DocuSign Envelope ID: 5A8641D9-5733-41D3-8961-C5BA965CAC62
# **THE CHARTERED CERTIFIED ACCOUNTANTS' BENEVOLENT FUND (LIMITED BY GUARANTEE)**
**REPORT AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2022**
**(COMPANY NUMBER 08880293) (REGISTERED CHARITY NUMBER 1156341) (OSCR SC045337)**
DocuSign Envelope ID: 5A8641D9-5733-41D3-8961-C5BA965CAC62
## **CHARTERED CERTIFIED ACCOUNTANTS' BENEVOLENT FUND**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **CONTENTS**
||Page|
|---|---|
|Report of the Trustees|2-9|
|Statement of financial activities|10|
|Balance sheet|11|
|Statement of cash flows|12|
|Notes to the financial statements|13-21|
|Independent auditor’s report|22-25|
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DocuSign Envelope ID: 5A8641D9-5733-41D3-8961-C5BA965CAC62
## **REPORT OF THE TRUSTEES OF THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND FOR THE YEAR ENDED 31 MARCH 2022**
The Trustees present their annual report and financial statements of the charity (the Fund) for the year ended 31 March 2022. The financial statements have been prepared in accordance with the accounting policies set out in note 2 to the financial statements and comply with the Fund’s governing document, the Charities Act 2011, the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the 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 published in October 2019 (effective 1 January 2019) (Charities SORP (FRS102)).
## **Objectives and activities**
The principal objective of the Fund is to raise and maintain a fund for the purpose of assisting persons in need who are, or have been, members of the Association of Chartered Certified Accountants (ACCA) and their families and dependants. The Trustees are also empowered to assist other charitable institutions as they see fit. The principal policy adopted by the Trustees to further the objectives of the Fund has been, and continues to be, to make timely grants and/or loans to members and their families who face hardship or need at any time. These loans are normally secured, and interest is linked to bank base rate.
The Fund carries out activities previously undertaken by the unincorporated trust (The Chartered Certified Accountants’ Benevolent Fund 222595), the majority of whose assets and liabilities have been transferred to the Fund following a resolution to transfer assets and liabilities effective from 31 December 2014. During the year the Fund received £449 from the unincorporated trust.
The Fund employs no staff. Its staff and administration, including routine legal advice, is provided by ACCA. The Trustees also devote time to the Fund's affairs at meetings, travel to and from meetings and have communications between meetings for which they receive no remuneration. The Fund is also supported by ACCA members and ACCA staff who may, as volunteers, visit applicants and beneficiaries from time to time when requested by the Fund. The Fund is not otherwise dependent on the services of volunteers or donations in kind.
The Fund’s unrestricted funds include two designated funds: A Loan Fund and a Disaster Fund. The former is equal to the total amount of loans to beneficiaries and recognises the fact that these amounts are not available for the Fund’s day-to-day operations. The latter is used to provide emergency assistance to members and their families who have been affected by a disaster, most recently relating to Covid-19 worldwide and hurricanes in the Caribbean, and will be added to annually at a rate agreed by the Trustees (currently 5% of the Fund’s income excluding support cost donations) up to a cap of £250,000.
## **Covid-19 impact and going concern**
The Covid-19 pandemic has had a significant impact on the operations of all entities globally and in particular on the activities of charities. The Trustees have assessed that impact and considered the following potential impacts:
- Increase of applications from ACCA members and their families
- Fall/increase in donations from ACCA members
- Lower levels of investment income due to interest rate reductions and falling stock markets
The Trustees review a rolling 15-year financial plan annually and have revisited this to consider impacts from the above. The Plan has always been very prudent with regards to grants relating to any pandemic such as AIDS and now Covid-19. Many members have asked ACCA about the payment of membership subscriptions although this is not relevant to the Fund as the Trustees have a policy not to pay for these. The review concluded that the Fund will still have excesses of surpluses over expenditure until 2024 and therefore the Trustees are satisfied that the financial statements can be prepared on a going concern basis.
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## **REPORT OF THE TRUSTEES OF THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND FOR THE YEAR ENDED 31 MARCH 2022**
## **Financial review**
The Fund is currently able to finance its activities from donations, legacies and the income from its investment portfolio which provide funds to meet anticipated needs in the short term.
The financial statements for the year and related notes are shown on pages 10 to 21. The Statement of Financial Activities on page 10 shows the incoming resources available to the Fund and the extent to which these resources have been applied. This, together with the Balance Sheet on page 11, shows the total assets of the Fund to be £5,212,506 (2021: £4,966,096), which will generate income to meet its future obligations. The Fund held £238,288 (2021: £311,151) in bank balances and short-term deposits and in the opinion of the Trustees the Fund continues to be in a position to pursue its charitable activities for the foreseeable future. Governance costs for the current year include legal costs relating to the discharge of the security on a loan and professional fees payable to the Financial Conduct Authority (FCA) so that the Fund has the permission to administer secured loans.
The Trustees are grateful to all who have contributed in any way to the work of the Fund during the year ended 31 March 2022. In particular, it expresses thanks to those who made a financial contribution and those who gave of their time, including those UK taxpayers who have completed Gift Aid declarations which allow the Fund to reclaim basic rate tax paid on these donations. Total donations from members including tax on Gift Aid donations amounted to £42,654 (year ended 31 March 2021: £55,929). The Gift Aid method of giving is very tax efficient and the Trustees encourage UK taxpayers to consider completing Gift Aid declarations if they have not already done so. The Trustees also encourage donors to gift shares directly to the Fund in order to gain the tax benefits available both to the Fund and the donor as well as leaving legacies to the Fund.
The Trustees appreciate any help members can give in ensuring that the Fund can provide support to all those who have reason to ask for it. From the grateful letters the Trustees receive, they can assure members that the assistance the Fund provides is highly appreciated. Please help the Trustees to ensure that they can continue to fulfil the objectives of the Fund.
## **Investment policy and performance**
The Trustees have considered the most appropriate policy for investing funds and have delegated the management of its investments to Charles Stanley & Co. Ltd. The Trustees consider that it is appropriate to invest directly in particular investments as well as some common investment funds designed for the charity sector. The Fund’s overall investment aim is to increase the value of its investment portfolio on a total returns basis in the longer term. The Fund invests the designated emergency fund and a proportion of its other unrestricted reserves in cash and short-term deposits that can be readily accessed so that the Fund can react quickly to particular emergencies and other urgent needs for support.
The performance of the investments are outlined as follows. The total return on capital investments for the year was 7.25% (2021: 25.5%) against the benchmarks (MSCI MWA Private Inv Balanced) of 7.8%, (FTSE 100) 16.1%, (FTSE All-share GBP) 13.0% and the new bespoke benchmark of 11.6% (2021: 22.0%, 21.9%, 26.7% and 38.2%). The total income return on investments for the year was 2.9% (2021: 32.5%). As performance for the year was behind the benchmarks the trustees were disappointed with the performance but recognised that the investments continued to be impacted by the volatility in the stock markets during the year in particular towards the end of the year when the Russia/Ukraine conflict started.
