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2020-12-31-accounts

Charity Registration No. 1162712

Company Registration No. RC000877 (England and Wales)

CHARTERED INSTITUTE OF CREDIT MANAGEMENT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

LEGAL AND ADMINISTRATIVE INFORMATION

President S Baister Trustees G Bullivant (Treasurer) L Coltman V Herd P Holbrough (Appointed 8 September 2020) D Nolan (Chair) P Rice (Appointed 8 September 2020) Chief Executive S Chapple Charity number 1162712 Company number RC000877 Principal address The Water Mill Station Road South Luffenham Oakham Leicestershire United Kingdom LE15 8NB Registered office The Water Mill Station Road South Luffenham Oakham Leicestershire United Kingdom LE15 8NB Auditor Azets Audit Services Ruthlyn House 90 Lincoln Road Peterborough United Kingdom PE1 2SP Bankers National Westminster Bank PO Box 4 69 Bridge Street Worksop Nottinghamshire United Kingdom S80 1DG

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

CONTENTS

Page
Trustees' report 1 - 4
Statement of trustees' responsibilities 5
Independent auditor's report 6 - 8
Statement of financial activities 9 - 10
Balance sheet 11 - 12
Statement of cash flows 15
Notes to the financial statements 16 - 32

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements for the year ended 31 December 2020.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)".

Objectives and activities

The Institute’s charitable objectives are (1) to advance the education of the public concerning credit management and to encourage the study thereof. (2) to establish a hardship fund for the benefit of members or former members of the institute allowing the institute to make payments and/or assist such members or former members or their dependants who are in conditions of need hardship or distress.

The main activities undertaken in relation to these objectives are:

The trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake.

Achievements and performance

During 2020 the Institute:

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

T he Institute measures its’ achievements and performance using a range of KPIs and SLAs. These include but are not limited to the analysis of membership numbers, measurement of member retention rates and targeted response times to member contact. Activity on social media channels is also keenly measured, and the Institute monitors coverage by third party organisations of its activity.

Financial review

The net expenditure of the group for the 12 month period was £71,265, increasing total charity funds to £838,140 at 31 December 2020. The trading subsidiary returned a profit of £294,197 which was gift aided to the charity.

Reserves Policy: The majority of the income received and generated by the Institute is of an unrestricted nature but certain restricted funds and reserves are recognised within the accounts. It is the Institute’s policy to retain a level of general reserve that takes in to account future capital investment, unexpected maintenance expenditure and, in the event of a winding down of the Institute’s activities, sufficient reserves to develop, deliver and award the Institute’s qualifications. At 31 December 2020 the level of general reserve of £227,878 was below the level deemed to be sufficient to meet these criteria. The Trustees fully recognise and are committed to closing this shortfall by restricting capital investment to essential needs together with careful cost management over the next 5 years.

Benevolent Fund: This was set up by the Institute to provide assistance to members or former members of the Institute, or their dependants, in need, hardship or distress. Applications for assistance are considered by a Benevolent Fund Committee which is comprised of four Vice Presidents (previous Chairs) of the Institute. Payments totalling £3,387 were made during the period.

Branches: The branches are funded partly by the Institute and partly by fundraising activities carried out by the branches themselves. There has been minimal activity during 2020 due to the pandemic.

Funds in IICM: This is surplus funds donated by the IICM on its winding up and is ring fenced for development of the Ireland branch of CICM.

Investment Policy and Returns: Under the Institute’s Charter and By-laws the Executive Board has the power to invest, as it thinks fit, any monies not immediately required after taking into account the Charity’s future spending commitments and planned capital investment. Current investment policy demands a two tier approach to investments. That is, a proportion of surplus funds as designated by the trustees from time to time are held in readily realisable investments designed to generate a return in the short to medium term that will at least maintain the real value of the asset and simultaneously, as appropriate to the level of surplus funds, a proportion invested in higher risk markets designed to generate higher returns for growth over the medium to long term.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

The charity maintains an operational register of risk which is reviewed and updated on a regular basis. Possible risks identified include

Each risk is scored according to potential impact and likelihood of occurrence. Appropriate actions are recorded in the risk register for each risk identified and monitored until implemented. The Executive Board delegates day-to-day responsibility for risk management to the Chief Executive who has responsibility for identifying and evaluating risks and implementing appropriate controls.

