## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
**Charity No: 1043409 (England and Wales)**
**Charity No: SCO38212 (Scotland)**
## **ANNUAL REPORT**
**AND**
**FINANCIAL STATEMENTS**
**FOR THE YEAR ENDED**
**31 DECEMBER 2021**
**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **CONTENTS**
||**Page**|
|---|---|
|Reference and Administrative Details|2|
|Forward by the Chair of the Trustee Board and Chief Executive|3|
|Report of the Trustee Board|5|
|Independent Auditors’ Report|18|
|Consolidated Statement of Financial Activities|23|
|Consolidated Balance Sheets|24|
|Consolidated Statement of Cash Flows|25|
|Notes to the Financial Statements|26|
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**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT REFERENCE AND ADMINISTRATIVE DETAILS**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Registered office**
106-109 Saffron Hill London EC1N 8QS **Telephone:** 0207 831 3110 **E-mail:** admin@ciwem.org **Website:** www.ciwem.org **Registered Charity Number:** 1043409 (England and Wales) SC038212 (Scotland) **Bankers** Barclays Bank Plc Level 27, 1 Churchill Place Canary Wharf London E14 5HP National Westminster Bank PO Box No 159, 332 High Holborn London WC1V 7PS **Auditors** Moore Kingston Smith LLP Devonshire House 60 Goswell Road London EC1M 7AD **Solicitors** Bircham Dyson Bell LLP 50 Broadway, Westminster London SW1H OBL
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**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
## **Forward by the Chair of the Trustee Board and Chief Executive**
In 2021 we delivered a comprehensive range of services and support to our members, and grew our membership and financial resources to enable us to deliver our charitable objectives. Despite the ongoing challenges presented by the pandemic, we have achieved an overall performance in all major regards to at least pre-pandemic levels and in several ways exceeded expectations. We have also seen success with new initiatives and made investments that will put us back on track to deliver organisational objectives we had in place prior to the pandemic.
Our comprehensive digital events and training programmes enabled us to deliver the highest quantity and quality of Continuing Professional Development (CPD) in our history. Both of our industry-leading journals are now also available digitally, with the Journal of Flood Risk Management now fully open access, helping them reach more people than ever. The quality of content in our Environment Magazine stands up against any other publication of its type offering a breadth and diversity of voice that reaches across all corners of the water and environmental sector and beyond.
We have made significant strides to become more accessible and appealing to all. The launch of our WEMPride network has not only brought us the richness of input from the LGBTQ+ community, it has created a model for other networks that are being curated to make CIWEM a nurturing and inclusive space that celebrates diversity in all its forms. Our goal to be more accessible was established in our Corporate Strategy set in 2017 and this has now been carried forward into our new strategy.
We have been reviewing our corporate strategy through a board-led group and with the full participation of our executive team and in consultation with our membership base as well as existing and potential stakeholders. Our new strategy will enable us to fulfill our responsibilities to people and nature and will launch at our AGM in July 2022. We know we have the capability, opportunity and responsibility to support the resolution of the worlds’ greatest environmental challenges.
Despite the additional demands on our resource this year we have decided that we will continue to progress our digital transformation programme. As well as ear marking financial investment to support the programme, we also have a dedicated project management lead to oversee its development. We undertook a comprehensive scoping of user requirements and, through competitive procurement, appointed a company to develop our new systems. This will make us a truly ‘digital first’ organisation creating a state-of-the art experience for our members and would-be members.
Our Environmental Photographer of the Year competition (EPOTY) provided an unprecedented breadth and depth of publicity and engagement culminating with exhibitions at the COP26 in Glasgow and coverage by global press. EPOTY once again highlighted the urgency to act for climate and nature and the competition is a significant part of the way that we influence positive change.
CIWEM only exists through the generosity of our volunteers in our branches, specialist groups, technical panels, boards, and committees. These activities deliver essential support to our members and discharge our responsibilities as set out in our Royal Charter and as a registered charity. These include assessment of our professional registrations, delivery of CPD, provision of technical expertise and governance of our institution. We are grateful to the organisations that allow their employees time to volunteer and who support us financially, including sponsorship. Thank you
## **Environmental Performance**
We continue to be motivated by our declaration of climate and ecological emergency in 2019. We have seen a marked reduction in our scope two and three emissions. Some of these were prompted and accelerated by the
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**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
restrictions of the last two years but have been expanded and will become permanent features that contribute to our pledge to reach net zero by 2030.
Our scope one and two emissions mostly relate to our use of energy in our building. This energy has, for several years now, been provided from 100% renewable sources and our building is designed and operated to BREEAM Excellent rating. We recognise that a proportion of our energy use has now been dispersed due to remote working into environments where we have less control. Our response to this has included a move to low-energy IT equipment as part of our rolling replacement programme. We also issue guidance on how to save energy when using devices.
Our journals have now transitioned into fully online with significant reduction of shipping and printing emissions. Plans are progressing regarding the digitisation of The Environment magazine.
Our other contributions to resolving the climate and ecological emergency have come from our work to share knowledge, educate, and influence change. This has been achieved through our events, training, publications and awards and our partnerships with businesses and NGOs, all of which are detailed below.
## **Professional Competency Development**
The development of professional competency is central to our role and at the core of our Royal Charter. Our corporate, government and NGO partners all tell us how important this is to their organisations, especially in the mitigation of and adaptation to climate change and in addressing degradation of nature. Our professional registrations, training, events, journals, magazine, policy papers, technical panels, groups, and networks all provide opportunities for people to develop competence. The mandatory requirements to maintain CPD are embedded into our processes for all 4 types of registration that we offer.
We have begun a review of competence with our Professional Standards Committee, Executive and Board and this will continue into 2022 along with a review of our membership journey. This will enable people to have support at all stages of their career. The ways in which we support competence are addressed in more detail below.
## **Trustee board and executive team developments**
In 2021 we welcomed four new trustees to our board: Bushra Hussain, Hanae Bezad, Hannah Coogan and Lila Thompson. Due to the disruption experienced in 2020 the board agreed to keep on Sian Leake and Emily Shipton as early-career professionals to observe the board for a further year.
Two trustees, Andrew Chang and Eilish Kavanagh resigned during the year. Co-opted members David McHugh and David Wickens retired. We thank them for their support. Niki Roach retired following her year in office as President but is co-opted to the Trustee Board until our AGM in July 2022.
Paul Seeley stepped down from Chair of the Trustee Board after four years in the role. Andrew Dunn took over the role of Trustee Chair from September 2021. On behalf of the Executive, Trustees, and members we thank Paul for his guidance throughout his term and especially during the pandemic and for establishing a firm foundation for our institution to grow.
In recent years, we have invested in strengthening and broadening the skills with our executive team. The commercial pressures faced during 2020 could have threatened this, but we were able to maintain our team via the temporary redeployment of some staff and responsible use of Government grants. In early 2021, we managed to proceed with our planned recruitment to strengthen our membership, training, communications and marketing, and publications teams.
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**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
## **Organisational growth**
Our institution grew notably in the following ways.
Membership – our upward trend increased slightly in 2021 and with a reduction in attrition. We undertook a record number of Professional Reviews for new members and existing members making progress in their grade of membership.
Commercial – our commercial activities fuel our charitable outreach as well as maintain CIWEM as a going concern. Our income and surplus exceeded our budget enabling us to make investments in resources, digital transformation, and public-benefit activities. We also grew the charity’s free reserves.
Policy to Practice – is a new initiative created in 2021 with the purpose of developing support to industry and the public to implement water and environmental policies. This made an impressive start by securing projects to build support tools for advancing the Property Flood Resilience Code of Practice. An impressive pipeline of opportunities has been established for 2022 including a significant project addressing biosolids.
Events – we delivered two large scale online events in 2021, Flood and Coast and The Urban Drainage Group (UDG) conference on top of our broadest ever range of branch-led webinars. Our events were noted by attendees as being best in class, firmly establishing our presence in the online-events environment.
Learning and Development (L&D) – was identified as an area of growth and we made significant investments in resource in 2020 ahead of pandemic restrictions starting to bite. It is therefore pleasing to see that despite the difficulties that followed our L&D services have grown. In 2021 we delivered our major contract to Water UK on adoption of Sustainable Drainage Systems (SuDS) and substantively completed production of a comprehensive suite of training on Property Flood Resilience (PFR). We have also developed relationships with major organisations for training academies. Our portfolio is also expanding into non-technical training such as creating high performing teams and wellbeing.
We have some very exciting plans for 2022 consistent with our longer-term plans and building upon the successes of 2021.
- Enhance our membership support through development of membership journeys
- Launch of our new corporate strategy
- Delivery of phase 1 of our digital transformation
- Expansion of our Policy to Practice initiative and L&D partnerships
We look forward to working with our members and partners to meet these aims and continue to make CIWEM accessible and relevant.
Andrew Dunn
Chair, Trustee Board
Terry Fuller Chief Executive
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**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
The Trustee Board have pleasure in presenting their annual report and accounts for the year ended 31 December 2021. The report and accounts consolidate the activities of the Institution and its wholly owned subsidiaries CIWEM Services Limited and 106-109 Saffron Hill Management Limited (together referred to as “the group”).