The Trustees consider the asset allocation strategy regularly and formally review the investment strategy every three years. As part of good governance, the Trustees review the investment management services every five years and Charles Stanley were reappointed in September 2020 following a tender exercise. The Trustees subsequently reviewed the investment strategy and considered the charity’s Statement of Investment Principles as part of this review. The Trustees agreed to change the asset allocation strategy so as to allow Charles Stanley more flexibility when selecting investments and to allow them to invest within the constraints of a medium-high risk investment portfolio. The Trustees meet with the investment manager once or twice a year to discuss performance and global trends etc. During the year the Trustees received information about their responsibilities in relation to ESG (Environmental, Social and Governance) investing. Charles Stanley advised that they integrate ESG practices into their investment analysis, advice and decisions. The Trustees were pleased to note that the Fund’s investment portfolio has been assessed as AA which classes the portfolio as a ‘leader’ and have requested that Charles Stanley maintain that assessment when managing the portfolio.
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## **REPORT OF THE TRUSTEES OF THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND FOR THE YEAR ENDED 31 MARCH 2022**
## **Investment policy and performance (continued)**
The short-term deposits are held for between 6 months and 1 year and are not usually held in excess of the Financial Services Compensation Scheme limit. During the year interest rates on the deposits ranged between 0.47% and 1.3%. At the year-end the Fund had 6 deposits (2021: 6) in place.
As ACCA has almost 241,000 members in different sectors in 180 different countries throughout the world, the Trustees believe it would not be possible to impose social, environmental or other ethical limits on its investment policy that would be in the best interests of all ACCA’s members.
## **Reserves policy**
The Trustees aim to maintain unrestricted funds at a level which equates to a minimum of at least three years’ expenditure and which will meet anticipated demands for assistance as and when they arise as well as special demands in times of emergency such as the Indian floods, hurricanes in the Caribbean and the Bahamas and more recently Covid-19. ACCA has almost 241,000 members in 180 countries and the reserves policy reflects the uncertainties that this brings.
The Trustees assess the reserves to be retained in the context of its long-term strategic projections. These estimate anticipated growth in membership numbers and take account of demographic changes that anticipate increases in the number of retired members, and the likely effects of pandemics such as AIDS and more recently Covid-19, on members and their families. The Trustees have prepared a 15-year projection, which is updated annually, which indicates that, while the Fund is likely to be able to increase its reserves in the short to medium term, the growth in total demand will mean that, from 2025, the Fund's expenditure will exceed its income and it will be necessary to apply its reserves to meet these needs. This shortfall is expected to increase in subsequent years.
The Trustees accept that they could not allow the period during which expenditure exceeds income to deplete unrestricted reserves entirely, but they believe that there is sufficient time to review the actual situation before any action needs to be taken. Therefore, the policy is to continue building up reserves by means of annual surpluses and careful management of the investment assets. The Trustees believe that the Fund should take a long-term view of reserves. It has been supporting ACCA members and their families for more than a century and hopes to continue to do so for many years to come. The Trustees monitor and review the level of reserves regularly and consider the current level of £5,212,506 (2021: £4,966,096) to be more than adequate to meet the costs of operating the Fund for a considerable period of time in the event of an unforeseen decline in donations. This also takes into consideration the current demographic trend of people living longer.
The Trustees therefore consider that the charity’s unrestricted reserves are adequate to meet current levels of demand but that it is necessary to take a long-term view to increase these over the next 10 years so that they can continue to relieve distress even after demands on its resources have outstripped its income.
The Trustees have also designated some of the unrestricted funds as a Disaster Fund for use in case of a national or international disaster, whether the result of forces of nature, terrorism or war, which affects a significant number of members. This is shown separately in the financial statements. The Trustees have put a cap on the Disaster Fund at £250,000.
All ACCA members are contacted annually about the availability of the Fund; ACCA offices worldwide receive updates of the Fund’s activities and policies and there is a link to the Fund’s website from the main ACCA website. After the volcano eruption in St Vincent in early 2021, with ACCA’s assistance the Fund contacted all ACCA members who were located on the islands most seriously impacted by the eruption to make them aware of the Benevolent Fund and the process if they required any assistance. When India experienced a serious second spike of Covid-19 infections in April and May, all local members were contacted and told about the availability of the Fund.
Despite all these active channels of communication, the Fund still finds it challenging to attract a sufficient number of applicants demonstrating real hardship and, as a consequence, the financial support it is able to give remains limited. The Trustees continue to consider how the work of the Fund could be more widely recognised by developing new publicity and communication strategies. As part of this, a new website for the Fund is being developed and the Fund continues to liaise and work with other benevolent funds.
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## **REPORT OF THE TRUSTEES OF THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND FOR THE YEAR ENDED 31 MARCH 2022**
## **Risk management**
The Trustees examine and review quarterly the major strategic, business and operational risks which the Fund faces and confirms that systems are established so that the risks may be effectively monitored, and their impact mitigated as far as possible.
The Trustees consider variability of the investment returns on the investment portfolio to constitute the charity’s major financial risk and recent volatility in the world stock markets has demonstrated this risk. This is mitigated by retaining expert investment managers and having a diversified investment portfolio. The Trustees manage the investment portfolio on a total returns basis. The Trustees consider a total returns basis will stabilise the resources available for grant-making and allow them to take account of the longerterm outlooks for investment returns.
## **Public benefit**
The Trustees have noted the Charity Commission public benefit guidance. The Fund’s principal charitable purpose is to give to those past and present members of ACCA and their families and dependants, who are in need, by reason of age, ill-health, disability, financial hardship or another disadvantage. The Fund assists its beneficiaries by awarding grants or loans of money, the provision of specific items, the payment of services and relevant advice and support. The impact of the Fund goes far beyond those people we assist directly. By helping an individual at a difficult time, we also help their family and close friends. The Trustees are of the view that the Fund meets the public benefit requirement by relieving members and their families and dependants of financial hardship.
## **Achievements and performance**
During the year, the Fund agreed to pay grants, ranging from £450 to £15,885 (2021: £150 to £7,500), to 60 (2021: 22) beneficiaries and offered relevant advice and support. The grants amounted to £84,053 (2021: £34,763) and included 31 grants of £500 each paid to Indian members and their families who had been severely impacted by the second wave of Covid-19 in their country. The total also includes commitments to 12 (2021: 13) beneficiaries for grants, payable after the year-end, amounting to £18,228 (2021: £33,567). Under SORP 2019 these commitments are included in the financial statements as creditors.
The Trustees were pleased to note that the total value of grants awarded and the number of beneficiaries had both increased from the previous year. Much of the increase related to the introduction of a fast-track application process to help members and their families affected by disasters such as the volcano eruption in St Vincent and Covid-19 in India. The Trustees had expected more Covid-19 related applications but the ACCA membership in general appears to have been quite resilient in dealing with it. Efforts have been made to increase the number of applications as it is evident that global economic conditions continue to be difficult especially with inflationary pressures and that some beneficiaries have greater needs. Although the Fund continues to receive a number of debt-related applications, the Trustees do not normally assist in these cases if the applicant’s position appears to be unsustainable in the longer-term. If the Trustees believe the applicant has no realistic alternative to an arrangement with their creditors, or bankruptcy, they will reluctantly decide that temporary financial assistance would do no more than delay the inevitable. In addition, the Fund will not usually provide funds for new business start-ups or ACCA membership fees.
