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2020-12-31-accounts

Charity Registration No. 503045

NORTH WEST POLICE BENEVOLENT FUND

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

NORTH WEST POLICE BENEVOLENT FUND

CONTENTS

Page
Trustees' report 1 - 10
Independent auditor's report 11 - 13
Statement of financial activities 14
Balance sheet 15
Statement of cash flows 16
Notes to the financial statements 17 - 29

NORTH WEST POLICE BENEVOLENT FUND

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and financial statements for the year ended 31 December 2020.

Reference and Administrative Details for the North West Police Benevolent fund

The registered address of the Charity is:

St Michael’s lodge Northcote Road Langho Lancashire BB6 8BG

Bankers for the Charity are: National Westminster Bank Plc Chester Branch PO Box 8 Chester CH1 1XA

Auditors for the Charity are:

Stockbrokers for the Charity are:

Mitten Clarke Audit Limited Chartered Accountants Chester House Cheshire Oaks Business Park Ellesmere Port Cheshire CH65 9HQ

UBS Investment Management Limited Newcastle Upon Tyne NE4 7JH

Structure, Governance and Management of the North west Police Benevolent fund

The North West Police Benevolent Fund is an unincorporated charity, registered as a charity and governed by rules approved by the Charity Commissioners. This report has been prepared by the trustees of the Fund to conform to the requirements of the Charity Commissioners’ Statement of Recommended Practice.

Trustees for the Charity in 2020:

Chairman: Andrew Rhodes Chief Constable Lancashire Constabulary (Resigned 31.03.2021) Chairman: Chris Rowley Chief Constable Lancashire (appointed 31 03 2021)

V Chairman R Hanley Lancashire Constabulary

D O’Connor Cheshire Constabulary

I Taylor Lancashire Constabulary

J Arrowsmith Merseyside Police

C Trow Greater Manchester Police

E Newton Lancashire Constabulary

D Lloyd National Crime Agency

P Senior Cumbria Constabulary (Resigned 11.02.2020)

G Lawrence Cheshire Constabulary (resigned 11.02.2020)

J McTear Cumbria Constabulary (Appointed 08.02.2021)

D Howard Cheshire Constabulary (Appointed 07.07.2021)

NORTH WEST POLICE BENEVOLENT FUND

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

The Board of Trustees have delegated ultimate managerial responsibility for the running of the charity to the CEO. The CEO was supported in the year by a team of 3 senior managers with portfolio responsibilities for Health and Wellbeing, Operations and Finance.

The financial statements have been prepared in accordance with the accounting policies set out in the notes to the accounts and comply with the charity's governing document, the Charities Act 2011 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)".

The financial management of the charity is governed by a framework of policies and procedures that comply with the Charity Commission recommended best practice.

1.1 CEO Overview 2020

Inevitably, any review of 2020 will be dominated by the impact that coronavirus had and continues to have on all our personal and professional lives and relationships.

From January to March 2020, The Ben Fund continued with its approach of providing treatments and services to its members whilst diversifying its offer and funding arrangements by providing preventative wellbeing breaks to officers and staff. Three out of the five constituent Forces have an agreement in place to send groups of up to ten individuals at a time to St Michael’s Lodge for overnight respite breaks. All five Forces have signed up to a Specials wellbeing package that provides support to this cohort of volunteers.

The success of these programmes has created a positive challenge for the Fund in managing the balance of supply of accommodation, treatments, and services with the increasing demand for our offer.

Responding to the impact of coronavirus

The immediate impact of the pandemic presented a series of significant challenges to the effective functioning of the Ben Fund. St Michael’s Lodge and all satellite sites were forced to close causing substantial disruption to the ability to provide treatments and services. The health and wellbeing and convalescence offer had to be suspended forthwith. The Trustees and management team were mindful that the Ben Fund supports an emergency service that needed to operate throughout to protect the public. Accordingly, the Fund took every possible step to provide support to its members. This included:

I am very proud that at no stage did the Ben Fund cease to deliver its services. Indeed, with safety of clients and staff as its primary priority, the Fund has creatively found ways to provide services to the maximum of its ability throughout. The Fund has carefully calibrated its response to reflect changes to conditions on the ground.

Flexibility of Ben Fund Staff

Despite personal illness faced by Ben Fund staff and families, I have been very impressed by the dedication and flexibility shown by the staff and their collective desire to carry on. I have observed a real sense of mission and desire to support frontline police colleagues. There are numerous examples of staff taking on totally different roles than normal to ensure that the Fund could continue to operate and protect the integrity of our estate. I would like to place on record my gratitude to all staff for their contributions during this difficult period.

