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2021-12-31-accounts

Company number: 01601185 Charity number: 283945 Scottish Charity number: SC042351

Report and financial statements For the year ended 31 December 2021

The British Institute of Innkeeping

Contents

For the year ended 31 December 2021

Reference and administrative information ...................................................................................... 1 Council’s annual report .................................................................................................................. 3 Independent auditor’s report ....................................................................................................... 13 Statement of financial activities (incorporating an income and expenditure account) ................... 18 Balance sheet ............................................................................................................................... 19 Consolidate statement of cash flows ............................................................................................ 20 Notes to the financial statements ................................................................................................. 21

The British Institute of Innkeeping

Council’s Report

For the year ended 31 December 2021

Company number 01601185 Charity number 283945 Registered office and Office 3 Sentinel House operational address Ancells Business Park Harvest Crescent Fleet GU51 2UZ Country of registration : England & Wales, Scotland Country of incorporation: United Kingdom Council The Council members named below (who are the trustees of the BII under charity law) have served throughout the year and up to the date of this report unless otherwise stated. The appointment and retirement of Council members is governed by the Articles of Association.

Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Bruce Cuthbert Joanne Graham Katy-Anne Hamilton Gregory Mangham Kelly McCarthy Neil Morgan Matthew Phipps Mark Robson (Chair) Timothy Smith Philip Strong Paul Eeles Appointed 21[st] July 2021

The trustees delegate day to day management to the following senior leadership team (SLT):

Steven Alton Chief Executive Officer Andrew Bowen Head of Finance Resigned April 2021 Shila Singh Head of Finance Appointed January 2021 Molly Davis Head of Communications Natalie Wickham Head of Partnerships Hannah Solomons Head of Membership Development

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The British Institute of Innkeeping

Council’s Report

For the year ended 31 December 2021

Secretary Gill Cooper
Bankers Barclays Bank UK PLC
Leicester
LE87 2BB
Auditor Sayer Vincent LLP
Chartered Accountants and Statutory Auditors
Invicta House
108-114 Golden Lane
LONDON
EC1Y 0TL

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The British Institute of Innkeeping

Council’s Report

For the year ended 31 December 2021

The Council present their report and the audited financial statements for the year ended 31 December 2021.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

The BII’s principal object is to advance the education and training of persons engaged, or preparing to be engaged, in a) the sale of beverages and/or the preparation or sale of food at premises licensed for the sale of intoxicating liquor; and/or b) ensuring regulatory compliance and/ or good operation in such premises.

The main activities undertaken to support the BII’s purpose include:

3

The British Institute of Innkeeping

Council’s Report

For the year ended 31 December 2021

economy, and reduce alcohol related crime and disorder in a town centre by building a positive relationship between the licensed trade, police and local authorities.

The Council reviews the aims, objectives, and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The Council reports the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the Council ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The Council have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the Council consider how planned activities will contribute to the aims and objectives that have been set. The British Institute of Innkeeping does not raise funds specifically for fundraising and so does not use professional fundraisers.

Achievements and performance

The charity's main activities and who it tries to help are described below. All its charitable activities are undertaken to further The British Institute of Innkeeping’s charitable purposes for the public benefit.

Membership and member services

2021 remained a challenging year for the BII and its members with ongoing closures and trading restrictions. The BII team has continued its focus on delivering support for its members to enable them to navigate the pandemic with complex and frequently changing operating rules. Our communications have further been developed throughout the year delivering timely and accurate communication relied upon by our members.

Members have been engaged throughout the year for their feedback on their financial realities, operational challenges and need for critical ongoing support. These members’ insight reports have been used to provide a clear voice directly into Government for independently operated pubs. The resulting overall package of Government support has been broadly welcomed through 2021 and without it many more pubs would have failed. The BII will continue to make the case for ongoing support that will be needed to allow our members to start their recovery in 2022 as restrictions fall away completely across the UK.

The BII has taken every opportunity to provide a member voice directly into Government Ministers and key officials, across all key departments, in addition to presenting evidence to a number of All Party Parliamentary group enquiries. BII’s role as the leading membership organisation for individuals in the licensed trade, many being licensees of single pubs across the UK, has been recognised with its formal membership of the Government Hospitality Council which is focused on rebuilding the sector.

4

The British Institute of Innkeeping

Council’s Report

For the year ended 31 December 2021

The BII team have done an exceptional job throughout 2021 passionately delivering against the BII purpose of doing all we can to keep great pubs thriving at the heart of their communities . Through regular communications: weekly INNFocus updates, interactive guides, speaking directly to members through our membership team and showcasing our professional support via our expert helplines, we have done all we can to help with our members priorities.

The quality of the support was recognised through our member survey with again 95% of members stating that they would recommend membership to others in the licensed trade. This has helped support the retention of members and grow the overall membership base. With around 10,000 members at the end of 2021, this has further solidified the BII organisation and provides a great platform for further growth into 2022.

2021 has seen the BII celebrated 40 years since it was founded. As restrictions eased, we were able to celebrate this key milestone with 900 guests at the BII Winter Event. The event was a celebration of the fantastic people in our sector with the awarding of our Licensee of the Year Award (LOYA) at its heart. The event was highly regarded by all who attended and has provided significant momentum into 2022 with the annual Summer Event back to its usual timing in June again celebrating LOYA 2022 which has been launched in January 2022. In addition, the team delivered a Tied Trade Forum in October, which was fully attended, which provided a platform to share best practice for pub groups and brewers who operate leased and tenanted pubs.

