Registered Charity Number: 1180741 and Company Number 11594672
## **ANNUAL REPORT and FINANCIAL STATEMENTS FOR**
**THE YEAR ENDED 31 December 2021**
## **About the Institute of Business Ethics**
The Institute of Business Ethics was established in 1986, as a registered charity. It is a not-for-profit organisation funded primarily by corporate, associate and individual supporters.
The charitable aim of the IBE is to “to advance public education in business ethics”, through leading the dissemination of knowledge and good practice.
To this end, the Institute assists organisations in building and strengthening their ethical culture, engaging with organisations in a wide variety of sectors, to discuss important ethical issues, and use their practical experience and knowledge to better establish and disseminate improved standards and best practice.
## **IBE Purpose:**
_To champion the highest standards of ethical behaviour in business_
## **Public Benefit**
The Trustees refer to the Charity Commission's general guidance on public benefit when reviewing the Institute’s aims and objectives and in planning our future activities. In particular, the Trustees consider how well our planned activities align with our stated charitable aims and objectives.
The IBE continues to operate as a not-for-profit organisation, ensuring that the funds we receive from our Supporters are put to best use through education, thought leadership and debate about business ethics. We are substantially dependent on our Supporters for our income and for the public benefit of our work and are enormously grateful for their continued support.
## **Status**
The Institute of Business Ethics was founded in 1986 and registered as an unincorporated charity in December 2000. As of April 2019, the Institute of Business Ethics is a registered charity and a Company Limited by Guarantee.
## **Strategy**
In December 2020 the IBE’s Board of Trustees approved a 5-year strategic plan which set the tone and foundations for a bold new strategy, establishing a base for future growth. The strategy redefined our objectives, setting new targets, reinvigorating our message and developing our programme to meet the new challenges ahead.
The strategic objectives are:
- Build our profile and enhance our ‘go to’ brand
- Engage more supporters, diversify our supporter base, and augment our services
- Expand our training and the scope of our webinars
- Initiate new thought-leadership and seek to engage our supporters more effectively to expand our research and knowledge base.
- More effectively market our range of services and products to both supporters and nonsupporters.
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## REPORT OF THE TRUSTEES
## **Message from the Chair**
On behalf of the IBE board, I am pleased to share this report of the institute’s work in 2021. Whenever I speak to outsiders about the IBE’s work to promote the importance of doing business ethically, the response is typically some variations along the lines of “that’s important! We need more of that!” We do! This is why as we start to build forward better after the pandemic and the massive dislocations of both economies and societies of the last two years, we want to persuade many more businesses to reflect on how they will create and maintain an ethical culture even as they adapt to changed patterns of work; new more hybrid forms of working; and more diverse workplaces. Based on our major _Ethics at Work_ study and our separate reviews of innovations in embedding ethical behaviours and how far the Codes of Ethics of the FTSE 100 largest companies listed on the LSE during 2021 are fit for purpose, we now want boards and senior managements of businesses to do three things:
- Take the time to discuss and define the _desired_ culture of their organisation in the future: how will it be different to pre-COVID19?
- Decide how the organisation will regularly measure the _actual_ culture.
- Innovate in how the organisation empowers and engages all employees to behave ethically.
This could build positively on the challenges and forced innovations of the last two-plus years.
Whilst occurring since the calendar year under review, I would be very remiss if I did not note the passing of Elspeth Howe in March 2022. I had the privilege of knowing and working with her at _Business in the Community_ back in the 1980s and 1990s. She was then and remained a tireless champion for equality: what we now call Diversity, Equity and Inclusion. Whilst illness and advancing years prevented her from being active in our advisory council recently, she was a loyal, long-term supporter of the IBE’s work – and a determined campaigner. RIP.
At the end of 2021, our long-serving Research director Simon Webley retired after more than 20 years of dedicated service. We wish him well in his “retirement” which typically will include some volunteering for the IBE!
I would like to thank Ian Peters and all the hard working staff of IBE for their continuing commitment and creativity. Please continue to punch even more above your weight! Thank you to fellow trustees and to Sir Tim Melville-Ross and our advisory council; and above all, thank you to our corporate supporters – without you, there is no IBE. Please help us to attract more supporters so that we can have “more ethical business. More IBE!”
## _Professor David Grayson CBE_
_June 2022_
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## **Activities of the Institute of Business Ethics**
The Trustees present their report and the audited financial statements for the year ended 31 December 2021.
The IBE provides specialist advisory and training services, and delivers an extensive programme of research, surveys and publications to inform business and the public in relation to business ethics. Much information is made freely available through our website, but it is our Supporters that have the most influence on the IBE’s priorities and work programmes and, most importantly, they enjoy the significant advantages that come from participation in our unique Supporter networks.
## **Engagement with our supporters**
The IBE’s work is funded by corporate and individual supporters. Through their donations, the Institute is able to realise its purpose.
Our supporters join a community of individuals and organisations committed to promoting the highest standards of business conduct based on ethical values. Our work is informed and shaped by engagement with our supporters and the insight this provides us. Our ongoing programme of engagement meetings, where the IBE’s Director meets with the Ethics leaders of Supporter firms to keep up-to-date with current issues has proved successful, informative for both parties and has led to further interest and commissioned work.
It is important to our mission that we achieve a broad focus. To achieve this, we seek to engage with those at board and senior leadership level, as well as with the organisations’ ethics and compliance practitioners thereby increasing our effectiveness in creating a positive influence throughout the corporate world.
Through our Supporter-only networks, round-tables and workshops:
- we connect businesses and ethics professionals working in similar fields and facing similar challenges, for industry and issue-specific confidential networking events to identify emerging trends and share best practices
- we provide a neutral, safe space to allow Chatham House Rule dialogue with industry peers and experts on the ethical dilemmas that businesses face.
