2021-12-31-accounts

For the year ended 31 December 2021

Contents

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2021 Trustees’ Annual Report 1
Independent Auditor’s Report 13
Consolidated Statement of Financial Activities 17
The Society Statement of Financial Activities 18
Consolidated Balance Sheet 19
Society Balance Sheet 20
Statements of Cash Flows 21
Notes to the Consolidated and Society Financial Statements 22
Legal and Administrative Information 46
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The British Psychological Society

2021 Trustees Annual Report

The trustees are pleased to present their Report and the Group Financial Statements of The British Psychological Society (‘the Society’) for the year ended 31 December 2021. The Society operates both in the UK and worldwide and is registered with the Charity Commission for England and Wales under registration number 229642. The Society is also registered in Scotland with the Office of the Scottish Charity Regulator (OSCR) under registration number SC039452. It is incorporated by Royal Charter. The principal place of business is St. Andrew’s House, 48 Princess Road East, Leicester LE1 7DR.

The trustees are responsible for ensuring that the financial statements prepared give a true and fair view of the group’s activities and are presented in accordance with the Charities Act 2011 and Accounting and Reporting for 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

Structure, governance and management

The Society is governed by a Royal Charter, originally granted in February 1965, which defines the Society’s objects as:

‘to promote the advancement and diffusion of the knowledge of psychology pure and applied and especially to promote the efficiency and usefulness of members of the Society by setting up a high standard of professional education and knowledge.’

In December 2021, following consultations with members in relation to proposed changes to the Society’s membership grades and governance arrangements, the trustees approved a number of amendments to the Society’s Royal Charter, Statutes and Rules. These amendments were then approved by a ballot of members, the results of which were confirmed at a Special General Meeting in February 2022. At the time of writing, we are awaiting formal approval from the Privy Council of the amendments to the Royal Charter and Statutes.

The proposed redesign of membership grades seeks to improve inclusivity, to address the lack of opportunity for graduates who are not intending on a career as a Chartered Psychologist, to improve flexibility in accessing membership (without impacting on standards), and to open the Society to membership from the wider psychological workforce.

The aim of the proposed governance changes is to modernise the Society’s governance, including by separating the role of President from a new role of Chair, by allowing for the possibility of some trustees with specialist skills being drawn from outside Society membership, and by updating and modernising the Society’s governance arrangements to reflect changes in charity law.

Legal and administrative information, including details of the trustees, Chief Executive and Senior Management Team, can be found on pages [46] and [47] or on the Society’s website: www.bps.org.uk

The trustees are responsible for the governance of the Society: the management is devolved to the Chief Executive and Senior Management Team.

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The British Psychological Society

2021 Trustees Annual Report (Continued)

Governance and internal control

Trustees meet regularly to review the Society’s strategy and performance. The Society’s Royal Charter and Statutes set out the composition of the Trustee Board and how trustees are appointed. There is an induction process for new trustees and ongoing training and development initiatives, including briefings by external specialists on key areas of knowledge relevant to the role of the Board.

Trustees have continued to focus on excellent practice as outlined by the Charity Code of Governance. Trustees have planned for the governance changes under the proposed amendments to the Royal Charter and Statutes. In September 2021, the Board of Trustees approved the establishment of the new Equality, Diversity and Inclusion Strategy Board. The Board of Trustees seek to ensure that they have an appropriate range of relevant skills, knowledge and experience. Fostering diversity in leadership has been established as a central component of recruitment of the Society’s chief executive and senior managers.

The Society’s pay policy is designed to maintain sustainable and fair levels of pay at the same time as attracting and retaining the right people to deliver its charitable objectives. In setting appropriate levels of senior management pay, the Society looks at the skills, experience and competencies required for each role. Roles are graded following external evaluation and salary is set within the pay scales of the grade, except where the benchmarking of a role (via external agencies and proprietary pay surveys) demonstrates that the level of pay for the post needs to be adjusted to attract candidates of the calibre and experience required and to bring the salary for the role in line with the market. Salary levels are disclosed in note [11] to these accounts.

The Trustees give of their time freely and no Trustee received remuneration for being a Trustee in the year. Details of Trustee expenses are disclosed in note [12] to the accounts.

During 2021 there were three sub-committees of the Board of Trustees which reported directly to the Board, providing oversight of Risk and Assurance, Human Resources and Finance. During 2022 the Board of Trustees reviewed its subcommittees and established a new Governance, Board Effectiveness and Nominations subcommittee. The terms of reference of all the subcommittees were revised in 2022.

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The British Psychological Society

2021 Trustees Annual Report (Continued)

Public benefit

The trustees have reviewed this in conjunction with the guidance contained in the Charity Commission’s general guidance on public benefit, and have concluded:

• That the aims of the organisation continue to be charitable.

• That the aims and work done give clear benefits to the charitable sector and that members of the public are aware of the high standards and education that members achieve.

• That the benefits are for the public, are not unreasonably restricted in any way and certainly not by ability to pay.

• That there is no detriment or harm arising from the aims or activities.

• That the public are made aware of developments in the profession and the science that affects their daily lives.

• That membership fees are modest and that there is a grade of subscription that is open to the public, who share an interest in the profession.

• That the website is available to all and not just members.

Strategic Report

Achievements and performance

In another year that has brought unique challenges, staff have worked to adapt to the ever-changing world, navigating the pandemic – which started with full lockdowns, moved through varying degrees of society opening back up, and ended with booster vaccinations in the winter and seeing the light at the end of a very long tunnel.

Moving psychological science forward

We have continued to move psychological science forward throughout 2021 and have worked in partnership with member networks to offer online events and conferences. More than 300 events were delivered – a combination of CPD, open science, conferences and networking events – with more than 25,000 delegates across the year.

All the events continued to be delivered online, with the exception of two live events towards the end of the year. The Division of Sport and Exercise Psychology held a successful face-to-face conference in December which was a welcome start to return to in-person events.

During 2021 we have managed 84 AGMs, the majority online, continuing the increased attendance and engagement. During the year, we administered more than 500 member network meetings, a significant increase due to the accessibility of conducting meetings virtually.

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The British Psychological Society

2021 Trustees ANNUAL REPORT (Continued)

In 2021 we successfully integrated PsyPAG the postgraduate affairs group to become an official BPS member network. This enabled us to build strong links with the postgraduate community, better support their events, research and publications and offer a clearer and stronger journey and home for our student and graduate members. We closed the year with 48,107 member network registrations, an increase of 1,485 on the year before.

First-class research is at the heart of what we do. It enables us to understand the challenges facing our membership, but also shines a spotlight on the standard of work within psychology. We published reports from two surveys exploring the impact of Covid-19 on psychology university staff and students in the UK with follow-up surveys undertaken in November 2021. Our move to position the society with a strong voice on large issues saw us mark COP26 with research to understand the impact of climate change on mental health. We continued to provide a range of guidance documents for our members including an updated ‘Alternative Handbook’ in partnership with the Division of Clinical Psychology. We also updated the BPS internet mediated research guidelines and our ‘Supporting people who lack mental capacity – a guide to best interests decision making’ guidance.

Our highly respected journals continue to perform well, with a 31 per cent increase in the number of downloads of articles from the BPS portfolio. Impact factors have increased for six of the journals, with British Journal of Health Psychology at 8.101 and British Journal for Social Psychology at 6.920. We reached global audiences with 19 percent of downloads coming from the USA and 22 percent the ‘rest of the world’. Ensuring open and transparent access to research is key, with an increase from 28 per cent in 2020 to 39 per cent of articles published in 2021 as open access.

In November 2021 the trustees approved the redesignation of the Special Group in Coaching Psychology as a Division, setting the ground for the society to be the leading authoritative voice in the education, training, practice and development of the coaching profession in the UK. This is the culmination of many years of work by members with expertise in this area who have made coaching psychology a recognised domain of practice, including the development of standards for the accreditation of Level seven programmes in coaching psychology, and Level eight standards for the recognition of individuals as Chartered Coaching Psychologists. Members of the SGCP are being transferred into the new Division through an innovative peer review process, and a new professional recognition route is under development to recognise the expertise of individuals through a new flexible and inclusive portfolio assessment process.

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The British Psychological Society

2021 Trustees ANNUAL REPORT (Continued)

Supporting our members

Members are the lifeblood of our organisation and despite having a significant reduction in processing capability due to the implementation of the new CRM the society grew its membership by one per cent in 2021. We launched a ‘Find your Member Network’ tool which thanks to an engaging marketing campaign drove a three per cent growth in members participating in networks.

