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Financial statements Chartered Institute of Public Relations Auditors' report 7 Cash flow statement 10 Corporate governance statement 4 - 5 Notes to the financial statements 11 - 17 Administrative and reference information 1 - 3 Contents Chartered Institute of Public Relations Page
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Chartered Institute of Public Relations Financial statements for the year ended 31 December 2009
Chartered Institute of Public Relations Contents
Page
Administrative and reference information 1 - 3
Corporate governance statement 4 - 5
Financial review 6
Auditors' report 7
Revenue account 8
Balance sheet 9
Cash flow statement 10
Notes to the financial statements 11 - 17
Page 1
Chartered Institute of Public Relations Administrative and reference information 2009 Officers: President Kevin Taylor President Elect Jay O’Connor Treasurer Sally Sykes Immediate Past President Elisabeth Lewis-Jones Director General Colin Farrington Deputy Director General Ann Mealor 2009 Council: Miti Ampoma Emma Leech Matt Appleby Elisabeth Lewis‐Jones Carol Arthur Jason MacKenzie Andrew Bartlett Scott McKenzie Kevin Bentley Elizabeth Male Tom Bowden‐Green Pamela Mounter Caraline Brown Paul Mylrea John Brown Jay O'Connor Rob Brown Sarah Pinch Sarah Burton Deborah Powton Debbie Byers Peter Prowse Maire Campbell Jacqueline Purcell Caroline Cecil David Sanders David Crundwell Lisa Shaddick Jane Cumming Alan Smith Gill Dandy Katherine Stedman Paul Davison Jenifer Stirton Helen Dickinson Barbara Stopher Mark Douglas Sally Sykes Jonathan French Kevin Taylor Pat Gaudin Imelda Topping Anne Gregory Gillian Waddell Sarah Hall Adrian Wheeler Anthony Henderson Ashley Wilcox Keith Johnston Justin Wilkes Sally Keith Sue Wolstenholme Edmund King Paul Wynne Quentin Langley
The following were members of Council at the start of 2009 and were replaced when their term of office expired.
Alex Aiken Carol Matthews Elisabeth Anderson Conall McDevitt Mike Browne Justin McKeown Bronwen Eames John De Mierre Wynford Emanuel Melissa Page Marie Ennis Mani Pillai Stephen Jolly Lee Smith Mike Kean Robin Treacher Dennis Kelly Garry White Robert Khan Susan Wilcock Caroline Kinsey Ipek Yigit Deborah Leah Lionel Zetter
Page 2
Chartered Institute of Public Relations Administrative and Reference information (continued) Standing committees and representatives as at 31 December 2009 Business Services and Revenues Jenifer Stirton Chair Rob Brown Helen Dickinson Mark Douglas Jonathan French Sally Sykes Membership Lisa Shaddick Chair John Brown Vice Chair Matt Appleby Carol Arthur Tom Bowden-Green David Crundwell David Sanders Imelda Topping Education and Professional Standards Paul Mylrea Chair Sue Wolstenholme Co-Opted Vice Chair Miti Ampoma Debbie Byers Gill Dandy Pat Gaudin Emma Leech Sarah Pinch Jacqueline Purcell Barbara Stopher Professional Practices Committee Adrian Wheeler Chair Jane Cumming Anne Gregory Rhodri Harries Co-Opted Jane Howard Co-Opted Edmund King Quentin Langley Barry Leggetter Co-Opted Pamela Mounter Deborah Powton Peter Prowse Alan Smith Claire Walker Co-Opted Paul Wynne Disciplinary Committee Jon Aarons June Beedham Ken Cook Alan Dadd Chris Genasi Janet Hildreth Rosemary Inge Elisabeth Lewis-Jones Lord Laird of Artigarvan Harvey Thomas Sam Warnock Ian Wright Lionel Zetter
Page 3
Chartered Institute of Public Relations Administrative and Reference information (continued) Finance Committee Sally Sykes Chair/Treasurer Kevin Taylor President Jay O’Connor President Elect Elisabeth Lewis-Jones Immediate Past President John Brown Remuneration Committee Alison Clarke Chair Elisabeth Lewis-Jones Past President Jay O’Connor John Brown Sally Sykes Kevin Taylor Executive Board (throughout 2009): Kevin Taylor President Elisabeth Lewis-Jones Past President Sally Sykes Treasurer Jay O'Connor President Elect John Brown David Crundwell Jonathan French Sarah Hall Paul Mylrea Lisa Shaddick Jenifer Stirton Adrian Wheeler Sue Wolstenholme Director General Colin Farrington Acting Director General Ann Mealor Solicitors Camerons Solicitors LLP 70 Wimpole Street, London W1G 8AX Auditor Chantrey Vellacott DFK LLP Russell Square House 10/12 Russell Square London WC1B 5LF
