The Institute of International Monetary Research CHARITABLE INCORPORATED ORGANISATION (C.I.O) UNAUDITED FINANCIAL STATEMENTS For the year end 31 December 2021 Registered charity.. l 155226 Company registration number." CE000630 The Institute of International Monetary Research REFERENCE AND ADMINISTRATION CHAIRMAN OF TRUSTEES Professor Tim Congdon CBE TRUSTEES Professor Terence Kealey Professor Martin Rickells Mrs Venetia Congdon-Johannes Mr Brandon Davies SECRETARY OF TRUSTEES Mrs Venetia Congdon-Johannes PRINCIPAL OFFICE The University of Buckingham Yeomanry House Hunter Street Buckingham MK18 1EG CHARITY REGISTRATION NUMBER 1155226 COMPANY REGISTION NUMBER CE000630 INDEPENDENT EXAMINER Zoe Longstaff-Tyrrell FCA DChA on beha]f of RSM UK Tax and Arxounting Limited Chartered Accountsnts Portland 25 High Street Crawley West Sussex RH10 1BG BANKERS Sanlander UK PIC 2 Triton Square Regent's Place London NW13AN The Institute of International Monetary Research TRUSTEES, REPORT The Trustees present their annual report and financial statements for the year ended 31 December 2021. The financial statements have been prepared in accordan￿ with the accounting policies sel out on page 7 and comply with the charity's governing document, the Charities Act 2011 and Accounting and Reporting by Charities.. Statemenl of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) effective 1 January 2019. Structure and Governance Institute of International Monetary Research is a registered charity {Charity number 11552261 governed by its conslilution, dated 07 January 2014. Objectives The objective oflhe inslitule is to advance the education of the public in general on the workings of modern economies, particularly but not exclusively to increase understandings of the linkages between banks {whi¢h issue money) and the rest of the e¢or)omy. The institute organise research (both written and online) and supports the educational work of The University of Buckingham. Election of Trustees Apart from the first charity Iruslees, every trustee must be appointed by a resolution passed at 8 properly convened meeting of the charity trustees. In selecting individuals for appointment as charity trLJStees, the charity trustees much have regard to the skills, knowledge and experience needed for the effective administration of the CIO. No changes in the Iruslees since the appointment of Brandon Davies in August 2019 (lo replace Tim Sanderson), as detailed in last year's report. Accounts In previous years. the trustees look advantage of the provisions of the SORP which pe￿it the preparation of accounts on a 'receipts and payments, basis. During the ¢LJrrent year, the income in the charity exceeded £250,000 and therefore this provision is no longer available. Based on this, the current year accounts have been prepared on an accruals basis and the prior period has been restated lo present the comparative figures on the same basis. The trustees have agreed lo retain Zoe Longst8ff-Tyrrell of RSM UK Tax and Accounting Limited as Independent Examiner. Review of the period and delivoring a public benefit The trustees confirm that they have referred lo the guidance contained in the Chatily Commission's general guidance on public benefit, when reviewing the fund's aims and objectives and in determining the grant making policy for the period. As in previous years, the Institute continues to develop in accordance wlth the business plan originally outlined to the Charity Commission in late 2013. The Institute is nowwell-established and has carried out a range of activities in accordance with that business plan. Flnanclal Review During the year the charity has income of £258,639 which includes donations of £155,887. All income received is unreslricled. The total costs of the charity were £207,757 resulting in an OV8rall surplus of £50,882. The Institute of International Monetary Research TRUSTEES, REPORT (CONTINUED) The Msc course in 'Money, banking and central banking, al the University of Buckingham introduced in September 2017- is now into ils fifth year. In ils first year the Msc programme was attended by 12 students and in its second there were 10. including two part-time Msc students. After a decline in the numbers on the programme lo only six in 2019120. 2020 had 12 students on the Msc programme and fouron the PG Certificate (online) programme. 2021 saw 14 students on the Msc programme and 8 students on the PG Certificate programme. Surveys of student salisfaGtion suggest that the tuition has been much appreciated and that intellectual stimulus has been provided. Tuition online- for the Msc and the PG Certificate - continued in 2021, even as the threat from Covid-19 diminished. The IIMR online programme 'Money and Banking. An introduction to monelarism, has been introduced alld was well-altended, with 13 sludenls undertaking the programme. The Institute continues its collaboration with the University of Buckingham by offering research internships to its students and recent graduates, as well as joint events with the Vinson Centre. The internship programme is also offered to students from other universities. The Institute has continued to focus ils resources lo the assessment of the economic effects of the