Charity Registration Number 1042724
Transcript of Charity Registration Number 1042724
Council for Advancement and Support of Education (Europe)
Annual Report and Accounts
30 June 2020
Charity Registration Number 1042724
Contents
Council for Advancement and Support of Education (Europe)
Reports
Reference and administrative information 1
Trustees’ report 2
Independent auditor’s report 9
Accounts
Statement of financial activities 12
Balance sheet 14
Statement of cash flows 15
Principal accounting policies 16
Notes to the accounts 19
Reference and administrative information
Council for Advancement and Support of Education (Europe) 1
Board of Trustees M Curtis
S Large
K MacDonald
Senior Executives Bruce Bernstein (Executive Director)
Leigh Cleghorn (Deputy Director)
Principal office 3rd Floor, Paxton House
30 Artillery Lane
London
E1 7LS
Charity registration number 1042724
Website www.case.org
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers Barclays Bank plc
Bloomsbury & Tottenham Court Road
Branch
PO Box 11345
London
W12 8GG
CCLA Investment Management Ltd
80 Cheapside
London
EC2V 6DZ
Solicitors Bates Wells
61 Charterhouse Street
London
EC1M 6HA
Druces & Attlee
Salisbury House
London Wall
London
EC2M 5PS
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 2
The trustees present their statutory report together with the accounts of the Council
for Advancement and Support of Education (Europe) for the year ended 30 June
2020.
The report has been prepared in accordance with Part VIII of the Charities Act 2011.
The accounts have been prepared in accordance with the accounting policies set out
on pages 16 to 18 of the attached accounts and comply with the charity’s trust deed,
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 United Kingdom
and Republic of Ireland (FRS 102).
Structure, governance and management
Constitution
The Council for Advancement and Support of Education (Europe) (“CASE (Europe)”)
was established by a Deed of Declaration of Charitable Trust signed on 6 October
1994. The trust was registered as a charity, number 1042724, on 9 December 1994.
Following the move to the OneCASE global structure, at 31 December 2019 the
operations, assets, liabilities and funds of CASE (Europe) were transferred to CASE
International LLC, which will continue to represent CASE within Europe.
Trustees
The following trustees were in office until 30 June 2020 and served throughout the
year, except where shown.
Trustee Appointed / Resigned
M Arthur Resigned 31 December 2019
J Cole Resigned 31 December 2019
S Cunningham (Honorary Trustee) Resigned 31 December 2019
M Curtis Appointed 1 January 2020
L Elder Resigned 31 December 2019
L Fertig Resigned 31 December 2019
E Jones Resigned 31 December 2019
S Large
M Lavery Resigned 31 December 2019
K MacDonald Appointed 1 January 2020
B Plummer-Powell Resigned 31 December 2019
TJ Rawlinson Resigned 31 December 2019
J van Sinderen-Law Resigned 31 December 2019
S Sych Resigned 31 December 2019
A Thiedemann Resigned 31 December 2019
S Virji Resigned 31 December 2019
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 3
Structure, governance and management (continued)
Trustees (continued)
The following trustee changes occurred in the year ended 30 June 2020:
All the trustees from the CASE Europe Charitable Trust apart from Stephen Large
resigned from the charity as of 31 December 2019; and
Two new trustees were appointed, Kirsty MacDonald, Deputy Principal
(Advancement), Royal Academy of Music and Mark Curtis, Director of
Development, New College, University of Oxford, from 1 January 2020.
The CASE (Europe) Chair:
Liesl Elder, Chief Development Officer, University of Oxford was voted in as Chair
in May 2019. Liesl resigned as Chair of the board as of 31 December 2019.
Lee Fertig, Director, The International School Brussels, became Vice Chair. Lee
resigned as Vice Chair of the board as of 31 December 2019.
Key management personnel
The key management personnel of the charity in charge of directing and controlling,
running and operating the charity on a day to day basis comprise the trustees the
Executive Director and the Deputy Director. The pay of key management is set by
trustees having considered market conditions and the charity’s financial resources.
Trustees are not normally remunerated unless approved by the board. Following the
transfer of operations, from 1 January 2020 key management personnel have been
paid by CASE International LLC.
Statement of trustees’ responsibilities
The trustees are responsible for preparing the trustees’ report and accounts in
accordance with applicable law and United Kingdom Accounting Standards (United
Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare
accounts for each financial year which give a true and fair view of the state of affairs
of the charity and of the incoming resources and application of resources of the
charity for that period. In preparing these accounts, the trustees are required to:
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Statement of Recommended Practice
(Accounting and Reporting by Charities), the Charities’ SORP;
make judgements and estimates that are reasonable and prudent;
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 4
Structure, governance and management (continued)
Statement of trustees’ responsibilities (continued)
state whether applicable United Kingdom accounting standards have been
followed, subject to any material departures disclosed and explained in the
accounts; and
prepare the accounts on the going concern basis unless it is inappropriate to
presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with
reasonable accuracy at any time the financial position of the charity and enable them
to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts
and Reports) Regulations 2008 and the provisions of the charity’s trust deed. They
are also responsible for safeguarding the assets of the charity and hence for taking
reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the charity and
financial information included on the charity’s website. Legislation in the United
Kingdom governing the preparation and dissemination of accounts may differ from
legislation in other jurisdictions.
Management structure
Decision-making responsibilities rest with the trustees, under the guidance of the
Chair, but powers are delegated on a daily basis to the Executive Director.
Connected charity
CASE (Europe) was founded by and has in the past received substantial financial
support from Council for Advancement and Support of Education (“CASE”) at 1307
New York Avenue NW, Suite 1000, Washington DC 20005-4701. CASE is
incorporated as a non-profit corporation under the laws of the District of Columbia,
USA. The President of CASE is, ex officio, an Honorary Trustee of CASE (Europe).
During the year ended 30 June 2020, CASE (Europe) paid fees based on adjusted
income to CASE to cover the charity’s share of global infrastructure costs. The fees
paid for the year were £51,250 (2019 - £83,612).
At 30 June 2020, £25,867 was owed to CASE by CASE (Europe) (2019 – £20,549).
At 31 December 2019, the operations, assets and liabilities of CASE (Europe) were
transferred to CASE International LLC, a company registered in the United States of
America.
At 30 June 2020, £747,709 was owed to CASE International LLC by CASE (Europe)
(2019: £nil).
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 5
Structure, governance and management (continued)
Risk management
The trustees have examined the major strategic, business and operational risks
which the charity faces and confirm that systems have been established to enable
regular reports to be produced so that the necessary steps can be taken to lessen
these risks. The trustees have identified the following key risks:
Dependency on limited income streams. This risk is mitigated by identifying
major dependencies, the implementation of an adequate reserves policy, careful
budgeting and monitoring processes, considering other income areas.
Significant movement in foreign exchange rates affects the financial
performance of events outside of the UK. This is mitigated by increased targeted
marketing to maximise revenue, critical examination of costs to minimise
expenditure and currency management.
New general data protection regulations. This risk is being mitigated by
working with consultants to audit data and assess compliance and the set-up of
a global internal task group to work through and amend processes to ensure
compliance.
Following the transfer of operations to CASE International LLC on 31 December
2019, all risks noted above have been reduced as the level of operations of CASE
(Europe) has significantly reduced.
Objectives and activities
The objectives of CASE (Europe) up until 31 December 2019 were to support the
development of professionals working in educational institutions in fundraising,
alumni relations and marketing and communications. CASE provides training in the
theory and practice of efficient fundraising administration and alumni and public
relations for the benefit of charitable educational institutions in the United Kingdom
and secondly for the advancement of education anywhere in the world, in all respects,
for the benefit of the public and in accordance with the laws of charity in England and
Wales from time to time.
The trustees have referred to the guidance contained in the Charity Commission's
general guidance on public benefit when reviewing the charity's aims and objectives
and in planning future activities. The aims and objectives set out below are largely
focused on working with the education sector. The ultimate beneficiaries are the staff
and students working within this sector.
CASE in Europe transitioned from an independent charity to a branch office, CASE
International LLC under the umbrella of CASE from 1 January 2020. The CASE
(Europe) charitable trust is still in existence to receive donations to support the work
of CASE International LLC.
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 6
Achievements and performance
Advocacy
CASE (Europe) continues to focus on work in supporting our member community
with the current spotlight on fundraising practices, regulation and compliance.
Membership - CASE Membership in Europe
As of May 2020, membership numbers for FY20 were 383, including 14 Educational
Partners.
Countries with highest membership numbers outside of UK are Switzerland (14),
Netherlands (14), Ireland (14) and France (11).
We continue to see an increase in new members joining from outside the UK, with
institutions joining us from Spain, France and Turkey since last October.
Membership Engagement and Acquisition
Our engagement with members has been increased through an improved on-
boarding strategy and multiple touch points during the membership cycles for less
engaged members.
In light of COVID-19, we had to postpone member engagement trips to Barcelona,
the Nordic region and other planned attendance at CASE events for the remainder
of 2020. Instead we have moved our membership engagement online by interacting
with members in the CASE Europe COVID-19 Community, CASE ToGather (online
conversations with the CASE community) and offering new online resources such as
a podcast and new webinars.
Our priorities are to retain members by increased online engagement throughout their
membership cycles and attracting new members by inviting them to our online
offering. We have seen a wide variety of members join us online at CASE ToGather,
which have proven a successful recruitment and engagement tool while also
influencing our future programming.
Our prospect pool has grown since starting the CASE on Demand online offering and
we see a specific increase of non-UK institutions reaching out about joining CASE.
Education
For FY20 we budgeted to deliver a programme consisting of 25 events. As a result
of COVID, 12 programmes were postponed (to FY21), moved to on-line offerings (in
FY20 or FY21) or cancelled. Of these programmes, three have been postponed
(Nordic Summit, Social Media and Legacies), three have been cancelled (Talent
Management, Canada Study Tour) and seven were transferred on-line (Major Gifts
& Asking, Spring Institute in Educational Fundraising, Stewardship and Donor
Relations, Student Communications, Small Shops online, Working with Volunteers
2.0 and Alumni Relations Online - the latter two are new additions).
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 7
The CASE (Europe) Annual Conference and Regular Giving were the only
programme for FY20 delivered by CASE (Europe). All other programmes were
delivered under CASE International LLC.
Future plans
CASE (Europe) will continue in receiving and encouraging donations from key
supporters of CASE to help support the following initiatives:
Presidents discretionary fund – This fund allows for flexibility to respond to new
initiatives and ideas as they arise in alignment with our ambitious strategic plan.
We intend to expand our scope to meet an even broader need of our members.
Member Engagement fund – This fund will help support CASE’s key membership
initiatives.
Thought Leadership funds – This fund will help support CASE’s key thought
leadership and research initiatives.
Talent Management fund – This fund will help support CASE’s key member
professional development initiatives, these include our graduate trainee
fundraising programmes and scholarships.
Global Impact funds – This fund will help support CASE’s global impact initiatives.
Planned Giving Programme.
Financial review
Review of the year
Revenue and expenditure (excluding CASE international activities and one off
income items) for the last five years were as follows:
2020 £
2019 £
2018 £
2017 £
2016 £
Total unrestricted income from charitable activities
989,213 1,982,284 1,950,625 1,817,286 1,821,007
Increase/(decrease) on prior year
(993,071) 36,876 133,339 (3,721) (209,443)
Total unrestricted expenditure 1,033,552 1,976,859 1,942,714 1,985,868 1,994,186
Increase/(decrease) on prior year (943,307) 34,145 (43,154) (8,318) (125,456)
Total income from charitable activities for 2019/20 amounted to £1,087,795 (2019 -
£2,271,106). This is a decrease from 2018/19 due to the transfer of operations to
CASE International LLC from 31 December 2019. Expenditure fell in line with the
reduction of income.
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 8
Financial review (continued)
Reserves policy and financial position
Prior to 31 December 2019, the trustees examined the requirement for free reserves,
i.e. those unrestricted funds not invested in tangible fixed assets, designated for
specific purposes or otherwise committed. The trustees considered that, given the
nature of the charity’s work, the level of free reserves should be between two and
four months unrestricted expenditure on infrastructure and payroll at any one time.
Based on expenditure levels at the time this would have been in the region of
£175,000 to £350,000. The trustees are of the opinion that this provides sufficient
flexibility to cover temporary shortfalls in incoming resources due to timing differences
in income flows, adequate working capital to cover core costs, and will allow the
charity to cope and respond to unforeseen emergencies whilst specific action plans
are implemented.