Bankers Nat West Bank Plc 134 Aldersgate Street London, EC1A 4LD Institute CIPR Public Relations Centre Address 52-53 Russell Square London, WC1B 4HP Website www.cipr.co.uk Notice of Annual General Meeting The Annual General Meeting of the Chartered Institute of Public Relations will take place at 6pm on Tuesday 15 June 2010 at CIPR Public Relations Centre, 52-53 Russell Square, London WC1B 4HP. All CIPR members are invited. An Agenda will be placed on the CIPR website by 28 May 2010
Page 4
Ann Mealor, Acting Director General 26 April 2010
Chartered Institute of Public Relations Corporate governance statement Corporate Governance
The Council
The Council is the governing body of the CIPR. Ultimately all acts undertaken by the officers and staff are in the name of,
and with the authority of, the Council.
The Council meets three to four times a year and focuses on overall strategy and co-ordination. Day to day responsibility
is delegated to the CIPR Executive Board and Standing Committees.
The Executive Board
The day-to-day operations of the Chartered Institute are supervised by the Board. This is chaired by the President and
consists of the elected officers (Immediate Past President; President; President-elect and Treasurer); the Director-
General, Deputy Director General and other elected members of the Council, including the Chairs of the four Standing
Committees. The Board works with the Director General to ensure the co-ordination of Institute business. Standing
Committees may refer matters to the Board for guidance and direction. The Board meets approximately eight times a year.
Standing Committees
There were six ‘Standing Committees’ in 2009: Membership; Professional Practices; Education and Professional
Standards; Business Services and Revenue; Finance; Remuneration. A Disciplinary Committee which does not include
members of the Council meets as necessary to consider references to it by the Professional Practices Committee. A
Qualifications Awarding Body, which includes some Council members, is separately constituted.
Committee roles are as follows:
Membership: admission policy; recruitment; member benefits and services.
Professional Practices: policy and ethical issues affecting Institute members; complaints against members.
Education and Professional Standards: education and training policy and implementation.
Business Services & Revenue: overseeing the development of trading functions including conferences and
publications.
Finance: financial and budgetary policy.
Remuneration: salary and terms and conditions of senior staff.
Financial responsibilities of the Council
The Council is responsible for preparing the financial statements in accordance with applicable law and United Kingdom
Generally Accepted Accounting Practice
Bye-law 38 requires the Council to prepare financial statements for each financial year which give a true and fair view of
the state of the affairs of the Institute and of the surplus or deficit of the Institute for that year. In preparing these the
Council is required to:
- select suitable accounting policies and apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Institute will
continue in business.
The Council is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the
financial position of the Institute. It is also responsible for safeguarding the assets of the Institute and hence for taking
reasonable steps for the prevention and detection of fraud and other irregularities.
Page 5
Chartered Institute of Public Relations Corporate governance statement (continued)
Financial responsibilities of the Council (continued)
The Council must, in determining how amounts are presented within items in the revenue account and balance sheet,
have regard to the substance of the reported transaction or arrangement, in accordance with generally accepted
accounting principles and practice.
