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2024-10-31-accounts

ocips Annual Report 2023- 2024

CIPS’ purpose: To professionalise global procurement and supply chains to drive a commercial, ethical and sustainable world.

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Contents

Trustees’ report

Trustees’ report
Introduction 5
Objectives and activities 8
Achievements & performance 10
Membership 11
Education 13
Governance 14
Risk management 18
Foundation 19
Financial Review 20
Reference & administration 25
Statement of Trustees’ responsibilities 27
Independent auditors report to the Trustees of the Chartered
Institute of Procurement & Supply 28
Financial Statements 33
Notes to the fnancial statements for the year ended 31 October 2024 38

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Introduction

As I write this foreword for the CIPS 2024 Annual Report & Accounts, I have been in post for just a few months, and I am very much in the mode of learning, connecting with our members and wider stakeholders and, critically, looking to the future. And I am excited by the prospects that exist for CIPS, our global membership and the wider global procurement and supply chain community.

In an historic year that saw around half the world’s population head to the polls, the need for procurement and supply chain professionals to grapple with uncertainty has become a permanent fixture. The global context remains complex. Geo-political instability, resulting in supply chain volatility, along with changing consumer behaviour, the impacts of AI and sustainability demands, all mean that the need for ethical and highly capable procurement and supply chain professionals has never been greater.

While this backdrop paints a picture of challenge, the opportunity for CIPS and its members has also never been greater. In recent weeks I have met so many people from across the CIPS global ecosystem from staff to volunteers, partners and suppliers and all are buoyed by the opportunity for this profession to make the world better.

Turning to CIPS

A year of strong performance

CIPS Group total income grew again in FY24 to £38.7 million with a net income of £1.0 million before investments and actuarial movements on the closed defined benefit pension scheme. Income increased by a positive 13% on FY23 and was ahead of budget expectations. Expenditure on charitable activities in the year was £37.7 million, a 9% increase in prior. Cash and investments remain stable with group year-end cash balances at £5.4 million and fixed asset investments of £5.0m totaling £10.4m this year compared to £10.5million at the end of FY23. Together our overall net reserves have increased from £8.6 million to £10.5 million.

This, combined with comprehensive market analysis and brand research, provided a data driven and outside in evidence base to underpin our new strategy which will take us to 2030. The strategy, centred on three strategic pillars – Influence, Growth and Profession, provides an aspirational road map for CIPS that will enable us to deliver against our core purpose as an organisation and generate the commercial income we need to lead and advance the profession globally.

2025 will be focused on the operationalisation of the strategy and on providing tangible benefits for our members as we seek to grow our community and influence on behalf of the profession.

Strategic review

A full strategic review was undertaken during 2024, involving input from and consultation with CIPS’ members and wider stakeholders from across the profession and beyond.

CIPS’ global membership grew by 7% to just over 64,000, along with growth in both our volunteer community and global branch network. Over 107,000 exams were taken globally, exceeding our target of 104,000.

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A number of exciting initiatives were launched in the year to deliver a greater experience for members. This included the launch of CIPS Connect, our digital community platform for members to exchange ideas and discuss important topics – engagement has surpassed expectations, and the community continues to grow. Our LinkedIn community grew significantly in the year to over 165,000 members, demonstrating increasing interest in the profession.

We launched a new proprietary research survey called the State of Procurement and Supply, to monitor key factors including potential shortages, disruptions and the continuity of supply, AI and technology, sustainability and the influence of the procurement and supply function. The research is undertaken quarterly to provide a pulse survey, with inputs from over 120 organisations globally.

Global opportunities

We launched a new content and engagement programme which saw the launch of the CPO network, bringing together Chief Procurement Officers to discuss challenges, opportunities and share ideas. A new careers and jobs board section of cips.org and refreshed member newsletters and online content, focusing on career success and knowledge and insight were also successfully delivered in the year. Events, awards and conferences were successfully held across the world too.

We established CIPS Arabia (CIPS for Business Services Co), a full service CIPS entity, based in Riyadh, Saudi Arabia. This entity is designed to increase our influence across the Kingdom of Saudi Arabia as part of our existing MENA regional operations. Our market entry strategy for Saudia Arabia is in response to the country’s ambitions to diversify their economy by establishing new industries and economic sectors and creating a highly capable, qualified, and professional workforce to support the transition. This initiative is called Saudi Vision 2030 and CIPS has been a key partner since 2017.

Further growing our reach, we formed a partnership with the National Institute of Supply Chain Leaders (NISCL) in Canada. This “ strategic relationship will see approximately 5,000 members of NISCL become joint CIPS - inclusive, members of CIPS in 2025 and will bolster CIPS’ outgoing and a magnet presence in North America. for engagement, action and achievement Growing our impact We have worked with governments and Ben Farrell charitable organisations across the world CIPS CEO to bolster capacity and capability within procurement and supply chains. In the UK we have delivered a pilot programme with the Department for Education to build commercial capabilities across 15 Multi- Academy Trusts C to ensure procurement excellence in the education sector.

Our Bill & Melinda Gates Foundation funded programme “Health Procurement Africa” (HPA) targets improvement in strategies and processes deployed for public healthcare procurement at both national and subnational levels. The primary goal is to address critical gaps in the procurement systems for medical supplies, directly impacting maternal and neonatal health outcomes.

CIPS/HPA have been working at national and sub-national (state and county level), along with government representatives and selected procuring entities to bring about changes that will stimulate improvement in procurement performance and ultimately more effective health systems. The expected outcomes from these activities are:

Through the CIPS Foundation we invited charities to apply for grants to support communities across the globe. The Foundation supports initiatives which set out to alleviate the challenging issues facing many communities by improving procurement and supply chains through better education and best practice, through the application of ethical and sustainable standards and by working to eradicate corruption and illegal practices in supply chains, globally. CIPS Foundation also awards bursaries to individuals working in procurement and supply to help them progress their careers and gain relevant knowledge and experience.

Looking ahead – strategy to action

Since joining CIPS I have worked closely with my executive team to develop the operational plans needed to deliver our strategy. These include the growth of our global community and the reimagining of our membership model, focus on our impact and influence, the digital experience and value we provide for our members and the identification of new markets where CIPS can make a difference. To underpin all of this, we will focus on our ways of working and structure to transform CIPS into the modern professional body we need to be.

CIPS’ ethos as we look ahead to our 2030 strategy

We will focus entirely on moving forward in a planned and coordinated way to optimise delivery of our purpose. Strategy to action is the mantra – progress and growth and, in 2030, I am confident that we will look back with huge pride at what we have achieved. I see CIPS as an inclusive and outgoing organisation and these traits are those needed to deliver our purpose. This is particularly relevant when considering membership and partnerships of different types – we will become a magnet for engagement.

Finally, I would like to extend my deepest gratitude to our employees, whose dedication, hard work, and passion are the driving force behind our success. I also want to thank our members, volunteers, partners and wider stakeholders for their continued support. And thank you to everyone who has extended the warmest of welcomes to me since becoming CEO in October. Together, we will build an inclusive and exciting future for CIPS, and the profession. : Ben Farrell, MBE CEO

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Objectives and activities

and supply chain profession and those who work in it. This is achieved by establishing standards and qualifications, creating and delivering education and training, as well as promoting the role of the profession and the value that it brings to the public sector, business and society.

enhancement of teams, through knowledge and content creation. CIPS’ Global Standard is also freely available to all – offering a comprehensive competency framework.

CIPS is a professional membership body and therefore supports the professional needs of members as they progress their careers – from those considering a future in procurement and supply chain management, to students, to fully qualified professionals, and leaders in the profession.

CIPS’ Royal Charter Objects are to:

the art and science of procurement and supply and likewise to encourage the promotion and development of improved methods of procurement and supply in all organisations.

public, high standards of professional skill, ability and integrity among persons engaged in procurement and supply.

Educate persons engaged in the practice of procurement and supply and, by means of examination and other methods of assessment, to test the skill and knowledge of persons desiring to enter the Institute.

CIPS’ purpose

To professionalise global procurement and supply chains to drive a commercial, ethical and sustainable world.

Measurement of success

CIPS’ primary aims are to meet its Charter objects and deliver public good. These are achieved through the organisational strategy and success is measured by a range of targets and metrics, agreed by the Global Board of Trustees and monitored throughout the year.

At the start of the year the CEO sets objectives and Key Performance Indicators (KPIs) against the strategy for the period; these are assigned to the directorates as part of the annual planning process. The Board is updated on progress against targets, and they receive detailed, periodic reports from the directors with particular focus on any challenges that could impact CIPS’ performance.

At the end of the year, the Global Board of Trustees reviews the year-end position of CIPS against the annual targets and ensures that lessons learnt, and insights gained throughout the period are incorporated into the planning process for the year ahead.

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The main areas of activity are:

CIPS

procurement and supply chain professionals, helping them to develop their skills and advance their careers.

Professional development: CIPS provides continuous professional development opportunities through workshops, courses and online learning.

Advocacy and standards: CIPS advocates for the profession and sets the Global Standard, this supports ethical and effective procurement and supply chain practices.

Networking and events: CIPS organises events, conferences, and networking opportunities for professionals to connect and share knowledge.

Supporting organisations: CIPS supports organisations to improve their procurement functions through evaluation and certification against world-class standards.

All of these activities are in support of the achievement of CIPS’ Charter Objects, Purpose and Strategic Objectives, which are:

to provide leadership, advocacy, and a policy and regulatory climate that is supportive of what the profession is trying to achieve and enabling is to thrive.

Growth – to become the leading brand in each of our markets by becoming the destination of choice for those looking to develop a career in procurement and supply – from pre-career throughout the professional lifecycle, a strategic partner to major employers, a trusted and impartial advisor to governments.

Profession – to assert our role as a global professional body that has the credibility and scale to drive the highest standards across each of our key markets, and positions the profession as so strategically important that governments, regulators and corporates mandate CIPS membership.

of activities; these are agreed by the Trustees and considered in the context of the guidance issued by the Charity Commission on public benefit:

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Achievements & performance

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Membership

Membership key metrics: Target 2024 Target 2024 Target 2024 Target 2024 Achieved 2024 Achieved 2024
Member population 63,000 64,126
Member retention 74%+ 74.9%
Net Promoter Score (NPS) 40+ 67
Member engagement and volunteer led events - global Almost 300 events with over 17,000 attendees
Membership category 2023 2024 Variance 2023-2024
Afliate 6,273 6,806 533 8.5%
Student 36,654 39,839 3,185 8.7%
MCIPS, fully qualifed 16,982 17,481 499 2.9%
Total 59,909 64,126 4,217 7.0%

Following an incredible amount of focus on our member growth and retention, we finished FY24 with 4,217 more members than we started with, a 7.0% increase in our global membership population. The greatest contributor to this growth was our student and part qualified population which increased by 3,185 members (8.7%).

Our continued focus on listening to members, undertaking outbound calls and acting on feedback gathered, and making website improvements for key member transactions and journeys, has contributed to a 5% improvement to member retention. We continue to measure retention as the metric demonstrates the level of loyalty of existing members and is a good gauge of the value members see in our offering. Ongoing enhancements to the benefits we provide to our members has enabled us to strengthen and enhance our member value proposition.