The Fund aims to providing training to the Trustees as required, either on a group or individual basis. Following the last group training in 2019, an action plan was established to implement all the recommendations. Progress made in implementing those actions has continued after some inactivity due to Covid-19. The Trustees are provided with the _Governance & Leadership_ magazine and get access to online newsletters and updates on charity matters and investments. Trustees also attend appropriate courses on an ongoing basis.
In order to promote the Fund further, the Trustees continue to review its communication strategies, improve its profile on the website and embark on a number of proactive publicity opportunities where possible. The Fund also worked with ACCA’s Communications team and is looking at ways to utilise social media to promote the Fund as much as possible. The Trustees also strive to maintain close contacts with ACCA’s branches and offices overseas and have been looking at ways of providing support services to ACCA’s members with third parties who run professional helplines and digital service delivery for charities and public sector organisations. This is in the early stages, but the Trustees are confident that this type of support service can be of benefit to beneficiaries.
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## **REPORT OF THE TRUSTEES OF THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND FOR THE YEAR ENDED 31 MARCH 2022**
## **Grant making policy**
The Fund exists to help members and their dependants - both financially and with appropriate advice. The Trustees invite applications for support from all ACCA members, former members and their dependants. All applications are treated sympathetically and considered on their merits. Assistance may take the form of one-off grants to help in the short-term, regular ongoing grants or a loan which would normally be secured on the applicant’s property. All grants are approved by the Trustees and are reviewed annually.
If an applicant is impacted by a natural disaster, then there is a fast-track process for dealing with applications.
The Trustees ask that ACCA members advise the Secretary of the Fund of any potential beneficiaries they believe to be in need but who may be reluctant to approach the Fund directly. The Trustees are concerned about the lack of awareness of the Fund to the membership, although they try to contact all potential beneficiaries through a variety of media.
The Trustees review the guidelines for granting assistance annually. Details of how to apply for grants and other assistance, together with the relevant forms, are available from the Secretary and the ACCA website at http://www.accaglobal.com/gb/en/member/membership/benevolent-fund
## **Plans for the future**
The Fund is now fully operational as the main charity following the transfer of the majority of the assets and liabilities from the charity established by Trust Deed. The charity established by Trust Deed will continue to operate until such time that the Trustees are satisfied that all the assets and liabilities have been transferred to the charitable company. Only at that time will the Trustees consider the dissolution of the charity established by Trust Deed.
The Trustees will continue to maintain their efforts to attract applications for assistance from ACCA members and to treat these with courtesy and concern, making every possible effort to ensure that support is offered in all appropriate cases.
In particular, the Trustees will continue to promote the Benevolent Fund across the world to try and reach all members. This will be done with features in _Accounting and Business_ , the Fund’s website, using members’ networks, national offices and collaborating with other Benevolent Funds. Since the year-end the Fund has worked with ACCA to highlight awareness of the Fund to members impacted by the re-emergence of the Taliban in Afghanistan. The Trustees also wish to develop the relationship with Connect Assist so that they can provide relevant support services to the Fund’s beneficiaries. The Fund is also investigating the development of an online application form.
## **Fundraising**
Income for the Benevolent Fund is largely from the following sources:
- Regular donations from ACCA members
- Gift aid
- Return on investments
- Legacies
Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. Although the Benevolent Fund does not undertake widespread fundraising from the general public, the legislation defines fund raising as 'soliciting or otherwise procuring money or other property for charitable purposes. Such amounts are presented in our accounts as 'Donations and legacies'. In relation to the above the Trustees confirm that the Fund does not outsource fundraising to external organisations and although it is not required to do so, the Fund has registered with the Fundraising Regulator. The dayto-day management of all income generation is delegated to the Secretary, who is accountable to the Trustees. The Fund is not bound by any undertaking to be bound to any regulatory scheme and the Trustees do not consider it necessary to comply with any voluntary code of practice. No complaints have been received in relation to fundraising activities. The charity has no other fundraising requiring disclosure under S162A of the Charities Act 2011.
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## **REPORT OF THE TRUSTEES OF THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND FOR THE YEAR ENDED 31 MARCH 2022**
## **Secured lending and the Financial Conduct Authority**
In 2015 the Fund was authorised by the Financial Conduct Authority (FCA) to enable it to administer secured loans and charge nominal interest rates on those loans. The Trustees were keen to ensure that the charity was able to support its beneficiaries by providing low-interest lending secured on the borrower’s property. While the Trustees believe the Fund does not act by the way of business and would therefore perhaps not require registration with the FCA, professional advice was received which recommended that the Fund continue to be regulated with the FCA despite the administrative burden.
## **Structure, governance and management**
The Chartered Certified Accountants’ Benevolent Fund is a company limited by guarantee following incorporation on 6 February 2014, registration number 08880293. It was also registered as a charity with the Charity Commission for England and Wales on 25 March 2014, registration number 1156341, and with OSCR in Scotland on 9 January 2015, registration number SC045337. The company is governed by its Memorandum and Articles of Association. The company is limited by guarantee and therefore has no share capital.
The governing body is the Board of Directors which consists of no less than five and no more than fifteen Trustees. The directors (who are also Trustees of the charity for the purposes of charity law) are listed on page 8.
The Articles of Association provide for one third of the Trustees to be due for re-appointment in any one year. At every Annual Retirement Meeting one third, or the number nearest to one third of the Trustees, being those who have been longest in office since their last appointment or reappointment, must retire from office. Where more than one third of the Trustees have served for the same period of time since their last appointment or reappointment those Trustees shall agree amongst themselves which Trustees shall retire, or in the event that agreement cannot be reached, the decision shall be made by lot.
The Trustees met four times in the year. Due to the continued Covid-19 restrictions, all but one of these meetings were held virtually. At each meeting they considered applications from potential beneficiaries and reviewed the financial position of the Fund. A strategy meeting is held annually at which the Trustees agree the broad strategy and activities of the Fund including consistency of grant-making, investments, reserves and risk management policies and performance. The day-to-day administration of grants and the processing and handling of applications prior to consideration by the Trustees is delegated to the Secretary and the administrator.
New Trustees are identified from the relevant skillsets and may be appointed from outwith ACCA members. The new Trustees will be appointed by the current Trustees and serve for a period of time after which they may put themselves forward for re-appointment. During the year the Trustees appointed three new Trustees to the Board following a trustee recruitment campaign.
The Trustees have updated the New Trustee Induction pack which is given to new Trustees. The pack includes a copy of the Memorandum and Articles of Association of the company, a brief history of the company, the last three years’ annual reports of the Fund and of the unincorporated charity, recent minutes, a copy of the Charity Commission guidance ‘The Essential Trustee: What you need to know’ and a copy of the most recent management financial statements, strategy and 15-year rolling plan.
