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2021-12-31-accounts

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

COMPANY REGISTRATION NUMBER 5034 CHARITY REGISTRATION NUMBER 250605

REPORT AND ACCOUNTS

YEAR ENDED 31 DECEMBER 2021

PUBLISHERS OF THE LAW REPORTS, THE WEEKLY LAW REPORTS, THE INDUSTRIAL CASES REPORTS, THE BUSINESS LAW REPORTS AND THE PUBLIC AND THIRD SECTOR LAW REPORTS

MEGARRY HOUSE, 119 CHANCERY LANE, LONDON WC2A 1PP

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

ANNUAL REPORT

YEAR ENDED 31 DECEMBER 2021

CONTENTS Page
MEMBERS OF THE COUNCIL 1
REPORT OF THE COUNCIL 2
STATEMENT OF RESPONSIBILITIES OF THE COUNCIL 6
INDEPENDENT AUDITOR'S REPORT 7
STATEMENT OF FINANCIAL ACTIVITIES 10
BALANCE SHEET 11
STATEMENT OF CASH FLOWS 12
NOTES TO THE FINANCIAL STATEMENTS 13

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES MEMBERS OF THE COUNCIL

YEAR ENDED 31 DECEMBER 2021

Chairman - R Fleck Esq. CBE Vice Chairman – Miss M Bowron QC

EX OFFICIO MEMBER

The Attorney-General - The Rt. Hon. Suella Braverman QC MP The Solicitor-General – Alex Chalk QC MP The President of The Law Society – Ms I S Boyce

NOMINATED MEMBERS

Lincoln's Inn His Honour Judge D R Hodge QC The Hon. Sir Alastair Norris

Inner Temple Miss M Bowron QC Dr M Malecka

Middle Temple The Hon. Mr Justice Roth P Susman Esq. QC

Gray's Inn J Clarke Esq. The Hon. Mr Justice Turner

The Law Society Mrs S Abraham Ms L K H Lee

ELECTED MEMBERS

Elected by the Council on the nomination of the General Council of the Bar Ms M Coutino F Sadiq Esq.

CO-OPTED MEMBERS

R Fleck Esq. CBE K Hamer Esq Prof J Lee Ms S Thomas J M Turner Esq. QC

SECRETARY / CEO

Kevin Laws Esq.

Registered Address : Megarry House, 119 Chancery Lane, London WC2A 1PP

ADVISORS

Solicitors Bird & Bird 15 Fetter Lane London EC4A 1JP

Independent Auditor Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG

Bankers

National Westminster Bank Plc 156 Fleet Street London EC4A 2DX

Stockbrokers

Quilter Cheviot 1 Kingsway London WC2B 6AN

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

REPORT OF THE COUNCIL

MEMBERS OF THE COUNCIL

The members of the Council, being the trustees under charity law and the directors under company law, submit their report and the accounts for the year ended 31 December 2021. Details of members are given on page 1.

During the year there were the following changes to the members of the Council:

Appointments Resignations
Ms Lucy Fraser 09 May 2019 Ms LucyFraser 25 July 2019
Mr Michael Ellis 25 July 2019 Mr Michael Ellis 02 March 2021
The Hon Suella Braverman 13 February 2020 Mr D M Greene 04 June 2021
Ms Lucy Fraser 02 March 2021 Professor P Mitchell 02 August 2021
Ingrid Stephanie Boyce 04 June 2021 Ms LucyFraser 10 September 2021
Professor James Lee 02 August 2021 Mr Michael Ellis 16 September 2021
Mr Michael Ellis 10 September 2021
Alex Chalk 16 September 2021

No trustees received any remuneration during the year. No trustees were reimbursed in respect of expenses incurred in performing their duty.

The number of members of the Council shall not exceed twenty. Three, namely the Attorney General, the Solicitor General and the President of The Law Society are appointed members by virtue of their office. Ten members, two from each of Lincoln’s Inn, Inner Temple, Middle Temple, Gray’s Inn and The Law Society are nominated by each of these societies. Two members are elected to represent the Bar Council. Other coopted members, not exceeding five in total, are appointed by the Council.

New members are provided with the articles of association, ‘The Essential Trustee’ document from the Charity Commission, the latest accounts and the minutes from the most recent Executive Committee meeting. They are also given the opportunity to ask the Chief Executive Officer any questions that they may have.

The Council maintains appropriate insurance to cover directors’ and officers’ liability. At the date upon which this report was approved and for the year ended 31 December 2021, the Council provided an indemnity in respect of all of the company’s directors / trustees against liability in respect of actions brought by third parties, subject to the conditions set out in the Companies Act 2006.

OBJECTS AND PRINCIPAL ACTIVITIES

  1. The preparation and publication, in a convenient form, at a moderate price and under gratuitous professional control, of Reports of Judicial Decisions of the Superior and Appellate Courts in England and Wales.

