BRITISH AIRWAYS WELFARE & BENEVOLENT FUND Report and Financial Statements Year ended.. 31 December 2020 Charity Commission Reference: 282480 Registered Office.. Waterside, PO Box 365, Harmondsworth UB7 OGB P3ge Report OF the Trustees Independent Examiners Report Statement of Financial Activities Balance Sheet Statement of Cash Flows Notes to the Financial Statements
BRITISH AIRWAYS WELFARE & BENEVOLENT FUND REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 Charity Commission Reference= 282480 Report of the Trustees for the year ended 31 December 2020 The Trustees present their annual report and financial statements of the charity for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounting policies set out in Note 1 to the financial statements and comply with the charity s trust deed, the Charities Act 2011 and Accounting and Reporting by Charities.. Statement of Recommended Practice èpplicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FFiS102) effective I lanu3ry 2016. Objectives and activities for the public benefit The purpose of the British Airways Welfare and Benevolent Fund I'BAWBF.) is to relieve poverty amongst present and former employees of British Airways PIC I'BA'I, their spouses and dependants. The Trustees confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity s aims ènd objectives and in planning future activities and setting the award making policy for the ye2r. Structure. governance and management The charity was established pursuant to a Deed of Declaration of Trust dated 20 March 1981 entered into by the Brit15h Airways Board on the one part and Norman Ashworth Binks and others (the original Trustees) as the other part. The Deed provides that there shall not at any time be more than six or less than three Trustees in number and that the power to appoint or remove any Trustee shall be vested in British Airways Plc. The charity has nine Trustees. all of whom are either past or present employees of British Airways Plc. The charity is currently in a period of transition, and a deed of variation is in process co increase the maximum number of trustees to ten. The Trustees and British Airways PIC have agreed the following protocol for the appointment of Trustees. Trustee appointments generally coincide with the financial year and will typically be For 3 period of three years. Trustees may, subject to the Chairman's approval, be recommended to serve for up to three further terms la maximum total of 12 years). Candidates for the position of Trustee must be past or present employees of the British Aitways Group, must have the necessary maturity and skills and have held a position which suits them to the role of Trustee. Initial selection will be undertaken by the then current Trustees with the most appropriate candidate being invited to a selection board consisting of at least three Trustees. The selection board will make a formal recommendation to the Ch3irman who will. IF they support the nomin3tion, be responsible for securing the formal nomination by British Airways PIC in accordance with the Deed of Declaration of Trust.
BRITISH AIRWAYS WELFARE & BENEVOLENT FUND REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 Activities Some 25 grants, totalling £69,050 were made to individu21s during the year12019'. 40 grants totalling £69,786). Grants are decided by the Trustees on the individual merits of each case. Casework continues to be undertaken for every application through its arrangement with the Soldiers, Sailors, Airmen and Families Associ3tion {SSAFAI which is now in its sixth year of operation. Financial review for the year ended 31 December 2020 The net income and net movement in funds for the year ended 31 December 2020 was £225,88412019= net income of £468,134). Investment incotne was £78,69012019.' E64.91n and donations amount5 to £12012019.. £1201. Net gains on investments was £223,15512019.' £482,811). At 31 December 2020 the market value of investments was £3,257,65612019.. £3,034,501). Investment policy The TrLJStee5 invest funds Wlth Charitie5 Churches and Local Authoritie5 ICCLA). The charity hold5 3 combination of income units and accumulation units in the COIF Charities Investment Fund. The financial objectives of the COIF Charities Investment Fund are- Over the long term, average annual total returns (income and capital growth) of inflation plus 5% before costs,. Within total return, an attractive income which is reliable from year to year. and volatility no more than 750kn of that of the UK stock market. The Trustees recognise that there is a significant degree of risk ta the c3Pltal value of the portfolio, especially over shorter time periods. However, this risk is considered appropriate given the long-term nature of the portfolio and the requirement for sustainable income returns to fund the charitls work. The Investment Fund excludes direct holdings in tobacco companies, and in companies with any involvement in cluster bombs and landmines, online gambling or the production of pornography. The total return on the COIF Charities Investment Fund for the year ended 31 December 2020 was 10°A12019'. 19%12fter 311 costs. Risk management The princip21 risks faced by the charity lie in the performance of investments and the ability for BAWBF caseworkers to reach applicants. The Trustees consider variability of investment returns to constitute the charity's major financial risk. This is mitig2ted by retaining expert investment managers and having 3 diversified investment portfolio. The Trustees manage the investment on a total return basis. The Trustees consider that the use of a total return approach helps 5t3bilise the resources available for grant making. The Trustees have an ongoing 2greement with SSAFA to use their in-house caseworkers for assessing applications.