The team implemented significant changes throughout the year to both modernise the business and ensure we had a strong platform for further growth whilst continually developing new services. A major upgrade of all IT platforms was successfully completed in the first half of the year replacing the website, the membership portal and the CRM system. This has provided new capabilities and significantly reduced our costs & risks associated with these systems as they are all now cloud based services.

We also consolidated our office space requirements into a smaller fit for purpose office in Fleet. This space has been configured to allow for growth, the formal introduction of flexi-working for the team and areas for collaborative working. Whilst costs have been incurred for the move, refit and furnishing of the new offices, the overall ongoing office charges have been significantly reduced.

The senior leadership team (SLT) for the business has also been completed with new team members; Shila Singh, Head of Finance, and Hannah Solomons, Head of Membership Development. Both bring extensive external experience to the organisation. The overall SLT is working highly effectively as a team and delivering significant progress in all key areas. Morale in the wider team is strong with a committed team which has benefited from new team members in key roles in membership and communications.

A year of significant change which equips well for growing the organisation in terms of both services and member numbers.

5

The British Institute of Innkeeping

Council’s Report

For the year ended 31 December 2021

BIIAB

The BIIAB is the awarding organisation and end point organisation for work-based learning providers, FE Colleges and employers. They offer Qualifications, Apprenticeship Frameworks and End Point Assessments in over 25 sectors.

Following an extensive strategic review and detailed process the BII formally sold the BIIAB business to the Skills and Education Group in March 2021. This was following an extensive due diligence process ensuring the aims of the BIIAB will be maintained under new ownership. The agreement includes a long-term partnership with the Skills and Education Group that will enable the BII and BIIAB to work closely together to leverage the capabilities of both organisations to the benefit of members.

The partnership has made strong progress following the formal transition of the business. The respective Chief Executives are working closely on several key initiatives to ensure the pub and hospitality sector is fully supported with professional development pathways as it rebuilds its businesses and teams. The agreement is hugely beneficial to the BII, securing its long-term future and providing an opportunity to grow additional joint services with the expertise of the Skills and Education Group. The working relationship has been further enhanced with Paul Eeles CEO of the Skills and Education Group, joining the board of the BII, and Steve Alton CEO of The BII, joining the board of the Skills and Education Group. Paul Eeles, is a well-respected leader in the education and development sector for many years, having previously chaired the Federation of Awarding Bodies (FAB) for several years. Steven Alton, having led The BII for two years through the pandemic is also a director of Best Bar None (BBN), and an advisor for Only a Pavement Away, and a member of the Hospitability Sector Council, working closely with Government.

Beneficiaries of our services

The BII aims to inspire, develop, and support individuals in the licensed retail and hospitality industry as its primary beneficiaries. The BII continues to believe that the benefits derived by individuals in its focus on raising professional standards, recruiting, developing, and retaining talent alongside providing support, advice, and guidance to individuals, provides a wider public benefit.

The BII remains passionate about the role its members and their pubs play in communities across the UK. Its Heart of the Community Award continues recognising individuals and teams who have gone above and beyond in serving their communities throughout the pandemic. Many of the 130 winners of this award joined as guests at the BII Winter Event in November. The BII has campaigned throughout the year for the deserved recognition that our members and their pubs play in their communities through local employment, providing skilled careers, supporting local suppliers & brewers and being an accessible, safe space for people to connect. Their role is supporting mental wellbeing and community connections irradicating loneliness and isolation remains critical. It was encouraging for those at the heart of Government to recognise the unique role pubs play in society which was explicitly referenced in the first published Government Hospitality Strategy.

BII continues to support Best Bar None Professional & Safer Venues ensuring that the public benefits from the schemes in improving standards and providing a safer night time economy. The scheme

6

The British Institute of Innkeeping

Council’s Report

For the year ended 31 December 2021

is active across the UK and continues to have great success in achieving its aims of reducing alcohol related crime and disorder, reducing the harmful effects of binge drinking and improving knowledge and skills of individuals and enforcement and regulation agencies to help them responsibly manage licensed premises.

Financial review

The further growth of membership numbers and delivery of the BII Winter Event much improved revenues in the year. This was balanced against significant reorganisation costs with new systems, the separation of the BIIAB, an office move, and changes in the team structure. Majority of these costs are one-offs and will enable the organisation to move forward on a significantly stronger platform. The organisation has been designed as a lean multiskilled team that will focus on its core objectives around delivering valued membership services and support for the delivery of its overall purpose. This has resulted in a trading loss for the membership organisation of £241,912 however, after accounting for the transfer of ownership of the Awarding Body to the Skills and Education Group which contributed £293,841, the overall business delivered a surplus of £51,929. The transfer of ownership allows for future conditional pay-outs which are dependent on BIIABQL delivering an agreed profit, this is for the coming five years. The changes implemented provide a strong platform for the membership business to profitably operate in 2022, allowing for further reserves to be created that will be used for further investment in additional member services.

During 2021 all cost areas were subject to a full review with key focus on office expenses, ICT cost and telecoms, to ensure we have a lean overheads base moving into 2022, which is fit for our current business requirements and structure.

Reserves

Strong cash management has continued through this year with our cash reserves moving from a temporary level of £1.4m, back to an excepted and strong cash reserve of £1.1m, due to some known and planned one off payments. As expected, this has also reduced our net current assets from £848k to £633k. The overall position provides real security to the BII covering both three months of operating costs contingency of circa £320k as agreed by the Council and allows for further targeted investment moving forward.

The council believes that the reserves and cashflow position provides significant resilience and will ensure the charity remains a going concern over the next 18 months despite the current uncertainties.

