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2022-03-31-accounts

Company registration number: 00601929 Charity registration number: 223989

The Institute of Race Relations

(A company limited by guarantee)

Annual Report and Financial Statements

for the Year Ended 31 March 2022

Field Sullivan Limited 9 Hare & Billet Road Blackheath London SE3 0RB

The Institute of Race Relations

Contents

Reference and Administrative Details 1
Trustees' Report 2 to 10
Independent Examiner's Report 11 to 12
Statement of Financial Activities 13
Balance Sheet 14 to 15
Notes to the Financial Statements 16 to 28

The Institute of Race Relations

Reference and Administrative Details

Trustees Samuel Berkson Lee Bridges Eddie Bruce-Jones Anthony Bunyan Jonathan Burnett Sue Conlan Rebekah Delsol Saqib Deshmukh David Edgar Gholam Khiabany Joseph Maggs John Narayan Jasbinder Nijjar Colin Prescod Frances Webber Secretary Anya Edmond-Pettitt Charity Registration Number 223989 Company Registration Number 00601929 The charity is incorporated in England & Wales. Registered Office 2-6 Leeke Street London WC1X 9HS Independent Examiner Field Sullivan Limited 9 Hare & Billet Road Blackheath London SE3 0RB

Page 1

The Institute of Race Relations

Trustees' Report

The trustees, who are directors for the purposes of company law, present the annual report together with the financial statements of the charitable company for the year ended 31 March 2022. This is a directors’ report required by s417 of the Companies Act 2006 and all trustees are directors. The financial statements comply with current statutory requirements and the requirements of the Memorandum and Articles of the Association.

The Institute of Race Relations was founded as an independent body and educational charity in 1958. It had its origin in the knowledge that race relations had become a fundamental factor throughout much of human society and that these relations deserved separate and searching study.

Trustees and officers

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

Trustees: Samuel Berkson Lee Bridges Eddie Bruce-Jones Anthony Bunyan Jonathan Burnett Sue Conlan Rebekah Delsol Saqib Deshmukh David Edgar Gholam Khiabany Joseph Maggs John Narayan (appointed 24 April 2022) Jasbinder Nijjar Colin Prescod Frances Webber Daniel Reilly (resigned 25 July 2022) Cilius Victor (resigned 25 July 2022) Secretary: Anya Edmond-Pettitt

Aims and objectives

The main objectives of the Company are:

• To promote the study of the relations between groups racially defined, and the circumstances in which they live and work;

• To make available information on race to different groups and to give advice on proposals for improving relations.

It carries out its educational roles through research, publishing, exchanging and disseminating information.

Page 2

The Institute of Race Relations

Trustees' Report

Most of IRR’s information and publishing is now electronic and reports are in many cases available free to download. IRR News is a fortnightly online publication that includes a European-wide collation of happenings across a range of issues relating to migration, refugees and state and popular racism. A fully searchable database of IRR News’ calendar coverage since 2014 is available in the Register of Racism and Resistance. In addition, IRR produces the international quarterly journal Race & Class also in print format, occasional reports and briefing papers and has a back file of print materials available for use in education and training. Educational materials are downloadable from the website, and the DVDs Struggles for Black Community and Catching History on the Wing are also available. IRR’s library, known as the Sivanandan Collection, has moved to the University of Warwick; a Black History Collection of leaflets, pamphlets and journals from the 1950s to the1980s has been retained and catalogued at the IRR and is available to consult on site. The organisation also holds occasional meetings, seminars, workshops and conferences.

Strategic Plan

The 3-year Strategic Plan for 2022-2024 clarifies the mission of the IRR as speaking up for the most disadvantaged and marginalised. Its ethos being ‘to think in order to do’.

The Plan states that IRR, in seeking transformative change in the field of racial justice, migrant and refugee rights, provides data and analysis of structural, state and popular racism; dissects the ideas/frameworks that provide an intellectual hinterland to racism and fascism; advances clear, progressive, practical anti-racist frameworks (not distorted by fashion or dogma).

