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Annual Report2010Intelligent ProtectionYour partner in preventing insurance fraud
InsuranceFraud Bureau
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 1
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 2
InsuranceFraud Bureau
ContentsChairman’s Report 4
Director’s Report 8
Financials 2008-2009 11
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 3
David Neave, Chairman
Chairman’s Report
IFB Annual Report2010
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 4
The rising costs associated with insurance fraud see itfirmly placed as a priority on the public and insuranceindustry agenda. Fraud remains problematical andcontinued investment to counter the risks is arecognised requirement if the industry is to achievesuccess in reducing both volume and impact.
Part of the industry investment in combating fraud hasbeen applied to the formation and support of the IFBsince July 2006.
During the past 5 years, the IFB has assisted andsupported its industry partners to achieveunprecedented success, in terms of disrupting thoseconcerned with organised fraud. The IFB has played animportant part in ensuring the industry receives positivemedia coverage for its efforts to tackle organisedinsurance fraud. Strong deterrent messaging has beenused demonstrating that not only is the industrycapable of identifying organised fraud, but is alsosuccessfully disrupting such activity with seriousramifications for the fraudsters concerned. In anenvironment whereby the industry has publicly beenchallenged on its resolve and commitment to tackleinsurance fraud, the value of such media activity shouldnot be underestimated.
Recognising that its operating model needs to beresilient and effective, and led by Glen Marr, who wasappointed as Director in June 2010, the IFB has devotedmeaningful attention to strengthening its core capability.This has included an operational restructuring exerciseand recruitment of resource. A host of activities gearedto enhancing the operational model have beenundertaken and the level of customer engagementnotably enhanced, to include two customer events heldin London which, based on feedback, were very wellreceived.
The IFB has effectively repositioned itself withstakeholders in law enforcement, regulators and
agencies, successfully leveraging opportunities for data,information and intelligence sharing. IFB relationshipswith law enforcement have, for example, progressed todata being shared for the first time with the IFB forproactive purposes. Data relating to 20,000 high fraudrisk entities was shared with the National FraudIntelligence Bureau, demonstrating the ability of the IFBto extract such information using its analytical softwareand to reinforce support and appetite within theindustry to work collaboratively with law enforcementto combat fraud. The almost daily contact the IFBreceives from law enforcement seeking support intackling criminality is testament to the respect and trustthe IFB has developed with these key stakeholders.
In July 2010, the IFB entered into a strategic partnershipwith the Motor Insurers’ Bureau (MIB), for the provisionof support services. This has contributed to enhancingour operational resilience and will provide furtheropportunities for the IFB going forward.
During quarter 4 last year, we successfully completedprocurement for an upgraded software platform,demonstrating the IFB seeks to ensure its technology, apivotal feature of the operating model, is market leading.This new technology will allow us to deploy our first ondemand web-portal service for customers, bringing thepower of consolidated data and analytical software tocustomer desktops. This alone represents notableprogression in the IFB model.
One of the most important features of the IFB is ourpeople and we have been undertaking a recruitmentcampaign to bring new skills, experiences and expertiseto the team. The team itself was also segmented into5 pillars to enhance the operating model; operations,analytics, intelligence, customer management andmedia/communications.
Chairman’s Report
IFB Annual Report 2010Chairman’s Report
Page 5
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 5
The IFB Board benefited from new Directors, namelyAshton West, CEO, MIB, David Newman, CEO &Chartered Director, Carole Nash Insurance, SummaMilam, Head of Financial Reporting & BusinessPerformance, Ageas Insurance, Tom Gardiner, Head ofLoss Prevention UK General Insurance, Aviva andUrsula Coulibally, Head of Financial Crime Operations,LV=. Of particular note is the fact that all bar one ofthese Directors are not counter-fraud practitioners,bringing a different perspective and additional value tothe Board.
Since formation, the IFB has remained a Jerseyregistered trust. During this year we are exploringchanging the legal entity to a UK domiciled trust, withits registered office being the MIB in Milton Keynes. Weare looking to build on progress made in 2010 withrespect to our governance, to include making changesto our Board structure, bringing Directors to the Boardof increased seniority from the industry.
