Page 1

Trustees’ Report and Accounts

For the year ended 31 December 2009

SBA The Solicitors’ Charity is the re-branded name for the Solicitors Benevolent Association Limited

Solicitors Benevolent Association Limited A charitable company limited by guarantee registered in England & Wales number 6601907 Registered Charity number 1124512

Registered Office 1 Jaggard Way London SW12 8SG


Contents 01 Chairman’s Report 02 Trustees’ Report 04 Trustees’ Responsibilities 05 Supporting the SBA 06 Auditor’s Report to the Members 08 Statement of Financial Activities 09 Balance Sheet 10 Notes to the Accounts 20 Officers, Trustees and Area Representatives


01

Annual Accounts 2009

Chairman’s Report

In the 152 years since it was founded the SBA has seen countless revolutions of the economic cycle, but the downturn which began in 2008 must be one of the most serious to have affected the British Economy-and necessarily the legal profession-in that time. Although the capital value of our investments was also seriously affected by the recession-recovering significantly in 2009 as the Stock Market itself recovered -and like most charities we have felt the effect of the recession on supporters’ finances, we have been able to maintain the flexible approach to assistance we pride ourselves in providing for those in need who apply to us. The retirement during the year of our Chief Executive Adrian Rees has meant that more than ever we have relied on the experienced Head Office Team of Angi Birts, Annette Brotherton, Sarah Collier, John Platt, Anne Rawlinson and Katie Wylie. Since I joined the board over twenty-five years ago, the number of trustees (then over eighty, as I recall) has reduced significantly, but the number of area representatives has risen correspondingly. Like most of the trustees, area representatives provide support and assistance to beneficiaries throughout England and Wales. The contact maintained with beneficiaries on a personal basis is a vital part of our activities and I should like to thank them all for the time and effort they expend. During the year we were sorry to record the retirement of recent past chairmen of the SBA, Martin de Bertodano and Colin Lee, and of John Griffin, a director and strong supporter of the SBA for a number of years. In an age of increasingly rapid change in all areas, we cannot afford to stand still. Our hardworking Membership and Marketing Committee is constantly reviewing the effectiveness and the development of marketing and publicity and is presently embarked on a long term strategic review designed to raise our profile to attract both more supporters and more potential beneficiaries. Finally I should like to pay tribute to my predecessor Sally Williams who chaired the board of trustees for the year to June 2009, at a particularly demanding time, and has remained-principally through the Membership and Marketing Committee-very heavily involved in the SBA’s affairs, and for their personal support my Vice-Chair David Wyatt, the Treasurer Michael John and all the office staff. Tim Cuthbertson Chairman 10 March 2010


02

Annual Accounts 2009

Trustees’ Report

Structure The Solicitors Benevolent Association Limited (SBA) is a charitable company limited by guarantee, which was incorporated on 23 May 2008, and registered as a charity on 16 June 2008. The company was established under a Memorandum and Articles of Association, its objects and powers being set out in the Memorandum, and its governing document being the Articles. Membership of the charitable company is open to any solicitor or former solicitor who is approved by the Directors. Members are entitled to attend General Meetings, and in the event of the company being dissolved, members would each be required to pay up to £10 towards the liabilities and the costs of dissolution. All Directors must be members. Vice Patron Clive Anderson

have served for the whole period. Rosalind Bax, Sara Chandler, Dominic Mills, Maurice Spector and Robert Urquhart retire by rotation at the forthcoming AGM. David Biddle, David Bishop, Tim Cuthbertson, Malcolm Farrer–Brown, David Field, Michael Gillman, John Scott, Michael Sheffield and Robin Shepherd also retire by rotation at the forthcoming AGM and, being eligible, offer themselves for re–election.

