OpenCharities

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2022-03-31-accounts

21/22

1 2 0 t h d i r e c t o r s ’ r e p o r t & f i n a n c i a l s t a t e m e n t s

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Report & Financial Statements Year ended 31 March 2022

Contents
Page(s)
Report of the Directors (incorporating the Strategic Report) 1 – 9
Report of the Auditor 10 – 13
Statement of Financial Activities 14
Balance Sheet 15
Statement of Cash Flows 16
Notes on the Accounts 17 – 27

Report of the Directors

for the year ending 31 March 2022

The Directors, who are also the Trustees for the purposes of Charity law, are pleased to present their annual report together with the financial statements of the Charity for the year ended 31 March 2022, which are 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 Accounting and Reporting by Charities Statement of Recommended Practice, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019), and the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006.

Our purposes and activities

The Charity’s objects are to provide financial assistance towards the education, training and relief of need, hardship, sickness, disability, old age or distress of persons who are or have been engaged in any aspect of the insurance industry and of children, spouses, partners, former spouses or partners and other relatives or dependants of such persons. The principal activities to achieve these objects are the provision of charitable payments and signposting to practical advice. The objectives of the activities for the year and the Charity’s achievements against them are discussed under Achievements and Performance .

Our vision is to achieve the situation where all past and present insurance employees and their dependants can readily access the Charity’s support in times of need.

Our mission to realise this vision is to:

Our strategic aim is to achieve all this through an ongoing programme of grant making and advice to individuals and various publicity and fundraising campaigns. The Charity’s current grant making policy is to assist individuals and their dependants whose service to the insurance industries of the British Isles and Ireland normally covers at least five years and is a significant part of their most recent working life.

Our volunteers

We rely heavily on a team of volunteers to operate effectively and efficiently. Each local and associated institute of the Chartered Insurance Institute (CII), covering the UK and Ireland, nominates one or more members to act as visitors to current and prospective beneficiaries and ambassadors to publicise our work locally. Some insurance employers provide services through their Human Resources or Welfare departments. Visitors are Disclosure and Barring Service (DBS) checked and provided with resources to support them in their role. Whilst home visits have been suspended since Spring 2020, local institute volunteers have continued to publicise the work of the Charity and encourage applications for financial support. The amount of time and resources donated in this way varies but the total is significant and substantially reduces Charity’s operating costs. The expenses of such volunteers are often financed by the local institutes or employers for which the Charity is very grateful.

What we do

As a grant making organisation, we provide financial assistance and advice to individuals to ease financial pressure and improve quality of life. Individuals are advised on income maximisation and expenditure control and given financial and practical support and reassurance in respect of ongoing and one-off needs. Where appropriate, individuals are helped to access support from organisations with expertise in areas such as money management and health issues. We do not engage external or commercial fundraisers. Any fundraising activity, and resultant complaints, is managed by the Secretariat.

Report of the Directors

for the year ending 31 March 2022

Public Benefit

The principles of public benefit, as defined by the Charity Commission, were noted by the Board on 12 March 2008. Since then, the Directors have had regard to the Charity Commission’s guidance, including Public Benefit: running a charity (PB2) , and are kept fully updated as to Public Benefit discussions within the charitable sector. The Directors continue to believe that the Charity provides identifiable benefits to a significant section of the public as support is available to eligible past and present employees of the insurance industry. Regular correspondence from those receiving support confirms the positive impact such help makes. More details on our impact appear in our annual Impact Report.

Strategic Report

Achievements and Performance

The key objectives agreed for the year ended 31 March 2022 and the impact of our achievements in delivering the public benefit are summarised as follows:

Provision of financial and practical assistance

We aimed to increase the number of cases we helped. Financial assistance was authorised in 120 out of the Charity’s 295 active cases, with some cases considered on more than one occasion. Help was authorised for the first time in 43 cases, a decrease on the previous year. 129 cases received support solely by way of advice, a decrease on the previous year’s total. Net outright grants payable decreased by approximately 25% compared to the previous year. We believe this resulted from several factors including additional government support for those with reduced income and lower levels of consumer spending generally during the pandemic.

We have continued to explore appropriate partnerships which can deliver practical support to our beneficiaries and those in our industry and supplement the financial help we have long provided. We have continued partnerships with Shelter and Alzheimer’s Society, in the UK, and AWARE, in Ireland, in respect of housing, dementia and mental health support. We also financed an update of The Toolkit on Domestic Abuse, which had been first launched in 2018, to help employers identify and support employees who are victims or perpetrators. This forms part of a suite of Business in the Community advice documents and continues to be widely accessed by employers of all sizes.

Discussions have continued in Ireland with potential partners able to replicate the services we have in the UK to provide additional support to our Irish beneficiaries.

The restrictions imposed by the pandemic have seen us continue adjustments to our procedures. With home visits suspended, we have continued to refine the way in which we verify information provided and ensure applicants can effectively convey their needs to us. We have continued to use video conference calls, where appropriate, which has had the added benefit of introducing some applicants to using this technology for the first time.

Creation and maintenance of effective communication channels

With more employees working from home for much of the year, no physical distribution of publicity materials took place during Insurance Charities Awareness Week (ICAW). Rather, the event was delivered digitally with a focus on financial, emotional and physical wellbeing and how individuals can volunteer to help the Charity. We continued to engage digitally with insurance employers to publicise the scope of our help and how to apply for it.

Report of the Directors

for the year ending 31 March 2022

Generation and sustenance of adequate income streams

We continued to discuss with our investment advisers the stability of our investments, particularly in the light of the pandemic, to ensure the return of adequate income to fund the Charity’s operations. We worked to maintain support from insurance employees and employers, recognising that requests for donations help facilitate opportunities for publicity and communication with potential beneficiaries. Our expectations that income from local institutes and other planned fundraising would be reduced, given restrictions, were realised.

Reinforcing and improving governance

We continued our policy of open recruitment and were delighted to welcome five new Board members over the past year with supplementary skills and experience to complement those already in existence. Board members continued to make compliance with, and embedding of, the Charity Governance Code’s principles a priority.

General Data Protection Regulation (GDPR)

On 16 March 2018, the Board agreed the Charity’s response to the above. It determined the basis on which the Charity holds data and agreed procedures in respect of its capture, retention and any breach. The Charity has continued its compliance over the year.

Financial Review

The Statement of Financial Activities (SoFA) on page 14 reflects all incoming resources receivable in the year irrespective of when income is spent. Total incoming resources decreased by £64,000 to £1,045,000. Expenditure on charitable activities decreased by £145,000 to £940,000. Total resources expended of £1,126,000 (2021: £1,265,000) resulted in a net outflow for the year of £81,000 (2021: £156,000). After considering realised and unrealised gains on investments, total fund balances increased by £1,114,000 (2021: £6,095,000) to £39,947,000 (2021: £38,833,000).

