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2021-12-31-accounts

Charity registration number

1141069 Company registration number 06581421 (England and Wales)

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED

BY GUARANTEE)

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31

DECEMBER 2021

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED LEGAL AND ADMINISTRATIVE INFORMATION

Trustees

Mr Michael Lewis Mr Stuart Fiertz Mr M Bergman Dr Serra Kirdar Mr Edward Williams

Charity number 1141069 Company number 06581421 Registered office PO Box 75769 London SW1P 9ER Auditor Landau Morley LLP 325-327 Oldfield Lane North Greenford Middlesex UB6 0FX

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED CONTENTS

Page
Trustees report 1 - 7
Statement of Trustees responsibilities 8
Independent auditor's report 9 - 11
Statement of fnancial activities 12
Balance sheet 13
Statement of cash fows 14
Notes to the fnancial statements 15 - 25

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

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

The Trustees (who are also directors of the charity for the purposes of the Companies Act) present their annual report together with the audited financial statements of The Institute for Strategic Dialogue (the company) for the year ended 31 December 2021. The Trustees confirm that the annual report and financial statements of the company comply with the current statutory requirements, the requirements of the company's governing document and the provisions of the Statement of Recommended Practice (SORP), applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Constitution

The company is registered as a charitable company limited by guarantee (registered charity number 1141069) and was set up by a Memorandum of Association on 30 April 2008.

The charity is constituted under a Memorandum of Association and is a registered charity.

Method of Appointment or Election of Trustees

The management of the company is the responsibility of the Trustees who are elected and co-opted under the terms of the Articles of Association.

Organisational Structure and Decision Making

The Institute for Strategic Dialogue (ISD) has a Board of Trustees that meets twice a year. There is a Chair of the Board and Treasurer. The Institute also has an active Finance Committee, made up of the Chair and Treasurer, which meets regularly and works closely with the Chief Executive Officer (CEO) and Chief Operating Officer (COO).

Responsibility for day-to-day management matters and the implementation of policy is delegated to the CEO, within a clearly understood framework of strategic control. The CEO is supported by a leadership team and senior management team responsible for the execution of the organisational objectives. All Trustees and Staff are required to report any potential or actual conflicts of interest immediately to the Chair and/or CEO.

Risk Management

The Trustees have assessed the major risks to which the company is exposed, in particular those related to the operations and finances of the company, and are satisfied that systems and procedures are in place to mitigate exposure to the major risks.

Public Benefit

The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2006 to have due regard to the Charity Commission’s general guidance on public benefit, ‘Charities and Public Benefit’. All of the activities that are undertaken by the charity are for the advancement of the objectives and the activities that are undertaken by the charity to further its charitable purposes are for the public benefit.

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

Objectives and activities

The Institute for Strategic Dialogue (ISD) is an independent ‘think and do tank’ that studies and develops policy and operational responses to the rising challenges of hate, polarisation and extremism. Combining research and analysis of disinformation, hate and extremism with government advisory work, training, capacity building and educational programmes, ISD has been at the forefront of forging real-world, evidence-based responses to the challenges of disinformation, extremism and polarisation.

The principal objects of the charity and company are:

STRATEGIES & ACTIVITIES FOR ACHIEVING OBJECTIVES

Since its formation, ISD has been at the forefront of solutions that combat extremism, hate speech and disinformation. At a time when these pose immediate threats to safety, security and democratic civil culture and institutions, ISD is working to enable individuals, organisations and nations to turn the tide.

ISD’s work is delivered through three types of activity:

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

Achievements and performance

The forces ISD seeks to fight - polarisation, hate, extremism and disinformation - continued to have profound impact throughout 2021, presenting real and immediate threats to cohesion and democracy in many countries worldwide. In a year which saw the international landscape of extremism continue to shift, our experts and researchers examined key trends globally and worked to combat these threats through three core operating areas: research and analysis; policy and advisory services; and action programming.

The following areas of programming constituted particular highlights of the organisation’s work in 2021:

Research & Analysis

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

crossovers. Our cross-platform data snapshot of English, Arabic and German Salafi content included completely new insights on emerging ideological trends which have seen large online communities merging Salafist ideas with alt-right memes and gaming subcultures, presenting a concerning example of the increasingly hybridised threat characterising contemporary extremism.