Going concern

The council are very pleased with the cash position in 2021. The losses incurred this year are predominantly non-trading and one-off restructuring items. This puts the charity in an extremely positive position with strengthened operational and senior leadership teams, new digital platforms, and a modern collaborative office environment. The plans for further development of services and membership growth are also well constructed.

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The British Institute of Innkeeping

Council’s Report

For the year ended 31 December 2021

The BII team have already secured two new free-trade partnerships with a drinks digital wholesale solution and a global drinks brand that will drive new membership growth. Both of these are expected to start delivering new member growth as pubs start their recovery. The role of Membership Development is already delivering new members via estate wide commitments from regional pub groups. The overall SLT is focused on delivering both enhanced services and significant new member growth over the coming years.

The partnership with the Skills and Education Group also provides a source of income from the continued delivery of BIIAB products and services for BII members and the wider hospitality sector. The scale, expertise and collaboration through this partnership is expected to grow BIIAB revenues significantly as the sector tackles its strategic challenge to attract, develop and retain talent as it rebuilds its businesses over the coming years.

Based on the above assessment the Council considers that there are no material uncertainties on the going concern assumption.

Principal risks and uncertainties

In accordance with SORP 2015, the business risks of the BII and the steps taken to manage those risks are documented on a risk register, which is reviewed by the management team and presented to Council. Council is satisfied that the risks are managed adequately. Risks are graded in terms of both potential financial impact and likelihood of occurrence.

One of the biggest risks from the pandemic is now business failure of our members, from the significant commercial damage to pub businesses from nearly two years of closure and severe trading restrictions. Supporting our members through the critical period ahead as they recover their businesses does present an opportunity for the BII team to both maintain membership and grow into the Free Trade sector, where we already have a strong track record. There does remain strong investment interest in the sector, and we believe that this could support the retention and growth of membership, despite this risk. However, the loss of independent licensees does present a risk of loss of long term and loyal members.

Overall membership continues to grow and initiatives with larger pub groups supporting their licensees through centrally paid membership has been secured on multiyear commitments. The membership base remains evenly split between free trade, leasehold and tenanted licensees providing further resilience in the longer term.

Privacy and data protection risks, while rated as a low possibility, carries severe implications. This continues to be addressed by strict system controls and adhering to guidance and regulation under the Data Protection Act.

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The British Institute of Innkeeping

Council’s Report

For the year ended 31 December 2021

Plans for the future

The BII team remains committed to further enhancing the core services provided by membership alongside targeting further growth. All areas are under constant review to drive further improvements.

Membership growth is a key priority, and we have clear plans to target estate wide membership in national and regional pub groups, alongside independent free trade growth through partners. There remains a strong free trade sector of around 20,000 pubs which presents a significant opportunity for growth.

Our events programme continues to develop, particularly after the significant success of the BII Winter Event. A minimum of three core member events will be delivered in the coming year: the BII People Conference showcasing the National Innovation in Training (NITAs) Awards in April, our Summer Event showcasing the Licensee of the Year Award (LOYA) in June and the Tied Trade Forum in October.

Our connection to our members is critical and we are enhancing the proactive contact across all our members. Building on the initial welcome call that all members get we are now adding additional contacts throughout the year to check in with all our members. The use of member insight surveys will continue to be a key platform to ensure we are developing our services and support in line with member priorities.

Our Trusted Partner network continues to grow strongly, and we see further opportunity in this area. As our members tackle the fragility of their business due to the pandemic and ongoing crippling inflation, they will need to review all areas of their business to improve the quality and cost of operations.

Our partnership with the Skills and Education brings together huge opportunities for growth for the BII and BIIAB together. The structural problem facing hospitality around resourcing presents significant opportunities to the BII & BIIAB promoting professional development pathways and membership support. In particular proving specific membership services for team members to support their performance and progression in hospitality remains a key focus area.

Covid19 risks

The BII is hopeful that the pandemic impact is beginning to reach its end with normal operations expected to return to pubs in the first half of 2022 as all restrictions fall away across the UK.

Structure, governance and management

The organisation is a charitable company limited by guarantee, incorporated on 1 December 1981 and registered as a charity on 11 February 1982. The charity is registered under the name The British Institute of Innkeeping and it trades under the title of BII.

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The British Institute of Innkeeping

Council’s Report

For the year ended 31 December 2021

The company was established under a memorandum of association which established the objects and powers of the charitable company and is governed under its articles of association.

All the Council give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 7 to the accounts.

The BII is a membership organisation and as such all decisions are made by the members in general meetings.

The members have delegated the day to day running of the BII to the National Council. The Council consists of a Chair, 3 Regional chairs and 6 industry experts. The Board reviews regularly that the make up of its Council, is reflective of its wider membership.

Council delegates to the Chief Executive the day-to-day management and direction of the BII’s business, together with the right to appoint and remove such paid officers and employees as he/she may deem necessary for the purposes of the BII together with the right to prescribe their respective duties and remuneration.

The BII also supports its local members through a network of 10 regions covering England, Wales and Scotland and has regional councils in each area. The regions are independent organisations and are not included in the financial statements of the British Institute of Innkeeping.

Committees and Advisory Groups are appointed by Council from time to time to exercise such powers and to perform such duties under the control of Council as may be delegated to them by Council. The current committees are:

Appointment of Council

The BII is governed by its National Council, which is formed of Statutory Members who hold office in accordance with the Articles of Association. For the purposes of company law, the members of Council are treated as the directors mentioned in that section. All directors of the BII are trustees of the charity.

Trustee induction and training

New Council members receive formal training about the roles and responsibilities of trustees generally. They are also issued with comprehensive documentation about all aspects of the BII's operations.

