ANNUAL
REPORT
AND
FINANCIAL-,,
STATEMENTS
Chwthd klIttl1n ol
CIWEM
Waler and Enlfjrryml
anagement
For the Year Ended 31 December
England and Wales
Charity No: 1043409
Scotland
Charity No: SC038212
2022
## **ANNUAL REPORT AND FINANCIAL STATEMENTS**
**For the Year Ended 31 December 2022**
## **Contents**
**03 Reference and administrative details**
**04 Foreword by the Chair of the Trustee Board and Chief Executive 10 Report of the Trustee Board 22 Independent auditors report**
**26 Consolidated statement of financial activities 27 Consolidated balance sheets**
**28 Consolidated statement of cash flows**
**29 Notes to the financial statements**
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## **Reference and administrative details**
**Registered office** 106-109 Saffron Hill London EC1N 8QS
## **Bankers**
**Barclays Bank Plc** Level 27, 1 Churchill Place Canary Wharf London E14 5HP
## **Contact**
0207 831 3110 admin@ciwem.org www.ciwem.org
**National Westminster Bank** PO Box No 159 332 High Holborn London WC1V 7PS
**Registered charity** England and Wales No. 1043409 Scotland No. SC038212
## **Auditors**
**Moore Kingston Smith LLP** 9 Appold Street, London EC2A 2AP
## **Solicitors**
**Bircham Dyson Bell LLP** 50 Broadway, Westminster London SW1H OBL
THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT
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## **Foreword by the Chair of the Trustee Board**
In 2022, we launched our new corporate strategy, the culmination of many months of development and consultation with our members, key stakeholders and partners. The strategy establishes a clear direction for CIWEM, building upon our Royal Charter while enabling us to grow. Our ambitions are founded upon a vision for _**A world in which professionalism and excellence build connections to inspire widespread, impactful water and environmental solutions.**_ Our strategy also sets out our values and enabling principles, which guide our decisions on how to improve our services to members and influence the world around us.
Service to our members is always our priority and there is no better example of this than the tremendous support that our branches, groups and panels provide. Further details are given below, but the Board and Executive are indebted to the dedication of our volunteers, who helped us deliver more than 122 hours of continuing professional development [CPD] in 2022.
Our Trustee Board and committees are also run by volunteers to whom we are indebted. It has been a busy time, with the development and launch of the strategy, and support for our ambitious development activities, which are outlined below. We are especially proud of the early-career participation in our boards and committees, and on our Presidential team, more of which is described below.
This report demonstrates the ways in which we are growing in terms of our membership, financial standing and global recognition and, most importantly, the CPD of people with an interest in sustainability in water and environmental management. There is also great potential for anyone who wishes to participate in the achievement of our vision and we invite you to get in touch.
## **Foreword by the Chief Executive**
I would like to acknowledge and give thanks to the Executive Team for their hard work and diligence in delivering services to our members and partners, and progressing significant projects that enable our Institution to grow.
Our digital transformation is essential for meeting our ambitions, and our development programme began in earnest in 2022. We are becoming a digital-first organisation. This will make us more accessible, more connected and more impactful. This is a complex undertaking for CIWEM, so it will take time. New CRM functionality will be tested and rolled out in 2023, with the more externally visible functionality to follow later and into 2024. Of course, development will be ongoing as we endeavour to stay ahead in a rapidly changing world.
Since the launch of our Policy to Practice initiative in 2021, we have supported the water and environment sectors to implement government and other third-party policies. Our policy team has been extremely active in 2022 as public and government interest in climate mitigation, adaptation and resilience grows. Awareness of environmental protection is ever-increasing and, by example, concerns over sewage discharges into water bodies has prompted a large number of enquiries for our team. We were therefore delighted to secure a significant pot of funding in 2022 from the Foundation for Water Research to enable us to deliver future projects that advance the education of the public on water environmental management in partnership with the Rivers Trust. In addition, interest from organisations in funding our programme of projects has increased.
2022 marked the return of face-to-face events, and Flood & Coast, and our Urban Drainage Group Annual Conference were notable highlights. People's desire to come together in this way was clearly evident in the popularity of the events and the energy of those in attendance. Our plans for 2023 build upon this success.
ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
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Above all, the Executive has taken hold of our Corporate Strategy, launched in July 2022, and is delivering this with enthusiasm and a firm belief that it sets the right direction for our Institution. This has enabled us to make a strong start to 2023 and we look forward to demonstrating further progress with our vision to support professionals and promote professionalism.
