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Annual Report & Accounts 2022
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Notice of Annual General Meeting
Notice is hereby given that the 34th Annual General Meeting of the British International Freight Association (BIFA) will be held on Thursday 25 May 2023 at 12:00pm at 8 Eastcheap, London EC3M 1AE in order to:
4. In accordance with the Association’s Articles to note and approve the election of Officers of the Association. 5. Transact any other business which may properly be transacted at an Annual General Meeting.
A BIFA Member may nominate an attendee although there will be a limit on numbers once a quorum is achieved. Please email s.hammond@bifa.org Note: Any Member entitled to vote at the above meeting may appoint a proxy to vote on a poll in his stead. A proxy need not be a Member of the Association. A form of proxy is available to download from the BIFA website www.bifa.org
1. Receive the Report of the Board of Directors. 2. Receive the accounts for the year ended 31 December 2022 and the Report of the Auditors thereon. 3. Appoint Auditors and authorise the Board to fix their remuneration.
Steve Parker, BIFA Director General 31 March 2023
Contents 4-5 President’s Report 6-7 N ational Chair’s Report 8-9 Director General’s Report 10-16 Y ear in Review 17 R eport of the Board of Directors on the Accounts
18-19 R eport of the Independent Auditors 20-27 Financial Statements Back B IFA Structure Chart
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BIFA Annual Report & Accounts 2022 | bifa.org
bifa.org | BIFA Annual Report & Accounts 2022
President’s Report Sir Peter Bottomley, MP
Once again, as the President of BIFA, it gives me great pleasure to introduce the trade association’s Annual Report for 2022, which showcases some of the work done by BIFA to help members deal with the issues that affected the sector during the year and needed to be addressed. And what a tumultuous year it was, in which Britain’s freight forwarding and logistics industry continued to face uncertainties, but proceeded calmly, delivering the goods. In my introduction for the 2021 annual report, I made mention of all the new rules and policies that were scheduled to come into place over the course of 2022 concerning trade between the EU and Great Britain, and the ongoing impact that COVID-19 was likely to have on global supply chains. The pages of this report contain plenty of evidence on how those issues continued to influence the work of BIFA and its members during the year. Things did seem to start calming down a little towards the end of 2022, although there was still some uncertainty about the effect on cross border movements of the more stringent rules covering customs processes and declarations, and the move from CHIEF to CDS. 2022 saw a lot of preparations being made for important topics that will influence members’ business activities going forwards. Some of this was regulatory like CDS Exports, ICS2 and NCTS5, and some was ongoing as with the continuing scrutiny of the Northern Ireland trading arrangements. In 2022, BIFA remained committed to supporting the Government in shaping practical solutions to the issues that lie ahead but did not underestimate the scale of the challenges that we still faced from both EU Exit and macroeconomic issues on a global scale such as recession, increased interest rates, rampant inflation and the awful situation in Ukraine. All of which had and will continue to have a significant impact on the work BIFA members do to manage much of Britain’s visible international trade and the supply chains that underpin it.
One of the biggest changes in 2022 saw Robert Keen ending his eight-year stint as our Director General and announcing his intention to hand over the baton to Steve Parker from the beginning of 2023. Robert’s leadership has been outstanding since he was appointed Director General in 2014. He has been at the helm of the trade association during a very turbulent period for its members, in light of the constant changes to trading conditions caused by Brexit; the COVID-19 pandemic and government policy. He leaves behind a tremendous legacy of achievement and has provided the leadership that has enabled the trade association to support its members in their efforts to secure their development in the global economy against a background of ever-changing challenges, customer demands and new legislation. BIFA ended 2022 in excellent shape with significant momentum and a clear strategy that has the trade association well positioned to fulfil its role of providing effective representation and support for the UK and international freight services industry. Much of that is down to the leadership provided by Robert, and as BIFA President, I would like to thank him for that, as well as all of the Secretariat, Policy Groups and Regional Groups for the work that they did in 2022, much of which is covered in this Annual Report, which is once again an informative and useful read.
