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2021-12-31-accounts

Sustainable Hospitality Alliance (A company limited by guarantee)

Report and Financial Statements Year ended 31 December 2021

Charity number 1188731 Company number 12373950

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Report of the trustees for the year ended 31 December 2021

The trustees are pleased to present their annual directors’ report together with the consolidated financial statements of the charity for the period ended 31 December 2021 which are also prepared to meet the requirements for a directors’ report and accounts for Companies Act purposes.

The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association, and the 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, 2nd Edition) effective 1 January 2019.

2 Independent Auditors Report to the Trustees of Sustainable Hospitality Alliance

Report of the trustees for the year ended 31 December 2021 Reference and administrative details

Directors and trustees

The directors of the charitable company (the charity) are its trustees for the purpose of charity law. The trustees and officers serving during the period and since the period end were as follows:

Board of Trustees:

Wolfgang M. Neumann, Chair Catherine Hammond, Treasurer Yasmin Diamond Stephen Farrant Melissa Froehlich Flood Pia Heidenmark Cook (appointed 17 June 2021) Tim Davis (appointed 31 March 2022)

Members of Board Sub-committees serving during the period and since the period end were as follows:

Finance Risk and Audit Committee:

Catherine Hammond, (Treasurer) Wolfgang M. Neumann, (Chair) Lesley Wolfenden Mike Reilly (appointed 22 March 2021)

Key management personnel

Senior Management Team:

Glenn Mandziuk CEO (appointed 02 May 2022) Patrick O’Meara (interim CEO August 2021 to May 2022) Madhu Rajesh (CEO to 30 September 2021) Simon Le Gouais (Director of Finance and Resources & Company Secretary appointed 01 July 2021

Chris Wilde (Director of Finance and Resources to 30 June 2021)

Reference and administrative details

Registered charity name Sustainable Hospitality Alliance
Charity registration number 1188731
Company registration number 12373950
Registered address 2 Putney Hill, London, SW15 6AB
Auditor Haysmacintyre LLP
Bankers HSBC UK
Solicitors Russell-Cooke LLP

Report of the trustees for the year ended 31 December 2021

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Chair’s report

I am immensely proud of the progress the Sustainable Hospitality Alliance has made in its first full year as an independent charity. As global events continued to pose huge challenges to the hospitality industry, the Alliance and its members have shown great resilience, guiding the wider industry and supporting the wellbeing of employees, guests and communities.

As we began the year, the travel and tourism sector had seen an estimated 20% loss in jobs globally,[1] and hotels were operating at a significantly reduced capacity. It is during crisis times like these that people and communities are left even more vulnerable and we, as responsible businesses and leaders, have an even stronger role to play in spite of the operational challenges.

The latter half of the year, in the build-up to COP26, saw the release of the UN Intergovernmental Panel on Climate Change (IPCC) report which revealed that unless there are immediate and largescale reductions in greenhouse gas emissions, the goal of limiting warming to even 2°C will be beyond reach.[2] This provides a stark reminder to anyone who was questioning whether, given the magnitude of the global health crisis, the world could still afford to pay attention to climate change – the reality is that we cannot afford not to.

These crises highlight that the need for joined up action, across the industry, the wider value chain, public and private sectors, is more crucial than ever – as is the role of the Alliance.

This year, to advance our ability to drive collaboration, we launched our affiliate membership – open to wider parts of the hospitality value chain including real estate owners, investment funds, and legal and consulting firms. This new route for cross-industry engagement provides additional perspectives which, combined with the insights from our hotel members, will be hugely valuable in driving our collective impact and outputs.

We have enhanced our focus on environmental and social issues through the creation of the People and Planet Committees. With new Chairs from member companies, each committee convenes dedicated industry professionals to work together on the most pertinent issues.

We have delivered a number of key programmes and resources for the utilisation and benefit of the wider hospitality community. Notable among these is our core employability skills curriculum – a comprehensive training resource to give people from disadvantaged backgrounds the skills and confidence to start a career in the industry. We invite any hotels and NGOs to adopt this resource so we can leverage the collective power of the industry to enable even more people to build a better future.

For our environmental strategy, we recognised the industry need for a co-ordinated strategic plan that encompasses the whole hospitality industry (owners, operators and brands). This informed the development of our Pathway to Net Positive Hospitality, an ambitious global vision and practical framework, which we were proud to release with the backing of CEOs from across the industry in March 2022.

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Our organisation is built on collective action, and this would not be possible without our members and affiliate members. We thank also our partners and supporters including philanthropic organisations, non-profits, governments and the private sector. Through the active engagement and shared expertise of our staff, members and partners, we will continue to drive collaborative action to enable the hospitality industry to have a lasting positive impact on our planet and its people.

Wolfgang M. Neumann Chair, Sustainable Hospitality Alliance

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Objectives and activities

Our vision and mission

Our vision is responsible hospitality for a better world.

Our mission is to drive collaborative action to enable the hospitality industry to have a lasting positive impact on our planet and its people.

We do this by bringing together engaged hospitality companies and strategic partners and using the collective power of the industry to deliver impact locally and on a global scale.

Summary of the purposes of the charity

The Charity’s objects are, for the public benefit, anywhere in the world, to:

The trustees confirm that they have referred to the information contained in the Charity Commission’s general guidance on public benefit when reviewing the Sustainable Hospitality Alliance’s aims and objectives, and in planning activities and setting strategy for the year ahead.

Summary of main activities

To achieve our objectives, we work with our members, partners and other stakeholders, to assess the key global challenges affecting our planet and its people. We then prioritise our activities and programmes to identify where we can collectively deliver the most positive impact towards our mission.

Aligned with the United Nations Sustainable Development Goals (SDGs), we commit to drive continued action in the following areas:

People – Advancing fair and inclusive opportunities for people and communities now and for future generations.

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Planet – Safeguarding our natural environment for a thriving and diverse world for all.

Policy on social investment and grant making

The charity works in partnership with its members and with organisations engaged in programmes in alignment with the Alliance’s objectives to deliver integrated social investment programmes particularly where members and partners can add value and reach to the Alliance’s objectives and activities as described above.