## **Environmental performance**
We declared a climate and ecological emergency in 2019 and since then, we have been instigating incremental changes in our building to reduce our scope 1 and 2 emissions. These include further upgrading of lighting to LED and continuation of energy supply certified as 100% renewable. We have also installed upgraded video-conference facilities to help reduce travel for all building users. Our building is rated as BREEAM Excellent.
Our academic journals are now online-only, enabling a significant reduction of emissions from printing and shipping of printed journals. Plans are progressing with regard to the digitisation of The Environment magazine.
Our other contributions towards tackling 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, as well as 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 the degradation of nature. Our professional registrations, training, events, journals, magazine, policy papers, specialist panels, groups and networks all provide opportunities for people to develop competence. The mandatory requirements to maintain CPD are embedded within our processes for all professional registrations managed with the Society for the Environment, Science Council and Engineering Council.
During 2022, we undertook a review of competence and our member journey with our Professional Standards Committee, Executive and Board, which is directly informing our developing career provision for members at all levels.
## **Trustee Board and Executive team developments**
In 2022, we welcomed two new Trustees to our Board: Karyn Georges and Wendy Brooks. The Board also had the pleasure of appointing Emily Clarke and Proceed Sibanda as early-career professionals to observe the Board for a year.
Four Trustees - Andy Dunn, Claudia David, Hanae Bezad and Joanna Cochrane - resigned during the year. Stephanie Campbell and co-opted member Niki Roach retired. We thank them for their support.
2022 was an investment year. For the Executive, this meant a year for professional development and growth. Six promotions were achieved within the Venue, Governance, Organisational Development, Policy and External Affairs teams. Five new members of staff were also successfully recruited into the Learning and Development, External Affairs, Events, Marketing and Communications teams. Since the launch of our Corporate Strategy in August, the Executive has been focusing on commercial growth and in order to support this, appointed a new Director from within the organisation. There was a particular focus on membership throughout 2022, where we targeted the professional development of specific skills to enhance our member experience. In order to do so, there were some changes made within the team.
THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT
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## **Organisational growth**
Our institution grew notably in the following ways.
**Membership -** our membership and retention continue an upward trend, with strong growth across all membership grades.
**Commercial -** our commercial activities fuel our charitable outreach, while also maintaining CIWEM as a going concern. These activities are undertaken by CIWEM's subsidiary company, CIWEM Services Ltd [CSL]. 2022 was an investment year for CIWEM, particularly in our digital transformation, which will drive efficiencies in our processes and increase the value to our members through our digital and content first strategy.
**Events -** in 2022, we delivered our first-ever inperson Flood & Coast event, our first in-person UDG Annual Conference since the pandemic and the UDG Virtual Training Day. Our events were a great success and were noted by attendees as being best-in-class, firmly establishing our presence in the post-Covid events environment.
**Learning and development [L&D] -** this continued to evolve in 2022 with the rollout of significant public-education programmes for property flood resilience, including roadshows for risk-management authorities. Our training in sustainable drainage systems [SuDS] continued to reach a broad audience from water and sewerage companies, with feedback remaining extremely strong. We launched a new wastewater-managers programme designed exclusively for one of the major water companies, which has been brilliantly received, with the "prestige" of the CIWEM logo on the training certificate providing great pride among completing delegates. We secured another major contract for delivering waterquality training, with an associated certification, in an effort to formalise an industry-wide approach. Development has begun for an early 2023 rollout. In 2022, we also significantly ramped up our internal L&D provisions. In support of our new strategy, and in line with our value of making people our priority, we are developing a suite of training that will help upskill and empower our internal team. We hope that, in time, we will be able to roll these courses out to members, helping all of us to represent CIWEM in a consistent and
## inspiring manner.
Together with some new partners, we launched training in workplace psychological safety and social support for wellbeing, and a suite of training on urban design for wellbeing. We also invested in our team to enable swifter development of online learning and, in 2023, we will begin to create more accessible learning outputs off the back of CIWEM Policy and Policy to Practice work.
We have some very exciting plans for 2023 consistent with our longer-term plans and building upon the successes of 2022, including:
- Continuation of our digital transformation;
- Expansion of our Policy to Practice initiative and L&D partnerships, including delivery of FWR funding;
- Delivery of a Flood & Coast that reaches a bigger and broader audience.
We look forward to working with our members and partners to meet these aims and continue to make CIWEM accessible and relevant.
