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2020-12-31-accounts

Charity Registration No. 263147

Commonwealth Parliamentary Association Annual Report and Financial Statements 31 December 2020

Contents

Annual report 1
Statement of Trustees’ responsibilities 7
Independent auditor’s report 16
Statement of financial activities 20
Balance sheet 21
Statement of cash flow 22
Notes to the financial statements 23

Commonwealth Parliamentary Association

Annual report for the year ended 31 December 2020

ADMINISTRATIVE INFORMATION

The Commonwealth Parliamentary Association (CPA) was established in 1911 as the Empire Parliamentary Association. In 1948, the name was changed to the Commonwealth Parliamentary Association.

The CPA is a registered charity (registration number 263147) under the laws of the United Kingdom with its principal office and registered address located at Room103/104, Richmond House, Houses of Parliament, London SW1A 0AA, United Kingdom (since June 2018).

The CPA is run by an Executive Committee which acts as the board of Trustees of the Charity and determines its strategy and overall management. Day-to-day direction of the Charity is vested in the Secretary-General.

PATRON OF THE ASSOCIATION

H.M. Queen Elizabeth II Head of the Commonwealth

VICE-PATRON OF THE ASSOCIATION

Vacant – TBC Canada Federal

OFFICERS OF THE ASSOCIATION

President of the Association

Hon. Anthony Rota, MP Speaker of the House of Commons Canada Federal (2019 – to date)

Vice-President of the Association

TBC Ghana (2019 – to date)

Chairperson of the Executive Committee

Hon. Emilia Monjowa Lifaka, MP Deputy Speaker of Parliament Cameroon (2017 – to date)

Vice-Chairperson of the Executive Committee

Hon. John Ajaka, MLC President of the Legislative Council, New South Wales ( also Regional Representative for Australia Region ) (2019 – to date)

Treasurer of the Association

Hon. Datuk Shamsul Iskandar Md Akin, MP Federal Parliament of Malaysia (2019 – to date)

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Chairperson of the Commonwealth Women Parliamentarians (CWP)

Hon. Shandana Gulzar Khan, MNA National Assembly of Pakistan (2019 – to date)

Acting Small Branches Chairperson

Hon. Joy Burch, MLA Speaker of the Australia Capital Territory Legislative Assembly (Feb 2021 – to date)

REGIONAL REPRESENTATIVES

Africa

Rt Hon. Sephiri Enoch Motanyane, MP Speaker of the National Assembly Lesotho (2017 – to date)

Hon. Dr. Makali Mulu, MP Kenya (2017 – to date)

Hon. Osei Kyei Mensah Bonsu, MP Ghana (2019 – to date)

Hon. Bernard Songa Sibalatani, MP Vice Chairperson of the National Council Namibia (2016 – to date)

Hon. Lazarous Chungu Bwalya, MP Zambia (2016 – to date)

Rt. Hon. Dr Abass Bundu, MP Speaker of the Parliament Sierra Leone (2019 – to date)

Asia

Hon. Dr Lal Chand Ukrani, MPA Sindh (2017 – to date)

Hon. Dr Fehmida Mirza, MP Pakistan (2016 – to date)

Hon. Mahinda Yapa Abeywardana, MP Speaker of the Parliament Sri Lanka (2019 – to date)

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Australia

Hon. John Ajaka, MLC President of the Legislative Council New South Wales (2016 – to date)

Hon. Bruce Atkinson, MLC President of the Legislative Council Victoria (2017 – to date)

Senator the Hon. Scott Ryan, President of the Senate of Australia (2019 – to date)

British Islands and Mediterranean

Hon. Leona Roberts, MLA Falkland Islands (2017 – to date)

Hon. Stuart McMillan, MSP Scotland (stand-in Branch for Northern Ireland) (2016 – to date)

Hon. Ian Liddell-Grainger, MP United Kingdom (2019 – to date)

Canada

Hon. Francois Paradis, MNA Speaker of the National Assembly Quebec (stand-in Branch for Northwest Territories) (2016 – to date)

Hon. Kevin Murphy, MLA Speaker of the House of Assembly Nova Scotia (2018 – to date)

Hon. Yasmin Ratansi, MP Ontario (2019 – to date)

Caribbean, Americas and Atlantic

Hon. Arthur Holder, MP Speaker of the House of Assembly Barbados (Stand-in Branch for Trinidad and Tobago) (2018 – to date)

Hon. Andy Glenn Daniel, MP Speaker of the House of Assembly St. Lucia (2019 – to date)

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Hon. Dwayne Taylor, MHA Speaker of the House of Assembly Turks and Caicos (2019 – to date)

India

Shri Premchand Aggarwal, MLA Speaker of the Legislative Assembly Uttarakhand (Stand-in Branch for Jammu and Kashmir) (2016 – to date)

Shri Hitendra Goswami, MLA Speaker of the Legislative Assembly Assam (2017 – to date) Shri Anurag Sharma, MP Lok Sabha Indian Union (2019 – to date)

Pacific

Hon. Gerry Brownlee, MP New Zealand (2016 – to date)

Hon. Theresa Kaetavara, MHR Deputy Speaker of the House of Representative Bougainville (2017 – to date)

Rt. Hon. Ratu Epeli Nailatikau, MP Speaker of the Parliament, Fiji (2019 – to date)

South-East Asia

Hon. Suhaizan Kaiat, MLA Speaker of the State Legislative Assembly Johor (Stand-in Branch for Malacca) (2016 - to date)

Hon. Lim Biow Chuan, MP Deputy Speaker of the Parliament Singapore (July 2020 – to date)

Hon. Datuk Wira Dr Mohd Hatta Md Ramli, MP Malaysia (2019 – to date)

FORMER OFFICERS AND MEMBERS OF THE EXECUTIVE COMMITTEE DURING 2020 REGIONAL REPRESENTATIVES

Small Branches Chairperson

Hon. Niki Rattle, Speaker of the Parliament of Cook Islands (2019 – to Feb 2021)

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Pacific

Hon. Clayton Mitchell, MP New Zealand (2016 – 2020)

Hon. Francesca Semoso, MHR Deputy Speaker of the House of Representative Bougainville (2019 – 2020)

South-East Asia

Mr Zainal Sapari, MP Singapore (2017 – July 2020)

Trustees of CPA Trust Funds

Secretary-General Mr Stephen Twigg (Appointed August 2020) Commonwealth Parliamentary Association (CPA)

Acting Secretary-General Mr Jarvis Matiya (September 2019 – August 2020) Commonwealth Parliamentary Association (CPA)

Treasurer of the Association Hon. Datuk Shamsul Iskandar Md Akin, MP (Appointed September 2019) Federal Parliament of Malaysia

