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2021-08-31-accounts

Charity Registration No. 1180718

Company Registration No. 11263261 (England and Wales)

INSTITUTE FOR THE FUTURE OF WORK

(IFOW)

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2021

INSTITUTE FOR THE FUTURE OF WORK (IFOW) LEGAL AND ADMINISTRATIVE INFORMATION

Trustees N W Climer CBE FREng (Co- Chair)
Sir C A Pissarides (Co- Chair)
M T Chowdhury (Appointed 9 October
2020)
M E Dalton
Dr N Danhash
Dr A O Imafidon MBE
H Mountfield
G J Nuttall OBE
D Barone Soares (Appointed 14 October
2020)
Secretary A Thomas
Charity number 1180718
Company number 11263261
Principal address Somerset House
Strand
London
London
WC2R1LA
Registered office Fieldfisher
Riverbank House
2 Swan Lane
London
EC4R 3TT
Independent examiner Rogers Spencer
Newstead House
Pelham Road
Nottingham
NG5 1AP
Bankers Metro Bank PLC Metro Bank PLC
1 Southampton Row
Holborn
London
WC1B 5HA

INSTITUTE FOR THE FUTURE OF WORK (IFOW) CONTENTS

Page
Trustees' report 1 - 8
Independent examiner's report 9
Statement of financial activities 10
Balance sheet 11
Notes to the financial statements 12 - 21

INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 AUGUST 2021

The Trustees present their annual report and financial statements for the year ended 31 August 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 memorandum and articles of association incorporated 19 March 2018 as amended by certificate of incorporation on change of name dated 30 May 2018 , 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 Institute for the Future of Work (IFOW) is an independent charitable trust with a mission to shape a fairer future through better work. We put people first, with a focus on those most vulnerable to the adverse effects of fast-paced change. We seek to advance understanding of the impacts of technology on work and develop practical solutions that will promote the wellbeing and prosperity of people across the country. The charitable objects of the organization as set out in the articles of incorporation are as follows:

i) Research and policy development ii) The development and testing of new and improved ways of working and support for work iii) Recommendation on improving all aspects of work, and iv) Advocacy

In addition, the Board of Trustees resolved that the activities of the Charity should include:

To deliver our mission, we:

INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Programme Priorities

IFOW work across three broad programme areas:

Changing Work: We will shape a fairer future through better work by ensuring decision makers understand and value the role of good work to promote wellbeing and prosperity across the country. We will work to ensure that the creation of sustainable, good work is integrated into plans for the post-pandemic rebuild.

Power: We will shape a fairer future through better work by ensuring the changes brought by technological transformation reduce rather than exacerbate structural inequalities. We will work to ensure that new technologies are deployed in ways that promote people’s equality, dignity and autonomy at work.

People: We will shape a fairer future through better work by embedding people’s experience into our research and responses to technological disruption to ensure a transition that puts people first. We will promote our partnership approach and work to see it adopted in the design and deployment of new technologies, and to support workers through transition more widely.

IFOW activities are regularly reviewed to ensure that they further the aims and objects of the organization. The trustees review IFOW activities on an ongoing basis and have regard to the Charity Commission guidance on public benefit.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charity should undertake. An update to trustee training on Charity law and guidance was last undertaken by David Goepel of Edwin and Co in June 2021.

INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Achievements and performance

The 2020/2021 Financial Year, running from September 2020 to August 2021, was a pivotal year for IFOW as the organisation continued to respond to the double disruption of technological transition and the Covid-19 pandemic.

IFOW continued to respond to the COVID-19 pandemic, which saw investment, reliance and use of technology and technology platforms accelerate, whilst concurrently, exposing and exacerbating inequalities in access, terms, and quality of work. IFOW developed a rapid response programme which supported new research and policy proposals around work and labour market trends focused on workers most vulnerable to the economic and social effects of the pandemic.

The organisation also secured its first research grant, a £1.3m grant from the Nuffield Foundation Strategic Fund to further explore the impacts of technological disruption on people and communities. The Pissarides Review will pilot a new, cross-disciplinary approach to evaluate and respond to technological disruption across the country. This 3-year collaboration, with partners at Imperial College and Warwick Business School, will model competing futures for work, with a focus on building capabilities, strengthening resilience, and reducing inequalities through better work.

