The trustees present their annual report and financial statements for the year ended 31 December 2021.
The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the trust's [governing document], the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019).
The purposes of the Charity as set out in the objects contained in the company’s memorandum of association are to:
benefit the public by relieving poverty and need amongst persons who are or have been directors or employees of ABTA Ltd or its subsidiary companies or those persons who are or have been involved in the businesses of ABTA Members whether as principals, directors or employees and the spouses widows or widowers (whether or not married) children and other dependants of such persons who are in need of such assistance and in particular persons who are in need of financial support due to incapacity from old age or infirmity.
Ensuring our work delivers our aims
We review our aims, objectives and activities each year which informs our annual report. The review looks at what we have achieved and what we need to do and informs our business plan in the following year. The review helps us ensure our aims, objectives and activities remain focused on our stated purposes. We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives, in our decision making and planning for the future.
The charity held two strategy days, one on 18 November 2020 and again on 14 January 2021 with all Trustees to review 2020 performance and develop the business programme for 2021. Given the challenging conditions with the pandemic which have negatively impacted the charity over the last 18 months, the focus was very much on recovery. It was recognised that 2021 would be another tough year with the travel industry severely impacted presenting little opportunity to raise funds.
The key objectives remained as:
Strengthen the sustainability of the charity, ensuring the right governance, resource and funding to deliver high-quality services
Raise sufficient funds each year to provide the services
Provide the right services that are responsive to the needs of the community
Disperse the funds in a fair, consistent and transparent manner
Effectively communicate our services so that travel colleagues know about the support the charity can provide
Build strong partnerships to help deliver the objectives.
The focus of our work
The main objective for the year continued to be helping current or former industry colleagues and families in the travel industry who have fallen on hard times.
Requests for assistance from the Fund usually emanate by reason of hardship caused by death, illness, disability, redundancy, relationship breakdown, unforeseen circumstances and old age among other things. In 2021 we continued to see many colleagues struggling with financial hardship made worse by the pandemic.
Applications for help are made to the Board of Trustees who consider each application on its merits. Financial help is awarded to those applicants who are eligible and who have demonstrated they are in need, by way of grants. The charity also provides expert financial management advice (debt, benefits, budgeting, and housing) and mental health and wellbeing support through its partners.
How our activities deliver public benefit
All our charitable activities focus on the alleviation of hardship and are undertaken to further our charitable purposes for the public benefit.
Who benefited from our services
Our current eligibility criteria stipulate that we are there to provide help to people who have worked for an ABTA Member, ABTA itself or other organisations within the travel industry who are engaged in the sale of ABTA products. Spouses/partners, widows/widowers and children of employees are also eligible – other main dependents are considered too.
We award grants to Member employees and their dependent families suffering real hardship caused by life changing situations (medical, accidents etc.), unexpected circumstances (bereavement, domestic abuse, redundancy etc.), lack of essentials (food, utilities, white goods) and in need of mental health support.
No one application is the same and therefore the awards we grant differ widely.
What the charity has done during the year to carry out its purposes (for public benefit)
In 2021 we helped with a variety of awards including the payment of priority bills, emergency food vouchers, white goods, flooring, furnishings, debt relief orders, funeral costs, counselling, debt, benefit and housing advice among other things.
The Director, working in conjunction with ABTA, has continued to develop the Charity’s awareness programmes with its various audiences under the brand name of ABTA LifeLine with the aim of producing the twin benefits of:
increasing the number of applications from people in need of help; and
maintaining satisfactory levels of donation and investment income to meet the Fund’s
management costs for the continuance of the Charity’s grant objectives and to meet the level of awards granted.
The Director has continued to engage with ABTA Members directly about the support it can offer colleagues and their families. In particular the charity quickly reached out to the employees of companies that failed during the year.
In May, the charity held its first industry mental awareness week ‘Get Travel Talking’ with TTG Media, the first time the industry has come together to talk about mental health. Industry leaders talked about their experiences, tools and information were shared, and wellness Wednesday saw a live exercise class led by Mr Motivator. The charity promoted the services and support it could provide during this week.
