World Confederation for Physical Therapy€¦ · World Confederation for Physical Therapy Trustees’ Annual Report & Financial Statements ... (CBR), International Classification

World Confederation for Physical Therapy

Trustees’ Annual Report & Financial Statements

For the year ended 31st December 2010

Table of Contents

Page:

Trustees’ Annual Report 1

Independent Auditor’s Report 15

Statement of Financial Activities 17

Balance Sheet 19

Notes to the Financial Statements 20

Trustees’ and Auditor’s Reports and 2010 Accounts Page 1 of 27

Reference and administrative information

Charity name: World Confederation for Physical Therapy Registered Charity Number: 234307

Address: Victoria Charity Centre, 11, Belgrave Road, London SW1V 1RB, UK (the charity moved to the above premises on 8 June 2010)

Trustees: Marilyn Moffat, President Zola Dantile, Vice President Sylvia Kambalametore Margot Skinner Sandra Thornhill Emma K Stokes Mabel Yvonne Espinel Gonzalez

Secretary General:

Brenda J Myers

Solicitors: Lockharts Solicitors Tavistock House South Tavistock Square London WC1H 9LS

Auditor: Richard Freedman FCA Statutory Auditor Suite 2 Fountain House, 1a Elm Park Stanmore, Middlesex HA7 4AU

Investment Managers:

Brown, Shipley & Co. Limited Founders Court Lothbury London EC2R 7HE

Structure, Governance and Management

WCPT is an unincorporated international professional association founded in 1951. The organisation’s objectives, membership and governance structures are contained in the Articles of Association, approved at the General Meeting of member organisations, which is held every four years. The most recent revision was approved at the 15th General Meeting in June 2003. The trustees confirm that, during the year, the confederation has complied with the provisions of the Articles of Association and current statutory requirements applicable to charities. The trustees also confirm that they have had regard to guidance issued by the Charity Commission as to operation of the public benefit requirement.

The business of WCPT is conducted through the General Meeting of member organisations, Executive Committee, regions and subgroups. The WCPT Executive Committee is the charity’s Board of Trustees. The term of office of the current Executive Committee is four years ending in June 2011, as decided at the 16th General Meeting, Vancouver, Canada, 31st May – 2nd June 2007.

The Executive Committee meets in person at least once annually and by teleconference as necessary to agree the broad strategy and areas of activity for the Confederation. It considers grant making, investment, reserves and risk management, and approves the annual budget, policies and performance. During 2010 the committee met in person twice and held six


teleconferences. The day-to-day administration and management of the confederation is delegated to the Secretary General.

An orientation of Executive Committee members (trustees) is conducted upon appointment. Resource materials are held on an Executive Committee password-protected area of the WCPT website. A reference manual developed for the induction of new members includes WCPT related information and Charity Commission brochures and information.

External relations

WCPT is in official relations with the World Health Organization (WHO) and has consultative status with the United Nations Economic and Social Council (ECOSOC) and United Nations Children’s Fund (UNICEF).

In addition to WHO, WCPT liaises and works with other international associations including the International Hospital Federation and the World Federation of Occupational Therapists. In 2010 WCPT joined the World Health Professions Alliance (WHPA) an organisation which includes the International Council of Nurses (ICN), the International Federation of Pharmacists (FIP), the World Dental Federation (FDI) and the World Medical Association (WMA).

Membership

WCPT members are national professional associations representing physical therapists/physiotherapists. At the 16th General Meeting, the number of WCPT member organisations rose from 91 to 101.

During 2010 the Asociacion Costarricense de Terapeutas Fisicos de Costa Rica was suspended due to non-payment of subscription fees. The Lithuanian Kinezitherapy Association and the Botswana Physiotherapy Association were terminated from membership of WCPT due to non-payment of subscription fees for a period in excess of 3 years.

Applications for membership from the Association Argentina de Kinesiologia (AAK), Pakistan Physical Therapy Association, Macau Physical Therapy Association and Ukranian Association of Physical Rehabilitation Specialists were considered in 2010 and these associations will be proposed for full membership at the General Meeting in June 2011.

Each member organisation has the right to be represented at the General Meeting and must attend one in two consecutive meetings.

Regions are five geographic groupings of member organisations: Africa, Asia Western Pacific, Europe, North America Caribbean and South America. Regions exist to assist the development of the profession in the geographic area.

Regions have the right to send a delegate to the General Meeting but they do not have the right to vote.

Subgroups are international physical therapy organisations that represent a specific area of professional interest. They promote the advancement of physical therapy in their field, and are organised to exchange scientific knowledge. Upon application they are approved by the Executive Committee and confirmed by the General Meeting and reconfirmed at each successive General Meeting.