  2. The issue, periodically or occasionally, of any subsidiary or other publications relating to legal subjects which it may be considered expedient to combine with the publication of such reports, including the Statutes of the Realm, or any part thereof, if deemed expedient.

The principal activities of the Council are the publication of The Law Reports, The Weekly Law Reports, The Industrial Cases Reports, The Business Law Reports and The Public and Third Sector Law Reports . Following Practice Directions from Lord Woolf in 2001 and Lord Judge in 2012, the Official Law Reports must always be cited in preference to other law reports. The function to publish law reports of judicial decisions of the superior and appellate courts in England and Wales makes a significant contribution to the administration of justice in England and Wales. This independent role is free from political and shareholder influence.

The Council was formed in 1865, incorporated on 28 July 1870, registered as a charity on 17 November 1971, and is now a company limited by guarantee and not having a share capital. The liability of members is limited to ten pounds per member.

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

REPORT OF THE COUNCIL (continued)

The Council’s primary object is, in substance, to record in a reliably accurate manner the development and application of judge-made law and to disseminate the knowledge of that law, its development and judicial application, in a way which is essential to the study of the law. Its purposes in doing so are (i) to assist the administration and development of the law by the courts and (ii) to make the law known, or at least accessible, to all members of the community, including professional lawyers whose advice on legal matters is likely to be sought by other members of the community, thereby making a sound knowledge and understanding of the law more available to all. In 1971 those purposes were held by the Court of Appeal in Incorporated Council of Law Reporting for England and Wales v Attorney-General [1972] Ch 73, 88, 95, 104 to be of “general public utility” and “beneficial to the community”. Nothing has changed in any relevant respect since 1971 and the Council continues to believe that substantial public benefit results from those activities.

The Council is run on a not-for-profit basis whilst offering preferential rates in respect of its publications to academic institutions, students, law lecturers and other charities. The Council also provides pro bono training to Law Reporting organisations from other jurisdictions and engages positively with the Lead Judge for International Relations at the Ministry of Justice. The trustees have taken due regard of the information issued by the Charity Commission on public benefit.

ACHIEVEMENTS AND PERFORMANCE

Home working and cloud technology enabled ICLR to continue to operate as near to normal as possible during the continuing global pandemic in 2021. Important court hearings were live streamed during periods of lockdown enabling law reporters to ‘attend’ trials remotely. Weekly and monthly parts continued to be printed to the normal schedule and content was regularly uploaded to the online platform throughout the year.

The upgraded ICLR.4 online platform was launched in November 2021. Improved functionality of the online platform includes improved browse functionality, expanded filter options, the ability to link seamlessly from case law to cited legislation, and an artificial intelligence driven search module called Case Genie.

E-Commerce functionality was developed in 2020 and deployed in January 2021. Customers are now able to purchase subscriptions to the online platform, for a duration of either a month or a year, 24 hours a day 365 days per year.

FINANCIAL REVIEW

These accounts are prepared under the historical cost convention as modified by the valuation of investments to market value, in accordance with applicable accounting standards and to comply with the Statement of Recommended Practice issued by the Charity Commissioners for England and Wales.

Income in 2021 was £5,433,826, an increase of £170,303 (3%) on 2020. The higher income is primarily attributable to the continuing rise in demand for online publications.

Costs have been kept under tight control. Total expenditure at £4,873,113 was £200,207 (4%) higher than in 2020.

This has resulted in an operating surplus of £560,713, slightly lower than the £590,617 operating surplus reported for 2020.

The operating surplus moves to an overall surplus of £2,279,278 (£388,292 deficit in 2020) once the favourable movements of £1,811,000 of the pension scheme liability and £357,565 gain on investments are included.

Creditors (amounts falling due within one year) amount to approximately £3.5m. £2.6m of this total refers to deferred income and is recorded as an equal and opposite value in current assets. The remaining £0.9m relates to accrued expenditure that has been incurred but not paid at year end.

At the year end, total unrestricted funds were £5,414k, an increase from £2,714k reported at the end of 2020. This favourable movement is mainly due to the pension scheme improving to a £25k surplus (from £2,036k deficit in 2020).

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

REPORT OF THE COUNCIL (continued)

The significant improvement in the pension scheme funding is a factor of higher bond yields on the 31 December 2021 and £275,000 employer contributions in 2021.

KEY MANAGEMENT COMPENSATION POLICY

The members of Council have identified the Chief Executive Officer, Editor and Head of Product Development and Online Content as key management personnel of the charity and they are in charge of directing and controlling, running and operating the charity on a day to day basis.

The pay of all staff is reviewed annually with average increases normally in line with inflation.

