Ch•rlty reglstratlon number 1162712 comnY reglstratlon number RC000877 (England and Wale•) CHARTERED INSTITUTE OF CREDIT MANAGEMENT ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023
CHARTERED INSTITUTE OF CREDIT MANAGEMENT LEGAL AND ADMINISTRATIVE INFORMATION Prosldont S Balster Trustees G Bullivant ITroasurorl L Colb))an N Jinks D Nolan (Chairl A Poole Chlef Executl S Chapple Charlty numb•r 1162712 Company number RC000877 Prlnclpal addro88 1 Accent Park Bakewell Road Orton South9ate Peterborough C4mbridgeshir8 United Kingdom PE2 6XS R•glster•d offk 1 Accent Park Bakewell Road Orton SoLrthgale Peterborough Cambridgeshire United Kingdom PE2 exs Audltor AzetsAudrt Seryices Westpoint Lynch Wood Peterborough CaMbridgh1rO United Kingdom PE2 6FZ nk•rn National sImin$t 8ank POBox4 69 Bridge Slmt Worksop Nottinghamshire United Kingdom S801DG
CHARTERED INSTITUTE OF CREDIT MANAGEMENT CONTENTS Pag• TN8lees' report Statemont of tru8lees' responsibilitles Independent aL110r,8 report Statement of financial activities 9-10 Balance sheet 11-14 Stement of cash flows 1S Notes to the financial st¢ments 16-32
CHARTERED INSTITUTE OF CREDIT MANAGEMENT TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees present theK annual report and finanaal $latemenl$ for the year ended 31 December 2023. The financial slalemenls have been prepared in accordance Mlh the accounting policies sel out in note 1 to the finanaal slalemenls and comply wlh the charty's goveming document. the Companies Act 2006 and 'AuntIng and Reporting by Charits.. Statement of Recommended Practice applicable lo eh8nties preparing their accounts in aeLordance with the FinanrAal Reporting Standard applicable in the UK and Republic of Ireland {FRS 1021 leffective 1 January 20191". Objective5 and actlvltlgs The In51ilute's charitable obj8ctivgs are 11) lo advance the education of the public conceming credit management and to encourage the study thereof. 121 lo establish 3 hardship fund for the benefit of member5 or former members of the institute allowing the institute lo make payments andlor assist such members or fomier members or Ihgir dependanls who are in conditions of need hardship ¢y distress. The main actiVitS undertaken in relation to th•se 0.CtiveS ar•.. Being the centre of expertise for credit management. Raising awareness of the impact of late payment and workn'ng with govemmenl and other business bo(kgS to drive a change in culture Gaining universal recognition that sound credit management is vital lo business. Maintaining relev8nl and up-lTrdale qualifi¢aty'ons and 0Upational standards. Making best pracb.ce advice available lo business and the wtdor Community Being recogni5ed and respected as the voice of the profession. Supporting the career development of all people who work in credit management. Improving skills and standards through a growng membership. Continuously improving ils produets and services and being the firsl-choice provider. Promoting credit management through lotsl, nats'on81 and international neNvorks. The trustees have paid due regard to guidance issued by thg Charity Commission in dèciding what activities the ch8rity shId undert8ke. Achlovoments and performance During 2023 the Inslilute.. Collaborated with business organisalions and the media lo provide information and education on basi credit management principlès lo th¢ wider business wmmunty. Continued the promotion ol the benefits of good credit management through webinars, roadshows and 20+ Corporate Partnerships. Continued lo increase recognition of bèst practice through the development and grh of ils CICMQ quality accreditation scheme through which organisalions have been renIsed. This is being achieved by active engagement al grass roots level In conjunction with corporate atlainmenl. Continued lo provide and improve ils range of Ofqual regulated qualificab'ons in Credit Management. Held meetings of the forward thinking and thought-leading Think.Tank considering and discussiNJ current issues and trends faang the profession, and commissioning research among the credit prolession to liform discuswon and debate. Centr31isgd the funding ol branch actsvity lo HO lo better suppcrft voluntary branch committees and target scarce resource in line with corporate objectives. Completed the project to replace the current membership dats system wth a product that both improves the experience for our members and generate internal efficiencies. The current website was replaced by a fulty integrated platform that gives members improved access to resources and greater self-seryice. The Inslitule measures ils achievements and performancÈ using a range of KPIS and SLAS. These indude bul are not limited to the analysis of membership numbers, measurement of member retention rates and tsrgeled response times to member conlatx Activity on social media channels is also keenly measured. and the Inslilule monitors Ovorage by third party organisalions of 118 activty.