NORTH WEST POLICE BENEVOLENT FUND

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Professionalisation Agenda

In every crises there are opportunities. Whilst unable to operate normally the management team has taken the opportunity to use the time available to invest in systems and processes to enhance the good governance of the Ben Fund. Examples include:

In summary, despite that challenges presented by the pandemic (including the financial challenges outlined elsewhere in this report) I am optimistic that once conditions allow, the Ben Fund will quickly recover its tempo and continue its dynamic program of change to meet the needs of its members and the wider police family.

I would like to conclude by placing my thanks to the Trustees and the senior management team for their support and dedication to the Ben Fund during this difficult period.

Objectives

The Ben Fund is uniquely positioned to understand that policing is more than a job – protecting the public is a vocation which, whilst rewarding, presents its own unique set of stresses and strains. The Ben Fund has a comprehensive offer which can be tailored to meet the specific needs of each individual through probation, service and retirement.

The Ben Fund aims to support officers of Cheshire Constabulary, Greater Manchester Police, Merseyside Police, Lancashire Constabulary, Cumbria Constabulary and NCA, retired officers of those and previous police forces amalgamated within the constituent forces, together with their dependants, who are in a condition of need and hardship or distress.

The trustees have given due consideration to the Charity Commission’s published guidance on the Public Benefit requirement under the Charities Act 2011.

NORTH WEST POLICE BENEVOLENT FUND

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Activities, Achievement and Performance

1.2 Membership

The funding model of the charity has historically relied upon membership donations from serving and retired police officers. In 2020 membership donations contributed approximately 78% of total income (75% in 2019). Therefore, identifying trends in membership and implementing appropriate mitigating actions must be a key priority in financial planning.

The graph below demonstrates that over the period 2011 to 2020 serving membership has been gradually falling, largely in line with programme of public sector austerity. (The peak in 2013 was because the Cumbria constabulary joined the Fund) Conversely, the numbers of retired members have steadily risen, suggested many retirees in this period retained their membership of the Fund.

As discussed in the CEO report, the charity has embarked on programme to of income diversification, however the restrictions imposed due to the Coronavirus pandemic halted this progress. The Fund has identified a gap in marketing and during 2020 several mitigating actions were undertaken including an extensive rebranding exercise, a new website and a targeted approach to engage new recruits by offering all probationary officers a 12-month payment amnesty.

Breakdown of Current Members between Forces 2020

Force 2020 Serving
Members		 2019 Serving
Members		 2020 Retired
Members		 2019 Retired
Members
Cheshire 1423 1434 709 672
GMP 4154 4192 1146 1053
Merseyside 2384 2335 1794 1708
Lancashire 2171 2192 699 494
Cumbria 787 831 140 113
NCA n/a n/a 379 442
Total Members 10,919 10,984 4,867 4,688

Total donating members on 31 st December 2020 was 15,786 (2019 equivalent was 15,672) The graphic below illustrates the ten year trend in both serving and retired membership numbers.

NORTH WEST POLICE BENEVOLENT FUND

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1.3 Physiotherapy

Much of 2020 was subject to local and national restrictions, meaning St. Michaels has been only to provide a muchreduced inhouse service, however the physio team have worked hard throughout the restrictions to engage service users in a range of on-line and virtual interventions. Every referral received a one-to-one telephone consultation with a physiotherapist and a bespoke programme to follow.

These virtual sessions are in addition to the figures below.

St Michaels

2020 2020 2020 2020 2019 2019 2019 2019
Constabulary In
patient
Serving
In
patient
Retired
Outpatient		 Total In
patient
Serving
In
patient
Retired
Outpatient		 Total
Lancashire 6 14 151 171 12 3 273 288
GMP 12 8 62 82 21 6 6 33
Merseyside 9 3 61 73 25 8 0 33
Cheshire 14 1 87 102 26 8 0 34
Cumbria 9 0 5 14 10 1 0 11
NCA/West Mids 14 0 0 14 12 0 0 12

Total at St Michaels in 2020 = 456 (2019 = 411)

Satellite Locations

2020 2020 2019 2019
Constabulary Members Non-Members * Members Non-Members *
Merseyside 67 17 151 38
Cumbria 34 0 64 0
Cheshire 20 22 193 23
GMP 24 0 84 0

Total satellite provision in 2020 = 184 ( 2019 = 553)

The Occupational Health Units of both forces have been subject to review. Cheshire have agreed a further year of physiotherapy for non-members and an updated service level agreement has been agreed.