The Council is responsible for the maintenance and integrity of the corporate and financial information included on the
Institute’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial
statements and other information included in annual reports may differ from legislation in other jurisdictions.
Page 6
Chartered Institute of Public Relations Financial review
2009 was a difficult year for the Institute. We suffered exceptional property-related relocation costs and our trading saw a downturn in the autumn. However, our membership subscriptions held up well as did our Excellence Awards programme, both showing growth on the previous year.
Our loss – of £580k – is substantial. However, it is less than the originally anticipated £700k due to swift action to cut costs. Reductions were made to staff salaries and pensions, and activities that were not a priority were cut. The results of these actions will be seen in 2010 in lower costs and further benefit should follow through to 2011. I am grateful for the efforts of everyone who helped us achieve these savings while we continued to invest in and maintain our services to members.
At the heart of this loss are the property costs around our move from St James’s Square to Russell Square. The circumstances around our move, including Serious Fraud Office investigations into our previous landlord who gave us notice to quit, have been widely reported. However, the move left us with £308k of exceptional costs and we faced a further £205k of rent payments due to overlapping occupancy. This is why our ‘premises expenses’ are higher than last year. Although we enjoyed a 14 month rent free period on Russell Square, our accounts need to show our future rental obligations. This is why the entry for ‘creditors’ is higher than last year.
On the positive side, as a result of the rent free period our cash flow remained strong throughout 2009 and continues to remain so. We now have, in Russell Square, a building that is accessible, fit for purpose and will allow us to expand our training and qualifications programmes when the market is right. The newly established CIPR Centre for Learning, which delivers our qualifications out of Russell Square, has proved to be very successful and is becoming increasingly popular with students. We are determined to make our building work hard for us and are already sharing some of our space with the British Promotion and Merchandise Association.
The other reason for our loss was a downturn in key activity areas such as qualifications and training due to the recession. However, as we enter this new year, early indications are that trading conditions have improved.
We have our 2010-2012 Strategic Plan in place, costs are being closely monitored and we are reviewing the structure of our organisation in order to ensure it best fits the needs of our members and the profession. We are streamlining processes and ensuring efficient operations are in order to deliver our 2010 plan to budget. Membership remains buoyant. Our goal is to produce a surplus for this year in order to build up our reserves.
Colin Farrington, Director General left the CIPR after 11 years at the end of March 2010. I was appointed Acting Director General by the Board in June 2009. I would like to thank my CIPR colleagues and Executive Board members for their commitment and support in reshaping the Institute to face the challenges ahead.
Ann Mealor FCIPR
Acting Director General
26 April 2010
Page 7
Chartered Institute of Public Relations Independent auditor’s report to the members of Chartered Institute of Public Relations
We have audited the financial statements of Chartered Institute of Public Relations (Institute) for the year ended 31 December 2009 which comprise the revenue account, the statement of total recognised gains and losses, the balance sheet, cash flow statement and the related notes. These financial statements have been prepared in accordance with the accounting policies set out therein. This report is made solely to the Institute's members, as a body. Our audit work has been undertaken so that we might state to the Institute's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Institute and the Institute's members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of the council and the auditor As described in the statement of financial responsibilities of the Council the Institute's Council is responsible for the preparation of the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and have been properly prepared in accordance with appropriate accounting standards. We also report to you if, in our opinion, the Institute has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information regarding the Council’s remuneration and transactions with the Institute is not disclosed. We read other information contained in the Financial Statements and consider whether it is consistent with the audited financial statements. This other information comprises only the corporate governance statement and the financial review. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information. Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Council in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Institute’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.
Opinion In our opinion the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of Institute’s affairs as at 31 December 2009 and of its deficit for the year ended 31 December 2009. Chantrey Vellacott DFK LLP Chartered Accountants and Statutory Auditor London 26 April 2010
Chartered Institute of Public Relations
The notes on pages 11 to 17 form an integral part of these financial statements.