In 2022, BIFA remained committed to supporting the Government in shaping practical solutions to the issues that lie ahead but did not underestimate the scale of the challenges that we still faced from both EU Exit and macroeconomic issues on a global scale such as recession, increased interest rates, rampant inflation and the awful situation in Ukraine.
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BIFA Annual Report & Accounts 2022 | bifa.org
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National Chair’s Report Rachel Morley
2022, marked my first complete year as BIFA National Chair having been elected to succeed John Stubbings in May 2021. Once again, the contents of the 2022 Annual Report provide a clear illustration that BIFA continued to provide the UK’s freight forwarding and logistics sector with wide and effective representation and support throughout the year as that community continued to underpin the country’s international trading efforts. The interaction between BIFA’s Secretariat and Policy Groups; and stakeholder groups in government and elsewhere, on behalf of the membership, is covered in great depth within the pages of this Annual Report. The work undertaken by BIFA during 2022 to facilitate discussions on issues and policy, communicating and providing information at various levels, to deliver advice, guidance and support services that really help the membership, is also well documented here. In 2022, the impact of EU-Exit and the COVID-19 pandemic continued to have a significant impact on members’ work, and the actions taken by BIFA to help, receives comprehensive coverage.
In my contribution to the 2021 annual report, I wrote about some of the measures that BIFA had started to take in regards to environmental and sustainability issues within logistics. 2022 saw further discussions about the need to develop and strengthen an environmental portfolio for the trade association. It was agreed that an appointment of an expert on the subject would be a valuable addition to the Policy and Compliance Department within the Secretariat and budget approval was given for this. The year saw the addition of a carbon footprint measurement tool to BIFA’s website in recognition of the attention that this important subject is attracting, and we also commenced discussions with Pledge, an integrated carbon measurement and offsetting platform, to help members better understand and address the environmental issues that affect how they manage international supply chains. Those discussions led to BIFA agreeing to work with Pledge in a cooperation that sees the latter providing BIFA with some of the resources that will help to support members in their journey to having operations that are more environmentally sustainable. Those resources are designed to guide members on what to do to address the tasks at hand, rather than how to do it. They address what needs to be considered as the main environmental issues, and the challenges they pose; whilst providing guidance on the steps that members should take to launch an environmental policy or enhance an existing one.
As National Chair, I am delighted that BIFA continued to have a strong presence within FIATA, the freight industry’s global association, during 2022. BIFA continued to hold three senior FIATA posts: The MTI Chair, The Customs Institute Chair and the Secretary General post. We also had representation on Working Group Sea and the Advisory Body Legal Matters. This ongoing level of involvement helped BIFA to influence FIATA policy during 2022, hopefully for the benefit of BIFA members, as well as contribute to the transition that is taking place within FIATA’s own organisation.
To sign off, I encourage you to read the Director General’s report now and then gain a good understanding of how BIFA’s Secretariat, Policy Groups, Regional Committees and Representatives continued to provide excellent services and support to members, by reading the Year in Review section of the 2022 Annual Report.
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Director General’s Report Robert Keen
2022 presented many challenges for BIFA and its members, as outlined in other sections of this Annual Report, which highlights some of the excellent work that was undertaken in several areas. The year marked the end of an era as a new Director General for the trade association was chosen after I decided early in 2022 that it was time for a change at the top with a new person in place to lead BIFA. 31st December 2022 marked my last day as Director General after nearly eight years in the role. My passion for the industry and my privileged role in representing BIFA members had not dimmed. However, having joined the forwarding sector in 1970, 2022 marked 52 years of service to the freight industry. A good time to pass on the baton to Steve Parker, a safe pair of hands who, for the past few years, has been a non-executive director of BIFA. He was the National Chair from 2011 to 2013, so BIFA members can be assured the new Director General from 2023 knows the ethos and aims of BIFA very well. 2022 saw a continuation of the theme of post-COVID recovery and resilience, and during the year a frequent refrain we’ve heard from members, and something that I have often said, is that ‘the only thing you can expect in the supply chain is the unexpected.’ But, one thing that was entirely expected was the range of problems surrounding the replacement of CHIEF with CDS for processing Customs entries and, as of mid-November, multifaceted issues continued to face members resulting in many calls to the Secretariat asking for help and more action in our ongoing discussions with HMRC. The picture was mixed, but throughout the year many BIFA members expressed their frustration at having to use a service which they felt was more cumbersome to use, less reliable than its predecessor and added significant costs in both time and money to their operations. Clearly members did not care which part of the system was at fault, they just wanted someone to take responsibility and make sure that the service as a whole worked, and this was certainly the tone of BIFA’s significant and lengthy discussions with the relevant parts of government throughout 2022.