CHARTERED INSTITUTE OF CREDIT MANAGEMENT TRUSTEES. REPORT (INCLUDING DIRECTORS, REPORTI (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Flnancial revlew The nel expendilurg of thè group for the 12.monlh period was1£49.9751, reducing lolal charity funds to £1.095.878 al 31 December 2023. The trading subsidiary returned a profit of £312.899 which was gift aided lo the charity. Reserves Policy.. Much of the income received and generated by the Institute is of an unrestricted natu, but certain restricted funds and reserves are recognised within the COUnt$. 11 is the Institute's poIY lo relain a level of general reserve that lakes in lo account future capital investment. unexpected maintenance expenditure and, in the ovent of a winding down ol the Institute's aclivilies. SLrfieient reserves lo develop, dgliver and award the Inslilule's qualificab'ons. At 31 December 2023 the level of general reserve of £221,753 was below the level deemed lo be sufficient lo meet these criteria The Trustees fully recognise and are commrtted lo dosing this gap, which has reduced over the coUe of 2023. by managing capital investment together wlh careful cost management. Member Support Fund.. This was sel up by the Institute to help members or forrner meMr$ of the Insl¢tule, or their dependants. in need, hardship or distress. Applications for assistance are considered by a Member Support Fund Committee which is Compris of four Vice Presidents Iprevious Chairs) of the Insts'tule. Payments Idalling £342 were made dLtring the period. Funds in IICM. This is surplu5 funds donated by the IICM on its winding up and is ring fenced for development of the Ireland branch of CICM. Investment Policy and Financial Retufns." Under the Inslitule's Charter and By-laws the Executive Board has the power lo invest, as rt thinks fil. any monies not immediately required after considering the CharlS future spending commitments and planned capital investment. Current investment policy demands a proportion of surplus funds as designated by the trustees from lime to lime are held in readily realisable investrnenls designed to generate a return in tho short lo medium term that will al least mainlain the real value ol the asset. The charrty maintains an operation81 register of iisk which is reviewed and updated on a regular basis. Possible risks identrfied indude Economic downturn. Compelilor adiwty. Inclusion, equalty and diversity. Health & safety. Apprenliceships. Cyber security. Each risk is scored aeLording lo polenli81 impact and likelihood of owirrence. Appropriate actions are recorded in the risk register for each risk identified and rnonitored until implemented. The Executive Board delegates day-tO-d8y responsibility for risk management lo the Chief Executive who has responsibility for identifying and evaluats'ng ri$ks and implementing appropriate ntrolS. Plans for future periods The Inslilule'$ objectsves for the future continue as previousty, and speeific plans include". Continuing lo promote lo businesses ils CICMQ quality accredrtation scheme which identifies and recognises best practice in credit management. Continue to pul our members al the forefront of all we do by focussing on the delivery of excepticnal member value. Working with government lo identify opportunities where il can support and advise on policy direclitin. Continuing the review and development of ils etjucation scheme, qualifications and systems. Providing Ihoughl-leadership in credit management through the CICM Think-Tank. Increasing rnarketing and PR activity to raise awareness of the importance of effthe cash fl¢)w management among the wider business community. Continuing to develop virtual learning. Growing ihe CICM Member Panel, a group of CICM members, customers and credit professional$ across industries and countries, providing feedback, input and idea5 on current and proFosed products and services, membership benefi15, training and qualifications, and govemment consultations.
CHARTERED INSTITUTE OF CREDIT MANAGEMENT TRUSTEES. REPORT (INCLUDING DIRECTORS. REPORT) {CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Structure, governancg and management The charity was incorporated as a Royal Charter company on 1 January 2015 (Company Number RC000877 Charity Number 11627121. The members of the Executive Board are the directors of the charitable company and its trustees for the purposes of tharity law. They are elected by the Advisory Council for a period of years and meet quarterty. New Iruslees are provided wlh an indudion pack outlining their duties and responsibilities. Ongoing Iruslee training is provided from lime lo lime. There are commillees dealing with the benevolent fund. education, and technical matters. 11 is Ihe Executive Board's role lo delemine the overall directs'on and development of the charity through good govemance and effe1ve strategic planning. The Executive Board is alxj responsible for safeguarding and protlIng the assets of the charity, identifying ils principal business nsks, and ensuring that appropriate systems are in place for Iheir management and miligalion. In addition, the Exeeulive Board oversees the admission and conduct of members, also the procedure al general meetings of the Inslitule. The EXelIve Board delegates day-Io-<lay responsibility for governance. strategic planning, risk management and general day-lo-day operations lo the Chief Executive. The Chief Exe¢utive is appointed by the Executive Board. The Institute has a wholty owned subsidiary, CICM (Servicesl Limited, which provides credit related services including training, events, and the supply of learning rnalerials. The accounts show the consolidated posrtion of both mpanies. The subsKliary gifts all Its profits to the charity. As a means of meeting its principal objectives, the InstilLrte runs branches throughoLrt the United Kingdom. Each of these branches is 8 geographie grouping of CICM membets who elect a committee lo promote the InslilLrte al local level, lo provide meelirKJs of an educational and training nature, lo encourage the exchange of professional views ben people working in credit management and lo provide a netsvork of help. advice. and support. rnberS of branch committees act in a voluntsry capacity and operate within guidelines sel by the Executive Board. In relab'on lo the aclivilies of the Inslilule as a whole, the £ value of the voluntary work is not a significant percentsge. The tru$lees, are also the directors for the purpose of company law, and who served during the year and up to the dale of signature of the ffinancial statements were". G Bullivanl (Treasurer) L Collman N Jink5 D Nolan {Chairl A Poole P Rice (Resigned 31 December 20231 None of the Iruslees has any beneficial intsre51 in the company. All of the trustees are members of the company and guarantee lo contribute £1 in the event of a winding up. Quallfylng thlrd party Indemnlty provlslons The charity provides qualfying third paty indemnity insurance for the b8nefrt of directors and trustees. The pay and remuneration of key management personnel {Chief Execulivel 1$ delemiined by the Iruslees laking into account performance and benthmarked data for the sector. Auditor In accordance with the company's articles. a resolution pioposing that A2els Audit Services be ieapw'nted as auditor of the company will be put at a General Meeting.
CHARTERED INSTITUTE OF CREDIT MANAGEMENT TRUSTEES. REPORT IINCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees, report was approved by the Board of Trustees. D Nolan {Chairl Dale..