To support the membership team the marketing team expanded in order to provide more dedicated resource to our member retention and recruitment strategy. We implemented a multi-step personalised approach to our communications which enabled us to lapse 28 per cent less members in 2021 compared to 2020 (9,056 v 11,157). We offered automatic student membership to all learners on the first year of a BPS-accredited programme, allowing the society to directly support students entering into the profession.

We made improvements to member benefits to ensure we are meeting our members’ needs throughout their psychology journey and took forward the Member Journey initiative, undertaking a substantial review of the member grades, understanding why people join and why members leave. More than 1,000 members engaged in different ways and we also engaged non-members and those who left membership of the BPS.

At 31 December 2021 we had 17,064 student members, 26,886 graduates and 20,116 chartered members.

As one of the improved membership benefits, the BPS continued to develop and deliver a range of Professional Development opportunities. 2021 saw the launch of three Autism e-learning modules and our Supervision Skills refresher course. Alongside this professional development we delivered 31 live webinars engaging with 1,281 learners. 2021 also saw the release of a number of recorded webinars on BPS Learn to enable members to learn and study at a time and pace that suits them. We have increased the offering on BPS Learn to include qualification and apprenticeship portals.

Our magazine, The Psychologist , attracted 2.2 million users to its website, up 12 per cent on the year before. Its community also grew on social media, including 140,000+ followers on Twitter. A continued focus on channels, community and content has helped us to put out packed and diverse print editions, including a combined July/August edition around the society’s Senate-voted theme ‘From poverty to flourishing’. A contributor to that, Professor Greta Defeyter, was our speaker for ‘The Psychologist Presents…’ at Latitude Festival.

We also put on several workshops for university departments, plus one on ‘living with and beyond cancer’ (linked to our May issue) which was hosted by psychologist and broadcaster Sian Williams.

Our Research Digest website welcomed 2.46 million visitors, ahead of its planned integration with The Psychologist online. We put out six episodes of the PsychCrunch podcast, which received more than 90,000 downloads across the year, and sent out 50 email newsletters.

We continued to build on the Member Communications project in order to ensure members are getting the information they want and need. A shift to a new email platform in Q4 of 2021 enabled us to streamline our design and production process and implement dynamic content to members’ preferences.

Online Communities, our platform designed to increase opportunities for member discussion and collaboration, continues to grow and be a hub for discussion and debate. It has gained 4,564 new sign-ups across 2021 with 164 posts on average per month by members.

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The British Psychological Society

2021 Trustees ANNUAL REPORT (Continued)

Promoting the highest standards in education

We have continued to respond swiftly and adapt to hybrid working to ensure that the highest standards in psychology education were maintained during the lockdown periods and extended periods of disruption in 2021. We updated and adapted our flexible arrangements to allow undergraduate programmes to remain accredited and ensure students’ and trainees’ progression would not be adversely affected. Additional guidance was also published in June 2021 by The Partnership and Accreditation team to support remote delivery formats.

In collaboration with our Undergraduate Education Committee and our Training Committees, we have honed the excellence of our training standards. This includes the oversight of the accreditation process for programmes in psychology delivered by our education partners. To support this model we requested an early revision to the QAA Benchmark Statement, which was granted.

In December 2021 the Partnership and Accreditation Committee held their initial meeting of a new EDI working group which will bring together all EDI best practice from across the Education, and Training Committees to feed into both the standards for accreditation, and also the society’s strategic framework objectives.

We worked to become a home for the wider psychological workforce and we have developed a registration scheme for roles in the wider psychological workforce, with the launch of the Wider Psychological Workforce Register for PWPs and Scottish CAAPs and the Children and Young People’s accreditation standards for CWP and EMHP roles in 2021. We introduced a number of new roles, including the Youth Intensive Psychological Practitioner (YIPP) role, and the Mental Health Wellbeing Practitioner (MHWP) role.

BPS qualifications continue to be seen as the ‘gold-standard’ and in 2021 we launched the new Qualification in Forensic Psychology (QFP). We saw a substantial increase in enrolments on the Qualification of Health Psychology, with 16 enrolments compared to five in 2020. A new Qualification in Clinical Neuropsychology (QiCN) training route for counselling psychologists was developed, and we were delighted to be successful in our bid to win a contract with the Ministry of Justice to deliver the QFP for some forensic psychologists working in Her Majesty’s Prison and Probation Service (HMPPS).

In July 2021 the society recruited its first ever dedicated careers manager to develop and deliver on its long term aim to become a career companion for all its members across the span of their education, training and employment. We have worked closely with large employers such as NHS England to explore how we can support them in successfully filling vacant posts, particularly in areas such as Mental Health, and with pre-university students to better prepare them for psychology careers.

Society Qualifications Enrolments 2021
Counselling	9
Educational	34
Clinical Neuro	5
Forensic	86
Occupational	21
Health	16
Sport and Exercise	17

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The British Psychological Society

2021 Trustees ANNUAL REPORT (Continued)

RQTU membership grew in 2021 to 11,884. Verifications have been moved onto BPS Learn which is streamlining activity and increasing transparency. We were proud that BPS Assessments and Awards Limited was approved by Ofqual to deliver end point assessments for the Psychological Wellbeing Practitioner (PWP) apprenticeship standard and now appears on the government’s Register of End Point Assessment Organisations.

Influencing public policy

In 2021 we created a dedicated BPS Public Affairs team responsible for the advocacy and influencing strategy of the society.

We have focused on promoting policy views amongst influential political and wider stakeholders, advocating for the profession by building collaborative relationships and undertaking joint pieces of work to amplify our voice and increase our visibility. This has been particularly evident in the work we have done around significant pieces of legislation – working together with the BMA and others enabling us to successfully secure amendments to the Police, Crime, Sentencing and Courts Bill on the issue of the sharing of medical information, and our position and briefing on the Online Safety Bill has been informed by our strong relationships with prominent stakeholders working in the area.

A significant number of consultations have been submitted this year on a wide range of policy issues, including to the Autumn Budget, on workforce training, retention and recruitment and on banning conversion therapy. Our responses to consultations have led to further discussions with government departments, cross-party politicians and wider stakeholders, and have led to us giving oral evidence in the Scottish Parliament.

Children and young people have formed a central part of our work this year largely due the amount of interest all Parliaments have dedicated in particular to the impact of the pandemic on education and children’s mental health. Our #TimetoPlay campaign was launched in collaboration with a large and diverse range of stakeholders and continues to open the door for our engagement with a number of MPs and government officials within the Department for Education.

Improving psychology’s visibility

The first half of 2021 continued to bring a demand from the media for expert comment on the mental health impact of the pandemic, when life started to return to normal, the desire for media comment on Covid-related topics lessened, and the team shifted towards a more proactive, bolder approach to working with the media, offering stronger comment on important issues, such as the cut to Universal Credit and the Time to Play campaign.

In 2021 we handled over 430 media calls, supporting journalists looking for expert comment, resulting in 3,822 mentions in articles across local, regional, national and international media. This is down slightly on the unpresented highs of 2020 as the demand for Covid-related comment reduced.

The team published 33 news releases and 160 web news items with 45,194 views. Highlights included a letter to the health secretary from a coalition of health organisations, led by the society, calling for the uplift to Universal Credit to be made permanent. The society’s consistent campaigning on this issue at periods throughout 2021 led to over 200 pieces of coverage alone, including across the BBC, in the Daily Mirror, Daily Mail, Evening Standard, the Guardian and Daily Express, and support for the campaign from the Leader of the Opposition Sir Keir Starmer.

Proactive media work in partnership with the Division of Educational Psychology about the dangers of the ‘catch up narrative’ saw coverage achieved in the Telegraph, the BBC and Sky News. The issue of children’s wellbeing proved fruitful with the launch of the Time of Play campaign gaining traction in the Sun and across BBC radio.

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The British Psychological Society

2021 Trustees ANNUAL REPORT (Continued)

Report production increased by over 200 per cent to 82, which included several guidance publications for the Practice team and Member Networks, including Working with autism, Acute Adult Mental Health Care Pathway, Working with people with eating disorders, Psychological support for schools following a crisis or disaster and Family interventions in psychosis.

Increased focus on delivering digital products and services that meet the needs and expectations of our members and customers has helped to drive significantly more people to our website. There were more than 9.6 million visits last year – a 4.2 per cent increase compared with the previous 12 months. Member log-ins increased by 4.8 per cent in 2021, enabling members to take advantage of the full range of digital member benefits.