The Institute’s objectives for the future continue as previously, and specific plans include:

Structure, governance and management

The charity was incorporated as a Royal Charter company on 1 January 2015 (Company Number RC000877 Charity Number 1162712).

The members of the Executive Board are the directors of the charitable company and its trustees for the purposes of charity law. They are elected by the Advisory Council for a period of two years and meet quarterly. New trustees are provided with an induction pack outlining their duties and responsibilities. Ongoing trustee training is provided from time to time. There are committees dealing with the benevolent fund, education and technical matters. It is the Executive Board’s role to determine the overall direction and development of the charity through good governance and effective strategic planning. The Executive Board is also responsible for safeguarding and protecting the assets of the charity, identifying its principal business risks and ensuring that appropriate systems are in place for their management and mitigation. In addition the Executive Board oversees the admission and conduct of members, also the procedure at general meetings of the Institute. The Executive Board delegates day-to-day responsibility for governance, strategic planning, risk management and general day-to-day operations to the Chief Executive. The Chief Executive is appointed by the Executive Board.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORT) ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020 The Institute has a wholly owned subsidiary, CICM IServi¢esl Limited, which provides credit related services including training, events and the supply of learning materials. The accounts show the consolidated position of both companies. The subsidiary gifts all of ils profits lo the charity. As a means of meeting its principal objectives, the Institute runs branches throughout the United Kingdom. Each of these branches is a geographic grouping of CICM members who elect a committee to promote the Inslilule at local level, to provide meetings of an educational and training nature, lo encourage the exchange of professional views belween people working in credit management and lo provide a network of help, advi and support. Members of branch committees act in a voluntary capacity and operate within guidelines set by the Executive Board. In relation to the activities of the Institute as a whole, the £ value of the volLJntary work is not a significant percentage. The trustees. who are also the directors for the purpose of company law, and who served during the year and up lo the dale of signsture of the fi'nancial slalemenls were". G Bullivant ITreasurerl L Coltman V Herd P Holbrough D Nolan (Chairl B Pettifor P Rice P Whitmore (Appointed 8 September 20201 (Resigned 8 September 20201 IAppoinled 8 September 20201 (Resigned 8 September 20201 None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee lo contribute £1 in the event of a winding up. The charity provides qualrfying third party indemnity insurance for the benefit of d1￿CtOrS and trustees. The pay and remuneration of key management personnel (Chief Execulivel is determined by the trustees taking into account performance and benchmarked data for the sector. Auditor On 7 September 2020 Group Audit Services Limited trading as Baldwins Audit servI￿s changed ils name to Azets Audit Services Limited. The name they practi￿ under isA2els Audit setVi￿s and a￿OrdInglY they have signed their report in their new name. In accordance with the company's articles, a resolution proposing that Azels Audit Services be reappointed as auditor of the company will be pul al a General Meeting. The trustees, report was approved by the Board of Trustees. D Nolan {Chairl Dated.. .9 March 2021................

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

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

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

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

The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF CHARTERED INSTITUTE OF CREDIT MANAGEMENT

Opinion

We have audited the financial statements of Chartered Institute of Credit Management (the ‘charity’) for the year ended 31 December 2020 which comprise the Group Statement of Financial Activities, the Group & Parent Charitable Company Balance Sheet's, the Group Cash flow Statement and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHARTERED INSTITUTE OF CREDIT MANAGEMENT

