Charity registration number 1142874
Company registration number 07568122 (England and Wales)
SOCIAL VALUE INTERNATIONAL
COMPANY LIMITED BY GUARANTEE
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE LEGAL AND ADMINISTRATIVE INFORMATION
Trustees
Mr Simon Faivel (Chair) Mr Chiayuan Wu Ms Stephanie Robertson Ms Joanne Nicholson Ms Sara Olsen Ms Catherine Manning Ms Chun Chun Ada Yip Mr Davide Dal Maso Ms Isabelle Parasaram Mr Richard Kennedy Mr Pieter Oostlander Mr Benjamin Jardine Dr Gonca Ongan
(Appointed 26 January 2023) (Appointed 4 October 2023) (Resigned 7 February 2024) (Resigned 7 February 2024) (Appointed 7 February 2024) (Appointed 7 February 2024)
Secretary Mr Ben Carpenter Charity number 1142874 Company number 07568122 Registered office LCVS Building 151 Dale Street Liverpool L2 2AH Independent examiner Anita C Mason BA(Hons) BFP FCA Suite 5.1 12 Tithebarn Street Liverpool L2 2DT Bankers National Westminister Bank plc Charing Cross Branch PO Box 113 Cavell House 2A Charing Cross Road London WC2H 0PD
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE CONTENTS
| Page | |
|---|---|
| Trustees' report | 1 - 8 |
| Statement of trustees' responsibilities | 9 |
| Independent examiner's report | 10 |
| Statement of financial activities | 11 |
| Balance sheet | 12 |
| Notes to the accounts | 13 - 21 |
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2023
The trustees present their annual report and financial statements for the year ended 30 June 2023.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's Memorandum and Articles of Association, 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 2019).
Objectives and activities
About Social Value International
The objects of the Charity are the advancement of education and the promotion of the effectiveness and efficacy of charities, in particular (but not exclusively) by supporting research and best practice into social impact analysis and disseminating the useful results thereof.
Background
On 3 September 2014 a Collaboration Agreement between the boards of directors of SIAA and The SROI Network Limited (a company registered in Scotland SC3C22057) was signed.
The Collaboration Agreement outlined that between 3 September 2014 and the AGM (7 July 2015) SIAA and The SROI Network Limited would merge their international activities to form Social Value International.
Legally SIAA became Social Value International (10 September 2014) and The SROI Network Limited became Social Value Network UK (18 February 2015), one of Social Value International’s affiliated constituted National Member Networks.
Vision
A world where decision making, ways of working and resource allocation are based on the principles of accounting for value leading to increased equality and well-being and reduced environmental degradation.
Mission
To change the way society accounts for value through principles, practice, people and power:
1. Principles : Our principles will lead to the inclusion of social, environmental and economic value in decision making.
2. People : We will build and support a network of like-minded individuals who want to work with us to put these principles into practice.
3. Practice: We will develop guidance, tools, and support to help put the principles into practice.
4. Power: By connecting these individuals and supporting their learning, growth and influence we will build a movement to change the way society accounts for value.
- 1 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2023
The Principles of Social Value
We believe that better decision making, that takes account of the social and environmental value that arises from organisations’ activities and changes in resource flows, will only be possible - at scale - if the way in which that value is accounted for is:
• flexible enough to recognise different sources of value in different contexts; and
• consistent enough to still allow decisions to be made that aim to increase social value.
As a result we support an approach to accounting for value that is based on The Principles of Social Value.
The Principles provide the basic building blocks for anyone who wants to make decisions that take a wider definition of value into account, in order to increase equality, improve wellbeing and increase environmental sustainability. They are generally accepted social accounting principles.
The Principles:
1. Involve stakeholders – Inform what gets measured and how this is measured and valued in an account of social value by involving stakeholders.
2. Understand what changes – Articulate how change is created and evaluate this through evidence gathered, recognising positive and negative changes as well as those that are intended and unintended.