Page 8
Revenue account for the year ended 31 December 2009
2009 2008 As restated
Notes £ £
Income 2 4,432,366 4,775,494
Direct costs (1,501,372) (1,849,087) _________ _________ Gross surplus 2 2,930,994 2,926,407
Operational costs (221,850) (292,913)
Administrative expenses 5 (3,094,385) (2,826,841)
Exceptional costs 3 (307,849) -
Other operating income 113,349 123,455 _________ _________ Operating deficit 3 (579,741) (69,892)
Other interest receivable and
similar income 2,489 34,502
Interest payable on finance leases (2,709) - _ ______ _______ Deficit on ordinary activities before taxation (579,961) (35,390)
Tax on deficit on ordinary activities 6 - 414 _ ______ _______ Retained deficit for the year (579,961) (34,976) __ _____ _______ Statement of Recognised Gains and Losses
for the year ended 31 December 2009 2009 2008 As restated £ £
Loss for the financial year (579,961) (34,976)
________ _______
Total losses for the year (579,961) (34,976) _______
Prior year adjustment 14 78,089 _ ______ Total losses recognised since last annual report (501,872) __ _____
Chartered Institute of Public Relations
The notes on pages 11 to 17 form an integral part of these financial statements.
Page 9
Balance sheet as at 31 December 2009 2009 2008 As restated Notes £ £ £ £
Fixed assets
Tangible assets 7 293,928 193,924
Current assets
Stocks 18,642 5,978
Debtors 8 479,423 797,336
Cash at bank and in hand 528,265 309,688 ___ _ ___ ___ ____
1,026,330 1,113,002
Creditors: amounts falling
due within one year 10 (820,411) (630,824) _ ______ ___ ____
Net current assets 205,919 482,178
Debtors: amounts falling
due after more than one year 9 232,500 232,500
__ _____ _______
Total assets less current
liabilities 732,347 908,602
Creditors: amounts falling
due after more than one year 11 (376,331) -
Deferred income 12 (521,941) (494,566)
_ ______ _______
Net liabilities (165,925) 414,036 _ ______ _______
Reserves 13
Revenue account (431,990) 167,695 National, regional and sectoral groups balances 266,065 246,341 _ ______ _______
(165,925) 414,036 _ ______ _______
The financial statements were approved and authorised for issue by the Council and were signed on its behalf on 26 April
2010.
Kevin Taylor Sally Sykes
President 2009 Treasurer 2009
Chartered Institute of Public Relations
Page 10
Cash flow statement for the year ended 31 December 2009 2009 2008 £ £ £ £ Net cash inflow/(outflow) from operating activities 336,628 (155,236) Returns on investments and servicing of finance: Interest received 2,489 34,502 Interest paid – interest element of finance lease payments (2,709) - (220) 34,502 Taxation - (4,250) Capital expenditure and financial investment: Purchase of tangible assets (102,828) (97,287) Financing Capital element of finance lease rental payments (15,003) -
Increase/(decrease) in cash for the year 218,577 (222,271) Reconciliation of net cash flow to movement in net funds: Increase/(decrease) in cash for the year 218,597 (222,271) Cash inflow from increase in lease financing 15,003 - New finance leases (97,295) -
Movement in net funds 136,305 (222,271) Net funds at 1 January 2009 309,668 531,939
Net funds at 31 December 2009 445,973 309,668 Analysis of Net Funds: 31 Dec 08 cash flow other non cash 31 Dec 09 movement £ £ £ £ Cash at bank and in hand 309,688 218,577 - 528,265 Finance leases - 15,003 (97,295) (82,292)
Net Funds 309,688 233,580 (97,295) 445,973 Reconciliation of operating loss to net cash inflow from operating activities: Loss on ordinary activities before taxation (579,961) (35,390) Interest payable 2,709 - Interest receivable (2,489) (34,502) Depreciation charge 94,645 57,166 Loss on disposal of fixed assets 5,474 - Increase/(decrease) in stocks (12,664) (1,930) Decrease/(increase) in debtors 317,913 (324,403) Increase in creditors 483,626 159,348 Decrease in provisions - (28,960) Increase in deferred income 27,375 53,435
Net cash inflow/(outflow) from operating activities 336,628 (155,236)
Chartered Institute of Public Relations Notes to the financial statements for the year ended 31 December 2009
Page 11
1. Accounting policies
1.1. Accounting convention
The financial statements are prepared under the historical cost convention and in accordance with applicable law
and UK accounting standards (United Kingdom Generally Accepted Accounting Practice).
