Charity Number 278257
Annual Report and Accounts Year ended 30 June 2023
The Police Foundation Annual Report and Accounts Year ended 30 June 2023
| Contents | |
|---|---|
| Page | |
| Annual Report of the Trustees | 3 - 10 |
| Independent Examiner’s Report | 11 |
| Statement of Financial Activities | 12 |
| Balance Sheet | 13 |
| Cash flow Statement | 14 |
| Notes to the Financial Statements | 15 - 28 |
Page 1
The Police Foundation Annual Report of the Trustees Year ended 30 June 2023
Reference and administrative information
Contact details
Address 124 City Road London EC1V 2NX Web Site www.police-foundation.org.uk
Trustees and Officers
Trustees Sir William Jeffrey KCB (Chairman) The Rt. Hon. Sir John Wheeler JP DL (Vice Chairman) Mrs Mary Calam Lord Dholakia of Waltham Brooks PC OBE DL Professor Nicholas Fyfe Sir David Garrard Professor Martin Innes Dame Sara Thornton CBE QPM Mr Stephen Rimmer CB Mr Michael Cunningham CBE QPM Mr Andrew Tivey (appointed 14 November 2022) Mr Hugh Sherriffe (appointed 2 March 2023) Director Dr Richard G Muir Professional Advisers Independent Examiners Nyman Lisbon Paul LLP 124 Finchley Road London NW3 5JS Solicitors Bates Wells Braithwaite 10 Queen Street Place London EC4R 1BE Bankers HSBC UK Bank Plc 129 New Bond Street London W1S 1EA Investment Advisers Investec Wealth & Investment Limited 30 Gresham Street London EC2V 7QN
Page 2
The Police Foundation Annual Report of the Trustees (continued) Year ended 30 June 2023
Trustees’ Report
The Trustees of the Police Foundation present their Annual Report for the year ended 30 June 2023 and the financial statements for that year, prepared in accordance with the Charities Act 2011 and the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP) (FRS102).
The Police Foundation is a registered charity (number 278257). Its address is shown on page 2.
Trustees
The names of the Trustees who served during the year ended 30 June 2023 are listed on page 2.
Structure, governance and management
Governing document
The Police Foundation is a Charitable Trust governed by its Trust Deed dated 9 July 1979. Following discussion with the Charity Commission, the Trust Deed was most recently updated on 11 July 2007.
Governance and management
The Board of Trustees is responsible for the overall governance of the Foundation. The Board meets formally at least twice a year. There were four meetings during the year ended 30 June 2023.
The existing Trustees have the power to appoint new Trustees, and the total number shall not be more than eighteen or less than eight. Each Trustee may serve up to two consecutive four-year terms of office, and thereafter may be reappointed by formal Board resolution for such period as the meeting may resolve.
Any business requiring the involvement of Trustees between Board meetings is conducted through appropriate sub-committees of Trustees, with any decisions required being formally ratified via postal or other means of communication. The routine management of the Foundation is the responsibility of the Director, who reports directly to the Chairman of the Board of Trustees. The Trustees employ a small central staff.
Recruitment, induction and training of Trustees
The Foundation’s Trustees are appointed by resolution of the Board following due consideration of nominations received, based on relevant attributes including specialist skills and experience. In addition to meeting key members of the Foundation’s staff, new Trustees are provided with an induction pack comprising information on Trustees’ responsibilities, a copy of the Trust Deed, the latest Annual Report and Accounts, minutes of Trustees’ meetings, and relevant information on the Foundation’s current work programme. All Trustees are encouraged to attend relevant seminars and Trustee training courses.
Policy for the remuneration of key management personnel
The Foundation’s remuneration policy for all staff is decided by the Trustees. Remuneration is based on the market value for each role. Salary reviews are held on an annual basis. The charity is accredited with the Living Wage Foundation.
Public benefit
The Trustees have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under The Charities Act 2011. The charity is a Public Benefit Entity. The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Foundation’s aims and objectives and in planning future activities.
Page 3
The Police Foundation Annual Report of the Trustees (continued) Year ended 30 June 2023
Objects, aims and principal activities
Who we are
The Police Foundation is the UK’s policing think tank. We are the only independent think tank in the UK focused exclusively on improving policing. Our mission is to generate evidence and develop ideas which deliver better policing and a safer society. We do this by producing trusted, impartial research, by facilitating informed public debate about policing and by working with the police and their partners to create change.
Objects
The objects of the Police Foundation, as set out in the Trust Deed are:
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the advancement and promotion of efficient and effective policing; and
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to undertake and promote study and research into the methods, organisation and effectiveness of the police and the training of police officers, and to publish the useful results of such study and research.
Our mission
The Police Foundation has three main aims:
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to understand how policing can become more effective, efficient and legitimate;
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to generate new ideas for how the police can keep citizens safe in a rapidly changing world;
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to facilitate informed public debate about policing.
Our mission is realised by:
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undertaking credible, high-quality applied research of direct relevance to policy and practice.
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hosting events into specific policing and crime reduction issues.
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offering training and consultancy to help the police and others transfer evidence and knowledge into policy and practice.
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communicating our ideas to a wider audience through our networks in policing and beyond and through our use of print, broadcast and digital media.
Page 4
The Police Foundation Annual Report of the Trustees (continued) Year ended 30 June 2023
Review of the year ended 30 June 2023
Tackling online fraud
In 2023 the Police Foundation, in partnership with Crest Advisory and Birkbeck University, launched an ambitious programme of research aimed at:
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Furthering our understanding of the online fraud problem, specifically the nature of the demand on all areas of public service, including law enforcement, victim care and public protection.