Refresher training continues to be available on request for any Council member. Additionally, whenever new legislation affecting the BII is introduced the full National Council are appraised of the potential impact of the changes.

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The British Institute of Innkeeping

Council’s Report

For the year ended 31 December 2021

Related parties and relationships with other organisations

The BII has the following relationships with related parties, subsidiaries, and other connected organisations:

Remuneration policy for key management personnel

The aim of the BII’s remuneration policy is to ensure BII achieves best value whilst ensuring it can attract the best talent for its key roles. Salary levels of key management personnel are benchmarked against pay levels in similar charitable organisations but also with organisations in the licensed retail sector. The remuneration benchmark is the mid-point range for similar roles but can be adjusted for additional responsibilities or specialised skills. Salaries are reviewed annually and normally increased in accordance with average earnings.

Funds held as custodian trustee on behalf of others

The BII does not hold any funds on behalf of other organisations.

Statement of responsibilities of the Council

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

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

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The British Institute of Innkeeping

Council’s Report

For the year ended 31 December 2021

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

In so far as the Council are aware:

The Council are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 December 2021 was 11 (2020: 10). The Council are members of the charity, but this entitles them only to voting rights. The Council have no beneficial interest in the charity.

Auditor

Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.

The Council’s annual report has been approved by the Council on 3 May 2022 and signed on their behalf by

Mark Robson Chairman

12

Independent auditor’s report

To the members of

The British Institute of Innkeeping

Opinion

We have audited the financial statements of The British Institute of Innkeeping (the ‘parent charitable company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2021 which comprise the consolidated statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

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 group financial statements section of our report. We are independent of the group and parent charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Council's 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 British Institute of Innkeeping 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 Council with respect to going concern are described in the relevant sections of this report.

13

Independent auditor’s report

To the members of

The British Institute of Innkeeping

Other Information

The other information comprises the information included in the Council’s annual report, other than the group financial statements and our auditor’s report thereon. The Council is responsible for the other information contained within the annual report. Our opinion on the group financial statements does not cover the other information, and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the group financial statements or our knowledge obtained in the course of 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 this gives rise to a material misstatement in the group financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the Council’s annual report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and Charities Act 2011 requires us to report to you if, in our opinion:

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Independent auditor’s report

To the members of

The British Institute of Innkeeping

Responsibilities of the Council

As explained more fully in the statement of Council’s responsibilities set out in the Council’s annual report, the Council members (who are also the directors of the parent charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Council determines 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 Council is responsible for assessing the group’s and the parent charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Council either intends to liquidate the group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed auditor under the Companies Act 2006 and section 151 of the Charites Act 2011 and report in accordance with those Acts.

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

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

Capability of the audit in detecting irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

15

Independent auditor’s report

To the members of

The British Institute of Innkeeping

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

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

16

Independent auditor’s report

To the members of

The British Institute of Innkeeping

Use of our report

This report is made solely to the charitable company's members as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Orchard (Senior statutory auditor)

9 June 2022

for and on behalf of Sayer Vincent LLP, Statutory Auditor Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL

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

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The British Institute of Innkeeping

Consolidated statement of financial activities (incorporating an income and expenditure account)

For the year ended 31 December 2021

Note
Income from:
3
4
6
6
6
7
Transfers between funds
Net movements in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
Net (expenditure)/income before other recognised gains and losses
Gains on disposal of subsidiary
Net (expenditure)/income for the year
Raising funds
Total expenditure
Charitable activities
Qualifications, examinations and education
Membership
Publications and handbooks
Investments
Total income
Expenditure on:
Donations and legacies
Charitable activities
Other trading activities
Qualifications, examinations and education
Membership
Publications and handbooks		 Continuing
operations
£
17,000
879,432
-
-
481,337
2,323
Discontinued
operations
£
-
-
184,020
3,040
11,316
-		 2021

Total
£
17,000
879,432
184,020
3,040
492,653
2,323
1,578,468
152,863
1,429,142
234,822
3,553
1,820,380
(241,912)
293,841
51,929
-
51,929
919,279
971,208		 Continuing
operations
(as restated)
£
99,213
851,529
-
-
254,835
1,477

Discontinued
operations
(as restated)
£
-
-
1,570,092
28,566
37,204
-		 2020


Total
£
99,213
851,529
1,570,092
28,566
292,039
1,477
1,380,092 198,376 1,207,054 1,635,862 2,842,916
152,863
1,429,142		 -
-
234,822
3,553		 157,216
849,816
-
-		 -
-
1,594,150
211,246		 157,216
849,816
1,594,150
211,246
1,582,005 238,375 1,007,032 1,805,396 2,812,428
(201,913)
293,841		 (39,999)
-		 200,022
-		 (169,534)
-		 30,488
91,928
(39,999)		 (39,999)
39,999		 200,022
(169,534)		 (169,534)
169,534		 30,488
-
51,929
919,279		 -
-		 30,488
888,791		 -
-		 30,488
888,791
971,208 - 919,279 - 919,279

Discontinued activities relate to BIIAB Qualifications Limited, which was sold on 28 February 2021. All other activities are continuing. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed above. All funds are unrestricted.

