impaired.

Investment assets

Investments are measured initially at cost and valued in the balance sheet at fair value (their market value) at the balance sheet date. Investment net gains and losses, whether realised or unrealised, are combined and shown in the heading ‘Net gains/(losses) on investments’ in the Statement of Financial Activities.

Investment charges

The investment management fees in the Statement of Financial Activities are feed paid directly to Barings for the management of the Charity’s segregated fund until the arrangements with Barings came to an end in June 2021. The new arrangement with Columbia Threadneedle, the Charity’s new investment manager, which started in September 2021 is for the Charity to invest in two pooled funds where the fees are deducted directly in calculating the value of the units in the funds. Fees from this point are not separately identifiable and are in effect netted off in arriving at the gain on investments. The Ongoing Charges Figure (OCF) for the long term fund is 0.56% (including an AMC of 0.40%). The OCF for the short term fund is 0.53% (including an AMC of 0.40%). The Charity receives a 0.2% rebate on short dated fund’s AMC, and this is reflected under Other Income.

44

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

Pensions

Employer costs relating to the defined contribution pension scheme are included as expenditure when they become payable in accordance with the rules of the scheme.

The Charity also contributes to a defined benefit pension scheme, which was closed in 2004 to future benefit accrual. The current service costs of the scheme, together with the scheme interest cost less the expected return on the scheme assets for the year, are charged to the Statement of Financial Activities (SoFA). The actuarial losses on the scheme are recognised immediately as other recognised losses. The Charity does not recognise pension surpluses on its Balance sheet as FRS 102 only permits a surplus to be recognised where the employer is able to recover that surplus either through reduced contributions in future or through refunds from the plan.

The assets of the scheme are measured at fair value at the balance sheet date. Liabilities are measured on an actuarial basis at the balance sheet date using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term to the scheme liabilities. Any resulting defined benefit liability will be presented separately after other net assets on the face of the balance sheet.

Financial instruments

The Charity has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost. Financial assets held at amortised cost comprise cash and bank and in hand, short term cash deposits together with debtors excluding prepayments. Financial liabilities held at amortised cost comprise short and long term creditors excluding deferred income and taxation payable. No discounting has been applied to these financial instruments on the basis that the periods over which amounts will be settled are such that any discounting would be immaterial.

Investments, including bonds and cash held as part of the investment portfolio are held at fair value at the balance sheet date, with gains and losses being recognised within income and expenditure. Investments in subsidiary undertakings are held at cost less impairment.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the accounting policies, trustees are required to make judgements, estimates, and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affected current and future periods.

The only significant sources of uncertainty in our estimations that have a significant effect on the amounts recognised in the financial statements are the defined benefit pension scheme and estimated residuary legacies receivable. Further details, including assumptions used, are disclosed in Note 16 (defined pension scheme), and under Income in the accounting policies (residuary legacies).

45

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

2. Income from donations and legacies

. Income from donations and legacies
Regular contributions from individuals
Contributions from employer organisations
Legacies
Donations
Fundraising events
a.Other Income
Government Grants
Lotteries		 2021
£000
3,691
196
324
221
21
4,453
2021
£000
11
26
37		 2020
£000
4,025
152
99
253
28
4,557
2020
£000
119
46
165

2a. Other Income

Income from Government Grants resulted from claims made to the Coronavirus Job Retention Scheme.

3. Investment income

. Investment income
Interest receivable
Change in accrued investment interest
Interest from Baring Asset Management portfolio re-
invested
Dividends from Baring Asset Management portfolio re-
invested		 2021
£000
-
(13)
243
70
300		 2020
£000
1
(24)
450
176
603

The Charity moved its portfolio from directly owning the assets in a segregated fund to investing in two pooled funds in September 2021 (see note 10).