## **Supporters’ Forum**
Our annual Supporters’ Forum is an opportunity for IBE supporters to meet and hear about the IBE’s work and provide input to our plans for the forthcoming year. This annual meeting is key to helping the IBE ensure that it is responsive to the latest developments in business ethics and thereby meeting the needs of our Supporters.
## **Business Ethics Network**
Key to engagement with our supporters is our Business Ethics Network (BEN). It provides a confidential forum for the sharing of both good practice and any challenges faced in implementing an effective ethics programme. BEN members also contribute significantly to the
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IBE’s work programme by informing and influencing our priorities for future discussions and research. BEN meetings were increased to monthly during 2021.
## **Ethics Leaders Roundtables**
2021 saw the launch of a new forum for the leaders of ethics functions to exchange views on the latest developments with a strategic focus. These are small group discussions to facilitate a greater depth of exchange.
## **Sector Groups**
In order to address concerns relevant to specific areas of business, we host a number of sector groups. These include: Professional Bodies (ProfBEN), Defence Practitioners (DPG), and the Utilities Sector (USG). These groups are for those responsible for ethics within their organisation to meet and explore specific ethical challenges in their sector, with the IBE providing research and producing briefings for discussion.
The two further groups comprise the **Bank Culture Chairs Group** (BCCG) being the NonExecutive Chairs of the committees looking at ethics and culture of six leading UK banks; and **Professionals against Corruption** (PaC), a group of professional services firms from the legal, accountancy and real estate sectors, committed to work together on the anti-money laundering and anti-corruption agenda. The IBE provides the independent chair and secretariat for BCCG, and the secretariat and advisory services to support PaC.
## **Advisory Services and Training**
As an independent not-for-profit organisation, our unique and pragmatic perspective allows us to work with organisations as a critical friend. Our advisory services are a means of ensuring we remain both current in our understanding of the shifts in the nature of ethical challenges in fast-evolving workplaces, and as a means of sharing expertise and good practice with others.
In addition, advisory work is an important means of diversifying our income sources. Assignments undertaken during 2021 included a multinational aerospace and defence organisation, UK and international financial services organisations, a multinational professional services network, and a multinational oil and gas company.
## **Training**
The IBE has a long tradition and a strong belief in training. We provide both public training courses and workshops and corporate in-house training, offering bespoke training sessions to all levels of staff, from boards and senior management to operational personnel.
All our various training services have been adjusted to provide them on-line and where circumstances have allowed, we have undertaken face to face training with appropriate precautions. In 2021, we ran 11 training courses with 65 paid attendees.
## **Products**
We provide a range of practical and easy to use toolkits which can be customised to the needs of the individual organisation. These include:
## _**Say No Toolkit**_
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A web-based product and app decision-making tool, designed to help organisations support their employees to make the right decision when faced with difficult situations such as whether to accept a gift or hospitality, a facilitation payment, or when faced with a conflict of interest.
## _**Speak Up Toolkit**_
This app helps employees prepare themselves to raise a concern at work. It answers questions about the entire process – from noticing a problem and having a conversation through to what to expect if you call a Speak Up helpline or if your concern is investigated.
## _**Business Ethics Toolkit**_
This toolkit provides a guide for business owners, chief executives or managers seeking to make their ethical values explicit, and to protect their business against ethical lapses. It suggests a simple, affordable approach to design an ethics framework, and it is intended to be particularly useful to small and medium sized businesses, start-ups and growth companies.
## **Research & Thought-leadership**
Our research provides the foundation for our thought-leadership and our advisory services. We focus on topics with practical application and seek to support business through the promotion of the latest solutions and ideas. We have moved to publishing all our work on our website.
New reports during 2021 included
- _**Trends and Innovations in Effective Ethics Training**_ , a guide that shares examples of how organisations are innovating across how they plan, develop, deliver and measure their E&C training
- _**FTSE 100 Codes of Ethics: room for improvement** :_ An assessment of the Codes of Ethics of the UK’s leading companies
- _**Organising for Ethics** Discussion Paper,_ key elements for a good ethics function
- _**Ethics at Work: 2021 International Survey of Employees** ,_ a report covering 10,000 employees in 13 countries over four continents, that provides real insight into employees’ views on ethics across all sectors and job roles
## **Website**
Having extensively revamped and made it more user-friendly and easier to navigate in 2020. We have continued to feature **weekly blogs** where IBE staff, trustees, supporters and invited guests contribute to topical ethical debates. These blogs engender comment and debate on ethical culture and reviews of ethics-related books.
## **Events**
IBE events are typically provided free of charge. Most discussions and publication launches are open to the public and are advertised on our website. Alongside these, the IBE runs a series of private discussions and workshops available to corporate supporters only.
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All our events were on-line in 2021, with recordings of our webinars made available as a free resource on our website and via YouTube to further the Institute’s public and geographic outreach.
During 2021 we hosted:
- 17 public webinars with an overall total of 1,091 attendees. This included a summer lecture given by Sir Jonathan Thompson, CEO, Financial Reporting Council (FRC). He discussed the relationship between purpose, culture and conduct and explored whether ethics could be regulated; what is business ethics and why were the FRC interested.
- European Business Ethics Forum (jointly with French and US partners) with 80 paid registrants
- Joint event with the Banking Standards Board with 64 board-level attendees
- Our annual Supporter Forum
## **Hugh Kay Annual Lecture**
The Annual Hugh Kay lecture is a featured event for the IBE, as it plays to the history of the organisation and is an integral part of our events programme. In 2021, we welcomed Irene Dorner, Chair of Taylor Wimpey and Control Risks, who spoke to the title: Diversity is just a ticket to the game. The goal is inclusion. She looked particularly at what part Boards can play in creating a culture and environment, where anyone can thrive and realise their full potential.