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Exploring the challenges and opportunities for developing crime controls and effective victim services across policing and the wider public, private and third sectors.
This research programme will develop new ways of organising data and knowledge about online fraud, assess the impact of online fraud on victims, understand more about online fraud offenders, explore the importance of online anonymity in committing fraud and develop a new policy and practice agenda.
Policing and young adults
Since November 2020 the Police Foundation has been working on a project, funded by the Barrow Cadbury Trust, to work in collaboration with police practitioners to change the way in which young adults are policed. The project is informed by a growing evidence base that the policing of 18–25-year-olds needs a distinct approach. Young adults constitute less than 10 per cent of the UK population but make up to 30-40 per cent of all police cases. Evidence clearly shows that young adults do not reach full developmental maturity until age 25, and this lack of maturity can lead to unnecessary risk taking and impulsive behaviour.
Together with Revolving Doors Agency, the Police Foundation has launched a Knowledge Exchange Network that brings together police Inspectors and Chief Inspectors from across England and Wales to co-create new and better ways of policing young adults aged 18-25. This Network provides police with peer-to-peer learning and support, recognising the wealth of knowledge and expertise among police officers. Inspectors and Chief Inspectors across police services across England and Wales are able to share evidence and tackle difficult issues. The focus is on upscaling innovation and practices that are evidence-based and that can become mainstream.
The project also involves the Police Foundation working alongside police force areas to trial new approaches in practice. In 2022/23 we have been working with Staffordshire Violence Reduction Alliance to assess the potential of navigator services for young adults as a way of preventing violent crime. We also received a large number of applications for two further Practice Development Areas to work with during 2023 and 2024.
Page 5
The Police Foundation Annual Report of the Trustees (continued) Year ended 30 June 2023
Review of the year ended 30 June 2023 continued
The disruption of serious and organised crime
We have been undertaking a research project to understand the use of disruption as a policing tactic to tackle organised crime. This involves understanding the range and nature of disruption strategies and tactics being used by UK policing, how success is measured and how the police work with others to achieve effective disruption. The final report will be published by the end of 2023 and will set out how disruption should be deployed in the future as part of a broader strategy to tackle organised crime.
Contact and confidence
This project is investigating the contribution that technology can make to improving public trust and confidence in the police. More specifically it aims to:
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Distil the lessons about police contact and public confidence, from research conducted in a more ‘analogue’ age, that should be taken forward into a digital one.
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Investigate how the profile of police/public contact is changing and the potential implications of this for public confidence.
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Understand more about the way police forces are responding to the challenge of improving trust and confidence and the strategies, approaches, and tools they are employing.
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Identify examples of how technology is helping to transform public contact in UK policing, as well as overseas and in other relevant sectors.
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Think ahead about the potential opportunities, challenges, and limitations of technology to improve public contact and the police/public relationship over years and decades to come.
Roadcraft
The Roadcraft series of publications, which is published by The Stationery Office (TSO) and comprises four books ( ‘Roadcraft: The Police Driver’s Handbook’, ‘Motorcycle Roadcraft: The Police Rider’s Handbook’, ‘Fleetcraft: The Essential Occupational Driver's Handbook’ and ‘Towing Roadcraft: The Essential Towing Handbook’ ) and a DVD ( ‘Roadcraft: The Police Driver's Course on Advanced Driving’ ), makes a significant contribution to road safety by improving the driving of both the police, other emergency service drivers and members of the public. Throughout 2022/23 we continued to publicise the 2020 editions of ‘ Roadcraft: The Police Driver’s Handbook’ and ‘Motorcycle Roadcraft: The Police Rider’s Handbook’.
Page 6
The Police Foundation Annual Report of the Trustees (continued) Year ended 30 June 2023
Review of the year ended 30 June 2023 continued
Objectives for the year ended 30 June 2024
In the year 2023/24 the Foundation will continue to implement its new seven year strategy, which aims to ensure we remain the UK’s leading policing think tank, while diversifying our income streams and expanding our global reach. As part of this we will be pursuing a revised research programme, to make sure we are tackling the most important issues in policing. In particular we have plans for major new projects on police conduct and culture and on preventative policing.
We will also refresh and expand our events programme, with a new series of Police Policy Forums, a regular online Friday Exchange on topical policing issues and more global events organised in partnership with the Society for Evidence Based Policing. We will be organising the 2024 Cumberland Lodge Police Conference on the topic of Policing and the Fourth Industrial Revolution.
We will be recruiting a number of Senior Research Fellows so that we can draw on the talents of leading police leaders and thinkers, and we will be bringing together a new network of Police Foundation Fellows, police practitioners who are undertaking innovative work on the frontline which we can learn from.
The Foundation will expanding its consultancy and training offer to police forces and undertaking more international work, specifically though new partnerships in Australia and New Zealand.
Trustees’ responsibilities for the accounts
Charity law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the Charity’s financial activities during the year and of its financial position at the end of the year.
In preparing the accounts the Trustees should:
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select suitable accounting policies and apply them consistently
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make judgements and estimates that are reasonable and prudent
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follow the recommendations of the Charity Commission and of the accounting profession with regard to form and content of the accounts, or disclose and explain any departures therefrom
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prepare the accounts on the going concern basis unless it is inappropriate to assume that the charity will be able to continue to meet its objectives
The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the charity and which enable them to ascertain the financial position of the charity and ensure that the accounts comply with the Charities Act 2011. They are also responsible for safeguarding the charity’s assets, and hence for taking reasonable steps for the prevention and detection of error, fraud and other irregularities.