The Directors do not consider that the recent pandemic negatively impacted the financial sustainability of the Charity and conclude it remains a going concern. The Directors consider the value of the investment portfolio and the forecast investment income to be sufficient to sustain the Charity for at least twelve months from the date of signing the financial statements.

Investment Policy and Performance

The Charity has an agreed investment performance benchmark with its investment managers based on the income requirements to support grant giving, Directors’ attitude to investment risk and the timeframe for investment. The performance benchmark comprises 12% of the return of the FTA British Government All Stocks Index, 45% of the FTSE All Share index, 35% of the FTSE World Ex UK Index, 3% of the Investment Property Database Index, 4% of the BoE Base Rate +2% return (for infrastructure investment) and 1% of the cash return. This allocation remains classified as Medium/High risk and imposes agreed limitations as to the minimum and maximum amounts of each asset class that can be held.

The Directors understand that over the long term this agreed format will allow the generation of a good return from income and capital to fund grant making. The Directors also understand that investments do not move in a linear fashion and there will be individual years, and periods, of perhaps more than a year, when the portfolio value may fall. They also understand that, based on historical returns, equity investment is necessary if the value of both the capital value of the fund and income is to maintain its purchasing power when compared with inflation.

Report of the Directors

for the year ending 31 March 2022

The 12 months to 31 March 2022 saw the portfolio making a respectable return (+5.9%) with the 12 month period seeing the first three quarters make positive returns and the last quarter being affected by inflationary fears, somewhat exacerbated by the invasion of Ukraine. Mention must be made of Coronavirus which, as a generalisation, gradually receded in both infection numbers and, more importantly, in the disease’s severity over the period: the easing of the severity the result of the effective vaccination programme. Interest rates were raised over the year to 0.75%, having been cut to almost zero (0.1%) in March 2020. At the time of writing, interest rates are 1.0% and the virus appears to have significantly weakened in most developed countries where vaccine roll-out has been successful.

Stock markets have regained their poise. Rising interest rates, initially to curtail demand-driven inflation, have felt further upward pressure with the supply-side inflation shock of dramatically higher prices for energy and grains & oils after the Russian invasion of Ukraine: Russia and Ukraine together account for outsized proportions of wheat, corn, rye and sunflower oil exports amongst other foodstuffs and Russia has been the dominant supplier of oil & gas to most of the larger European economies. Expectations of an orderly return to normal for stock market investments with interest rates and inflation responding to the usual corrections on the tiller from central banks are for the moment still awaited. The Insurance Charities’ 3 year cumulative performance shows a total return of +18.5% compared to the benchmark’s +18.9%; the 5 year return shows a return for the portfolio of +33.9% compared to the benchmark’s +28.7%.

Our investments include £37,719,000 (2021: £36,644,000) managed by Investec Wealth & Investment Limited. The investments are held on the Charity’s behalf in the nominee company or in depot.

Reserves policy

Reserves are needed to bridge the gap between spending and receiving of income and to cover unplanned expenditure. Budgetary and financial control continues to be exercised to reduce the risk of over expenditure and mitigate the effect of a significant reduction in income in any financial year. The General Fund represents funds which are readily realisable, less those whose uses are restricted or designated for specific purposes. The Directors keep under review reserves required to be held in investments and cash not restricted to any particular purpose. The Directors consider that the sum of £39,947,000, held by way of reserves as at the year end (2021: £38,833,000), is adequate, in view of the current economic climate and stock market activity, as it should generate adequate future investment income to meet likely demands after other income is accounted for. They also believe that the longterm position of the portfolio will withstand any required fund drawdowns. The Directors do not consider it to be necessary to establish a specific target reserve total and monitor against it. The current level is deemed to be that required to generate sufficient income for the Charity to continue long-term support of its beneficiaries and achieve its charitable objectives in the absence of other income streams.

Report of the Directors

for the year ending 31 March 2022

Plans for future periods to continue delivering public benefit

Provision of financial and practical assistance

We will continue to seek out ways in which the Charity’s funds can be released to benefit insurance people in hardship through misfortune. We will strive to increase the number of cases we support, still strongly believing there to be many more individuals in need of financial assistance than we are currently helping.

Following the Directors’ decision in 2012 to widen the Charity’s offering, we will continue to develop partnerships with external charitable bodies, particularly to extend practical support in Ireland. The Directors will endeavour to identify other issues and health concerns which adversely affect the wellbeing of a significant proportion of the Charity’s existing beneficiaries and past and present insurance employees, to help secure suitable partnerships.

Following the lifting of government restrictions during the pandemic, we will reintroduce home visits in the Autumn to enable applicants to meet someone local to them. We and our beneficiaries consider these visits to be a fundamental part of our service to them and will consider reasonable health implications on their reintroduction.

Creation and maintenance of effective communication channels

Our major publicity event of the year, ICAW, will comprise a limited distribution of complementary branded giveaways and a digital offering. We feel this blended approach addresses well the situation where a significant proportion of insurance employees divide their working hours between the office and their home. We will assess how the industry is placed with respect to office working before deciding on whether a largescale distribution of complimentary branded giveaways should return in 2023.

The Charity’s Annual Golf Day will return in May. This is an opportunity to connect with employers and employees who may be aware of those in need of help. We are grateful to all who support this day by attending and providing financial support.

We have started to discuss with local institutes of the Chartered Insurance Institute, and insurance bodies, opportunities for a presence at face-to-face events where potential applicants may be.

Online meetings with insurance employers will continue alongside face-to-face meetings to ensure the Charity’s support is effectively communicated to past and current employees going through difficult times.

We will carry out a survey to gauge industry perceptions of us and our messaging and take appropriate steps to address any issues which are identified.

Generation and sustenance of adequate income streams

We will continue to discuss with our investment advisers the stability of our investments, particularly in the light of the pandemic, to ensure the return of essential income to fund the Charity’s operations. We will work to maintain support from insurance employees and employers, recognising that requests for donations help facilitate opportunities for publicity and communication with potential beneficiaries. We will be asking local institutes to consider the Charity as a recipient of fundraising as this gives us the opportunity to explain more about our work and seek out those in need of help.

Reinforcing and improving governance

We will implement the final stages of our previous governance review by replacing the three remaining longstanding Board members with those whose current insurance involvement and skills, knowledge and experience reflect the diversity and inclusion of the industry we serve.

We will continue to follow and embed the principles of the Charity Governance Code in our procedures and actions.