By:

• acting as a hub for those seeking improved relations;

• nurturing new and existing groups in the UK and Europe, particularly those defending the human rights of the most vulnerable and marginalised;

• questioning frameworks and perspectives that undermine the fights against structural, popular and state racism and fascism, and providing influential alternatives;

• acting as a bridge between generations, informing new causes and campaigns of the anti-racist tradition and the connections across communities between the past and the present.

Specific aims:

• continue to service a wide cross-section of NGOs, social movements, thinkers and opinion-formers, through research, publications and educational resources, while utilising social media to further disseminate information, provide context and make connections;

• seize opportunities to work with like-minded organisations against multiple threats to democracy in the UK and Europe, intervening in a timely and strategic fashion, using our media and the mainstream’s;

• further improve our internal and external communications systems, embedding communications into all aspects of IRR’s work;

• meet challenges related to staff resources and capacity through fundraising and further review of the role of the Council and the contributions of council members;

• maximise opportunities presented by the 50th anniversary of the transformed IRR to showcase IRR’s work and promote resources.

Page 3

The Institute of Race Relations

Trustees' Report

Report from the Chair

2022 marks a half-century milestone for the IRR – a celebration of sorts. The Institute was formally founded in 1958 with a race relations educational brief, primarily addressing interpersonal relations. It is now 50 years since its critical reorientation, when in 1972 members and staff had come to realise that the defining driver of what had come to be called race relations was racism – a racism that was evident not only in the history of the nation but also in many of its key structures, including in its laws, administration and media.

With IRR50 (a combination of research, publishing, social media interventions, workshops, as well as a special conference) we celebrate the dedicated efforts of staff, trustee-Council members, and volunteers over the years. We also reflect on the IRR’s capacity to transform itself to meet new needs and generate new analysis in ever changing times. The organisation has had to meet all kinds of hardships – lack of funding; difficulties in finding a roof over the head of its valuable resources and library; attempts to stymie its critical voice; attacks from the extreme and New Rights and damaging media calumnies. But under the astute and intrepid direction of first A. Sivanandan and latterly Liz Fekete, the IRR has been able to shine out as a beacon of justice to meet the new challenges that changing racisms have presented. They both managed to regularly recalibrate the work of the IRR and to attract and educate new generations of supporters and audiences to its programmes. We owe them a massive debt of gratitude.

But IRR50 is not a triumphalist celebration. Racism is challenged but far from banished. In Britain the past few years have been hard ones. The debates in the run up to Brexit, and the vote itself, served to consolidate racist narratives alongside phoney national belonging discourse. The Covid19 epidemic impacted most cruelly on the marginalised in our society – worsening their living conditions and striking most particularly those who were crucial service workers keeping the nation and NHS moving. And latterly, inflation and a ‘cost of living’ crisis heap even more hardship on the poorest and most marginalised. Young people, particularly those on the neglected estates of our decaying cities suffer even more cuts in educational and youth provision – even as funding is found for alarming increases in surveillance and police powers. All while the mood music denies institutional racism and derides racial justice as a divisive ‘woke war’.

Yet at the same time what movements around ‘Black Lives Matter’, climate justice and imperial wars, have shown us is that there are strong counter feelings in the UK, and a continuing urgent desire for social justice. And it is to that desire that IRR will and must continue to speak.

Colin Prescod, Chair of Trustees

Page 4

The Institute of Race Relations

Trustees' Report

Achievements and Performance

Research

Over the course of the past year the IRR has carried out research in several key areas.

• Completed a comprehensive review of the erosion of human rights across a range of new pieces of legislation, during the year 2021, which was published as Impunity entrenched on both IRR News (in five parts) and in Race & Class (Vol. 63/4, 2022)

• Carried out a pioneering piece of research into changes in policing across Europe, investigating the ways in which it was, following the example of the US, becoming less democratic and the infiltration and impact of extreme right views and organising into policing, which was published as ‘Racism, radicalisation and Europe’s “Thin Blue Line”’, Race & Class (Vol. 64/1, 2022)

• Investigated the increasing use of deprivation of citizenship against ethnic minority citizens historically and currently, was published as Citizenship: from right to privilege in September 2022.