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

CHARTERED INSTITUTE OF CREDrr MANAGEMENT INDEPENDENT AUDrroR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHARTERED INSTrrurE OF CREDrr MANAGEMENT In response to the risk of irregularities and nor￿ComF4nee wlth laws and regjlatlons, IrK4uding fraud, designed pro¢edure$ vthich included: Erwuiry of management and those charged ￿lIh g0￿mar￿ WOUfKf actual arnl pthntial litigation ar daims as as actual. SUSFcied a￿1 aleged fraud: Reviewng M￿Ule5 of meetings of those d￿r9ed ¥￿h govemance. Assessing the extent of eompknance ￿th the lavts arKI regulations coNdered to have a direct mater¢al effect on the finanaal ststempthts or the operab.ons ofthe entty through enquiry and inspeckn'cffl.. Reviewing financial statement disdosures and te8b"Th3 to 8UPfft"ng documentation to assess compliance vAth applicable Iw4S and regulalicffjs" Performing audit ¥￿rk over the ri$k of management bias and ovenide of contrds, induding testing of joumal entries and other adIL￿ts for approFMiateness, evauing the business rationale of signthcant transactions outSKle rw)mBI ¢ouTre of business arKI re¥￿￿1￿ accounting estimates for indieators of potenti41 bia& Because of the inherent limilations of an awjl there is a risk that ¥•e not detect 41 irregularibes, including those leading to a material miss1ateft￿t in Ihe )InanC￿ statements ￿ non<ompliance w71h regulation. Thi5 risk increases the more that Compli¥￿ with a law or regulation is ren￿ed from the events and transactions reflected in the financial statements, as wil be less likety to become aware of instances of non compliance. The risk of not detecting a material misstatement resulb'ng from fraud is higher than for one resulil'ng from error. as fraud may imfot¥e Colbtsx￿. fryy. intentitinal Omi￿n8. misrepreser)tatlons. or the override of intemal control. Use of our rnport This report is m•Je sc4dy to the tnistees, as a body. in accord￿ ilh pwt 4 of Ihe Charities (Accounts arKI RepoFtsI Regulations 2W8. our audit work ha$ been undertaken so that we might state to the charty's trustees those matters we are requyed to state to Ihem in an auditors. report and for no other purpose. To the fvllest extent permitted by law. we do not accept or assume responsibilty to anyone other than the tharity and the charlty'8 trustees as a body. for audit rep(rt or for the opinM)ns ￿e fom)ed. PAr Illark Jackson FCA DChA Isenior StatsrtOryA￿lI for and on ￿half of Az•tsAutht Sor¥1 4 May 2021 Charter8d Accountants Ruthlyn House 90 Lincoln Road Petethrough United I￿r￿dorn PE1 2SP Azets Audit ServirEs is elNJli Jle fur appoinlmerrt as auditor of the ¢arity by Virt￿ of its eligiblt ity for appointsnent as auditor of a company under of seclion 1212 ofthe CompaniesAc* 2006.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF CHARTERED INSTITUTE OF CREDIT MANAGEMENT

Unrestricted Designated
Restricted
funds
funds
funds
2020
2020
2020
Notes
£
£
£
Income from:
Donations and legacies
3
54,191
-
-
Charitable activities
5
758,060
2,001
-
Other trading activities
4
778,474
-
-
Investments
6
5,842
-
50
Total income
1,596,567
2,001
50
Expenditure on:
Charitable activities
7
1,486,822
47,293
10,987
Net gains/(losses) on investments
12
17,749
-
-		 TotalUnrestricted Designated
funds
funds
2020
2019
2019
£
£
£
54,191
15,388
-
760,061
977,230
8,785
778,474
806,135
-
5,892
6,681
-
1,598,618
1,805,434
8,785
1,545,102
1,752,540
103,339
17,749
26,523
-		 Restricted
funds
2019
£
10,621
-
-
95
10,716
1,076
-		 Total
2019
£
26,009
986,015
806,135
6,776
1,824,935
1,856,955
26,523

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF CHARTERED INSTITUTE OF CREDIT MANAGEMENT

Unrestricted Designated
Restricted
funds
funds
funds
2020
2020
2020
£
£
£
Net movement in funds
48,641
33,561
(10,937)
Net incoming/(outgoing) resources before
transfers
127,494
(45,292)
(10,937)
Gross transfers between funds
(78,853)
78,853
-
Net movement in funds
48,641
33,561
(10,937)
Fund balances at 1 January 2020
179,237
514,150
73,488
Fund balances at 31 December 2020
227,878
547,711
62,551		 TotalUnrestricted Designated
Restricted
funds
funds
funds
2020
2019
2019
2019
£
£
£
£
71,265
41,732
(56,869)
9,640
71,265
79,417
(94,554)
9,640
-
(37,685)
37,685
-
71,265
41,732
(56,869)
9,640
766,875
137,505
571,019
63,848
838,140
179,237
514,150
73,488		 Total
2019
£
(5,497)
(5,497)
-
(5,497)
772,372
766,875

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

All income and expenditure derive from continuing activities.