CIPS’ volunteers

Volunteers across the world FY24

FY23 % FY24 %
Africa 64 10 66 10
Asia 49 7 57 8
Australia and
New Zealand		 79 12 92 14
Europe 38 6 37 5
Fellows International 10 2 10 1
Fellows UK 9 1 11 2
MENA 90 14 87 13
Southern Africa 55 8 44 6
UK 271 41 277 41
TOTAL 665 100 693 100

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Volunteer networks across the world (Branches)

(Branches)
FY23 % FY24 %
Africa 9 11 10 12
Americas 1 1 2 2
Asia 4 5 4 5
Australia and
New Zealand		 9 11 9 11
Europe 4 5 4 5
MENA 14 17 15 17
South Africa 9 11 9 10
UK 33 40 33 38
TOTAL 83 100 86 100

Our global volunteers are essential to the CIPS community, giving their time, energy, and expertise to promote the profession. We awarded long service awards to 34 volunteers, including two who have dedicated 25 years of service.

and badges for long service awards and added a new roll of honour on the CIPS website during Volunteer Week. These initiatives celebrate our dedicated volunteers who help CIPS fulfil its mission and inspire a respected profession globally.

Over 70 global volunteers helped launch the CIPS Connect community platform, becoming our Community Champions before the full roll-out in early 2024. They made the platform engaging from day one. Our Community Champions continue to share their expertise, support members, and contribute to editorial pieces in our newsletters.

We’ve improved the volunteer lifecycle by on-boarding over 100 new volunteers, establishing seven new or reactivated branch committees, and creating assets and recognition initiatives to thank and attract volunteers.

Our Education Group promotes procurement and supply as a career in schools, colleges, and universities. They build relationships with accredited universities and work on better integrating procurement and supply into curricula and career guidance.

This year, our volunteer community has participated in various CIPS activities, including Global Standard review workshops, Mentoring Circles, Apprenticeships Board, and brand perception interviews. They coordinated nearly 300 events with over 17,000 attendees, offering valuable networking and learning opportunities within the global CIPS community.

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Education

Professional Development Examinations 2023 2024 Target 2024 Actual
Global examinations 101,457 104,259 107,490

Qualifications and learners

It’s encouraging to report continued growth in new learner numbers, rising from 14,421 in FY23 to 14,797 in FY24, marking a 2.6% increase. The MENA region led this growth with a notable 10% increase.

Remote Invigilation (RI) continues to grow in popularity due to the flexibility it offers CIPS learners. In FY24, RI usage increased by 15.6%, with 34,592 learners taking exams this way, up from 29,918 in FY23. It accounted for 32% of all exams sat, up 3.6% on FY23.

Year Active Students New Students
2023 21,435 7,910
2024 22,550 8,595

Education and learning

In January 2024, we moved the End Point Assessment (EPA) submissions process from six scheduled submission periods to an ondemand model. This adjustment supported 29% of additional submissions at Level 3, surpassing the FY24 target. While this required a slight recalibration of Level 4 EPA targets, it allowed for more accurate alignment with the training provider pipeline forecasts versus actual submissions, resulting in a modest shortfall against the target at -17%.

University Partnerships continued to grow with 3 new degrees/master’s programmes accredited giving a 2.2% growth in FY24.

Our global Study Centre network did not expand as hoped due to the loss or removal of Study Centres. However, an almost like-for-like replacement ended the year with 133 Study Centres, a slight loss of -2.9% in FY24.

There was an increase in Management Entry Route (MER) and Fellowship applications by 23.9% and 82.9% respectively.

Corporate Award has grown substantially, with an expected submission target of 5,240 in FY24 the final number of submissions was 7,620, a 45.4% growth. To support an expected similar growth in FY25 the Assessment team has developed an IT submission and marking system due for rollout in November 2024 and continues to recruit new assessors.

independent Board of experts who give strategic direction and oversight of the CIPS Awarding Board. This group of experts is called CABB (CIPS Awarding Body Board) and includes a member of the Global Board of Trustees. They actively provide oversight and monitor the Awarding Body function to ensure it remains compliant with all regulators.

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Governance

Group structure

CIPS was established in 1932. In 1992 CIPS was awarded a Royal Charter in recognition of its status as the leading body for the profession. CIPS is a registered charity (Charity No. 1017938) dedicated to the promotion of education in procurement and supply. As a professional body incorporated under Royal Charter, CIPS operates in accordance with its Charter and Byelaws and within the provisions of the Charities Act 2011. CIPS is a not-for-profit organisation, headquartered in the UK with regional subsidiaries globally. CIPS also operates a linked charity, the CIPS Foundation (Charity No. 1017938-1), whose purpose is to improve lives through better supply chains. CIPS has a physical presence at the following subsidiaries and branches:

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Governance structure and CIPS Group Diagram

Independent governance review

During 2024, an independent governance review was launched to undertake a comprehensive assessment of CIPS’ Board and Committee level governance structure, roles and responsibilities, policies, and practices against best practice. The initial findings of the review concluded that the structure is fit for purpose and appropriate. Recommendations have been made to clarify the Committee’s roles and update their terms of reference. These changes will be made during 2025.

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Global Board of Trustees’ composition and selection

The Trustees serve in a non-executive capacity. They commit their time and expertise to CIPS without remuneration, providing leadership in fulfilment of CIPS’ Charter and charitable objectives, and ensuring the delivery of the organisational strategy. Although unpaid, Trustees nevertheless assume fiduciary responsibilities on taking office and are expected to exercise responsible stewardship of both CIPS’ resources and its reputation throughout their term of office.

The Global Board of Trustees has up to 15 seats. The majority of Trustees are MCIPS or FCIPS with the exception of those selected for their expert knowledge such as accounting and finance. Each year the Nominations Committee works with the Board to agree the selection criteria. The vacancies are then advertised by an executive search agency, with both members and non-members encouraged to apply. Candidates who best match the selection criteria are interviewed by the Nominations Committee with input from the Chair of the Global Board of Trustees and the CEO. The Board recommends the most suitable candidates to members for approval at a general meeting.

Key topics discussed by the Global Board of Trustees include:

At CIPS, we strive to be representative of the communities we serve. Regarding our board membership, we have trustees with disabilities on the board.

Trustee induction and training

All Trustees are required to attend an induction and are given supporting materials to help them in their role. The induction includes details of CIPS and its activities, the governance structure and the Trustees’ legal duties and responsibilities under Charity Law.

During 2024, all Trustees committed to undertake a formal training course on Trustee duties. Additionally, they are encouraged to engage with continuing professional development to ensure that they maintain and enhance their skills and knowledge. They sign an annual agreement which sets out their obligations including a commitment to take responsibility for understanding their role and acquiring sufficient knowledge about CIPS and its operations to be able to make informed decisions.

options and updating an online portal with information as applicable; the Trustees also have access to the Company Secretary, who provides support as required. The Global Board of Trustees meets at least four times each year, meetings are held physically, virtually and hybrid.

Remuneration

The Trustees do not receive remuneration for their services on the Board. The salaries across the Group including the Group CEO’s remuneration are the responsibility of the Remuneration Committee. The Remuneration Committee consists of four members (the Chair of the Global Board of Trustees and three Trustees). Each year, the Committee reviews and approves CIPS’ pay and bonus policy for the forthcoming year for its relevance and appropriateness. The Committee considers external expert advice including benchmarking data.

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Related parties’ transactions

The Global Board of Trustees and the Executive Team are required to declare all parties connected with them that may be classified as related parties. All transactions with related parties must be disclosed; disclosure forms are completed annually.

Risk management

CIPS’ policy is to identify, assess and respond appropriately to all risks. The effectiveness of risk management and the resultant controls are reported to the Executive team and Audit Committee quarterly via the Risk Group for appropriate review and challenge. The risk register is shared with the Global Board of Trustees at each of the quarterly Board meetings and Trustees offer their external perspective on the risks.

Principles

Responsibilities

The Risk Group is chaired by the Company Secretary and implements all elements of the Risk Management Framework across CIPS Group. The Risk Group monitors and reviews the Organisational Risk Register and provides upward reporting to the Executive Team on these risks. The Risk Group is supported by various third-party assurance providers in terms of stated controls and mitigations to enable the links between the relevant inputs, outputs and interactions. The Executive Team is accountable to the Audit Committee and the Global Board of Trustees for the delivery of the risk framework.

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Risk management

Risk statement and risk register

mitigation plans are in place. Major risks are defined as high impact and a high likelihood of occurring.

# Risk Mitigation
1 Cultural issues, process
constraints, or people gaps
hinder strategy adherence,
leading to missed objectives
and increased risks		 • Develop KPIs for each programme to track progress. Create cross-
functional teams, aligning performance management and personal
objectives with strategic goals
• Map current skills, identify future needs, and address gaps through
upskilling, cross-skilling, and mobility opportunities
• Deliver a programme of activities to establish and maintain our
desired culture, inclusive of leadership development, performance and
behaviour management
2 The current membership
model fails to remain
compelling		 • Create acquisition and retention plans with clear KPIs
• Defne roles and responsibilities for acquisition and retention
• Review and update key website journeys for Membership
3 Instability of the CX and ERP
platforms results in costs
(delivery and headcount)		 • Develop a long-term technology roadmap aligned with the platform
provider’s core plans
• Diversify providers to enable easy replacements, especially for digital
tools
• Secure funding and support for core assets to ensure stability
4 A cyber or information
security breach causes
signifcant fnancial and
reputational harm		 • Apply the independent review recommendations to IT and information
processes.
• Develop or hire security operations support.
• Enhance governance for business-wide data management
5 Poor management of
key stakeholders and
external audiences results
in lost infuence and
reduced demand for CIPS’
propositions		 • Build Public Afairs and Advocacy to engage key stakeholders
• Create a Public Afairs strategy with defned goals and operational plans
• Prioritise policy themes and develop thought leadership and
engagement plans
6 CIPS lacks a sufcient
understanding of local
market context in new or
existing areas, creating
regulatory, reputational,
and fnancial risks.		 • Review the trading model and use insights to evaluate current
governance models and identify risks in the country.
• Continue to work with local legal advisors to keep
• CIPS updated on any changes in the country.
• Ensure governance is involved from the start of market entry projects
and has fnal approval over governance models at CIPS.

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Foundation

CIPS Foundation (charity number 1017938 – 1)

CIPS Foundation is a linked charity of CIPS. We seek to improve the lives of individuals and communities globally through better procurement and supply chain practices. We aim to alleviate the challenging issues facing many communities today by improving procurement and supply chains globally through better education and best practice, through the application of ethical and sustainable standards and by working to eradicate corruption and illegal practices in supply chains, globally.

CIPS Foundation awards grants to registered charities to support projects or initiatives that help to improve supply chains or develop new ones, eradicate poor practices within supply chains, develop best practice or support individuals within the chain to access better information and support.

We fund initiatives where issues have been identified, and projects are ready to be implemented in response to these problems. We work with established charities that are skilled and knowledgeable in tackling issues affecting communities worldwide.

During 2024, GBT agreed to open a grant window. The grant was advertised on specialist websites, over social media and on CIPS communication channels. Final awards will be made in 2025.

Foundation Committee

As a committee of the Global Board of Trustees, the Foundation Committee supports the Board by:

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Financial Review

CIPS Group

The year to 31 October 2024 was positive in terms of Revenue with the CIPS Group reporting total group income of £38.7 million (2023: £34.2 million). This reflects a growth of 13% in total income compared to the previous year, including a £3.5m increase in corporate business revenue.

To reflect the higher level of income CIPS has also seen its overall level of expenditure increase by £3.3m compared to the previous year. This higher cost base also includes continuing investment in the CIPS team and technology, both of which continue to be seen as key enablers in the delivery of CIPS future strategy. All spending is carefully scrutinised and controlled throughout the year, with variances from expectation understood as they arise.