There has been an 11.6 per cent increase in visits to the graduate membership page, which reflects a key stream of work to convert student members to graduate membership. The work to improve our CPD offering to members was evident with a 21.65 per cent increase in visits to the Professional Development pages.

Our social media presence continues to grow, with our following across each of our three key platforms – Facebook, LinkedIn and Twitter – increasing considerably in 2021.

Facebook is our largest platform, with nearly 270,000 followers. Our posts reached more than 2.3 million people in 2021, a 107 per cent increase on the year previous. Meanwhile, our Twitter following grew by more than 12,000, to over 104,000.

There were 171 videos uploaded to our YouTube during 2021, with our series of ‘day in the life’ videos proving the most popular gathering over 7,000 views.

In 2021 BPS committed to invest in a new Data and Analytics function in order to build on the digital transformation programme and leverage the value of our data. A Head of Data and Analytics was recruited and on-boarded in October 2021 and in collaboration with colleagues, started to form the Data Strategy: our plan to improve the ways we acquire, store, manage, share and use data which will empower society colleagues to leverage data to drive our business strategy.

Promoting equality, diversity and inclusion

The past year has seen a range of positive changes and developments in our ongoing commitment to embed equality, diversity and inclusion across all society workstreams and building outcome measures for the wide range of work currently underway within the society. This foundation building has seen us work with the society’s Diversity Taskforce during their final year of operation on the creation of a new Equality, Diversity and Inclusion Strategic Board for 2022, and new advisory groups, including Human Rights, Decolonising the Curriculum and Experts by Experience.

During the final year of operation the Diversity Taskforce have relentlessly championed the development of equality, diversity and inclusion practice across the society from producing a diverse range of webinars for members allowing for learning, discussion and involvement through to media statements and practice guidance. The Diversity Taskforce also supported and advised on the development of the BPS Strategic Framework during 2021, ensuring equality, diversity and inclusion threaded through the Society’s agreed strategic goals.

In March 2021 BPS was proud to join the Science Council’s EDI steering group while also completing the Science Council Framework on Diversity and Inclusion for the first time in April 2021. This work informed the creation of EDI monitoring and reporting mechanisms in the new membership database system launched in October 2021.

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The British Psychological Society

2021 Trustees ANNUAL REPORT (Continued)

The year saw the Society publish the Nuffield Trust The Right Track report. Key findings of the report included those BME groups were less likely to be accepted onto a clinical psychology training courses than white groups and far less likely to progress to senior NHS roles. Results of the report were shared in a symposium on social mobility at the BPS 2021 Conference.

The History of Psychology Centre identified Hans Eysenck’s publications in BPS journals, Member Network periodicals and The Bulletin and have begun scoping work on potential projects to address the history and legacy of eugenics.

Continuing our change journey

Following approval from the Board of Trustees in June 2019, our three-year Change Programme has progressed well throughout 2021.

In October we replaced our membership database of 20 years with a new, interactive customer relationship management system. This provides us with a single point of truth for our member information and how members interact with the society. As the society has not implemented systems for a number of years, inevitably we have encountered some teething problems with the new system but in the first six months since launch we have processed 35k online payments for 20k members and in the last few months of 2021 we completed 2,300 membership applications submitted via the new system.

Our review of member grades has resulted in a more inclusive approach which recognises the needs of existing and new members.

The review of our networks yielded a proposal for refreshed structures, responsibilities and ways of working. At the close of 2021 eight of our eleven workstreams in the Change Programme were largely complete.

Financial review

The Consolidated Statement of Financial Activities for the year is set out on page 16 of the full financial statements .

Income

Income in 2021 increased to £11.6m from £10.8m in 2020. This is in contrast to a reduction experienced in 2020 which was strongly impacted by Covid-19’s first restrictions and its effect on key services such as conferencing and training. In 2021 BPS was still strongly influenced by Covid-19 but had sufficiently adapted to alternative ways of working and delivering services.

Subscription income rose by 4.8% to £6.5m due to an increase in members and the first increase in fees to several years. Covid-19 again had an impact on subscriptions as again an increased number of members requested the hardship rate. Income from the journals partnership reduced by 8% in 2021 following a reduction in 2020. Other income recovered compared to the 2020 year which included advertising and rental income.

Expenditure

With the strong influence Covid-19 had on income, controlling costs became an ever-important strategy and 2021’s net income deficit was reduced through a combination of reduced activity continued from 2020 and a concerted control of costs.

Principal sources of funding

Fifty five per cent of the Society’s income derives from membership subscriptions (2020: 57%), with a further 24 per cent from journal publications, qualifications, accreditation and conferences and training (2020: 26%). Income from trading operations rose to 5% of total income from 3% in 2020.

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The British Psychological Society

2021 Trustees Annual Report (Continued)

Investment policy and returns

The trustees have an agreed approach to ethical investment, which they review regularly. The investment policy was substantially revised in 2018, in particular to take account of ethical and environmental considerations, and is now publicly available on the Society’s website.

The Society’s investments are invested in accumulation units of the COIF Charities Investment Fund managed by CCLA, retaining a small deposit fund for liquidity.

The portfolio performed well after and even recovered from falls in August and September 2021, At the year-end £2.4m was added to the value of the portfolio. BPS was able to withdraw £3.5m to pay for its change programme. The performance had been driven by asset allocation and stock selection with a focus on quality companies with robust balance sheets and strong free cashflow and companies with these characteristics have been resilient during the global pandemic.

Trading company commences trading

BPS Assessments and Awards Limited was incorporated on 13 June 2020. The company commenced operations in 2021, providing end-point assessments for psychology apprenticeship standards in England. The first year had a turnover of £41k with a small profit of £1k to be gift aided to the Society.

Society reserves

The trustees have reviewed the Society’s reserves in line with the Charity Commission’s guidance. They have included unrestricted funds, restricted funds and the designated funds.

Unrestricted funds

The trustees consider they need to take a prudent view of the future, in order to be able to maintain the viability of the organisation. They have decided that a reserves level equivalent to nine months’ income is an appropriate guideline for an organisation of this size and complexity. At 31 December 2021, the free reserves were £15.6m after designating funds for the Member Network Review. This equates to 16 months’ income based on current income levels.

Restricted funds

The Society has a number of restricted funds at its disposal and the Trustees review these on a regular basis. The total restricted funds as at 31 December 2021 were £58,231 (2020: £58,231). There has been a period of inactivity, and therefore future spending plans are being updated.

Designated funds

A fund of £6m was set aside during 2019 to meet the costs of the Change Programme. The programme includes replacement of the Society’s key IT systems and spend on initiatives to add member value and equip the organisation for future challenges. A designated fund of £320,000 was set up in 2020 for the Network Member Review, which commenced in 2020. The total of the designated funds as at 31 December 2021 is £958,000, (2020: £2,776,000).

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The British Psychological Society

2021 Trustees ANNUAL REPORT (Continued)

We have continued to build stronger relationships with our membership to ensure we are representing their priorities, championing their work and working for the benefit of psychology as a whole. The turbulence of 2021, both that in the external world and that faced by the BPS internally has no doubt been challenging, yet the BPS has continued to strive to deliver on its strategy and support members in the excellent work that they do.

It is clear the impact of the pandemic on society and its mental health will be long lasting, and the challenges facing us all across society are at a level unseen before by many. The BPS continued to advocate for psychology and psychologists at every level, and to move to position itself as a respected membership organisation prepared to speak out on key societal issues and standing firm behind its values of determining and ensuring the highest standards in all we do, promoting and advancing the discipline and embracing equality, diversity and inclusion. We progressed with our ambitious change programme detailed in the 2020 report, with a new membership system, communications system, and finance system all to streamline our processes and deliver a more effective service for our members.

Risk assessment

The trustees take their responsibilities with regards to risk assessment very seriously. There is a regular review of the principal risks and uncertainties facing the charity and its subsidiary undertakings and the plans and strategies for mitigating the risks identified. Risks are categorised into governance, operational, financial, environmental (external factors), Compliance (law and regulation) and diversity & inclusion risks.

As a member organisation, the Society faces a major risk if it fails to meet member needs and to provide value for money, impacting on our ability to retain and attract new members, future income generation and ultimately the loss of professional impact of the Society. Strategies for mitigation include ensuring that member feedback is gathered and assessed, a regular review of member benefits and ensuring the activities of the Society continue to be seen to have an impact and relevance to the discipline of psychology, psychologists, and the wider public.

Last year we reported that we had uncovered the fraudulent use of two society credit cards by a former BPS employee. Following a police investigation, the former member of staff was convicted of two charges of defrauding the society and received a significant custodial sentence. On uncovering the fraud, the society immediately strengthened its financial processes and procedures to prevent repetition. As previously reported, the society was reimbursed for the majority of the losses through our insurance provision.

