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2021-12-31-accounts

Charity Registration No. 292231

Company Registration No. 00405814 (England and Wales)

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees As at the date of this report the management board consists of the following Trustees :- As at the date of this report the management board consists of the following Trustees :-
M Szablewski (Chair)*
K J Reitmeier (Deputy Chair)* (Appointed 30 January 2022)
A M Mankowska (Secretary General)*
S Berkieta (Treasurer General)*
F Peplinski (Chief Scout)*
D Figiel (Chief Guide)*
T Ciecierska (Head of Senior Scouting)*
J Moszumanski (representative of the Scouting Auxiliary)
Rev. K Tyliszczak (Chief Chaplain) (Appointed 30 January 2022)
C Dutkowski (Regional Deputy Chair)* (Appointed 30 January 2022)
A J Janczuk (Regional Deputy Chair)* (Appointed 30 January 2022)
K Kawka (Regional Deputy Chair)* (Appointed 30 January 2022)
S Reitmeier (Regional Deputy Chair)* (Appointed 30 January 2022)
A B Szwagrzak (Regional Deputy Chair)* (Appointed 30 January 2022)
A J Wojno (Regional Deputy Chair)* (Appointed 30 January 2022)
F Aghamalian-Konieczna (Regional Deputy Chair) (Appointed 30 January 2022)
A Mahut (Board Member)* (Resigned 30 January 2022, Appointed 18 July
2022)
R J Rospedzihowski (Board Member)*
J Kaczorowska (Board Member)* (Appointed 30 January 2022)
M Nalewajko (Board Member)* (Resigned 9 August 2021, Appointed 30 January
2022, Resigned 17 May 2022)
H Sandig (Board Member)* (Appointed 30 January 2022)
B Pawlikowski (Board Member)* (Appointed 30 January 2022)
T Szadkowska-Lakomy (Board Member)* (Appointed 30 January 2022)
A Macheta* (Resigned 30 January 2022)
Rev. K Gawron (Resigned 9 August 2021)
* also directors for the purposes of company law
Secretary A M Mankowska
Charity number 292231
Company 00405814
number
Principal and 23-31 Beavor Lane
registered office
London
W6 9AR
Auditor Kendall Wadley LLP
Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Bankers Lloyds Bank plc Street Branch PO Box 1000 BX1 1LT

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

CONTENTS

Page
Trustees report 1 - 5
Statement of Trustees responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Balance sheet 11 - 12
Statement of cash flows 13
Notes to the financial statements 14 - 23

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The Trustees, certain of whom are also directors for the purposes of company law present their report and accounts for the year ended 31 December 2021.

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 charitable company's Memorandum and Articles of Association, the Companies Act 2006 and "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) (effective 1 January 2019)".

Objectives and activities

The policies adopted in furtherance of the charitable company objectives are to promote the physical, mental and spiritual development of Polish youth outside of Poland by Scouting and Guiding methods in accordance with the principles and traditions of the Scout and Guide movement.

Polish Scouting Association (International) Limited is divided into regional units which the company oversees, coordinating overall policy and methodology. Training, support and continuous professional development of scout and guide instructors around the world is a key role for the charitable company.

The charitable company has the following cost centres:

Public benefit

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the charitable company should undertake to provide public benefit.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

Achievements and performance

The social restrictions and lockdowns imposed as a result of the Covid-19 pandemic continued to dictate how the company’s activities were organised during most of 2021. Management Board meetings remain online, although more frequently they have a hybrid format, with small groups of trustees gathering in one location – usually at the PSA International headquarters in London.

a. Governance Matters

At the Association’s General Meeting held in March 2021, the new General Regulations were approved. Following this meeting the Regulations Committee coordinated the implementation of the new Regulations and undertook a review of other supplementary regulations, for which updates were required. These included:

The aforementioned documents were scrutinised by Trustees and reviewed by the World Advisory Council at its meeting in December 2021. The documents were approved at the General Meeting held in January 2022.

After the March 2021 General Meeting, the Chair invited the PSA Regional Chairs to attend Board meetings to facilitate their transition to becoming full Board Members. Two trustees resigned in August 2021: Rev. K.Gawron and M.Nalewajko.