Merseyside have yet to agree as their Occupational Health provision is still to be concluded and the final report will be with Chief Officers at the end of June for decision.

NORTH WEST POLICE BENEVOLENT FUND

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1.4 Wellbeing

Holistic treatments have proved to be a popular addition the Ben fund Offer to both our core members and the wider police family who are able to access then through the Force wellbeing and Specials offer available.

The team of holistic staff have undertaken training in several techniques including full body massage, head, neck, face and shoulder Massage, back massage, reflexology and hypnotherapy.

During 2020 the Wellbeing treatment rooms have been fully refurbished to enhance the experiences on offer.

Force Wellbeing Offer

The Ben Fund has developed a range of programs aimed at providing respite opportunities for staff to decompress away from the frontline. The clear purpose of these programs is to facilitate opportunities for individuals/ teams that may be operating under relentless pressure or acute stress to get away from the work- place to an environment where they may actively decompress preventing ill health and absence from work.

During 2020 the Wellbeing programmes have continued to be developed and delivered ensure the charity provides an effective proactive service to our members and forces. By the end of 2020 agreements had been secured with Cheshire, Cumbria, and Merseyside Constabularies for a fixed amount of money to provide wellbeing programmes for their officers and staff.

Lancashire Constabulary and GMP also use our Wellbeing programmes for specific members. Unfortunately, the number of sessions that have been provided in 2020 has been severely impacted the Coronavirus restrictions. In 2020 we able to deliver 670 sessions (in 2019 this was over 1,200)

Support Offer to Specials

The Trustees of the Ben Fund are keen to widen the cohort of members who can benefit from its services. Members of the Special Constabulary play a critical role in frontline policing exercising police powers and are indistinguishable to the public from their regular colleagues. Whilst on duty they potentially face the same physical and mental challenges as other front- line staff. In recognition that they are volunteers, the Fund has developed a bespoke package at a lower price than that offered to regular officers. The proposal is that officers from the Special constabulary can access, Health and Wellbeing Services, Counselling Services and Physiotherapy.

By 31 st December 2020, all 5 member forces have signed up to this offer. Again, delivery has been restricted by the Coronavirus restrictions, but 53 sessions were delivered to specials in 2020.

The Coronavirus restrictions have had an obvious impact on the ability to deliver the Wellbeing services, and all unused allocations have been rolled forward to 2021 and reported in the accounts as deferred income.

1.5 Counselling Services.

During the year demand for counselling services continued to grow and the counselling team has been restructured to increase capacity. The counselling team were able to continue operating throughout 2020 adapting the offer to telephone counselling when face-to-face sessions were not recommended by the BACP.

NORTH WEST POLICE BENEVOLENT FUND

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

The below figures correspond to “New” clients that were first registered for counselling (following application) between 01/01/2020 to 31/12/2020.

2020 2020 2020 2020 2019 2019 2019 2019
Force New
Referrals
1/1/20 –
31/12/20		 Ongoing
Clients
2020		 Closed-off
Clients
2020		 Closed-off
number of
sessions		 New
Referrals
1/1/19 –
31/12/19		 Ongoing
Clients 2019		 Closed-off
Clients
2019		 Closed-off
Sessions
2019
Cheshire 10 2 8 29 13 4 9 38
Cumbria 4 1 3 11 5 1 4 14
GMP 41 16 25 125 59 18 41 196
Lancashire 30 8 22 90 50 9 41 186
Merseyside 24 5 19 70 57 20 37 140
NCA 2 0 2 8 1 0 1 4
Retired (All
Forces)		 9 3 6 50 7 2 5 17
Totals 120 35 85 383 192 54 138 595

1.6 Other Services Offered by the Ben Fund at St Michaels.

Members are also able to access several additional offers, all of which are provided on a not-for-profit basis.

The conference facilities at St. Michaels lodge can be booked by the constituent forces to facilitate away days, team meetings and to host training. In 2020 a total of 17 bookings were made.

Bed and Breakfast breaks are available for members at weekends where guests can book one of the 24 bedrooms and enjoy the facilities at St Michaels whilst exploring the Ribble Valley. In 2020 23 bed and breakfast breaks were provided.

Pamper breaks Ben Fund members can book onto pamper breaks on selected weekends. These breaks include a treatment of choice, use of the excellent facilities, including swimming pool, sauna, hot tub and gym, and overnight accommodation, B&B, lunch, and refreshments. In 2020 37 members took advantage of this offer.