Page 7
The Police Foundation Annual Report of the Trustees (continued) Year ended 30 June 2023
Review of the year ended 30 June 2023 continued
Trustees’ responsibilities for the accounts continued
Risk management
The Trustees are ultimately responsible for the management of the risks faced by the Foundation. Together with the Director they identify and assess these risks on a regular basis and consider the systems and controls which have been established to mitigate them. During the year the Trustees spent time at their Board meetings reviewing the most significant risks facing the charity, which would include the risk of being unable to secure future grant funding, consultancy projects and other income, the risk of being unable to retain or recruit key staff members and the risk of damage to the charity’s credibility. The Trustees have taken steps to mitigate these risks – these include sourcing new funders, expanding the charity’s profile both nationally and internationally, increasing the charity’s profile whilst always safeguarding its reputation as the UK’s policing think tank and maintaining its independence, and reviewing staff pay levels to ensure that they reflect the skill and experience of the staff.
Going concern basis for preparation of the financial statements
The Trustees consider the Police Foundation’s plans and strategies at each Board meeting. As part of this process, the Finance Subcommittee of the Trustees has reviewed the latest income projections, budgets and cash flow forecasts for the period to 30 June 2025, and the assumptions contained therein.
In light of these projections, the Trustees are confident that the Foundation has adequate resources to continue in operational existence for the foreseeable future and that there are not material uncertainties that call into doubt the Foundation’s ability to continue. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Trustees’ Responsibilities.
Financial results
The financial results for the year ended 30 June 2023 are set out in the Statement of Financial Activities on page 12, the Balance Sheet on page 13 and the Cash Flow Statement on page 14, together with the accounting policies and notes to the accounts on pages 15 to 28.
Restricted Funds
Details of Restricted Funds are set out in note 13 to the accounts on pages 23 and 24.
Unrestricted Funds
The total unrestricted income for the year ended 30 June 2023 was £151,000 compared with £115,000 in the previous year.
Unrestricted expenditure for the financial year was £147,000, so unrestricted income exceeded unrestricted expenditure by £4,000. There were realised investment losses of £1,000, but an increase in the value of the investment portfolio of £3,000, representing unrealised gains at the balance sheet date, and an actuarial gain on the defined benefit pension scheme of £1,000, so unrestricted funds increased by a total of £7,000 to £483,000. This compares with a decrease of £54,000 in the year ended 30 June 2022.
The Foundation’s unrestricted funds are held in a managed investment portfolio and as cash on deposit. The charity has a written investment policy, with long term growth and low to medium risk as the main criteria.
Further details of Unrestricted Funds are set out in note 14 to the accounts on page 25.
Page 8
The Police Foundation Annual Report of the Trustees (continued) Year ended 30 June 2023
Review of the year ended 30 June 2023 continued
Trustees’ responsibilities for the accounts continued
Financial results
Fundraising Expenditure
The charity had no fundraising activities requiring disclosure under S162A of the Charities Act 2011.
Reserves
The Trustees review the finances of the charity on a regular basis, both in the Finance Sub-committee and at main Trustees’ meetings. They consider that reserves of at least six to twelve months’ worth of general expenditure are desirable. At 30 June 2023, Restricted funds were £nil. Unrestricted funds at the year-end were £483,000 which represents more than a year’s worth of central staffing and other overhead costs as budgeted for the year ended 30 June 2024.
Investment powers, policy and performance
The Trustees’ investment powers are governed by the Trust Deed, which permits the Foundation’s funds to be invested in any stocks, shares, funds, securities, land or other investments or property.
The Board’s policy is to invest surplus unrestricted funds for a total return by adopting a medium risk investment strategy, while ensuring that sufficient liquid funds are available to meet projected commitments.
Restricted funds are held in cash on deposit because of the need to meet known project expenditure commitments within a relatively short time frame.
The Foundation’s investments have continued to be managed in accordance with our policy and the Trust Deed. The investment advisers provide quarterly reports to the Finance Subcommittee of the Trustees, and a summary is provided to all Trustees prior to each Trustees meeting. Significant movements in the value of the portfolio are discussed by the Finance Subcommittee, and, where necessary, with the other Trustees and with the investment advisers.
There were net realised losses on the sale of investments of £1,000 in the year, however net unrealised gains of £3,000 were recorded on revaluation of investments at the end of the financial year. Investment income of £6,000 was received and reinvested during the year. The performance was in line with expectations given the impact of world events during the financial year affecting investments globally.
Page 9
The Police Foundation Annual Report of the Trustees (continued) Year ended 30 June 2023
Review of the year ended 30 June 2023 continued
Independent Examiner
Nyman Lisbon Paul LLP have expressed their willingness to continue in office as independent examiner and a resolution proposing their reappointment will be submitted to the forthcoming Trustees’ meeting.
Approved by the Board of Trustees on and signed on its behalf by: 18/03/2024
Sir William Jeffrey Chairman of Trustees
Page 10
The Police Foundation Report of the Independent Examiners Year ended 30 June 2023
Independent examiner's report to the Trustees of The Police Foundation
I report to the Trustees on my examination of the accounts of the Police Foundation for the year ended 30 June 2023 which are set out on pages 12 to 28.