• Researched the life and artistic contribution in the UK of Pearl Prescod (1920-1966), singer, activist, organiser and the first female black actor at the National Theatre.

• Examined the government’s strategy of ‘levelling up’ and changes in social geography.

• Created the database Register of Racism and Resistance, as a resource for all researchers - classifying for ease of search all the entries on IRR News’ Calendar, from the UK and EU, from 2014 and updated each fortnight on topics such as - Asylum and Migration, Electoral politics, Policing and criminal justice, Anti-fascism and extremism, Counter terrorism, Health, Housing, Welfare, Employment, Media and culture, Racial violence and harassment.

Publishing

The IRR has published:

• Four issues of the international quarterly Journal Race & Class with key articles on the politics of loyalist culture in Northern Ireland, European policing, the work of Cedric Robinson and transnational power in the Russia/Ukraine conflict. The Impact factor of the journal has gone up to 2.9. Former pieces have also been translated and recirculated in other publications and universities this year.

• IRR News, the online news service, produced with the help of seven volunteers, has been produced every fortnight (bar a break in summer) and its coverage and newsletters setting out topical concerns have been widely tweeted (IRR has 14,700 followers). A number of campaigning groups, including Refugee Action, South Yorkshire Migration and Asylum Action Group and Nursing Narratives have contributed this year. Key themes addressed included The Rwanda ‘deal’, Roma from Ukraine, Policing and racism, The Nationality and Borders Bill, Far-right weaponising of violence against women and girls, the Child ‘Q’ case, the growth of ‘civilisational racism’ and the Race and Health Observatory Review.

• Additionally, IRR has created two stand-alone publications: Pearl Priscilla Prescod 1920-1966: a Black life lived large and Citizenship: from right to privilege.

Page 5

The Institute of Race Relations

Trustees' Report

Networking and Outreach

Over the course of the year IRR has joined with several other groups to reinforce its and their message(s) and also to educate and inform other organisations, in the UK and as well as in Europe, sometimes in terms of public speaking, submitting formal evidence, exchanging views in workshops, advising and briefing etc. These have included:

Africa World Now, BBC Documentaries, All Party Parliamentary Group on Trafficked Britons in Syria, Birmingham Museum and Art Gallery, Black Learning Achievement and Mental Health UK, British Film Institute, British Library Oral History Collections, Border Ecologies Network, Bristol Radical History Group, CNN International, Centre on the Dynamics of Ethnicity, City University, European Anti-fascist Monitoring Network, Fear of Missing Out, Independent Investigation into antisemitism in the NUS, Inquest, Institute for Statelessness and Inclusion, JENGbA, Jewish Voice for Labour, Kings College, London, London Permanent Peoples’ Tribunal, The Monitoring Group, National Theatre, Never Again Association (Poland), No Alibis programme, Northern Police Monitoring Group, Precision Health and Everyday Democracy (Malmö) , RAPAR/ Status Now, Reach Out (Berlin), Red Pepper, Refugee Action, Reprieve, Rights and Security International, Rosa Luxemburg Foundation, Social Scientists Against the Hostile Environment, Statewatch, Stopwatch, Stuart Hall Foundation, Surviving Society, University of Florence, The World Transformed, University of Oxford, Young Activists Network (Norwich).

Page 6

The Institute of Race Relations

Trustees' Report

Events

Over the course of the year the IRR hosted three events:

Communications and media impact

Mainstream

IRR interventions were covered in the mainstream media during the year, including:

Social Media

Twitter is our largest platform with 14,600 followers on IRR News and over 7,500 followers on Race & Class . We now have over 1,750 followers on Instagram and over 5,000 Facebook followers. The newsletter for IRR News has over 4,180 subscribers and an average email open rate of 40%.