Hon. Lyndon Trott (Appointed Aug 2020) Guernsey Assembly Guernsey

Senior Management Team (SMT)

The Senior Management Team (SMT) comprised:

Secretary-General Mr Stephen Twigg (Appointed August 2020 – to date)

Acting Secretary-General (September 2019 – July 2020) Mr Jarvis Matiya

Finance Director Mr Paul Townley (April 2019 - to date)

Deputy Secretary-General Mr Jarvis Matiya (August 2020 - to date)

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Professional Advisers and Partner Organisations:

External Auditors: Buzzacott LLP 130 Wood Street London EC2V 6DL Internal Auditors: Crowe Clark Whitehill LLP St. Bride's House 10 Salisbury Square London EC4Y 8EH Bank: National Westminster Bank plc Westminster Branch 57 Victoria Street London SW1H 0HN Investment Managers: Close Brothers Asset Management 10 Exchange Square Primrose Street London EC2AR 2BY Legal Advisers: Bates Wells & Braithwaite London LLP 10 Queen Street Place London EC4R 1BE Commonwealth Secretariat: Marlborough House Pall Mall, London SW1Y 5HX

The Commonwealth Secretariat is the governmental wing of the Commonwealth and has 53 countries as its members. The CPA’s relationship with the Commonwealth Secretariat is informal. However, it is recognised that the CPA is the parliamentary wing of the Commonwealth and some CPA programmes are implemented jointly with the Commonwealth Secretariat. The Commonwealth SecretaryGeneral or their representative attends the CPA Annual Conference and the CPA Secretary-General and/or the Officers of the Association participate in the Commonwealth Heads of Government Meeting (CHOGM).

Inter-Parliamentary Union:

5 Chemin du Pommier Case postale 330 CH-1218 Le Grand Saconnex Geneva, Switzerland

The Inter-Parliamentary Union (IPU) deals with the national parliaments of all countries around the world. The Association’s relationship with the IPU is informal. However, national CPA parliamentary members are also members of the IPU.

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Commonwealth Parliamentary Association Annual report for the year ended 31 December 2020

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

The CPA has its own constitution ‘ Constitution of the Commonwealth Parliamentary Association ’ as adopted by the General Assembly of the Association at its meeting in Cyprus on 6 September 1993 and amended by the General Assembly of the Association from time-to-time.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Trustees, working through the Executive Committee, are responsible for preparing the Annual Report and the 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 and Wales, requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Charity and of the income and expenditure of the Charity for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable it to ensure that the financial statements comply with the Charities Act 2011 , the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Charity’s Constitution and Trust Deeds. They are also responsible for safeguarding the assets of the Charity and, hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Website

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Recruitment and Appointment of new Trustees

Members of the Executive Committee act as the Trustees of the Charity. The General Assembly elects new Trustees on the advice of the regions of the CPA. All Trustees are unpaid.

Induction and Training of new Trustees

The CPA Headquarters Secretariat organises induction sessions for new Trustees, with particular emphasis on their legal responsibilities. New Trustees also receive recent data on the operations of the CPA, including financial reports and minutes of immediate past meetings. The CPA Headquarters Secretariat updates Trustees on recent Charity legislation/developments at their bi-annual meetings.

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Commonwealth Parliamentary Association Annual report for the year ended 31 December 2020

Organisational Structure

The Secretary-General is responsible for the day-to-day management of the CPA. During 2019, he and latterly the Acting Secretary-General were supported by two Directors: Finance Director and Director of Operations. The Secretary-General makes decisions on operational matters, in consultation with the SMT.

The Secretary-General reports to the Executive Committee, and annually to the General Assembly on the operations of the CPA Headquarters Secretariat. The Executive Committee meets twice a year, and reports to the General Assembly. Certain aspects of the work of the Executive Committee are undertaken between meetings by the Coordinating Committee. The Sub-Committees of the Executive Committee meet on the margins during its meetings. These are the Audit Committee, Planning and Review Sub-Committee, and Finance Sub-Committee.

Branches

The CPA is composed of Branches that have been admitted as Members to the Association. Each Branch is autonomous, raises its own finances and pays an annual subscription to the Association’s International Headquarters. The Commonwealth Parliamentary Association Secretariat is the International Headquarters for the Association. It has close links with over 171 members Branches (2019: 171 Branches) on a day-to-day working level. Income raised by the Association’s Headquarters Secretariat is used to pay for the CPA’s programmes of work and for the meetings and conferences of its members. The annual subscription is determined at meetings of the General Assembly.

Risk Management

The Trustees are responsible for risk management. Risks identified by the SMT are reviewed, assessed and appropriate action incorporated as part of operational delivery. During 2020, the main risks and uncertainties facing the Association were:

Appropriate systems and /or actions have been and continue to be developed to identify and mitigate risk. These systems or actions include:

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Commonwealth Parliamentary Association Annual report for the year ended 31 December 2020

Pay-Setting Policy for Key Management Personnel

The Trustees have an established pay-setting policy for the charity’s key management personnel and other staff. It is based on an approved pay band. Progression from one spine point to another within a given band is on the basis of satisfactory performance. The Trustees adopted the pay band on the recommendation of independent pay review consultants. In addition, for staff at the top of their pay band, one off payments are awarded dependent on performance.

STATEMENT OF PURPOSE, AIMS, OBJECTIVES AND PUBLIC BENEFIT

Statement of purpose

The CPA connects, develops, promotes and supports Parliamentarians and their staff to identify benchmarks of good governance, and implement the enduring values of the Commonwealth.

Aims

Under section 1(1) of the Constitution of the CPA, the Association’s aim is ‘ to promote knowledge of the constitutional, legislative, economic, social and cultural aspects of parliamentary democracy with particular reference to the countries of the Commonwealth. ’

Main Objectives

During the 1[st] quarter of 2018 the Trustees approved a revised strategy covering the period 2018 – 2021.

The overarching objective for CPA in this period is to develop the programmes it delivers to support its members and re-establish its reputation as the leading parliamentary association. In addition to developing its programmes, communication and partnering with other organisations, this will require achievement of a range of operational objectives. The main objectives in the strategic plan and which formed the basis of organizational priorities in 2020 were:

  1. continue to design and deliver activities and programmes under the 9 Strands of the CPA Revised Programmes Strategy (introduced in 2016);

  2. be recognised as one of the leading Commonwealth parliamentary strengthening organisations to which its Members and other relevant, external stakeholders first turn to for advice, information and support or with which to partner;

  3. collaborate with other leading organisations, including Parliamentary bodies in delivering programmes and services;

  4. be established as an international organisation established under UK law and located in the UK;

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Commonwealth Parliamentary Association Annual report for the year ended 31 December 2020

  1. operate from offices appropriate to its needs, owned or rented by CPA or provided gratis by the UK Parliament;

  2. be financially sustainable, with diverse income streams and unpaid membership subscriptions reduced;

  3. have IT systems fit for purpose to support CPA’s efficient operations for the foreseeable future;

  4. have established a holistic way of working throughout the Secretariat, that ensures all parts of the organisation work together to achieve its aims;

  5. have established management practices that ensure that all staff develop and perform to their full potential.