The Bistro at St Michaels has been renovated during 2020 and is open for members who pre-book a table.

1.7 Financial Assistance.

Death Benefits

The Fund continues to make an award of £5,000 as a Death Benefit Grant to serving donating members.

Sadly, during 2020 there were 11 recorded deaths (9 in 2019) of serving members each of whose named beneficiaries received the agreed death benefit of £5,000.

Grants and Loans

There was a significant drop in the total number of applications for financial assistance in 2020 to 15 applications.

These can be broken down as follows:

NORTH WEST POLICE BENEVOLENT FUND

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Force Total number of
Applications		 Refused
/Withdrawn		 Loans Grants
GMP 4 0 3 1
Lancashire 5 0 4 1
Cheshire 0 0 0 0
Merseyside 6 2 2 2
Cumbria 0 0 0 0
NCA 0 0 0 0
Total 15 2 9 4

The amount in loans in 2020 amounted to - £44,439

The amount in grants made to serving officers amounted to - £18,020

The amount in grants made to retired officers amounted to - £1,869 (deferred pending clarification of details)

1.8 Convalescence Offer.

Providing convalescent/ respite breaks to members is key element of the Ben Fund’s current offer. Members who are suffering physical or psychological distress and would benefit from a respite break may apply to the Fund for free use of its facilities. Respite breaks can be provided at St Michael’s Lodge or at one of our Lodges situated at South Lakeland Holiday Park (four lodges) or White Cross Bay, Cumbria (nine lodges).

As an additional service, when the respite facilities are not in use for the above purpose, members may apply to use them for holiday breaks. The Ben Fund provides these breaks to members on a preferential basis below market rate. Consequently, this service is very popular and oversubscribed. This is the only service that the Fund makes available to members who do not require treatment of some sort and may provide an extra incentive to join or remain as a member of the Fund.

The national and local lockdowns during 2020 meant that ability to provide respite and paid-for breaks of the lodges was limited. The lodges were used a total of 81 times for convalescence/respite breaks were taken by members, (261 in 2019) and 323 paid for breaks were taken (725 in 2019).

1.9 Investment and Reserves Policy

The investment portfolio held by the Fund is currently managed on a discretionary basis by UBS.

The advice from UBS re our investment objectives favour a diversified investment approach with a good level of liquidity. The aim is for a competitive level of income generation across the invested assets together with capital growth at least sufficient to maintain the real value of the assets in the medium to longer term.

The charity has a long-term investment time horizon which anticipates staying invested through successive market and economic cycles. The history of the investments and the past conversations had indicated the trustees are willing to acceptable volatility and risk in pursuing the objectives.

For the UBS investment portfolio, the mandate and balance of assets is in keeping with a Balanced Strategy and attitude to risk. The trustees are seeking the appreciation of the assets over the longer term while accepting that the invested position will mean there is capital volatility together with some fluctuation of income returns.

NORTH WEST POLICE BENEVOLENT FUND

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Performance of Investment portfolio.

The onset of the Coronavirus pandemic in March 2020 led to unprecedented global, economic chaos which saw the Charities portfolio plummet by 20% to £600,000 at the end of April. However, the markets have gradually recovered through out 2020 and by 31 st December stood at £679,542 which represents an 8.5% fall in value.

UBS Portfolio Summary @ 31.12.20
2020
2019
Opening Valuation 742,333
681,098
Investment Purchases 477,868
273,258
Investment Sales (499,928)
(272,466)
Unrealised gains/losses (49,222)
39,082
Realised gains/losses 8,491
21,361
Closing Valuation 679,542
742,333

Unfortunately, in November UBS informed us that following the implementation of MiFID11 and subsequent regulatory changes to their operating model, they would not be able to extend their services beyond April 2021. The transfer to Brewin Dolphin is expected to be completed by the end of April 2021.

Reserves Policy and Review

On 31 st December 2020, the charity held fund balances of £7,187,906. Of this amount £5,495,579 is value of the property and fixed asset portfolio. The balance of £1,692,327 is held in the short-term investment portfolio and cash at the bank.

The Finance and Investment subgroup have undertaken an exercise to review the reserves held by the Fund with the future strategy of the Fund. This has allowed the identification of the following reserves to be designated for specific purposes.

