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2022-03-31-accounts

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UKCYBERSECURITYCOUNCIL.ORG.UK
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TRUSTEE REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022 Company Number: 12830814 Charity Number: 1195030
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I have held almost 100 strategic partnership meetings and met regularly with DCMS, NCSC and the Cabinet Office. For many, we are now the organisation to call should they need advice in our sector, and we consult regularly with government and beyond on their research and strategies. There is much to be done and I look forward to leading it, but I am also
delighted to take the opportunity of		 this Trustee Report to chronicle just how far we have already come. Professor Simon Hepburn
Speaking of members, we now have over 30 from across the industry, large and small, professional, not for profit and academic. These will be the ‘life-blood’ of the Council. Driving our thought- leadership agenda through volunteering on our committees, currently looking at Diversity and Inclusion, Industry Ethics and Career
Mapping; all areas I am personally
phenomenally passionate about, and
I look forward to seeing their
recommendations.		 These engagements are continued in our upcoming series of roadshows where I will be out and about in the regions, further building our working relationships with our partners in all four nations and meeting our new members in person. As the world opens back up after the last two- years, I want to make sure that cyber security is front and centre. Even through the various lockdowns, I, and my Board, have managed to be out and about, either virtually or in person.
From my initial days, I have sought to develop the Council along four- core strategic aims. Structure the council to deliver
the UK Cyber Security Strategy		 Develop a sustainable & diverse workforce of cyber professionals Engage with & listen to industry Make every contact matter All decisions and actions have been driven by this agenda and I am extremely proud of the achievements my team are already making and the changes we are driving through the industry. I have already noted how I have
structured the Council to achieve		 Charitable Status, no mean feat. We can now work with members
and partners to have professionals
in the industry able to become
chartered for the first-time.
This is our first retrospective of our accomplishments since the charity was formed in April 2021, and of our partnership working with the formation team led by the IET, the industry, DCMS, and since September, with our new members! I am hugely proud of how far we
have come over the last nine-months		 and all the contributors to our story, from the original four Board
Directors who led us from inception,		 through the start-up process and into on-boarding members, under the experienced leadership of Dr Claudia Natanson. The four new Directors who have added so much more fullness to our Board and are already making their mark on the future of the organisation. And of course, my team, who have been so adaptable, dependable and innovative in responding to the needs of a new enterprise, evolving requirements and strategies. I have
been humbled by their collective		 enterprise, and to them all, a huge thank you!
We break down barriers, promote fairness and champion the need and the benefits for inclusion. We will benefit the public through our work to demystify and simplify career paths within cyber security, which will have a tangible impact through the reduction of the skills gap in the sector. We will ensure those in the profession are working to a defined standard and code of ethics, and make sure anyone wanting to start a career in or progress within cyber security can. This not only benefits individuals, but also employers, businesses, and the wider community; creating a world where the whole of society is safe and secure in cyber space.
By bringing together professionals within the cyber security sector, with stakeholders, government, and third sector organisations, we will establish professional standards and ethics, alongside our work to encourage progression within the sector. We will work in collaboration with the wider industry to tackle issues such as closing the skills gap and make sure we see a more representative workforce. Public Benefit One of our key values is inclusion. This means everyone. We embrace diversity of all kinds and the rich knowledge this empowers us with.
We have established 5 pillars to deliver our aims, these pillars are: Professional Standards - Setting the standards for practitioners across the sector Professional Ethics - Creating and ensuring cyber professionals adhere to our Code of Ethics Careers & Learning - Providing guidance on how to join and progress within cyber security Outreach & Diversity - Striving for an inclusive and representative sector Thought Leadership & Influence - Positioning the Council as the voice of the profession