At 31 December 2019, the free reserves were £522,102.
On 1 January 2020, CASE (Europe)’s reserves were transferred to CASE
International LLC. Given the significantly reduced activities of the charity since this
date, the trustees believe that only minimal free reserves need to be held. At 30 June
2020, the charity’s reserves totalled £3,273, all of which are free reserves.
Approved by the trustees and signed on their behalf by:
Trustee
Approved by the trustees on: 14 October 2020
Independent auditor’s report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 9
Independent auditor’s report to the members of Council for Advancement and Support
of Education (Europe)
Opinion
We have audited the accounts of Council for Advancement and Support of Education
(Europe) (the ‘charity’) for the year ended 30 June 2020 which comprise the statement of
financial activities, the balance sheet, the statement of cash flows and notes to the accounts,
including a summary of significant accounting policies. The financial reporting framework that
has been applied in their preparation is applicable law and United Kingdom Accounting
Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard
applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting
Practice).
In our opinion, the accounts:
give a true and fair view of the state of the charity’s affairs as at 30 June 2020 and of its
income and expenditure for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.
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 accounts section of our report. We are
independent of the charity in accordance with the ethical requirements that are relevant to our
audit of the accounts 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK)
require us to report to you where:
the trustees’ use of the going concern basis of accounting in the preparation of the
accounts is not appropriate; or
the trustees have not disclosed in the accounts any identified material uncertainties that
may cast significant doubt about the charity’s ability to continue to adopt the going
concern basis of accounting for a period of at least twelve months from the date when the
accounts are authorised for issue.
Independent auditor’s report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 10
Other information
The trustees are responsible for the other information. The other information comprises the
information included in the annual report other than the accounts and our auditor’s report
thereon. Our opinion on the accounts does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the accounts, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the
accounts 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 accounts 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 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
Act 2011 requires us to report to you if, in our opinion:
the information given in the trustees’ annual report is inconsistent in any material respect
with the accounts; or
sufficient accounting records have not been kept; or
the accounts are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible
for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.
In preparing the accounts, 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 liquidate the
charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the accounts
Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.
Independent auditor’s report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 11
A further description of our responsibilities for the audit of the accounts is located on the
Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditor’s report.
This report is made solely to the charity’s trustees, as a body, in accordance with section 144
of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit
work has been undertaken so that we might state to the charity’s trustees those matters we
are required to state to them in an auditor's report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the
charity and the charity’s trustees as a body, for our audit work, for this report, or for the
opinions we have formed.
Buzzacott LLP
Statutory Auditor
130 Wood Street
London
EC2V 6DL
Date:
Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act
2006
19 October 2020
Statement of financial activities Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 12
Notes
Unrestricted funds
£
Restricted funds
(note 14) £
2020 Total
funds £
2019 Total funds
£
Income from:
Donations 1 61,528 35,758 97,286 288,162
Investments 1,296 — 1,296 660
Charitable activities 2 989,213 — 989,213 1,982,284
Total income 1,052,037 35,758 1,087,795 2,271,106
Expenditure on:
Raising funds 4 6,971 — 6,971 21,260
Charitable activities
. Educational programmes 5 844,465 30,279 874,744 1,745,829
. Membership 5 159,500 10,093 169,593 362,280
. Projects 5 22,615 — 22,615 64,626
Transfer of operations 18 522,102 — 522,102 —
Total expenditure 1,555,654 40,372 1,596,026 2,193,995
Net (expenditure)/income for the year and net movement in funds 7 (503,617) (4,614) (508,231) 77,111
Fund balances brought forward
at 1 July 2019 506,890 4,614 511,504 434,393
Fund balances carried forward
at 30 June 2020 3,273 — 3,273 511,504
All of the charity’s activities derived from continuing operations during the above financial
period.
Statement of financial activities Year to 30 June 2019
Council for Advancement and Support of Education (Europe) 13
Notes
Unrestricted funds
£
Restricted funds
(note 14) £
2019 Total funds
£
Income from:
Donations 1 66,412 221,750 288,162
Investments 660 — 660
Charitable activities 2 1,982,284 — 1,982,284
Total income 2,049,356 221,750 2,271,106
Expenditure on:
Raising funds 4 21,260 — 21,260
Charitable activities
. Educational programmes 5 1,582,978 162,851 1,745,829
. Membership 5 307,995 54,285 362,280
. Projects 5 64,626 — 64,626
Total expenditure 1,976,859 217,136 2,193,995
Net income for the year 7 72,497 4,614 77,111
Net movement in funds 72,497 4,614 77,111
Fund balances brought forward
at 1 July 2018 434,393 — 434,393
Fund balances carried forward
at 30 June 2019 506,890 4,614 511,504
All of the charity’s activities derived from continuing operations during the above financial
period.
Balance sheet 30 June 2020
Council for Advancement and Support of Education (Europe) 14
Notes 2020
£ 2020
£ 2019
£ 2019
£
Fixed assets
Tangible assets 11 — 5,604
Current assets
Debtors 12 — 338,544
Cash at bank and in hand 776,849 846,649
776,849 1,185,193
Creditors: amounts falling due
within one year 13 (773,576) (679,293)
Net current assets 3,273 505,900
Total net assets 3,273 511,504
The funds of the charity:
Funds
Income funds
Restricted funds 14 — 4,614
Unrestricted funds
. General fund 3,273 506,890
Total funds 3,273 511,504
Approved by the trustees and signed on their behalf by:
Trustee
Approved by the trustees on: 14 October 2020
Statement of cash flows Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 15
Notes
2020 £
2019 £
Cash flows from operating activities:
Net cash used in operating activities A (71,096) (241,351)
Cash flows from investing activities:
Investment income 1,296 660
1,296 660
Change in cash and cash equivalents in the year (69,800) (240,691)
Cash and cash equivalents at 1 July 2019 B 846,649 1,087,340
Cash and cash equivalents at 30 June 2020 B 776,849 846,649
Notes to the statement of cash flows for the year to 30 June 2020.
A Reconciliation of net movement in funds to net cash provided by operating activities
2020 £
2019 £
Net movement in funds (as per the statement of financial activities) (508,231) 77,111
Adjustments for:
Depreciation charge 3,102 7,056
Transfer of fixed assets 2,502 —
Investment income (1,296) (660)
Decrease (increase) in debtors 338,544 (140,690)
Increase (decrease) in creditors 94,283 (184,168)
Net cash used in operating activities (71,096) (241,351)
B Analysis of cash and cash equivalents
2020 £
2019 £
Cash at bank and in hand 352,990 354,992
Short term deposits (less than three months) 423,859 491,657
Total cash and cash equivalents 776,849 846,649
C Analysis of changes in net debt
At 1 July 2019
£
Cash flows
£
At 30 June 2020
£
Cash at bank and in hand 846,649 (69,800) 776,849
Total cash and cash equivalents 846,649 (69,800) 776,849
At 1 July 2018
£
Cash flows
£
At 30 June 2019
£
Cash at bank and in hand 1,087,340 (240,691) 846,649
Total cash and cash equivalents 1,087,340 (240,691) 846,649
Principal accounting policies 30 June 2020
Council for Advancement and Support of Education (Europe) 16
The principal accounting policies adopted, judgements and key sources of estimation
uncertainty in the preparation of the accounts are laid out below.
Basis of preparation
These accounts have been prepared for the year to 30 June 2020.
The accounts have been prepared under the historical cost convention with items
recognised at cost or transaction value unless otherwise stated in the relevant accounting
policies below or the notes to these accounts.
The accounts have been prepared in accordance with Accounting and Reporting by
Charities: Statement of Recommended Practice applicable to charities preparing their
accounts in accordance with the Financial Reporting Standard applicable in the United
Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) issued October
2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS
102) and the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
The accounts are presented in sterling and are rounded to the nearest pound.
Critical accounting estimates and areas of judgement
Preparation of the accounts requires the trustees and management to make significant
judgements and estimates.
The items in the accounts where these judgements and estimates have been made include:
estimating the provision for bad and doubtful debts.
Assessment of going concern
The trustees have assessed whether the use of the going concern assumption is appropriate
in preparing these accounts. The trustees have made this assessment in respect to a period
of one year from the date of approval of these accounts.
The trustees of the charity have concluded that there are no material uncertainties related
to events or conditions that may cast significant doubt on the ability of the charity to continue
as a going concern. The trustees are of the opinion that the charity will have sufficient
resources to meet its liabilities as they fall due.
Income
Income is recognised in the period in which the charity is entitled to receipt and where the
amount can be measured with reasonable certainty.
Membership fee income
Membership fee income is received annually in advance and released to the statement of
financial activities over the period to which the membership relates.
Principal accounting policies 30 June 2020
Council for Advancement and Support of Education (Europe) 17
Expenditure and the basis of apportioning costs
Expenditure is included in the statement of financial activities when incurred and includes
irrecoverable VAT.
The costs of charitable activities comprise direct expenses incurred on the defined charitable
purposes of the charity and include direct staff costs attributable to the activity and an
allocation of certain shared support and governance costs.
Support costs have been allocated on the basis of time spent on each activity.
Governance costs include those incurred in the governance of the charity and its assets and
are primarily associated with constitutional and statutory requirements.
Tangible fixed assets
All assets costing more than £1,000 and with an expected useful life exceeding one year
are capitalised.
Depreciation is provided on all tangible fixed assets at rates calculated to write each asset
down to its estimated residual value evenly over its expected useful life, as follows:
Computer equipment - 25% on straight line basis
Office equipment - 20% on straight line basis
Furniture and fittings - 15% on straight line basis
Debtors
Debtors are recognised at their settlement amount, less any provision for non-recoverability.
Prepayments are valued at the amount prepaid. They have been discounted to the present
value of the future cash receipt where such discounting is material.
Cash at bank and in hand
Cash at bank and in hand represents such accounts and instruments that are available on
demand or have a maturity of less than three months from the date of acquisition.
Creditors and provisions
Creditors and provisions are recognised when there is an obligation at the balance sheet
date as a result of a past event, it is probable that a transfer of economic benefit will be
required in settlement, and the amount of the settlement can be estimated reliably. Creditors
and provisions are recognised at the amount the charity anticipates it will pay to settle the
debt. They have been discounted to the present value of the future cash payment where
such discounting is material.
Funds
The unrestricted general funds comprise those monies which may be used towards meeting
the charitable objectives of the charity at the discretion of the trustees.
The restricted funds are monies raised for, and their use restricted to, a specific purpose, or
donations subject to donor imposed conditions.
Principal accounting policies 30 June 2020
Council for Advancement and Support of Education (Europe) 18
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of
exchange ruling at the balance sheet date. Transactions in foreign currencies are translated
into sterling at the rate of exchange ruling at the date of the transaction. Exchange
differences are taken into account in arriving at the net movement in funds.
Leased assets
Rentals applicable to operating leases where substantially all of the benefits and risks of
ownership remain with the lessor are charged on a straight-line basis over the lease term.
Pension costs
The charity makes contributions on behalf of 15 employees to an employees’ group personal
pension scheme which are recognised in the statement of financial activities in the year in
which they are payable to the scheme.
The institution participates in Universities Superannuation Scheme. With effect from 1
October 2016, the scheme changed from a defined benefit only pension scheme to a hybrid
pension scheme, providing defined benefits (for all members), as well as defined
contribution benefits. The assets of the scheme are held in a separate trustee- administered
fund. Because of the mutual nature of the scheme, the assets are not attributed to individual
institutions and a scheme-wide contribution rate is set. The institution is therefore exposed
to actuarial risks associated with other institutions’ employees and is unable to identify its
share of the underlying assets and liabilities of the scheme on a consistent and reasonable
basis. As required by Section 28 of FRS 102 “Employee benefits”, the institution therefore
accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the
amount charged to the profit and loss account represents the contributions payable to the
scheme.
Following the transfer to CASE International LLC during the year, the liability due to
Universities Superannuation Scheme has been fully paid.