During the year, the Covid-19 pandemic has resulted in significant changes to the way that many of the activities and programmes of the CPA have been carried out. In particular, programmes, meetings and conferences have all been carried out virtually and very successfully. However, the main objectives of the CPA have remained unchanged.

Each year, the Trustees review the objectives and activities to ensure that they continue to be relevant. In carrying out this review, the Trustees have considered the Charity Commission’s general guidance on public benefit when reviewing the aims and objectives that have been set, and in planning the Charity's future activities. In particular, the Trustees consider how planned activities contribute to the aims and objectives they have set.

Activities and Public Benefit

The Association carries out a wide range of activities in pursuit of its charitable aims and the Trustees consider that these activities, as summarised below, provide benefit both to the Association’s members and (indirectly) to the wider community in Commonwealth countries/dependencies.

In 2017, the CPA launched a new Policy Framework which is based on the Association’s mission statement. This is articulated in its current ‘ Statement of Purpose ’, and identifies its role in connecting and supporting Parliamentarians and their staff across the Commonwealth to identify and implement benchmarks of good governance and implement the enduring values of the Commonwealth to promote parliamentary democracy. The new Policy Framework proposes three Strategic Programme pillars which form the basis for all CPA’s work. These include: Parliamentary Benchmarking and Development; Public Outreach Activities; and Communications and Publishing.

In 2020, the CPA Headquarters Secretariat planned to continue to implement a revised programme, with particular focus on parliamentary development and benchmarking, post-election seminars and technical assistance programmes together with an emphasis on youth engagement through the CPA’s Commonwealth Day activities, Commonwealth Youth Parliament and CPA Roadshows for young people. However, as a result of the Covid-19 Pandemic, physical activities during 2020 have been severely restricted so a wide range of virtual activities have been organised very successfully.

Details are set out in full in the CPA’s Annual Report and Performance Review 2020 and the report outlines CPA activity in the three strategic pillars of the CPA Strategic Plan – Parliamentary Benchmarking and Development ( which includes three CPA networks – Commonwealth Women Parliamentarians, CPA Small Branches and Commonwealth Parliamentarians with Disabilities); Public Outreach; and Communications and Publishing . Further CPA activity is covered under the areas of CPA Branch Visits, CPA Regional Conferences and working with partner organisations.

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Commonwealth Parliamentary Association Annual report for the year ended 31 December 2020

The CPA’s Annual Report and Performance Review 2020 is composed of reports, analysis and monitoring and evaluation data captured for each of the CPA programmes and work strands throughout the year.

Strategic
Pillars		 Parliamentary
Benchmarking
and Development		 Public Outreach Communications
and Publishing
Strategic
Outcome		 Strong democratic
legislatures that adhere to
principles of good
governance		 CPA recognised as a global
resource centre for advice
and information on
parliamentary practices		 Greater awareness of the
Commonwealth, its values and
parliamentary democracy
Intermediate
Outcomes		 A strong and effective pool
of parliamentarians and
parliamentary staff across the
Commonwealth who are
better equipped on
fundamentals of
parliamentary practices and
procedures		 Increased awareness of the
role and value of
parliamentary democracy
and the role of Parliaments
in promoting these values		 Improved visibility and profile
of CPA
Increased awareness,
understanding and ownership
of CPA benchmarks		 Parliamentarians are
informed, included and
better equipped to engage in
international discussions on
trends and issues that have
an impact on parliamentary
democracy		 Increased sharing of knowledge
and best practices on good
governance and rule of law
among CPA membership
Technical assistance responds
flexibly to needs and
priorities of member
legislatures and 'Special
Interest Groups'		 Parliaments more
responsive to CPA outreach
activities		 CPA is a partner of choice in
parliamentary strengthening

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Commonwealth Parliamentary Association Annual report for the year ended 31 December 2020

FINANCIAL REVIEW

The total revenue for the financial year under review was £2,636,145 (2019: £2,835,653). Of this, the Association’s core funding streams were from Branch Membership fees (90%) and financial investments (7%) with the balance coming from other sources such as subscriptions for the Parliamentarian and Partnership income.

There was no Plenary Conference in 2020. The Covid-19 pandemic and resulting travel restrictions caused significant disruption in the deployment of CPA programmes, leading to a shift to online delivery. Hence, this has resulted in a surplus of £1,221,807. In 2019, the Plenary Conference was held in Kampala, Uganda and this together with additional costs incurred in human resource planning resulted in a deficit of £746,818.

Total revenue decreased by £199,508 when compared to the year ended 31 December 2019. Membership income decreased by £67,548, and income from Investments decreased by £47,640. CPA also received £54,606 in income from the Westminster Foundation for Democracy to fund Commonwealth Partnership for Democracy programmes compared to £137,196 the previous year.

Total operating costs during the reporting period were £1,548,711 (2019: £3,582,471), made up of the costs of raising funds , totalling £49,726 (3%), and direct charitable activities totalling £1,498,985 (97%). In 2019, these were £51,670 (1%) and £3,530,801 (99%) respectively. The decrease in total operating costs reported was due to no CPA Plenary Conference occurring in 2020, reduced legal and governance costs and a significant reduction in travel costs as a result of the Covid-19 pandemic restrictions.

At the end of the financial year the Association’s unrestricted reserves amounted to £2,372,927 (2019: £1,398,851) with free reserves, after deducting the value of tangible assets, amounting to £2,245,602 (2019: £1,336,812) which is in excess of the target in the reserves policy.

In addition to the General Reserves, both the Working Capital Trust Fund and the Conference Assistance Trust Fund (managed by Trustees under separate Trust Deeds), had total funds of £7,947,728 (2019: £7,699,997). Income from each Trust Fund is used for the benefit of the members in support of the wider objectives of the Association.

Financial Strategy

The Trustees agreed on the CPA financial strategy in South Africa in August 2013. The issues addressed included reserve levels, income generation, and financial and administrative control policies for the Association. Trustees have kept the strategy under review and in particular to ensure that it meets the wider strategic objectives of the CPA. The revised Strategic Plan covering the period 2018 – 2021 has further reinforced and informed the existing Financial Strategy.

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Commonwealth Parliamentary Association Annual report for the year ended 31 December 2020

Reserves Policy

In 2018 the Reserves Policy of the Association was reviewed and the Trustees agreed a change in policy to one that better addresses the likely risks and financial pressures faced by the CPA in the medium to long-term. Trustees have accordingly agreed a policy to retain unrestricted reserves at between 3 to 6 months planned operating expenditure.