The purpose of the UK Cyber Security Council is to act as the voice of the cyber security profession and help ensure that the UK is the safest place to live and work online, as set out in the original National Cyber Security Strategy (2016-2021). Its aims are to: Inspire, inform and advance public cyber security awareness and knowledge Create an open, inclusive and professional cyber security culture Influence cyber security best practices that proactively benefit the public in the UK and beyond Act as the reference point for cyber security professional standards, competence and commitment
This Phase One Strategy was treated as a project, fully programmed, baselined and tracked, with specific outcomes to be achieved and KPIs presented in a balanced scorecard format to the board and DCMS. .
Through the first six months of this financial year, the Council put in- place its Phase One Strategy, focused upon the evolution from the Formation Project to a live organisation. There were six aims in all driven by an interim MD with the initial
four Board Trustees.		 Successfully launch brand & build positive presence Launch and on-board initial members positively with a clear roIe (Phase One) Secure successful relationships with government and be seen to ‘add value’ and be the first point of call at all levels Develop new business areas of potential income Establish all management functions and secure the team Prepare for phase two
Professional Development Outreach & Diversity in Cyber Security to develop the next generation Professional Ethics
Thought Leadership &
Influence		 These aims have now been subsumed into the Council’s four strategic aims. Structure the council to deliver for the UK Cyber Security Strategy Develop a sustainable & diverse workforce of cyber professionals Engage with & listen to
industry		 Make every contact matter Which have then been augmented
by the specific requirements of the
DCMS Grant Funding		 Agreements, the second of which is due to be entered into early in 2022-23.
The Council Formation Project ran for almost two years and was led by the Institute of Engineering Technology (IET) under the chair of Dr Budgie Dhanda MBE working in partnership with DCMS and several industry partners and
industry volunteers, all now		 Founder Members of the Council. The volume of work that came out
of this project was considerable		 and covered all the key areas in the UK’s Cyber Security Strategy. Most of this work has subsequently been taken forward into the GFA and the Council’s own planning. Of the areas not fully developed, key were the business planning and financial sustainability. The Formation Project defined four key strategic aims that sought to respond to the DCMS’s original requirements in:
Develop a sustainable
Engage with & listen to
Make every contact matter
Structure the council to		 workforce of cyber
industry
deliver the UK Cyber		 professionals
Strategy		 We will work with our partners in
We will continue to listen to the industry
We will treat every contact with every
We will structure the Council to deliver the		 government, industry and academia to
about the support it requires and
person and organisation as an
ambitions of DCMS, the industry and our		 improve the expectations of the
its expectations of the
opportunity to promote the work of the
members and ensure each area of work		 chartered/registered cyber security
chartered/registered cyber
Council, the UK’s Cyber Security Strategy,
receives the resources it requires to be		 professional. We will develop
professional. We will continue to
to promote the industry, our members,
successful. We will put processes in place		 understandable career pathways, coupled
develop our work with industry partners
the profession and professionals.
to develop our staff into key roles, creating		 with accredited qualifications to achieve
recognised career levels within the
profession. We will do this in a manner that
is fair, open and transparent, keeping our
requirements and guidance relevant,
to facilitate working committees on key
cyber security and industry issues and
ensure the findings are well understood
across the industry and government.
All types and forms of contact and
contact points will be treated as
opportunities for positive engagement
and for learning.
a culture of positive leadership in an
organisation that is innovative, professional
and forward looking.		 effective, and representative of individuals’ diverse requirements.
Some key achievements under the pillar of ‘structure the Council to deliver on the UK Cyber Security Strategy’ are as follows: Secured an industry-leading Chair in Dr. Claudia Natanson MBE On-boarded a further seven high calibre experienced Board Trustees from our industry & beyond Secured Simon Hepburn as our first CEO, a charity and education executive with over twenty years’ experience in a variety of
national and international organisations		 Built a dedicated & industrious team to deliver for the Council &
the Industry		 Established our governance arrangements, including sub- committees & thought workshops Launched our organisational membership programme and exceeded our full financial year target Secured three-year funding from DCMS
Structure the council to
deliver on UK Cyber Security
Strategy