Seven subgroups are now recognised by WCPT.


Subgroups have the right to send a delegate to the WCPT General Meeting but they do not have the right to vote.

Risks

The trustees have reviewed the major risks to which the Confederation is exposed and have established systems to mitigate those risks.

Objectives and activities for the public benefit

WCPT’s mission is to improve the quality of global health by representing physical therapy and physical therapists internationally, collaborating with national and international organisations, supporting communication and information exchange among regions and member organisations of WCPT and by encouraging high standards of physical therapy research, education and practice.

WCPT works on a four year cycle, beginning and ending with a General Meeting of member organisations. The meeting approves changes to articles of association, elects the President, Vice President and members of the Executive Committee (the trustees), admits members, approves subscription rates, approves professional policy and strategic directions and decides on motions submitted by member organisations. The Executive Committee agrees the priorities for the four year period within the resource constraints of the Confederation and WCPT continually reviews these priorities in light of changing circumstances. While much of the project work of the confederation is ongoing, in general, the work cycle emanating from the General Meeting is as follows: planning in year 1, project implementation in years 2 and 3 and consolidation of results for presentation to the General Meeting in year 4.

The trustees have complied with the duty in section 4 of the Charities Act 2006 to have due regard to guidance issued by the Charity Commission, including public benefit guidance.


Activities in 2010 for the public benefit

Planning, priorities, programmes and activities

Activities in 2010 related to priorities and objectives set out at the General Meeting in June 2007 for the four-year period 2007-2011 and plans agreed by the Executive Committee. Key priority areas were identified within the Confederation’s strategic areas of: education, practice and research; governance; communication, advocacy and marketing; and communication and collaboration with international and national organisations.

Education, practice and research

Objectives: • Support of ongoing programme areas: CBR, ICF and EBP • Database of experts in education, research, practice and policy • Physical therapy role in disaster management • Guidelines for standard evaluation process for recognition/accreditation • Access to lists of recognised/accredited entry-level education programmes • Regulation of physical therapy

2010 activities related to education practice and research

Community Based Rehabilitation (CBR), International Classification of Function (ICF), Evidence Based Practice (EBP)

Work continued to support ongoing programme areas and networks on CBR, ICF and EBP according to agreed plans. Achieved outcomes include updating website content and ensuring that the WCPT website remains an effective resource with relevant supporting material.

WCPT continues to partner with the ICF Research Branch of the WHO Collaborating Centre for the Family of International Classifications in Germany, in a programme of research to develop ICF core sets for specific diseases. WCPT provides a member of the steering committee and member organisations recommend relevant experts to take part in the research.

Database of experts

Development of a database of experts in education, research, practice and policy was completed and made available online via the WCPT website in May 2010. This is a new system for putting together people and organisations that need expert help with physical therapists who are experts in their field. The database of experts is a list of people who are prepared to volunteer their services to help develop the profession and for the benefit of patients/clients internationally. The database has proved instrumental in linking physical therapists with specific expertise with other physical therapists and with international organisations such as WHO.

Minimum data set

A minimum data set (MDS) of internationally significant data items, or pieces of information collected by all WCPT’s member organisations, together with a method of collection and transmission has been developed. A pilot test is planned for June 2011.

Support physical therapy role in disaster management

Further to the policy statement and supporting resources on “The Consequences of Armed Violence, Landmines and other Weapons of War” published in 2009 and pending final approval


Education, practice and research

at WCPT’s General Meeting in June 2011, pages on the WCPT website dedicated to disaster management have been developed. Key information is given on:

• what physical therapists can do in a disaster zone after the emergency • organisations involved in disaster management • how national physical therapy organisations can contribute • volunteering

WCPT additionally widely publicised calls for physical therapy volunteers via its website and e-letters, particularly following the earthquake in Haiti in January 2010.

Education

The following guideline documents were completed:

• standard evaluation process for accreditation/recognition of physical therapist professional entry-level education programmes

• delivering quality continuing professional development for physical therapists

• faculty qualifications for physical therapist professional entry-level programmes

• the clinical education component of physical therapist professional entry-level education

The guidelines will be presented for endorsement at WCPT’s General Meeting in June 2011.

Further to a motion carried at the 2007 General Meeting, WCPT has prepared a listing for the entry level professional physical therapy education programmes recognised by WCPT member organisations. This listing is available on the WCPT website.

CPD programmes were delivered by the President in Quatar, United Arab Emirates, Switzerland, Suriname, Chile, Taiwan and Jamaica.