46

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

4. Expenditure

Financial
Support
(Note 4a)
Direct
Activities
Support
costs
(Note 4b)
2021
Total
£000
£000
£000
£000
Costs of raising funds
Fundraising & engagement
-
1,026
536
1,562
Investment costs
-
91
-
91
-
1,117
536
1,653
Charitable activities
Alleviating need
1,637
2,594
2,054
6,285
Total expenditure at 2021
1,637 3,711
2,590
7,938
Total expenditure at 2020
1,659
3,791
2,742
8,192
(a) Analysis of financial support
2021
One-off
2021
Ongoing
2021
Total
2020
One-off
2020
Ongoing
£000
£000
£000
£000
£000
to help in the following
circumstances:
- bereavement
114
-
114
151
-
- caring
2
-
2
4
-
- disability
113
-
113
186
-
- domestic abuse
44
-
44
30
-
- emergency situation
11
-
11
12
-
- ill health
270
65
335
223
74
- poor wellbeing
379
-
379
332
-
- reduced or low income
436
2
438
470
4
- relationship breakdown
181
-
181
161
-
- unstable/unsafe living
arrangements
20
-
20
11
-
- community projects
-
-
1
-
1,570
67
1,637
1,581
78		 Financial
Support
(Note 4a)
Direct
Activities
Support
costs
(Note 4b)
2021
Total
£000
£000
£000
£000
Costs of raising funds
Fundraising & engagement
-
1,026
536
1,562
Investment costs
-
91
-
91
-
1,117
536
1,653
Charitable activities
Alleviating need
1,637
2,594
2,054
6,285
Total expenditure at 2021
1,637 3,711
2,590
7,938
Total expenditure at 2020
1,659
3,791
2,742
8,192
(a) Analysis of financial support
2021
One-off
2021
Ongoing
2021
Total
2020
One-off
2020
Ongoing
£000
£000
£000
£000
£000
to help in the following
circumstances:
- bereavement
114
-
114
151
-
- caring
2
-
2
4
-
- disability
113
-
113
186
-
- domestic abuse
44
-
44
30
-
- emergency situation
11
-
11
12
-
- ill health
270
65
335
223
74
- poor wellbeing
379
-
379
332
-
- reduced or low income
436
2
438
470
4
- relationship breakdown
181
-
181
161
-
- unstable/unsafe living
arrangements
20
-
20
11
-
- community projects
-
-
1
-
1,570
67
1,637
1,581
78		 Financial
Support
(Note 4a)
Direct
Activities
Support
costs
(Note 4b)
2021
Total
£000
£000
£000
£000
Costs of raising funds
Fundraising & engagement
-
1,026
536
1,562
Investment costs
-
91
-
91
-
1,117
536
1,653
Charitable activities
Alleviating need
1,637
2,594
2,054
6,285
Total expenditure at 2021
1,637 3,711
2,590
7,938
Total expenditure at 2020
1,659
3,791
2,742
8,192
(a) Analysis of financial support
2021
One-off
2021
Ongoing
2021
Total
2020
One-off
2020
Ongoing
£000
£000
£000
£000
£000
to help in the following
circumstances:
- bereavement
114
-
114
151
-
- caring
2
-
2
4
-
- disability
113
-
113
186
-
- domestic abuse
44
-
44
30
-
- emergency situation
11
-
11
12
-
- ill health
270
65
335
223
74
- poor wellbeing
379
-
379
332
-
- reduced or low income
436
2
438
470
4
- relationship breakdown
181
-
181
161
-
- unstable/unsafe living
arrangements
20
-
20
11
-
- community projects
-
-
1
-
1,570
67
1,637
1,581
78		 Financial
Support
(Note 4a)
Direct
Activities
Support
costs
(Note 4b)
2021
Total
£000
£000
£000
£000
Costs of raising funds
Fundraising & engagement
-
1,026
536
1,562
Investment costs
-
91
-
91
-
1,117
536
1,653
Charitable activities
Alleviating need
1,637
2,594
2,054
6,285
Total expenditure at 2021
1,637 3,711
2,590
7,938
Total expenditure at 2020
1,659
3,791
2,742
8,192
(a) Analysis of financial support
2021
One-off
2021
Ongoing
2021
Total
2020
One-off
2020
Ongoing
£000
£000
£000
£000
£000
to help in the following
circumstances:
- bereavement
114
-
114
151
-
- caring
2
-
2
4
-
- disability
113
-
113
186
-
- domestic abuse
44
-
44
30
-
- emergency situation
11
-
11
12
-
- ill health
270
65
335
223
74
- poor wellbeing
379
-
379
332
-
- reduced or low income
436
2
438
470
4
- relationship breakdown
181
-
181
161
-
- unstable/unsafe living
arrangements
20
-
20
11
-
- community projects
-
-
1
-
1,570
67
1,637
1,581
78		 Financial
Support
(Note 4a)
Direct
Activities
Support
costs
(Note 4b)
2021
Total
£000
£000
£000
£000
Costs of raising funds
Fundraising & engagement
-
1,026
536
1,562
Investment costs
-
91
-
91
-
1,117
536
1,653
Charitable activities
Alleviating need
1,637
2,594
2,054
6,285
Total expenditure at 2021
1,637 3,711
2,590
7,938
Total expenditure at 2020
1,659
3,791
2,742
8,192
(a) Analysis of financial support
2021
One-off
2021
Ongoing
2021
Total
2020
One-off
2020
Ongoing
£000
£000
£000
£000
£000
to help in the following
circumstances:
- bereavement
114
-
114
151
-
- caring
2
-
2
4
-
- disability
113
-
113
186
-
- domestic abuse
44
-
44
30
-
- emergency situation
11
-
11
12
-
- ill health
270
65
335
223
74
- poor wellbeing
379
-
379
332
-
- reduced or low income
436
2
438
470
4
- relationship breakdown
181
-
181
161
-
- unstable/unsafe living
arrangements
20
-
20
11
-
- community projects
-
-
1
-
1,570
67
1,637
1,581
78		 2020
Total
£000
1,305
113
1,418
6,774
8,192
2020
Total
£000
151
4
186
30
12
297
332
474
161
11
1
1,570
67
1,637		 1,581 78 1,659