The UK Cyber Security Council was incorporated as a company limited by guarantee on 21 August 2020. The UK Cyber Security Council was registered as a Charity on 01 July 2021. Charity on 01 July 2021.
Trustees: Claudia Natanson - Chair (appointed October 2020) Jessica Figueras – Vice Chair (appointed October 2020) Mike Watson – Treasurer (appointed October 2020) Carla Baker – Trustee (appointed October 2020) Chitra Balakrishna – Trustee (appointed October 2021) Nathan Nagaiah – Trustee (appointed October 2021) Edward Goodchild – Trustee (appointed October 2021) Frances Le Grys – Trustee (appointed October 2021)
Company Number: 12830814 Charity Number: 1195030 Registered Address: 3rd Floor, 106 Leadenhall Street, London, EC3A 4AA Bankers: Lloyds Bank PLC. 25 Gresham Street, London EC2V 7HN Co-operative Bank PLC. PO Box 101, 1 Balloon Street, Manchester, M60 4EP Solicitors: Birkett’s LLP. Providence House 141-145 Princes Street, Ipswich, Suffolk, IP1 1QJ Auditors: Moore Kingston Smith, 9 Appold Street London EC2A 2AP

The Trustees are also responsible The Programme
for the appointment of the Chief
Executive, to which they delegate
the day-to-day running of the
Charity.
The Board has 4 sub-committees.		 Boardensures the Council’s programme directorate activity including standards development and career route mapping is fit for purpose and in line with strategy
and priorities of the organisation.
TheFinance and		 for purpose and in line with strategy
and priorities of the organisation.
TheFinance and		 Audit Boardreview the risks, controls, and financial management of the organisation. The Remuneration Committee provides a
forum, independent of		 Committee provides a
forum, independent of		 the Council’s other
governance bodies, for the		 review and approval of the remuneration of the Chief remuneration of the Chief Executive, the Leadership
Team, and any ex-gratia payments.
The Governance and Nominations
Sub-Committee ensures
the Council’s governance is fit		 Executive, the Leadership
Team, and any ex-gratia payments.
The Governance and Nominations
Sub-Committee ensures
the Council’s governance is fit		 for purpose and that it is
populated by suitably diverse		 for purpose and that it is
populated by suitably diverse		 and skilled individuals, in line with strategy and representation.
Declarations of interest are acquired
from new Trustees and updated by all
trustees annually. No remuneration is
provided other than reasonable travel
and subsistence costs. Trustees
regularly review the progress of the
charity and its funding and work in		 conjunction with the executive team and membership bodies to set the strategy for the organisation. Remuneration
The Chair reviews the remuneration of		 the Chief Executive and makes a recommendation to the Remuneration Committee for consideration. The Remuneration Committee also review the salaries of the Leadership Team. Auditors
The Board of Trustees approved the
appointment of Moore Kingston Smith		 as the Auditors on 23/3/22 The Council are governed by our
Articles of Association (as a Charity
Body)
There are a maximum of 12 Trustee		 spaces; 10 spaces are currently taken - 8 by general appointment, 2 appointed by the membership.
The Council was conceived initially as
part of the UK Government’s National
Cyber Security Strategy, which set out
ambitions to develop and accredit the
cyber security profession. It seeks to
do this by “reinforcing the recognised
body of cyber security excellence
within the industry and providing a
focal point which can advise, shape
and inform national policy.”
This was developed further in the
Initial National Cyber Security Skills
The first four Trustees were
appointed by the Cyber Security
Alliance in October 2020. The
Board expanded to 8 Trustees in
October 2021, with the four new
Trustees appointed by the Board,
in conjunction with the Interim
Chief Executive. Four places
remain available on the Board,
and will be appointed by the
Council’s member organisations,
with the first two elected Trustees
taking up post in October 2022.		 Strategy (2018). This declared
Our Board of Trustees has a		 intentions to establish a new,
independent, UK Cyber Security
Council to act as an umbrella body for
broad range of relevant skills,
knowledge and experience,
spanning education, skills and		 existing professional organisations and
drive progress against the key
challenges the profession faces.
Following a competitive
professional development,
commercial and business
development, income generation
and fundraising, legal, cyber
