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2021-12-31-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 2021

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

LEGAL AND ADMINISTRATIVE INFORMATION

President S Baister
Trustees G Bullivant (Treasurer)
L Coltman
V Herd
P Holbrough
D Nolan (Chair)
P Rice
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 2021

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

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 2021 the Institute:

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

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 £309,261, increasing total charity funds to £1,147,401 at 31 December 2021. The trading subsidiary returned a profit of £305,041 which was gift aided to the charity.

Reserves Policy: Much 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 2021 the level of general reserve of £149,681 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 help 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 £1,430 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 2021 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 considering the Charity’s future spending commitments and planned capital investment. Current investment policy demands 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.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

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) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

The Institute has a wholly owned subsidiary, CICM (Services) 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 its profits to 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 Institute at local level, to provide meetings of an educational and training nature, to encourage the exchange of professional views between people working in credit management and to provide a network of help, advice 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 voluntary 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 to the date of signature of the financial statements were:

G Bullivant (Treasurer)

L Coltman

V Herd P Holbrough D Nolan (Chair) P Rice

None of the trustees has any beneficial interest in the company. All of the trustees are members of the company and guarantee to contribute £1 in the event of a winding up.

The charity provides qualifying third party indemnity insurance for the benefit of directors and trustees.

The pay and remuneration of key management personnel (Chief Executive) is determined by the trustees taking into account performance and benchmarked data for the sector.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

The trustees' r eport was approved by the Board of Trustees.

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

D Nolan (Chair)

08.03.2022 Dated: .........................

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

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 2021 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 CREDIT MANAGEMENT INDEPENDENT AUDITOR'S REPORT (CONTINUEDI TO THE TRUSTEES OF CHARTERED INSTITUTE OF CREDIT MANAGEMENT In respons& lo the risk of irregularities and non-compliance %Mth laws and regulations. including fraud, we designed procedures which induded-. Enquiry of management and those charged wth governance around actual and potential liligalion and claims as well as actual, SU$P•J¢led and alleged fraud., RevievAng minutes of meetings ol those charged with govemance., Assessing the extent of Compliance wlh the laws and regulallons considered to have 4 direct mal&rial effect on the financial stalemenls or the operations ol the entity Ihrough4nquiry and inspecliorn., Reviewing financial 51alement disclosures and testing 10 5UPPOrting documenlats.on to as8e89 compliance with applbcable lawg and regulations., Pertomiing audit work over the risk of management bias and override ol controls. including testing of journal entries and other adjustments for appropriateness. evaluating the business ralionale of signrficant Iransaclitsns outside the normal course of business and revithng accounting eslimatss lor indicators of potential bia8. Because of the inherent limitations of an audit. there is a risk that we wll not detect all irregularfties, including those leading lo a material misslalemenl in the financial statements or non-ecsrnpliance wlh regulation. This ri$k increases the more that compliance Mth a law or regulallon Is removed fr¢m the events and transa¢tions refl&cted in the financial stslemenls, a5 we will be less likely to become awaTe ol instances of non- compliance. The risk of not detecting a material misslalemenl resulting from fraud 15 higher than lor one resulting from error, as fraud may involve collusion, forgery, intenli¢nal omission$, misreprèsentations, or the override of intemal ￿ntrts1. Use ofour roport Thls report is made solely lo the chartty's trustees, as a body, in 8ccordanee with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might slate to the eharity's trustees those matter5 we are required to slate lo them In an audltors, repc>rt and for no other purptrse. Tg the fullest extent permitted by law, we do not accept or a$sume responsibility to anyone other than the charity

nd the ¢harfty's Iruslees as a body, for our aud51 work, for this report, tsr for the opinions we have forrned.

Mr Mark Jack•¢n FCA DChA IS•nlor Statutory Audltorl for and on bahalf of Azets Audlt Servlces Chart•r•d A¢¢ountsnts Statutory Auditor Ruthlyn House 90 Lin¢oln Road Peterborough United Kln9dom PE12SP Azet$ Audit Services 1$ eligible lor appointment as auditor of the charity by virtue of rts eligibility for appointment as audrfcor of a company under ol section 1212 of the Comp8nies Act 2006.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Designated
Restricted
funds
funds
funds
2021
2021
2021
Notes
£
£
£
Income and endowments from:
Donations and legacies
3
9,125
-
124
Charitable activities
5
832,512
-
-
Other trading activities
4
798,826
-
-
Investments
6
4,463
-
-
Other income
7
305,985
-
-
Total income
1,950,911
-
124
Expenditure on:
Charitable activities
8
1,571,703
71,179
1,005
Net gains/(losses) on investments
13
2,113
-
-
Net incoming/(outgoing) resources before
transfers
381,321
(71,179)
(881)		 TotalUnrestricted Designated
funds
funds
2021
2020
2020
£
£
£
9,249
54,191
-
832,512
758,060
2,001
798,826
778,474
-
4,463
5,842
-
305,985
-
-
1,951,035
1,596,567
2,001
1,643,887
1,486,822
47,293
2,113
17,749
-
309,261
127,494
(45,292)		 Restricted
funds
2020
£
-
-
-
50
-
50
10,987
-
(10,937)		 Total
2020
£
54,191
760,061
778,474
5,892
-
1,598,618
1,545,102
17,749
71,265