IRR 50

As 2022 represents fifty years since the IRR’s reorientation by members and staff, IRR took the opportunity to raise its profile, create a base of financial supporters, and interest a greater audience in its future work.

Its programme in 2022 included:

Page 7

The Institute of Race Relations

Trustees' Report

Public benefit

The Institute regularly reviews its activities in the light of its public benefit impact and the guidance to educational charities from the Charity Commission and seeks to extend its work and services to groups whose circumstances and conditions are adversely affected by developments in race relations at any given time. The Institute cannot itself hold a corporate opinion. The trustees confirm that they have complied with the requirements of section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. The main methods used to achieve these aims are:

• To distribute information through a range of audio-visual materials, print and electronic publications and formats;

• To make available resources of published and written materials in a Black History Collection for use by readers and others;

• To, wherever possible, join with other groups in the field to create networks to strengthen our capacity so as to better meet our objectives.

Risk management

The trustees have carried out a review of the major risks which the charity faces on a regular basis and implemented procedures and controls where necessary to mitigate any risks identified. In particular trustees are mindful of obligations under the IRR’s charitable status and have taken pains to ensure that all published materials, including on social media and images neither contravene copyright nor our charitable objects. An annual review of the controls over the financial systems and the operational and business risks which they may face is carried out.

Financial Review

The Company has over the year continued to receive its largest grants from the Paul Hamlyn Foundation and the Joseph Rowntree Charitable Trust and has secured a grant for the next five years from the Joseph Rowntree Charitable Trust. The IRR obtained support from a number of trusts and individuals to fund the activities associated with IRR50. We had to note during the course of the year that the income from our publishing, specifically Race & Class subscriptions, from which we receive a royalty from our Publisher Sage, has, because of new arrangements via Open Access, gone down considerably. This is of concern and steps have been taken to both increase donations to IRR and also to find new funding streams to cover staff salaries. Overall, these drives should be successful and the charity shows a healthy condition at the end of the accounting period. There are no concerns about the charity as a going concern.

Reserves policy

Reserves are regularly reviewed in terms of upcoming needs both in terms of the fabric of the building and the staffing needed to carry forward planned work. The trustees maintain their reserves to enable the maintenance of activities now and in the future.

Page 8

The Institute of Race Relations

Trustees' Report

Investment Policy

The trustees, having regard to the IRR’s liquidity requirements, operate a prudent, low-risk policy. They keep funds in easily accessible interest-bearing deposit accounts.

Structure, Governance and Management

The Institute of Race Relations is a charitable trust No. 223989. It is also a company limited by guarantee and not having a share capital that was incorporated in 1958 under the Companies Act 1948. Its governing document is the Articles of Association. At the 2021 Annual General Meeting Clauses 13 and 52 of the Articles of Association were amended to allow Council meetings and General Meetings to be held remotely.

Management

The IRR's Council of Management, elected from its ordinary members, meets at least once a quarter. Trustees are elected to the council via a ballot of members and serve a term of three years after which they can stand for re-election. The IRR is reviewing the role of trustees and the contribution of members to ensure that the Council is being renewed over time. The day-to-day management of the Institute of Race Relations is carried out by Liz Fekete (Director) and Anya Edmond-Pettitt (Company Secretary).

Training of Trustees

New trustees undergo an orientation day with the chair or vice chair and the staff at the offices of the IRR. Apart from learning about key projects and departments and the day-to-day management structure, they also provided with copies of the Memorandum and Articles of Associates and briefed about their legal obligations under charity and company law. Relevant updates from the Charity Commission are recirculated to all trustees.