18

The British Institute of Innkeeping

Company no. 1601185

Balance sheets

As at 31 December 2021

Note
Fixed assets:
12
13
14
Current assets:
15
16
Liabilities:
17
Total unrestricted funds
Total assets less current liabilities
Stock
Debtors: amounts falling due within one year
Funds:
Cash at bank and in hand
Debtors: amounts falling due after one year
Tangible assets
Investments
Total funds
Creditors: amounts falling due within one year
Net current assets
Total net assets
Unrestricted income funds:
General funds
Subsidiary trading funds		 2021
2020
£
£
50,411
71,002
-
-
288,170
-
The group		 2021
2020
£
£
50,411
71,002
-
-
288,170
-
The group		 2021
2020
£
£
50,411
36,926
2
2
288,170
-
The charity		 2021
2020
£
£
50,411
36,926
2
2
288,170
-
The charity
338,581
-
304,554
1,050,518		 71,002
4,891
382,924
1,417,218		 338,583
-
825,534
597,544		 36,928
-
934,923
718,045
1,355,072
722,445		 1,805,033
956,756		 1,423,078
596,929		 1,652,968
577,010
632,627 848,277 826,149 1,075,958
971,208 919,279 1,164,732 1,112,886
971,208 919,279 1,164,732 1,112,886
1,164,732
(193,524)		 1,112,886
(193,607)		 1,164,732
-		 1,112,886
-
971,208 919,279 1,164,732 1,112,886
971,208 919,279 1,164,732 1,112,886

Approved by the trustees on 3 May 2022 and signed on their behalf by

Mark Robson Chairman

19

The British Institute of Innkeeping

Consolidated statement of cash flows

For the year ended 31 December 2021

Note
£
£
19
(458,211)
2,323
149,906
(60,718)
91,511
(366,700)
1,417,218
19
1,050,518
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2021
Cash flows from operating activities
Net cash provided by investing activities
Net cash used in operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Net proceeds from sale of subsidiary		 Note
£
£
19
(458,211)
2,323
149,906
(60,718)
91,511
(366,700)
1,417,218
19
1,050,518
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2021
Cash flows from operating activities
Net cash provided by investing activities
Net cash used in operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Net proceeds from sale of subsidiary		 Note
£
£
19
(458,211)
2,323
149,906
(60,718)
91,511
(366,700)
1,417,218
19
1,050,518
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
2021
Cash flows from operating activities
Net cash provided by investing activities
Net cash used in operating activities
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Net proceeds from sale of subsidiary		 £
£
517,266
1,477
-
(37,376)
(35,899)
481,367
935,851
1,417,218
2020		 £
£
517,266
1,477
-
(37,376)
(35,899)
481,367
935,851
1,417,218
2020
1,050,518 1,417,218

20

The British Institute of Innkeeping

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies

a) Basis of preparation and statutory information

The British Institute of Innkeeping is a charitable company limited by guarantee and is incorporated in the United Kingdom. The registered office address (and principal place of business) is Office 3 Sentinel House, Ancells Business Park, Harvest Crescent, Fleet GU51 2UZ.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

These financial statements consolidate the results of the charitable company and its wholly-owned subsidiaries BIIAB, BIIBusiness Ltd and BII Benchmarking and Accreditation Service Ltd on a line by line basis. BIIAB Qualifications Limited was a wholly owned subsiduary until 28th February 2021, and the income and expenditure for the two months have also been consolidated in these financial statements. Transactions and balances between the charitable company and its subsidiaries have been eliminated from the consolidated financial statements. Balances between the five companies are disclosed in the notes of the charitable company's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charitable company itself is not presented because the charitable company has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006.

Key judgements that the charity has made which have a significant effect on the accounts include disocunted long term debtors receivable from the sale of BIIAB Qualifications Limited.

b) Public benefit entity

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

c) Going concern

The Council has taken steps to reposition the group’s business model to improve the long term financial position. Focus has been given to the growth of membership, cost efficiencies and identification of new business opportunities. As the Council considers the group is able to pay their debts as they fall due for a period for 12 months from signing these accounts, the going concern basis remains appropriate. The Council has considered there are no material uncertainties, including the impact of Covid-19 on the group's operations, on the going concern assumption.

d) Income

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

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

21

The British Institute of Innkeeping

Notes to the financial statements

For the year ended 31 December 2021

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

f) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

g) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.

2021 (Mar- 2021 (Jan-
Dec) Feb) 2,020
Qualifications, examination and education 0% 28% 28%
Membership 39% 25% 23%
Publications and handbooks 0% 2% 1%
Support costs 58% 43% 45%
Governance costs 1% 1% 1%
Trading 2% 1% 2%

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on staff time, of the amount attributable to each activity.

Qualifications, examination and education 0% 48% 55%
Membership 100% 47% 40%
Publications and handbooks 0% 5% 5%

Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.

22

The British Institute of Innkeeping

Notes to the financial statements

For the year ended 31 December 2021

1 Accounting policies (continued)

h) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

i) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

j) Investments in subsidiaries

Investments in subsidiaries are at cost.

k) Stocks

Stocks are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes transport and handling costs. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks. Since the sale of the Awarding Body we no longer hold stock.

l) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. Accrued income from the sale of the Awarding Body has been valued with a discount rate of 10% to reflect the net present value.

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

n) Creditors and provisions

Creditors and provisions 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. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

o) Financial instruments

The charity only 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 their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

p) Pensions

The Institute operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Institute in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the Institute to the fund. The Institute has no liability under the scheme other than for the payment of those contributions.

23

The British Institute of Innkeeping

Notes to the financial statements

For the year ended 31 December 2021

q) Gains on disposal of subsidiary

These are calculated as the excess of discounted receipts over related discounted costs.