With the level of overall revenue growth and the management of the cost base CIPS has achieved an increase in overall net income before investments compared to prior year of £1.2m. With a reported total net income for the year of £1.0 million (2023: Net loss of £0.2 million).

Adding to this positive result from our charitable activities we have also seen a further £0.5m of actuarial gains on the defined benefit pension scheme with these gains being driven by an improvement in scheme assets performance. In addition to the pension scheme gains we have also benefitted from gains on our investments of £0.4m. Combined with our operational results this has led to a net movement in our funds position of positive £1.9million (2023: negative £1.1 million).

Corporate business income has increased substantially by 20% to £20.6 million (2023: £17.1 million) and accounts for 53% of total income. We have seen ongoing and significant growth in demand for our Corporate Award

Programmes, particularly in the UK and Middle East. The future continues to look positive, with further growth expectations supported by a very strong pipeline of opportunities for the year ahead.

The Gates project has continued to be a shining light for CIPS with another successful year on it’s Health Procurement Programme in East Africa & Nigeria funded by the Gates Foundation and have been endorsed in their annual review for 2024.

Membership and Professional Development revenue accounted for 37% of total income and increased by 9% to £14.4 million (2023: £13.3 million) with the increase reflecting the movement in the membership population with member numbers at October 2024 of 64,126 compared to 59,909 at October 2023.

Maintaining relevance, ensuring a highly attractive value proposition for members, and growing our member community are key priorities for CIPS, and we are excited by the many initiatives planned that will enable us to better engage with our members and to provide greater value and support to them throughout their career.

In comparison to the Revenue growth of 13%, expenditure on charitable activities increased by 9% to £37.7 million (2023: £34.4 million). This lower than proportionate increase in expenditure reflects the fact that costs have increased to provide the support to our revenue generating activities along with increases to our support costs but with the application of cost management to ensure the surplus impacts of increasing revenues are not eroded.

Reflecting our ongoing shift towards being a more digitally enabled organization we have continued to invest in our IT environment, and we will continue to incur costs associated with maintaining our platforms to ensure that

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they remain fit for purpose on a business as usual basis, as well as making continuous improvements investments into developing our technological capabilities.

At 31 October 2024 the group cash position was £5.4 million (2023: £6.1 million) and comprised of cash at bank and short term deposits. Repayment of the CBILS loan has continued as planned with final payment to be made in FY25.

CIPS Charity

CIPS charity performance in the year is the primary contributor to the performance of the Group, as described above. The charity’s Total income of £32.9 million (2023: £28.4 million) represents 85% of CIPS group results. The charity has contributed net income before investment gains of £1.0 million (2023: £0.04 million).

CIPS Corporate Services Limited

CIPS Corporate Services sells and distributes books, e-books and e-learning related to the training and examinations set and administered by the CIPS group. The company’s turnover increased by 15% to £1.4 million (2023: £1.2 million) as a result of increased bookshop sales and ongoing recovery from declining revenues seen in the prior year.

Profit for the year was £1.0 million (2023: £0.9 million) which was distributed to the parent charity as a transfer of taxable profit under Gift Aid.

International offices

The companies forming the CIPS Group have seen a mixed performance this year. Net profit/(loss) by entity has been recorded as follows:

2024 Net 2023 Net
Proft Proft
(£’000) (£’000)
CIPS Australia and New (352) (87)
Zealand Pty Limited
CIPS Southern Africa Pty 102 343
Limited
CIPS Professional Body 17 (125)
Southern Africa NPC
CIPS Singapore Pte Ltd
CIPS Satinalma Tedarik Egit.		 109
81		 77
43
Hizm. Ltd. Sti
CIPS USA Inc 21 (287)
CIPS for Business Services Co (269) -

In South Africa revenue in both the CIPS Professional Body and CIPS Southern Africa Pty’s was broadly flat with total consolidated Revenue at £2,905k (2023: £2,857k). With consolidated Net Profit at £119k (2023: £218k).

This reduction in year on year Net Profit of CIPS Southern Africa Pty was a result of a year on year increase in our direct costs.

The Net Profit position of CIPS Professional Body South Africa NPC reflects the reversal of the one off impacts from 2023 and the corrective actions taken to address various legacy matters, with 2024 being a return to more normal results.

CIPS Turkey also showed further improvement in profit continuing the recovery that was reported in 2023.

CIPS Australia and New Zealand saw a decrease in Revenues compared to prior year £1,244k (2023: £1,403k) and Net Profit continued to decline. The results reflect the investment in new talent who were recruited during FY24 to focus on corporate business development, both through stabilising legacy relationships and growing new business. The Revenue results reflect this new approach with increases in Revenue and improved Net Profit planned for FY25.

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CIPS USA delivered a profit of £21k in 2024 as a result of reducing the cost base and continuing to deliver corporate development activities. CIPS USA is experiencing a transformative year and turned a previous loss into a slight profit. Relations with key clients have remained and the team have undertaken extensive work in the Caribbean.

Looking forwards, CIPS have taken a strategic reposition by entering the Canadian market and have agreed an exclusive partnership with the National Institute of Supply Chain Leaders (NISCL). This partnership with NISCL will bring a duel membership proposition that aligns the largest membership body in Canada with CIPS. We expect large growth in membership in Canada in the forthcoming year alongside strong corporate development activity on the back of the partnership.

CIPS for Business Services Co was incorporated in Saudi Arabia in 2023. The results show the net loss in its first year of trading in advance of generating revenues in FY25.

Reserves policy statement

As at 31 October 2024 the total of group investments, short-term deposits and cash at bank amounted to £10.4 million (2023: £10.5 million). The total funds of the group, including the pension reserve surplus, are £10.5 million (2023: £8.6 million) of which £0.3 million is restricted, £7.4 million is unrestricted and £2.7 million is the pension reserve.

CIPS maintains reserves to fund major new initiatives and as a shield against future downturns. The Global Board of Trustees has established a policy, reviewed annually, of maintaining reserves at a discretionary minimum level.

Free reserves are those funds freely available to be used for the purposes of the charity. To this end, CIPS excludes certain elements of its funds from free reserves where they are not considered freely available. This includes tangible and intangible fixed assets, restricted funds, and the asset or liability related to the defined benefit pension scheme.

The Trustees note that CIPS holds significant deferred revenue balances until services are delivered and receipts are recognised as revenue. This deferred revenue is effectively offsetting cash reserves which are available for CIPS to use as long as it operates as a going concern.

CIPS therefore calculates an adjusted operating reserves figure in addition to calculating free reserves. Those elements of deferred revenue which represent a surplus over the anticipated costs of delivery amount to approximately £3.7 million (2023: £3.4 million) and are presented below as an adjustment to provide a better representation of the funds the organisation has on hand to use in its operations.

The Trustees have set a targeted level of adjusted operating reserves equal to 3 months of operating expenses, based on the actual expenditure in the previous financial year.

2024 2023
£000 £000
Total funds as per group 10,488 8,626
balance sheet
Less restricted funds (337) (383)
Less tangible fxed assets (1,311) (1,291)
Less intangible fxed assets (5,423) (6,155)
Lesspension scheme asset (2,744) (2,075)
Free reserves 673 (1,278)
Anticipated surplus on 3,717 3,254
deferred revenue funds
held
Adjusted operating 4,390 1,976
reserves

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At the end of the year the target adjusted operating reserves level was £5.0 million (FY23: £4.5 million). The shortfall against our targeted levels arose as a result of the strategic investment in IT system upgrades during the financial years ending 31 October 2020 to 31 October 2022. The Trustees

accepted that this investment would impact on our reserve levels. The results since this investment was made have seen, that in line with expectations, an ongoing reduction in the overall level of the shortfall.

During this financial year we have successfully contributed £2.0 million to Free reserves and £2.4 million to Adjusted operating reserves. Further recovery of the reserves position is expected during the financial year ending 31 October 2025 and balancing strategic investment for the future with our objective to rebuild the Free reserves position was a key consideration when establishing the FY25 Budget.

Investment performance

Investments are held in a managed portfolio. During the year, the portfolio generated dividend income from listed investments of £153k and generated an investment gain of £401k.

Investment performance is measured against a representative and independent benchmark, which collates data from charity investment managers in the UK and creates an average return for the peer group. Compared to the industry average the investment portfolio underperformed its benchmark by 3.9%. This is the first year of underperformance in four years.

Going concern

In undertaking a going concern review, management have reviewed financial projections and cashflows models to 30 April 2026. The financial modelling included a base case model; reflecting expected performance and a stress case model; reflecting what was deemed to be the most severe but possible scenario that could arise.

The base case model shows cash liquidity improving over the period, with the expected surplus from operational performance positively contributing. At its lowest point CIPS Group accessible funds, including cash in bank and investments, are forecast to be £5.5m. The outlook for the year ahead is positive with FY25 Budget showing expected growth in both Revenue and Trading Profit, and whilst investments into technology and product development are planned for the year ahead, these have been strategically selected to ensure all planned activities support the company’s objective to continue to rebuild its cash and free reserves.

For all cashflow modelling key risks impacting the global macro-economic and external environment along with those more specific to the company, as captured on the Register of principal risks and uncertainties have been considered. The risk of decline in CIPS’ perceived value and credibility is a theme across several of the key risks identified and has the potential to significantly impact if we are unsuccessful in keeping pace with changes in digital advancement, or if we fail to ensure a relevant and attractive value proposition to our members and customers. This risk is further heightened when considering the ongoing uncertain inflationary and economic pressures on both individuals and

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companies. Specific scenarios have also been considered; for example, the need to respond to unexpected external factors that could lead to call on our resources, though as a global company we have a well-diversified portfolio that helps with mitigating this risk.

The stress case model factored in a combination of what was deemed to be the most severe impacts that could arise as a result of the above risks, with assumptions as follows;

The results showed that CIPS would have sufficient cash for continued operation even if future income deteriorates significantly from the base case scenario.

The final model reviewed was a reverse stress test, which demonstrated that beyond the severe impacts already factored into the stress case model, a further £3m of negative impacts could be absorbed before CIPS reaches the point of having insufficient cash for continued operations. Such impacts were outside of any scenario that was deemed to be plausible.

Based on the evidence of current operational activity, the level of financial reserves available, and the financial modelling performed, the Trustees have a reasonable expectation that the parent and Group have adequate resources to continue in business for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

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Reference & administration

Global board of Trustees

Executive team

Responsible for the day to day management of CIPS

Secretary and registered office

Kate Tomlinson ACIS CIPS Easton House Easton on the Hill Stamford Lincolnshire PE9 3NZ

Name of organisation

Chartered Institute of Procurement and Supply (CIPS)

Company registration number

RC000876

Charity registration number

1017938

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Auditors

Grant Thornton UK LLP, 30 Finsbury Square, London EC2A 1AG, UK

Solicitors

Bankers

Actuaries

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Statement of Trustees’ responsibilities

The Trustees are responsible for preparing the Trustees’ annual report and the financial statements in accordance with applicable law and regulations.