In January 2021, IFOW started the process of developing a new Strategy with Trustees, to respond to and meet the challenges faced in the UK around work which were accelerated by COVID-19. This focused IFOW’s three programmes priorities (Changing Work, Power and People) towards building an evidence base through practicefocused research and designing practical solutions to drive action from decision makers at a national and local level. The Strategy, which published on the website, has now been approved for the period until 2025.

In accordance with IFOW’s charitable objectives all research reports and events (where possible) are made publicly available via the IFOW website. IFOW undertakes policy engagement and advocacy work that further its charitable objects, strictly adherent to relevant regulatory guidance from the Charity Commission on the activities of charitable think tanks, and on campaigning and political activity. IFOW is independent of any political party, and the organisation is careful to ensure that engagement with political actors remains balanced across political parties

The following details the activities of the IFOW over the last financial year, structured against the core IFOW workstreams:

INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Changing work

IFOW has continued work with cross party MPs and other key stakeholders to ensure that work (in particular access to good quality jobs) is a central part of discourse and policy in crisis response, recovery and levelling up.

Our advocacy work this year has included: initiating and briefing MPs on the first future of work debate in parliament since the pandemic; tabling amendments around how Financial Services could advance Good Work; supporting, giving evidence and making recommendations to the DWP Changes into the World of Work inquiry; and running a new all-party parliamentary inquiry into use of artificial intelligence at work.

Good Work Monitor

In January 2021, IFOW published and launched the Good Work Monitor (GWM), a framework to support access to good work. The monitor is the first holistic measure of the availability of good work in each local authority area of England outside London and found a significant relationship between good work and health outcomes as measured by life expectancy, COVID-19 mortality, and the prevalence of Diseases of Despair. The Monitor also identifies 4 pillars of good work to enable exploration of the relationship between the underlying conditions for good work and access to good work: prosperity, demand, education, and equality. The GWM provides measures to allocate funds and evaluate policy, for use as local, regional, and national economic and public strategies are developed in response to the pandemic and builds the case to prioritise and embed good work standards into recovery support, planning and procurement.

Good Work Charter

IFOW has continued to apply the Good Work Charter (GWC) as an organising framework and advocacy tool to achieve a principles-driven approach to Good Work. In particular, we have used the GWC to demonstrate the need and opportunity to embed Good Work through business models, as well as across government departments, targeting professional accreditation and membership bodies. In partnership with the Chartered Institute for Personnel and Development (CIPD) and the Carnegie Trust, IFOW created guidance for business leaders on introducing technologies in ways that uphold the Good Work principles. EUnited Robotics, the membership body for the European robotics industry, developed a robotics specific version of the GWC, offering guidance on technology design to advance good work. designed to make work better. With Community, IFOW co-created practical guidance for union representatives and employers on a partnership approach to introducing technology at work.

IFOW has also developed a first prototype of GWC self-assessment tool for the All Party Parliamentary Group, to be used to filter access to the parliamentary group, on the request of the Chairs. Civil society, including the Better Work Network, and combined authority partners have contributed to the development of the tool.

The Pissarides Review

In April 2021, IFOW secured funding from the Nuffield Foundation to undertake the first national Disruption Index to map and track technological disruption across the UK; a firm-level survey to explore the motives, barriers, and effects of introducing automation technologies; and deep dives into work and welfare challenges and opportunities into 8 locations in England, Wales and Scotland. IFOW will conduct an institutional analysis and build relationships with key policy actors to bring this research to life through and beyond the project, which will provide IFOW with a substantial evidence base for longer term programmes.

INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Power

IFOW has continued to spearhead the debate on Equality and AI at work, showing why and how historic patterns of inequality will be projected into the future without evaluation and appropriate action; and proposing novel mechanisms for accountability and to establish new individual and collective digital rights

Equality Taskforce

Chaired by Helen Mountfield QC and involving two regulators (Information Commissioner’s Office (ICO) and Equality and Human Rights Commission (EHRC)), the IFOW Equality Task Force force published their final report Mind the Gap, in November 2020.