Policy & Advisory

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

first comprehensive studies of hateful and extremist content on TikTok, feeding into ISD’s presentation on algorithmic amplification to the EU Internet Forum and underpinning our calls for improved transparency and accountability in tech governance. In December we launched the second phase of the Digital Policy Lab which convenes regulators and policymakers from the EU and 13 European and Five Eyes countries to help chart a course forward on digital policy and regulation. Early in 2021, ISD experts briefed the new US administration at the White House on our calls for democratic digital regulation. ISD also hosted an official side event at President Biden’s Summit for Democracy in December 2021 to convene global experts on the issue of data access from technology platforms, which will feed into the administration’s ongoing efforts to design US policy on technology and democracy. This closed discussion on the issue of platform data access for research is part of a wider agenda on improving transparency, a central focus for ISD’s digital policy work in 2022.

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

Action programming

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

We also joined with partners to deliver the ReNews project to promote media literacy across France, Poland and Turkey, complementing our UK flagship education programme Be Internet Citizens which continues to scale.

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

MEDIA AND COMMUNICATIONS

During 2021, ISD continued to earn high-profile and influential media coverage of our work. This included continued coverage of our COVID-19-related work ( Washington Post , Reuters , The Guardian ) and extensive coverage of our ground-breaking research into hate, extremism and disinformation on TikTok ( NBC News , USA Today , PBS , Politico ). We received in-depth coverage of our work on gaming and extremism ( WIRED ), Amazon’s algorithm recommending extremist material ( USA Today ), the ‘climate lockdown’ conspiracy ( Euronews ), extremism on TikTok ( Insider ), and ISIS propaganda on alt-tech ( Hufngton Post ). We also provided op-eds on the intersection between climate and the culture wars ( Tortoise ), and the incel-linked attack in Plymouth demonstrating the need to understand hybridised threats ( New Statesman ). We had broadcast interviews on widereaching networks, including Sasha Havlicek appearing on Sky News to discuss the global impact of 9/11; Chloe Colliver discussing anti-vaccination movements on BBC Newsnight and gendered harassment on BBC Panorama ; Jacob Davey talking about gaming and extremism on BBC Click ; and Mackenzie Hart discussing Canadian right-wing extremism on CBC News . We have continued to provide expert commentary and have our work cited in a variety of high-profile outlets, including the New York Times , Wall Street Journal , The Economist , The Atlantic , the Financial Times , The Guardian , VICE , BBC , and Politico .

Our Digital Dispatches published 75 articles on subjects ranging from anti-Muslim mobilisation in France after terror attacks to an examination of how TikTok Sounds are used to fuel antivaccine fears . Digital Dispatches became an important channel through which ISD’s work could be brought to the attention of high-level audiences. For example, in April 2021 the Digital Dispatches article ‘ The Long Road to the Capitol: A Hybrid Threat Landscape ’ was selected by the Library of Congress for inclusion in the archive of online materials related to the January 6th attack on the US Capitol. Finally, ISD had its most significant podcast appearance to date, working on a multi-part series about QAnon, ‘ Finding Q ’, released on Audible in collaboration with Tortoise. The podcast extensively featured ISD’s Aoife Gallagher and received highly positive reviews in the press ( FT , The Times , The Guardian ).

OPERATIONS

The long-range impact of COVID-19 on the non-profit sector continued to impact the operations of ISD in 2021. The organisation continued to work hard to oversee a large portfolio of active projects as well as facilitating fundraising and development. ‘Long COVID’ resulted in delivery challenges, creating a very busy second half of the year for the team. Beyond business as usual, the team focused on systems, processes and global integration to ensure greater efficiency in delivery and greater visibility around deliverables. This includes migrating all project management to Microsoft Teams, as well as developing clearer global and regional operational structures.

