ICAEW CHARITABLE TRUSTS Registered Charity No. 313983 ICAEW FOUNDA TION and its linked charities TRUSTEE'S ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ICAEW FOUNDA TION CONTENTS Page Twstee's annual report.. The charitable trusts and their sole corporate trustee Public tenefit aims Structure, organisation and management Strategy for achieving objects'ves 2023 activities and achievements Plans for the futu 24 Reserves levels and policy Major risks Investment policy and performance Matters affecting the financial position of the charitable trusts Statement of trustee's responsibilities 24 25 26 28 29 Independent Auditor's report to the trustee of ICAEW Foundats'on 30 Statement of financial activities 33 Balance sheet ststement of cash flows 35 Notes to the financial statements Advisers, agents and administrators 45 ICAEW FOUNDA TIOJV TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 THE LINKED CHARITABLE TRUSTS AND THEIR SOLE CORPORATE TRUSTEE The names and registration numbers of the ICAEWS charitable trusts linked with the Foundation on the Charty Commission website, and which atthough separately administered are accounted for as rf they and the Foundation were a single charity, under the authority of a uniting directs'on from the Charity Commission, are as set out below.. 313983-001 313983-002 313983-003 313983-009 The Chartered Accountants, Charits'e5 Investment Pool (CACIP) P D Leake Trust (PDLT) Chartered Accountants, Trust for Education and Research (CATER) Chartered Accountants, Permanent Education Trust (CAPET) The sole trustee of all these charities is Chartered Accountants, Trustees Lirnited (CAT). The directors of the Trustee company at present and those in office during the period covered by this report are.. William Arthur Bailey Chairman until 4 June 2024 Richard Baylis Apwinted 4 June 2024 Shauna Bevan Michael Hicks Andrew Ratcliffe Susan Smith Christopher Soan Andrew Wauchope Chairman from 4 June 2024 ReS￿ne￿ 28 July 2023 Appointed 4 June 2024 Further administrative information will be found on page 45. The registered office of the twstee and principal office of each of the charities is: Chartered Accountants, Hall 1 Moorgate Pla London EC2R 6EA UK PUBLIC BENEFIT AIMS The trustee presents its annual report and financial statements for ICAEW Foundation (the Foundation) which include its linked charities for the year ended 31 December 2023. The aim of the Foundation is to support and provide donations to bodies, charitable trusts or funds for the public benefit in areas which are of particular interest to the Institute of Chartered Accountants in England and Wales {ICAEW). The aims of the linked charrties (apart from CACIP which is CAT'S collective investment vehicle) are as follows.. CATER.. the advancement of education, particularly in accounting and related subjects, by maintsining and operating the ICAEW Library and by supporting qualifyin9 education and research projects initiated by the ICAEW and others; CAPET.. the advan￿ment of educalion, particularly in accounting and related subjects, by funding the prizes awarded through ICAEWS examinations and funding bursaries in accordance with the secondary objectives of the Irust", PDLT.. the advancement of the sciences of accounting and polits'cal economy, including public finance and taxation, by funding academic research projects and events. hen pursuing these public benefit aims and when setting annual objectives and planning future activities, the trustee has given due consideration io the Charity Commission's general and sub-sector guidance on public benefit. ICAEW FOUNDA TION TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 STRUCTURE, ORGANISATION AND MANAGEMENT The Foundation is governed by a Deed of Trust last UFKlated on 18 May 2007. CATER is govemed by an administrative scheme of Oecember 1971 made by the Secretary of State for Education and Science. Chartered Accountsnts. Library Limited (CALL) Is a wholly owned subsidiary trading company of CATER which became dormant at the end of 2018. CAPET is governed by a Charity Commission scheme of October 1975. POLT (the 1952 will trust of the late Percy Dewe Leake) is governed by an October 1975 Charity Commission scheme. CACIP, the investment pooling charty, is established and governed by a Charity Commission scheme of December 1996. ICAEW is the beneficial owner of the shares of CAT. which has no corporate assets and is active only as sole trustee of the charities and so is dormant for accounting under company law. In accordance with IFRS10. however, the financial statements of all the charities admsnistered by CAT are consolidated in ICAEWS financial statements. Details of the charities, transactions with related parties are shown in the notes to the financial statements. Appolntment of truslog's dlrectorn The appointment of directors of CAT is proposed by CAT'S Board of Directors and approved by ICAEWS Nominating Committee. Term of appointmént as a d5rector of CAT The Articles of Association of CAT do not Ilmit the term of appointment. However, by agreement with ICAEW, the trustee direclofs normally hold office for eight years ai a maximum. and the chairman for five years maximum, having served at least one year as a trustee director betore becoming chairman. Inductlon and tralnlng As part of their induction, new directors of CAT are given a briefing pack which includes information relating to the powers and responsibilities of CAT as a corporate trustee, copies of papers and minutes of board meetings. copies of annual reports and financial statements of the trusts and information relating to the work of the charitable trusts it administers. An opportunity is offered to new Iruslee directors to meet with the chair and existing trustee directors and members involved in managing the trusts to obtain briefing on the grant making process. The trustee directors consider periodically whether further training on Iheir role and responsibilities as directors is needed as part of their terms of appointment. ￿here it is considered appropriate, regular updates and training are provided in conjunction with the charities, investment, other advisers and other external sources. Dlrectors, Meetings The truslee directors meet at least three times a year, in order to manage the charikn'es, to review investment and fi'nancial performance, to assess new grant applications and to consider feedback and reports on previous grant awards. The trusiee directors have appropriate policies and procedures in place for managing any conflicts of interest arising in the course of its trusteeship. Key management personnel remuneratlon The CAT Board considers the trustee's directors and the Head of the Library & Information Setvices (LIS) as comprising the key management personnel of the charity in charge of directing and controlling the charity and running and operating the charity on a day-to-day basis. The trustee's direclors give their time fre8ly. Delails of expenses claimed and related party Iransactions are disclosed in notes 6 and 15 to the financial statements. The pay of the head of LIS is borne by ICAEW and reviewed annualty in accordance with the ICAEW remuneration policy. ICAEW FOUNDA TION TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 STRATEGY FOR ACHIEVING OBJECTIVES Foundation The trustee's strategy is to make grants lor selected inrtiatives where the contribution made by the trust can make a positive difference to the outcome, The initiatives supported within the trustee's ongoin9 aims and objectives can be summarised as follows.. Bursaries Offering life-changing opportunities to talented individuals who may not othep4vise have the opportunity to join the next generation of finance professionals. Prlzos Rewaiding academic excellence and outstanding contributions to society as an inspiration to others Research and PhD fellowshlps Supporting high quality research that challenges perceptions of the future of ￿coUntIng and finance. Teachlng fellowshlps Fostering change in education, bringing to academic tuilion the practical insight for which the profession is renowned. Llbrary 8ervlce8 and heritage Preserving and enhancing through CATER (see below) ICAEWS heritsge that symbolises its position as a most highly respected professional body. GRANTMAKING AND POLICY Foundatlon Any applications for grants and bursaries are put to the CAT Board for approval via the Foundation office. If a bursary to a university is approved then a Memorandum of Understanding is signed by both parties. CATER & PDLT The trustee has a process for the review of grant applications. The Research Advisory Board (RAB) considers all grant applications for research projects and events and makes its recommendations to the trustee. Each grant application includes details of the purpose and contributson of the research profrect or event and a summary of expected expenditure under such headings as: staff costs travel costs research instruments and access to data sources other relevant specified costs The RA8 also commissions leading academlcs, from both the UK and around the world, to write papers and presenl on issues of key importance to the accountancy profession, p8rticularly on 8spects of financial reporting. An annual conference and lecture are both held at which these papers are presented before they appear in a special issue of the Journal Accounting and Business Research. Requests for funding for the papers and events are put to the trustees in the usual way. The RAB meets three times a year, It includes senior academics from various universities, including at least one overseas university, as well as other practitioner members IM)ere appropriate. members of the RAB personally interview the person or team making the grant applicatK)n, and always obtain independent academic and practrtioner reviews The trustee may at its own discretion accept or reject any grant application which has been considered by the RAB. The chariiable trusts are committed only to reimburse qual'fying research expenditu￿ inCur￿d, together with buyout replacement teaching if appropnate. The trustee encourages the pUbl￿allOn and distribution of the grantees, research findings to the widest possible audience. This may be through ICAEW to its members and others or by other academic journals and extemal publishers The trustee gratefully acknowledges the assistance of ICAEW and its help in publicising the work of the charitable trusts JCAEW FOUNDA TION TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 CATER'S budget for the ICAEW Library is fomially reviewed with the Head of the LIS each year to review progress against budget, progress with ongoing development of the LIS and to agree priorities for the year ahead. The resources spent on this seNice in 2023 amounted to £729,000 {2022: £690,000). CAPET The trustee's policy is to.. assist with the general professional education of suitable persons who are preparing for, entering, or engaged in the profession of accountancy, such as by providing books or paying fees, subject to applicants meeting the Irustee's criteria for grant eligibility. award prizes in connection with ICAEWS examinations. CACIP This charity exists only to manage the pooled investments of the above charities administered by CAT. FUNDRAISING Foundatlon The Foundation launched in 2007. Actual donations totalling £46,250 (including gift aid and accrued income) were received during 2023. Total pledges since the launch of the Foundation, including legacies, donations and gift aid, stood at £2,927,853 at the end of the year. Since the launch of tt)e Foundation, actual donations (which mainly accrued to expendab￿ endowment capital) received up to 31 December 2023, including gift aid, were £2,272,098 before investment retums, and can be cate9orised as follows.. Funds to be used at the trustee's discretion Bursaries Prizes Research Libra services and herita PhD fellowshi CABA awards Combined Code Research Fund Start Pr ramme Ernst & Youn Smart Fulures Challen e 10 Initiative Le acies Total 1461470 210492 110378 104 783 100000 127,720 2 272 098 The table below details the number of bursaries awarded by country to date.. CoU￿rRy UK MALAWI SRI LANKA GHANA CAMBODIA HONG KONG JMBABWE LESOTHO CYPRUS TOTAL NUMBER OF BURSARies AWARDED 74 49 40 19 10 10 10 221 ICAEW FOUNDA TJON TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 2023 ACTIVITIES AND ACHIEVEMENTS FOUNDATION Grant funded actlvltles Historically, the Foundation made an annual award of £6k to Hurnentum to fund bursaries for its charitable training in accountancy to individuals working in non-governmental organisations. Over lime. this pool of funds has built up and stood at £24k at the mKI-year point. No additional grants have been awarded during 2023 but the Irustees approved a reclassification of these funds to support financial skills training targeted within organisations as opposed to indwiduals with an aim to further the reach of the training provided. This has been very successful with an additional £10k being utilised by the year end. Humentum will report back to the board during 2024. Grants awarded The main strategic focus of the Foundation is the creation and granting of bursaries. New bursaries will be funded from the income generated on the investment of current donations or the release of expendable endowment. Total bursaries awarded during the year (net of write backs) were £194,000 (2022.. £164.000). UK bursaries are usually awarded for a period of three or four years and are accrued in the accounts for the whole period in the first year when the bursary is approved. Therefore, the awards payable to UK universities shown in note 6 are for new bursaries, including amounts payable over fijture years. The ICAEW Foundation Changing Futures Bursary Programme To date, the ICAEW Foundation Changing Futures bursary programme has supported eighty-seven undergraduate students of accountancy and finance in universities across the