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 19
1 Donations and legacies
Unrestricted funds
£
Restricted funds
£
2020 Total funds
£
CASE (note 18) - Grant from connected charity
— 35,758 35,758
Graduate Trainee Scheme 58,000 — 58,000
Other donations 3,528 — 3,528
2020 Total funds 61,528 35,758 97,286
Unrestricted funds
£
Restricted funds
£
2019 Total funds
£
CASE (note 18) - Grant from connected charity
— 221,750 221,750
Graduate Trainee Scheme 61,195 — 61,195
Other donations 5,217 — 5,217
2019 Total funds 66,412 221,750 288,162
2 Charitable activities
Unrestricted funds
£
Restricted funds
£
2020 Total funds
£
Educational programmes (note 3) 639,698 — 639,698
Membership fees 225,722 — 225,722
Sponsorship of programmes 72,462 — 72,462
Recruitment advertising 30,929 — 30,929
Other income 20,402 — 20,402
2020 Total funds 989,213 — 989,213
Unrestricted funds £
Restricted funds £
2019 Total funds £
Educational programmes (note 3) 1,299,412 — 1,299,412
Membership fees 437,065 — 437,065
Sponsorship of programmes 129,001 — 129,001
Recruitment advertising 80,779 — 80,779
Other income 36,027 — 36,027
2019 Total funds 1,982,284 — 1,982,284
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 20
3 Educational programmes
Educational programmes in the year are made up as follows:
2020 Total funds £
2019 Total funds £
CASE (Europe) Annual Conference 581,843 665,224
Spring Institute in Educational Fundraising 7,200 154,616
Alumni Relations Institute — 46,124
Social Media Conference — 19,985
Study Tours — 50,089
Strategic Marketing Institute — 32,305
One Day Events — 21,159
Annual Regular Giving Conference 33,268 37,509
CASE on Campus — 6,000
Development Services Conference — 77,340
Legacies Forum — 11,942
Development for Deans and Academics — 13,394
Introduction to Fundraising and Alumni — 14,283
Working with Volunteers — 19,690
Strategic Fundraising for HE Leaders — 12,913
Stewardship and Donor Relations — 17,728
Nordic Summit — 61,692
Student Communications, Recruitment and Market Research Forum
2,115
17,087
Lowlands Conference — 9,801
Award entry fees 4,139 —
Other events income 11,133 10,531
Total 639,698 1,299,412
4 Raising funds
Unrestricted funds
£
Restricted funds
£
2020 Total funds
£
2020 Total funds: Marketing costs 6,971 — 6,971
Unrestricted funds £
Restricted funds £
2019 Total funds £
2019 Total funds: Marketing costs 21,260 — 21,260
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 21
5 Charitable activities expenditure
Unrestricted funds
£
Restricted funds
£
2020 Total funds
£
Educational programmes
Direct costs
. Staff costs (note 8) 125,249 — 125,249
. Staff travel 170 — 170
. Non-staff travel 8100 — 8100
. Catering costs 193,137 — 193,137
. Room hire 128,312 — 128,312
. Accommodation 32,916 — 32,916
. Exhibition and sponsorship 94,008 — 94,008
Allocated support costs (note 6) 262,574 30,279 292,853
Educational programmes total 844,465 30,279 874,744
Membership
Direct costs
. Staff costs (note 8) 67,992 — 67,992
. Other 3,018 — 3,018
Allocated support costs (note 6) 87,527 10,093 97,620
Membership total 158,537 10,093 168,630
Projects
Graduate Trainee Scheme
Direct costs
. Staff costs (note 8) 7,157 — 7,157
. Candidate selection 3,020 — 3,020
. Office expenses 3,571 — 3,571
. Travel and other expenses 9,300 — 9,300
23,049 — 23,049
Ross CASE Survey
Direct costs (433) — (433)
(433) — (433)
Projects total 22,615 — 22,615
2020 Total charitable activities 1,025,617 40,372 1,065,989
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 22
5 Charitable activities expenditure (continued)
Unrestricted funds
£
Restricted funds
£
2019 Total funds
£
Educational programmes
Direct costs
. Staff costs (note 8) 225,775 — 225,775
. Staff travel 23,007 — 23,007
. Non-staff travel 47,351 — 47,351
. Catering costs 220,454 — 220,454
. Room hire 291,038 — 291,038
. Accommodation 123,718 — 123,718
. Exhibition and sponsorship 144,206 — 144,206
Allocated support costs (note 6) 507,429 162,851 670,280
Educational programmes total 1,582,978 162,851 1,745,829
Membership
Direct costs
. Staff costs (note 8) 122,563 — 122,563
. Other 16,289 — 16,289
Allocated support costs (note 6) 169,143 54,285 223,428
Membership total 307,995 54,285 362,280
Projects
Graduate Trainee Scheme
Direct costs
. Staff costs (note 8) 12,901 — 12,901
. Candidate selection 4,464 — 4,464
. Consultancy 17,947 — 17,947
. Travel and other expenses 25,727 — 25,727
61,039 — 61,039
Ross CASE Survey
Direct costs 3,587 — 3,587
3,587 — 3,587
Projects total 64,626 — 64,626
2019 Total charitable activities 1,955,599 217,136 2,172,735
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 23
6 Analysis of support costs
Unrestricted funds
£
Restricted funds
£
2020 Total funds
£
Staff costs (note 8) 157,456 27,590 185,046
Other staff costs 33,454 — 33,454
Office costs 84,978 38 85,017
Legal and professional costs 15,314 — 15,314
Bank and credit card charges 8,342 — 8,342
Loss on foreign exchange 4,032 — 4,032
Payroll costs 1,134 — 1,134
Depreciation and other support costs 4,140 — 16,884
Global infrastructure cost sharing (note 18) 41,249 — 41,249
2020 Total funds 350,099 40,372 390,471
Unrestricted funds £
Restricted funds £
2019 Total funds £
Staff costs (note 8) 289,375 151,831 441,206
Other staff costs 34,049 34,912 68,961
Office costs 167,767 2,343 170,110
Legal and professional costs 20,803 — 20,803
Bank and credit card charges 26,486 — 26,486
Gain on foreign exchange 6,995 — 6,995
Payroll costs 9,024 — 9,024
Depreciation and other support costs 38,063 28,048 66,111
Global infrastructure cost sharing (note 18) 84,012 — 84,012
2019 Total funds 676,574 217,134 893,708
Support costs are allocated between educational programmes and membership activities on
the basis of time spent on each activity as follows:
Unrestricted funds
£
Restricted funds
£
2020
£
Educational programmes 262,574 30,279 292,853
Membership 87,527 10,093 97,620
2020 Total funds 350,101 40,372 390,473
Unrestricted funds £
Restricted funds £
2019 £
Educational programmes 507,429 162,851 670,280
Membership 169,143 54,285 223,428
2019 Total funds 676,572 217,136 893,708
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 24
7 Net income for the year
This is stated after charging:
Unrestricted funds £
Restricted funds £
2020 Total funds £
Staff costs (note 8) 357,854 27,590 385,444
Operating lease rentals 36,783 — 36,783
Auditor’s remuneration
. Audit services 10,020 — 10,020
. Other services 2,400 — 2,400
Depreciation 3,102 — 3,102
Unrestricted funds
£
Restricted funds
£
2019 Total funds
£
Staff costs (note 8) 650,614 151,831 802,445
Operating lease rentals 61,992 — 61,992
Auditor’s remuneration
. Audit services 9,255 — 9,255
. Other services 2,000 — 2,000
Depreciation 7,056 — 7,056
8 Employees
Staff costs during the year were as follows:
Unrestricted funds
£
Restricted funds
£
2020 Total funds
£
Wages and salaries 270,174 23,173 293,887
Social security costs 26,187 2,878 29,035
Pension costs 61,494 1,028 62,522
2020 Total funds 357,854 27,590 385,444
Unrestricted funds £
Restricted funds £
2019 Total funds £
Wages and salaries 544,780 120,860 665,640
Social security costs 57,548 15,339 72,887
Pension costs 48,286 15,632 63,918
2019 Total funds 650,614 151,831 802,445
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 25
8 Employees (continued)
Staff costs by function are as follows: 2020
£ 2019 £
Educational programmes 125,249 225,775
Membership 67,992 122,563
Projects 7,157 12,901
Support 185,046 441,206
285,444 802,445
The total remuneration (including taxable benefits and employer's pension contributions) of
the key management personnel, as defined in the trustees’ report, for the year was £89,119
(2019 - £271,034).
The average number of employees during the six month period before transfer (2019: year),
analysed by function, was as follows:
2020 Number
2019 Number
Educational programmes – organisation and administration 13 13
Membership 3 3
16 16
The number of employees who earned £60,000 per annum or more (including taxable benefits
but excluding employer pension contributions) during the year was as follows:
2020 Number
2019 Number
£70,001 - £80,000 — 2
9 Trustees’ remuneration
None of the trustees received any remuneration in respect of their services as trustees during
the year (2019 – none). As disclosed in note 19, two trustees received payment for
consultancy services during the previous year.
During the year out of pocket travelling expenses amounting to £1,326 (2019 – £2,681) were
reimbursed to seven (2019 – six) trustees.
10 Taxation
Council for Advancement and Support of Education (Europe) is a registered charity and
therefore is not liable to income tax or corporation tax on income derived from its charitable
activities, as it falls within the various exemptions available to registered charities.
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 26
11 Tangible fixed assets
Computer equipment
£
Office equipment
£
Furniture and fittings
£
Total
£
Cost
At 1 July 2019 22,126 30,403 68,591 121,120
Disposals — (28,843) (1,434) (30,277)
Transfer of operations (note 18) (22,126) (1,560) (67,157) (90,843)
At 30 June 2020 — — — —
Depreciation
At 1 July 2019 22,126 27,519 65,871 115,516
Charge for year — 2,286 816 3,102
Disposals — (28,843) (1,434) (30,277)
Transfer of operations (note 18) (22,126) (962) (65,253) (88,341)
At 30 June 2020 — — — —
Net book values
At 30 June 2020 — — — —
At 30 June 2019 — 2,884 2,720 5,604
12 Debtors
2020 £
2019 £
Other debtors — 12,283
Trade debtors — 22,974
Amount due from connected charity (note 18) — 20,218
Prepayments — 283,069
— 338,544
13 Creditors: amounts falling due within one year 2020
£ 2019 £
Trade creditors — 17,644
Other taxation and social security — 14,061
Accruals and deferred income — 633,259
Other creditors — 14,329
Amount due to connected company (note 18) 773,576 —
773,576 679,293
Deferred income at 30 June 2019 included membership fees of £218,157 which related to the
2019/20 year and educational programme income received in advance of £342,947.
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 27
14 Restricted funds At
1 July 2019
£
Income £
Expenditure
£
Transfers
£
At 30 June 2020
£
CASE - International operations
4,614
35,758 (40,372) — —
4,614 35,758 (40,372) — —
At
1 July 2018 £
Income
£
Expenditure £
Transfers £
At 30 June 2019 £
CASE - International operations
—
221,750 (217,136) — 4,614
— 221,750 (217,136) — 4,614
CASE - International operations
The restricted fund represented funds from CASE to cover the costs of international
programmes.
15 Commitments under operating leases
At 30 June 2020 the charity had total future minimum payments under non-cancellable
operating leases payable as follows:
Land and buildings
2020 £
2019 £
Within two to five years — —
Less than one year — 32,424
Total commitments — 32,424
16 Indemnity insurance
The charity has purchased indemnity insurance to protect it from loss arising from any
wrongful or dishonest act of any trustee or employee and to indemnify any trustee or employee
against the consequence of any wrongful act on their part. The total cover provided by such
insurance is £1,000,000 (2019 - £1,000,000) and the total premium paid in respect of such
insurance for the year was £2,111 (2019 - £2,338).
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 28
17 Pension commitments – Universities Superannuation Scheme
CASE (Europe) participated in the Universities Superannuation Scheme (USS), a defined
benefit scheme which is contracted out of the State Second Pension (S2P). The assets of the
scheme are held in a separate fund administered by the trustee, Universities Superannuation
Scheme Limited. CASE (Europe) is unable to identify its share of the underlying assets and
liabilities of the scheme on a consistent and reasonable basis and therefore, as required by
FRS 102 Section 28 “Employee Benefits”, accounts for the scheme as if it were a defined
contribution scheme, the cost recognised within the statement of financial activities being
equal to the contributions payable to the scheme for the year.
Following the transfer of operations to CASE International LLC, the liability owed to USS was
settled by CASE and no further liabilities are due from CASE (Europe) to USS. The following
disclosures therefore relate to the year ended 30 June 2019.
The disclosures below represent the position from the overall scheme’s accounts.
The latest actuarial valuation of the scheme was at 31 March 2017. The assumptions which
have the most significant effect on the result of the valuation are those relating to the rate of
return on investments (i.e., the valuation rate of interest) and the rates of increase in salary
and pensions. In relation to the past service liabilities the financial assumptions were derived
from market yields prevailing at the valuation date. It was assumed that the valuation rate of
interest would be Consumer Price Index (CPI) - 0.53% in year 1, decreasing linearly to CPI -
1.32% in years 1-10, CPI +2.56% p.a. in year 11 reducing linearly to CPI +1.7% p.a. beyond
that point; salary increases would be based on CPI + 2.0%; and pensions would increase by
in line with CPI each year.