As at December 2020, the Association held unrestricted reserves of £2,372,927. The Trustees note that this is significantly in excess of the required amount in the reserves policy. This figure will be kept under review and the Trustees will consider the scope for releasing funds from these reserves to meet the strategic priorities of the CPA. As a result of CPA’s plans agreed by the Trustees for 2020 it was anticipated that unrestricted reserves would have begun to move to within the range implied by the Reserves policy but as a consequence of the Covid -19 pandemic this has not occurred. However, it is expected that once travel restrictions are weakened, that the full range of physical activities including Plenary Conferences which will take place, will reduce the level of reserves in future.

Investment Policy

The CPA has investments in two trust funds under the guidance and supervision of the funds’ Trustees. Under the trust deeds the funds’ Trustees are mandated as the Secretary General, the Association’s Treasurer and another member of the CPA who is not a member of the Executive Committee. These Trustees are listed on page 7. The purposes of these funds are to promote knowledge and education about the constitutional legislatures within a parliamentary democratic framework, arrange study group meetings, seminars and conferences, and provide facilities for the exchange of visits between members of branches of the CPA.

The Trustees have the power to invest in such stocks, shares and investments as they see fit. The policy is to adopt a cautious-to-moderate risk investment strategy aimed at maximising income and capital growth. Within this strategy, the Trustees have set a target of exceeding the average market performance for a similar fund, based on the market value of the portfolio.

The Trustees have a formal Investment Policy Statement that:

Close Brothers Asset Management have been appointed to manage the trust funds. The Trustees met four times in 2020 to review the funds’ performance.

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Commonwealth Parliamentary Association Annual report for the year ended 31 December 2020

Investment Performance

The value of the Association’s listed investments decreased by £86,645 (1%) from £7,367,936 at 31 December 2019 to £7,281,291 as at the end of the reporting period. The Charity holds no unlisted funds.

The target total return on the Trustees’ portfolio of investments, within an agreed level of risk appetite, is 6% from 1 January 2020. This is equally apportioned between annual investment income (3%) and long-term capital appreciation (3%). At the Trustees’ meeting in November 2020, the Trustees have approved the Socially Responsible Portfolio proposed by Close Brothers with an annual forecasted yield of 2.1%. The targeted total return of the Trustees’ portfolio remained at 6%.

As a result of the Covid-19 pandemic, the stock markets have experienced significant volatility and future major fluctuations remain a distinct possibility. The Trustees will continue to monitor the performance of the investments and it is encouraging to note that the portfolio recovered very well in latter months of the year from the significant market falls experienced in the earlier part.

Fundraising

Following the implementation of the Charities (Protection and Social Investment) Act 2016 , the Trustees have reviewed its fundraising activities and confirms that it complies with the regulation. There were no fundraising activities and the Association did not make use of any external fundraisers.

PLANS FOR FUTURE PERIODS

The current Strategic Plan, covering the period from 2018 – 2021, was agreed by Trustees in the first quarter of 2018.

The CPA will continue to pursue its key aims of holding conferences and seminars; disseminating information on Parliamentarians and political issues; organising international exchanges among Members and officials of Parliaments and Legislatures; and assisting newly emerging Commonwealth democracies.

Following the outbreak of the Covid-19 pandemic all activities of the CPA were reviewed and activities have continued remotely with staff working from home with the appropriate support and guidance. Operational plans, related budgets and forecasts have all been reviewed and updated for the years 2020 - 2022.

The CPA Headquarters Secretariat continuously strives to ensure that it can serve its membership to the highest possible standards as well as remaining a relevant and valuable service. To that effect, the Secretariat continues to review its programme, communications and outreach activities and delivery methodology to ensure it can continue to provide a full-spectrum service whilst the Covid-19 global pandemic remains in place.

With the likelihood that Covid-19 will continue to impact on countries for a number of years the CPA Headquarters Secretariat will be considering in-depth its future performance and outputs. As part of that process, the CPA will be reviewing if it is doing everything possible within the conditions and resources of the Association to provide support to its Members and Branches. For example, moving to providing long-term online services, the development of remote resources and platforms as well as harnessing technology for maximum impact.

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Commonwealth Parliamentary Association Annual report for the year ended 31 December 2020

The impact on revenue, which relates predominantly to Membership fees, is not expected to be significant overall as the CPA will ensure members continue to receive a full range of services and support, which, in the current climate may well be even more valuable than in the past. However, it is likely some Branches may take longer to pay their fees than in the past as a result of restricted working arrangements currently in place as a result of Covid-19.

A new Strategic Plan is being prepared to cover 2022 -2025. This plan is being produced after wide ranging consultations have taken place, both internally and externally to ensure it meets the needs of the members.

Operational costs may well reduce compared to historic figures as a result of a reduction in overseas travel in the short to medium term.

Following the above review, and despite future plans still being, to a degree, uncertain as a result of Covid-19, the Trustees consider that the Association’s assets, and in particular, liquid funds are adequate to meet its annual obligations in the next two years.

Auditors

Buzzacott LLP, Registered Auditors, have indicated their willingness to continue in office and it is proposed that

they be re-appointed auditors for the ensuing year.

The Executive Committee approved this report on the 26 March 2021.

Signed on behalf of the Executive Committee:

Hon. Emilia Monjowa Lifaka, MP Chairperson of the Executive Committee

Mr Stephen Twigg Secretary-General

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Independent auditor’s report to the trustees of Commonwealth Parliamentary Association

Opinion

We have audited the financial statements of Commonwealth Parliamentary Association (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, and the related notes to the financial statements, including a summary of 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 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. 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 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.

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Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report and performance review 2020, and the annual report and financial statements, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and 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.

Matters on which we are required to report by exception

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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, 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 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 charity 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

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Auditor’s responsibilities for the audit of the financial statements (continued)

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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards

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Auditor’s responsibilities for the audit of the financial statements (continued)

also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees 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 trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP 16 April 2021 Statutory Auditor 130 Wood Street London EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Page 19

Commonwealth Parliamentary Association Statement of financial activities for the year ended 31 December 2020

Note
Unrestricted
funds
£
Income from:
Investments
2
29,063
Charitable activities
Branch membership fees
2,381,673
Subscriptions for the Parliamentarian
2,849
Partnership income
3
-
Other
329
Total
2,413,914
Expenditure on:
Raising funds
Investment Management Costs
-
Charitable activities
Parliamentary Benchmarking and
Development
1,087,165
Public Outreach
65,589
Communications and Publishing
287,084
Total
6
1,439,838
Net income/(expenditure) before gains on
investments
974,076
Net gains on investments
12
-
Net movement in funds
974,076
Reconciliation of funds
Balance brought forward
17
1,398,851
Balance carried forward
17
2,372,927		 Restricted
funds
£
167,625
-
-
54,606
-
222,231
49,726
59,147
-
-
108,873
113,358
134,373
247,731
7,699,997
7,947,728		 Total
2020
£
196,688
2,381,673
2,849
54,606
329
2,636,145
49,726
1,146,312
65,589
287,084
1,548,711
1,087,434
134,373
1,221,807
9,098,848
10,320,655		 Total
2019
£
244,328
2,449,221
4,665
137,196
243
2,835,653
51,670
2,844,367
342,463
343,971
3,582,471
(746,818)
843,035
96,217
9,002,631
9,098,848

All recognised gains and losses have been included in the SOFA. All activities are continuing.