CHARTERED INSTITUTE OF CREDIT MANAGEMENT STATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 DECEMBER 2023 The trustees. are 81s0 the directors of Chartered Institute of Credit Management for the purpose of company law, are responsible for preparing the Truslees. Report and the financial stslemenls In aecordance wlh applicable law and United Kingdom Accounting Stsndards Iunited Kingdom Generally Accepted Acccmjntsng Practi1. Company Law requires the Iruslees lo prepare financial statements for each financial year which give o true and fair view of the slate of affairs of the charity and of the incoming resources and applicats'on of resour$. including the income and expendf(ure, of the chantable company for that year. In preparing these financial stslemenls, the Iruslees are required to.. select suitable aOUntIng policies and then apply them consistently., - observe the methods and principles in the Charities SORP., - make judgements and estimates that are reasonable and prudent., slate whether applicable UK Accounting Stsndards have been followed, subject to any material departures disclosed and explained in the fin8na81 statements,. and prepare the financial statements on the goirKJ concem basis unless il is inapproprtale lo presume that the charity wll eonlinue in operation. The trustees are re$ponsible for keeping adequate accounting records that disdose wlh reasonable aceuracy at any time the financial position of the charrty and enable them lo ensure that the financial statements comply th the Companies Act 2006. They are also responsible for safeguarding the assets of the Charity and hee for taking reasonaUe 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 Credf( Management Ithe '¢harily'l for Ihe year ended 31 December 2023 which comprise the Group Statement of Financial Activities. the Group & Parent Charitable Company Balance Sheet's, the Group Cash flow Statement and the notes lo the financ1 slalemenl5. including a summary ol significant accounting policies. The finaneial reporting framework that has teen applied in Iheir preparation is applicable law and United Kingdom Accounting Standards, Including Financial Reporting Stsndard 102 The Financial Reporting Stsndard applicable in the UK and Republic of Ireland Iunrted Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements". give a true and fair view of the state of the Group and Parent charitable company'5 affairs as at 31 DeceMer 2023 and of ils incoming resources and application of resources. for the year then ended,. have been properly prepared in acrdanCe with United 'nge Generally Accepted Accounting Practi,. and have been prepared in accordance with the requirements of the CompaniesAct 20C6. Basls for opinion We conducted our audit in accordance with Inlernalional Standards on Auditing IUKI IISAS IUK}l and applicable law. Our responsibililies under those Standards are further described in the Audrforfs responsibilrfies for Ihe 8udil ol the financial slalemenls Section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant lo our audit ol the financial statements in the UK, including the FRC'S Ethical Standard, and we have lulffilled our other ethical responsibilities in accordance wrth these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Concluslons relating to golng concern In auditin9 the financial stalemenls, we have eonduded that the trustees. use of the going concem basts of counting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating lo events or condition5 that. individually or colkclively, may cast significant doubt on the charty's ability lo continue as a going ncem for a period ol al least Nvelve months from when the financial slatemenls are aulhorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are deseribed in the relevant sections of this report. Other Inforniation The other information comprises the infomialion induded in the 8nnual report other than the fInarla1 statements and our auditor's report Ihereon The Iruslees are responsible fer the other information contained wlhin 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 Ihereon. Our responsibility is lo read the other infomalion and, in doing so, consider whether the other information is maleria51y inconsistent wlh the financial slalements or our knowledge obtained in the course of the audit, or otherwise appears lo be materially misstated. If we identify such material inconsistencies or apparent matenal misslalements, we are required to determine whether thi5 gives rise to a materfjl misstatement In the financial statements themselves. If. based on the work we have performed, we conclude that there is malerkql misslalemenl of this other infomalion. we are required to report that fact. We have nothing to report in this regard Matters on which we are requlred to report by exception We have nothing lo report In respect of the followng matters in relation lo which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if. in ou¥ opinion. the informats'on given in the financial slalemenls is inconsislenl in any malerHI respe¢l with the trustees. report, or sufficient accounting records have not been kept., or the financial ststemenls are not in agreement with the accounting records. or we have not received all the information and explanations we require for our audit.
CHARTERED INSTITUTE OF CREDIT MANAGEMENT INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHARTERED INSTITUTE OF CREDIT MANAGEMENT Respon$lbllltle$ of trustees As explained more fully in the ststemenl of trustees, respon9bililies. the trustees. who are also the dirtorS 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 delemiine is necessary to enable the preparation of financial statements that are free from material misstalemenl. whether due lo fraud or error. In preparing the finanual statements, Ihe trustees are responsible for assesstng the charity's ability lo continue as a going concern, disclosing, as applicable, matters related lo going concern and using the going concem basis of accounting unless the trustees either inlend to liquidate the charitsble company or lo cease operations, or have no realistic alternative bul lo do so. Auditorfs respon$ibilitle$ for the audlt of the flnanclal statements have been appointed as audito¥ under seciion 144 01 the Charitie5 Ad 2011 and report in accordan with the Act and relevant regulations made or having effect therevnder. A further description of our responsibilities is available on the Financial Reporting Counctl's website al.. hts.'li www.frc.org.uklauditorsresponsibililies. This description forms part of our audrtor's ieport. Exlent to which the audit was considered capable of detscting irrngularities, Includlng fraud Irregularibes. including fraud, a instances of non.compliance with laws 8nd regulations. We design procedures in line wlh our responsibilities, outlined above and on the Financial Reporting Counal's website, lo delecl material misstatements in respect of irregularities, Including fraud. We obtain aj UF4Jate our understsnding of the entity, ils activities, rts control environment. and likely future developments, including in relation lo the legal and regulatory framework applicable and how the entity is complying with Ih8t framework Based on this understanding, we identfy and assess the risks of material misstalemenl of the financial slalemenls, whether due lo fraud or error, design and perfomi audit procedures responsive lo those risks, and obtain audit evidence that is sufficient and appropriate lo provide a basis for our opinion. This includes nsiderth'on of the risk of acts by the enlily that were contrary lo applicable laws anil regulations, incjuding fraud. In response to the risk of irregularities and nonwcompliance vthh laws and regulations, includirrfJ fraud, we designed procedures which Induded.. Enquiry of management and those charged th govemance afound actl1 and potential litigation and claims as well as actual, suspected and alleged fraud., Reviewing minutes of meetings of Ih05e Charged with govemance". Assessing the extent of compli8nce with the laws and regulations consldered to have a direct material effect on the financial statements or the operations of the enlily through enquiry and inspeelion,. Reviewing financial statement disclosures and testing lo supporting documentation to assess complrance with applicable laws and regulations., Perfomiing audil work over the risk of management bias and override of controls, including testing ot journal entries and other adjustments for appropriateness. evaluating the business rationale of 5ignrficant tronsactions outside the normal Urse of business and reviewing accounting estr'mates for indicators of potential bias. Because ol the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading lo a material misslalement in the financial statements or non-compliance with regulation. This nsk increases the mole that eompliance with a law or regujalion is removed from the events and transath'ons reflected in the finanaal statements, as we will be less likely to become aware of instances of noTrcompliance. The risk ol not delecling a material mis$lalemenl resulting from fraud is higher than for one resulling from error. as fraud may Involve collusion, forgery, intentional omissions, misrepresentations, or the override of inlemal o)ntrol.