security, financial management,		 tender process, the Department
for Digital, Culture, Media and
Sport (DCMS) awarded the contract
to design and deliver the Council
in September 2019 to a consortium of
risk management, business risk,
professional standards and
ethics, Government affairs and
policy and furthering diversity,
equality and inclusion.		 cyber security professional bodies
known as the Cyber Security Alliance.
The Council considers each of
the Trustees independent
in character and judgement.
ORGANISATIONSTRUCTUREAND MANAGEMENT Our updated structure is made up of four As a start up organisation it is
directorates		 important that the operational and
management structure of the
organisation is fit for purpose to
deliver on the Council’s mission and
objectives.
The Chief Executives Office
Led by the CEO, this directorate
is focussed on strategic planning,
technical cyber, governance,
external engagement and
government relationships
The Standards Directorate
Led by the Director of Professional
Standards, this directorate is
focussed on developing the
professional standards based upon		 As such the Leadership Team working
our 16 cyber specialisms.		 with the Human Resource Partner,
review where there are any pinch
points within the organisation and then
seek to mitigate this through increased
In the 2023/2024 financial year we will
be enacting the incorporation of our
Royal Chartership, which in practical
terms will mean the closure of the
The Programme Directorate
Led by the Director of
Programmes and Partnerships, this
directorate is focussed on		 human resource or re-prioritisation of
tasks.
This along with the development
and implementation of new systems
current charity and company
incorporations, and transition to the
new Chartered Charity and
Organisation.
developing the careers road map,
outreach programmes and the
transition of programmes to the
Council.		 and processes helps staff to be more
effective and efficient.
All contracted staff will be transferred
over to the new organisation as part of
The Finance & Ops Directorate
Led by the Director of Finance and		 this process.
Operations, this directorate is
focussed on managing areas		 including the organisations finance, marketing, membership and events.
The role of a Trustee is to ensure that
the Council fulfils its duty to its
beneficiaries and delivers its vision,
mission and values. Working together
with the other Trustees – and in
collaboration with the CEO they are
instrumental in ensuring that the
Council delivers its charitable
objectives, and values equality, diversity
and inclusion.
Our Trustees are individuals who have a
strong empathy with our vision and
mission combined with an in-depth
understanding of our work and
ambitions and they possess an
understanding of the culture and needs
of a values-driven organisation.
The role is one of legal liability and
responsibility for the compliant running
of a charity. Across the Board we seek
skills and experience in running a
professional organisation, although
recognise that not all candidates will
have these skills initially.
Trustees are legally required to act in
the best interests of the Council and
candidates should therefore not seek to
influence the Board in terms of
representing any other organisation.
For all Trustees, the following core
skills are essential to undertake their
duties:
Excellent communication
and influencing skills to be a
strong ambassador for the
Council
A collaborative approach
and openness to other views
and feedback on own
contribution
An ability to think diversely,
produce innovative ideas and
challenge existing thinking and
perspectives
Commitment to the
Council’s mission and values
Commitment to delivering
public good
Commitment to bringing
high standards of ethics
and transparency to the
Council’s governance
Commitment to inclusion
and diversity
Appointment of trustees
As set out in the articles of
association, the board of
trustees comprises
not more than 12 trustees
as Board Members
Maximum of 4 elected
from among and by the
full members
the chief executive of the
Association as an ex-
officio member of the
Board
Board members may
serve up to two terms of
three years
Trustees' induction and
training
On appointment, new trustees
are provided with information
about the company including its
constitution, strategy and plans,
finances, staffing structure and its
risk register.
Their attention is drawn to
relevant Charity Commission
guidance. They are offered the
opportunity to meet with the
chief executive and other staff for