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

STATEMENT OF FINANCIAL ACTIVITIES (CONTINUED) INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Designated
Restricted
funds
funds
funds
2021
2021
2021
Notes
£
£
£
Net incoming/(outgoing) resources before
transfers
381,321
(71,179)
(881)
Gross transfers between funds
(459,518)
459,518
-
Net movement in funds
(78,197)
388,339
(881)
Fund balances at 1 January 2021
227,878
547,711
62,551
Fund balances at 31 December 2021
149,681
936,050
61,670		 TotalUnrestricted Designated
funds
funds
2021
2020
2020
£
£
£
309,261
127,494
(45,292)
-
(78,853)
78,853
309,261
48,641
33,561
838,140
179,237
514,150
1,147,401
227,878
547,711		 Restricted
funds
2020
£
(10,937)
-
(10,937)
73,488
62,551		 Total
2020
£
71,265
-
71,265
766,875
838,140

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 2021

Notes
Fixed assets
Tangible assets
14
Investments
15
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within
one year
19
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
20
Net assets
Income funds
Restricted funds
23
Designated funds
Unrestricted funds		 2021
£
£
540,411
317,080
857,491
2,993
198,062
685,923
886,978
(557,823)
329,155
1,186,646
(39,245)
1,147,401
61,670
936,050
149,681
1,147,401		 2020
£
£
447,737
316,654
764,391
4,149
229,310
515,634
749,093
(625,404)
123,689
888,080
(49,940)
838,140
62,551
547,711
227,878
838,140

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2021

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

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

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

8 March 2022

The financial statements were approved by the Trustees on .........................

.............................. .............................. G Bullivant (Treasurer) D Nolan (Chair) Trustee Trustee

Company Registration No. RC000877

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes
Fixed assets
Tangible assets
14
Investments
15
Current assets
Stocks
17
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within
one year
19
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
20
Net assets
Income funds
Restricted funds
23
Designated funds
Unrestricted funds		 2021
£
£
540,411
317,180
857,591
2,993
74,381
685,923
763,297
(434,242)
329,055
1,186,646
(39,245)
1,147,401
61,670
936,050
149,681
1,147,401		 2020
£
£
447,737
316,754
764,491
4,149
81,224
515,634
601,007
(477,418)
123,589
888,080
(49,940)
838,140
62,551
547,711
227,878
838,140

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2021

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

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

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

The financial statements were approved by the Trustees on ..... 8 March 2022 ....................

.............................. .............................. G Bullivant (Treasurer) D Nolan (Chair) Trustee Trustee

Company Registration No. RC000877

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

2021
Notes
£
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
30
Investing activities
Purchase of tangible fixed assets
(531,689)
Proceeds on disposal of tangible fixed
assets
728,572
Purchase of investments
-
Investment income received
4,463
Net cash generated from/(used in)
investing activities
Financing activities
Proceeds of new bank loans
-
Repayment of bank loans
(4,167)
Payment of obligations under finance
leases
(1,528)
Net cash (used in)/generated from
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		 £
(25,362)
201,346
(5,695)
170,289
515,634
685,923		 2020
£
(4,260)
-
(2,360)
5,892
50,000
-
(1,313)		 £
58,861
(728)
48,687
106,820
408,814
515,634

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

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 2021

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 2021

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 2021

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 Restricted
Total		 Unrestricted
funds funds funds
2021 2021
2021		 2020
£ £
£		 £
Donations and gifts - 124
124		 -
Furlough income 9,125 -
9,125		 54,191
9,125 124
9,249		 54,191
Other trading activities
Unrestricted Unrestricted
funds funds
2021 2020
£ £
CICM (Services) Limited 798,826 778,474

4 Other trading activities

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

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
2021
£
67,007
192,053
-
-
571,952
1,500
832,512
832,512
-
832,512		 Total
2020
£
56,309
120,936
2,001
6,250
571,985
2,580
760,061
758,060
2,001
760,061