Staff

Liz Fekete, Director, head of European Research,

Anya Edmond-Pettitt, Office Manager and Research Assistant to the Director

Sophia Siddiqui, Deputy Editor Race & Class

Liam Shrivastava, Communications Officer

Hazel Waters, Co-editor Race & Class (part time)

Jenny Bourne, Co-editor Race & Class (part time)

Jessica Perera, Researcher (part-time, on maternity leave from September 2022)

Yewande Ovekan, Research Assistant (October-December 2021)

Kaiisha Kukendra, Communications Assistant (September-November 2022)

Volunteers

Volunteers are an integral part of the IRR, providing much needed assistance to staff (particularly on IRR News ) but also providing the opportunity for IRR to help a number of people (usually young people and in line with our Equal Opportunities Policy) to learn new skills and be educated in a number of subject areas. Volunteers had to work remotely over most of the year.

Page 9

The Institute of Race Relations

Trustees' Report

Statement of Trustees' Responsibilities

The trustees (who are also the directors of The Institute of Race Relations for the purposes of company law) are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations. The report and accounts have been prepared in accordance with the provisions in the Companies Act 2006 relating to small companies.

Company 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 state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping adequate 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 and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Small companies provision statement

This report has been prepared in accordance with the small companies regime under the Companies Act 2006.

Approved by the trustees of the charity on 24 October 2022 and signed on its behalf by:

......................................... Colin Prescod Trustee ......................................... ville, Frances Webber Trustee

Page 10

The Institute of Race Relations

Independent Examiner's Report to the trustees of The Institute of Race Relations ("the Company")

I report to the charity trustees (who are also Directors for the purpose of company law) on my examination of the accounts of the The Institute of Race Relations (‘the charitable company’) for the year ended 31 March 2022 which comprise the Statement of Financial Activities, the Balance Sheet and related notes. 13 28

This report is made solely to the charity’s trustees, as a body, in accordance with section 145 of the Charities Act 2011. My work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in this report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for my work, for this report, or for the opinions I have formed.

Responsibilities and basis of report

As the charity’s trustees of The Institute of Race Relations you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

Having satisfied myself that the accounts of The Institute of Race Relations are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity’s accounts as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently I express no opinion as to whether the financial statements present a ‘true and fair’ view and my report is limited to those specific matters set out in the independent examiner’s statement.

Independent examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:

  1. accounting records were not kept in respect of The Institute of Race Relations as required by section 386 of the 2006 Act; or

  2. the accounts do not accord with those records; or

  3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a ‘true and fair view' which is not a matter considered as part of an independent examination; or

  4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.

Page 11

The Institute of Race Relations

Independent Examiner's Report to the trustees of The Institute of Race Relations ("the Company")

...................................... Timothy Sullivan FCA 9 Hare & Billet Road Blackheath London SE3 0RB Date:.............................

Page 12

The Institute of Race Relations

Statement of Financial Activities for the Year Ended 31 March 2022 (Including Income and Expenditure Account and Statement of Total Recognised Gains and Losses)

Total Total
Unrestricted Restricted 2022 Unrestricted Restricted 2021
Note £ £ £ £ £ £
Income and Endowments from:
Donations and legacies 3 59,144 86,391 145,535 101,007 25,186 126,193
Charitable activities 4 67,531 - 67,531 100,180 - 100,180
Investment income 5 13 - 13 38 - 38
Other income 6 14,727 - 14,727 7,360 - 7,360
Total income 141,415 86,391 227,806 208,585 25,186 233,771
Expenditure on:
Charitable activities 7 (155,061) (60,543) (215,604) (186,962) (22,160) (209,122)
Total expenditure (155,061) (60,543) (215,604) (186,962) (22,160) (209,122)
Net movement in funds (13,646) 25,848 12,202 21,623 3,026 24,649
Reconciliation of funds
Total funds brought forward 130,715 117,698 248,413 109,092 114,672 223,764
Total funds carried forward 16 117,069 143,546 260,615 130,715 117,698 248,413

All of the charity's activities derive from continuing operations during the above two periods.

The funds breakdown for 2021 is shown in note 16.

The notes on pages 16 to 28 form an integral part of these financial statements.