Report of the Directors

for the year ending 31 March 2022

Reference and administrative details

Charity numbers: England & Wales 206860 Ireland 20200129 Scotland SC047527 Isle of Man 1230 Company numbers: England & Wales 74461 Isle of Man 006098F Registered offices: Third Floor, 2 St Andrew’s Hill, London, EC4V 5BY Second Floor, Queen Victoria House, Victoria Street, Douglas, IM1 2LF

Our advisers

Auditor RSM UK Audit LLP Portland 25 High Street Crawley RH10 1BG Bankers National Westminster Bank plc 1 Princes Street London EC2R 8PA Ulster Bank Limited 33 College Green Dublin 2 Republic of Ireland Solicitors Hunters 9 New Square Lincoln’s Inn London WC2A 3QN Investment Managers Investec Wealth & Investment Ltd 30 Gresham Street London EC2V 7QN

Directors

The Directors and officers serving during the year and since the year end were as follows:

Key management personnel: Directors

Mr John Greenway Chairman

Mrs Kirsten Hardiker Deputy Chairman & Chair of the Grants Committee

Mr Graham Cave Chair of the Marketing Committee

Mr Allan Clare (appointed 16 September 2021) Chair of the Audit Committee Mr Anthony Alderman (retired 16 September 2021) Mrs Lisa Bartlett (appointed by Directors 16 September 2021) Professor David Bland (retired 16 September 2021) Mr Joshua Brekenfeld Mr Paul Buckle (appointed by Directors 16 September 2021) Mr George Gager Mr Michael Gaughan (appointed by Directors 16 September 2021) Mr Antony Greensweig (appointed 16 September 2021) Mrs Alexandra Hughes (appointed 16 September 2021) Ms Adrienne O’Sullivan (retired 16 September 2021) Miss Elizabeth Robinson (appointed 16 September 2021) Mr Richard Talbot-Jones Mr Kevin Wood (retired 16 September 2021) Mr Richard Wood (retired 16 September 2021)

Key management personnel:

Honorary President Ms Adrienne O’Sullivan Vice-President Mr Michael Bewes Key management personnel: Senior management Chief Executive Officer and Company Secretary Annali-Joy Thornicroft Accountant Phyllis Stanton

Report of the Directors

for the year ending 31 March 2022

Structure, Governance and Management

Governing Document

The Charity is governed by its Memorandum and Articles of Association adopted on 21 July 1902. The latest revision of the Memorandum and Articles of Association was approved on 29 September 2016. It is registered as a charity with the Charity Commission. The members of the Charity each agree to contribute £10 in the event of it winding up.

Appointment of Directors

Directors are either elected by members or appointed by the Directors mid-term. Those appointed mid-term by the Directors must stand down at the following Annual General Meeting and may submit themselves for election by the members. Elected Directors may remain in office for three years and offer themselves for re-election by the members for a further final three years. Only in exceptional circumstances can Directors be considered for a third term of office. Composition of the Board is reviewed, at least annually, to assess needs in terms of skills, knowledge, diversity and corporate and geographical representation. An open recruitment policy is followed to recruit suitable candidates to complete the Board’s needs.

Director induction and training

New Directors receive an information pack about the Charity and all that is needed for effective and informed decision-making. The pack includes confirmation of Directors’ legal obligations under charity and company law, Charity Commission guidance on being a trustee and public benefit, the Charity’s governing document, the Charity’s internal governance document and information on the Charity’s recent financial performance. Since 1 December 2005, Director training sessions, on at least an annual basis, have formed part of Board meetings. Directors are encouraged to attend appropriate internal and external training events where these will support and enhance their role. Two Directors during the year have had internal training on finance and six Directors attending external training on investment. Directors are encouraged to maintain a log of their personal training and development.

Organisation

The Board of Directors, of up to 13 members, is responsible for the overall governance of the Charity. Directors must hold at least five meetings a year including quarterly Board meetings, at which strategy, operational and investment performance is reviewed and operating plans and budgets set, and the Annual General Meeting. The Board has established the Audit, Grants and Marketing Committees to which it delegates certain powers in conjunction with the management and administration of the Charity. To ensure Directors’ skills and knowledge are appropriately used within the Charity, each sits on at least one Committee. The Committees then report regularly back to the Board for ratification of all decisions made under delegated powers. Attendance details for those who were Directors as at the yearend are as follows.

rend are as follows.
Attendance at meetings Board Audit Grants Marketing
Mr John Greenway 4/4 4/4 4/4 4/4
Mrs Kirsten Hardiker 4/4 4/4 4/4 4/4
Mr Graham Cave 4/4 N/A N/A 4/4
Mr Allan Clare 4/4 4/4 N/A N/A
Mrs Lisa Bartlett 1/2 N/A 2/2 N/A
Mr Joshua Brekenfeld 4/4 N/A N/A 4/4
Mr Paul Buckle 2/2 N/A N/A 2/2
Mr George Gager 4/4 N/A 2/4 N/A
Mr Michael Gaughan 2/2 N/A N/A 2/2
Mr Antony Greensweig 3/3 N/A 4/4 N/A
Mrs Alexandra Hughes 2/3 4/4 N/A N/A
Miss Elizabeth Robinson 3/4 3/4 N/A N/A
Mr Richard Talbot-Jones 3/4 N/A 4/4 N/A

Report of the Directors

for the year ending 31 March 2022

A Chief Executive Officer (CEO) is appointed by the Directors to manage the day-to-day operations of the Charity. To facilitate effective operations the CEO has delegated authority, with the terms of delegation approved by the Directors, for operational matters.

The Charity paid premiums of £1,200 for Directors’ & Officers’ liability insurance during the period.

Related parties and co-operation with other organisations

None of our Directors receives remuneration from working with the Charity. Any connection between a Director or senior manager of the Charity and a beneficiary or supplier is disclosed to the full board of Directors, in the same way as any other contractual relationship with a related party. The Board is aware that a supplier providing services to the Charity during the year is related to the CEO and that she does not participate in the discussions or decisionmaking process concerning the placing of any business with him.

The Charity’s Directors are indebted to the many companies, individuals and local and associated institutes of the CII who have given both financial and practical support so generously over the year. Some employers provide significant practical support in place of, or in addition to, the financial support recorded in these financial statements. The Charity also wishes to record its sincere thanks to the representatives who give many hundreds of hours voluntarily in promoting the work of the Charity throughout the British Isles and Ireland.

Pay policy for key management personnel and staff

The Board of Directors and the senior management team comprise the key management personnel in charge of directing, controlling, running and operating the Charity on a day-to-day basis. All Directors give their time freely and no Director received remuneration in the year. Details of Directors’ expenses and related party transactions are disclosed in note 9 to the accounts.

The pay of staff is reviewed annually to account for CPI increases to basic salary and London Allowance for travel and any exceptional performance during the year. The CEO recommends reviews for all the staff, excluding herself, to the Chairman and Deputy Chairman. The annual review of the CEO’s package is agreed by the Chairman and Deputy Chairman.