3. Value the things that matter – Making decisions about allocating resources between different options needs to recognise the values of stakeholders. Value refers to the relative importance of different outcomes. It is informed by stakeholders’ preferences.
4. Only include what is material – Determine what information and evidence must be included in the accounts to give a true and fair picture, such that stakeholders can draw reasonable conclusions about impact.
5. Do not over-claim – Only claim the value that activities are responsible for creating.
6. Be transparent – Demonstrate the basis on which the analysis may be considered accurate and honest, and show that it will be reported to and discussed with stakeholders.
7. Verify the result – Ensure appropriate independent assurance.
8. Be responsive – Respond to measurement by making decisions to optimise impacts on wellbeing for all materially affected stakeholders
- 2 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2023
Theory of Change
Social Value International aims to achieve its charitable objects as a membership body and network.
While Social Value International’s focus is on supporting social impact analysts and practitioners as a community of people, the network also supports a wider group of professionals involved in this space.
- 3 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2023
Achievements and performance
1. Annual Conference
The annual Social Value Matters (SVM) conference took place in Torino, Italy in October 2022. The event was delivered in partnership with Social Value Italia. Approximately 100 people attended with speakers and delegates travelling from approximately 15 different countries.
2. Strategy development and fundraising for Social Value International
Social Value International has been working to develop its strategy and explore new sources of funding for the organisation.
Headline achievements
Membership and Networks
-
Members in 60 different countries.
-
Annual membership income for 2022-23 was £26,985
-
Over 50 direct organisational members, approximately 130 direct individuals
-
Combined with the members of SVI’s affiliated networks (known as Joint Member Networks) there is a network of approximately 2,000 people
Developing SVI Standards:
-
Drafted and consulted on a new Standard and Guidance for Principle 8: “Be responsive”. Published in August 2022, https://www.socialvalueint.org/principle-8-be-responsive
-
Drafted and consulted on an updated SVI Glossary published in October 2023, https:// www.socialvalueint.org/glossary-20
-
Drafted and consulted on updated standards for all principles including a new Standard for Principle 6 “Be Transparent” and Principle 7 “Verify the result”.
-
Continued to develop and promote the SVI Professional Pathway. The Level 1 status is now being delivered by multiple Joint Member Networks (New Zealand, Spain, Taiwan, UK, Indonesia and Canada).
-
Accredited 8 new trainers to deliver the SVI Accredited Training.
Campaigning and thought leadership:
-
SVI coordinated a series of webinars to show case best practice case studies of the Principles of Social Value and a series of ‘masterclasses’ on each of the Principles.
-
SVI have continued to respond to important public consultations regarding accounting and sustainability particularly in response to developments in corporate reporting with the International Sustainability Standards Board (ISSB) and Corporate Sustainability Reporting Disclosure (CSRD). All of these responses can be found on the campaign page: Transform Accounting.
-
SVI have written extensively on the concept of materiality and this thought leadership can be found here, https://www.socialvalueint.org/the-materiality-files
-
Convergence and collaboration with other standard setters:
-
SVI formed a partnership with the United Nations Development Programme to launch a train the trainer program. During the year we collaborated on 8 train the trainer cohorts and accredited approximately 55 trainers from 28 different countries.
-
Collaboration with Capitals Coalition continues with SVI sitting on their advisory panel and various SVI representatives participating in the Value Commission.
-
Contributed to the Impact Management Platform’s outputs. See https:// impactmanagementplatform.org/
Project work:
-
Contracted by the United Nations Development Program to develop a training course for Assurance Providers and conduct pilot assurance engagements.
-
Completed a project for International Standards Organisation (ISO) mapping ISO management standards to the International Sustainability Standards Board disclosures.
-
4 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2023
3. Support for existing and emerging National Member Networks.
The development of an affiliation model has enabled Social Value International to articulate a shift in strategy from focusing primarily on delivering international membership to supporting the development of National Networks.