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

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2020

2020
Notes
£
Fixed assets
Tangible assets
13
Investments
14
Current assets
Stocks
16
4,149
Debtors
17
229,310
Cash at bank and in hand
515,634
749,093
Creditors: amounts falling due within
one year
18
(625,404)
Net current assets/(liabilities)
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
19
Net assets
Income funds
Restricted funds
22
Unrestricted funds
Designated funds
23
547,711
General unrestricted funds
227,878		 2019
£
£
447,737
316,654
764,391
5,351
251,587
408,814
665,752
(668,951)
123,689
888,080
(49,940)
838,140
62,551
514,150
179,237
775,589
838,140		 £
479,997
296,545
776,542
(3,199)
773,343
(6,468)
766,875
73,488
693,387
766,875

CHARTERED INSTITUTE OF CREDIT MANAGEMENT CONSOLIDATED BALANCE SHEET {CONTINUED) AS AT 31 DECEMBER 2020 The company is entitled lo the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020, although an audit has been carried out under section 144 of the Charities Act 2011. The directors acknowledge their responsibilities for ensuring that the charity keeps a¢￿untIng records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the stale of affairs of the company as al the end of the financial year and of ils incoming reSoUr￿S and application of resources, including ils income and expenditure. for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating lo financial slalements, so far as applicable lo the company. These financial statements have been prepared in accordance with the provisions applicable lo companies subject lo the small companies regime. 9 March 2021 The financial ststements were approved by the Trustees on . G Bullivant ITreasurerl Trustee D Nolan (Chairl Trustee Company Registration No. RC000877 12-

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

BALANCE SHEET

AS AT 31 DECEMBER 2020

2020
Notes
£
Fixed assets
Tangible assets
13
Investments
14
Current assets
Stocks
16
4,149
Debtors
17
81,224
Cash at bank and in hand
515,634
601,007
Creditors: amounts falling due within
one year
18
(477,418)
Net current assets/(liabilities)
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
19
Net assets
Income funds
Restricted funds
22
Unrestricted funds
Designated funds
23
547,711
General unrestricted funds
227,878		 2019
£
£
447,737
316,754
764,491
5,351
66,671
408,814
480,836
(484,135)
123,589
888,080
(49,940)
838,140
62,551
514,150
179,237
775,589
838,140		 £
479,997
296,645
776,642
(3,299)
773,343
(6,468)
766,875
73,488
693,387
766,875

CHARTERED INSTITUTE OF CREDIT MANAGEMENT BALANCE SHEET ICONTINUED) AS AT 31 DECEMBER 2020 The company is entitled lo the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2020, although an audit has been carried out under section 144 of the Charities Act 2011. The directors acknowledge their responsibilities for ensuring that the charity keeps a¢￿untIng records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the stale of affairs of the company as al the end of the financial year and of ils incoming reSoUr￿S and application of resources, including ils income and expenditure. for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating lo financial slalements, so far as applicable lo the company. These financial statements have been prepared in accordance with the provisions applicable lo companies subject lo the small companies regime. 9 March 2021 The financial ststements were approved by the Trustees on . G Bullivant ITreasurerl Trustee D Nolan (Chairl Trustee Company Registration No. RC000877 14-

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

Notes
Cash flows from operating activities
Cash generated from operations
28
Investing activities
Purchase of tangible fixed assets
Purchase of investments
Cash withdrawn from investments
Interest received
Net cash (used in)/generated from
investing activities
Financing activities
Proceeds of new bank loans
Payment of obligations under finance
leases
Net cash generated from/(used in)
financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2020
£
(4,260)
(2,360)
-
5,892
50,000
(1,313)		 £
58,861
(728)
48,687
106,820
408,814
515,634		 2019
£
(4,014)
(5,716)
100,000
6,776
-
(484)		 £
138,687
97,046
(484)
235,249
173,565
408,814

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

Chartered Institute of Credit Management is a private company limited by guarantee incorporated in England and Wales. The registered office is The Water Mill, Station Road, South Luffenham, Oakham, Leicestershire, LE15 8NB, United Kingdom.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS 102.

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

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

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

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

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

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

1.4 Income

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

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

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

Membership fees received by the charity are recognised on receipt. A provision is made in the accounts for the costs associated with providing a monthly magazine to members for the remaining period of their membership. The element of the membership income that relates to training is recognised when the training is delivered.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with use of resources.

(i) Expenditure by subsidiary includes training & educational services expenditure.