Regulation

A WCPT “Guideline for the development of a system of legislation/regulation/recognition such as a physical therapy practice act” was prepared following consultation with WCPT’s members and will be presented for endorsement at WCPT’s General Meeting in June 2011, along with a new policy statement on professional regulation.

Policies

With the increasing number of WCPT policies and other resource materials, WCPT undertook a complete review of its policy structure and additional new policies were developed.

Direct access and self-referral

Following the policy summit in 2009 WCPT developed a resource area of the website and has undertaken a member survey on direct access to help inform knowledge in the area and the development of resource material. A new policy has also been prepared for the General Meeting in 2011.


Governance

Objectives: • Executive Committee • Planning for World Physical Therapy 2011 • Planning for General Meeting • Strengthen membership • Subgroup growth and development

2010 activities related to governance

Executive Committee

The Executive Committee met twice in person and six times by teleconference to undertake work from the General Meeting and progress activities in line with the strategic plan set in 2007.

World Physical Therapy 2011 (WPT2011)

During 2010 the following activities and planning took place to ensure a successful 2011 congress:

• monthly teleconferences of the International Scientific Committee and Core Steering Committee

• the new section of the WCPT website dedicated to congress was kept current with programme updates and addition of speakers’ biographies and photographs

• focused symposia and satellite programme education sessions were announced • abstract mentoring programme was concluded, and abstract submissions were received

and peer reviewed • six issues of the congress e-letter, Congress update were published • free congress adverts and “ready to use” congress related articles were prepared for

use by member organisations, regions and subgroups.

General Meeting (GM) 2011

During 2010 the following activities and planning took place in preparation for the 17th GM to be held in June 2011:

• call for motions and nominations for WCPT’s President and Vice President were issued in June and responses received by 17 October 2011

• a secure area of the WCPT website was created for GM delegates to access registration and related papers with registration for the meeting opening in October

Membership

Applications for membership from twelve national associations were received and reviewed in 2010. Of these seven are currently proposed for membership at the General Meeting in June 2011.


Governance

Subgroups

In addition to WCPT’s seven existing subgroups several other international organisations are working towards submitting an application for subgroup recognition in the areas of:

• electrophysical agents • education • animal physical therapy • mental health

• work and health • neuroscience • cardiothoracic physical therapy

Networks

The network of physical therapists in aquatics was established an information added to the website. The International Network of Spinal Cord Injury Physiotherapists also became a recognised WCPT network.

Communication, advocacy and marketing

Objectives: • Continuing success of WCPT website • High profile of World Physical Therapy Day • Communication with member organisations • Profile of awards programme • Directory of public relations materials • Profile of WCPT at regional, subgroup and national events

2010 activities related to communication, advocacy and marketing

Website

The WCPT website is the Confederation’s main portal to share information about physical therapy around the world. To ensure its relevancy new information is constantly added to the site ensuring it is an up to date resource for physical therapists around the world.

The number of visitors to the new site has more than doubled since its launch in April 2009. Regular review and assessment of visits to the website indicate that the following documents are consistently downloaded: WCPT policies, WCPT News (including Congress News), benefits of WCPT membership, World Physical Therapy Day materials, WCPT press releases, keynote papers (particularly those relating to ICF) and in particular information relating to World Physical Therapy 2011, such as the call for abstracts.

The following sections of the site were the most frequently visited: congress, information about Haiti earthquake, membership, publications, advertising and World Physical Therapy Day.

WCPT launched a Facebook page in the first half of 2010 with over 1,350 followers by the end of the year.



Revenue sources

Hosting GoogleAds, direct advertising on the WCPT website from a number of universities and other organisations, together with the renewal of existing subsites generated income of £3,078 during 2010.

In 2008 WCPT agreed to partner with an online provider of continuing education courses with the view to providing access to a wide range of courses to physical therapists around the world. In 2010 this generated an income of £594 for WCPT.

WCPT has entered an agreement with its member organisation in the USA, the American Physical Therapy Association, and RehabEssentials whereby WCPT receives a small contribution from international sales of their continuing education CDs.

World Physical Therapy Day

On 8 September 2010 the third World Physical Therapy Day took place within the Movement for Health theme. The emphasis continued to be on lifestyle-related diseases and disability.

The objectives for 2010 were to build on the success of the previous years and further raise the profile of World Physical Therapy Day and the role physical therapy and physical therapists play in global health. New information sheets on the contribution of physical therapists to active ageing and people with HIV/AIDS were made available freely available online for download.