Headline achievements
-
The Membership and Networks Manager facilitates monthly meetings and email updates to coordinators of National Networks and develops partnerships with new and existing Networks.
-
Supporting all networks to promote the delivery of Social Value and SROI two-day practitioner training, assurance and accreditation of practitioners known as the ‘SVI Professional Pathway’.
-
Collaborated with networks to produce a ‘Blueprint for collaboration’ which updates and articulates the services in which networks can collaborate on and the commercial terms.
Financial review
Total income for the year amounted to £253,897 (2022: £257,451) this includes membership income of £26,985 (2022: £34,595). Total expenditure amounted to £240,610 (2022: £289,083). Overall, this has resulted in a surplus for the year of £13,287 (2022: loss of £31,632). This resulted in the available unrestricted funds of £90,371 at the year-end (2022: £77,084).
Reserves policy
Reserves are required to allow for any funding gaps that may arise because of different timing of income and expenditure across the financial period and to cover unpredicted future expenditure, and to allow for possible emergency expenses. The charity is holding £90,371 in unrestricted reserves which is sufficient to cover future liabilities.
Risk management
The Trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error
Environmental Impact
As a result of our commitment to sustainable development, the trustees have included a note (note 18) to the accounts in relation to increasing risks from climate change and recognising how our activities contribute to these risks after mitigation. The trustees are working on a plan to respond to this including establishing appropriate thresholds and targets. SVI’s contribution to other sustainability issues has not been included this year but will be included in future years reporting.
- 5 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2023
Plans for the future
Our plans for the next year focus on developing people and practice by growing and supporting international networks as either affiliates or as national members including:
-
Delivering train the trainer courses to expand and diversify the group of SVI accredited trainers
-
Developing more training opportunities for SVI accredited trainers
-
Implementing the new ‘Blueprint for collaboration’ to support SVI networks grow viable business models including licencing of SVI assurance and accreditation services
-
Continue the strong collaboration with partners such as UNDP and Capitals Coalition to advance our shared objectives
-
Establishing strategic partnerships with other standard setters and institutions that share our mission
-
Developing the practitioner pathway further to provide more opportunities for members to be 'recognised' by SVI
-
Deliver more online events to share best practice
-
Participate in public policy debates on changing financial accounting and other public policies that promote wellbeing and inequality in company reporting and decision making
-
6 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2023
Structure, governance and management
Governing document
The Social Impact Analysts Association (SIAA) was incorporated as a limited liability company (number 07568122) in March 2011 and was registered as a charity in England and Wales (number 1142874) in July 2011. The registered company name was changed on 10 September 2014 to Social Value International.
Social Value International is governed by a Memorandum and Articles of Association (hereafter M&A).
Members of the board of trustees are also the directors of the company and set Social Value International’s overall strategy, yearly budget and have the final say in any hiring decisions.
Trustees have delegated responsibility for the management of Social Value International to an executive team, who report on Social Value International’s activities and financial performance at regular trustee meetings.
Any decision of the trustees must be either by decision of a majority of the trustees present and voting at a quorate trustees’ meeting or when a majority of the trustees indicate to each other by any means that they share a common view on a matter.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mr Simon Faivel (Chair) Mr Richard Kennedy (Resigned 7 February 2024) Mr Pieter Oostlander (Resigned 7 February 2024) Mr Chiayuan Wu Ms Stephanie Robertson Ms Joanne Nicholson Ms Sara Olsen Ms Catherine Manning Ms Chun Chun Ada Yip Mr Davide Dal Maso (Appointed 26 January 2023) Ms Isabelle Parasaram (Appointed 4 October 2023) Benjamin Jardine (Appointed 7 February 2024) Dr Gonca Ongan (Appointed 7 February 2024)
Recruitment and appointment of the board
Social Value International’s Articles of Association state that up to 7 Elected Trustees can be appointed to the board at the AGM and up to 4 Co-opted Trustees will be appointed by the board from time to time. The M&A specify a minimum of two trustees on the board.