There were no repayable grants (2020: none) agreed during the year. The total outstanding at 31 December is shown in Note 11 to the Accounts.

47

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

(b) Analysis of support costs

Costs of
raising funds
Fundraising &
engagement
Charitable
activities
Alleviating
need
In 2021
In 2020		 Management
Governance
£000
£000
131
8
524
32
655
40
791
32		 Management
Governance
£000
£000
131
8
524
32
655
40
791
32		 Management
Governance
£000
£000
131
8
524
32
655
40
791
32		 Management
Governance
£000
£000
131
8
524
32
655
40
791
32		 DB
Pension
Scheme
£000
32
126		 Finance
£000
49
194		 Finance
£000
49
194		 H.R
£000
47
187		 Insight &
Analysis
£000
51
203		 Insight &
Analysis
£000
51
203		 IT &
Systems
£000
171
598		 IT &
Systems
£000
171
598		 2021
2020
Central
Services
Total
Total
£000
£000
£000
47
536
551
190
2,054
2,191		 2021
2020
Central
Services
Total
Total
£000
£000
£000
47
536
551
190
2,054
2,191
655 40 158 243 234 254 769 237
2,590
2,742
791 32 177 241 364 364 467 306
2,742

Allocation is based on the use of resources, being the relevant proportions of staff costs, time spent and assets utilised.

(c) Analysis of governance costs
Board of Trustees expenses
Annual Reports & accounts
Audit fees
5. Net Income/expenditure for the year
This is stated after charging/crediting:
Amortisation/depreciation charge for the year
Auditors’ remuneration – audit fees (excluding
VAT)		 2021
£000
3
7
24
34
2021
£000
105
20		 2020
£000
3
8
21
32
2020
£000
85
18

6. Trustees and employees

The trustees and persons connected with them have not received or obtained any remuneration or other financial benefits during the year, directly or indirectly from the Charity’s funds (2020: nil). No trustees were reimbursed travelling expenses during 2021 (2020: one trustee, £51).