CHARTERED INSTITUTE OF CREDIT MANAGEMENT INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF CHARTERED INSTITUTE OF CREDIT MANAGEMENT Use of our report This report is made solely to the charity's trustees, as a body, in accordance with part 4 of the Charities (Aeeounts and Reportsl Regulations 2008. Our audit work has been undertaken so that we might slate to the charity's trustees those matters we are required to state to them in an auditor's report and for n¢ other purpose. To the fullest extent permitted by law, we do not accept or asstjme responsibility to anyone other than the charity and the tharity's trustees as a body, for our audit work, for this report, or for the opinions we have formed Mr Mark Jackson FCA DChA (Senlor Statutory AudStorl for and on behalf of Azets Audlt S&rvicey Chartèred Accountants Statutory Audltor WestKK)inl Lynch Wood Pelerborough Cambridgeshire United Kingdom PE2 6FZ Azels Audit Services is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as audrtor of a company under section 1212 of the Companies Act 2006.
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CHARTERED INSTITUTE OF CREDIT MANAGEMENT CONSOLIDATED BALANCE SHEET AS AT31 DECEMBER 2023 2023 2022 Nots8 Flx•d •$$gts Intanglbl¢ 8s$el$ Tangible asset8 Investmenls 13 14 16 180,367 634,332 676,391 289,167 814,699 965,558 Curront •$s•ts Stocks Deblors Cash al bank an¢J in hand 16 17 3,542 207,828 551,936 3,324 185,201 535,792 763.308 724,317 Cr•dltorn: amounts falllng due wlthln on• yoar {466.348} 1516,9481 Net cJJrrent 888ets 298,958 207,369 Totsl as80ts l•$$ curr•nt Ilabllltl•8 1,111,857 1.172,927 ¢redltorn: amounts falllng due after more than one year 19 115.779} 127,0741 Nol ass•ts 1,095,878 1,145.853 Income fund• R•strict•d fund5 Designated fvnds Unrestricted funds 59,426 814,699 221.753 59,202 846,140 240,511 23 24 1,095,878 1,145.853 11
CHARTERED INSTITUTE OF CREDIT MANAGEMENT CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2023 The company is entitled lo the exemptien from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2023, atthough an audit has been carried out under section 144 01 the Charities Aet 2011. The directors acknOedge their responsibilth'es for complying with the requirements of the Compaties Act 2006 wlh respect lo accounts'ng records and the proparalion of financial statemenls. These financial statements have been prepared in accordance with the provisions applicab lo companies subject to the small e mpanies re9iffle. The financi oY/.o3.1.7024 tements were approved by the Trustees on ... . GBU nt Trusteev Treasurerl D Nolan (Chairl Trustsg Company RegIStraOn No. RC000877 12
CHARTERED INSTITUTE OF CREDIT MANAGEMENT BALANCE SHEET ASAT31 DECEMBER 2023 2023 2022 Flxed ass•ts Intsngible assets Tangible assets Investments 13 14 15 180,367 634,332 100 676,391 289,267 814,799 965,658 Curr•nt ass•ts Slo¢k$ Debtors Cash al bank and In hand 16 17 3.542 64.552 551.936 3.324 81.172 535,792 620,030 620.288 Credltor8: amounts f4111ng du• wlthln on• year 18 (323,172 1413,0191 Net current as$ 296.858 207.269 Total assets less current Ilablllll 1,111.657 1,172,927 Cr•dltorn: amount8 falllng due ift•r more thaft on• yo•r 19 115.779) (27,0741 Net a•s•ts 1,095,878 1,145,853 Income fund• Restricted funds Designated funds Unrestrlded ftJnd$ 22 23 59,426 814,899 221,753 59,202 846,140 240,511 1,095.878 1,145,8S3 13-
CHARTERED INSTITUTE OF CREDIT MANAGEMENT BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2023 The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the yeaf ended 31 December 2023, although an audit has been rried out under section 144 of the CharitiesAcl 2011. The directors acknwledge their responsibilities for Complying with the requirements of the Companies Act 2006 with respeet lo accounting records and the preparation of financial ststements. These financial statements have bèen prepared in aecordance wfth the provisions applicable to companies subjed to the small c mpanies regime. The financi temenls were approved by the Trustees on . oY/.03.1.2024 GBUI nt, TrusteÈKi Treasurer) D Nolan (Chairl Trustso Company Reglstratlon No. RC000877 14-
CHARTERED INSTITUTE OF CREDIT MANAGEMENT STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 2022 Not08 Cash flow8 from op•ratlng a¢thilti Cash (absorbed byllgenerated from operations 28 {85,220} 55,178 Invntlng actlvltlo• Purchase of intsn9ible assets Purchase of tangible fixed assets Proceed$ from disposal of investnwnls Investment Income re¢elv•d (186,8501 12,7381 289,187 13.7>3 (198,9351 5.368 N•t Gash gen•r•t•d froml{us•d In} Invmtlng a¢tlvttl 113,375 1193,567) Flnanclng actlvltl Repayment of bank loans Payment of obligations under finan¢e lea80$ 110,0541 11,957) 110,0001 11,7421 N•t ca•h us•d In Ilnanclng actlvltl•8 {12,0111 111,7421 Net InCreal{de¢rea9èl In cash and ¢ash ulvalents 16,144 (150,1311 Cash snd rash equivalents al beginning of year 535,792 685,923 Cash and cash •qulval•nts at •nd of year 551,936 535,792 15-
