Annual Report & Accounts 2018
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Reclaim Fund Ltd Enhancing Annual Report and Accounts communities 2018 Reclaim Fund Ltd makes it possible for money in dormant bank and building society accounts to be used to help good causes CONTENTS 01 Reclaim Fund Ltd (‘RFL’) ABOUT US commenced operations in 2011, About us 02 following the enactment of the From dormancy to distribution 04 Dormant Bank and Building Enhancing Communities 06 Society Accounts Act 2008 STRATEGIC REPORT Chairman’s review 08 Ltd Fund Reclaim and its receipt of regulatory authorisation to act as a Chief Executive’s review 10 reclaim fund. GOVERNANCE The Co-operative Group was Introducing our Board 17 The Board 18 approached by HM Treasury Corporate governance report 20 in late 2009 to support the Directors’ report 25 Statement of Directors’ responsibilities 26 Government and industry efforts 2018 Accounts Report and Annual by establishing a reclaim fund to Independent auditor’s report 27 enable dormant account monies FINANCIAL STATEMENTS to be used for good causes. Income statement 30 Statement of comprehensive income 31 Statement of financial position 32 Statement of cash flows 33 Statement of changes in equity 34 Notes to the Company 35 financial statements OTHER INFORMATION AND PARTICIPANTS Company information and advisors 51 Participating banks and 52 building societies ABOUT US For the benefit of good causes 02 Reclaim Fund Ltd Fund Reclaim Our purpose We unlock the potential of dormant assets to enhance communities and enrich lives Annual Report and Accounts 2018 Accounts Report and Annual Our mission We safeguard the rights of dormant asset holders while optimising the financial benefits for good causes 2008 2009 2010 2011 2012 2013 Dormant Bank and Co-operative Group RFL is incorporated RFL commences RFL holds its first RFL appoints an Building Society is approached on 13 August 2010 operations on Annual Event Investment Manager Accounts Act 2008 by HM Treasury as a wholly owned 28 March 2011 bringing participants and Custodian to is enacted. to establish a subsidiary of following regulatory and beneficiaries manage its newly reclaim fund. Co-operative authorisation. of dormant account established Banking Group RFL receives in monies together. investment portfolio, Limited (now known excess of £300m Total amounts in line with its as Angel Square from 10 financial received since investment mandate. Investments Limited), institutions. inception exceed itself a wholly £500m. owned subsidiary of Co-operative Group Ltd. ABOUT US STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION AND PARTICIPANTS Our Our participants continue to contribute significant transfers of participants dormant balances to the scheme. Our key achievements Some of the participating firms are included below: DORMANT ACCOUNT TRANSFERS TO 2018 (YTD) see more on page 52 £1.209 BILLION Capital £74M 03 Good causes* £651M Reclaims £484M * Of the £651m set aside for good causes £515m has been paid to Big Lottery Fund. Reclaim Fund Ltd Fund Reclaim 3x growth £1.2BN RECEIVED SINCE INCEPTION IS 3 TIMES AS MUCH AS THE £400M STOCK OF DORMANT MONIES IDENTIFIED EARLY IN THE DEVELOPMENT STAGE OF Our values THE SCHEME. Integrity Honesty in everything we do Collaboration 27 Supporting each other by PARTICIPATING FIRMS 2018 Accounts Report and Annual being stronger together Responsibility Fulfilling our obligations, ensuring accountability Agile Continually enhancing our knowledge and competence 2014 2015 2016 2017 2018 Cumulative distributions RFL relocates to offices RFL distributes £105m to Transfers received from RFL distributes £153m to Big Lottery Fund since in Crewe. Total amounts Big Lottery Fund. Three participants since to Big Lottery Fund. Total inception for onward received since inception new participants join the inception exceed £1bn in amounts received since distribution to good exceed £850m. scheme, taking the total April. Amounts committed inception exceed £1.2bn, causes pass £220m. number of participants for distribution to good this being three times as to 20. Total amounts causes since inception much as the £400m stock received since inception exceed £0.5bn. of dormant monies exceed £980m. identified early in the development stage of the scheme. HOW THE SCHEME WORKS From dormancy to 04 distribution About the Dormant Assets Scheme The principal activity of RFL is the receipt and management of Reclaim Fund Ltd Fund Reclaim dormant account monies. The Dormant Bank and Building Society Accounts Act 2008 (‘The Act’) enables those banks and building societies, that choose to participate (‘participants’), to transfer money from their dormant accounts to RFL, where surplus funds, deemed as being amounts in excess of what is required to meet future