**Peter Brooks Terry Fuller** Interim Chair, Chief Executive Trustee Board
ANNUAL¥PORT AND FINANCIAL STATEMENTS 2022
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THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT
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## **CIWEM staff structure Team organisation and operation (line management)**
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CHIEF EXECUTIVE
Terry Fuller
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MEMBERSHIP & PROFESSIONAL DEVELOPMENT GROUP SALES GROUP
DIRECTOR OF INNOVATION & DELIVERY DIRECTOR OF LEARNING AND ORGANISATIONAL DEVELOPMENT
Paul Shaffer Darren Eckford
HEAD OF MEMBERSHIP & LEARNING & DEVELOPMENT
BRANCH LIAISION OFFICER
PROFESSIONAL STANDARDS PROJECTS MANAGER
Barbara Woods
Sophie Dunajko Valeria Ji
MEMBERSHIP & LEARNING & PARTNERSHIP
PROFESSIONAL OFFICER
STANDARDS MANAGER Teresa Cabras
Szidonia Csiki
SENIOR MEMBERSHIP PARTNERSHIP ACCOUNT MANAGER
& PROFESSIONAL Jane Boland
STANDARDS EXECUTIVE
Barbara Orth
STRATEGIC MARKETING MANAGER
Tega Ajogun
ENGAGEMENT MANAGER
Chloe Goode
MEMBERSHIP SERVICES
DIGITAL MARKETING EXECUTIVE
OFFICER Elroy Marques
Tabea Michaelis
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ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
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## **CIWEM staff structure Team organisation and operation (line management)**
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CHIEF EXECUTIVE
Terry Fuller
EXTERNAL AFFAIRS GROUP OPERATIONS GROUP
DIRECTOR OF POLICY DIRECTOR OF OPERATIONS
Alastair Chisholm Rachael Bliss
HEAD OF EXTERNAL
EDITOR POLICY MANAGER HEAD OF HR IT MANAGER
AFFAIRS
Karen Thomas Heather Gardner Ellie Walsh Chris Ridett
Rebecca Sells
DIGITAL COMMUNICATIONS EXECUTIVE ASSISTANT &
PUBLICATIONS MANAGER
OFFICER COMPANY SECRETARY
Vicky Harris
Ky Trickett Francesca Brahmbhatt
EXTERNAL AFFAIRS PROJECT
POLICY ADVISOR FACILITIES MANAGER
MANAGER
Vacancy Ken Hassan
Roxana Oldershaw
HEAD OF EVENTS SENIOR EXTERNAL AFFAIRS VENUE SALES MANAGER
Irina Danilova EXECUTIVE Maria Jesipova
Marieke Muller
EVENTS MANAGER FRONT OF HOUSE OFFICER
Olga Nielsen Vacancy
EVENTS COORDINATOR
Natalia Jurkun
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THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT
## **Report of the Trustee Board**
**The Trustee Board has pleasure in presenting its annual report and accounts for the year ended 31 December 2022. 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, specialinterest groups, common-interest networks and technical panels, which 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.
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 is responsible for ensuring that proper accounting records are kept that disclose, with reasonable accuracy, at any time, the financial position of the charity and enable it 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.
It is 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.
## **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 and Wales, and Scotland requires the Trustees to
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ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
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**
**Bushra Hussain** [President elect]
## **Additional attendees**
## **Co-opted Board Members**
**Caroline Gould** [CIWEM Service Limited chair]
## **Independent**
**David Wilkes** [Remuneration committee chair]
## **Company Secretary**
## **Francesca Brahmbhatt**
## **CIWEM Services Limited [CSL]- Non-Executive Directors**
**Hannah Coogan** [Vice president]
## **Trevor Harrington**
## **John Curtin**
## **Mike Summersgill**
**Karyn Georges** [Honorary treasurer]
**Caroline Gould** [CIWEM Service Limited chair]
## **Lila Thompson**
## **Joanna Cochrane**
## **Matthew Jack**
## **Early Career Professionals**
**Nicholas Howden** [Professional standards committee chair]
**Nicola Cunningham** [Diversity & Inclusion chair]
**Peter Brooks** [Interim chair] [Financial audit & resources chair]
## **Emily Clarke**
**Sian Leake** [Junior president elect]
**Emily Shipton** [Junior president]
## **Proceed Sibanda**
**Shaun Nicholson** [Nominations committee chair]
## **Stephanie Campbell**
**Steve Thompsett** [President]
**Wendy Brooks** [Strategy implementation chair]
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THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT
## **CIWEM governance**
## **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, 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 through 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 its website and also through external adverts in the national press. Honorary Officers are appointed from within the Trustee Board.