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng pollclgs Charity information Chartered Institute of Credit Management is a private company limited by guarantee incorporated in England and Wales. The registered Offi is 1 Accent Park, Bakewell Road, Orton Southgale, Pelerborough, Cambridgeshire, PE2 6XS, United Kingdom. 1.1 A¢countlng conventlon The financial statements have been prepared in aecordance with the charty's governing document, the Companies Act 2006 and 'Accounting and Reporting by Charities. Ststemenl of Recommended Practice applicable to charities preparing Iheif accounts in accordance with Ihe Financial Reporting Slandald applicaL)le in the UK and Republic of Ireland IFRS 102) leffective 1 January 20191" The charity is a Public Benefit Enlily as defined by FRS 102. The financial slalemenls are prepared in sterling, which is the fun¢tional currency of the charity. Monetary 8mounls in these financial statements are rounded lo the nearest £. The financial slalemenls have been prepared under the historical cost ¢onventton. The prinapal accounting policies adopted are set out below. 1.2 Golng concern At the lime of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources lo continue in operational existence for the foreseeable future. Thus the Iruslees contsnue lo adopt the going mncem basis of a¢ntIng in preparing the finanaal slalements. 1.3 Charitable funds Unreslricled funds are available for use al the discretion of the trustees in furtheran¢e of their charitable objectives. Reslricled funds are subject to specific conditions by donors as to h¢)w they may be used. The purp)ses and uses of the restricted funds are sel out in the notes to the financial stalemenls. Endowment funds are subject lo specific conditions by donors that the capitsl must be maintained by the charity. 1.4 Incomè Income is recognised when the charty is legally enlilled to it after any pertorm8nce condrtions have been mel, the amounts can be measured reliably, and it 15 probable that income will be received. Cash donations are recognise<l on receipt. Other donations are recognised once the charity has been notified of the donation. unless performance conditions require deferral of the amount. Incoffle lax recoverable in relation lo donations received under Gift Aid or deeds of covenanl is reeognised al the lime of the donation. Legacies are recognised on receipt or otherwise if the charty has been notified ol an Impending distribution, the amount is known, and receipt Is expected. If the amount is not known, the legacy is treated as 8 conlingenl asset. Membership fees received by the charity are reeognised on reeeipl. A proviwon is made in the aOunts for the costs as50cialed with providing a monthly magazine to members for the remaining period of their membership. The element of the membership income that relates lo Iraining is recognised when the training is delivered. 16-
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 A¢¢ounting pollcles Icontlnuedl 1.5 Expendlture Expenditure is reeogniseil once there is a legal or constructive cbligation lo transfer economic benefit to a third party. il is probable that a transfer ol economic benefits will be required in settlement, and the amount of the obligatn can be me8sured reliably. Expenditure is classrfied by activity. The costs of each activity are made up of the lolal of dir1 costs and shared costs. including support costs involved in undertaking each activity. Direct costs attributable lo a single activity are allocated directly to that actwity. Shared costs sthich contribute lo more than one activity and support costs which are not attributable to a single activity a apportioned betr4een those activities on a basis eonsistent with the use of resources. Central staff costs are albcaled on Ihe basis of lime spent, and deprectalion charges are aNoc8ted on the portion of the asset's use. All eypendilure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. whe costs cannot be directly attributed lo particular headings they have been allocated lo activities on a basis consistent wlh use ol resources. lil Expenditure by subsidiary includes training & edueational services exp*nditure. lill Services lo members expenditure includes membership, examinations, Credit Management magazine, advertising, committee services and publicity expendrture. liiil Branch adivilies include all branch expenditure. livl Benevolent Fund expenditure includes Benevglenl Fund grants and scholarships. Ivl Support costs are those incurred in connection wlh services and adminislralion enabling the day-toqlay functioning of the charity. Ivil Governance costs include relevant legal, trustee, committee and audit expenditure. 1.6 Intanglble flxed assets other than goodwlll Intangible assets acquired separately from a business ale recognised at cost and are subsequently measured at eosl less accumulated amO.$allon and aumUlated impairment losses. Amortisalion is recognised so as lo lte off the cost or valuation of assets less their residual values over their useful lives on the following bases". Software development 20% straight line 1,7 Tanglble fixed assets Tangible fixed assets 8re initially measured at cost and subsequenty measured al eL)st or valuation, net of depreciation and any impaimienl losses. Depreaalion is recognised so as lo write off the cost or valuation of assets less their residual values over their useful lives on the followng bases.. Freehold land and buildings Fixtures and ffttings Computers 2% slraighl line 1 S% straight line 25% straight line The gain or loss arising on the disposal of an asset is detemined as the differenee behNeen the sale proceeds and the carrying value of the asset. and is recognised in the ststemenl of finanual activities. 1.8 Flxed asset inveslments Fixed asset investments are initialty measured at Iransaetion price excluding Iranwlion costs, and are subsequently measured al fair value at each Teporting dale. Changes in fair value are recognised in nel incomellexpenditurel for the year. Transath'on costs are expensed as incurred. 17-