UK, and in Hong Kong and Cyprus. ICAEW members can see how their donations to the Foundation are making a real difference and having a positive impact. They may also be encouraged to engage with their local student. ICAEW Foundation is immensely proud of our work with students through the bursary programmes but we do need the support of our members to continue to grow our impact and reach. During the year. a new 4-year scholarship with the Chinese University of Hong Kong was signed. This will be entitled the 'Paul Kwok Kin Cheng ICAEW Bursary" and will be fully sponsored by the family of the late Paul KK Cheng. Paul Cheng was extremely proud to represent the accountancy profession having been a longstanding member of ICAEW since 1976 until he sadly passed away last year. The family are sponsoring this scholarship as a way of continuing his memory and to help other aspiring professionals achieve their career goals within the accountancy profession. Here are some of our student bursary recipient stories from this past year. You can read about the difference the bursary has made to these talented and ambitious individuals and how the educational experience has already nurtured and developed them. Rebecca Callaghan- Queen's Unlverslty 8olfast Having concluded my second year at Queen's University Belfast, on reflection I can easily say that it was one of the besl years of my life so far. Not only was I provided with life changing opportunities with regards to my future career and sludy. but l also got to enjoy the social aspect that university life has to offer and make lifelong friendships. Many of these opportunities have been made possible thanks to this generous scholarship and I cannot put into words how grateful l am. This scholarship has enabled me to work less in my part-time job. allowing me to devote more time to my studies, which was particularty important this year. as due to timetabling issues associated with studying accounting and a language. I had to complete trwo thirds of my modules in the first semester alone. It also provided me with extra mots'valion when undertaking my five January final exams, despite having covid and lacking energy a mere trwo weeks prior. In addition. this scholarship has also insts'lled in me a great deal of confidence. which proved to help in interviews for summer internships. which is highlighted by the fact that I was offered three internships with Deloitte, KPMG, and Pwc. This sense of Confiden￿ has also enabled me to participate in events such as the Insight into Management programme, which provided me with an array of skills that will be extremely beneficial throughout my life and career, such as ts'me management and teamwork, while also providing me with netrworking opportunrties. JCAEW FOUNDA TION TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 As I study accounting with Spanish it is a compulsory element of my degree to spend the third year abroad. I really wanted to be placed in the region of Valencia under the British Council scheme as an English Language Assistant, however it was stated that the payments in Valencia are unreliable and often don't come when expected. Consequently. it was advised to only submit Valencia as your region of preference when applying for the scheme if you had sufficient savings to help with living costs. Therefore, this scholarship has enabled me to live in my dream area of Spain as I was allocated to the city of Alicante. Furthermore, this scholarship has helped me wilh the setup costs of moving abroad, as well as other essential costs, such as my child protection certificate. I have also been extremely fortunate to participate in many of the social events that university life has to offer, which has provided me with an all-round enriching student experience and has greatly contributed to my personal development and social skills, which I believe are extremely important to have as an accountant This year I have attended both the Queen's Management formal, as well as the Modern Languages formal, which has allowed me to make connectsons, ne￿Ork with my classmates and fully participate in all aspects of universty life. Additionally, after completing my exams in May, myself and three of my friends from my course travelled to Budapest. This experience has provided me with a global mindset and has strengthened my relationships with my peers. Most notably, in Jun81 completed a summer internship with KPMG in their audit department. As aforementioned thi5 scholarship has allowed me to have the choice be￿een three different highty regarded accountlng firms to gain experience with, due to my interview skills which stem from the confidence I now have because of this scholarship. l also did an internship over the summer with KPMG last year in their deal advisory department, which helped me decide which firm I wanted to go to, as I thoroughly enjoyed my time here and was eager to return. At the start of July when finishing my internship. I completed an interyiew for a graduate role in the company's audit department. I was Suc￿sSful and hence I was offered a graduate job with them to train to become a chartered accountant and they also are sponsoring my master's degree in accounting to gain extra exemptions from the exams. I have now accepted this offer and I strongly believe that this scholarship has paved the way for this Opportunity. Therefore, I would like to conclude by thanking you for your generosity as It has facilitated my dream of becoming a chartered accountant and has ensured that I have had the best university experience possible. Taylor Loverldge- Unlverslty of Gloucester As my academic journey is coming to an end it is important lo recognise the support I had along the way. The financial ald I have received over the course of three years has been invaluable, particularly during my final year. The cost-of-living crisis has made it extremely difficult for students with the rise in food, school equipment, and many other prices. l frankly would not be able to afford to be student and without this crucial bursary would have deterred me going to university. Modules this year have been very arduous due to taking three strategic level ICAEW exam papers. Despite this I have risen to the challenge and on track to secure a first-class honours. Advanced financial reporting was a specifi'c module I found to be academically stretching. Wlth it incorporating all content learnt, high level cOn￿pt$ and being one of the ICAEW papers. The academic written piece for this was interesting due to having to analyse a listed company and how they applied international accounting standard to the presentation of their financial statements. Social and environmental accounting was another notable module as it provided me with a broader understanding of the fi'eld and gave light into how the profession is helping solve issues in climate change and humanitarian issues. In this I produce a report critically evaluating a sustainability report of a company, going into great depth and providing recommendations. I was privileged to be re-elecled for my Second year in a row as Course Representsb've. l assisted open days, taster days, work closely with the academic course leads, and be the voice for many students at my university- This further strengthened my soft skills, sornething that is important to develop before leaving education. My university put on ne￿OrkIng events with local employers and institutions that really developed me skills in making connections and understanding the industry holistically This is something I think all students should partake in as many times as they can. Finding a job after university is a daunting task especially during these challenging times. The key to this I found was consistency and being yourself in interviews. After hundreds of applications, I was fortunate to secure a role as a Level 7 Finance Apprentice at UK research and Innovation. l am excited to start work and use my knowledge and skills I have acquired across the years. ICAEW FOUNDA TION TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 To conclude, l am deeply grateful to the ICAEW and its esteemed members for granting me the foundation bursary. en8bling me to forge invaluable connections with ex￿pIlOnaI industry professionals and acquire skills that will leave a lasting impact on my journey. Ben Avila Ulloa- Bayes Buslness School The following is an overview of my experience. achievements and overall wellbeing throughout the second year of my Accounting and Finance degree at Bayes 8usiness School. Having reached the second stage of the degree now, Ihe workload, dedication and resilience required to attain the highest of grades has dramatically increased,. an achievement l intend to reach. Unfortunately, alongside many hours of work, there exists numerous external diff￿￿ltieS that undoubtedly intensify the stresses of the student life. However, fortunately for me, the funding I have received has minimlsed this adverse effect. Examples of this are affording travel costs on the train most days of the week and to afford to bring in lunches, especially as inflation has driven up the costs of such necessits'es Furthermore, purchasing textbooks, general reading books, notepads and stationery is no longer a burden to me and is one less barrier to studying as efficiently as possible. Also, I have been able to enjoy leisurely activities on a regular basis which is fundamental to unwinding from studying and keeping a clear mind. As a result of the benefits I have received, I have achieved an average of a first class (700/ts) in all modules in term 1 and expect to attain the same average grade when I receive results for my second term. Although this is what l am aiming for, I still understand it is an incredible achievement and hence share my success with you. This h8s motiV8ted me for my upcoming third year and I wholeheartedly believe I will graduate from the university with first cl8ss honours. Once again, l am extremely thankful for the support that has been given to Me. Phlllp G•rakyyan - Bayes Buslness School Financialty, the bursary has been instrumental in allowing me to focus on my studies without the constsnt worry of managing the financial aspects of my education. It has covered essential expenses such as tuition fees, textbooks. and materials, ensuring that I h8ve all the necessary resources to excel in my coursework, The bursary has eased financial stress and provided me with the freedom to fulty engage myself in my course, The bursary has had a huge impact on my petsonal development, The recognition and belief has created strong sense of self-confidence and motivation. These experiences have not only enriched my university life but have also honed my leadership skills, interpersonal abilities, and teamwork. l am truly grateful to the ICAEW for their support, and generosity. It has been an enormous help. l am looking forward to the opportunities to come and to possibly giving back to others in need when l am able to. Ronan Cupeva - Unlverslty of 8rlstol As l approach my final year at the University of Bristol, I wish to express my enduring gratitude for the ICAEW scholarship, which has had a profound impact on my university experience. My appreciation remains as great as it was on the day I was first awarded it. It has undeniably transformed my university experience, allowing me to concentrate fully on my academic and career aspirations instead of extra part- time work. This has led to my successful completion of a summer internship at PWC and receiving a full-time job offer once I graduate. Alongside this. l am proud to have finished my second year achieving higher than average in all my modules this year. During the summer, I've also begun to focus my efforts on an initiative I've formed called 'OUR' (Opportunity for the Under-Represented) - The firsl UK organisation to support UK students from disadvantaged Eastern European and Balkan backgrounds towards their careers. 'OUR' seeks to connect these deserving individuals with professionals who can provide menlorship, alongside students participating in various events (both in-person and virtual}, lo serve as sources of inspiration. 