RISKS

A risk register is maintained and periodically reviewed at Council meetings. Areas currently identified with significant inherent risk include the risk that demand for ICLR content on paper declines to a level that results in an unsustainable loss and the risk that operational or archive data is lost. Controls have been put in place to mitigate these risks, these include developing alternative sources of revenue and ensuring data is regularly backed up and held in multiple locations. Continuity of service for the online platform is also considered a risk. The security of the platform is regularly reviewed to ensure the appropriate measures are in place. Compliance with GDPR legislation is also identified as a risk. Regular reviews are conducted to mitigate the risk of non-compliance. ICLR is mindful of the situation in Ukraine. Russia is a significant exporter of paper and, although ICLR has been assured by their printers that there are sufficient paper supplies to fulfil their obligations, there is a risk that a protracted conflict will impact supply and paper prices. The situation will be monitored for paper supply issues.

INVESTMENT POLICY

Quilter Cheviot were appointed discretionary managers for the Council’s investment portfolio in September 2015. The investment strategy falls within the wealth preservation category including a mixture of asset classes (approximate breakdown: UK equities (30%), overseas equities (40%), fixed interest (15%), property and infrastructure (15%)). The trustees regularly monitor the performance of the investment managers. The investment managers are periodically requested to present the investment performance at Executive Committee meetings.

DEFINED BENEFIT PENSION SCHEME

The Council operates a defined benefit pension scheme that was closed to new members in 1999 and closed to future accrual in 2010. For accounting purposes, the defined benefit pension scheme has a small surplus of £25k. The Council and pension scheme trustees are both committed to ensuring the appropriate level of funding to allow the full payment of accrued pensions from the scheme. The Council increased the annual contributions, from £135k to £275k per annum, from 1 July 2020, to reduce the then deficit. The pension scheme trustees, in consultation with the scheme actuary and the Council, will consider whether this level of contribution is appropriate as part of the triennial valuation for the period ending 31 March 2022.

FUTURE DEVELOPMENTS

The Council will continue to seek to improve the efficiency of the publishing process and will explore new opportunities for expanding the Council’s content and improving the functionality of the online platform in order to meet customers’ demands.

RESERVES

Free reserves, being total unrestricted reserves less tangible and intangible fixed assets, plus the pension fund surplus/(deficit) stand at £3,572,411 (2020: £2,878,376). The free reserves provide working capital for the operations of the charity and the trustees consider that an ideal level of reserves would amount to a full year’s worth of expenditure (£4.9m). Amounts reported in tangible fixed assets are excluded because they are not readily available to the charity for spending. The pension fund deficit will be dealt with through adjusting contributions over a period of years.

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

REPORT OF THE COUNCIL (continued)

TANGIBLE ASSETS

The movements in tangible assets during the year are set out in note 10 to the accounts. The Trustees are aware that there is a material favourable difference between the disclosed carrying value of freehold properties (£1.5m) in these accounts and the current market value, but do not believe that there is value, commensurate with the associated cost, in ascertaining that market value at this time.

AUDITOR

A resolution proposing that Haysmacintyre LLP be reappointed for the ensuing year will be presented to the Annual General Meeting.

STATEMENT OF THE COUNCIL

The Council members have confirmed that so far as they are aware, there is no relevant audit information of which the charitable company’s auditor is unaware and that they have taken all the reasonable steps that they ought to have taken as members in order to make themselves aware of any relevant audit information and to establish that the charitable company’s auditor is aware of that information.

APPRECIATION

The Council wishes to express its thanks to Her Majesty’s Judges and to both branches of the Profession for the aid afforded by them to the Editors and Reporters in the discharge of their duties and to record their appreciation of the efforts of the Editors, Reporters, and staff in maintaining the high quality of the published law reports.

By Order of the Council

Mr Kevin Laws Company Secretary

Date: 9[th] June 2022

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

STATEMENT OF RESPONSIBILITIES OF THE COUNCIL

The trustees (who are also directors for the purposes of company law) are responsible for preparing the trustees’ annual report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the net income or expenditure, of the charitable company for the year. In preparing those financial statements the trustees are required to:

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

This report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.

INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL OF THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

We have audited the financial statements of The Incorporated Council of Law Reporting for England and Wales for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Flows and the 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL OF THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES (continued)

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Council.

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

Responsibilities of trustees for the financial statements

As explained more fully in the Statement of Responsibilities of the Council, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity law, 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 Companies Act 2006, the Charities Act 2011, corporation tax, payroll tax and sales tax.