The trustees are mindful of their duties with respect to ensuring the charity is carrying out its purposes for the public benefit, that protecting people and safeguarding responsibilities are a governance priority and a fundamental part of its operations, and that where operating through partners, and especially internationally, trustees have legal duties and responsibilities in carrying out due diligence checks and monitoring in relation to the charity’s involvement with external bodies and individuals and verifying the end use of charitable funds.

Thus where working with partners, the charity:

During the year the charity funded work with the following partners:

All were programmes training young vulnerable people for entry to the hotel industry.

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Contribution made by members and volunteers

The members of the Sustainable Hospitality Alliance are the corporate organisations supporting the Alliance through annual financial contributions and involvement in our work. They do not have a formal governance role.

The members make up approximately 30% of the global hotel industry by rooms and currently include 18 world-leading hotel companies with a combined reach of over 35,000 properties and 5.5 million rooms, including large and small hotel companies with both international and regional portfolios.

The Alliance launched its affiliate member programme in December 2021. The purpose of affiliate membership is to invite influential players across the value chain to participate in dialogue with each other and with our hospitality members, to share expertise and learning, to influence our pathway to become truly regenerative and to challenge, enable and inspire the movement through collaboration. Affiliate members have an advisory rather than a governance role and convene as the Affiliate Advisory Council. There are currently six affiliate members in place.

As our members differ in the size and scale of their operations, ownership structures, geographic footprint and the stage of organisational maturity on their sustainability journey, this gives us unique insights into the industry, and awareness of what is needed to drive progress on sustainability across the industry. With their technical know-how and expertise, we design and pilot solutions, create tools and resources, and showcase best practices to help any hotel, anywhere in the world, get started and progress on its sustainability agenda.

Our members also, from time to time, offer us additional support, in terms of secondments, to help us get skills, resources and expertise in support of our work, either operationally or programmatically, and operate in a cost-effective way.

Throughout 2021, the global pandemic continued to result in the temporary closure of hotels across the world. Many staff were either placed on furlough, made redundant, or working reduced hours. We therefore welcomed the support and expertise of several volunteers from our members and other organisations, who supported us to complete the operational set up of the charity including systems and policy development such as GDPR and provided their expertise to support the delivery of our activities in human rights and climate action.

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Key achievements and performance: People

Employability:

Through our employability programme, we focus on supporting young people who have faced a range of barriers (including people from low-income families, those living without parental care, survivors of human trafficking, refugees, and people with disabilities). Our programme aims to support them in developing the skills and experience to gain and sustain employment in hospitality and across many industries.

Our flexible programme delivery model consists of 100 hours of classroom training delivered through our local non-profit implementing partners. This is followed by two to four months of practical training with local employers. The trainees are then supported to find work with local businesses

In 2021 we supported:

Giving disadvantaged people the skills to succeed

In June 2021 we launched our new core skills employability curriculum. This comprehensive training resource provides trainees with the skills and information to feel more confident and prepared to begin work in a hotel or related workplace – particularly those who may not have previously had access to this type of environment.

The curriculum was designed to ensure that it is accessible for people from different backgrounds, including people with disabilities and survivors of human trafficking. It was developed using industry expertise to give trainees the best chance of success in a hotel career. This included bringing together the skills commonly contained across hotel employers’ training programmes, technical expertise from IHCL, education and disability specialists, supported by an IHG Foundation legacy gift.

The aim is that this resource is not only a crucial first element of our own employability programme, but that it is also available for any qualified NGO or hospitality company to run their own local programmes to support more disadvantaged people to build a better future.

Learning how to adapt to support young people during the pandemic

The pandemic made employability programmes such as our programme even more essential. Young people were disproportionately impacted by the pandemic through loss of employment and disruption to education and career progression. It is estimated that more than one in six young people lost their work because of the crisis.[1]

Despite the continuing impact of Covid-19 we were able to strategically maintain operations in four countries where we had funded projects: India, Sri Lanka, Kenya, and Nigeria.

The classroom training has always been a critical element of the training experience. It enables the trainees to gain skills before entering a workplace and develop a connection and support network

1 ILO (2020), available from www.ilo.org

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with the other students. We were pleased to be able to maintain the classroom element, by switching to virtual learning sessions. This also enabled us to thoroughly pilot the curriculum in this environment, which expands its ability to be used in different programme models.

The second challenge was the closure of the hotels who would normally take part in the programme, and who have a need for motivated junior staff members. We have always recognised the value of the transferable skills learned in the hospitality industry – such as teamwork, decision making, customer service and time-management – therefore we were able to place students in relevant workplaces where the need for employees was greater. This included hospitals, call centres, and food services.

These adaptation and developments have provided valuable learning and will now be incorporated into the model going forward to expand the delivery options of the programme and provide even more young and disadvantaged people with the opportunity to develop rewarding careers.

“ The programme has helped me to be different, to be a pioneer and a leader in the hospitality sector .” Oluwamayowa Eleanor Boyo, Nigeria.

“ This programme has made a huge difference in my life, as it has helped me to grow both professionally and personally. I feel more positive and confident about myself. I am thankful for this new job in housekeeping which will give me work experience and financially support me especially during this pandemic ” Gudiya (name changed to protect identity), India

“I like speaking to people. I wanted to make a career in guest relations but would often be afraid to make a good impression. This program has helped me to increase my knowledge and sharpen my communication skills. I feel happy and confident. I see myself as a successful person in the future.” Ragini (name changed to protect identity), India

Human rights:

Recognising that migrant workers have been left even more susceptible to exploitation during the pandemic, we increased our efforts to support ethical recruitment in line with our human rights agenda.

Following the launch of our Principles on Forced Labour – a set of three guiding principles to unite the industry to address the key drivers of forced labour – we have focussed on developing strategic partnerships with a variety of international agencies including International Organization for Migration (IOM) funded by the US Department of State through the Bureau of Population Refugees and Migration, the Global Fund to End Modern Slavery with funding provided by the United States government, and Humanity United. This work is focused on creating and piloting a number of initiatives on advancing ethical recruitment practices for hotels at all levels.