Page 13

The Institute of Race Relations

(Registration number: 00601929) Balance Sheet as at 31 March 2022

2022 2021
Note £ £
Fixed assets
Tangible assets 11 107,835 109,518
Current assets
Stocks 12 800 800
Debtors 13 47,970 69,919
Cash at bank and in hand 14 110,676 89,532
159,446 160,251
Creditors: Amounts falling due within one year 15 (6,666) (21,356)
Net current assets 152,780 138,895
Net assets 260,615 248,413
Funds of the charity:
Restricted income funds
Restricted funds 143,546 117,698
Unrestricted income funds
Unrestricted funds 117,069 130,715
Total funds 16 260,615 248,413

For the financial year ending 31 March 2022 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The notes on pages 16 to 28 form an integral part of these financial statements. Page 14

The Institute of Race Relations

(Registration number: 00601929) Balance Sheet as at 31 March 2022

The financial statements on pages 13 to 28 were approved by the trustees, and authorised for issue on 24 October 2022 and signed on their behalf by:

......................................... Colin Prescod Trustee ......................................... ville, Frances Webber Trustee

The notes on pages 16 to 28 form an integral part of these financial statements. Page 15

The Institute of Race Relations

Notes to the Financial Statements for the Year Ended 31 March 2022

1 Charity status

The charity is limited by guarantee, incorporated in England & Wales, and consequently does not have share capital. Each of the trustees is liable to contribute an amount not exceeding £1 towards the assets of the charity in the event of liquidation.

The address of its registered office is: 2-6 Leeke Street London WC1X 9HS

These financial statements were authorised for issue by the trustees on 24 October 2022.

2 Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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 2019) - (Charities SORP (FRS 102) - Second edition October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). They also comply with the Companies Act 2006 and Charities Act 2011.

Basis of preparation

The Institute of Race Relations meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

Going concern

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern nor any significant areas of uncertainty that affect the carrying value of assets held by the charity.

Exemption from preparing a cash flow statement

The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.

Page 16

The Institute of Race Relations

Notes to the Financial Statements for the Year Ended 31 March 2022

Judgements and key sources of estimation uncertainty

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying 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 ongoing basis. Revisions to accounting estimates are recognised in the periods in which the estimate is revised where revisions affects only that period, or in the period of the revision and future periods where the revisions affects both current and future periods.

Income and endowments

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of the income receivable can be measured reliably.

Donations and legacies

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance by the charity before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that these conditions will be fulfilled in the reporting period.

Grants receivable

Grants are recognised when the charity has an entitlement to the funds and any conditions linked to the grants have been met. Where performance conditions are attached to the grant and are yet to be met, the income is recognised as a liability and included on the balance sheet as deferred income to be released.

Investment income

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Expenditure

All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.

Charitable activities

Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

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The Institute of Race Relations

Notes to the Financial Statements for the Year Ended 31 March 2022

Support costs

Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.

Governance costs

These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.

Taxation

The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Tangible fixed assets

Individual fixed assets costing £500.00 or more are initially recorded at cost.

Depreciation and amortisation

Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:

Asset class Depreciation method and rate
Plant and machinery 25% straight line basis
Fixtures and fittings 2% straight line basis

Stock

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the charity will not be able to collect all amounts due according to the original terms of the receivables.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

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The Institute of Race Relations

Notes to the Financial Statements for the Year Ended 31 March 2022

Foreign exchange

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are reported at the rates of exchange prevailing at that date.

The results of overseas operations are translated at the average rates of exchange during the period and their balance sheets at the rates ruling at the balance sheet date. Exchange differences arising on translation of the opening net assets and results of overseas operations are reported in other comprehensive income and accumulated in equity (attributed to non-controlling interests as appropriate).

Other exchange differences are recognised in the Statement of Financial Activities in the period in which they arise except for:

1) exchange differences on transactions entered into to hedge certain foreign currency risks (see above);

2) exchange differences arising on gains or losses on non-monetary items which are recognised in other comprehensive income; and

3) in the case of the consolidated financial statements, exchange differences on monetary items receivable from or payable to a foreign operation for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised in other comprehensive income and reported under equity.