This report demonstrated gaps in legal protection and accountability and laid the ground for legislators, researchers, campaigners and policy-makers to work towards filling them. A series of practical solutions and pathways were identified in the report, including an Accountability for Algorithms Act to work to improve standards and behaviours, highlighting key human decision-making roles, the need for rigorous evaluation and assessment at the earliest possible opportunity, and likely adverse impacts at work if action is not taken.

The findings and research of the Equality Taskforce, were fed into the Centre for Data Ethics and Innovation (CDEI) Bias Review. IFOW developed a first prototype of an AI Equality Impact Assessment which has been subject to peer and public consultation and shared with both the CDEI and EHRC.

IFOW and partners will continue to advance the Accountability for Algorithms Act and work with the CDEI, Office of AI, EHRC and other key stakeholders as regulation and guidance on AI is developed in 2022.

People

Policy and technology are often developed and deployed without understanding the views of people on the front line. IFOW’s partnership approach seeks to highlight the benefit of involving workers in the introduction of new technologies and models how they can participate in its design.

Social Policy Innovation Accelerator (SPIA)

IFOW developed and adjusted their Policy Innovation Accelerator model for remote use, applying it in interviews and workshops where workers are supported to share their experiences, identify key challenges, and collaborate to identify practical action points.

Social distancing restrictions limited the ability to apply SPIA to some challenges, so IFOW incorporated learning from SPIA into our theory of change and a wider range of research methodologies. Through the pandemic, IFOW also refocused on supporting traditional and new forms of partnership working between unions, employers, and government.

Amazonian Era Report

I n May 2021, IFOW launched the Amazonian Era Report. The findings were based on interviews pre and post pandemic with workers in sectors subject to particularly fast-paced change (retail, logistics, transport, extended to other service work and manufacturing). IFOW identified profound, qualitative shifts in the nature, quality, and value of work as the ethos, practice and tools of the ‘gig’ economy spread to traditional sectors. Vast and invisible algorithmic systems were found to be increasingly controlling access, terms and quality of work and reshaping workplace relationships and business models by means of the ‘human data cycle’.

Key issues highlighted in the report include: worsening employment terms and conditions with workers moved to agency or less secure contracts on poorer terms (‘liquidisation’); the incremental erosion of human skills and individual development through the creation of GPS-style instruction manuals set and delivered by algorithmic systems (‘fungibility’); the intensification of work as people are set ‘superhuman’ targets by the system based on the performance of the fastest worker (‘intensification’); and new forms of workforce surveillance and control, fed by controlling the increasing and excessive pools of human data (‘the human data cycle’). Key findings and analysis from the Amazonian Era have been adopted and published in several independent publications since the report, including the All Party Parliamentary final report on the New Frontier: AI at Work.

INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Responding to COVID-19

IFOW continued to respond to the wide reaching impact of the pandemic on work, securing Covid response grants to undertake research on those most exposed and at risk due to the disruption the pandemic caused to the labour force.

Spotlight Reports

Building on the Spotlight Report on Self-Employed workers released in March 2020, IFOW published a further three spotlight reports highlighting the voices of workers who were made vulnerable or had their working lives disrupted by the pandemic. These reports focused on essential workers, furloughed workers, and remote workers and were circulated directly to our parliamentary and specialist networks.

To support the launch of the Spotlight report on Self-Employed Workers, in January 2021 IFOW partnered with Community Union to run a workshop with self-employed workers on how their working hours were structured following the pandemic. The workshop was delivered using the SPIA model to highlight diverse experiences and worker voice in policy development. The session highlighted the particular challenges contract and selfemployed workers face, especially relating to a lack of control over the hours and shift patterns they work, and unpaid administrative work..

Grimsby Project

From October 2020, IFOW spoke to Grimsby residents from a diverse set of roles, all of whom were experiencing transformation directly through the pandemic. In our report ‘The Grimsby Project: We need to talk about work’ IFOW used research and design-thinking methods centred around the everyday experience of working people to learn about their experiences and stories. The report highlighted that although the residents have aspiration for good, local work, they lack clear support and pathways to achieve these aspirations, as there are currently no real spaces, institutions or methods to enable the people of Grimsby to talk about their future of work, as individuals looking to change their lives, or as communities.