Covid-19 crisis. This has resulted in the IIMR'S staff conlribuling very actively to the discussion of the effects of the extraordinary rates of growth of money registered since March 2020. As a result, the Institute's monthly videos and research have secured significant increases in the number of views and quotations in the specialised media. We have received favourable coverage in The Telegraph, the Financi81 Times and other newspapers, and in media online. We continue lo work on our publications agenda as planned in 2019. We printed three Research Papers in 2021. A booklet, with our Annual Public Lecture given by Mervyn King in November 2021, was published in early 2022. The Inslilute's Director started in 2020 a collaboration with the Inslilule of Economic Affairs IIEAI with a termly presentation of the Institute's research agenda, courses and events to the IEA interns. The Institute's website - started in 2015- was further developed in 2020 and 2021 {www.mv- l.or ), with ils management now being entirely in-house. The annually-updated information on money and nominal income trends Inowrelating to 2020 and 2021 data, where available) has beer¢ extended under our World Money Map project, lo cover more than 30 economies and continues to grow. The Institute prepares a monthly update on global monetary trends, as well as a monthly Newsleller, which are now distributed to almost 2,500 e-mail addresses from the UK and abroad, with a very high 'open rate, of around 20% -30¥.. 2021 saw a continued increase in Ihe impact of the Institute's research on the inflationary effects of Covid-19 crisis. In particular. the explosion of money creation in the USA in the fourmonlhs from March 2020 was truly remarkable, leading lo the highest increase in the quantity of money since 1943. The Institute was one of the few institutions that- back in the spring 2020- warned on the medium-lerm inflationary consequences of the rapid money growih. The warnings have been amply vindicated in practice, with the annual rate of consumer inflation in 2022 heading towards 10 /0 in the USA and the UK. The chairman contributed articles lo The Wall Street Journal, The D8ily Telegraph, The Gritic magazine and elsewhere on the topic. The Institute of International Monetary Research TRUSTEES, REPORT (CONTINUED) More generally, the Institute continued lo make an important contribution to Ihe international debate on money growth developments in 2021. The social media accounts of the Inslilule continued to be used regularly to spread the research agenda of the Institute, and to send updates on forthcoming events and the release of new educational videos. Their audience grew further in 2021. The Inslilule's Annual Public Lecture in November 2021 at the Royal Automobile Club in London, with Lord King was attended by 200 people, recorded and listed on ourYouTube channel and as mentioned above a conference paper was produced and dislribuled. Our Annual Monetary Conference was held at the University of Buckingham in December 2021 on 'Will more inflation follow Covid-19? And what does that say about contemporary economics?, The conference was live streamed on Zoom attended by 22 people and also attended by 30 people in house. In addition, the Institute continues to host a webinar series on money and central banking since the spring 2020, with three lo four speakers per term. We are very pleased to report a good number of students from the UK and abroad attended the webinars. The videos with the presentations of the speakers were made available to the public on our website and on our social media accounts and YouTube channel. The Ir¢slitute has now returned - more or less fully- to 'normal' proceedings with regards to its events and meetings since the Covid restrictions have been relaxed. Reserves Pollcy Total unrestricted funds at 31 December 2021 were £156,09512020.' £105.2131. The charity had a Cash balance al Sanlander Bank at 31 December 2021 of £162,137 12020.. £103.4971. Our policy is to hold on short term depo8lt sufficient funds to cover lolal expellditure for one year and our objective is lo ulilise the income in covering overheads. Any shortfalls which may occur will be covered by way of 8 donation from Professor Tim Congdon CBE. Risk Management The trustees have examined the majorstrategic, business and operational risks whlch the charity faces and confirm that they are happy there are systems in place to lessen these risks. Future Developments The trustees have considered the impact ofthe Covid-19 outbreak on theirfuture plans and atthis stage there is no change to the strategy for the charity. Since March 2020 we have implemented numerous procedures to ensure that we can ￿ntinue to work effeclively, whilst remote. The core of our research is still being published and distributed lo our contacts and we are continuing with our collaboration with the University of Buckingham in relation to our Msc programme and future programmes. Our research has been referenced across the wodd throughout and since the pandemic, and has raised our profile in the top policy-making institutions, in universities and in the leading financial centres. Signed on behalf of the trustees Professor Tim Congdon CBE Chairman