Standard S1NA YoB mortality tables were used, with female members’ mortality rated down
by one year and no age rating adjustment made with respect to male members’ mortality.
Use of mortality tables reasonably reflects the actual USS experience but also provides an
element of conservatism to allow for further improvements in mortality rates. The assumed
life expectations on retirement at age 65 are:
Males (females) currently aged 65: 24.2 (26.3) years
Males (females) currently aged 45: 26.2 (28.6) years
At the valuation date, the value of notional assets of the scheme was £60.0 billion and the
value of the technical provisions was £67.5 billion indicating a deficit of £7.5 billion. The assets
therefore were sufficient to cover 89% of the benefits which had accrued to Members after
allowing for expected future increase in earnings.
As a consequence of the 2014 valuation, the Trustee determined, after a consultation period,
a recovery plan to pay off the shortfall by 31 March 2031. This is being achieved partly by
increasing employer contributions to the USS to 18% of pensionable salaries, from 16%,
effective from 1 April 2016.
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 29
17 Pension commitments – Universities Superannuation Scheme (continued)
Surpluses or deficits which arise at future valuations may impact on the company’s future
contribution commitment. An additional factor which could impact the funding level of the
scheme is that with effect from 16 March 2006, USS positioned itself as a “last man standing”
scheme so that in the event of the insolvency of any of the participating employers in the USS,
the amount of any pension funding shortfall (which cannot otherwise be recovered) in respect
of that employer will be spread across the remaining participant employers and reflected in
the next actuarial valuation of the scheme.
The next formal triennial actuarial valuation will be as at 31 March 2020. The contribution rate
will be reviewed as part of each valuation.
18 Connected charities
CASE (Europe) was founded by and has in the past received substantial financial support
from Council for Advancement and Support of Education (“CASE”) at 1307 New York Avenue
NW, Suite 1000, Washington DC 20005-4701. CASE was incorporated as a non-profit
corporation under the laws of the District of Columbia, USA. The President of CASE is, ex-
officio, an Honorary Trustee of CASE (Europe).
During the year ended 30 June 2020 a grant of £35,758 (2019 - £136,385) was transferred
from CASE to CASE (Europe) to cover the costs of the CASE activity delivered from London.
During the year ended 30 June 2020, CASE (Europe) paid fees based on adjusted income to
CASE in relation to the charity’s share of global infrastructure costs. The fees paid were
£41,249 (2019 - £85,365).
At 30 June 2020, £25,867 was owed by CASE to CASE (Europe) (2019 – owed to CASE by
CASE (Europe) £20,218).
During the year ended 30 June 2020, CASE (Europe) transferred its operations, assets,
liabilities and reserves to CASE International LLC, resulting in a donation of £522,102.
At 30 June 2020, £747,709 was owed by CASE (Europe) to CASE International LLC (2019 -
£nil).
The donation of £522,102 represented the balance sheet of CASE (Europe) as at 31
December 2019, which was as follows:
31 December 2019 £
Fixed assets Tangible assets 2,502
Current assets
Debtors 174,261
Cash at bank and in hand 827,977
1,002,237
Creditors: amounts falling due within one year (452,637)
Net current assets 549,600
Total net assets 552,102
The funds of the charity:
Unrestricted funds 552,102
Total funds 552,102
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 30
19 Related party transactions
A number of the trustees of CASE (Europe) hold key management positions within
universities. During the year CASE (Europe) undertook transactions with these organisations
in the normal course of business. All of the transactions were carried out at arm’s length.
Fees totalling £nil (2019: £2,500) were payable during the year to Colin McCallum, a trustee,
for consultancy services. Fees totalling £nil were also paid to Michael Lavery, a trustee, for
consultancy services during the year (2019 - £51,163). These transactions were carried out
at arm’s length and permitted under the charity’s trust deed.
Council for Advancement and Support of Education (Europe)
Annual Report and Accounts
30 June 2020
Charity Registration Number 1042724
Contents
Council for Advancement and Support of Education (Europe)
Reports
Reference and administrative information 1
Trustees’ report 2
Independent auditor’s report 9
Accounts
Statement of financial activities 12
Balance sheet 14
Statement of cash flows 15
Principal accounting policies 16
Notes to the accounts 19
Reference and administrative information
Council for Advancement and Support of Education (Europe) 1
Board of Trustees M Curtis
S Large
K MacDonald
Senior Executives Bruce Bernstein (Executive Director)
Leigh Cleghorn (Deputy Director)
Principal office 3rd Floor, Paxton House
30 Artillery Lane
London
E1 7LS
Charity registration number 1042724
Website www.case.org
Auditor Buzzacott LLP
130 Wood Street
London
EC2V 6DL
Bankers Barclays Bank plc
Bloomsbury & Tottenham Court Road
Branch
PO Box 11345
London
W12 8GG
CCLA Investment Management Ltd
80 Cheapside
London
EC2V 6DZ
Solicitors Bates Wells
61 Charterhouse Street
London
EC1M 6HA
Druces & Attlee
Salisbury House
London Wall
London
EC2M 5PS
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 2
The trustees present their statutory report together with the accounts of the Council
for Advancement and Support of Education (Europe) for the year ended 30 June
2020.
The report has been prepared in accordance with Part VIII of the Charities Act 2011.
The accounts have been prepared in accordance with the accounting policies set out
on pages 16 to 18 of the attached accounts and comply with the charity’s trust deed,
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 United Kingdom
and Republic of Ireland (FRS 102).
Structure, governance and management
Constitution
The Council for Advancement and Support of Education (Europe) (“CASE (Europe)”)
was established by a Deed of Declaration of Charitable Trust signed on 6 October
1994. The trust was registered as a charity, number 1042724, on 9 December 1994.
Following the move to the OneCASE global structure, at 31 December 2019 the
operations, assets, liabilities and funds of CASE (Europe) were transferred to CASE
International LLC, which will continue to represent CASE within Europe.
Trustees
The following trustees were in office until 30 June 2020 and served throughout the
year, except where shown.
Trustee Appointed / Resigned
M Arthur Resigned 31 December 2019
J Cole Resigned 31 December 2019
S Cunningham (Honorary Trustee) Resigned 31 December 2019
M Curtis Appointed 1 January 2020
L Elder Resigned 31 December 2019
L Fertig Resigned 31 December 2019
E Jones Resigned 31 December 2019
S Large
M Lavery Resigned 31 December 2019
K MacDonald Appointed 1 January 2020
B Plummer-Powell Resigned 31 December 2019
TJ Rawlinson Resigned 31 December 2019
J van Sinderen-Law Resigned 31 December 2019
S Sych Resigned 31 December 2019
A Thiedemann Resigned 31 December 2019
S Virji Resigned 31 December 2019
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 3
Structure, governance and management (continued)
Trustees (continued)
The following trustee changes occurred in the year ended 30 June 2020:
All the trustees from the CASE Europe Charitable Trust apart from Stephen Large
resigned from the charity as of 31 December 2019; and
Two new trustees were appointed, Kirsty MacDonald, Deputy Principal
(Advancement), Royal Academy of Music and Mark Curtis, Director of
Development, New College, University of Oxford, from 1 January 2020.
The CASE (Europe) Chair:
Liesl Elder, Chief Development Officer, University of Oxford was voted in as Chair
in May 2019. Liesl resigned as Chair of the board as of 31 December 2019.
Lee Fertig, Director, The International School Brussels, became Vice Chair. Lee
resigned as Vice Chair of the board as of 31 December 2019.
Key management personnel
The key management personnel of the charity in charge of directing and controlling,
running and operating the charity on a day to day basis comprise the trustees the
Executive Director and the Deputy Director. The pay of key management is set by
trustees having considered market conditions and the charity’s financial resources.
Trustees are not normally remunerated unless approved by the board. Following the
transfer of operations, from 1 January 2020 key management personnel have been
paid by CASE International LLC.
Statement of trustees’ responsibilities
The trustees are responsible for preparing the trustees’ report and accounts in
accordance with applicable law and United Kingdom Accounting Standards (United
Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England and Wales requires the trustees to prepare
accounts for each financial year which give a true and fair view of the state of affairs
of the charity and of the incoming resources and application of resources of the
charity for that period. In preparing these accounts, the trustees are required to:
select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Statement of Recommended Practice
(Accounting and Reporting by Charities), the Charities’ SORP;
make judgements and estimates that are reasonable and prudent;
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 4
Structure, governance and management (continued)
Statement of trustees’ responsibilities (continued)
state whether applicable United Kingdom accounting standards have been
followed, subject to any material departures disclosed and explained in the
accounts; and
prepare the accounts on the going concern basis unless it is inappropriate to
presume that the charity will continue in operation.
The trustees are responsible for keeping proper accounting records that disclose with
reasonable accuracy at any time the financial position of the charity and enable them
to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts
and Reports) Regulations 2008 and the provisions of the charity’s trust deed. They
are also responsible for safeguarding the assets of the charity and hence for taking
reasonable steps for the prevention and detection of fraud and other irregularities.
The trustees are responsible for the maintenance and integrity of the charity and
financial information included on the charity’s website. Legislation in the United
Kingdom governing the preparation and dissemination of accounts may differ from
legislation in other jurisdictions.
Management structure
Decision-making responsibilities rest with the trustees, under the guidance of the
Chair, but powers are delegated on a daily basis to the Executive Director.
Connected charity
CASE (Europe) was founded by and has in the past received substantial financial
support from Council for Advancement and Support of Education (“CASE”) at 1307
New York Avenue NW, Suite 1000, Washington DC 20005-4701. CASE is
incorporated as a non-profit corporation under the laws of the District of Columbia,
USA. The President of CASE is, ex officio, an Honorary Trustee of CASE (Europe).
During the year ended 30 June 2020, CASE (Europe) paid fees based on adjusted
income to CASE to cover the charity’s share of global infrastructure costs. The fees
paid for the year were £51,250 (2019 - £83,612).
At 30 June 2020, £25,867 was owed to CASE by CASE (Europe) (2019 – £20,549).
At 31 December 2019, the operations, assets and liabilities of CASE (Europe) were
transferred to CASE International LLC, a company registered in the United States of
America.
At 30 June 2020, £747,709 was owed to CASE International LLC by CASE (Europe)
(2019: £nil).
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 5
Structure, governance and management (continued)
Risk management
The trustees have examined the major strategic, business and operational risks
which the charity faces and confirm that systems have been established to enable
regular reports to be produced so that the necessary steps can be taken to lessen
these risks. The trustees have identified the following key risks:
Dependency on limited income streams. This risk is mitigated by identifying
major dependencies, the implementation of an adequate reserves policy, careful
budgeting and monitoring processes, considering other income areas.
Significant movement in foreign exchange rates affects the financial
performance of events outside of the UK. This is mitigated by increased targeted
marketing to maximise revenue, critical examination of costs to minimise
expenditure and currency management.
New general data protection regulations. This risk is being mitigated by
working with consultants to audit data and assess compliance and the set-up of
a global internal task group to work through and amend processes to ensure
compliance.
Following the transfer of operations to CASE International LLC on 31 December
2019, all risks noted above have been reduced as the level of operations of CASE
(Europe) has significantly reduced.
Objectives and activities
The objectives of CASE (Europe) up until 31 December 2019 were to support the
development of professionals working in educational institutions in fundraising,
alumni relations and marketing and communications. CASE provides training in the
theory and practice of efficient fundraising administration and alumni and public
relations for the benefit of charitable educational institutions in the United Kingdom
and secondly for the advancement of education anywhere in the world, in all respects,
for the benefit of the public and in accordance with the laws of charity in England and
Wales from time to time.
The trustees have referred to the guidance contained in the Charity Commission's
general guidance on public benefit when reviewing the charity's aims and objectives
and in planning future activities. The aims and objectives set out below are largely
focused on working with the education sector. The ultimate beneficiaries are the staff
and students working within this sector.
CASE in Europe transitioned from an independent charity to a branch office, CASE
International LLC under the umbrella of CASE from 1 January 2020. The CASE
(Europe) charitable trust is still in existence to receive donations to support the work
of CASE International LLC.
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 6
Achievements and performance
Advocacy
CASE (Europe) continues to focus on work in supporting our member community
with the current spotlight on fundraising practices, regulation and compliance.