'OUR' Is in its earfy stsges so is seeking mentors and organisations to collaborate in ils mission to posits'vely impact these young people's lives. Thank you once again to the ICAEW for supporting me in another year of my studies and allowing me to pursue my professional interests. ICAEW FOUNDA TJON TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Ablga51 Darko - Royal Holloway Universlty of London Thank you for awarding me with this generous scholarship as it has greatly aided me in more ways than one. Firstly, receiving the funding has really helped me focus on academic and non-academic progression at Royal Holloway. The money I received meant that I did not have to try and rush and get a quick part time job to pay for bills or living expenses but I rather tC￿k my time and waited and found work experience perfect for my career prospects. Because I took that time, I can happily say I found banking work experience within Santander, which has led me to be working there part time as a personal banker for over a year. l am licensed within the bank to help with dealing account queries, helping customers reach financial goals, fostering relationships with clients to meet their personal banking needs and Increasing profits by cross-selling accounts and servI￿s. This has brought valuable experiencelopportunities which I never thought I would have so early on. Furthermore, the stress relief on making money has been greatty reduced and I've taken a calmer pace with my studies. l am more focused on enjoying and understsnding my subject without the burden of finances. I started off bNo years ago studying Accounting and Finance. however due to the areas I was finding most interesting. I changed course and am now going into my second year of Financial and Business Economics. My favourite first year module has to be applied economics and policy. This focuses on key economic issues and introduces how economists think about current world problems such as economic grovrth, inequality, inflation, fiscal and monetary policy. l achieved a high 2.1 in Ihis and hope to do even betteT next year. Secondly, the funding has also meant I could afford extracurricular activities at Royal Holloway such as the Cheerleading and Dance club. I have been in the club for tsvo years and It has been one of the best decisions I have made, mentally and physically it is so good to have something you can do on the side of sludies that can be a stress reliever. Furthermore, this year I have been granted the opportunity to be a Dance captain which I could not have gotten without this fund. Currently l am very interested in doing investment banking in the future and so I will be looking at doing similar internships during summer 2024 at hopefully one of the top banks like J P Morgan or Deloitte. I will also be looking at other experiences I can do within Santander as I have an internal advantage which l am so grateful for. To conclude, thank you very much for this fund as it has helped me set up my future in ways, I never thought I could. Holly Swlft- Unlverslty of Manchester Firstly, I cannot believe I finished my second year. It feels so recent that I wrote rny donor report at the end of my first year. My second academic year has been more challenging than my first, both with the content and managing the increased workload. Vthilst at times it felt overwhelming, I feel it has allowed me to develop my time management skills - something which will benefit me next year in my industrial placement. I thoroughly enjoyed being able to have more control over my studies with optional modules, in particular Mergers and Acquisitions (M&AI from a Financial Perspective was a module which I loved. It was extremely interesting and inspired me to explore potential career paths regarding this area. l also enjoyed being able to do more fi'nance-based modules, such as Financial Markets & Insts"tutions. This module allowed me to create a basis for my financial understanding and helped me with other finance modules I took in my second semester. l am immensely proud of myself for managing my modules, a weekend job. and placement application during my second year, even more so after successfully acquiring a placement at RSM as a Tax Assistant. This placement, which starts in September, is somelhing l am extremely excited for. The opportunity to gain experience in an area I hope to go into after graduation will be so valuable to my personal development, especially with such a reputable firm. During my placement, I will spend 6 months respectively with the corporate tax team, and private client services. Being able to learn from professiona15 and explore what my future career may entail is something which I cannot wait for. I hope to do well, and be offered a graduate job. as RSM offer the joint ACA CTA programme which is something I want to go on to achieve after graduation. My scholarship has enabled me to purchase the student bus pass, something which is essential for travel to university. Wthoul the pass. I would not have travelled into campus as much and been unable to study as frequently in the Library. I feel if this was the case, my grades would have suffered along with my capacty to con￿ntrate and separate studying from home life. l am extremely grateful., I love going to study on campus and at the Alliance Manchester Business School- it really helps me focus, especially around 1Q ICAEW FOUNDA TION TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 exam season. Aside from the pass, it allowed me to purchase new study supplies such as books. stationary, and even formal clothing for my assessment centres- something which I could not afford to buy without the scholarship. Words cannot express my gratitude., l am so thankful for receiving this bursary. It has massively improved my student experience over the past two years. both academically and for my mental health. It has reduced stress of having to take on excessive shifts to cover my food and general living costs and meant that I could still commit wholly lo my studies. Thank you once again to everyone at the ICAEW Foundation. Mohammad Fayzan Ashraf- Unlverslty of Manchester l am a grateful recipient of the ICAEW Foundation Bursary. currently undertaking my Accounting degree at the University of Manchester. As this academic year draws to a close. I want to express my deepest gratitude for your support and share the beautiful expefiences and opportunities your generosity has allowed me to have. The beginning ol the academic year was challenging, juggling a job and my studies. However, receiving the ICAEW Foundation Bursary has been a lifeline. With the financial support, I could significantly reduce my working hours, greatly e8sing my tr8nsition into university life. This gift of time has facilitated my academic focus and allowed me to build lasting friendships and fully immerse myself in the university experience. Among the year's rnany highlights, one st8nds out- the chance to learn Spanish in Seville. Studying in Sevilla has been an extraordinary experience, pushing my boundaries and broadening my perspective. Living in a different country, learning a new language, and meeting diverse people from all around the world has been an incredibly enriching experience, made possible through the bursary you provided. Outside of my academics, I have participated in a weekly 6-a-side football competition every Thursday. Not only has it been a source of physical well-being, but it has also been a platform for me to connect with new people and foster friendships. This time for recreation, undisturbed by work commitments, was made possible because of the bursary's allowing me to significantly reduce my working hours and need for additionally money to support myself. Looking toward the next academic year, l am filled with anticipation. The upcoming move into studenl accommodation will be a new chapter in my life, again, a change made significantly smoother by the bursary. Reducing my commute from 50 minutes lo just five will be a game-changer, allowing me more time for studying, extracurricu18r activities. and social interactions. Regarding my academics. l am particularly excrted about modules such as Financial Statement Analysis, which will deepen my understanding of accounting. I cannot emphasise the profound impact of the ICAEW Foundation Bursary on my life enough. The financial support has not only eased my everyday stresses but also given me the freedom to engage in opportunities I could not have otherwise afforded. It has truly shaped my university experience, adding dimensions to it that go beyond academia. To my donors, I want to express my heartfelt gratitude. Your investment in my education has done more than support my academic journey; it has enriched my life in ways I had not imagined. l am immensely grateful for your belief in my potential, and l assure you that l am, and will continue to, make the most of this incredible opportunity you have given mg. Thank you once again for the impact you have made. Your generosity inspires me, and as I move forward in my career. I hope to emulate it by helping others achieve their dreams. Thomas Hill - Cardlff Unlverslty It's been a while since I made my last update, and I've mainly been focusing on my work and beginning rny revision for my exams. I've put in a lot of hours. and fortunately I'm feeling very confident heading into my second round of exams. I believe a substantial impact upon my mentality has been the financial support you've given me. It's allowed me to have a more generally relaxed attitude in all parts of life, as money isn't as tight meaning a heavy load has been relieved. It has given me a solid platform in which to learn and revise with less outside pressure. This, matched with the fact that my dad's condition has improved has set me in good stead to achieve the grades I desire in the following two months. I've sat one assessment since I was last in touch. 11 was a Microsoft Excel exam, as part of my Professional Skills for Accountants module, where l achieved a mark of 84 out of100 (no doubt at least partly a result of the alleviation of pressure that came with your financial aid), and consequently atlained Microsoft Excel Certifi'cation, an ICAEW FOUIVDA TION TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 achievement which l am very proud of. It has not only equipped me with important skills to apply within the Accounting Profession, but also bolstered my CV to show that I'm a capable ex￿1 user. and proficient in IT. During the past weeks, and particularty during the Easter 8reak. I was able to have a think about my future career path, where I researched a variety ofjobs in the fin8nci81 sector. One career that stuck out to me above all else was Forensic Accountancy. l inadvertently became aware of it while writing a report on Business Ethics, while I was researching a number of various accounting scandals, such as the infamous Enron scandal. The job descripts'on of finding evidence of crimes and aiding Insuran￿ companies or law enforcement agencies in catching perpetrators was one that I'm sure most would fi'nd thriiiing. but l also appreciated the very important role Forensic Accountants play in society, maintaining a fair and just world where large corporations can't misreport earnings and mislead the public. for example. It's important to me that my future profession is one that I can be proud of, and one that adds value to soclety, so I can visualise myself pursuing this path further during my future. To close ihe report, I'd like to make my gratitude clear once more. It's hard to put into words the full scope of my appreciation. but know that due to your help I've been able to achieve a strong balance in studying and caring for my father, all while maintaining a clearer and more comfortable frame of mind, which has been conducive to greater academic success and, in truth, a more enjoyable life where l also can afford to do nice things with ry friends, family or girlfriend. with less weighing on my conscience. Thank you, so much. Owen Ingram - Nottlngham Unlverslty 8uslness School Receiving a bursary from the ICAEW during my first year at university has been a blessing. Being raised by a single parent, finances have always been a concem., however, thanks to the bursary I have been able to ease the burden on both myself and more importantly my family since l am now Capable of living financially independent. The bursary has been a great help to me In improving my studies. It allowed me to focus less on having to get a part-time job and more on my studies. which has allowed me to attain 2:1's or higher in all my modules. Thanks to the ICAEW, the level of stress and anxiety l usually feel during exam ts'me were greatly decreased. Through the bursary I was able to buy the resources, such as textbooks. necessary to improve my understanding of modules and therefore increase my confidence for my end-of-year exams, having an overall posits've effect on my mental health. One module l especially enjoyed was the fundamentals of financi81 management and accounting: The interactive teaching as well as the difficulty of the module allowed me to truly push myself. Thanks to the bursary, I had enough time to focus on understanding the intricacies of the rrthule and overall enjoy it. The time and effort l applied allowed me to achieve an 860A result on my exam. During the holidays, I went back home and spent time on activities that were separate to my education but a150 crucial for my personal development. The bursary assisted me in getting my driver's license by helping me pay for the costly driving lessons. l arn therefore very thankful to the ICAEW for aiding me in my future, as I believe being able to drive is a necessity. Without the bursary, I would not have been able to travel to various regions of Europe over the summer. As a result, it has helped my education and given me the opportunity to widen my horizons and learn more about the world. I would like to thank the ICAEW for its generosity and financial support as without it I would have never been able to achieve both the great results in my exams, as well as the growth I have had as a person. I have had several great memofies throu9hout my first year of university and I will never forget the kindness given to me that has allowed me to obtain them. Huang Xuanrong - The Chlnese Unlverslty of Hong Kong Entering the second year of college life, the academic Pressure continues unabated. I still get overwhelmed and anxious with lots of group assignments. papers and tests. But what has improved is that I have gradually figured out the rules of college life and can better deal with various affairs. I know that even if you are exlremely busy. as long as you arrange things in an orderly manner, tasks can be gradually completed. I realized that refusing to procrastinate and starting to do the tasks as soon as possible can redu￿ anxiety. which can be regarded as the achievement of my mentality construction. 