We evaluated 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 the posting of inappropriate journal entries and management bias in accounting estimates and judgements. Audit procedures performed by the engagement team included:

INDEPENDENT AUDITOR’S REPORT TO THE COUNCIL OF THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES (continued)

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Thomas Wilson (Senior Statutory Auditor)

for and on behalf of Haysmacintyre LLP, Statutory Auditor 10 Queen Street Place London EC4R 1AG Date: 15/06/22

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT)

FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted Unrestricted
and total and total
funds funds
2021 2020
Notes £ £
INCOME FROM:
Charitable activities
Sales of print publications 3 704,403 761,346
Online, licensing and other income 3 4,643,437 4,435,215
Investments
Interest receivable 1,511 6,049
Listed investments 46,956 47,038
Other
Rental income 37,519 13,875
--------------------------- ---------------------------
TOTAL 5,433,826 5,263,523
--------------------------- ---------------------------
EXPENDITURE ON:
Charitable activities
Costs of publications and services 4 4,792,066 4,585,493
Distribution costs 4 81,047 87,413
--------------------------- ---------------------------
TOTAL 4,873,113 4,672,906
-------------------------- --------------------------
Net income for the year before investment gains 560,713 590,617
Net gains on investments 357,565 171,091
----------------------- -----------------------
Net income for the year 918,278 761,708
Other recognised gains and losses
Remeasurement of net defined benefit pension liability 16 1,811,000 (1,150,000)
-------------------------- --------------------------
Net movement in funds for the year 2,729,278 (388,292)
Funds brought forward at 1 January 15 2,713,743 3,102,035
------------------------ -- ---------------------------
Funds carried forward at 31 December 15 5,443,021 2,713,743
============ ==========

All gains and losses arising in the year are included in the Statement of Financial Activities above and arose from continuing activities.

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

BALANCE SHEET

AS AT 31 DECEMBER 2021

2021 2020
Notes £ £ £ £
FIXED ASSETS
Tangible assets 10 1,520,251 1,534,045
Intangible assets 11 325,359 337,322
Investments 12 3,526,871 2,537,738
-------------------------- --------------------------
5,372,481 4,409,105
CURRENT ASSETS
Stock 65,534 66,123
Debtors 13 2,410,421 2,318,265
Cash at bank and in hand 1,073,420 1,568,970
--------------------------- ----------------------------
3,549,375 3,953,358
CREDITORS: Amounts falling due
within one year 14 (3,503,835) (3,612,720)
--------------------------- --------------------------
NET CURRENT ASSETS 45,540 340,638
-------------------------- --------------------------
NET ASSETS excluding pension asset/
(liability) 5,418,021 4,749,743
Pension asset/(liability) 16 25,000 (2,036,000)
--------------------------- ---------------------------
NET ASSETS 5,443,021 2,713,743
=========== ===========
FUNDS
Unrestricted funds
- Accumulated reserve 15 5,418,021 4,749,743
- Pension reserve 15 25,000 (2,036,000)
------------------------- --------------------------
5,443,021 2,713,743
=========== ===========

The financial statements were approved and authorised for issue by the Council and were signed on its behalf on 9[th] June 2022 by:

.............................................................................

Mr Richard Fleck CBE Chairman

Company Registration Number 5034 (England & Wales)

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

2021 2020
Note £ £
Cash flows from operating activities:
Net cash provided by operating activities a 228,293 356,176
Cash flows from investing activities:
Dividends and interest 48,909 53,087
Purchase of property, plant and equipment (1,887) (4,485)
Purchase of Intangible assets (139,302) (176,616)
Proceeds from sale of investments 148,230 168,364
Purchase of investments (779,793) (118,547)
----------------------- -----------------------
Net cash used in investing activities (495,550) (78,197)
----------------------- ------------------------
Change in cash and cash equivalents in the reporting period (495,550) 277,979
Cash and cash equivalents at the beginning of the reporting period b 1,568,970 1,290,991
-------------------------- --------------------------
Cash and cash equivalents at the end of the reporting period b 1,073,420 1,568,970
============ ==========
Notes to the Statement of Cash Flows
a)
Reconciliation of net income to net cash flow from operating activities		 a)
Reconciliation of net income to net cash flow from operating activities
Net income for the year (as per the Statement of Financial Activities) 918,278 761,708
Adjustments for:
Depreciation charges 15,681 16,959
Amortisation 151,265 107,023
Gains on investments (357,565) (171,091)
Dividends and interest from investments (48,909) (53,087)
Decrease/(Increase) in stock 589 (496)
Increase in debtors (92,044) (191,711)
(Decrease)/increase in creditors (109,002) 72,871
Difference between pension movement and cash contributions (250,000) (186,000)
-------------------- --------------------
Net cash provided by operating activities 228,293 356,176
=========== ===========
b)
Analysis of cash and cash equivalents
Cash in hand 623,420 368,970
Notice deposits (less than 3 months) 450,000 1,200,000
- ------------------- - -------------------
Total cash and cash equivalents 1,073,420 1,568,970
=========== ===========

No analysis of changes in net debt has been presented as the charitable company has no borrowings.

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1 ACCOUNTING POLICIES

(a) General information

(b) Accounting convention and basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception of fixed asset investments, which are included at their market value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP FRS 102) Second edition effective 1 January 2019, the Companies Act 2006 and applicable accounting standards (FRS 102).