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Accountlng policies (Continuodl 1.9 Impairment of Ilxed assets At each reporting end dale, the charity reviews the carrying amounts of its tangible and intangible 8ssels lo 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 eslimaled in order lo determine the extent of the impairment loss lif any). 1.10 Stocks Sl¢xks a slated al the lower of cost and estimated selling price less costs lo complete and sell. Cost comprises direct materials and, where applicable. direct labour costs and those overheads that have been ineurred in bringing the stocks lo their present location and condition. Items held for dislribuli¢Jn al no or nominal consderation are rneasured the lower of replacement cost and cost. Nel realisable value is the eslimaled selling price less all estimated cosis of eomplelion and costs lo be incurred in markelir@, selling and distribution. 1.11 Cash and cash equlvalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-lemi liquid investments with original maturities of three months or less. and bank overdrafts. Bank overdrafts are shovm within borrowings in current liabilities. 1.12 Flnan¢lal Instruments The charity has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 'Olher Financial Instrurnenls Issues. of FRS 102 to all of ils finanaal inslrumenls. Financial instruments are recognised In the charity's balance sheet when the charity becomes paty to the contractual provisions of the instrument. Financial assets and liabililies are offset. wth the nel amounts presented in the finoncial stslements, when there is a legally enforceable right to sel off Ihe reeognised amounts and there 1$ an intention lo settle on a nel basis or lo realise the asset and settle the liaknlily SimultaneouY. Basie financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction priee including transaction costs and are subsequently carried al amortised cost u&ng the effective interest method unless the arrangement conslilules a financing transaction, where the transaction is measured al the present value of the future receipts discounted al a market rate of interest. Financial assets classrfied as receivable wthin one year are not amortised. 8asi¢ financial liabilitles Basic financial liabililies, including creditors and bank loans are inilia11y recognised at transaction price unless the arrangement consb'tule5 a financing transaction. where the debt instrument is measured at the present value of the future payments di%ounted al a market rate ol interest. Financial liabilities ¢la5sified as payable within one year are not amortised. Debl instruments are subsequently carried al amortised cost, using the effective interest rale method. Trade creditors are obligations lo pay for 9oods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities rf payment is due wrthin one year or less. If not, they are presented as non-¢urTenl liabilities. Trade credf(ors are reeognised inil¢ally al transaction price and subsequently measured at amortised cost using the effective interest method. Detrycognition of fjnaneial Ilabilities Financial liabilities are derecogni5ed when the charity's contractual obligations expire or are discharged or cancelled. 18-
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED FOR THE YEAR ENDED 31 DECEAIBER 2023 Accountlng pollcles Icontlnuedl 1.13 Lease$ Leases are clasfied as finance leases whenever the terms of the lease transfer subslanlially all the risks and rewards of ownership to the lessees. All other leases are Classified as operating 5ease$. Assets held under finanee leases are recognised as assets al the l¢)wer of the assets fair value al the dale of ineeplwjn and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as Con$t1ng of capitsl and Inte$t elements. The interest is charged lo nel incomellexpendilurel for the year so as to produce a constwt perle rate of interest on the remaining balance of the liability. 1.14 Fund accountlng Unrestricted funds are available to spend on 8clivities thil further any of the purposes of the Inslilule. Designated funds are unrestricted funds of the Inslilule which the trustees have decided al their discretr'on to sel aside lo use for a specffic purpose. Restricted funds are donations for which the donor has specified are to be solely used for partiCLAar area$ of the Institute's work. Critlcal atcountlng estimates and Judgements In the application of the charity's accounting policies. the trustees are required to make judgements, eslimales and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and asswiated assumptions are based on historical experience and other factors that are considered lo be relevant. Actual results may der from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting eslimales are recognised in the period in which the estimate is revised where the rewsion affects (nly that period, or in the period of the revision and fLrture periods where the revision affects both current and future periods. Donations and l•gacle$ Unrestrlcted Restrlcted funds funds Totsl Reslricled fund5 2023 2023 2023 2022 Donations and gifts 8.775 566 9,341 97 Other tradlng actlvltles Unrestrlcted Unrestricted fund$ funds 2023 2022 CICM Iserviosl Limited 733.615 880,253 19-