All new Trustees go through an induction process and are offered regular opportunities to update skills.
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 2022, the Executive Senior Management Team maintained a risk register, which was regularly reviewed by the Trustee Board to manage 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; these were also assessed in detail and updated to ensure their adequacy and effectiveness. We plan to undertake a review of our risk-management processes in 2023.
The principal risks and uncertainties, as well as the steps taken to mitigate the likelihood of their occurrence and impact, are as follows:
## **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 2022 comprised:
Economic downturn leading to increase inflation and uncertainty over the near-future economy - the principal concerns identified for our income were: reduction in membership numbers, a drop in sponsorship and funding support, and a fall in the purchasing of our training and events services. Concerns highlighted for our operational costs included salary pressures and inflation on bought-in services. These concerns will roll into 2023 as the uncertainty continues.
Mitigation actions included:
- Terry Fuller, Chief Executive
- Rachael Bliss, Director of Operations
- Alastair Chisholm, Director of Policy
- Darren Eckford, Director of Learning and Organisational Development
- Maintaining detailed modelling, forecasting and monitoring of our cash flow;
- Balancing planned in-year expenditure and investments against achievement/ outperformance of income targets.
- Paul Shaffer, Director of Innovation and Delivery
- Irina Danilova, Head of Events
- Sophie Dunajko, Head of Membership and Professional Standards
- Rebecca Sells, Head of External Affairs
- Ellie Walsh, Head of Human Resources
Digital transformation - the comprehensive and complex nature of this programme makes this a big investment of finance and time of our Executive and Trustees. We established Boardlevel oversight through a special advisory group
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ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
and employed specialist advisers to support the project management of the programme. We also invested in training of in-house resource.
Venue income - the market for rental of office space is still settling following the pandemic. From our assessment of the local market, we maintained a mixed portfolio of short-term let of office space and short-term rental. During the latter part of the year, we were able to invest in some upgrade of facilities, which will continue into 2023.
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 in 2022, through the riskmanagement 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 awarded to CIWEM in spring 2016. A recertification 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.
## **Member subscriptions**
- subscriptions had lapsed;
- Delivered a programme of activities supporting those in the first years of their careers through our Early Careers Network.
We undertook a review of our membership subscriptions, which led us to increase annual membership subscriptions for the 2022 subscription period in line with inflation. This equated to an increase of between £1 and £5 across the grades. We continue to make our membership accessible, with provisions in place for those who might see fees as a barrier to membership and hardship rates for those experiencing financial difficulties, 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.
## CIWEM Group activities
CIWEM Charity undertakes core membership services while CIWEM operates with two active subsidiary companies: CIWEM Services Ltd. [CSL] and Saffron Hill Management Ltd.
CIWEM's commercial activities are undertaken through CSL, which is a wholly owned subsidiary of CIWEM. CIWEM is a not-for-profit organisation and all surplus funds generated by CSL are gifted to CIWEM to further our public-benefit activities, including the support of our members' professional development. It should be noted that the activities undertaken through CSL provide significant contributions to our publicbenefit remit in its own right, as well as funding other charitable activities though the gifted surplus.
Our principal commercial revenue streams are:
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 2022, we took the following direct action to retain and grow membership:
- Grew 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
- Advertising, jobs and sponsorship;
- **•** Events;
- Publications;
- Training, accreditation and business partnerships;
- Venue hire.
Saffron Hill Management Ltd is the management company responsible for the operations of our property at 106-109 Saffron Hill, including our responsibilities as freeholder of four privately owned flats on the top two floors of the building.
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THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT
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## **CIWEM charity Membership**
As a professional body, one of our most important roles is setting, maintaining and upholding professional standards for those across the water and environment sector. In 2022, we reviewed our membership journeys, driving our development towards a more inclusive membership, recognising the current roles, career stages and expertise across the sector.
Our professional-development and careersupport services continued to advance, with the introduction of an ongoing programme of work aimed at enabling early-career individuals across the sector to develop their professional skills.
During 2022, we were pleased to professionally register more than 140 individuals as engineers, scientists, environmentalists and water and environment managers, and award 143 individual registrations to our members, including: Chartered Engineer [CEng], Chartered Environmentalist [CEnv] and Chartered Scientist [CSci]; the intermediary registrations Incorporated Engineer [IEng] and Registered Environmental Practitioner [REnvP]; technical registration with Engineering Technician [EngTech]; and the pinnacle of professional
registration in the water and environment sector, our own Chartered Water and Environmental Manager [C.WEM] registration.