In recognition of the key industry role played by the IFB,the Association of British Insurers (ABI) soughtinvolvement of the IFB in formulating a business benefitscase for the first industry funded Police fraud team.Again at the request of the ABI, the IFB has been heavilyinvolved in the proof of concept for the Insurance FraudRegister (IFR) and is the proposed provider of an IFRmanaged service for the industry.
As part of exploring collaborative opportunities toreduce fraud, to benefit IFB customers and partners, theIFB has been actively engaged with the Department ofWork & Pensions, Association of Personal InjuryLawyers and Motor Accident Solicitors Society. Thisdialogue continues to explore options.
As further acknowledgement of the role played by theIFB, it represents the industry interests on theAssociation of Chief Police Officers Economic CrimePortfolio, chaired by the Commissioner from the Cityof London Police, and the National Fraud Authorityinformation sharing taskforce.
Having invested in enhancing the core operationalmodel, the IFB is now looking to the future and hasembarked on activity to identify its future proposedstrategic direction. Partnering with a small team fromDeloitte, an exercise is underway to engage withcustomer organisations at CEO and fraud practitionerlevels, along with stakeholders within and outside theindustry, to determine needs and requirements. Outputfrom this activity will be published in quarter 3 2011and is intended to shape the future direction of the IFB.
Looking back over the past 12 months, the IFB has facedmany challenges which it has met head-on and neverlost sight of its core focus to disrupt organised insurancefraud. Tackling this type of fraud is a formidable task fora relatively small team, and yet with the support of itsindustry partners, demonstrable results have beenachieved, reflecting the level of combined commitmentfrom the IFB team and the industry counter fraudcommunity.
As we progress through 2011 and look to the future,the IFB will focus on positioning its model to takefurther steps forward and very much relishes thechallenges that lie ahead. In doing so, there isrecognition that the work to strengthen the corecapability will continue and the IFB remains on a journeyfocused on delivering excellence in all that it does.
I’m proud to Chair an organisation that represents oneof the key milestones in the UK insurance industry’ssteps to counter fraud; one that has achievedwidespread endorsement from the industry, lawenforcement, regulators and Government, and not justin the UK.
Thank you to all the IFB customers and the wider anti-fraud community for your unswerving support now andin the future. Together we will help make life difficultfor insurance fraudsters and fairer for genuineconsumers.
Page 6
IFB Annual Report 2010Chairman’s Report
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 6
Page 7
Collaboration is at the heart ofthe IFB’s business philosophy;considerable time and efforthas been focused on developingstrong relationships with alignedthird parties both within andoutside of the insurance
industry.
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 7
The last year has been one of significant and visibledevelopments at the IFB.
At the core of our activity has been strengthening andenhancing the operational capability of the IFB, andpositioning the model to take a further step forward interms of supporting industry efforts to counterorganised insurance fraud. All of this has been alignedto embedding a customer centric focus on servicing ourpartners’ needs.
Milestones have included, but not been limited to:implementing a proactive network model; establishingnew services; forging closer and improved relationshipswith law enforcement and regulators, encompassingintelligence and information sharing arrangements;successfully concluding Police fraud operations andcontinued use of the media to communicate industry successes and focus on combating organised insurancefraud.
At an operational level it has been another successfulyear for the industry in its fight against organisedinsurance fraud. Our on-going collaboration with Policeforces across the UK to identify and deal with organisedcriminal activity, coupled with the active support of ourcustomers, continued to deliver demonstrable results.
Combined Police/IFB fraud operations to date haveresulted in 485 arrests, 118 criminal convictions andsentences totalling over 91 years imprisonment, forconcluded trials. There are also criminal assets that havebeen seized and confiscation proceedings forthcoming,geared to liquidate the assets. Wind back to before theIFB was formed, these were not results the industry wasachieving.
Currently, the IFB is actively involved in 25 liveoperations with 14 regional Police forces, focused onorganised insurance fraud valued at approximately£46million, and not just fraudulent claims.
Glen Marr, Director
Director’s Report
Page 8
Director’s Report
IFB Annual Report2010
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 8
We have made visible progress in disrupting theactivities of specific groups of insurance fraudsters overthe last 12 months. This has included professionalenablers – professional organisations and individualswithin them including claims management companies,law firms, doctors and motor engineers, at the heart oforganised insurance fraud. That focus very muchcontinues and our close working relationships with theMinistry of Justice and Solicitors Regulation Authority,in addition to partnerships with Police forces, are keyto future success. Every successful fraud operationprevents future fraud losses for our customers.