The Fund is a member of the Association of Charitable Organisations (ACO). The ACO provides much helpful information on good practice, changes in the law affecting charities and acts as a voice lobbying on behalf of the benevolent sector charities with the Government and Regulators.
## **Governance Code**
The Charity Governance Code was introduced in July 2017. The code is not statutory regulation but "represents a standard of good governance practice to which all charities should aspire". The code requests that charities either apply the standards of the code or explain how they are going to apply them in the future. The Trustees regularly review the code to ensure that they continue to meet the required standards and build on efforts to improve.
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## **REPORT OF THE TRUSTEES OF THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND FOR THE YEAR ENDED 31 MARCH 2022**
## **Key management personnel remuneration**
The Trustees consider the Board of Directors and the Secretary as comprising the key management personnel of the charity in charge of directing and controlling the charity on a day-to-day basis. All Trustees give of their time freely and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are included in notes 8, 17 and 18 to the accounts.
Trustees are required at the start of each meeting and all other relevant times to disclose personal interests and register them with the Secretary and in accordance with the Fund’s policy withdraw from decisions where a conflict of interest arises. The services of the Secretary are donated by ACCA.
## **Reference and administrative information**
## _Trustees_
Mrs J Cole (Chair) Mr J M Beckerlegge Dr M J M Briston Mrs S Burd Mr A O Dowsett Mr P D Finch Mr A E P Laure Mr P A Marchant Mr A Sandison (resigned 9 March 2022) Mrs A E Taylor (resigned 3 September 2021) Mr A G Thorne (appointed 15 December 2021)
During the year, Dr M J M Briston, Mrs S Burd and Mr A Sandison retired as Trustees under the terms of the Memorandum and Articles of Association. All three retiring trustees were subsequently re-elected as Trustees for a further year. Mr Sandison subsequently resigned on 9 March 2022.
## _Honorary Secretary_
Mr H McCash
## _Principal Office_
The Adelphi, 1-11 John Adam Street, London, WC2N 6AU
## _Auditor_
Grant Thornton UK LLP, 103 Colmore Row, Birmingham, B3 3AG
## _Principal Banker_
Metro Bank plc, One Southampton Row, London, WC1B 5HA
## _Solicitors_
Bates Wells & Braithwaite London LLP, 10 Queen Street Place, London, EC4R 1BE Wilsons Solicitors LLP, Alexandra House, St Johns Street, Salisbury, Wiltshire, SP1 2SB
## _Investment Manager_
Charles Stanley & Co. Limited, 55 Bishopsgate, London, EC2N 3AS
## **General Data Protection Regulation (GDPR)**
New data protection processes and policies were introduced in 2018 in order for the organisation to be compliant with GDPR. The Fund has a data sharing agreement with the ACCA that has been updated in line with the new code and our privacy statements have been updated and are available online.
## **Safeguarding policy**
The Fund has implemented a Safeguarding Policy and operates a robust safeguarding procedure to provide volunteers with overarching principles that guide its approach. These are reviewed regularly. All of our volunteers who work with people requesting help are aware of their safeguarding responsibilities.
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## **REPORT OF THE TRUSTEES OF THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND FOR THE YEAR ENDED 31 MARCH 2022**
## **Trustees’ responsibilities statement**
The Trustees (who are also directors of the Chartered Certified Accountants’ Benevolent Fund for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Fund and of the incoming resources and application of resources, including the income and expenditure, of the Fund for that period.
In preparing the financial statements the Trustees are required to
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the applicable Charities SORP (FRS 102);
- make judgements and accounting 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 correctly 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 are sufficient to show and explain the Fund’s transactions which disclose with reasonable accuracy at any time the financial position of the Fund and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Memorandum and Articles of Association. The Trustees are also responsible for safeguarding the assets of the Fund and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees confirm that:
- so far as each trustee is aware, there is no relevant audit information of which the Fund’s auditor is unaware; and
- the Trustees have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the Fund’s auditor is aware of that information.
The Trustees are responsible for the oversight and integrity of the corporate and financial information included on the Fund’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
## **Auditor**
The Trustees have taken all the steps that they ought to have taken to make themselves aware of any information needed by the Fund’s auditor for the purposes of their audit and to establish that the auditor is aware of that information. The Trustees are not aware of any relevant audit information of which the auditor is unaware.
Grant Thornton UK LLP has expressed their willingness to continue in office. The Fund is most grateful for Grant Thornton UK LLP’s support and a resolution to re-appoint them will be proposed in accordance with section 485 of the Companies Act at the annual general meeting.
## **Jacqueline Cole** , _Chairman_
7 December 2022
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## **THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022**
|||**Total funds**|Total funds|
|---|---|---|---|
|||**Year ended**|Year ended|
|||**31 March**|31 March|
|_Notes_||**2022**|2021|
|||**£**|£|
||**Income**|||
|3|Transfer in from The Chartered Certified|||
||Accountants’ Benevolent Fund (unincorporated charity)|**449**|238|
|4|Donations|**71,745**|75,131|
||Legacies|**------**|8,033|
|5|Investment income|**116,255**|91,601|
|||**---------------------------**|---------------------------|
||**Total income**|**188,449**|175,003|
|||**---------------------------**|---------------------------|
||**Expenditure**|||
|6|_Expenditure on raising funds_|||
||Investment management costs|**25,041**|21,507|
|7,8|_Expenditure on charitable activities_|**118,503**|59,716|
|||**---------------------------**|--------------------------|
||**Total expenditure**|**143,544**|81,223|
|||**---------------------------**|--------------------------|
||**Net income excluding investment gains**|**44,905**|93,780|
|10|Net gains on investments|**201,505**|735,313|
|||**--------------------------**|---------------------------|
||**Net income and net movement in funds**|**246,410**|829,093|
||**Reconciliation of funds**|||
||Total funds brought forward at 1 April|**4,966,096**|4,137,003|
|||**----------------------------**|----------------------------|
||**Total funds carried forward at 31 March**|**5,212,506**|4,966,096|
|||**==================**|=================|
All amounts relate to continuing activities and to unrestricted funds.