Our work includes raising awareness and improving corporate governance by providing guidance to the industry to strengthen existing or create new policies and commitments that align with ethical recruitment principles.

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We are also promoting ethical recruitment in day-to-day operations including how to incorporate into operational streams including with business partners and suppliers, conduct due diligence and set up grievance and remediation processes.

Multi-stakeholder public-private co-operation on ethical recruitment

Human rights issues are significant and complex and cannot be addressed by any single stakeholder working in isolation. Our programmes are co-created through multi-stakeholder partnerships including international agencies, governments, and civil society, as well as leveraging insights and support from our member hotel companies and the wider industry.

As part of the partnership with IOM, we have been piloting training for key hospitality stakeholders in HR, Operations and Finance/Procurement at country level, hotel level, and corporate level with the aim to establish ethical recruitment standards in cross-border labour migration. These have been piloted with over 170 participants, and the learnings incorporated to aid usability. The resources developed as part of this initiative will be made available for the broader industry with the aim of driving ethical recruitment practices across the sector.

Key achievements and performance: Planet

Climate action:

To continue our drive to decarbonise the hospitality industry, we were proud to be a launch partner of the UNWTO Glasgow Declaration on Climate Action launched at the UN Climate Change Conference (COP26). The aim is to encourage the acceleration of climate action in tourism by securing commitments to reduce emissions in tourism by at least 50% over the next decade and achieve Net Zero as soon as possible before 2050.

In our role as a supporting organisation, we are:

Our trustees, Catherine Hammond and Yasmin Diamond, were representatives of the Sustainable Hospitality Alliance on the launch panel hosted by Dr. Dirk Glaesser, Director or Sustainable Development of Tourism at UNWTO and Niclas Svenningsen, Manager of Global Climate Action at UNFCCC.

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Striving for zero

The hospitality industry is a complex one with many stakeholders who all need to be engaged to ensure we achieve the emissions reductions required for a sustainable future. To support the industry to make net zero commitments and, crucially, take action against them, we co-launched the Net Zero Methodology for Hotels. This resource provides practical guidance on how to set a baseline and milestones, understand emissions including the wider value chain, and commence net zero plans.

Responsible resourcing

The use of unnecessary and problematic plastics is a particular issue in hospitality and a key priority to address. This year, we became a signatory of the Global Tourism Plastics Initiative (GTPI), led by UNEP and UNWTO, which unites the tourism sector behind a common vision to address the root causes of plastic pollution.

One challenge in facilitating the reduction of plastic waste is having a clear method for measuring and monitoring plastics use. We are therefore working with UNEP, UNWTO and Greenview to create a methodology that will enable individual businesses to understand and manage their impacts, while also through GTPI, increasing our understand of the impact at an industry-level to provide further support to help accelerate progress.

Reducing industry waste

Another area that was identified as being insufficiently monitored is overall waste, including food waste. We therefore collaborated with WWF and Greenview to launch the Hotel Waste Measurement Methodology . This is designed to provide a common approach for the hotel industry to collect data, and measure and report waste. This methodology creates a consistent way for major brands and individual properties to set meaningful goals to reduce waste, keep it out of landfills, and track progress against those goals over time.

We facilitated consultation with member companies to ensure the methodology was applicable to all hotels across the industry and will therefore have the maximum effect in enabling the reduction of waste and food waste.

Supporting the recognition of environmental impact

Organisations globally are increasingly focused on understanding the sustainability impacts of their supply chains, including hotels used for business travel and meetings and events.

To support organisations to understand how they can determine the sustainability of hotels in their supply chain, we created guidance which provides insight on the type of questions that help determine sustainability, as well as where they are best directed to ensure the highest quality responses are received. This guidance enables customers to include environmental and social performance in their decision-making, while helping to ensure that the most meaningful impacts are being assessed.

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Guiding wider industry thinking

As the experts in sustainable hospitality, the Alliance has been asked to sit on various industry committees including:

Plans for future periods

We recognise the need to support responsible recovery post-pandemic, raise aspirations, and enable the hotel industry to play the greatest role it can in leveraging its global might and local presence to support and protect the planet and its people.

Planet :

The need for increased action on environmental impact – from all sectors – is now urgent and recognised by governments, business and the public. We have therefore set a global ambition for the industry of net positive hospitality. To support every hotel to work towards this ambition – no matter their starting point – we are developing the Pathway to Net Positive Hospitality. This is a practical strategic framework with increasing stages of environmental maturity. The aim is also to encourage a more joined up approach and shared responsibility towards sustainability, with actions for asset owners, as well as brands and operators. The Pathway covers key environmental actions including climate action, water stewardship, waste and circular economy, and biodiversity protection and regeneration. We launched the first two stages of the Pathway in March 2022, and we are now carrying out further consultation to fully explore the more complex challenges.

People:

In addition to our focus on human rights and employability, we recognised the need to add equity, diversity and inclusion (EDI) to our people agenda. We will conduct a benchmarking exercise across the industry and related sectors to identify key areas of work required to support the hospitality industry to promote EDI. In addition, we are currently reviewing gaps in our work on human rights to make it more universally applicable for the industry; and reconsidering our focus on youth for potential broadening to inclusive employment regardless of age.

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Financial review

The Charity was registered on 24 March 2020, having been registered as a company on 20 December 2019, and launched independent operations on 1 October 2020, having separated as a programme from Business in the Community (BITC), a registered charity in England and Wales (297716) and Scotland (SC046226), which is part of Prince’s Charities group, where it had been housed as “International Tourism Partnership” (ITP) since 2013.

2021 saw the first full year of independence, with income and expenditure building on the secure foundations signed off for the initial financial period of October to December 2020.

During its first full financial year of operation, the Sustainable Hospitality Alliance recorded a net surplus on operations during the period of £103,198, reached after Income of £1,012,951 and Expenditure of £909,754.

Our income came from Charitable Grants of £644,742, where support is received under specific agreements supporting restricted activities aligned to our objectives from a range of Institutional Donors, Foundations and Trusts and Corporate Bodies, as listed in the Notes to the Accounts, Membership contributions of £306,209 related to the contributions from our corporate members, and Donations of £62,241, including in-kind donations of £57,013 comprising a series of professional assignments contributed pro-bono by Ashurst LLP, by members and other associates focussing largely on legal and operational support for which we are very grateful.