Designated use: Approval Amount
Going Concern Business Continuity Contingency Reserve (3m's
operating expenditure + full redundancy provision)
as per reserve policy agreed
by F&I sub group
£528,490
St Michaels capital set-aside: retentions withheld from Monks to
rectify snagging issues, payable upon completion of refurb of
original build

on-going commitment from
new-build snagging list
£45,000
Data Base and supporting IT system B.O.T January 2020 £92,000
Wellbeing Studio (including Piling, Decking and Equipment) B.O.T March 2020 £125,000
Set-up Costs and Amnesty Period for North Wales B.O.T June 2020 £24,000
Disaster Emergency Fund in response to a major NW incident Constitutional commitment £100,000
Investment in Upgrading Convalescence provision tbc pending Convalescence
review
£200,000
Designated Reserves at 31.12.2020 £1,114,490

NORTH WEST POLICE BENEVOLENT FUND

TRUSTEES' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1.10 Financial Impact of the Coronavirus pandemic and subsequent lockdowns.

The CEO has talked about the general impact, however there have been clearly identifiable financial consequences which have resulted in £100,000 budget variance from the balanced budget presented for approval to the Board of Trustees. These variances are summarised in the table below:

Income Received but Deferred in Year:
Force Wellbeing and Specials packages deferred £ 71,000.00
Other 'lost' Income
Lodge bookings refunded £ 60,000.00
Fall in value of Investment portfolio £ 63,000.00
Physiotherapy SLA'S £ 25,000.00
Projected donations collected £ 12,000.00
Miscellaneous Wellbeing treatments £ 10,000.00
Off-set by one off income received:
Release of VAT provision £ 101,000.00
Unbudgeted Legacy Income (Noel Paul Will) £ 40,000.00

The Trustees were briefed the monthly Board meetings and provided with quarterly Management accounts of the projected financial impact of the pandemic.

The trustees' r eport was approved by the Board of Trustees.

Mr C Rowley - Chair of Trustees Dated: 8 June 2021

NORTH WEST POLICE BENEVOLENT FUND

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF NORTH WEST POLICE BENEVOLENT FUND

Opinion

We have audited the financial statements of North West Police Benevolent Fund (the ‘charity’) for the year ended 31 December 2020 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

NORTH WEST POLICE BENEVOLENT FUND

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF NORTH WEST POLICE BENEVOLENT FUND

Matters on which we are required to report by exception

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

Responsibilities of trustees

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

Auditor's responsibilities for the audit of the financial statements

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve deliberate concealment , by for example, forgery or intentional misrepresentations or through collusion. The extent to which our procedures are capable of detecting irregularities including fraud is detailed below.

Our approach was as follows:

We understood how the charity is complying with relevant frameworks by making enquiries of management and those responsible for legal and compliance procedures. We assessed the susceptibility of the charity's financial statements to material misstatement including how fraud might occur by discussing with the management and the board of trustees. We enquired of management as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

Based on this understanding we designed specific audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and obtaining additional corroborative evidence as required.

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

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

NORTH WEST POLICE BENEVOLENT FUND

INDEPENDENT AUDITOR'S REPORT (CONTINUED)

TO THE TRUSTEES OF NORTH WEST POLICE BENEVOLENT FUND

Other matter s

Your attention is drawn to the fact that the charity has prepared financial statements in accordance with "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (as amended) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has now been withdrawn.

This has been done in order for the financial statements to provide a true and fair view in accordance with current Generally Accepted Accounting Practice.

Use of our report

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

Mrs Desirie Lea FCA FCCA (Senior Statutory Auditor) for and on behalf of Mitten Clarke Audit Limited 25 October 2021 Chartered Accountants Statutory Auditor Chester House LLoyd Drive Ellesmere Port Cheshire United Kingdom CH65 9HQ

Mitten Clarke Audit Limited is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

NORTH WEST POLICE BENEVOLENT FUND

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Unrestricted
funds
funds
general
d esignated
2020
2020
Notes
£
£
Income and endowments from:
Donations and legacies
3
69,776
-
Charitable activities
4
1,382,182
-
Physiotherapy and
Wellbeing Donations
6
21,493
-
Investments
5
22,694
-
Other income
7
112,468
-
Total income
1,608,613
-
Expenditure on:
Charitable activities
8
1,668,444
-
Net gains/(losses) on
investments
12
(40,731)
-
Net (outgoing)/incoming
resources before
transfers
(100,562)
-
Gross transfers between
funds
(1,114,490)
1,114,490
Net movement in funds
(1,215,052)
1,114,490
Fund balances at 1
January 2020
7,288,468
-
Fund balances at 31
December 2020
6,073,416
1,114,490		 TotalUnrestricted
funds
general
2020
2019
£
£
69,776
63,545
1,382,182
1,449,976
21,493
57,500
22,694
29,454
112,468
-
1,608,613
1,600,475
1,668,444
1,585,318
(40,731)
60,443
(100,562)
75,600
-
-
(100,562)
75,600
7,288,468
7,212,868
7,187,906
7,288,468		 Restricted
funds
2019
£
-
-
-
-
-
-
20,251
-
(20,251)
-
(20,251)
20,251
-		 Total
2019
£
63,545
1,449,976
57,500
29,454
-
1,600,475
1,605,569
60,443
55,349
-
55,349
7,233,119
7,288,468