of Trustees Page 13 INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF THE INSTITUTE OF INTERNATIONAL MONETARY RESEARCH I report to the trustees on my examination of the accounts of The Institute of International Monetary Research {'the char¢ty'l for the year ended 31 December 2021, which are set out on pages 5 to 10. Responsibilities and basis of report As the trustees of the charity, you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 I'the 2011 Acl'l. I report In respect of my examination of the charity's accounts Carried out under section 145 of Ihe 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charily Commission under section 145151{bl of the 2011 Act. An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the accounts. The planning and conduct of an audit goes beyond the limited assurance that an independent examination Can provide. Consequently, l express no opinion as to whether the accounts present a 'true 2nd fair view, and my report is limited to those specifi¢ mallers setout in the independent examiner's statement. 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 l am qualified to undertake the examination, because l am a memberofthe Institute ofchartered Accountants England and Wales, which is one of the listed bodies. I have completed my examination. I confirm that no material matters have come to my allention in connection with the examination giving me reasonable cause to believe that in any material respect.. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Acl-, or the accounts do not accord with those records.. or the accounts do not comply with the applicabl8 requirements concerning the form and content of accounts sel out in the Charities {Accounts and Reports) Regulations 2008 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. I have no concerns and have corne across no other matters in connection with the examination to which attention should be drawn in Ihis report in order to enable a proper understanding of the accounts lo be reached. Zoe Longstaff-Tyrrell FCA DChA The Institute of Chartered Accounlanls in England and Wales ON BEHALF OF RSM UK TAX AND ACCOUNTING LIMITED Chartered Accountants Portland 25 High Street Crawley West Sussex RH10 1BG Date- 26109122 The Institute of International Monetary Research STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2021 Total unrostri¢ted funds 2021 Total unrestricted funds 2020 {as restated) Notes INCOME FROM.. Donations received Other receipts 155,887 102,752 181,833 67,705 TOTAL INCOME 258,639 249,538 EXPENDITURE ON: Charitable activities 207.757 201,894 Nel income and nel movement in funds 50,882 47,644 Reconciliation of funds Total funds brought fo￿ard at 1 January 105,213 57,569 Total funds brought foNard at 31 December 156,095 105,213 The88 unaudit6d financial stalemenls h8V8 bèen subjecloLI lo independent 8x8min&lion. S88 report on pège 4. The Institute of International Monetary Research BALANCE SHEET As at 31 December 2021 Company Registration No. CE000630 Unrestricted General Fund Notes 2021 2020 {as restated) Current assets Other debtors and prepayments 1,038 8,568 Cash al bank 162,137 163,175 103,497 112,065 Current Ilabilities Other creditors and accnjals 17,0801 16,8521 Net assets 156,095 105,213 The Iruslees acknowledge their responsibilities for complying with the requirements of the Charitable Incorporated Organisations (Generall Regulations 2012 and the Charities Act 2011 and the provisions of the trust deed with respect of accounting records and preparation of accounts. The notes on pages 710 10 form part of these accounts and should be read in conjunction Iherewilh. These fi statements were approved and authorised for issue by the trustees on 2022 and signed on their behalf by.. Professor Tim Congdon CBE Trustee These unaudited financial slalemenls have been subjecled to independent &x8min8tion. S88 report on page 4. The Institute of International Monetary Research ACCOUNTING POLICIES & NOTES TO THE ACCOUNTS Accounting pollcles The Trusl is a registered charity (Charity number1155226, registered in England and Wales)wilh its regislered office address being The University of Buckingh8m, Yeomanry House, Hunter Street, Buckingham, MK18 1EG. The charity's objectives and aims are disclosed in the Trustees Report on page 1. Basis of accounting The financial statements have been prepared underthe historical cost convention as modified for the inclusion of investments at market value. The financial statements are prepared in Sterling, which is the functional currency of Ihe charity. Monetary amounts in these fin8nci81 statements are rounded lo the nearest £1. The accounts have been prepared on an accruals basis. In preparing the financial statemer)ts, the charity follows the Charitable Incorporated Organisations (General) Regulations 2012, the Charities Act 2011 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 IFRS 102) effective 1 January 2019. Going concern The trustees have considered whether it is appropriate lo prepare the finan¢i81 statements on the basis that the charity is a going concern. The ¢harity is mainly funded by donations from ProfessorTim Congdon CBE, who has indicated his willingness to continue lo provide support for a period