This report is made solely to the charity’s Trustees, as a body, in accordance with section 154 of the Charities Act 2011. My independent examiner’s work has been undertaken so that I might state to the charity’s Trustees those matters I am required to state to them in an independent examiner’s report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity, the charity’s members as a body and the charity’s Trustees as a body for my independent examiner’s work, for this report, or for the opinions I have formed.
Responsibilities and basis of report
As the charity Trustees of the Trust you are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (‘the Act’).
I report in respect of my examination of the Trust’s accounts carried out under section 145 of the 2011 Act and in carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the Act.
Independent examiner’s statement
I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
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accounting records were not kept in respect of the Trust as required by section 130 of the Act; or
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the accounts do not accord with those records; or
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the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a ‘true and fair view’ which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Andrew Thomas ACA Nyman Lisbon Paul LLP 124 Finchley Road London NW3 5JS
21 March 2024
Page 11
The Police Foundation Statement of Financial Activities Year ended 30 June 2023
| Notes INCOME AND ENDOWMENTS FROM Income from generated funds: Voluntary income Donations, grants and legacies 2 Investment income 3 Income from charitable activities: Fees for consultancy, training & events Sale of publications Total EXPENDITURE ON Charitable activities: Undertaking research and influencing policy Grant to project partner Consultancy, training & events Publications Total 7 Net gains/(losses) on investments 10 Net income / (expenditure) Other gains and losses Actuarial gains/(losses) on defined Benefit pension scheme 18 Net income/(expenditure) Net movement in funds Total funds brought forward Total funds carried forward 13&14 |
Unrestricted Funds £ 26,370 7,367 76,988 40,159 150,884 68,937 - 70,527 7,853 147,317 2,371 5,938 1,519 7,457 7,457 475,926 483,383 |
Restricted Funds £ 366,214 - 17,211 - 383,425 366,214 - 17,211 - 383,425 - - - - - - - |
Total Funds 2023 £ 392,584 7,367 94,199 40,159 534,309 435,151 - 87,738 7,853 530,742 2,371 5,938 1,519 7,457 7,457 475,926 483,383 |
Total Funds 2022 £ 351,692 5,695 41,475 41,700 |
|---|---|---|---|---|
| 440,562 | ||||
| 405,128 - 39,278 9,395 |
||||
| 453,801 | ||||
| (43,478) | ||||
| (56,717) 2,384 |
||||
| (54,333) | ||||
| (54,333) 530,259 |
||||
| 475,926 |
All the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above.
The notes on pages 15 to 28 form part of these accounts.
A full analysis of individual restricted funds is given in note 13 on pages 23 and 24.
Page 12
The Police Foundation Balance Sheet 30 June 2023
| Notes FIXED ASSETS Tangible assets 9 Investments 10 CURRENT ASSETS Debtors 11 Cash at bank and in hand CREDITORS Amounts falling due within one year 12 NET CURRENT ASSETS Provision for liabilities 18 NET ASSETS 15 REPRESENTED BY: Accumulated funds: Unrestricted funds 14 Restricted funds 13 |
2023 £ £ - 390,911 390,911 99,496 96,377 195,873 (77,185) 118,688 (26,216) 483,383 483,383 - 483,383 |
2023 £ £ - 390,911 390,911 99,496 96,377 195,873 (77,185) 118,688 (26,216) 483,383 483,383 - 483,383 |
2022 £ 1,141 385,146 |
||
|---|---|---|---|---|---|
| 99,496 96,377 195,873 (77,185) (26,216) |
386,287 71,683 120,688 192,371 (69,571) |
||||
| 122,800 | |||||
| 483,383 | (33,161) 475,926 475,926 - 475,926 |
||||
| 483,383 - |
|||||
| 483,383 |
Approved by the Board of Trustees on and signed on its behalf by: 18/03/2024
) Sir William Jeffrey ) } ) Trustees } Mr Andrew Tivey ) )
The notes on pages 15 to 28 form part of these accounts. A full analysis of individual restricted funds is given in note 13 on pages 23 and 24.
Charity Number 278257
Page 13
The Police Foundation Cash Flow Statement Year ended 30 June 2023
| Cash flows from operating activities: Net cash provided by (used in) operating activities Cash flows from investing activities: Dividends, interest and rents from investments Sale/(purchase) of property, plant and equipment Sale/(purchase) of investments Net cash provided by (used in) 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 Net income/(expenditure) for the reporting period (as per the statement of financial activities) Adjustments for: Depreciation charges (Gains)/losses on investments Dividends, interest and rents from investments Investment management fees (Increase)/decrease in debtors Increase/(decrease) in creditors Net cash provided by (used in) operating activities Cash in hand Notice deposits Total cash and cash equivalents |
2023 £ (25,395) 1,084 - - 1,084 (24,311) 120,688 96,377 7,457 1,141 (2,371) (7,367) 2,889 (27,813) 669 (25,395) 96,377 - 96,377 |
2022 £ (54,085) 19 - - |
|---|---|---|
| 19 (54,066) 174,754 120,688 |
||
| (54,333) 1,140 43,478 (5,695) 3,547 (18,067) (24,155) (54,085) |
||
| 120,688 - |
||
| 120,688 |
Page 14
The Police Foundation Notes to the Accounts Year ended 30 June 2023
1. ACCOUNTING POLICIES
a) Basis of preparation of the accounts
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Charities Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.
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. The Foundation constitutes a public benefit entity as defined by FRS 102.