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Charltabl• actlY1t Total 2023 Total 2022 Advertislng. subs and royalties Education and examinations Membership subscription¥ Other in¢ome 52,661 248,818 663,749 10 51,276 181,756 640,956 5,308 96S,238 879,296 Inv•stmont Incom• Total T¢)tal 2023 2022 Investments Inlere$l receivable 4,940 8,856 4,322 1,046 13,796 5,368 .20-
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Charltsblg actlvltloty 2023 2022 Expenditure by subsidiary Investment management fe•$ Advertising, subs and royalties Educatson and examinations Committee services and publicity Bran¢h a¢livity 8enevolent fund 420,714 2,135 148,551 404,337 213.908 466.326 2,453 137,172 396,167 219,337 5.883 2,565 342 1,189,987 1.229,903 Share of 8UPPOrt ¢osl$1s•8 not• 81 Share of governance costs Isee Mte 8) 581,362 12,656 493,807 10,750 1.764,005 1,734,460 Analysh by fund Unrestricted fvnds Desunaled fund$ Re$lrtcled fvnd$ 1,712,383 51.280 342 1.681,401 50.494 2,565 1.764.005 1.734,460 .21
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 Support Costs Support Gov8mance costs costs 2023 Support Governance eosls ¢osts 2022 Depreaalion Governance Legal and profesgonal Propety expenses Insurance Printing and stslionery Postage Telephone & IT Staff costs Staff expenses Other 51.280 51,280 12.656 12,586 24.181 5.663 10,401 8.354 82.549 335,940 20,987 9,421 45.524 45,524 10,750 14.9021 30,732 3,540 7,730 8,913 58,915 312.453 21,937 8.5 12.656 10,750 12.586 24.181 5.663 10.401 8,354 82,549 335,940 20.987 9,421 14,9021 30,732 3,540 7,730 8,913 58.915 312,453 21.937 8,965 561.362 12.656 574,018 493,807 10,750 504.557 Analysed betsveen Charitable activrties 561.362 12,656 574,018 493.807 10,750 504.557 Governan¢e eosls includes payments lo the audrtors of £10,54012022- £10,4001 for audit fees. Trustees A lolal of £3,948 12022 £2.5401 was paid lo Iruslee5 in respect of reimbursed expenses for Ir8vel and subsistence when carrying out business on behalf of the Inslilule. None of the trustees have been pad any remuneration or received any other benefits from any employment wlhin the Inslrtule.
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 10 Employees Nurnr of •mpk>y••$ The average monthly number of employees durlng the year was.. 2023 NuMr 2022 Number 24 21 Employment costs 2023 2022 Wages and 8alarles Social security costs Other pension costs 792,469 84,782 36.311 765.233 77,637 34,341 913,582 877,211 The number of employees whose annual remuneration was £60.000 or more were.. 2023 Numb•r 2022 Number £60,001- £70,000 £80.001 £90,000 £90.001- £1¢)0.000 11 Tax•tlon The InstrtLrte is a Tegistered charity and the trustees consider that its income dogs not fall %wihin the scope ol corporation tax. 12 N¢t ga1nllllSI on InveJbnent• Unr¢•trl¢led funds 2023 Totsl 2022 Revaluation of invgslments 17,960) (32,1021 -23-
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS ICONTINUED} FOR THE YEAR ENDED 31 DECEMBER 2023 13 Intsnglble flxed assets Tolal Cost At 1 January 2023 Additions - Softw8 development- separately a¢quired 186.850 At 31 December 2023 186,850 Amortlsation and Impalm)ent At 1 January 2023 Amortisalion charged for the year 6,483 At 31 Dernber 2023 6.483 Carrying amount At 31 December 2023 180.367 At 31 Detsmber 2022 14 Tanglblo flxed assets Group and Charlty Freehold Flxtures and Computers land and fltting$ buildlngs Total Cost At 1 January 2023 Additions 503,186 176,189 226,203 2,738 905.578 2,738 At 31 December 2023 503.186 176.189 228,941 908,316 Depreclatlon and Impalrment At 1 January 2023 Depreciation charged in the year 9,941 10.064 19,683 26,428 199,563 8,305 229.187 44,797 At 31 December 2023 20.005 46,111 207,868 273.984 Carrylng amount At 31 December 2023 483,181 130,078 21.073 634.332 Al 31 December 2022 493,245 156,5C6 26.640 676,391 -24-
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 16 Flx•d a8i•t Investrnonts Group Llst•d Inv•stm•nt In Inv•stments subsldlary Total Cost or valuatlon At 1 January 2023 Di$SalS 289.167 1289,1871 289,167 1289,1671 At 31 De¢ember 2023 Carrylng arnounl Al 31 December 2023 Al 31 December 2022 289,167 289,167 Charlty Llsted Investment In Inv•stmonts $ubsldlary Totsl Cost or valuatlon At 1 January 2023 Disposals 289.167 {289.1671 100 289,287 1269.1671 At 31 December 2023 100 11x1 Carrylng amount Al 31 December 2023 100 100 Al 31 Oecember 2022 2B9,167 100 289,267 16 Stocks Group and Charlty 2023 2022 Finished goods and goods for resale 3.542 3,324
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 17 Dobtor8 Group Amounts fJlllng due wlthln oft• year. 1023 2022 Trade debtors Prepayments arKI a¢crued income 120.064 87,764 114.017 71.184 207,828 185.201 Charlty Amounts falllng due wlthln on• y••r: 2023 2022 Trade debtors Prepayments and accrued incomo 18,242 48,310 44.514 36,658 64,552 81.172 18 Credltoys: amounts f•lllng due wlthln on• yfrar Group 2023 2022 Notss Bank loan$ Obligations undef finance leases Other laxalion and soctal security Tradè ¢redilors Other credrtors Accruals and deferred income 10,000 1,241 35,842 34,492 10,000 1.957 44,359 86,721 4,874 369,037 21 384,773 466,348 518,948 Charlty 2023 2022 Bank loan$ Obligations under finance leases Other laxalion and Soal security Trade CljItorS Amounts owed lo subsdlary undertakings Other credrtors Accrual$ and deferred income 10,000 1,241 35,842 21,383 104,764 10,000 1,957 44,359 49.972 161.796 4,874 140,C61 21 149,962 323,172 413.019