In presenting their report the members of the Trustee Board confirm that they have governed this Institution with regard to the Charity Commission’s guidance on public benefit.
## **Organisation and Governance Arrangements**
CIWEM is a registered charity and is constituted and governed by its Royal Charter and Bye-Laws, which were granted in 1995 and amended in 2009 and 2020. The Trustee Board is responsible for setting out the ongoing strategic direction of the Institution and defining its business priorities. It also approves the terms of reference and monitors the work of Committees, Boards, Task Groups and Panels, to which certain operational matters are delegated. The Trustee Board meets at least five times a year to carry out its decision making and strategic responsibilities.
CIWEM also has a network of branches, special-interest groups, common-interest aetworks and technical panels that are run by volunteers. They work alongside the executive staff helping to deliver the Institution’s charitable objectives, principally through the provision of technical meetings and events for members, nationally and internationally. The Trustee Board monitors the work of the branches and groups at Trustee Board meetings.
## **Statement of Trustees Responsibilities**
The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The law applicable to charities in England & Wales and Scotland requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of the affairs of the charity and the group and of the income and expenditure of the group for that period. In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and then apply them consistently
- Observe the methods and principles in the Charities SORP
- Make judgements and estimates that are reasonable and prudent
- State whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business
The Trustee Board are responsible for ensuring that proper accounting records are kept which disclose with reasonable accuracy, at any time, the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Royal Charter.
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.
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**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
The Trustees are responsible for the maintenance and integrity of the charity and for the financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
The Trustees who served on the Trustee Board during the financial year are shown (in the positions they held at the year-end) and are as follows:
Trustees Andy Dunn (Trustee Chair) Bushra Hussain Claudia David (Honorary Treasurer) Hanae Bezad Hannah Coogan Joanna Cochrane (CIWEM Services Limited Chair) John Curtin Lila Thompson Matthew Jack (Junior President) Nicholas Howden (President & Professional Standards Committee Chair) Nicola Cunningham (Diversity & Inclusion Chair) Peter Brooks (Financial Audit & Resources Chair) Shaun Nicholson (Nominations Committee Chair) Stephanie Campbell Steve Thompsett (Strategy Implementation Chair) (President elect)
## Additional attendees
Co-opted board members Niki Roach
Early Career Professionals Emily Shipton Sian Leake
## Independent
David Wilkes (Remuneration Committee Chair)
CIWEM Services Limited – Non-Trustee board directors
Trevor Harrington Mike Summersgill Caroline Gould
Company Secretary Rachael Bliss
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**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
## **CIWEM Governance**
The Trustee Board is the body responsible for overseeing the Institution’s management and administration and for setting policy. The Board consists of up to 15 Trustees, including the Chair, Deputy Chair, Honorary Treasurer, the Presidential Team, Trustees and co-opted Board members who are not Trustees.
All Trustees are non-executive members of the Board appointed on merit from an independently facilitated selection process. Further details of Trustee appointment periods, the Trustee appointment process and terms of office can be found in the Institution’s Bye-Laws.
Trustees are recruited by advertisements in the Institution’s magazine, on the website, alongside with external adverts in the national press. Honorary Officers are appointed from amongst the Trustee Board.
All new Trustees go through an induction process with regular opportunities to update skills.
## **Management**
The Institution’s Chief Executive is responsible for the day-to-day management of the Institution’s affairs and for implementing policies agreed by the Trustee Board. The Chief Executive and Company Secretary are supported by Directors and Heads of Departments who make up the Executive Senior Management Team.
The Executive Senior Management Team at the end of 2021 comprised:
- Terry Fuller, Chief Executive
- Alastair Chisholm, Director of Policy
- Paul Shaffer, Director of Innovation and Delivery
- Rachael Bliss, Director of Operations
- Darren Eckford, Head of Learning and Development
- Irina Danilova, Head of Events
- Rebecca Sells, Head of External Affairs
- Sophie Dunajko, Head of Membership and Professional Standards
The remuneration of the Chief Executive is considered by the Remuneration Committee by reference to market rates and other appropriate factors. The Remuneration Committee provides oversight of the remuneration of the Executive Team and advises the Chief Executive who is responsible for setting the remuneration.
## **Risk Management and Internal Controls**
During 2021, the Trustee Board maintained a risk register, and regularly reviewed the major risks to which CIWEM is exposed, especially business, operational and financial risks, and accounting for the changing environment. Policies and procedures have been put in place to manage and reduce the identified risks, which were assessed in detail and updated to ensure their adequacy and effectiveness.
The principal risks, uncertainties and steps taken to mitigate the likelihood of their occurrence and impact are as follows:
**COVID 19.** This continued representing a significant risk to CIWEM in 2021. This included closure or limited capacity of our venue and loss of the rental income that it generates. Our face-to-face events, training programmes, and professional interviews had to be held using digital media.
We took the following mitigation measures to maintain the viability of the institution as a going concern, enable us to maintain services to our members and supporters and to mitigate financial impact:
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**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
- Maintained a detailed modelling and forecasting and monitoring of our cash flow
- Instigated measures to confine our costs to maintaining critical operations and those that generate income surplus
- Accessed cost relief and deferment being offered by The Government including the Furlough scheme, income tax and business tax
- Adapted the provision of our services to utilise online technology to allow these to continue including professional reviews, membership support, training, webinar events, publications and delivery of policy
**Member subscriptions** : Income from membership subscriptions continues to form a significant part of the Institution’s annual income, funding our activities for the public benefit and dissemination of best practice.
In 2021 we took the following direct action to retain and grow membership:
- Reviewed the support we provide for early careers professionals within the CIWEM membership
- Supported our members moving through their CIWEM journey and sought to bring back into membership those whose subscriptions have lapsed
- Undertook a full review of Technician membership (TechCIWEM) and relaunched grade
- Obtained a licence to offer Registered Environmental Practitioner (REnvP) from the Society for the Environment
- Reviewed the work-based learning (individual) route assessments for C.WEM, CEng, CEnv and CSci to deliver inclusive routes to chartership
- Launched an ongoing programme of work to aimed at supporting professional development across the WEM sector and developing the career support we provide to members with our Member Career Survey
We undertook a review of our membership subscriptions, and this led us to increase annual membership subscriptions in line with inflation, this equated to between a £1.00 to £5.00 increase across the grades. We continue to make our membership accessible with provisions in place for those that might see fees as a barrier to membership. With hardship rates for those experiencing financial hardship which includes taking a career break, for maternity and paternity leave or unemployment and supporting those from Low Income Countries with fee grades at 50% of the High-Income Country fees.
**Flood and Coast.** In 2019 we completed the purchase of this event from a privately-owned events company. The event was delivered by CIWEM for the first time in 2020 as a series of 4 digital webinars between October 2020 to April 2021, followed by a fully virtual event in Hopin in 2021. Despite significant reduction in income, we were able to make savings and delivered a profitable event. Some exhibitors and sponsors who had already paid for a ‘faceto-face’ event in 2020 were happy for the monies paid to be used towards the 2021 virtual event. Other monies have been accrued into the 2022 accounts in anticipation that the event will return to being in-person. This provided significant support to maintain our cash levels during challenging parts of the year. We are in formal partnership with the UK Environment Agency who have been heavily involved in previous years.
The Trustee Board recognises that there are inherent limitations in any system of risk management and accordingly even the most effective system can only provide reasonable and not absolute assurance that the key risks have been managed adequately. However, the Trustee Board is satisfied that, through the risk management process, the major risks have been mitigated to an acceptable level.
CIWEM also maintains a range of policies and procedures including: health and safety; equality and diversity; environmental; and IT systems protection. These policies are updated to ensure compliance with legal requirements and employment best practice. Formal certification to the latest 2015 ISO 14001 and the ISO9001 International Standards was
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**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
awarded to CIWEM in Spring 2016. A re-certification visit was due to take place in 2020 but this has been deferred due to the restrictions of the pandemic. It is our intention to regain this certification at the earliest opportunity.
## **Membership**
Throughout 2021, we renewed our membership development programme to grow and support our member community, with professional competence a continuing focus. We centred our activities on ensuring inclusive routes to chartership were in place through our work-based learning (individual) route assessments and facilitated further support to applicants by delivering additional guidance in multiple online formats, including the ongoing delivery of the membership webinar programme.
Our professional development and career support services continued to develop, with the launch of an ongoing programme of work aimed at supporting professional development across the WEM sector and developing the career support we provide to members. Our Early Careers Network supports those in the first five years of their water and environment careers.
During 2021 we were pleased to professionally register more than 200 individuals as engineers, scientists, environmentalists and water and environment managers, and award 285 individual registrations to our members. We extended our offering of external professional registrations to six, including Chartered Engineer (CEng), Chartered Environmentalist (CEnv) and Chartered Scientist (CSci), the intermediary registrations Incorporated Engineer (IEng) and Registered Environmental Practitioner (REnvP) and technical registration with Engineering Technician (EngTech).