As detailed in the Trustees Report, the trustees have reviewed the latest income projections, budgets and cash flow forecasts for the period to 30 June 2025, and the assumptions contained therein. In light of these projections, the Trustees are confident that the Foundation has adequate resources to continue in operational existence for the foreseeable future and that there are not material uncertainties that call into doubt the Foundation’s ability to continue. Accordingly, they continue to adopt the going concern basis in preparing the financial statements as outlined in the Statement of Trustees’ Responsibilities.
b) Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received, and the amount can be measured reliably.
c) Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings, they have been allocated to activities on a basis consistent with the use of resources.
d) Tangible fixed assets
Tangible fixed assets are capitalised where the item costs in excess of £500. Depreciation is provided on all tangible fixed assets in use at rates calculated to write off the cost on a straight-line basis over their expected useful economic lives as follows:
Computer equipment - over 2 years
e) Investments
Investments are stated in the balance sheet at market value. Gains or losses arising on revaluation at each financial year end, and on sales of investments, are credited or charged in the SOFA.
f) Restricted funds
Restricted funds are established where monies are received for specific purposes, such as particular research projects. A separate fund is established for each individual project, and relevant expenditure is charged thereto.
Page 15
The Police Foundation Notes to the Accounts (continued) Year ended 30 June 2023
1. ACCOUNTING POLICIES (continued)
g) Operating leases
The rentals payable under operating leases are charged in the SOFA on a straight-line basis over the lease term.
h) Financial instruments
The Police Foundation has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash at bank and in hand, together with accrued interest and other debtors. Financial liabilities held at amortised cost comprise trade creditors and accruals.
Investments, including bonds held as part of an investment portfolio are held at fair value at the Balance Sheet date, with gains and losses being recognised within income and expenditure.
i) Pension costs
The Foundation makes contributions to a defined contribution pension scheme in accordance with the requirements of Auto Enrolment., The contributions are accounted for as they become payable. The Foundation previously participated in a multi-employer defined benefit scheme. Deficit recovery payments are accounted for as they become payable, and accounting adjustments are in accordance with FRS102 and as described in full in Note 18.
j) Taxation
No provision is made for corporation tax, as the Foundation is able to claim full statutory exemption subject to the proper application of all its charitable resources.
k) Debtors
Debtors are recognised at the settlement amount due. Prepayments are valued at the amount prepaid.
l) Creditors
Creditors are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.
m) Cash and cash equivalents
Cash and cash equivalents include cash at bank and in hand, cash held for reinvestment and short-term deposits.
Page 16
The Police Foundation Notes to the Accounts (continued) Year ended 30 June 2023
1. ACCOUNTING POLICIES (continued)
n) Critical accounting judgements and key sources of estimation uncertainty
In the application of the Foundation’s accounting policies, which are described in note 1, Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects the current and future periods.
In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year.
2. DONATIONS AND GRANTS
| Unrestricted Funds During the year, unrestricted donations and grants of £5,000 or more were received from the following: The Tompkins Foundation Other smaller grants and donations Restricted Funds During the year, grants to fund specific projects were received from the following: The Dawes Trust Barrow Cadbury Zen City Futr Cleveland Police IPPR University of York Global Alliance of Societies for Evidence Based Policing CGI |
2023 £ 25,000 1,370 26,370 269,964 57,150 15,000 7,500 8,000 5,000 3,600 - - 366,214 |
2022 £ 25,000 895 |
|---|---|---|
| 25,895 | ||
| 219,947 45,850 - - - - - 20,000 40,000 |
||
| _325,797 _ |
Page 17
The Police Foundation Notes to the Accounts (continued) Year ended 30 June 2023
| 3. INVESTMENT INCOME Investment income was derived from the following: Listed investments Cash held on deposit 4. RESOURCES EXPENDED The expenditure for the year includes: Staff costs (note 6) Independent examination fees Depreciation |
2023 £ 6,283 1,084 7,367 2023 £ 385,896 2,600 1,141 |
2022 £ 5,676 19 |
|---|---|---|
| 5,695 | ||
| 2022 £ 347,143 4,300 1,140 |
No remuneration was paid to any of the Trustees. Expenses for reimbursed travel expenses relating to attendance at Trustees’ meetings were £nil (2022 – £nil).
| 5. | OTHER COSTS | 2023 | 2022 |
|---|---|---|---|
| £ | £ | ||
| Governance costs comprise: | |||
| Independent examination fees | 2,600 | 4,300 | |
| Trustees’ travel expenses | - | - | |
| Investment management charges | 2,889 | 3,547 |
Page 18
The Police Foundation Notes to the Accounts (continued) Year ended 30 June 2023
| 6. EMPLOYEES Staff costs comprise: Wages and salaries Employers’ National Insurance costs Pension costs The average number of employees during the year was: Full time Part time (full-time equivalent) The number of higher paid employees was: £ 90,000 - £100,000 £100,000 - £110,000 |
2023 £ 337,011 32,034 16,851 385,896 No. 7 0 7 0 1 |
2022 £ 302,718 28,634 15,791 |
|---|---|---|
| 347,143 | ||
| No. 7 0 7 1 0 |
Total pension contributions for the above staff member were £5,091 (2022: £4,915)
Key management personnel constitute the charity director. Total remuneration for the key management personnel was £119,362 (£115,708 – year ended 30 June 2022).