12 JCAEW FOUNDA TION TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 In terms of academic achievements, this semester I focused more on my studies and for the first time surpassed myself with a GPA of over 3.3 in my sophomore year. Although it's not a major accomplishment, it's enough to motivate me to continue working hard. In terms of extracurricular activities, this year l also participated in a business case competition with my friends. We participated in J.P. Morgan's Virtual bank competition, which was more formal and challenging than any competition I had participated in before. Although we didn't win any awards, the experience taught me to view the business world with a more professional perspective, and I learned a lot about finance and the business environment. Moreover, through interacting with my teammates, we helped and encouraged each other, which gave me a sense of belonging and friendship, which are'precious treasures" l obtained. Regarding career planning, l tried to send out resumes to apply for internships. In the process of selecting internship companies, I have gained a deeper understanding of accounting positions and the recruitment process of companies. My future plans have become clearer. Although I don't know the final result or whether I have a chance of being accepted, I still want to encourage myself for taking the first step in job- seeking. Thank you again for the generosity from ICAEW Foundation. The ICAEW Foundation Bullding Futures Bursary Pmgramme Our Building Futures bursary programme, for students of new professional accountancy qualifications across Africa and Asia has allocated funds for 134 bursaries since its launch in 201 S. MALAWI workin9 spaces such as Wework, including those of ICAEW members. London has seen some of the strongest growth worldwide in these flexible workspaces coming out of the pandemic (flexible workspaces contributed to 35Vo of commercial property transactions in London in 20201. Several visitors have commented that this is making them look 8t the Business Centre in a new way- as a premium flexible working space with the added valu8 benefit of books and online resources on hand. Enqulrles The enquiry team has recently trialed complementing the ICAEW Technical Advisory Services ITAS) team; providing a 'first line, webchat support. This experience has added to the Library enquiry team's accountancy knowledge and working relationship with TAS. It has also increased awareness of the Library service among members. Client screening remains the most popular service offered by the enquiry team, accompanied by queries on taxation, model documents and company information. On top of our more common historical enquiries, such as fimi histories, 2023 has seen some particularly interesting and in-depth historical enquiries. Memorable examples range from assisting a PhD researcher with his research into the role of chartered accountants in the secret service during IMVII, to helping a lead historian for English Heritage with his research into the architecture of Chartered Accountants Hall for an article that appeared in County Life in December 2023. This led to several highly informative trips to the London Metropolitan Archive to consult with the Institute's historical fecords. Customer satisfaction Surveys for 2023 showed that 940A of Library & Information Service users found the service was easy or fairly easy to use which echoed the r8sults from 2022. The appreciation for the service provided by the enquiry team is reflected in 250 exceptional complimenls received by the team across 2023. Many users commented on how irnpressed they were that their requests were dealt with by information professionals with the expertise lo understand and deal with their needs, then supply exactly the information that was required. One example from April 2023 read "May I say this is a fanlastic service". clearly knowledgeable, highly efficient and delightfully managed." 16 ICAEW FOUJVDA TJON TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 CATER collectlon and dlgltal resources The Library is a modern, hybrid service comprising of a physical collection of loan and reference material, and a suite of online, third-party resources to support user needs. Most of the physical collection is held at an offsite warehouse in Milton Keynes. The Resources team manage the life cycle of resources in the Library collection from acquisition to disposal, covering both print to digital. The majority of ICAEW publications are now captured in digital format rather than added physically to the collection, reducing the resources needed to pro￿$$ and shelve them. Print books are purchased to support the demand from the Library loan seplice, and we continue to subscribe to print journal trtles. However, expenditure on print resources is continuing to fall as publishers cease to produce print material as they move to digital-only models. Supply of dlgftal resources Third paty online resources are a key component of our hybrid collection and now accounis lor over 800/0 of CATER'S annual budget for Library stockjresources. Many of our larger licence contracts are agreed on multi-year basis, in order to secure discounts. This has meant, that despite recent huh inflation rates. our 2023 online resource costs have not suffered severe price hikes. Warehouse store The ICAEW warehouse, where the majority of the Library collection is stored, was secured with a five-year lease renewal in 2022. Staff have been able to make more visits to the Milton Keynes warehouse, where the majority of the Library collection is stored. A project is underway to tidy and reorganise the materials held there to make space for newly archived materials. Usage and development of onllne resources Work to increase the visibility of third-paty resources licensed by the Library on the ICAEW website continued through 2023. The Library web pages on journals were redesigned and updated to better highlight the breadth of our print and online collections. Signposts to Journal titles have also been added to relevant topic pages throughout ICAEW.com. A project to use thlrd paty resources licensed by the Library to update 8it1es from the Buslness and Management Faculty magazine was completed in 2023. By the end of the year 238 articles (out of 715) had been updated, providing further reading through the databases where most value could be added. In 2023 we have seen that requests for the full text of articles and eBooks through the Business Source Corporate Plus database have gone up by 24.90h (from 15,547 to 19,417 downloads). Stock catalogulng The Library catabgue provides detailed records of the electronic and print resources held by the Library, including all ICAEW-produced documents, and abstracts of relevant joumal articles. The catalogue supports the Library Enquiry Sepiice and the website, with the aim of helping our users find and use our collects"ons. This year has seen more balance retum to the work of the team following the disruption of the pandemic. The team are continuing to adapt to d￿lIa1 catsloguing, documenting changes to processes, while also adding links from the catalogue to electronic versions of publtcations that have moved to the digital archive. Earlier Ihis year we un(lertook a review of journals that we abstract from and have started adding relevant articles from a number of academic titles to enhance Library visibility amongst the academic community. We have also started to plug certain gaps in abstracling fiom academic material from the 201 &16 perii)J. Enterpr5se- our new dlscovery platform The team are working with our suppliers, SIRSI, to install a new discovery platform, Enterprise, which will replace the iLink platform that was launched in 2004. The new discovery platform offers many benefits to users including.. A more responsive design to work with all devices. Enhanced search functionality using fuzzy search algorithms and relevance ranking. More intuitive search including search suggestions based on trending topics. 17 JCAEW FOUNDA TJON TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Clearer displays and easier navigation. The new platfonn was deliVe￿d for testing and development at the end of 2023 with the expectation of a launch in early 2024. The new platform will run side-by-side with the old platform during a transitional period while links are switched over. ensuring no diswption to usefs. CATER stock valuatlon It was agreed that the CATER collection will be insured for £900,000. In practice, the unique nature of the collection means that many of the books would not be replaceable. Digital Preservatlon The Digital Archive project is an initiative aimed at creating a digital repository capable of accommodating all bom4Jigital mateiials released by ICAEW into the public domain, as well as providing future capacity for the digitisation of material from the Library's print collection. The Digital Archive includes resources such as help sheets. technical releases, press releases, AGM papers, magazines and regular snapshots of the ICAEW website. By preserving these assets, the project plays a vrtal role in reinforcing the Library'5 mi55ion to capture and disseminate organisational knowledge for the benefit of researchers, Project progress There are currentty two main strands to the project- preseNation of publications and documents on the Preservica plafform and website captures using the ￿ChIVe-IT platform. Dlgltal publications pr68•rvaiion and 8torage- Preselvlca Digital content is extremely vulnerable- due to soffvrfare and hardware changes and data that can easily be corrupted. Preservica allows us lo store documents with greater confidence by rigorously checking for corruption and by ensuring a searnle55 transition from older file formats to guarantee uninterrupted access as software changes. In 2023, the focus has been on refining our digital preservation workflows and enriching previously ingested content to improve findability for researchers. This effort has involved: The development of Python-based ingest tools lo automate a signifi'cant portion of the pre-ingest workflow, which we aim to share with the wider digital preservation community. The integration of specialist digital preservation tools, such as Brunnhilde, for file format identification and virus scanning. Incorporation of ICAEWS taxonomy for automatic content classification, resulting in improved metadata products'on. utilisaiion of OpenAI's Whisper to Produ￿ transcripts of our 8udio-visual materials, enhancing dlscovery and accessibility. This pattern of irnprovement is common among digital archives, reflecting the rapid development of this relatively new field. During the early period of the digital archive at ICAEW, the focus was to ingest a large amount of at risk content quickly. This early content lacks the metadata needed to describe and provide context for users of the digital archive. In 2023 we started re-classifying the content,adding value with essential metadata, i.e. title fields, author fields, subject fields, date fields and relationship fields. This should make our content more accessible, searchable, and valuable for users. By the end of 2023 some 3,180 files had been re-classified and this work continues in 2024. Overall, this aspect of the Digital Archive project continues to progress well. PreseNica now holds around 21,000 assets, while another 10,000 assets wait to be ingested. The value of the Digital Archive for future researchers only continues to grow as more material is added for long-term preservation. Usage of the digital archive through the P￿se￿iCa plattorm has seen 10,792 views of archived content from outside ICAEW in 2023, with a further 4,914 views from staff using the platform to answer member enquiries, ft)r internal research or as part of work to help grow the digital archive l Note on dala., Due to technical issues al Prèservica. usage data from March to May 2023 was incomplete. We have used estimated figures based on averages lo give us approximate page vi8ws for those three months. The Mard) and 18 ICAEW FOUNDA TJON TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Wftbsfte captures - Archive-IT As ICAEW increasingly offers content through its website rather than in traditional document formats, capturing th8 website's content becomes pivotal to ensuring access to the full spectrum of ICAEW output for future researthers. Regular captures of the complete ICAEW website are conducted every six months. a process that involves complex technical selection and capture procedures. A recent addition to our web archiving workflows is a new web crawler from the web recorder project which has signific8ntly reduced the tirne required to crawl the ICAEW website - reducing it from several weeks to a matter of days. This efficient capture strategy now ensures that content is archived before website sections undergo redevelopment, p￿Se￿ing it for the benefit of future researchers. In 2023, full crawls of the ICAEW.com site were completed with the crawler capturing approximately 17,000 pages of HTML content per crawl. In addition, the crawls feature a complete backup of the site's media Library - consisting of PDFS, Word d¢xuments, Excel files, MP3 files etc. Our interest In preserrfing informatlon on the accountancy professlon for future researchers has led us to extend ouc work to the capture of websites beyond ICAEW that we consider critically important. With the agreement of the FRC we completed a comprehensive capture of their public facin9 website before it was revamped earlier this year, consisting of around 4,000 pages. Llbrary webslte The Library microsite is an important channel for providing information about our servic95, promoting the Library, and as an entry point for digital resources acquired and managed by LIS. A project to redesign the Library vrfeb pages at icaew.comlLibrary has seen signi￿ant improvements to the user experience made this year, including a new Library homepage with a refreshed design and a new strapline of "Your time-saving research partneff. Llbrary & Inform•tlon S•rvlc• The Content Curation team is responsible for creating, updating, and maintsining these web pages, as well as highlighting relevant eBook titles, chapters, and onllne artl¢les on technlcal topic pages across aew.com. The emphasls is on puthng Llbrary Informatlon In front of users where they need it, rather than expecting users to come dlreGtly to us. In 2023. the team has revlewed, updated and extenslvely rewrltten a sulte of Research Guides on accounting, finance and business topics. Two brand new guides were launched this year on finding company information and finding accountsng research. The guide to finding accounting research papers is intended to help users to explore the research papers, databases and indices in the Library collection. Promollon We continue to prornote the Library and the Enquiry Service through ICAEWS website, social media channels and email newsletters. May figures were c8lculaled based on average number of pag8 views per day, The April figure is an average of March and May's page views. 