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2022-12-31-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 2022

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 :-

M Szablewski (President) K J Reitmeier (Deputy President) (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) M Moszumanska (representative of the Scouting Auxiliary) Rev. K Tyliszczak (Chief Chaplain) (Appointed 28 January 2022) C Dutkowski (Regional Deputy President) (Appointed 30 January 2022, resigned 17 November 2022) K Kawka (Regional Deputy President) (Appointed 30 January 2022, resigned 17 November 2022) S Reitmeier (Regional Deputy President) (Appointed 30 January 2022) A B Szwagrzak (Regional Deputy President) (Appointed 30 January 2022) A J Wojno (Regional Deputy President) (Appointed 30 January 2022) F Aghmalion-Konieczna (Regional Deputy (Appointed 30 January 2022) President) M Nowak (Regional Deputy President) (Appointed 17 November 2022) Z Pisanski (Regional Deputy President) (Appointed 17 November 2022) M Weglinska (Regional Deputy President) (Appointed 19 June 2023) A Mahut (Board Member) (Resigned 30 January 2022, Re-apointed 18 July 2022) R J Rospedzihowski (Board Member) A Janczuk (Board Member) (Appointed 30 January 2022) J Kaczorowska (Board Member) M Nalewajko (Board Member) (Resigned 9 August 2021, Appointed 30 January 2022, Resigned 17 May 2022) H Sandig (Board Member) B Pawlikowski (Board Member) (Appointed 30 January 2022) T Szadkowska-Lakomy (Board Member) (Appointed 30 January 2022) A Macheta (Resigned 30 January 2022) * 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

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

LEGAL AND ADMINISTRATIVE INFORMATION

Auditor Kendall Wadley LLP Granta Lodge 71 Graham Road Malvern Worcestershire WR14 2JS Bankers Lloyds Bank plc 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 - 24

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

TRUSTEES REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022

The trustees who are also directors for the purposes of company law present their report and accounts for the year ended 31 December 2022.

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.

Achievements and performance

From the beginning of 2022, Covid-19-related restrictions began to ease gradually, such that by the end of the year, normal scouting activities had resumed.

(a) Governance Matters

The triennial General Meeting took place in January 2022. The meeting was held online, because Covid-related travel restrictions were still in force at the time. The meeting was run in accordance with the General Regulations that had been approved in 2021.

A new Management Board was elected, which now includes the Chairs of PSA Regions (Argentina, Australia, Canada, France, Ireland, UK and USA). They act as Regional Deputy Presidents and Trustees of PSA International with full voting rights, but also as representatives of their respective Regions. Their inclusion on the Board allows for better communication of matters affecting the Association as a whole, as well as giving the Board better insight into the operations of each Region. Smaller independent units, such as those in Austria, Belgium, Germany and Spain continue to report directly to the Scout and Guide International Headquarters.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022

The following were also approved at the General Meeting:

A new World Advisory Council, Audit Committee and Disputes Committee were also elected at the General Meeting. The Committees’ composition and Chairs were ratified by the Management Board.

The Board also coopted four Associate Members, with specific assignments (liaison with scouting organisations and government / non-government (NGO) agencies in Poland; risk management and editorship of the in-house publication (‘Ognisko’). It created four committees to which the following duties were delegated: Estates and Facilities (management of Beavor House); Regulations (oversight PSA regulations); History and Archives (management of PSA archives); Liaison with Poland (as described above). In September 2022, the Board also created a Small Grants Committee to review and approve any applications for grants and financial subsidies up to the value of £10K. The work of these committees and of the Associate Board Members is reported upon routinely at Board Meetings.

A new Conflicts of Interest Policy was approved by Trustees in May 2022.

Management Board meetings are mainly conducted online to facilitate the participation of Trustees based outside of the UK.