The Charities Act 2011 requires the Trustees to prepare financial statements for each financial year. The Trustees have to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102. The Financial Reporting Standard applicable in the UK and Republic of Ireland. The Trustees 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 charity and the group and of the incoming resources and application of resources, including the income and expenditure, of the charity and the group for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s and group’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the financial statements comply with the Charities Act 2011, 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The report was approved and authorised by the Global board of Trustees on 10 April 2025 and was signed on its behalf by the Chair of the Global board of Trustees:

Alison Barto Global Board of Trustees

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Independent auditors report to the Trustees of the Chartered Institute of Procurement & Supply

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Opinion

We have audited the financial statements of The Chartered Institute of Procurement and Supply (the ‘charity’) and its subsidiaries (the ‘group’) for the year ended 31 October 2024, which comprise the consolidated statement of financial activities, the parent charity statement of financial activities, the consolidated and parent charity balance sheet, the group cash flow statement and notes to the financial statements, including a summary of 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:

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. 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’ section of our report. We are independent of the charity 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

We are responsible for concluding on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charity’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the charity to cease to continue as a going concern.

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In our evaluation of the trustees’ conclusions, we considered the inherent risks associated with the charity’s business model including effects arising from macro-economic uncertainties such as increases to the cost of living, changes in inflation and impact of tariffs, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the charity’s financial resources or ability to continue operations over the going concern period.

In auditing the financial statements, we have concluded that the trustees’ 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 charity’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 trustees 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies

or apparent material misstatements, we are required to determine whether there is 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ Responsibilities set out on page 27, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees 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 trustees are responsible for assessing the charity’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 trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

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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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and section 154 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and its trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Grant Thornton UK LLP

Statutory Auditor, Chartered Accountants London 10 April 2025

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Consolidated statement of financial activities for the year ended 31 October 2024

Notes Unrestricted funds Restricted Pension Total Total funds
funds reserve funds
2024 2023
£000 £000 £000 £000 £000
Income from:
Charitable activities
Membership and professional development, 14,438 - - 14,438 13,301
subscriptions and fees
Corporate business 18,305 2,286 - 20,591 17,111
Magazine, conferences and sponsorship 2,049 - - 2,049 3,498
Other 1,317 - - 1,317 30
Investments 3 298 - - 298 266
Total income 36,407 2,286 - 38,693 34,206
Expenditure on:
Charitable activities 4 35,414 2,286 - 37,700 34,442
Total expenditure 35,414 2,286 - 37,700 34,442
Net income/(expenditure) before investment gains 993 - - 993 (236)
Net gains on investments 12 401 - - 401 30
Transfers between funds 17 (134) - 134 - -
Net income/(expenditure) 1,260 - 134 1,394 (206)
Other recognised gains and losses
Pension scheme actuarial gain/(loss) 10 - - 535 535 (813)
Foreign currencytranslation (loss) (67) - - (67) (122)
Net movement in funds 1,193 - 669 1,862 (1,141)
Reconciliation of funds
Funds brought forward 6,214 337 2,075 8,626 9,767
Balance carried forward 7,407 337 2,744 10,488 8,626

All items above derive from continuing operations.

There are no recognised gains or losses other than those stated above. The notes on pages 38 to 65 form part of these accounts.

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Parent charity statement of financial activities for the year ended 31 October 2024

Notes Unrestricted funds Restricted Pension Total Total funds
funds reserve funds
2024 2023
£000 £000 £000 £000 £000
Income from:
Charitable activities
Membership and professional development, sub- 12,345 - - 12,345 11,323
scriptions and fees
Corporate business 15,224 2,286 - 17,510 13,665
Magazine, conferences and sponsorship 1,840 - - 1,840 2,347
Income from subsidiaries 1,016 - - 1,016 865
Other 1 - - 1 24
Investments 3 195 - - 195 167
Total income 30,621 2,286 - 32,907 28,391
Expenditure on:
Charitable activities 4 29,601 2,286 - 31,887 28,347
Total expenditure 29,601 2,286 - 31,887 28,347
Net income before investment gains 1,020 - - 1,020 44
Net gains on investments 12 401 - - 401 30
Transfers between funds 17 (134) 134 - -
Net income 1,287 - 134 1,421 74
Other recognised gains and losses
Pension scheme actuarial gain/(loss) 10 - - 535 535 (813)
Foreign currencytranslation (loss) (144) - - (144) (124)
Net movement in funds 1,143 - 669 1,812 (863)
Reconciliation of funds
Funds brought forward aspreviouslystated 5,122 337 2,075 7,534 8,397
Balance carried forward 6,265 337 2,744 9,346 7,534

All items above derive from continuing operations. There are no recognised gains or losses other than those stated above. The notes on pages 38 to 65 form part of these accounts.

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Consolidated and parent company balance sheet as at 31 October 2024

Group Charity
Notes 2024 2023 2024 2023
£000 £000 £000 £000
Fixed assets Tangible assets 11 1,311 1,291 1,258 1,251
Intangible assets 11 5,423 6,155 5,423 6,155
Listed investments 12 4,991 4,461 4,991 4,461
Investments in subsidiarycompanies 13 - - - -
Total fxed assets 11,725 11,907 11,672 11,867
Current assets Stock 36 67 - -
Debtors 14 10,253 7,876 12,048 8,810
Short term deposits 567 474 - -
Cash at bank 4,850 5,587 2,858 3,848
Total current assets 15,706 14,004 14,906 12,658
Current liabilities Creditors: Amounts fallingdue within 1year 15 (19,687) (18,977) (19,976) (18,683)
Total current liabilities (19,687) (18,977) (19,976) (18,683)
Net current liabilities (3,981) (4,973) (5,070) (6,025)
Total assets less current liabilities 7,744 6,934 6,602 5,842
Creditors: Amounts falling due after more than 1 year 15 - (383) - (383)
Defned beneftpension scheme asset 10 2,744 2,075 2,744 2,075
Total net assets 10,488 8,626 9,346 7,534
Represented by Restricted funds 17 337 337 337 337
Unrestricted funds 17
- Charitable 7,225 6,032 6,265 5,122
- Trading 182 182 - -
Pension Reserve 17 2,744 2,075 2,744 2,075
Total net reserves 10,488 8,626 9,346 7,534

The financial statements were approved and authorised for issue by CIPS Global Board of Trustees and were signed on its behalf on 10 April 2025

Alison Barto Chair, Global Board of Trustees

Tracy Staines Global Board of Trustees

The notes on pages 38 to 65 form part of these accounts.

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Group cash flow statement for the year ended 31 October 2024

2024 2023
£000 £000
Net cash fow provided by operating activities 105 1,179
Cash fows from investing activities
Dividends, interest and rents from investments 297 266
Purchase of tangible fxed assets (67) (147)
Purchase of intangible fxed assets (353) (4)
Purchase of investments (130) (138)
Proceeds from sale of investments - 247
Net cash provided by investing activities (253) 224
Cash fows from fnancing activities
Repayment of borrowing (500) (500)
Net cash provided by fnancing activities (500) (500)
Change in cash and cash equivalents in the reporting period (648) 903
2024 2023
£000 £000
Cash and cash equivalents at the beginning of the reporting period 6,065 5,162
Change in cash and cash equivalents in the reporting period (578) 1,023
Change in cash and cash equivalents due to exchange rate movements (70) (120)
Cash and cash equivalents at the end of the reporting period 5,417 6,065

Net cash flow from operating activities

Net cash fow from operating activities
Group Group
2024 2023
£000 £000
Net income/(expenditure) for the reporting period 1,394 (206)
Unrealised (gains) on investments (401) (30)
Realised gains on disposal of investments - 53
Dividends, interest and rents from investments (298) (266)
Depreciation charges 48 56
Amortisation charges 1,085 1,085
Losses on disposal of fxed assets - 2
Impact of foreign exchange (70) (120)
Decrease in Stock 31 12
Increase in Debtors (2,377) (1,500)
Increase in Creditors 827 2,299
Net pension expense (134) (206)
105 1,179

The notes on pages 38 to 65 form part of these accounts.

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Analysis of Cash and cash equivalents

Analysis of Cash and cash equivalents
Group Group
2024 2023
£000 £000
Cash at bank 4,850 5,587
Short term deposits 567 474
Total cash and cash equivalents 5,417 6,061

Analysis of changes in net debt

Analysis of changes in net debt
November 01 Cashflows Foreign exchange October 31
2023 movements 2024
£000 £000 £000 £000
Cash 5,587 (737) - 4,850
Cash equivalents 474 163 (70) 567
6,061 (574) (70) 5,417
Loans falling due within one year (500) 121 - (379)
Loans falling due after more than one year (383) 383 - -
Total 5,178 (70) (70) 5,038

The notes on pages 38 to 65 form part of these accounts.

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Notes to the financial statements for the year ended 31 October 2024

1. Constitution

The Chartered Institute of Procurement and Supply (“CIPS”) was incorporated on 28th September 1992 by Royal Charter. It is also a registered charity, number 1017938.

2. Accounting Policies

(a) Basis of preparation

The annual report and accounts are prepared in accordance with the rules of CIPS, in compliance with the Charities Act 2011, the Statement of Recommended Practice – Accounting and Reporting by Charities applicable to charities preparing their accounts in accordance with FRS 102 (‘the Charities SORP (FRS 102)’) and with FRS 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland.

The accounts are consolidated on a line-by-line basis and cover the consolidated financial position and transactions of companies controlled by CIPS, which are detailed in note 7.

All of the group’s subsidiary companies are wholly owned, with the exception of CIPS Southern Africa Pty Limited and CIPS Professional Body South Africa NPC. The group directly owns 49% of the issued share capital of CIPS Southern Africa Pty Limited, the remaining 51% being owned by CIPS SA BBBEE Trust. Due to the Founder relationship between CIPS Southern Africa and the Trust, and the fact that control of the Trust rests with CIPS Southern Africa, the Group considers CIPS Southern Africa to be part of the CIPS Group and consolidates its results in these financial statements. CIPS Professional Body South Africa NPC was converted to a not-for-profit entity with members (voting and non- voting) in November 2022, and the purpose and objects of the NPC are in keeping with to those of CIPS Group. The voting member is CIPS UK, with the power to exercise any or all of the voting rights pertaining to the Company on any matter, at any time, without notice or compliance with any other internal formalities. As the entity is wholly controlled by CIPS Group its results are consolidated in these financial statements.

As all of the group’s branches and subsidiary companies have an accounting year-end of 31 October, except CIPS Satinalma Tedarik Egit. Hizm. Ltd in Turkey, which makes up its accounts to 31 December.

The financial statements have been prepared under the historical cost convention. The presentation and functional currency is sterling (£).

Going concern

In undertaking a going concern review, management have reviewed financial projections and cashflows models to 30 April 2026. The financial modelling included a base case model; reflecting

expected performance and a stress case model; reflecting what was deemed to be most severe but possible scenario that could arise.

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The base case model shows cash liquidity improving over the period, with the expected surplus from operational performance positively contributing. The outlook for the year ahead is positive with FY25 Budget showing expected growth in both Revenue and Trading Profit. Investments into technology and product development are planned for the year ahead and have been strategically selected to ensure all planned activities support the company’s objective to continue to rebuild its cash and free reserves.

For all cashflow modelling key risks impacting the global macro-economic and external environment along with those more specific to the company, as captured on the Register of principal risks and uncertainties have been considered.

The risk of decline in CIPS’ perceived value and credibility is a theme across several of the key risks identified and has the potential to significantly impact if we are unsuccessful in keeping pace with changes in digital advancement, or if we fail to ensure a relevant and attractive value proposition to our members and customers. This risk is further heightened when considering the current cost of living and economic pressures on both individuals and companies. Specific scenarios have also been considered; for example the risk that unexpected external factors could lead to restricting operations in a specific country, though as a global company we have a well-diversified portfolio that helps with mitigating this risk.