The Trustee Board meets ten times a year to make and review policy and to consider applications for assistance. Three sub-committees have been established to oversee certain areas of the SBA’s operations, these are the Investments Committee, the Marketing and Membership Committee, and the Management Committee. Day to day management The activities of the charitable company were previously and administration of the SBA and the execution of the Board’s policies is delegated to the staff, who carried out by the Solicitors Benevolent Association, operate within annual budgets and plans approved an unincorporated charity founded in 1858. On 1 by the Board. January 2009 the activities of the unincorporated charity, together with its entire assets and liabilities The Trustees have conducted a review of the major amounting to £13.3m, were transferred to the new risks to which the SBA is exposed. A Risk Register charitable company. A Uniting Direction under S96(6) has been established and is reviewed regularly by the of the Charities Act 1993 was issued by the Charity Trustees to ensure that it takes account of all current Commission on 17 March 2009, by which the factors and to ensure that the necessary controls to unincorporated charity should be treated as forming a part of the charitable company for the purposes of Part minimise risk are in place. The Trustees are satisfied that the major risks to which the Charity is exposed II (registration) and Part VI (accounting) of the Charities have been identified and reviewed and that systems Act 1993. and procedures are in place to manage those risks. The charitable company commenced operations on Objectives and Activities 1 January 2009. The transfer of net assets from the The objects of the SBA as set out in the governing unincorporated charity are shown as an Exceptional Item in the income section of the Statement of Financial document are to provide relief and assistance for Activities. There are no Funds brought forward, and the persons in need who are or have been admitted to the Roll of Solicitors for England and Wales, or who Notes to the Accounts show the transfers of assets are or have been married to or are or have been the and liabilities rather than brought forward figures at civil partner of Solicitors so admitted, or who are or 1 January 2009. All of the comparative figures for have been dependants of Solicitors so admitted. 2008 within this Report and Accounts are the figures recorded by the unincorporated charity. Relief and assistance is wholly financial and is provided by way of grant or loan. Whether an individual is “in Governance need” is decided by reference to net income guidelines Under the SBA’s Articles the Directors are known as decided annually by the Trustees who nevertheless use Trustees. As charity trustees they have control of the their discretion and provide help in other cases even charitable company and its property and funds, and where these guidelines may be exceeded. The number are responsible for its governance. The first Trustees of people assisted has remained fairly constant at are the same as those of the unincorporated charity. Subsequently, the Trustees are elected by the members around 300 annually but it is expected that applications for assistance will rise as a result of current economic at the Annual General Meeting. The Trustees may co– conditions. opt members to fill casual vacancies, but a co–opted trustee holds office only until the next AGM and can then be eligible for re-election. One half of the Trustees An important activity has been the raising of awareness of the SBA amongst potential beneficiaries, and must retire at each AGM and may be re-appointed. amongst others who can identify those in need When Trustees are elected they are provided with and direct them toward the SBA. comprehensive information, which outlines their responsibilities and details how the Association A significant source of income is the subscription operates. All Trustees are solicitors or retired solicitors and donation income received annually from individual and so the need for training is limited but provided Solicitors and also Solicitors’ firms on behalf of their when specifically requested. partners and staff. Another important activity is to maintain and increase the subscriber numbers With the exception of Colin Lee and John Griffin who both retired on 28 April 2009, and Martin De Bertodano The main sources of income are subscriptions and who retired at the AGM on 16 September 2009, the donations, conditional donations, and investment Trustees who have served during the year are shown on page 20. With the exception of David Field who was income. Maintaining and increasing the inflow of such funds is essential to the achievement of the appointed on 15 April 2009 and Michael Gillman who SBA’s objectives. was appointed on 18 June 2009, all of the Trustees


03

Annual Accounts 2009

Public Benefit The objects of the SBA are to provide relief and assistance to Solicitors, their spouses and partners, and their dependants, the only restriction being that the Solicitor must have been admitted to the Roll of Solicitors for England and Wales. The SBA advertises extensively each year in national and local publications available to the profession to ensure the widest circulation of the availability of assistance, and a current priority is to take appropriate actions to raise awareness of the SBA amongst potential beneficiaries, and amongst others who can identify those in need and direct them toward the SBA. The Trustees have referred to the guidance in the Charity Commission’s general guidance on public benefit when reviewing the SBA’s aims and objectives and in planning future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives they have set.

The investment objectives of the SBA are to achieve a balanced return in terms of capital growth and income from a portfolio of investments with a medium risk profile. The Trustees believe it prudent to hold reserves, which enable the SBA to maintain the current levels of grant and loan making and be ready to meet an expected increase in requests for assistance. Approximately 30% are free reserves available for use as unrestricted funds and needed for operational purposes, particularly as a cushion against operating deficits and adverse stock market fluctuations. The Trustees consider that the level of free reserves should ideally be maintained at an amount equivalent to four years’ grant and loan making. This level reduced to only two and a half years at 31 December 2008, but with the benefit of investment gains has now increased to 3.6 years.