As the year entered its final quarter, as well as increasing costs, other trade headwinds were challenging UK businesses, with industrial action slowing goods’ transit through ports, Government IT system errors complicating already clunky trade processes, and looming public-sector worker strikes adding to day-to-day disruptions to economic activity, as well as the work of BIFA members. None of which was welcome news for those members that are, to a large extent, responsible for managing the supply chains that underpin the UK’s international goods trade. BIFA ended 2022 without some of the big changes we have been through in the recent past. Import CDS seemed to be settling down much to the relief of Robert Windsor and his team who continued to grapple with issues related to EU Exit, CDS, the Northern Ireland trading arrangements and many other legislative changes during the year. Whilst CDS for Export declarations was on the horizon, December brought the news that HMRC had postponed the deadline for that move, until 30 November 2023, eight months later than previously announced. At the time, it seemed like a good opportunity to remind readers that our online CDS training course covers not only import CDS but export CDS as well. Finally, as someone heading into partial retirement at the end of 2022, it feels like my working life has passed in the blink of an eye. The year closed with me still feeling that BIFA is an integral part of a fantastic community and although our profile is often low it’s a sign that forwarders get on with the tasks at hand quietly, under the radar, which means that we are doing the job well.
One thing that was entirely expected was the range of problems surrounding the replacement of CHIEF with CDS for processing Customs entries and, as of mid-November, multifaceted issues continued to face members resulting in many calls to the Secretariat asking for help and more action in our ongoing discussions with HMRC.
CDS
CHIEF
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Year in Review
Via the provision of a ‘Helpdesk’ function, BIFA continued to engage with its membership informally throughout 2022, whilst having more formal engagement via its main Policy Groups, the Regional Groups and the Young Forwarder Network.
In addition to the day-to-day work undertaken by the staff in BIFA’s Secretariat, the trade association recaps the activities of BIFA’s Air, Customs, Maritime, Road & Rail, and Legal & Insurance Policy Groups over the course of the year in this section of the Annual Report 2022.
The increased workload resulting from the UK leaving the EU continued to heap pressure on members, and the trade association did its utmost to help members address the challenges presented by the tough operating conditions, by providing advice and information about national and international supply chain issues that could assist members to develop processes that could help them to address those issues. 2022 was a very busy year for the Policy and Compliance Department as it was required to deal with challenges that came from many different angles, including recent events stemming from Brexit; ongoing issues such as the implementation of the Customs Declaration Service (CDS); as well as longer term future events such as development of the Single Trade Window (STW). One thing which should never be under-estimated is the extended length of time over which some of the work occurs. For instance, the Customs Declaration Service (CDS) which came to the fore in 2022, has been exercising BIFA’s attention for over nine years. The year saw more attention paid to long term future events such as the Single Trade Window (STW), and the thorny matter of the environment, which will affect all modes and activities.