Fund structure

Unrestricted income funds are general funds that are available for use at the trustees discretion in furtherance of the objectives of the charity.

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The Institute of Race Relations

Notes to the Financial Statements for the Year Ended 31 March 2022

3 Income from donations and legacies

Unrestricted
Total Total
General Restricted 2022 2021
£ £ £ £
Donations and legacies;
Donations from individuals 4,886 - 4,886 29,884
Gift aid reclaimed 258 - 258 2,023
Grants, including capital grants;
Paul Hamlyn Foundation - 32,000 32,000 -
Grants - other agencies 4,000 - 4,000 5,000
Joseph Rowntree Charitable
Trust 50,000 - 50,000 64,100
Resourcing Racial Justice - - - 6,500
Open Society Foundations - 54,391 54,391 18,686
59,144 86,391 145,535 126,193
4 Income from charitable activities
Unrestricted
funds Total Total
General 2022 2021
£ £ £
Race & Class 67,531 67,531 100,180
5 Investment income
Unrestricted
funds Total Total
General 2022 2021
£ £ £
Interest receivable and similar income;
Interest receivable on bank deposits 13 13 38
6 Other income
Unrestricted
Total Total
General 2022 2021
£ £ £
Fees 14,727 14,727 7,360

Page 20

The Institute of Race Relations

Notes to the Financial Statements for the Year Ended 31 March 2022

7 Expenditure on charitable activities

Total Total
2022 2021
Note £ £
Project cost 3,373 2,478
Wages and salaries 157,965 156,893
Social security costs 10,374 10,064
Pension 7,420 6,570
Other staff costs (1,073) 1,256
Allocated support costs 8 37,545 31,861
215,604 209,122

Page 21

The Institute of Race Relations

Notes to the Financial Statements for the Year Ended 31 March 2022

8 Analysis of governance and support costs

Support costs

Total Total
2022 2021
£ £
Rates 5,786 5,786
Light, heat and power 2,494 1,122
Insurance 2,213 1,738
Repairs and renewals 3,108 4,430
Telephone and fax 1,508 853
Computer software and maintenance 10,205 8,449
Printing, postage and stationery 1 -
Printing, postage and stationery 1,561 1,760
VAT partial exemption adjustment 2,073 1,439
Sundries 1,312 643
Travel and subsistence 85 -
Independent examination 2,055 1,870
Other accountancy - (696)
Bank charges 213 165
Other interest payable 877 -
Foreign currency (gains)/losses (17) 41
Depreciation of freehold property 3,474 3,474
Depreciation of office equipment 597 787
37,545 31,861

Page 22

The Institute of Race Relations

Notes to the Financial Statements for the Year Ended 31 March 2022

9 Staff costs

The aggregate payroll costs were as follows:

The aggregate payroll costs were as follows:
2022 2021
£ £
Staff costs during the year were:
Wages and salaries 157,965 156,893
Social security costs 10,374 10,064
Pension costs 7,420 6,570
Other staff costs (1,073) 1,256
174,686 174,783

No employee received emoluments of more than £60,000 during the year.

10 Taxation

The charity is a registered charity and is therefore exempt from taxation.

11 Tangible fixed assets

Land and Furniture and
buildings equipment Total
£ £ £
Cost
At 1 April 2021 173,694 25,830 199,524
Additions - 2,388 2,388
At 31 March 2022 173,694 28,218 201,912
Depreciation
At 1 April 2021 64,176 25,830 90,006
Charge for the year 3,474 597 4,071
At 31 March 2022 67,650 26,427 94,077
Net book value
At 31 March 2022 106,044 1,791 107,835
At 31 March 2021 109,518 - 109,518

Page 23

The Institute of Race Relations

Notes to the Financial Statements for the Year Ended 31 March 2022

12 Stock

2022 2021
£ £
Stocks 800 800
13 Debtors
2022 2021
£ £
Prepayments 422 632
Accrued income 27,261 59,926
Other debtors 20,287 9,361
47,970 69,919
14 Cash and cash equivalents
2022 2021
£ £
Cash on hand 202 770
Cash at bank 110,474 88,762
110,676 89,532
15 Creditors: amounts falling due within one year
2022 2021
£ £
VAT 3,791 17,794
Accruals 2,875 3,562
6,666 21,356