Parent charity results for the year
Donations and legacies
Costs of raising funds
Gains on disposal of subsidiary
HMRC Coronavirus Job Retention Scheme
Other corporate donations
Turnover
Net result of the charity
Events
Promotion of products
Hosting Fees
Consultancy
Expenditure
Staff costs
Gift aid donations from subsidiary undertakings		 2021
Total
£
1,761,296
(2,141,935)		 2020
Total
£
1,913,929
(1,942,790)
(380,639)
293,841
138,644		 (28,861)
-
-
51,846 (28,861)
2021
Total
£
-
17,000		 2020
Total
£
82,213
17,000
17,000 99,213
2021
Total
£
14,930
-
20,700
102,070
15,163		 2020
Total
£
79,996
16,800
23,625
16,496
20,299
152,863 157,216

24

The British Institute of Innkeeping

Notes to the financial statements

For the year ended 31 December 2021

5 Income from trading subsidiaries

The wholly owned trading subsidiaries, BII Benchmarking & Accreditation Services Ltd, BIIAB, BIIBusiness Ltd and (BIIAB Qualifications Limited until March 2021), which are all incorporated in the United Kingdom, donate their taxable profits to the Institute by gift aid. A summary of their trading results is shown below. The wholly owned trading subsidiaries, BII, The National Licensee's Certificate Awarding Body Ltd and Association for Personal Licence Holders have been dormant since incorporation.

BIIAB is the awarding body of the Institute and administers the examinations process. In 2020, BIIAB's activities were transferred to BIIAB Qualifications Limited. BIIBusiness Ltd undertakes the other trading activities of the Institute.

BII Benchmarking and Accreditation Services Ltd undertakes benchmarking services. Non-trading in both 2020 and 2021.

Summary profit and loss accounts

Summary profit and loss accounts
BII
Benchmarking
&
Accreditation
Services
Turnover
-
Contribution by BII
26,058
Cost of sales
(82)
Gross profit
25,976
Interest receivable
-
Administrative expenses
-
Net (loss)/profit
25,976
Taxation
-
Donation to the Institute
-
Retained in subsidiary
25,976
Current assets
-
-
-
Aggregate share capital and reserves
-
Creditors: amounts falling due within one
The assets and liabilties of the subsidiaries at 31 December:		 BII
Benchmarking
&
Accreditation
Services
-
26,058
(82)



BIIAB
-
185,168
(44,009)		 BIIAB
Qualification
s Ltd
198,408
-
(52,309)
2021
BIIBusiness
471,479
-
(237,453)		 2021 Total
£
669,887
211,226
(333,853)
547,260
-
(408,535)
138,725
-
(138,644)
81
497,360
690,884
(193,524)
(193,524)		 BII
Benchmarking
&
Accreditation
Services
-
-



BIIAB
619,571
(163,944)		 BIIAB
Qualifications
Ltd
979,054
(299,994)
2020

BIIBusiness
320,605
(201,993)		 2020 Total
£
1,919,230
(665,931)
25,976
-
-		 141,159
-
-		 146,099
-
(142,025)		 234,026
-
(266,510)		 -
(86)		 455,627
200
(369,922)		 679,060
-
(544,490)		 118,612
87
(279,739)		 1,253,299
287
(1,194,237)
25,976
-
-		 141,159
-
-		 4,074
-
(138,644)		 (32,484)
-
-		 (86)
-
-		 85,905
-
-		 134,570
-
-		 (161,040)
-
-		 59,349
-
-
25,976 141,159 (134,570) (32,484) (86) 85,905 (161,040) 59,349
-
-		 -
-		 497,360
690,884		 587
26,563		 533,725
674,884		 831,330
696,760		 255,494
416,534		 1,621,136
1,814,741
- - - (193,524) (25,976) (141,159) 134,570 (161,040) (193,605)
- - - (193,524) (25,976) (141,159) 134,570 (161,040) (193,605)

25

The British Institute of Innkeeping

Notes to the financial statements

For the year ended 31 December 2021

2021
Staff costs (Note 8)
Office and office admin costs
Member benefits
Membership recruitment
Examination process costs
Consultancy - new qualifications growth strategy
Staff travel and motoring costs
Qualifications development and maintenance
Events
Goods for resale
Professional fees
Council meetings and expenses
Membership processing costs
Other costs
Depreciation and loss on disposal of fixed assets
Freelance & Temporary staff
Support costs
Governance costs
Total expenditure 2021		 Membership
(continuing)
£
641,230
82
114,862
-
-
16,800
6,575
-
17,858
-
-
-
4,741
-
36,170		 Charitable activities Charitable activities Governance
costs
£
13,568
-
-
-
-
-
-
-
-
-
25,669
3,696
-
-
-		 Support
costs
£
321,068
206,090
-
-
-
-
5,764
-
-
-
-
-
-
876
67,300		 2021
Total
£
1,052,865
210,708
114,862
-
52,309
16,800
12,443
3,236
17,858
3,553
33,132
3,696
4,741
33,360
107,954		 2020
Total
£
1,184,118
499,953
124,740
-
463,938
8,000
20,071
5,525
503
37,237
62,862
1,078
435
39,548
207,204
Qualifications,
examinations
and education
(discontinued)
£
76,999
4,536
-
-
52,309
-
104
3,236
-
-
7,463
-
-
32,484
4,484		 Publications and
handbooks
(discontinued)
£
-
-
-
-
-
-
-
-
-
3,553
-
-
-
-
-
838,318
549,466
41,358		 181,615
51,632
1,575		 3,553
-
-		 42,933
-
(42,933)		 601,098
(601,098)
-		 1,667,517
-
-		 2,655,212
-
-
1,429,142 234,822 3,553 - - 1,667,517 2,655,212