(ii) Services to members expenditure includes membership, examinations, Credit Management magazine, advertising, committee services and publicity expenditure.

(iii) Branch activities include all branch expenditure.

1.6 Tangible fixed assets

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

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

Freehold land and buildings 2% straight line Fixtures and fittings 15% straight line Computers 25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

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

1.9 Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell . Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Items held for distribution at no or nominal consideration are measured the lower of replacement cost and cost.

Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

1.10 Cash and cash equivalents

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

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.11 Financial instruments

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

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Basic financial liabilities

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

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

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

Derecognition of financial liabilities

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

1.12 Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to net income/(expenditure) for the year so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.13 Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of the Institute.

Designated funds are unrestricted funds of the Institute which the trustees have decided at their discretion to set aside to use for a specific purpose.

Restricted funds are donations for which the donor has specified are to be solely used for particular areas of the Institute's work.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

2 Critical accounting estimates and judgements

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

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

3 Donations and legacies

Unrestricted Unrestricted
Restricted		 Total
funds funds
funds
2020 2019
2019		 2019
£ £
£		 £
Donations and gifts - 15,388
10,621		 26,009
Furlough income 54,191 -
-		 -
54,191 15,388
10,621		 26,009
Other trading activities
Unrestricted Unrestricted
funds funds
2020 2019
£ £
CICM (Services) Limited 778,474 806,135

4 Other trading activities

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

5 Charitable activities

Advertising, subs and royalties
Education and examinations
Branch activity
Sponsorship
Membership subscriptions
Other income
Analysis by fund
Unrestricted funds
Designated funds		 Total
2020
£
56,309
120,936
2,001
6,250
571,985
2,580
760,061
758,060
2,001
760,061		 Total
2019
£
43,051
162,794
8,785
100,375
663,795
7,215
986,015
977,230
8,785
986,015

6 Investments

Unrestricted
Restricted
funds
funds
2020
2020
£
£
Investments
5,506
-
Interest receivable
336
50
5,842
50
For the year ended 31 December 2019
6,681
95		 Total
2020
£
5,506
386
5,892		 Total
2019
£
6,229
547
6,776
6,776

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

7 Charitable activities

Expenditure by subsidiary
Investment management fees
Advertising, subs and royalties
Education and examinations
Committee services and publicity
Branch activity
Benevolent fund
Share of support costs (see note 8)
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
Designated funds
Restricted funds		 2020
£
484,275
2,371
142,559
365,287
182,498
18,273
3,487
1,198,750
337,317
9,035
1,545,102
1,486,822
47,293
10,987
1,545,102		 2019
£
578,499
2,502
114,952
382,977
163,405
45,082
1,076
1,288,493
557,532
10,930
1,856,955
1,752,540
103,339
1,076
1,856,955

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

8 Support costs

Support
costs
Governance
costs
£
£
Depreciation
36,520
-
Governance
-
9,035
Legal and professional
14,261
-
Property expenses
20,362
-
Insurance
6,092
-
Printing and stationery
11,531
-
Postage
9,285
-
Telephone & IT
50,323
-
Staff costs
171,330
-
Staff expenses
10,040
-
Other
7,573
-
337,317
9,035
Analysed between
Charitable activities
337,317
9,035		 2020
£
36,520
9,035
14,261
20,362
6,092
11,531
9,285
50,323
171,330
10,040
7,573
346,352
346,352		 Support
costs
Governance
costs
£
£
58,257
-
-
10,930
11,276
-
23,438
-
2,820
-
14,717
-
14,158
-
57,011
-
303,398
-
50,647
-
21,810
-
557,532
10,930
557,532
10,930		 2019
£
58,257
10,930
11,276
23,438
2,820
14,717
14,158
57,011
303,398
50,647
21,810
568,462
568,462

Governance costs includes payments to the auditors of £ 9,450 (2019- £ 9,000 ) for audit fees.

9 Trustees

A total of £432 (2019 - £1,842) was paid to trustees in respect of reimbursed expenses for travel and subsistence when carrying out business on behalf of the Institute. None of the trustees have been paid any remuneration or received any other benefits from any employment within the Institute.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

10 Employees

Number of employees

The average monthly number of employees during the year was:

2020
Number
22
Employment costs
2020
£
Wages and salaries
667,821
Social security costs
60,927
Other pension costs
39,026
767,774
The number of employees whose annual remuneration was £60,000 or more were:
2020
Number
£70,001 - £80,000
1
£100,001 - £110,000
-		 2019
Number
26
2019
£
720,046
66,992
45,906
832,944
2019
Number
-
1

11 Taxation

The Institute is a registered charity and the trustees consider that its income does not fall within the scope of corporation tax.