Recognising the fundamental role technicians play in all areas across the water and environment sector we delivered a full review of our Technician grade, TechCIWEM to strengthen our own support to technicians and their employers across the sector.
We grew the number of established mentors on the CIWEM Mentor Platform to more than 65 – this is more than double the figure in 2019. This saw mentors support CIWEM members across a variety of areas including professional registration, career development and key skills.
The continued involvement of our dedicated volunteers underpins many of our membership activities. We would like to thank everyone who has contributed, your work has been invaluable across the CIWEM community. Thank you.
## **Diversity and Inclusion (D&I)**
Our culture and organisational strategy is founded upon two principles: that we are relevant and accessible to all.
As an institution, we are striving to become more inclusive and help the wider water and environment sector be that way too, supporting the many groups of people who face barriers to entering and staying in the sector. To us, this means making CIWEM a welcoming environment where everyone feels able to participate and wherethe full range of unique voices and experiences are represented and valued.
Since 2017 we have been working as part of the Royal Academy of Engineering and Science Council Diversity and Inclusion Progression Framework steering group, as well as with other professional bodies to improve our understanding of D&I share successes and working to bring about improvement in this area. The Progression Framework was developed to progress D&I across engineering and science professional bodies, it provides a unique tool to plan and track work on D&I across all activities within the Institution.
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**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
In 2021, we made important updates to our routes to professional registration and fellowship of the Institution to ensure these are accessible. This included reviewing our sponsor requirements to extend the community of individuals who can support applicants, removing barriers to those wishing to join the CIWEM community.
Our Early Careers Network Steering Group developed a programme of activities to provide accessible career support and to share the diverse stories of our individual members. This work is ongoing into 2022.
WEM Pride was founded in 2021 after conversations within and beyond CIWEM, with inspiration from similar initiatives in the global water and STEAM sector. Within the first year the network contributed to sharing stories in both in print and online and in 2022 our aim is to host events to share best practice and be a point of contact for our members and organisational partners.
Our executive and committees’ recruitment, nominations and award standards were reviewed to increase applicants from a wider pool of diversity. This was done by changing the language in the initial advert and using alternative promotional platforms.
We recognise this is just the beginning and are committed to reducing and eliminating inequality across the water and environment sector. Our D&I initiatives are being led by a sub-committee of our Trustee Board with Board members and the CEO working with our executive and external specialist D&I professionals.
## **Branches**
In 2021 the branches and groups delivered a programme of over 90 events, covering a wide range of topics such as climate adaptation and resilience, flooding, and wellbeing and professional development. These events provided over 100 hours of accessible CPD to our members and CIWEM continued to make these resources freely accessible to the public in line with our charitable aims.
CIWEM’s branch and group events continued in a fully virtual format in 2021 due to the global pandemic, however we will continue to deliver a similar volume of online events in 2022. Online branch and group events are more inclusive, drawing over 10 times the number of attendees on average, more environmentally friendly, and have created a new touchpoint for the public to learn more about our community and the work we do. This year our branch and group events reached a broader audience than ever before, with over 12,000 registrants from around the world joining us in 2021. Event recordings were also made available, where possible, which received over 217,000 views and over 4,700 hours watched in 2021.
CIWEM has 15 regional branches, two formal groups focused based on topic areas, and a range of less formal member-led networks. 2021 saw the launch of the WEM pride network and the Early Careers network, and we are currently working with members in Canada and India to develop new branches in these regions. All of our communities are member-led and arise because a member or group of members identifies a need and an opportunity to come together. The entire CIWEM family is deeply thankful for the continued support and passion our community provided in 2021 and are excited for what we will accomplish together in 2022.
These contributions underline the central importance of our branches and our volunteers that give so much time to CIWEM. Our board and executive meet with our branches on a regular basis and have consulted with branch leaders on our review of our corporate strategy. Through this we have a shared desire to develop the support that our central teams and board provide to our branches and to find ways to improve recognition of their contributions.
## **Policy and Technical**
Integrated land and water management and systems thinking emerged as the key themes for focus in our work in 2021. With two global Conferences of the Parties during the year – the first COP15 on biodiversity and the second
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## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
COP26 on climate, never had the crucial link between the nature and climate emergencies and the transcending role of water between them been so high on the agenda. “Everything is connected” as our President for the first half of the year, Niki Roach would say – and frequently did – on our podcast which featured a plethora of high profile and inspiring guests.
As with all recent years we saw alarming extremes of weather across the world, underscoring the need for strong ambition on action and multi-beneficial solutions across societies and economies. Our policy function was still weathering the impacts of the pandemic on its activity levels and we saw our panel members less frequently than we hoped to across the year. We picked this frequency up towards the end of 2021 and are continuing to do so across 2022.
One of the hot media issues during the year was sewage pollution from storm overflows. In a polarised and vociferous public debate we worked to emphasise the importance of a systems-approach to a challenge which has many and complex dimensions to it, working alongside academia, regulators, the water sector and NGO communities to bring balance to that public discourse.
Our work to support capacity growth and professionalism within the developing property flood resilience (PFR) sphere continues, linking up policy and learning and development functions through a variety of activities from training to quality assurance. On this note, welcoming Paul Shaffer to the wider team as Director of Innovation and Development and in a role which bridges between policy and practice halfway through the year opens up a range of new opportunities to support the sector.
CIWEM is looking to support the sector by consolidating initiatives and information to improve competency and consistency of delivery which in turn should improve the confidence of everyone working in and with the sector. A key element of this is to develop a Community of Practice around Property Flood Resilience (PFR) providing a virtual and physical platform to share good practice and experiences. During 2021 CIWEM has been working with the industry to scope a proposal and secure some funds for the Community of Practice. The process for fundraising is continuing with the aspiration that the project will start in the summer 2022.
Towards the later part of 2021 and as a result of our work on the EA Sludge Strategy delivered through our panel on wastewater and biosolids Water UK approached us to work with them, the water industry, regulators and other stakeholders to develop a long term bioresources strategy. This will set a long-term vision and provide greater certainty as to how sewage sludge and resultant bioresources can be effectively managed. During this time a proposal was developed with Water UK and key regulators for delivery over 2022.
## **Events**
The focus in 2021 has been primarily on delivering CIWEM’s programme of digital events and networking activities, and recreating an in-person event experience for our members, non-member, stakeholders and partners.
In 2021 CIWEM Events produced and delivered a wide range of commercial events, free webinars, virtual conferences, and expos including Sessions two & three of the Flood & Coast digital series, Flood & Coast Virtual Conference and Expo, Urban Drainage Group and Rivers and Coastal Group’s extensive events programmes and activities, CIWEM branch events and CIWEM stand-alone webinars on water and climate adaptation.
Due to the impactCOVID-19 continued to make on the events industry throughout 2021 and following the success of the digital events and webinars we ran the year before, our 2021 programme of events and networking Page | 12
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## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
activities was delivered virtually. This transition presented us with an opportunity to create interactive events that are even more accessible to our members and the public than ever before.
We ran our virtual events in Hopin and facilitated a real engagement between exhibitors, speakers and attendees using a virtual expo and networking features in Hopin. All of our virtual events were profitable and delivered within budget, they also generated a good number of membership leads and contributed to promoting CIWEM to broader audience.
We hosted and ran Flood & Coast 2021 as a four-day virtual Conference and Expo using the Hopin platform and attracted one thousand attendees across all four days. The feedback we received from our supporters, partners and stakeholders was very positive and we look forward to hosting our next edition of event between the 7[th] and 9[th] June 2022.
CIWEM Urban Drainage Group’s events programme included a two-day virtual training with a number of practical sessions on SuDS and a three-day virtual Annual Conference, previously known as the UDG Autumn event. The Annual Conference featured a packed programme of CPD-accredited panel sessions, technical paper presentations, panel discussions and workshops and addressed some of the hot topics of concern to water companies, regulators and other stakeholders eager to improve how urban drainage and wastewater services protect homes from flooding. We also hosted a virtual expo for the UDG Annual Conference where delegates could chat directly with organisations working on adaptation, resilience, and meeting Net Zero challenges in urban drainage management.
Our Rivers and Coastal Group hosted a series of short webinars that appealed to a variety of interests and covered a wide range of topics including risk management for flood and coastal projects, catchment management, water management and CIWEM competencies.
The diversity of our events programme in 2021 was a tribute to the breadth of interest and expertise within the CIWEM membership. We will continue to bring leading experts, thinkers, and decision-makers together to debate the biggest environmental challenges of the day in engaging and hopefully face-to-face formats.
## **Learning and Development**
2021 was a successful year for learning and development with several new courses announced and the successful development of the Environment Agency Property Flood Resilience training.
The redesign of the business-affiliate programme also led to a significant uptake in registered affiliates and the related accreditation activities.