To mitigate its governance risk, the Society has reviewed and updated its charter and statutes, independently reviewed its governance and implemented the appropriate recommendations. It has also redesigned its lower level processes incorporating speed and efficiency. There is in place Trustee indemnity insurance.

The Society in 2021 was still strongly affected by Covid-19 and the operational risk of workforce planning/ ways of working included Covid-19. Therefore the society mitigated this by introducing flexibility and choice into working arrangement and policies. It reviewed the current estate and staff office attendance. It created regular communication and touch points with staff. To mitigate a possible loss of revenue the society explored alternative revenue streams and introduced continual horizon scanning and scenario planning to assist in planning.

The external factor of war in Ukraine in 2022, though not directly affecting ‘income from charitable activities’ has affected fuel costs which contributed to the increase in inflation and increased the bank base rate. There is pressure therefore to control rising costs, to regularly review investments (with CCLA) during a period of changing investment markets and review the secured loan as the bank base rate increases.

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The British Psychological Society

2021 Trustees ANNUAL REPORT (Continued)

To mitigate the financial risks of budgetary control and reporting the Society implemented regular, rigorous budgeting, monitoring and reporting. It put into place procedures to review and action budget/cash flow variances and monitor and control costs together with regular review of reserves and investments. To reduce the deficit the Society identified savings and new revenue streams.

Trustees’ responsibilities in relation to financial statements

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

The law applicable to charities in England, Wales and Scotland requires the trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the Society and the Group and of the incoming resources and the application of resources of the Society and the Group for that period. In preparing the financial statements, the trustees are required to:

• select suitable accounting policies and apply them consistently

• observe the methods and principles in the applicable Charities SORP

• make judgements and estimates that are reasonable and prudent

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Society and the Group will continue in business

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Society and the Group and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Royal Charter. They are also responsible for safeguarding the assets of the Society and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Society’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements. This may differ from legislation in other jurisdictions.

Statement on disclosure of information to auditors

The trustees who were in office on the date of approval of these financial statements have confirmed, as far as they are aware, that there is no relevant audit information of which the auditors are unaware. All the Trustees have confirmed that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

Date: 6[th] July 2022

Ms K Carpenter President

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The British Psychological Society

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE BRITISH PSYCHOLOGICAL SOCIETY

Opinion

We have audited the financial statements of The British Psychological Society (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31st December 2021 which comprise the Group and Society Statement of Financial Activities, the Group and Society Balance Sheets, the Group Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31[st] December 2021 and of the group’s income and expenditure for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the requirements of the Charities and Trustee Investment (Scotland) Act 2005, regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 group's and the parent charity’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 Annual Report other than the financial statements and our auditor’s report thereon. 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.

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The British Psychological Society

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE BRITISH PSYCHOLOGICAL SOCIETY (continued)

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Charities and Trustee Investment (Scotland) Act 2005, regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011.

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

• the information given in the Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Strategic Report and the Trustees’ Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and the parent charity and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Trustees’ Report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept by the parent charity, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charity’s financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of trustees’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 12, the trustees 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 group’s and the parent charity’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 group or the parent charity or to cease operations, or have no realistic alternative but to do so.

14

The British Psychological Society

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE BRITISH PSYCHOLOGICAL SOCIETY (continued)

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 the financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Based on our understanding of the group and the parent charity, and its industry, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation, employment regulation, fraud, non-compliance with implementation of government support schemes relating to COVID-19, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, such as the Charities Act 2011.

We evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, inappropriately shifting the timing and basis of revenue recognition, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to fund accounting, and significant one-off or unusual transactions.

Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:

• Discussing with the trustees and management their policies and procedures regarding compliance with laws and regulations;

• Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and

• Considering the risk of acts by the group and the parent charity which were contrary to applicable laws and regulations, including fraud.

Our audit procedures in relation to fraud included but were not limited to:

• Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud;

• Gaining an understanding of the internal controls established to mitigate risks related to fraud;

• Discussing amongst the engagement team the risks of fraud; and

• Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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The British Psychological Society

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE BRITISH PSYCHOLOGICAL SOCIETY (continued)

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

Use of the audit report

This report is made solely to the charity’s members as a body in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity’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 charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed.

David Hoose

(Senior Statutory Auditor) for and on behalf of Mazars LLP

Chartered Accountants and Statutory Auditor

First Floor

Two Chamberlain Square

Birmingham B3 3AX

Date

Mazars LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

16

The British Psychological Society

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 December 2021

Note Income: Income from charitable activities: Subscriptions Registers and directories Conferences and events Journals and book publishing 4 Other income 5 Income from Trading operations 7 Investment income 6 Total Income Expenditure: Expenditure on raising funds: Trading costs 7 Investment management fees Expenditure on charitable activities: Advancement of psychology Application of psychology Conferences and events Co-operation with organisations Diffusion of knowledge Examinations and training Membership Science and policy Other expenditure: Change programme Total expenditure 8 Net gains on investments 14 Net (loss) Transfer between funds 17 Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward	2021 Unrestricted Funds £'000 6,507 637 263 1,854 1,795 557 15 11,628 352 - 2,312 624 489 329 3,227 1,415 2,932 1,163 1,818 14,661 2,421 (612) 1,818 1,206 18,448 19,654	2021 Designated Funds £'000 - - - - - - - - - - - - - - - - - - - - - - (1,818) (1,818) 2,776 958	2021 Restricted Funds £'000 - - - - - - - - - - - - - - - - - - - - - - - - 58 58	2021 Total £'000 6,507 637 263 1,854 1,795 557 15 11,628 352 - 2,312 624 489 329 3,227 1,415 2,932 1,163 1,818 14,661 2,421 (612) - (612) 21,282 20,670	2020 Total £'000 6,182 521 300 2,016 1,456 322 42
					10,839
					308 16 2,161 827 405 289 2,727 1,448 2,577 1,022 2,229
					14,009
					1,388
					(1,782) -
					(1,782)
					23,604
					21,282

The Statement of Financial Activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. All income and expenditure for the year ended 31 December 2021 was unrestricted.

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The British Psychological Society

THE SOCIETY STATEMENT OF FINANCIAL ACTIVITIES

for the year ended 31 December 2021

Note Income: Income from charitable activities: Subscriptions Registers and directories Conferences and events Journals and book publishing 4 Other income 5 Income from Trading operations 7 Investment income 6 Total Income Expenditure: Expenditure on raising funds: Investment management fees Expenditure on charitable activities: Advancement of psychology Application of psychology Conferences and events Co-operation with organisations Diffusion of knowledge Examinations and training Membership Science and policy Other Expenditure: Change programme Total expenditure 8 Net gains on investments 14 Net (loss) Transfer between funds 17 Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward	2021 Unrestricted Funds £'000 6,507 637 263 1,854 1,795 204 15 11,275 - 2,312 624 489 329 3,227 1,415 2,932 1,163 1,818 14,309 2,421 (613) 1,818 1,205 18,448 19,653	2021 Designated Funds £'000 - - - - - - - - - - - - - - - - - - - - - (1,818) (1,818) 2,776 958	2021 Restricted Funds £'000 - - - - - - - - - - - - - - - - - - - - - - - 58 58	2021 Total £'000 6,507 637 263 1,854 1,795 204 15 11,275 - 2,312 624 489 329 3,227 1,415 2,932 1,163 1,818 14,309 2,421 (613) - (613) 21,282 20,669	2020 Total £'000 6,182 521 300 2,016 1,456 14 42
					10,531
					16 2,161 827 405 289 2,727 1,448 2,577 1,022 2,229
					13,701
					1,388
					(1,782) -
					(1,782)
					23,064
					21,282

The Statement of Financial Activities includes all gains and losses recognised in the year.

All income and expenditure derived from continuing activities. All income and expenditure for the year ended 31 December 2021 was unrestricted.