_The accompanying notes on pages 13 to 21 form part of these financial statements._
10
DocuSign Envelope ID: 5A8641D9-5733-41D3-8961-C5BA965CAC62
## **THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND BALANCE SHEET AS AT 31 MARCH 2022 COMPANY NUMBER 08880293**
||||**31 March**|31 March|
|---|---|---|---|---|
||||**2022**|2021|
|||**£**|**£**|£|
|_Notes_|||||
||**Fixed assets**||||
|10|Investments||**4,110,384**|3,778,861|
|||||--------------------------------|
||**Current assets**||||
|11|Loans|**199,704**||205,705|
|12|Amounts due from related parties|**108,099**||96,044|
||Tax recoverable|**15,364**||16,530|
||Prepayments and accrued income|**2,140**||3,456|
|13|Short-term investments|**604,047**||596,672|
||Cash at bank and in hand|**238,288**||311,151|
|||**---------------------------------**||--**-----------------------**-|
|||**1,167,642**||1,229,558|
|14|**Creditors:**amounts falling due within one year|**65,520**||42,323|
|||**---------------------------------**||--**-----------------------**-|
||**Net current assets**||**1,102,122**|1,187,235|
||||**--------------------------------------**|-----------------------------------|
||**Total assets less current liabilities**||**5,212,506**|4,966,096|
||||**==================**|=================|
||**Funds**||||
|16|**Unrestricted funds**||||
||Designated funds||**290,694**|309,063|
||General funds||**4,921,812**|4,657,033|
||||**--------------------------------------**|----------------------------------|
||**Total funds**||**5,212,506**|4,966,096|
||||**==================**|=================|
The financial statements were approved by the Trustees on 7 December 2022 and signed on their behalf by:
## **Jacqueline Cole** , _Chairman_
_The accompanying notes on pages 13 to 21 form part of these financial statements._
11
DocuSign Envelope ID: 5A8641D9-5733-41D3-8961-C5BA965CAC62
## **THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2022**
||||Restated|
|---|---|---|---|
|||**Total funds**|Total funds|
|||**Year ended**|Year ended|
|||**31 March**|31 March|
|||**2022**|2021|
|_Notes_||**£**|£|
|20|**Net cash (used in)/provided by operating activities**|**(51,725)**|89,319|
|||**---------------------------**|---------------------------|
||**_Cash flows from investing activities:_**|||
||Interest and dividends|**116,255**|91,601|
||Proceeds from sale of investments|**179,708**|273,626|
||Purchase of investments|**(309,726)**|(329,081)|
|||**---------------------------**|--------------------------|
||**Net cash (used in)/provided by investing activities**|**(13,763)**|36,146|
|||**---------------------------**|--------------------------|
||**Change in cash and cash equivalents in the year**|**(65,488)**|125,465|
||**Reconciliation of funds**|||
||**Cash and cash equivalents brought forward**|**907,823**|782,358|
|||**----------------------------**|----------------------------|
|21|**Cash and cash equivalents carried forward**|**842,335**|907,823|
|||**==================**|=================|
## **Prior year adjustment**
In the prior year, purchase of investments was disclosed in error as a cash flow from financing activities instead of being a cash flow from investing activities. The prior year’s disclosure has therefore been restated.
_The accompanying notes on pages 13 to 21 form part of these financial statements._
12
DocuSign Envelope ID: 5A8641D9-5733-41D3-8961-C5BA965CAC62
## **THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **1 General information**
The Chartered Certified Accountants’ Benevolent Fund is a company limited by guarantee. The liability of each member is restricted to a maximum of £10 in the event of a winding up.
## **2 Accounting Policies**
The following accounting policies are considered material in relation to the Fund’s financial statements:
## (a) _Basis of preparation_
The financial statements have been prepared under the historical cost convention, as modified by the inclusion of fixed asset investments at market value, and in accordance with the Statement of Recommended Practice: Accounting and Reporting by 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) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Fund meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
## (b) _Critical accounting estimates and judgements_
The preparation of financial statements, in conformity with generally accepted accounting principles, requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on the Trustees’ best knowledge of current events and actions, actual results ultimately may differ from those estimates.
The estimates and assumptions which have the most significant risk of causing a material adjustment to the carrying amounts of assets and liabilities relate to the recoverability of the loans. Where there is an indication that the loan is not recoverable a review will be undertaken of the recoverable amount of that asset based on value in use calculations which will involve estimates and assumptions made by the Trustees.
## (c) _Income recognition_
All income is recognised once the charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. All incoming resources are accounted for on an accruals basis except for donations which are accounted for when received. Legacies are recognised on a case-by-case basis when the administrator/executor for the estate has communicated in writing both the amount and settlement date. Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank. Dividends are recognised on a receivable basis. Investment income is stated gross of taxation recoverable. Interest receivable on loans is recognised when receipt can be established with sufficient reliability. Gifts in kind are recognised at their market value on receipt (see notes 17 and 18).
## (d) _Expenditure recognition_
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the Fund to that expenditure, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis. All expenses including support costs and governance costs are allocated or apportioned to the applicable expenditure headings.
13
DocuSign Envelope ID: 5A8641D9-5733-41D3-8961-C5BA965CAC62
## **THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2 Accounting Policies (continued)**
- (e) _Preparation of the accounts on a going concern basis_
- The Trustees have considered the impact of Covid-19 on the Benevolent Fund’s activities, which includes the possibility of
- lower investment values due to the stock market volatility;
- increased applications from affected members and their families; and
- reduced levels of donations
The Trustees have reviewed the 15-year financial plan taking into account these various impacts. Following that review they are satisfied that the Fund has sufficient reserves to continue to help beneficiaries for many years and they have concluded that there are no material uncertainties about the charity’s ability to continue as a going concern. Accordingly, the financial statements have been prepared on a going concern basis.
## (f) _Fixed asset investments_
Fixed asset investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.
The main form of financial risk faced by the charity is that of the volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk and changes in sentiment concerning equities and within particular sectors or sub-sectors. The Fund does not acquire put options, derivatives or other complex financial instruments.
- (g) _Realised and unrealised gains and losses_
All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase price if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year-end and their carrying value. Realised and unrealised investment gains and losses are combined in the statement of financial activities.
## (h) _Financial instruments_
Financial instruments recognised in the balance sheet include cash and cash equivalents, availablefor-sale investments, receivables and prepayments, and trade and other payables. Financial instruments are initially valued at fair value. Financial assets are derecognised when the rights to receive cash flows from the asset have expired. Financial liabilities are derecognised when the obligation under the liability is discharged or cancelled or expires.
The charity assesses at each balance sheet date whether a financial asset is impaired. Where a financial asset shows an indicator of impairment, it is tested to assess whether it should be specifically impaired. The recoverable amounts of financial assets are calculated by discounting the estimated future cash flows using the original effective interest rate. Where the recoverable amount is less than the carrying value, an impairment loss is recognised. Subsequent to recognising that impairment, the impairment may be recovered if an event occurred that reverses the impairment indicator.
Subsequent to initial recognition, financial instruments are measured as set out below.
## _**Loans**_
Loans are carried at the original amount advanced to a beneficiary less any payments made, and less provision made for the non-recoverability of these loans. A provision for impairment of loans is established when there is objective evidence that the Benevolent Fund will not be able to collect all amounts due according to the original terms and conditions of the loans. The amount of the provision is the difference between the carrying amount and the recoverable amount, being the present value of expected cash flows.
14
DocuSign Envelope ID: 5A8641D9-5733-41D3-8961-C5BA965CAC62
## **THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2 Accounting Policies (continued)**
## (h) _Financial instruments (continued)_
## _**Cash and cash equivalents**_
Cash and cash equivalents are carried in the balance sheet at cost. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand or bank overdraft and short-term investments and are subject to insignificant risk of changes in value.
## _**Trade and other payables**_
Trade and other payables are stated at their fair value.
## _**Gains and losses**_
All gains or losses on financial assets and liabilities are recognised in the statement of financial activities, including unrealised and realised gains or losses on investments.