26

The British Institute of Innkeeping

Notes to the financial statements

For the year ended 31 December 2021

6 Analysis of charitable expenditure (Prior year)

2020
Staff costs (Note 8)
Office and office admin costs
Member benefits
Membership recruitment
Examination process costs
Consultancy - new qualifications growth strategy
Staff travel and motoring costs
Qualifications development and maintenance
Qualifications development and maintenance - S4G
Events
Goods for resale
Professional fees
Council meetings and expenses
Membership processing costs
Other costs
Depreciation and loss on disposal of fixed assets
Freelance & Temporary staff
Support costs
Governance costs
Total expenditure 2020		 Charitable activities Charitable activities Governance
costs
£
13,500
-
-
-
-
-
-
-
-
-
-
62,862
1,078
-
-
-
77,440
-
(77,440)
-		 Support
costs
2020
Total
£
£
292,779
1,184,118
479,758
499,953
-
124,740
-
-
-
463,938
-
8,000
7,965
20,071
-
-
-
5,525
-
503
-
37,237
-
62,862
-
1,078
-
435
(15,318)
39,548
10,711
207,204
775,895
2,655,212
(775,895)
-
-
-
-
2,655,212
Membership
(continuing,
as restated))
£
441,468
3,367
24,920
-
-
-
3,116
-
-
503
-
-
-
435
-
162,673
636,482
193,974
19,360
849,816		 Qualifications,
examinations
and education
(discontinued,
as restated)
£
413,381
16,828
-
-
463,938
8,000
8,990
-
5,525
-
-
-
-
-
54,866
33,820
1,005,348
535,368
53,434
1,594,150		 Publications and
handbooks
(discontinued,
as restated)
£
22,990
-
99,820
-
-
-
-
-
-
-
37,237
-
-
-
-
-
160,047
46,553
4,646
211,246

27

The British Institute of Innkeeping

Notes to the financial statements

For the year ended 31 December 2021

7 Net income for the year

This is stated after charging Group
2021 2020
£ £
Depreciation 47,808 125,747
Loss on disposal of fixed assets 33,501 81,457
Operating lease rentals:
Property 59,426 129,248
Other 5,071 14,489
Auditors' remuneration (excluding VAT):
Audit 16,000 20,861
Other services 5,350 9,189

Staff costs were as follows:

Staff costs were as follows:
Employer’s contribution to defined contribution pension schemes
Other forms of employee benefits
Salaries and wages
Social security costs
Redundancy and termination costs
Freelance & Temporary staff		 2021
£
859,641
27,500
82,943
56,641
21,510
19,560		 2020
£
943,973
10,000
87,803
54,817
141,230
26,291
1,067,795 1,264,114

The following number of employees received employee benefits (excluding employer pension costs and national insurance) during the year between:

national insurance) during the year between:
2021 2020
No. No.
£60,000 - £69,999 1 -
£70,000 - £79,999 - 1
£80,000 - £89,999 - -
£90,000-£99,999 - -
£100,000-£109,999 - 1
£110,000 - 119,999 - -
£120,000 - 149,999 - -
£150,000 - £159,999 1 1

The total employee benefits including pension contributions and employer's national insurance of the key management personnel were £531k (2020: £606k).

The charity trustees were not paid or received any other benefits from employment with the charity in the year (2020: £nil). No charity trustee received payment for professional or other services supplied to the charity (2020: £nil).

Trustees' expenses represents the payment or reimbursement of travel and subsistence costs totalling £0 (2020 £1,274) incurred by (2020 11) members relating to attendance at meetings of the trustees.

28

The British Institute of Innkeeping

Notes to the financial statements

For the year ended 31 December 2021

9 Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

Qualifications, examinations and education
Membership
Publications and handbooks
Support
Governance
Trading activities		 2021
No.
1.7
9.1
0.2
7.7
0.7
0.1		 2020
No.
10.0
7.3
1.0
6.5
0.7
0.1
19.5 25.6

10 Related party transactions

Steven Alton, CEO of BII is on the Skills and Education Group board and Paul Eeles CEO of Skills and Eduction Group is on the BII board. BII sold BIIAB Qualifications to the Skills and Eduction Group on 28th Feb 2021. BII will receive fixed and profit share consideration. In 2021 BII received £338,196 in relation to the fixed consideration and consultancy fees (2020: £nil).

Accrued income for future fixed consideration at the year end was £469,999 (2020: £nil.)

BII paid £nil (2020: £2,000) plus VAT to KAM Media in the year where a KAM director is also a BII Trustee. All transactions were carried out on an arms length basis.

During the year BII recharged £nil (2020: £278,087) to BIIAB for management and administration support. At the end of the year owed BIIAB £nil (2020: £10,570).

During the year BII recharged £130,247 (2020: £441,710) to BIIAB Qualifications for management and administration support. At the end of the year, BIIABQL owed BII £nil (2020: £551,032).

During the year BII recharged £196,451 (2020: £242,200) to BIIBusiness for management and administration support. At the end of the year BIIBusiness owed BII £565,366 (2020: £266,987).

During the year BIIAB charged £nil (2020: £17,534) to BIIBusiness for management and adminstration support. At the end of the year BIIAB owed BIIBusiness £nil (2020: £51,922).

During the year BIIABQL recharged £11,674 (2020: £10,999) to BIIBusiness for management and administration support. At the end of the year BIIBusiness owed BIIABQL £nil (2020: £11,643).

The inter-company balances between BII and BIIAB were written off in the year following the sale of the awarding body. The amount totalled £141,159 (2020: £nil). The inter-company balances between BII and BII Benchmarking & Accreditation Services were written off in the year. The amount totalled £25,976 (2020: £nil). The inter-company balances between BII and BIIBusiness were written off in the year. The amount totalled £52,122 (2020: £nil).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

29

The British Institute of Innkeeping

Notes to the financial statements

For the year ended 31 December 2021

11 Taxation

The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes. The charity's trading subsidiaries gift aid available profits to the parent charity.