Future of Work APPG Secretariat

IFOW has continued to act as Secretariat for the APPG for the Future of Work, whose purpose is to bring together parliamentarians, industry and civil society to advance understanding of the challenges and opportunities of technology among policy makers and develop practical solutions to future of work challenges. The group was very active in Parliament, running a new inquiry on surveillance, to examine accountability for new forms of corporate control and hosting an event on Good Work and Levelling Up curated by IFOW to support the launch of the Good Work Monitor.

External profile and Communications

Strengthening communications was a core focus for the organisation this year. IFOW sought to share more of its work, hosting regular events and growing its specialist network, engaging a wider audience with its research and policy recommendations.

A regular newsletter was launched which is sent to 900 (approx.) mostly specialist subscribers, this is supported by an updated and re-launched the website which better profiles our work, publications and impact.

The website also hosts a dedicated Future of Work Knowledge Hub, a service which collates and shared different types of resource and perspectives (videos, academic articles, policy reports, podcasts) with a view to become the home for disseminating research and ideas relating to the future of work to a policy and non-expert audience.

INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

Financial review

IFOW has continued working towards developing a diverse and sustainable funding base. This has been significantly boosted by the recently secured £1.3m Nuffield Foundation strategic fund grant, although a broad donor pool remains an imperative to ensure IFOW can fund the whole strategy.

This year, in response to the pandemic the organisation successfully secured COVID-19 Response grants from OSF, London Community Fund and the National Lottery for work and research into the impacts of the pandemic on work. This ensured we could highlight worker voice and perspectives during the fast-paced changes caused by the pandemic.

IFOW secured new grant funding from the Joseph Rowntree Charitable Trust to further work on development of affirmative, corporate duties, and from the ICO to develop a toolkit and guidance for unions and employers on auditing AI systems.

IFOW continues to be grateful for the continued support of its Founders’ Circle, our group of private supporters who generously donated £120,000 of core funding this year, as well as attending quarterly development meetings and facilitating the growth of IFOW’s network.

All restricted funding is used solely for its intended purpose. IFOW research programmes are independent from all unrestricted funding the organisation receives, and chosen solely on their relevance to IFOW’s mission and charitable objects.

Reserves Policy

Taking into consideration the guidance issued by the Charity Commission, the policy of the IFOW trustees is to hold sufficient funds in reserve to cover three months of IFOW’s forecasted total operating expenditure, or 25% of total annual planned operating expenditure.

This chosen level of reserves will allow IFOW to meet its liabilities in the event of a reduction in income, whilst ensuring that the majority of funds are directed towards advancing the charitable purposes of the organization. This reserves target will remain under review by the trustees throughout the year and will be reviewed annually.

IFOW closed the 2020-21 financial year holding reserves of £139k, of which £82k was held for restricted purposes. The Trustees consider these reserve levels to be adequate to fund the activities of the charity for the foreseeable future.

Structure, governance and management

IFOW is a charitable company limited by guarantee, incorporated on 19 March 2018 and registered as a charity on 15 November 2018.

IFOW was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association, IFOW's name changed from The Future of Work on 30 May 2018, when IFOW was granted institute status.

All trustees give their time voluntarily and receive no benefits from the charity.

IFOW has continued to strengthen its infrastructure during 2020-21 by developing policies, procedures and ways of working which will ensure the organisation is capable of delivering on larger programmes of work with maximum efficiency and impact.

INSTITUTE FOR THE FUTURE OF WORK (IFOW) TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

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:

N W Climer CBE FREng (Co- Chair) Sir C A Pissarides (Co- Chair)

M T Chowdhury M E Dalton Dr N Danhash Dr A O Imafidon MBE H Mountfield G J Nuttall OBE D Barone Soares

(Appointed 9 October 2020)

(Appointed 14 October 2020)

Appointment, Removal and Meeting of Trustees

Candidates for trustee positions are assessed by incumbent trustees and meet informally with senior management. Recommended candidates are considered by all incumbent trustees and are appointed by unanimous approval of all trustees, with no maximum limit on the number of trustees that can be appointed. Correspondingly, a trustee can be removed by a resolution passed unanimously by the other trustees. All trustees are members and Directors of the charity for Companies House purposes.