Expenditure comprises Support Costs (including the value of In-Kind donations), Staff Costs, and Grants to Partners and is analysed in the accounts to Fundraising and publicity, and Expenditure on charitable activities, split between the major activities of the Alliance, as set out in the Notes to the Accounts, the highest expenditure being on Human Rights and Youth Employment work.

At 31 December 2021, both Net Assets and Funds stood at £667,461. Net Assets included Cash held of £1,170,431, with Accruals and deferred income standing at £642,103, the majority of which is pre-paid membership or Deferred income and largely explains the excess of Cash over Net Assets.

Funds were made up of Restricted Funds of £40,095 and Unrestricted Funds of £627,365, comprising General Funds of £590,726, and Designated Funds of £36,639, related to grant funding from Humanity United, which is towards organisational support but is required to be spent and reported during 2022.

Structure, Governance and Management

Governing document

The Sustainable Hospitality Alliance is a company limited by guarantee governed by its Memorandum and Articles of Association dated 16 December 2019. It is registered as a charity with the Charity Commission.

Appointment of trustees

As set out in the Articles of Association the business of the Charity is governed by the Board of Trustees, the first members of which were the four subscribers to the registration of the Alliance and a Company. The number of Trustees must be a minimum of three and no more than nine. Trustees may be appointed by a resolution of the Board and serve for a term of up to three years and can be eligible for re-appointment for a further period of three years.

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Trustee induction and training

New trustees undergo orientation to brief them on: their legal obligations under charity and company law, the Charity Commission guidance on public benefit, and inform them of the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of the charity. During orientation they meet key employees and other trustees. Trustees are encouraged to attend appropriate external training events where these will facilitate the undertaking of their role.

Organisation

The Board of Trustees, which can have up to nine members, administers the charity. The board normally meets quarterly and has one sub-committee, the Finance Risk and Audit Committee, which also meets quarterly in advance of Board meetings or as often as necessary. A Chief Executive Officer is appointed by the trustees to manage the day-to-day operations of the charity. To facilitate effective operations, the Chief Executive Officer has delegated authority, within terms of delegation approved by the trustees, for operational matters including finance and employment.

The Alliance’s Chief Executive Officer Madhu Rajesh left her position to take on another role in September 2021. She was replaced by Patrick O’Meara as interim CEO in August 2020 to ensure an effective handover while the board sought a permanent CEO. Glenn Mandziuk has accepted the role and started in the role in May 2022. The trustees would like to record their thanks to Madhu and Patrick for their work in supporting the Alliance so effectively into 2022.

Related parties and co-operation with other organisations

None of our trustees receive remuneration or other benefit from their work with the charity. In 2021 as per our articles an exception was made for a payment to trustee Steve Farrant. This payment was for consultancy support to the Sustainability Strategy for £4269 from May to July 2021. As per the requirements of our articles this has been separately declared in the accounts and was approved by special resolution by the board of trustees, with Steve Farrant recused from the decision to approve.

Trustees must declare any direct or indirect interest that conflicts, or may conflict with the interests of the Charity, because the Trustee or a Connected Person may receive a benefit from the Charity or has some separate interest or duty in a matter to be decided, or in relation to information which is confidential to the Charity. Declarations and updates are requested at each team meeting. Similarly all payments are reviewed monthly for related party transactions.

Pay policy for senior staff

The pay of the senior staff has been determined by Management together with the Finance Risk and Audit Committee on a review of pay levels in other similar organisations.

Principal risks and uncertainties

The trustees have a risk management strategy which comprises:

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and probability, provides a narrative commentary for the quarter, and details controls and mitigations in place and planned.

The trustees have assessed the risks that the Alliance is exposed to and have identified that the principal risks include:

Reserves policy and going concern

The Trustees, having considered the risks outlined above have determined a desired range of reserve levels to be held in light of these risks to lie between £358,000 and £603,000.

The reserves to be deployed should be unencumbered by prior obligation and held as liquid assets.

Currently the organisation holds £627,365 of Unrestricted Reserves, of which £583,803 are unencumbered and free to be deployed to use. This level within the required reserves range.

The trustees judged that a higher level of reserves was prudent given the uncertainty regarding Covid but as this risk has reduced the plan in 2022 and 2023 will be to draw down on these

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reserves, but remain within the desired range. The budget for 2022 therefore includes some draw down on the reserves in order to build the team, whilst remaining within the recommended reserves requirement and maintaining realistic fundraising targets

The trustees review the financial circumstances of the Alliance as part of the quarterly FRAC review and consider that adequate resources continue to be available to fund the activities of the trust and group for the foreseeable future. The trustees are of the view that the company is a going concern.

Our approach to fundraising activities

The charity raises funds from member contributions, from institutional donors including Trusts and Foundations, International Development Organisations and Government Institutions in the UK and internationally. We have developed an Ethical Fundraising Policy to guide decisions on solicitation and acceptance of funds.

The charity does not currently actively fundraise from the public or run legacy campaigns or undertake similar fundraising activities in its own right. The trustees are though pleased to receive unsolicited gifts and legacies from patrons and supporters who generously support our work.

No complaints have been received from funders or beneficiaries in respect of fundraising activities undertaken by the alliance.

Trustees’ responsibilities in relation to the financial statements

The charity trustees (who are also the directors of the Sustainable Hospitality Alliance for the purposes of company law) are responsible for preparing a trustees’ annual report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to:

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

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

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governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement as to disclosure to our auditors

In accordance with company law, the Company’s Directors confirm that:

In preparing the Report of the Trustees the trustees have taken advantage of the exemptions available to small companies.

This report was approved by the board of trustees and signed on their behalf by Wolfgang M. Neumann, Chair:

Date: 22 June 2022

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Independent Auditors report to the Trustees of Sustainable Hospitality Alliance

Opinion

We have audited the financial statements of Sustainable Hospitality Alliance for the period ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially

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misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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 (which incorporates the strategic report and the directors’ 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:

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on pages 15 and 16, 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 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.