12 Net gains/(losses) on investments

Unrestricted Total
funds
2020 2019
£ £
Revaluation of investments 17,749 26,523

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

13
Tangible fixed assets
Group and Charity
Freehold
land and
buildings
Fixtures
and fittings
Computers
£
£
£
Cost
At 1 January 2020
482,536
21,713
191,840
Additions
-
-
4,260
Disposals
-
-
(2,245)
At 31 December 2020
482,536
21,713
193,855
Depreciation and impairment
At 1 January 2020
43,429
5,810
166,853
Depreciation charged in the year
9,651
3,257
23,054
Eliminated in respect of disposals
-
-
(1,687)
At 31 December 2020
53,080
9,067
188,220
Carrying amount
At 31 December 2020
429,456
12,646
5,635
At 31 December 2019
439,107
15,903
24,987		 Total
£
696,089
4,260
(2,245)
698,104
216,092
35,962
(1,687)
250,367
447,737
479,997

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

14 Fixed asset investments Group

Listed
investments
Investment in
subsidiary
£
Cost or valuation
At 1 January 2020
296,545
-
Additions
2,360
-
Valuation changes
17,749
-
At 31 December 2020
316,654
-
Carrying amount
At 31 December 2020
316,654
-
At 31 December 2019
296,545
-
Charity
Listed
investments
Investment in
subsidiary
£
Cost or valuation
At 1 January 2020
296,545
100
Additions
2,360
-
Valuation changes
17,749
-
At 31 December 2020
316,654
100
Carrying amount
At 31 December 2020
316,654
100
At 31 December 2019
296,545
100
15
Financial instruments
2020
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
316,654
16
Stocks
Group and Charity
2020
£
Finished goods and goods for resale
4,149		 Total
£
296,545
2,360
17,749
316,654
316,654
296,545
Total
£
296,645
2,360
17,749
316,754
316,754
296,645
2019
£
296,545
2019
£
5,351

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

17
Debtors
Group
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
Charity
Amounts falling due within one year:
Trade debtors
Prepayments and accrued income
18
Creditors: amounts falling due within one year
Group
Notes
Bank loans
20
Obligations under finance leases
21
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
Charity
Notes
Bank loans
20
Obligations under finance leases
21
Other taxation and social security
Trade creditors
Amounts owed to subsidiary undertakings
Other creditors
Accruals and deferred income		 2020
£
103,306
126,004
229,310
2020
£
15,126
66,098
81,224
2020
£
5,000
1,528
36,832
85,810
-
496,234
625,404
2020
£
5,000
1,528
36,832
46,716
240,024
-
147,318
477,418		 2019
£
149,990
101,597
251,587
2019
£
20,268
46,403
66,671
2019
£
-
1,313
33,607
56,212
392
577,427
668,951
2019
£
-
1,313
33,607
36,941
244,514
392
167,368
484,135

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

19
Creditors: amounts falling due after more than one year
Group and charity
Notes
Bank loans
20
Obligations under finance leases
21
20
Loans and overdrafts
Group and charity
Bank loans
Payable within one year
Payable after one year
21
Finance lease commitments
Group and charity
Future minimum lease payments due under finance leases:
Within one year
Within two and five years		 2020
£
45,000
4,940
49,940
2020
£
50,000
5,000
45,000
2020
£
1,528
4,940
6,468		 2019
£
-
6,468
6,468
2019
£
-
-
-
2019
£
1,313
6,468
7,781

It is the charity's policy to lease certain equipment under finance leases. The average lease term is 5 years. The average effective borrowing rate for the year was 33%. Interest rates are fixed at the contract date. All leases are on a fixed repayment basis.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

22 Restricted funds

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

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 January 2019 resources expended
1		 January 2020 resources expended 31 December
2020
£ £ £ £ £ £ £
Benevolent
fund 63,848 96 (1,076)
62,868		 50 (3,487)
59,431
Ireland
branch - 10,620 - 10,620 - (7,500)
3,120
63,848 10,716 (1,076)
73,488		 50 (10,987)
62,551

The benevolent fund was set up by the Institute to provide assistance to members or former members of the Institute, or their dependants, in need, hardship or distress. Applications for assistance are considered by the Benevolent Fund Committee which is comprised of four Vice Presidents.