To support our growing membership and professional-registration activities, we grew our international pool of assessors and interviewers, who facilitate our professional-review activities across all registrations and licences.
We grew the number of established mentors on the CIWEM Mentor Platform to more than 80. 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.
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ANNUAL REPORT AND FINANCIAL STATEMENTS 2022
## **Diversity and inclusion**
2022 brought structure to diversity and inclusion [D&I] as the Trustee Board had instigated a committee to focus on creating a strategy and clear objectives. The strategy focuses on four themes:
## **THEME 1: A visible commitment Objectives:**
- CIWEM is a visible ally for all forms of diversity;
- **•** The CIWEM Board, Executive, Volunteers and Trainers take collective responsibility for D&I.
## **THEME 2: A diverse membership Objectives:**
- Membership to reflect the current diversity of society and drive greater diversity in our sector;
- **•** D&I to be supported throughout the entire member journey;
- D&I will be embraced and championed by the CIWEM membership.
## **THEME 3: An inclusive culture Objectives:**
- To provide an environment and experience that promote dignity and respect for all and are accessible;
- To create an environment in which individual differences and the contributions made by all are recognised and valued;
- To ensure that all of CIWEM's meetings, events and conferences promote an environment that is accessible, comfortable and encouraging for all to attend and actively participate in.
## **THEME 4: Data and evidence Objectives:**
- To develop the systems, processes and relationships in line with the D&I Framework that are needed to gather and analyse data on D&I, so that we can measure progress and target future interventions;
- Set benchmarks and regular reporting on progress towards D&I goals;
- In line with the D&I Framework, set standard criteria for collecting, analysing and reporting on protected characteristics of diversity.
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 work 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. CIWEM's Chief Executive took on the role of Chair for this steering group.
In 2022, we made important updates to our routes to professional registration and fellowship of the Institution to ensure that they are accessible. This included reviewing our professional review processes to understand and remove barriers to those who wish to join the CIWEM community.
Our Early Careers Network Steering Group delivered a programme of activities designed to provide accessible career support and to share the diverse stories of our individual members for those in the first five years of their career. This included a peer-mentoring programme for those currently undertaking the Chartership process.
WEM Pride held its first two events, which were well attended and opened up on how we can be allies. One of the events was held jointly with Jacobs, the Environment Agency and Balfour Beatty. This was a successful collaboration that will grow in the coming years. The network also worked on some very informative communications, both in The Environment magazine and online.
Our Executive and committees' recruitment, nominations and award standards were reviewed to increase the number of applicants from a wider pool of diversity. This was done by changing the language in the initial advertisement and using alternative promotional platforms. The Nominations Committee introduced a new way of shortlisting in which the candidates were judged on answers to questions, as opposed to their CVs. This has proven to be successful and will hopefully be rolled out throughout the organisation.
We recognise that this is just the beginning and we 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.
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THE CHARTERED INSTITUTION OF WATER AND ENVIRONMENTAL MANAGEMENT
## **Branches**
In 2022, CIWEM's branches and groups delivered a programme of 82 events, covering a wide range of topics, such as climate adaptation and resilience, flooding and land and water management, as well as wellbeing and professional development. These events provided 122 hours of accessible CPD to our members and CIWEM continues to make these resources freely accessible to the public in line with our charitable aims.
CIWEM's branch and group events continued in virtual format, delivering 59 webinars over the year. Following the lifting of Covid-19 restrictions, our UK branches and groups began to hold in-person events from March onwards, and our international branches in Aotearoa New Zealand, Hong Kong and the Republic of Ireland followed suit later in the year. However, Hong Kong had to suspend inperson events in late 2022 due to lockdowns. In addition to our 21 in-person events, two hybrid events were also held.
Registrations and attendance at webinars were both lower than in 2021, in part due to the fact that there were fewer webinars, but the attendance rate remained good, and the webinars attracted a much larger audience than the in-person events. Online branch and group events remain more inclusive and sustainable, and have created a new avenue for the sector and public to learn more about our community and the work we do, as we also publish recordings of our webinars on YouTube where permitted.
In a recent survey of our membership on CIWEM's content, our members said that they value our webinars and their accessibility. We will continue to deliver these virtual events as part of a mixed programme of branch and group activities in 2023.
These contributions underline the central importance of our branches and our volunteers, who give so much of their time to CIWEM. CIWEM is deeply thankful for the continued support and passion that our community provided in 2022 and we are excited about what we will accomplish together in 2023.