48

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

Employee and staff costs

Staff costs during the year were as follows:
£000
£000
Salaries
3,828
4,047
Employer’s national insurance
392
412
Employer’s regular pension scheme contributions
514
502
Total
4,734
4,961
During the year, there was one termination payment of £6,420 (2020 £137k) and there
were no outstanding payments at the end of the year.
Average number of employees – Full-time equivalents
Regional
HQ
2021
2020
Marketing and Income Generation
14
19
33
36
Help, Advice and Service
14
23
37
38
Management and Central Services
1
24
25
26
In 2021
29
66
95
100
In 2020
26
74
100
Average number of employees – Headcount
Regional
HQ
2021
2020
Marketing and Income Generation
14
20
34
38
Help, Advice and Service
17
25
42
43
Management and Central Services
1
27
28
29
In 2021
32
72
104
110
In 2020
30
80
110		 Staff costs during the year were as follows:
£000
£000
Salaries
3,828
4,047
Employer’s national insurance
392
412
Employer’s regular pension scheme contributions
514
502
Total
4,734
4,961
During the year, there was one termination payment of £6,420 (2020 £137k) and there
were no outstanding payments at the end of the year.
Average number of employees – Full-time equivalents
Regional
HQ
2021
2020
Marketing and Income Generation
14
19
33
36
Help, Advice and Service
14
23
37
38
Management and Central Services
1
24
25
26
In 2021
29
66
95
100
In 2020
26
74
100
Average number of employees – Headcount
Regional
HQ
2021
2020
Marketing and Income Generation
14
20
34
38
Help, Advice and Service
17
25
42
43
Management and Central Services
1
27
28
29
In 2021
32
72
104
110
In 2020
30
80
110		 Staff costs during the year were as follows:
£000
£000
Salaries
3,828
4,047
Employer’s national insurance
392
412
Employer’s regular pension scheme contributions
514
502
Total
4,734
4,961
During the year, there was one termination payment of £6,420 (2020 £137k) and there
were no outstanding payments at the end of the year.
Average number of employees – Full-time equivalents
Regional
HQ
2021
2020
Marketing and Income Generation
14
19
33
36
Help, Advice and Service
14
23
37
38
Management and Central Services
1
24
25
26
In 2021
29
66
95
100
In 2020
26
74
100
Average number of employees – Headcount
Regional
HQ
2021
2020
Marketing and Income Generation
14
20
34
38
Help, Advice and Service
17
25
42
43
Management and Central Services
1
27
28
29
In 2021
32
72
104
110
In 2020
30
80
110		 Staff costs during the year were as follows:
£000
£000
Salaries
3,828
4,047
Employer’s national insurance
392
412
Employer’s regular pension scheme contributions
514
502
Total
4,734
4,961
During the year, there was one termination payment of £6,420 (2020 £137k) and there
were no outstanding payments at the end of the year.
Average number of employees – Full-time equivalents
Regional
HQ
2021
2020
Marketing and Income Generation
14
19
33
36
Help, Advice and Service
14
23
37
38
Management and Central Services
1
24
25
26
In 2021
29
66
95
100
In 2020
26
74
100
Average number of employees – Headcount
Regional
HQ
2021
2020
Marketing and Income Generation
14
20
34
38
Help, Advice and Service
17
25
42
43
Management and Central Services
1
27
28
29
In 2021
32
72
104
110
In 2020
30
80
110		 £000
4,047
412
502
4,961
29
66		 95
100
26
74		 100
Regional
HQ
14
20
17
25
1
27		 2021
2020
34
38
42
43
28
29
32
72		 104
110
30
80		 110

Number of employees with emoluments (including taxable benefits but excluding employer pension costs) exceeding £60,000:

2021 2020
£60,001 - £70,000 2 1
£70,001 - £80,000 1 2
£80,001 - £90,000 1 1
£90,001 - £100,000 2 1
£100,001 - £110,000 1 1
Employer pension contributions paid in respect of a defined
contributions pension scheme		 £64,807 £52,029

49

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

The key management personnel of the Charity comprise the Chief Executive Officer and three Directors. The total employee benefits of the key management personnel of the Charity were £440,666 (2020: £430,531), including salary, employer pension contributions, Health Cash Plan premiums and employer National Insurance contributions.

Our senior management team remuneration in 2021 was as follows:

The Chief Executive elected not to take a pay rise in 2021.
2021
Total remuneration
397,139
Employers NI
43,527
Dependents Pension Benefit annual premium (not BIK) –
closed 31st March 2020
-
Grand Total
£440,666
2021
Position
Basic Salary
Benefits
Employers
Pension
conts.
Total
remuneration
Chief Executive
£101,353#
£0
£14,189
£115,542
Director of Help
and Advice
£80,581
£222
£11,281
£92,084
Director of
Finance &
Corporate
Services
£91,340
£222
£12,788
£104,350
Director of
Strategic
Marketing and
Income
Generation
£77,452
£222
£7,489
£85,163		 2020
£387,006
£42,672
£853
2020
Total
remuneration
£114,838
£90,844
£100,112
£81,212
£430,531

The Chief Executive elected not to take a pay rise in 2021.

7. Volunteers

The charity has a total of 975 volunteers (2020: 611 volunteers) situated across the UK at the end of 2021.

In 2021 the Charity launched the new ‘2025 Volunteering Strategy’ where we introduced a new engagement network: The Champions and new Skills-Based Volunteering roles.

The Charity had 876 Champions across the UK by the end of 2021, based in 42 government departments. Our Champions have either received help in the past or are keen to ensure that colleagues do not struggle through circumstances without the Charity’s support.

50

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

Doing this by promoting the Charity’s services and encouraging fundraising and income giving, mainly by sharing information digitally within their workplaces.

With the launch of the Skills Based Volunteering roles, we had 10 individuals in 10 different roles, supporting the volunteering and organisational strategic vision.

8 Volunteers were appointed to roles to represent the volunteer audience from different departments and activities as part of the new Volunteer Strategy Group, who provided feedback on several activities including; the design and content of new role profiles, a mentoring/buddy scheme proposal and fundraising in workplaces.