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The British Psychological Society

CONSOLIDATED BALANCE SHEET at 31 December 2021

Note Fixed assets Tangible assets 13 Investments 14 Total fixed assets Current assets Debtors 15 Cash at bank and in hand Liabilities Creditors: amounts falling due within one year 16 Net current liabilities Creditors: amounts falling due in more than one year 16 Net assets The funds of the group: Restricted income funds 17 Unrestricted funds: 17 General funds Designated funds Revaluation reserve Total unrestricted funds 17 Total funds	2021 £'000 7,555 15,026 22,581 1,899 1,661 3,560 (3,784) (224) (1,687) 20,670 58 15,610 958 4,044 20,612 20,670	2020 £'000 7,852 16,105
		23,957
		1,476 1,683 3,159 (3,744) (585) (2,090)
		21,282 58 14,389 2,776 4,059 21,224 21,282

The financial statements on pages 17 to 45 were approved by the Board of Trustees and authorised for issue on 6th July 2022 and signed on its behalf by:

Ms K Carpenter President

19

The British Psychological Society

SOCIETY BALANCE SHEET

at 31 December 2021

Note Fixed assets Tangible assets 13 Investments 14 Total fixed assets Current assets Debtors 15 Cash at bank and in hand Liabilities Creditors: amounts falling due within one year 16 Net current liabilities Creditors: amounts falling due in more than one year Net assets The funds of the Society: Restricted income funds 17 Unrestricted funds: 17 General funds Designated funds Revaluation reserve Total unrestricted funds 17 Total funds	2021 £'000 7,555 15,026 22,581 2,428 1,512 3,940 (4,165) (225) (1,687) 20,669 58 15,609 958 4,044 20,611 20,669	2020 £'000 7,852 16,105
		23,957
		1,716 1,663
		3,379 (3,964)
		(585)
		(2,090)
		21,282
		58 14,389 2,776 4,059
		21,224
		21,282

The financial statements on pages 17 to 45 were approved by the Board of Trustees and authorised for issue on 6th July 2022 and signed on its behalf by:

Ms K Carpenter President

20

The British Psychological Society

STATEMENTS OF CASH FLOWS

for the year ended 31 December 2021

Note Net Cash provided by operating activities 21 Cash flow from investing activities: Dividend and interest from investments Purchase of tangible fixed assets Disposal of tangible fixed assets Purchase of investments Proceeds from sales of investments Net Cash Provided by investing activities Net cash from/(used) in Financial activities Repayments of borrowing Cash inflows from new borrowing Net cash provided by (used in) financing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year	Group Group Society Society 2021 2020 2021 2020 £'000 £'000 £'000 £'000 (3,447) (1,718) (3,576) (1,689)
	15 42 15 42 (23) (55) (23) (55) 6 - 6 - - (15,154) - (15,154) 3,500 15,636 3,500 15,636
	3,498 469 3,498 469
	(73) - (73) - - 2,200 - 2,200
	(73) 2,200 (73) 2,200
	(22) 951 (151) 980 1,683 732 1663 683
	1,661 1,683 1,512 1,663

21

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

1. CRITICAL ACCOUNTING ESTIMATES AND SIGNIFICANT AREAS OF MANAGEMENT JUDGEMENT

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Classification between Property, Plant and Equipment and Investment Properties

Management determine whether a property qualifies as an investment property and has developed criteria in making that judgement. An investment property is a property held to earn rentals or for capital appreciation or both. Therefore, management consider whether a property generates cash flows largely independently of other assets held.

In 2021, a portion of one of the group’s properties was held to generate rental income and another portion used for the supply of services and administrative purposes. These portions cannot be sold separately and management consider the portion of the property which generated rental income to be insignificant. Therefore, this property has been accounted for as Property, Plant and Equipment. The net book value of this property as at 31 December 2021 was £5,621,963 (2020: £5,657,061).

Provisions for Bad Debts

A provision is made for bad debts. The bad debt provision requires management’s best estimate of the costs that will be incurred against debtors based on contractual requirements and management’s judgement regarding the associated future cash inflows. The value of the bad debt provision recognised as at 31 December 2021 was £86,659 (2020: £103,143).

2. ACCOUNTING POLICIES

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

(a) Basis of preparation

The financial statements have been prepared in accordance with 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) – (Charities SORP (FRS 102))and the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended) and UK Generally Accepted Accounting Practice as it applies from 1 January 2015.

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

22

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

2. ACCOUNTING POLICIES (continued)

(b) Preparation of accounts on a going concern basis

The accounts have been prepared on a going concern basis. Having carried out a detailed review of the Group’s resources and the challenges presented by the current economic climate, the trustees are satisfied that the Group has sufficient cash flows to meet its liabilities as they fall due for at least one year from the date of approval of the accounts.

There are no significant financial uncertainties which the trustees consider are a significant risk to the ability of the Group to trade as a going concern in the foreseeable future.

(c) Group financial statements

The group financial statements consolidate the results of the Society and its wholly owned subsidiary undertakings at 31 December using acquisition accounting on a line by line basis. Uniform accounting policies are adopted across the group and inter-group transactions and balances are eliminated.

(d) Income recognition

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

Members’ subscriptions represent subscriptions in respect of the accounting year and arrears received during the year. Subscriptions received in advance relating to the subsequent year are excluded from income and carried forward as deferred income.

Exams, accreditation and conferences income represents income received during the year in respect of the accounting year. Any income received in advance is excluded and carried forward as deferred income. Any income due at the year-end is treated as a debtor.

Journal income represents income received during the year in respect of the accounting year. Any income due at the year-end is treated as a debtor

Rental income on assets leased under operating leases is recognised on a straight-line basis over the lease term within the statement of financial activities.

Income arising from amounts invested in accumulation units in the COIF Charities Investment Fund cannot be determined separately and is treated as unrealised gains in the Statement of Financial Activities.

Other income is recognised on a receivable basis.

(e) Investments and investment income

All listed investments are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date. Both realised and unrealised gains and losses are shown in the Consolidated and Society’s Statement of Financial Activities. The Statement of Financial Activities includes the net gains and losses arising from revaluations and disposals throughout the year. Income arising from amounts invested in accumulation units in the COIF Charities Investment Fund cannot be determined separately and is treated as unrealised gains in the Statement of Financial Activities. The fair value of the investments quoted on a recognised stock exchange is the quoted bid price.

23

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

2. ACCOUNTING POLICIES (continued)

(f) Fund accounting

The Society has various types of funds for which it is responsible and which require separate disclosure. These are as follows:

General funds

This contains funds that are expendable at the discretion of the Trustees of the Society in the furtherance of the objectives of the Society and which have not been designated for other purposes.

Designated funds

The Society may, following approval of the Trustees of the Society, set aside funds for specific purposes that would otherwise form part of the general funds.

Restricted funds

These comprise funds and donations to the Society that are restricted to the furtherance of one or more specific objectives of the Society.

Revaluation reserve

This fund represents the surplus from the revaluation to fair value at 1 January 2014, permitted by FRS102 transition provisions, with respect to freehold land and building to determine the new deemed cost at that date.

(g) Expenditure

All expenditure is accounted for on an accruals basis and has been classified under headings that the Trustees consider are consistent with the objectives of the Society. Where costs cannot be directly attributed to a particular objective they have been allocated to activities on a basis consistent with the use of resources.

(h) Value added tax (VAT)

The Society is treated as partially exempt for VAT purposes. Consequently not all input tax is able to be reclaimed. Any residual amount becomes an expense of the Society and this amount is included in support costs.

(i) Allocation of support costs

Support costs are accounted for on an accruals basis and comprise those costs which are not regarded as direct charitable expenditure or cannot readily be allocated to any one heading. These costs include, inter alia, the costs of managing the Society’s assets, organisational management, together with administration and compliance with constitutional and statutory requirements. Also included are those costs for Leicester and London premises, equipment repairs, system development and depreciation. Legal and professional fees and audit costs are also included as well as irrecoverable VAT.

(j) Tangible fixed assets and depreciation

Tangible fixed assets are initially recorded at cost and subsequently measured at cost, net of depreciation and any impairment losses. Depreciation is provided on the straight line basis at rates estimated to write off the assets over the rest of their economic lives. No depreciation is provided on freehold land.

24

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

2. ACCOUNTING POLICIES (continued )

The rates used for other assets are as follows:

Freehold buildings purchased - 2% per annum Subsequent improvements to freehold buildings - 10% per annum Computer equipment - 33% per annum Printing equipment - 20% per annum Office equipment, principally furniture - 10% per annum

Residual value is calculated on prices prevailing at the reporting date, after estimated costs of disposal, for the assets as if it were at the age and in the condition expected at the end of its useful life.

(k) Society Library

The Society has a comprehensive collection of books and periodicals housed at the University of London’s Senate House, Malet Street, London. It would be of a significant cost to the Group and Society to value this collection and therefore they are carried at a notional value of £2 in the balance sheet.

(l) Debtors

• Trade and other debtors are recognised at the settlement amount due after any trade discount offered.