Membership - CASE Membership in Europe
As of May 2020, membership numbers for FY20 were 383, including 14 Educational
Partners.
Countries with highest membership numbers outside of UK are Switzerland (14),
Netherlands (14), Ireland (14) and France (11).
We continue to see an increase in new members joining from outside the UK, with
institutions joining us from Spain, France and Turkey since last October.
Membership Engagement and Acquisition
Our engagement with members has been increased through an improved on-
boarding strategy and multiple touch points during the membership cycles for less
engaged members.
In light of COVID-19, we had to postpone member engagement trips to Barcelona,
the Nordic region and other planned attendance at CASE events for the remainder
of 2020. Instead we have moved our membership engagement online by interacting
with members in the CASE Europe COVID-19 Community, CASE ToGather (online
conversations with the CASE community) and offering new online resources such as
a podcast and new webinars.
Our priorities are to retain members by increased online engagement throughout their
membership cycles and attracting new members by inviting them to our online
offering. We have seen a wide variety of members join us online at CASE ToGather,
which have proven a successful recruitment and engagement tool while also
influencing our future programming.
Our prospect pool has grown since starting the CASE on Demand online offering and
we see a specific increase of non-UK institutions reaching out about joining CASE.
Education
For FY20 we budgeted to deliver a programme consisting of 25 events. As a result
of COVID, 12 programmes were postponed (to FY21), moved to on-line offerings (in
FY20 or FY21) or cancelled. Of these programmes, three have been postponed
(Nordic Summit, Social Media and Legacies), three have been cancelled (Talent
Management, Canada Study Tour) and seven were transferred on-line (Major Gifts
& Asking, Spring Institute in Educational Fundraising, Stewardship and Donor
Relations, Student Communications, Small Shops online, Working with Volunteers
2.0 and Alumni Relations Online - the latter two are new additions).
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 7
The CASE (Europe) Annual Conference and Regular Giving were the only
programme for FY20 delivered by CASE (Europe). All other programmes were
delivered under CASE International LLC.
Future plans
CASE (Europe) will continue in receiving and encouraging donations from key
supporters of CASE to help support the following initiatives:
Presidents discretionary fund – This fund allows for flexibility to respond to new
initiatives and ideas as they arise in alignment with our ambitious strategic plan.
We intend to expand our scope to meet an even broader need of our members.
Member Engagement fund – This fund will help support CASE’s key membership
initiatives.
Thought Leadership funds – This fund will help support CASE’s key thought
leadership and research initiatives.
Talent Management fund – This fund will help support CASE’s key member
professional development initiatives, these include our graduate trainee
fundraising programmes and scholarships.
Global Impact funds – This fund will help support CASE’s global impact initiatives.
Planned Giving Programme.
Financial review
Review of the year
Revenue and expenditure (excluding CASE international activities and one off
income items) for the last five years were as follows:
2020 £
2019 £
2018 £
2017 £
2016 £
Total unrestricted income from charitable activities
989,213 1,982,284 1,950,625 1,817,286 1,821,007
Increase/(decrease) on prior year
(993,071) 36,876 133,339 (3,721) (209,443)
Total unrestricted expenditure 1,033,552 1,976,859 1,942,714 1,985,868 1,994,186
Increase/(decrease) on prior year (943,307) 34,145 (43,154) (8,318) (125,456)
Total income from charitable activities for 2019/20 amounted to £1,087,795 (2019 -
£2,271,106). This is a decrease from 2018/19 due to the transfer of operations to
CASE International LLC from 31 December 2019. Expenditure fell in line with the
reduction of income.
Trustees’ report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 8
Financial review (continued)
Reserves policy and financial position
Prior to 31 December 2019, the trustees examined the requirement for free reserves,
i.e. those unrestricted funds not invested in tangible fixed assets, designated for
specific purposes or otherwise committed. The trustees considered that, given the
nature of the charity’s work, the level of free reserves should be between two and
four months unrestricted expenditure on infrastructure and payroll at any one time.
Based on expenditure levels at the time this would have been in the region of
£175,000 to £350,000. The trustees are of the opinion that this provides sufficient
flexibility to cover temporary shortfalls in incoming resources due to timing differences
in income flows, adequate working capital to cover core costs, and will allow the
charity to cope and respond to unforeseen emergencies whilst specific action plans
are implemented.
At 31 December 2019, the free reserves were £522,102.
On 1 January 2020, CASE (Europe)’s reserves were transferred to CASE
International LLC. Given the significantly reduced activities of the charity since this
date, the trustees believe that only minimal free reserves need to be held. At 30 June
2020, the charity’s reserves totalled £3,273, all of which are free reserves.
Approved by the trustees and signed on their behalf by:
Trustee
Approved by the trustees on: 14 October 2020
Independent auditor’s report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 9
Independent auditor’s report to the members of Council for Advancement and Support
of Education (Europe)
Opinion
We have audited the accounts of Council for Advancement and Support of Education
(Europe) (the ‘charity’) for the year ended 30 June 2020 which comprise the statement of
financial activities, the balance sheet, the statement of cash flows and notes to the accounts,
including a summary of significant accounting policies. The financial reporting framework that
has been applied in their preparation is applicable law and United Kingdom Accounting
Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard
applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting
Practice).
In our opinion, the accounts:
give a true and fair view of the state of the charity’s affairs as at 30 June 2020 and of its
income and expenditure for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.
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 accounts section of our report. We are
independent of the charity in accordance with the ethical requirements that are relevant to our
audit of the accounts 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK)
require us to report to you where:
the trustees’ use of the going concern basis of accounting in the preparation of the
accounts is not appropriate; or
the trustees have not disclosed in the accounts any identified material uncertainties that
may cast significant doubt about the charity’s ability to continue to adopt the going
concern basis of accounting for a period of at least twelve months from the date when the
accounts are authorised for issue.
Independent auditor’s report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 10
Other information
The trustees are responsible for the other information. The other information comprises the
information included in the annual report other than the accounts and our auditor’s report
thereon. Our opinion on the accounts does not cover the other information and we do not
express any form of assurance conclusion thereon.
In connection with our audit of the accounts, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the
accounts 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 accounts 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 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
Act 2011 requires us to report to you if, in our opinion:
the information given in the trustees’ annual report is inconsistent in any material respect
with the accounts; or
sufficient accounting records have not been kept; or
the accounts are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible
for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.
In preparing the accounts, 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 liquidate the
charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the accounts
Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.
Independent auditor’s report Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 11
A further description of our responsibilities for the audit of the accounts is located on the
Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This
description forms part of our auditor’s report.
This report is made solely to the charity’s trustees, as a body, in accordance with section 144
of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit
work has been undertaken so that we might state to the charity’s trustees those matters we
are required to state to them in an auditor's report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the
charity and the charity’s trustees as a body, for our audit work, for this report, or for the
opinions we have formed.
Buzzacott LLP
Statutory Auditor
130 Wood Street
London
EC2V 6DL
Date:
Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act
2006
19 October 2020
Statement of financial activities Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 12
Notes
Unrestricted funds
£
Restricted funds
(note 14) £
2020 Total
funds £
2019 Total funds
£
Income from:
Donations 1 61,528 35,758 97,286 288,162
Investments 1,296 — 1,296 660
Charitable activities 2 989,213 — 989,213 1,982,284
Total income 1,052,037 35,758 1,087,795 2,271,106
Expenditure on:
Raising funds 4 6,971 — 6,971 21,260
Charitable activities
. Educational programmes 5 844,465 30,279 874,744 1,745,829
. Membership 5 159,500 10,093 169,593 362,280
. Projects 5 22,615 — 22,615 64,626
Transfer of operations 18 522,102 — 522,102 —
Total expenditure 1,555,654 40,372 1,596,026 2,193,995
Net (expenditure)/income for the year and net movement in funds 7 (503,617) (4,614) (508,231) 77,111
Fund balances brought forward
at 1 July 2019 506,890 4,614 511,504 434,393
Fund balances carried forward
at 30 June 2020 3,273 — 3,273 511,504
All of the charity’s activities derived from continuing operations during the above financial
period.
Statement of financial activities Year to 30 June 2019
Council for Advancement and Support of Education (Europe) 13
Notes
Unrestricted funds
£
Restricted funds
(note 14) £
2019 Total funds
£
Income from:
Donations 1 66,412 221,750 288,162
Investments 660 — 660
Charitable activities 2 1,982,284 — 1,982,284
Total income 2,049,356 221,750 2,271,106
Expenditure on:
Raising funds 4 21,260 — 21,260
Charitable activities
. Educational programmes 5 1,582,978 162,851 1,745,829
. Membership 5 307,995 54,285 362,280
. Projects 5 64,626 — 64,626
Total expenditure 1,976,859 217,136 2,193,995
Net income for the year 7 72,497 4,614 77,111
Net movement in funds 72,497 4,614 77,111
Fund balances brought forward
at 1 July 2018 434,393 — 434,393
Fund balances carried forward
at 30 June 2019 506,890 4,614 511,504
All of the charity’s activities derived from continuing operations during the above financial
period.
Balance sheet 30 June 2020
Council for Advancement and Support of Education (Europe) 14
Notes 2020
£ 2020
£ 2019
£ 2019
£
Fixed assets
Tangible assets 11 — 5,604
Current assets
Debtors 12 — 338,544
Cash at bank and in hand 776,849 846,649
776,849 1,185,193
Creditors: amounts falling due
within one year 13 (773,576) (679,293)
Net current assets 3,273 505,900
Total net assets 3,273 511,504
The funds of the charity:
Funds
Income funds
Restricted funds 14 — 4,614
Unrestricted funds
. General fund 3,273 506,890
Total funds 3,273 511,504
Approved by the trustees and signed on their behalf by:
Trustee
Approved by the trustees on: 14 October 2020
Statement of cash flows Year to 30 June 2020
Council for Advancement and Support of Education (Europe) 15
Notes
2020 £
2019 £
Cash flows from operating activities:
Net cash used in operating activities A (71,096) (241,351)
Cash flows from investing activities:
Investment income 1,296 660
1,296 660
Change in cash and cash equivalents in the year (69,800) (240,691)
Cash and cash equivalents at 1 July 2019 B 846,649 1,087,340
Cash and cash equivalents at 30 June 2020 B 776,849 846,649
Notes to the statement of cash flows for the year to 30 June 2020.
A Reconciliation of net movement in funds to net cash provided by operating activities
2020 £
2019 £
Net movement in funds (as per the statement of financial activities) (508,231) 77,111
Adjustments for:
Depreciation charge 3,102 7,056
Transfer of fixed assets 2,502 —
Investment income (1,296) (660)
Decrease (increase) in debtors 338,544 (140,690)
Increase (decrease) in creditors 94,283 (184,168)
Net cash used in operating activities (71,096) (241,351)
B Analysis of cash and cash equivalents
2020 £
2019 £
Cash at bank and in hand 352,990 354,992
Short term deposits (less than three months) 423,859 491,657
Total cash and cash equivalents 776,849 846,649
C Analysis of changes in net debt
At 1 July 2019
£
Cash flows
£
At 30 June 2020
£
Cash at bank and in hand 846,649 (69,800) 776,849
Total cash and cash equivalents 846,649 (69,800) 776,849
At 1 July 2018
£
Cash flows
£
At 30 June 2019
£
Cash at bank and in hand 1,087,340 (240,691) 846,649
Total cash and cash equivalents 1,087,340 (240,691) 846,649
Principal accounting policies 30 June 2020
Council for Advancement and Support of Education (Europe) 16
The principal accounting policies adopted, judgements and key sources of estimation
uncertainty in the preparation of the accounts are laid out below.
Basis of preparation
These accounts have been prepared for the year to 30 June 2020.
The accounts have been prepared under the historical cost convention with items
recognised at cost or transaction value unless otherwise stated in the relevant accounting
policies below or the notes to these accounts.
The accounts have been prepared in accordance with Accounting and Reporting by
Charities: Statement of Recommended Practice applicable to charities preparing their
accounts in accordance with the Financial Reporting Standard applicable in the United
Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102) issued October
2019, the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS
102) and the Charities Act 2011.
The charity constitutes a public benefit entity as defined by FRS 102.
The accounts are presented in sterling and are rounded to the nearest pound.
Critical accounting estimates and areas of judgement
Preparation of the accounts requires the trustees and management to make significant
judgements and estimates.
The items in the accounts where these judgements and estimates have been made include:
estimating the provision for bad and doubtful debts.