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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 is detailed below:

Based on our understanding of the charitable company and the sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements of the Charity Commission, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011, Companies Act 2006 and payroll taxes.

We evaluated management’s opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in certain accounting estimates and judgements such as the income recognition policy applied to grant income. Audit procedures performed by the engagement team included:

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. A further description of our responsibilities for the audit of the financial statements is located 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.

Steven Harper (Senior Statutory Auditor) 10 Queen Street Place For and on behalf of Haysmacintyre LLP, Statutory London Auditors Date: 29 June 2022 EC4R 1AG

Independent Auditors Report to the Trustees of Sustainable Hospitality Alliance

21

SUSTAINABLE HOSPITALITY ALLIANCE STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure account)

FOR THE YEAR ENDED 31 DECEMBER 2021

Note
INCOME FROM:
Donations and legacies
2A
Alliance Membership contributions
Charitable activities
Grants
3
TOTAL INCOME
EXPENDITURE ON:
Raising funds
Fundraising and publicity
Charitable activities
Human Rights
Youth Employment
Climate Action
Water Stewardship
Cross organisational activities
TOTAL EXPENDITURE
5
Net gains/(losses) on investments
NET INCOME BEFORE TRANSFER
FROM BUSINESS IN THE COMMUNITY
Net Transfer from Business In the Community
2B
NET INCOME
4
Transfer between funds
NET MOVEMENT IN FUNDS
Reconciliation of funds:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Funds
£
62,001
306,209
5,000
373,210
83,710
4,530
4,588
5,923
5,923
74,352
179,027
-
194,182
-
194,182
-
194,182
433,183
627,365		 Restricted
Funds
£
-
639,742
639,742
-
236,652
465,575
28,499
-
-
730,726
-
(90,985)
-
(90,985)
-
(90,985)
131,080
40,095		 Total
Funds
Year ended
31-Dec-21
£
62,001
306,209
644,742
1,012,951
83,710
241,183
470,164
34,422
5,923
74,352
909,754
-
103,198
-
103,198
-
103,198
564,263
667,461

All transactions are derived from activities that commenced during the period. The split between unrestricted and restricted donations and legacies is shown in note 3. There was no other restricted income or expenditure for the year ended 31 December 2021. All recognised gains and losses are included in the Statement of Financial Activities.

22

SUSTAINABLE HOSPITALITY ALLIANCE STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure account)

FOR THE PERIOD ENDED 31 DECEMBER 2020

Note
INCOME FROM:
Donations and legacies
2A
Alliance Membership contributions
Charitable activities
Grants
3
TOTAL INCOME
EXPENDITURE ON:
Raising funds
Fundraising and publicity
Charitable activities
Human Rights
Youth Employment
Climate Action
Water Stewardship
Cross organisational activities
TOTAL EXPENDITURE
5
NET INCOME BEFORE TRANSFER
FROM BUSINESS IN THE COMMUNITY
Net Transfer from Business In the Community
2B
NET INCOME
4
Transfer between funds
NET MOVEMENT IN FUNDS
Reconciliation of funds:
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
Funds
£
39,154
62,000
131,406
232,560
20,307
18,225
4,909
5,261
5,261
57,887
111,850
120,710
308,899
429,609
3,574
433,183
-
433,183		 Restricted
Funds
£
-
90,759
90,759
-
20,592
74,366
8,303
-
-
103,261
(12,502)
147,156
134,654
(3,574)
131,080
-
131,080		 Total Funds
Period
ended
31-Dec-20
£
39,154
62,000
222,165
323,319
20,307
38,817
79,275
13,564
5,261
57,887
215,111
108,208
456,055
564,263
-
564,263
-
564,263

Notes on the accounts year ended 31 December 2021

23

Sustainable Hospitality Alliance Company Number 12373950

BALANCE SHEET

AS AT 31 DECEMBER 2021

Note
FIXED ASSETS
Tangible assets
8
Investments
9
CURRENT ASSETS
Debtors
11
Cash at bank and in hand
CREDITORS: amounts falling
12
due within one year
NET CURRENT ASSETS
TOTAL ASSETS LESS
CURRENT
LIABILITIES
NET ASSETS
FUNDS
14
Restricted funds
Unrestricted funds:
Designated funds
General funds		 2021
£
£
6,923
-
6,923
155,495
1,170,431
1,325,926
(665,388)
660,538
667,461
667,461
40,095
36,639
590,726
627,365
667,461		 2020
£
£
5,279
-
5,279
191,394
951,559
1,142,953
(583,969)
558,984
564,263
564,263
131,080
134,938
298,245
433,183
564,263		 2020
£
£
5,279
-
5,279
191,394
951,559
1,142,953
(583,969)
558,984
564,263
564,263
131,080
134,938
298,245
433,183
564,263
5,279
558,984
564,263
564,263
131,080
134,938
298,245
433,183
564,263

The financial statements have been prepared in accordance with the provisions applicable to entities subject to the small companies regime. The financial statements were approved and authorised for issue by the Trustees on 22 June 2022 and were signed below on its behalf by:

Wolfgang M. Neumann. Chair.

24

Sustainable Hospitality Alliance STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Note 2021 2020
£ £ £ £
Cash Flow from operating activities 20 223,301 957,318
Cash flows from investing activities
Payments to acquire tangible fixed assets (4,429) (5,759)
Cash used in investing activities (4,429) (5,759)
Increase/(Decrease) in cash and cash
equivalents in the year 218,872 951,559
Cash and cash equivalents at the beginning of the
year 951,559 -
1,170,431 951,559
Total cash and cash equivalents at the end of the year 1,170,431 951,559
Cash and cash equivalents
Cash at bank and in hand 1,170,431 951,559
Cash at bank and in hand at the end of
the reporting period 1,170,431 951,559

Notes on the accounts year ended 31 December 2021

25

1 Accounting Policies

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a) Basis of preparation

The financial statements have been prepared in accordance with the 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)) (2nd Edition effective 1 January 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Sustainable Hospitality Alliance meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

b) Preparation of the accounts on a going concern basis

The Sustainable Hospitality Alliance reported net income of £103,198 for the period. The trustees are of the view that ongoing funding agreements and membership contributions have secured the immediate future of the Sustainable Hospitality Alliance for the next 12 to 18 months, and that the current cash position and future projections indicate sufficient levels to continue operations without interruption, and that on this basis the charity is a going concern for the foreseeable future and that there are no material uncertainties in relation to the ability of the charity to continue as a going concern.

