Charity reglstration number. 1190782 Virtual Routes Community previously known as European Cyber Confllct Research Inltlatlve Annual Report and Finandal Stst8ments for the Year Ended 31 December 2023 WESTCOTTS eH*RTERSD A¢eouNTAMT¥ • UUSIMESS ADVISFIt$
Virtual Routes Community previously known as European Cyber Conflict Research Iniliative Contents {continued) Reference and Administrative Details Trustees. Report 2to5 Independent Examlnerfs Report Statement of Flnancial Activities Balance She8t Notes to the Flnanci81 Statements 9t014
Virtual Routes Community previously known as European Cyber Conflict Research Initiative Reference and Administratlve Details Trustees: Monica Kello Max Smeets James ShSres Ja5mln Stadler (appolnted 25 July 2024) Charlty Registratlon Numb•r 1190782 Principal Offlce 47 Boutport street Bamslaple EX31 1SQ Indepandent Examlner CatherTne Willlams FCA DChA W8Stcotts {SW) LLP 47 Boutport Street Barnstaple Devon EX31 1SQ Page 1
Virtual Routes Community previously known as European Cyber Conflict Research Initiative Trustees. Report The tnjstees present the annual report together the financial stalemenls of the charity for the year ended 31 December 2023. Objectlves and activities Objects and alms The objects of the charity are to advan Èducatlon for the publlc benefit in relation to cyber confllcl and slalecraft including., 1. Promoting the study andlor facililatlng the informed analysis of issues such as national cyt*r strategies, technologies used for conducting and defending against cyber attacks. prlvatfrpublic sector partnerships and regional co-oper8t0on to prevent or reduce cyber conflict 2. Promotlng an understanding of cyber conflict and statacraft 3. Establlshing arrangements for collaboration in respect of c)er conflict studies. Mentoring and research with andlor between nalional and intemation81 universities {all colleges, faculties and departments within them), the government of the UK and other nations. non-governmental non-profft bodies and other similar organisatlons involved Ylth such work. Publlc benefft The Trustees consider the objectives of the charity, as stated above, comply wSth the Charity Commlssion Public Benefit requirements. The Tnjslees unanlmously agree that the requirement for due rogard to the public benefit guidance are satisfied. The Iruslees confirm Ihal they have complied wlth the requirements of section 17 of the Charities A 2011 to have due regard to the public benefit guidanc8 published by the Charity Commission for England and Wales. Activities The 'core program. of ECCRI consiste¢J of five main parts.- Bindlng Hook, Reigniting Technology via MuKilateralism IREMITI. cyber operations in conflict, The Cyber Security Seminar {CSSI and the European Cybersecurity Fellowship {ECFI. We have made signlficant progress to 8Stablish all programs. nding Hook In November 2023, ECCI launched a new ffledia outlet called Blnding Hook to gather expert perspectives on digital 2nd emerging technologies and securlty. Binding Hook centres the conversation on Europe In global context through opinions and analysis from practitioners and researchers. It covers traditional cybersecurfty tOPlCS and is equally Interested in the effects of other digitsl and emerging technologies on the security of people, organisatlons. and slates. Although the outlet launched in November 2023. preparations for Its launch - indudlng editor rocruitment and site development - began in June 2023. Page 2
Virtual Routes Community previously known as European Cyber Conflict Research Initiative Trustees. Report (continued) REMIT In February 2023, ECCRI began a four-year project as part of the REMIT consortium. crdInated by Maaslritht Unlversity, the REMIT project brings together leading European researchers from nine partners from Belgium, Estonia. Finland, Germany, Italy, the Netherlands, Romania and the Unlled Klngdom. REMIT 81ms to re-mobilize a Iransnatlonal collective spirit that addresses global problems through technology. It seeks to develop a better understanding of the statu5 quo, innovative methodolo9ies. and policy recommendations that support effective policies lo revitalize global democratic structures. ECCRI leads REMIT'S research stream on the economlc and societal factors that shape technology govemance. Because ECCRI Is a UK-based organization in an EU Gonsortium after Brexlt. ECCRI'S funding for participallon in this project come5 from UK Research and Innovation IUKRI}. Cyber operallons