The overall number of 975 volunteers for 2021 includes: Champions, the Skills-Based Volunteers (who are also registered as Champions on the data base) and those who are still registered with us who are Retired and Former CS, who we still communicate with outside of The Champions network.

8. Intangible fixed assets

Cost or valuation
Balance at 01.01.2021
Additions
Disposals
Balance at 31.12.2021
Accumulated amortization
Balance at 01.01.2021
Charge for the year
Disposals
Balance at 31.12.2021
Net book value at 31.12.2021
Net book value at 31.12.2020		 Website &
software
£000
485
332
(57)		 Website &
software
£000
485
332
(57)
760
259
74
(57)
276
484
226

Assets in the course of construction were £374,912 (2020: 43,174)

51

THE CHARITY FOR CIVIL SERVANTS

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

9. Tangible fixed assets

Cost or valuation
Balance at 01.01.2021
Additions
Disposals
Balance at 31.12.2021
Accumulated depreciation
Balance at 01.01.2021
Charges for the year
Disposals
Balance at 31.12.2021
Net book value at 31.12.2021
Net book value at 31.12.2020		 Freehold
property
£000
940
-
-
940
250
12
-
262
678
690		 Fixtures,
fittings
and
equipment
£000
333
12
(4)
341
289
19
(3)
305
38
44		 Total
£000
1,273
12
(4)
1,281
539
31
(3)
567
716
734

The Charity’s property at No 5 Anne Boleyn’s Walk, Cheam, was re-valued by Christie & Co, Surveyors, Valuers and Agents, in June 2000. All adjustments necessary to reflect the value as at that date were charged to the Revaluation Reserve. Subsequent depreciation has been based on the re valued amounts.

10. Fixed asset investments

(a) Investment portfolio

Movements in the investment portfolio in the
year
Market value at 1 January
Dividends received – re-invested
Interest re-invested
Net ( disposals) Barings
Investment transferred to Columbia
Net ( disposals) Columbia
Net investment gain
Market value at 31 December		 2021
£000
35,526
70
243
(36,855)
33,956
(1,300)
945
32,585		 2020
£000
39,099
176
451
(4,568)
-
-
368
35,526

The investments as at 31 December 2021 shown above as managed by Columbia Threadneedle have been valued at fair value (their market value) on 31 December 2021.

During 2021 the Charity transferred its investment portfolio from Barings to Columbia Threadneedle. Under the management of Barings, the portfolio was held in segregated funds meaning the investment assets were directly owned by the Charity. In September 2021 the Charity transferred its investment portfolio into two pooled funds: a short term and a long term fund. The Charity owns shares in the pooled funds and has opted for accumulated shares. Any distributions due to the fund will not be allocated as income but

52

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

will be reinvested and form part of the fund’s capital and reflected in an increased share price.

Market value of pooled funds as at 31 December 2021:

arket value of pooled funds as at 31 December 2021:
Funds
Short Term Fund
Long Term Fund
Total held with Columbia Threadneedle		 £000
5,625
26,960
32,585

The Short Term fund is mainly comprised of fixed income and cash to mitigate any short term market volatility. The Long term fund’s asset weighting as at 31 December 2021 is analysed below:

Long Term Fund Weighting
(%)
Fixed Income 45.80%
Equities 42.30%
Commodities 6.50%
Cash 3.10%
Property 2.30%
Total 100.00%

Investments held by Baring Asset Management is set out below, reflecting the asset types of the underlying investments as at 31 December 2020:

Asset Class Market
Value
£000		 Market
Value
£000		 % Total
Equities 19,973 56.22%
Bonds 12,644 35.59%
Commodities 1,876 5.28%
Foreign exchange
contracts		 831 2.34%
Cash and cash
equivalents		 202 0.57%
Total portfolio 35,526 100%

(b) Investment in subsidiary

The Charity has an investment in one wholly owned subsidiary CSBF Enterprises Limited, a company registered in England & Wales, No. 03119311, with ordinary issued share capital of 7 shares of £1 each. The investment is held at a cost of £7. As the accounts are rounded to £000s, this investment is not shown on the balance sheet, and consolidated accounts are not prepared, as the subsidiary is not material to the assets, liabilities or net results of the Charity. The subsidiary had minimal activity during the year and does not employ any staff directly. The administrative charge to offset the cost of time spent by Charity staff on behalf of CSBF Enterprises Ltd was nil (2020: nil). In 2021 the subsidiary made a loss in the year and no donation has been made to the Charity. Its reserves at year end were £9,060 (2020: £9,713). At the year end, CSBF Enterprises Limited owed the charity £825 (2020: £624).