The planned triennial General Meeting was held online in January 2022. A physical meeting was not possible, as Covid-related travel restrictions were still in place. The meeting approved the updated regulations as discussed earlier and elected a new Management Board, World Advisory Council, Audit Committee and Disciplinary Committee. The new Management Board was elected according to the new criteria outlined above. M. Nalewajko, who was re-elected as a Trustee at the General Meeting in January 2022, resigned in May. With authority to replace any vacancies, the Board elected A.Mahut as a Trustee in July 2022.

b. Beavor House

The 2nd phase of the renovation and repair of the Beavor House headquarters took place between February and June 2021. This phase involved the refurbishment of the offices of the Scout and Guide HQ and the Archives room and was partly funded by a grant obtained from the Polish Foreign Ministry’s programme called ‘Cooperation with Poles Abroad 2020 – Real Estates’. A delegation from the Ministry visited the UK in September 2021 to view the Beavor House premises and gave positive feedback highlighting the project management as an example of good governance.

The 15-year lease signed with TIS-London Ltd in March 2015 was by agreed licence, assigned to The Moat School Ltd (same educational group ownership) and a 6-month deposit guarantee was returned to TIS with Moat replacing the guarantee with a six-month advance payment. In August 2021 The Moat School signed a 12-month Licence Agreement allowing the school to use parts of the PSA (International) premises during specified days/hours. Following a successful trial period, the Licence Agreement was renewed in September 2022 for a further year.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

c. Other highlights of the Board’s activities include:

The Chief Scout and Chief Guide together with their respective executive councils continued to support the scouting activities in all regions. Both councils produced badge programmes adapted to pandemic conditions and shared examples of best practice amongst the regions. There was a gradual transition from online to face-to-face activities during the reporting period, with an almost full and normal programme of events resuming from September 2021.

The Senior Scouts Executive Council completed the review of its internal regulations and updated its website.

Financial review

During the year income exceeded expenditure by £150,356 (2020 - £286,648). This surplus was taken to the fund balance brought forward giving a total fund balance at 31 December 2021 of £2,914,587.

Of the total reserves, £2,403,986 (2020 - £2,400,126) is in connection with the tangible fixed assets and investment property held by the charity, these funds could only be realised upon a sale of the same which leaves free reserves of £510,601 (2020 - £364,105) for use in the general activities of the charity.

It is the policy of the charitable company to maintain free reserves in unrestricted funds which have not been designated for a specific use at a level equivalent to three years expenditure. The directors consider that reserves at this level will ensure that, in the event of a significant drop in income, they will be able to continue the charitable company's current activities whilst resolving any issues arising from such a decline. It will also permit the charitable company to carry out maintenance work and improvements on its freehold property as required due to age. An excess of this level of reserves has been maintained throughout the year.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

In 2019 the Company signed a Co-operation Agreement with Zwiazek Harcerstwa Rzeczypospolitej, acting as agent for the National Freedom Foundation, a Polish Government Agency. Under this agreement, the Company received financial support under two categories:

(a) leader training and programme execution

(b) infrastructural expenditure to run the activities across the entire Association.

The restricted funds granted amounted to £55,677 (2020 - £122,216) and formal reconciliation of expenditure was verified by the Agent in accordance with the Co-operation Agreement.

Risk management

There were no reportable incidents in 2021 nor have there been any up to the report date.

In 2022 the Company appointed a Risk Manager to review risk management processes in all areas of the Company and to create a formal Risk Register.

Future plans

The Association’s three organisations are adapting their plans to the post Covid environment, with rapid transition to more normal operations, in all countries.

In addition to developing new countries of operation, the Association is planning:

Structure, governance and management

The charitable company is a company limited by guarantee and is governed by its Memorandum and Articles of Association dated 8 March 1946 and as amended by special resolutions dated 9 May 1985, 6 February 2004, 17 November 2012 and 29 August 2013. The charitable company registered with the Charity Commission on 9 August 1985.

The legal and administrative page gives details of the charity's principal officers and advisors.

The directors for the purpose of company law, who served during the year are as indicated on the legal and

administrative information page.

None of the Trustees has any beneficial interest in the Company. All of the Trustees are members of the company and as all members, guarantee to contribute £1 in the event of a winding up.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2021

The charitable company is managed by the Management Board who are elected at an Annual General Meeting and whose tenure lasts 3 years. The last elections took place on 28 January 2022 and elected 22 members with one position left vacant.:

The President Deputy President 6 Regional Deputy Presidents Chief Scout Chief Guide Head of Senior Scouting Representative for the Scouting Auxiliary Hon. Secretary Hon. Treasurer Chief Chaplain 6 members

The Management Board is the executive body running the day to day activities of the charitable company.

Investment policy

The trustees have considered the most appropriate policy for investing funds and have found that a combination of interest bearing bank accounts and rental income from part of the property meets their requirement to generate both income and capital growth.