Our Board and Executive meet with our branches on a regular basis and have consulted with branches
to develop our corporate strategy, which is now being embedded in the work they do. Through this, we have a shared desire to develop the support that our central teams and Board provide to our branches and recognise their contributions.
## **Policy and technical**
In 2022, we focused on bringing evidence, balance and objectivity to high-profile public, media and policy-maker discussions on water and climate. The issue of river health, and particularly sewage pollution associated with storm overflows, has exploded into the public consciousness with the publication of data on frequency and duration of discharges. Our work on a systems approach to tackling storm overflows positioned CIWEM as an objective and expert commentator, and many of our recommendations have since progressed into policy. Others remain in train and the government's Plan for Water embraces a wide-ranging and systems-focused approach advocated in this and other components of our work.
Summer 2022 saw record-breaking temperatures and drought conditions in the UK, which raised awareness of water resilience to new levels. Across the world, drought, wildfires, flooding and record heat and cold laid bare the increasing manifestation of climate change, with bodies including the Met Office advising that such conditions were considerably more likely as a result.
We enjoyed extensive media coverage across the year, providing commentary widely across television, radio and in the press. This was enabled by the support of our specialist panels, who once again provided advice and briefings, lending strong legitimacy to CIWEM's role as an expert voice.
Across the year, we worked to increase the frequency of our member engagement on technical issues through our panels, networks, branches and groups, recovering from the engagement challenges posed by the Covid-19 pandemic. We will continue this programme through 2023, with a new member joining the Policy to Practice team.
Our experience and standing have been bolstered by the work undertaken by our Policy to Practice team. With a strong focus on supporting good
practice and capacity-building, this practically focused work, initiated in 2021, grew in breadth and scale across the year.
During 2022, using our convening power and approach to project management, we worked with Water UK, water companies and their regulators, and other key stakeholders to develop a longterm bioresources strategy for England. We were also commissioned to undertake an independent review of the challenges and opportunities around surface-water management for risk-management authorities, focusing on collaboration, funding, capacity and skills.
Funds secured during 2022 will enable us to undertake further research in water management and develop a two-year Community of Practice on Property Flood Resilience [PFR], aligning with the training and certification we're developing on PFR.
The Policy to Practice function is strengthening our relationships with government and its agencies, and spanning between the policy and advocacy, and learning and development areas of CIWEM activity.
As both a critical friend and supporter of government and its agencies, our profile and reputation with policy- and decision-makers is rising rapidly because we are balanced, open and solutions-focused. We are called on to engage in discussions regarding water and environment issues with great frequency. Across our sector, we are regarded as a constructive commentator and thought leader, and we have strong relationships across industry, supply chains of all kinds, regulators and local and national government, as well as the NGO sector, underlining our mantra of [collaborate with conviction]. We are excited to continue building on this through 2023.
## **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.
## **CIWEM Services Ltd activities Events**
The focus for our events in 2022 has been primarily on delivering our revenue-generating events and networking activities, engaging thousands of CIWEM members, non-members, stakeholders and partners.
In 2022, CIWEM Events produced and delivered a wide range of commercial in-person and online events, including our large-scale Flood & Coast event, which incorporated the Urban Drainage Group [UDG] Spring Conference within the conference, UDG Annual Conference and Exhibition, UDG Virtual Training Day. It also supported CIWEM's Rivers and Coastal Group in the delivery of an in-person study day that focused on innovative flood-risk-management techniques and a visit to the Leeds Flood Alleviation Phase 1 and 2 sites. The events team also supported branches and the broader CIWEM team in the delivery of branch events, CIWEM's Annual General Meeting and CIWEM's Presidential Induction.
CIWEM Events has been diligently tracking and measuring the success of each event, based on the following key performance indicators:
- Revenue and profit margin;
## **Professional standards committee**
- Client retention rate;
- Average daily attendance;
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.
- Customer satisfaction;
- Relevance and accessibility;
- Alignment with CIWEM goals and strategy.
CIWEM Urban Drainage Group's events programme included a two-day virtual training event with a number of practical sessions on SuDS, the Spring Conference as part of the Flood & Coast event and an in-person Annual Conference and Expo in Birmingham, previously known as the
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UDG Autumn event. The UDG 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. Alongside the UDG Annual Conference, we hosted a dinner and expo where delegates could meet with organisations working on adaptation, resilience and net zero in urban-drainage management.
Our ambition in 2022 was to increase the number of companies that attend, exhibit at and support Flood & Coast and UDG events. In order for us to achieve this, we appointed Syon to become our event sales support. With guidance from CIWEM, Syon helped us achieve our financial targets across all commercial events.