The stress case model factored in a combination of what was deemed to be the most severe impacts that could arise as a result of the above risks, with assumptions as follows;

The results showed that CIPS would have sufficient cash for continued operation even if future income deteriorates significantly from the base case scenario.

The final model reviewed was a reverse stress test, which demonstrated the required shortfall in revenue to leave insufficient cash for continued operation was outside of any scenario that was deemed to be plausible.

Based on the evidence of current operational activity, the level of financial reserves available, and the financial modelling performed, the Trustees have a reasonable expectation that the parent and Group have adequate resources to continue in business for the foreseeable future. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

(b) Income

Income represents amounts receivable in the ordinary course of business, and represents goods and services supplied in the period excluding VAT.

Corporate business income is recognised when the delivery of the relevant services is provided.

Membership and subscription income is spread over the period during which services are provided to members.

Professional development training activity revenue is released during the month in which the training is delivered.

Magazine and book sales revenue is recognised during the month in which the publication is shipped.

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Revenues from issuing licenses for access to e-Learning facilities are spread over the period during which the facilities are expected to be accessed by the licenses.

Income from subsidiaries consists of amounts paid to the charity from it’s UK subsidiary by means of corporate Gift Aid.

The value of services provided by volunteers is not incorporated into these financial statements.

(c) Resources expended

Resources expended are included in the statement of financial activities on an accruals basis. Where they relate to activities for which VAT is not recoverable, gross amounts are stated. Where VAT is recoverable, amounts are stated net of VAT.

(i) Charitable activity costs

Charitable activity costs are those directly related to the objects of the charity and are reflected in these accounts under the following headings: Membership and professional development, subscriptions and fees; Corporate business; Magazine, conferences and sponsorship; and Other.

(ii) Staff costs

Short-term employee benefits are those expected to be settled wholly within 12 months of the end of the annual reporting period during which the employees’ services are provided. They include wages, salaries and any other benefits paid to current employees, and are recognized in the period in which they are incurred. Post-employment benefits, representing employer contributions to defined contribution plans, are recognized as expenses in the period in which the services resulting in the contribution are provided. The assets of the scheme are held separately from the charity.

Termination benefits are recognised when the charity can no longer withdraw the offer of those benefits.

(iii) Basis of cost allocation

All directly attributable overheads are charged to the appropriate expense category in the SOFA. Indirect support costs are allocated by activity in proportion to direct costs. Governance costs are made up of those costs incurred purely for the governance of the charity, such as the Global Board of Trustees and audit costs.

(d) Taxation

(i) The Charity and UK subsidiary

The parent is a charity within the meaning of Paragraph 1 schedule 6 Finance Act 2010. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. As a result, no tax charge is applied in the financial statements. The UK subsidiary company makes qualifying donations of all taxable profit to the charity. No corporation tax liability on this subsidiary arises in the accounts.

(ii) CIPS Australia and New Zealand Pty Limited

CIPS Australia and New Zealand Pty Limited is registered as a not-for-profit organisation in Australia. No tax liability is provided in the accounts.

(iii) Other foreign subsidiaries

Current tax is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

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Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the group’s taxable profits and it’s results as stated in the financial statements that arise from the inclusion of gains and loses in tax assessments in periods different from those in which they are recognised in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

(e) Liquid resources

Liquid resources are those items that are readily convertible into cash at or close to their carrying values.

(f) Fixed assets

The freehold land and buildings at Easton on the Hill were valued 31 October 2014 on an existing use basis by Savills (UK) Ltd and the valuation was signed by Nick Heath MA FRICS. This valuation was frozen on transition to FRS102 and has been applied as the deemed cost of the freehold land and buildings in these financial statements.

A review for impairment of fixed assets is carried out whenever events or changes in circumstances indicate that the carrying amount of individual fixed assets may not be recoverable. All tangible assets are held by the group for charitable purposes.

Tangible fixed assets are capitalized when they are brought into use if they have a fair value in excess of £5,000.

Internally generated intangible fixed assets have been recognised at the point they were brought into use.

(g) Depreciation and amortization

Tangible fixed assets are depreciated so as to write off the cost over their estimated useful lives:

Intangible fixed assets are amortised over their estimated useful lives:

(h) Stocks

Stocks comprise goods for resale and are valued at the lower of cost and net realisable value. They primary comprise books and other education materials. The value of stock is reviewed regularly for impairment.

(i) Operating Lease Rentals

Rentals payable in respect of operating leases are charged to the statement of Financial Activities as incurred.

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(j) Foreign currency transactions

The results of the overseas subsidiaries denominated in a foreign currency are translated into sterling at rates prevailing during the year (average rate); assets and liabilities are translated at the rates ruling at the end of the year. Translation differences are dealt with through Other Comprehensive Income within the statement of Financial Activities.

(k) Pensions

The Group operates a defined benefit pension scheme which is closed to new entrants. Any increase in the present value of the liabilities of the scheme expected to arise from the current service of employees in the year is charged to the pension reserve from the current year surplus or deficit attributable to unrestricted funds within the Statement of Financial Activities. The expected return on the scheme’s assets and the expected increase during the year in the present value of the scheme’s liabilities are included in pension scheme finance costs. Actuarial gains and losses are recognised in the pension reserve within the Statement of Financial Activities after the surplus or deficit for the year. Pension scheme assets, to the extent they are considered recoverable, and pension scheme liabilities, are recognised in the Balance Sheet and represent the difference between the market value of scheme assets and the present value of scheme liabilities. Pension scheme liabilities are determined on an actuarial basis using the projected unit method and are discounted at a rate using the current rate of return on a high quality corporate bond of equivalent term and currency to the liability.

At 31 October 2024 the net assets of the scheme were £2,744k (2023 - £2,075k). This surplus has been recognised in the parent charity and group balance sheets on the grounds that it is recoverable under the rules of the scheme.

In addition to the defined benefit scheme CIPS also make contributions to a stakeholder pension plan. Contributions are charged to the statement of Financial Activities in the period in which they fall due.

(l) Investments

Realised gains and losses on investments are calculated as the difference between sales proceeds and their cost, and are charged or credited to the Statement of Financial Activities in the year of disposal. Unrealised gains and losses represent the movement in market values during the year and are credited or charged to the Statement of Financial Activities based on the market value at the year-end.

In the charity balance sheet, investments are measured at market at the balance sheet date, based on the quoted price at which they can be traded.

(m) Restricted funds

Where funds are received for purposes specified by a donor, the income is shown restricted in the Statement of Financial Activities. Expenditure of the funds for the purposes specified is applied against such income or any balance brought forward. Any unexpended amount at the Balance Sheet date is carried forward as part of restricted funds.

(n) Designated funds

The group’s Board of Trustees, at their discretion, may set aside funds to cover specific future costs. Such costs are shown as designated funds within unrestricted funds. Where the Board of Trustees decides that such funds are no longer required for the purposes intended, they may be released by transfer to general unrestricted funds.

(o) Liabilities

Liabilities are recognised when there is a present obligation arising from a past event that will require the transfer of economic benefit to settle the obligation.

42 | ANNUAL REPORT 2023/2024 | cips.org

(p) Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from those estimates and underlying assumptions are continually reviewed.

The following are critical judgements that the Trustees have made in the process of applying the accounting policies:

Other key sources of estimation uncertainty

cips.org | ANNUAL REPORT 2023/2024 | 43

3. Investment income

3. Investment income
Group Charity Group Charity
2024 2024 2023 2023
£000 £000 £000 £000
Dividends receivable from listed investments 153 153 147 147
Interest receivable 145 42 119 20
Total 298 195 266 167

4. Charitable activity costs

(a) Group

(a) Group
2024 2023
Staff costs Direct Support Total Restricted Total Total
charitable costs unrestricted funds
costs funds
£000 £000 £000 £000 £000 £000 £000
Membership and professional 5,023 2,214 1,376 8,613 - 8,613 9,002
development, subscriptions and fees
Corporate business 11,235 6,360 5,382 22,977 2,286 25,263 20,315
Magazine, conferences and sponsorship 87 2,301 1,436 3,824 - 3,824 5,079
Other - - - - - - 46
Total 16,345 10,875 8,194 35,414 2,286 37,700 34,442

(b) Charity

2024 2023
Staff costs Direct Support Total Restricted Total Total
charitable costs unrestricted funds
costs funds
£000 £000 £000 £000 £000 £000 £000
Membership and professional 4,952 1,588 962 7,502 - 7,502 7,651
development, subscriptions and fees
Corporate business 9,442 5,177 4,498 19,117 2,286 21,403 16,287
Magazine, conferences and sponsorship 91 1,806 1,085 2,982 - 2,982 4,363
Other - - - - - - 46
Total 14,485 8,571 6,545 29,601 2,286 31,887 28,347

44 | ANNUAL REPORT 2023/2024 | cips.org

5. Support costs

(a) Group

5. Support costs
(a) Group
2024 2023
Membership Corporate Magazine, Other Total Total
and professional business conferences and
development, sponsorship
subscriptions and fees
£000 £000 £000 £000 £000 £000
Finance 432 1,690 452 - 2,574 982
Marketing 92 360 96 - 548 665
Facilities 176 687 183 - 1,046 685
IT 481 1,883 502 - 2,866 3,627
HR 86 338 90 - 514 417
Governance 108 424 113 - 645 399
Total 1,375 5,382 1,436 - 8,193 6,775

(b) Charity

(b) Charity
2024 2023
Membership Corporate Magazine, Other Total Total
and professional business conferences and
development, sponsorship
subscriptions and fees
£000 £000 £000 £000 £000 £000
Finance 175 818 197 - 1,190 689
Marketing 74 348 84 - 506 511
Facilities 95 442 107 - 644 449
IT 444 2,075 501 - 3,020 3,033
HR 74 346 84 - 504 284
Governance 100 467 113 - 680 309
Total 962 4,496 1,086 - 6,544 5,275

6. Net expenditure / income

6. Net expenditure / income
2024 2023
£000 £000
Net expenditure/income for the year is stated after charging/(crediting):
Fees payable to the charity’s auditors for:
Audit of the charity’s annual accounts - 2024 119 -
Audit of the charity’s annual accounts - 2023 - 118
Tax compliance 9 6
Fees payable to afliate frms of the charity’s auditors for:
Audit of subsidiary companies’ accounts - 2024 56 -
Audit of subsidiary companies’ accounts - 2023 3 54
Audit of subsidiary companies’ accounts - 2022 - 6
Non-audit services (preparation of company’s accounts) 2 3
Depreciation (see note 11) 48 56
Amortisation (see note 11) 1,085 1,085
Operatinglease rentals 4 9

cips.org | ANNUAL REPORT 2023/2024 | 45

7. Subsidiary companies

CIPS Corporate Services Limited

02610367

The charity has a wholly owned subsidiary undertaking, CIPS Corporate Services Limited, incorporated in England and Wales. The principal business of the subsidiary is the sale of books and the provision of corporate training and related services to international corporates. The subsidiary has agreed to covenant all its profit to the charity. All activities have been consolidated into the group statement of financial activities. A summary of the subsidiary’s trading result is shown below.

2024 2023
£000 £000
Revenue 1,350 1,174
Cost of sales (291) (256)
Margin 1,059 918
Administrative expenses (43) (53)
Net proft before transfer 1,016 865
Deed of covenant transfer to charity (1,016) (865)
Netproft - -
Assets 89 187
Liabilities (89) (187)
Net assets - -
Share capital - -
Proft and loss account - -
Net reserves - -

The company has issued share capital of 2 ordinary shares of £1 each.