Member organisations from 28 countries across all WCPT regions staged events and promoted the day within their websites. The toolkit page of the website received nearly 2,300 page hits with several documents being downloaded over 400 times. The day was greeted with much enthusiasm internationally and is proving an important date in the profession’s annual calendar.

Regular communications

Four editions of WCPT News were published in 2010. As well as being available on the website, an email is sent to over 8,000 contacts alerting recipients to its publication and highlighting key articles. WCPT News provides news and information from member organisations, regions and subgroups; as well as reports on WCPT initiatives, and opinion articles on international issues relevant to the profession. In 2010 the WPT 2011 Congress has featured highly.

The monthly WCPT e-update is now circulated to over 8,000 contacts on the WCPT database providing brief information about the work of WCPT and international initiatives relevant to physical therapists.

Congress update, the WPT2011 specific e-letter first issued in July 2009, is circulated to all member organisations, regions and subgroups as well as all individuals who have registered to attend or expressed an interest in the forthcoming Congress. It gives the latest information and events surrounding World Physical Therapy 2011. The frequency of publication increased from once every two months to once a month towards the end of 2010.



Awards programme

Based on recommendations from the Awards Committee, following a review of nominations received from member organisations, the Executive Committee decided on award recipients to be honoured at the time of the General Meeting in June 2011. The recipients will be announced at a gala dinner to celebrate WCPT’s 60th anniversary which is being held at the time of the WCPT General Meeting.

The WCPT awards programme recognises outstanding contributions and leadership made by individual physical therapists and groups to the profession and/or global health at an international level.

Public relations materials

Following from a decision at the 2007 WCPT General Meeting, several member organisations have now agreed to share public relations materials and in 2010 a new section of the WCPT website was set up dedicated to this. This has the potential to be most beneficial to those member organisations with very limited resources are available to put together high quality public relations and publicity materials that will help members raise the profile of their profession, and campaign and advocate on behalf of themselves and their patients/clients.

Representation

At the invitation of member organisations, subgroups, regions and external organisations, the President, Secretary General, Executive Committee members and designates participated in national and international conferences and meetings including:

• National conferences/meetings of the American Physical Therapy Association, Australian Physiotherapy Association, Cambodian Physical Therapy Association, Canadian Physiotherapy Association, Koninklijk Nederlands Genootschap Voor Fysiotherapie (Netherlands), Deutscher Verband fuer Physiotherapie (Germany), Federation Francaise des Masseurs Kinesitherapeutes Reeducateurs (France), Fiji Physiotherapy Association, Indonesian Physiotherapy Association, Irish Society of Chartered Physiotherapists, Physiotherapy New Zealand, Associação Portugesa de Fisioterapeutas (Portugal), Singapore Physiotherapy Association, Schweizer Physiotherapie Verband (Switzerland); Ukrainian Association of Physical Rehabilitation Specialists and Chartered Society of Physiotherapy (UK)

• Meetings of the Africa region, European region, North America Caribbean region and South America regions

• Meetings of CEOs of WCPT organisations

External meetings at which WCPT was represented:

• WHO regional meetings for Europe, Africa, South East Asia (Region), Western Pacific (Region), Pan America Health Organisation

• WHPA’s Second World Health Professions Conference on Regulation

• WHO meeting (iCamp) on the functioning component for the ICD-11 Meeting of the Education Committee of the WHO Family of International Classifications Network



• The WHO Functioning and Disability Reference Group meetings and the WHO Family of International Classifications Network meeting in Toronto

• WHPA workshops in Nigeria and Costa Rica on tackling counterfeit medicine

• WHPA meetings of CEOs and Presidents

• UN/DPI NGO conference, Australia

• World Medical Association General Assembly

Communication and collaboration with international and national organisations

Objectives: • Visible partner in at least two international projects/events • Contribute to work of other international health organisations • Develop relationship with WHO

2010 activities related to collaboration with international and national organisations

World Report on Disability and Rehabilitation

WCPT provided comments on drafts of the report and awaits publication in 2011.

Health workforce and positive practice environments

WCPT has continued its work with the International Council of Nurses, the International Hospital Federation, the International Pharmaceutical Federation, the World Dental Federation and the World Medical Association to deliver a positive practice environments (PPE) campaign. PPE resources have been made available on the WCPT website in 2010.

WCPT plans to attend the Second Global Forum on Human Resources for Health in Bangkok, Thailand in January 2011. It will be jointly convened by the Global Health Workforce Alliance, the Prince Mahidol Award (PMA) Conference and the World Health Organization.

Regulation

Following the success of the first-ever inter-professional and international conference on the regulation of health professionals in Geneva, Switzerland in May 2008, the second conference was convened by the World Health Professions Alliance (WHPA) and WCPT and took place in February 2010.