(m) Cash at bank and in hand

• Cash at bank and cash in hand includes cash and monies on short term deposits at the bank, other short-term liquid investments with original maturities of three months or less.

(n) Creditors and provisions

• Creditors and provisions are recognised where the Society has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

(o) Financial instruments

The Society only has financial assets and financial liabilities of a kind that qualify as basic financial instruments and are not considered to be of financial nature. Such financial instruments, except for investments classified at fair value through profit or loss, are initially recognised at transaction value and subsequently measured at their settlement value.

(p) Pension scheme

The Society operates a defined contribution pension scheme the assets of which are invested and managed independently of the finances of the Society. The costs of providing pensions for employees are charged in the Statement of Financial Activities and represents contributions payable in the year.

(q) Taxation

The Society is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

25

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

2. ACCOUNTING POLICIES (continued )

(r) Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged on a straight line basis to the Statement of Financial Activities over the period of the lease.

3. LEGAL STATUS OF THE SOCIETY

The British Psychological Society (Society) is incorporated by Royal Charter and is registered at the Charity Commission for England and Wales. The Society is also registered separately in Scotland with the OSCR. The Society is governed by a Royal Charter originally granted in February 1965 and last revised in November 2010.

The address of the Society’s principal place of business is St Andrew’s House, 48 Princess Road East, Leicester, LE1 7DR.

The Group consists of The British Psychological Society and its two subsidiaries, BPS Communications Limited and BPS Assessments and Awards Limited, whose registered office is St Andrew’s House, 48 Princess Road East, Leicester, LE1 7DR.

The Group’s principal objective is to promote the advancement and diffusion of the knowledge of psychology pure and applied and especially to promote the efficiency and usefulness of members of the Society by setting up a high standard of professional education and knowledge.

26

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

4. JOURNALS AND BOOK PUBLISHING

4. JOURNALS AND BOOK PUBLISHING
Income from journal subscriptions and sales Income from book and publications sales	2021 £'000 1,837 17 1,854	2020 £'000 1,992 24
		2,016

5. OTHER INCOME Advertising revenue Examination income Quality assurance Rental income Professional Development Centre Sundry income 6. INVESTMENT INCOME Income from listed investments Bank and money market interest	2021 £'000 162 769 687 33 126 18 1,795 2021 £'000 - 15 15	2020 £'000 139 415 629 90 135 48
		1,456
		2020 £'000 24 18
		42

27

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

7. NET INCOME FROM TRADING ACTIVITIES OF SUBSIDIARIES

The Society is the 100% owner, through nominees, of BPS Communications Limited (company number 0132669), which runs the commercial advertising services for The British Psychological Society. The company distributes any profits to the Society each year under the Gift Aid scheme. BPS Assessments and Awards Limited, incorporated in June 2020, will commenced operations in August 2021. The principal activity of the Company is operating an end-point assessment organisation

Trading results of BPS Communications Limited for the twelve months to 31 December 2021 are shown below.

Turnover Cost of sales Gross profit Distribution costs Administrative costs Gift Aid Profit/(Loss) before taxation Profit/(Loss)for year The assets and liabilities of the subsidiary are: Current assets: Debtors Cash at bank Creditors: amount falling within one year	2021 £'000 515 (93) 422 (196) (49) (175) 2 2 2021 £'000 544 132 676 (676) -	2020 £'000 322 (116)
		206 (153) (55) -
		(2)
		(2)
		2020 £'000 396 20
		416 (418)
		(2)

28

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

During the year the Society charged BPS Communications Limited service charges amounting to £14,415 (2020: £14,415) in respect of services provided by the Society. Trading costs, excluding these costs, amount to £324,000 (2020: £310,000). At the year-end, the Society was owed £440,000 (2020: £355,000) by BPS Communications Limited and owed BPS Communications Limited £411,551 (2020: £281,000).

All profits generated by BPS Communications Limited for 2021 are to be distributed to the British Psychological in Society under Gift Aid.

BPS Assessments and Awards Limited, incorporated in June 2020, commenced operations in August 2021. The principal activity of the Company is operating an end-point assessment organisation Trading results of BPA Assessments & Awards for the 12 months to 31 December 2021 are shown below

Turnover Cost of sales Gross profit Administrative costs Profit/(Loss) before taxation Profit/(Loss)for year	2021 £'000 41 (7) 34 (33) 1 1	2020 £'000 - -
		- -
		-
		-

The assets and liabilities of the subsidiary are:

Current assets: Debtors Cash at bank Creditors: amount falling within one year	2021 £'000 35 17 52 (51) 1	2020 £'000 - -
		- -
		-

During the year the Society charged BPS Assessment and Awards Limited service charges amounting to £14,000 (2020: nil) in respect of services provided by the Society. Trading costs, excluding

these costs, amount to £26,000(2020: nil). At the year end, the Society was owed £44,000 (2020:£nil). by BPS Assessment & Awards Limited and owed BPS Assessment & Awards Limited £17,000 (2020: £nil)

All profits generated by BPS Assessment & Awards Limited for 2021 will be paid by the company to the Society.

29

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

8. TOTAL EXPENDITURE

Group Expenditure on charitable activities: Advancement of psychology Journal costs Direct salaries Other direct costs Support costs Application of psychology Section expenditure Direct salaries Other direct costs Support costs Conferences and events Society conferences Direct salaries Other direct costs Support costs Co-operation with other organisations Direct salaries Other direct costs Support costs Diffusion of knowledge Publishing costs Direct salaries Other direct costs Support costs Examinations and training Examinations costs Direct salaries Other direct costs Support costs	2021 £'000 790 1,023 198 301 2,312 501 76 27 20 624 239 168 33 49 489 218 47 64 329 755 1,668 311 493 3,227 167 839 162 247 1,415	2020 £'000 806 919 155 281
		2,161
		704 76 27 20
		827
		183 151 25 46
		405
		197 33 59
		289
		539 1,491 237 460
		2,727
		338 753 127 230
		1,448

30

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

8. TOTAL EXPENDITURE (continued)

Group Expenditure on charitable activities: Membership Direct salaries Other direct costs Support costs Science and policy Direct salaries Other direct costs Support costs Trading costs Investment management fees Pension provision Change programme costs Total expenditure	2021 £'000 1,946 414 572 2,932 772 164 227 1,163 352 - - 1,818 2,170 14,661	2020 £'000 1,749 294 534
		2,577
		693 117 212
		1,022
		308 16 - 2,229
		2,553
		14,009

31

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

31 December 2021	31 December 2021	31 December 2021
9. SUPPORT COST ALLOCATION
	Property		IT		HR &		Directorate
	costs		costs		Finance		costs		2021		2020
	£'000		£'000		£'000		£'000		£'000		£'000
Charitable expenditure:
Advancement of psychology	35		53		124		89		301		281
Application of psychology	2		4		8		6		20		20
Conferences and events	6		9		20		14		49		46
Co-operation	8 59		11		26		19		64		58
Diffusion of knowledge			86		203		145		493		460
Examinations and training	29		43		102		73		247		231
Membership	67		101		237		167		572		534
Science and policy	27		40		93		67		227		212
Total expenditure	233		347		813		580		1,973		1,842

The Group has identified the costs of the support function and costs which relate to the governance function which amount to £676,553 (2020: £549,334). The support costs are apportioned between the eight key charitable activities undertaken (see note 8) in the year.

Cost allocation includes an element of judgement and the Society has had to consider the cost benefit of detailed calculations and record keeping. All categories have been allocated on a basis consistent with the use of resources, which are analysed above.

32

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

10. NET INCOME FOR THE YEAR

Group and Society

Net income is stated after charging:

10. NET INCOME FOR THE YEAR Group and Society Net income is stated after charging:
	2021	2020
	£'000	£'000
Depreciation	323	304
Auditors' remuneration - audit services	35	28
- other services	3	2

11. STAFF NUMBERS AND EMOLUMENTS

The average number of persons employed during the year was as follows:

Leicester office London office Regional centres	2021 Full time 113 11 0 124	2021 Part time 20 1 2 23	2020 Full time 107 8 1 116	2020 Part time 20 1 0
				21

Average FTE was 140 (2020: 131). Remuneration of employees was as follows: Gross wages and salaries Employer's National Insurance Defined contribution pension costs	2021 Total £'000 5,777 612 531 6,920	2020 Total £'000 5,281 550 469
		6,300

33

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

11. STAFF NUMBERS AND EMOLUMENTS (continued)

During the year statutory redundancy and termination payments to 2 employees amounted to £16,656(2020: £86,368).