Future Plans Key Objectives are to: —Raise awareness of the SBA amongst potential Volunteers beneficiaries At present there are 28 Trustees and 86 Area —Increase subscriber numbers Representatives, all of whom are either practising —Maintain and increase the level of voluntary or retired solicitors, who act as SBA representatives income in their areas, visit beneficiaries, help process their applications and make recommendations to the Board. —Obtain a balanced return on investments from There is always a need to increase the number of these capital growth and income volunteers so as to be able promptly to address the Statement as to disclosure of information needs of people turning to the SBA for help. to the Auditors In so far as the Trustees are aware Achievements and performance —There is no relevant audit information of which The main achievements during the year can be seen the charity’s auditor is unaware, and from the following performance indicators (2008 in —The Trustees have taken all steps that they ought brackets): to have taken to make themselves aware of any —Grants and loans were made to 315 (282) relevant audit information and to establish that beneficiaries the auditor is aware of that information. — Grants included £144,000 (£142,200 educational grants made to 47 (43) student beneficiaries Auditors —Help was given to 6 (8) individuals in nursing homes A resolution to re-appoint Baker Tilly UK Audit LLP —Grants made totalled £835,257 (£1,028,092) and as auditors of the company is to be proposed at the loans advanced £337,698 (£506,629) forthcoming annual general meeting. —Loans repaid to the SBA by beneficiaries totalled £200,623 (£158,805) Annual General Meeting —New beneficiaries totalled 80 (74) Notice is hereby given that the Annual General —Enquiries from potential beneficiaries averaged Meeting will be held in the Old Court Room, The 19 per month (15) Honourable Society of Lincoln’s Inn, London WC2A —The operational deficit in 2008 of £10,462 was 3TL on Wednesday 9th June 2010 at 12 noon for the changed to a surplus of £267,071 purpose of receiving the Report of the Trustees on the —The aggregate number of Trustees and Area proceedings of the SBA and the audited accounts Representative increased to 114 (113) for 2009, of electing Trustees, re-appointing Auditors, —Investment portfolio increased by net investment and of conducting such other business, if any, as the gains of £1.2m (reduced by losses of £3.0m) Articles of Association allow. Financial Review This report has been prepared in accordance with Total income for the year amounted to £1,480,466 the Statement of Recommended Practice: Accounting (£1,395,866) the main contributions coming from: and Reporting by Charities (Issued in March 2005) —Subscriptions and Donations and in accordance with the provisions applicable to £211,943–14% (£240,838–17%) the small companies regime. —Conditional Donations £557,463–38% (£570,351–41%) Approved by the Board of Trustees on 10 March 2010 —Investment Income and signed on its behalf by £429,957–29% (£452,554–32%) and —Legacies T.P. Cuthbertson £192,694–13% (£38,573–3%) Chairman Total expenditure for the year amounted to £1,213,395 (£1,406,328) which included expenditure on: —Charitable Activities £1,022,614–84% (£1,243,292–88%) and —Generating voluntary income £158,040–13% (£148,758–11%) The operating surplus before investment gains was £267,071 (deficit £10,462). Profits on investments amounted to £1,191,809 (losses £3,006,221) which when added to the operating surplus and the funds transferred from the unincorporated charity, brought the total net assets to £14,742,603 (£13,283,723). The principal net assets are the Investment Portfolio £10,683,454 (£9,037,847) and the Secured Loans to beneficiaries £3,482,012 (£3,339,258).


04

Annual Accounts 2009

Trustees’ responsibilities in respect of the preparation of the accounts

The Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the Accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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.

Company law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charitable company and of its incoming resources and application of resources, including its income and expenditure, 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 Charities SORP; —Make judgements and estimates that are reasonable and prudent; —State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements, and —Prepare the accounts on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for the preparation of the Annual Report and Accounts. Paragraph 25 of the SORP recommends that both documents are approved by the Trustees as a body, in accordance with their usual procedure (for example, at a quorate Trustees’ meeting).

The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Julie and her daughter SBA beneficiaries


05

Annual Accounts 2009

Supporting the SBA

Many firms pay an annual subscription on behalf of Donations were gratefully received from their partners and employed Solicitors, or contribute the following Law Societies: donations which included the following substantial payments in 2009: £ Allen & Overy Linklaters Clifford Chance Slaughter and May DLA Piper

8,000 8,000 5,000 5,000 5,000

Donations were also received from: The HM Hubbard Will Trust The Pritt & Corlett Funds Legal Charities Garden Party City of London Solicitors Company Christopher Reeves Charitable Trust

00 5,5

43,177

9,2 00

1,000

19,4 56

Bedfordshire Berks Bucks & Oxon Bournemouth & District Incorporated Bridgend District Cardiff & District Chester & North Wales Incorporated Chichester & District Devon & Somerset Dorset Eastbourne Hampshire Incorporated Hastings Hereford Brecon & Radnorshire Hertfordshire Lincolnshire Manchester Middlesex Newcastle upon Tyne Norfolk & Norwich Northamptonshire Nottinghamshire Shropshire Southend–on–Sea & District Suffolk & North Essex Warrington Warwickshire West Cumberland West Essex West London Wolverhampton Worthing Total

£ 1,000 500 500 200 100 100 1,000 1,750 500 1,250 2,000 250 40 1,500 485 244 700 160 2,000 250 250 250 750 604 700 874 1,000 250 500 73 650 20,430


06

Annual Accounts 2009

Independent Auditor’s Report to the members of the Solicitors Benevolent Association Limited (limited by guarantee)