Page 20

Commonwealth Parliamentary Association Balance sheet as at 31 December 2020


Note
Fixed asset
Tangible assets
11
Investments
12
Current assets
Debtors
13
Short term deposit
14
Cash at bank and in hand
Creditors:amounts falling due within one
year
15
Net current assets
Net assets
Funds
Unrestricted
General fund
17
Restricted
Conference assistance fund
17
Working capital fund
17		 2020
£
703,111
2,973,681
284,152
3,960,944
(1,048,905)		 2020
£
127,325
7,281,291
7,408,616
2,912,039
10,320,655
2,372,927
5,109,405
2,838,323
10,320,655		 2019
£
115,377
2,262,623
637,070
3,015,070
(1,346,197)		 2019
£
62,039
7,367,936
7,429,975
1,668,873
9,098,848
1,398,851
4,961,528
2,738,469
9,098,848

The financial statements were approved, and authorised for distribution, by the Executive Committee on the 26 March 2021 and signed on its behalf by:

…………………………………………..

…………………………………

Hon. Emilia Monjowa Lifaka, MP Chairperson of the Executive Committee

Mr Stephen Twigg Secretary-General

Page 21

Commonwealth Parliamentary Association

Statement of cash flows for the year ended 31 December 2020

Cash flows from operating activities
Cash flows from investing activities
Interest and dividends
Purchase of property, plant and equipment
Purchase of investments
Proceeds from the sale of investments
Movement in investment cash account
Net cash provided by investing activities
Change in cash and cash equivalents in the reporting period
Cash and cash equivalents at the beginning of the reporting period
Cash and cash equivalents at the end of the reporting period
NOTES TO THE CASH FLOW STATEMENT
Reconciliation of Net Movement in Funds to Net Cash Flow from
Operating Activities
Net movement in funds
Depreciation charges
(Increase)/Decrease in debtors
(Decrease)/Increase in creditors
Interest and dividends
(Gains) on investments
Net cash provided by operating activities
Analysis of Cash and Cash Equivalents
Cash at bank and in hand
Short term deposits		 2020
£
36,219
196,688
(95,785)
(1,809,746)
2,046,922
(16,158)
321,921
358,140
2,899,693
3,257,833
2020
£
1,221,807
30,499
(587,734)
(297,292)
(196,688)
(134,373)
36,219
2020
£
284,152
2,973,681
3,257,833		 2019
£
212,249
244,328
(84,139)
(2,163,556)
2,028,190
151,650
176,473
388,722
2,510,971
2,899,693
2019
£
96,217
22,497
458,802
722,096
(244,328)
(843,035)
212,249
2019
£
637,070
2,262,623
2,899,693

Page 22

Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

1. Summary of Accounting Policies

(a) Basis of accounting

The financial statements have been prepared under the historical cost convention with items recognized at cost or transaction value unless otherwise stated in these notes to the financial statements. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), Charities SORP (FRS102), and the Charities Act 2011.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn

The financial statements are presented in sterling and are rounded to the nearest pound. The charity constitutes a public benefit entity as defined by FRS 102.

(b) Income recognition

All membership fee income is recognised once the Charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably. In the event of branch suspension, we stop recognising its income.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably when notification is received of the interest paid or payable by the bank. Dividends are recognised when notification is received of the dividend due.

(c) Expenditure recognition

Liabilities are recognised as expenditure when there is a legal or constructive commitment, it is probable that settlement will be required, and the amount of the obligation can be measured reliably. All expenditure is accounted for on an accruals basis.

(d) Allocation of support and governance costs

Support costs are allocated between governance costs and other support costs. Governance costs comprise all costs involving the public accountability of the Charity and its compliance with regulation and good practice. These costs include costs related to statutory audit and legal fees together with an apportionment of overhead and support costs.

(e) Pension costs

The Secretariat operates a defined contribution pension scheme for the benefit of its employees. The net assets of the fund are held separately from those of the Charity. Contributions payable are charged to the SOFA in the year in which they are incurred.

Page 23

Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

(f) Employee benefits

(g) Fund accounting

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by the Charity’s funding partners. Note 17 sets out the aim and use of each restricted fund.

(h) Operating leases

Rentals payable under operating leases, where substantially all the risks and rewards of ownership remain with the lessor, are charged to the SOFA in the year in which they fall due.

(i) Subventions to Branches

Branches’ outstanding travel claims are accrued at the end of the financial year. If after one year from the date of accrual such claims have not been made, the accrued amounts are written back.

(j) Foreign exchange

Balances denominated in foreign currencies are translated into Pounds Sterling at the rate of exchange prevailing at the balance sheet date. Financial transactions are translated at the rate of exchange prevailing on the date the transaction is processed.

(k) Fixed asset investments

Investments are a form of basic financial instrument and are recognised initially at their transaction value and measured subsequently at their fair value as at the balance sheet date using the closing quoted market price. The SOFA includes the net gains and losses arising on revaluation and disposals throughout the year.

(l) Tangible fixed assets and depreciation

All assets costing more than £350 are capitalised and valued at historical cost. Depreciation is charged on IT and other equipment on a straight-line basis over their estimated useful life of three years from the year of acquisition.

(m) Realised gains and losses

All gains and losses are taken to the SOFA as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the SOFA.

Page 24

Commonwealth Parliamentary Association Notes to the financial statements for the year ended 31 December 2020

(n) Stocks

Stocks are not included in the balance sheet and costs are written off as incurred.

(o) Debtors

Branch fees and other debtors are recognised at the settlement amount due, less any provision for bad or doubtful amount. Such provisions are specific and applied in a consistent manner based on a debts aging and other factors affecting potential recoverability such as the status of the branch. Prepayments are valued at the amount prepaid net of any trade discounts due.

(p) Creditors and provisions

Creditors and provisions are recognised where the Charity has a present obligation resulting from a past event that probably will 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 recognised at their settlement amount after allowing for any trade discounts due.