The Policy Groups continued to assist with the delivery of guidance and direction for the Association and its Secretariat throughout the year, managed and administered by the Policy & Compliance team and the executive management of the Secretariat. The policy group chairs are responsible for reporting to the BIFA Council, and BIFA acknowledges and appreciates the time and effort put in by the members of each policy group on an entirely voluntary basis, making an important contribution to the trade association’s work in 2022. The engagement of regional consultants at the local level continued to take place via virtual and actual meetings. These enabled responses to member enquiries to be delivered as appropriate. At the same time those consultants were able to liaise with the BIFA Secretariat to obtain specialist assistance when necessary or request that the issue at hand was addressed and responded to by government, or other stakeholders. The year shaped-up to be very challenging for the freight forwarding sector, and BIFA’s membership had to continue to address generic issues, common to many sectors, such as shortages of experienced staff, as well as specific issues affecting the work of BIFA members managing global supply chains across all modes, such as ongoing inflated freight rates across all modes, and shortage of capacity in transport and warehousing.
During 2022, with the lifting of COVID-19 restrictions, there was a welcome return of face-to-face meetings with members, government departments and other organisations.
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bifa.org | BIFA Annual Report & Accounts 2022
Year In Review On the Surface and In the Customs Arena
Year In Review In the Air and Legal & Insurance Matters
Monitoring the move to competency- based training for Dangerous Goods by Air also occupied the time of the policy group during the course of 2022.
In the road freight sector, work continued to assess the likely impact of the imposition of the EU mobility package on freight flows.
In the Customs Arena It came as no surprise that this was a very busy year for the Customs Policy Group in light of the wide array of changed business practices that impacted Customs processing activities following the UK’s exit from the EU. The policy group met 12 times during the year; seven of which were bi-lateral meetings with HMRC to discuss CDS-related issues; whilst five were scheduled meetings dealing with all aspects of customs activities - four online and one in-person. Specific subjects related to HMRC which were addressed during the year included issues with the Goods Vehicle Movement Service (GVMS), which required regular engagement with the relevant team to improve matters. This remained ongoing at the end of 2022 and we are likely to see further HMRC system development during much of the year that follows this annual report. Other areas of activity addressed the impact of ICS2 on imports into the EU from the UK; as well as DEFRA- related activity including feeding into discussions regarding the Target Operating Model.
There was also ongoing engagement with HMRC regarding CDS implementation to address technical issues, methods of payments, user support and implementation timelines including discussions which eventually allowed members longer timeframes, in specific circumstances, to use CHIEF. The year saw the early stages in the preparation for the implementation of NCTS5; and ongoing liaison with the Cabinet Office and HMRC concerning the intentions about the implementation of the planned Single Trade Window.
In The Air The Air Policy Group held four formal meetings during 2022, three online and one in person, and a number of topics were discussed.
Specific issues connected with import collections at London Heathrow were a regular subject of discussion for the policy group. From a generic perspective, the policy group continued to work with the Secretariat to advise members regarding BIFA Training and Young Forwarder Network (YFN) events related to air cargo; the impact of ICS2 and other Customs-related matters on the air mode; as well as discussing environmental matters connected with this mode.
From a mode-specific perspective, negotiations continued between FIATA and IATA seeking agreement on an updated cargo agency agreement between airlines and freight forwarders. The policy group discussed and demonstrated its support for the north runway plan for London Gatwick airport; and had ongoing discussions with the CAA, ensuring members’ views were represented regarding potential changes to the Aviation Security Regime.
On the Surface The Policy Group met four times during the year, all of which were online. From an ocean freight perspective, much of the discussions and work of this group continued to focus on ongoing competition issues within the deep-sea container market and how it was affecting members’ operations, as well as the challenges of quay rent and demurrage. Considerable work was done to prepare for and participate in discussions concerning the EU Container Block Exemption Review (CBER) and BIFA sought to represent the views of members to the
UK Competition and Markets Authority (CMA) relative to UK market conditions leading to confirmation that such a review will be undertaken in the UK. Dangerous Goods also came under the spotlight and the group sought to assess the likely impact of an amendment to ADR regulations requiring “office only” traders to appoint a DGSA. Ongoing issues surrounding undeclared and misdeclared dangerous goods continued to be a topic of conversation as well as the increased liability issues associated with members accepting “back-to-back” shipments.