The trustees remain vigilant of the need to secure on-going financial support and to monitor financial commitments and cash flows to maintain the organisation’s financial viability.

c) Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received, and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received, and the amount can be measured reliably and is not deferred.

Grant income received in advance of performance or provision of other specified service it is deferred until the criteria for income recognition are met (see note 23).

d) Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item 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), the general time of volunteers not recognised; refer to the trustees’ annual report for more information about their contribution.

On receipt, donated 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

Notes on the accounts year ended 31 December 2021

26

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.

e) 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.

f) Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity. Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for particular areas of the Sustainable Hospitality Alliance’s work or for specific projects being undertaken by the Sustainable Hospitality Alliance.

g) 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 comprise fundraising and publicity and their associated support costs.

• Expenditure on charitable activities includes the costs of undertaking specific activities and projects in Human Rights, Youth Employment, Climate Action, Water Stewardship and Cross organisational activities and their associated support costs.

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

h) Allocation of support costs

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back-office costs, finance, personnel, other organisational running costs and are classified between Office expenses, Governance costs and Other support costs. These costs have been allocated between cost of raising funds and expenditure on charitable activities.

Support costs have been allocated to activities (whether raising funds or charitable activities) on the following bases:

• Where a support cost can be specifically attributed to an activity it is directly allocated

• Where the support costs have a general effect on activities, they are apportioned to activities on the basis of staff time recorded undertaking the activities

Support costs related to publicity and promotion are not reapportioned to charitable activities.

i) Tangible fixed assets

Individual fixed assets costing £500 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight-line basis as follows:

Asset Category

Computer equipment

Over 3 years

j) 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.

Notes on the accounts year ended 31 December 2021

27

k) 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.

l) 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.

m) Pensions

Existing employees of the charity were entitled to join the defined contribution Group Personal Pension Plan operated by Scottish Widows which is funded by contributions from employee and employer.

n) Critical accounting judgements and key sources of estimation uncertainty

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. The Trustees do not consider there are any critical judgements or sources of estimation uncertainty affecting assets or liabilities at the balance sheet date which is likely to result in a material adjustment to their carrying amount in the next financial year.

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 the settlement value.

Notes on the accounts year ended 31 December 2021

28

NOTES ON THE ACCOUNTS YEAR ENDED 31 December 2021

NOTES ON THE ACCOUNTS YEAR ENDED 31 December 2021
2A.
DONATIONS AND LEGACIES
Donations
Gifts in kind
DONATIONS AND LEGACIES 2020
Donations
Gifts in kind		 Unrestricted
£
4,988
57,013
62,001
Unrestricted
£
6,144
33,010
_39,154 _		 Restricted
£
0
-
-
Restricted
£
0
-
-		 Year
ended
31-Dec-
21
£
4,988
57,013
62,001
Period
ended
31-Dec-
20
£
6,144
33,010
_39,154 _

The value of volunteers, consultants and corporate entities time is estimated at £57,013 (£33,010 in 2020). We have included the value where it is quantifiable but recognise that the Charity received a significant level of support, which we are unable to quantify.

2B. TRANSFER FROM BUSINESS IN THE COMMUNITY

Transfer - cash, assets and balance owing
Recognised as Trade debtors
Recognised as Deferred and prepaid membership contributions
Recognised as accrued income
TRANSFER FROM BUSINESS IN THE COMMUNITY 2020
Transfer - cash, assets and balance owing
Recognised as Trade debtors
Recognised as Deferred and prepaid membership contributions
Recognised as accrued income		 Unrestricted
£
-
-
-
-
-
Unrestricted
£
541,357
15,000
(247,458)
-
308,899		 Restricted
£
-
-
-
-
-
Restricted
£
91,156
20,000
-
36,000
147,156		 Year
ended
31-Dec-
21
£
-
-
-
-
-
Period
ended
31-Dec-
20
£
632,513
35,000
(247,458)
36,000
456,055

Notes on the accounts year ended 31 December 2021

29

3.
CHARITABLE ACTIVITIES
Grants
Humanity United
Souter Charitable Trust
Global Fund to End Modern Slavery
Sightsavers (Royal Commonwealth Society for the Blind)
Hyatt Community Grants Fund
TUI Care Foundation
The J. Willard and Alice S. Marriott Foundation
Marriott International
The International Labour Organisation (ILO)
International Organisation for Migration (Geneva)
International Organisation for Migration (Philippines)
United Nations Environment Programme (UNEP)
Booking.com
CHARITABLE ACTIVITIES 2020
Grants
Humanity United
Global Fund to End Modern Slavery
Sightsavers (Royal Commonwealth Society for the Blind)
Hyatt Community Grants Fund
The J. Willard and Alice S. Marriott Foundation
The International Labour Organisation (ILO)
International Organisation for Migration (Geneva)
International Organisation for Migration (Philippines)
4.
NET INCOME FOR THE YEAR
This is stated after charging the following:
- Depreciation
- Auditors remuneration for audit services
for audit services
for other services
- Operating lease rentals		 Unrestricted
£
-
5,000
-
-
-
-
-
-
-
-
-
-
-
5,000
Unrestricted
£
131,406
-
-
-
-
-
-
-
131,406		 Restricted
£
-
-
102,541
85,520
57,616
7,703
138,074
18,932
18,304
155,980
38,271
16,802
-
639,742
Restricted
£
-
34,349
27,061
252
9,243
649
10,822
8,383
90,759
Year
ended
31-Dec-21
£
2,785
10,000
1,500		 Year
ended
31-Dec-
21
£
-
5,000
102,541
85,520
57,616
7,703
138,074
18,932
18,304
155,980
38,271
16,802
-
644,742
Period
ended
31-Dec-
20
£
131,406
34,349
27,061
252
9,243
649
10,822
8,383
222,165
Period
ended
31-Dec-
20
£
480
8,750
1,500