19 ICAEW FOUIVDA TJON TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 For the first time, the Enquiry Team took a leading role in the hosting of tours of CAH during London's two- day Open House Festival. This was a very popular event and we hope to continue our involvement in this event going forwards. The Enquiry Service Manager and Head of Curation and Library Collection also hosted a showing of the Rare Books Collection to the CEOS and senior leadership teams of both ICAEW and CIPFA. Thi5 was a unique opportunity to showcase our most prized rare books and highlight the role that the Library teams play in looking after this internationalty important collection. Initial inroads have been made for much more active promotion of the Library service next year through the development of relationships wrth several key ICAEW contacts who work In the field of marketing and communications. In 2024 we have also arranged to participate in all future New Members. Ceremonies held at Chartered Accountants Hall to promole Library services to newly qualified members. Key performanco indicators KPIS in 2023 show healthy figures across the board. 2023 ke erfomiance Indlcators 023 022 611 27 68 021 912 020 En uiries Webchat en uiries Book loans, excludin renewals Document Delive excl. client screenin Client screenin total re ortsr uested Items vols and ebooks ac uired and catalo ued8 Journal articles abstracted and indexed on LibCat9 Total number of 'ournal articles on Libcat Ebook views and downloadslo Files added lo the Di ital Archive11 Total files in the Di ital Archive 67 07 233 ,806 73 780 341 842 ,850 498 Eiii 72 30 303 55 79 334 18,151 ,950 14,718 14,500 050 050 2 Enquiry statistics exclude quick Business Centre enquiries 3 The launch of the new CRM platform in April 2022 introduced a new Webchat system which has been offered Ihrough fewer Library pages and functions in a different way, allowing users lo choose which team to contact. This has seen more enquiries routed to the service cenlre in Milton Keynes. 4 Publishers continue to reduce the range of updated popular titles produced in print formats, directly affecting the volume of book loans. S The number of electronic documents supplied saw a significant drop in 2022 following the withdrawal of some key titles from one of the online databases we subscribe to. 8 The way in which these statistics are collected was reviewed and streamlined in 2022 which may account for a small degree of variation in the numbers reported. 7 Blend of data from Sitecore lJanuary-Octoberl and D365 (November-December). 8 The reduced number of items in 2023 is not caused by a drop in acquisitions, but due to a batch of 354 non-core items awailin9 cataloguing. which will be completed in early 2024. The backlog accrued due to several reasons.. lower stsffing levels., the new Cataloguing and Taxonomy Manager getting up to speed in their new role., and concentration on maintaining existing complex cataloguing records. 9 The number of journals we review for abstracting has increased and we are retrospectively cataloguing from a few key titles to support ICAEW initiatives (such as Accounting and business research, British accounling review, and Fiscal studies>. 10 There is no single cause for this jump. Increases have been seen across all eBook platforms. 11 Figure taken from the PreseNica dashboard. The slower pace of additions to the Digital Archive in 2023 are due to a combination of short staffing in the team up to May 2023; work on more complex series of documents with long version histories; and a re-focus on improvements to searchability of digitsl archive content, ICAEW FOUNDA TJON TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 CAPET CAPET'S primary objective is the advancement of education, particularly in accounting and related subjects. by funding the ICAEW International ACA annual prizes and various districl society prizes. During the year. 64 awards were given at Certificate and CFAB Level and 78 awards given at Professional Level and Advanced Level. To celebrate exam success. ICAEW Student Insights published an article on Mandy Lai, a current and previous prize winner. Mandy Lai may have only decided on pursuing the ACA the night before her application deadline. but it's proving to have been a fruitful decision. Hailing from Sunway College in Malaysia. Mandy has picked up a series of honours since enrolling in September 2021.. the Knox Prize for Professional Level Financial Accounting and Reporting in December 2022,. the Watts Prize for Professional Level Audit and Assurance in March 2023, and, most recently, the Knox Prize for Professional Level Tax Compliance in June 2023. That latest prize prompted congratulations from the King and Queen of Malaysia. Mandy credits a strong support netrwork and the right work-life balance. as well as a knowledge-based approach to studying, with her continued exam success. In association with ICAEW, during November 2022, the trustees launched an essay competition to motivate students and recently qualified members to consider how the profession can act on the climate crisis. Entrants were asked to submit a 5,000 word ess8y, video, podcast or other media format In answer to the question 'The Great Transition.. what we need to do and what role does the accountancy profession have?.. Human IndU￿d climate change is affecting the world now and the focus of the essay should be on action needed to adapt to the impacts already being felt, and to mitigate further d8mage. This was a resounding success and due to the high calibre of entrants, the judges not only awarded a first prlze but also awarded four highly commended prizes. Details of the winning entries can be found here ICA ssa This will now become an annual competition and the next one was launched early in 2024 with the following question being asked-'Accountants as Climate Champions. why and how should the profession lead on climate action?" Total expenditure on prizes and bursaries awarded during 2023 amounted to £50,000 (2022. £34,000) £150,000 during the year (2022: £150,000) was transferred to the Foundation to fund bursaries This is in line with the secondary objects of CAPET. PDLT The following new academic research projects and event funding requests were approved in 2023.. In8titutlonlHost Funding Approved Research projects How should we account for intangibles and digital assets? Manchester Business School 6,000 21 ICAEW FOUNDA TION TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Sustainability and the Profession (Keith Robson, Chiara Bottausci & Xiaoyu Xu) HEC Paris University of 8ristol Leicester University Leeds Business School "Conflicting messages on female senior management issues in Annual Canterbury Reports in two cultural settings: the UK and South Korea". Christ University University of Essex Professor lan Thompson 6,000 hy do companies fail? _ literature review 15,000 Why do companies fail? . workshop 4,500 15,000 Food Waste Reporting - empirical research 15,000 SDGS.. Where are we now? 6.000 Total research prolects 67,500 Events British Accounb'ng and Finance Association 2024 Doctoral Masterclass BAFA (8 April 2024) Management Accounting Research Group conference (16-17 Nov 2023) Tax Research NebNOfk (TRN) Conference (5-7 Sept 2023) 4,000 Aston 5,400 University of Cambridge Lancaster University University of Bath University of Bristol Queen Mary's Edge Hill University Business School Norwich Business School I University of East Anglia WHU- Otto Beisheim School of Management, Germany 2,500 Frontiers of Accounting Research, the 14th LUMSIAMBSIICAEW conference (21- 24 June 2023). Financial Reporting and Business Communication (FRBC) {6-7 July) 3,140 2,000 Financial Reporting and Business Communication Conference (4 - 5 July 2024) Behavioural Finance Working Group annual conference (12-13 June) Accounting History Review conference113 - 14 June 2024) 2.000 3.500 3.000 Journal of International Accountlng Research (JIAR) annual conference (21-24 June) 2.000 CSR, The Economy and Financial Markets conference (9- 10 November 20231. 2.500 Total events 30,040 Total 2023: 97,540 Total 2022 for comparl80n: 62,605 The increase in granl expenditure compared to the prior year is predominantly due to a different approach being used, including possible calls for particular research, attracting projects which more directly reflect ICAEWS current strategic themes and member interests. Achlevements In 2023, the ICAEW experienced a transformative year in its research funding activities. Under the guidance of the Research Advisory Board (RAB) and with the support of the Trustees, we undertook a comprehensive revamping of our research funding approach to align with our Royal Charter objectives and JCAEW FOUNDA TION TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 overarching strategy. This effort proved successful, as evidenced by the unprecedented interest in our research funding opportunities. The Research Advisory Board (RAB) played a crucial role in approving changes to the structure and approach of funding research. They approved a shift in the approach to calls for research, moving away from open calls for research papers to targeted calls for papers. This change aimed to specifically address pressing issues faced by the profession, with the goal of leveraging academic insights effectively. To enhance the collaborative and impactful nature of our research, steering groups are being established for each research workstream. These groups, consisting of RAB members, leading researchers, and key practitioners. were designed to be operational for 1-3 years. They will be convened periodically and will guide projects from conception to conclusion. fostering a collaborative and impacttul research environment In a significant move, Seed corn fijnding was approved in 2023 to support Early Career Researchers (ECRS) and pilot studies. Recognizing the vast UK business research community, this initiative, ongoing and accepting proposals from 2024, aims to promote ICAEWS reputation widety. While mainstream funding is limited, seed corn funding provides essential support to a broader spectrum of researchers. The outputs of our revamped approach would include literature review papers, exploring current literature on practs'cal questions and proposing inteNentions. Notably. a call for papers on "Vl4hy do companies fail was launched in Q3 2023. Additionally, empirical research initiatives involved collaboration with the Public Money and Management Journal IPMM) on local government reporting and support for the development of new research on digital assets by ICAEWS China research fellow. Research funding proposals were approved for developing the SDG workstreams, covering lopics such as food waste reporting, conflicting messages in senior management, SDG'S progress, sustainability, and the profession. In tot81, seven defined research workstreams were estsblished in areas including how to account for intangibles and digital assets, why companies fail, local government reporting, Sustainable Oevelopmenl Goals, and additional workstreams on regulationlregulators, effectiveness, access to data, and VAT modernization. These additional initiatives were in response to internal requests Irom teams at ICAEW seeking academic evidence to support inquiries into these critical topics. We are taking these projecis fop4vard in 2024. Our commitment to knowledge disseminats'on was evident in our partnership with Leeds Unlversity Business School. We suc￿SsfUllY hosted an in-person roundtable and public event on why companies fail, and the role ofinternal control, and corporate governance in mitigating surprise failures. The overall event contributed to our regional presence and reputation. Practical insights from the event were also shared on the ICAEW insights channel. While the annual Information for Better Markets conference was paused in 2023, we remain committed to supporting the journal Accounting and Business Research (ABR) and the International Accounting Policy Forum {IAPF). We are seeking partnerships to establish a well-recognized knowledge dissemination platform to bridge international accounting academia with policymakers and practitioners. The RAB approved funding for annual conferences and responded to new requests, reinforcing the ICAEWS presence across diverse academic communities. With the establishment of seven research workstreams and 11 approved conference funding requests in 2023, our commitment to fosiering policY-￿leVant academic research remains steadfast. Completed project outputs in 2023 include our own roundtables, in-person events at Leeds, conference events, and practitioner- friendly articles on insights. In 2024, we anticipate the emergence of academic papers and practitioner- friendly outputs from ongoing research projects that were scoped and shaped in 2023, along with continued engagement with researchers, reinforcing our commitment to providing valuable insights free of charge to our members. Some research projects and other events will conkn.nue or take place beyond 2023. At 31 December 2023 total of fourteen research projecls were in progress and nine events funded by PDLT were still to take place in the coming months and their achievements will be reported on subsequently. All these activities and events, whether held in-person or online, allow both members of the public and ICAEW members to engage with world-class research and hear from academics from the UK and beyond. 