IFOW’s affairs are normally conducted under the supervision and leadership of the Director, Anna Thomas. Trustee meetings are held quarterly, and staff members are in frequent communication with the trustees throughout the year and maintain a close working relationship together.

Key Management Personnel

The management of IFOW is led by Director Anna Thomas. The Director acts in a full-time capacity within IFOW, who is responsible for day-to-day management. Responsibilities are delegated by the Director to the Head of Programmes, Head of Research, and Head of Finance and Resources.

Trustee Induction and Training

As and when new Trustees are recruited, a full induction into the charity is planned. This includes, but is not limited to, providing key policies and procedures and training on these as appropriate.

Funds held as custodian trustee

Neither IFOW nor any of its trustees are acting as custodian trustees.

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

N W Climer CBE FREng (Co- Chair)

Trustee

16 May 2022

INSTITUTE FOR THE FUTURE OF WORK (IFOW) INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF INSTITUTE FOR THE FUTURE OF WORK

I report to the Trustees on my examination of the financial statements of Institute for the future of work (the charity) for the year ended 31 August 2021.

Responsibilities and basis of report

As the Trustees of the charity (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charity’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act) . In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent examiner's statement

Since the charity’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I am a member of , which is one of the listed bodies.

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Melvin Bailey FCCA DChA for and on behalf of Rogers Spencer Chartered Accountants Newstead House Pelham Road Nottingham NG5 1AP

Dated: 19 May 2022

INSTITUTE FOR THE FUTURE OF WORK (IFOW) STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 AUGUST 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£
Income and endowments from:
Donations and legacies
3
126,000
220,178
Other income
4
4,175
-
Total income
130,175
220,178
Expenditure on:
Raising funds
5
3,575
-
Charitable activities
6
157,662
132,800
Total resources expended
161,237
132,800
Net (outgoing)/incoming
resources before transfers
(31,062)
87,378
Gross transfers
between funds
32,810
(32,810)
Net income/(expenditure)
for the year/
Net movement in funds
1,748
54,568
Fund balances at 1
September 2020
55,640
27,084
Fund balances at 31 August
2021
57,388
81,652		 Total Unrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
346,178
106,000
122,828
4,175
-
-
350,353
106,000
122,828
3,575
-
15,101
290,462
131,723
94,002
294,037
131,723
109,103
56,316
(25,723)
13,725
-
2,107
(2,107)
56,316
(23,616)
11,618
82,724
79,256
15,466
139,040
55,640
27,084		 Total
2020
£
228,828
-
228,828
15,101
225,725
240,826
(11,998)
-
(11,998)
94,722
82,724

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.

INSTITUTE FOR THE FUTURE OF WORK (IFOW) BALANCE SHEET

AS AT 31 AUGUST 2021

Notes
Fixed assets
Tangible assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within
one year
12
Net current assets
Total assets less current liabilities
Income funds
Restricted funds
13
Unrestricted funds		 2021
£
50,571
119,818
170,389
(34,834)		 £
3,485
135,555
139,040
81,652
57,388
139,040		 2020
£
-
110,197
110,197
(32,452)		 £
4,979
77,745
82,724
27,084
55,640
82,724

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 August 2021.

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.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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 16 May 2022

N W Climer CBE FREng (Co- Chair)

Trustee

Company Registration No. 11263261

INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

Charity information

Institute for the future of work is a private company limited by guarantee incorporated in England and Wales. The registered office is Fieldfisher, Riverbank House, 2 Swan Lane, London, EC4R 3TT.

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 charity has taken advantage of the provisions in the SORP for charities applying FRS 102 Update Bulletin 1 not to prepare a Statement of Cash Flows.

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. 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.

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.

INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

1 Accounting policies

(Continued)

1.5 Expenditure

Liabilities are recognised as soon as there is a legal or constructive obligation committing the charity to the expenditure. All expenditure is accounted for on a cash basis and has been classified under headings that aggregate all the costs related to the category.

Cost of raising funds relate to those specific costs incurred in organising and staging fundraising events and seeking voluntary contributions together with attributable support costs.