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 This report is made solely to the charitable company’s includes examination, on a test basis, of evidence members, as a body, in accordance with Chapter 3 relevant to the amounts and disclosures in the of Part 16 of the Companies Act 2006. Our audit work accounts. It also includes an assessment of the has been undertaken so that we might state to the significant estimates and judgments made by the charitable company’s members those matters we are trustees in the preparation of the accounts, and of required to state to them in an auditor’s report and for whether the accounting policies are appropriate to no other purpose. To the fullest extent permitted by law, the charitable company’s circumstances, consistently we do not accept or assume responsibility to anyone applied and adequately disclosed. other than the charitable company and the charitable company’s members as a body, for our audit work, We planned and performed our audit so as to obtain all for this report, or for the opinions we have formed. the information and explanations which we considered necessary in order to provide us with sufficient evidence Respective responsibilities of trustees and auditors to give reasonable assurance that the accounts are free The trustees’ (who are also the directors of the from material misstatement, whether caused by fraud company for the purposes of company law) or other irregularity or error. In forming our opinion we responsibilities for preparing the Annual Report and the also evaluated the overall adequacy of the presentation accounts in accordance with applicable law and United of information in the accounts. Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and for being Opinion satisfied that the accounts give a true and fair view are In our opinion set out in the Statement of Trustees’ Responsibilities. —the accounts give a true and fair view of the state of We have been appointed auditors under the Companies the charitable company’s affairs as at 31 December Act 2006 and section 43 of the Charities Act 1993 2009 and of its incoming resources and application and report to you in accordance with those Acts. Our of resources, including its income and expenditure, responsibility is to audit the accounts in accordance for the year then ended; with relevant legal and regulatory requirements and —the accounts have been properly prepared in International Standards on Auditing (UK and Ireland). accordance with United Kingdom Generally Accepted Accounting Practice; We report to you our opinion as to whether the —the accounts have been prepared in accordance accounts give a true and fair view, have been properly with the Companies Act 2006 and the Charities Act prepared in accordance with United Kingdom 1993; and Generally Accepted Accounting Practice and have —the information given in the Trustees’ Annual Report been prepared in accordance with the Companies is consistent with the accounts. Act 2006 and the Charities Act 1993. We also report to you whether in our opinion the information given in TS LUDDINGTON (Senior Statutory Auditor) the Trustees’ Annual Report is consistent with those For and on behalf of BAKER TILLY UK AUDIT LLP, accounts. Statutory Auditor Chartered Accountants In addition we report to you if, in our opinion, the The Pinnacle charitable company has not kept adequate accounting 170 Midsummer Boulevard, records, if the charitable company’s accounts are Milton Keynes, Bucks MK9 1BP not in agreement with the accounting records and returns, if we have not received all the information 3 June 2010 and explanations we require for our audit, or if certain disclosures of trustees’ remuneration specified by law are not made. We have audited the accounts of the Solicitors Benevolent Association Limited for the year ended 31 December 2009 on pages 8 to 19.

We read the Trustees’ Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it.


The Accounts


08

Annual Accounts 2009

Statement of Financial Activities for the year ended 31 December 2009 (Incorporating the income and expenditure account)

Note

Unrestricted Funds £

Restricted Funds £

Endowment Funds £

Total Funds 2009 £

Total Funds 2008 £

2 3 4

962,100 11,776 429,957

76,633 — —

— — —

1,038,733 11,776 429,957

930,448 12,864 452,554

Total Incoming resources

1,403,833

76,633

1,480,466

1,395,866

5

158,040

158,040

148,758

5 6 7

— 945,981 32,741

— 76,663 —

— — —

— 1,022,614 32,741

278 1,243,292 14,000

Total resources expended

1,136,762

76,633

1,213,395

1,406,328

Net outgoing resources before holding profits

267,071

267,071

(10,462)

(71,632) 1,130,026

— —

(9,029) 142,444

(80,661) 1,272,470

(1,135,931) (1,870,290)

1,325,465

133,415

1,458,880

(3,016,683)

12,053,345 —

— —

1,230,378 —

13,283,723 —

— 16,300,406

13,378,810

1,363,793

14,742,603

13,283,723

Incoming Resources

Incoming resources from generated funds Voluntary income Activities for generating funds Investment income

Resources expended Costs of generating funds

Costs of generating voluntary income Fundraising trading: cost of goods sold and other costs Charitable activities Governance costs

Holding Profits (Losses)

Profit (Loss) on investment assets

11

Disposals Revaluations 20 Net movement in funds

Reconciliation of funds Exceptional item

Funds transferred from SBA 21 Total funds brought forward Total funds carried forward The notes on pages 10 to 19 form part of these accounts.


09

Annual Accounts 2009

Balance Sheet as at 31 December 2009

Note

Unrestricted Funds £

Endowment Funds £

Total Funds 2009 £

Total Funds 2008 £

Tangible fixed assets 10 Investments 11 Secured loans to beneficiaries

199,827 9,319,661 3,482,012

— 1,363,793 —

199,827 10,683,454 3,482,012

203,247 9,037,847 3,339,258

13,001,500

1,363,793

14,365,293

12,580,352

Debtors 12 Cash at bank and in hand

193,527 588,149

— —

193,527 588,149

166,375 1,054,630

781,676

781,676

1,221,005

13

(374,959)

(374,959)

(486,440)

Net Current Assets

406,717

406,717

734,565

Total Assets less Current Liabilities

13,408,217

1,363,793

14,772,010

13,314,917

14

(29,407)

(29,407)

(31,194)

Net Assets

13,378,810

1,363,793

14,742,603

13,283,723

13,378,810

1,363,793

14,742,603

13,283,723

13,378,810

1,363,793

14,742,603

13,283,723

Fixed Assets

Current Assets

Creditors

Amounts falling due within one year

Creditors

Amounts falling due after more than one year Life subscriptions

Funds

Funds 17/18 The accounts have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (issued in March 2005) and in accordance with the provisions applicable to companies subject to the small companies regime.

T.P. Cuthbertson, Chairman M. John, Honorary Treasurer

These accounts on pages 8 to 19 were approved by the Board of Trustees and authorised for issue on 10 March 2010 and signed on its behalf by:

Registered company number: 6601907 Registered charity number: 1124512

The notes on pages 10 to 19 form part of these accounts.