World Health Professions Alliance

In May 2010 WCPT became a member of WHPA which brings together dentistry, medicine, nursing and pharmacy through their representative international organisations; the International Council of Nurses, the International Pharmaceutical Federation, the World Dental Federation and the World Medical Association. WHPA’s current projects include an international campaign against counterfeit medicine, collaborative practice and non-communicable diseases.


Communication and collaboration with international and national organisations

By joining WHPA, a global voice for health professionals, WCPT believes physical therapists will have more influence on campaigning issues, and will have new opportunities to inform initiatives that could benefit millions of patients and service users. WHPA enables a pooling of resources and expertise making WCPT more able to tackle global health issues more effectively and ensure that patients/clients and health care systems benefit

WHO

Throughout 2010, work was carried out to further develop WCPT’s relationship with WHO.

Other international campaigns

WCPT supported international campaigns such as the International Day of Persons with Disabilities, International coalition marking World Day for the Prevention of Child Abuse and World Aids Day by bringing attention to them and their ongoing work and projects via its website and newsletters.


Financial review Activities are funded through an annual membership subscription, donations and proceeds from a congress held every four years. The membership subscription rate is set at the General Meeting of member organisations. The rate for 2010 was £1.26 per member of each member organisation and £0.63 per member in countries where the GNI per capita is less than US$3000 per year). Donations of £838 were received during the year, which the trustees have decided to apply towards the creation of a new grants fund.

For the year under review, the average income yield on investments was 3.22%. During 2010 the investment managers continued the policy of holding and, whenever possible, increasing investment in securities which were deemed most likely to provide recovery potential for the portfolio, in the generally improving financial markets which prevailed during the year. The trustees consider that the resultant investment performance in 2010, being a net increase in value of £8,751 and realised gains of £1,090 was acceptable.

The Statement of Financial Activities for 2010 shows net outgoing resources of £134,885.

Reserves

WCPT’s policy states that reserve levels will be reviewed every four years and will be a minimum of 25% of annual budgeted expenditure of the year following a General Meeting with target of 100%.

Transfers to reserves are approved annually by the Executive Committee after consideration of the current year’s draft management accounts and the budget for the period to the next General Meeting. The transfer will be identified in drawing up the annual budget as a separate category.

As in previous years, and in accordance with the policy set by the trustees, a further £10,000 was transferred from the general fund to the general reserve. At the end of 2010 the general reserve stood at £275,000 representing 66% of 2008 budgeted expenditure. The free reserves as at 31 December 2010 were £487,452.

In 2010 the trustees approved the transfer of £838 from the general fund to the grants fund established to further the work of WCPT and support full participation in WCPT activities.

Investment policy

The trustees invest the confederation’s funds in excess of current cash flow requirements with the objective of preserving the real value of capital and generation of income. The investment portfolio is managed on a low risk basis by investment managers appointed by the trustees.

Plans for future periods At the 16th General Meeting in June 2007 a range of motions from the Executive Committee and member organisations were considered. In October 2007 the Executive Committee reviewed the decisions, ongoing work and strategic plan agreed in 2003. The priorities below were set for 2007-2011 and work has been ongoing in all areas. In 2011, following decisions made at the 17th General Meeting and building on work of the previous period, a plan for 2011-2015 will be developed.


Professional policy: education, practice and research

• Model registration/practice act. • Guidelines for the evaluation of education programmes, patient/client documentation

and patient/client satisfaction. • Support for the development of physical therapy education and services in underserved

areas. • Databases of experts in practice, education and research. • Support for physical therapists in disaster management.

Governance

• Human and technical resources to fulfill goals and objectives of the organisation. • Review of the General Meeting process. • Financial stability and development of new revenue sources.


• Maximum use of IT and redevelopment of the website. • Tools to increase the profile of WCPT with member organisations.

Collaboration with WHO and international organisations

• Continue to build the international profile of WCPT and physical therapy through collaborative relationships with WHO and other international agencies.

Statement of trustees’ responsibilities in relation to the financial statements The trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing the financial statements, the trustees are required to:

• select suitable accounting policies and apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any 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 that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 1993, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

The charity’s auditor, Richard Freedman, Chartered Accountant and Statutory Auditor, has intimated his willingness to continue in office, subject to the approval of the Executive Committee.