in conflict In March 2023. ECCRI held a roundt8ble in London discusslng the impact of cyb9r operations during the war in Ukraine, as a sequel to a similar event held in TallSnn in 2022. The roundtable included yber threat Intelligen and incldenl response practitioners, corporate representatives, academics, and officials from key govemmenls and intematlonal instilutlons. It wa5 made possible with fundlng from the UK National Cyber Security Centre INCSCI. ECCRI published an open report i)n the roundtable dlscussions to ensure they are accessible to the general publlc. ECF The second fellowship 2023-2024 welcomed fourteen fellows from govemment. civil society, academla. the prlvate sector, and joumalism. Follows were selected for their strong interest In cybersecurlty and their passion for drivlng change. Fellows participated in a series of workshops with topics ranglng from EU cyber policy, content moderatlon, and cW)er nomis bullding processes lo building practlcal skllls in technical analysls. Fellows also received support in policy-relevant writing, gained access to nehvorking events and receNed regular updates about the18test opportunities In th& field. ECS The Europgan Cybersecurity Seminar (ECSI provides cfft)ersecurity researchers and practitioners wlth a platform to present and gel feedback on research projects and papeTS. We hold monthly hour-long seminar meetings where participants can present research to the community. This Seminar has Ihree main goals. First, il promotes cutting-edge research and interdisciplinary dialogue. Second, il alms to foster a community of trust among Europe's cybersecurity experts. Third. it aspires to support Junior scholars who may lack local networks providing guidan since cybersecurity remains an emerging field of research. To that end. we explicltly welcome submissions by junior scholars. Financlal review During the year, the charity received donaonS totalling £119,677 {2022- £39,TIOI. During 2023 expenditure tolalled £86,25612022'. £30,787). As at the year end the charity had reserves l018lllng £86,469 (2022.. £53.0481. Page 3
Virtual Routes Community previously known as European Cyber Conflict Research Initiative Truste85' Report (continued) Pollcy on reservfjs Thg charity does not have a formal reserves policy, as the charity Ss still in a growth phase, its aim is to grow its overall ineome including reseNes. Structure, governance and rnanagemgnl Nature olgovarnlng document The charity Is a Charltable Incorporated Organisalion govemed by a formal constitution adopted 10 August 2020. The Trustees meet regulady to revlew the progress of the Charity and to make strategy decisions regarding its fvture. An advisory board of 12 members are consulted on decislons as required by the CIO constilutlon. Recruitment and appointm•nt of Irusts8s Trustee recnjilment Bnd inductlon process New trustees would be recnjlled based on expressions of interest, vetted by the existing trustees (via inteNiew if necessary). Proposed new trustees would be nomlnated by existing Iru5tees lo the board in the AGM and then confirmed. They would then have 8 handover period with the tmstee they replaced (if applicable), and induction meetings with the other trustees and key staff le.g. managers of the Fellowship programme and the semlnar). statemont of Trustees. Respon5ibillties The trustees are responsSble for preparfng the tru5tees' report and the financial sta'tements in accordance with the United Kingdom Accounllng Stsndards (United Kingdom Generally Accepted Accounting Practice} and app5icable law and regulations. The law applicable to Gharitles requires the trustees to prepare financlal statements for 88ch finanual year which give a true and fair view of the state of affairs of the charfly and of the incoming resources and application of resources of the charity for that period. In preparing these financial statsmgnls, the trustees are required to.. select sultable accounting polldes and then apply them consistent5y- observe the melhods and prfncSples in Ihe Charitles SORP., make Judgements and estimates that are reasonable and prudent., state whether appllcable accounting stsndards have been followed, subject to any mater181 departures disdosed and explained in the financial statements; and prepare the financfjal statements on the going concem basis unless it Is inappropriate to presume that the eharfty wlll continue In buslness. The trustees are responsible for keeping proper accounting records that dlsclose with reasonable accuracy al any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulatsons 2008, and th& provlslons of the ¢onstilution. The trustees are also responsible for safeguarding the assets of the thatY and hence for taking reasonable steps for the prevention and detection of fraud and other irregularltles. Page 4