Trustees serve for a three-year term and must retire after this period, but shall be eligible for reappointment. Trustees serve for a maximum of 10 consecutive years, following which they must take a break from office and may not be reappointed until the anniversary of the commencement of his or her break from office.
Management and staff
Social Value International was led by a full time Chief Executive with support from a full-time Head of Community & Engagement, a full-time Membership & Projects Coordinator, a part-time Marketing & Events Coordinator and a part-time Finance & Administration Officer.
The Co-Chairs of the board of trustees' line manage the Chief Executive, and together with all the trustees are ultimately responsible for the strategic running and governance of Social Value International.
- 7 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 30 JUNE 2023
How we achieve public benefit
The trustees have given consideration to the Charity Commission’s guidance on public benefit.
As outlined in this report Social Value International has delivered benefit to professionals in the field of social impact measurement and accounting for social value, and therefore in the organisations and communities in which they are operating.
The revised mission and strategic aims for Social Value International demonstrate a continued commitment to supporting charities and a range of other organisations to take into account social and environmental value in their decision making. The beneficiaries of Social Value International are therefore anyone helped or influenced by such organisational activity.
All our activities have done and will continue to contribute to our strategic aims and are for the benefit of the public.
Small companies provisions
This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
The trustees' report was approved by the Board of Trustees.
..............................
Ms Chun Chun Ada Yip
Trustee Dated: ......................... 26 March 2024
- 8 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE STATEMENT OF TRUSTEES' RESPONSIBILITIES
FOR THE YEAR ENDED 30 JUNE 2023
The trustees, who are also the directors of Social Value International for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company Law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.
In preparing these financial statements, the trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 9 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF SOCIAL VALUE INTERNATIONAL
I report to the trustees on my examination of the financial statements of Social Value International (the charity) for the year ended 30 June 2023.
This report is made solely to the charity's trustees, as a body, in accordance with Section 145 of the Charities Act 2011. My examination has been undertaken so that I might state to the charity's trustees those matters I am required to state to them in an Independent Examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for my examination, for this report, or for the opinions I have formed.
Responsibilities and basis of report
As the trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
Independent examiner's statement
Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of ICAEW, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
-
1 accounting records were not kept in respect of the charity as required by section 386 of the 2006 Act; or
-
2 the financial statements do not accord with those records; or
-
3 the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
-
4 the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Anita C Mason BA(Hons) BFP FCA
Suite 5.1 BWM Chartered Accountants 12 Tithebarn Street Liverpool L2 2DT
26 March 2024 Dated: .........................
- 10 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
| Unrestricted | Unrestricted | ||
|---|---|---|---|
| funds | funds | ||
| 2023 | 2022 | ||
| Notes | £ | £ | |
| Income from: | |||
| Donations and legacies | 3 | 168 | 55 |
| Charitable activities | 4 | 226,744 | 222,801 |
| Other trading activities | 5 | 26,985 | 34,595 |
| Total income | 253,897 | 257,451 | |
| Expenditure on: | |||
| Raising funds | 6 | 40,591 | 47,395 |
| Charitable activities | 7 | 200,019 | 241,688 |
| Total expenditure | 240,610 | 289,083 | |
| Net movement in funds | 13,287 | (31,632) | |
| Fund balances at 1 July 2022 | 77,084 | 108,716 | |
| Fund balances at 30 June 2023 | 90,371 | 77,084 |
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.
- 11 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE BALANCE SHEET
AS AT 30 JUNE 2023
| Notes Fixed assets Tangible assets 12 Current assets Debtors 13 Cash at bank and in hand Creditors: amounts falling due within one year 14 Net current assets Total assets less current liabilities Funds of the charity Unrestricted funds |
2023 £ 78,091 90,883 168,974 (79,365) |
£ 762 89,609 90,371 90,371 90,371 |
2022 £ 46,931 52,050 98,981 (23,084) |
£ 1,187 75,897 |
|---|---|---|---|---|
| 77,084 | ||||
| 77,084 | ||||
| 77,084 |
The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 June 2023.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
26 March 2024
The accounts were approved by the Trustees on .........................