a full briefing on the
organisation’s work.
Organisation
The Board is responsible for the
governance of the charity. The
trustees delegate the running of
the organisation to the chief
executive, within a framework of
delegated authority. The board
meets at least quarterly.		 17
Into 2022-23 The DCMS have agreed a new Grant Funding Agreement that will provide income of up to £1,500 K to deliver against the contract KPIs. Additionally, we expect to continue
to on-board new members and see		 an increase in the total annual levies. 2022-23 will also be our first year of
issuing Charterships to industry
professionals and we will see		 2022-23 will also be our first year of
issuing Charterships to industry
professionals and we will see		 2022-23 will also be our first year of
issuing Charterships to industry
professionals and we will see		 substantive income against the substantive income against the delivery of the same. delivery of the same. Finally, our strategy for the coming years will ensure the financial sustainability of the organisation and sustainability of the organisation and develop appropriate additional develop appropriate additional income streams.
Cashflow Cashflow at commencement was supported by several of our contractors and interim staff deferring their payments for the first three months, this enabled the
Council to move forwards with its		 agenda without working capital
and we are grateful to all of them
for their contributions.		 The Charity made a small surplus of £68 k at the year end. Total funds were £68 k with £14 k restricted and £ £54 k unrestricted in the first year of activity. We are working with DCMS to ensure a three-month cover for total organisational expenses always remains in-place.
Expenditure Total expenditure for the year was £1,539 k which was almost entirely spent on delivering against the DCMS’s Grant Funding Agreement. To be noted, is the impact of our
VAT structure that meant a total of		 £214 K was spent and not reclaimable on VAT. This structure
remains in-place but a review of		 this is on the agenda.
Income Overall income was £1,606 K comprised of £1,577 K from the DCMS Grant Funding Agreement and £29 K from new membership levies. A small amount (<£1 K) was
also raised from speaking at events.		 The Grant Funding Agreement had a funding ceiling of £1,581 K meaning
the Charity underclaimed by just £4		 K or 0.25%.
The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. The financial statements have been prepared in accordance with the special provisions of part 15 of the companies act 2006 relating to small companies. Approved and signed on behalf of the Trustees by Dr Claudia Natanson MBE Chair of Trustees Chair of Trustees 13 December 2022
They are also responsible for ensuring that the financial statements comply with the Companies act 2006. As well as safeguarding the assets of the charitable company and group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as we are aware: There is no relevant
audit information of which
the charities auditor
is unaware; and		 The Trustees have taken all steps that they ought
to have taken to		 make themselves aware of
any relevant audit
information and to		 establish that the auditor is aware of that information.
In preparing these financial statements, the Trustees are required to: Select suitable accounting policies and then apply them consistently Observe the methods and principles in the Charities SORP Make judgements and estimates that are reasonable and prudent State whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and Prepare the financial statements on the going concern basis unless it is inappropriate to presume the charity will continue in operation
The Trustees (who are also Directors of the UK Cyber Security Council for the purpose of company law) are responsible for preparing the trustee’s report and financial statements in accordance with applicable law and United Kingdom accounting practices. Company and Charity law requires the Trustees to prepare financial statements for each financial year. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the situation of the charitable company and of the incoming resources and application of resources, including the income and expenditure for that period. The Trustees are responsible for keeping adequate and proper accounting records that are sufficient to show and explain the charitable company’s transactions
and disclose with reasonable		 accuracy at any time the financial position of the charitable company.