Virtual Routes Community praviously known as European Cyber Conflict Research Initiative Trustees, Report (continued) The trustees are responsible for the maintenance and integrlty of the corporate and tlnandal inftirmalion induded on th8 charitable compallys website. Legislation governing the preparation 8nd dissemination of financial statements may differ from legislation In other jurisdidons. 2911012024 The annual report was approved by the trustees of the charity on behalf by.. and signed on its James Shires James Shires Trustee Page 5
Virtual Routes Community prevlously known as European Cyber Conflict Research Initiative Independent Examiner's Report to the trustees of Virtual Routes Community I report to the trustees on my examinatlon of the aOUnts of Virtual Routes Community for the year ended 31 December 2023. Responslbllitles and bas15 of report As the charty trustees ol Virtual Routes Community you are responsible for the prepardtion of the accounts In accordance with the requlrements of the Charities Act 2011 {'the Act')- I report In respect of my examination of the Virtual Routes Communitys accounts carried out under section 145 of the 2011 Act and in carying out my examination I have followed all the applicable Directions given by the Charity Commission under section 14515)Ib) of the Act. Independent examlner's statement I have completed my examination. I confirm that no materlal matters have come to my attentn in connectlon with the examination giving me cause to belleve that in any material respect: 1. accounting records were not kept in respect of Virtual Routes Community as required by secllon 130 of the Act., or 2. the accounts do not accord wlth those records; or 3. the accounts do not comply with the accounting requlrements concAmlng the form and contgnt of accounts set out in the chatieS (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give 8 'true and fair vlew which is not a matter considered as part of an independent examination. I have no concerns and have come across no other matters in connection with the examination to whlch attention should be drawn in this report in order to enable a proper understanding of the accounts to be reaGhed. rine Williams FCA DChA Weslcotts (SW) LLP Independent Examlner 47 Boutport Strg6t Barnslaple Devon EX31 1SQ Date:..*.a....... Page 6
Virtual Routes Community previously known as European Cybar Confllct Research Initiatlve Statoment of Financial Activitles for the Year Ended 31 December 2023 Unrestrlcted funds Totsl 2023 Total 2022 Note Income and Endowments from: Donations and legacies 119,677 119,677 39.770 Total income 119,677 119.677 39,770 Expendlture on: Charitable 8Ctivitles 86,256 86,256) 130,7871 {30,787 8,983 Total expenditure 86.2561 186,2561 Net Income 33,421 33,421 Net movement in funds 33.421 33,421 8,983 Reconclllatlon of funds Total funds brought forward Total fvnds carried fOard 53.048 53,048 44.065 10 86,469 86,469 53,048 All of the charity's actlvttles derive from conUnuing operatlons during the above periods. The funds breakdown for 2022 is shown in note 10. The notes on pages 9 to 14 form an integral part of these financial statements. Page 7
Virtual Routes Community previously known as European Cyber Conflict Research Initiatlve (Registration number: 1190782) Balance Sheet as at 31 December 2023 2023 2022 Note Current assets Cash at bank and In hand 87,544 54,048 Credltors: Amounts falllng due after more than one year Net assets 11.075 11,000 53,048 86,469 Funds of the charity: Unrestrlcted Income funds Unrestricted funds 86,469 53,048 Total funds 10 86,469 53.048 The financial statements on pages 7 to 14 were approved by the trustees, and authorised for Issue on 291.1Q12oa4.... and signed on their behalf by.. James Shires James Shires Trustee The notes on pages g to 14 fom an integral part of these financial statements. Page 8