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

All income and expenditure derive from continuing activities.

NORTH WEST POLICE BENEVOLENT FUND

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
13
Investments
14
Current assets
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
17
Net current assets
Total assets less current liabilities
Provisions for liabilities
19
Net assets
Income funds
Unrestricted funds - designated
Unrestricted funds - general		 2020
£
367,191
844,743
1,211,934
(199,149)		 £
5,495,579
679,542
6,175,121
1,012,785
7,187,906
-
7,187,906
1,114,490
6,073,416
7,187,906		 2019
£
344,715
765,645
1,110,360
(66,867)		 £
5,604,443
742,333
6,346,776
1,043,493
7,390,269
(101,801)
7,288,468
-
7,288,468
7,288,468

The financial statements were approved by the Trustees on 8 June 2021

Mr C Rowley - Chair of Trustees

NORTH WEST POLICE BENEVOLENT FUND

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2020

2020
Notes
£
Cash flows from operating activities
Cash generated from operations
23
Investing activities
Purchase of tangible fixed assets
(96,272)
Purchase of investments
(477,868)
Proceeds on disposal of investments
499,927
Interest received
22,694
Net cash (used in)/generated from investing
activities
Net cash used in financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year		 2019
£
£
130,617
(4,320)
(273,258)
293,827
29,454
(51,519)
-
79,098
765,645
844,743		 £
158,575
45,703
-
204,278
561,367
765,645

NORTH WEST POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Charity information

The charity is governed by the terms set out in the Governing document adopted in 2011 which formalised and regulated the activities of the Fund and its Trustees and is reviewed annually.

1.1 Accounting convention

The financial statements have been prepared in accordance with the charity's rule book, the Charities Act 2011 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2016). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investmentments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The trustees have considered the impact of COVID-19 in reaching this conclusion. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

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

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

1.4 Income

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

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

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

1.5 Expenditure

Expenditure is accounted for on the accruals basis and is allocated under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Costs of generating funds relate to the promotional work undertaken in the year to enhance the charity's standing.

NORTH WEST POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

Costs of charitable activities include expenditure at the three main sites of the charity including convalescence and grant provision for officers in need.

Governance costs comprise all costs involving the public accountability of the charity and its compliance, regulation and good practice.

Support costs have been allocated on the assumption that they arise in proportion to direct expenditure of the charitable activity.

1.6 Tangible fixed assets

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

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

Freehold land and buildings 1% reducing balance Licenced land and buildings 4% straight line Fixtures and fittings 20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

1.7 Fixed asset investments

Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred.

1.8 Impairment of fixed assets

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

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10 Financial instruments

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

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

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

NORTH WEST POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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

Derecognition of financial liabilities

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

1.11 Provisions

Provisions are recognised when the charity has a legal or constructive present obligation as a result of a past event, it is probable that the charity will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.

1.12 Leases

Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease.

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

NORTH WEST POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

3 Donations and legacies

Unrestricted Unrestricted
funds funds
general general
2020 2019
£ £
Donations and gifts 69,776 63,545
Donations - Members of the public 11,006 -
Donations - Miscellaneous 16,097 -
Legacy income 40,365 -
Gift aid 2,308 -
69,776 63,545
4 Charitable activities
2020 2019
£ £
Member Donations 1,276,065 1,269,060
St Michaels 9,079 30,133
Lodges 97,038 150,783
1,382,182 1,449,976
All income from charitable activities was unrestricted in 2020 and 2019.
5 Investments
Unrestricted Unrestricted
funds funds
general general
2020 2019
£ £
Income from listed investments 22,217 25,415
Interest receivable 477 4,039
22,694 29,454