PFR training was the major project in 2021. Working with an alliance of industry leading organisations we were able to navigate many challenges to deliver the training to exemplar standards. The training consists of specific content for three different audiences including, industry, Risk Management Authorities and the Environment Agency. Early 2022 we have delivered the foundation training for industry professionals to 100+ delegates and feedback has been very strong. The rest of the technical training will be launching second quarter 2022 and the RMA training will run at Flood & Coast 2022.
We have continued to update our online training portfolio adding three courses with Urban Wellbeing Solutions with further courses in Workplace Wellbeing and Reverse Osmosis launching in 2022. The first three courses in the WRC partnership went into production early 2022. We also successfully ran the first cohort through the Severn Trent Water Waste-Water Managers training in 2021, again with strong feedback and good delegate outcomes.
Page | 13
**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
The next cohort is due to be undertaken April 2022.
Our other online modules continued to perform well with Municipal Wastewater Treatment and Fast Track to Chartership both being standouts in terms of delegate numbers.
At the end of 2021 we became certified to deliver ‘Extended DISC’ profiling surveys and the associated leadership and team development workshops. These are further evidence of our intention to diversify our portfolio and commitment to ongoing learning for our members.
## **Professional Standards Committee**
The Professional Standards Committee (PSC) was formed in 2014 as a Standing Committee reporting to the Trustee Board. Its key role is to ensure best practice is followed in CIWEM’s membership policy as set out in its Royal Charter and to uphold the terms of our external registration licenses. It is assisted by an Engineering Subcommittee, a Business and Science Subcommittee, an Accreditation Board, and a Qualifications Panel, all of which report to the PSC.
## **Qualifications Panel**
The Qualifications Panel was established to fulfil CIWEM's obligation under the Engineering Council's Registration Code of Practice to maintain a panel of competent registrants to assess applicants for registration who do not possess the Council's exemplifying qualifications. The Panel reports to the Professional Standards Committee. Typically, the applicants considered by the Panel hold an overseas degree or a degree in a subject other than engineering.
## **Accreditation Board**
2021 was steady as it goes for the accreditation board. Accreditation visits held steady without growing significantly in 2021 which was a tough climate for universities and accreditation in general. Professor John Bridgeman moved on as Chair at the back end of the year with Dr Philip Soar taking over for the start of 2022.
In 2021, all accreditation visits continued to be conducted remotely. Remote visits were carried out with Cranfield University, Loughborough University, Brunel University, and the University of the UAE. CPD Accreditations took place with Tu Delft and the accreditation of two major industry events for Aqua Enviro further expanded our CPD network.
2021 also saw the accreditation of the Professional Development Scheme at Jacobs, Metis Consultants, Arup, and Mott MacDonald.
Working groups were formed to review and update all CIWEM Accreditation documentation for the digital transformation and to better align with the CIWEM competencies in 2022.
## **Publications**
## _**The Environment magazine**_
The Environment magazine is a leader in the sector in terms of the breadth and quality of its editorial – something readers frequently attest to, and which brings us great pride. Across 2021 its pages covered a wide range of subject matter and many high-profile figures from the environmental space were featured. With COP26 towards the end of the year, Editor Karen Thomas reported daily from Glasgow, complementing an issue of the magazine dedicated to the high-level climate summit.
Page | 14
**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
The Environment consistently champions diversity and inclusion, and 2021 featured a youth takeover, championed women in our sector, and discussed LGBTQ+ inclusivity at work. It also considered issues of climate justice and tackled issues such as the impact of our changing climate on mental health.
We are working with our commercial partners Syon Media to build revenue streams associated with The Environment back to and beyond pre-pandemic levels. Working to a three-year strategy progress against this has been good, but we recognise the importance of the inexorable move to a digital world and are working to understand how we can best meet the needs of our members, commercial supporters and wider readership through digital delivery in future.
This thinking will form part of an organisation-wide content strategy due to be presented to the chief executive in May 2022, bringing together publications such as The Environment with digital-first content provision via our website and other media platforms such as our podcast.
## _**Journals**_
At the start of 2021 Water and Environment Journal became a digital-only publication, enabling members to access current issues and an extensive back catalogue of articles online for the first time. This change has also made significant progress towards CIWEM’s pledge to achieve net-zero emissions by 2030, avoiding the print and distribution of approximately 20,000 recycled paper copies each year. The journal received a record 600 original submissions and published 1150 pages of peer reviewed content over four issues, focussed on industrially impactful applied water research underpinned by scientific evidence.
The Journal of Flood Risk Management has seen significant growth in popularity since transitioning to Open Access in 2020, with annual article downloads exceeding 250,000 for the first time in 2021. The journal published papers across four issues with an impact factor of 3.88, providing an international platform for knowledge sharing in all areas related to flood risk. Of particular note was the publication of “Manging Flood Risk in a Changing Climate”, a virtual special issue looking back at a decade of peer reviewed journal content to mark COP26.
We look forward to continuing to grow CIWEM’s journals in 2022, with a new series of special issues and additions to the editorial team in the USA, China, and Europe.
Page | 15
**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
## **Commercial operations**
CIWEM’s commercial activities are undertaken through CIWEM Services Ltd. (CSL) which is a wholly owned subsidiary of CIWEM. CIWEM is a not-for-profit organisation and all surplus generated by CSL are gifted to CIWEM to further our public benefit activities including the support of our members’ professional development.
Our principal commercial revenue streams are:
- Advertising, jobs and sponsorship
- Events
- Publications
- Training and accreditation
- Venue Hire
## **Financial Picture**
- Group income for the year totalled £2.58m (£2.35m in 2020).
- Group expenditure in the year totalled £2.25m, after reversing part of the impairment on the Charity’s freehold property at Saffron Hill (for further details, see the ‘Saffron Hill’ section below). Excluding this impairment reversal, group expenditure was £2.39m in 2021 (£2.34m in 2020).
- Approximately 64% of our income (£1.66m) was from Membership subscriptions, and the remaining 36% (£0.92m) was from our commercial lettings, events, training and publications. We are transitioning towards less heavy reliance on our membership income and more towards an even split with income from our commercial activity, which will be even more evident in 2022.
## **Balance** Sheet
- CIWEM’s group balance sheet shows total net assets of £1.57m at the end of 2021.
- At the year end, the total funds held within the group were £1.57m (£1.24m for 2020) of which £1.49m were unrestricted (£1.16m for 2020).
## **Saffron Hill**
Impairment losses can arise in a year where the market value of the Saffron Hill property at the year end is deemed to be lower than the balance included in our financial statements. Our building at Saffron Hill was originally revalued as at 31 December 2019, resulting in an impairment loss in that year.
The Trustees are required to consider if there is any indication that the Saffron Hill property has been impaired at each balance sheet date. The building was formally revalued by external and professional valuers as at 31 December 2021. The report concluded that the value of the property was £3.94m, unchanged from the previous valuation as at 31 December 2019. As a result, a reversal of part of the previously recognised impairment loss, amounting to £143,794, has been recognised in 2021. This adjustment brings the carrying book value of the property at the year end in line with the valuer’s estimate of £3.94m (see Note 9).
## **Reserves Policy**
The Trustee Board are satisfied that the banking facilities negotiated in 2019 secured on the freehold of the building, and the fabric of the building itself, provide for appropriate reserves in the immediate term. This investment of reserves in the building has resulted in negative free reserves in the years since the property was originally purchased. Free reserves are calculated as the general fund at the year end, less the book value of fixed assets, plus the outstanding creditors at the year-end used to fund those fixed assets.
Page | 16
**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021**
## **REPORT OF THE TRUSTEE BOARD**
For the first time since the Saffron Hill property was originally purchased, free reserves at the end of 2021 increased from being negative to approximately £Nil. The Trustee Board has set out a five-year plan to continue to build free reserves which will reduce CIWEM’s dependency on bank support.
The five-year plan adopts a hierarchy for the allocation of our year end surplus with the objective being to contribute to all three of the following but in a proportion that reflects the priority of our aims and our financial performance.
1. Build our free reserves
2. Enhance our charitable activities
3. Pay-off loan capital above the contracted obligations.
This hierarchy will be reviewed at least annually and in the event of a significant change such as business risk or external economics. We do not consider this hierarchy to be changed by the impacts of the pandemic over 2021. It should be noted that our profitability in the year was reduced by the impacts of the pandemic also affecting our forecast longer term trajectory for building our free reserves.
The report of the trustees, including the message from the Chair and the Chief Executive and the Reference and Administrative details set out on the pages above, was approved by the Trustees on 31 May 2022 and is signed on their behalf as below.
Report of the Trustees signed by:
Andrew Dunn (Chair)
Claudia David (Honorary Treasurer)
Date: 31.05.22
Date: 31.05.22
Page | 17
**INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES OF**
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Opinion**
We have audited the financial statements of The Chartered Institution of Water and Environmental Management (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 December 2021 which comprise Group Statement of Financial Activities, the Group and Parent Charity Balance Sheets and 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 FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and the parent charity’s affairs as at 31 December 2021 and of the group’s and parent charity’s incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs(UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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**
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 trustees with respect to going concern are described in the relevant sections of this report.