In addition to the ‘business as usual’ work of managing the organisation’s finances, operations, HR, project management and security, ISD successfully navigated a substantial team growth in the year, both in the UK and through sister organisations in Germany and the US. Time was invested in addressing the range of challenges presented by rapid growth, with recruitment of more operations staff to administer a significantly expanded portfolio of work and successfully manage this team expansion.

FUTURE PLANS

In 2022, ISD will continue to deliver its work internationally with expanded teams in new regional hubs. ISD anticipates the start of many new multi-year grants and projects, particularly in relation to research and the Strong Cities Network. In fundraising, 2022 will see significant expansion of ISD’s work in the United States through its sister organisation, the Institute for Strategic DialogueUS. ISD will also form ISD Jordan (a local branch of ISD UK), and continue to work hand-in-hand with ISD Germany.

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED)

Financial review

The results for the year show that there was net expenditure of £100,960 (2020: net income of £460,380). The total incoming resources for the year were £6,829,100 (2020: £5,648,164).

The charity has been able to achieve its objectives as reserves have been maintained to enable it to do so.

At 31st December 2021, the unrestricted reserves amounted to £235,042 and restricted reserves amounted to £1,435,024.

Reserves Policy

The Trustees closely monitor the level of free reserves available to ensure there is sufficient financial flexibility in place. It is the Trustees’ policy to accumulate reserves for future activities. The free reserves (net of restricted funds) available as at 31st December 2021 were £235,042 (2020: £393,670) - providing in excess of 3 months’ administration costs in the following financial year at projected expenditure levels.

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to support the current level of expenditure and to continue in operational existence for the foreseeable future. The Trustees have, however, recognised that, due to the impact of COVID-19, there has been a significant impact on the activities of the charity. The Trustees are committed to supporting the charity and will continue to evaluate the situation on an ongoing basis and to develop plans for the charity to manage the financial impact going forward.

Going Concern

After making appropriate enquiries and despite the pandemic restrictions, the Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements.

Disclosure of information to auditor

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information.

The Trustees report was approved by the Board of Trustees.

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

Mr Michael Lewis Chair of Trustees Dated: 28 September 2022

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees, who are also the directors of Institute for Strategic Dialogue for the purpose of company law, are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

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

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF INSTITUTE FOR STRATEGIC DIALOGUE

Opinion

We have audited the financial statements of Institute for Strategic Dialogue (the ‘company’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED)

Responsibilities of Trustees

As explained more fully in the statement of Trustees responsibilities, the Trustees, who are also the directors of the company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the 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 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED)

planned and performed in accordance with the ISAs (UK).

The potential effects of inherent limitations are particularly significant in the case of misstatement resulting from fraud because fraud may involve sophisticated and carefully organized schemes designed to conceal it, including deliberate failure to record transactions, collusion or intentional misrepresentations being made to us.

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) INDEPENDENT AUDITOR'S REPORT (CONTINUED)

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Landau Morley LLP 30 September 2022 Chartered Accountants Statutory Auditor 325-327 Oldfield Lane North Greenfor d Middlese x UB6 0FX

Landau Morley LLP is eligible for appointment as auditor of the company by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestrict
ed
Restrict
ed
fund
s
fund
s
202
1
202
1
Notes
£
£
Income and endowments
from:
Charitable activities
3
699,797
6,129,30
3
Other income
4
-
-
Total income
699,797
6,129,30
3
Expenditure
on:
Charitable activities
5
841,646
6,088,41
4
Net
(outgoing)/incoming
resources before
transfers
(141,849)
40,889
Gross transfers between
funds
(16,779)
16,779
Net (expenditure)/income
for the year/
Net movement in funds
(158,628)
57,668
Fund balances at 1
January 2021
393,670
1,377,35
6
Fund balances at 31
December 2021
235,042
1,435,02
4		 Total
Unrestricted
Restrict
ed
funds
fund
s
2021
2020
202
0
£
£
£
6,829,10
0
256,757
5,301,40
6
-
90,001
-
6,829,10
0
346,758
5,301,40
6
6,930,06
0
385,849
4,801,93
5
(100,960)
(39,091)
499,471
-
23,619
(23,619)
(100,960)
(15,472)
475,852
1,771,026
409,142
901,504
1,670,066
393,670
1,377,356		 Tota
l
202
0
£
5,558,16
3
90,001
Charitable activities
3
Other income
4
Total income
Expenditure
on:
Charitable activities
5
Net
(outgoing)/incoming
resources before
transfers
Gross transfers between
funds
Net (expenditure)/income
for the year/
Net movement in funds
Fund balances at 1
January 2021
Fund balances at 31
December 2021
5,648,16
4
5,187,78
4
460,380
-
460,380
1,310,64
6
1,771,02
6

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

the year. All income and expenditure derive from continuing activities.