Throughout the year, the Secretariat
Legal & Insurance Matters This group, which is the most technically specialist of the Policy Groups dealing with matters that largely underpin
continued to field regular enquiries regarding the BIFA STC; the ongoing impact of the COVID-19 pandemic, issues related to Force Majeure, lost Bills of Lading, cargoes abandoned at destination and criminal activity, as well as scams and fraud within the supply chain.
members’ forwarding activities, met once in 2022, online.
Its main areas of focus were the ongoing impact of the Insolvency Act on the UK freight forwarding sector, as well the UK concerns regarding arranging insurance cover for goods whilst moving to, from or through the EU.
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BIFA Annual Report & Accounts 2022 | bifa.org
bifa.org | BIFA Annual Report & Accounts 2022
Year In Review Training and Apprenticeships
Year In Review Industry Promotion and the Young Forwarder Network
After a record year in 2021 in respect of number of courses and learners, 2022 proved another busy year for training.
Training With the introduction of the Customs Declaration Service (CDS) by HMRC and apprenticeship starts picking up, the team of trainers and support staff were kept on their toes throughout the 12 months. 832 learners took part in tutor-led courses throughout 2022. Some courses were delivered in a face-to-face environment, in Heathrow, Manchester and Anglia, but the convenience of video conferencing seems to be suited to businesses and was the main mode of delivery for BIFA training courses during the year. A big positive for BIFA is its trainers, and the value they bring to delegates is clearly appreciated. We continued to receive fabulous feedback during 2022.
freight forwarding and logistics sector for career opportunities with members of BIFA. The FDP gives participants a three-week employability programme plus an introductory freight and customs training course, delivered by one of BIFA’s team of qualified trainers, before seeking to match the individuals with opportunities within BIFA members. people were able to build up their professional networks in person, something a video conference just does not do. A more formal structure for the regional YFN organising committees, as well as the virtual committee, was introduced with the appointment of a volunteer chair for each. Young Forwarder Network (YFN) The ‘Virtual’ YFN continued to thrive, with online events held roughly every three weeks throughout the year, attracting a healthy audience of individuals. In 2022, the various regional YFN committees wanted to restore face-to-face events in the five regions. This aim was achieved, with at least two events being held in each region, including guest speakers, port tours and a chat show. The number of attendees was generally lower than pre-pandemic events but, more importantly, young
demonstrated the main differences between CHIEF and CDS, with 2,547 learners signing up to this course. This was good to see as the project to put it together took over seven months, so made the effort worthwhile as an additional service for members. Changes were made during the year to some of the administration practices, such as BTEC marking and certifications. A modern, paperless digital badge system was introduced improving the turnaround time for delegate certification tremendously and allowing delegates to share their credentials online. This proved popular with delegates with an 87% acceptance rate versus a national average of 67% for this type of accreditation. Apprenticeships Another positive with the IFFS is that 68% of apprentices who started were under the age of 24, which is considerably higher than the national average across other industries. That said, over 60% are from apprenticeship levy paying companies so with the majority of BIFA members being SMEs there is scope to expand the number of apprentices in this funding band. Since the first apprentice started the IFFS standard in July 2018, there have been 927* starts, but there is so much scope for improving
Our trainers brought the human touch – 84% of learners said they prefer the ‘live’ environment versus eLearning. Of all the courses delivered by BIFA trainers, fewer than 1% of delegates said they wouldn’t recommend the course to others. BIFA continued to invest in the training team with a team of four throughout 2022, each of whom has more than 25 years of freight forwarding experience, bringing their own stories to enrich the experience that BIFA’s practical and pragmatic courses provide. Over 98% of 579 delegates said the trainers’ knowledge was very good or excellent. Unsurprisingly, the course for which we had the most demand was the CDS eLearning course, which
Once again, the YFN provided five young panelists for the seminars at the Multimodal 2022 event, and all did themselves and their employers proud. In the summer, the London Freight Club kindly hosted a YFN table with young people from three different regions attending. Once again, a fabulous opportunity for individuals to meet peers from around the country and network with other industry professionals. These small opportunities provided through the YFN, showed a commitment to promote the industry, and fostered a sense of belonging to a community, of which members can feel part of. In 2022, BIFA continued to encourage all members to publicise the YFN within their own organisations and encourage attendance for personnel development and to ensure that the YFN remains sustainable, fresh and relevant. The intention is to create a pool of talent that had little prior knowledge or experience of the freight sector and help make the delegates work and industry-ready for BIFA members.