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs comprise those costs associated with meeting the constitutional and strategic requirements of the charity and the audit fees and costs linked to strategic management of the charity.

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:

Fixtures and fittings 30 % Reducing Balance Computers 30 % Reducing Balance

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 the statement of financial activities .

1.7 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 ) .

1.8 Taxation

As a registered charity, the company is exempt from income and corporation tax to the extent that its income and gains are applied to charitable purpose only.

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 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
funds
funds
2021
2021
£
£
Donations and gifts
120,000
-
Grants
-
220,178
Other income
6,000
-
126,000
220,178
Donations and gifts
Founder's Circle
Members
30,000
-
Esmee Fairbaim
foundation
-
-
Goldman Sachs Gives
50,000
-
Deutsche Post
Foundation
40,000
-
The Quilter Foundation
Secure Futures Fund
-
-
Johnson Brothers & Co
(Lord Hodgson)
-
-
Jonathan Hall
-
-
120,000
-		 TotalUnrestricted
Restricted
funds
funds
2021
2020
2020
£
£
£
120,000
96,000
-
220,178
10,000
122,828
6,000
-
-
346,178
106,000
122,828
30,000
10,000
-
-
10,000
-
50,000
-
-
40,000
40,000
-
-
1,000
-
-
10,000
-
-
25,000
-
120,000
96,000
-		 Total
2020
£
96,000
132,828
-
228,828
10,000
10,000
-
40,000
1,000
10,000
25,000
96,000

INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

3
4
5		 Donations and legacies
Grants receivable for
core activities
The Health Foundation
Trust for London
Open Society
Foundation
Emerging Futures Fund
London Community
Joseph Rowntree
Nuffield
Other income
Furlough income received
Raising funds
Fundraising and publicity
Other fundraising costs		 -
-
-
-
-
-
-
-		 -
54,167
37,764
20,324
23,950
38,544
45,429
220,178		 -
54,167
37,764
20,324
23,950
38,544
45,429
220,178		 (Continued)
-
8,818
8,818
-
50,000
50,000
-
64,010
64,010
10,000
-
10,000
-
-
-
-
-
-
-
-
-
10,000
122,828
132,828
UnrestrictedUnrestricted
funds
funds
2021
2020
£
£
4,175
-
Unrestricted
Restricted
funds
funds
2021
2020
£
£
3,575
15,101
3,575
15,101

INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

6 Charitable activities

Cost of Cost of
Charitable Charitable
Activities Activities
2021 2020
£ £
Staff costs 181,498 142,317
Depreciation and impairment 1,494 2,134
Rent 10,952 14,158
Rates 300 502
Meeting room hire 435 1,896
Cleaning - 562
Telephone & Fax - 733
Stationery & printing 1,437 423
Travel & Subsitence 511 1,130
Subscriptions 4,231 1,386
Bank charges 201 240
General expenses 647 1,534
Other legal & professional 1,440 125
Consult ancy 64,589 50,033
Insurance 525 768
Wesbite development and publication costs 17,301 6,224
Entertainment 147 -
Recruitment 3,194 -
288,902 224,165
Share of governance costs (see note 7) 1,560 1,560
290,462 225,725
Analysis by fund
Unrestricted funds 157,662 131,723
Restricted funds 132,800 94,002
290,462 225,725

INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

7 Governance costs

Independent Examination Fees 2021
£
1,560
1,560		 2020
£
1,560
1,560

Governance costs includes payments to the independent examiners of £ 810 (2020- £ 810 ) for independent examination fees.

8 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charity during the year.

C Pissarides, one of the Trustees, was appointed as a consultant for the charity and received £5,200 in expenses for consultancy services on the Nuffield Project.

9 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs
Remuneration and key management personnel
The remuneration of key management personnel is as follows:
Aggregate compensation		 2021
Number
4
2021
£
164,444
13,162
3,892
181,498
41,501		 2020
Number
4
2020
£
128,792
10,583
2,942
142,317
44,000

There were no employees whose annual remuneration was £60,000 or more.

INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

10
Tangible fixed assets
Fixtures and
fittings
Computers
£
£
Cost
At 1 September 2020
1,524
6,904
At 31 August 2021
1,524
6,904
Depreciation and impairment
At 1 September 2020
937
4,006
At 31 August 2021
937
4,006
Carrying amount
At 31 August 2021
587
2,898
At 31 August 2020
838
4,141
11
Debtors
2021
Amounts falling due within one year:
£
Trade debtors
3,000
Prepayments and accrued income
47,571
50,571
12
Creditors: amounts falling due within one year
2021
£
Other taxation and social security
4,658
Trade creditors
1,772
Other creditors
811
Accruals and deferred income
27,593
34,834		 Total
£
8,428
8,428
4,943
4,943
3,485
4,979
2020
£
-
-
-
2020
£
21,025
-
6,867
4,560
32,452

INSTITUTE FOR THE FUTURE OF WORK (IFOW)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

13 Restricted funds

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

Balance at
1 September
2019

£
Trust for London
15,466
Open Society Foundation
-
The Health Foundation
-
Emerging Futures Fund
-
London Community Response
-
Joseph Rowntree Charitable Trust
-
Nuffield
-
15,466		 Movement in funds
Incoming
resources
Resources
expended
£
£
50,000
(24,385)
64,010
(78,007)
8,818
(6,711)
-
-
-
-
-
-
-
-
122,828
(109,103)		 Transfers
Balance at
1 September
2020

£
£
-
41,081
-
(13,997)
(2,107)
-
-
-
-
-
-
-
-
-
(2,107)
27,084		 Movement in funds
Incoming
resources
Resources
expended
£
£
54,167
(30,444)
37,764
(44,852)
-
-
20,324
(12,607)
23,950
(8,087)
38,544
(15,564)
45,429
(21,245)
220,178
(132,799)		 Transfers
Balance at
31 August
2021
£
£
-
64,804
21,085
-
-
-
(7,717)
-
(15,863)
-
(6,132)
16,848
(24,184)
-
(32,811)
81,652

INSTITUTE FOR THE FUTURE OF WORK

(IFOW)

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2021

13 Restricted funds

(Continued)

The Health Foundation

The purpose of the grant for the undertaking of a project called "A Charter for Good Work."

Trust for London

This fund is for the further development and application of IFOW's social policy innovation model, the delivery of policy projects and pilots, and the dissemination of resulting solutions and learnings to make work better and fairer in the retail and transport sectors in London.

Open Society Foundation

The purpose of the grant is to support the Institute for the Future of Work (IFOW) to develop four thematic areas of work in its response to future of work challenges.

Emerging Futures Fund

This grant is to help IFOW support low income workers and those on insecure contracts that are least optimistic about the future of work post COVID. As they are the least likely to be able to influence and shape it, this project seeks to amplify the voices of workers in Grimsby, at the sharp end of this disruption, to influence, shape national debates on 'levelling up' and 'building back better'.

London Community Response

This grant will help IFOW undertake research on the relationships between accelerated adoption of workplace technology under COIVID, and its hidden impacts on the dignity of work. It will draw on the lived experience of key workers and will focus on work-related tech rights, suitable for legal remedy. This is in response to the COVID19 emergency.

Joseph Rowntree Charitable Trusts

IFOW are seeking funding to develop new, affirmative, legal, corporate duties to ensure the use of Artificial Intelligence, Machine Learning and algorithmic systems used in workplaces help the workers instead of undermining their importance in the future.

Nuffield

This grant is to help IFOW with automation technologies and the effect it has on work and welfare through COVID-19.

INSTITUTE FOR THE FUTURE OF WORK (IFOW) NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 AUGUST 2021

14
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
August 2021 are
represented by:
Tangible assets
3,485
-
Current assets/
(liabilities)
53,903
81,652
57,388
81,652		 TotalUnrestricted
funds
Restricted
funds
2021
2020
2020
£
£
£
3,485
4,979
-
135,555
50,661
27,084
139,040
55,640
27,084		 Total
2020
£
4,979
77,745
82,724

15 Related party transactions

C Pissarides one of the Trustees, was appointed as a consultant for the charity as the Lead Investigator on a new project to be commenced during the current year. During the year, £5,200 (2020: £0) was accrued for consultancy services on the Nuffield project.