23 ICAEW FOUNDA TJON TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 PLANS FOR THE FUTURE Foundatlon The trustee intends to continue to identify and support relevant initiatives where the grant given by the Foundation has a definable outcome and where the contribution made can make an appreciable difference to the recipient. PDLT The trustee intends to continue lo support funding academic research and events as proposed by the RAB approved within PDLT using the same processes which currently apply. The value of the annual grant is currently under review with an appetite to increase funding depending upon the quality and volume of proposals comin9 through. Following a review of PD Le8ke's Will and the Charity Commission Register, in which Ihe objects of the PDLT were defined as, 'The advancement of the Science of Accounling and knowledge of Political Economy. including the subject of Public Finance and Taxation,, It was assessed that in addition to current applications. PDLT funds can be used to provide educational bursaries to postgraduate students. This has commenced in 2024 and will be subject to annual review thereafter. CATER The trustee intends to promote and support the on-going development of a world-class Library and information service for the accountancy profession as well as the advancement of an education and training programme. This will include further development of the Library collection, digitising the resources, developing the Library management system and promotin9 LIS services. CAPET The Trustee intends to continue to award prizes in connection with ICAEWS examinations. At the November 2022 CAT meetin9, the trustees unanimously supported the proposal to allocate £1 Sok per annum from 2023 onwards for the duration of l)NO to three years from CAPET reserves to fund new UK bursaries. This is in line with the secondary objects of CAPET and will be reviewed on a regular basis. RESERVES LEVELS AND POLICY All the charities administered by the trustee depend on Investment Income for the fundlng of thelr annual charitable expenditure. Only the Foundation's unresiricted income reserves (augmented from time to time by drawing down from its discretionary expendable endowment to cover eX￿ptIOnal spending) are expendable entirely at the Irustee's own discretion. Therefore, the unrestricted income of the educational trusts is all accounted for in these combined accounts as restricted income. However, the trustee's reserves policy for each of the charities is separately determined and reported as below. Foundatlon The trustee reviewed the policy during the year and approved that the level of free reserves should be a minimum of 12 months and a maximum of 24 months of Ihe average total expenditure Incurred by the trust over the prior three years. This will allow the trust to continue to meet its ongoing commitments and plan for fijture expenditure. At 2023 levels this results in a minimum level of £145,000 and a maximum level of £290,000. Current reserves are £244,000 so the policy is satisfied. The Trust also holds a discretionary expendable endowment. The trustee monitors and reviews the level of income reserves against policy, along with this endowment at each Board meets"ng. As at 31 December 2023 unrestricted reserves stood at £244,000 (2022: £183,000) and Ihe expendable endowment was over £2.2m. The Trustees will continue to review this overall position and should the opportunity arise consider use of the expendable endowment to further its charitable aims. The Foundation depends on investment income from the discretionary endowment resulting from its ongoing Foundation Campaign appeal, whose terms of trust have created an expendable endowment for the funding of the Foundation's charitable activities contemplated by the donor. Any unused donations and their investment returns are expendable at the trustee's own discretion. 24 ICAEW FOUJVDA TION TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 CATER CATER mainty depends on voluntsry income for the funding of ils charitable expenditure on educational purposes. With this in mind, the trustee's reserves policy requires a minimum of six rnonths and a maximum of 12 months, of CATER expenditure as freely available income reserves. As at 31 December 2023 CATER'S undesignated free resenrfes were running slightly high at £833.000 equating to 15 months, expenditure, as per the maximum level under this policy (2022.. 14 months). The reason for the increase in reserves in the year is mainly attributable lo savings made due to vacant posts and the purchase of electronic publications. PDLT The trustee believes it is prudent to keep a balance of at least the existing and one yearfs prospective commitments and one year's administrative expenses in unrestricted PDLT rese￿e5 against the risk of a sust8ined decline in investment income. This is based on an average of the last three years iesults and would require maximum income reserves of £177,000. Unrestricted reserves as at 31 December 2023 amounted to £943,000, which equated to 64 months total expenditure (2022.. £841,000). The cumulative increase in reserves over the past few years is as a result of the following factors.. we have had some signifi'cant write-backs over the past few years from some projects and events. the quality or relevance of the research proposals received has been disappointing. We are committed to ensuring that only the highest quality and most relevant projects are approved for funding and we have tuined down a number of projects. In 2023 the Continued changes brought about the global Covid-19 pandemic continued to affect research activities and events alike. Many events moved to a hybrid arrangement resulting in increased participation and a reduction in costs. Following a review of PD Leake's Will and the Charty Commission Register it was assessed that in addition to current applications, from 2024, PDLT funds can be used to provide educational bursaries to postgraduate students. This decision will reduce reserves over the long term. CAPET The trustee believes it is prudent to keep a minimum of two years, forecast examination prize expenditure and a maximum of three tiffEs forecast total expenditure in unrestricted income reser¥es against the risk of a sustained decline in investmenl income. That would indicate income reserves of befvrfeen £111,000 and £226,000. The reserves of £674,000 as at 31 December 2023 are in excess of the reserves policy (2022.. £740,000.. in excess of policy). In line with CAPET'S secondary objectives, the trustees approved additional annual expenditure to fund student bursaries of £150,000 for 2023-2024, this will bring reserves below the Maximum level over the medium term. The trustee monitors and ￿vIewS the level of reserves for all of the charities above at each meeting of its directors. MAJOR RISKS The principal risks faced by the charitable trusts as identif￿d by the trustee lie in the performance of investments and operational risks from ineffective grant making and, more fundamentally, major incidents such as fluctuations in interest rates, inflation, cyber-attacks, global pandemics, political unrest and the effects of terrorist activity. The trustee considers the volatility of investment returns and long-term losses on the permanent endowment fund to be Ihe charity's major financial risk. It accepts some short-term variability as part of its long-term investment strategy. This is mitigated by retaining the appropriate expertise from the investment managers and by having a diversified investment portfolio. The reputational risk from making inappropriate grants is managed by a reporting and review process. This assists us in keeping track of developments and to focus on the public benefit derived from our funding of Iheir work. Major incidents could disrupt Library operations and result in loss of property, data and staff. The Library participates in ICAEWS business continuily plans which are subject to regular review. 25 ICAEW FOUNDA TJON TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The trustee has an established risk analysis process which identifies the major risks to which the charitable trusts are exposed and the ways in which those risks can be mitigated. The risk analysis is reviewed on regular basis. The Directors regularly review current practice against the charity governance code. INVESTMENT POLICY AND PERFORMANCE All the charitable trusts, investments are pooled in CACIP. The trustee regularly reviews its Investment Policy to ensure the suitability of investments for the participating charitable trusts, in line with the Trustee Act 2000, adequate diversi￿ation and adherence to the internationally recognised Principles of Responsible Investment (PRII. Waverton Investment Management Limited manage the endowment and part of the cash fund. These were previously managed by Cazenove Capital Management until September 2022. Royal London Asset Management also manage part of the trusts cash fund. The trustee's aim for the endowment funds is to generate resources on a recurring basis for spending on the objectives of the Foundation and other charities at a sustainable rate, while seeking sufficient capital growth over the long term to ensure that the endowment's real spending power is maintained. Endowment funds are invested lo provide an optimal mix of income returns and long-term capital growth. Distributable funds are invested to provide a secure income and to reduce the risk of substantial fluctuations in capitsl values. The endowment investments are managed via a discretionary fund manager for long term capital growth and the short-term investments are also mana9ed on a discretionary basis for the best income return at minimal risk to capital, in both cases within policy guidelines set by the trustee. The trustee receives regular investrrEnt performance reports and reviews them against industry benchmarks as detailed in the tables below. endowment Fund8 Incepllon 1 Year 0210312021 Total Return Net of Fees 3 Months 9 Months Portfolio Percentage Retum 6.900/0 8.800h 12.70010 20.200/0 Balanced lThJex 8.00% 11.70Yo 10.80% ARC Steady Growth Survey 5.50¥0 5.20Yo 7.50Yo 8.50% CPI + 3,00/ 0.90Yo 4.80'h 6.90/0 31.10% 26 ICAEW FOUNDA TJON TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 Llquld Funds Inceptlon 1 Year 3010412021 Total Return Net of Fees 3 hftonths 9 Months Portfolio Per￿ntage Return 5.70¢ 6.100/0 Cautious hKlex 6.60°/0 2.800/0 ARC Cautious Charity SuNey 2.400 CPI + 2,5% 4.400 Combined investments at the end of 2023 stood at £17.1 m {2022.' £15.4m), comprising of £14.6m in the endowment fund and £2.Sm of I￿Uld assets as detailed in the table below. This increase in value of the portfolio is mainly attributable to improved performance in the equity markets resulting in an unrealised market gain of £1.4m (2022: £1.4m loss). Income generated was £0.35m (2022: £0.32m). YrD movemont In funds 1,339 1,339 £'ooo Eqirity Funds Iwavertonl Total Equlty Fund8 D•c23 Sopt23 Jun023 14.562 13,709 13.616 14,562 13,709 13,616 Mar 23 Dac 22 13.602 13.223 13,602 13,223 Liqud Funds (Royal LorKlon) Liqud Funds (Waverton) Total Llquld Funds 225 84 309 1,141 1,364 2￿05 1,382 1,294 2,676 1,154 1.293 2,447 1.003 1,302 2,306 916 1 .280 2,198 Total Fund• 1.648 17,067 16,385 16,063 15,907 15N19 The endowment portfolio Is managed In order to meet a long lerm objective of inflation (cpI)+30/o per annum, Waverton manages the assets on a 'Balanced' mandate, with a focus on global equities blended with bonds, cash and altemative assets in order to help dampen the overall volatility of the portfolio. 2023 ended on a strong note, with returns for risk assets boosted in the fourth quarter with rising expectation of interest rate cuts. US equitj'es enjoyed a strong year, particularly amongst the largest US technology companies. The portfolio was well-posits'oned to benefit from this rally, with a high proportion invested in US equities. It was not all plain sailing, there was a near-miss banking crisis in Q2 and despite only owning three of the dominant US technology companies, other holdings performed well to ensure that the portfolio outperformed its short-term benchmark. Some of the best performing companies included Hitachi (Japanese industriall and Inditex (owner of the Zara clothing brand), which augmented strong returns from the likes of Advanced Micro Devices, Amazon, Alphabet and Microsoft (all technology-related companies). The portfolio rose in value by +12.7 1 over the twelve month period, ahead of its short term benchmark which returned +11.7°A and the ARC Steady Gr¢)wth index of competitor returns, which returned +7.5°h. The portfolio remains invested with a reasonably high allocation lo equities. Despite the moderation of expectations for interest rate cuts during 2024, it also appears that we have avoided the severe recession which many were predicting for 2023. With growth and employment managing to weather higher interest rates, even a modest reduction in 2024 would provide a meaningful tsilwind for risk assets. Even if this does not transpire in a smooth fashion, we have confidence that the underlying individual companies which we have selected are well-placed to prosper. 