53

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

11. Debtors

Other debtors:
-
Repayable grants
-
Sundry debtors
Prepayments
Accrued income:
-
Contributions from individuals
-
Legacies
-
Tax credits on gift aid donations
-
Other accrued income
-
Investment income
Due from CSBF Enterprises Ltd		 2021
£000
32
2
323
135
200
74
1
-
1
768		 2020
£000
70
4
170
145
33
14
-
14
1
451

In 2021 £38k of repayable grants were reclassified into non-repayable financial support.

12. Creditors - amounts falling due within one year

Accrued financial grants payable
Trade creditors
Pension contributions
Taxation and social security costs
Accruals
2.(a)Movement of financial support payable
Opening financial grants payable
Alleviating need recognised
Financial grant payments made during the year
Cancelled/refunded financial grants
Closing financial grants payable 2021		 2021
£000
127
305
54
104
89
679
£000
66
1,637
(1,595)
19
127		 2020
£000
66
175
53
105
179
578

12.(a) Movement of financial support payable

In 2021 £127k (2020: £66k) of financial grants were approved but not paid. These are expected to be paid in 2022.

54

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

13. Operating Leases

Rentals charged in the year
Equipment
The total future minimum lease payments under operating
leases are due as follows:
- in less than one year
- in more than one year and less than five years		 2021
£000
27
Equipment
2021
£000
17
3		 2020
£000
31
2020
£000
32
15

14. Funds

The Charity maintains various types of fund as set out below.

Unrestricted funds

Unrestricted funds represent the free funds of the Charity which are expendable at the discretion of the trustees to further the objects of the Charity.

Restricted funds

Restricted funds are those funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for particular purposes.

Customs & Excise Family Fund

A restricted donation of £30,000 was given to the Charity in March 2006, following the dissolution of The Customs & Excise Family Fund. This was to provide Christmas grants to certain members of the Family Fund, in line with the wishes of their trustees. Interest earned on the Restricted fund was £0 (2020: £0) and grants expenditure was £660 (2020: £660).

Fenton Trust

Restricted donations of £20,000 and £15,000 were given to the Charity in March 2013 and September 2015 respectively to support current, former and retired civil servants of grades executive officer and above residing in the UK. This is to provide grants for essential household bills and items and help with mobility requirements. Grants expenditure in 2021 was £0 (2021: £0) due to no applications being received in the year.

Civil Aviation Authority Fund

A donation provided by the Civil Aviation Authority was restricted to provide help to CAA retired staff and their dependants. In 2021, the interest earned on the restricted fund was £0 (2020: £0) and £0 was spent (2020: £771) on applications from CAA retirees or their dependants.

The Black Bequest Fund

In 2019, the Northern Lighthouse Board donated to the Charity £1,719.62 which represents the closing funds of the James Coats Junior Ferguslie Paisley Memorial Fund, known as Black Bequest. The amount is restricted to be used to supply Lightkeepers or their dependants who are

55

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

or have been in the employ of the Northern Lighthouse Board with benefits in line with those offered by the Charity. No interest has been earned on or money spent from the Fund in 2021 (2020: £0).

Dementia Fund

In 2014, CSIS Charity Fund donated £28,000 to be spent on Dementia services. £4k was spent in 2021 (2020: £0).

During 2019, a new project was developed in partnership with Dementia UK. A part of this was a plan to deliver face to face support sessions led by Admiral Nurses in civil service workplaces. However, the COVID-19 pandemic led to these being cancelled. Instead, the project has now focused on the development of digital engagement through the pilot of online clinics and an online appointment based model.

Analysis of movements
Restricted Funds
Opening
Balance
£000
Customs & Excise
Family Fund
16
Fenton Trust
7
CAA Fund
5
Black Bequest Fund
2
Dementia Project Fund
23
Balance at 31
December 2021
53
Analysis of net assets by fund
Intangible &
tangible
fixed assets
Unrestricted funds
£000
General reserves
1,200
Restricted funds
-
Balance at 31
December 2021
1,200
Analysis of movements for the Year
Restricted Funds
Opening
Balance
£000
Customs & Excise
Family Fund
17
Fenton Trust
7
CAA Fund
6
Black Bequest Fund
2
Dementia Project Fund
23
Balance at 31
December 2021
55		 Income
£000
-
-
-
-
-
-
Investment
assets
£000		 Transfers
between
Funds
£000
-
-
-
-
-
-
Net Current
assets
£000		 Expenditure
£000
(1)
-
-
-
(4)
(5)
Defined
Pension
scheme
£000
-
-
-
Expenditure
£000
(1)
-
(1)
-
-
(2)		 Closing
Balance
£000
15
7
5
2
19
48
Total
£000
34,851
48
34,899