Virtual Routes Community previously known as European Cyber Conflict Research Initiative Notss to the Financial Statements for the Year Ended 31 December 2023 1 Accountlng pollcles Statement of compliance The financial statements have been prepared in accordan wllh the second edition of the Charftles statement of Recomfflended Practice issued in October 2019, the Financial Reporting Standard 8pplScable In the Unlted Kingdom and Republic of Ireland IFRS 102) and the Gharitles Act 2011. Basls of preparatlon Virtual Routes Communlty meets the definition of a public benefit entty under FRS 102. The accounls {financial ststements} have been prepared under the historical cost convenlion wlth items recognised at cost or transaction value unless otherwise stated in the relevant notelsl to these accounts. The accounts are prepared in sterling which is the functional currency of the charity. Golng concern The trustees consider that there are no material uncertaintles about the tharivs ability to contlnue as 2 golng concem. Income and endowments Al incoming r8sour$ are included in the statement of financial actlvltles whBn entiuement has passed lo the charitr, It is probable that the economlc beneffts associated with the transactlon will flow to the charity and the amount can be reliably measured. The following speclfic poliGies are applied to partlcular categories of income: income from donations or grants is recognised when there is evidenc* of entitlement to the grft. receipt is probable and its amount can be measured reliably. legacy income is recognlsed when recelpt Is probable and entitlement is established. iE)come from donated goods is measured at the fair value of the goods unless this is Impractical to measure r81iabty, in whlch case the value Ss derived from the cost to the donor or the esllmated resale value. Donated facilltleg and services are reccgnised in the accounts when received rf the value can be rellably measured. No amounts are included for the contribution of general volunteers. Income from contract5 for the supply of services is recognised with the delivery of the contfacted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpos8 and returned If unspent, in which case it may be regarded as r8Stricted. Grants receivable Grants are recognised when the charity has an entitlement to the funds and any conditlons Ilnked to the grants have been mgt. Where performance conditions are attached to the grant and are yet lo be mel, the income is r8cognised as a liability and included on Ihe balance sheet as defeed income to be released. Page 9
Virtual Routes Community previously known as European Cyber Conflict Rosearch Initiative Notes to the Financial Statemants for the Year Ended 31 December 2023 (continued) Expenditure All expendlture Is recognised once there is a legal or constructive obllg81ion to that expenditure. it is probable settlement is rgquired and the amount can be measured rellably. All (x)sts are allocated to the applicable expenditure headlng that aggregate similar costs to that category. Where costs cannot be directly attrlbuled to particular headings they have been allocated on 8 basis consislenl wlth the usg of resources, wlth central staff costs allocated on the basis of time spent, and depreciation harges allocated on the portion of the asset's use. Other support cosls are allocated based on the spread of staff costs. Charitablè actlvltles Charitable expenditure cornprlses those costs Incurred by the charity In the delivery of its activitles and services for ils beneficiaries. It Includes both costs that can be allocated directly to such adivlties and those costs of 8n indirect nature necessary to support them. Support costs Support costs Include central fijnctions and have been allocated to activty cost categorles on a basis consistent with the use of resources, for ex8mple, allocating property costs by floor areas, or per caplta, staff costs by the time spent and olher Costs by their usage. Taxation The charity Is considered to pass the tests set out In Paragraph 1 Schedule 6 of Ihe FinanrE. Act 2010 and thefOre It meets the definition of a charftable company for UK corporation lax purposes. Accor(iingly, the charity is potentially exempt from taxation in respect of Income or capitsl gains received within categories covered by Chapter 3 Part 11 of th8 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exdusively to charitable purposes. Cash and cash equlvalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-temi highly liquld investments that are readlly convertible to a known amount of cash and are subject to an insignificant risk of change in value. Fund structure Unrestricted income funds are general funds that 8re avallable for use at the trustees discretion In furtheraft of the objectlvÈs of the chadty. Page 10