Remuneration of employees was as follows: Payment in Lieu of notice Settlement agreement Total	2021 2020 £'000 £'000 12 32 5 54
	17 86

The Group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Group in an independently administered fund. The contributions payable by the Group and charged to the Statement of Financial Activities were £469,000 (2020: £371,000), of which £61,707 (2020: £54,240) were due at the year-end.

The number of employees earning over £60,000 (excluding pension contributions) was as follows:

	2021	2020
	Number	Number
	8	4
£60,000 - £69,999	-	-
£70,000 - £79,999	1	2
£80,000 - £89,999	1	2
£90,000 - £99,999	-	-
£100,000 -£109,999	1	1
£110,000 - £119,999	1	1
£120,000 - £129,999	1
£130,000 - £139,999	1	0

During the year the group paid pension contributions in respect of the above higher paid individuals amounting to £108,155 (2020: £85,746).

34

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

12 . TRUSTEES’ EMOLUMENTS AND REIMBURSED EXPENSES

Trustees may from time to time be paid for carrying out services as an expert. In 2021 Trustee Dr Nicky Hayes carried out work as Senior Editor, Assessment & Development matters for the Psychological Testing Centre receiving £4,425 in the year. Practical Psychology Consultancy Ltd received £2,150 for the services of Dr Roxane Gervais acting as Chair and Subject Matter Expert for the development of a CPD inclusive leadership development training course and test reviews. In 2021 travelling expenses were repaid to 10 Trustees (2020: 7) totalling £2,103 (2020: £2,219).

The key management personnel of the Society comprise the Trustees, the Chief Executive and the Senior Management Team. The total employee benefits of the key management personnel of the Society were £724,067 (2020: £869,572.

The Society has taken out Trustees’ indemnity insurance providing cover of five million pounds. The cost of this insurance for the year was £9,500 (2020: £4,004). No claims have been made under this policy.

The Royal Charter states that “the President and Honorary General Secretary may receive payment out of the property of the Society to compensate them for the sum or sums of money lost from employment or deducted from their earnings by their employers in respect of time spent on the conduct of the business of the Society”.

President Honorary General Secretar	~~y~~	2021 ~~£~~ £nil ~~£nil~~	2020
			~~£~~ £nil ~~£il~~
			~~n~~

13. TANGIBLE FIXED ASSETS Group and Society

Cost At 1 January 2021 Additions At 31 December 2021 Depreciation At 1 January 2021 Charge for the year Disposals At 31 December 2021 Net book value At 31 December 2021 At 31 December 2020	Freehold land & buildings £'000 9,260 - 9,260 1,700 227 - 1,927 7,333 7,560	Computer & Print £'000 362 17 379 264 58 - 322 57 98	Office equipment £'000 383 9 392 189 38 227 165 194	Total £'000 10,005 26
				10,031
				2,153 323 -
				2,476
				7,555
				7,852

35

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

It is not considered practicable to segregate the tangible fixed assets between those used for management, administration and support purposes and those which are used for directly charitable purposes. All of the assets form an integral part of the activities that enable the Society to further its charitable objectives.

The Group and Society revalued the freehold land and buildings at 1 January 2014 at £8,265,000. The valuation was carried out by Underwoods LLP using the Market Approach method to determine the Fair Value at those dates. The Group and Society took advantage of the provisions contained in FRS102 for firsttime adopters to use the Fair Value Valuations at 1 January 2014 to be the deemed cost of the freehold land and buildings at that date, being the date of transition.

Included in the net book value of the freehold land and building of £7,333,000 (2020: £7,560,000) is £3,855,000 (2020: £3,855,000) relating to non-depreciated freehold land.

Cash awaiting investment 14. FIXED ASSET INVESTMENTS Group and Society Market value at 1 January 2021 Additions Disposal proceeds Net investment (loss)/gain unrealised Net investment gain/(loss) realised Market value at 31 December 2021 Total at 31 December 2021		- 2021 £'000 16,105 - (3,500) 2,166 255 15,026 15,026		- 2020 £'000 15,200 15,154 (15,636) 1,451 (64) 16,105 16,105

At 31 December 2021, the investment portfolio consisted of 3,029,585 units invested in accumulation units of the COIF Charities Investment Fund managed by CCLA with a bid market valuation of £15,026,000. Income arising from amounts invested in the COIF Charities Investment Fund cannot be determined separately and is treated as unrealised gains in the Statement of Financial Activities.

Asset allocation of the COIF Investment Fund as at 31 December 2021:

• Overseas Equities	66.81%
• UK Equities	9.54%
• Infrastructure & Operating Assets	6.01%
• Cash & Near Cash	8.49%
• Property	4.63%
• Contractual, Private Equity & Other	4.52%

Investment assets in 2021 comprised of £11,472,000 (76.35%) in UK and overseas equities, £1,276,000 (8.49%) Cash or near cash and £2,278,000 (15.16%) in other investments

36

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

15. DEBTORS

15. DEBTORS
Trade debtors Prepayments and accrued income Amounts due from subsidiary companies VAT recoverable	2021 Group £'000 416 1404 - 79 1,899	2020 Group £'000 303 1,041 - 131 1,475	2021 Society £'000 265 1,404 680 79 2,428	2020 Society £'000 188 1,041 355 131
				1,715

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors Subscriptions received in advance Other deferred income Other creditors Accruals Amounts due to subsidiary companies Other taxation and social security Bank Loan	2021 Group £'000 47 1,107 843 244 880 - 223 440 3,784	2020 Group £'000 415 1,114 913 395 642 - 155 110 3,744	2021 Society £'000 36 1107 843 244 880 429 186 440 4,165	2020 Society £'000 354 1,114 913 395 642 281 155 110
				3,964

37

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

16. Creditors (continued)

Group and Society Deferred Income Balance as at 1 January 2021 Amounts released from previous year Income deferred in the year Balance as at 31 December 2021	Group £'000 2,027 (2,027) 1,950 1,950	Society £'000 2,027 (2,027) 1,950
		1,950

Other deferred income comprises Exams fees £190,745 (2020: £481,229), Annual Conference £nil (2020: £331), Accreditation fees £422,978 (2020: £432,203), Journals £98,117 (2020;£nil)and Registers £131,409 (2020; £nil).

CREDITORS: AMOUNTS FALLING DUE IN MORE THAN ONE YEAR

CBILS Bank Loan	2021 Group £'000 1,687 1,687	2020 Group £'000 2,090 2,090	2021 Society £'000 1,687 1,687	2020 Society £'000 2,090
				2,090

A Coronavirus Business Interruption Loan (CBILS) of £2,200,000 was drawn down on 2[nd] October 2020, this had a 12 month Capital and Interest free period and is then due to be repaid over 60 instalments. The Loan was secured in 2022 at a rate of base rate plus 1.69% per annum.

38

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

17. ANALYSIS OF CHARITABLE FUNDS

Group

Analysis of movements in unrestricted funds

General Designated fund Revaluation reserve	Funds brought Funds carried forward at forward at 1 Jan 2021 Income Expenditure Gains Lossestransfers 31 Dec 2021 £’000 £’000 £’000 £’000 £’000 14,389 11,628 (14,661) 2,421 1,833 15,610 2,776 - - (1818) 958 4,059 - - - (15) 4,044
	21,224 11,628 (14,661) 2,421 - 20,612

Society

Analysis of movements in unrestricted funds

General Designated fund Revaluation reserve	Funds brought Funds carried forward at forward at 1 Jan 2021 Income Expenditure Gains Lossestransfers 31 Dec 2021 £’000 £’000 £’000 £’000 £’000 14,389 11,275 (14,309) 2,421 1,833 15,609 2,776 - - - (1,818) 958 4,059 - - - (15) 4,044
	21,224 11,275 (14,309) 2,421 - 20,611

The Designated fund of £6m was set aside for the change programme. £958k has yet to be spent (in

2022). It was to replace the key IT systems and spend on initiatives to add member value.

39

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

17. ANALYSIS OF CHARITABLE FUNDS (continued)

Group

General Designated fund Revaluation reserve ciety General Designated fund Revaluation reserve	Funds brought forward at 1 Jan 2020 Restated £’000 14,231 4,701 4,074 23,006 Funds brought forward at 1 Jan 2020 Restated £’000 14,231 4,701 4,074 23,006	Income £’000 10,839 - - 10,839 Income £’000 10,531 - - 10,531	Expenditure £’000 (11,764) (2,245) - (14,009) Expenditure £’000 (11,456) (2,245) - (13,701)	Gains, losses and transfers £’000 1,083 320 (15) 1,388 Gains, losses and transfers £’000 1,083 320 (15) 1,388	Funds carried forward at 31 Dec 2020 £’000 14,389 2,776 4,059
					21,224
					Funds carried forward at 31 Dec 2020 £’000 14,389 2,776 4,059
					21,224

Society

General funds contain the funds that are expendable at the discretion of the Trustees of the Society in the furtherance of the objectives of the Society.