Assessment of going concern
The trustees have assessed whether the use of the going concern assumption is appropriate
in preparing these accounts. The trustees have made this assessment in respect to a period
of one year from the date of approval of these accounts.
The trustees of the charity have concluded that there are no material uncertainties related
to events or conditions that may cast significant doubt on the ability of the charity to continue
as a going concern. The trustees are of the opinion that the charity will have sufficient
resources to meet its liabilities as they fall due.
Income
Income is recognised in the period in which the charity is entitled to receipt and where the
amount can be measured with reasonable certainty.
Membership fee income
Membership fee income is received annually in advance and released to the statement of
financial activities over the period to which the membership relates.
Principal accounting policies 30 June 2020
Council for Advancement and Support of Education (Europe) 17
Expenditure and the basis of apportioning costs
Expenditure is included in the statement of financial activities when incurred and includes
irrecoverable VAT.
The costs of charitable activities comprise direct expenses incurred on the defined charitable
purposes of the charity and include direct staff costs attributable to the activity and an
allocation of certain shared support and governance costs.
Support costs have been allocated on the basis of time spent on each activity.
Governance costs include those incurred in the governance of the charity and its assets and
are primarily associated with constitutional and statutory requirements.
Tangible fixed assets
All assets costing more than £1,000 and with an expected useful life exceeding one year
are capitalised.
Depreciation is provided on all tangible fixed assets at rates calculated to write each asset
down to its estimated residual value evenly over its expected useful life, as follows:
Computer equipment - 25% on straight line basis
Office equipment - 20% on straight line basis
Furniture and fittings - 15% on straight line basis
Debtors
Debtors are recognised at their settlement amount, less any provision for non-recoverability.
Prepayments are valued at the amount prepaid. They have been discounted to the present
value of the future cash receipt where such discounting is material.
Cash at bank and in hand
Cash at bank and in hand represents such accounts and instruments that are available on
demand or have a maturity of less than three months from the date of acquisition.
Creditors and provisions
Creditors and provisions are recognised when there is an obligation at the balance sheet
date as a result of a past event, it is probable that a transfer of economic benefit will be
required in settlement, and the amount of the settlement can be estimated reliably. Creditors
and provisions are recognised at the amount the charity anticipates it will pay to settle the
debt. They have been discounted to the present value of the future cash payment where
such discounting is material.
Funds
The unrestricted general funds comprise those monies which may be used towards meeting
the charitable objectives of the charity at the discretion of the trustees.
The restricted funds are monies raised for, and their use restricted to, a specific purpose, or
donations subject to donor imposed conditions.
Principal accounting policies 30 June 2020
Council for Advancement and Support of Education (Europe) 18
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of
exchange ruling at the balance sheet date. Transactions in foreign currencies are translated
into sterling at the rate of exchange ruling at the date of the transaction. Exchange
differences are taken into account in arriving at the net movement in funds.
Leased assets
Rentals applicable to operating leases where substantially all of the benefits and risks of
ownership remain with the lessor are charged on a straight-line basis over the lease term.
Pension costs
The charity makes contributions on behalf of 15 employees to an employees’ group personal
pension scheme which are recognised in the statement of financial activities in the year in
which they are payable to the scheme.
The institution participates in Universities Superannuation Scheme. With effect from 1
October 2016, the scheme changed from a defined benefit only pension scheme to a hybrid
pension scheme, providing defined benefits (for all members), as well as defined
contribution benefits. The assets of the scheme are held in a separate trustee- administered
fund. Because of the mutual nature of the scheme, the assets are not attributed to individual
institutions and a scheme-wide contribution rate is set. The institution is therefore exposed
to actuarial risks associated with other institutions’ employees and is unable to identify its
share of the underlying assets and liabilities of the scheme on a consistent and reasonable
basis. As required by Section 28 of FRS 102 “Employee benefits”, the institution therefore
accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the
amount charged to the profit and loss account represents the contributions payable to the
scheme.
Following the transfer to CASE International LLC during the year, the liability due to
Universities Superannuation Scheme has been fully paid.
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 19
1 Donations and legacies
Unrestricted funds
£
Restricted funds
£
2020 Total funds
£
CASE (note 18) - Grant from connected charity
— 35,758 35,758
Graduate Trainee Scheme 58,000 — 58,000
Other donations 3,528 — 3,528
2020 Total funds 61,528 35,758 97,286
Unrestricted funds
£
Restricted funds
£
2019 Total funds
£
CASE (note 18) - Grant from connected charity
— 221,750 221,750
Graduate Trainee Scheme 61,195 — 61,195
Other donations 5,217 — 5,217
2019 Total funds 66,412 221,750 288,162
2 Charitable activities
Unrestricted funds
£
Restricted funds
£
2020 Total funds
£
Educational programmes (note 3) 639,698 — 639,698
Membership fees 225,722 — 225,722
Sponsorship of programmes 72,462 — 72,462
Recruitment advertising 30,929 — 30,929
Other income 20,402 — 20,402
2020 Total funds 989,213 — 989,213
Unrestricted funds £
Restricted funds £
2019 Total funds £
Educational programmes (note 3) 1,299,412 — 1,299,412
Membership fees 437,065 — 437,065
Sponsorship of programmes 129,001 — 129,001
Recruitment advertising 80,779 — 80,779
Other income 36,027 — 36,027
2019 Total funds 1,982,284 — 1,982,284
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 20
3 Educational programmes
Educational programmes in the year are made up as follows:
2020 Total funds £
2019 Total funds £
CASE (Europe) Annual Conference 581,843 665,224
Spring Institute in Educational Fundraising 7,200 154,616
Alumni Relations Institute — 46,124
Social Media Conference — 19,985
Study Tours — 50,089
Strategic Marketing Institute — 32,305
One Day Events — 21,159
Annual Regular Giving Conference 33,268 37,509
CASE on Campus — 6,000
Development Services Conference — 77,340
Legacies Forum — 11,942
Development for Deans and Academics — 13,394
Introduction to Fundraising and Alumni — 14,283
Working with Volunteers — 19,690
Strategic Fundraising for HE Leaders — 12,913
Stewardship and Donor Relations — 17,728
Nordic Summit — 61,692
Student Communications, Recruitment and Market Research Forum
2,115
17,087
Lowlands Conference — 9,801
Award entry fees 4,139 —
Other events income 11,133 10,531
Total 639,698 1,299,412
4 Raising funds
Unrestricted funds
£
Restricted funds
£
2020 Total funds
£
2020 Total funds: Marketing costs 6,971 — 6,971
Unrestricted funds £
Restricted funds £
2019 Total funds £
2019 Total funds: Marketing costs 21,260 — 21,260
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 21
5 Charitable activities expenditure
Unrestricted funds
£
Restricted funds
£
2020 Total funds
£
Educational programmes
Direct costs
. Staff costs (note 8) 125,249 — 125,249
. Staff travel 170 — 170
. Non-staff travel 8100 — 8100
. Catering costs 193,137 — 193,137
. Room hire 128,312 — 128,312
. Accommodation 32,916 — 32,916
. Exhibition and sponsorship 94,008 — 94,008
Allocated support costs (note 6) 262,574 30,279 292,853
Educational programmes total 844,465 30,279 874,744
Membership
Direct costs
. Staff costs (note 8) 67,992 — 67,992
. Other 3,018 — 3,018
Allocated support costs (note 6) 87,527 10,093 97,620
Membership total 158,537 10,093 168,630
Projects
Graduate Trainee Scheme
Direct costs
. Staff costs (note 8) 7,157 — 7,157
. Candidate selection 3,020 — 3,020
. Office expenses 3,571 — 3,571
. Travel and other expenses 9,300 — 9,300
23,049 — 23,049
Ross CASE Survey
Direct costs (433) — (433)
(433) — (433)
Projects total 22,615 — 22,615
2020 Total charitable activities 1,025,617 40,372 1,065,989
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 22
5 Charitable activities expenditure (continued)
Unrestricted funds
£
Restricted funds
£
2019 Total funds
£
Educational programmes
Direct costs
. Staff costs (note 8) 225,775 — 225,775
. Staff travel 23,007 — 23,007
. Non-staff travel 47,351 — 47,351
. Catering costs 220,454 — 220,454
. Room hire 291,038 — 291,038
. Accommodation 123,718 — 123,718
. Exhibition and sponsorship 144,206 — 144,206
Allocated support costs (note 6) 507,429 162,851 670,280
Educational programmes total 1,582,978 162,851 1,745,829
Membership
Direct costs
. Staff costs (note 8) 122,563 — 122,563
. Other 16,289 — 16,289
Allocated support costs (note 6) 169,143 54,285 223,428
Membership total 307,995 54,285 362,280
Projects
Graduate Trainee Scheme
Direct costs
. Staff costs (note 8) 12,901 — 12,901
. Candidate selection 4,464 — 4,464
. Consultancy 17,947 — 17,947
. Travel and other expenses 25,727 — 25,727
61,039 — 61,039
Ross CASE Survey
Direct costs 3,587 — 3,587
3,587 — 3,587
Projects total 64,626 — 64,626
2019 Total charitable activities 1,955,599 217,136 2,172,735
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 23
6 Analysis of support costs
Unrestricted funds
£
Restricted funds
£
2020 Total funds
£
Staff costs (note 8) 157,456 27,590 185,046
Other staff costs 33,454 — 33,454
Office costs 84,978 38 85,017
Legal and professional costs 15,314 — 15,314
Bank and credit card charges 8,342 — 8,342
Loss on foreign exchange 4,032 — 4,032
Payroll costs 1,134 — 1,134
Depreciation and other support costs 4,140 — 16,884
Global infrastructure cost sharing (note 18) 41,249 — 41,249
2020 Total funds 350,099 40,372 390,471
Unrestricted funds £
Restricted funds £
2019 Total funds £
Staff costs (note 8) 289,375 151,831 441,206
Other staff costs 34,049 34,912 68,961
Office costs 167,767 2,343 170,110
Legal and professional costs 20,803 — 20,803
Bank and credit card charges 26,486 — 26,486
Gain on foreign exchange 6,995 — 6,995
Payroll costs 9,024 — 9,024
Depreciation and other support costs 38,063 28,048 66,111
Global infrastructure cost sharing (note 18) 84,012 — 84,012
2019 Total funds 676,574 217,134 893,708
Support costs are allocated between educational programmes and membership activities on
the basis of time spent on each activity as follows:
Unrestricted funds
£
Restricted funds
£
2020
£
Educational programmes 262,574 30,279 292,853
Membership 87,527 10,093 97,620
2020 Total funds 350,101 40,372 390,473
Unrestricted funds £
Restricted funds £
2019 £
Educational programmes 507,429 162,851 670,280
Membership 169,143 54,285 223,428
2019 Total funds 676,572 217,136 893,708
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 24
7 Net income for the year
This is stated after charging:
Unrestricted funds £
Restricted funds £
2020 Total funds £
Staff costs (note 8) 357,854 27,590 385,444
Operating lease rentals 36,783 — 36,783
Auditor’s remuneration
. Audit services 10,020 — 10,020
. Other services 2,400 — 2,400
Depreciation 3,102 — 3,102
Unrestricted funds
£
Restricted funds
£
2019 Total funds
£
Staff costs (note 8) 650,614 151,831 802,445
Operating lease rentals 61,992 — 61,992
Auditor’s remuneration
. Audit services 9,255 — 9,255
. Other services 2,000 — 2,000
Depreciation 7,056 — 7,056
8 Employees
Staff costs during the year were as follows:
Unrestricted funds
£
Restricted funds
£
2020 Total funds
£
Wages and salaries 270,174 23,173 293,887
Social security costs 26,187 2,878 29,035
Pension costs 61,494 1,028 62,522
2020 Total funds 357,854 27,590 385,444
Unrestricted funds £
Restricted funds £
2019 Total funds £
Wages and salaries 544,780 120,860 665,640
Social security costs 57,548 15,339 72,887
Pension costs 48,286 15,632 63,918
2019 Total funds 650,614 151,831 802,445
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 25
8 Employees (continued)
Staff costs by function are as follows: 2020
£ 2019 £
Educational programmes 125,249 225,775
Membership 67,992 122,563
Projects 7,157 12,901
Support 185,046 441,206
285,444 802,445
The total remuneration (including taxable benefits and employer's pension contributions) of
the key management personnel, as defined in the trustees’ report, for the year was £89,119
(2019 - £271,034).