Page | 18
**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
## **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. 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.
In connection with our audit of the financial statements, 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 or a material misstatement of the other information. 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**
In the light of the knowledge and understanding of the group and parent charity and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.
We have nothing to report in respect of the following matters where the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Charities Act 2011 require us to report to you if, in our opinion:
- the parent charity has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent charity’s financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit; or
- the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements;
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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 group and parent 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 group or parent charity or to cease operations, or have no realistic alternative but to do so.
Page | 19
**THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
## **Auditor’s responsibilities for the audit of the financial statements**
We have been appointed as auditor under Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, and Section 151 of the Charities Act 2011 and report to you in accordance with regulations made under those Acts.
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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the group and parent charity’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude 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 group and parent 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 auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or parent charity to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit report.
Page | 20
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charity.
Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Charities and Trustee Investment (Scotland) Act 2005 (as amended), regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended),, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
- We obtained an understanding of how the charity complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Page | 21
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT**
## **NOTES TO THE FINANCIAL STATEMENTS (continued)**
## **FOR THE YEAR ENDED 31 DECEMBER 2021**
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Use of our report**
This report is made solely to the charity's trustees, as a body, in accordance with Section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, and in respect of the consolidated financial statements, in accordance with Chapter three of Part eight 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 any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.
## **Andrew Stickland (Senior Statutory Auditor)**
For and on behalf of Moore Kingston Smith LLP, Statutory Auditor
Devonshire House 60 Goswell Road London EC1M 7AD
Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006
Page | 22
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31ST DECEMBER 2021**
|||**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|---|
||**Note**|**Funds**|**Funds**|**2021**|**2020**|
|||**£**|**£**|**£**|**£**|
|**INCOME**||||||
|DONATIONS AND LEGACIES|3|12,230|-|12,230|58,670|
|INCOME FROM CHARITABLE ACTIVITIES:||||||
|Membership subscription and fees||1,659,673|-|1,659,673|1,587,991|
|Conferences and events||229,484|6,432|235,916|81,034|
|Education and training courses||313,012|-|313,012|403,481|
|OTHER TRADING ACTIVITIES||||||
|Investment income|4|11|-|11|67|
|Books and publications||141,655|-|141,655|109,749|
|Lettings||133,935|-|133,935|92,606|
|OTHER INCOME||34,704|47,310|82,014|18,613|
|**TOTAL INCOME**||**2,524,704**|**53,742**|**2,578,446**|**2,352,211**|
|**EXPENDITURE**||||||
|EXPENDITURE ON RAISING FUNDS:||||||
|Lettings||135,487|-|135,487|199,895|
|EXPENDITURE ON CHARITABLE ACTIVITIES:||||||
|Membership services||1,086,754|-|1,086,754|900,914|
|Conferences and events||556,869|15,094|571,963|489,226|
|Education and training||204,331|-|204,331|364,125|
|Policy and partnerships||344,964|34,375|379,339|384,082|
|Donations, prizes and awards||12,588|541|13,129|4,162|
|REVERSAL OF IMPAIRMENT||||||
|ON FREEHOLD PROPERTY|9|(143,794)|-|(143,794)|-|
|**TOTAL EXPENDITURE**|**5**|**2,197,199**|**50,010**|**2,247,209**|**2,342,404**|
|**NET INCOME / (EXPENDITURE)**||||||
|**& MOVEMENT IN FUNDS**||**327,505**|**3,732**|**331,237**|**9,807**|
|**TOTAL FUNDS BROUGHT FORWARD**|**16**|**1,163,787**|**75,923**|**1,239,710**|**1,229,903**|
|**TOTAL FUNDS CARRIED FORWARD**|**16**|**1,491,292**|**79,655**|**1,570,947**|**1,239,710**|
Note 19 - shows the Charity Statement of Financial Activities
The notes on the following pages form part of these financial statements
23
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT CONSOLIDATED AND CHARITY BALANCE SHEETS AS AT 31ST DECEMBER 2021**
|||**Group**|**Group**|**Charity**|**Charity**|
|---|---|---|---|---|---|
||**Note**|**2021**|**2020**|**2021**|**2020**|
|||**£**|**£**|**£**|**£**|
|**Fixed Assets**||||||
|Tangible assets|9|3,975,009|3,910,872|3,975,009|3,910,872|
|Intangible assets|10|69,287|79,726|19,287|4,726|
|Investments|11|-|-|100|100|
|**Total Fixed Assets**||**4,044,296**|**3,990,598**|**3,994,396**|**3,915,698**|
|**Current Assets**||||||
|Debtors|12|357,540|411,237|156,410|147,106|
|Cash at bank and in hand||110,125|107,024|55,604|63,008|
|**Total Current Assets**||**467,665**|**518,261**|**212,014**|**210,114**|
|**Creditors:**Amounts falling||||||
|due within one year|13|1,227,369|1,229,553|994,220|1,108,900|
|**Net Current (Liabilities)**||**(759,704)**|**(711,292)**|**(782,206)**|**(898,786)**|
|**Creditors:**Amounts falling||||||
|due after more than one year|14|1,713,645|2,039,596|1,713,645|1,784,889|
|**Net Assets**||**1,570,947**|**1,239,710**|**1,498,545**|**1,232,023**|
|**Funds**|16|||||
|Restricted funds||79,655|75,923|79,655|75,923|
|Unrestricted funds:||||||
|General||1,491,292|1,163,787|1,418,890|1,156,100|
|**Total Funds**||**1,570,947**|**1,239,710**|**1,498,545**|**1,232,023**|
These Accounts were approved and authorised for issue by Trustee Board on 31 May 2022 and signed on its behalf by:
## **Andrew Dunn**
Chair
## **Claudia David**
Honorary Treasurer
The notes on the following pages form part of these financial statements
24
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **1. Accounting Policies**
## **Basis of Accounting**
These financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The Charity and its subsidiary are a public benefit group for the purposes of FRS 102 and therefore have also prepared the financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS 102 Charities SORP) and the Charities Act 2011.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The presentational currency used is British pound sterling, and balances are rounded to the nearest £1.
## **Going Concern**
The trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the Charity and Group to continue as a going concern. The trustees have made this assessment for a period of at least one year from the date of approval of the financial statements.
Detailed forecasts and projections have been prepared and these indicate that the Institution continues to be able to operate within the arranged overdraft facility with its bankers. However, as with all overdraft facilities, it is subject to annual review and can be cancelled at any time. The next annual review is in September 2022 although the Trustees have no reason to believe it will not be renewed.
Accordingly the trustees have concluded that there is a reasonable expectation that the Charity and Group has adequate resources to settle its debts as they fall due and therefore continue to adopt the going concern basis in preparing its financial statements.
## **Consolidated Financial Statements**
The group financial statements consolidate the financial statements of the charity and its wholly-owned subsidiary undertakings, CIWEM Services Limited and 106-109 Saffron Hill Management Limited.
25
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **1. Accounting Policies (continued)**
## **Branches and Groups**
The financial transactions of all UK branches and groups and the two non sterling branches of Hong Kong and the Republic of Ireland have been included within the main CIWEM accounts.
## **Income**
Subscription income represents total subscriptions received from members for the year. Subscription receipts relating to the following year are treated as deferred income. No accrual is made for subscriptions in arrears.
Conference & event income is recognised within the year held. Any conference and event receipts relating to the following year are treated as deferred income. Attendance and sponsorship is the main source of income, which is either invoiced in advance or payable as an entrance fee.
Income from government or other grants is recognised when the charity has entitlement to the funds, any performance conditions attached to the grant have been met, it is probable the income will be received and the amount can be reliably measured.
All other income is included in the Statement of Financial Activities when the Charity is entitled to the income, the amount is probable, and the amount can be measured reliably.
## **Expenditure**
Expenditure is charged to the Statement of Financial Activities on an accruals basis, net of recoverable VAT. All costs have been charged where possible directly to the relevant activity. Where costs cannot be directly attributed to particular activities, they have been allocated between expense headings on the basis of time spent.
## **Tangible fixed assets and Depreciation**
Tangible fixed assets are included in the balance sheet at original cost less accumulated depreciation. Cost includes capitalised interest and other finance costs where appropriate. Depreciation is provided on a straight line basis calculated to write down the cost of all tangible assets to their estimated residual values over the number of years of expected use. Leased assets are written off over the period of the lease. Assets are depreciated at the following rates:
|rates:||
|---|---|
|Freehold Land|Not depreciated|
|Freehold buildings|60 years|
|Fitting out costs|20 years|
|Furniture and fittings|5 years|
|Office equipment|5 years|
|Computer equipment and software|3 years|
|Management Information Systems|5 years|
All single purchases of less than £1,000 (excl. VAT) are written off in the year of purchase unless forming part of a more comprehensive scheme or capital project.