(q) Cash and cash equivalents

Cash and cash equivalents in the cash flow statement comprise cash in hand, balances with banks, investments in money market instruments representing short-term, highly liquid investments that are readily convertible to known amounts of cash.

(r) Going concern and Covid-19 Pandemic

The Trustees consider that there are no material uncertainties about the Charity’s ability to continue as a going concern. With respect to the next reporting period, the most significant areas of uncertainty that affect the Charity’s assets relates to the Covid-19 pandemic and the level of investment return and the performance of the investment markets (see the investment policy and the risk management sections of the Trustees’ annual report for more information).

Following the outbreak of the Covid-19 pandemic all activities of the CPA have been examined and activities have continued remotely with staff working from home with the appropriate support and guidance. Operational plans, related budgets and forecasts have all been reviewed and updated for the years 2020- 2022.

Following the above review, and despite future plans still being, to a degree, uncertain as a result of Covid-19, the Trustees consider that the Association’s assets, and in particular, liquid funds are adequate to meet its annual obligations in the next two years.

Page 25

Commonwealth Parliamentary Association Notes to the financial statements for the year ended 31 December 2020

Whilst changes to, and timing of, activities have had to take place, the financial impact on the CPA has been limited. The impact on revenue, which relates predominantly to Membership fees, is not expected to be significant overall as the CPA will ensure members continue to receive a full range of services and support, which, in the current climate may well be even more valuable than in the past. However, it is likely some Branches may take longer to pay their fees than in the past as a result of restricted working arrangements currently in place as a result of Covid-19 and therefore, where necessary, appropriate support will be given to those Branches concerned. Operational costs may well reduce compared to historic figures as a result of a reduction in overseas travel in the short to medium term.

As a result of the above review of the Charity’s financial position, reserves levels and future plans, the Trustees are of the view that the Charity remains a going concern in respect to a period of one year from the date of approval of these financial statements, notwithstanding the uncertainties outlined above.

(s) Judgements and estimates

Judgements made by the Trustees, in the application of these accounting policies that have significant effect on the financial statements and estimates with a significant risk of material adjustment in the next reporting period are deemed to be in relation to the valuation of investments and the provision for doubtful debts. The CPA HQ Secretariat is currently hosted by the UK Parliament on the Parliamentary Estate. The Trustees do not believe that the value of this benefit, although a Gift in Kind, can be measured with sufficient accuracy.

In addition to the above, the full impact following the emergence of the global coronavirus pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications for the CPA's activities, members, suppliers and the wider economy. Estimates used in the financial statements, are subject to a greater degree of uncertainty and volatility.

As set out in these accounting policies under “going concern and Covid-19 pandemic”, the trustees have considered the impact of the pandemic on the charity and have concluded that it is appropriate for the CPA to continue to prepare its financial statements on the going concern basis.

Page 26

Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

2. Investment Income

2020
Unrestricted
funds
£
Dividends – equities
-
Interest – fixed interest securities
-
Interest on cash and money market deposits
29,063
29,063
2019
Unrestricted
funds
£
Dividends – equities
-
Interest – fixed interest securities
-
Interest on cash and money market deposits
26,854
26,854		 Restricted
funds
£
143,396
20,469
3,760
167,625
Restricted
funds
£
176,659
37,130
3,685
217,474		 Total
2020
£
143,396
20,469
32,823
196,688
Total
2019
£
176,659
37,130
30,539
244,328

Investment income consists of dividend & interest received from investments, bank interest and interest earned on term deposits.

3. Partnership Income

Westminster Foundation for Democracy – CP4D 2020
£
54,606
54,606		 2019
£
137,196
137,196

Page 27

Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

4. Staff Costs

Note
Salaries and wages
Redundancy costs
Social security costs
Pension costs
5		 Total
2020
£
747,439
-
68,973
44,080
860,492		 Total
2019
£
734,678
115,751
77,590
57,821
985,840

The Benefits-in-kind payments of £19,221 (2019: £15,502) cover qualifying employees’ relocation, home leave, health & travel insurance and death-in-service expenses to the Association. These payments are covered by a PAYE Settlement Agreement with HM Customs and Excise.

The average number of employees during the year was:

The average number of employees during the year was:
Management
Charitable activities
Key management personnel
Secretary General
Acting Secretary General
Deputy Secretary General and Director of Operations
Finance Director		 2020
No.
3
15
18
2020
£
49,127
70,303
35,692
52,216
207,338		 2019
No.
3
14
17
2019
£
168,927
33,201
58,183
51,461
311,772

The key management personnel comprised members of the Senior Management Team (SMT). The SMT is made up of the Secretary General, Acting Secretary General, Deputy Secretary General & Director of Operations and Finance Director.

Page 28

Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

4. Staff Costs (continued)

Staff receiving emoluments in excess of £60,000, (exclusive of pension contributions paid by the CPA Secretariat), during the year were as follows:

£60,000 - £70,000
£70,000 - £80,000
£90,000 - £100,000
£130,000 - £140,000		 Total
2020
No.
2
-
1
-
3		 Total
2019
No.
1
1
-
1
3

All of the employees whose emoluments were greater than £60,000 are part of the personal pension scheme and the CPA Secretariat paid £9,691 (2019: £26,702) for these employees.

A total of £42,250 was paid for 8 Parliaments of members of the Executive Committee for their travel and accommodation to Coordinating Committee meetings (2019: £308,048 for 38 Parliaments of members of the Executive Committee). None of the Executive Committee members received remuneration or benefits from employment with the CPA (2019: none).

5. Pension scheme

The CPA Secretariat’s Personal Pension Scheme (“Scheme”) for employees is with Scottish Widows, which commenced on 1[st] August 2010. The Scheme is funded by contributions from Scheme members and the CPA Secretariat.

The Scheme is operated on a Personal Pension Scheme basis and is not a defined benefits final salaries arrangement. Contributions are invested with Scottish Widows under the pension rules to produce the maximum fund of monies at retirement for each individual member. Members can contribute towards the cost of their benefits at rates between the range of 2-15% of annual salary. CPA Secretariat pays 16%.

Page 29

Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

5. Pension scheme (continued)

In 2017, in response to the UK Pension Act 2008, CPA Secretariat registered for automatic enrolment. From April 2017 staff members can contribute within this additional scheme, towards the cost of their benefits at rates of 3% of annual salary. CPA Secretariat pays 5%.