| 7. TOTAL RESOURCES EXPENDED Unrestricted funds Charitable activities: Undertaking research and influencing policy Consultancy, training, and events Publications Total: Unrestricted funds Restricted funds Undertaking research and influencing policy Consultancy, training, and events Total: Restricted funds Total resources expended |
Staff costs £ 8,565 4,684 4,684 17,933 365,854 2,109 367,963 385,896 |
Direct costs £ - 65,843 3,169 69,012 360 15,102 15,462 84,474 |
Support Costs £ 60,372 - - 60,372 - - - 60,372 |
2023 Total £ 68,937 70,527 7,853 147,317 366,214 17,211 383,425 530,742 |
2022 Total £ 79,331 39,278 9,395 |
|---|---|---|---|---|---|
| 128,004 325,797 - |
|||||
| 325,797 453,801 |
Page 19
The Police Foundation Notes to the Accounts (continued) Year ended 30 June 2023
8. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES – year ended 30 June 2022
| INCOME AND ENDOWMENTS FROM Income from generated funds: Voluntary income Donations, grants and legacies Investment income Income from charitable activities: Fees for consultancy, training and events Sale of publications Total EXPENDITURE ON Charitable activities: Undertaking research and influencing policy Grant to project partner Consultancy, training and events Publications Total Net gains / (losses) on investments Net income / (expenditure) Other Gains and losses Actuarial gains/(losses) on defined benefit pension scheme Net movement in funds Total funds brought forward Total funds carried forward |
Unrestricted Funds £ 25,895 5,695 41,475 41,700 114,765 79,331 - 39,278 9,395 128,004 (43,478) (56,717) 2,384 (54,333) 530,259 475,926 |
Restricted Funds £ 325,797 - - - 325,797 325,797 - - - 325,797 - - - - - - |
Total Funds £ 351,692 5,695 41,475 41,700 |
|---|---|---|---|
| 440,562 | |||
| 405,128 - 39,278 9,395 |
|||
| 453,801 | |||
| (43,478) | |||
| (56,717) 2,384 |
|||
| (54,333) 530,259 |
|||
| 475,926 |
Page 20
The Police Foundation Notes to the Accounts (continued) Year ended 30 June 2023
| 9. TANGIBLE FIXED ASSETS Cost 1 July 2022 Additions Disposals At 30 June 2023 Depreciation 1 July 2022 Charge for the year On disposals At 30 June 2023 Net Book Value At 30 June 2023 Net Book Value At 30 June 2022 10. INVESTMENTS Market value at beginning of financial year Net withdrawals in the year Income reinvested Fund management fees Net gains/(losses) on disposals in the year Net gains/(losses) on revaluation at financial year end Market value at end of financial year 2023 Cost £ Market Value £ UK Fixed Interest 33,817 30,363 Overseas Fixed Interest 21,002 19,315 UK Equities 52,830 52,339 European Equities 11,314 20,238 North American Equities 20,130 17,736 Japanese Equities - - Far East & Australasian Equities 7,982 9,850 International Equities 45,015 55,077 Emergency Economies 11,873 12,151 UK Property 20,284 15,238 Alternative Assets 43,760 39,371 Cash 119,268 119,233 387,275 390,911 |
Office Furniture and Equipment £ 2,281 - - 2,281 1,140 1,141 - 2,281 - 1,141 2023 £ 385,146 - 6,283 (2,889) (998) 3,369 |
Total £ 2,281 - - 2,281 1,140 1,141 - 2,281 - 1,141 2022 £ 426,495 - 5,676 (3,547) 13,489 (56,967) |
|
|---|---|---|---|
| 390,911 | 385,146 | ||
| 2022 Cost £ Market Value £ 19,708 17,441 30,766 27,438 115,726 117,296 19,720 23,476 29,888 25,440 - - 15,964 20,460 49,180 50,477 11,873 12,186 20,284 17,979 58,915 61,212 11,741 11,741 383,765 385,146 |
Page 21
The Police Foundation Notes to the Accounts (continued) Year ended 30 June 2023
| 11. DEBTORS Accrued income and prepayments Social security and other taxes Other debtors |
2023 £ 99,496 - - 99,496 |
2022 £ 71,683 - - |
|---|---|---|
| 71,683 |
Accrued income and prepayments include accrued income of £98,460 at 30 June 2023. Accrued income at 30 June 2022 was £70,320. Accrued income represents the value of work completed but not yet invoiced in respect of research projects and publishing income.
| 12. CREDITORS:Amounts falling due within one year Social security and other taxes Other creditors Accruals and deferred income |
2023 £ 12,098 563 64,524 77,185 |
2022 £ 13,671 138 55,762 |
|---|---|---|
| 69,571 |
Deferred income at 30 June 2023 was £50,000, representing income received in advance for one project, which will be recognised in the SOFA for the year ended 30 June 2024. Deferred income at 30 June 2022 was £50,000, which was recognised in the SOFA for the year ended 30 June 2023. Grant income is received in advance of each stage of a project commencing but is only recognised in the SOFA on the completion of the specified work for that stage of the project.
Page 22
The Police Foundation Notes to the Accounts (continued) Year ended 30 June 2023
13. RESTRICTED FUNDS
Restricted funds are established where monies have been received for specific purposes or projects as itemised below. A separate fund is established for each individual project, and relevant expenditure is charged thereto. An analysis of movements on individual restricted funds during the year ended 30 June 2023 is given below.