26
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **1. Accounting Policies (continued)**
## **Intangible fixed assets and Amortisation**
Intangible fixed assets are included in the balance sheet at original cost less accumulated amortisation. Amortisation is provided on a straight line basis calculated to write down the cost of all intangible assets to their estimated residual values over the number of years of expected use. Assets are depreciated at the following rates:
Computer equipment and software 3 years Flood & Coast event 4 years
## **Impairment of fixed assets**
Assets that are subject to depreciation or impairment are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is an indication that an asset may be impaired, the carrying value of the asset is tested for impairment. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. Assets that have previously been impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have deceased.
## **Taxation**
Under the provisions of Section 466-497 of the 2010 Corporation Taxes Act and section 256 (1) of the Taxation of Capital Gains Act 1992 , the Institution qualifies for exemption from liability to taxation on charitable income and gains.
## **Pensions**
Contributions are made to individual personal pension plans which are defined contribution schemes.
The pension costs charged to the Statement of Financial Activities in the year are those actually paid or due to be paid into the pension plans.
## **Translation of Overseas Currencies to Sterling**
The financial statements are presented in pounds sterling as this is the functional currency of the organisation. The accounts of non sterling branches are translated into sterling. Income and expenditure items are translated at appropriate average rates and monetary assets and liabilities at the rates at the balance sheet date. The currency gains and losses are taken to the unrestricted funds.
## **Operating Leases**
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
## **Unrestricted and Restricted Funds**
Unrestricted funds are expendable at the discretion of Trustee Board and in furtherance of the Institution’s charitable objectives.
The restricted funds held by the Group relate to the income and expenditure of CIWEM branches.
27
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **1. Accounting Policies (continued)**
## **Financial instruments**
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
With the exceptions of balances to to/from HMRC, prepayments and deferred income, all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 12 and 13 for the debtor and creditor notes.
The year end carrying value of financial assets and financial liabilities, measured at amortised cost, was as follows:
||**Group**||**Charity**||
|---|---|---|---|---|
||**2021**|**2020**|**2021**|**2020**|
||**£**|**£**|**£**|**£**|
|Financial assets|196,473|250,515|86,411|72,752|
|Financial liabilities|1,953,265|2,322,485|121,205|115,562|
The year end carrying value of financial assets that are equity instruments, measured at cost less impairment and relating to the Charity only were £100 (2020: £100). This balance relates to the investment in the subsidiary company, CIWEM Services Limited.
## **Accounting judgements and estimates**
- The key judgements and estimates used in the preparation of these Financial Statements are as follows:
- - The depreciation rate of tangible fixed assets and amortisation rate of intangible fixed assets (detailed above)
- The reversal of part of the impairment of the freehold property originally incurred in 2019 (see Note 9)
- - The provision for bad debts included at the year end
- Support costs are apportioned to direct activities based on the direct staff costs allocated to those activities (see Note 5)
There are no other key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
28
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **2. Subsidiary Undertakings**
CIWEM has a wholly-owned trading subsidiary undertaking, CIWEM Services Limited, a company incorporated and registered in England and Wales (registered no 03166701). The principal activities of this company are conferences, events and publications. All its profits are paid to the charity by gift aid. The charity owns the entire issued share capital of 100 ordinary shares of £1 each.
CIWEM controls a second trading subsidiary undertaking, 106-109 Saffron Hill Management Limited (SHML), a company limited by guarantee and incorporated and registered in England and Wales (registered no 08822614). SHML own the leasehold rights of the four privately owned residential flats on the top two floors of 106-109 Saffron Hill. The charity has charged 106-109 Saffron Hill Management Limited for the running and maintenance costs of the flats and these costs have been recharged to the flat owners.
A summary of the results of the subsidiaries is shown below:
## **CIWEM Services Limited**
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|**Profit and Loss Account**|||
|Turnover|1,030,469|934,453|
|Other income|-|26,997|
|Cost of sales|772,185|929,529|
|**Gross profit**|**258,284**|**31,921**|
|Administration expenses|185,882|24,234|
|**Profit on ordinary activities**|**72,402**|**7,687**|
|**Changes in equity:**|||
||**2021**|**2020**|
||**£**|**£**|
|Total equity brought forward|7,787|12,527|
|Total comprehensive income for the year|72,402|7,687|
|Gift aid distribution to parent charity|(7,687)|(12,427)|
|**Total equity carried forward**|**72,502**|**7,787**|
||**2021**|**2020**|
||**£**|**£**|
|**Balance Sheet**|||
|Intangible fixed assets|50,000|75,000|
|Current assets|274,538|440,623|
|Creditors: amounts falling due within one year|(252,036)|(253,129)|
|Creditors: Amounts falling due in after one year|-|(254,707)|
|**Total assets less current liabilities**|**72,502**|**7,787**|
|Called up share capital|100|100|
|Retained profit and loss account|72,402|7,687|
|**Shareholders' funds**|**72,502**|**7,787**|
29
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **2. Subsidiary Undertakings (continued)**
## **106 - 109 Saffron Hill Management**
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|**Profit and Loss Account**|||
|Turnover|14,629|13,471|
|Cost of sales|14,629|13,471|
|**Gross profit**|**-**|**-**|
|Interest|-|-|
|**Retained profit and loss account**|**-**|**-**|
||**2021**|**2020**|
||**£**|**£**|
|**Balance Sheet**|||
|Current assets|15,240|24,143|
|Cash at bank and in hand|6,602|5,037|
|Creditors: amounts falling due within one year|||
|Amounts owed to group undertakings|(6,602)|(17,366)|
|Other creditors|(15,240)|(11,814)|
|**Total assets less current liabilities**|**-**|**-**|
## **3. Donations and legacies**
||**Unrestricted**|**Restricted**||**Total**|**Total**|
|---|---|---|---|---|---|
||**Funds**|**Funds**||**2021**|**2020**|
||**£**|**£**||**£**|**£**|
|Government Grant: furlough scheme|12,230||-|12,230|58,352|
|Other donations|-||-|-|318|
|**Total Donations and legacies**|**12,230**||**-**|**12,230**|**58,670**|
## **4. Investment Income**
||**2021**||**2020**||
|---|---|---|---|---|
||**£**||**£**||
|Bank and Money Market Interest receivable||11||67|
|**Total Investment Income**||**11**||**67**|
30
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **5. Expenditure**
## **Current year**
||**Key**|**Activities**|||||
|---|---|---|---|---|---|---|
||**management**|**undertaken**|||**Reversal of**|**Total**|
||**/ Staff costs**|**directly**|**Support costs**||**impairment**|**2021**|
||**£**|**£**|**£**||**£**|**£**|
|Lettings|42,838|5,137|87,512||-|135,487|
|Membership services|399,287|184,009|503,458||-|1,086,754|
|Conferences and events|161,813|79,587|330,563||-|571,963|
|Education and training|138,289|66,042|-||-|204,331|
|Policy and partnerships|135,878|72,134|171,327||-|379,339|
|Prizes, awards,|||||||
|& scholarships|-|13,129|-||-|13,129|
|Support costs|429,920|662,940|(1,092,860)||-|-|
|Reversal of impairment|||||||
|of freehold property|-|-|-||(143,794)|(143,794)|
||**1,308,025**|**1,082,978**|**-**|**-**|**143,794**
|**2,247,209**|
## **Prior year**
||**Key**|**Activities**||||
|---|---|---|---|---|---|
||**management**|**undertaken**||**Reversal of**|**Total**|
||**/ Staff costs**|**directly**|**Support costs**|**impairment**|**2020**|
||**£**|**£**|**£**|**£**|**£**|
|Lettings|60,412|14,304|125,179|-|199,895|
|Membership services|300,097|203,999|396,818|-|900,914|
|Conferences and events|128,900|93,233|267,093|-|489,226|
|Education and training|115,265|248,860|-|-|364,125|
|Policy and partnerships|158,256|16,565|209,261|-|384,082|
|Prizes, awards,||||||
|& scholarships|-|4,162|-|-|4,162|
|Support costs|315,518|682,833|(998,351)|-|-|
||**1,078,448**|**1,263,956**|**-**|**-**|**2,342,404**|
Expenditure includes:
||**Total**|**Total**|
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Operating lease payments (excluding VAT)|4,663|4,168|
|Interest costs|40,801|41,698|
|Depreciation|99,992|101,760|
|(Loss) on foreign exchange|(100)|(1,567)|
31
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **6. Direct Support costs**
||**Total**
**2021**
**£**|**Total**
**2020**
**£**|
|---|---|---|
|Governance costs
Auditors' remuneration:
For Audit: Current year
For Audit: In respect of the previous year
Non-audit fees
Trustee Board costs
AGM/EGM costs
Legal and professional fees
Other support costs:
Management costs (including outsourced accounting)
Human Resources
Legal, professional & bank / finance costs
Premises
Office Services
ICT
Company Secretary|24,500
-
4,772
1,372
366
-
5,782
36,792
114,331
44,161
91,995
258,215
18,407
99,039|25,450
7,661
1,045
4,661
364
12,346
15,028|
|||66,555
106,683
35,356
96,294
255,966
20,609
101,370|
||**662,940**|**682,833**|
32
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **7. Employees and Key Management Personnel**
The key management personnel of the Charity comprise the trustees, the Chief Executive Officer and Senior Management team. The total amounts paid for salaries, fees and expenses in respect of the key management personnel of the Charity, inclusive of employer pensions and employer National Insurance contributions, were £361,001 (2020 - £286,410).