Last year, we worked on a joint awareness campaignwith the Ministry of Justice Claims ManagementRegulator to encourage members of the public orbusinesses working within the professional enablersector, to report suspicions or knowledge of fraud tothe IFB Cheatline. More than 57 individuals fromprofessional enablers have been arrested as a result ofIFB operations in collaboration with Police forces andfurther live operations involving this audience willhopefully culminate during 2011.
Ghost broking secured our attention during thesummer of last year and one live operation involving avery significant number of motor insurance policies hasattracted Police action and continues to do so. Thatparticular operation also saw the first collaboration ofits kind involving the Association of British Insurers,British Insurance Brokers Association, MetropolitanPolice Service and the IFB, partnering to launch acampaign to educate and help protect vulnerablecommunities targeted by organised fraudsters.
Remaining on this theme, very recently we have usedour analytical software and the consolidated industrydata pool we access, to identify residential addressesthat appear potentially connected to unusual numbersof motor insurance policies, and warned our customersof such. That exercise has also involved the IFB cross-matching to data obtained from the Serious OrganisedCrime Agency, to assist with identifying addresses thatare connected to not only insurance fraud, but widercriminality.
Other data specific to known criminals of interest toone particular law enforcement body was provided tothe IFB for the first time and cross-matched to industrydata. The matches to such were shared with affected
IFB customers and the intelligence generated as a result,relayed back to the Police to assist with disrupting theactivities of criminals.
We are actively working with the Metropolitan PoliceService on matching data relating to false identities toindustry data. This activity will undoubtedly furtherdemonstrate the value of the IFB ingesting such data inbulk and warning its insurer customers where falseidentities have been used to secure or renew cover, and/or initiate insurance claims.
In response to customer requests and as another first,we analysed industry motor data to identify policieswhich outwardly displayed indicators of fronting -another form of insurance fraud - warning each of ourinsurer partners of their individual exposures, to includethe specific policies. This exercise identified some17,000 motor policies displaying such indicators and wealso linked the policies to claims intimated, to assistinsurers in understanding the risks presented byfronting.
The industry Cheatline managed by the IFB received itshighest ever number of reports from the public in anyone month last year, and month on month the level ofreporting surpassed previous years. This directlycorrelated to our use of the media, particularly BBCNews, where on one Saturday morning, crash for cashand the work of the IFB, was headline news. In the twodays following this particular BBC coverage, we receivedmore reports through Cheatline than the volume ofreports received by Crimestoppers in London over thesame period.
In the past three years alone, in excess of 5500Cheatline reports have been made to and handled bythe IFB. The public is increasingly prepared to reportsuspicions and knowledge of insurance fraud toCheatline, and 2011 to date has seen a 22% increase inreports compared to 2010, and 2010 represented a59% increase on 2009.
The Cheatline voice-based facility was improved upon,leveraging the strategic partnership with the MIB, byestablishing capability in the MIB Police call centre tocapture voice-based Cheatline calls between Mondaysand Saturdays. All voice Cheatline calls and on-linereports continue to be fully managed by the IFB, but
IFB Annual Report 2010Director’s Report
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IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 9
the establishment of a new capability to handletelephone reports, has delivered improvements to theoverall model. The on-line Cheatline model hascontinued to be a 24/7 reporting facility and half of allreports received through Cheatline, are now on-line.
We will continue to exploit opportunities to promoteCheatline in the public domain. Not only is Cheatline asource of intelligence for the industry to combat variousforms of insurance fraud, it is also an important platformfor the public to actively interact with the industry andparticipate in reducing the level of fraud.
Our unique access to and use of a consolidatedindustry data pool of some 128million electronicrecords drawn from multiple industry databases,combined with fraud intelligence and use of analyticalsoftware, continues to form a pivotal feature of the IFBmodel.
Having procured upgraded software - Detica’sNetReveal - which we have been implementing underProject Arete, we are moving to achieve anothermilestone in the release of a web-portal to ourcustomers. This will provide on-demand access to afacility to undertake swift risk assessments and requestdetailed supporting information to assist with fraudprevention and detection activities.