A number of Board member changes occurred following the General Meeting in January 2022, including the resignations of M. Nalewajko, K Dutkowski and K Kawka. In their places the Board appointed A Mahut, M Nowak and M Weglinska. The Board also appointed Z Pisanski into the vacant position as a Regional Deputy Chair representing the USA.

(B) Beavor House

The Burlington House School – formerly known as The Moat School – continues to use the ground and 1[st] floors of Beavor House in line with the existing 15-year lease agreement, signed in March 2015 and which next comes under review in March 2025.

PSA International granted Burlington House School a licence under which, for an agreed fee, the school uses certain facilities of the second floor, within designated hours. PSA International and Burlington House School signed a lease, running from 1/11/2021 to 31/8/2024, for additional space relating to a Storeroom at the premises.

Full plans for the repair and renovation of the west and south elevations of the Beavor House building and replacement of all windows were prepared. However, post year-end it was agreed to delay the project until 2024 for logistical and planning reasons.

Independent Fire Risk Assessments of the Premises were completed in February 2022 and post yearend in 2023. PSA International Fire Risk Policy for the building was reviewed and approved by the Board in May 2022.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022

PSA International signed a cooperation agreement with Związek Harcerstwa Rzeczypospolitej (ZHR) in Poland, supporting humanitarian activities for Ukrainian refugees in Poland. The Board delegated a member of the Association to the ZHR Committee managing the efforts. Many units of the worldwide Polish Scouting Association organised or participated in local fundraising activities.

As part of this programme, rallies and events were staged in various locations including the UK in September 2022 and Argentina in December 2022 – PSA members from other Regions attended these events. Delegations of PSA members also attended events in Vilnius, Lithuania in May 2022. Post year-end delegates took part in activities in Italy and Poland. During the year other regions organised rallies and activities as part of their local programmes.

Financial review

Excluding a fair value adjustment in respect of investment property of £45,000, in the year income exceeded expenditure by £157,149 (2021 - £150,356). When taking into account the fair value adjustment, the total net movement in funds was a surplus of £202,149 (2021 - £150,356).

This surplus was taken to the fund balance brought forward giving a total fund balance at 31 December 2022 of £3,116,736.

Of the total unrestricted reserves of £2,972,019 (2021 - £2,764,591), £2,283,158 (2021 - £2,253,990) 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 £688,861 (2021 - £510,601) for use in the general activities of the charity.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

TRUSTEES REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2022

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.

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:

The restricted funds granted amounted to £89,654 (2021 - £55,677) 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 2022 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. This work is ongoing.

Future Plans

The Association’s plans include:

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, 29 August 2013 and 28 January 2022. 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.

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 2022

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 30 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 7 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 Argentina, Australia, Austria, Canada, France and Ireland are members of the Association.

Auditor

The auditor, Kendall Wadley LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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: 27 September 2023

M Szablewski

(Chairman, Trustee) Dated:27 September 2023

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

STATEMENT OF TRUSTEES RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022 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) For and on behalf of Kendall Wadley LLP 27 September 2023 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 2022

Unrestricted
Restricted
funds
funds
2022
2022
Notes
£
£
Income from:
Donations
3
-
97,431
Charitable activities
4
29,860
-
Investments
5
213,124
-
Total income
242,984
97,431
Expenditure on:
Raising funds
6
17,334
-
Charitable activities
7
63,222
102,710
Total expenditure
80,556
102,710
Net gains/(losses) on
investments
12
45,000
-
Net income/(expenditure)
for the year/
Net movement in funds
207,428
(5,279)
Fund balances at 1 January
2022
2,764,591
149,996
Fund balances at 31
December 2022
2,972,019
144,717		 Total
Unrestricted
Restricted
funds
funds
2022
2021
2021
£
£
£
97,431
-
145,479
29,860
32,930
-
213,124
193,725
-
340,415
226,655
145,479
17,334
949
-
165,932
93,465
127,364
183,266
94,414
127,364
45,000
-
-
202,149
132,241
18,115
2,914,587
2,632,350
131,881
3,116,736
2,764,591
149,996		 Total
2021
£
145,479
32,930
193,725
372,134
949
220,829
221,778
-
150,356
2,764,231
2,914,587