The average monthly number of employees during the period was 28 (2020 - 25). Staff costs during the period consisted of:
||**Total**|**Total**|
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Salaries|1,093,337|888,869|
|Temporary agency staff|483|10,825|
|Social security costs|114,764|93,635|
|Pension and life assurance costs|92,966|85,099|
|Recruitment costs|6,475|20|
||**1,308,025**|**1,078,448**|
The number of employees earning £60,000 in the year or more (exclusive of employer pensions and employer National Insurance contributions) was:
|||**Total**||**Total**||
|---|---|---|---|---|---|
|||**2021**||**2020**||
|||**Number**||**Number**||
|£60,000-|£70,000||2||-|
|£100,000|- £110,000||-||1|
|£110,000|- £120,000||1||-|
The pension payments for staff earning £60,000 or more in the year amounted to £38,391 (2020 - £19,800). These contributions were paid into defined contribution schemes.
## **8. Trustees**
The members of the Trustee Board received no remuneration in relation to fulfilling their role as Trustees (2020: £Nil). No Trustees were reimbursed expenses for travel and subsistence in the year (2020 - 2 Trustees reimbursed, amounting to £1,215).
33
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **9. Tangible Fixed Assets - Group and Charity**
||**Furniture and**|**Office**|**Freehold**|**Computer**||
|---|---|---|---|---|---|
||**Fittings**|**Equipment**|**Property**|**Systems**|**Total**|
||**£**|**£**|**£**|**£**|**£**|
|**Cost**||||||
|At 1st January 2021|10,228|51,133|6,273,773|97,769|6,432,903|
|Additions|-|-|-|20,335|20,335|
|Disposals|-|-|-|(16,851)|(16,851)|
|**At 31st December 2021**|**10,228**|**51,133**|**6,273,773**|**101,253**|**6,436,387**|
|**Depreciation**||||||
|At 1st January 2021|10,228|30,949|2,405,674|75,180|2,522,031|
|Charge in year|-|9,183|71,893|18,916|99,992|
|Disposals|-|-|-|(16,851)|(16,851)|
|Reversal of impairment||||||
|on freehold||||||
|property (see below)|-|-|(143,794)|-|(143,794)|
|**At 31st December 2021**|**10,228**|**40,132**|**2,333,773**|**77,245**|**2,461,378**|
|**Net Book Value**||||||
|**At 31st December 2021**|**-**|**11,001**|**3,940,000**|**24,008**|**3,975,009**|
|**At 31st December 2020**|**-**|**20,184**|**3,868,099**|**22,589**|**3,910,872**|
A valuation of the freehold property at 106-109 Saffron Hill EC1N 8QS was carried out by Allsop LLP of 33 Wigmore Street W1U 1BZ. The market value of the freehold property was £3,940,000 as at 31 December 2021. Part of the impairment loss recognised in the 2019 financial statements has been reversed accordingly.
34
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **10. Intangible Fixed Assets - Group**
||**Computer**|**Flood & Coast**||
|---|---|---|---|
||**Systems**|**Event**|**Total**|
||**£**|**£**|**£**|
|**Cost**||||
|At 1st January 2021|332,910|100,000|432,910|
|Additions|19,286|-|19,286|
|**At 31st December 2021**|**352,196**|**100,000**|**452,196**|
|**Amortisation**||||
|At 1st January 2021|328,184|25,000|353,184|
|Charge in year|4,725|25,000|29,725|
|**At 31st December 2021**|**332,909**|**50,000**|**382,909**|
|**Net Book Value**||||
|**At 31st December 2021**|**19,287**|**50,000**|**69,287**|
|**At 31st December 2020**|**4,726**|**75,000**|**79,726**|
Computer systems additions in the year of £19,286 relate to CRM development. These additions were not amortised in the year because the CRM was not in use before the year end.
## **11. Fixed Asset Investments**
||||**Group**||||**Charity**|||
|---|---|---|---|---|---|---|---|---|---|
||**2021**|||**2020**||**2021**||**2020**||
||**£**|||**£**||**£**||**£**||
|Investments held in subsidiary||||||||||
|CIWEM Services Limited (Note 2)||-|||-||100||100|
|**Total Investments**||**-**|||**-**||**100**||**100**|
## **12. Debtors**
||**Group**||**Charity**||
|---|---|---|---|---|
||**2021**|**2020**|**2021**|**2020**|
||**£**|**£**|**£**|**£**|
|Trade debtors|88,964|161,751|1,800|-|
|Other debtors|107,509|88,764|78,009|55,386|
|Prepayments (under 1 year)|153,524|65,180|62,456|52,128|
|Prepayments (over 1 year)|-|73,316|-|-|
|Amounts owed from|||||
|subsidiary undertakings|-|-|6,602|17,366|
|VAT recoverable|7,543|22,226|7,543|22,226|
||**357,540**|**411,237**|**156,410**|**147,106**|
Trade debtors above are net of provisions made against specific bad debts within the subsidiaries totalling £31,339 (2020: £28,305).
35
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **13. Creditors: Amounts falling due within one year**
||**Group**||**Charity**||
|---|---|---|---|---|
||**2021**|**2020**|**2021**|**2020**|
||**£**|**£**|**£**|**£**|
|Trade creditors|85,242|127,890|38,167|71,545|
|Taxation and social security|63,942|72,665|48,574|23,364|
|Other creditors|15,540|12,108|7,540|3,108|
|Accruals|138,838|142,891|75,498|40,909|
|Deferred income|844,337|736,537|726,084|700,036|
|Amounts due to|||||
|subsidiary undertakings|-|-|18,887|132,476|
|Bank overdraft|1,753|58,315|1,753|58,315|
|Bank loan (see Note 14)|77,717|79,147|77,717|79,147|
||**1,227,369**|**1,229,553**|**994,220**|**1,108,900**|
The bank overdraft facility is secured on the Saffron Hill property. The interest rate charged is Bank of England Base Rate plus 3% fixed for five years from September 2019. The Facility can be cancelled by the bank at any time.
At the year end, there was no balance outstanding to the pension fund (2020: £Nil).
||**Group**||**Charity**||
|---|---|---|---|---|
||**2021**|**2020**|**2021**|**2020**|
||**£**|**£**|**£**|**£**|
|**Deferred income:**|||||
|Balance brought forward|736,537|816,925|700,036|710,257|
|Amount released to income|(736,537)|(816,925)|(700,036)|(710,257)|
|Amount deferred in the year:|||||
|Membership receipts|726,084|700,036|726,084|700,036|
|Invoices relating to events|103,570|36,501|-|-|
|Invoices relating to room rentals|14,683|-|-|-|
|**Balance carried forward**|**844,337**|**736,537**|**726,084**|**700,036**|
36
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **14. Creditors: Amounts falling due after one year**
||**Group**||**Charity**||
|---|---|---|---|---|
||**2021**|**2020**|**2021**|**2020**|
||**£**|**£**|**£**|**£**|
|Deferred income:|||||
|Invoices relating to events|-|234,707|-|-|
|Accruals|-|20,000|-|-|
|Bank loan|1,713,645|1,784,889|1,713,645|1,784,889|
||**1,713,645**|**2,039,596**|**1,713,645**|**1,784,889**|
Payments of accruals and the bank loan are as follows:
||**Group**||**Charity**||
|---|---|---|---|---|
||**2021**|**2020**|**2021**|**2020**|
||**£**|**£**|**£**|**£**|
|One to Two Years|77,717|79,147|77,717|79,147|
|Two to Five Years|1,635,928|1,725,742|1,635,928|1,705,742|
||**1,713,645**|**1,804,889**|**1,713,645**|**1,784,889**|
The bank loan is secured on the Saffron Hill property. The interest rate charged is Bank of England Base Rate plus 1.95% fixed for five years from September 2019.
The carrying net book value of the property on which the loan is secured is £3,940,000 (2020: £3,868,099).
## **15. Operating Lease Commitments**
At the reporting end date the company had the following future minimum lease payments under non-cancellable operating leases (all for equipment) which fall due as follows:
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|Less than one year|1,498|3,596|
|Two - five years|-|1,498|
37
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **16. Movement on Funds**
## **Group Current Year**
||**£**
**Balance at**
**31/12/2020**|**Income**
**£**|**£**
**Expenditure**|**Balance at**
**31/12/2021**
**£**|
|---|---|---|---|---|
|**Restricted Funds**
Branch Funds
Storm overflows project
**Unrestricted Funds**
General charitable funds|75,923
-
75,923
1,163,787|6,432
47,310
53,742
2,524,704|(15,635)
(34,375)
(50,010)
(2,197,199)|66,720
12,935|
|||||79,655
1,491,292|
|**Total Funds**|**1,239,710**|**2,578,446**|**(2,247,209)**|**1,570,947**|
The restricted branch funds relate to the income and expenditure of CIWEM branches.