27 JCAEW FOUNDA TJON TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 The Waverton Cautious portfolio is managed with an objective of CPl+2.5Vo, resulting in a lower allocalion to equites and higher allocations to bonds and atternative assets. During 2022, asset classes suffered in the teeth of rising interest rates, and indeed bonds fared worse than equities. However, 2023 was considerably more supportive. Despite bonds and alternatives still offering only modest returns, the high allocation to equities relative to the short term benchmark ensured an attractive relum. The Cautious portfolio ended 2023 rising by +9.8°h, similar to the Waverton Cautious index which returned +10.30kn, but well ahead of the ARC competitor Balanced index which retumed 3.6%. CUSTODY OF INVESTMENTS All cash and investments managed by the investment managers are held on CACIP'S behalf at Independent custodians. in the name of the custodian's nominee company. Cash awaiting investment is held by the investment manager as clients, money according to the rul&s of the Financial Conduct Authority and is deposited to earn interest with the custodian or a wholly owned subsidiary of the custodian. As at 31 December 2023, the trustee has received and relied upon confirmat￿nS from the investment managers as to proper custodianship of investment5. It has also received and relied upon confimaiion from their respective auditors that, in their opinion, the intemal controls and systems of each organisalion are sufficient to prevent or detect material errors or irregularits'es. Durlng March 2024, confirmation was received that Waverton Asset Management and London & Capital have reached an agreement to merge their businesses. This strategic move. which is subject to regulatory approval, will bring together the exceptional international advice and planning expertise of London & Capital with the investment performance and wealth solutions of Waverton lo create a leading independent wealth rnanagement business. Lovell Minnick Partners ("LMP"), a Us-based private equity firm investing in growth- oriented companies in financial seDiices, and London & Capital's majority shareholder, will take a majority shareholding in the combined business. 28 ICAEW FOUNDA TION TRUSTEE'S ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2023 STATEMENT OF TRUSTEE'S RESPONSIBILITIES The trustee is responsible for preparing the Trustee's Report and the financial statements in accordance with applicable law and regulations. The Charities Act 2011 requires the trustee to prepare financial statements for each financial year. The trustee prepares the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law}. The trustee must not approve the financial statements unless it is satisfied that they give a true and fair view of the state of affairs of the charities and of the incoming resources and application of resources, including the income and expenditure, of the charities for that period. In preparing these financial statements, the trustee is required to.. select the most suitable accounting policies and then apply them consistently. observe the methods and principles in the Charities SORP. make judgments and accounting estimates that are reasonable and prudent. prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Foundation or a linked charity will continue In business. The trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the charities, Iransactions and disclose with reasonable accuracy at any time the financial position of the charities and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations and the provisions of the trust deeds or other governing documents. The trustee is also responsible for safeguarding the assets of the Foundation and its linked charities and ensuring their proper application under charity law and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. AUDITOR The auditor to the ICAEW Foundatlon, Haysmaclntyre LLP Is proposed for reappointment. Approved by the trustee's board of directors on 30 Juty 2024 and signed on thelr behall by Andrew Ratcliffe Chairman JCAEW FOUNDA TION INDEPENDENT AUDITOR'S REPORT TQ THE TRUSTEE OF ICAEW FOUNDATION Oplnion We have audited the financial ststements of ICAEW Foundats'on for the year ended 31 December 2023 which comprise the Statement of Financial Activities, the Balance Sheet, the Ststement of Cash Flows and notes to the financial ststements. including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation 15 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.. give a true and fair view of the state of the charity's affairs as at 31 December 2023 and of the charity's net movement in funds for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accountlng Praclice., and have been PrePa￿d in accordance with the requirements of the Charities Act 2011. 8asls for oplnlon 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. We conducted our audit in accordance with International Stsndards 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 charity in accordance with the ethical requirements that are relevant to our audit of the fin8nci81 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. Concluslons relatlng to golng concern In auditing the fi'nancial slatements, we have concluded that the trustee's use of the golng concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least hvelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustee with respect to going concem are described in the relevant seciions of this report. Other informatlon The trustee is responsible for the other information. The other information comprises the information included in the Trustee's Annual Report. Our opinion on the 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. In connection with our audit of the financial ststements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. Matters on whlch we are requlred 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: adequale accounting ￿COrdS have not been kept by the charity, or returns adequate for our audit 30 ICAEW FOUNDA TION have not been received from branches nol visited by us; or sufficient accounting records have not been kept: or the chanty financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we requi￿ for our audit. Responslbllltles of the trustee for Ihe flnanclal slatements As explained more fully in the trustee's responsibilities statement set out on page 28, the trustee is responsible for the preparation of the financial statements and ft)r being satisfied that they give a true and fair view, and for such internal control as the trustee detemiines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the fi'nancial statements, the trustee is responsible for assessing the charity's ability to conts'nue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustee either intends to liquidate the charity or to cease operations, or has no realistic alternative but to do so. Audltor's r•sponslbilitles for the audlt of the flnanclal statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frorn 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 deteet material misstatements In respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.. Based on our understanding of the charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity law, and we considefed the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries and management bias in accounting estimates and judgements. Audit procedures performed by the engagement team included. inspecting correspondence with regulators., discussions with management including consideration of known or suspected instances of non- compliance with laws and regulation and fraud; evaluating Manage￿ent'S controls designed to prevent and detect irregularities. review of the meeting minutes of the trustee's directors., identifying and testing journals, in particularjoumal entries posted with unusual descriptions or in seldom used accounts and those that significantly impact on the result or financial position of the charity., and challenging assumptions and judgements made by management in their critical accounting estimates. Because of the inherent limitations of an audit, there is a risk that we will nol detect all irregularities, including those leading to a material misststement 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 8vents and transacts'ons 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 31 JCAEW FOUNDA TJON INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEE OF ICAEW FOUNDATION than error, as fraud involves intentional concealment, forgery, colluslon, omission or mlsrepresentation. A further description of our responsibilities for the audit of the financial statements Is located on the Financial Reporting Council's website at.. wNw.frc.or klaudit This description forms part of our auditor's report. Use of our report This report is made Sole￿ to the charity's trustee in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertak&n so that we might slate to the charity's trustee those mattels we are required to state to it in an auditor's report and for no other purpose. To the fullest extent permiited by law, we do not accept or assume responsibility to anyone other than the charity's trustee, for our audit work, for this report, or for the opinions we have formed. Hw~- LLP Haysmacintyre LLP Statutory Auditor 10 Queen Street Place London EC4R 1AG 1st August 2024 Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companles Act 2006 ICAEW FOUNDA TION STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023 Unrastrlcted Income funds 2023 £'ooo Rostrlcted Incomo funds 2023 £'ooo Endowmont funds 2023 £'ooo Total 2023 £'ooo Total 2022 £'ooo Note Income and endowments from: Donations and legacies Income from investments 35 51 703 294 13 751 351 740 323 Total In¢om• 997 1,102 1,063 Expenditure on: Charitable Actlvltles Grant funded and direct (203) (184) (3871 {328) Library (650) (660> (729) Ral$lng funds Investment management fees {71) (71) (87) Total exp•ndltur• (203) (834) (71) 11,108 Net gainsl(losses) on invgstments 28 110 1.404 1,542 (1,341) Transfer between funds 13 150 (1501 Net Income and movement of endowed fund• for the yoar 61 123 1.352 1,536 11,4021 Reconclllatlon of funds: Fund balanc• brought forward at l January 13 183 2,316 12,897 15,396 16,798 Fund balance carrled forward at 31 Decembèr 13 2,439 14.249 16,932 15,396 The accompanylng notes form part of these financial ststements. 33 ICAEW FOUNDA TJON BALANCE SHEET AT 31 DECEMBER 2023 2023 £'ooo 17.067 2022 £'ooo 15,420 Note Flxed a88et Invostments Current assets Debtors Cash and cash equivalents 10 188 155 343 278 142 420 Creditors.. amounts frailin9 due within one year Net Current assets 11 (4011 {58) (381) 39 Total a88ets less current Ilabllltles 17,009 15,459 Creditors.. amounts falling due after more than one year 11 (77) (63) Total net assets The fund8 of the charltabl• trusts: Endowment capital (permanent & expendable) Restricted funds Unrestricted funds Total funds 13 13 13 12 14,249 2,439 244 12.897 2,316 183 Approved and authorised for issue by the trustee's board of directors on 30 July 2024 and signed on their behalf by.. Andrew Ratcliffe Chairman The accompanying notes form part of these financial statements. ICAEW FOUNDA TION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 £'ooo 2022 £'ooo Net movement In funds 1,636 (1,402) Cash flows from operating activities Deduct gainsladd back losses on investments Decrease in debtors Increase in creditors 11,542) 90 34 1,341 40 Net cash provlded byl(used In) operatlng actlvltles 118 (19) Cash flows from Investlng a¢tlvltle8 Purchase of investments Proceeds of sales of investn*nts Net movement in cash held not yet invested (2,723) 2,448 170 (3,612) 3,735 (52) Net cash (usad in)Iprovided by Investlng activiti (105) 71 Change in cash and cash equlvalents In the year 13 52 Cash and cash equivalents brought forward 142 90 Cash and cash equlvalents carrled foThvard 155 142 No separate anatysis of change5 in net funds has been presented as the charity has no borrowings in the current and prior year. The accompanying notes form part of these financial statements ICAEW FOUNDA TION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 1 Account5ng pollcies Accountlng conventlon and basis of preparation a. The financial statements have been prepa￿d in accordance with the Accounting and Reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial ReF)Orting Standard applicable in the UK and Republic of Ireland (FRS102) second edition effects've 1 January 2019 and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS102} and the Charits'es Act 2011. The financial ststements have been prepared to give a 'true and frdir, view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to Provide a 'true and fairf view. The departure has involved following Accounting and Reporting by Charities {SORP FRS 102) rather than SORP effective trom 1 April 2005 which has since been withdrawn. b. The twst constitutes a public benefit entity as defined by FRS 102. c. The financial statements of the Foundation aggregate a number of charitable trusts under the authority of a uniting direction from The Charity Commission as set out in the Trustees, Annual Report. These separate trusts are presented as restricted funds within these financial ststements. d, The investments of The Foundation and its linked charitable trusts are subject to a pooling arrangement under CACIP. The underlying investment additions, purchases and movements in cash held not yet reinvested are all reported in the Ststement of Cash Flows under cash flows from investing activithes. Golng concern e. After reviewing the forecasts, projections and giving consideration to the current position of the world economy with regard to inflation, interest rates and market fluctuations as a result of the unfolding crisis in Ukraine, the trustee has a reasonable expectation that the Foundation and each linked charity has adequate resources to continue in operational existence for the foreseeable fulure. Careful management of grant liabilities and the availability of cash presented within fixed asset investments are considered when reviewing our year end results which present net current assets. The trustee therefore continues to adopt the going concern basis in preparing its financial statemenls for the charities. Income recognltlon f. All income is recognised once the charity has an entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. g. Gift aid is allocated bebween the restricted and unrestricted funds of each charitable trust in line with the qualifying donations accruing thereto. h. Investment income is taken into account on entitlemenL Voluntary income is recognised when receivable. 