Approval

This report was approved by the trustees on 24th May 2011 and signed on their behalf by:

Marilyn Moffat President


Report of the independent auditor to the trustees of the World Confederation for Physical Therapy

I have audited the financial statements of World Confederation for Physical Therapy for the year ended 31 December 2010 on pages 17 to 27. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charity’s trustees, as a body, in accordance with section 43 of the Charities Act 1993 and regulations made under section 44 of that Act. My audit work has been undertaken so that I might state to the charity’s trustees those matters I am required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the charity and its trustees as a body, for my audit work, for this report, or for the opinions I have formed.

Respective responsibilities of trustees and auditor

As explained more fully in the Trustees’ Responsibilities Statement, the trustees are responsible for the preparation of financial statements which give a true and fair view.

I have been appointed as auditor under Section 43 of the Charities Act 1993 and report in accordance with regulations made under Section 44 of that Act. My responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require me to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of whether the accounting policies are appropriate to the charity’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustee; and the overall presentation of the financial statements .In addition, we read all the financial and non-financial information in the trustee’s annual report to identify material inconsistencies with the audited financial statements. If we become aware of any material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In my opinion the financial statements:

• give a fair and true view of the state of the charity’s affairs as at 31 December 2010 and of its incoming resources and application of resources in the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 1993.


Matters on which I am required to report by exception

I have nothing to report in respect of the following matters where the Charities Act 1993 requires me to report to you if, in my opinion:

• he information given in the Trustee’s Annual Report is inconsistent in any material respect with the financial statements; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• I have not received all the information and explanations I require for my audit.

Richard Freedman Chartered Accountant Statutory Auditor Suite 2, Fountain House 1a Elm Park Stanmore Middlesex HA7 4AU

August 2011

Richard Freedman Chartered Accountant is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006


Statement of financial activities for the year ended 31 December 2010

Unrestricted funds

£

Restricted funds

£

Total funds 2010

£

Total funds 2009

£ Incoming resources Incoming resources from generated funds:

Voluntary income: Donations 838 - 838 2,284Activities for generating funds: Publication sales and subscriptions 15 - 16 -Website advertising income 3,078 - 3,078 4,260Continuing education fees 594 - 594 931Investment income (note 2) 9,429 220 9,649 20,053Income resources from charitable activities:

Membership subscriptions 399,980 - 399,980 371,353Other income (note 3) 27,834 - 27,834 1,728Total incoming resources 441,768 220 441,988 400,609 Resources expended Costs of generating funds: Investment management fees 588 - 588 575Website advertising costs 211 - 211 65 799 - 799 640 Charitable activities: (note 6) Member services 319,833 - 319,833 295,519Education, practice and research 73,268 - 73,268 57,557Communication 35,408 - 35,408 31,326Collaboration with national and international organisations 59,785 - 59,785 30,054 488,294 - 488,294 414,456Governance costs (note 7) 87,780 - 87,780 69,490 Total resources expended 576,873 - 576,873 484,586 Statement of financial activities continues on page 18


Statement of financial activities for the year ended 31 December 2010 (cont/d)

Unrestricted funds

£

Restricted funds

£

Total funds 2010

£

Total funds 2009

£ Net outgoing resources before other recognised gains and losses (note 8) -135,105 220 -134,885 -83,977 Other recognised gains and losses

Profits on investments Realised profits 1,090 - 1,090 319Unrealised profits (note 12) 8,751 - 8,751 18,622Total profits/(losses) on investments 9,841 - 9,841 18,941 Net movement in funds -125,264 220 -125,044 -65,036 Fund balances at 1st January 612,716 8,810 621,526 686,562 Fund balances at 31st December (notes 16, 17) 487,452 9,030 496,482 621,526 There were no recognised gains or losses for 2010 or 2009 other than those included in the Statement of Financial Activities. The notes on pages 20 to 27 form part of these financial statements.


Balance sheet at 31 December 2010 2010

£ 2009

£ Fixed assets: Tangible assets (note 11) 17,914 6,003Investment assets (note 12) 391,960 531,367Total fixed assets 409,874 537,370 Current Assets: Debtors (note 13) 66,550 15,900Cash at bank and in hand 180,634 189,942Total current assets 247,184 205,842 Liabilities: Creditors: amounts falling due within one year (note 14) -160,576 -121,686 Net current asset 84,156 Net assets 86,608 84,156 The funds of the charity: Restricted income fund (note 16) 9,030 8,810Unrestricted income funds (note 17) 487,452 612,716 Total charity funds (note 18) 496,482 621,526 Approved by the Board of Trustees and signed on its behalf by:

Original copy signed and held at WPCT office

……………………………………………. …………………………………………….. Emma Stokes Marilyn Moffatt Honorary Treasurer President 31 August……………………...... 2011 31 August…………………………… 2011 The notes on pages 20 to 27 form part of these financial statements.