(i) _Unrestricted funds_ The unrestricted general funds represent the amounts retained to ensure the continuing charitable activities of the Fund. Designated funds are unrestricted funds that are set aside at the discretion of the Trustees for specific purposes. The purpose of specific designated funds is shown in note 15 to the financial statements.
## (j) _Short-term investments_
Short-term investments includes cash deposits with a maturity of between 3 months to 1 year from the date of acquisition or opening of the deposit or similar amount.
- (k) _Cash at bank and in hand_
Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## (l) _Support costs_
Support costs comprise the costs of administrative support provided by ACCA and Trustees’ expenses, both of which are apportioned between Grants Payable and Governance Costs on the basis of the time spent on each activity. Details of support costs are given in notes 8, 17 and 18.
- (m) _Expenditure on raising funds_
The costs of generating funds consist of investment management costs and certain legal fees.
- (n) _Expenditure on charitable activities_
Costs of charitable activities include grants made and an apportionment of overhead and support costs as shown in notes 7 and 8.
## (o) _Governance costs_
Governance costs comprise expenditure relating to the Fund’s governance and include any costs related to audit, legal and professional fees together with an apportionment of overhead and support costs as shown in notes 7 and 8.
## (p) _Loans_
Loans are accounted for as a debtor once the funds have been remitted to the beneficiary and the appropriate documentation has been received. Although loans are treated as current assets, it is not expected that any of them will be repaid in full within one year. Provision is made for non-repayment of the loans when the Trustees believe there is little likelihood of recovery. Interest on loans is not accounted for until the loans are repaid.
## (q) _Grant-making_
Grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the Trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside the control of the Benevolent Fund.
15
DocuSign Envelope ID: 5A8641D9-5733-41D3-8961-C5BA965CAC62
## **THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **2 Accounting Policies (continued)**
## (r) _Foreign currencies_
Transactions in foreign currencies are converted into sterling, which is the presentational currency of the charity, at exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date.
## (s) _Taxation_
The Chartered Certified Accountants' Benevolent Fund is a registered charity, and as such is entitled to certain tax exemptions on income and profits from exemptions, and surpluses on any activities carried on in furtherance of the charity's primary objectives, if these profits and surpluses are applied solely for charitable purposes.
## (t) _Valuation of services and facilities provided free of charge_
The Association of Chartered Certified Accountants (ACCA) provides staff and facilities free of charge to the charity in order to fulfil its charitable objectives. Additionally, certain administrative costs are borne directly by ACCA. Valuation of the services and facilities has been included as follows:
- Staff are valued as a proportion of salary and related costs based on an estimate of the amount of time relevant ACCA staff members spend on Benevolent Fund activities over the period the financial statements are prepared.
- Facilities provided by ACCA for hosting charity meetings are valued using a delegate rate for hiring similar venues from a third-party venue provider.
- Costs, including audit fees, which are borne directly by ACCA are measured using the amount paid by ACCA to the third-party provider.
These methods approximate fair value.
## (u) _Funds_
Financial projections are prepared annually and revised as necessary. The resources of the Benevolent Fund are used to the full extent available and any accumulation of assets is for future use under the terms of the Fund. Reserves are not intentionally held at a defined level but are used as and when appropriate activities are approved that fulfil the objectives of the Fund.
## **3**
||**31 March**|31 March|
|---|---|---|
||**2022**|2021|
||**£**|£|
|**Charitable donations**|||
|Donation from the Chartered Certified Accountants’|||
|Benevolent Fund|**449**|238|
||**================**|================|
During the year the Fund received £449 from the unincorporated charity, the Chartered Certified Accountants’ Benevolent Fund, as authorised by the transfer documentation which became effective as at 31 December 2014.
## **4 Donations**
|**4**|**Donations**|||
|---|---|---|---|
||Donations from members|**42,654**|55,929|
||Gifts in kind - costs reimbursed by ACCA (notes 17 and 18)|**29,091**|19,202|
|||**----------------------------**|---------------------------|
|||**71,745**|75,131|
|||**================**|===============|
|**5**|**Investment income**|||
||Dividends on listed investments|**105,981**|81,798|
||Interest on cash deposits and fixed rate investments|**6,021**|9,803|
||Interest on loans repaid|**4,253**|**---**|
|||**-----------------------------**|---------------------------|
|||**116,255**|91,601|
|||**================**|===============|
16
DocuSign Envelope ID: 5A8641D9-5733-41D3-8961-C5BA965CAC62
## **THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **6 Investment management costs**
|**6**|**Investment management costs**||||
|---|---|---|---|---|
||||**31 March**|31 March|
||||**2022**|2021|
||||**£**|£|
||Investment management fees||**25,041**|21,507|
||||**==================**|==================|
|**7**|**Expenditure on charitable activities**||||
||**Year ended 31 March 2022**||||
|||**Direct**|**Support**|**31 March**|
|||**costs**|**costs**|**2022**|
|||**£**|**£**|**£**|
||Grants payable|**84,053**|**23,273**|**107,326**|
||Governance costs|**5,359**|**5,818**|**11,177**|
|||**-----------------------------**|**----------------------------**|**----------------------------**|
|||**89,412**|**29,091**|**118,503**|
|||**================**|**===============**|**===============**|
||Year ended 31 March 2021||||
|||Direct|Support|31 March|
|||costs|costs|2021|
|||£|£|£|
||Grants payable|34,763|13,442|48,205|
||Governance costs|5,751|5,760|11,511|
|||-----------------------------|----------------------------|----------------------------|
|||40,514|19,202|59,716|
|||================|===============|===============|
## **8 Support costs**
Support costs, consisting of Trustees’ expenses and the office costs of the Fund, including staff salaries, are split between grant making and governance on the estimated time spent on each activity as shown in the table below.
|||||**Year ended**|
|---|---|---|---|---|
|**Support costs**|**Basis of apportionment**|**Grants**|**Governance**|**31 March**|
|||**payable**|**costs**|**2022**|
|||**£**|**£**|**£**|
|Office costs|Work done|**20,000**|**5,000**|**25,000**|
|Trustees’ expenses|Actual|**1,399**|**350**|**1,749**|
|Staff expenses|Actual|**347**|**86**|**433**|
|Meeting costs|Actual|**1,527**|**382**|**1,909**|
|||**-------------------------------**|**----------------------------**|**----------------------------**|
|||**23,273**|**5,818**|**29,091**|
|||**=================**|**================**|**================**|
|||||Year ended|
|Support costs|Basis of apportionment|Grants|Governance|31 March|
|||payable|costs|2021|
|||£|£|£|
|Office costs|Work done|12,600|5,400|18,000|
|Trustees’ expenses|Actual|**------**|**------**|**------**|
|Staff expenses|Actual|211|90|301|
|Meeting costs|Actual|631|270|901|
|||-------------------------------|----------------------------|----------------------------|
|||13,442|5,760|19,202|
|||=================|================|================|
The Fund has no employees. The Secretary and administrative staff are employed by ACCA and a proportion of their staff costs is included in support costs above.