Total Premiums paid
Less: Contributions from employees
Employer Contributions
6.
Total Expenditure
2020
Note
Cost of generating funds
Investment management costs
Cost of charitable activities
Parliamentary Benchmarking and
Development
8
Public Outreach
9
Communications and Publishing
10		 Direct
costs
£
49,726
563,296
23,127
120,822
756,971		 Support
costs
£
-
583,016
42,462
166,262
791,740		 Total
2020
£
71,872
(27,792)
44,080
Total
2020
£
49,726
1,146,312
65,589
287,084
1,548,711		 Total
2019
£
71,496
(13,675)
57,821

(Note 6a)

Page 30

Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

6.
Total Expenditure (continued)
2019
Note
Cost of generating funds
Investment management costs
Cost of charitable activities
Parliamentary Benchmarking and
Development
8
Public Outreach
9
Communications and Publishing
10		 Direct
costs
£
51,670
1,629,352
120,730
167,764
1,969,516		 Support
costs
£
-
1,215,015
221,733
176,207
1,612,955
(Note 6a)		 Total
2019
£
51,670
2,844,367
342,463
343,971
3,582,471

6a. Allocation of Support Costs

2020
Cost of charitable
activities
Parliamentary
Benchmarking and
Development
Public Outreach
Communications and
Publishing		 Staff
costs
£
HR
costs
£
IT support
costs
£
Facilities
£
Depreciation
£
Governance
£
345,807
43,377 38,875
38,160
22,459
94,338
25,186
3,159
2,831
2,779
1,636
6,871
98,616
12,370 11,086
10,882
6,405
26,903
469,609
58,906 52,792
51,821
30,500 128,112		 Total
2020
£
583,016
42,462
166,262
791,740

Page 31

Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

6a. Allocation of Support Costs (continued)

2019
Cost of charitable
activities
Parliamentary
Benchmarking and
Development
Public Outreach
Communications and
Publishing		 Staff
costs
£
HR
costs
£
IT support
costs
£
Facilities
£
Depreciation
£
Governance
£
Total
2019
£
362,801 116,804 40,252 204,376
16,947
473,835 1,215,015
66,209
21,316
7,346
37,297
3,093
86,472
221,733
52,616
16,939
5,838
29,640
2,457
68,717
176,207
481,626 155,059 53,436 271,313
22,497
629,024 1,612,955

Support costs are allocated between activities based on the proportion of direct expenditure attributable to each activity.

7. Governance

Costs classified as governance relate to the general running of the Charity and included operations of the Board of Trustees and those addressing constitutional, audit and other statutory matters, and are made up of the following:

External Auditor’s remuneration
-
Statutory audit
-
Other services
Working group for programmes review
Coordinating Committee meetings
Legal & professional fees
Consultants’ fees
Officers travel
Overseas travel		 2020
£
17,640
-
-
40,316
17,753
48,934
2,521
948
128,112		 2019
£
15,600
2,520
36,952
39,272
394,588
89,750
17,598
32,744
629,024

Page 32

Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

8. Parliamentary Benchmarking and Development

Post-Election Seminars
Technical Assistance Programmes
Commonwealth Women Parliamentarians
Small Branches Committees Workshop
Parliamentarians Disabilities Network
Commonwealth Heads of Governments Meeting
Commonwealth Fundamentals Course
CPA Masterclass
Commonwealth Partnership for Democracy
Commonwealth Regional Conferences
Annual Parliamentary and Mid-year Executive Conference
Direct staff costs		 2020
£
4,513
-
16,551
131
(4,332)
21
177,354
7,380
65,544
(9,461)
16,489
289,106
563,296		 2019
£
(1,283)
(50,839)
52,387
33,957
13,696
-
230,838
(950)
137,196
48,015
786,518
379,817
1,629,352

9. Public Outreach

Commonwealth Day
Commonwealth Youth Parliament
CPA Roadshows for Schools and Universities
Direct staff costs		 2020
£
-
1,943
128
21,056
23,127		 2019
£
14,653
36,531
232
69,314
120,730

Page 33

Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

10. Communications and Publishing

The Parliamentarian
Printing
Distribution
Fees to contributors
Annual Report

CPA Website
Books, periodicals and information
Direct staff costs
Tangible assets
Tangible fixed assets comprise of computer and office equipment.
Cost
At 1 January
Additions
Eliminated on disposal
At 31 December
Depreciation
At 1 January
Charge for the year
Eliminated on disposal
At 31 December
Net book value at 31 December		 2020
£
15,678
14,498
2,325
32,501
-

5,484
391
82,446
120,822
2020
£
85,137
95,785
(998)
179,924
23,098
30,499
(998)
52,599
127,325		 2019
£
46,169
53,245
2,400
101,814
3,000
7,867
-
55,083
167,764
2019
£
14,323
84,139
(13,325)
85,137
13,926
22,497
(13,325)
23,098
62,039

11. Tangible assets

Tangible fixed assets comprise of computer and office equipment.

Page 34

Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

12. Investments
Market value at 1 January
Additions
Disposal proceeds
Investments cash account movement
Realised (losses)
Unrealised gains
Market value at 31 December
Historical cost value at 31 December		 2020
£
7,367,936
1,809,746
(2,046,922)
16,158
(175,717)
310,090
7,281,291
6,079,241		 2019
£
6,541,185
2,163,556
(2,028,190)
(151,650)
(91,217)
934,252
7,367,936
6,475,129

The total unrealised gains at 31 December 2020 constitute movements on the revaluation and are as follows:

Unrealised gains included above:
On investments
Total unrealised gains at 31 December
Reconciliation of movements in unrealised gains/(losses):
Unrealised gains/(losses) at 1 January
(Less): in respect to disposal in the year
Add: net gains arising on revaluation in the year
Total unrealised gains at 31 December
Analysis of investments assets
Fixed
interest
securities
Equities
£
£
2020
1,112,082
5,976,522
_
_
2019
1,382,781
5,808,625
_
_		 2020
£
1,202,050
1,202,050
892,807
(847)
310,090
1,202,050
Cash
£
192,687
_
176,530
_		 2019
£
892,807
892,807
(41,249)
(196)
934,252
892,807
Total
£
7,281,291
_
7,367,936
_

The underlying assets contained within the various funds invested in by the Charity are recognised on a listed stock exchange.

Page 35

Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

13.
Debtors
Branch fees
Less: Provision for doubtful debts
Net branch fees
Staff advances
Other debtors and prepayments
14.
Short term deposit investment
Close Brothers business notice account and term deposit		 2020
£
1,172,279
(740,515)
431,764
2,300
269,047
703,111
2020
£
2,973,681
2,973,681		 2019
£
804,015
(768,554)
35,461
4,320
75,596
115,377
2019
£
2,262,623
2,262,623

15. Creditors: Amounts Falling Due Within One Year

Note
Trade creditors
General accruals
Parliamentary Benchmarking and Development
accruals
Tax and social security
Deferred income
16		 2020
£
26,531
101,984
43,000
41,404
835,986
1,048,905		 2019
£
142,791
381,664
159,712
90,288
571,742
1,346,197

Page 36

Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

16. Deferred income

Branch fees - 2020
Branch fees - 2019		 At
1 Jan
2020
£
Released to
income
£
571,742
(571,742)
571,742
(571,742)
At
1 Jan
2019
£
Released to
income
£
62,965
(62,965)
62,965
(62,965)		 Deferred
in the
year
£
835,986
835,986
Deferred
in the
year
£
571,742
571,742		 At
31 Dec
2020
£
835,986
835,986
At
31 Dec
2019
£
571,742
571,742

This primarily represents 2021 memberships received in 2020. They are treated as deferred income and will be released as income in 2021 in line with the membership period.