32,585
-		 1,066
48
32,585 1,114
Closing
Balance
£000
16
7
5
2
23
53

56

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

Analysis of net assets by fund the Year Ended 31 December 2020

Unrestricted funds
General reserves
Pension reserve
Restricted funds
Balance at 31
December 2020		 Intangible
& tangible
fixed assets
£000
960
-
-
960		 Investment
assets
£000
35,526
-
-
35,526		 Net
Current
assets
£000
1,057
-
53
1,110		 Defined
Pension
scheme
£000
-
(338)
-
(338)		 Total
£000
37,543
(338)
53
37,258

15. Taxation

No corporation tax arises as the Charity for Civil Servants is a registered Charity, and is able to take advantage of the tax relief available to charitable bodies.

16. Pension

The Charity for Civil Servants participates in a non-contributory multi-employer defined benefit staff pension scheme, which was formed for all permanent members of staff, within certain age criteria, of the Charity for Civil Servants and certain other employers. The assets of the scheme are held separately from the assets of the Charity. The scheme has its own trustees who are responsible for the scheme which is administered on their behalf by Mercer. The scheme was closed to all staff for future benefit accrual with effect from 5 April 2004.

The Charity also operates a defined contribution group personal pension scheme which is administered by Legal & General. The Charity pays varying levels of contributions on behalf of the employees, based on their number of years’ service and levels of employees’ own contributions.

A full triennial actuarial valuation of the defined benefit scheme was undertaken at 6 April 2019 by an independent qualified actuary. This revealed a deficit, on the assumptions used, of £1,855,000. The employers signed up to a recovery plan which is intended to eliminate the shortfall by 5 April 2023. The Charity is committed to paying the following contributions and expenses.

Year Commencing Contribution Expenses
6 April 2019 £485,892 £141,000
6 April 2020 £453,446 £188,000
6 April 2021 £468,460 £188,000
6 April 2022 £483,924 £188,000

The best estimate of contributions to be paid by the Charity for the year beginning 1 January 2022 is £668,061. Detailed disclosures for the defined benefit pension scheme, in accordance with FRS102, are set out below.

Present value of scheme liabilities, fair value of assets and deficit

Fair value of scheme assets
Present value of scheme liabilities
Surplus / (deficit) in Scheme

57

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

The Charity has not recognised the pension surplus on its balance sheet as FRS 102 only permits a surplus to be recognised where the employer is able to recover that surplus either through reduced contributions in future or through refunds from the plan.

Reconciliation of opening and closing balances of the present value of scheme liabilities

Reconciliation of opening and closing balances of the present value of scheme
liabilities		 Reconciliation of opening and closing balances of the present value of scheme
liabilities		 me
2021
£000
2020
£000
Scheme liabilities at 1 January
23,363
20,875
Change in employer’s share
-
-
Scheme expenses
158
177
Interest cost
321
413
Actuarial (gain) / loss
(898)
2,613
Benefits paid and expenses
(900)
(715)
Scheme liabilities at 31 December
22,044
23,363
Reconciliation of opening and closing balances of the fair value of scheme assets
2021
£000
2020
£000
Fair value of scheme assets at 1 January
23,025
21,175
Change in employer’s share
(8)
(2)
Interest income
320
423
Actuarial gain
1,678
1,506
Contributions by employer
653
638
Benefits paid & scheme expenses
(900)
(715)
Fair value of scheme assets at 31 December
24,768
23,025
Amounts included within Statement of Financial Activities

2021
£000
2020
£000
Interest cost
(1)
-
Scheme expenses
(158)
(177)
Change in employer’s share
-
(2)
Total (charged) within net income
(159)
(179)
Actuarial (losses)
(156)
(797)
Total (charged) to the Statement of Financial Activities
(315)
(976)		 2020
£000
20,875
-
177
413
2,613
(715)
23,363
2020
£000
21,175
(2)
423
1,506
638
(715)
23,025
2020
£000
-
(177)
(2)
(179)
(797)
(976)

The cumulative amount of actuarial gains or losses recognised in the statement of recognised gains and losses since the adoption of FRS102 is £1,049k loss (2020: £734k).