Expenditure of £1,818,000 on the Change Programme was charged to the designated fund during the year.

Revaluation reserve: This fund represents the surplus from the revaluation to fair value at 1 January 2014, permitted by FRS 102 transitions provisions, with respect to freehold land and building to determine the new deemed cost at that date. An annual transfer is made between the revaluation reserve and retained earnings for assets which are depreciated and does not include any amounts for non-depreciable land.

40

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

17. ANALYSIS OF CHARITABLE FUNDS (continued)

Group and Society

Analysis of movements in restricted funds

William Inman Visual archive BJEP fund William Inman Visual archive BJEP fund	Funds brought forward at 1 Jan 2021 £’000 7 10 41 58 Funds brought forward at 1 Jan 2020 £’000 7 10 41 58	Income £’000 - - - - Income £’000 - - - -	Expenditure £’000 - - - - Expenditure £’000 - - - -	Gains and losses £’000 - - - - Gains and losses £’000 - - - -	Funds carried forward at 31 Dec 2021 £’000 7 10 41
					58
					Funds carried forward at 31 Dec 2020 £’000 7 10 41
					58

The William Inman Fund was set up in 1968 following a bequest of £1,000 to the Society to provide an annual prize. The Visual Archive is a legacy that was left to the Society in 1988 to provide for a visual library. The British Journal of Educational Psychology fund is for the development of the journal along with the other Society titles.

41

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

18. FINANCIAL INSTRUMENTS

The carrying amount of the Group's and Society’s financial instruments at 31 December were:

Financial assets Debt instruments measured at amortised cost Instruments measured at fair value through profit or loss Total net assets Financial liabilities Debt instruments measured at amortised cost Instruments measured at fair value through profit and loss	2021 Group £'000 2,156 15,026 17,182 514 2,127 2,641	2020 Group £'000 884 16,105 16,989 1,391 2,200 3,591	2021 Society £'000 2,536 15,026 17,562 893 2,127 3,020	2020 Society £'000 1,239 16,105
				17,344
				1,672 2,220
				3,872

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS

Group

Fund balances at 31 December 2021 are represented by:

Tangible fixed assets Investments Current assets Current liabilities Long term liabilities Total net assets	Unrestricted £'000 7,555 15,026 3,502 (3,784) (1,687) 20,612	Restricted £'000 - - 58 - - 58	Total £'000 7,555 15,026 3,560 (3,784) (1,687)
			20,670

42

The British Psychological Society

NOTES TO THE CONSOLIDATED AND SOCIETY FINANCIAL STATEMENTS 31 December 2021

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS (continued)

Society

Fund balances at 31 December 2021 are represented by:

Tangible fixed assets Investments Current assets Current liabilities Long term liabilities Total net assets	Unrestricted £'000 7,555 15,026 3,882 (4,165) (1,687) 20,611	Restricted £'000 - - 58 - - 58	Total £'000 7,555 15,026 3,940 (4,165) (1,687)
			20,669

Group

Fund balances at 31 December 2020 were represented by:

Tangible fixed assets Investments Current assets Current liabilities Long term liabilities Total net assets	Unrestricted £'000 7,852 16,105 3,101 (3,744) (2,090) 21,224	Restricted £'000 - - 58 - - 58	Total £'000 7,852 16,105 3,159 (3,744) (2,090)
			21,282

Society

Fund balances at 31 December 2020 were represented by:

Tangible fixed assets Investments Current assets Current liabilities Long term liabilities Total net assets	Unrestricted £'000 7,852 16,105 3,321 (3,964) (2,090) 21,224	Restricted £'000 - - 58 - - 58	Total £'000 7,852 16,105 3,379 (3,964) (2,090)
			21,282

20. CAPITAL COMMITMENTS

There were no capital commitments contracted for but not provided in 2021 and 2020.

43

The British Psychological Society

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2021

21. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net (outgoing)/incoming resources Adjustments for: Depreciation charges Loss/(Gains) on investments Investment income in investing activities (Increase)/Decrease in debtors (Decrease)/Increase in creditors Net cash provided by operating activities 22. RECONCILIATION OF NET DEBT Cash and cash equivalents Cash Borrowings Debt due within one year Debt due after one year		Group 2021 £'000 (612) 323 (2,421) (15) (423) (299) (3,447) January 2021 £'000 1,683 1,683 110 2,090 2,200	Group 2020 £'000 (1,782) 304 (1,388) (42) 911 299 (1,718) Cash Flows £'000 (22) (22) 330 (403) (73)	Society 2021 £'000 (613) 323 (2,421) (15) (712) (138) (3,576) Non-Cash Changes £'000 - - - - -		Society 2020 £'000 (1,782) 304 (1,388) (42) 980 239 (1,689) December 2021 £'000 1,661
						1,661
						440 1,687
						2,127

44

The British Psychological Society

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 December 2021

23. COMMITMENTS UNDER OPERATING LEASES

The Group and Society as a lessee:

The total future minimum lease payments under non-cancellable operating leases for land and buildings as set out below.

	2021	2020
	£’000	£’000
Amounts due:
Within 1 year	4	4

The Group and Society as lessor:

At the year end, the Group had contracted with tenants, under non-cancellable operating leases, for the following total future minimum leases payments:

	2021	2020
	£’000	£’000
Amounts receivable:
Less one year	-	22
Between one and five years	-	-

In prior years the Group and Society had leased out part of the freehold land and buildings used by them to a third party. The lease has now ended not being renewed in 2021 .

45

The British Psychological Society

Legal and Administrative Information

Trustees	President	Ms K Carpenter (from 26.07.2021)
		Dr H McLaughlin (from 30.06.2020 to
		12.04.2021)
	President Elect	Dr N Hayes (from 26.07.2021)
		Dr N MacLennan (to 04.05.2021)
	Vice President	Mr D Murphy (to 10.02.2021)
		Vacant
	Honorary General Secretary	Ms C Buxton (from 26.07.2021)
		Dr C A Allan (to 26.07.2021)
	Honorary Treasurer	Dr R Gervais
	Trustee	Ms A Clarke
	Trustee	Mr C D Lynch (to 29.01.2021)
	Trustee	Professor C McGuinness
	Trustee	Professor D B O’Connor (to
		26.07.2021)
	Trustee	Dr P Branney (from 26.07.2021)
	Trustee	Dr A Jowett
	Trustee	Ms C Buxton (to 26.07.2021)
	Trustee	Professor A Tolmie (from 26.07.2021)
	Trustee	Dr E Cohen-Tovee
	Trustee	Professor N Stack (from 07.05.2021)

Chief Executive and Senior
Management Team
	Chief Executive	Mr S Bajwa
	Director of Change Programme	Ms D Ashby
	Director of Communications and	Ms R Dufton
	Engagement
	Director of IT	Mr M Laffan
	Director of Finance and Resources	Mr P Hodgett (from 16.09.2021)
	Director of Membership and
	Professional Development	Ms K Beamish
	Director of Knowledge and Insight	Ms D Malpass
	Head of Legal and Governance	Ms C Attfield

Principal place of business

St Andrew’s House 48 Princess Road East Leicester LE1 7DR

46

The British Psychological Society

Legal and Administrative Information (continued)

Statutory auditor	David Hoose
	Mazars LLP
	Statutory Auditor
	First Floor
	Two Chamberlain Square
	Birmingham
	B3 3AX
Principal banker	The Royal Bank of Scotland plc
	5 Market Street
	Leicester
	LE1 6DN
Legal advisors	Bates Wells Braithwaite LLP
	10 Queens Street Place
	London
	EC4R 1BE
	Nelsons
	37 New Walk
	Leicester
	LE1 6TU
Pension advisors	Aegon
	Platform Client Services
	1-3 Lochside Crescent
	Edinburgh Park
	Edinburgh
	EH12 9SE
Investment managers	CCLA
	Senator House
	85 Queen Victoria Street
	London
	EC4V 4ET
Registered Charity Number	229642
England and Wales
OSCR Charity Number	SC039452
Scotland

47

St Andrews House 48 Princess Road East Leicester LE1 7DR, UK

www.bps.org.uk 0116 254 9568 [e-mail]

Incorporated by Royal Charter Registered Charity No 229642

11.07.2022