1.2. Going concern
Notwithstanding the loss for the year and the net liabilities disclosed in the balance sheet, the budget and cashflow
prepared for the forthcoming year have been prepared on a basis which shows that the Institute will meet all its
liabilities as they fall due. In addition, the Institute’s working capital requirements are funded by way of subscription
advances which are not expected to be repaid in the normal course of business. On this basis, the Council
consider it appropriate to prepare the financial statements on a going concern basis.
1.3. National, regional and sectoral groups
The Institute makes grants to national, regional and sectoral groups to fund their activities. These grants are
eliminated on consolidation. The revenue account therefore recognises the revenues generated and expenditure
incurred by these groups during the year from their activities, and the balance sheet recognises any residual net
assets, for example cash balances, debtors less liabilities at the year end.
1.4. Income recognition
Membership subscription income is recognised in the year to which it relates. Student education and qualification
income is recorded in the year courses start. Income from seminars and events is recognised upon the timing of
the event and all other income is recognised upon the provision of the goods or services excluding VAT.
Subscription, education, events and other income received in advance is carried forward as deferred income and
included within creditors at the year end. Amounts received in advance for subscriptions are carried forward as
deferred income, which have now been disclosed separately from creditors on the face of the balance sheet.
1.5. Tangible fixed assets and depreciation
Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected
useful life, as follows:
Leasehold improvements - Straight line over the life of the lease
Computers - 25% straight line Computer software - 33 ⅓ % straight line
Furniture and equipment - 10%-25% straight line
1.6. Leasing
Rentals payable under operating leases are charged against income on a straight line basis over the lease term
taking into account the rent free period at the commencement of the lease. The rent free period equalisation
creditor will be released over five years on the basis of the difference between rent charged and payments made.
Assets held under finance leases are capitalised and disclosed under tangible fixed assets at their fair value. The
capital element of the future payments is treated as a liability and the interest charged to the revenue account on a
sum of digits basis.
1.7. Stocks
Stock comprising publications in print or production are valued at the lower of cost and net realisable value after
making due allowance for obsolete and slow moving items.
Chartered Institute of Public Relations Notes to the financial statements for the year ended 31 December 2009
Page 12
1.8. Retirement benefits
The Institute operates a defined contribution pension scheme available to all qualifying employees. The
contributions payable in providing benefits are charged in the revenue account in the year to which they relate.
1.9. Taxation
The Institute’s transactions with its members are not subject to tax. Other transactions are taxable on a basis
agreed with HM Revenue & Customs.
2. Income and gross surplus analysis 2009 2008 As restated Gross Gross Income surplus Income surplus £ £ £ £ Membership subscriptions 1,487,392 1,487,392 1,423,776 1,423,776 Education and qualification 1,713,374 985,993 1,856,810 1,080,613 Conferences, seminars and awards events 1,114,018 413,076 1,356,568 322,952 Other 117,582 44,533 138,340 99,066 _________ _________ _________ _________
Total 4,432,366 2,930,994 4,775,494 2,926,407 _________ _________ _________ _________
3. Operating deficit 2009 2008 £ £
Operating deficit is stated after charging:
Depreciation on owned fixed assets 87,616 57,166
Depreciation on assets held under finance leases 6,849 -
Loss on disposal of tangible fixed assets 5,474 -
Auditor’s remuneration 17,250 16,250
Operating lease rentals: property 564,781 302,100
Finance charges on finance leases 2,709 -
Exceptional costs – dilapidations 252,863 -
– other including removal costs 54,986 - _________ _________
4. Staff costs 2009 2008
£ £
Salaries and wages 1,456,096 1,465,983
National insurance 149,364 150,157
Pension contributions 150,427 133,705 _________ _________ 1,755,887 1,749,845 _________ _________
2009 2008
No. No.