10

Annual Accounts 2009

Notes to the Accounts for the year ended 31 December 2009

1. Accounting Policies The accounts are prepared under the historical cost (f) Pension contributions which are paid for certain convention, modified by the revaluation of investments, employees under a defined contribution pension and in accordance with the principal provisions of the scheme are recognised in resources expended as Statement of Recommended Practice for Charities they are paid. (SORP 2005) issued in March 2005, the Companies (g) Freehold land is not depreciated but the freehold Act 2006, United Kingdom accounting standards, and building is written off in equal instalments over 50 the Charities Act 1993 and 2006. years. (h) Office equipment costing less than ÂŁ10,000 is not A summary of the more important accounting policies, capitalised but is written off on acquisition through which have been applied consistently, is set out below. the Statement of Financial Activities. (i) Fixed asset investments are stated at closing (a) Annual subscriptions, donations and legacies mid-market value at the balance sheet date. are accounted for on the basis of cash receipts. Movement in the carrying value of any investment Legacies receivable are also included within is treated as unrealised, except in the year of incoming resources once it has become certain disposal when the surplus or loss on disposal that the legacy will be received and the value can is shown as realised and represents the difference be measured with sufficient reliability. between either the brought forward carrying (b) Life subscriptions are credited to a deferred income value, or cost, if purchased in the year, and disposal account in the balance sheet when received. One proceeds. Partial disposals are accounted for using tenth of the balance of this account is credited each average book value. Any gain or loss on revaluation year to income (see note 14). is taken to the SOFA.All gains and losses are taken (c) Investment income is accounted for on an accruals to the SOFA as they arise. Realised and unrealised basis. gains are separated in the SOFA. (d) Grant awards are communicated to beneficiaries (j) Loans are made to beneficiaries in circumstances immediately. These are frequently agreed to be where the beneficiary can offer sufficient security payable over a period, but the full cost including to ensure eventual repayment. Loans are unpaid awards is recognised in resources expended recognised when paid, and any outstanding immediately. commitment is noted in the accounts. Secured (e) Direct costs are allocated to the appropriate loans are included in the balance sheet as fixed heading in the SOFA as follows: assets. Unsecured loans are included in the balance 1. Cost of generating voluntary income comprises sheet as debtors at their estimated recoverable value. PR, advertising, membership, and event costs. (k) Details of the nature and purpose of each fund is 2. Fundraising trading comprises merchandising set out in notes 17, 18 and 19. costs. 3. Charitable activities comprises grants to individual beneficiaries, welfare and associated legal costs. 4. Governance costs comprise costs associated with constitutional and statutory requirements. Support costs comprises the apportionment of common office costs between the fundKabir raising activities and the charitable activities, SBA beneficiary in proportion to the staff costs in each of these areas.


11

Annual Accounts 2009

Unrestricted Funds £

Restricted Funds £

Total Funds 2009 £

Total Funds 2008 £

Annual subscriptions and donations Life subscriptions (see note 14) Legacies Other charities (see note 19) Conditional donations (see note 18)

208,676 3,267 192,694 — 557,463

— — — 76,633 —

208,676 3,267 192,694 76,633 557,463

237,372 3,466 38,573 80,686 570,351

962,100

76,633

1,038,733

930,448

2009 £

2008 £

Merchandising Events

3,701 8,075

3,944 8,920

11,776

12,864

2009 £

2008 £

Income from listed investments Interest on cash deposits

423,142 6,815

407,633 44,921

429,957

452,554

Restricted Funds £

Total Funds 2009 £

Total Funds 2008 £

Costs of generating voluntary income Public relations and advertising 32,657 — Repayments of conditional donations 23,204 — Salary costs 43,108 — Support costs 59,071 —

32,657 23,204 43,108 59,071

46,324 4,735 42,190 55,509

158,040

148,758

Costs of fundraising trading Merchandising costs of sales — —

278

278

2. Voluntary Income

3. Activities for generating funds

4. Investment income

Unrestricted Funds £

5. Costs of generating funds

158,040


12

Annual Accounts 2009

Notes to the Accounts for the year ended 31December 2009 Continued

Unrestricted Funds £

Restricted Funds £

Total Funds 2009 £

Total Funds 2008 £

Grants to beneficiaries Cost of living allowances Supplementary, leisure, special and miscellaneous grants Nursing home fees Educational support

399,252 208,892 6,480 144,000

76,633 — — —

475,885 208,892 6,480 144,000

555,205 319,970 10,717 142,200

Welfare salaries, travel and legal costs Support costs

758,624 94,345 93,012

76,633 — —

835,257 94,345 93,012

1,028,092 121,535 93,665

945,981

76,633

1,022,614

1,243,292

6. Charitable Activities

In addition to grants of £835,257 (2008: £1,028,092), secured loans totalling £337,698 (2008: £504,279) and unsecured loans totalling £nil (2008: £2,350) were advanced to beneficiaries.