Notes on the accounts year ended 31 December 2021

30

5. EXPENDITURE FOR THE YEAR ENDED 31 December 2021

Support
Costs
£
a)
ANALYSIS OF EXPENDITURE
Raising Funds
Fundraising and
publicity
7,400
Expenditure on
charitable
activities:
Human Rights
33,780
Youth
Employment
63,613
Climate Action
6,091
Water
Stewardship
1,994
Cross
organisational
activities
37,352
TOTAL
EXPENDITURE
150,230		 Staff Costs
£
76,310
182,205
278,981
21,670
2,515
17,181
578,862		 Grants
to
Partners
£
-
-
97,275
-
-
-
97,275		 Other Direct
£
-
25,195
30,296
6,662
1,414
19,818
83,385		 Total
2021
£
83,710
241,181
470,164
34,422
5,923
74,352
909,752		 Total
2020
£
20,308
38,817
79,275
13,564
5,261
57,886
215,111

The costs above include support costs which are allocated on the basis of expenditure undertaken.

b) ANALYSIS OF SUPPORT COSTS FOR THE YEAR ENDED DECEMBER 2021

Office
expenses
£
Raising Funds
Fundraising and
publicity
-
Expenditure on charitable activities:
Human Rights
-
Youth
Employment
536
Climate Action
-
Water
Stewardship
-
Cross
organisational
activities
15,158
TOTAL
SUPPORT
COSTS:
15,694		 Governance
costs
£
-
-
-
-
-
12,000
12,000		 Other
support
costs
£
7,400
2,078
7,189
1,406
1,419
103,045
122,536		 Reallocation
£
-
31,702
55,888
4,685
576
(92,851)
-		 Total
2021
£
7,400
33,780
63,613
6,091
1,994
37,352
150,230		 Total
2020
£
18,433
15,766
11,947
5,617
3,491
23,828
_79,082 _

The basis for apportionment of support costs is set out in Note 1i). Include in Other support costs is the value of £57,013 of inkind contributions received.

c)

GOVERNANCE
COSTS
Legal and
professional,
including audit		 Year
ended
31-Dec-
21
£
12,000
12,000		 Period
ended
30-Dec-
20
12,300
12,300

Notes on the accounts year ended 31 December 2021

31

EXPENDITURE (cont)
Unrestricted
Restricted
Grants paid to
institutions
£
£
Cheshire Disability Services Kenya
(CDSK)
-
6,129
Kherwadi Social
Welfare Association
-
28,131
Stanforte Edge
-
25,933
Spence Evoluzione
Charitable Trust
-
7,844
Don Bosco Tech
Society
-
29,238
-
97,275
6.
STAFF NUMBERS AND COSTS
The average number of persons employed during the year were as follows
Raising funds
Charitable activities
Support		 EXPENDITURE (cont)
Unrestricted
Restricted
Grants paid to
institutions
£
£
Cheshire Disability Services Kenya
(CDSK)
-
6,129
Kherwadi Social
Welfare Association
-
28,131
Stanforte Edge
-
25,933
Spence Evoluzione
Charitable Trust
-
7,844
Don Bosco Tech
Society
-
29,238
-
97,275
6.
STAFF NUMBERS AND COSTS
The average number of persons employed during the year were as follows
Raising funds
Charitable activities
Support		 Year ended
Period
ended
31-Dec-21
31-Dec-20
£
£
6,129
10,928
28,131
9,903
25,933
7,844
29,238
97,275
20,831
2021
2020
No.
No.
1.5
0.2
7.0
4.7		 Year ended
Period
ended
31-Dec-21
31-Dec-20
£
£
6,129
10,928
28,131
9,903
25,933
7,844
29,238
97,275
20,831
2021
2020
No.
No.
1.5
0.2
7.0
4.7		 Year ended
Period
ended
31-Dec-21
31-Dec-20
£
£
6,129
10,928
28,131
9,903
25,933
7,844
29,238
97,275
20,831
2021
2020
No.
No.
1.5
0.2
7.0
4.7
Support 0.8 0.5
Other 0.0
9.3 5.4
The aggregate payroll costs of these persons were as follows
Salaries and wages
Social security costs
Pension scheme contributions		 £
490,673
58,431
29,758
578,862		 £
91,106
10,612
5,241
106,959

The number of employees whose emoluments, excluding pension contributions and employer's national insurance who were in excess of £60,000 were:

£60,000 - £69,999
£70,000 - £79,999		 2021
No.
1
1
2		 2020
No.
-
-
-

Contributions of £29,758 (£5,241 in 2020) were paid on behalf of these employees into a money purchase pension scheme.

The total employee benefits of the key management personnel of the Charity were £166,495 (£45,564 in 2020)

Notes on the accounts year ended 31 December 2021

32

7. TRUSTEES' REMUNERATION AND REIMBURSED EXPENSES

Reimbursements of travelling expenses totalling £0 was paid to Trustees for attendance at Trustee meetings. One contract for consultancy support to the Sustainable Strategy was paid to trustee Steve Farrant. The total value paid in the year to 31 Dec 2021 was £4,269

8. TANGIBLE ASSETS

Group and Charity
Cost or Valuation
As at 1 January 2021
Additions
Disposals
At 31 December 2021
Depreciation & Amortisation
As at 1 January 2021
Charged in Year
Disposals
At 31 December 2021
Net Book Value
At 01 January 2021
At 31 December 2021		 Computer
Equipment
£
5,759
4,429
-
10,188
(480)
(2,785)
-
(3,265)
5,279
6,923

09. INVESTMENTS

There were no investments on behalf of the charity at Dec 2021

10. TAXATION

Sustainable Hospitality Alliance is a registered charity and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