.............................. Ms Chun Chun Ada Yip Trustee
Company Registration No. 07568122
- 12 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
1 Accounting policies
Company information
Social Value International is a private company limited by guarantee incorporated in England and Wales. The registered office is LCVS Building, 151 Dale Street, Liverpool, L2 2AH.
1.1 Accounting convention
The financial statements have been prepared in accordance with the charity's Memorandum and Articles of Association, 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 2019). The charity is a Public Benefit Entity as defined by FRS 102.
The financial statements are prepared in sterling, which is the functional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The Charity has taken advantage of the provisions in the SORP for Charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.
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 continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3 Charitable funds
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
1.4 Income
Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid is recognised at the time of the donation.
Membership income is recognised over the period of membership.
1.5 Expenditure
Costs are allocated directly to the activities to which they relate. Costs incurred in support of expenditure on the objects of the charitable company or in raising funds are recognised as support costs. Support costs are allocated between charitable expenditure headings on the basis of the average amount of management time spent on each activity.
Governance costs comprise the costs of the charitable administration and complying with constitutional and statutory requirement aspects of the charity.
- 13 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1 Accounting policies
(Continued)
1.6 Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computers
25% straight line
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 charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure) for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
- 14 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023
1 Accounting policies
(Continued)
1.8 Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.
1.9 Financial instruments
The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.
1.10 Taxation
The charity benefits from various exemptions from taxation afforded by tax legislation and is not liable to corporation tax on income and gains falling within these exemptions.
The charity is not able to recover Value Added Tax. Expenditure is recorded in the accounts inclusive of VAT.
- 15 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023
2 Critical accounting estimates and judgements
In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3 Donations and legacies
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Donations and gifts | 168 | 55 |
| Charitable activities | ||
| Unrestricted | Unrestricted | |
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Training income | 82,955 | 58,154 |
| Services provided | 2,469 | 805 |
| Consultancy | 141,320 | 159,965 |
| Annual conference fee | - | 3,877 |
| 226,744 | 222,801 |
4 Charitable activities
5 Other trading activities
| **Unrestricted ** | Unrestricted | |
|---|---|---|
| funds | funds | |
| 2023 | 2022 | |
| £ | £ | |
| Membership subscriptions and sponsorships which are in substance a payment | ||
| for goods and services | 26,985 | 34,595 |
- 16 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
6 Raising funds
| 7 | Unrestricted Unrestricted funds funds 2023 2022 £ £ Fundraising and publicity Support costs (see note 8) 40,591 47,395 Charitable activities Social and environmental Value Unrestricted funds Unrestricted funds 2023 2022 £ £ Depreciation and impairment 425 411 Consultancy 62,548 67,172 62,973 67,583 Share of support costs (see note 8) 129,839 167,516 Share of governance costs (see note 8) 7,207 6,589 200,019 241,688 |
|---|---|
- 17 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
8 Support costs
| Staff costs Exchange Losses Office costs Communication Independent examination fees Accountancy Legal and professional Bank charges Analysed between Fundraising Charitable activities |
Support costs Governance costs £ £ 102,208 - 298 - 30,017 - 37,907 - - 726 - 2,478 - 831 - 3,172 170,430 7,207 40,591 - 129,839 7,207 170,430 7,207 |
2023Support costs Governance costs £ £ £ 102,208 145,734 - 298 3,050 - 30,017 33,259 - 37,907 32,868 - 726 - 660 2,478 - 2,559 831 - 1,779 3,172 - 1,591 177,637 214,911 6,589 40,591 47,395 - 137,046 167,516 6,589 177,637 214,911 6,589 |
2022 £ 145,734 3,050 33,259 32,868 660 2,559 1,779 1,591 |
|---|---|---|---|
| 221,500 | |||
| 47,395 174,105 |
|||
| 221,500 |
Support costs are recharged between costs of raising funds and social and environmental value activity on the basis 25% / 75 % which is based on time spent by management.