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

(c) Going concern

The trustees consider that, after taking into account financial and cashflow forecasts for the next 5 years, there are no material uncertainties regarding the Council’s ability to continue as a going concern.

(d) Income

All income, including income from publications, subscriptions and licensing agreements is accrued and included in the Statement of Financial Activities when the Council is legally entitled to (or has received) the income and the amount can be quantified with reasonable accuracy. Income received relating to future accounting periods is deferred and recognised as a creditor within the balance sheet. Subscriptions in respect of the following financial year are raised in advance and are due for payment by 31 December and these are shown within trade debtors and deferred income.

(e) Expenditure

Expenditure is accounted for on an accruals basis.

Direct charitable expenditure relates to salaries and expenditure incurred in preparing, publishing and distributing content and related services.

Support costs consist of central management, administration and governance costs. The amount spent on raising funds and other activities is considered to be immaterial and all support costs are allocated to costs of publications and services within charitable activities.

(f) Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is provided on all tangible assets, other than freehold land, to write off the cost, less estimated residual value of each asset over its expected useful life on a straight-line basis using the following rates:

e following rates:
Freehold buildings - 2%
Fixtures and fittings - 10%
Electrical and computer equipment - 20%

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1 ACCOUNTING POLICIES (continued)

(g) Intangible fixed assets and amortisation

Intangible fixed assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is provided on all intangible assets, to write off the cost, less estimated residual value of each asset over its expected useful life on a straight-line basis using the following rates:

Online Platform and Content Management System - 20% Licences of transcripts - 10%

In respect of the transcript licences, the trustees consider that, given the length of time that cases can be considered or cited, it is not possible to make a reliable estimate of the useful life and therefore have adopted the presumed useful life of 10 years as set out in the Charity SORP.

Amortisation is recognised as costs of publications and services within expenditure on charitable activities in the Statement of Financial Activities.

(h) Investments

Investments are included at market value on the Balance Sheet date. Net gains or losses on revaluation and disposal of investments are included in the Statement of Financial Activities.

(i) Stock

Stock is valued at the lower of cost and net realisable value.

(j) Financial instruments – assets and liabilities

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within current liabilities.

Debtors and creditors

Debtors and creditors with no stated interest rates are recorded at transaction price. Any losses arising from impairment are recognised in the Statement of Financial Activities.

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1 ACCOUNTING POLICIES (continued)

(k) Employee benefits

The Council provides a range of benefits to employees including paid holiday arrangements and defined benefit and defined contribution pension plans.

Short term benefits

Short term benefits, including holidays and other similar non-monetary benefits are recognised as an expense in the period in which the service is received.

Defined contribution pension plans

The Council operates a group personal pension scheme under which the Council makes fixed contributions to a separate entity. The Council also makes contributions to self-employed reporters appointed prior to 1989 which they invest in personal pension schemes. The contributions are recognised as an expense when they fall due. The assets of the pension plans are held separately from the Council in independently administered funds.

Defined benefit pension scheme

The Council has a defined benefit pension scheme for employees that was closed to future accrual on 15[th] June 2010, the assets of which are administered by trustees. The liability recognised in the balance sheet in respect of the defined benefit pension scheme is the present value of the defined benefit obligation at the end of the reporting date less the fair value of the scheme assets at the reporting date.

The defined benefit obligation is calculated using the projected unit credit method. Annually the Council engages an independent actuary to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating the estimated period of the future periods (“discount rate”). The fair value of the scheme assets is measured in accordance with the FRS 102 fair value hierarchy and includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as “remeasurement of net defined benefit pension liability”.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of the scheme assets. The cost is recognised within other pension costs in the Statement of Financial Activities.

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 DECEMBER 2021

2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the Council’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. 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.

Key areas subject to judgement and estimation are as follows:

Defined benefit pension scheme

The Council has obligations to pay pension benefits under a defined benefit pension scheme. The cost of these benefits and the present value of the obligation depend on a number of factors including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates the factors in determining the net pension obligation in the balance sheet, and the assumptions are agreed with the scheme’s actuary on the basis of historical experience and current trends.

3.

4.

INCOME FROM CHARITABLE ACTIVITIES 2021 2020
£ £
A geographical division of charitable income is given below:
United Kingdom 4,401,052 4,236,522
Overseas 946,788 960,039
---------------------- ----------------------
5,347,840 5,196,561
========== ==========
COST OF CHARITABLE ACTIVITIES
Direct Other Support
Fees and Direct Costs 2021 2020
Salaries Costs (Note 5) Total Total
£ £ £ £ £
Costs of publications
and services 2,966,634 737,700 1,087,732 4,792,066 4,585,493
Distribution costs - 81,047 - 81,047 87,413
-------------------- -------------------- -------------------- ------------------------ ------------------------
Total 2,996,634 818,747 1,087,732 4,873,113 4,672,906
========== ========== ========== =========== ===========