## **Business Ethics in Education**
A core part of IBE’s mission is the education of the next generation of business leaders in business schools and universities, sensitising them to the importance of ethical business practice and ethical issues.
## **IBE Student Essay Competition in Business Ethics**
We run an annual essay competition for UK students, which celebrates the best writing and thinking by undergraduates and postgraduates on business ethics. It aims to encourage student interest in business ethics and the integration of discussions on corporate responsibility into the core curricula of business schools.
## **Advocacy**
The IBE provides advice to policy makers in government, supports corporate governance consultations and reviews, and is an advocate for ethical business practice.
The Trustees, Directors and staff make presentations and speak at conferences nationally and internationally advocating good business practice and, offer the media and others an informed opinion and advice on current issues and good practice.
We made the following submissions in 2021 and supported the FRC’s project on Corporate Culture and its work on Audit Culture.
- IBE response to the CSPL Standards Matter 2 consultation
- IBE response to the BEIS Restoring Trust in Audit and Corporate Governance consultation
We also support the following groups:
FRC Stakeholder Advisory Panel
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CISI Integrity Committee UCL Ethics & Law Advisory Committee **Structure, Governance and Management**
The Institute of Business Ethics is an incorporated charity, re-registered with the Charity Commission on 1 April 2019, as a Company limited by Guarantee. It is governed by a Memorandum and Articles, dated September 2018.
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 Articles, applicable law and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
## **Board of Trustees**
The Trustees are responsible for the overall strategic direction of the Institute, ensuring that the IBE abides by its charitable aim, works within the law and delivers its mission effectively. The Trustees are led by the Chair of the board.
Trustees serve a maximum of three three-year terms. The Trustees meet at least quarterly.
New Trustee positions are advertised and applicants are interviewed by the Nominations Committee. Appointments are ratified by the whole Trustee body. Trustee induction is held at the start of the term and training is provided, as and when identified by the Chair and/or other trustees. All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 5 to the accounts.
## **Decision-making**
The Trustees reserve the following decisions to themselves:
- Appointment of the Auditor
- All Director level appointments
- Appointments of Trustees and Advisory Council members
- Approval of the Annual Report and Accounts
- Approval of reserves and investment policies
- Approval of the IBE’s code of ethics
- Approval of the annual operating plan and budget, including the staff plan
- Approval of annual remuneration of staff and any termination or redundancy packages
- Approval of contracts and policies not in the ordinary course of affairs
- Approval of capital expenditure items of £10,000 or more
- Setting the strategy for the Charity.
## **The Trustees delegate the following decisions to the Director:**
- Hiring of staff within the staff plan
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- Capital expenditure up to £5,000 with reference to the Chair and Treasurer on sums between £5,000 and £10,000
- Day to day operational decisions in relation to the delivery of the budget and strategic plan.
## **International Advisory Council**
The Advisory Council members, who include the President and the Vice Presidents, provide the IBE with advice and guidance on its work programme, thought leadership and strategy. They are invited to attend bi-annual meetings and receive copies of the Director’s reports and the IBE’s events programmes and publications. In addition, The President and the Vice Presidents receive copies of the Trustees’ meeting minutes. The Advisory Council does not form part of the Institute’s formal governance structure.
## **Funding**
The IBE receives financial support from corporate supporters, individuals, associations and trusts. The Institute also generates income from the provision of advisory services, training courses, project funding, the sale of publications and products and events.
## **Sources of income**
Through their donations, IBE supporters help to promote ethical business practice. They are encouraged to engage with us via events, publications, advice and other services that the IBE provides. Diversification of cash funds and investments is regularly reviewed in order to reduce exposure of financial risk to any single institution.
## **Reserves & going concern**
The income of the Institute of Business Ethics depends mainly on donations from companies, which can fluctuate from year to year. Any reduction in these can have a considerable impact on income. In addition, the Institute initiates and incurs costs for projects that may or may not generate equivalent revenue.
The Trustees regularly review the organisation’s reserves policy and following board approval in November 2018, the following policy has been put in place based on the following principles:
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- Provide adequate working capital to cover the usual cash flow variability.
- To cover unforeseen financial difficulties, and so allow time should income unexpectedly fall off or, unplanned expenditure be incurred for the Board and management to take remedial action.
These two provide our normal operational reserves.
- We may also wish to hold additional ‘earmarked’ reserves – designated funds within our unrestricted reserves – so as to be able to make strategic investments in future.
When we receive income subject to specific stipulations which is unspent at the end of the financial year, the balance will be carried forward as restricted reserves, signalling they are not available for general purposes.
On working capital, a review shows we need a minimum of some £60,000 to cover routine operations for a 3-month period. This can be expected to rise if the trend to slow payment by supporters accelerates or if the balance of our work shifts away from annual donations, for example towards advisory services paid on completion. Based on 2021 numbers, three months of fixed costs (salaries and rent) equates to £157,952.
Based on these calculations, the Board decided that for 2021 we should hold a minimum of £240,400 in reserves. The IBE met this policy during the reporting period and continues to do so. However, due to the ongoing Coronavirus pandemic, the Board and management continue to monitor closely the level of reserves alongside income and expenditure.
At 31 December 2021 total reserves were £383,996, of which unrestricted free reserves were £301,444 minus £10,076 for restricted funds.
Note 15a of the accompanying accounts explains our future plans to disburse the restricted and designated funds held in reserve.
At the time of signing, the Trustees consider the Charity to be a going concern and have prepared the accounts on this basis.
## **Investment policy**
Investments are stated at market value. The Trustees take into account social, ethical and environmental considerations when deciding where the Institute’s funds are invested.