Related parties

Formally none. Polish Scouting Association (UK Region) Ltd operates as a stand-alone charitable company but is a member of the Association represented by Polish Scouting Association (International) Limited. Similarly Polish Scouting Organization – ZHP Inc. in the United States and similar “not for profit organisations in Australia, Austria, Canada, France and Ireland are members of the Association.

Auditor

In accordance with the company's articles, a resolution proposing that Kendall Wadley LLP be reappointed as auditor of the company will be put at a General Meeting.

Disclosure of information to auditor

Each of the directors has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditors are aware of such information.

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

On behalf of the Management Board and Trustees

Ms A M Mankowska (Company Secretary, Trustee) Dated: 26 September 2022

M Szablewski

(Chairman, Trustee) Dated:26 September 2022

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees who are also the directors of Polish Scouting Association (International) Limited for the purpose of company law, are responsible for preparing the Trustees Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year.

In preparing these accounts, the trustees are required to:

The trustees 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 accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

Opinion

We have audited the financial statements of Polish Scouting Association (International) Limited (the ‘charitable company’) for the year ended 31 December 2021 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and 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 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 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.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the statement of Trustees responsibilities, the Trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was considered capable of detecting irregularities, including fraud

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

Audit responses to risks identified

The information obtained through the assessment to risk procedures is reviewed and the following work undertaken:

It should be noted that Auditing standards limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Sarah Morley ACA (Senior Statutory Auditor)

Sarah Morley ACA (Senior Statutory Auditor)
For and on behalf of Kendall Wadley LLP 26 September 2022
Chartered Accountants
Statutory Auditor Granta Lodge
71 Graham Road
Malvern
Worcestershire
WR14 2JS

Kendall Wadley LLP is eligible for appointment as auditor of the charitable company by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2021

Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£		 Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£		 Unrestricted
Restricted
funds
funds
2021
2021
Notes
£
£		 Total
Unrestricted
Restricted		 Total
Unrestricted
Restricted		 Total
Unrestricted
Restricted		 Total
funds funds funds funds
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Income from:
Donations
3		 - 145,479 145,479 6,036 217,308 223,344
Charitable activities
4		 32,930 - 32,930 39,610 - 39,610
Investments
5		 193,725 - 193,725 158,808 - 158,808
Total income 226,655 145,479 372,134 204,454 217,308 421,762
Expenditure on:
Raising funds
6		 949 - 949 845 - 845
Charitable activities
7		 93,465 127,364 220,829 48,842 85,427 134,269
Total expenditure 94,414 127,364 221,778 49,687 85,427 135,114
Net income for the year/
Net movement in funds 132,241 18,115 150,356 154,767 131,881 286,648
Fund balances at 1 January
2021
2,632,350 131,881 2,764,231 2,477,583 - 2,477,583
Fund balances at 31
December 2021
2,764,591 149,996 2,914,587 2,632,350 131,881 2,764,231

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

BALANCE SHEET

AS AT 31 DECEMBER 2021

Notes 2021 2021 2020 2020
£ £ £ £
Fixed assets
Tangible assets
13
Investment properties
14
Current assets		 118,208
480,577
598,785
(3,613)		 853,986
1,550,000
2,403,986
595,172
2,999,158
(84,571)
2,914,587
149,996
2,764,591
2,914,587		 131,283
374,359
505,642
(141,537)		 850,126
1,550,000
2,400,126
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within
one year
16
Net current assets 364,105
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
17
Net assets
2,764,231
-
2,764,231
Income funds
Restricted funds
19		 131,881
Unrestricted funds 2,632,350
2,764,231

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2021

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 December 2021, although an audit has been carried out under section 144 of the Charities Act 2011.

The trustees acknowledge their responsibilities for ensuring that the charity keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 26 September 2022

Ms A M Mankowska Mr M Szablewski
(Company Secretary,Trustee) (Chairman, Trustee)

Company Registration No. 00405814

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash (absorbed by)/generated from
operations
23
Investing activities
Purchase of tangible fixed assets		 2021 2020
£
£
£
(59,291)
16,942
(534,260)
158,808
165,509
(375,452)
-
-
106,218
(358,510)
374,359
732,869
480,577
374,359		 2020
£
£
£
(59,291)
16,942
(534,260)
158,808
165,509
(375,452)
-
-
106,218
(358,510)
374,359
732,869
480,577
374,359
£
(28,216)
193,725
Interest and rental income received
Net cash generated from/(used in)
investing activities
Net cash used in financing activities
Net increase/(decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
732,869
374,359

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

Company information

Polish Scouting Association (International) Limited is a private company limited by guarantee incorporated in England and Wales. The registered office is 23-31 Beavor Lane, London, W6 9AR.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and "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) (effective 1 January 2019)". The charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

The accounts have been prepared under the historical cost convention and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the charitable company has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

1.5 Resources expended

Expenditure is accounted for on an accruals basis. Liabilities are acknowledged when a legal or constructive obligation exists at the balance sheet date as a result of a past event.