COST OF CHARITABLE ACTIVITIES (2020)

Direct Other Support
Fees and Direct Costs 2020
Salaries Costs (Note 5) Total
£ £ £ £
Costs of publications
and services 2,870,826 672,289 1,042,378 4,585,493
Distribution costs - 87,413 - 87,413
-------------------- -------------------- -------------------- ------------------------
Total 2,870,826 759,702 1,042,378 4,672,906
========== ========== ========== ===========

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 DECEMBER 2021

5. SUPPORT COSTS 2021 2020
£ £
Salaries, wages, NI, health insurance and pension costs 572,723 610,252
Office rent and running costs 142,152 99,547
Office supplies and services 116,751 131,071
Depreciation 21,681 16,959
Amortisation 145,265 107,023
Other support costs 75,160 65,076
Governance costs – audit and accountancy fees 14,000 12,450
------------------------- -------------------------
1,087,732 1,042,378
========== ==========
6. NET INCOME FOR THE FINANCIAL YEAR 2021 2020
£ £
Net income for the financial year is stated after charging the following:
Auditor’s remuneration:
- audit 12,000 10,450
- accountancy 2,000 2,000
======== =======

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 DECEMBER 2021

7. FEES AND SALARIES 2021 2020
£ £
Wages and salaries 2,152,608 2,203,371
Social security costs 274,605 246,371
Employer pension costs 573,440 506,488
Staff healthcare costs 69,151 69,570
--------------------------
--------------------------
3,069,804 3,025,800
Self-employed reporters’ and editors’ fees and related costs 469,553 455,278
--------------------------
--------------------------
3,539,357 3,481,078
========== ==========
The monthly average number of employees was 50 48
======= =======
In addition the Council utilises the services of 7 (2020: 7) self-employed reporters and editors.
2021 2020
Number Number
The emoluments of higher paid staff within the following range were:
£60,000 - £69,999 5 3
£70,000 - £79,999 2 1
£80,000 - £89,999 - 1
£90,000 - £99,999 - 1
£100,000 - £109,999 1 -
£110,000 - £119,999 1 -
£130,000 - £139,999 - 1
£150,000 - £159,999 1 -
======= =======

The key management personnel of the Council consist of the three (2020: four) members of the senior management team. Total compensation (including employer’s national insurance contributions) for key management personnel for the year was £463,032 (2020: £492,821).

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 DECEMBER 2021

8. COUNCIL MEMBERS’ REMUNERATION AND TRANSACTIONS

No members of the Council received any remuneration during the year (2020: £nil). No members were reimbursed expenses during the year (2020: No member reimbursed £nil).

9. TAXATION

The company is a registered charity and, as its income is applied to charitable purposes, there is no liability to corporation tax.

10. TANGIBLE ASSETS

TANGIBLE ASSETS
Electrical
Freehold Fixtures and
land and and computer
buildings fittings equipment Total
£ £ £ £
Cost
At 1 January 2021 2,178,224 151,091 82,401 2,411,716
Additions - 208 1,679 1,887
Disposals - - (2,329) (2,329)
-------------------- ------------------- -------------------- ------------------------
At 31 December 2021 2,178,224 151,299 81,751 2,411,274
-------------------- ------------------- -------------------- ------------------------
Accumulated depreciation
At 1 January 2021 683,284 125,038 69,349 877,671
Charge for the year 4,772 4,811 6,098 15,681
Disposals - - (2,329) (2,329)
-------------------- ------------------- -------------------- ------------------------
At 31 December 2021 688,056 129,849 73,118 891,023
-------------------- ------------------- -------------------- ------------------------
Net book values
At 31 December 2021 1,490,168 21,450 8,633 1,520,251
========= ========= ======== =========
At 31 December 2020 1,494,940 26,053 13,052 1,534,045
========= ========= ======== =========

All assets are considered to be held for charitable purposes.

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 DECEMBER 2021

11. INTANGIBLE ASSETS

11. INTANGIBLE ASSETS
Online platform
and content
management Transcript
system Licence Total
£ £ £
Cost
At 1 January 2021 679,881 60,000 739,881
Additions 139,302 - 139,302
-------------------- -------------------- -------------------
At 31 December 2021 819,183 60,000 879,183
-------------------- -------------------- -------------------
Accumulated amortisation
At 1 January 2021 378,559 24,000 402,559
Charge for the year 145,265 6,000 151,265
-------------------- -------------------- -------------------
At 31 December 2021 523,824 30,000 553,824
-------------------- -------------------- -------------------
Net book values
At 31 December 2021 295,359 30,000 325,359
========= ========= =========
At 31 December 2020 301,322 36,000 337,322
========= ========= =========
12. INVESTMENTS Fixed Listed
interest equities and
stock funds Total
£ £ £
Analysis of movements in the year
Market value at 1 January 2021 405,229 2,132,509 2,537,738
Additions at cost 36,897 742,896 779,793
Sales proceeds - (148,230) (148,230)
Realised gains on disposals - 13,081 13,081
Unrealised losses on revaluation (14,969) 359,458 344,489
----------------------- ------------------------- -------------------------
Market value
At 31 December 2021 427,157 3,099,714 3,526,871
========= ========== ==========
Cost
At 31 December 2021 406,983 2,010,426 2,417,409
========= ========== ==========
At 31 December 2020 368,514 1,359,487 1,728,001
========= ========== ==========