12 Tangible fixed assets

The group

Tangible fixed assets
The group
At the end of the year
Charge for the year
At the start of the year
Disposals
Disposals
Depreciation
At the end of the year
At the start of the year
Additions in year
At the start of the year
Cost
Net book value
At the end of the year		 Computer
systems &
database
£
368,087
52,697
(348,444)

Computer
equipment
£
133,656
8,021
(106,568)
Office &
exhibition
equipment
£
35,880
-
(35,880)

Fixtures and
fittings
£
45,823
(45,823)
Total
£
583,446
60,718
(536,715)
72,340 35,109 - - 107,449
314,346
40,654
(318,830)		 116,616
7,030
(102,778)		 35,659
124
(35,783)		 45,823
(45,823)		 512,444
47,808
(503,214)
36,170 20,868 - - 57,038
36,170 14,241 - - 50,411
53,741 17,040 221 - 71,002

All of the above assets are used for charitable purposes.

The charity

The charity
At the start of the year
Depreciation
Charge for the year
Cost
At the start of the year
Additions in year
Disposals
At the start of the year
Disposals
At the end of the year
At the end of the year
Net book value
At the end of the year		 Computer
systems &
database
£
143,227
52,696
(123,583)

Computer
equipment
£
133,656
8,021
(106,568)
Office &
exhibition
equipment
£
35,880
-
(35,880)

Fixtures and
fittings
£
45,823
(45,823)
Total
£
358,586
60,717
(311,854)
72,340 35,109 - - 107,449
123,583
36,170
(123,583)		 116,616
7,030
(102,778)		 35,659
124
(35,783)		 45,823
(45,823)		 321,681
43,324
(307,967)
36,170 20,868 - - 57,038
36,170 14,241 - - 50,411
19,644 17,040 221 - 36,905

All of the above assets are used for charitable purposes.

30

The British Institute of Innkeeping

Notes to the financial statements

For the year ended 31 December 2021

13
Investments		 13
Investments		 13
Investments
14
2021
2020
£
£
288,170
-
288,170
-
Accrued income
Investment in unquoted subsidiary undertakings, at cost
The group
Debtors: amounts falling due after one year		 2021
2020
£
£
-
2
The charity
2021
2020
£
£
288,170
-
The charity
288,170 - 288,170 -

This represents proceeds from Skills and Education Group over the next 5 years for the sale of the awarding body . BII is also entitled to a portion of profits of BIIAB up to 2026. However, the profit share cannot currently be ascertained with reasonable certainty, and is therefore a contingent asset and is not recognised as income as at the balance sheet date.

15 Stock

Stock
Handbooks & CD's 2021
2020
£
£
-
4,891
The group		 2021
2020
£
£
-
-
The charity
- 4,891 - -

16 Debtors: amounts falling due within one year

Debtors: amounts falling due within one year
Accured Income (note 14)
Trade debtors
Amounts due from group undertakings
Prepayments
VAT		 2021
2020
£
£
84,962
286,649
-
-
181,818
-
37,774
96,256
-
19
The group		 2021
2020
£
£
44,123
36,552
565,366
844,542
181,818
-
34,227
53,829
-
-
The charity
304,554 382,924 825,534 934,923

31

The British Institute of Innkeeping

Notes to the financial statements

For the year ended 31 December 2021

17 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Pension
Accruals
Taxation and social security
VAT
Trade creditors
Deferred income
Amounts due to group undertakings		 2021
2020
£
£
31,167
29,474
22,923
23,463
-
-
34,993
122,809
225,859
231,401
7,443
174
400,060
549,435
The group		 2021
2020
£
£
19,515
69,215
22,923
23,463
-
10,570
34,993
81,754
223,379
59,010
7,443
174
288,676
332,824
The charity
722,445 956,756 596,929 577,010

18 Deferred income

Deferred income comprises advance payments for services not yet delivered as well as subscription income received which relates to a future period.

Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 2021
2020
£
£
549,435
362,036
(549,435)
(362,036)
400,060
549,435
The group		 2021
2020
£
£
549,435
362,036
(549,435)
(362,036)
400,060
549,435
The group		 2021
2020
£
£
332,824
304,945
(332,824)
(304,945)
288,676
332,824
The charity		 2021
2020
£
£
332,824
304,945
(332,824)
(304,945)
288,676
332,824
The charity
400,060 549,435 288,676 332,824

19 Reconciliation of net income to net cash flow from operating activities

Net income / (expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
(Profit)/loss on disposal of subsidiary
Other non-cash movements relating to disposal of subsidiary
Loss on disposal of fixed assets
Dividends, interest and rent from investments
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by / (used in) operating activities		 2021
£
51,929
47,808
(293,841)
(133,326)
33,501
(2,323)
4,891
260,188
(427,038)		 2020
£
30,488
125,747
-
-
81,457
(1,477)
28,978
333,054
(80,981)
(458,211) 517,266

32

The British Institute of Innkeeping

Notes to the financial statements

For the year ended 31 December 2021

Analysis of cash and cash equivalents
Cash at bank and in hand
Total cash and cash equivalents		 At 1 January
2021
£
1,417,218
Cash flows
£
(366,700)		 £
1,050,518
At 31
December
2021
1,417,218 (366,700) 1,050,518

21 Operating lease commitments

The group and charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

follows for each of the following periods:
One to five years
Less than one year		 2021
2020
£
£
52,400
30,223
120,000
-
Buildings		 2021
2020
£
£
5,777
5,936
6,216
7,834
Other
172,400 30,223 11,993 13,770

22 Legal status of the charity

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

33