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

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BALANCE SHEET

AS AT 31 DECEMBER 2021

Note
s
Fixed assets
Tangible assets
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due
within one year
13
Net current assets
Total assets less current
liabilities
Income funds
Restricted funds
14
Unrestricted funds		 202
1
£
1,312,387
864,113
2,176,500
(574,232)		 £
67,798
1,602,26
8
1,670,06
6
1,435,02
4
235,042
1,670,06
6		 202
0
£
836,825
1,332,118
2,168,943
(487,496)		 £
89,579
1,681,44
7
1,771,02
6
1,377,35
6
393,670
1,771,02
6

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

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

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

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

The financial statements were approved by the Trustees on 28 September 2022.

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

Mr Michael Lewis Trustee

Company Registration No. 06581421

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash fows from operating activities
Cash (absorbed by)/generated from
18
operations
Investing activities
Purchase of tangible fxed assets
Proceeds from disposal of tangible fxed
assets
Proceeds from disposal of investments
Net cash used in investing activities
Net cash used in fnancing activities
Net (decrease)/increase in cash
and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 202
1
£
(34,226)
-
~~-~~		 £
(433,779
)
(34,226)
-
(468,005
)
1,332,11
8
864,113		 202
0
£
(10,069)
(21,318)
21,826		 £
453,253
(9,561)
-
443,692
888,426
1,332,11
8

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Charity information

Institute for Strategic Dialogue is a private company limited by guarantee incorporated in England and Wales. The registered office is PO Box 75769, London, SW1P 9ER.The members of the company are the Trustees named on legal and administrative page. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to support the current level of expenditure and to continue in operational existence for the foreseeable future.

The Trustees have, however, recognised that, due to the impact of COVID-19, there has been a significant impact on the activities of the charity.

The Trustees are committed to supporting the charity and will continue to evaluate the situation on an ongoing basis and to develop plans for the charity to manage the financial impact going forward.

1.3 Charitable funds

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

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

Endowment funds are subject to specific conditions by donors that the capital must be maintained by the company.

1.4 Income

Income is recognised when the company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED

Legacies are recognised on receipt or otherwise if the company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

All expenditure is inclusive of irrecoverable VAT.

1.6 Tangible fixed assets

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

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

Leasehold land and buildings 20% straight line method Fixtures and fittings 25% reducing balance method Computer and office eqipment 33.33% straight line method

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

1.7 Impairment of fixed assets

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

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other shortterm liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9 Financial instruments

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

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

1 Accounting policies

(Continued)

Basic financial assets

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

Basic financial liabilities

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

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

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

Derecognition of financial liabilities

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

1.10Employee benefits

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

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2 Critical accounting estimates and judgements

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

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

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

3 Charitable activities

Programmes
Core
Analysis by
fund
Unrestricted
funds
Restricted funds
4
Other income
Government grant/Other income		 2021
£
2020
£
6,129,30
3
5,301,406
699,797
256,757
6,829,10
0
5,558,163
699,797
256,757
~~6,129,30~~
3
~~5,301,406~~
6,829,10
0
5,558,163
Total
Unrestricte
d
funds
2021
£
2020
£
-
90,001		 2021
£
2020
£
6,129,30
3
5,301,406
699,797
256,757
6,829,10
0
5,558,163
699,797
256,757
~~6,129,30~~
3
~~5,301,406~~
6,829,10
0
5,558,163
Total
Unrestricte
d
funds
2021
£
2020
£
-
90,001
£
90,001