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 2022

Notes
Fixed assets
Tangible assets
14
Investment properties
15
Current assets
Debtors
16
Investments
17
Cash at bank and in hand
Creditors: amounts falling due within
one year
18
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
19
Net assets
Income funds
Restricted funds
20
Unrestricted funds		 2022
£
£
832,599
1,595,000
2,427,599
257,602
50,000
469,726
777,328
(3,620)
773,708
3,201,307
(84,571)
3,116,736
144,717
2,972,019
3,116,736		 2021
£
£
853,986
1,550,000
2,403,986
118,208
-
480,577
598,785
(3,613)
595,172
2,999,158
(84,571)
2,914,587
149,996
2,764,591
2,914,587

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

BALANCE SHEET (CONTINUED)

AS AT 31 DECEMBER 2022

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 2022, 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 27 September 2023

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 2022

2022
Notes
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(19,572)
Investing activities
Purchase of tangible fixed assets
(4,403)
Investments
(50,000)
Interest and rental income received
213,124
Net cash generated from investing
activities
158,721
Financing activities
Issue of borrowings
(150,000)
Net cash used in financing activities
(150,000)
Net (decrease)/increase in cash and cash
equivalents
(10,851)
Cash and cash equivalents at beginning of year
480,577
Cash and cash equivalents at end of year
469,726		 2021
£
(28,216)
-
193,725
-		 £
(59,291)
165,509
-
106,218
374,359
480,577

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022

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 2022

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 2022

3 Donations

Restricted Restricted
funds funds
2022 2021
£ £
Grants received 97,431 145,479

4 Charitable activities

Charitable
Charitable
income -
income -
unrestricted
unrestricted
funds funds
2022 2021
£ £
Subscriptions 22,393 23,310
Other income 7,467 9,620
29,860 32,930

5 Investments

**Unrestricted ** Unrestricted
funds funds
2022 2021
£ £
Rental income 212,016 193,687
Interest receivable 1,108 38
213,124 193,725

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

6 Raising funds

Other costs
Costs of incidental goods sold		 2022
£
17,334
17,334		 2021
£
949
949

7 Charitable activities

Furtherance
Furtherance
of scouting of scouting
2022 2021
£ £
Depreciation and impairment 25,789 24,356
Rates 8,334 8,265
Insurance 2,534 3,515
Light and heat 2,313 3,557
Property repairs and maintenance 46,899 122,710
Books and publications 6,633 6,766
Telephone, website and communications 6,006 13,698
Travel 19,393 3,919
Services and administration 13,293 4,493
Conference costs and sundry expenses 11,922 9,570
143,116 200,849
Grant funding of activities (see note 8) 17,716 8,413
Share of governance costs (see note 9) 5,100 11,567
165,932 220,829
Analysis by fund
Unrestricted funds 63,222 93,465
Restricted funds 102,710 127,364
165,932 220,829

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

8 Grants payable

Furtherance Furtherance
of scouting of scouting
2022 2021
£ £
Grants to Polish communities:
Other 17,716 8,413

Of the amount shown above £9,272 (2021 - £8,413) is in connection with restricted fund activities.

9 Support costs

Support costs
Support
costs
Governance
costs
£
£
Audit fees
-
3,300
Legal and professional
-
1,800
-
5,100
Analysed between
Charitable activities
-
5,100		 2022
£
3,300
1,800
5,100
5,100		 2021
£
3,120
8,447
11,567
11,567

Governance costs includes payments to the auditors of £3,300 (2021- £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 £13,070 were paid to 8 directors (2021: £4,762 6 directors).