Repayments of secured loans totalling £187,044 (2008: £129,454) and unsecured loans totalling £13,579 (2008: £29,351) were received. The number of beneficiaries assisted in 2009 was 315 (2008: 282)

Unrestricted Funds £

Restricted Funds £

Total Funds 2009 £

Total Funds 2008 £

Auditor’s remuneration Legal costs on incorporation Cost of Trustees’ meetings and AGM

9,170 20,882 2,689

— — —

9,170 20,882 2,689

7,560 — 6,440

32,741

32,741

14,000

7. Governance costs

Expenses re–imbursed to Trustees for travel amounted to £748 (2008: £2,839). No other reimbursements or payments were made to Trustees.


13

Annual Accounts 2009

Staff Costs £

Other Costs £

Total 2009 £

Total 2008 £

Costs of generating voluntary income (see note 5) Costs of fundraising trading (see note 5) Charitable activities (see note 6) Governance costs (see note 7)

84,548 — 133,126 —

73,492 — 889,488 32,741

158,040 — 1,022,614 32,741

148,758 278 1,243,292 14,000

217,674

995,721

1,213,395

1,406,328

2009 £

2008 £

Staff costs Wages and salaries Social security costs Pension costs

190,930 16,043 10,701

185,612 17,506 13,341

217,674

216,459

Other costs Grants to beneficiaries Premises and equipment Pensions to former employees (see note 15) Miscellaneous Repayments of conditional donations

835,257 45,394 — 91,866 23,204

1,028,092 41,009 5,087 110,946 4,735

995,721

1,189,869

Employees who received emoluments between £50,000 and £60,000 Employees who received emoluments between £60,000 and £70,000 The average number of employees on a full time equivalent basis was: Beneficiary welfare Fundraising, membership and publicity Management and administration

1 —

— 1

2009 1 1 2

2008 1 1 2

4

4

8. Total Resources Expended

The SBA provides retirement benefits for certain employees under a defined contribution pension scheme. The assets of the scheme are held separately from those of the SBA in independently administered funds.

The SBA has Indemnity Insurance costing £1,313 (2008: £1,155) `to protect the charity from loss arising from the neglects or defaults of its trustees, employees or volunteers, and to indemnify the trustees, officers and volunteers against the consequences of any neglect or default on their part.


14

Annual Accounts 2009

Notes to the Accounts for the year ended 31 December 2009 Continued

2009 £

2008 £

Breakdown of support costs Management and administrative salaries Office accommodation and administration costs

106,689 45,394

103,078 46,096

152,083

149,174

Allocation of support costs Charitable activities Costs of generating voluntary income

93,012 59,071

93,665 55,509

152,083

149,174

Freehold Land £

Freehold Buildings £

Total

Cost at 1 January (as transferred from SBA) and 31 December 2009

100,000

172,161

272,161

Depreciation at 1 January 2009 (as transferred from SBA) Depreciation charge for the year

— —

(68,914) (3,420)

(68,914) (3,420)

Depreciation at 31 December 2009

(72,334)

(72,334)

Net book value at 31 December 2009

100,000

99,827

199,827

100,000

103,247

203,247

9. Support Costs

Support costs are allocated between Charitable activities and Costs of generating voluntary income in proportion to direct salary costs incurred in each area. The apportionment represents 137% of direct salary costs (2008: 132%).

£

10. Tangible Fixed Assets

Net book value at 31 December 2008 (as transferred from SBA) There were no capital commitments (2008: £nil)


15

Annual Accounts 2009

2009 £

2008 £

Quoted investments Market value at 1 January 2009 of transfer from SBA Additions Disposals Net realised loss Net unrealised gain/(loss)

9,037,847 3,298,141 (2,844,343) (80,661) 1,272,470

12,450,050 2,498,028 (2,904,010) (1,135,931) (1,870,290)

Market value 31 December 2009

10,683,454

9,037,847

Historical cost as at 31 December 2008 of transfer from SBA

9,228,388

8,707,544

Investments analysis at 31 December UK Fixed Interest UK Equities Overseas Equities

3,964,193 6,370,238 349,023

3,376,590 4,544,031 1,117,226

10,683,454

9,037,847

£

%

566,066

5.3

11. Fixed Asset Investments

At 31 December 2009 the following investments, including accrued interest, exceeded 5% of the investment portfolio market value 42,900 GlaxoSmithKline Ordinary shares

Unrestricted Funds £

Endowment Funds £

Total 2009 £

Total 2008 £

Disposals Revaluations (see note 19)

(71,632) 1,130,026

(9,029) 142,444

(80,661) 1,272,470

(1,135,931) (1,870,290)

1,058,394

133,415

1,191,809

(3,006,221)

Profit/(Loss) on Investment Assets


16

Annual Accounts 2009

Notes to the Accounts for the year ended 31 December 2009 Continued

2009 £

2008 £

Income tax recoverable Unsecured loans to beneficiaries Prepayments Other debtors

3,634 121,825 8,322 59,746

10,017 127,504 15,141 13,713

193,527

166,375

2009 £

2008 £

17,942 351,446 4,101 1,470

10,262 468,497 5,366 2,315

374,959

486,440

12. Debtors

Unsecured loans to beneficiaries have no predetermined repayment date and accordingly may not be repaid within twelve months of the balance sheet date.