The average number of employees during the six month period before transfer (2019: year),
analysed by function, was as follows:
2020 Number
2019 Number
Educational programmes – organisation and administration 13 13
Membership 3 3
16 16
The number of employees who earned £60,000 per annum or more (including taxable benefits
but excluding employer pension contributions) during the year was as follows:
2020 Number
2019 Number
£70,001 - £80,000 — 2
9 Trustees’ remuneration
None of the trustees received any remuneration in respect of their services as trustees during
the year (2019 – none). As disclosed in note 19, two trustees received payment for
consultancy services during the previous year.
During the year out of pocket travelling expenses amounting to £1,326 (2019 – £2,681) were
reimbursed to seven (2019 – six) trustees.
10 Taxation
Council for Advancement and Support of Education (Europe) is a registered charity and
therefore is not liable to income tax or corporation tax on income derived from its charitable
activities, as it falls within the various exemptions available to registered charities.
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 26
11 Tangible fixed assets
Computer equipment
£
Office equipment
£
Furniture and fittings
£
Total
£
Cost
At 1 July 2019 22,126 30,403 68,591 121,120
Disposals — (28,843) (1,434) (30,277)
Transfer of operations (note 18) (22,126) (1,560) (67,157) (90,843)
At 30 June 2020 — — — —
Depreciation
At 1 July 2019 22,126 27,519 65,871 115,516
Charge for year — 2,286 816 3,102
Disposals — (28,843) (1,434) (30,277)
Transfer of operations (note 18) (22,126) (962) (65,253) (88,341)
At 30 June 2020 — — — —
Net book values
At 30 June 2020 — — — —
At 30 June 2019 — 2,884 2,720 5,604
12 Debtors
2020 £
2019 £
Other debtors — 12,283
Trade debtors — 22,974
Amount due from connected charity (note 18) — 20,218
Prepayments — 283,069
— 338,544
13 Creditors: amounts falling due within one year 2020
£ 2019 £
Trade creditors — 17,644
Other taxation and social security — 14,061
Accruals and deferred income — 633,259
Other creditors — 14,329
Amount due to connected company (note 18) 773,576 —
773,576 679,293
Deferred income at 30 June 2019 included membership fees of £218,157 which related to the
2019/20 year and educational programme income received in advance of £342,947.
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 27
14 Restricted funds At
1 July 2019
£
Income £
Expenditure
£
Transfers
£
At 30 June 2020
£
CASE - International operations
4,614
35,758 (40,372) — —
4,614 35,758 (40,372) — —
At
1 July 2018 £
Income
£
Expenditure £
Transfers £
At 30 June 2019 £
CASE - International operations
—
221,750 (217,136) — 4,614
— 221,750 (217,136) — 4,614
CASE - International operations
The restricted fund represented funds from CASE to cover the costs of international
programmes.
15 Commitments under operating leases
At 30 June 2020 the charity had total future minimum payments under non-cancellable
operating leases payable as follows:
Land and buildings
2020 £
2019 £
Within two to five years — —
Less than one year — 32,424
Total commitments — 32,424
16 Indemnity insurance
The charity has purchased indemnity insurance to protect it from loss arising from any
wrongful or dishonest act of any trustee or employee and to indemnify any trustee or employee
against the consequence of any wrongful act on their part. The total cover provided by such
insurance is £1,000,000 (2019 - £1,000,000) and the total premium paid in respect of such
insurance for the year was £2,111 (2019 - £2,338).
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 28
17 Pension commitments – Universities Superannuation Scheme
CASE (Europe) participated in the Universities Superannuation Scheme (USS), a defined
benefit scheme which is contracted out of the State Second Pension (S2P). The assets of the
scheme are held in a separate fund administered by the trustee, Universities Superannuation
Scheme Limited. CASE (Europe) is unable to identify its share of the underlying assets and
liabilities of the scheme on a consistent and reasonable basis and therefore, as required by
FRS 102 Section 28 “Employee Benefits”, accounts for the scheme as if it were a defined
contribution scheme, the cost recognised within the statement of financial activities being
equal to the contributions payable to the scheme for the year.
Following the transfer of operations to CASE International LLC, the liability owed to USS was
settled by CASE and no further liabilities are due from CASE (Europe) to USS. The following
disclosures therefore relate to the year ended 30 June 2019.
The disclosures below represent the position from the overall scheme’s accounts.
The latest actuarial valuation of the scheme was at 31 March 2017. The assumptions which
have the most significant effect on the result of the valuation are those relating to the rate of
return on investments (i.e., the valuation rate of interest) and the rates of increase in salary
and pensions. In relation to the past service liabilities the financial assumptions were derived
from market yields prevailing at the valuation date. It was assumed that the valuation rate of
interest would be Consumer Price Index (CPI) - 0.53% in year 1, decreasing linearly to CPI -
1.32% in years 1-10, CPI +2.56% p.a. in year 11 reducing linearly to CPI +1.7% p.a. beyond
that point; salary increases would be based on CPI + 2.0%; and pensions would increase by
in line with CPI each year.
Standard S1NA YoB mortality tables were used, with female members’ mortality rated down
by one year and no age rating adjustment made with respect to male members’ mortality.
Use of mortality tables reasonably reflects the actual USS experience but also provides an
element of conservatism to allow for further improvements in mortality rates. The assumed
life expectations on retirement at age 65 are:
Males (females) currently aged 65: 24.2 (26.3) years
Males (females) currently aged 45: 26.2 (28.6) years
At the valuation date, the value of notional assets of the scheme was £60.0 billion and the
value of the technical provisions was £67.5 billion indicating a deficit of £7.5 billion. The assets
therefore were sufficient to cover 89% of the benefits which had accrued to Members after
allowing for expected future increase in earnings.
As a consequence of the 2014 valuation, the Trustee determined, after a consultation period,
a recovery plan to pay off the shortfall by 31 March 2031. This is being achieved partly by
increasing employer contributions to the USS to 18% of pensionable salaries, from 16%,
effective from 1 April 2016.
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 29
17 Pension commitments – Universities Superannuation Scheme (continued)
Surpluses or deficits which arise at future valuations may impact on the company’s future
contribution commitment. An additional factor which could impact the funding level of the
scheme is that with effect from 16 March 2006, USS positioned itself as a “last man standing”
scheme so that in the event of the insolvency of any of the participating employers in the USS,
the amount of any pension funding shortfall (which cannot otherwise be recovered) in respect
of that employer will be spread across the remaining participant employers and reflected in
the next actuarial valuation of the scheme.
The next formal triennial actuarial valuation will be as at 31 March 2020. The contribution rate
will be reviewed as part of each valuation.
18 Connected charities
CASE (Europe) was founded by and has in the past received substantial financial support
from Council for Advancement and Support of Education (“CASE”) at 1307 New York Avenue
NW, Suite 1000, Washington DC 20005-4701. CASE was incorporated as a non-profit
corporation under the laws of the District of Columbia, USA. The President of CASE is, ex-
officio, an Honorary Trustee of CASE (Europe).
During the year ended 30 June 2020 a grant of £35,758 (2019 - £136,385) was transferred
from CASE to CASE (Europe) to cover the costs of the CASE activity delivered from London.
During the year ended 30 June 2020, CASE (Europe) paid fees based on adjusted income to
CASE in relation to the charity’s share of global infrastructure costs. The fees paid were
£41,249 (2019 - £85,365).
At 30 June 2020, £25,867 was owed by CASE to CASE (Europe) (2019 – owed to CASE by
CASE (Europe) £20,218).
During the year ended 30 June 2020, CASE (Europe) transferred its operations, assets,
liabilities and reserves to CASE International LLC, resulting in a donation of £522,102.
At 30 June 2020, £747,709 was owed by CASE (Europe) to CASE International LLC (2019 -
£nil).
The donation of £522,102 represented the balance sheet of CASE (Europe) as at 31
December 2019, which was as follows:
31 December 2019 £
Fixed assets Tangible assets 2,502
Current assets
Debtors 174,261
Cash at bank and in hand 827,977
1,002,237
Creditors: amounts falling due within one year (452,637)
Net current assets 549,600
Total net assets 552,102
The funds of the charity:
Unrestricted funds 552,102
Total funds 552,102
Notes to the accounts 30 June 2020
Council for Advancement and Support of Education (Europe) 30
19 Related party transactions
A number of the trustees of CASE (Europe) hold key management positions within
universities. During the year CASE (Europe) undertook transactions with these organisations
in the normal course of business. All of the transactions were carried out at arm’s length.
Fees totalling £nil (2019: £2,500) were payable during the year to Colin McCallum, a trustee,
for consultancy services. Fees totalling £nil were also paid to Michael Lavery, a trustee, for
consultancy services during the year (2019 - £51,163). These transactions were carried out
at arm’s length and permitted under the charity’s trust deed.
Buzzacott LLP is a limited liability partnership and is registered in England and Wales with registered number OC329687 A list of LLP members is available at our registered office address as above. Registered to carry out audit work by the Institute of Chartered Accountants in England and Wales.
17 September 2020
Our ref C0931/KP/CLB
Dear Trustees
Post-Audit Report – Year ended 30 June 2020
The purpose of this letter is to bring to your attention the findings from our recent audit of the financial statements of Council for Advancement & Support of Education (Europe) for the year ended 30 June 2020. We appreciate that you will already be aware of some of the matters contained in this letter. However, in accordance with International Standards on Auditing (UK) (ISAs) we are communicating them to you formally.
1. Purpose of the audit
Our work during the audit was performed with a view to expressing an opinion on the financial statements for the year ended 30 June 2020 and other matters required by legislation.
Our audit work included consideration of the internal controls relevant to the preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of your system of internal control.
The matters being reported are limited to those that were identified during the audit and that we conclude are of sufficient importance to merit being reported to those charged with governance.
The Trustees Council for Advancement & Support of Education (Europe) 3rd Floor Paxton House 30 Artillery Lane London E1 7LS
The Trustees Council for Advancement & Support of Education (Europe)
Page 2 of 10 17 September 2020
2. Audit progress
We are pleased to report that the audit of the financial statements, from our perspective, went well and in accordance with the agreed timetable.
We would like to take this opportunity to thank all those with whom we dealt during the audit for their assistance and co-operation, in particular Cindy Rees.
3. Annual report and financial statements’ format
The financial statements have been prepared, as last year, in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice (Charities SORP FRS 102).
Other than additional disclosures surrounding the transfer of operations to CASE International LLC, there are no significant changes to the format of the financial statements this year.
4. Auditor’s report
We do not propose any modifications to our audit report and we intend to issue an unqualified opinion in our auditor’s report. The wording of our auditor’s report is unchanged from last year.
5. Adjustments made during the audit
Other than presentational amendments which have no impact on the reported results for the year, there were no adjustments made to the figures presented to us for audit.
6. Unadjusted misstatements
We are pleased to report that we found only clearly trivial misstatements during our audit for the period.
7. Accounting policies, accounting estimates and disclosures
The accounting policies used in preparing the financial statements are unchanged from the previous year.
Our work included a review of the adequacy of disclosures in the financial statements and consideration of the appropriateness of the accounting policies and estimation techniques adopted by the charity. We found the disclosed accounting policies, significant accounting estimates and the overall disclosure and presentation to be appropriate for the charity.
The Trustees Council for Advancement & Support of Education (Europe)
Page 3 of 10 17 September 2020
8. Letter of representation
We enclose the final draft letter of representation which we will request management and the trustees to approve and sign at the same time as the financial statements.
9. Segregation of duties
We recognise that the number of your accounting staff makes a complete system of internal control impracticable and that Leigh Cleghorn and Diane Young exercise close personal supervision, which we consider reasonable in the circumstances. We have taken this into account in conducting our audit and in preparing this letter.
10. Prior year’s post audit-report
There were no issues raised last year which required follow-up in the current year.
11. Significant deficiencies in the accounting and internal control systems
Our work during the audit included an examination of some of the charity’s transactions, procedures and controls with a view to expressing an opinion on the financial statements for the year ended 30 June 2020.
We found no significant deficiencies in the accounting and internal control systems during our audit.
12. Professional ethics
In accordance with our profession’s ethical guidance and further to our letter to you dated 24 August 2020 confirming audit planning arrangements there are no further matters to bring to your attention in relation to Integrity, Objectivity and Independence.
13. Current developments
We have attached a summary of recent and ongoing developments in the charity sector in appendix 1 to this report.
14. Updates, insights and seminars
As part of our commitment to the charity sector, during the year the Charity Team issues occasional Updates and Insights on matters of relevance to the sector and also holds a number of seminars free of charge throughout the year. We would be delighted to welcome representatives of your charity to our seminars or to add trustees and management to our email distribution lists if this would be welcome.