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 DECEMBER 2021

13. DEBTORS 2021 2020
£ £
Due within one year:
Trade debtors 2,198,178 2,117,260
Other debtors 36,633 39,991
Prepayments 112,610 114,727
Accrued income 63,000 46,287
-------------------------- --------------------------
2,410,421 2,318,265
========== ==========
14. CREDITORS 2021 2020
£ £
Amounts falling due within one year:
Trade creditors 104,918 76,182
Accruals 383,216 538,492
Deferred income 2,649,607 2,646,818
Tax and social security 358,860 345,972
Other creditors 7,234 5,256
--------------------------- ---------------------------
3,503,835 3,612,720
========== ==========
15. FUNDS Accumulated Pension
Fund Reserve Total
£ £ £
Balance brought forward at 1 January 2020 4,174,035 (1,072,000) 3,102,035
Transfers between funds - - -
Surplus/ (deficit) for the year 575,708 (964,000) (388,292)
---------------------------- ------------------------ ---------------------------
Balance brought forward at 1 January 2021 4,749,743 (2,036,000) 2,713,743
Transfers between funds - - -
Surplus/(deficit) for the year 668,278 2,061,000 2,729,278
--------------------------- ------------------------ ---------------------------
Balance as at 31 December 2021 5,418,021 25,000 5,443,021
============ =========== ===========

Included within the accumulated fund are unrealised gains on investments totalling £1,109,462 (2020: £809,737).

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 DECEMBER 2021

16. PENSIONS

(i) Pension and Life Assurance Scheme

The company operates a defined benefit pension scheme in the UK, the Incorporated Council of Law Reporting for England and Wales Pension and Life Assurance Scheme (1975), in respect of office, editorial and warehouse staff, and reporters appointed subsequently to 6 April 1989. The assets of the scheme are held separately from those of the company, being invested in various investment vehicles with Royal London and Quilter Cheviot. The scheme was closed to new members in October 1999 and to future accrual on 15[th] June 2010. The pension contribution for the year was £275,000 (2020: £205,000).

The most recent triennial review as at 1 April 2019 stated that the value of the scheme assets was £8,331,000 which represented 79% of the benefits that had accrued to members, after allowing for future increases in earnings. This is equivalent to a deficit of £2,175,000. The major assumptions used in the valuation as at 1 April 2019 are given below.

Rate of increase of salaries 3.5% pa
Rate of increase of pensions in payment 3.3% pa
Rate of Investment return – before retirement 3.5% pa
Rate of Investment return – after retirement 1.8% pa
Retail price index increases 3.4% pa
Consumer price index increases 2.8% pa
Rate of increases in pensions in deferment:
Pre 6 April 2019 accrual 2.8%
Post 6 April 2019 accrual 2.5%

A Recovery Plan has been agreed with the company, which commits the company to paying contributions to fund the shortfall. These deficit reduction contributions are incorporated into the plan’s Schedule of Contributions dated 7 April 2020 and require the company to make contributions of £33,750 per quarter, increasing to £68,750 per quarter from 1 July 2020 and up to and including July 2029. These payments are subject to review following the next funding valuation which will be undertaken as at 1 April 2022.

For the purpose of providing the disclosures required by Financial Reporting Standard 102, the Scheme actuary has prepared a valuation of the Scheme using the projected unit method in order to assess the liabilities of the Scheme at 31 December 2021. The major assumptions used by the actuary as at 31 December 2021 were as follows:

31 December 2021 31 December 2020
Discount Rate 1.9% 1.3%
Salary increases 3.3% 3.2%
LPI Pension increases 3.2% 3.1%
Retail price index 3.3% 3.2%
Consumer price index 2.5% 2.2%
Mortality assumptions

The underlying mortality assumption is based upon the standard table known as S3PA on a year of birth usage with CMI_2020 future improvement factors and a long-term rate of future improvement of 1.0% p.a. (2020: S3PA with CMI_2019 future improvement factors and a long-term rate of future improvement of 1.0% p.a). This results in the following life expectancies:

Life expectancy for a current 65 year old - males 87 years 87 years
- females 89 years 89 years