The Disruption Project funded by the Dawes Trust
Impact Review of the Strategic Review funded by the Dawes Trust
A new operating model for policing in the 21[st] Century funded by the Dawes Trust
Joint Online Fraud project funded by the Dawes Trust
Policing and Young Adults funded by Barrow Cadbury
Contact and Confidence: improving police - public interactions with technology – funded by Zen City and Futr
Developing a comprehensive approach to crime prevention in Cleveland – funded by Cleveland Police The Cumberland Lodge Conference (held June 2023) – funded by Salesforce
| Name of project fund The Disruption Project Impact Review of the Strategic Review A New Operating Model Joint Online Fraud Project Policing Young Adults Contact and Confidence Crime Prevention in Cleveland Cumberland Lodge Conference Other smaller projects |
Funds held 30 June 2022 £ - - - - - - - - - - |
Incoming resources £ 57,780 50,000 50,000 112,184 57,150 22,500 8,000 13,000 12,811 383,425 |
Grant Paid £ - - - - - - - - - - |
Resources Expended £ (57,780) (50,000) (50,000) (112,184) (57,150) (22,500) (8,000) (13,000) (12,811) (383,425) |
Funds held 30 June 2023 £ - - - - - - - - - |
|---|---|---|---|---|---|
| - |
Page 23
The Police Foundation Notes to the Accounts (continued) Year ended 30 June 2023
13. RESTRICTED FUNDS continued
Restricted funds are established where monies have been received for specific purposes or projects as itemised below. A separate fund is established for each individual project, and relevant expenditure is charged thereto. An analysis of movements on individual restricted funds during the year ended 30 June 2022 is given below.
The Strategic Review of Policing in England and Wales funded by the Dawes Trust, Mark 43, CGI, Deloitte and City of London Corporation
Policing and Young Adults funded by Barrow Cadbury Policing in the Pandemic funded by the Dawes Trust
Policing in the 21[st] Century seminar series funded by CGI
Global Alliance of Societies for Evidence Based Policing funded by the Global Alliance The Disruption Project funded by the Dawes Trust.
| Name of project fund The Strategic Review of Policing Policing and Young Adults Policing in the Pandemic Policing in the 21stCentury seminar Series Global Alliance of Societies for Evidence Based Policing The Disruption Project |
Funds held 30 June 2021 £ - - - - - - - |
Incoming Resources £ 125,000 45,850 22,727 40,000 20,000 72,220 325,797 |
Grant Paid £ - - - - - - - |
Resources Expended £ (125,000) (45,850) (22,727) (40,000) (20,000) (72,220) (325,797) |
Funds held 30 June 2022 £ - - - - - - |
|---|---|---|---|---|---|
| - |
Page 24
The Police Foundation Notes to the Accounts (continued) Year ended 30 June 2023
14. UNRESTRICTED FUNDS
| Analysis during year ended 30 June 2023 Unrestricted funds Analysis during year ended 30 June 2022 Unrestricted funds |
Funds held 30 June 2022 £ 475,926 Funds Held 30 June 2021 £ 530,259 |
Incoming resources £ 150,884 Incoming resources £ 114,765 |
Resources expended £ (147,317) Resources Expended £ (128,004) |
Net gains / (losses) on investment £ 2,371 Net gains on investment £ (43,478) |
Actuarial gains /(losses) on DB pension scheme £ 1,519 Actuarial gains / (losses) on DB pension scheme £ 2,384 |
Funds Held 30 June 2023 £ 483,383 Funds held 30 June 2022 475,926 |
|---|---|---|---|---|---|---|
15. ANALYSIS OF NET ASSETS BETWEEN FUNDS
| As at 30 June 2023: Fixed Assets Investments Debtors Cash at bank and in hand Creditors Provision for liabilities |
Unrestricted Funds £ - 390,911 22,996 122,877 (27,185) (26,216) 483,383 |
Restricted Funds £ - - 76,500 (26,500) (50,000) - - |
Total Funds £ - 390,911 99,496 96,377 (77,185) (26,216) |
|---|---|---|---|
| 483,383 |
At 30 June 2023 there were accumulated net unrealised gains on investments of £3,369 (2022 losses - £56,967) which form part of the total accumulated unrestricted funds.
| As at 30 June 2022: Fixed Assets Investments Debtors Cash at bank and in hand Creditors Provision for liabilities |
Unrestricted Funds £ 1,141 385,146 21,613 120,758 (19,571) (33,161) 475,926 |
Restricted Funds £ - - 50,070 (70) (50,000) - - |
Total Funds £ 1,141 385,146 71,683 120,688 (69,571) (33,161) |
|---|---|---|---|
| 475,926 |
Page 25
The Police Foundation Notes to the Accounts (continued) Year ended 30 June 2023
16. PENSION COSTS
The Pensions Trust CARE Scheme
From 1 August 2005 the Foundation participated in a multi-employer average salary defined benefits pension scheme, the Pensions Trust CARE Scheme. It is not possible or appropriate to identify the assets and liabilities of the Scheme which are attributable to the Foundation. The CARE Scheme has various different sections, and the section to which Police Foundation employees belonged was the one-eightieth average salary defined benefits section of the CARE Scheme. The main benefits provided by this particular section of the Scheme were a pension of one-eightieth of a member’s career average revalued earnings for each year (and months proportionately) of pensionable service if contracted-out of the State scheme. Employers paid contributions at the rate of 10.0% of earnings up to 1 April 2012, and 10.6% thereafter. Members paid contributions based on an age-related scale.