Equality, diversity and inclusion

The Charity is committed to encouraging equality, diversity and inclusion amongst its workforce, and eliminating unlawful discrimination of its employees, its beneficiaries and other stakeholders. The aim is for our workforce to be truly representative of its beneficiary class and all sections of society and for each employee to feel respected and able to give of their best. One of our employees is registered disabled.

Risk Management

The Directors have an active risk management process to assess business risks and implement risk management strategies. This involves identifying the types of risks the Charity faces, assessing the Charity’s appetite for such risks, prioritising them in terms of potential impact and likelihood of occurrence and identifying and implementing means to mitigate them.

As part of the risk management process, the Directors review the adequacy of the Charity’s internal controls. The systems of internal control are designed to provide reasonable but not absolute assurance against material misstatement or loss. To strengthen these controls, monitoring responsibilities have been allocated to members of the Audit Committee, who have specific and relevant knowledge and expertise. They have continued to make regular and irregular contact with the Charity’s Secretariat, both by video conferencing and physical visits to the Charity’s office. The activities undertaken include monitoring feedback from applicants, checking receipts and payments and their internal recording and establishing the existence of good practices. The Board is then briefed quarterly. .

During the year, the Directors identified the major risks as cybercrime, the sudden loss of key management personnel, insufficient skills knowledge or tools to support objectives, the loss of reputation or integrity resulting from closer links with external organisations and significant national or global events, such as the pandemic.

Report of the Directors

for the year ending 31 March 2022

The pandemic continued to impact the way in which the Charity operated with some major functions being carried out remotely and reduced office attendance. Regular communications between the Charity’s employees and the CEO and the Chairman were maintained throughout.

Cybercrime has been at the forefront of consideration with home working. Two factor authentication has been added to our database software and systems. Staff are regularly reminded of the threats faced by the Charity and the need for vigilance. Additional segregation of duties and monitoring has been implemented to reduce errors and the risk of funds being incorrectly disbursed.

A new Chairman of the Audit Committee, with significant experience in the field of cybercrime, was appointed mid-year on the retirement of his predecessor. A full review of the Charity’s Risk Register has been undertaken with recommendations expected shortly. The revised Register will provide a comprehensive analysis of the risks faced, the Charity’s appetite for them and confirmation of how the Charity is handling them.

Directors’ responsibilities in relation to the financial statements

The Directors are responsible for preparing the Directors’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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

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

The Directors 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.

Statement as to disclosure to our auditors

In so far as the Directors are aware at the time of approving our Directors’ Annual Report:

By order of the Board of Directors on 22 June 2022

John Greenway Chairman

Independent Auditor’s Report

to the members of The Insurance Charities

Opinion

We have audited the financial statements of The Insurance Charities (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 significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We have been appointed auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report to you in accordance with regulations made under those Acts.

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company’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 trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the Directors’ Report other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Directors’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Independent Auditor’s Report

to the members of The Insurance Charities

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 Directors’ Report or the Strategic Report included within the Directors’ Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on page 9, 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.

Independent Auditor’s Report

to the members of The Insurance Charities

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk 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 and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended), Charities Act 2011, the charitable company’s governing document, tax legislation and Charities (Protection and Social Investment) Act 2016. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Directors’ Report and remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the General Data Protection Regulations. We performed audit procedures to inquire of management whether the charitable company is in compliance with these law and regulations and inspected minutes.

The audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.

Independent Auditor’s Report

to the members of The Insurance Charities

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 and to the Charity’s trustees, as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). 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.

Zoe Longstaff-Tyrrell (Senior Statutory Auditor) For and on behalf of RSM UK AUDIT LLP, Statutory Auditor Chartered Accountants Portland 25 High Street Crawley West Sussex RH10 1BG

Date 13 July 2022

Statement of Financial Activities (including Income and Expenditure account)

Year ended 31 March 2022

Year ended 31 March 2022
Unrestricted Restricted Total Funds Total Funds
Funds Funds 2022 2021
Notes £000 £000 £000 £000
Income
Donations and legacies 2 102 4 106 69
Investment income 3 853 85 938 998
Income from charitable activities:
Interest charged on loans 13 1 0 1 1
956 89 1,045 1,068
Other income:
Funds transferred from other charities 17 0 0 0 41
Total income 956 89 1,045 1,109
Expenditure
Expenditure on raising funds 4 135 0 135 134
Investment management costs 5 46 5 51 46
Expenditure on charitable activities 6 804 136 940 1,085
Total expenditure 985 141 1,126 1,265
Net expenditure (29) (52) (81) (156)
Gain/ (Losses) on investment assets 12 1,094 101 1,195 6,251
Net movement in funds for the year 1,065 49 1,114 6,095
Reconciliation of funds
Total funds brought forward 17 35,417 3,416 38,833 32,738
Total funds carried forward 36,482 3,465 39,947 38,833

Balance Sheet

Company number England & Wales 74461 Company number Isle of Man 006098F As at 31 March 2022

Notes
Fixed assets
Tangible assets
11
Investments:
Investments
12
Loans to benefciaries
13
Total fxed assets
Current assets
Debtors
14
Cash at bank and in hand
Total current assets
Liabilities
Creditors falling due within one year
15
Net current liabilities
Total assets less current liabilities
Creditors: falling due after more than one year
16
Total net assets
The funds of the charity:
Restricted income funds
17
Unrestricted general fund
17
Investment revaluation reserve
17
Pension reserve
17
Total Charity Funds		 2022
2021
£000
£000
3
5
37,719
36,644
2,457
2,761
40,179
39,410
125
179
185
142
310
321
(542)
(890)
(232)
(569)
39,947
38,841
0
(8)
39,947
38,833
3,465
3,416
25,302
24,370
11,180
11,035
0
12
39,947
38,833

The financial statements on pages 14 to 27 were approved by the Board of Directors and authorised for issue on 22 June 2022 and signed on its behalf by

John Greenway Chairman

Allan Clare Chair Audit Committee

Statement of cash flows

for the year ending 31 March 2022

Notes
Cash used in operating activities:
Net cash used in operating activities
19
Cash fows from investing activities:
Purchase of fxed assets
Dividends and interest from investments
Proceeds from disposal of investments
Purchase of investments
Cash movements from investing activities
Net cash provided by
investing activities
Change in cash and cash equivalents in
the reporting period
Change in cash and cash equivalents in
of the year
Total cash and cash equivalents at the end
of the year		 2022
2021
£000
£000
(1,015)
(1,466)
(1)
(3)
938
999
5,829
9,345
(5,272)
(8,548)
(437)
(353)
1,058
1,440
43
(26)
142
168
185
142

Notes on the accounts

Year ended 31 March 2022

1 Accounting policies

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

Basis of Preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) – (Charities SORP (FRS 102), and with the Companies Act 2006, and the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006.

The Insurance Charities meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historic cost convention or transaction value unless otherwise stated in the relevant accounting policy note(s).