When events started to get going again, the charity was delighted to be the chosen partner at various industry events including Travel Gossip’s Bounce Back Party, Avis Budget Group’s Henley Regatta event, the Travel Weekly Agent Achievement Awards and the Travel Industry Awards.
In 2021, ABTA LifeLine received 79 applications (66 for financial support, 7 for counselling and 6 applications were received for support with Christmas). This is down on the 109 applications received in the previous year. However, at the beginning of 2020 the charity was still supporting the staff of Thomas Cook who were made redundant in September 2019. 44 grants were made including referrals to the charity’s service partners.
Going forward into 2022, with the cost of living increasing, we may well see more people come to the charity for support, especially with regards to fuel poverty.
Total grants awarded came to £30,221 compared to £52,059 in 2020.
Raising funds from an industry decimated from the pandemic again proved extremely difficult in 2021. The charity unfortunately had to cancel all but one fundraising event.
£12,500 in funding was received from ABTA Ltd and £12,500 from ABTA Insurance PCC Ltd.
The partnership with Avis Budget Group went from strength to strength with a member of the Avis team on furlough volunteering to help the charity for 9 months. Avis also helped raise funds for LifeLine by sponsoring the charity’s cycle ride, holding a raffle at their Henley Regatta event and participating in the virtual London Marathon among other things.
5 runners ran for the charity in the virtual London marathon, a cycling event was held at the Olympic Velodrome at Queen Elizabeth Park in London, TUI held a Tour de TUI and other small pockets of finance came in from across the industry.
Total funds received for the year from all sources was £81,785 compared to £123,428 in 2020.
Principal Funding Sources
ABTA LifeLine relies solely on travel industry funding. The principal sources of funding historically have been from ABTA Ltd, ABTA Insurance PCC Ltd, company donations (£1 per employee or other corporate donations), events and individual challenges.
In 2021 due to the challenging climate very few corporate donations were received, and we were unable to promote our £1 per employee appeal.
ABTA Ltd continued to support ABTA Lifeline through provision of accounting, IT, HR and other corporate services.
Investment Policy
Rathbones Investment Management Limited continued to provide discretionary fund
management of the Charity’s investment portfolio during the year under review. The charity’s guidelines are for medium risk investments and for maintaining a broad balance between income and growth in the medium term.
In keeping with normal practice, the Fund’s investment portfolio was revalued at the end of December 2021, producing an unrealised gain £67,881 (2020 loss of £16,175). The performance of the portfolio is reported by Rathbones on a quarterly basis to ABTA Lifeline and a formal report provided to the Board of Trustees at every meeting.
Reserves Policy
It is the policy of the trust that unrestricted funds which have not been designated for a specific use should be maintained at a minimum reserve level at twice the level of annual expenditure.
This approach provides flexibility for Lifeline to adjust its activities in line with applications and the economic climate through its budget.
The Trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, as we have seen as a result of the pandemic, they will be able to continue the trust’s activities while consideration is given to ways in which additional funds may be raised.
The reserves at 31st December 2021 were £641,923 (2020 £620,512), which the trustees consider to be sufficient in line with the charity’s reserves policy and future requirements.
A strategy day was held on 24 November 2021 to review LifeLine’s performance and discuss the aims and objectives for 2022. The day’s focus was on recovery and making the charity financially sustainable for the long term.
Four key work streams were agreed:
Governance and diversity – how we modernise, review policies and diversity of the Board
Services – what we do and how we do it; how we respond to our community’s needs
Engagement and partnerships – how to promote the charity’s services to our community and raise funds
Sustainable finance – how we recover and look to diversify income streams.
The Director will continue to engage with stakeholders to reach their employee community more effectively and progress her efforts to raise the awareness of ABTA LifeLine with the many tens of thousands of people who have worked for ABTA Members in the past, but no longer do so.
Governing Document
The organisation is a charitable company limited by guarantee, incorporated on 3 December 1986, and registered as a charity on 29 January 1987. The company was established under a Memorandum of Association which established the objects and powers of the charitable company and is governed under its Articles of Association. In the event of the company being wound up members are required to contribute an amount not exceeding £1.
The trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:
Mrs K Darbandi (resigned 29 April 2021)
Mr D Jones
Mr J McEwan (reappointed 29 April 2021)
Mr A Rowland
Mr Ed Sumner (resigned 10 February 2021)
Ms Belinda Vasquez (appointed 10 February 2021)
Mr J de Vial (resigned 30 September 2021)
Mrs C Watson (reappointed 29 April 2021)
Ms T Clements continued to perform the duties of the Charity’s Director.
Recruitment and Appointment of Management Committee
The directors of the company are also charity trustees for the purposes of charity law and under the company’s Articles are known as members of the Board of Trustees. Under the requirements of the Memorandum and Articles of Association the members of the Board are elected to serve for a period of two years after which they must be re-elected at the next Annual General Meeting.
All members of the Board give their time voluntarily and received no benefit from the charity. No expenses were reclaimed from the charity.
In April 2021 Ms Kathryn Darbandi, Mr J McEwan and Ms Carolyn Watson retired by rotation and being eligible, Mr J McEwan and Ms Carolyn Watson offered themselves for re-election. Having secure a new job in a different sector, Ms Kathryn Darbandi resigned from the board. Mr John de Vial also resigned from the board on 30 September 2021.
Mr D Jones remains the charity’s Chair and Mrs C Watson the Treasurer.
Every effort is made to maintain and bring new skill sets to the Trustee Board. Member’s position and network in the travel industry is also an important asset to bring to the committee.
The charity is actively seeking new Trustees with the right skills set to join the board.
Trustee Induction and Training
New Trustees are welcomed to the Board by the Chair and Director of the charity. They are given an overview of their role and responsibilities and are given copies of the business plan, financial accounts and governance documents. Trustees are also referred to the Commission’s guide to ‘the essential Trustee.’
All Trustees are aware of bribery and corruption and data protection legislation and are required to complete online governance training. Training is an annual event and a requirement as part of being a Trustee.
Risk Management
In 2021 ABTA LifeLine continued to review its governance and established clear terms of reference and policies for the running of the charity.
Organisational Structure
The Board of Trustees currently has 5 Members and two vacancies who meet quarterly and are responsible for the strategic direction and policy of the charity and deciding financial awards.
All meetings are held in compliance with the Competition Act 1998 and Trustees are required to register with the Chairman any relevant interests.
Day to day responsibility is delegated to the Director for the provision of the services, reaching people in need, promoting the charity and establishing efficient ways to generate income.
Given the pandemic the charity has no further employees.
Typically, decisions to award grants over £5,000 are made by the Board of Trustees. Applications under this are delegated to the Director and Treasurer Mrs C Watson.
Decisions on the strategic direction of the charity and the business plan for the forthcoming year are agreed by the Board of Trustees.
Related Parties
The charity is supported by ABTA Ltd. ABTA provide the office space, technology, HR, accounting, legal and management support for ABTA LifeLine to pursue its charitable objectives. This support in kind is in addition to any annual financial donation made by ABTA Ltd and ABTA Insurance PCC Limited. The charity works across the travel industry building partnerships to help spread the word of its charitable aims and identify prospective funding. The charity is a member of the Association of Charitable Officers which provide guidance and support.
Responsibilities of the Board
Charity and company law require the Board of Trustees, who are also the directors, to prepare financial statements for each financial year which give a true and fair view of the financial activities of the charity during the year and of its financial position at the end of the year. In preparing those financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to assume that the charity will continue its activities.
The Trustees are responsible for keeping proper accounting records which disclose with
reasonable accuracy at any time the financial position of the charity and which enable them to ensure that the financial statements comply with the Companies Act 2006 Statement of Recommended Practice: Accounting and Reporting by Charities. 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 maintenance and integrity of the charity’s website is the responsibility of the Trustees. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislations in other jurisdictions.