BRITISH AIRWAYS WELFARE & BENEVOLENT FUND REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 Reserves policy The Trusrees aim to maintain free reserves in unrestricted funds. Reserve5 are needed to invest and gain dividends to enable payments to be made. The balance held as unrestricted funds at 31 December 2020 is £3,309,87412019.. £3,083,990). Plans for the future The Trustees are keen to reach out and communicate to as many current and future employees. To this extent, they are exploring all possible avenues to remind the current and former employees to seek help if they are struggling financially. The Trustees have 3150 engaged with legal advisors to change its 5t3tus to a Charitable Incorporated Organisation ICIOI. The Fund is going to be renamed as BA Benevolent Fund and the Trustees have drafted an Memorandum of Understanding with BA to set out the re13tion5hip with BA and the Fund. Key management personnel remuneration All Trustees give of their time freely 3nd no Trustee rernuner3tion wa5 paid in the year. Details of Trustee expenses and related party transactions are disclosed in Note 2 to the financial statements. Reference and administrative information Trustees The Trustees and Chairman of the charity during the year ended 31 December 2020 were.. Pauline Jorgensen (Appointed Trustee l March 2020, appointed Chair l December 20201 Melanie Lee (Resigned as Chair 30 November 2020) Roopal Radia (Resigned 3s Tre35urer and Trustee 31 August 20201 Charles Wadsworth (Appointed Treasurer and Trustee 1 September 20201 Nigel Allam (Secretary) Christopher Hodgkinson Giles Lowe Neil Gunnell (Appointed 29 September 20201 Douglas Brown (Appointed 29 September 20201 lill Errington (Appointed 29 September 20201 Charity Number.. 282480 ReEistered Office: Waterside, PO Box 365, Harmondsworth UB7 OGB Independent Examiners: Ernst & Young LLP,1 More London Place, London SE12AF Bankers: B2rclays Bank. He2throw Airport, Hatton Cross Branch. Hounslow TW6 211 Investment Managers: CCLA. Senator House, 85 Queen Victoria Street, London EC4V 4ET
BRITISH AIRWAYS WELFARE & BENEVOLENT FUND REPORT FOR THE YEAR ENDED 31 DECEMBER 2020 Trustees. responsibilities in relation to the financial statement5 The charity Trustees are responsible for preparing a Trustees, annu21 report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law applicable to charities in England and Wales requires the charity Trustees to prepare financial statements for each year which give a true and fair view of the state of aFfairs of the charity and of the incoming resources and application of resources, of the charity for that period. In preparing the financial statements. the Trustees are required to= select suitable accounting policie5 and then apply them con515tently', observe the methods and principles in the applicable Charities SOAP.. make judgement5 and estimates that are reasonable and prudenL state whether applicable accounting standards have been followed, subject to any material departures that must be disclosed and explained in the financial statements., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the Trust deed. They are also responsible for safeguarding the assets of the charity and taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements. Approved by the Trustee5 on 29 October 2021 and signed on their behalf by.. Charles Wadsworth TREASURER ofTRUST On beh21f of the Trustees Date.. 31.10.21
Independent examiner's report to the Trustees of British Airways Welfare & Benevolent Fund I report on the accounts of the Trust for the year ended 31 December 2020. which are set out on pages 6 to Respective responsibilities of Trustees and independent examiner The charity s Trustees are responsible for the preparation of the accounts. The Trustees consider that an audit is not required for this year under section 144121 of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to.. examine the accounis under section 145 of the Charities ACL to follow the procedures laid down in the general Directions given by the Charity Commission under section 14515llbl of the Charities Act.. and to state whether particular matters have come to my attention. Basis of independent examiner's report My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes 3 review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you 35 Trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the account5 present a 'true and fair view, and the report Is limited to those matters set out in the statement below. Independent examinerfs staternent In connection with my examination, no material matters have come to my attention which gives me cause to believe that in. any material respect.. the accounting records were not kept in accordance with section 130 of the Charities Act., or the accounts did not accord with the accounting records- or the accounts did not comply with the accounting requirements concerning the form and content of accounts set out in the Charities IAccoLJnts and Reports) Regulations 2008 other than any requirement thèt the accounts give 'true and fair, view which is not a matter considered 3s part of an independent examination. I have come acros5 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. Use of our report This report is made solely to the Trustees, as a body, in accordance with our engagement letter dated 6 September 2019. The examination ha5 been undertaken so that we might state to the Trustees those matters that are required to be stated in an examinerfs 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 Tru5tee5 as a body, for this examination, for this report, or for the statements made. I l Gordon For and on behalf of Ernst & Young LLP Institute of Chartered Accountants in England and Wales London Date.. 2 November 2021