11 Employees

The average monthly number of employees during the year was:

2022 2021
Number Number
Total - -

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

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

12 Net gains/(losses) on investments

Unrestricted Total
funds
2022 2021
£ £
Revaluation of investment properties 45,000 -

13 Taxation

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

14 Tangible fixed assets

Cost
At 1 January 2022
Additions
At 31 December 2022
Depreciation and impairment
At 1 January 2022
Depreciation charged in the year
At 31 December 2022
Carrying amount
At 31 December 2022
At 31 December 2021
15
Investment property
Fair value
At 1 January 2022
Net gains or losses through fair value adjustments
At 31 December 2022		 Land and
buildings
£
1,007,670
2,950
1,010,620
185,052
20,862
205,914
804,706
822,618		 Fixtures,
fittings &
equipment
£
76,346
1,453
77,799
44,979
4,927
49,906
27,893
31,368		 Total
£
1,084,016
4,403
1,088,419
230,031
25,789
255,820
832,599
853,986
2022
£
1,550,000
45,000
1,595,000

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.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

15 Investment property

(Continued)

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

Cost
Accumulated depreciation
Carrying amount
16
Debtors
Trade debtors
Other debtors
Prepayments and accrued income		 2022
£
547,399
283,215
264,184
2022
£
412
251,080
6,110
257,602		 2021
£
547,399
272,267
275,132
2021
£
-
114,172
4,036
118,208

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 £98,776 relate to this process, of this amount £85,152 (2021 - £98,776) will be released in more than one year.

Further included among other debtors is an amount due from Polish Scouting UK Ltd for £150,000 which is receivable within the next 12 months and bears no interest.

17 Current asset investments

17
Current asset investments
Fixed term deposit
18
Creditors: amounts falling due within one year
Accruals and deferred income
19
Creditors: amounts falling due after more than one year
Other creditors		 2022
£
50,000
2022
£
3,620
2022
£
84,571		 2021
£
-
2021
£
3,613
2021
£
84,571

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

20 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:

Movement in funds Movement in funds Movement in funds Movement in funds
Balance at Incoming Resources Balance at Incoming Resources Balance at
1 January 2021 resources expended 1 January 2022 resources expended 31 December
2022
£ £ £ £ £ £ £
Zwiazek
Hacerstwa
Rzeczypospol
itej (ZHR) 36,789 55,677 (37,432) 55,034 89,654 (90,390) 54,298
Project MSZ -
Beavor Lane
building 95,092 83,617 (85,519) 93,190 - (3,048) 90,142
Aid Project in
Argentina - 6,185 (4,413) 1,772 - (1,772) -
Ukranian Aid - - - - 7,777 (7,500) 277
131,881 145,479 (127,364) 149,996 97,431 (102,710) 144,717

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.

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

21
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
2022
2022
£
£
Fund balances at 31
December 2022 are
represented by:
Tangible assets
688,158
144,441
Investment properties
1,595,000
-
Current assets/(liabilities)
773,432
276
Long term liabilities
(84,571)
-
2,972,019
144,717		 Total Unrestricted
funds
Restricted
funds
2022
2021
2021
£
£
£
832,599
703,990
149,996
1,595,000
1,550,000
-
773,708
595,172
-
(84,571)
(84,571)
-
3,116,736
2,764,591
149,996		 Total
2021
£
853,986
1,550,000
595,172
(84,571)
2,914,587

POLISH SCOUTING ASSOCIATION (INTERNATIONAL) LIMITED

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2022

22 Operating lease commitments Lessor

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

Within one year
Between two and five years
In over five years		 2022
£
178,461
655,180
493,334
1,326,975		 2021
£
151,795
607,180
645,129
1,404,104

23 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.

24 Cash generated from operations

Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investment properties
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
Increase/(decrease) in creditors
(Decrease) in deferred income
Cash absorbed by operations		 2022
£
202,149
(213,124)
(45,000)
25,789
10,606
7
-
(19,572)		 2021
£
150,356
(193,725)
-
24,356
13,075
(4,632)
(48,721)
(59,291)

25 Analysis of changes in net funds

The charitable company had no debt during the year.