Members of the Board
Members of the Board, who are directors for the purpose of company law and trustees for the purpose of charity law, who served during the year and up to the date of this report are set out on page 5.
In accordance with company law, as the company’s directors, we certify that:
So far as we are aware, there is no relevant reporting information of which the company’s accountants are unaware; and
As the directors of the company we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant reporting information and to establish that the charity’s accountants are aware of that information.
Reporting Accountants
As permitted by the Memorandum and Articles, the charity is subject to an independent examination of its financial activities. During the year, Arram Berlyn Gardner were reappointed as reporting accountants.
Approved by the Trustees at a meeting on 17 February 2022 and signed on their behalf by:
I report to the trustees on my examination of the accounts of The ABTA Benevolent Fund (the trust) for the year ended 31 December 2021 which are set out on pages 9 to 18.
As the trustees of the trust (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).
Having satisfied myself that the financial statements of the trust are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the trust’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:
accounting records were not kept in respect of the trust as required by section 386 of the 2006 Act; or
the financial statements do not accord with those records; or
the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.
Income and endowments
Charitable expenditure
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The ABTA Benevolent Fund is a private company limited by guarantee incorporated in England and Wales. The registered office and principal place of business is 30 Park Street, London, SE1 9EQ.
The financial statements have been prepared in accordance with the trust's Memorandum, the Companies Act 2006, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" (effective 1 January 2019). The trust is a Public Benefit Entity as defined by FRS 102.
The trust has taken advantage of the provisions in the SORP for charities not to prepare a Statement of Cash Flows.
The financial statements are prepared in sterling, which is the functional currency of the trust. Monetary amounts in these financial statements are rounded to the nearest £.
The accounts have been prepared under the historical cost convention modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the trustees have a reasonable expectation that the trust has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.
Although the impact of Covid-19 on the travel industry has been significant, this has not translated into an exceptional level of applications and grants. The trustees continually monitor income, costs and grant levels to ensure that the trust is operating within its budget and reserves policy.
Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.
Restricted funds are subject to specific conditions by donors as to how they may be used.
Income is recognised when the trust is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.
Cash donations are recognised on receipt. Other donations are recognised once the trust has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.
Grants made from the Income Fund are included in the financial statements at their date of approval by the Trustees and communicated to the recipients.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date if the fair value can be measured reliably.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives. Assets under construction are not amortised. The basis for amortisation is as follows:
Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year. Transaction costs are expensed as incurred.
At each reporting end date, the trust reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Cash and cash equivalents include cash in hand.
The trust has elected to apply the provisions of Section 11 ‘Basic Financial Instruments' of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the trust's balance sheet when the trust becomes party to the contractual provisions of the instrument.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets, other than those held at fair value through income and expenditure, are assessed for indicators of impairment at each reporting date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in net income/(expenditure) for the year.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in net income/(expenditure) for the year.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the trust transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the trust’s contractual obligations expire or are discharged or cancelled.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the trust is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Loans
As the income of the Benevolent Fund can also be applied to make loans to applicants, loans advanced for benevolent purposes are included with grants made from the Income Fund in the financial statements when approved by the Trustees and then transferred to the balance sheet and included in debtors.
Taxation
The Benevolent Fund's income is not subject to U.K. taxation.
Income and endowments
Income and endowments
Expenditure on raising funds
Expenditure on raising funds
Charitable expenditure
Support costs
Support costs
Insurance
Telephone, postage & stationary
Subscriptions
Bank charges
Trustee expenses
Governance costs represent provision for Independent Examiner's fees including VAT.
Grants to individuals totalled £30,221 (2020: £52,059), the remaining £35,190 (2020: £50,624) represented support costs.
Grants approved to individuals totalled 44 (2020: 57).
None of the the trustees (or any persons connected with them) received any remuneration during the year, they were reimbursed a total of £nil (2020: £Nil) for travelling expenses.
The average monthly number of employees during the year was:
Trade debtors disclosed above are measured at amortised cost.
Trade debtors are stated after provisions for impairment of £nil (2020: £nil)
There were no disclosable related party transactions during the year (2020 - none).