A critical feature of the success of the IFB model iseffective collaboration with our customers. Recognisingthis key dependency, the IFB completed a training needsanalysis exercise, using the findings to design the firsttraining programme for customer Specific Points ofContact (SPOCs). The roll-out of the first IFB SPOCtraining programme commenced in May 2011, withfurther training sessions scheduled throughout the year.Building further on customer and industrycollaboration, we have been delighted to welcome twosecondees to the IFB team this year. Chris Lovett hasbeen seconded from LV= and Gemma O'Malleycommenced the first secondment from a defendant lawfirm, Beachcrofts, in May 2011.
IFB customer events play an important role in ensuringthat our customers are informed and involved withcurrent operational developments, as well as providinga platform for two-way communication with ourstakeholders. Customer events in September 2010 andMarch 2011 were very well attended, with writtencustomer feedback collated being positive.
In quarter 3 2010, the IFB produced its first customerbrochure and completed a branding exercisecomplementing efforts to strengthen and enhance thecore operational capability.
Recognising the increased industry desire to tacklefraud, five additional insurer customers joined the IFBcollective during quarter 4 2010 and quarter 1 2011 –Service, Southern Rock, First Central, Hastings andNovae, and we welcome them aboard.
At a wider industry level, the IFB was requested by theABI to provide support to activities with the NationalFraud Authority and City of London Police, to assemblea benefits case for submission to the ABI GeneralInsurance Committee in June 2011, for what would bean industry funded dedicated Police insurance fraudteam. Such a team would have a close workingrelationship with the IFB.
Additionally, the IFB was requested by the ABI to be thehost site for an industry proof of concept for a databaseof known insurance fraudsters – the Insurance FraudRegister (IFR). The results of the pilot are beingpresented to the ABI General Insurance Committee inJune 2011, when sign-off will be sought to enable themodel to be implemented. The proposal is for the IFBto provide a managed service to the industry for theIFR.
If both industry initiatives receive sign-off to proceed,the IFB relishes the prospect of forming an integralfeature of two further industry milestones in the fightto reduce fraud. These initiatives would complementother IFB activities.
The past 12 months have proven to be challenging,stimulating, enjoyable, rewarding and exciting,underpinned by commitment, drive and a team effort.We can see progress in our focus to enhance the coreIFB operational capability and resilience, but alsoacknowledge that there is more to be done before weare satisfied our journey is complete.
We very much look forward to meeting the challengesand seizing opportunities for the year ahead andbeyond, and importantly working in partnership withour customers. Above all and on behalf of everyone atthe IFB, a very big thank you for your support over thepast year and in the future. Finally, to everyone in theIFB team, an equally big thank you.
IFB Annual Report 2010Director’s Report
Page 10
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 10
Finances
Consolidatedfinancial statements2008-2009
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 11
IFB Annual Report 2010 Year Ended 31 December 2009Avonley Trust Company Limited Acting As Trustees For The IFB Trust
Contents
12 Contents
12 Report of the Directors
13 Chartered accountants’ independent assurance report on the unaudited
financial statements
14 Income & expenditure account
15 Balance sheet
16-19 Notes to the financial statements
Report of the Directors
The Directors are pleased to report that the Company has operated within budget during 2009 in respect ofthe activities relating to the IFB Trust. Insurer membership in 2009 comprises of 38 insurers and 6 compensators.
Ashton West, Director Dated: 7 June 2011
Page 12
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 12
We have performed certain procedures in respect ofthe Company’s unaudited financial statements for theyear ended 31 December 2009 as set on pages 14 to19, made enquiries of the Directors and assessedaccounting policies adopted by the Directors in orderto gather sufficient evidence for our conclusion in thisreport.
This report is made solely to the Company’s Directorsas a body, in accordance with the terms of ourengagement letter dated 30 May 2008. It has beenreleased to the Directors on the basis that this reportshall not be copied, referred to or disclosed, in whole(save for the Directors’ own internal purposes, copiedto the members or as may be required by law or by acompetent regulator) or in part without our priorwritten consent. Our work has been undertaken so thatwe might state to the Directors those matters that wehave agreed to state to them in this report and for noother purpose. To the fullest extent permitted by law,we do not accept or assume responsibility to anyoneother than the Company and the Company’s Directorsas a body for our work, for this report or theconclusions we have formed.