## **Remuneration policy**
IBE is committed to ensuring that we pay our staff fairly, and in a way that ensures we attract and retain the right skills to have the greatest impact in delivering our charitable objectives.
The Board of Trustees approve the annual percentage increase in the payroll for all staff in November, for the following salary year beginning in January, taking into account RPI as at 30 September of the current year. The Board also approves any non-consolidated pay awards and staff salary increases outside of the annual review process as recommended from time to time by the Director.
The appropriateness and relevance of the remuneration policy is reviewed annually by the Director, who is entrusted to ensure that the review includes reference to comparisons with other charities, ensuring IBE remains sensitive to the broader issues e.g. pay and employment conditions, meets all national pay standards, and provides all paid staff with a living wage. Salaries are benchmarked against similar roles within like-minded charities, the Charity Salary Survey and other comparable roles.
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The Director reviews all staff pay levels annually, and new proposals are put to the Board of Trustees for review and approval. The Director is in attendance for the meeting but leaves for any discussion regarding their own remuneration.
The Remuneration Committee, established in December 2020, approve any changes to staff pay levels.
## **Pension policy**
The IBE has adhered to the Auto-Enrolment Scheme, all employees are automatically enrolled in the company pension scheme and new employees will be automatically enrolled in the National Employment Savings Trust (NEST) in accordance with the company’s obligations under the Pensions Act 2008.
## **Risk management**
The risk register was revised and simplified in 2019, with trustees having identified 13 main residual risks. This is now reviewed at each Board meeting, with an ongoing commitment to managing those risks.
|risks. This is now reviewed at each Board meeting,
risks.|with an ongoing commitment to managing those|
|---|---|
|Key Risks|Management of Key Risks|
|Failure to provide public benefit in accordance with
IBE's Articles.
Failure of Trustees to execute effective stewardship.
Keeping to IBE's Charitable purpose
.
Trustee body lacks relevant skills.|Trustees adhere to the Charities Code.
Aware &following the IBE's Articles of Association. Public
Benefit is reflected in the 5 year plans, which is in line with
our purpose and values.
Auditors check public benefit. Stringent recruitment process
in place, with a view to filling the gaps on the Board. Regular
reporting to the Board to demonstrate the organisation is
keeping toits charitable goals.|
|Sudden loss of key personnel including Directors.
Excessive Staff Turnover|Succession Plan to ensure minimum disruption to
business. Staff development in key aspects. Organisation
chart to create a clear understanding of roles and duties.
Ensure clear roles and responsibilities. Relevant staff
development to be in place. Ongoing staff development to
ensure key areas are covered. Updated job descriptions,
roles and responsibilities. Job descriptions, roles and
responsibilities to be updated. Staff development to be
monitored.|
|Supporters cease financial support.|Maintain regular contact with all supporters, ensure
relevance of activities. Maintain a wide spread of supporters
in
different
sectors.
Encourage
new
supporters,
diversification of supporters’ base.
Seeking to identify new sources of funding and to diversify
income streams. Monitor supporter feedback and seek to
ensure that products and services are relevant to their
needs.
Ensure Research and Services are compelling and in-line
with supporters’ wants & needs. Publications to be made
free for all supporters.
Networking and Safe Space USPto be promoted.|
## **IBE Code of Ethics**
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The IBE has a Code of Ethics for all staff and Trustees, which is published on the website. It was reviewed and updated in 2021.
In order to mitigate reputation risk and avoid potential conflicts of interest, the Trustees have a Register of Interests of Trustees for internal use. This is completed by new Trustees on appointment and reviewed annually.
## **Annual review of board effectiveness**
The Chairman conducted 1:1 interviews with each trustee in November 2021, collated feedback and presented a paper to the additional January board meeting on board effectiveness which was reviewed and agreed by trustees.
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## **Statement of Trustees’ Responsibilities**
The trustees (who are also directors of Institute of Business Ethics for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in the Charities SORP
- Make judgements and estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards and statements of recommended practice
- have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to
- presume that the charity will continue in operation
The trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the trustees are aware:
- There is no relevant audit information of which the charitable company’s auditor is unaware
- The trustees have taken all steps that they ought to have taken to make themselves aware of
- any relevant audit information and to establish that the auditor is aware of that information
The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at Year End was 2021:10. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.
## **Trustees:**
- David Grayson, CBE - Chair
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- Mike Tuffrey - Treasurer
- Cristina Cortes
- Ian Dyson QPM
- Jason Engelbrecht
- Loree Gourley – Vice Chair
- Yetunde Hofmann
- Tim Langton
- Loren Shuster
- Louise Terry
## **International Advisory Council:**
- Sir Tim Melville-Ross KBE – President
- Ian Barlow – Vice President
- Ram Gidoomal CBE – Vice President
- Simon Thompson – Vice President
- The Baroness Howe of Idlicote CBE – Honorary Vice President (Resigned November 2021)
- Sir Robert Worcester KBE DL – Honorary Vice President
## **Members**
- Iain Anderson
- Sir Brendan Barber
- Sir Douglas Flint CBE
- Mary Francis CBE LVO (Resigned September 2021)
- Annabel Gillard
- Dr Peter Harper
- David Jackson
- Rachel Lomax
- John Williams
- Sir Mark Moody Stuart
- Chris Moorhouse
- Ruth Rawling
- Barbara Ridpath
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- Robert Smith
- Professor Laura Spence
- Sir Kevin Tebbit KCB CMG
- Sir David Walker (Resigned February 2022)
- Philippa Foster Back CBE (Resigned November 2021)
## **Auditors**
Sayer Vincent were re-appointed as the charity’s auditors during the year and have expressed their willingness to act in that capacity.
The accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies’ regime. The trustees’ annual report has been approved by the trustees and signed on their behalf by
Professor David Grayson,CBE
Chair of Trustees
8 September 2022
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**Independent auditor’s report**
## **To the members of**
## **Institute of Business Ethics**
## **Opinion**
We have audited the financial statements of Institute of Business Ethics (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, balance sheet, statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- Give a true and fair view of the state of the charitable company’s affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure for the year then ended
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- Have been prepared in accordance with the requirements of the Companies Act 2006
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on Institute of Business Ethics’ ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other Information**
The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that
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**Independent auditor’s report**
## **To the members of**
## **Institute of Business Ethics**
there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- The information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- The trustees’ annual report has been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
- Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- The financial statements are not in agreement with the accounting records and returns; or
- Certain disclosures of trustees’ remuneration specified by law are not made; or
- We have not received all the information and explanations we require for our audit; or
- The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees**
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
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**Independent auditor’s report**
## **To the members of**
## **Institute of Business Ethics**
material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.
## **Capability of the audit in detecting irregularities**
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:
- Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
- We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
- We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
- We reviewed any reports made to regulators.
- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
18
**ndependent auditor’s report**
## **To the members of**
## **Institute of Business Ethics**
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Joanna Pittman (Senior statutory auditor)
8 September 2022
for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL
19
## Institute of Business Ethics
Statement of financial activities (incorporating income and expenditure account)
For the year ended 31 December 2021
|Note
Income from:
2
3a
3a
3a
3a
3a
10
4
Reconciliation of funds:
Other
Total income
Expenditure on:
Donations and legacies
Charitable activities
Advisory
Training
Meetings & Events
Publications & Projects
Raising funds
Total expenditure
Net income / (expenditure) before net
gains on investments
Charitable activities
Advisory
Training
Meetings & Events
Publications & Projects
Net gains on investments
Total funds brought forward
Total funds carried forward
Net income / (expenditure) before other
recognised gains and losses
Gains / (losses) on foreign exchange
Net movement in funds|Unrestricted
£
588,376
71,050
49,247
36,244
3,210
4,372|Restricted
£
72,047
-
-
-
-
-|2021
Total
£
660,423
71,050
49,247
36,244
3,210
4,372|Unrestricted
£
611,224
117,103
60,075
88,742
33,077
10,345|Restricted
£
10,000
-
-
-
-
-|2020
Total
£
621,224
117,103
60,075
88,742
33,077
10,345|
|---|---|---|---|---|---|---|
||752,499|72,047|824,546|920,566|10,000|930,566|
||69,215
218,953
89,084
223,599
120,186|-
-
-
-
67,625|69,215
218,953
89,084
223,599
187,811|84,564
251,943
151,643
283,792
140,227|-
-
-
-
27,361|84,564
251,943
151,643
283,792
167,588|
||721,037|67,625|788,662|912,169|27,361|939,530|
||(1,143)
31,462|-
4,422|(1,143)
35,884|438
8,397|-
(17,361)|438
(8,964)|
||30,319
(1,554)|4,422
-|34,741
(1,554)|8,835
536|(17,361)
-|(8,526)
536|
||28,765
345,155|4,422
5,654|33,187
350,809|9,371
335,784|(17,361)
23,015|(7,990)
358,799|
||373,920|10,076|383,996|345,155|5,654|350,809|
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. All movements in funds are disclosed above.
20
Institute of Business Ethics
## Balance sheet
|Balance sheet|||||
|---|---|---|---|---|
|As at 31 December 2021|||Company number 11594672||
|Note
Fixed assets:
9
9
10
Current assets:
11
Liabilities:
12
15a
Total unrestricted funds
15a
Total charity funds
Investments
Cash at bank and in hand
Tangible assets
Intangible assets
Restricted funds
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Unrestricted income funds:
Designated funds
General funds
Debtors|£
38,655
487,351|2021
£
3,089
26,078
29,671|£
33,014
464,265|2020
£
5,037
38,891
30,814|
|||58,838
325,158||74,742
276,067|
||526,006
200,848||497,279
221,212||
||43,309
330,611||57,909
287,246||
|||383,996||350,809|
|||373,920
10,076||345,155
5,654|
||||||
|||383,996||350,809|
Approved by the trustees on 8 September 2022 and signed on their behalf by
Professor David Grayson CBE Chair of the Trustees
21
Institute of Business Ethics
## Statement of cash flows
For the year ended 31 December 2021
|Cash in hand
Total cash and cash equivalents
Cash flows from operating activities
Net cash used in investing activities
Net cash used in operating activities
Cash flows from investing activities:
Purchase of fixed assets
Net income for the reporting period
(as per the statement of financial activities)
Gains on investments
Decrease / (Increase) in debtors
(Decrease) / Increase in creditors
Change in cash and cash equivalents due to foreign exchange
Loss on disposal of joint venture
Analysis of cash and cash equivalents
Cash and cash equivalents at the end of the period
Depreciation and amortisation
Cash and cash equivalents on transfer of funds / start of
period
Change in cash and cash equivalents in the period|£
£
34,741
1,143
-
14,760
(5,641)
(20,364)
24,639
-
-
24,639
464,266
(1,554)
487,351
At 1 January
2021
Cash flows
£
£
464,266
24,639
464,266
24,639
2021|£
£
34,741
1,143
-
14,760
(5,641)
(20,364)
24,639
-
-
24,639
464,266
(1,554)
487,351
At 1 January
2021
Cash flows
£
£
464,266
24,639
464,266
24,639
2021|£
£
(8,526)
(438)
2,500
14,168
78,876
55,489
142,069
(11,745)
(11,745)
130,324
333,404
538
464,266
Other
changes
At 31
December
2021
£
£
(1,554)
487,351
(1,554)
487,351
2020|£
£
(8,526)
(438)
2,500
14,168
78,876
55,489
142,069
(11,745)
(11,745)
130,324
333,404
538
464,266
Other
changes
At 31
December
2021
£
£
(1,554)
487,351
(1,554)
487,351
2020|
|---|---|---|---|---|
||-||(11,745)||
||At 1 January
2021
£
464,266||Other
changes
£
(1,554)||
|||24,639
464,266
(1,554)||130,324
333,404
538|
|||487,351||464,266|
|||Cash flows
£
24,639||At 31
December
2021
£
487,351|
||464,266|24,639|(1,554)|487,351|
22
Institute of Business Ethics
Notes to the financial statements
For the year ended 31 December 2021
## 1 Accounting policies
## a) Statutory information
Institute of Business Ethics is a charitable company limited by guarantee and is incorporated in England and Wales on 28 September 2018.