The diversity of our events programme in 2022 was a tribute to the breadth of interest and expertise within the CIWEM membership. CIWEM events will continue to bring leading experts, thinkers and decision-makers together to debate the biggest environmental challenges of the day in engaging and interactive formats.
## **Flood & Coast**
In 2022, we delivered our first in-person Flood & Coast event in Telford. More than 1,300 people attended the conference and exhibition, including delegates from local authorities, communities and businesses, students and more; 700 people attended the awards dinner alone. We welcomed back our long-term supporters and engaged with new organisations and individuals joining our community for the first time. The theme for the 2022 conference was working together for a climateresilient, net-zero world. As a community devoted to flood and coastal erosion risk management, this has never been more critical. Flood & Coast provided a space to share and debate innovative solutions to managing the increased risk of flooding in our rapidly changing climate. It was also a perfect space in which to network and an opportunity to learn from a pool of experts that spans our diverse sector.
The CIWEM and Environment Agency conference
team worked hard behind the scenes, with support from our advisory committee of experts from across the sector. We put together a firstclass programme featuring leading national and international voices from the flooding, coastal erosion and climate change worlds, and spanning topics from adaptation at the coast to building teams fit for the future. Beyond the plenaries was an action-packed schedule of side events, a lively exhibition hall that welcomed more than 75 organisations, and the Flood & Coast Excellence Awards dinner, which joyously celebrated team and individual achievements.
## **Learning and development**
2022 was a successful year for learning and development [L&D] that saw continual development of the CIWEM open training offerings and, excitingly, continued establishment of our place as a trusted provider of training to industry. Our ability to construct and deliver certification against set competencies is becoming a real benefit to working with CIWEM and developing robust end-to-end training.
The Property Flood Resilience [PFR] training that kicked off in 2021 continued to be a major pillar of work for the L&D team. After delivering some of the technical pilots, a re-development to better align with the certification journey ensued, with complete modules launching in 2023. This is an exciting opportunity and supports the roll-out of the Environment Agency's PFR Procurement Framework.
We have continued to update and upgrade our online-training portfolio, adding courses in social support and psychological safety in the workplace, and reverse osmosis to our portfolio. We also added live virtual-trainer-led surgery sessions to all of our online modules, enhancing the learner experience and taking the Q&A out of text and into conversation. We have been awarded a significant contract to begin in 2023 for Water Quality Training and Certification, and in 2022, began work on the development of the Professional Certification for PFR.
Overall, in 2022, we delivered professional training to 1,526 individual delegates. We are eager to deliver more in 2023.
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## **Accreditations and partnerships**
CIWEM's accreditation and partnerships programme works with more than 70 parties from around the world who are committed to our mission. This includes universities, consultancies, water companies, agencies, contractors, associations, suppliers and more. Their financial support is vital, but when we work closely with our organisational partnerships to achieve common goals, we can open up even more opportunities.
In 2022, we brought the programme more in line with one of our key values - collaborate with conviction - by restructuring the team and augmenting the way in which we manage these relationships. This means that, rather than treating each relationship as a "type" [i.e., university accreditation, professional-development scheme, CPD accreditation and/or business partner] we see everyone as invested partners in our work to build careers and skills, create community, share experiences and knowledge, and influence policy and best practice. Each partnership is unique, so we maintain close relationships that allow us to understand each other's priorities and identify ways to collaborate that will have the biggest impact.
One of the things we learned through this shift in mindset is that some of our partners would like more guidance and support in developing their internal professional-development schemes, which led us to launch our first pilot of a CIWEMmanaged professional-development scheme. We also consulted with partners and our policy team on new industry roundtables and thoughtleadership content and events, and worked in partnership with universities and industry partners to imagine CIWEM's first-ever virtual career fair, to be delivered in 2023.
Perhaps as a result of organisations coming back from Covid-19 and potentially further fuelled by this change in mindset, the increase in demand for partnerships with CIWEM grew over 2022 and we expect this growth to continue.
Our partnerships-and-accreditation programme is supported by a board of passionate chartered members who help us safeguard professional standards by assessing each application and by
monitoring existing accreditations each year. We thank them for their continued support and invite others to volunteer to do the same as we continue to grow and develop our partnerships programme.