Industry Promotion At the end of 2021, BIFA produced a useful guide for members, focusing on school and college engagement. Its intention was to simplify the process and encourage members to build relationships with schools close to where companies or branches are based. Progress has been slow, even in schools where a relationship had been established, however the highlight in 2022 was a dedicated logistics jobs fair at Heathrow. Despite the new COVID-19 variant lingering around, 11 members attended with their own stands, all with
live jobs. Another highlight was a presentation to 400 year 10 and 11 students at the Felixstowe School during National Apprenticeship Week. It is a lot easier than people think connecting with the local school or college which must list the careers lead on their website. It is highly likely that the school / college will have a ready-made list of opportunities in which to get involved. Outside of the very large companies, schools do not know where to start with local business, so it is easier for companies to make the first move. Freight Development Pathway At the end of 2022, BIFA launched a new programme called the Freight Development Pathway (FDP) in partnership with Manpower, one of the world’s leading workforce solutions companies. The aim of the programme is to help identify, attract and train suitable candidates from outside of the
For the 12-month period to 31 October 2022, 251 apprentices started the International Freight Forwarding Specialist (IFFS) standard, versus 155 in the 12 months prior to that * . So, a positive trend, post-pandemic.
this considering that BIFA now has over 1,600 corporate members. Recruitment of apprentices lost around 18 months due to the pandemic, but numbers recovered in 2022, and it would be good to see an even bigger increase in the year following this report. The launch of the Generation Logistics awareness campaign in 2022 can only help raise the profile of the sector and BIFA became one of the supporting trade associations of this fabulous initiative. * Source: Institute for Apprenticeships and Technical Education, to 31st October 2022
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Re port of the Board of Directors
Year In Review Communications and Events
Our annual awards are the showcase event of the year and as part of our new branding we introduced a more premium look; reflected from the launch advertising in June including elements such as printed collateral, digital assets, email marketing, advertising, right through to the event itself.
The directors present their annual report and financial statements for the year ended 31 December 2022.
The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Statement of disclosure to auditor So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware prepared in accordance with the provisions applicable to companies entitled to the small companies exemption. On behalf of the board S Parker BIFA Director General 31 March 2023 of that information. This report has been
accordance with United Kingdom Generally Accepted Accounting Practice. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the surplus or deficit of the company for that period. In preparing these financial statements, the directors are required to: • select suitable accounting policies and then apply them consistently; • make judgements and accounting estimates that are reasonable and prudent; • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps
Principal Activities The Association is the primary representational body of the international freight services industry and its objectives, amongst others, are to promote the interest and welfare of its members within the freight services industry. Directors The directors who held office during the year and up to the date of signature of the financial statements were as follows: K Baguley M Bromley C Hobbis C Hogg R Keen J Morgan (Appointed 7 October 2022) R Morley S Oud (Resigned 9 May 2022) F Osborn S Parker Statement of Directors’ Responsibilities The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in S Stevenson J Stubbings R Windsor
We put a big effort into improving our social media output with more engaging and daily content for members and our followers. Once again, we have seen a good increase, especially on the main LinkedIn pages. As well as the regular Young Forwarder Network events, BIFA again used its significant presence at the Multimodal 2022 event to communicate with its audience, and we introduced new-member welcome meetings, and organised the annual Liverpool regional charity dinner after a couple of years off due to the pandemic, raising over £6,000 for three local charities. Moving on to the 2022 Freight Service Awards. With a new brand identity and communications strategy defined, the competition attracted a large number of entries, with more companies and individuals entering for the first time, culminating in a record number of tickets sold for the awards ceremony held in the January of the year following this report.