The Ireland branch fund was set up from surplus funds donated by the IICM on its winding up and is ring fenced for development of the Ireland branch of CICM.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

23 Designated funds

The income of the group and charity include s the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

Balance at
1 January 2019

£
Branch
45,044
Fixed asset fund
525,975
IT infrastructure fund
-
571,019		 Movement in funds
Incoming
resources
Resources
expended
£
£
8,785
(45,082)
-
(58,257)
-
-
8,785
(103,339)		 Transfers
Balance at
1 January 2020

£
£
25,406
34,153
12,279
479,997
-
-
37,685
514,150		 Movement in funds
Incoming
resources
Resources
expended
£
£
2,001
(10,773)
-
(36,520)
-
-
2,001
(47,293)		 Transfers
Balance at
31 December
2020
£
£
24,593
49,974
4,260
447,737
50,000
50,000
78,853
547,711

The branches are funded partly by the Institute and partly by fundraising activities carried out by the branches.

The fixed asset fund has been set up to assist in identifying those funds that are not free funds and it represents the net book value of tangible assets. The IT infrastructure fund has been set up for the development of the website and purchase of IT equipment.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

24
Analysis of net assets between funds
Group and charity
Unrestricted Designated
Restricted
2020
2020
2020
£
£
£
Fund balances at 31 December 2020 are
represented by:
Tangible assets
-
447,737
-
Investments
316,654
-
-
Current assets/(liabilities)
(83,836)
144,974
62,551
Long term liabilities
(4,940)
(45,000)
-
227,878
547,711
62,551		 TotalUnrestricted Designated
Restricted
2020
2019
2019
2019
£
£
£
£
447,737
-
479,997
-
316,654
296,545
-
-
123,689
(110,840)
34,153
73,488
(49,940)
(6,468)
-
-
838,140
179,237
514,150
73,488		 Total
2019
£
479,997
296,545
(3,199)
(6,468)
766,875

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

25 Operating lease commitments

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

Group
Within one year
Between two and five years
Charity
Within one year
Between two and five years		 2020
£
10,292
4,433
14,725
2020
£
-
-
-		 2019
£
12,779
14,725
27,504
2019
£
-
-
-

26 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2020 2019
£ £
Aggregate compensation 122,637 119,872

During the year a donation of £nil (2019 - £15,388) was made by Coltman Warner Cranston LLP to the Institute. L Coltman, a trustee, is a partner in this law firm.

The trustees are elected from the members of the charity. They therefore have transactions with the charity in the normal course of the charity's business, including membership fees and participation in training. These transactions are on the same terms as for other members.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

27 Subsidiaries

These financial statements are consolidated charity financial statements for Chartered Institute of Credit Management and its subsidiary.

Details of the charity's subsidiaries at 31 December 2020 are as follows:

Name of undertaking
Registered		 Nature of business Class of % Held % Held
office shares held
Direct		 Indirect
CICM (Services) Limited
UK		 Educational courses and
Ordinary
100.00
training
28 Cash generated from operations 2020 2019
£ £
Surplus/(deficit) for the year 71,265 (5,497)
Adjustments for:
Investment income recognised in statement of financial activities (5,892) (6,776)
Loss on disposal of tangible fixed assets 558 -
Fair value gains and losses on investments (17,749) (26,523)
Depreciation and impairment of tangible fixed assets 35,962 58,257
Movements in working capital:
Decrease/(increase) in stocks 1,202 (43)
Decrease/(increase) in debtors 22,277 (67,117)
(Decrease)/increase in creditors (48,762) 186,386
Cash generated from operations 58,861 138,687
29 Analysis of changes in net funds
At 1 January Cash flows At 31 December
2020 2020
£ £ £
Cash at bank and in hand 408,814 106,820 515,634
Loans falling due within one year - (5,000) (5,000)
Loans falling due after more than one year - (45,000) (45,000)
Obligations under finance leases (7,781) 1,313 (6,468)
401,033 58,133 459,166