Preparation of the accounts on a going concern basis

The trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern for the foreseeable future; and the going concern basis of accounting remains appropriate. The trustees consider that the current cash levels, forecast investment income and investment portfolio provide the charity with free reserves that will allow it to continue to achieve its objectives and meet liabilities as they fall due for at least 12 months from the approval of the financial statements.

Income

Income is recognised when the charity has entitlement to the funds, any 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.

For legacies, entitlement is taken as the earlier of the date in which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or part, is only considered probable when the amount can be measured reliabily and the charity has been notified of the executors intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is treated as a contingent asset and disclosed if material.

Compound interest, if charged, on loans secured by mortgages on private property owned by beneficiaries or made against promissory notes is accrued from the date of the advance, unless exceptionally deferred, and credited annually to the Statement of Financial Activities.

Income received in advance of a specified service is deferred until the criterial for income recognition are met.

Donated services

In accordance with the Charities SORP (FRS 102) the general volunteer time of friends is not recognised and refer to the trustees’ annual report for more information about their contribution.

Gifts in Kind

The value of gifts in kind is recognised as income and as a cost where the value exceeds £500 on an individual basis and the value can be assessed with reasonable accuracy.

Notes on the accounts

Year ended 31 March 2022

Fund accounting

Funds held by the charitable company are:

Unrestricted

Unrestricted funds are funds that can be used in accordance with the charitable objects at the discretion of the Trustees.

The investment revaluation reserve represents the difference between the historical cost of investments and their revalued amount at the balance sheet date.

Designated funds have been set aside by the Trustees from general reserves towards certain projects and committed expenditure.

Restricted

These are funds that can only be used for particular restricted purposes within the objects of the charitable company. The restrictions arise by the donor or when funds are raised for a specific purpose.

The Paul Golmick Fund

The Paul Golmick Fund was a charity whose objects fell within those of The Insurance Charities. It was of mutual benefit to both charities for The Insurance Charities to administer the grants of The Paul Golmick Fund. The Insurance Charities could direct some of its applicants to The Paul Golmick Fund leaving more funds available for other applicants. Also administration costs could be shared.

Grants payable were shown before and after contributions from The Paul Golmick Fund. The contribution of The Paul Golmick Fund to expenses was also shown separately.

The Paul Golmick Fund transferred its assets to The Insurance Charities in April 2015 as a restricted fund.

CILA Benevolent Fund

CILA Benevolent Fund was a charity whose objects fell within those of The Insurance Charities. The CILA Benevolent Fund transferred its assets to The Insurance Charities in 2013 as a restricted fund. The Insurance Charities could direct some of its applicants to the CILA Benevolent Fund leaving more unrestricted funds available for other applicants.

CII EATT Fund

A fund established by the CII EATT, administered by The Insurance Charities, to enable those suffering from the financial hardship associated with COVID-19 to attend training courses.

Pension reserve

These are funds that been allocated for paying the Defined Benefit Pension Scheme Recovery Plan.

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 of the costs of marketing and fundraising activites, the costs of investment management, and their associated support costs.

Expenditure on charitable activities include the grants payable, less any contribution from other funds, and activities to further the purposes of the charity and their associated support costs. Grants payable are accrued when approved by the Grants Committee.

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

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 governance costs. These costs have been allocated between cost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in note 7.

Notes on the accounts

Year ended 31 March 2022

Foreign Currencies

Statement of Financial Activities transactions in foreign currencies are translated into sterling at an estimated exchange rate ruling on the date of such transactions. Assets and liabilities denominated in foreign currencies are translated into sterling on the balance sheet date.

Tangible fixed assets

Fixed assets are stated at cost less depreciation.

All equipment costing more than £500 has been capitalised and depreciated on a straight-line basis over its estimated useful life of three years. The carrying values of tangible fixed assets are reviewed for impairment when events or changes indicate the carrying value may not be recoverable. All equipment costing £500 or less is written off in the year of acquisition.

Investments – Investments

Investments are stated at market value in the balance sheet, if listed, or at directors’ valuation, if unlisted. The market value is based on the closing middle market price. Net gains and losses on revaluation and disposals of investments are taken to the statement of financial activities. All movements in value are shown in note 12.

Investments – Loans to beneficiaries

Loans to beneficiaries are stated at the amount awarded. Loans are made predominately on a secured basis, with security being a charge on the beneficiaries properties, and occasionally on an unsecured basis (promissory notes) where the beneficiary does not own property or has insufficient capital.

Provision for doubtful loans is made on an estimation based upon the likelihood of repayment and the ongoing level of contact with the beneficiary. The amount is reviewed on a regular basis.

Debtors

Other debtors are recognised at the settlement amount. Prepayments are valued at the amount relating to future periods based on a time apportionment.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid (less than 3 months) investments

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 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.

Financial instruments

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

Pension Costs

The Charity participates in a multi-employer defined benefit pension scheme and a stakeholder pension scheme. The stakeholder pension scheme costs are charged on the accruals basis.

The defined benefit pension scheme is administered by trustees and is separate from the Charity. An independent qualified actuary completes a valuation triennially and, in accordance with his recommendations, contributions are paid to the scheme so as to secure the benefits set out in the rules and the periodic augmentation of current pensions. The present position in relation to this scheme is described in note 21.

Notes on the accounts

Year ended 31 March 2022

Legal status of the Company

The Company was incorporated pursuant to section Part 1 section 3(3) of the Companies Act 2006 and is limited by guarantee and does not therefore have a share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £10 per member of the charity.

2 Income from donations and legacies
Insurance Charities Awareness Week
Fundraising by local and associated institutes
Membership subscriptions
Insurance employers’ donations
Legacies
Other donations and income
Percentage of income from non-UK source		 2022
2021
£000
£000
1
5
20
13
6
6
50
2
5
0
24
43
106
69
1%
0%

Percentage of income from non-UK source

Included with other donations and income are amounts totalling £Nil (2021: £10,000) from the City of London in the form of a grant in respect of the impact of COVID-19. There are no unfulfilled conditions or other contingencies attached to the grant.

The Company benefits greatly from the involvement and enthusiastic support of its many volunteers, details of which are given in our annual report. In accordance with FRS 102 and the Charities SORP (FRS 102), the economic contribution of general volunteers is not recognised in the accounts.

3 Investment income
Listed investments
Equity
Fixed interest		 2022
2021
£000
£000
757
771
181
227
938
998

The income from investments was £938,000 (2021: £998,000) of which £853,000 (2021: £902,000) was unrestricted and £85,000 restricted (2021: £96,000).