2022 was a year of transformation within the Communications function at BIFA. Being a newly established team, their primary focuses for the year were the setting of new, consistent standards in the way BIFA communicates with its members and modernising the look and feel of the trade association’s communications channels. To support this, we introduced a new set of brand guidelines. With members saying email is their preferred method of communications, we improved our email marketing approach and implemented a new eNewsletter format. This enables members to only receive what they have opted to receive as well as providing us with a clearer picture on member engagement levels. These changes enabled the team to deliver a new suite of highly engaging email communications: weekly newsletters, fortnightly training updates, event invitations and awards specific content.
To support the ongoing delivery of the team’s current and future initiatives, BIFA welcomed Brooke Neilson in September as its new (and first ever) apprentice. Brooke, who is studying the Communications and Public Relations standard, has been a valuable addition to the team so far, supporting all the activities of the team and the marketing of events. In the second half of the year, preparations began for the design and delivery of a new and more engaging website. As well as it having a more modern feel, plans were established for more member benefits to be introduced beyond visual look. The team also established a series of functionality improvements, which, in time, aim to streamline existing processes for training bookings and membership applications, as well as an area for exclusive member content.
for the prevention and detection of fraud and other irregularities.
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Report of the Independent Auditors
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: • making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; • considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: • performed analytical procedures to identify any unusual or unexpected relationships; • tested journal entries to identify unusual transactions; • assessed whether judgements and were indicative of potential bias; and • investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non- compliance with laws and regulations, we designed procedures which included, but were not limited to: • agreeing financial statement disclosures to underlying supporting documentation; • reading the minutes of meetings of the board of directors; • enquiring of management as to actual and potential litigation and claims; and correspondence with HMRC. There are inherent limitations in our audit procedures described above. The more • reviewing assumptions made in determining the accounting estimates
Responsibilities of directors As explained more fully in the directors’ responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of
non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations, was as follows: • the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; • we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; • we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation, employment, environmental and health and safety legislation; • we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and communicated within the audit team regularly and the team remained alert to instances of non- compliance throughout the audit. • identified laws and regulations were
removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non- compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/ auditorsresponsibilities. This description forms part of our auditor’s report. Use of our report This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed. Stephen Meredith BA FCA DChA Senior Statutory Auditor For and on behalf of Alliotts LLP Chartered Accountants Statutory Auditor, Friary Court, 13-21 High Street, Guildford, Surrey GU1 3DL
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Other information The other information comprises the information included in the annual report other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained
within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit: • the information given in the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
Opinion We have audited the financial statements of British International Freight Association (the ‘company’) for the year ended 31 December 2022 which comprise the income and expenditure account, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: • give a true and fair view of the state of the company’s affairs as at 31 December 2022 and of its surplus for the year then ended; prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and • have been prepared in • have been properly Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements accordance with the requirements of the Companies Act 2006.
Matters on which we are required to report by exception In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: • adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or • the financial statements are not in agreement with the accounting records and returns; or • certain disclosures of directors’ remuneration specified by law are not made; or • we have not received all the information and explanations we require for our audit; or • the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemption in preparing the directors’ report and from the requirement to prepare a strategic report.
• the directors’ report has been prepared in accordance with applicable legal requirements.
31 March 2023
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BIFA Annual Report & Accounts 2022 | bifa.org
bifa.org | BIFA Annual Report & Accounts 2022
Income & Expenditure Account For the year ended 31 December 2022
Balance Sheet As at the year ended 31 December 2022
2022 £
2022 £
2021 £
2021 £
Note
Fixed Assets Intangible assets Tangible assets
35,237
3 4 5
26,362 322,915
2,969,503 (679,880)
Income
2,528,890 (439,130)
309,702
Cost of sales
2
2
Investments
2,289,623 (1,595,340)
Gross surplus
2,089,760 (1,351,056)
344,941
349,279
Administrative expenses
Current Assets Debtors
694,283
Operating surplus
738,704
216,131
6
250,026 2,571,109 2,821,135
7,414
294
3,165,289 3,381,420
Interest receivable and similar income
Cash at bank and in hand
701,697
Surplus before taxation
738,998 (148,639)
(137,873)
Tax on surplus
Creditors Amounts falling due within one year
(538,018)
(545,895)
7
Surplus for the financial year
563,824
590,359
2,843,402
2,275,240
Net Current Assets
The income and expenditure account has been prepared on the basis that all operations are continuing operations.