BRITISH AIRWAYS WELFARE & BENEVOLENT FUND Statement of Financial Activities for the year ended 31 December 2020 Total Unrestricted Funds 2020 Total Unrestricted Funds 2019 Note Income: Investment Income 78,690 64,917 Donations 120 120 Net profit on investments 223,155 482,811 Total Income 301,965 547,848 Expenditure: Expenditure on charitable activities.. Benevolent Granis Other Expenditure 169,0501 (7.0311 169.786) 19.928) Total Expenditure 176,081) (79,714) Net income and net movement in funds for the year 225.884 468.134 Reconciliation of Funds.. Funds brought forward at1 january Total funds carried fonward at 31 December 3.083,990 3.309.874 2.615.856 3.083.990
BRITISH AIRWAYS WELFARE & BENEVOLENT FUND lance Sheet a5 ai 31 December 2020 IFun l Fund Note Fixed ASSe- Invesrmenrs Totsl Fixod Assots 3,257.656 3.034.501 3,257.656 3.034.501 Current Assets.. Cash at bank Accrued IncoTne Totsl Current Assets 44,113 16.705 60.818 99,158 4.694 103.852 Current Liabilities: AmounEs owed ¢0 BA Other creditors Total Current Liabilities 2,500 6,100 8,600 43.683 10,680 54,363 Net CurrentAssets 52,218 49.489 Nèt Assets 3.309.874 3.083.990 The fund5 of the charity.. Accumulated Fund 1.095.095 1.092,366 Kevaluation ReseNe 2.214.719 1.991,624 TOTAL FUNDS EMPLOYED 3.309.874 3.083.990 Funds.. Unrestricted 3,309.874 3.083.990 3.309.874 3.083.990 The report and financial s¢a¢ements were approved by the Trus¢ees on Signed on behalf of the board Charles Wadsworih Treasurer Date..
BRITISH AIRWAYS WELFARE & BENEVOLENT FUND Statement of Cash flows for the year ended 31 December 2020 Total Funds Total Funds 2020 2019 Note Net cash used in operating activitie5 1133,7351 1133.7351 178,1401 (78.1401 C8sh Ilows from i1jvésÉin¥3CtiVit Inieresl and dividends 78,690 64.917 Net cash provided by investing activities 78.690 64.917 Change in ¢o$h and Cash equivalents in the year 155.0451 113.2231 Cash ènd c3sh equiv31Ènt brought forward 99,IS8 112,381 Cash and cash equivalents carried forward 44.113 99.158
BRITISH AIRWAYS WELFARE & BENEVOLENT FUND Notes to the financial statement5 For the year ended 31 December 2020 1. Accounting Policies la) Basis of preparation and assessment of £oinE concern The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value except for investments which are included at m3rket value. The financial statements have been prepared in accordance with the Statement of Recommended Practice.. Accountin£ and Reporting by Charities prep3ring their account5 in accord3nce with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102) issued on 16 july 2014 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Charitie5 Act 2011 and UK Generally Accepted Practice as it applies from 1 january 2015. The charity constitutes a public benefit entity as defined by FRS 102 (effective I january 20161. The fin3nci315tatement5 are presented in pounds 5terlin& The financial statements have been prepared to give a 'true and fairf view and have departed from the Charities (Accounts and Report51 Regulations 2008 only to the extent required ta 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 Stand3rd applicable in the UK and Republic of Ireland IFRS 1021 issued an 16 july 2014 rather than the Accounting and Reporting by Charities.. Statement of Recommended Practice effective from l April 2005 which has since been withdrawn. The Trustees consider that there are no material uncertainties about the charity s ability to continue as 3 going concern as a result of its strong net asset position. With respect to the next reporting period, year ending 31 December 2021, the most significant areas of uncertainty that affect the carrying value of assets held by the charity are the level of investment return and the performance of investment markets (see the investment policy and performance and risk management sections of the trustees, annual report for more information). Ibl Judgements and key sources of estimation uncertainty The preparation of financial sratements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet dète and the amounts reported for income and expenses during the year. The Trustees have concluded that the judgements are not significant and that any estimation uncertainty does not give rise to 3 significant risk of material adjustment to the carrying amounts of a55ets and liabilities within the next financial year. Icl Income recognition All income is recognised once the charity ha5 entitlement to the income. it is probable that the income will be received and the amount of income receivable can be measured reliably. Idl Realised gains and105ses All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments 2re calcu12ted 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 C21culated 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 Statement of Financial Activities.