4 Expenditure on raising funds
Salaries, wages and related costs
Other costs
The expenditure was unrestricted in both years.
5 Investment management costs
Stockbroker’s fees and commission		 2022
2021
£000
£000
108
108
27
26
135
134
2022
2021
£000
£000
51
46

The costs of investment management were £51,000 (2021: £46,000) of which £46,000 was unrestricted (2021: £41,000) and £5,000 restricted (2021: £5,000).

Notes on the accounts

Year ended 31 March 2022

6 Expenditure on charitable activities
Grantmaking
Total grants payable
Support costs (note 7)
Governance costs (note 7)		 2022
2021
£000
£000
438
586
440
443
62
56
940
1,085

Grants payable in support of 117 (2021: 260) ‘hardship’ cases.

Expenditure on charitable activities was £940,000 (2021: £1,085,000) of which £804,000 was unrestricted (2021: £824,000) and £136,000 restricted (2021: £261,000).

7 Analysis of governance and support costs

The Charity initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. Having identified its governance costs, the remaining support costs together with governance costs are apportioned. Refer to the table below for the basis of apportionment and the analysis of support and governance costs.

Basis of apportionment
Salaries, wages and related costs
Allocated on time
General offce
Allocated on time
Audit fees
Governance
Legal and professional fees
Allocated on purpose
Travel and subsistance for trustees
Allocated on purpose		 Raising
Charitable
Governance
funds
activities
£000
£000
£000
108
231
31
27
176
9
0
0
22
0
33
0
0
0
0
135
440
62

8 Net expenditure for the year

Net expenditure for the year
This is stated after charging: 2022 2021
£000 £000
Operating lease rentals 48 48
Depreciation 3 7
Auditors’ remuneration:
Audit fee 22 21
Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
2022 2021
£000 £000
Salaries and wages 300 281
Social security costs 22 18
Pension costs 49 57
371 356

9 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel

One employee received gross emoluments of between £80,000 and £90,000 (2021: nil), no employees received gross emoluments of between £70,000 and £80,000 (2021: one) and pension contributions were made on their behalf of £16,423 (2021: £19,697). No other employees received emoluments in excess of £60,000.

Notes on the accounts

Year ended 31 March 2022

Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds.

The Charity trustees were not paid or received any other benefits from employment in the year (2021: £Nil).

Travel and subsistence expenses were reimbursed to seven trustees in the year £1,728 (2021: nil).

No Charity trustee received payment for professional or other services supplied to the Charity (2021: £Nil). There are no other related party transactions.

The key management personnel of the Charity comprise the trustees, the Chief Executive Officer and Accountant. The total employee benefits of the key management personnel of the Charity were £182,720 (2021: £186,085).

The average head count for employees (including part time staff, all administrative) during the financial year was seven (2021: six). One staff member has a disability (2021: one).

10 Corporate Taxation

The Charity is exempt from tax on income and gains falling within sections 466 to 493 of the Corporation Tax Act 2010 to the extent that these are applied to its charitable objectives.

11 Tangible fxed assets
Opening balance 1 April 2021
Additions
Disposals
Closing balance 31 March 2022
Depreciation
Opening balance 1 April 2021
Disposals
Charge for the year
Closing balance 31 March 2022
Net book value
As at 31 March 2022
As at 31 March 2021
12 Investments
Market value at 1 April 2021
Acquisitions at cost
Disposals
Net movement in cash
Net gain/ (loss)
Market value at 31 March 2022
Historical cost at 31 March 2022		 2022
£000
36,644
5,272
(5,829)
437
1,195
37,719
26,539		 Info
Offce
Tech
Equipment
30
15
1
0
(1)
0
30
15
29
11
(1)
0
1
2
29
13
1
2
1
4
2021
£000
30,837
8,548
(9,345)
353
6,251
36,644
25,609		 Total
45
1
(1)
45
40
(1)
3
42
3
5

Notes on the accounts

Year ended 31 March 2022

UK listed – Equity
Overseas – Equity
UK listed – Fixed interest
Overseas – Fixed interest
Property
Infrastructure
Cash deposits		 Market
Historical
Market
Historical
value
cost
value
cost
2022
2022
2021
2021
£000
£000
£000
£000
16,235
10,393
16,905
11,116
13,392
8,566
12,551
7,655
2,909
3,064
3,276
3,321
1,102
1,083
532
522
1,282
953
1,104
953
1,860
1,541
1,775
1,541
939
939
501
501
37,719
26,539
36,644
25,609

The investment revaluation reserve represents the difference between the market value and the historical cost as shown above.

13 Loans to beneficiaries

Balance at 1 April
Advances
Write back of undrawn loans/ write offs
Interest
Repaid
Balance at 31 March
Less: Provision for doubtful loans
Balance at 1 April
Movement
Balance at 31 March
Loans after provisions at 31 March
Interest
rate
Capital
0%
Capital
3%
Accumulated interest
3%
Sterling based loans
Euro based loans
AUS $ based loans		 Secured
Unsecured
Total
Total
loans
loans
2022
2021
£000
£000
£000
£000
2,800
278
3,078
2,978
148
26
174
449
(185)
(5)
(190)
(123)
1
0
1
1
(252)
(41)
(293)
(227)
2,512
258
2,770
3,078
65
252
317
263
0
(4)
(4)
54
65
248
313
317
2,447
10
2,457
2,761
Secured
Unsecured
Total
Total
loans
loans
2022
2021
£000
£000
£000
£000
2,467
258
2,725
3,034
103
0
103
103
(58)
0
(58)
(59)
2,512
258
2,770
3,078
Secured
Unsecured
Total
Total
loans
loans
2022
2021
£000
£000
£000
£000
2,353
245
2,598
2,924
159
13
172
118
0
0
0
36
2,512
258
2,770
3,078

Loans to beneficiaries are mainly secured by first mortgage charges with a few secured by second or subsequent charges and the remainder by promissory notes. They are repayable at death, or when property is not the place of residence, or on disposal.

Notes on the accounts

Year ended 31 March 2022

14 Debtors
Amounts due within one year
Other debtors
Prepayments and accrued income
15 Creditors: Amounts falling due within one year
Benefciary year end commitments
Taxation and Social Security
Pension Contributions
Accruals
Deferred income
Deferred income is the beneft derived from the lease rental free periods.
Deferred income
Balance as at 1 April
Amounts release to income in year
Amounts deferred in year
16 Creditors: Amounts falling due over one year
Pension Contributions
The details of the Recovery Plan are detailed in note 21.		 2022
2021
£000
£000
0
1
125
178
125
179
2022
2021
£000
£000
458
810
8
8
5
13
57
44
14
15
542
890
2022
2021
£000
£000
15
11
(3)
(3)
0
7
12
15
2022
2021
£000
£000
0
8