Governance costs are wholly attributable to the charitable activities of the entity.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings over 50 years Fixtures, fittings & equipment 15% on net book value

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activities.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss.

1.8 Impairment of fixed assets

At each reporting end date, the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in income/ (expenditure for the year, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately, unless the relevant asset is carried in at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

1 Accounting policies

(Continued)

1.10 Financial instruments

The charitable company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charitable company’s contractual obligations expire or are discharged or cancelled.

1.11 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/(expenditure) for the period.

2 Critical accounting estimates and judgements

In the application of the charitable company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

3 Donations

Restricted Unrestricted Restricted Total
funds funds funds
2021 2020 2020 2020
£ £ £ £
Grants received 145,479 6,036 217,308 223,344

4 Charitable activities

Charitable
income -
unrestricted
funds
Charitable
income -
unrestricted
funds
2021
2020
£
£
Subscriptions
23,310
33,382		 Charitable
income -
unrestricted
funds
Charitable
income -
unrestricted
funds
2021
2020
£
£
Subscriptions
23,310
33,382		 Charitable
income -
unrestricted
funds
Charitable
income -
unrestricted
funds
2021
2020
£
£
Subscriptions
23,310
33,382
2021 2020
£ £
23,310 33,382
Other income 9,620 6,228
32,930 39,610
Investments
Unrestricted
Unrestricted
funds
funds
2021
2020
£
£
funds funds
2021 2020
£ £
Rental income 193,687 158,587
Interest receivable 38 221
193,725 158,808

5 Investments

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

6 Raising funds

2021 2020
£ £
Other costs
Costs of incidental goods sold 949 845
949 845
Charitable activities
Furtherance
Furtherance
of scouting of scouting
2021 2020
£ £
Depreciation and impairment 24,356 13,288
Rates 8,265 8,215
Insurance 3,515 3,213
Light and heat 3,557 1,828
Property repairs and maintenance 122,710 31,401
Books and publications 6,766 11,671
Telephone, website and communications 13,698 10,169
Travel 3,919 2,184
Services and administration 4,493 3,106
Conference costs and sundry expenses 9,570 35,260
200,849 120,335
Grant funding of activities (see note 8) 8,413 1,924
Share of governance costs (see note 9) 11,567 12,010
220,829 134,269
Analysis by fund
Unrestricted funds 93,465 48,842
Restricted funds 127,364 85,427
220,829 134,269

7 Charitable activities

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2021

8 Grants payable

Furtherance
Furtherance
of scouting of scouting
2021 2020
£ £
Grants to Polish communities:
Other 8,413 1,924

Of the amount shown above £8,413 (2020 - £1,477) is in connection with restricted fund activities.

9 Support costs

Support costs Support costs Support costs
Support
costs
Governance
costs
£
£		 2021 2020
£ £ £ £
Audit fees - 3,120 3,120 3,120
Legal and professional - 8,447 8,447 8,890
- 11,567 11,567 12,010
Analysed between
Charitable activities - 11,567 11,567 12,010

Governance costs includes payments to the auditors of £3,120 (2020- £3,120) for audit fees.

10 Trustees

None of the Trustees (or any persons connected with them) received any remuneration or benefits from the charitable company during the year. Re-imbursed expenses incurred in the course of the conduct of charitable activities of £4,762 were paid to 6 directors (2020: £2,908 6 trustees and 6 directors).

11 Employees

The average monthly number of employees during the year was:

The average monthly number of employees during the year was:
2021 2020
Number Number
Total - -

There were no employees whose annual remuneration was more than £60,000.