Average number of staff 40 40 ____ ____
The Institute operates a defined contribution pension scheme in respect of the staff. The pension charge
represents contributions due from the Institute. The scheme and its assets are held and managed by independent
managers.
Chartered Institute of Public Relations Notes to the financial statements for the year ended 31 December 2009
Page 13
5. Administration costs 2009 2008
£ £
Staff costs 1,755,887 1,710,311
Staff insurance, training and recruitment costs 79,458 134,225
Premises 789,111 508,457
Office costs 114,910 123,292
Other costs 258,105 293,390
Depreciation 91,440 57,166
Loss on sale of fixed assets 5,474 - _________ _________
3,094,385 2,826,841 _________ _________
6. Tax on surplus on ordinary activities
(a) Analysis of the tax charge for the period 2009 2008
£ £
Current tax
UK corporation tax - -
Adjustments in respect of prior periods - (414) _______ _______
- (414) _______ _______
(b) Factors affecting the tax charge for the period
The tax assessed for the period is lower than the standard rate of corporation tax in the UK (21%) (2008: 20.75%).
The differences are explained below:
Loss on ordinary activities before tax (579,961) (35,390) _______ _______
Tax on profit on ordinary activities at standard CT rate of 21% (2008: 20.75%) (121,792) (7,343)
Effects of:
Net income not taxable/(net expenses not deductible) 33,849 (6,979)
Capital allowances less than depreciation 5,577 4,602
Unrelieved tax losses 82,366 9,720
Adjustments in respect of previous periods - (414) _______ _______
Current tax charge for the period (note 6(a)) - (414) _______ _______
Taxation is provided on the Institute's income from investment and surpluses arising from non-member sources.
Chartered Institute of Public Relations Notes to the financial statements for the year ended 31 December 2009
Page 14
7. Tangible fixed assets Leasehold Computer Furniture &
Improvements Computers Software equipment Total
£ £ £ £ £
Cost
At 1 January 2009 91,194 334,880 8,745 161,723 596,542
Additions 92,622 4,928 - 102,523 200,123
Disposals (30,532) - - (7,296) (37,828) _______ _______ _______ _______ _______
At 31 December 2009 153,284 339,808 8,745 257,000 758,837 _______ _______ _______ _______ _______
Depreciation
At 1 January 2009 21,199 290,755 - 90,664 402,618
On disposals (30,532) - - (1,822) (32,354)
Charge for the year 39,990 24,200 2,915 27,540 94,645 _______ _______ _______ _______ _______
At 31 December 2009 30,657 314,955 2,915 116,382 464,909 _______ _______ _______ _______ _______
Net book values
At 31 December 2009 122,627 24,853 5,830 140,618 293,928 _______ _______ _______ _______ _______
At 31 December 2008 69,995 44,125 8,745 71,059 193,924 _______ _______ _______ _______ _______
Finance Leases
Included within the net book value of £293,928 is £70,885 (2008: £nil) relating to assets held under finance lease.
The depreciation in respect of such assets amounted to £6,849 (2008; £nil).
8. Debtors: amounts falling due within one year 2009 2008
£ £
Trade debtors 242,592 400,161
Other debtors 171,797 230,077
Prepayments and accrued income 61,499 166,557
Pension contributions 3,535 541 _______ _______
479,423 797,336 _______ _______
9. Debtors: amounts falling after more than one year 2009 2008
£ £
Prepayment: rent deposit 232,500 232,500 _______ _______
Long term debtors are shown separately from current assets due to their material nature and the fact that they will not be repaid within one year. This relates to the rent deposit on the Russell Square offices 10 year lease.