17. Movement in funds

At 1 Jan
Income
Expenditure		 Gains At 31 Dec
2020 (Losses)/ 2020
Transfers
£ £ £ £
 £
CPA Headquarters Secretariat
Unrestricted Funds
General reserve 1,398,851 2,413,914 (1,439,838) - 2,372,927
Restricted Funds
Westminster Foundation for
Democracy - 54,606 (54,606) - -
Conference Assistance Fund (CAF) 4,961,528 107,478 (39,285) 79,684 5,109,405
Working Capital Fund (WCF) 2,738,469 60,147 (14,982) 54,689 2,838,323
____ ____ ____ ____ ____
Total CAF & WCF restricted funds 7,699,997 222,231 (108,873) 134,373 7,947,728
____ ____ ____ ____ ____
Total funds 9,098,848 2,636,145 (1,548,711) 134,373 10,320,655
____ ____ ____ ____ ____

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Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

17. Movement in funds (continued)

At 1 Jan
Income
Expenditure		 Gains At 31 Dec
2019 (Losses)/ 2019
Transfers
£ £ £ £
 £
CPA Headquarters Secretariat
Unrestricted Funds
General reserve 2,003,078 2,480,983 (3,085,210) - 1,398,851
Restricted Funds
Westminster Foundation for
Democracy - 137,196 (137,196) - -
Conference Assistance Fund (CAF) 4,548,272 141,149 (272,124) 544,231 4,961,528
Working Capital Fund (WCF) 2,451,281 76,325 (87,941) 298,804 2,738,469
____ ____ ____ ____ ____
Total CAF & WCF restricted funds 6,999,553 354,670 (497,261) 843,035 7,699,997
____ ____ ____ ____ ____
Total funds 9,002,631 2,835,653 (3,582,471) 843,035 9,098,848
____ ____ ____ ____ ____

Unrestricted funds

In 2018, to better addresses the likely risks and financial pressures faced by the CPA in the medium to longterm, the Trustees have accordingly agreed a policy to retain all unrestricted reserves at between 3 to 6 months planned operating expenditure.

Restricted funds

Westminster Foundation for Democracy (WFD)

The object of the fund is to work with parliaments in Commonwealth Member States across Sub-Saharan Africa and Asia to improve representation of women, young people with disabilities and the LGBT+ community in the democratic process.

Conference Assistance Fund (CAF)

The object of the fund is to advance the charitable purposes of the Commonwealth Parliamentary Association as directed by the Trust Deed by applying the income or such parts of the capital as the Trustees may deem fit which are to provide financial aid and assistance to assist Branches to organise, constitute and hold plenary conferences and to assist Branches to facilitate the attendance of Regional Representative and/or delegates at plenary conferences. Expenditure is restricted to fulfilling these aims.

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Commonwealth Parliamentary Association

Notes to the financial statements for the year ended 31 December 2020

17. Movement in funds (continued)

Working Capital Fund (WCF)

The object of the fund is to advance the charitable purposes of the Commonwealth Parliamentary Association as directed by the Trust Deed by applying the income or such parts of the capital as the Trustees may deem fit which are to provide financial aid to host Branches and Parliamentarians officials to organise educational seminars in accordance with the objects of the Association on parliamentary practice and procedure. Expenditure is restricted to fulfilling these aims.

18. Analysis of net assets between funds

Unrestricted
Funds
2020
£
Tangible fixed assets
127,325
Fixed asset investment
-
Current assets
3,281,293
Current liabilities
(1,035,691)
2,372,927
Unrestricted
Funds
2019
£
Tangible fixed assets
62,039
Fixed asset investment
-
Current assets
2,617,302
Current liabilities
(1,280,490)
1,398,851		 Restricted
Funds
2020
£
Total
Funds
2020
£
-
127,325
7,281,291
7,281,291
679,651
3,960,944
(13,214) (1,048,905)
7,947,728
10,320,655
Restricted
Funds
2019
£
Total
Funds
2019
£
-
62,039
7,367,936
7,367,936
397,768
3,015,070
(65,707) (1,346,197)
7,699,997
9,098,848		 Restricted
Funds
2020
£
Total
Funds
2020
£
-
127,325
7,281,291
7,281,291
679,651
3,960,944
(13,214) (1,048,905)
7,947,728
10,320,655
Restricted
Funds
2019
£
Total
Funds
2019
£
-
62,039
7,367,936
7,367,936
397,768
3,015,070
(65,707) (1,346,197)
7,699,997
9,098,848
9,098,848

19. Related parties’ transaction

Other than transactions with key management personnel as disclosed in note 4, there have been no related party transactions in the reporting period that require disclosure.

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Commonwealth Parliamentary Association Notes to the financial statements for the year ended 31 December 2020

20. Comparative statement of financial activities

Note
Unrestricted
funds
£
Income from:
Investments
2
26,854
Charitable activities
Branch membership fees
2,449,221
Subscriptions for the Parliamentarian
4,665
Partnership income
3
-
Other
243
Total
2,480,983
Expenditure on:
Raising funds
Investment Management Costs
-
Charitable activities
Parliamentary Benchmarking and
Development
2,398,776
Public Outreach
342,463
Communications and Publishing
343,971
Total
6
3,085,210
Net (expenditure)/income before
gains/(losses) on investments
(604,227)
Net gains/(losses) on investments
12
-
Net movement in funds
(604,227)
Reconciliation of funds
Balance brought forward
17
2,003,078
Balance carried forward
17
1,398,851		 Restricted
funds
£
217,474
-
-
137,196
-
354,670
51,670
445,591
-
-
497,261
(142,591)
843,035
700,444
6,999,553
7,699,997		 Total
2019
£
244,328
2,449,221
4,665
137,196
243
2,835,653
51,670
2,844,367
342,463
343,971
3,582,471
(746,818)
843,035
96,217
9,002,631
9,098,848

21. Post balance sheet events

As a result of the Covid-19 pandemic, the stock markets have experienced significant volatility and future major fluctuations remain a distinct possibility. The Trustees will continue to monitor the performance of the investments.

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