Page 24

The Institute of Race Relations

Notes to the Financial Statements for the Year Ended 31 March 2022

16 Funds
Balance at 1 Incoming Resources Balance at 31
April 2021 resources expended March 2022
Current period £ £ £ £
Unrestricted
General
General Funds 64,777 141,415 (155,061) 51,131
Designated
Redundancy/maternity 17,524 - - 17,524
Staff training 5,000 - - 5,000
Building maintenance 40,414 - - 40,414
Publication promotion 3,000 - - 3,000
65,938 - - 65,938
Total unrestricted 130,715 141,415 (155,061) 117,069
Restricted
European Research Programme - 54,391 (18,686) 35,705
Resourcing Racial Justice 6,500 - (6,500) -
Building Fund 109,518 - (3,474) 106,044
Community Fund - Capital 1,680 - - 1,680
Paul Hamlyn Foundation - 32,000 (31,883) 117
117,698 86,391 (60,543) 143,546
Total funds 248,413 227,806 (215,604) 260,615

Page 25

The Institute of Race Relations

Notes to the Financial Statements for the Year Ended 31 March 2022

Balance at 1 Incoming Resources Resources Balance at 31
April 2020 resources expended March 2021
Previous period £ £ £ £
Unrestricted
General
General Funds 43,154 208,585 (186,962) 64,777
Designated
Redundancy/maternity 17,524 - - 17,524
Staff training 5,000 - - 5,000
Building maintenance 40,414 - - 40,414
Publication promotion 3,000 - - 3,000
65,938 - - 65,938
Total unrestricted 109,092 208,585 (186,962) 130,715
Restricted
European Research Programme - 18,686 (18,686) -
Resourcing Racial Justice - 6,500 - 6,500
Building Fund 112,992 - (3,474) 109,518
Community Fund - Capital 1,680 - - 1,680
114,672 25,186 (22,160) 117,698
Total funds 223,764 233,771 (209,122) 248,413

Page 26

The Institute of Race Relations

Notes to the Financial Statements for the Year Ended 31 March 2022

Designated Funds

The council of management have allocated part of the reserves of the Institute to provide various possible future commitments, not covered by Grant Aid for the maintenance and development of the Institute, its staff and premises. The titles of the various funds are considered to be self-explanatory.

Restricted Funds

The European Research Programme monitors and analyses racism in Europe. This is a three year grant covering the period from 1 May 2021 to 30 April 2024, that was received in full in 2021.

Resourcing Racial Justice represents funds to increase accessibility of the anti-racist history held in the IRR to promote engagement and awareness in the wider public.

The Building Fund represents funds raised to purchase the premises at Leeke Street, less the amount of depreciation charged on the building to date.

The Community Fund Capital Fund represents the undepreciated portion of expenditure on capital equipment.

The IRR News fund assists with the running and production of IRR News articles and social media communications.

Paul Hamlyn Foundation is to support building communitcations capacity.

Page 27

The Institute of Race Relations

Notes to the Financial Statements for the Year Ended 31 March 2022

17 Analysis of net assets between funds

2022 net assets between funds

Unrestricted

Total funds
General Designated Restricted 2022
£ £ £ £
Tangible fixed assets 1,791 - 106,044 107,835
Current assets 56,006 65,938 37,502 159,446
Current liabilities (6,666) - - (6,666)
Total net assets 51,131 65,938 143,546 260,615

2021 net assets between funds

Unrestricted

Total funds
General Designated Restricted 2021
£ £ £ £
Tangible fixed assets - - 109,518 109,518
Current assets 86,133 65,938 8,180 160,251
Current liabilities (21,356) - - (21,356)
Total net assets 64,777 65,938 117,698 248,413

Page 28