Chartered Institute of Public Relations Notes to the financial statements for the year ended 31 December 2009
Page 15
10. Creditors: amounts falling due 2009 2008
within one year As restated
£ £
Trade creditors 295,640 263,998
Corporation tax - -
Other taxes and social security costs 56,480 47,246
Other creditors 169,302 6,440
Accruals and deferred income 236,528 313,140
Rent free period equalisation 31,000 -
Obligations under finance leases (note 17) 31,461 - _______ _______
820,411 630,824 _______ _______
2009 2008
£ £
11. Creditors: amounts falling due
after one year
Obligations under finance leases (note 17) 50,831 -
Rent free period equalisation 325,500 - _______ _______
376,331 - _______ _______ Obligations under finance leases are secured on the assets to which they relate. 12. Deferred Income
Deferred income represents amounts billed in advance in respect of membership subscriptions. As these sums are not expected to be repaid in the normal course of business, they have been shown separately on the face of the balance sheet. In previous years these amounts were included in creditors falling due within one year. The comparative figures have been re-stated.
13. Reserves
Institute National, Regional
& Sectoral groups Total
£ £ £
At 1 January 2009 as previously reported 89,606 246,341 335,947
Prior year adjustment (note 14) 78,089 - 78,089 _______ ___________ ______________
At 1 January 2009 as restated 167,695 246,341 414,036
(Deficit)/Surplus for the year (599,685) 19,724 (579,961)
_______ _______ _______
At 31 December 2009 (431,990) 266,065 (165,925) _______ _______ _______
Chartered Institute of Public Relations Notes to the financial statements for the year ended 31 December 2009
Page 16
14. Prior year adjustment
Total 2008 Prior years
£ £
£
Decrease in deferred subscription income 78,089 8,646 69,443
Net increase in reported profits
_______
78,089
_______
_______
8,646
_______
_______
69,443
_______
The prior year adjustment arises due to a correction of the release of deferred subscription income paid in installments which had been incorrectly allocated in prior years. The comparative figures have been restated to reflect this change.
15. Financial commitments
At 31 December 2009 the Institute had annual commitments under non-cancellable operating leases as follows:
2009 2008
£ £
Leases of land and buildings
Expiry date:
Within one year - 171,510
More than five years 465,000 - _______ _______
With effect from 5 January 2009 the Institute signed a 10 year lease ending on 4 January 2019 on its offices in Russell Square at an annual rent of £465,000 with a rent free period of 14 months. The first rent review date is due on 5 January 2014.
16. Related party transactions (1) Under the Royal Charter, Council members are not entitled to receive any fees related to their work as
Council members. Council members qualified as approved trainers or acting as examiners may also receive fees on the same basis and subject to the same conditions as other CIPR members when carrying out these activities on the CIPR’s behalf. These fees amounted in aggregate to £7,676 (2008: £7,720).
(2) Payments were also made to Ashley Public Relations a business owned by Sue Wolstenholme, Council
member and Chair of the Qualifications Awarding Body, amounting to £16,265 (2008: £44,444). These were fees and expenses primarily for specialised work relating to qualifications overseas. No amounts were outstanding at the year end. The role of a Council or Board member is a voluntary position and no fees are paid related to this work.
(3) The Council of the Institute approves the appointment of the trustees of the Chartered Institute Public
Relations Benevolent Fund (Iprovision). The trustees of Iprovision have full responsibility for the decision making and operations of the Charity and accordingly the Council of CIPR do not exercise dominant influence over the affairs of Iprovision. Accordingly the Council of CIPR do not consider Iprovision to be a subsidiary undertaking and therefore have not prepared consolidated accounts.
Copies of the accounts of Iprovision may be obtained by contacting CIPR Public Relations Centre 52-53
Russell Square, London WC1B 4HP.