BRITISH AIRWAYS WELFARE & BENEVOLENT FUND Notes to the financial statement5 For the year ended 31 December 2020 1. Accounting Policies (continued) (el Fixed asset investments Investments are initially reco8nised at their transaction value and subsequently measured at their fair value as at the balance sheet dare using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation 2nd disposals throughout the year. The charity does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the charity is to the capital value of the portfolio, especially over shorter time periods. However this risk is considered appropriate given the long term nature OF the portFolio 3nd the requirement for sustainable income returns to fund the charicy's work. If) Expendlture recognltlon Costs of charitable activities include grants made, expenses of the Trustees and payments to SSAFA to use their in- house caseworkers. Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it 15 probable that setrlement will be required and the amount of the obligation can be measured reliably. Grants P3yable are payment5 made ta third parties in the furtherance of the charitable objects af the charity. Once an application is received, the case is discussed by the trustees and if awarded, the grant is paid to the third party supplier who will complete the work. Igl Fund5 Structure The Trustees have invested the funds with CCLA. The charity holds a combination of income units and accumulation units in the COIF Charities Investment Fund. Both the funds are unrestricted. Unrestricted income funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objects. The dividends earned from the funds are used to make payments as grants. 2. Related party transactions and trustees. expenses and remuneration The Trusiees 311 give freely Iheir time and expertise without any form of remuneration or other benefit in cash or kind 12019.. £nil}. Expenses paid to Trustees in the year totalled £270 (2019.. £8461. The expenses mainly related to travel costs. During the year payments OF E2.500 12019.. E58,4451 were made on behalf of the charity by Brit15h Airways PIC for the payment of contractor services in support of the Trust's casework. In addition, the charity's independent examination fee for the year was borne by British Airways Plc. At the year end £2.500 was owed to British Airways Plc12019'. £43,683). 10
BRITISH AIRWAYS WELFARE & BENEVOLENT FUND Notes to the financial statements for year ending 31 December 2020 Note Investments Share5 Inumberl 128,599 Markei Value Charities investment income fund: At 31 December 2019 Net g31n on rev31u31ion At 31 Detember 2020 2,177,015 139,234 2,316,249 128,599 Share5 Inumberl 4,556 Market Value Charities investment accumulation fund: At 31 December 2019 Net gain on revalu31ion At 31 Decembèr 2020 857,486 83,921 941.407 4,556 Total investrn&nt5 at 31 Decernber 2019 Total investments at 31 December 2020 3.034.501 3,257,656 Reconciliation of movement in total funds employed Balance at I january 2019 1,508,813 1,107,043 2.615,856 Balance at 31 December 2019 1,991,624 1,092.366 3,083,990 Income 482,811 114.677) 468,134 Revaluation reserve Accumulated fund Balance at I january 2020 1,991.624 1,091,366 3,083,990 Balance at 31 December 2020 2.214.779 1,095,095 3,309,874 Income Revaluation reser¢e Accutnulated fund 223.155 2,729 225,884 Reconciliation of net movement in funds to net cash flow from operating activitie5 Net movement in funds Interest income shown in investing activitie5 G31ns on Investments Ilncreasel / decrease in debtors Increase I Idecreasel In creditors Net cash used in operating activities 225.884 178,6901 1223,1551 468,134 164,917) 1482,8111 437 1,017 178.1401 145,7631 1133.7351