The Trustees Council for Advancement & Support of Education (Europe)
Page 4 of 10 17 September 2020
Conclusion
This letter has been prepared for your private use only. It has been prepared on the understanding that it will not be shared with any third party without our prior written consent and we can therefore assume no responsibility to any other party. The advice contained herein is based on the information you have provided and UK law and judicial and administrative interpretation as of the date of this report. Should the facts provided to us be incorrect or incomplete or should they change, our advice may be inappropriate. Buzzacott LLP accepts no liability for losses arising from changes in UK law, interpretation or practice or in public policy that are first published after the date of this report.
If you require any further information or assistance, we shall be very pleased to help you.
Yours faithfully
The Trustees Council for Advancement & Support of Education (Europe)
Page 5 of 10 17 September 2020
Appendix 1 – Sector developments
Coronavirus
Updates relating to the ongoing Coronavirus pandemic can be found on our website at: https://www.buzzacott.co.uk/news/responding-to-the-impact-of-covid-19
Trustees’ Annual Report and Accounts
Charities SORP second edition
A new Charities SORP was published in October 2019 incorporating the update bulletins that had previously been issued separately in February 2016 and in October 2018. The full second edition of the SORP can be found at: http://charitiessorp.org/media/647945/charities-sorp-frs102-2019a.pdf
Annual report and impact reporting
Charity Finance has unveiled a best practice template on how best to compile an annual report which focuses on the impact a charity has on its beneficiaries. The template is split into four key sections:
1. Purpose and impact: An explanation of why the charity is relevant in 2020 is considered more important than the history of the charity with emphasis on how the charity gathers evidence of outcomes.
2. Values and ways of working: A description of how the charity operates and reaches the targeted beneficiaries, including a policy on remuneration and how it engages with various stakeholders.
3. Operating model and risks: Information on the processes in place and how the charity uses volunteers, works with partners and raises funds.
4. Governance and decision-making: This section should take into account how trustees provide oversight over the charity’s day-to-day operations.
An example of the template is available at: https://www.civilsociety.co.uk/uploads/assets/8533e1e4-3a68-494b-a99d1e80a4cfbd10/Illustration-report-by-Kate-Sayer.pdf
Policy and Governance
Transparent and accountable governance
In June 2020, the Charity Commission issued an alert for charities emphasising the importance of transparent and accountable governance. This alert was sent to trustees of large charities with complex governance and management structures that are in a service-providing industry (e.g. health, education, disaster relief etc).
The Trustees Council for Advancement & Support of Education (Europe)
Page 6 of 10 17 September 2020
The alert was prompted following a Charity Commission investigation into the Royal National Institute of Blind People (RNIB) which found that some beneficiaries were being placed at undue risk of harm through what it describes as systematic weaknesses at senior levels including having a culture of dismissiveness toward Ofsted or CQC criticism, inadequate staff training and an overreliance on agency staff leading to poor recruitment practices. The full report can be read at: https://www.gov.uk/government/news/rnib-failures-led-to-some-children-in-the-charitys-care-being-harmed-says-watchdog
As a result of the RNIB investigation, the regulator has provided an alert to remind trustees, senior executives and staff of such charities on the best practice approach to good governance.
Trustees
The role of a trustee is to ensure robust oversight of the charity’s operations and structure. Trustees may choose to delegate significant decision-making authority to senior executives and communication needs to be regular and effective. Trustees should also undertake an annual review of the charity’s approach to identifying, prioritising and managing risks and establish a timely process for making and handling any complaints against the charity. The alert also suggests that clear lines of responsibility and reporting between all governance and management committees need to be made and that each body has the right mix of skills and is guided by appropriate terms of reference.
Executives
An executive should have effective oversight of the charity’s operations and have the confidence to fully disclose any incident to trustees, regulators or agencies on a timely basis. The Charity Commission encourages regular reporting to the Board on significant incidents which should also include a summary of how such incidents are managed and mitigated. Executives also need to provide assurance to trustees on the quality and safety of the charity’s activities and need to have confidence in third party suppliers if used on how they carry out their work.
Staff
Service-providing charities make use of front-line staff or volunteers who serve and interact directly with beneficiaries, who are often vulnerable, and it is important that safeguarding responsibilities remain a top governance priority. The alert highlights the following points for charities to consider:
• Establishing safeguarding policies and procedures that all stakeholders follow;
• Ensuring there are skilled, trained staff/volunteers/trustees to protect people;
• Appointing a senior safeguarding lead to help co-ordinate the charity’s safeguarding strategy through engagement both internally and with other agencies and partners; and
• Reviewing the charity’s safeguarding arrangements on a regular basis.
The Trustees Council for Advancement & Support of Education (Europe)
Page 7 of 10 17 September 2020
The Charity Commission’s full alert can be read at: https://www.gov.uk/government/publications/alert-for-charities-the-importance-of-transparent-and-accountable-governance/alert-for-charities-the-importance-of-transparent-and-accountable-governance
Charity Commission review
The Charity Commission has undertaken a thematic review of complaints they have received about charities between April and June 2019. During this time, the regulator received 600 reports about charities which fell below the threshold of direct regulatory action where the charity had taken appropriate action already or because they were not serious enough to warrant action. However, an in-depth analysis of 200 of these complaints was carried out and four key themes were identified:
1. Personal connection: People making complaints are usually people who are known to the charity (e.g. a supporter, volunteer, trustee or beneficiary);
2. Accountability: Ensuring stakeholder involvement in decisions a charity makes is important as well as making sure a charity’s annual accounts tell a complete and accurate story of the year;
3. Public trust: Transparent decision making and the management of any conflicts of interest is vital and trustees must always act in their charity’s best interests; and
4. Tone at the top: How policies and procedures are implemented and monitored are as important as the policy itself and how a charity responds to unexpected situations will ultimately result in how successful a charity is.
The Charity Commission concludes that charities should lead the way in taking public expectations seriously which gives the sector a better chance of flourishing through the retention of the personal, emotive investments people make in them.
The full review can be read at: https://www.gov.uk/government/publications/every-complaint-matters-a-thematic-review-of-complaints-about-charities/every-complaint-matters-a-thematic-review-of-complaints-about-charities
External scrutiny benchmark
In conjunction with charities and the accounting profession, the Charity Commission has published an ‘External Scrutiny Benchmark’ with the aim to help charities meet a minimum standard in their annual accounts. This enables the public to read the accounts with confidence as it will act as a mechanism to check that a minimum standard of work has been undertaken by a charity’s auditors or independent examiners. The benchmark helps to facilitate the regulatory case work carried out by the Charity Commission by identifying the external scrutinies that fail to meet the benchmark.
The Trustees Council for Advancement & Support of Education (Europe)
Page 8 of 10 17 September 2020
The benchmark comprises 15 basic criteria including whether there is a trustees’ report, the inclusion of a correctly worded auditor’s report (or independent examiner’s report) and checks the accounts add up correctly and whether the accounts are internally consistent (e.g. closing funds on the statement of financial activities being the same as the balance sheet).
The benchmark also refers to a number of commonly missed disclosures with the requirement for the statement of financial activities to incorporate an income and expenditure account and details of related party transactions.
Trustees should use this benchmark tool to perform simple checks on the accounts before approval as this will help ease the Charity Commission’s concerns of accounts being inaccurate, out-of-date and not providing the information required to be held accountable to donors, beneficiaries and the general public.
It is important to note though, that although the benchmark covers the vast majority of charities, it does not cover Common Investment Funds, Common Deposit Funds or educational or housing charities that do not prepare their accounts in accordance with the Charities SORP.
A link to the benchmark can be found at: https://www.gov.uk/government/publications/a-benchmark-for-the-external-scrutiny-of-charity-accounts/a-benchmark-for-the-external-scrutiny-of-charity-accounts
Charity Governance Code consultation
A consultation on refreshing the Charity Governance Code was launched by its “steering group”, made up of ACEVO, the Association of Chairs, the Chartered Governance Institute, NCVO, SCC and WCVA, in November 2019 and came to an end on 28 February 2020. The focus was to seek ways on how to improve awareness and take-up of the Code as it had been estimated that under 50% of charities were using the Code’s recommendations in their annual reports.
However, the response to the consultation, published in August 2020, was more positive as from 800 responses, it was found that 90% are either adopting the Code in full or are working toward it and 84% are satisfied with the Code and its principles. The main area of improvement identified by the steering group is to make the Code more relevant for smaller charities but overall, the steering group will take a “refresh only” approach to the Code this year, with the potential for a more radical refresh in three years’ time.
Full details of the responses to the consultation can be found at: https://www.charitygovernancecode.org/en/about-the-code-1/refreshing-the-charity-governance-code-1.pdf
The Trustees Council for Advancement & Support of Education (Europe)
Page 9 of 10 17 September 2020
Whistleblowing
The Charity Commission has created a dedicated advice line for charity whistleblowers to help people report any concerns to the regulator. The phone line is operated by the charity ‘Protect’ which has a team of specialists for when charity workers or volunteers have serious concerns about their charity. This team can be reached at 08000 557214 and each case will be handled by a specific individual who will be on hand with any follow-up discussions as necessary. The Charity Commission has also confirmed that whistleblowing disclosures have more than doubled since 2017; the regulator received 185 disclosures in the year ended 31 March 2019 compared to 101 in the previous year and only 88 in the year ended 31 March 2017 with the most reported issues being safeguarding, governance and fraud/money laundering.
Fraud and cybercrime
The Government has published a comprehensive guide on how charities can protect themselves against fraud and cybercrime. The guide covers all aspects of fraud and cybercrime with useful links to relevant organisations that combat fraud in charities.
The guidance determines eight overarching principles for tackling fraud:
1. Fraud will always happen, even at charities;
2. Threats are constantly changing so it is important for charities to be able to adapt defences quickly;
3. Prevention mechanisms are better than cure;
4. Fraudsters exploit the trust and goodwill of a charity;
5. It is good to discover fraud as this is the first step in fighting fraud;
6. Report all fraud on a timely basis to Action Fraud, the relevant regulator or police;
7. Responses to fraud should be proportionate to the charity’s size, activities and fraud risks;
8. Everybody involved in the charity should help fight fraud, especially trustees.
The fraud section of the guidance covers a broad range of issues, including how fraud should be reported if a charity is a victim of fraud, how a charity should protect itself from fraud and example policies on anti-fraud, whistleblowing and investigations.
As an ever evolving threat to all organisations, the guidance on cybercrime covers an array of topics. Of particular significance, the National Cyber Security Centre (NCSC) has produced an electronic learning training package covering top tips for staff that covers four key areas: defence against phishing, passwords, device security and incident reporting. The NCSC has also designed a toolkit specifically for boards to encourage wider discussions throughout the charity which contains information on how to plan a response to a cyber-incident. In the event of a cybercrime attack, Action Fraud, the national policing lead for fraud, has launched a 24/7 live cyber-attack helpline which is connected with the National Fraud Intelligence Bureau (NFIB).
The Trustees Council for Advancement & Support of Education (Europe)
Page 10 of 10 17 September 2020
The detailed guidance can be found at: https://www.gov.uk/guidance/protect-your-charity-from-fraud
Compliance
National insurance gaps
Individuals are retiring to find that they do not qualify for a full State Pension due to gaps in their National Insurance record. HMRC stress that it is down to the taxpayer to monitor their National Insurance record and top up any shortfalls before it is too late. Further information can be found at: https://www.buzzacott.co.uk/insights/many-unaware-of-national-insurance-gaps-impacting-pensions
Workplace etiquette
The Equality and Human Rights Commission has recently released guidance on how employers are able to take action to protect working relationships and the culture of organisations. A seven step plan has been recommended:
1. Develop an effective anti-harassment policy
2. Staff engagement
3. Assess and mitigate risks in the workplace
4. Reporting systems
5. Training
6. Handling complaints
7. Sexual harassment and third parties
More information can be found at: https://www.buzzacott.co.uk/insights/identify-tackle-and-prevent-inappropriate-banter-in-the-workplace
Tax
VAT – Digital advertising
HMRC previously ruled that most digital advertising should be subject to VAT. However, following a tireless two year campaign by the Charity Tax Group, HMRC has accepted that VAT is not due on the majority of internet search browsing advertisements when supplied to charities. This is welcome news for charities who were receiving costs passed on by advertising agencies, which amounted to large amounts of irrecoverable VAT.
Further information can be read at: https://www.buzzacott.co.uk/uploads/200720-digital-advertising-hmrc-response.pdf