The registered office address and principal place of business is 24 Greencoat Place, London, SW1P 1BE.
## b) Basis of preparation
The financial statements have been prepared in accordance with 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) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
In applying the financial reporting framework, the trustees have made a number of subjective judgements, for example in respect of significant accounting estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The nature of the estimation means the actual outcomes could differ from those estimates. Any significant estimates and judgements affecting these financial statements are detailed within the relevant accounting policy below.
## c) Public benefit entity
The charity meets the definition of a public benefit entity under FRS 102.
## d) Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
## e) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.
## f) Donations of gifts, services and facilities
Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.
On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
23
Institute of Business Ethics
Notes to the financial statements
For the year ended 31 December 2021
## 1 Accounting policies (continued)
## g) Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
## h) Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds relate to the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose
- Expenditure on charitable activities includes the costs of delivering advisory services, meetings, publications and other educational activities undertaken to further the purposes of the charity and their associated support costs
- Other expenditure represents those items not falling into any other heading
Irrecoverable VAT is charged to the accounts in the same proportion as staff costs.
## i) Allocation of support and governance costs
Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.
Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.
|||Staff costs|Governance|Office Support|
|---|---|---|---|---|
||Cost of raising funds|4%|8%|8%|
||Advisory|18%|32%|32%|
||Training|8%|14%|14%|
||Meetings & Events|16%|28%|28%|
||Publications & Projects|10%|18%|18%|
||Support costs|38%|||
||Governance costs|6%|||
## j) Operating leases
Rental charges are charged on a straight line basis over the term of the lease.
## k) Listed investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing
quoted market price. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.
## l) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## m) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any funds held on behalf of service users.
24
Institute of Business Ethics
## Notes to the financial statements
For the year ended 31 December 2021
## 1 Accounting policies (continued)
- n) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
The charity will not be renewing the current rental lease at the end of the lease term (31 July 2022) and the landlord will not be providing suitable ongoing accommodation after this date. The charity believes that the landlord will not issue an invoice for dilapidations, and therefore no provision for such costs have been entered into the financial statements.
## o) Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. Full details are given in the financial instruments note.
## p) Pensions
The charity operates a defined contribution scheme, whereby it will put in a contribution of 5% of an employee's gross salary. Pension contributions are paid monthly in arrears, and can commence once the employee has completed the standard 3 month probationary period. There is no obligation for any employee to join the scheme and the charity has no further obligations once payments have been made.
## q) Tangible fixed assets
Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life.
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rate in use is 4 years.
## r) Intangible assets
The new IBE website, developed in 2020 went live on 13 January 2021. All installation and development costs have been classed as intangible assets. Support costs, website hosting and domain name costs are considered to be normal running costs and will be expensed in the period they are incurred.
Amortization is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The amortization rate in use is 4 years.
## 2 Income from donations and legacies
|Corporate subscriptions
Individual subscriptions
Ethics @ Work 21 donations - restricted fund
CRP (Contributed Income, Research & Publication Fund) - restricted fund|2021
Total
£
583,211
5,165
72,047
-|2020
Total
£
607,858
3,366
-
10,000|
|---|---|---|
||660,423|621,224|
All income sources listed above are unrestricted in the current period, with the exception of the Ethics @ Work 21 donations, totalling £72,047.