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

5 Charitable activities

Wages, salaries and consultants
UK travel and hospitality
Travel costs (staf)
Travel costs (participants)
Occupancy costs and room rental
Outside professional services
Communications and technology
Overhead recovery
Grants and awards to other organisations
Share of support costs (see note 7)
Analysis by fund
Unrestricted funds
Restricted funds		 2021
£
2,269,92
3
14,170
185,091
53,211
27,760
1,716,45
1
51,852
858,988
1,052,02
7
6,229,47
3
700,587
6,930,06
0
841,646
6,088,41
4
6,930,06
0		 2020
£
2,128,50
7
17,511
56,332
15,265
28,912
1,206,72
3
55,622
888,641
425,741
4,823,25
4
364,530
5,187,78
4
385,849
4,801,93
5
5,187,78
4

Direct Costs include the following:

Outside Professional Services: Includes technical and specialist consultants and suppliers such as filmmakers, content producers, educational resource specialists, trainers, researchers and translation services.

Communications and Technology: Includes telecommunications equipment, telephone calls, IT hardware, software, webhosting, social media and digital costs.

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

6 Grants and awards payable

Grants and awards were paid to the following:
ISD Germany
ACT Proact
WANA Institute
Isiolo Peace Link
Isiolo Women of Faith
Midrift Hurinet Limited
Human Rights Agenda
Tarek Menhem
Youth Bila Noma
Democracy Lab
HURIA
CASM Technology LLP
CZO Skopje
Human Security Collective
Hedayah
Hifswerk International
Nakuru County Youth Bunge Forum
Jamji Action Centre
Sponsored Arts for Education (SAFE)
Duckrabbit
Circles - Lebanon Support
Kiunga Youth Bunge
Collaboration of Women in Development
Resource Development Foundation
Pastoralist Women
Other		 2021
£
449,330
43,800
171,334
85,802
7,851
61,833
-
-
29,538
43,968
26,963
22,678
18,717
18,264
11,855
10,096
9,263
7,956
7,438
6,193
-
-
-
727
9,175
9,247
1,052,02
8		 2020
£
-
120,179
80,429
58,006
-
56,191
48,962
25,920
7,711
-
-
-
-
-
-
-
-
-
-
-
7,565
6,961
4,640
4,605
4,572
-
425,741

In respect of the year ended 31 December 2021, of the total grants paid of £1,052,028 (2020: £425,741),

£147,625 (2020: £nil) is attributable to unrestricted funds and £904,402 (2020: £425,741) is attributable to restricted funds.

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

INSTITUTE FOR STRATEGIC
DIALOGUE (A COMPANY LIMITED BY
GUARANTEE)
NOTES TO THE FINANCIAL STATEMENTS
7
Support
costs
Support
costs
£		 2021
£		 2020
£
(CONTINUED)
Staf costs 900,437 900,437 627,433
Loss on disposal of fxed assets 558 558 31,276
UK travel and hospitality 3,234 3,234 2,428
Travel costs (staf) 10,711 10,711
18,513 Travel costs (participants) -
- 241
Occupancy costs and room rental 313,198 313,198 252,490
Outside professional services 162,713 162,713 152,658
Ofce costs and communications 88,461 88,461 63,501
Overhead recovery (858,988) (858,988) (888,641)
Exchange loss/(gain) 24,815 24,815 53,404
Depreciation 55,448 55,448 51,227
700,587 700,587 364,530
Analysed between
Charitable activities 700,587 700,587 364,530

In respect of the year ended 31 December 2021, of the total Exchange loss/(gain) of £24,815 (2020: £53,404), £18,249 (2020: £51,113) is attributable to unrestricted funds and £6,566 (2020: £2,291) is attributable to restricted funds.

Outside professional services costs include £21,000 (2020: £19,750) in respect of auditor's remuneration.

8 Auditor's remuneration

The analysis of auditor's remuneration is as follows:

Audit of the annual accounts
All other non-audit services
Total fees		 2021
£
12,750
8,250
21,000		 2020
£
12,000
7,750
19,750

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the company during the year.