Respective responsibilitiesYou have confirmed that you have met your duty as setout in the Directors’ statement on page 15. Youconsider that the Company is exempt from anyrequirement for an audit for the year. Our responsibilityis to form and express an independent conclusion,based on the work carried out, to you on the financialstatements.
ScopeWe conducted our engagement in accordance with theInstitute of Chartered Accountants in England & WalesInterim Technical Release AAF 03/06. Our work wasbased primarily upon enquiry, analytical procedures andassessing accounting policies in accordance withGenerally Accepted Accounting Practice in the UK. Ifwe considered it to be necessary, we also performedlimited examination of evidence relevant to certainbalances and disclosures in the financial statementswhere we became aware of matters that might indicatea risk of material misstatement in the financialstatements.
The terms of our engagement exclude anyrequirements to carry out a comprehensive assessmentof the risks of material misstatement, a consideration offraud, laws, regulations and internal controls, and wehave not done so. We are not required to, and we donot, express an audit opinion on these financialstatements.”
ConclusionBased on our work, nothing has come to our attentionto refute the Directors’ confirmation that in accordancewith their responsibilities, the financial statements givea true and fair view of the state of the Company’s affairsas at 31 December 2009 and of its results for the yearthen ended and have been properly prepared inaccordance with Generally Accepted AccountingPractice in the UK.
Chartered accountants’ independent assurance reporton the unaudited financial statements“To the Directors of Avonley Trust Company Limited acting as Trustee of The IFB Trust (“the Company“).
IFB Annual Report 2010 Year Ended 31 December 2009Avonley Trust Company Limited Acting As Trustees For The IFB Trust
Page 13
Wilkins KennedyChartered accountantsBridge House, London Bridge, London SE1 9QR
Dated: 8 June 2011
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 13
Note 2009 2008(As restated)
Turnover 1,910,105 1,755,464
Administrative expenses
Wages & salaries 630,393 595,989
Other staff costs 7,615 3,236
Travel & entertainment 25,861 19,403
Website costs 1,060 21,031
Printing & stationary 6,665 6,711
Outsourced database management costs 795,450 799,832
Equipment hire & support costs 12,321 18,498
Rent & administration 35,829 25,050
Advertising & PR 68,979 61,656
Other legal & professional fees 67,543 48,124
Audit & accountancy fees 4,000 2,000
Depreciation 13,379 17,584
Insurances 17,556 17,081
Sundry expenses 9,499 2,180
(1,696,150) (1,638,375)
Operating surplus 213,955 117,089
Interest receivable 1,711 35,436
Bank charges & interest (658) (478)
Surplus for the year before tax 215,008 152,046
Taxation 2 (46,478) (35,039)
Result for the year after tax 168,530 117,007
Income and expenditure account
IFB Annual Report 2010 Year Ended 31 December 2009Avonley Trust Company Limited Acting As Trustees For The IFB Trust
Page 14
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 14
Page 15
Note 2009 2008(As restated)
Tangible fixed assets 3 15,281 23,812
Current assets
Debtors 4 1,727,290 2,106,016
Cash 987,555 271,647
2,714,845 2,377,663
Creditors falling due within one year 5 (2,366,369) (2,206,248)
Net assets 363,757 195,227
Capital & reserves 6 363,757 195,227
Statement of the Directors
We confirm that as Directors we have met our duty in accordance with our responsibilities to:
- ensure that the Company has kept proper accounting records;
- prepare financial statements which give a true and fair view of the state of affairs of the Company as at 31 December 2009 and of its result for the year
- follow the applicable accounting policies, subject to any material departures disclosed and explained inthe notes to the financial statements
Approved by the Board of Directors on 26 May 2011 and were signed on its behalf by:
Ashton West, Director Dated: 7 June 2011
Balance sheet
IFB Annual Report 2010 Year Ended 31 December 2009Avonley Trust Company Limited Acting As Trustees For The IFB Trust
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 15
IFB Annual Report 2010 Year Ended 31 December 2009Avonley Trust Company Limited Acting As Trustees For The IFB Trust
Page 16
Notes to the Financial Statements
1 Accounting policies
Accounting conventionThe financial statements relate only to activities of the Company acting as Trustee for the IFB Trust and havebeen prepared in accordance with the historical cost convention and in accordance with Generally Accepted Accounting Practice in the UK.