NORTH WEST POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

6 Physiotherapy and Wellbeing Donations

Unrestricted
funds
general
2020
£
Merseyside Wellbeing donations
-
Cheshire Wellbeing donations
12,500
Cumbria Wellbeing donations
-
Lancashire Wellbeing donations
4,470
Miscellaneous Wellbeing donations
4,523
Total
21,493
Other income
Unrestricted
funds
general
2020
£
Other income
112,468
Analysis of other income
Treatment costs reclaimed following legal action
4,467
Business support grant
6,200
Release of VAT provision
101,801
112,468		 Total
2019
£
12,500
25,000
20,000
-
-
57,500
Total
2019
£
-

7 Other income

In the course of the 2017 audit a concern was raised that VAT may be payable on income received and/or generated by the charity and that the historic VAT registration position may not have been properly addressed with HM Revenue and Customs. A provision for £101,800 was set aside to account for VAT due to HM Revenue and Customs. Hopwood Law were instructed to review the nature, extent and basis of the income received by NWPBF in order to advise as to whether any liability to pay VAT in respect of such income arises historically or in the future. The report concluded that the charity has not incurred a VAT liability. Therefore, the provision can be released.

NORTH WEST POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

8 Charitable activities

St Michaels White Cross
Bay
2020
2020
£
£
Management
170,874
-
Site and security
108,517
10,811
Depreciation and impairment
116,207
62,150
Furnishings and maintenance
46,732
51,752
Services and insurance
89,039
118,823
Housekeeping and reception
116,861
-
Physiotherapy
304,871
-
Catering
76,456
-
Administration
21,425
422
Counselling and holistic services
150,000
-
Cleaning
12,958
-
1,213,940
243,958
Grant funding of activities (see note )
69,651
-
Share of support costs (see note 9)
52,253
10,994
Share of governance costs (see note 9)
5,311
1,118
1,341,155
256,070
Analysis by fund
Unrestricted funds - general
1,341,155
256,070
Restricted funds
-
-
For the year ended 31 December 2019
Unrestricted funds - general
1,186,487
287,376
Restricted funds
20,251
-
1,206,738
287,376		 South
Lakeland
2020
£
-
-
26,780
10,361
27,721
-
-
-
2,988
-
-
67,850
-
3,058
311
71,219
71,219
-
111,455
-
111,455		 Total
2020
£
170,874
119,328
205,137
108,845
235,583
116,861
304,871
76,456
24,835
150,000
12,958
1,525,748
69,651
66,305
6,740
1,668,444
1,668,444
-		 Total
2019
£
122,340
97,867
196,710
167,458
214,158
132,503
258,778
68,181
16,603
119,087
16,721
1,410,406
50,424
139,408
5,331
1,605,569
1,585,318
20,251
1,585,318
20,251
1,605,569

NORTH WEST POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

9 Support costs

Support costs
Governance
costs
£
£
Committee expenses
556
-
Secretary honoraria
-
-
Combined insurance
19,211
-
Legal and professional
32,056
-
Marketing costs
7,470
-
Bad debts
7,012
-
Audit fees
-
6,740
66,305
6,740
Analysed between
Charitable activities
66,305
6,740		 2020Support costs
Governance
costs
£
£
£
556
1,835
-
-
1,550
-
19,211
17,013
-
32,056
93,824
-
7,470
-
-
7,012
25,186
-
6,740
-
5,331
73,045
139,408
5,331
73,045
139,408
5,331		 2019
£
1,835
1,550
17,013
93,824
-
25,186
5,331
144,739
144,739

Governance costs includes payments to the auditors of £ 6,300 including VAT (2019- £ 6,300 including VAT ) for audit fees.

10 Trustees

Trustees are reimbursed for non material expenses incurred on charity business.

11 Employees

Number of employees

The average monthly number of employees during the year was:

Wages and salaries
Social security costs
Other pension costs		 2020
Number
37
796,749
67,357
13,646
877,752		 2019
Number
31
656,367
59,527
9,498
725,392

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

NORTH WEST POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

12 Net gains/(losses) on investments

Unrestricted Unrestricted
funds funds
general general
2020 2019
£ £
Revaluation of investments (49,222) 39,082
Gain/(loss) on sale of investments 8,491 21,361
(40,731) 60,443

13 Tangible fixed assets

Freehold land
and buildings
Licenced land
and buildings
£
£
Cost
At 1 January 2020
4,051,333
2,058,825
Additions
65,760
-
At 31 December 2020
4,117,093
2,058,825
Depreciation and impairment
At 1 January 2020
205,775
575,091
Depreciation charged in the year
41,171
82,354
At 31 December 2020
246,946
657,445
Carrying amount
At 31 December 2020
3,870,147
1,401,380
At 31 December 2019
3,845,558
1,483,734		 Fixtures and
fittings
£
377,562
30,512
408,074
102,410
81,612
184,022
224,052
275,151		 Total
£
6,487,720
96,272
6,583,992
883,276
205,137
1,088,413
5,495,579
5,604,443