17 Analysis of charitable funds

Analysis of movements in unrestricted funds

General fund
Investment revaluation reserve
Designated pension fund
Total		 Balance
Balance
1 April
Investment
31 March
2021
Income
Expenditure
gains
Transfers
2022
£000
£000
£000
£000
£000
£000
24,370
956
(973)
1,094
(145)
25,302
11,035
0
0
0
145
11,180
12
0
(12)
0
0
0
35,417
956
(985)
1,094
0
36,482

Notes on the accounts

Year ended 31 March 2022

Analysis of movements in unrestricted funds – previous year

Balance Balance Balance
1 April Investment 31 March
2020 Income
Expenditure
losses		 Transfers 2021
£000 £000
£000
£000		 £000 £000
General fund 24,925 972
(996)
5,686		 (6,217) 24,370
Investment revaluation reserve
4,818		 0
0
0		 6,217 11,035
Designated pension fund 15 0
(3)
0		 0 12
Total 29,758 972
(999)
5,686		 0 35,417
Name of unrestricted fund Description, nature and purpose of the fund
General fund The ‘free reserves’ after allowing for all designated funds.
Investment revaluation reserve The difference between the historical cost of investments and their
revalued amount at the balance sheet date.
Designated pension fund Funds for the Defned Beneft Pension Scheme Recovery Plan.
To be drawn down on an annual basis over the period 2015 – 2023.

Analysis of movements in restricted funds

Balance Balance
1 April Investment 31 March
2021 Income
Expenditure
gains		 2022
£000 £000
£000
£000		 £000
CILA Benevolent Fund 1,138 33
(8)
34		 1,197
Paul Golmick Fund 2,278 56
(133)
67		 2,268
CII EATT Fund 0 0
0
0		 0
Total restricted funds 3,416 89
(141)
101		 3,465
Analysis of movements in restricted funds – previous year
Balance Balance
1 April Investment 31 March
2020 Income
Expenditure
gains		 2021
£000 £000
£000
£000		 £000
CILA Benevolent Fund 936 30
(5)
177		 1,138
Paul Golmick Fund 2,044 66
(220)
388		 2,278
CII EATT Fund 0 41
(41)
0		 0
Total restricted funds 2,980 137
(266)
565		 3,416
Name of restricted fund Description, nature and purpose of the fund
CILA Benevolent Fund To support members of CILA
Paul Golmick Fund To support children and young persons who are under 24 years of
age and at least one of whose parents has been engaged in the
insurance industry.

The funds have been created when the schemes assets have been transferred to The Insurance Charities. Awards made with the purposes are fully allocated against the restricted funds. A contribution towards administration is charged based on the awards granted.

Portfolio income and charges are allocated based on the percentage on transfer date compared to the value of the combined portfolio and cash holdings. At the financial year end the investment gain for the period has been allocated based on the same percentage as the income and charges.

Notes on the accounts

Year ended 31 March 2022

CII EATT

To fund training courses for those working in insurance if they have suffered financial hardship from the impact of COVID 19.

The fund has been created when cash assets have been transferred to The Insurance Charities. Awards made with the purposes are fully allocated against the restricted funds. A flat fee per award has been charged towards administration.

The fund ran until 31 March 2021 when the scheme was transferred to the CII to administer.

18 Analysis of net assets between funds

General
Revaluation		 Designated Restricted 2022 2021
£000
£000		 £000 £000 £000 £000
Tangible fxed assets 3 0 0 0 3 5
Investments 25,531 11,180 0 3,465 40,176 39,405
Current assets 310 0 0 0 310 321
Current liabilities (542) 0 0 0 (542) (890)
Long term liabilities 0 0 0 0 0 (8)
Total net assets 25,302 11,180 0 3,465 39,947 38,833
Analysis of net assets between funds – previous year
General
Revaluation		 Designated Restricted 2021 2020
£000
£000		 £000 £000 £000 £000
Tangible fxed assets 5 0 0 0 5 16
Investments 24,954 11,035 0 3,416 39,405 38,560
Current assets 309 0 12 0 321 316
Current liabilities (890) 0 0 0 (890) (878)
Long term liabilities (8) 0 0 0 (8) (16)
Total net assets 24,370 11,035 12 3,416 38,833 37,998

19 Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds
Add back depreciation charge
Gains on investments
Dividend and interest income shown in investing activities
Interest charged on loans
Decrease/ (Increase) in debtors
Decrease/ (Increase) in loans to benefciaries
Decrease in creditors		 2022
2021
£000
£000
1,114
6,095
3
7
(1,195)
(6,251)
(938)
(998)
(1)
(1)
54
(73)
304
(46)
(356)
(199)
(1,015)
(1,466)

20 Total commitments under operating leases

Commitments due in under 1 year
Commitments due in 2 – 5 years
Commitments due in over 5 years
The lease relates to 2 St Andrews Hill premises.		 2022
2021
£000
£000
55
50
171
226
0
58

Notes on the accounts

Year ended 31 March 2022

21 Pension scheme

Defined benefit scheme

The Charity participates in the Chartered Insurance Institute Pension Scheme 1993, a multi-employer defined benefit scheme in the UK. The assets of the scheme are held in a separate trustee-administered fund. It is not possible to identify each institution’s share of the underlying assets and liabilities of the Scheme and hence contributions to the Scheme are accounted for as if it were a defined contribution scheme. The scheme was closed to future service accrual on 30 June 2006.

This information has been taken from a report on the FRS 102 results for the Chartered Insurance Institute Pension Scheme 1993 as at 31 December 2020, dated 10 February 2021, which was produced for the Chartered Insurance Institute and is based on assumptions and accounting policies chosen by the Chartered Insurance Institute. It has been provided under the terms of the Project Agreement between Mercer and the Chartered Insurance Institute dated 13 January 2021. The main assumptions were:

At year end At year end At year end At year end
31.12.2021 31.12.2020 31.12.2019 31.12.2018
Rate of increase in salaries n/a n/a n/a n/a
Rate of increase to pensions in payment:
Pension earned before 6/4/97 0.00% 0.00% 0.00% 0.00%
Pension earned after 6/4/97 – combined n/a 2.75% 2.80% 3.00%
Pension earned after 6/4/97 – deferred 2.80% n/a n/a n/a
Pension earned after 6/4/97 – pensioner 3.35% n/a n/a n/a
Discount rate 1.80% 1.40% 2.05% 2.90%
Infation assumption – combined n/a 2.85% 2.90% 3.15%
Infation assumption – deferred pre retirement 3.65% n/a n/a n/a
Infation assumption – deferred post retirement 2.95% n/a n/a n/a
Infation assumption – pensioner 3.50% n/a n/a n/a

At 31 December 2021, the market value of the assets of the Scheme was £43,027,000 and the value of past service liabilities was £42,866,000 leaving a surplus of assets of £161,000. The assets therefore were sufficient to cover 100% of the benefits that had accrued to members. However, this surplus is not shown on the balance sheet under FRS 102.