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE UK CYBER SECURITY COUNCIL

Opinion

We have audited the financial statements of The UK Cyber Security Council (‘the charitable company’) for the year ended 31 March 2022 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 FRS 102 ‘The Financial Reporting Standard Applicable in the UK and 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 financial statements section of our report. We are independent of the Corporation 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.

Emphasis of matter – financial statements prepared on a basis other than going concern

We draw attention to Note 1 to the financial statements which explains that the trustees intend for the entity to cease trading and as a consequence, all activities will be transferred to a separate entity with effect from the 31 March 2023. At this point the trustees will liquidate the company and therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly the financial statements have been prepared on a basis other than going concern as described in Note 1. Our opinion is not modified in respect of this matter.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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 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.

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INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE UK CYBER SECURITY COUNCIL

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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 20, 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

22

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE UK CYBER SECURITY COUNCIL

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

23

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF THE UK CYBER SECURITY COUNCIL

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 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 any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

James Saunders (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

9 Appold Street London EC2A 2AP

Date: 13 January 2023

24

(incorporating an income and expenditure account)

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2021
Unrestricted Restricted Total
Note £ £ £
Donations and legacies 2 - 1,577,010 -
Charitable activities 3
- -
Membership 28,958
Other 500 - -
-
29,458 1,577,010
- -
Raising funds 30,818
Charitable activities
-
Membership 5,500 57,067
- -
Setting Standards 1,445,566
4 5,500 1,533,451 -
5 23,958 43,559 -
Transfers between funds 29,446 (29,446) -
-
53,404 14,113
- - -
Total funds brought forward
15 53,404 14,113 -
----- End of picture text -----

The charity was dormant in the previous financial period ended 31 March 2021.

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 16 to the financial statements.

The notes on pages 28 to 34 form part of these financial statements

25

Company no. 12830814

Note
10
11
12
14
15
tricted funds
ncome funds
d income funds:
mounts falling due within one year
k and in hand
sets
funds		 Note
10
11
12
14
15
tricted funds
ncome funds
d income funds:
mounts falling due within one year
k and in hand
sets
funds		 £
-
-		 2021
£
-
-
-
-
-
-
-
-
-
-

Approved by the trustees on 13 December 2022 and signed on their behalf by:

Dr Claudia Natanson MBE - Trustee

The notes on pages 28 to 34 form part of these financial statements

26

----- Start of picture text -----
Note
£ £
-
-
Depreciation charges
-
(Increase)/decrease in debtors
-
Increase/(decrease) in creditors
-
Purchase of fixed assets (29,446) -
-
(29,446)
-
351,255
- -
Cash and cash equivalents at the beginning of the year
-
351,255
At 31 March
2021
£
Cash in hand and at bank 351,255 -
-
At Start of At end of
year Cashflows year
£ £ £
Cash in hand and at bank - 351,255 351,255
----- End of picture text -----

27

The UK Cyber Security Council is a charitable company limited by guarantee registered in England with registration number 12830814. Its registered office address is 3rd Floor, 106 Leadenhall Street, London, England, EC3A 4AA.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and Update Bulletin 2, and the Charities Act 2011. The accounts are presented in GBP rounded to £1, which is the functional currency of the charity.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note. The charity was dormant in the previous financial period ended 31 March 2021. The functional currency is Sterling Pound (GBP).

The charitable company meets the definition of a public benefit entity under FRS 102.

The Trustees of the charity took the decision during the year to transfer the trade and operations of the company to a new Royal Charter charitable company and this transfer will take place with effect from the close of business on 31 March 2023. From that date the company will cease trading. As a result the financial statements have been prepared on a basis other than that of a going concern. No adjustments to the recognition or measurement of assets, liabilities or other transactions have been made as a result of the financial statements being prepared on a basis other that that of a going concern. No additional provisions have been recognised as a consequence of adopting a basis of preparation other than going concern.

Income, including from Government and other grants, whether 'capital' or 'income', is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Membership income is generally for a period of tweleve months. Membership income relating to future financial years is deferred.

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets Unrestricted funds are donations and other incoming resources received or generated for the charitable Designated funds are unrestricted funds earmarked by the trustees for particular purposes.

Irrecoverable VAT is not charged as a cost against the activity for which the expenditure was incurred but identified separately as a cost itself.

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity (support costs), comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

Where such information about the aims, objectives and projects of the charity is also provided to potential donors, activity costs are apportioned between fundraising and charitable activities on the basis of area of literature occupied by each activity.

! Fundraising 0%

! Membership 0%

! Setting Standards 100%

Where information about the aims, objectives and projects of the charity is provided to potential beneficiaries, the costs associated with this publicity are allocated to charitable expenditure.

28

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

3 years

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

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.

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.

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any funds held on behalf of service users.

The charity contributes towards the employees' personal pension schemes. The cost of the contribution is charged to the statement of financial activities on an accruals basis.

In the application of the company’s accounting policies, the charity is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going 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.

There are no estimates and assumptions that are considered to have a significant risk of causing a material adjustment to the financial statements in a future period.