13. Creditors: amounts falling due within one year Accruals Unpaid beneficiary awards Other tax and social security Other creditors

2009 £

2008 £

Transfer from SBA at 1 January Received during the year

31,194 1,480

33,311 1,349

Transferred to incoming resources

32,674 (3,267)

34,660 (3,466)

Balance at 31 December

29,407

31,194

14. Creditors: amounts falling due after more than one year


17

Annual Accounts 2009

15. Contingencies and Commitments The SBA has a contingent liability to return any part of conditional donations received to contributing firms. On 31 December 2009 the total conditional donations received net of repayments amounted to £5,369,198 (2008: £4,834,939) (see note 18). The SBA has a commitment to pay secured and unsecured loans totalling £191,916 (2008: £228,245) which have been authorised but not yet paid.

The SBA provides retirement benefits for certain employees under a defined contribution pension scheme administered by the Pensions Trust. The SBA has been notified by the Pensions Trust of the estimated employer debt on withdrawal from the scheme based on the financial position of the scheme as at 31 March 2009. As of this date the estimated employer debt was £206,070.

The SBA paid a pension to 1 former employee in 2008 which was not covered by the scheme described in note 8. There is no longer any commitment.

16. Analysis of Net Assets between Funds The Endowment Fund comprises solely investments. All other assets are included in the General Fund.

17. Endowment Fund The Endowment Fund was created during the years ended 31 December 1995 and 1996 when with Charity Commission approval 14 small charities forming part of the SBA Common Investment Fund were transferred to the SBA General Fund. The permanent endowment value included within these charities was confirmed in a Charity Commission Scheme dated 1 August 1996 as £932,409. Income, which is included in unrestricted funds,

and (to the extent that it does not represent permanent endowment) capital may be used for the general purposes of the SBA. The transfer from SBA at 1 January 2009 of £1,230,378 has been increased by investment profits of £133,415 to a closing balance at 31 December 2009 of £1,363,793. Gains or losses on Investment Assets during the year are allocated between Unrestricted Funds and Endowment Funds in proportion to their opening balances.


18

Annual Accounts 2009

Notes to the Accounts for the year ended 31 December 2009 Continued

General Fund £

Conditional Donations £

Total

Transfer from SBA at 1 January Movements

7,218,406 791,206

4,834,939 534,259

12,053,345 1,325,465

At 31 December

8,009,612

5,369,198

13,378,810

The conditional donations movements are shown net of repayments of £23,204 (2008: £4,735).

2009 £

2008 £

The HM Hubbard Will Trust The Pritt & Corlett Funds The Eva Crawley Bursary

57,177 19,456 —

68,926 11,000 760

76,633

80,686

Endowment Funds £

Total Funds £

£

18. Unrestricted Funds

The analysis of unrestricted funds is:

19. Restricted Funds

The charity received incoming resources from other charities for specific beneficiaries, and these have all been spent in full during the year as intended.

Unrestricted Fund £

20. Reconciliation of Movements in Unrealised Gains on Fixed Asset Investments Net unrealised gains transferred from SBA at 1 January Less attributable to disposals in the year Add net profits on revaluations in the year

293,328 (131,172) 1,130,026

36,975 (16,535) 142,444

330,303 (147,707) 1,272,470

Net unrealised gains at 31 December

1,292,182

162,884

1,455,066


19

Annual Accounts 2009

21. Transfer from unincorporated Solicitors Benevolent Association The activities of the charitable company were previously carried out by the Solicitors Benevolent Association, an unincorporated charity founded in 1858. On 1 January 2009 the activities of the unincorporated charity, together with its entire assets and liabilities amounting to ÂŁ13.3m were transferred to the new charitable company. A Uniting Direction under S96(6) of the Charities Act 1993 was issued by the Charity Commission on 17 March 2009, by which the unincorporated charity should be treated as forming a part of the charitable company for the purposes of Part II (registration) and Part VI (accounting) of the Charities Act 1993.

The charitable company commenced operations on 1 January 2009. The transfer of net assets from the unincorporated charity are shown as an Exceptional Item in the income section of the Statement of Financial Activities. There are no Funds brought forward, and the Notes to the Accounts show the transfers of assets and liabilities rather than brought forward figures at 1 January 2009. All of the comparative figures for 2008 within this Report and Accounts are the figures recorded by the unincorporated charity. The assets and liabilities transferred at 1 January 2009 are as follows:

ÂŁ

Tangible fixed assets Investments at market value Secured loans to beneficiaries Current assets including cash of ÂŁ1,054,630 Current liabilities Creditors falling due after more than one year

203,247 9,037,847 3,339,258 1,221,005 (486,440) (31,194)

13,283,723

The net assets transferred are represented by the following funds: Unrestricted funds 12,053,345 Endowment funds 1,230,378 13,283,723