NORTH WEST POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

14 Fixed asset investments

Listed
investments
£
Cost or valuation
At 1 January 2020 742,333
Additions 477,868
Valuation changes (40,731)
Disposals (499,928)
At 31 December 2020 679,542
Carrying amount
At 31 December 2020 679,542
At 31 December 2019 742,333

15 Debtors

Member loans
16
Donations
Other debtors
Prepayments and accrued income		 2020
£
78,210
250,401
9,610
28,970
367,191		 2019
£
106,680
206,764
6,001
25,270
344,715

NORTH WEST POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

16 Member Loans

Balance at 1 January 2020
Loans granted during the year
Repayments in the year
Loans written off
Total loans outstanding
Bad debt provision
Balance at 31 December 2020		 2020
£
151,354
36,635
(64,494)
(7,000)
116,495
(38,285)
78,210		 2019
£
199,085
11,893
(59,438)
(186)
151,354
(44,674)
106,680

Included within total loans outstanding is an amount of £74,448 due in more than one year. (2019 - £115,993).

Trustees are considering a potential bad debt write off of £21,000 in the year to 31 December 2021. At the time of approving the accounts, this bad debt had not been confirmed.

17 Creditors: amounts falling due within one year

Notes
Other taxation and social security
Deferred income
18
Trade creditors
Other creditors
Accruals and deferred income		 2020
£
20,756
105,011
24,645
11,788
36,949
199,149		 2019
£
-
-
-
33,957
32,910
66,867

NORTH WEST POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

18 Deferred income

Lancashire
GMP
Cheshire
Merseyside
Lodge bookings
Employment allowance 2021
GMP Membership January 2021 received December 2020
19
Provisions for liabilities
Provision for VAT
20
Analysis of net assets between funds
Unrestricted
funds
Designated
funds
2020
2020
£
£
Fund balances at 31
December 2020 are
represented by:
Tangible assets
5,495,579
-
Investments
679,542
-
Current assets/(liabilities)
(101,705)
1,114,490
Provisions
-
-
6,073,416
1,114,490		 TotalUnrestricted
funds
2020
2019
£
£
5,495,579
5,604,443
679,542
742,333
1,012,785
1,038,242
-
(101,801)
7,187,906
7,283,217		 2020
£
8,232
12,684
40,400
10,416
14,400
1,200
17,679
105,011
2020
£
-
Restricted
funds
2019
£
-
-
5,251
-
5,251		 2019
£
-
-
-
-
-
-
-
-
2019
£
101,801
Total
2019
£
5,604,443
742,333
1,043,493
(101,801)
7,288,468

21 Related party transactions

There were no disclosable related party transactions during the year (2019 - none).

NORTH WEST POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

22 Movement in funds

At 1.1.20
Unrestricted funds
£
Unrestricted income fund
7,288,468
7,288,468
Designated funds included in the above
Business contingency
Database and IT project
St Michaels Capital project
Set-up costs (amnesty period North
Wales)
Wellbeing studio project
Disaster emergency fund
Convalescence upgrade project
Total as per balance sheet		 Incoming
resources
Outgoing
resources
Net
movement
£
£
£
1,608,612
(1,709,174)
(100,562)
1,608,612
(1,709,174)
(100,562)		 At
31.12.20
£
7,187,906
7,187,906
At
31.12.20
£
528,490
92,000
45,000
24,000
125,000
100,000
200,000
1,114,490

NORTH WEST POLICE BENEVOLENT FUND

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

23
Cash generated from operations
2020
£
(Deficit)/surpus for the year
(100,562)
Adjustments for:
Investment income recognised in statement of financial activities
(22,694)
Gain on disposal of investments
(8,491)
Fair value gains and losses on investments
49,222
Depreciation and impairment of tangible fixed assets
205,137
Movements in working capital:
(Increase)/decrease in debtors
(22,476)
Increase/(decrease) in creditors
27,271
Increase in provisions
(101,801)
Increase in deferred income
105,011
Cash generated from operations
130,617		 2019
£
55,349
(29,454)
(21,361)
(60,443)
196,710
111,974
(73,791)
(20,408)
-
158,576