The Charity is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore as required by Section 28 of FRS 102 accounts for the scheme as if it were a defined contribution scheme.

As part of the Recovery Plan, employers contributions of £Nil (2021: £Nil) were payable in respect of employees of The Insurance Charities for the period ended 31 March 2022. Additional future amounts payable under the Recovery Plan have been identified in the Designated Fund. During the year these amounts were fully paid up.

No additional payments (2021: £Nil) were made to purchase future services. It is not expected that service costs will increase as the members approach retirement age.

Stakeholder pension scheme

Employees whose pension provisions are not fully provided for in the above scheme can join the defined contributions scheme with Legal and General Assurance Association. The scheme provides benefits directly determined by the value of the contributions paid in respect of each member.

Employer’s contributions during the year amounted to £52,592 (2021: £57,255).

Schedule 1 – Insurance Employers’ Donations

Year ended 31 March

Schedule 1 – Insurance Employers’ Donations
Year ended 31 March
Aviva
Chubb
Griffths & Armour
Other donations under £ 500 threshold
Total
Schedule 2 – Legacies
Year ended 31 March
Gough
P McGovern
J Worth
I How
Coleman
Searby
D Amor
Other legacies under £500 threshold
Total		 2022
2021
2020
2019
2018
£
£
£
£
£
50,000
-
-
50,000
-
-
2,000
-
-
-
-
-
1,000
1,000
1,000
120
120
120
120
120
50,120
2,120
1,120
51,120
1,120
2022
2021
2020
2019
2018
£
£
£
£
£
5,000
-
-
-
-
-
-
20,833
-
-
-
-
10,000
-
-
-
-
5,000
-
-
-
-
-
17,078
-
-
-
-
10,010
-
-
-
-
-
5,000
-
-
-
-
-
5,000
0
35,833
27,088
5,000

Schedule 3 – Amounts included within Other donations and income Year ended 31 March

Year ended 31 March
2022 2021 2020 2019 2018
£ £ £ £ £
Adrian Flux – Dress Down Days - - 716 - -
Allianz (Ireland) - - - 3,334 -
ARAG (Ireland) 2,797 - - - -
BIBA incl Young Brokers 2,671 30 419 62 -
Chartered Insurance Institute’s Fines Imposed - - - - 300
Chartered Insurance Institute’s Fire Mark Sale - 25,000 - - -
Chartered Institute of Loss Adjusters – Annual Dinner 3,895 - 5,840 4,804 5,643
City of London COVID Grant - 10,000 - - -
Colin Cooper - 5,000 - - -
CRS 2,846 - - - -
Eaton Gate – Xmas Party - 500 - - -
John Farrer - - - 2,000 -
Flint Group - - 1,190 - -
Global Aerospace liquidation - - - - 3,953
Holman Fenwick Willan 580 - - - -
Insurance Lawn Tennis Association 3,975 - - - -
Insurance Karting event 1,800 - - - -
ISS Restoration - 487 - - -
Life Insurance Association - - - 833 -
MGAA Conference 750 - - - -
Marathon – Nuala O’Connor - - - - 4,006
PIB 4,000 - - - -
RSA Pensioners 115 30 370 300 558
Sedgwick - - - 77,524 -
Eric Wills - 300 - 300 300
23,429 41,347 8,535 89,157 14,760
Other donations under £500 threshold 1,041 1,415 2,885 6,005 4,975
Total 24,470 42,762 11,420 95,162 19,735

FIVE YEAR FINANCIAL SUMMARY

Year ended 31 March
STATEMENT OF FINANCIAL ACTIVITIES
Fundraising by local and associated institutes
Donations from insurance employers
Legacies and other income
Investment income and interest income
Other incoming resources
Total Income
Investment management costs
Charitable activities
Grants
Other grant making activities
Costs of generating voluntary income
Governance costs
Total Expenditure
Net Income / (Expenditure) before gains/ (losses)
on investments
Gains/(Losses) on investments
Net Income/ (Expenditure) and net movement
in funds
BALANCE SHEET
as at 31 March
Fixed Assets
Tangible Assets
Investments
Loans to benefciaries
Current Assets
Debtors
Cash at bank and in hand
Creditors:
Amounts due within one year
Amounts due over one year
Net assets
The funds of the charity:
Restricted income funds
Unrestricted income funds
Investment revaluation reserve
Designated income funds
Total charity funds		 2022
2021
2020
2019
2018
£000
£000
£000
£000
£000
20
13
68
103
98
50
2
1
51
1
36
54
58
132
34
939
999
1,273
1217
1,154
0
41
0
0
0
1,045
1,109
1,400
1,503
1,287
51
46
47
46
46
438
586
1,443
1286
954
440
443
481
480
347
135
134
176
152
162
62
56
59
59
60
1,126
1,265
2,206
2,023
1,569
(81)
(156)
(806)
(520)
(282)
1,195
6,251
(4,454)
1,821
144
1,114
6,095
(5,260)
1,301
(138)
2022
2021
2020
2019
2018
£000
£000
£000
£000
£000
3
5
9
16
0
37,719
36,644
30,837
35,833
34,454
2,457
2,761
2,715
2,727
2,669
40,179
39,410
33,561
38,576
37,123
125
179
106
123
116
185
142
168
193
261
310
321
274
316
377
(542)
(890)
(1,085)
(878)
(784)
0
(8)
(12)
(16)
(19)
(542)
(898)
(1,097)
(894)
(803)
39,947
38,833
32,738
37,998
36,697
3,465
3,416
2,980
3,887
3,739
25,302
24,370
24,925
24,250
24,924
11,180
11,035
4,818
9,842
8,011
0
12
15
19
23
39,947
38,833
32,738
37,998
36,697

Support we have provided in 2021/22

----- Start of picture text -----
£
Largest award
£612k
£ 34k
£612k was authorised to help fo r improving
current and former insurance We made f inancial capability
employees and their families
across the UK and Ireland
401 awards
totalling S mallest award
£612k £ 50
for travel to hospital
----- End of picture text -----

Some of the ways we’ve been able to help

£389k Day-to-day hardship

£12k Counselling

----- Start of picture text -----
£134k £20k
Property Specialist
adaptations assessments
& therapies
£10k £26k
Advanced rents Educational
and deposits grants
----- End of picture text -----

www.theinsurancecharities.org.uk

Support we have provided in 2021/22

€734k

€734 was authorised to help current and former insurance employees and their families across the UK and Ireland

~~Some of the ways we’ve been able to help~~

£ Largest award ~~€~~ 9k ~~D~~ ay-to-day hardship In Ireland we made 15 awards totalling ~~S~~ mallest award €32k ~~€~~ for school uniform300 and books

€22k Day-to-day hardship

€5k Educational grants

€2k Specialist assessments & therapies

€2k Property adaptations

www.theinsurancecharities.ie