0onats.ons in kind reflect governance costs d1￿Ctty funded by ICAEW. The surplus or deficit on a partial investment sale is calculated pro rata to the cost of the investment. Expendlture recognition k. Grant making includes grants payable and the associated support costs Grants are accounied for in the year they are approved, irrespective of the period they cover except for perfomiance-related grants, which are accounted for only when the benef￿lary has met the performance conditions Grants awarded but not yet paid are recorded as granl commitments in the balance sheet. Governance costs. ICAEW holds a blanket indemnity Insuran￿ policy for all employees and directors. The amount allocated to the charitable trusts is estimated based on the number of people covered by the scheme. Governance costs also include annual external audit fees and any costs reimbursed in respect of out-of-pocket expenses of the trustee's directors The trustee does not receive any remuneration or other benefits for its services. ICAEW FOUNDA TJON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 m. Costs of raising funds. The costs of generating funds consist of investment management costs and applicable legal fees. n. Expenditure on charitable activities. Costs of charitable activities include grants made. governance costs and support costs as applicable. Othor Taxation o. The Foundation and constituent charities are exempt from corporation tax on income and gains applied in furtherance of their charitable objects so there is no liability in respect of rts activities. Flxed a88et Investments p. Listed investments are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date. The Statement of Financk21 Activities includes the net unrealised gains and losses arising on revaluation and realised gains and losses arising from disposals during the year. Cash and ca8h equlvalent8 q. Cash and cash equivalents includes cash in hand. deposits held in banks and other short-tem highly liquid investments with original malurity of three months or less. Fund accountln9 Endowment funds consist of both pemianent endowment funds and expendable endowment funds. Permanent endowment funds iepresent amounts for which the capital must be retained. Expendable endowment funds are considered to be those unused donations which have been invested alongside the charity's permanent endowment fun¢Js in order to generate investment returns. They remain expendable for the furtherance of the charity's objectives. Restricted funds are funds which are subject to restrictions imposed by donors or have been raised by the charity for particular purposes. s. The trustee identifies those funds which are expendable in full alongside those generated through investrnent retums as set out in the Investment Policy and Performance section of the annual report. 37 ICAEW FOUNDA TJON NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEM8ER 2023 2 Ststement of financial actlvftles 2022 compar5son by fund Unrestrfjcted Income funds 2022 £'ooo Restricted income funds 2022 £'ooo Endowment funds 2022 £'ooo Total 2022 £'ooo Income and endowments from: Donations and legacies Income from investments 33 48 703 275 740 323 Total Income 81 978 1,063 Exponditure on: Charitable Actlvltles Grant ftjnded and direct (1831 (145) (328) Library (729) (729) Ralslng fund8 Investment management fees (67) (67) Total •xp•ndltur• (1831 (874) (87 (1,1241 Net gainslllosses) on investments (17) (144) <1,1801 (1,341) Transfer between funds 150 {1501 Net Income and movemènt of endowed funds for the year 31 {190) 11,243) (1,402) Reconclllatlon of funds.. Fund balance brought fo￿ard at 1 January 152 2,506 14,140 16.798 Fund b•lanco carrlod forward at 31 Decomber 183 2023 £'ooo 2022 £'ooo 3 Donatlons and legaclos Unrestrlcted fund Foundation donations Donations in kind 34 32 35 33 Restr5cted Fund Gift aid donations from ICAEW Donations in kind 700 700 703 703 Endowment Fund Foundation donations 13 751 740 ICAEW FOUNDA TION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 £'ooo 2022 £'ooo 4 Income from investments Unrestr5cted Funds Equities. Bonds, Alternatives and cash 51 51 48 Restr5cted Funds Fixed interest securities Equities, Bonds, Alternatives and cash 35 259 294 32 243 275 Endowment Funds 361 323 S Cost of ralslng fund8 2023 £'ooo 71 71 2022 £'ooo 67 67 Investment managers fees 6 Expend5ture on grant funded and charitable actlvltle8 undertaken dlrectly Unrostrlctod £'ooo Restrlcted £'ooo Endowment 2023 £'ooo Grant maklng activiti•8 Foundation grants approved PDLT grants approved Grants written back (no longer required) Total grants 183 11 98 (26) 194 98 (261 183 83 Acliviti•8 undertaken dlrectly Exam prizes 50 50 Support and governance costs Management and support costs Audil fee Indemnity insurance and other trustee director's expenses 20 38 58 Total Expendlture on grant funded and charltable actlvities undèrtaken d5rectly 203 184 387 ICAEW FOUNDA TION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 6a Expendlture on grant funded and charltable activities undertaken dlrectly - 2022 for comparison UnfestrScted £'ooo Ro8tricted £'ooo Endowment 2022 £'ooo Grant maklng actlvltles Humentum Sub-tolal grants Foundation grants approved PDLT grants approved Grants written back (no longer required) Total grants 170 170 63 119) 63 (7) (12) 56 220 Actlvltles undertaken dlrectty Exam prizes 34 Support and gov•rnanco costs Management and support costs 19 42 81 Audit fee Indemnity insurance and other trustee director's expenses Total Expendlture on grant fundod and charltable actlvltles undertaken dlrectly 11 183 328 Trustee expenses reimbursed during 2023 in relation to travel costs were £400 (2022. £1k). The trustee directors did not receive any remuneration or other benefits for their services during the year (2022- £nil). 2023 £'ooo 2022 £'ooo 7 Llbrary expendlture Cost of ICAEW seconded staff 216 241 Books and Journals Accommodation and facility costs Office ServI￿S and computer costs 197 221 17 435 255 221 12 488 Total 650 729 The ICAEW Foundation has no employees. All Library staff are em￿OyeeS of ICAEWwho are seconded to the Library and the related employment costs are met by the chanty. An average of 4.2 employees were seconded from ICAEW for the year (2022.. 5.7 employees). ICAEW FOUNDA TION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 8 Movements In partlclpatlng charltlgs, Interosts In poolod Investments Balance at 1 January 2023 £'ooo Now Amounts Investment Galns on Balance at mon•y wlthdrawn Income Investments 31 Investsd December 2023 £'ooo 5,532 7,970 2,898 667 Note: Fees not yet deblted £'ooo (6) (8) (3) (1) 18 £'ooo £'ooo £'ooo (242) (115) (85) (654) £'ooo 122 163 52 14 351 CAPET PDLT Foundation CATER Total 5,130 7,188 2,538 564 522 734 243 43 150 700 850 9 Investment8 2023 £'ooo Market value at 1 January Addits'ons Net cash movement in year not yet invested Disposal proceeds Gains on investment Market value at 31 Doc•mber 15,420 2,723 (170) (2,448) 1.542 Investments at market value compri86d: Equity funds- UK Equity funds- outside the UK Bonds Alternatives Waverton Cautious Portfolio Royal London Cash Plus Fund Cash 1,269 8,672 2,904 1,600 1,352 1,141 129 Hlstorlcal cost: Restricted fund Endowment fund 2,476 13,068 2022 £'ooo 10 Dobtors £'ooo Amounts owed by group and related undertakings 14 12 Prepayments and accrued income 174 266 188 278 41 ICAE W FOUNDA TION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 2023 £'ooo 2022 £'ooo 11 Creditors Due within one year: Grants payable Accruals Tax and social security Amounts owed to group and related undertakings 310 64 258 22 401 381 Due aftor on• year: Grants 77 478 63 12 Analysls of not a8sats betwoen funds Unrestricted Restricted Endowment fund funds funds £'ooo £'ooo £'ooo 668 1.837 14.562 (424) 602 1313) 2023 Total £'ooo 17,067 (135) 2022 Total £'ooo 15,420 (24} Fixed 8sset investments Other net {liabilitiesllassets Totsl value of the fund Analy$l$ by trust 1$ shown below: Unrestricted fund £'ooo Restrlcted funds £'ooo 674 943 Endowment funds £'ooo 4,846 6,941 2,462 2023 Total £'ooo 5,520 7,884 2,695 833 2022 Total £'ooo 5,120 7,114 2,427 735 CAPET PDLT Foundation CATER 244 833 39 Analysls of not assets botween funds . 2022 comparison Unrestricted fund £'ooo 512 (329) 183 Restricted Endowment funds funds £'ooo £'ooo 1,684 13.224 632 (327) 2022 Total £'ooo 15,420 (24) Fixed asset investments Other net (liabilities)lassets Total value of the fund Analysls by trust 58 shown below= Unrestricted fund £'ooo Restricted Endowment funds funds £'ooo £'ooo 740 4,380 841 6,273 2,244 2022 Total £'ooo 5.120 7,114 2.427 735 CAPET PDLT Foundation CATER 183 735 183 42 ICAEW FOUNDA TION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 13 Summary of 2023 fund movements by trust and prfor year comparlson: Unrestrlcted funds Balance at 1 January 2022 £'ooo 152 152 Incom• Exp•ndfture Translers Losses Balance at 31 December 2022 £'ooo 183 183 £'ooo £'ooo 81 81 £'ooo (183) 183 £'ooo 150 150 Foundation Total (17) 17 Balance at 1 January 2023 £'ooo 183 183 Income Expendlture Transfern Galns Balance at 31 December 2023 £'ooo 244 244 £'ooo £'ooo 86 £'ooo (203) 203 £'ooo 150 160 Foundation Total 28 Restrlcted funds Balance at 1 January 2022 £'ooo 889 798 819 Income Expendlturn Transfers Los•es Balance at 31 D•comb•r 2022 £'ooo 740 841 735 £'ooo £'ooo 113 151 714 £'ooo (56) {79) (739) £'ooo (150) CAPET PDLT CATER FOUNDATION Total (561 (291 (591 978 874 160 144 Balan¢• at l January 2023 £'ooo 740 841 735 Income Expendlturo Trnnsfer• Galns Balance at 31 December 2023 £'ooo 674 943 833 (11) £'ooo £'ooo 121 161 715 £'ooo 170) 193) (660) (11) 834 £'ooo {150} CAPET PDLT CATER FOUNDATION Total 33 34 43 997 160 The above restricted funds are trust income that must be spent on that specific charity's general purposes at the discretion of the trustee as detailed on page 5. During the year, the trustees approved a Iransfer from CAPET of £150,000 to the Foundation to fund butsaries. This is in line with the secondary objectives of CAPET. Endowment funds Balance at 1 January 2022 £'ooo 4,815 6.895 2,430 Incomo Expendlture Transfers Lo88e8 Balance at 31 December 2022 £'ooo £'ooo £'ooo £'ooo (24) (34) (9) 67 £'ooo CAPET PDLT Foundation Totsl (411) (588) (181) 4,380 6.273 2.244 12,897 43 JCAEW FOUNDA TION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 Balance at 1 January 2023 £'ooo 4,380 6,273 2,244 Income Expondlture Tran8fer¥ Galns Balan¢e at 31 December 2023 £'ooo 4,846 6,941 2462 £'ooo £'ooo £'ooo (25) (35) (11) 71 £'ooo CAPET PDLT Foundation Total 489 700 215 14 19 CAPET and PDLT'S endowment funds are permanent but the Foundatlon endowment is expendable for general purposes at the discretion of the trustee in furtherance of the objects of that charity as set out In the trustee's report on page 5. During the year no transfers were made from the expendable endowrnent (2022:nil). 14 Llbrary book stock The working stock of the Library was originally donated by ICAEW to CATER and is currently valued for Insuran￿ purposes at £900,000 (2022.. £900,000). The stock is not included on the balance sheet but Library expendilure includes the cost of maintaining and adding to it. The aggregate cost and depreciation of the Library stock is not known and cannot be estimated with any reasonable degree of accLtracy. Additions during the year are expensed as incurred and included within Library expenditure as they are below the capitalisation threshold. 15 Relatsd party transactlons There is an agreefftsnt between CAT and ICAEW to provlde admlnistratlve seNices to the Foundation and linked charities. The total of the transactions amounted to £221,000 (2022 £221,000). in addition to the costs of the Library. At the year end £8,000 (2022.. £42,000) was owed to ICAEW. Management and miscellaneous support costs include direct costs and related charges on a time spent basis and an allocation of overheads split between CATER, PDLT, CAPET and the Foundation. ICAEW provKle gift aid to support the running of the Library. This amounted to £0, 7m for 2023 (2022. £0.7m). CATER make an annual charge to the ICAEW for staff use of Library services,. this amounted to £25,000 (2022.. £25.ooo). All Library staff are employees of ICAEVV who are seconded to the Library and the related employment costs are charged to the charlty. This amounted to £215,000 for 2023 (2022: £241,000). There were no transactions with CAT or Its directors in the year and prior year other than the reimbursement of expenses as Set out in Note 6 to the accounts. 16 Group flnanclal ststements ICAEW is the beneficial owner of the shares in CAT, the sole trustee of the Foundation. ICAEW is a body incorporated by Royal Charter in the United Kingdom (Company registration no. RC000246). Under International Financial Reporting Standards ICAEW has prepared group financial statements which include the results and net assets of the Foundation and linked charities as well as any non-UK charities CAT administers. You can read the group financial statements online at www.icaew.comlreview, or you can request a copy from the Chief Financial Officer, The Institute of Chartered Accountants in England and Wales, Metropolitan House, 321 Avebury 8oulevard, Milton Keynes, MK9 2FZ. ICAEW FOUNDA TION NOTES TO THE FINANCIAL STA TEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 ADVISERS AGENTS AND ADMINISTRATOR Investment managers.. Royal London Asset Management 55 Gracechurch Street London EC3V ORL Waverton Investment Management Limited 16 Babmaes Street London SW1Y 6AH Independent auditor.. Haysmacintyre LLP 10 Queen Street Place London EC4R 1AG Solicitors.. DAC Beachcroft LLP 100 Fetter Lane London EC4A 18N Bankers.. National Westminster plc 501 Silbury Boulevard Saxon Gate East Milton Keynes MK9 3ER Administralor Jennifer Smith Govemance Manager ICAEW Chartered Accountants. Hall 1 Moorgate Place London EC2R 6EA 45