CIPS Australia and New Zealand Pty Limited

ABN 32 111 330 262

CIPS Australia and New Zealand Pty Limited commenced trading in January 2005. Incorporated within Australia, it is a wholly owned subsidiary of the charity. The principal activities during the financial year were facilitating the servicing of membership for existing CIPS members situated in Australia and New Zealand, providing Australian businesses with company training related to procurement, and providing a programme of continuous improvement in professional standards. All activities have been consolidated into the group statement of financial activities. A summary of the subsidiary’s trading result is shown below.


statement of fnancial activities. A summary of the subsidiary’s trading
result is shown below.
2024 2023
£000 £000
Revenue 1,244 1,403
Cost of sales (387) (317)
Margin 857 1,086
Administrative expenses (1,209) (1,173)
Net(loss) (352) (87)
Assets 661 732
Liabilities (1,585) (1,315)
Net liabilities (924) (583)
Share capital - -
Proft and loss account (924) (583)
Net reserves (924) (583)

The company has issued share capital of 2 ordinary shares of AUD$1 each.

46 | ANNUAL REPORT 2023/2024 | cips.org

CIPS Southern Africa Pty Limited

2009/022052/07

CIPS Southern Africa Pty Limited commenced trading in April 2010. Incorporated within South Africa, 49% is directly owned by the charity and the remaining 51% is owned by CIPS SA BBBEE Trust. Due to the Founder relationship between CIPS Southern Africa and the Trust, and the fact that control of the Trust rests with CIPS Southern Africa, the charity considers CIPS Southern Africa to be a part of the CIPS group. The principal activities during the financial year were facilitating the servicing of membership for existing CIPS members situated in Southern Africa, and providing South African businesses and individuals with company training related to procurement and providing a programme of continuous improvement in professional standards. All activities have been consolidated into the group statement of financial activities. A summary of the company’s trading result is shown below.

2024 2023
£000 £000
Revenue 2,493 2,518
Cost of sales (904) (703)
Margin 1,589 1,815
Administrative expenses (1,487) (1,472)
Netproft 102 343
Assets 2,562 3,401
Liabilities (679) (1,621)
Net assets 1,883 1,780
Share capital - -
Designated funds - -
Proft and loss account 1,883 1,780
Net reserves 1,883 1,780

The company has issued share capital of 100 ordinary shares of ZAR 1 each.

CIPS Professional Body South Africa NPC

2016/045398/08

CIPS Professional Body South Africa NPC commenced trading in 2018. Incorporated in South Africa in 2016 as CIPS Professional Body Southern Africa Pty Ltd, it was is a wholly owned subsidiary of CIPS Southern Africa Pty Limited. The Private Company was converted to an NPC on 16 November 2022. Its principal activity is serving individuals in South Africa to meet the requirements of the South African Qualifications Authority. A summary of the company’s trading result is shown below.

2024 2023
£000 £000
Revenue 412 339
Cost of sales (113) (134)
Margin 299 205
Administrative expenses (282) (330)
Netproft/(loss) 17 (125)
Assets 932 1,956
Liabilities (954) (1,995)
Net liabilities (22) (39)
Share capital - -
Designated funds - -
Proft and loss account (22) (39)
Net reserves (22) (39)

The company has issued share capital of 100 ordinary shares of ZAR 1 each.

cips.org | ANNUAL REPORT 2023/2024 | 47

CIPS Singapore Pte Ltd

201333047E

CIPS Singapore Pte Ltd was incorporated in Singapore on 9 December 2013 and is a wholly owned subsidiary of CIPS. Its principal activities during the financial year were the provision of corporate training and services relating to procurement and supply. All activities have been consolidated into the group statement of financial activities. A summary of the subsidiary’s trading result is shown below.

2024 2023
£000 £000
Revenue 332 249
Cost of sales (63) (48)
Margin 269 201
Administrative expenses (160) (124)
Netproft 109 77
Assets 289 694
Liabilities (170) (684)
Net assets 119 10
Share capital - -
Proft and loss account 119 10
Net reserves 119 10

The company has issued share capital of 1 ordinary share of £1 each.

CIPS Satinalma Tedarik Egit. Hizm. Ltd. Sti

CIPS Satinalma Tedarik Egit. Hizm. Ltd. Sti is incorporated in Turkey and is a wholly owned subsidiary of CIPS and has an accounting year-end of 31 December. The principal activities of the company are the provision of corporate training and services relating to procurement and supply. All activities have been consolidated into the group statement of financial activities. A summary of the subsidiary’s unaudited trading result for the year to 31 October 2020 is shown below.

2024 2023
£000 £000
Revenue 415 311
Cost of sales (304) (259)
Margin 111 52
Administrative expenses (30) (9)
Netproft 81 43
Assets 205 254
Liabilities (46) (153)
Net assets 159 101
Share capital
Proft and loss account 159 101
Net reserves 159 101

CIPS USA Inc

CIPS USA was incorporated in the United States of America in 2017 and commenced trading during the previous financial year. It is a wholly owned subsidiary of CIPS. The principal activities of the company are the provision of corporate training and services relating to procurement and supply. All activities have been consolidated into the group statement of financial activities. A summary of the subsidiary’s trading result is shown below.

2024 2023
£000 £000
Revenue 525 681
Cost of sales (119) (163)
Margin 406 518
Administrative expenses (385) (805)
Net(loss)/Proft 21 (287)
Assets 188 298
Liabilities (1,461) (1,668)
Net liabilities (1,273) (1,370)
Share capital - -
Proft and loss account (1,273) (1,370)
Net reserves (1,273) (1,370)

48 | ANNUAL REPORT 2023/2024 | cips.org

CIPS for Business Services Co.

CIPS for Business Services Co. was incorporated in the Kingdom of Saudi Arabia in 2023 and commenced trading during the financial year. It is a wholly owned subsidiary of CIPS Corporate Limited. The principal activities of the company are the provision of corporate training and services relating to procurement and supply. All activities have been consolidated into the group statement of financial activities. A summary of the subsidiary’s trading result is shown below.


activities. A summary of the subsidiary’s trading result is shown below.
2024 2023
£000 £000
Revenue 31 -
Cost of sales (3) -
Margin 28 -
Administrative expenses (297) -
Net(loss) (269) -
Assets 176 -
Liabilities (404) -
Net liabilities (228) -
Share capital 41 -
Proft and loss account (269) -
Net reserves (228) -

CIPS West Africa Ltd

7120866 CIPS West Africa Ltd was incorporated in Nigeria in September 2023. It had not commenced trading at 31 October 2024.

Company name CIPS West Africa Ltd
Nature of business Dormant
Country of incorporation Nigeria
Nominal value of share held 10,000,000 Naira
CIPS Africa Ltd
09428253
CIPS Africa Ltd was incorporated in the UK in February 2015. It had not commenced trading at 31 October 2024.
Company name CIPS Africa Ltd
Nature of business Dormant
Country of incorporation UK
Nominal value of share held £100.00

cips.org | ANNUAL REPORT 2023/2024 | 49

8. Staf costs

Group Charity Group Charity
2024 2024 2023 2023
£000 £000 £000 £000
Wages and salaries 14,271 12,532 12,689 10,901
Employer’s social security costs 1,198 1,156 1,153 1,099
Defined benefit pension scheme expense - - - -
Defined contributionpension scheme 871 792 816 744
Total staff costsper note 4 16,339 14,480 14,658 12,744

The average number of staf employed by the group throughout the year was:

2024 2023
240 230
Emoluments of senior staf 2024 2023
£60,000 - £69,999 16 8
£70,000 - £79,999 9 20
£80,000 - £89,999 10 7
£90,000 - £99,999 6 -
£100,000 - £109,999 5 3
£110,000 - £119,999 2 2
£120,000 - £129,999 - 1
£130,000 - £139,999 1 2
£140,000 - £149,999 1 3
£150,000 - £159,999 - 1
£160,000 - £169,999 2 2
£170,000 - £179,999 2 -
£190,000 - £199,999 1 -
£210,000 - £219,999 1 -
£220,000 - £229,999 1 1
£250,000 - £259,999 1 -
£280,000 - £289,999 - 1

The group’s defned beneft pension scheme closed to future members on 1 November 2003. CIPS ofers a defned contribution plan into which it paid £792k (2023: £744k) of employer contributions in the year. At the end of the year, there were 197 (2023: 192) members of staf with stakeholder plans. CIPS Australia paid £67k (2023: £52k) and CIPS USA paid £12k (2023: £19k) into staf defned contribution superannuation schemes.

The members of the Global Board of Trustees were not remunerated for their services during the year. Expenses of £58,007 (2023: £19,655) were reimbursed to or paid on behalf of 14 (2023: 11) trustees during the year. These expenses included travel, accommodation, subsistence and incidental costs in connection with attendance at meetings of the Board of Trustees.

During the period 3 April 2023 to 1 June 2023 one of the trustees assumed the position of interim Chief Executive Ofcer. During this period and in relation to the resposibilities undertaken in this temporary additional capacity the trustee received remuneration of £40,633 and expenses of £1,737 were reimbursed to or paid on behalf of the trustee.

The group considers its key management personnel to comprise the Chief Executive Ofce and Executive Team. The total employment benefts of these individuals, including employer pension contributions, were £1,377k (2023: £1,557k).

50 | ANNUAL REPORT 2023/2024 | cips.org

9. Taxation

CIPS is a charity within the meaning of paragraph 1, Schedule 6 Finance Act 2010. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. As a result, no tax charge arose in the period. The group’s UK subsidiary company makes qualifying donations of all taxable profit to the charity. No corporation tax liability on this subsidiary arises in the accounts.

CIPS Australia and New Zealand Pty Limited is registered as a not for profit organisation in Australia. No tax liability on this subsidiary arises in the accounts.

CIPS Singapore Pte Ltd, CIPS Southern Africa Pty Limited, CIPS Professional Body South Africa Proprietary Ltd, CIPS MENA (Branch of CIPS Group) and CIPS Satinalma Tedarik Egit. Hizm. Ltd. Sti are subject to local company taxation. The following tax charge arises:

2024 2023
£000 £000
Current taxation
South Africa – current year 78 159
MENA 108 -
Singapore 11 -
Turkey 1 8
198 167
Deferred taxation
South Africa – currentyear (5) 79
Total tax charge for theyear (5) 79

cips.org | ANNUAL REPORT 2023/2024 | 51

10. Pension costs

The charity is the sponsoring employer of a funded defined benefit pension scheme in the UK, which provides retirement benefits based on members’ salary when leaving Pensionable Service. The assets of the scheme are held in a separately administered fund and the scheme is administered by a trustee body (independent of CIPS) who are responsible for ensuring that the scheme is sufficiently funded to meet current and future obligations. The liabilities set out in this note have been calculated based on the results of the full Scheme Funding Assessment, as at 31 October 2021, updated to 31 October 2024, allowing for interest and benefits paid. The present value of the defined benefit obligation and any past service costs were measured using the projected unit credit method. CIPS has agreed a funding plan with the trustee body, whereby contributions are made into the scheme to pay operating expenses and additional contributions to reduce the funding deficit where necessary. The disclosures set out below are based on calculations carried out as at 31 October 2024 by an independent qualified actuary. The results of the calculations and the assumptions adopted are shown below.

On 1 November 2003, the charity also established a stakeholder pension plan, which is open to new employees. Contributions to the plan by the employer are equal to twice that paid by the member and vary between 6% and a maximum of 12% dependent upon the age of the member.

The following information relates to the scheme’s valuation on an FRS102 section 28 basis at 31 October 2024.