17
DocuSign Envelope ID: 5A8641D9-5733-41D3-8961-C5BA965CAC62
## **THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **9 Analysis of grants**
All grants awarded are for the benefit of individuals and their families.
|||**31 March**|31 March|
|---|---|---|---|
|||**2022**|2021|
|||**£**|£|
|**10**|**Investments**|||
||**_Quoted investments_**|||
||Market value at 1 April|**3,778,861**|**2,988,093**|
||Acquisitions|**309,726**|**329,081**|
||Disposals at carrying value|**(179,708)**|**(273,626)**|
||Net unrealised investment gains|**182,406**|**691,801**|
||Net realised investment gains on disposal|**19,099**|**43,512**|
|||**--------------------------------**|-----------------------------|
||Market value at 31 March|**4,110,384**|**3,778,861**|
|||**==================**|=================|
||Historical cost as at 31 March|**3,397,562**|**3,258,617**|
|||**==================**|=================|
||**Investments at market value**|||
||UK Equities|**1,938,412**|**1,876,791**|
||Europe Equities|**170,471**|**129,992**|
||North America Equities|**581,898**|**499,891**|
||Asia Pacific Equities|**293,105**|**289,342**|
||Other Global Equities|**275,481**|**264,355**|
||UK Gilts|**------**|**82,132**|
||Other Fixed Interest|**459,406**|**408,061**|
||Property|**200,277**|**126,402**|
||Alternatives|**191,334**|**101,895**|
|||**--------------------------------**|------------------------------|
||**Total**|**4,110,384**|**3,778,861**|
|||**==================**|=================|
All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets, primarily the London Stock Exchange. Holdings in common investment funds, unit trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value, using the bid price. Asset sales and purchases are recognised at the date of trade at cost (that is their transaction value).
All investment assets were held in the UK except as disclosed above.
The following individual shareholdings or investments are considered individually to be material with the market values and proportion of the portfolio shown as at 31 March 2022:
**Holding Market Value Percentage of Portfolio BlackRock Charities UK Bond A 216,045 6.0%**
The Trustees set 5% of year-end market value of the investment portfolio as the threshold for reporting material investments.
## **11 Loans**
Loans are classified as debtors. They can be repaid at any time and are therefore categorised as current assets. Most of the loans are secured by legal charges on freehold properties and are interestbearing at rates related to bank base rate. One loan of £11,500 was repaid during the year and additional advances totalling £6,080 were made to two existing borrowers.
18
DocuSign Envelope ID: 5A8641D9-5733-41D3-8961-C5BA965CAC62
## **THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
|||||**31 March**|31 March|
|---|---|---|---|---|---|
|||||**2022**|2021|
|||||**£**|£|
|**12**|**Amounts due from related parties**|||||
||Due from ACCA|||**----**|352|
||Due from the unincorporated charity,|the Chartered||||
||Certified Accountants’ Benevolent Fund|||**108,099**|95,692|
|||||**--------------------------------**|-----------------------------|
|||||**108,099**|96,044|
|||||**==================**|=================|
|**13**|**Short-term investments**|||||
||Market value at 1 April|||**596,672**|492,895|
||Acquisitions|||**504,009**|596,672|
||Disposals at carrying value|||**(496,634)**|(492,895)|
|||||**--------------------------------**|-----------------------------|
||Market value at 31 March|||**604,047**|596,672|
|||||**==================**|=================|
||Historical cost as at 31 March|||**604,047**|596,672|
|||||**==================**|=================|
|**14**|**Creditors: amounts falling due within one year**|||||
||Trade creditors|||**5,307**|3,000|
||Grants committed|||**18,228**|33,567|
||Accrued expenses|||**6,272**|5,756|
||Due to ACCA|||**35,713**|**-----**-|
|||||**-----------------------------**|----------------------------|
|||||**65,520**|42,323|
|||||**================**|================|
|**15**|**Transfers between funds**|||||
||||**Designated Funds**|||
|||**General**|**Disaster**|**Loan**|**Total**|
|||**funds**|**Fund**|**Fund**||
|||**£**|**£**|**£**|**£**|
||At 1 April 2020|3,862,195|103,612|171,196|4,137,003|
||Net movement in funds for the period|
829,093|**-----**|**-----**-|829,093|
||Loan Fund – loans awarded|(39,455)|**-----**-|39,455|**----**|
||Loan Fund – forex loss|2,260|**-----**|(2,260)|**----**|
||Loan Fund – loan written off|2,686|**-----**|(2,686)|**----**|
||Transfer in respect of Disaster Fund|(7,377)|7,377|**----**|**----**|
||Disaster Fund utilised in the year|7,631|(7,631)|**----**|**----**|
|||-------------------------------|----------------------------|----------------------------|------------------------------|
||**At 31 March 2021/1 April 2021**|**4,657,033**|**103,358**|**205,705**|**4,966,096**|
||Net movement in funds for the period|
246,410|**-----**|**-----**-|246,410|
||Loan Fund – loans awarded|(6,080)|**-----**-|6,080|**----**|
||Loan Fund – loans repaid|11,500|**-----**-|(11,500)|**----**|
||Loan Fund – forex loss|581|**-----**|(581)|**----**|
||Loan Fund – loan written off|**-----**|**-----**|**-----**|**----**|
||Transfer in respect of Disaster Fund|(7,632)|7,632|**----**|**----**|
||Disaster Fund utilised in the year|20,000|(20,000)|**----**|**----**|
|||**-------------------------------**|**----------------------------**|**----------------------------**|**------------------------------**|
||**At 31 March 2022**|**4,921,812**|**90,990**|**199,704**|**5,212,506**|
|||**=================**|**================**|**================**|**================**|
The designated Disaster Fund is available to provide emergency assistance to members and their families who have been affected by national or international disaster. The designated Loan Fund is maintained at a value equal to the total amount of loans to beneficiaries and recognises the fact that these amounts are not available for the Fund’s day-to-day operations.
19
DocuSign Envelope ID: 5A8641D9-5733-41D3-8961-C5BA965CAC62
## **THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **16 Analysis of net assets between funds**
|||**Net current**||
|---|---|---|---|
||**Investments**|**assets**|**Total**|
||**£**|**£**|**£**|
|As at 31 March 2021||||
|Unrestricted funds:||||
|Designated funds|**------**|309,063|309,063|
|General funds|3,778,861|878,172|4,657,033|
||-------------------------------|------------------------------|----------------------------|
||3,778,861|1,187,235|4,966,096|
||=================|================|================|
|**As at 31 March 2022**||||
|**Unrestricted funds:**||||
|Designated funds|**------**|**290,694**|**290,694**|
|General funds|**4,110,384**|**811,428**|**4,921,812**|
||**-------------------------------**|**------------------------------**|**----------------------------**|
||**4,110,384**|**1,102,122**|**5,212,506**|
||**=================**|**================**|**================**|
## **17 Related party transactions**
The Fund exists to provide assistance to persons in need who are or have been members of ACCA or related organisations and their families and dependants. ACCA is responsible for the administration of the Fund and bears some of its overhead expenses which are not reflected in the statement of financial activities. However, staff costs, staff expenses and Trustees’ costs incurred by ACCA amounting to £27,677 (2021: £18,301), are included as income in the statement of financial activities as ‘gifts in kind’ and the expenditure as ‘Support costs’.