of at least twelve months from approval of the financial statements. On this basis, the trustees believe that the Charity has sufficient funds to continue for al least twelve months from the dale of signing the financial statements and that there are no material uncertainties about the charity's ability to continue as a going concern. Income pollcy Voluntary income including donations and grants are recognised on a accruals basis. Expenses Expenditure is included on an accrual's basis. Expenditure includes allribulable VAT which cannot be recovered. Exponses are allocated to the particular activity where the cost relates direclly to that aclivily. Governan￿ costs comprise of costs for the running of the charity itself as an organisalion. Corporation tax The Institute of International Monetary Research is a registered charity and as such its income and gains falling within Sections 47110 489 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 are exempl from corporation tax lo the exlentthal they are applied to its charitable objectives. Fund accounting The general fund comprises the accumulated surpluses of unreslricled income and expenditure, which are available for use in furtherance of the general objective of the charity- Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors which have been raised by the Institute for particular purposes. The cost of raising and administering such funds are charged against the specific fund. Th8S8 unaudiled financial slalgmerjls hav8 been subiecteLI to independent 8x8min8tAon. S68 report on page 4. Paue 17 The Institute of International Monetary Research ACCOUNTING POLICIES & NOTES TO THE ACCOUNTS Prior period adjustment In previous years, the trustees look advantage of the provisions of the SORP which permit the preparation of accounts on a 'receipts and payments, basis. During the ¢urrenl year, the income in the charity exceeded £250,000 and therefore this provision is no longer available. Based on this, the current year accounts have been prepared on an accruals basis and the prior period has been restated to present the comparative figures on the same basis. The impact on rese￿eS brought forward is an increase of £1,716 as set out below.. Adjustment previously reported restated at 31 Dec 2020 Changes to the statement of financial activities Other receipts Total income 63,068 244,901 4,637 4,637 67,705 249,538 Charitable activities expenditure 204,693 12,799) 201,894 Net income 40,208 7,436 47,644 Total funds brought fonmard al 1 January Total funds brought fO￿ard at 31 De￿rnber 63,289 103,497 (5,720) 1,716 57,569 105,213 Changes to the balance sheet Other debtors and prepayments Other c￿dItorS and accruals 8,568 6,852 8,568 6,852 Nel assels 103,497 1,716 105,213 Other recelpts 2021 2020 {as restated) Msc course fees Gift aid se￿iCe fees Online training programme 50,214 40,042 10,000 2,496 102,752 20,106 22,000 25,000 599 67,705 Charitable activities expenditure 2021 2020 las restated) Research Advertising Events expenses Wages and salaries Interns Support costs 1,200 726 9,122 143,715 843 52,151 207,757 3,102 17,499 1,869 137,249 42,175 201,894 These unaudited financial sl81gm8nts have been subjecled lo int18P8nd8nt 8x8mination. See report on page 4. Page 18 The Institute of International Monetary Research ACCOUNTING POLICIES & NOTES TO THE ACCOUNTS Support costs 2021 2020 las restated) Wages and salaries Staff expenses Office expenditure Governance costs (Xher costs 39,820 3,917 5,085 3,086 243 52,151 34,577 2,030 464 2,940 2,164 42,175 Governance costs 2021 2020 las restated) Fees payable lo the independent examiner for- Accounts preparation Independent examination 1,512 1,574 3,086 1,250 1,690 2,940 Employees The average monthly number of persons employed by the charity during the year was.. 2021 Number 2020 Number Direct staff Support staff Their aggregate remuneration comprised: 2021 2020 {as reslated) Wages and salaries Social security costs Pension costs 162,085 18,206 3,244 183,535 152,642 16,084 3,100 171,826 The number of employees whose annual remuneration, excluding employee p8nsion, was £60,000 or more were.. 2021 Number 2020 Number £60,001- £70,000 £70,001- £80,000 The trustees received no remuneration for their setvices to the charity during the current or previ04Js year. No trustees received reimbursement of expenses during the current or previous year. These unaudiled financi81 stat8ments have been subj8cl8d lo independenl examinalion. See reporl on pège 4. The Institute of International Monetary Research ACCOUNTING POLICIES & NOTES TO THE ACCOUNTS Other debtors and prepayments 2021 2020 {as restated) Other debtors Prepayments 8,568 1,038 1,038 8,568 Other creditors and accruals 2021 2020 las restated) Other creditors Accruals 3,994 3,912 2,940 6,852 7,080 10 Related parties and control relationships The charity is under the control of the five Iruslees (2020.. f1ve), as set out on page 1. During the year, ProfessorT Congdon CBE, Chairman oftruslees, donated £107,500 {2020.' £160,000). Mr T Sanderson, a trustee who resigned on 30 September 2019, donated £nil12020'. £10,000) to the charity. Th8se unaudited linancial s1818m8nls have been subjecled lo ind8p8nd8nt examination. See report on pag8 4.