Principal assumptions

The principal actuarial assumptions at the balance sheet date were:

2024 2023
Discount rate 5.20% 5.60%
Aggregate long-term expected rate of return on assets 5.20% 5.60%
(net of expenses)
Retail Prices Index (RPI) infation 3.35% 3.35%
Consumer Prices Index (CPI) infation 2.60% 2.55%
Future increases in deferred pensions 2.60% 2.55%
Rate of increase in salaries 2.60% 2.55%
Rate of increase to pensions in payment:
Fixed increases In line with scheme rules In line with scheme rules
RPI subject to max 5% p.a. 3.15% 3.15%
Post-retirement mortality 101% (males) / 108% 100% of S3PA tables with
(females) of S4PA tables future improvements in line
with future improvements with the CMI_2022 projection
in line with the CMI_2023 model with Core weightings,
projection model with Core Sk = 7.0, IAMI = 0.25% and a
weightings, Sk = 7.0, IAMI long term improvement rate
= 0.00%, w2020/2021=0%, of 1.25% p.a.
w2022/2023=15% and a long
term improvement rate of
1.25%p.a.
Cash commutation 75% maximum tax free cash 75% maximum tax free cash
Proportion married 80.00% 80.00%
Life expectancy of male aged 65 at balance sheet date 23.9 24.4
Life expectancy of male aged 65 in 20 years from balance sheet date 25.3 25.8
Life expectancy of female aged 65 at balance sheet date 26.1 27
Life expectancy of female aged 65 in 20 years from balance sheet date 27.5 28.4

Note: The calculations are based on the full corporate bond and inflation yield curves, with the rates quoted here being single equivalent rates. For the avoidance of doubt the above assumptions are in absolute terms. For the assumptions which apply to pensions in payment, allowances for any minimum and maximum increases have been made using the Black Scholes option pricing model.

52 | ANNUAL REPORT 2023/2024 | cips.org

Asset breakdown

The major categories of scheme assets as a percentage of total scheme assets are:

2024 2023
Diversifed growth funds 11.50% 19.10%
Corporate bonds 54.60% 50.80%
LDI 19.70% 20.60%
Cash 2.30% 1.90%
Insurance policies 6.10% 7.60%
Synthetic Credit 5.80% 0.00%
Total 100.00% 100.00%

The pension scheme has not invested in any of CIPS’s own financial instruments, nor in properties or other assets used by CIPS. The assets are all quoted in an active market with the exception of the insured pensions.

Net defined benefit asset

Net defned beneft asset
2024 2023
£000 £000
Fair value of scheme assets 14,428 13,877
Present value of defned beneft obligation (11,684) (11,802)
Defned beneft asset recognised in balance sheet 2,744 2,075
The total expense recognised in the statement of fnancial activities is as follows:
2024 2023
£000 £000
Current service cost 0 -
Administration expenses 382 345
Past service costs including curtailment - -
Recognised in arriving at net income/(expenditure) 382 345
Interest on the net defned beneft liability (116) (134)
Total 266 211
The total amounts taken to other recognised gains and losses are as follows:
2024 2023
£000 £000
Actual return on scheme assets 1,445 (1,108)
Less: amounts included in net interest on the net defned beneft (752) (758)
liability
Remeasurement gains and (losses) - return on scheme assets 693 (1,866)
excluding interest income
Remeasurementgains and (losses) - actuarialgains and (losses) (158) 1,053
Total 535 (813)
Changes in the present value of the defned beneft obligation are as follows:
2024 2023
£000 £000
Present value of defned beneft obligation at beginning of period 11,802 13,255
Benefts paid including expenses (1,294) (1,369)
Administration costs 382 345
Interest cost 636 624
Remeasurement(gains)and losses - actuarial(gains)and losses 158 (1,053)
Present value of defned beneft obligation at end ofperiod 11,684 11,802

cips.org | ANNUAL REPORT 2023/2024 | 53

Changes in the fair value of plan assets are as follows:

Changes in the fair value of plan assets are as follows:
2024 2023
£000 £000
Fair value of scheme assets at beginning of period 13,877 15,937
Interest income 752 758
Remeasurement gains and (losses) - return on scheme assets 693 (1,866)
excluding interest income
Contributions by employer 400 417
Beneftspaid includingexpenses (1,294) (1,369)
Fair value of scheme assets at end ofperiod 14,428 13,877

Movements over 5 year period

2024 2023 2022 2021 2020
£000 £000 £000 £000 £000
Fair value of scheme assets 14,428 13,877 15,937 25,181 24,482
Present value of defned beneft obligation (11,684) (11,802) (13,255) (20,365) (21,642)
Surplus 2,744 2,075 2,682 4,816 2,840
Gain/(Loss) arising from experience on scheme obligations - - - - -
Gain/(Loss) arising from changes in the assumptions for valuing the (158) 1,053 5,719 840 1,037
scheme obligations
Gain/(Loss) arising from experience on scheme assets 693 (1,866) (8,287) 802 1,166

54 | ANNUAL REPORT 2023/2024 | cips.org

11. Fixed assets

Tangible fixed assets

(a) Group

Tangible fxed assets
(a) Group
Freehold land Leasehold improvements Computer Total
and buildings equipment
£000 £000 £000 £000
Cost / Valuation
At 1 November 2023 1,318 9 124 1,740
Disposals during the year - - (3) (25)
Additions during the year - - 29 67
Exchange diference - - 4 4
At 31 October 2024 1,318 9 154 1,786
Accumulated depreciation
At 1 November 2023 (147) (1) (111) (449)
Disposals during the year - - 3 23
Charged during the year (16) (2) (8) (48)
Exchange diference - - (1) (1)
At 31 October 2024 (163) (3) (117) (475)
Net book value 31 October 2024 1,155 6 37 1,311
Net book value 31 October 2023 1,171 8 13 1,291
(b) Charity
Freehold land Leasehold improvements Computer Total
and buildings equipment
£000 £000 £000 £000
Cost / Valuation
At 1 November 2023 1,318 - 73 1,636
Disposals during the year - - - (5)
Additions during the year - - 8 45
Exchange diference - - (2) (2)
At 31 October 2024 1,318 - 79 1,674
Accumulated depreciation
At 1 November 2023 (147) - (68) (385)
Disposals during the year - - 5
Charged during the year (16) - (2) (36)
Exchange diference - - - -
At 31 October 2024 (163) - (70) (416)
Net book value 31 October 2024 1,155 - 9 1,258
Net book value 31 October 2023 1,171 - 5 1,251

cips.org | ANNUAL REPORT 2023/2024 | 55

Intangible fixed assets

(a) Group

Intangible fxed assets
(a) Group
Software Total
£000 £000
Cost / Valuation
At 1 November 2023 7,930 7,930
Disposals during the year - -
Additions during the year 353 353
AUC brought into use - -
At 31 October 2024 8,283 8,283
Amortisation
At 1 November 2023 (1,775) (1,775)
Disposals during the year - -
Charged duringtheyear (1,085) (1,085)
At 31 October 2024 (2,860) (2,860)
Net book value 31 October 2024 5,423 5,423
Net book value 31 October 2023 6,155 6,155
(b) Charity
Software Total
£000 £000
Cost / Valuation
At 1 November 2023 7,930 7,930
Additions during the year 353 353
AUC brought into use - -
At 31 October 2024 8,283 8,283
Amortisation
At 1 November 2023 (1,775) (1,775)
Charged duringtheyear (1,085) (1,085)
At 31 October 2024 (2,860) (2,860)
Net book value 31 October 2024 5,423 5,423
Net book value 31 October 2023 6,155 6,155
The Group has individually material software (2023: £6,155k) as follows:
Carrying Remaining
Amount amortisation
£000 period
CX Platforms 5,423 5 years

56 | ANNUAL REPORT 2023/2024 | cips.org

12. Listed investments

Group Charity Group Charity
2024 2024 2023 2023
£000 £000 £000 £000
Market value at 1 November 4,461 4,461 4,540 4,540
Additions 129 129 138 138
Disposals - - (247) (247)
Net unrealisedgains 401 401 30 30
Market value at 31 October 4,991 4,991 4,461 4,461
Historical cost of investments 3,895 3,895 3,766 3,766

Listed investments are managed by appointed fund managers. The investment strategy is income oriented with investments being held in the Barclays Charity Distribution Fund and the Charities Property Fund with a balance held in cash as follows:

Group Charity Group Charity
2024 2024 2023 2023
£000 £000 £000 £000
Barclays Charity Distribution Fund 4,873 4,873 4,337 4,337
Charities PropertyFund 118 118 123 123
Market value at 31 October 4,991 4,991 4,460 4,460

13. Investment in subsidiary companies

2024 2023
£ £
Shares in subsidiaryundertakings at cost
At 1 November 2023 and 31 October 2024 8 8

14. Debtors

Group Charity Group Charity
2024 2024 2023 2023
£000 £000 £000 £000
Trade debtors 7,864 6,343 5,945 4,219
Other debtors 374 34 175 8
Deferred taxation 82 - 79 -
Prepayments and accrued income 1,933 1,725 1,677 1,555
Due from subsidiaryundertakings - 3,946 - 3,028
10,253 12,048 7,876 8,810

Included in amounts due from subsidiary undertakings is an amount of Nil (2023: £145k) which represents a loan from the charity to CIPS Australia and New Zealand Pty Limited. Currently the charity does not levy an interest charge on the loan. There is no formal repayment plan in situ, payments are made on an ad hoc basis as available funds allow.

Deferred taxation arises on timing differences and losses carried forward in the group’s South African subsidiaries.

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15. Creditors

Amounts falling due in less than 1 year

Amounts falling due in less than 1 year
Group Charity Group Charity
2024 2024 2023 2023
£000 £000 £000 £000
Trade creditors 2,658 2,549 2,554 2,456
Bank loans 379 379 500 500
Other creditors including taxation and social security 831 758 720 410
Accruals and deferred income 15,819 13,335 15,203 12,681
Amounts due to subsidiaryundertakings in <1year - 2,955 - 2,636
19,687 19,976 18,977 18,683
Deferred income as at 1 November 2023 12,552 10,482 11,171 9,188
Released during the year (12,552) (10,482) (11,171) (9,188)
Deferred duringtheyear 12,770 10,616 12,552 10,482
Deferred income as at 31 October 2024 12,770 10,616 12,552 10,482

Income is deferred where payment is received in advance for contracted services that have yet to be provided.

Amounts falling due in more than 1 year

Amounts falling due in more than 1 year
Group Charity Group Charity
2024 2024 2023 2023
£000 £000 £000 £000
Bank loans - - 383 383
- - 383 383

CBILS loan

CIPS entered into a loan from Barclays Bank under the UK government Coronavirus Business Interruption Loan Scheme (CBILS) on 14 April 2020. The balance is repayable in 16 instalments over 4 years, following a 1 year capital repayment holiday, and accrues interest at the Bank of England rate, or a minimum of 1.79%.