6 Investments

Unrestricted
Restricted
Total
funds
funds
2021
2021
2021
£
£
£
Investments
4,406
-
4,406
Interest receivable
57
-
57
4,463
-
4,463
For the year ended 31 December
2020
5,842
50
Other income
Unrestricted
funds
2021
£
Net gain on disposal of tangible fixed assets
305,985		 Total
2020
£
5,506
386
5,892
5,892
Total
2020
£
-

7 Other income

Net gain on disposal of tangible fixed assets

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

8 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 9)
Share of governance costs (see note 9)
Analysis by fund
Unrestricted funds
Designated funds
Restricted funds		 2021
£
493,786
2,576
161,600
321,303
218,446
4,751
1,005
1,203,467
431,945
8,475
1,643,887
1,571,703
71,179
1,005
1,643,887		 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

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

9 Support costs

Support
costs
Governance
costs
£
£
Depreciation
16,428
-
Governance
-
8,475
Legal and professional
48,883
-
Property expenses
17,552
-
Insurance
4,760
-
Printing and stationery
10,453
-
Postage
9,348
-
Telephone & IT
71,662
-
Staff costs
234,013
-
Staff expenses
10,624
-
Other
8,222
-
431,945
8,475
Analysed between
Charitable activities
431,945
8,475		 2021
£
16,428
8,475
48,883
17,552
4,760
10,453
9,348
71,662
234,013
10,624
8,222
440,420
440,420		 Support
costs
Governance
costs
£
£
36,520
-
-
9,035
14,261
-
20,362
-
6,092
-
11,531
-
9,285
-
50,323
-
171,330
-
10,040
-
7,573
-
337,317
9,035
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

Governance costs includes payments to the auditors of £ 9,870 (2020- £ 9,450 ) for audit fees.

10 Trustees

A total of £821 (2020 - £432) 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 2021

11 Employees

Number of employees

The average monthly number of employees during the year was:

2021
Number
23
Employment costs
2021
£
Wages and salaries
711,003
Social security costs
65,851
Other pension costs
32,547
809,401
The number of employees whose annual remuneration was £60,000 or more were:
2021
Number
£70,001 - £80,000
-
£80,001 - £90,000
1		 2020
Number
22
2020
£
667,821
60,927
39,026
767,774
2020
Number
1
-

12 Taxation

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

13 Net gains/(losses) on investments

Unrestricted Total
funds
2021 2020
£ £
Revaluation of investments 2,113 17,749

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

14 Tangible fixed assets
Group and Charity Freehold Fixtures Computers Total
land and and fittings
buildings
£ £ £ £
Cost
At 1 January 2021 482,536 21,713 193,855 698,104
Additions 515,666 - 16,023 531,689
Disposals (482,536)
-		 (1,470) (484,006)
At 31 December 2021 515,666 21,713 208,408 745,787
Depreciation and impairment
At 1 January 2021 53,080 9,067 188,220 250,367
Depreciation charged in the year 7,238 3,257 5,933 16,428
Eliminated in respect of disposals (60,318)
-		 (1,101) (61,419)
At 31 December 2021 - 12,324 193,052 205,376
Carrying amount
At 31 December 2021 515,666 9,389 15,356 540,411
At 31 December 2020 429,456 12,646 5,635 447,737

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

15
Fixed asset investments
Group
Listed
investments
Investment in
subsidiary
£
Cost or valuation
At 1 January 2021
316,654
-
Valuation changes
426
-
At 31 December 2021
317,080
-
Carrying amount
At 31 December 2021
317,080
-
At 31 December 2020
316,654
-
Charity
Listed
investments
Investment in
subsidiary
£
Cost or valuation
At 1 January 2021
316,654
100
Valuation changes
426
-
At 31 December 2021
317,080
100
Carrying amount
At 31 December 2021
317,080
100
At 31 December 2020
316,654
100
16
Financial instruments
2021
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
317,080
17
Stocks
Group and Charity
2021
£
Finished goods and goods for resale
2,993		 Total
£
316,654
426
317,080
317,080
316,654
Total
£
316,754
426
317,180
317,180
316,754
2020
£
316,654
2020
£
4,149

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

18
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
19
Creditors: amounts falling due within one year
Group
Notes
Bank loans
21
Obligations under finance leases
22
Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income
Charity
Notes
Bank loans
21
Obligations under finance leases
22
Other taxation and social security
Trade creditors
Amounts owed to subsidiary undertakings
Other creditors
Accruals and deferred income		 2021
£
105,591
92,471
198,062
2021
£
29,483
44,898
74,381
2021
£
10,000
1,528
27,281
118,078
6,706
394,230
557,823
2021
£
10,000
1,528
27,281
66,193
197,970
6,706
124,564
434,242		 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