Total Assets Less current liabilities
3,188,343
2,624,519
Provisions for liabilities
(29,201)
(29,201)
Net Assets
3,159,142
2,595,318
Reserves Income and expenditure account
3,159,142
2,595,318
Members’ Funds
3,159,142
2,595,318
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime under FRS102 section 1A. The financial statements were approved by the board of directors and authorised for issue on 31 March 2023 and are signed on its behalf by:
Steve Parker BIFA Director General Company Registration No. 00391973
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BIFA Annual Report & Accounts 2022 | bifa.org
bifa.org | BIFA Annual Report & Accounts 2022
Notes to the Financial Statements For the year ended 31 December 2022
Notes to the Financial Statements ...continued For the year ended 31 December 2022
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. 1.10 Employee benefits The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. 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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.11 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Software Over 10 years Training materials 33.33% on cost 1.4 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. The fixed assets are included at cost less aggregate depreciation. The rates of depreciation are as follows: Freehold property - buildings Over 20 years Fixtures, fittings & equipment 10%/20%/25% on cost Computer equipment 33%/50% on cost The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to surplus or deficit. 1.5 Fixed asset investments A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. The dormant subsidiary exists under the name The Institute Of Freight Forwarders and is registered under the same registered office as the parent. 1.6 Impairment of fixed assets At each reporting end date, the company reviews the carrying amounts of its tangible 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).
1. Accounting Policies Company Information British International Freight Association is a company limited by guarantee and incorporated in England and Wales. The registered office is Redfern House, Browells Lane, Feltham, London, TW13 7EP. 1.1 Accounting convention These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. 1.2 Income and expenditure Income represents amounts after discounts and excluding V.A.T. for membership with the association in the year and for attending events/training occurring within the financial period. Expenditure represents the cost net of V.A.T. for services or goods which were incurred during the activities of the company in the year. 1.3 Intangible fixed assets other than goodwill Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
1.7 C ash and cash equivalents
2. Employees The average monthly number of persons (including directors) employed by the company during the year was 17 (2021:16).
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.8 Financial instruments The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company’s statement of financial position when the company becomes party to the contractual provisions of the instrument. 1.9 Taxation Deferred tax liabilities are generally recognised for all timing differences. Such liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit. The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax liabilities are offset when the company has a legally enforceable right to offset current tax liabilities and the deferred tax liabilities relate to taxes levied by the same tax authority.
Total £
Computer Software £
Training materials £
3. Intangible Fixed Assets
Cost At 1 January 2022
37,660 12,800 50,460
60,000
97,660 12,800 110,460
Additions
-
At 31 December 2022
60,000
Amortisation and impairment At 1 January 2022 Amortisation charged for the year
11,298 3,925 15,223
60,000
71,298 3,925 75,223
-
At 31 December 2022
60,000
Carrying amount At 31 December 2022 At 31 December 2021
35,237 26,362
- -
35,237 26,362
Land and buildings £
Plant and machinery etc £
Total £
4. Tangible Fixed Assets
Cost At 1 January 2022
506,976
427,637
934,613 42,102 976,715
Additions
-
42,102
506,976
469,739
At 31 December 2022
Depreciation and impairment At 1 January 2022 Depreciation charged in the year
332,976
278,722
611,698 55,315 667,013
3,500
51,815
336,476
330,537
At 31 December 2022
Carrying amount At 31 December 2022 At 31 December 2021
170,500 174,000
139,202 148,915
309,702 322,915
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BIFA Annual Report & Accounts 2022 | bifa.org
bifa.org | BIFA Annual Report & Accounts 2022
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