The loans are repayable as follows:

Group Charity Group Charity
2024 2024 2023 2023
£000 £000 £000 £000
Under 1 year 379 379 500 500
Between 1 - 2 years - - 383 383
Between 2 - 5years - - - -
379 379 883 883

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16. Analysis of net assets between funds

(a) Group

(a) Group
2024
Tangible and Listed Net current Non-current Pension Total
intangible investments liabilities liabilities scheme
assets
£000 £000 £000 £000 £000 £000
Restricted funds - - 337 - - 337
Unrestricted funds 6,734 4,991 (4,318) - - 7,407
Pension scheme surplus - - - - 2,744 2,744
Funds at 31 October 2024 6,734 4,991 (3,981) - 2,744 10,488
2023
Tangible and Listed Net current Non-current Pension Total
intangible investments liabilities liabilities scheme
assets
£000 £000 £000 £000 £000 £000
Restricted funds - - 337 - - 337
Unrestricted funds 7,446 4,461 (5,310) (383) - 6,214
Pension scheme surplus - - - - 2,075 2,075
Funds at 31 October 2023 7,446 4,461 (4,973) (383) 2,075 8,626
(b) Charity
2024
Tangible and Listed Net current Non-current Pension Total
intangible investments liabilities liabilities scheme
assets and
investments
in subsidiary
companies
£000 £000 £000 £000 £000 £000
Restricted funds - - 337 - - 337
Unrestricted funds 6,681 4,991 (5,407) - - 6,265
Pension scheme surplus - - - - 2,744 2,744
Funds at 31 October 2024 6,681 4,991 (5,070) - 2,744 9,346
2023
Tangible and Listed Net current Non-current Pension Total
intangible investments liabilities liabilities scheme
assets and
investments
in subsidiary
companies
£000 £000 £000 £000 £000 £000
Restricted funds - - 337 - - 337
Unrestricted funds 7,406 4,461 (6,362) (383) - 5,122
Pension scheme surplus - - - - 2,075 2,075
Funds at 31 October 2023 7,406 4,461 (6,025) (383) 2,075 7,534

cips.org | ANNUAL REPORT 2023/2024 | 59

17. Reserves

Group

Group
Restricted Unrestricted Pension Total
funds funds reserve
£000 £000 £000 £000
At 1 November 2023 337 6,214 2,075 8,626
Transfers - (134) 134 -
Actuarial gain - - 535 535
Foreign currency translation loss - (67) - (67)
Net income for theyear - 1,394 - 1,394
At 31 October 2024 337 7,407 2,744 10,488
Restricted funds Unrestricted Pension reserve Total
funds
£000 £000 £000 £000
At 1 November 2022 383 6,702 2,682 9,767
Transfers - (206) 206 -
Actuarial loss - - (813) (813)
Foreign currency translation loss - (122) - (122)
Net loss for theyear (46) (160) - (206)
At 31 October 2023 337 6,214 2,075 8,626

Unrestricted funds include the currency translation reserve of £149k (2023: £339k) which is used to recognise exchange differences arising from translation of the financial statements of foreign operations to sterling.

Charity

Charity
Restricted Unrestricted Pension Total
funds funds reserve
£000 £000 £000 £000
At 1 November 2023 337 5,122 2,075 7,534
Transfers - (134) 134 -
Actuarial gain - - 535 535
Foreign currency translation loss - (144) - (144)
Net income for theyear - 1,421 - 1,421
At 31 October 2024 337 6,265 2,744 9,346
Restricted Unrestricted Pension Total
funds funds reserve
£000 £000 £000 £000
At 1 November 2022 383 5,332 2,682 8,397
Transfers - (206) 206 -
Actuarial loss - - (813) (813)
Foreign currency translation loss - (124) - (124)
Net income for theyear (46) 120 - 74
At 31 October 2023 337 5,122 2,075 7,534

Unrestricted funds include the currency translation reserve of £103k (2023: £91k) which is used to recognise exchange differences arising from translation of the financial statements of foreign operations to sterling.

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(a) Restricted funds

CIPS CIPS Health NOS Project NOS Project IDEA Project IDEA Project e-Comm Total Funds Total Funds
Foundation Procurement research
Africa
Charity and Group £000 £000 £000 £000 £000 £000
At 1 November 2023 309 - 2 14 12 337
Transfers from unrestricted reserves - - - - - -
Incoming funds - 2,286 - - - 2,286
Outgoing funds - (2,286) - - - (2,286)
At 31 October 2024 309 - 2 14 12 337
CIPS CIPS Health NOS Project IDEA Project e-Comm Total Funds
Foundation Procurement research
Africa
Charity and Group £000 £000 £000 £000 £000 £000
At 1 November 2022 355 - 2 14 12 383
Transfers from unrestricted reserves - - - - - -
Incoming funds - 1,727 - - - 1,727
Outgoing funds (46) (1,727) - - - (1,773)
At 31 October 2023 309 - 2 14 12 337

CIPS Foundation - a trust fund for furtherance of education in purchasing matters

CIPS Health Procurement Africa - external funding to strengthen health procurement processes in Africa

NOS Project - external funding for the development of world class National Occupational Standards for International Trade and Services and Supply Chain Management.

IDEA Project - external funding to develop a certifcate of competence for local government procurement specialists. e-Comm research - external funding for a specifc professional practice project.

All of the above funds are restricted income funds.

(b) Pension reserve

Charity and group

Charity and group
2024 2023
£000 £000
At 1 November 2023 2,075 2,682
Transfer from unrestricted reserves 134 206
Actuarialgain 535 (813)
At 31 October 2024 2,744 2,075

Transfers during the year comprise employer contributions to the pension scheme in excess of the service and administration costs and the net of expected returns over interest cost.

cips.org | ANNUAL REPORT 2023/2024 | 61

18. Leasing commitments

At 31 October 2024 the group’s and the charity’s future minimum lease payments under non-cancellable operating leases were as follows:

Group Charity Group Charity
2024 2024 2023 2023
£000 £000 £000 £000
Amounts due within one year 4 4 5 5
Amounts due between one and fveyears 5 5 - -
9 9 5 5

Total leasing costs for the year were £6k. The leasing commitments detailed above are in respect of the lease of office equipment.

19. Related party transactions

During the year the charity provided services amounting to £91K (2023: £57k) to CIPS Corporate Services Ltd, a wholly owned subsidiary. The amount due from CIPS Corporate Services Ltd at the end of the year was £139k (2023: £54k).

During the year, the charity provided services amounting to £969k (2023: £452k) to CIPS Southern Africa (Pty) Ltd, a 49% owned subsidiary, whereby the remaining 51% is controlled by CIPS. The amount due from CIPS Southern Africa (Pty) Ltd at the year-end was £221k (2023: (£107k)).

During the year, the charity provided services amounting to £227k (2023: £114k) to CIPS Professional Body South Africa Proprietary Ltd, a not for profit entity with members controlled by CIPS. The amount due from CIPS Professional Body South Africa Proprietary Ltd at the year-end was £203k (2023: £184k).

During the year, the charity provided services amounting to £290k (2023: £106k) to CIPS Australia and New Zealand Pty Ltd, a wholly owned subsidiary. The amount due from CIPS Australia and New Zealand Pty Ltd, at the end of the year was £550k (2023: £244k). A provision of £550k (2023: £185k) is included in the charity accounts against the debt due from Australia.

During the year, the charity provided services amounting to £105k (2023: £41k) to CIPS Singapore (Pty) Ltd, a wholly owned subsidiary. The amount due to CIPS Singapore Pty Ltd at the end of the year was £222k (2023: £129k due from CIPS Singapore Pty Ltd).

During the year, the charity provided services amounting to £92k (2023: £28k) to CIPS USA Inc, a wholly owned subsidiary. The amount due from CIPS USA Inc at the end of the year was £1,150k (2023: £1,320k). A provision of £728k (2023: £1,020k) has been made in the charity accounts against the debt due from the USA.

During the year, the charity provided services amounting to £32k (2023: £Nil) to CIPS For Business Service Co, a wholly owned subsidiary. The amount due from CIPS For Business Service Co at the end of the year was £365k (2023: £Nil).

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20. Financial instruments

The group’s and charity’s financial instruments may be analysed as follows:

Group Charity Group Charity
2024 2024 2023 2023
£000 £000 £000 £000
Financial assets
Financial assets measured at fair value through proft or loss 4,991 4,991 4,461 4,461
Financial assets that are debt instruments measured at amortised cost 13,691 13,181 12,248 11,103
Financial liabilities
Financial liabilities measured at amortised cost 3,037 5,883 3,437 5,975

Financial assets measured at fair value through profit or loss comprise fixed asset investments in units in investment funds designed for use by charities.

Financial assets measured at amortised cost comprise stocks, cash, trade debtors, other debtors and amounts due from group undertakings.

Financial liabilities measured at amortised cost comprise trade creditors, loans and amounts due to group undertakings.

21. Post balance sheet events

There are no post balance sheet events to report.

cips.org | ANNUAL REPORT 2023/2024 | 63

22. Prior year statement of financial activities

Consolidated statement of financial activities for the year ended 31 October 2023

Notes Unrestricted Restricted Pension Total Total
funds funds reserve funds funds
2023 2022
£000 £000 £000 £000 £000
Income from:
Charitable activities
Membership and professional development, 13,301 - - 13,301 13,737
subscriptions and fees
Corporate business 15,384 1,727 - 17,111 12,808
Magazine, conferences and sponsorship 3,498 - - 3,498 3,433
Coronavirus job retention scheme - - - - -
Other 30 - - 30 28
Investments 3 266 - - 266 197
Total income 32,479 1,727 - 34,206 30,203
Expenditure on:
Charitable activities 4 32,715 1,727 - 34,442 27,853
Total expenditure 32,715 1,727 - 34,442 27,853
Net (expenditure)/income before investment gains (190) (46) - (236) 2,350
Net (losses)/gains on investments 12 30 - - 30 (459)
Transfers between funds 17 (206) - 206 - -
Net (expenditure)/income (366) (46) 206 (206) 1,891
Other recognised gains and losses
Pension scheme actuarial gain/(loss) 10 - - (813) (813) (2,568)
Foreign currencytranslationgain/(loss) (122) - - (122) (66)
Net movement in funds (534) - (607) (1,141) (743)
Reconciliation of funds
Funds brought forward 6,702 383 2,682 9,767 10,510
Balance carried forward 6,168 383 2,075 8,626 9,767

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Parent charity statement of financial activities for the year ended 31 October 2023

Notes Unrestricted Restricted Pension Total Total
funds funds reserve funds funds
2023 2022
£000 £000 £000 £000 £000
Income from:
Charitable activities
Membership and professional development, 11,323 - - 11,323 11,366
subscriptions and fees
Corporate business 11,938 1,727 - 13,665 9,938
Magazine, conferences and sponsorship 2,347 - - 2,347 2,083
Coronavirus job retention scheme - - - - -
Income from subsidiaries 865 - - 865 880
Other 24 - - 24 23
Investments 3 167 - - 167 146
Total income 26,664 1,727 - 28,391 24,436
Expenditure on:
Charitable activities 4 26,620 1,727 - 28,347 22,312
Total expenditure 26,620 1,727 - 28,347 22,312
Net (expenditure) before investment gains 90 (46) - 44 2,124
Net (losses)/gains on investments 12 30 - - 30 (459)
Transfers between funds 17 (206) - 206 - -
Net (expenditure) (86) (46) 206 74 1,665
Other recognised gains and losses
Pension scheme actuarial gain/(loss) 10 - - (813) (813) (2,568)
Foreign currencytranslationgain/(loss) (124) - - (124) 200
Net movement in funds (256) - (607) (863) (703)
Reconciliation of funds
Funds brought forward aspreviouslystated 5,332 383 2,682 8,397 9,100
Balance carried forward 5,076 383 2,075 7,534 8,397

All items above derive from continuing operations.

There are no recognised gains or losses other than those stated above.

cips.org | ANNUAL REPORT 2023/2024 | 65

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66 | ANNUAL REPORT 2023/2024 | cips.org