12 Taxation

As a result of the charitable status of the charitable company no taxation liability arises.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

13
Tangible fixed assets
Cost
At 1 January 2021
Additions
At 31 December 2021
Depreciation and impairment
At 1 January 2021
Depreciation charged in the year
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020		 Land and
buildings		 Fixtures,
fittings &
equipment		 Total
£ £ £
993,535 62,266 1,055,801
14,135 14,081 28,216
1,007,670 76,347 1,084,017
164,866 40,809 205,675
20,186 4,170 24,356
185,052 44,979 230,031
822,618 31,368 853,986
828,669 21,457 850,126
14
Investment property
Fair value
At 1 January 2021 and 31 December 2021		 2021
£
1,550,000

Investment property comprises that portion of the freehold land and buildings held by the charity used for rental purposes. The fair value of the investment property has been arrived at by applying the average commercial property rental yield percentage as reported in annual reviews produced by the Property Industry Alliance. Significant movements in that percentage are accounted for through investment gains and losses.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:

2021 2020
£ £
Cost 547,399 547,399
Accumulated depreciation 272,267 261,319
Carrying amount 275,132 286,080

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

15 Debtors

Debtors
2021 2020
£ £
Other debtors 114,172 126,025
Prepayments and accrued income 4,036 5,258
118,208 131,283

In accordance with the provisions of the SORP and FRS 102, rental income is accounted for evenly over the life of the lease. In rent free periods this gives rise to a notional debtor which is released to the Statement of Financial Activities over time. Other debtors of £112,400 relate to this process, of this amount £98,776 (2020 - £112,400) will be released in more than one year.

16 Creditors: amounts falling due within one year

16
Creditors: amounts falling due within one year
Notes
Deferred income
18
Other creditors
Accruals and deferred income
17
Creditors: amounts falling due after more than one year
Other creditors
18
Deferred income
Other deferred income		 2021 2020
£ £
- 48,721
- 84,591
3,613 8,225
3,613 141,537
2021 2020
£ £
84,571 -
2021 2020
£ £
- 48,721

Deferred income relates to rent and subscriptions received in advance of the due date, all is released in the subsequent accounting period.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

19 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Zwiazek Harcerstwa
Rzeczypospolitej (ZHR)		 Movement in funds Movement in funds Movement in funds Movement in funds Movement in funds Movement in funds
Incoming
resources		 Resources
expended
Balance at
1 January 2021		 Incoming
resources		 Resources
expended
Balance at
31 December
2021
£ £ £ £ £ £
122,216 55,677
83,617
6,185
145,479
(85,427) 36,789 (37,432) 55,034
Project MSZ - Beavor Lane
building
95,092 - 95,092 (85,519) 93,190
Aid Project in Argentina - - - (4,413) 1,772
217,308
(85,427) 131,881 (127,364) 149,996

ZHR - Monies were received from the above, as agent, to assist with the cost of implementing the activities of the Polish Scouting Association based in London (Polish Scouting Association (International) Limited) under the project "Development of ZHR 2018-19" supported by the ROHIS program of the National Institute of Freedom.

Project MSZ -funds received to assist in the repair (2020 - refurbishment) of the headquarters building.

The balances on the above funds are represented by expenditure on the development of the headquarters building and will be eroded over time by depreciation.

Aid Project in Argentina - a programme of financial assistance to the poorest Polish families.

20 Analysis of net assets between funds

Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
December 2021 are
represented by:		 Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
December 2021 are
represented by:		 Unrestricted
funds
Restricted
funds
2021
2021
£
£
Fund balances at 31
December 2021 are
represented by:		 Total
Unrestricted
funds		 Total
Unrestricted
funds		 Restricted
funds		 Total
2021 2021 2021 2020 2020 2020
£ £ £ £ £ £
Tangible assets 703,990 149,996 853,986 718,245 131,881 850,126
Investment properties 1,550,000 - 1,550,000 1,550,000 - 1,550,000
Current assets/(liabilities) 595,172 - 595,172 364,105 - 364,105
Long term liabilities (84,571) - (84,571) - - -
2,764,591 149,996 2,914,587 2,632,350 131,881 2,764,231

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2021

21 Operating lease commitments Lessor

At the reporting end date the charitable company had contracted with tenants for the following minimum lease payments:

2021 2020
£ £
Within one year 151,795 113,846
Between two and five years 607,180 607,180
In over five years 645,129 796,924
1,404,104 1,517,950

22 Related party transactions

During the year the charitable company entered into transactions with related parties, these were under the normal course of conduct of charitable activities.

23
Cash generated from operations		 2021 2020
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease/(increase) in debtors
(Decrease) in creditors
(Decrease)/increase in deferred income
Cash (absorbed by)/generated from operations		 £ £
150,356 286,648
(193,725) (158,808)
24,356 13,288
13,075
(54,487)
(4,632) (71,819)
(48,721) 2,120
(59,291) 16,942
24
Analysis of changes in net funds
The charitable company had no debt during the year.