25
Institute of Business Ethics
## Notes to the financial statements
## For the year ended 31 December 2021
- 3a Analysis of expenditure (current period)
|Staff costs (Note 5)
Project/product expenditure
Marketing & hospitality
Ethics at Work 2021
Publications
General events
EBEF event
Other direct costs
Rent, rates & service charge
Office & IT equipment
Office costs
IT costs
Professional fees
Associate & Recruitment cost
Insurance
Governance costs
Support costs
Total expenditure 2021|Raising funds
£
44,722
-
-
-
-
-
-
-
1,992
151
454
637
316
-
333
48,605
4,810
15,800
69,215||Charitable activities|Charitable activities|Publications
& Projects
£
62,286
4,546
3,461
57,635
1,027
-
-
(10)
4,786
362
1,092
1,531
760
-
800
138,276
11,559
37,976
187,811|Governance
costs
£
50,741
-
-
-
-
-
-
5,099
2,864
217
653
916
455
-
479
61,424
(61,424)|Support
costs
£
167,929
-
-
-
-
-
-
-
17,374
1,313
3,965
5,558
2,760
-
2,903
201,802
-
(201,802)|2021
£
575,425
4,546
34,610
57,635
1,027
1,131
19,152
6,089
45,673
3,454
10,421
14,611
7,255
-
7,633|
|---|---|---|---|---|---|---|---|---|
|||Advisory
£
107,923
-
10,383
-
-
-
-
1,000
8,102
613
1,849
2,592
1,287
-
1,354
135,103
19,566
64,284
218,953|Training
£
39,416
-
6,922
-
-
-
-
-
3,476
263
793
1,112
552
-
581
53,115
8,393
27,576
89,084|Meetings &
Events
£
102,408
-
13,844
-
1,131
19,152
-
7,079
535
1,615
2,265
1,125
-
1,183
150,337
17,096
56,166
223,599|||||
|||||||||788,662
-
-|
|||||||||788,662|
26
Institute of Business Ethics
## Notes to the financial statements
## For the year ended 31 December 2021
## 3b Analysis of expenditure (prior period)
## Charitable activities
|Staff costs (Note 5)
Project/product expenditure
Marketing & hospitality
Events
Publications
EBEF event
Other direct costs
Rent, rates & service charge
Office & IT equipment
Office costs
IT costs
Professional fees
Associate & Recruitment cost
Insurance
Support costs
Governance costs
Total expenditure 2020|Raising funds
£
54,077
-
-
-
-
-
-
3,644
337
622
1,035
579
1,105
471
61,870
17,727
4,967
84,564|Advisory
£
158,271
-
6,144
-
-
-
334
10,422
963
1,780
2,959
1,656
3,162
1,348
187,039
50,700
14,204
251,943|Training
£
80,005
9,058
9,217
1,751
-
-
(1,206)
6,313
583
1,078
1,792
1,003
1,915
817
112,326
30,712
8,605
151,643|Meetings &
Events
£
111,062
-
12,289
-
-
78,488
-
9,795
905
1,673
2,781
1,557
2,972
1,267
222,789
47,653
13,350
283,792|Publications
& Projects
£
67,690
-
3,072
977
35,990
-
-
7,155
661
1,222
2,031
1,137
2,171
925
123,031
34,806
9,751
167,588|Governance
costs
£
38,264
-
-
-
-
-
6,233
2,983
276
509
847
474
905
386
50,877
-
(50,877)|Support
costs
£
140,368
-
-
-
-
-
-
19,278
1,781
3,292
5,473
3,064
5,849
2,493
181,598
(181,598)
-|2020
£
649,737
9,058
30,722
2,728
35,990
78,488
5,361
59,590
5,506
10,176
16,918
9,470
18,079
7,707|
|---|---|---|---|---|---|---|---|---|
|||||||||939,530
-
-|
|||||||||939,530|
27
Institute of Business Ethics
## Notes to the financial statements
## For the year ended 31 December 2021
4 Net income for the period
This is stated after charging / crediting:
|This is stated after charging / crediting:|||
|---|---|---|
||2021|2020|
||£|£|
|Operating lease rentals:|||
|Property|33,480|43,959|
|Other|12,193|18,480|
|Auditor's remuneration (excluding VAT):|||
|Audit|6,900|6,275|
|Foreign exchange gains or (losses)|(1,554)|536|
- 5 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
Staff costs were as follows:
|Staff costs were as follows:|||
|---|---|---|
|Social security costs
Salaries and wages
Employer’s contribution to defined contribution pension schemes|2021
£
507,135
50,147
18,142|2020
£
573,312
58,164
18,261|
||575,424|649,737|
The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the accounting period between:
||2021|2020|
|---|---|---|
||No.|No.|
|£70,000 - £79,999|-|1|
|£100,000 - £109,999|1|-|
The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £144,423 (2020: £174,170).
The charity trustees were neither paid nor received any other benefits from employment with the charity in the period. No charity trustee received payment for professional or other services supplied to the charity.
Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £nil (2020: £nil) incurred by 0 members (2020: 0) relating to attendance at meetings of the trustees.
28
Institute of Business Ethics
## Notes to the financial statements
## For the year ended 31 December 2021
## 6 Staff numbers
The average number of employees (head count based on number of staff employed) during the accounting period was as follows:
|Raising funds
Advisory
Training
Meetings & Events
Publications and Projects
Support
Governance|2021
No.
0.6
2.3
1.0
2.0
1.4
4.9
0.8|2020
No.
0.9
2.4
1.5
2.3
1.7
4.5
0.7|
|---|---|---|
||13.0|14.0|
The average number of employees (full time equivalents) during the accounting period was as follows:
|Raising funds
Training
Support
Governance
Advisory
Meetings & Events
Publications and Projects|2021
No.
0.4
1.8
0.8
1.6
1.1
3.9
0.6|2020
No.
0.7
2.1
1.3
2.0
1.4
3.9
0.6|
|---|---|---|
||10.2|12.0|
## 7 Related party transactions
There are no donations from related parties to disclose for 2021 (2020: none) which are outside the normal course of business and no restricted donations from related parties.
## 8 Taxation
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
29
Institute of Business Ethics
## Notes to the financial statements
## For the year ended 31 December 2021
|9
Cost - intangibles
At the start of the period
Additions in the period
At the end of the period
Depreciation
At the start of the period
Charge for the period
At the end of the period
Charge for the period
Fixed assets
At the end of the period
Cost - fixed
At the start of the period
Additions in the period
At the end of the period
Depreciation
At the start of the period
Net book value
At the start of the period
At the end of the period
Net book value
At the end of the period
At the start of the period|Computers
£
8,121
-|Total
£
8,121
-|
|---|---|---|
||8,121|8,121|
||3,084
1,948|3,084
1,948|
||5,032|5,032|
||3,089|3,089|
||5,037|5,037|
||Website
£
51,248
-|Total
£
51,248
-|
||51,248|51,248|
||12,357
12,813|12,357
12,813|
||25,170|25,170|
||26,078|26,078|
||26,078|26,078|
All of the above assets are used for charitable purposes.