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 DECEMBER 2021

16. PENSIONS (continued)

Amounts Recognised in the Balance Sheet

Amounts Recognised in the Balance Sheet
31 December 2021 31 December 2020
£ £
Market value of scheme assets 10,503,000 9,415,000
Present value of scheme liabilities (10,478,000) (11,451,000)
--------------------------- -------------------------
Net defined benefit asset/(liability) 25,000 (2,036,000)
--------------------------- -------------------------
Amounts Recognised in the Income and Expenditure account
31 December 2021 31 December 2020
£ £
Current service cost - -
Interest cost on net defined benefit liability 25,000 19,000
-------------------- --------------------
Total charge 25,000 19,000
-------------------- ------------------
Changes in the present value of the scheme liabilities
31 December 2021 31 December 2020
£ £
Opening present value of scheme liabilities 11,451,000 10,025,000
Current employer service costs - -
Interest cost on scheme liabilities 148,000 198,000
Actuarial (gains)/losses (977,000) 1,451,000
Benefits paid (144,000) (223,000)
---------------------- ----------------------
Closing present value of scheme liabilities 10,478,000 11,451,000
------------------------ -----------------------
Changes in the fair value of scheme assets
31 December 2021 31 December 2020
£ £
Opening fair value of scheme assets 9,415,000 8,953,000
Interest on scheme assets 123,000 179,000
Return on assets less interest included in I&E 834,000 301,000
Employer contributions 275,000 205,000
Member contributions - -
Benefits paid (144,000) (223,000)
----------------------- ----------------------
Closing fair value of scheme assets 10,503,000 9,415,000
----------------------- ----------------------
Actual return on scheme assets 957,000 480,000
=========== ==========

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES

NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 DECEMBER 2021

16. PENSIONS (continued)

The major categories of Scheme assets as a percentage of total Scheme assets are as follows:

At 31 At 31
December December
2021 2020
Equities and Property 61% 69%
Bonds 23% 29%
Cash 16% 2%
--------------- ---------------
Total 100% 100%
--------------- ---------------

The scheme has no investments in property occupied by, assets used by or financial instruments issued by the charitable company.

Analysis of amount recognisable in other recognised gains and losses

31 December 2021 31 December 2020
£ £
Return on assets, less interest recognised in I&E 834,000 301,000
Experience gains and losses arising on scheme liabilities - -
Changes in assumptions underlying the present value of
scheme liabilities 977,000 (1,451,000)
----------------------- -----------------------
Remeasurement of net defined benefit pension liability
recognised in other recognised gains and losses 1,811,000 (1,150,000)
----------------------- -----------------------
Movement in net defined benefit asset/(liability) during the year
31 December 2021 31 December 2020
£ £
Net defined benefit liability at start of year (2,036,000) (1,072,000)
Income and expenditure charge (25,000) (19,000)
Remeasurement of net defined benefit pension liability
recognised in other recognised gains and losses 1,811,000 (1,150,000)
Employer contributions 275,000 205,000
----------------------- -----------------------
Net defined benefit asset/(liability) at end of year 25,000 (2,036,000)
----------------------- -----------------------

(ii) Defined contribution pension scheme arrangements

ICLR operates a defined contribution pension scheme for eligible employees called the ICLR Group Personal Pension Plan (GPPP). All eligible employees are automatically enrolled into the scheme and ICLR contributes between 4% and 14% of pensionable salaries. ICLR also makes contributions to employee personal pension schemes through pension salary exchange. The total expense for the year in respect of defined contribution pension schemes was £277,610 (2020: £273,110). Contributions totalling £22,327 (2020: £22,465) were payable in respect of these arrangements at the balance sheet date and are included in creditors.

(iii) Retirement reserve for appointed reporters

The Council pays annual pension increments to self-employed reporters appointed prior to April 1989 which they invest in their individual pension arrangements. The charge for the year, included in cost of publications and services, was £42,223 (2020: £42,577). Contributions totalling £33,961 (2020: £32,665) were payable in respect of this scheme at the balance sheet date and are included in creditors.

THE INCORPORATED COUNCIL OF LAW REPORTING FOR ENGLAND AND WALES NOTES TO THE FINANCIAL STATEMENTS (continued)

YEAR ENDED 31 DECEMBER 2021

17. CAPITAL COMMITMENTS

At the balance sheet date, the Council had no future capital commitments (2020: £110,000).

18. LEASE RENTALS RECEIVABLE

The Council lets part of its freehold buildings under a lease agreement. The future minimum lease rentals receivable under non-cancellable operating leases at the balance sheet date are as follows:

2021 2020
£ £
Minimum lease rentals receivable in:
less than one year 55,500 34,897
two to five years 44,400 100,052
------------------ ------------------
99,900 134,949
========= =========

No contingent rents have been included in this disclosure or recognised in the period.

19. RELATED PARTY TRANSACTIONS

There were no related party transactions in the current or previous year.

20. POST BALANCE SHEET EVENTS

There are no post balance sheet events to report.