58

THE CHARITY FOR CIVIL SERVANTS

NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

Fair value of scheme assets

2021
£000
%
UK equity
-
-
Other equity
4,816
19.4%
Global equity
8,846
35.7%
Absolute Return Bond Fund
1,981
8.0%
Gilts
2,355
9.5%
Liability Driven Investment
6,683
27.0%
Cash
87
0.4%
Total value of assets
24,768
100%
Assumptions
Inflation (RPI)
Inflation (CPI)
Discount rate
Allowance for increase in pensions: lower of CPI or 5%
(effective from April 2017)
Rate of revaluation of deferred pensions of CPI +1%
Rate of revaluation for deferred pensioners: Lower of CPI or 5%
Cash commutation allowance (% tax free cash)
Withdrawal allowance
Assumed life expectations (no. years) on retirement age of 60
-
Retiring today: males
-
Retiring today: females
-
Retiring in 20 years: males
-
Retiring in 20 years: females

59

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

The amounts for the current and previous periods are as follows:

2021
£000
Defined benefit obligation
24,768
Scheme assets
(22,044)
Surplus/(Deficit)
2,724
Adjustment due to
limitations on recognition
of surplus
(2,724)
Experience adjustment:
gain/(loss) on scheme
liabilities
(60)
Effect of changes in
demographic/other
assumptions re: the
present value of the
scheme liabilities;
gain/loss
958
Return on scheme assets:
gains/(losses) assets
1,678
7. Financial instruments
Financial assets measured at fair value		 2020
£000
23,025
(23,363)
(338)
300
153
(2,767)
1,506		 2019
£000
21,175
(20,875)
300
(300)
678
(1,350)
2,464
2021
£000		 2019
£000
21,175
(20,875)
300
(300)
678
(1,350)
2,464
2021
£000		 2018
£000
(22,162)
20,371
(1,791)
-
(66)
1,173
(1,333)


 2017
£000
(23,702)
21,796
(1,906)
-
171
(28)
988		 2017
£000
(23,702)
21,796
(1,906)
-
171
(28)
988
-
171
(28)
988
2020
£000
£000
32,585 35,526

17. Financial instruments

Financial assets held at fair value include assets held as investments

18. Related parties

During the year to 31 December 2021 the Charity recharged costs amounting to £0 (2020 £0) in relation to staff and office overheads to its wholly owned subsidiary CSBF Enterprises.

19. Events after the end of the year

The Charity’s investment portfolio was valued at £32.6m on 31 December 2021. Since the year end tensions between Russia and Ukraine and then the Russian invasion of Ukraine in late February have led to increased volatility in equity markets as investors consider the attack’s expected impact on energy, global growth, inflation and central bank actions. The portfolio was valued at £30.8m on 30 March just before this report was signed. This reflects divestments from the funds of £1.3m and the value of the Charity’s units decreasing by £0.4m.

60

THE CHARITY FOR CIVIL SERVANTS NOTES TO THE ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021

20.Statement of Financial Activities for the Year Ended 31 December 2020

Unrestricted
Funds
Income from
£000
Donations and legacies
4,557
Other income
165
Investment Income
603
Total income
5,325
Expenditure on
Raising funds
Fundraising & Engagement
1,305
Investment management
113
Total costs of raising funds
1,418
Charitable activities
Alleviating need
6,772
Total charitable expenditure
6,772
Total expenditure
8,190
Net expenditure for the year
(2,865)
Net gains on investments
368
Actuarial gain on defined benefit pension scheme
(797)
Net movement in funds for the year
(3,294)
Reconciliation of funds
Funds brought forward at 1 January 2020
40,499
Funds carried forward at 31 December 2020
37,205		 Restricted
Funds
£000
-
-
-
-
-
-
-
2
2
2
(2)
-
-
(2)
55
53		 2020
Total
Funds
£000
4,557
165
603
5,325
1,305
113
1,418
6,774
6,774
8,192
(2,867)
368
(797)
(3,296)
40,554
37,258

61

The Charity for Civll Servants 5 Anne Boleyn's Walk, Cheam, SM3 8DY 020 8240 2400 foryoubyyou.org.uk The Charity forcivil Setvants isiheoperatingnameof thecivil ServiceBenevolent Fund, registered d]arity in Englandandwaies 111368701 and Scot]and ISC0419561. Company]imitedby guarantee 172863991. Ourmoneyadvice is authorised and regu]ated bythe FinancialCondurtAuthority (FPN.. 6244891- FR FUNDRAISING REGULATOR