30
Institute of Business Ethics
## Notes to the financial statements
## For the year ended 31 December 2021
10 Listed investments measured through profit and loss
|10
Listed investments measured through profit and loss|||
|---|---|---|
|11
12
VAT
13
Creditors: amounts falling due within 12 months
Accruals
Deferred income
Taxation and social security
Prepayments
UK Common investment funds
Investments comprise:
Fair value at the start of the period
Other debtors
Deferred income
Sundry creditors
Trade creditors
Net gain / (loss) on change in fair value
Fair value at the end of the period
Debtors
Trade debtors
Accrued income|2021
£
30,814
(1,143)|2020
£
30,376
438|
||29,671|30,814|
||2021
£
29,671|2020
£
30,814|
||29,671|30,814|
||2021
£
17,475
-
4,981
16,199|2020
£
24,329
-
8,393
292|
||38,655|33,014|
||2021
£
-
-
14,335
2,144
24,376
159,993|2020
£
-
(5,123)
21,021
2,970
44,340
158,004|
||200,848|221,212|
||||
Deferred income comprises fees, corporate or individual subscriptions that have been paid in advance.
|Balance at the beginning of the period
Amount released to income in the period
Amount deferred in the period
Balance at the end of the period|2021
£
158,003
(158,003)
159,993|2020
£
103,733
(103,733)
158,003|
|---|---|---|
||159,993|158,003|
31
Institute of Business Ethics
## Notes to the financial statements
## For the year ended 31 December 2021
## 14a Analysis of net assets between funds (current period)
|14b
15a
At 1
January
2021
£
5,654
-
5,654
57,909
287,246
350,809
Restricted funds:
Contributed Income, Research &
Publication Fund
Unrestricted funds:
Designated fund: Professionals
against Corruption (PaC)
General funds
Net assets at 31 December 2020
Tangible and intangible fixed assets
Net current assets
Tangible fixed assets
Net current assets
Movements in funds (current period)
Ethics @ Work 2021
Total restricted funds
Total funds
Net assets at 31 December 2021
Analysis of net assets between funds (prior period)|14b
15a
At 1
January
2021
£
5,654
-
5,654
57,909
287,246
350,809
Restricted funds:
Contributed Income, Research &
Publication Fund
Unrestricted funds:
Designated fund: Professionals
against Corruption (PaC)
General funds
Net assets at 31 December 2020
Tangible and intangible fixed assets
Net current assets
Tangible fixed assets
Net current assets
Movements in funds (current period)
Ethics @ Work 2021
Total restricted funds
Total funds
Net assets at 31 December 2021
Analysis of net assets between funds (prior period)|General
unrestricted
£
29,167
301,444|Designated
£
-
43,309|Restricted
£
-
10,076|Total funds
£
29,167
354,829|
|---|---|---|---|---|---|
|||330,611|43,309|10,076|383,996|
|||General
unrestricted
£
43,928
243,318|Designated
£
-
57,909|Restricted
£
-
5,654|Total funds
£
43,928
306,881|
|||287,246|57,909|5,654|350,809|
|||Income &
gains
£
-
72,047|Expenditure
& losses
£
10
(57,635)|Transfers
£
-
(10,000)|At 31
December
2021
£
5,664
4,412|
||5,654
57,909
287,246|72,047
-
752,499|(57,625)
(1,000)
(732,734)|(10,000)
(13,600)
23,600|10,076
43,309
330,611|
||350,809|824,546|(791,359)|-|383,996|
The narrative to explain the purpose of each fund is given at the foot of the note below.
32
Institute of Business Ethics
## Notes to the financial statements
## For the year ended 31 December 2021
15b Movements in funds (prior period)
|General funds
Total restricted funds
Total unrestricted funds
Unrestricted funds:
Designated fund: Professionals
against Corruption (PaC)
Restricted funds:
Contributed Income, Research &
Publication Fund|Transferred
in on 1 April
2020
£
23,015|Income &
gains
£
10,000|Expenditure
& losses
£
(27,361)|Transfers
£
-|At 31
December
2020
£
5,654|
|---|---|---|---|---|---|
||23,015
55,693
280,091|10,000
2,500
919,040|(27,361)
(284)
(911,885)|-
-
-|5,654
57,909
287,246|
||358,799|931,540|(939,530)|-|350,809|
Purposes of restricted funds
## Contributed Income, Research & Publication Fund
This is a fund from a series of requested donations for the purpose of the IBE's Research and Publication work. It allowed the IBE to create more resources and freely disseminate them more widely. The monies collected so far will be spent by Q3 of 2022.
## Ethics @ Work 2021 fund
This is a fund from a series of requested donations from major supporters to sponsor the research, collation of data and publication which is done every three years. These funds cover the costs of the outsourced research and publications. The surveys are conducted in a set amount of countries (usually determined by the organisation used to survey and their reach) and focused on the ethical behaviour of staff in larger companies (overall in excess of more than 10,000 employees).
The £10,000 transfer of funds from general expense to Ethics @ Work 2021 expense this year (note 15a) was due to the contribution of Research team staff resources on this fund throughout the year.
## Purposes of designated funds
## Professionals against corruption
A group of professional services firms have reached an agreement with the IBE, to work together on an anticorruption and anti-money laundering agenda. The funds will be drawn down to facilitate research and projects connected to this agenda.
The £13,600 transfer of funds from general expense to PAC expense this year (note 15a) was due to staff resources used to complete a requested project from one of the PAC contributors.
33
Institute of Business Ethics
## Notes to the financial statements
## For the year ended 31 December 2021
## 16 Operating lease commitments
The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods
|each of the following periods|||||
|---|---|---|---|---|
|Less than 1 year
1 - 5 Years|2021
2020
£
£
53,733
78,150
-
76,196
53,733
154,346
Property||2021
2020
£
£
-
-
-
-
-
-
Equipment||
||53,733|154,346|-|-|
34