ACCA also collects certain income and pays certain expenditure on behalf of the Fund and there may, therefore, at any time be a balance outstanding between the Fund and ACCA. As the transfer of assets and liabilities from the unincorporated charity is still ongoing, a balance may exist between the two Chartered Certified Accountants’ Benevolent Funds. Any such balances at the year-end are identified separately in the balance sheet.
|
identified separately in the balance sheet.|||
|---|---|---|
||**31 March**|31 March|
||**2022**|2021|
||**£**|£|
|**Related party balances**|**Owed/(owing)**|Owed|
|ACCA|**(35,713)**|352|
|Chartered Certified Accountants’ Benevolent Fund|**108,099**|95,692|
|(unincorporated charity)|**- ------------------------------**|---------------------------|
||**72,386**|96,044|
||**=================**|================|
## **18 Trustees’ expenses and remuneration**
The Trustees all give freely of their time and expertise without any form of remuneration or other benefits in cash or kind (2021: £nil). They may be reimbursed for directly incurred expenses or costs may be incurred by the Fund for attendance at meetings. In total, these costs amounted to £nil (2021: £nil) to 10 (2021: 10) Trustees. For the year ended 31 March 2022, all but one of the four meetings were held virtually and for the 10 Trustees there was £737 (2021: £nil) reimbursed for their travel expenses and £nil (2021: £nil) for accommodation costs incurred by the Fund. During the year, ACCA paid £1,012 (2021: £nil) for accommodation costs directly on behalf of the Trustees These are included in the statement of financial activities (incorporating income and expenditure account) under income as ‘gifts in kind’ and under expenditure as ‘Support costs’.
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## **THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022**
## **19 Auditor’s remuneration**
The costs of the audit, which were £6,055 (2021: £5,265), were borne by ACCA.
|||**31 March**|31 March|
|---|---|---|---|
|||**2022**|2021|
|||**£**|£|
|**20**|**Reconciliation of net movement in funds to net cash flow**|||
||**from operating activities**|||
||Net movement in funds|**246,410**|829,093|
||Investment income shown in investing activities|**(116,255)**|(91,601)|
||Net gains on investments|**(201,505)**|(735,313)|
||(Increase)/decrease in debtors|**(3,572)**|80,938|
||Increase in creditors|**23,197**|6,202|
|||**------------------------------**|-------------------------------|
||Net cash (used in)/provided by operating activities|**(51,725)**|89,319|
|||**=================**|================|
|**21**|**Cash and cash equivalents**|||
||For the purposes of the cash flow statement, cash and cash equivalents are defined as the fol|||
||Short-term investments|**604,047**|596,672|
||Cash at bank and in hand|**238,288**|311,151|
|||**------------------------------**|-------------------------------|
||Cash and cash equivalents|**842,335**|907,823|
|||**=================**|================|
**21 Cash and cash equivalents** For the purposes of the cash flow statement, cash and cash equivalents are defined as the following:
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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND**
## **Opinion**
We have audited the financial statements of The Chartered Certified Accountants’ Benevolent Fund (the ‘charitable company’) for the year ended 31 March 2022, which comprise the Statement of Financial Activities (incorporating Income and Expenditure Account), the Balance Sheet, the Cash Flow Statement, and the related notes. 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:
- give a true and fair view of the state of the charitable company's affairs as at 31 March 2022 and of its incoming resources and application of resources including, its income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended).
## **Basis for opinion**
We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
We are responsible for concluding on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.
In our evaluation of the trustees’ conclusions, we considered the inherent risks associated with the charitable company’s business model including effects arising from macro-economic uncertainties such as Brexit and Covid-19, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the charitable company’s financial resources or ability to continue operations over the going concern period.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
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.
The responsibilities of the trustees with respect to going concern are described in the ‘Responsibilities of trustees for the financial statements’ section of this report.
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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND**
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
## **Opinion on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Directors’ Report, prepared for the purposes of company law, included in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
- the Strategic Report and the Directors’ Report included in the Trustees' Annual Report have been prepared in accordance with applicable legal requirements.
## **Matter on which we are required to report under the Companies Act 2006**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Annual Report.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:
- proper and adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees**
As explained more fully in the Trustees' Responsibilities Statement set out on page 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND**
## **Auditor’s responsibilities for the audit of the financial statements**
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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- We obtained an understanding of the legal and regulatory frameworks that are applicable to the charitable company through our general not for profit and charity sector experience, discussions with management and the internal legal counsel. We determined that the following laws and regulations were most significant: Charities SORP 2019, FRS 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’, Charities Act 2011, Charities and Trustee Investment (Scotland) Act 2005, Charities Accounts (Scotland) Act 2006 (as amended), Companies Act 2006, Data Protection Act 2018 and The Charities (Protection and Social Investment) Act 2016.
- We enquired of management concerning the charitable company’s policies and procedures relating to:
- the identification, evaluation and compliance with laws and regulations;
- the detection and response to the risk of fraud; and
- the establishment of internal controls to mitigate risks related to fraud or non-compliance with laws and regulations.
- We enquired of management whether they were aware of any instances of non-compliance with laws and regulations and corroborated the results of our enquiries to relevant supporting documentation.
- We assessed the susceptibility of the charitable company’s financial statements to material misstatement, including how fraud might occur and the risk of management override of controls. Audit procedures performed by the engagement team included:
- identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
- challenging assumptions and judgements made by management in its accounting estimates;
- identifying and testing journal entries, in particular manual journal entries;
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## **INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS AND TRUSTEES OF THE CHARTERED CERTIFIED ACCOUNTANTS’ BENEVOLENT FUND**
**Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud (continued)**
- The assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s:
- understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation;
- knowledge of the industry in which the client operates; and
- understanding of the legal and regulatory requirements specific to the entity including, the provisions of the applicable legislation, the regulators rules and related guidance, including guidance issued by relevant authorities that interprets those rules and the applicable statutory provision.
- These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed noncompliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it;
- The team communications in respect of potential non-compliance with laws and regulations and fraud included the potential for fraud in revenue recognition, improper use of charitable funds and serious incident reports submitted to the Charities Commission in the period; and
- In assessing the potential risks of material misstatement, we obtained an understanding of:
- the charitable company’s operations, including the nature of its revenue sources to understand the classes of transactions, account balances, expected financial statement disclosures and business risks that may result in risk of material misstatement; and
- the charitable company’s control environment, including:
- management’s knowledge of relevant laws and regulations and how the charitable company is complying with those laws and regulations;
- the adequacy of procedures for authorisation of transactions; and
- procedures to ensure that possible breaches of law and regulations are appropriately resolved.
## **Use of our report**
This report is made solely to the charitable company's members and trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006, Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members and 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 charitable company and its members and trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Gareth Norris FCA**
Senior Statutory Auditor for and on behalf of Grant Thornton UK LLP Statutory Auditor, Chartered Accountants **Birmingham**
**Date** 7/12/2022
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