Notes to the financial statements for the year ended 31st December 2010

1. Accounting policies

1.1 Basis of accounting

The financial statements are prepared under the historical cost convention with the exception of investment assets, which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (SORP 2005), The Charities Act 1993 and applicable UK accounting standards.

1.2 Incoming resources

All incoming resources are recognised when the charity is legally entitled to the resources. Donations are credited to income when received.

1.3 Resources expended

Liabilities are recognised as resources expended when there is a legal or constructive obligation committing the charity to the expenditure. Expenditure is accounted for on an accruals basis, inclusive of VAT which cannot be recovered.

Costs of generating funds include investment management fees.

Overhead and support costs, including staff costs, have been allocated first between charitable activity and governance on the basis of staff time. Overhead and support costs relating to charitable activities have been apportioned on the basis of staff time. The allocation of overhead and support costs is analysed in note 5.

Grants payable are payments made to third parties in furtherance of the charitable objectives of the Confederation. Grants are accounted for when the trustees have agreed to pay the grant without condition.

1.4 Pension costs

The Confederation contributes to money purchase schemes. Pension costs payable are charged to the Statement of Financial Activities as incurred.

1.5 Operating Lease

Rent payable in respect of the lease commitment for the Confederation’s office premises is charged to the Statement of Financial Activities as incurred.

1.6 Tangible fixed assets

Individual fixed assets costing £100 or more are capitalised at cost.

Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost on a straight line basis over their expected useful economic lives as follows:

Office furniture and equipment 25%- straight line basis

Computer equipment 25%- straight line basis


The useful economic lives and residual values of fixed assets are reviewed at the end of each accounting period and, where there is a material change, the value of the asset is depreciated over its remaining useful life.

1.7 Investments

Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals during the year.

1.8 Funds

Unrestricted Income Funds

The General Fund may be used at the Confederation’s discretion, for the objectives contained in the Articles of Association.

The General Reserve has been established to safeguard the Confederation in the event of unbudgeted expenditure arising as a result of unforeseen circumstances and to recognise costs which would be incurred on a winding-up of the Confederation. The trustees may make transfers between the General Fund and General Reserve as considered appropriate in the light of the Confederation’s financial resources.

The Grants Fund has been established to further the work of WCPT and support full participation in WCPT activities. The trustees may make transfers between the General Fund and Grants Fund as considered appropriate in the light of the Confederation’s financial resources.

Restricted Income Fund

The Mildred Elson Award Fund may make awards to physical therapists who have contributed significantly to the development of the profession on an international basis.

1.9 Foreign Currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the transaction date. Exchange differences are taken into account in the Statement of Financial Activities.

1.10 Congress

Congress is held every four years in financial partnership with the host member organisation. Expenditure incurred by WCPT in the financial periods prior to the year Congress is held is treated as outgoing resources in the Statement of Financial Activities. In the financial period when Congress is held, reimbursement of expenditure previously incurred, together with WCPT’s share of the financial result of the Congress is shown in the Statement of Financial Activities.


2. Investment income 2010

£ 2009

£ Managed funds 3,806 4,322Bank and other interest 4,843 15,731 9,649 20,053

3. Other Income

Congress 2011 management fee 27,834 -Congress 2003 exhibition income overpaid - 1,728 27,834 1,728

4. 2011 Congress

The financial results of the 2011 Congress, analysed by WCPT financial year, are as follows:

Year ended 31 December Expenditure

Result per accounts

£ £ 2010 -62,431 -62,4312009 -69,203 -69,2032008 -5,089 -5,0892007 -7,233 -7,233

-143,956 -143,956

5. Allocation of support costs and overheads

Total

allocated Governance Charitable activities

Basis of apportionment

£ £ £ Staff costs 142,760 40,502 102,258 Staff time Office rental and overhead costs 18,243 5,176 13,067 Staff time Depreciation 3,222 914 2,308 Staff time 164,225 46,592 117,633


6. Analysis of expenditure on charitable activities

Direct costs

Support costs

Total 2010

Total 2009

£ £ £ £ Member services 249,253 70,580 319,833 295,519Education, practice and research 49,741 23,527 73,268 57,557Communication 23,645 11,763 35,408 31,326Collaboration with national and international organisations 48,021 11,764 59,785 30,054 370,660 117,634 488,294 414,456

Member services direct costs include £62,431 expended in connection with the 2011 congress (2009: £69,203).