The restricted Storm overflows project relates to funding of £47,310 from Esmée Fairbairn Foundation. The grant is restricted towards producing and disseminating a report which addresses the problems of raw sewage pollution from Combined Sewer Overflows. The fund balance at the year end will be spent in 2022.
## **Group Prior Year**
||**Balance at**|||**Balance at**|
|---|---|---|---|---|
||**31/12/2019**|**Income**|**Expenditure**|**31/12/2020**|
||**£**|**£**|**£**|**£**|
|**Restricted Funds**|||||
|Branch Funds|88,408|6,965|(19,450)|75,923|
|**Unrestricted Funds**|||||
|General charitable funds|1,141,495|2,345,246|(2,322,954)|1,163,787|
|**Total Funds**|**1,229,903**|**2,352,211**|**(2,342,404)**|**1,239,710**|
Group restricted income in the prior year consisted of branch conference and event income of £6,791 (included within charitable activities) and £174 of other income. Restricted expenditure consisted of branch conference and event expenditure of £19,232 (included within charitable activities) and donations, prizes and awards expenditure of £218 (included within charitable activities).
38
## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **16. Movement on Funds (continued)**
## **Charity Current Year**
||**Balance at**
**31/12/2020**
**£**|**Income**
**£**|**£**
**Expenditure**|**Balance at**
**31/12/2021**
**£**|
|---|---|---|---|---|
|**Restricted Funds**
Branch Funds
Storm overflows project
**Unrestricted Funds**
General charitable funds|75,923
-
75,923
1,156,100|6,432
47,310
53,742
1,715,173|(15,635)
(34,375)
(50,010)
(1,452,383)|66,720
12,935|
|||||79,655
1,418,890|
|**Total Funds**|**1,232,023**|**1,768,915**|**(1,502,393)**|**1,498,545**|
## **Charity Prior Year**
||**Balance at**|||**Balance at**|
|---|---|---|---|---|
||**31/12/2019**|**Income**|**Expenditure**|**31/12/2020**|
||**£**|**£**|**£**|**£**|
|**Restricted Funds**|||||
|Branch Funds|88,408|6,965|(19,450)|75,923|
|**Unrestricted Funds**|||||
|General charitable funds|1,129,068|1,655,750|(1,628,718)|1,156,100|
|**Total Funds**|**1,217,476**|**1,662,715**|**(1,648,168)**|**1,232,023**|
Charity restricted income in the prior year consisted of branch conference and event income of £6,791 (included within charitable activities) and £174 of other income. Restricted expenditure consisted of branch conference and event expenditure of £19,232 (included within charitable activities) and donations, prizes and awards expenditure of £218 (included within charitable activities).
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## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **17. Analysis of Group Net Assets between Funds**
## **Current Year**
|||**Net Current**|**Creditors due**||
|---|---|---|---|---|
|||**Assets**|**after more**||
||**Fixed Assets**|**/(Liabilities)**|**than 1 year**|**Total**|
||**£**|**£**|**£**|**£**|
|Restricted Funds|-|79,655|-|79,655|
|Unrestricted Funds|4,044,296|(839,359)|(1,713,645)|1,491,292|
|**Total Funds**|**4,044,296**|**(759,704)**|**(1,713,645)**|**1,570,947**|
## **Prior Year**
|||**Net Current**|**Creditors due**||
|---|---|---|---|---|
|||**Assets**|**after more**||
||**Fixed Assets**|**/(Liabilities)**|**than 1 year**|**Total**|
||**£**|**£**|**£**|**£**|
|Restricted Funds|-|75,923|-|75,923|
|Unrestricted Funds|3,990,598|(787,215)|(2,039,596)|1,163,787|
|**Total Funds**|**3,990,598**|**(711,292)**|**(2,039,596)**|**1,239,710**|
## **18. Related Party Transactions**
Most of the trustees are also members of or employed by other organisations which may undertake transactions with CIWEM and CSL in the normal course of business and all such transactions are on an arm’s length basis.
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## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT CONSOLIDATED AND CHARITY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021**
||**Group**|**Group**|**Charity**|**Charity**|
|---|---|---|---|---|
||**2021**|**2020**|**2021**|**2020**|
||**£**|**£**|**£**|**£**|
|**Cash flows from operating activities:**|||||
|Net income for the year|331,237|9,807|266,522|14,547|
|Adjustments for:|||||
|Depreciation and amortisation charges|129,717|135,669|104,717|110,669|
|Reversal of impairment charge|(143,794)|-|(143,794)|-|
|Interest|(11)|(67)|(11)|(67)|
|Decrease/ (increase) in debtors|53,697|3,465|(9,304)|47,850|
|(Decrease)/ increase in creditors|(198,899)|(10,450)|(56,688)|39,077|
|**Net cash provided by**|||||
|**operating activities**|**171,947**|**138,424**|**161,442**|**212,076**|
|**Cash flows from investing activities:**|||||
|Interest|11|67|11|67|
|Purchase of tangible fixed assets|(20,335)|(14,448)|(20,335)|(14,448)|
|Purchase of intangible fixed assets|(19,286)|-|(19,286)|-|
|**Net cash (used in)**|||||
|**investing activities**|**(39,610)**|**(14,381)**|**(39,610)**|**(14,381)**|
|**Cash flows from financing activities:**|||||
|Repayments of borrowing|(72,674)|(24,349)|(72,674)|(24,349)|
|**Net cash (used in)**|||||
|**financing activities**|**(72,674)**|**(24,349)**|**(72,674)**|**(24,349)**|
|**Change in cash and cash**|||||
|**equivalents in the year**|**59,663**|**99,694**|**49,158**|**173,346**|
|Cash and cash equivalents at the|||||
|beginning of the year|48,709|(50,985)|4,693|(168,653)|
|**Cash and cash equivalents at the**|||||
|**end of the year**|**108,372**|**48,709**|**53,851**|**4,693**|
|**Represented by**|||||
|Cash at bank and in hand|110,125|107,024|55,604|63,008|
|Bank overdraft|(1,753)|(58,315)|(1,753)|(58,315)|
||**108,372**|**48,709**|**53,851**|**4,693**|
## **Analysis of changes in net debt**
||**Brought**||**Carried**|
|---|---|---|---|
||**forward**||**forward**|
||**1/1/2021**|**Cash flows**|**31/12/2021**|
||**£**|**£**|**£**|
|Cash at bank and in hand|107,024|3,101|110,125|
|Bank overdraft|(58,315)|56,562|(1,753)|
|Loans falling due within one year|(79,147)|1,430|(77,717)|
|Loans falling due after more than one year|(1,784,889)|71,244|(1,713,645)|
|**Total (net debt)**|**(1,815,327)**|**132,337**|**(1,682,990)**|
The notes on the following pages form part of these financial statements
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## **THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021**
## **19. Charity Statement of Financial Activities**
The below Charity Statement of Financial Activities relates to the activities of the Charity only and so excludes the activities of subsidiary undertakings.
||**Unrestricted**|**Restricted**|**Total**|**Total**|
|---|---|---|---|---|
||**Funds**|**Funds**|**2021**|**2020**|
||**£**|**£**|**£**|**£**|
|**INCOME**|||||
|DONATIONS AND LEGACIES|19,917|-|19,917|44,100|
|INCOME FROM CHARITABLE ACTIVITIES:|||||
|Membership subscription and fees|1,659,673|-|1,659,673|1,587,991|
|Conferences and events|868|6,432|7,300|10,291|
|OTHER TRADING ACTIVITIES|||||
|Investment income|11|-|11|67|
|Books and publications|-|-|-|1,653|
|OTHER INCOME|34,704|47,310|82,014|18,613|
|**TOTAL INCOME**|**1,715,173**|**53,742**|**1,768,915**|**1,662,715**|
|**EXPENDITURE**|||||
|EXPENDITURE ON RAISING FUNDS:|||||
|Other trading activities|232,193|-|232,193|368,038|
|EXPENDITURE ON CHARITABLE ACTIVITIES:|||||
|Membership services|1,017,732|-|1,017,732|873,531|
|Conferences and events|-|15,094|15,094|19,232|
|Policy and partnerships|344,964|34,375|379,339|384,082|
|Donations, prizes and awards|1,288|541|1,829|3,285|
|REVERSAL OF IMPAIRMENT|||||
|ON FREEHOLD PROPERTY|(143,794)|-|(143,794)|-|
|**TOTAL EXPENDITURE**|**1,452,383**|**50,010**|**1,502,393**|**1,648,168**|
|**NET INCOME**|||||
|**& MOVEMENT IN FUNDS**|**262,790**|**3,732**|**266,522**|**14,547**|
|**TOTAL FUNDS BROUGHT FORWARD**|**1,156,100**|**75,923**|**1,232,023**|**1,217,476**|
|**TOTAL FUNDS CARRIED FORWARD**|**1,418,890**|**79,655**|**1,498,545**|**1,232,023**|
42