## **Publications**
## **The Environment magazine**
The Environment magazine continued to lead the sector in terms of the quality and breadth of its editorial. It produced ten issues and a Consultants and Contractors File last year, which performed strongly as a valuable advertising vehicle. It featured prominent figures both nationally and internationally, across the worlds of water, climate, nature and social science and engineering. The Environment consistently champions diversity and inclusion, and 2022 featured a youth takeover, championed women in our sector and discussed LGBTQ+ inclusivity at work. It also considered climate justice and tackled issues such as the impact of our changing climate on mental health. In 2023, we will be laying the foundations for a digital-first approach to The Environment in 2024.
## **Journals**
_Water and Environment Journal_ received more than 600 submissions in 2022 from more than 60 countries, spanning innovations and solutions focused on enhancing water-management best practice. 755 pages of peer-reviewed content were published across four issues, all freely available to CIWEM members online.
Since transitioning to open access in 2019, _The Journal of Flood Risk Management_ has grown in popularity as an international platform for knowledge sharing in all areas related to flood risk. The journal now has an impact factor of 4.005 and article downloads in excess of 300,000. The journal launched three special issues in 2022, including "operational flood forecasting and early warning systems" and "social innovations and transformations in flood risk management".
During 2022, the journals were supported by 79 editorial board members across 21 countries. Thanks go to our board members for their commitment and support to ensuring that CIWEM's journals continue to share best-practice science and new innovations across water and the environment.
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## **Financial overview**
## **Income and expenditure summary**
- Group income for the year totalled £3.30m [£2.58m in 2021].
- Group expenditure in the year totalled £3.81m, after incurring an impairment charge on the Charity's freehold property at Saffron Hill [for further details, see the "Saffron Hill" section below]. Excluding the effect of the impairment [and the reversal of part of a previous impairment charge in 2021], group expenditure was £3.29m in 2022 [£2.39m in 2021].
- Approximately half of our income in 2022 [£1.67m] was from membership subscriptions. This compares to approximately 64% in 2021, despite total membership income being very similar in both years. The change is partly because our event operations were still significantly restricted in 2021 by Covid-19, although we continue the transition to being less reliant on our membership income into the future. The balance of our income [£1.63m] is made up mainly by way of commercial lettings, events, training, policy work and publications.
## **Reserves policy**
The Trustee Board is 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. However, 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. As a result, the Trustee Board set out a five-year plan to build free reserves, which will reduce CIWEM's dependency on bank support.
Our current financial arrangements will be due for renewal in 2024 and we will begin discussions with our existing financiers in early 2023 and review our options during 2023.
The 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:
## **Balance sheet**
1. Build our free reserves;
- CIWEM's group balance sheet shows total net assets of £1.06m at the end of 2022.
- At the year-end, the total funds held within the group were £1.06m, compared to £1.57m at the end of 2021; unrestricted funds at the yearend were £0.98m, compared to £1.49m at the end of 2021. The reduction in funds is a result of the impairment charge on the property of £0.52m incurred in 2022.
## **Saffron Hill**
The Trustees are required to consider whether there is any indication that the Saffron Hill property has been impaired at each balance sheet date. The building was formally valued by external and professional valuers as at 31 December 2022, with a valuation of £3.35m, which reflects current market conditions, compared with a valuation of £3.94m at the year-end 2021. An adjustment has been made to the carrying value of the property in the 2022 accounts to reflect this valuation. [see Note 9]
2. Enhance our charitable activities;
3. Pay off loan capital above the contractual 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 economic uncertainties presented in 2022.
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 2023 and is signed on their behalf as below.
**Pete Brooks**
**Karyn Georges** Honorary Treasurer
Interim Chair
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## **INDEPENDENT AUDITORS REPORT**
**For the year ended 31 December 2022**
**Independent Auditors Report to the Members and Trustees of The Chartered Institution of Water and Environmental Management**
## **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 2022, 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 2022 and of the group'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.
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## **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.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
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
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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.
## **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.
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.
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## **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 non-compliance 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.
## **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 section 154 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity's trustees those matters that 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 the charity's trustees as a body for our audit work, for this report, or for the opinion we have formed.
## 10 July 2023
## **Andrew Stickland**
Senior Statutory Auditor
For and on behalf of Moore Kingston Smith LLP, Statutory Auditor
**9 Appold Street London EC2A 2AP**
Moore Kingston Smith LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006
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**Consolidated statement of financial activities For the year ended 31 December 2022**
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**Consolidated and charity balance sheets As at 31 December 2022**
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**Consolidated and charity statement of cash flows For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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**Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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**Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
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## **Notes to the financial statements For the year ended 31 December 2022**
106-109 Saffron Hill London EC1N 8QS
## **Contact**
**T:** +44 0207 371 3110
**E:** governance@ciwem.org
**W:** www.ciwem.org