From 1 October 2014, those employees who were members of the CARE Scheme were transferred from the one-eightieth defined benefit section of the CARE Scheme to the defined contribution section. From that date the employer’s contributions were 10% and the members contributed 7%.
No employer’s contribution was made by the Foundation to the CARE Scheme in the year ended 30 June 2023. The Foundation made deficit recovery payments of £7,194 (2022 - £6,989) – see details in the next paragraph.
A full actuarial valuation of the Scheme is commissioned every 3 years, with annual funding statements provided by the scheme’s actuary. At 30 September 2022, the actuary’s funding statement shows a deficit of assets compared to liabilities of £7.5 million - a substantial decrease over the reported deficit at 30 September 2019 of £14.9 million and the deficit at 30 September 2016 of £24.9 million (the deficit at 30 September 2013 was £16.4 million). Employers are being asked to make deficit recovery payments. The Foundation’s share of these additional payments was assessed initially at £1,100 per annum from 1 April 2012, increasing by 3% at each subsequent 1 April for a period of 10 years.
The formal valuation of the Scheme at 30 September 2013 was completed in the spring of 2015 with the Foundation’s share of deficit recovery payments being increased to £7,591 per annum from 1 July 2015 and thereafter increasing by 3% at each subsequent 1 July until 30 April 2027. This meant that the Foundation would be required to contribute total deficit recovery payments, and charges, of £104,000 between 1 July 2015 and 30 April 2027. Following the completion of the 30 September 2016 valuation, the schedule of monthly deficit recovery payments and charges was extended to include the period from 1 May 2027 to 30 November 2028, with an annual increase of 3% on 1 April 2028 – the total payable in this period was expected to be £17,000. Following the completion of the 30 September 2019 valuation, the schedule of monthly deficit recovery payments was shortened to end on 30 September 2027, with the Foundation’s share of the deficit recovery payments being reduced to £6,314 per annum from 1 July 2021 and thereafter increasing by 3% at each subsequent 1 July until 30 September 2027. Following the completion of the 30 September 2022 valuation, the schedule of monthly deficit payments has been shortened by six months, to end on 31 March 2027. The total expected to be payable between 1 July 2023 and 31 March 2027 is £26,216.
Page 26
The Police Foundation Notes to the Accounts (continued) Year ended 30 June 2023
16. PENSION COSTS continued
Following consultations with the participating employers in May 2015, the Trustee of the Scheme, at a meeting held on 7 July 2015, finalised the decision to close the Scheme to the further accrual of benefits with effect from 31 March 2016. From 1 July 2015, there was only one member of the Scheme employed by the Police Foundation, and, by 1 April 2016, alternative pension arrangements were in place for this employee, who has since retired. The scheduled deficit recovery payments will continue as outlined above, and the next formal valuation of the Scheme will be at 30 September 2025, with the outcome known in 2026.
PRESENT VALUES OF PROVISION
| 30 June 2023 (£s) Present Value of provision 26,216 RECONCILIATION OF OPENING AND CLOSING PROVISIONS Provision at start of period Unwinding of the discount factor (interest expense) Deficit contribution paid Re-measurements – impact of any change in assumptions Re-measurements – amendments to the contributions schedule Provision at end of period |
30 June 2022 (£s) 33,161 Year Ending 30 June 2023 (£s) 33,161 1,077 (6,503) (1,519) - 26,216 |
30 June 2021 (£s) 41,515 Year Ending 30 June 2022 (£s) 41,515 344 (6,314) (2,384) - |
||
|---|---|---|---|---|
| 33,161 |
INCOME AND EXPENDITURE IMPACT
| INCOME AND EXPENDITURE IMPACT | ||
|---|---|---|
| Year Ending | Year Ending | |
| 30 June 2023 | 30 June 2022 | |
| (£s) | (£s) | |
| Interest expense | 1,077 | 344 |
| Re-measurements – impact of any change in assumptions | (1,519) | (2,384) |
| Re-measurements – amendments to the contributions schedule | - | - |
| Contributions paid in respect of future service | - | - |
| Costs recognised in income and expenditure account | - | - |
Includes defined contribution schemes and future service contributions (i.e. excluding any deficit reduction payments) to defined benefit schemes which are treated as defined contribution schemes.
Page 27
The Police Foundation Notes to the Accounts (continued) Year ended 30 June 2023
16. PENSION COSTS continued
| ASSUMPTIONS | |||
|---|---|---|---|
| 30 June 2023 | 30 June 2022 | 30 June 2021 | |
| % per annum | % per annum | % per annum | |
| Rate of discount | 6.51 | 3.63 | 0.90 |
The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.
Up until 1 June 2016, all new employees of The Foundation were offered a contribution to a personal pension scheme of their choice (see Other pension costs below).
Other pension costs
Until 31 May 2016, on completion of any probationary period, employees who were not eligible to join the Pensions Trust CARE Scheme were offered an employer contribution of 5% of salary to a personal pension scheme of their choice.
On 1 June 2016, the charity auto enrolled its employees into a Defined Contribution Pension Scheme, postponing the scheme until 1 September 2016. In July 2016 some employees opted into the scheme, and the appropriate contributions were paid from that date. Contributions paid into individual staff personal pension schemes have ceased from the earlier of the date on which each employee chose to opt into the Auto Enrolment pension scheme at 1 September 2016.
Total employer’s contributions made by the Foundation to individual staff personal pension schemes in the year ended 30 June 2023 were £16,851 (2022 – £15,791).
Page 28
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Mon, 18 Mar 2024 11:51:12 GMT
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