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

20
Creditors: amounts falling due after more than one year
Group and charity
Notes
Bank loans
21
Obligations under finance leases
22
21
Loans and overdrafts
Group and charity
Bank loans
Payable within one year
Payable after one year
22
Finance lease commitments
Group and charity
Future minimum lease payments due under finance leases:
Within one year
Within two and five years		 2021
£
35,833
3,412
39,245
2021
£
45,833
10,000
35,833
2021
£
1,528
3,412
4,940		 2020
£
45,000
4,940
49,940
2020
£
50,000
5,000
45,000
2020
£
1,528
4,940
6,468

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 2021

23 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 2020 resources expended
1		 January 2021 resources expended 31 December
2021
£ £ £ £ £ £ £
Benevolent
fund 62,868 50 (3,487)
59,431		 124 (1,005)
58,550
Ireland
branch 10,620 - (7,500) 3,120 - - 3,120
73,488 50 (10,987) 62,551 124 (1,005)
61,670

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 2021

24 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 2020

£
Branch
34,153
Fixed asset fund
479,997
IT infrastructure fund
-
Office fit-out fund
-
514,150		 Movement in funds
Incoming
resources
Resources
expended
£
£
2,001
(10,773)
-
(36,520)
-
-
-
-
2,001
(47,293)		 Transfers
Balance at
1 January 2021
Resources
expended
£
£
£
24,593
49,974
(4,751)
4,260
447,737
(16,428)
50,000
50,000
(50,000)
-
-
-
78,853
547,711
(71,179)		 Transfers
Balance at
31 December
2021
£
£
794
46,017
109,101
540,410
150,000
150,000
199,623
199,623
459,518
936,050

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.

The office fit-out fund has been set up for the fit-out of the new premises.

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

25
Analysis of net assets between funds
Group and charity
Unrestricted Designated
Restricted
2021
2021
2021
£
£
£
Fund balances at 31 December 2021 are
represented by:
Tangible assets
-
540,411
-
Investments
317,080
-
-
Current assets/(liabilities)
(128,154)
395,639
61,670
Long term liabilities
(39,245)
-
-
149,681
936,050
61,670		 TotalUnrestricted Designated
2021
2020
2020
£
£
£
540,411
-
447,737
317,080
316,654
-
329,155
(83,836)
144,974
(39,245)
(4,940)
(45,000)
1,147,401
227,878
547,711		 Restricted
2020
£
-
-
62,551
-
62,551		 Total
2020
£
447,737
316,654
123,689
(49,940)
838,140

CHARTERED INSTITUTE OF CREDIT MANAGEMENT

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

26 Capital commitments 2021 2020
£ £
At 31 December 2021 the charity had capital commitments as follows:
Contracted for but not provided in the financial statements:
Acquisition of property, plant and equipment 146,141 -
27 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 2021 2020
£ £
Within one year 6,932 10,292
Between two and five years - 4,433
6,932 14,725
Charity 2021 2020
£ £
Within one year 2,500 -
Between two and five years - -
2,500 -

28 Related party transactions

Remuneration of key management personnel

The remuneration of key management personnel is as follows.

Aggregate compensation
Key management personnel consists of 5 employees (2020 - 2).		 2021
£
248,418		 2020
£
122,637

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 2021

29 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 2021 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
30 Cash generated from operations 2021 2020
£ £
Surplus for the year 309,261 71,265
Adjustments for:
Investment income recognised in statement of financial activities (4,463) (5,892)
(Gain)/loss on disposal of tangible fixed assets (305,985) 558
Fair value gains and losses on investments (2,113) (17,749)
Depreciation and impairment of tangible fixed assets 16,428 35,962
Movements in working capital:
Decrease in stocks 1,156 1,202
Decrease in debtors 32,935 22,277
(Decrease) in creditors (72,581) (48,762)
Cash (absorbed by)/generated from operations (25,362) 58,861
31 Analysis of changes in net funds
At 1 January Cash flows At 31 December
2021 2021
£ £ £
Cash at bank and in hand 515,634 170,289 685,923
Loans falling due within one year (5,000) (5,000) (10,000)
Loans falling due after more than one year (45,000) 9,167 (35,833)
Obligations under finance leases (6,468) 1,528 (4,940)
459,166 175,984 635,150