Governance costs are recharged to social and environmental value.
Governance costs includes payments for accountancy services and payroll at a cost of £2,478 (2022: £2,559)
9 Employees
The average monthly number of employees during the year was:
| Administration Wages and salaries Social security costs Other pension costs |
2023 Number 3 2023 £ 90,858 9,192 2,158 102,208 |
2022 Number 5 |
|---|---|---|
| 2022 £ 129,885 12,780 3,068 |
||
| 145,734 |
- 18 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
10 Trustees
None of the trustees (or any persons connected with them) received any remuneration during the year (2022: none), and no trustees were reimbursed expenses (2022: none).
11 Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
12 Tangible fixed assets
| Cost At 1 July 2022 At 30 June 2023 Depreciation and impairment At 1 July 2022 Depreciation charged in the year At 30 June 2023 Carrying amount At 30 June 2023 At 30 June 2022 13 Debtors Amounts falling due within one year: Trade debtors Prepayments and accrued income 14 Creditors: amounts falling due within one year Notes Other taxation and social security Deferred income 15 Trade creditors Other creditors Accruals |
Computers £ 1,699 1,699 512 425 937 762 1,187 2023 2022 £ £ 72,523 41,072 5,568 5,859 78,091 46,931 2023 2022 £ £ 1,823 3,783 21,000 8,735 14,482 7,926 39,034 - 3,026 2,640 79,365 23,084 |
Computers £ 1,699 1,699 512 425 937 762 1,187 2023 2022 £ £ 72,523 41,072 5,568 5,859 78,091 46,931 2023 2022 £ £ 1,823 3,783 21,000 8,735 14,482 7,926 39,034 - 3,026 2,640 79,365 23,084 |
|---|---|---|
| 1,699 | ||
| 512 425 |
||
| 937 | ||
| 762 | ||
| 1,187 | ||
| 2022 £ 41,072 5,859 |
||
| 46,931 | ||
| 2022 £ 3,783 8,735 7,926 - 2,640 |
||
| 23,084 |
- 19 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
| 15 Deferred income Other deferred income Total deferred income at 1 July 2022 Amounts received in the year Amounts credited to statement of financial activities Total deferred income at 30 June 2023 16 Financial instruments Carrying amount of financial assets Debt instruments measured at amortised cost Carrying amount of financial liabilities Measured at amortised cost |
2023 £ 21,000 8,735 21,000 8,735 21,000 2023 £ 163,406 56,542 |
2022 £ 8,735 |
|---|---|---|
| 32,249 8,735 32,249 |
||
| 8,735 | ||
| 2022 £ 93,122 |
||
| 10,566 |
- 20 -
SOCIAL VALUE INTERNATIONAL COMPANY LIMITED BY GUARANTEE NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 30 JUNE 2023
17 Related party transactions
The trustees are also the key management of the charity and are not remunerated for this role (see note 10).
18 Carbon Emissions
As referenced in the Trustees Report, under UK company law Directors must not approve the financial statements unless they are satisfied that they give a true and fair view and to that end the Trustees wish to clarify that the calculated profit for the year does not include the cost of our continued contribution to climate change (via our use of carbon). Our estimated carbon emissions at scope 1, 2 and 3 are based on the UK government methodology for ‘homeworking emissions’ (DEFRA calculations of 0.33378 kgCO2e per hr) and a methodology for estimating emissions from Sustainable Travel International (sustainabletravel.org). SVI generated 9.09t/co2e. Using the Government’s Valuation of Greenhouse Gas Emissions for Policy Appraisal and Evaluation quoted cost of carbon for 2023 of £126 per ton for low series, SVI’s financial impact of carbon use is £1,091 on this basis. The amount is not accounted for in these financial statements in any way.
- 21 -