reclaims, can be distributed by RFL to Big Lottery Fund* and then onwards to good causes across the UK. The Act also ensures that the right of account holders to reclaim their money, at any time, is protected in perpetuity by transferring the individual’s claim against the bank or building society to RFL. The strategy of the Company is wholly aligned to the operational activities authorised Annual Report and Accounts 2018 Accounts Report and Annual by The Act, which permits only those activities set down in The Act. Along with the activities above, the Company is permitted to invest funds and defray administrative costs and other reasonable expenses. The diagram on page 5 shows the organisations that support the scheme and displays the key activities and the flows of dormant balances. All activities are underpinned by The Act; an agency agreement is held between RFL and the participating bank or building society that establishes the contractual framework between each participant and RFL. Prior to transfer to RFL, banks and building societies make attempts to reunify dormant account holders with their funds. Where this proves unsuccessful, balances that meet the criteria of the Act are eligible to be transferred to RFL. If a dormant account holder subsequently makes a reclaim, the bank or building society reunites them with their funds prior to making a reclaim from RFL. If you think you have unclaimed monies in a bank or building society account Please contact the bank or building society concerned or visit mylostaccount mylostaccount.org.uk * Big Lottery Fund changed its name to The National Lottery Community Fund on 29 January 2019. Both names are referenced in the document. ABOUT US STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION AND PARTICIPANTS Dormant account holder Attempted reunification Repay customer balance 05 Bank or building society Reclaim Fund Ltd Fund Reclaim Transfer Reclaim dormant balances customer balance Annual Report and Accounts 2018 Accounts Report and Annual Transfer surplus funds to The National Lottery Community Fund England Scotland Wales Northern Ireland Good causes THE GOOD CAUSES Enhancing communities 06 RFL’s annual ‘Enhancing The agenda encompassed a variety of presentations including those from: Tracey Crouch MP, then Minister Communities’ event took for Sport and Civil Society; UK good causes; Citizens place on 16 October 2018 Theatre and SambaYaBamba, in addition to RFL Chairman Jane Hanson and CEO Adrian Smith. Once marking its 7th year, with again attendees praised the inspirational impact of the Reclaim Fund Ltd Fund Reclaim good cause speakers, and the organisation of the over 100 attendees from overall event as being a great opportunity to learn financial institutions and other more of the life enhancing changes possible through stakeholders across the UK. the use of Dormant Account monies. Citizens Theatre The YOUNG Co. are based at the Citizens Theatre, an iconic venue Annual Report and Accounts 2018 Accounts Report and Annual and theatre company in the Gorbals area of Glasgow. The Citizens Learning team is committed to enhancing the lives of people of all ages, and from a wide range of backgrounds in Glasgow and beyond, by mounting community productions and delivering a pioneering range of creative participatory projects across varied communities and the education sector. Alongside the many artists, writers and actors they work with, their ambition is to continue to provide unique cultural experiences that bring lasting benefit to everyone involved. The YOUNG Co. is an inclusive theatre company for 18-22 year-olds. During the 15 years it has been running, it has helped many young people gain experience, confidence and explore their identities, as well as helping them establish careers in the theatre profession. citz.co.uk ABOUT US STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION AND PARTICIPANTS 07 Reclaim Fund Ltd Fund Reclaim Annual Report and Accounts 2018 Accounts Report and Annual In less than three years, the 40-strong The group is fully inclusive, with no SambaYaBamba collective of percussion and brass previous music experience being SambaYaBamba Youth Street Band have gone from strength to strength, necessary, just a love of making fun is a carnival style, brass and drums performing extensively in public, music together. There is no charge project that was born in 2016, from street busks to showcasing at to participate; costumes and welcoming young folks aged 11-25 The Encontro Street Band Festival and instruments are provided along of different backgrounds from all collaborating with other youth groups with leadership opportunities for over Glasgow and beyond. from Edinburgh, Manchester, France those keen to further their skills. and Brazil. sambayabamba.com Chairman’s review