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 19 Crodltord: amounts falllng due after moro than on• year Group and ¢h•rlty 2023 2022 Nots• Bank loans Obllgatlon8 under finance leases 15.779 25,833 1,241 21 15,779 27,074 20 Loans and overdrafts Group and ¢hartty 2023 2022 Bank loans 25,779 35,833 Payabte within one year Payable after one year 10.000 15,779 10,000 25,833 21 Flnan¢¢ lea80 ¢ommllrnent• Group and charlty Future minimum lease payments due urKler finance leases: 2023 2022 thin one year thln tsvo artd five years 1,241 1.957 1.241 1.241 3,198 It is the charity's policy to leaso certain equipment under financ•16ases. The average lease term is 5 years. The average effective borrowing rale foi the y8ar was 33%. Inleresl rates are fixed al the contract dale. All leases are on a fixed r8paym8nl ba51$. -27-
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 22 Restrfctgd funds The income of the group 8nd charity includes restricted funds comprising the following unexpended balae5 of donalions and grants held on trust for specific purposes. Movement In funds In¢omlng Resour¢e8 8alanco •t resources expend¢d1 January 2023 Movement in funds Incomln9 Re80urc resour¢•s expendgd Bal¥nce at 1 Janu*ry 2022 8alance at 31 Dec8mb8r 2023 Member support fund Ireland branch 58,550 97 12,5651 56,082 566 1342 56,306 3,120 3,120 3,120 61.670 97 12,5651 59,202 566 13421 59,426 The Member Support Fund was sel up by the Institute lo provide assistsnce to members or fornier members of the Instilule, or their dependanls, in need, hardship or dislre$s. Applications for assistsnce a CA)nsidered by the Member Support Fund Committee which is comprised of four Vice Presidents. The Ireland branch fund was sel up from surplus funds donated by the IICM on its winding up and is ring fend for development of the Ireland branch of CICM. 23 Deslgnaled funds The income of the group and charity includes the following designated funds which h8ve been sel aside 1 of unrestricted funds by the trustees for specific purposes.. Balance at Resources 1 January 2022 exF4nded Trnn8f8r Balance at Rosoyr¢es 1 Jènuary 2023 expended Transfo Balan¢• at 31 Do¢omber 2023 Branch Fixed asset fund 46.017 126,6831 415 19,749 {19,7491 540.410 123,8111 159,792 676.391 151,2801 189,588 814,699 infrastructure lund Office fil-out fund 150,000 150,000 1150,0001 199.623 1199,6231 936.050 ISO,494) 139,4161 846,140 151,2801 19,839 814,699 The branches are funded partly by the Institute and partly by fundraising ath'vrties carried out by the bfanches. During the year all branch accounts were closed and funds Iiansferred. -28-
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 23 D•slgnatsd funds Icontlnuod) Tho fixod ass•1 fund has b¢•n sel up lo a$$isl in idonlfying those funds that ar• not free funds and il presents the net book value of langibk assets. The IT Infrastructu fund was set up for the purcha$¢ of IT equipment and devolopm•nt of the Yb518 which has now been completed. Tho office fil-oul fund was for the fit-out of the rth premises which is now complete.
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CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 2S Operating lease commitments Al the reporting end date the charity had oulstsnding commitments for future minimum lease payments under non<ancellable operaing leases. which fall due as follows.. 2023 2022 thin one year Bee9 t0 and five years 5,601 15.139 5,601 20,740 20,740 26,341 26 Rolatsd party transactlons Remuneration of key mana9ernent petsonnel The remuneration of key management personnel is as follows. 2023 2022 Aggregate compensation 338,622 299,405 Key management petsonnel consists of 5 employees12022- 61. The trustees are elected from the members of the charity. They therefore have transactions with charty in Ihe normal course of the Charity's business, including membership fees and participation in training. These transactions are on Ihe same terms as for other members. During the year a donation lolalling £8,02512022.. £Nill was received from Collman Warner Cranston LLP, an entity in whith a Trustee has an interest. 27 Subsidiaries These finanual ststement$ are consolthled charty finan¢ial stslements for Chartered Institute of Credit Management and ils subsidiary. Details of the charity's subsKliaries al 31 Dember 2023 are a$ follow5.. Name of undertaklng Registered office Nature of buslness Class of sharos hgld % Held Dlrecl Indlrect CICM (Services) Limrted UK Educational courses and training Ordinary 100.00 -31
CHARTERED INSTITUTE OF CREDIT MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2023 28 C•sh g•neratsd from oporatlons 2023 2022 Deficit for the year 149,9751 11,5481 Adjustments for.. Investment in¢ome recognised in statement of financial actlvrtie$ IGainllloss on dlsposal of tangible fixed asset$ Fair value gains and1088es on inve51menls Depreciation and impaiment oftangible fixed assets {13,7961 {5,3681 26,759 27.913 38,196 51,280 Movements in working capital.. Ilncreasel in stocks {In¢rea$e)/decrease in debtors IDecrea8el in er•ditors 12181 122.6271 {49,8841 (3311 12,861 141,3041 Cash14bsorb8d by)Igeneratsd from operatlons 185,2201 55,178 29 Anatysl$ of ¢hang•$ In not funds At 1 Janry 2023 Ca•h Ilo** At 310o¢•mb•r 2023 Cash at bank and in hand 535,792 16,144 551,936 Loans falling due thin one year Loans falling due after more than one year ot4Igallons under finance lea8es 20 20 21 {10.0001 125,8331 3,198} 110,0001 115,7791 11,2411 10.054 1,957 496,761 28,155 524,916