Chartered Institute of Public Relations Notes to the financial statements for the year ended 31 December 2009
Page 17
17. Commitments under finance leases Future commitments under finance leases are as follows:
2009 2008
£
£
Amounts payable within one year 35,424 -
Amounts payable between two and five years 53,136 -
_______
88,560
_______ -
Less: interest and finance charges relating to future periods (6,268) -
_______ 82,292
_______
_______ -
_______
Finance leases are analysed as follows:
Current obligations 31,461 -
Non-current obligations 50,831 -
_______
82,292
_______
_______ -
_______
Chartered Institute of Public Relations
Page 18
The following pages do not form part of the published accounts and are for management use only.
Chartered Institute of Public Relations
Page 19
Detailed revenue account for the year ended 31 December 2009
2009 2008
£ £ £ £
Income
Membership subscriptions 1,487,392 1,423,776
Conferences and seminars 347,485 548,133
Education 1,145,524 1,177,103
Qualifications 567,850 679,707
Awards events 766,533 808,435
Publications 17,133 24,394
Website 100,449 113,946 _________ _________
4,432,366 4,775,494
Direct costs
Conferences and seminars 282,879 475,658
Education 573,644 501,981
Qualifications 153,737 274,216
Awards events 418,063 557,958
Publications 7,011 10,676
Website 66,038 28,598 _________ _________
1,501,372 1,849,087 _________ _________
(1,501,372) (1,849,087) _________ _________
Gross surplus 2,930,994 2,926,407
Operational costs 221,850 292,913
Administrative expenses 3,094,385 2,826,841
Exceptional costs 307,849 - _________ _________
(3,624,084) (3,119,754) _________ _________
(693,090) (193,347)
Other operating income
Rent receivable (472) 14,131
Other income 113,821 109,324 _______ _______
113,349 123,455 _______ _______
Operating deficit (579,741) (69,892)
Other income and expenses
Interest receivable
Bank deposit interest 2,489 34,502
Interest payable
Leasing finance charges (2,709) - _______ _______
Net deficit on ordinary activities for the year (579,961) (35,390) _______ _______
Chartered Institute of Public Relations
Page 20
Operational costs and administrative expenses for the year ended 31 December 2009
2009 2008
Operational costs £ £
Journal costs 55,591 73,971
Journal adverts and sales (2,233) (6,868)
Library and research 6,232 7,501
Membership development and services 75,469 89,478
Grants to groups 1,884 7,276
International representation 13,094 30,087
Subscriptions 4,219 4,913
Policy development 970 308
Marketing 9,177 4,054
National, regional and sectoral groups general expenditure 57,447 82,193 _______ _______
221,850 292,913 _______ _______
Administrative expenses
Wages and salaries 1,456,096 1,426,449
Employer's NI contributions 149,364 150,157
Staff money purchase pension costs 150,427 133,705
Group life and health insurance 69,626 74,368
Staff training and recruitment 9,832 59,857
Premises 789,112 508,457
Insurance 20,181 9,153
Printing and stationery 22,569 27,550
Postage 13,130 19,272
Telephone, fax and internet 22,105 16,683
Computer costs 36,925 50,634
Travelling 44,887 45,492
AGM, elections and annual report 11,173 17,985
Legal and professional 18,170 34,188
Accountancy 33,670 63,185
Audit 17,250 16,250
Bank charges 40,884 45,409
Disciplinary procedures 16,238 119
General expenses 32,102 34,021
Unrecovered VAT 43,730 36,741
Amortisation on short leasehold 39,990 7,466
Depreciation on computers 22,311 33,559
Depreciation on furniture & equipment 29,139 16,141
Losses on disposal of tangible assets 5,474 - __________ __________
3,094,385 2,826,841 __________ __________
Exceptional costs
Dilapidations 252,863 -
Bad Debt – deposit write off 15,000 -
Legal fees – deposit recovery 19,185 -
Premises – removal costs 20,801 - __________ __________
307,849 - __________ __________