7. Governance costs

2010 £

2009 £

Staff costs 40,502 29,348Office rental and overheads 5,176 3,932Depreciation 914 340Executive committee and general meeting costs 33,790 29,995Auditor’s remuneration 7,398 5,875 87,780 69,490

8. Net outgoing resources

2010 £

2009 £

Net outgoing resources are stated after charging: Depreciation 7,801 3,068Auditor’s remuneration - audit - non audit

7,398 5,947

5,875 4,213


9. Total staff costs

2010 £

2009 £

Salaries & other staff costs 297,856 227,154Social security costs 29,318 21,602Contributions for the provision of money purchase pension benefits 18,410 16,356 345,584 265,112Average number of employees during the year: 7 (2009: 6) Number of employees whose remuneration fell within the following range & for whom retirement benefits are accruing under a money purchase pension scheme: £90,001 - £100,000

1

Pension contributions 11,310 10,759

10. Trustees expenses and remuneration

2010 £

2009 £

Travel, subsistence, accommodation & internet provision - 7 trustees (2009:7) 45,702 30,200

Neither the trustees nor any persons connected with them have received any remuneration during the year (2009: nil)

11. Tangible fixed assets

2010 £

2009 £

Computer equipment & furniture Cost

At 1st January 20,361 16,335Additions 4,130 4,026At 31st December 24,491 20,361 Depreciation At 1st January 14,358 11,290Charge for year 3,905 3,068At 31st December 18,263 14,358 Net book value At 31st December 6,228 6,003


2010 £

2009 £

Leasehold improvements Cost

At 1st January - -Additions 15,582 -At 31st December 15,582 - Depreciation At 1st January - -Charge for year 3,896 -At 31st December 3,896 - Net book value At 31st December 11,686 -

12. Fixed asset investments

2010 £

2009 £

Listed investments Market value of managed funds at 1st January 109,658 94,997Acquisitions 23,155 3,904Disposals -14,484 -7,865Net profit on revaluation 8,751 18,622Market value of managed funds at 31st December 127,080 109,658Cash held as part of the investment portfolio 5,681 9,356Bank of Scotland Guaranteed Deposits with maturity dates of less than1 year

259,199 412,353

391,960 531,367 Managed funds comprised the following investments: IFDS Brown Shipley Funds UK Flagship Fund Inc 59,914 53,779IFDS Brown Shipley Funds Sterling Bond Inc 21,403 21,664 Artemis Unit Trst Mgrs Income 10,684 9,992Royal London Corporate Bond Trust 6,680 6,430Blackrock Asset Mgmnt UK Absolute Alpha P - 3,950SVM Global Fund 3,712 3,309Rensburg Mid Cap Growth Trust - 10,534Ishares MCSI America 7,623 -Mellon Investment Funds Newton UK Opps Inc 13,171 -Ruffer LLP Total Return O Inc 3,893 - 127,080 109,658


13. Debtors: amounts due within one year

2010 £

2009 £

Subscriptions in arrear 4,739 6,581Other debtors 38,855 3,029Prepayments 22,956 6,290 66,550 15,900

14. Creditors: amounts due within one year

2010 £

2009 £

Subscriptions in advance 108,425 85,077Other creditors 3,370 1,187Accruals 48,781 35,422 160,576 121,686

15. Operating lease

2010 £

2009 £

At 31st December 2010, the Confederation's commitment for the following year under its premises operating lease was:

For lease expiring after 5 years 28,334 6,288

16. Restricted income funds

Balance at 1 January

2010 £

Incoming funds

£

Funds Used

£

Realised profits

£

Unrealised profits

£

Balance at 31 December

2010 £

Mildred Elson Award Fund

8,810 220 9,030

17. Unrestricted income funds

Balance at 1 January

2010 £

Incoming funds

£

Funds Used

£

Realised gains

£

Unrealised gains

£

Transfers

£

Balance at 31 December

2010 £

General fund 330,063 441,768 576,873 1,090 8,751 -10,838 193,961 General reserve 265,000 - - - - 10,000 275,000 Grants fund 17,653 - - - - 838 18,491 612,716 441,768 576,873 1,090 8,751 - 487,452


18. Total funds at 31 December 2010

Unrestricted funds

£

Restricted funds

£

Total funds

£ Tangible fixed assets 17,914 - 17,914Fixed asset investments 391,960 - 391,960Current assets 238,154 9,030 247,184Current liabilities -160,576 - -160,576Total net assets 487,452 9,030 496,482

Unrealised profits on investments included above: 4,251 - 4,251

Documents

World Confederation for Physical Therapy€¦ · World Confederation for Physical Therapy Trustees’ Annual Report & Financial Statements ... (CBR), International Classification