29

----- Start of picture text -----
2021
Unrestricted Restricted Total
£ £ £
Grant from Department of Digital, Culture, Media &
- -
Sport 1,577,010
- -
1,577,010
2021
Unrestricted Restricted Total
£ £ £
- -
Membership 28,958
Total income from charitable activities 28,958 - -
----- End of picture text -----

30

2021 Total £ - - - - - - - - - - - - - - - - - - -
-
-
Cost of raising
Setting
Support		 funds
Membership
Standards
costs		 £
£
£
£		 Staff costs (Note 8)
18,624
50,647
57,928
6,798		 Staff expenses
-
-
-
7,364		 Staff recruitment
-
-
-
19,622		 Computer and IT support
-
-
15,625
-		 Contractors
-
6,420
424,886
172,252		 Design and communication
-
-
181,624
-		 Events Attendance & Conferences
-
-
52,877
-		 General office costs
-
-
-
11,205		 Legal and professional fees
-
-
-
61,561		 Marketing
12,194
-
-
-		 Office rent and insurance
-
-
-
15,970		 Technical service
-
-
54,000
-		 Website and web services
-
-
116,032
-		 Bad debts
-
5,500
-
-		 Audit
-
-
-
9,000		 Trustee recruitment
-
-
-
25,200		 Unrecoverable VAT
-
-
-
213,621		 30,818
62,567
902,973
542,594		 Support costs
-
-
542,594
(542,594)		 Total expenditure 2021
-
-
-
-		 Of the total expenditure, £5,500 (2021: nil) was unrestricted and £1,533,451 was restricted (2021: nil).

This is stated after charging / crediting:

s' recruitment
dit
s' remuneration (excluding VAT):
iation		 2021
£
-
-
-

Staff costs were as follows:

2021 £ - Salaries and wages - Social security costs - Employer’s contribution to defined contribution pension schemes -

The following number of employees received employee benefits (excluding employer pension costs) during the year in bandings of costs greater than £60,000:

2021 No. - £70,000 - £79,999

The total employee benefits including pension contributions of the key management personnel, made up of the Chief Executive Officer and the Project Manager were £107,429 (2021: nil).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2021: £nil). No charity trustee received payment for professional or other services supplied to the charity (2021: £nil).

During the year, trustee was reimbursed travel expenses of nil (2021: nil).

The average number of employees (head count based on number of staff employed) during the year was as follows:

2021 No. - Cost of raising funds - Membership - Setting Standards - Governance and support -

32

Two trustees were reimbursed meeting expenses of £94 (2021: none). There are no related party transactions to disclose for 2022 (2021: none).

There are no donations from related parties which are outside the normal course of business.

The charitable company is exempt from corporation tax to the extent that all its income is charitable and is applied for charitable purposes.

----- Start of picture text -----
IT & phone
equipment
£
-
At the start of the year
Additions in year 29,446
At the end of the year 29,446
-
At the start of the year
Charge for the year 1,479
At the end of the year 1,479
27,967
- -
At the start of the year
All of the above assets are used for charitable purposes.
2021
£
Trade debtors -
-
Prepayments and accrued income
-
2021
£
Trade creditors -
-
Taxation and social security
Other creditors -
Accruals -
-
Deferred income (note 13)
-
----- End of picture text -----

33

Deferred income comprises membership fee income received during the year for future years. 2021 £ - Balance at the beginning of the year - Amount released to income in the year - Amount deferred in the year - Balance at the end of the year

assets
ed assets
DCMS		 At 1 April
2021
£
-		 Incoming
resources &
gains
£
1,577,010		 £
27,967
25,437
General
unrestricted		 Restricted
£
-
14,113
Outgoing
resources &
losses
£
(1,533,451)		 Transfers
£
(29,446)
- 1,577,010 (1,533,451) (29,446)
- 29,458 (5,500) 29,446
- 29,458 (5,500) 29,446
- 1,606,468 (1,538,951) -

Transfers include:

Capitalised fixed assets funded by restricted funds where the fixed assets are for the general objects of the charity.

The grant from the Department of Digital, Culture, Media & Sports is used to cover costs of setting standards for cyber secuity and delivering the pilot.

\

There were no capital commitments not provided for in the financial statements (2021: none)

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