TurnoverTurnover represents the levies receivable, excluding value added tax, from Insurer members relating to expenditure of the financial year. Amounts which have been invoiced during the current accounting periodthat relate to expenditure of future accounting periods are excluded from turnover and carried forward asdeferred income.
2 Taxation 2009 2008(As restated)
UK Corporation Tax at 21% (2008 - 20.75%)
- Current year 46,478 35,039
- Prior years - -
Tax on profit for the year 46,478 35,039
Factors affecting the tax chargeThe tax assessed for the year is higher than the small companies’ rate of corporation tax in the UK. The difference is explained below:
Profit before tax 215,008 152,046
Profit multiplied by the small companies’ rate of
Corporation tax in the UK of 21% (2008 - 20.75%) 45,151 31,550
Effect of:
Depreciation charge in excess of capital allowances 672 2,158
Expenditure not deductible for tax 655 1,331
Current tax charge 46,478 35,039
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 16
3 Fixed assets F&F Equip Total
Cost
At beginning of year 20,000 46,947 66,947
Transfer from IDSL 4,848 4,848
Additions -
At end of year 20,000 51,795 71,795
Depreciation
At beginning of year 9,000 34,135 43,135
Transfer from IDSL -
Charge 3,000 10,379 13,379
At end of year 12,000 44,514 56,514
Net book value
At end of year 8,000 7,281 15,281
At beginning of year 11,000 12,812 23,812
4 Debtors 2009 2008(As restated)
Trade debtors 1,676,580 2,045,186
Other debtors 50,710 60,830
1,727,290 2,106,016
5 Creditors 2009 2008(As restated)
Corporation tax 100,372 53,894
Trade creditors 2,862 1,798
Other creditors 20,016 22,908
Other tax & social security 302,965 236,041
Accruals and deferred income 1,940,154 1,891,608
2,366,369 2,206,248
IFB Annual Report 2010 Year Ended 31 December 2009Avonley Trust Company Limited Acting As Trustees For The IFB Trust
Page 17
IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 17
6 Share capital and reserves
a) Share capital and investment in the IFB Trust(i) The IFB Trust is constituted with a trust capital of £10 which is controlled by the Avonley Trust Company Limited as trustee only. Accordingly, the trust capital does not appear as a beneficially owned asset within these financial statements.
(ii) The share capital of the Company does not form part of the funds within the operations of the IFB Trust and, accordingly, is not reflected within these financial statements.
b) Reserves 2009 2008(As restated)
At beginning of the year 195,227 97,075
Prior year adjustment - see note 7 - (18,855)
Profit after tax 168,530 117,007
At end of the year 363,757 195,227
The Company has no reserves that are distributable to insurer members or to its shareholder. All funds are held for the beneficial use of the activities of the operation of the IFB Trust.
7 Prior Year Adjustments
The Company was set up as a non-charitable not for profit entity and does not operate so as to produce an accounting surplus for each period. The directors were therefore of the opinion that any surplus was not taxable. Following review, it has been determined that the surpluses are in fact subject to UK tax; the period for carry back of any deficits is however extended currently to six years.
This fundamental error has been corrected by way of a prior year adjustment in order to restate the figures for the comparative period and to adjust the opening balance of reserves for the cumulative effect, as follows:
2008 2007
Taxation
As previously reported - -
Prior year adjustment 35,039 18,855
As restated 35,039 18,855
IFB Annual Report 2010 Year Ended 31 December 2009Avonley Trust Company Limited Acting As Trustees For The IFB Trust
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IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 18
7 Prior Year Adjustments (continued)
Reserves
As previously reported 249,121 97,075
Prior year adjustments - -
Taxation (53,894) (18,855)
195,227 78,220
Creditors - accruals and deferred income
As previously reported 2,152,354 1,897,354
Corporation tax 53,894 18,855
2,206,248 1,916,209
IFB Annual Report 2010 Year Ended 31 December 2009Avonley Trust Company Limited Acting As Trustees For The IFB Trust
2008 2007
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IFB Annual Accounts 2011_Layout 1 09/06/2011 11:21 Page 19
InsuranceFraud Bureau
PO BOX 49761, London, WC2R 3WZ T: 0870 850 4431E: [email protected] W: www.insurancefraudbureau.org
June 2011
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