20

Annual Accounts 2009

Officers, Trustees and Area Representatives 2009

Patron HM The Queen President The President of The Law Society Vice–President Anthony Surtees Chairman Timothy Cuthbertson Vice–Chairman David Wyatt Honorary Treasurer Michael John Auditors Baker Tilly UK Audit LLP The Pinnacle 170 Midsummer Boulevard Milton Keynes, Bucks MK9 1BP Beneficiary Secretaries Angi Birts Sarah Collier Administration Anne Rawlinson Accountant & Company Secretary John Platt FCA Office Manager Annette Brotherton Membership & Marketing Manager Katie Wylie Registered Office 1 Jaggard Way London SW12 8SG DX: 41608 BALHAM Tel: 020 8675 6440 Fax: 020 8675 6441 email: sec@sba.org.uk Stockbrokers Rensburg Sheppards plc 2 Gresham Street London EC2V 7QN Bankers National Westminster Bank plc Temple Bar Branch, 217 Strand London WC2R 1AL Legal Advisors Newman Law 10 Hendon Lane Finchley Central London N3 1TR

Trustees Cordella Bart-Stewart, North London Rosalind Bax, London David Biddle, London David Bishop, Surrey Sara Chandler, London Anthony Cumming, Leeds Timothy Cuthbertson, Birmingham Richard Debenham, St Albans Colin Dickinson, Newcastle Malcolm Farrer-Brown, Dorking David Field, East London Michael Gillman, Surrey Michael John, Reigate Jeremy Lee, Crediton Stephen McCann, Manchester Dominic Mills, Bedford Eila de B Rochfort, Camberley John Scott, East Grinstead Michael Sheffield,OBE,TD, Middlesborough Robin Shepherd, Towcester Maurice Spector, London Anthony Surtees, Farnham Robert Thomas, Neath Robert Urquhart, Eastbourne John Vertigan, Norfolk Richard Wheen, Betchworth Sally Williams, London David Wyatt, Newent, Gloucestershire Area Representatives Simon Alliott, South Yorkshire John Ball, East Sussex Norman Banner, Warrington Nicholas Bourne, Salisbury Robert Bourns, Bristol Michelle Bowyer, Cirencester Bill Boyes, North London Anthony Bradbury, Essex Lorraine Bruton, Gloucestershire John Buchanan, Bournemouth Jonathan Chubb, Porthcawl Michael Clough, St Ives Anthony Corcoran, Sussex James Couzens, High Wycombe John Crane, Leicestershire Ralph Cross, Worcester Tom Cryan, North London Richard Daniel, Ramsgate Rev Paul Davies, Pembrokeshire Martin Day, London & Chipping Norton Greg Dolan, Halifax William Duncan, Plymouth Anthony EIlis, King’s Lynn Susan Elson, West Sussex Meinir Evans, Pontypridd Karen Eves, Maidenhead David Fellows, Richmond, Surrey David Fish, Wolverhampton Richard Fisher, Cardiff Tim Fletcher, Scarborough Peter Flint,Shrewsbury Janet Gallimore. Leominster Andrew Graham, SW London

Anthea Grainger, London Richard Griffiths, Reading Lloyd Groves, London Nick Gurney-Champion, Portsmouth Richard Hare, Lincoln Anthony Harris, Hampshire Christopher Hill, Newport Michael Hill, Liverpool Chris Hindle, Bradford John Hobson, Luton John Holder, Chatham Hilary Holland, Carlisle Thomas Hoyle, Blackburn Christine Hughes, Chester Samantha Ingram, Birmingham David James, Swansea Robert Jennings, Dursley, Glos John Jepson, East Yorks Philip Jones, Slough Helen Lansdown, Sheffield Simon Leney, Tunbridge Wells John Lindop, Southend Robert Long, Southampton Jim Lord, Leamington Spa Peter Lord, Derby Alastair Lorimer, Cambridge Jane Lougher, Reading Alan MacPherson, Blackpool Anthony Merrett, Bucks Peter Moore, Harrogate Gareth Morris, Aberystwyth Andrew Morton, Surrey Bill Nicks, Bristol John Owens, North Wales Richard Palmer, Hull Richard Peel, South West Scotland Denis Philbin, Cheshire Jane Propert, Monmouthshire Miranda Reckitt, Ipswich Douglas Redfern, Weymouth Elizabeth Roberts, Waverton, Chester Anthony Roost, Weston-Super-Mare David Savage, Farnborough Paul Sherratt, Stoke on Trent Tamsin Simmonds, Bath Carrie Simson, Lincoln Edward Sutherland, West London Wayne Thomas, Worcester Lionel Thorne, Dorchester John Vogt, Marlborough Tessa Wilkins, Yorkshire Roger Wilson, Whitehaven Mary-Ann Wright, Eltham


The Association exists to help solicitors (who are or have been on the Roll of Solicitors for England and Wales) and/or their dependants who are in financial difficulty.


SBA The Solicitors’ Charity 1 Jaggard Way London SW12 8SG

Telephone 020 8675 6440 Fax 020 8675 6441

Solicitors Benevolent Association Limited A charitable company limited by guarantee registered in England & Wales number 6601907 Registered Charity number 1124512

sec@sba.org.uk www.sba.org.uk DX 41608 BALHAM

Registered Office 1 Jaggard Way London SW12 8SG

Patron HM The Queen Vice Patron Clive Anderson

President The President of The Law Society

SBA Annual Report 2009  

Solicitors Benevolent Association Limited Trustees’ Report and Accounts for the year ended 31 December 2009