Virtual Routes Community previously known as European Cyber Conflict Research Initiative Notes to the Financial Statements for the Year Ended 31 December 2023 (continued) Flnanclal Instruments Recognltlon and measurement All financial assets and liabilltles are initially measured at transBction prlce linduding transaction costs), expl for those flnancial assets classified as at fair value through profil or loss, which are inillally measured 81 fair value Iwhlch is nomially the transaction price exduding transaction cost5}, unless the arrangement constitutes a finanung transaction. If an arrangement constitutes a financing transaction. the financial asset or financial liabllity is measured at the present value of the future payments dlscounted at a rnarkel rale of interest for a similar debt Instrument. Financial assets and liabilities are only offset in the statement of flnanclal posltlon when, and only when there exists a legally enforceable right lo set off the recognised amounts and the charity inlands either to setue on a nel basls. or to realise the asset and setue the liability simultaneously. Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled. bl the charity transfeTS to another party substantlally all of the risks and rewards of ownership of the financial asset. or cl the charity. despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party. Finanaal liabllities are derecognl$ed only when the obligation specified in the contract is discharged, cancelled or expires. 2 Income from donations and legacies Unrestrlctod funds General Totsl 2023 Grants, induding capital grants., Grants received 119.677 119.677 119.677 119,677 Unrestrlcted funds General Total 2022 Grants, Includlng capital grants,. Grants raceived 39,770 39,770 39,770 39,770 Page11
Virtual Routos Community previously known as European Cyber Conflict Research Initiatlve Notes to the Financial Statements for the Year Ended 31 December 2023 (continued) 3 Expendlture on charitable actlvltlos Unrestrlcted funds General Total 2023 Note Charitable activities Allocated support costs 82.947 3,309 82.947 3.309 86,256 86,256 Unrestrlcted funds General Total 2022 Note Charitsble actwities AIIoc81ed support costs 27,675 3,112 30,787 27,675 3.112 30,787 4 Analy$ls of support costs Support costs allocated to charltable activities Total 2023 Total 2022 Offlce expenses Computer soffvare and maintenanc8 costs Sundry expenses Independent Examlnatlon fees Bank charges 1,024 1.088 104 767 1,C(JO 153 1,012 1.095 178 3,309 3,112 5 Net incomingloutgolng resources Net incoming resour$ for the year include: 2023 2022 Forelgn currency lossesl{galnsl 315 14991 Page 12
Virtual Routes Community previously known as European Cyber Conflict Research Initiative Notes to the Financial Statements for the Year Ended 31 December 2023 (continued) 6 Trustees remuneratlon and expenses No trustees, nor any persons connected wllh them, have received any remuneration from the charty during the ar. No Iru5t&es have received any other benefrts from the charlty durfng the year. During the year. 3 Trustees were relmbursed expenses totalling £7,458 {2022 £4,149 reimbursement of working capital 108ns and expenses paid on behalf of the charity by one Trustee) 7 Taxation The charity is a registered chadty and is therefore exempt from taxation. 8 Cash and cash equlvalents 2023 2022 Cash at bank 87,544 54.048 9 Creditors: amounts falllng due after one year 2023 2022 Accruals 1,075 1,000 10 Funds Balance at 1 January 2023 Balance at 31 December 2023 Incomlng resources Resource$ 8xpended Unrestricted funds General General Funds 53.048 119,677 {86,256 86,469 Balance at 1 January 2022 Balance at 31 December 2022 Incomlng resources Resources expended Unrestrfcted fund8 General General Funds 44.065 39.770 30,787 53,048 Page 13
Virtual Routes Community previously known as European Cyber Conflict Research Initiative Notes to the Financial Ststoments for the Year Ended 31 December 2023 (continued) 11 Analysls of net assets between funds Total funds at31 Decamber UnrestrfGted funds General 2023 Current assets Creditors over 1 year 87,544 1,075 87,544 1.075 Total net assets 86,469 86,469 Total funds at31 December 2022 Unrestrlcted funds General Current assets Creditors over 1 year 54,048 1,000 53.048 54,048 1.000 Total net assets 53,048 12 Related party transactlons There were no relatsd paty transactions in the year. Page 14