10 Employees

Number of employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs		 2021
Number
48
2021
£
2,861,28
9
218,301
90,770
3,170,36
0		 2020
Number
49
2020
£
2,499,96
6
186,660
69,314
2,755,94
0

Responsibility for day-to-day management matters and the implementation of policy is delegated to the Chief Executive Officer. Remuneration paid to the key management personnel of the charity in 2021 was £167,459 (2020: £137,224).

Of the employees whose emoluments exceed £60,000, 10 have retirement benefits accruing under defined benefit pension schemes, totaling £42,611 (2020: £18,700).

The number of employees whose annual remuneration was £60,000 or more were:

In the band £60,001 - £70,000
In the band £70,001 - £80,000
In the band £100,001 - £110,000
In the band £130,001 - £140,000
In the band £150,001 - £160,000		 2021
Numbe
r
6
2
1
~~-~~
1		 2020
Number
1
1
-
~~1~~
-
11
Tangible fxed assets
Cost
At 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation and impairment
At 1 January 2021
Depreciation charged in the year
Eliminated in respect of disposals
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
12
Debtors
Amounts falling due within one year:
Trade debtors
Other debtors
Prepayments and accrued income		 Leasehol
d
land
and
building
s
Fixtures and
fttings
£
£
39,226
25,479
-
-
-
-
39,226
25,479
13,778
13,728
7,845
2,938
-
-
21,623
16,666
17,603
8,813
25,448
11,751		 Computer
and
ofc
e
eqipme
nt
£
127,805
34,226
(4,132)
157,899
75,425
44,665
(3,573)
116,517
41,382
52,380
2021
£
726,751
78,720
506,916
1,312,387		 Total
£
192,510
34,226
(4,132)
222,604
102,931
55,448
(3,573)
154,806
67,798
89,579
2020
£
560,910
101,047
174,868
836,825
13 Creditors: amounts falling due within one
year
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2021
£
81,241
258,532
36,785
197,674
574,232		 2020
£
104,826
123,549
36,764
222,357
487,496

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

14 Restricted funds

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

Movement in funds Movement in funds Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Transfers Balance at Incoming Resources Transfers Balance at
1 January 2020 resources expended 1 January 2021 resources expended 31
December
2021
£ £ £ £ £ £ £ £ £
Restricted Funds 901,504 5,301,406 (4,801,935) (23,619) 1,377,356 6,129,303 (6,088,414) 16,779 1,435,024

Restricted funds are funds donated to the charity to aid its work as an independent 'think and do tank' for the study and development of policy and operational responses to the challenges of hate, polarisation and extremism.

The transfers from restricted funds to unrestricted funds totaling £16,779 (2020 £23,619) relate to activities and funds that have ceased to meet the conditions required for Institute for Strategic Dialogue to continue to retain these funds in restricted funds.

INSTITUTE FOR STRATEGIC DIALOGUE (A COMPANY LIMITED BY GUARANTEE) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

15 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2021
202
1
£
£
Fund balances at
31
December
2021
are
represented by:
Tangible assets
67,798
-
Current assets/(liabilities)
131,638
1,470,63
0
199,436
1,470,63
0		 Tota
l
Unrestricted
funds
Restricted
funds
202
1
202
0
202
0
£
£
£
67,798
89,579
-
1,602,26
8
304,091
1,377,35
6
1,670,06
6
393,670
1,377,35
6		 Total
202
0
£
89,579
1,681,44
7
1,771,02
6

16 Operating lease commitments

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

Within one year
Between two and fve years		 2021
£
237,823
302,329
540,152		 2020
£
237,823
540,152
777,975

17 Related party transactions

Donations of £60,049 (2020: £71,980) were received during the year from the Trustees and from entities connected with the Trustees.

18
Cash generated from operations
(Defcit)/surplus for the year
Adjustments for:
Loss on disposal of tangible fxed assets
Depreciation and impairment of tangible fxed assets
Movements in working capital:
(Increase) in debtors
Increase in creditors
Cash (absorbed by)/generated from operations		 2021
£
(100,960)
55
8
55,449
(475,562)
86,736
(433,779)		 2020
£
460,380
31,276
51,228
(184,84
9)
95,218
453,253

19 Analysis of changes in net funds The company had no debt during the year.