Notes on the accounts year ended 31 December 2021

33

11
DEBTORS
Trade debtors
Other debtors
Prepayments and accrued income
12
CREDITORS: Amounts falling
due within one year
Trade creditors
Other creditors including taxation and social security
Grant commitments
Accruals and deferred income		 Charity
2021
£
140,413
-
15,081
155,495
Charity
2021
£
2,205
21,079
642,103
665,388		 Charity
2020
£
45,000
82,538
63,856
_191,394 _
Charity
2020
£
3,852
26,610
553,507
583,969
13.
DEFERRED INCOME
Amount deferred in the year		 Brought
forward
deferred
income
01 Jan
2021
£
251,230
251,230		 Amount
released
in 2021
£
(203,391)
(203,391)		 Amount
deferred
in 2021
307,433
307,433		 Deferred
income
carried
forward
year
ended
31 Dec
2021
355,270
355,270

Deferred income represents income or membership contributions invoiced or received for use in future periods

Notes on the accounts year ended 31 December 2021

34

14. FUNDS
Unrestricted Funds
Designated Funds
Humanity United
General Funds
Restricted Funds
Youth Employment-restricted
Global Fund to End Modern Slavery
Sightsavers (Royal Commonwealth
Society for the Blind)
Hyatt Community Grants Fund
The IHG Foundation (UK) Trust
TUI Care Foundation
Youth Employment-broadly restricted
Marriott International
Hilton Effect Foundation
The J. Willard and Alice S. Marriott
Foundation
Human Rights
The International Labour Organisation
(ILO)
International Organisation for Migration
(Geneva)
International Organisation for Migration
(Philippines)
Sustainability
United Nations Environment Programme
(UNEP)
Booking.com
Grants		 At 31
December
2020
Income
Expenditure
Transfer
from
BITC
Transfers/
gains/
(losses)
At 31
December
2021
£
£
£
£
£
£
134,938
-
98,299
-
-
36,639
298,245
373,210
80,728
-
-
590,726
433,183
373,210
179,027
-
-
627,365
102,541
102,541
-
-
-
85,520
85,520
-
-
-
57,616
57,616
-
-
-
13,262
-
13,261
-
-
1
15,532
7,703
23,234
-
-
-
37,856
18,932
44,257
-
-
12,532
28,637
-
1,073
-
-
27,564
-
138,074
138,074
-
-
-
-
18,304
18,304
-
-
-
24,097
155,980
180,078
-
-
(1)
-
38,271
38,271
-
-
-
-
16,802
16,802
-
-
-
11,696
-
11,697
-
-
(1)
131,080
639,742
730,726
-
-
40,095
564,263
1,012,951
909,754
-
-
667,461

Notes on the accounts year ended 31 December 2021

35

FUNDS 2020
Unrestricted Funds
Designated Funds
Humanity United
General Funds
Restricted Funds
Youth Employment- restricted
Global Fund to End Modern
Slavery
Sightsavers (Royal
Commonwealth Society for the
Blind)
Hyatt Community Grants Fund
The IHG Foundation (UK) Trust
TUI Care Foundation
Youth Employment- broadly
restricted
Marriott International
Hilton Effect Foundation
The J. Willard and Alice S.
Marriott Foundation
Human Rights
The International Labour
Organisation (ILO)
International Organisation for
Migration (Geneva)
International Organisation for
Migration (Philippines)
Sustainability
Booking.com
Grants		 At 31
December
2019
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Income
£
131,406
101,154		 Expenditure
£
24,266
87,584		 Transfer
from
BITC
£
46,658
262,241		 Transfers/
gains/
(losses)
£
(18,860)
22,434		 At 31
December
2020
£
134,938
298,245
232,560
34,349
27,061
252
-
-
-
-
9,243
649
10,822
8,383
-
90,759
323,319		 111,850
34,349
27,061
252
4,738
434
-
1,863
5,669
649
11,559
8,383
8,304
103,261
215,111		 308,899
-
-
-
18,000
15,966
37,856
30,500
-
-
24,834
-
20,000
147,156
456,055		 3,574
-
-
-
-
-
-
-
(3,574)
-
-
-
-
(3,574)
-		 433,183
-
-
-
13,262
15,532
37,856
28,637
-
-
24,097
-
11,696
131,080
564,263

Notes on the accounts year ended 31 December 2021

36

ANALYSIS OF FUND BALANCES BETWEEN NET ASSETS - 15. CURRENT YEAR

Tangible fixed assets
Investments
Net current assets		 Restricted
Funds
£
-
-
40,095
40,095		 AT 31 December 2021
General
Funds
Designated
Funds
£
£
6,923
-
-
-
583,803
36,639
590,726
36,639		 Total
£
6,923
-
660,538
667,461

ANALYSIS OF FUND BALANCES BETWEEN NET ASSETS - PRIOR YEAR

Tangible fixed assets
Investments
Net current assets		 Restricted
Funds
£
-
-
131,080
131,080		 AT 31 December 2020
General
Funds
Designated
Funds
£
£
5,279
-
-
-
292,966
134,938
298,245
134,938		 Total
£
5,279
-
558,984
564,263

16. CAPITAL COMMITMENTS

Sustainable Hospitality Alliance had no capital commitments at 31 December 2021 or at 31 December 2020.

17. OPERATING LEASE REQUIREMENTS

Sustainable Hospitality Alliance had no operating lease commitments at 31 December 2021 or at 30 December 2020.

18. MEMBERS LIABILITY

In the event of the company being wound up, Trustees will each have a liability of £1.

19. PENSION COMMITMENTS

Sustainable Hospitality Alliance operates a Group pension arrangement. The overall pension charge for the year was £29,758 (£5,241 in the period to 31 December 2020). At 31 December 2021, £4,104 contributions were outstanding (£2,144 as of 30 December 2020).

Notes on the accounts year ended 31 December 2021

37

RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH

20. INFLOW

RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH
INFLOW
Net movement in funds
Investment income
Net (gains)/ losses on investments
Depreciation and amortisation
Increase/ (Decrease) in creditors
(Increase)/ Decrease in debtors
(Increase)/ Decrease in stocks
Net Cash generated by operating activities		 2021
£
103,200
-
-
2,785
92,264
25,054
-
**223,304 **		 2020
£
564,263
-
-
480
583,969
(191,394)
-
957,318

21. RELATED PARTY TRANSACTIONS

There were no related party transactions other than the trustee payment in note 7 in the current or previous accounting period.

Notes on the accounts year ended 31 December 2021

38