Society of Operations Engineers REPORT AND AccouNTS FOR THE YEAR ENDED 31 DECEMBER 2021 INNWlllWUII *ABfA)2(JIZ' 30rt)9r2022 COMPMIES H¢JJSE
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THE SOCIETY OF OPERATIONS ENGINEERS Registered in England Company No 3667147 Regislered Charity No 1081753
ANNUAL REPORT AND AccouNTS FOR THE YEAR ENDED 31 DECEMBER 2021 INDEX Page Council. Staff and Professional Contacts Report of the Trustees IndeperKlent Auditorfs Report 12 Consolidated Statement of Financial Activtties 16 ConsolKlated and SocEty Balance Sheets 17 Consok(lated Cash Flow Ststemenl 18 Notes to the Financial Statements 19 Reglstered Office 22 Greencoat Place. London SW1 P 1PR Tel.. 020 7630 1111 Website: w4.SOe.0rg.Uk The Society is govemed by ts Memorandwn and Articles of Association VAT Registralion No 751813142 A limited by guarantee. A LInSed Member of the EngineeriThJ Council and the Society for the Environment
THE SOCIETY OF OPERATIONS ENGINEERS Patron Sir Jthn Parker G8E TRUSTEE BOARD President Chr Director Internal¢onal Oifector Sdards Di¢tor Services Director Govemance, Risk & Compkance Director IRTE Director BES Dirèctor Environment Director Co-opted Director Cople0 Director Co-opted JE Eastman EngTech CEnv FSOE FIRTE SM Ster4ienson EngTech FSOE FIRTE C Grime EngTech CEnv FSOE FIRTE GN4 Gilby IEng CE FSOE FIPlantE l Jones MSOE MIRTE lappo¥ed ALW 2022 HM Seyrnrr CEThJ CEnv FSOE FIPlanlE FIRTE SS Cheema EngTech FSOE FIRTE lapwhil8d Oct 20211 D Greer IEry REnvP MSOE MBES lapF4)mled Jw 2022) S G Tweed CEng CEnv FSOE FIPlanlE lappointed Jun 2022 MP Seelmre Eng Tech MSOE MIRTE CJ Harries MSOE MIRTE l•ppo&itod Od 2Q11 D Rathe MSOE fvIIRTE l¥pothted Oct 20211 MANAGEMENT TEAM Chlef Execullve Offw & Cmipany Secretary CV Show Director Ch1 Operating Officer PA to CEO and Offic• Managgr Head of Finance Maiketing & Commun1 M Memtérship Manager Professtonal stdar Manager l.T. Manager McGil Oeft F¢b 20221 Murray Ellis Danid Moir 8A(Honsl Emma ThiMii>son MSOE w Feb 20221 Pamela Mans FCCA Kerry Hclmes Oliver Teasell MSOE M8ES Robin Bates MSOE MBES Cheryl Carrol PROFESSIONAL ADVI ORS Stalulory Auditor Crowe U.K LLP 55 Ludgale Hdl. LCANk EC4M 7JW Bankers HSBC Bank plc 333 Vauxhall 8rKlge Rowj, London SW1V 1EJ Investlnent Mana9 Rathbone Investment Manwent Umrted Prrt of LIverwl Buiklmg, Pier Head, Liverwol L3 1NW Solicitor5 BullingS LLP 5 Stratford Place, LOThJ W1C 1AX
S•ty REPORT OF THE TRUSTEES FOR TrIE YEAR ENDED 31 DECEMBER 2021 TrIE TRUSTEES, who are èlso DirKlots cl the Sow ICtynpJ)y no.36671471, Registered ChwTrty {no. 10817531 for the purposes ol Comp•ns kl. $utffiit th8 cfjport the atsdited financial statements for the year ended 31 DeCerr202I. In preparing the roport arwj financial slamertts of the So¢i•ty. th& Tru5taes have •lopled the provisions ol the Chant•s SORP (FRS 102) appl¢ablo lo charilies preparing IheK Kcounts in •Cd3Ce wh Ihe Finanu81 Raptry Stand8rt1 apylKèble the UK and RopublAC of lrnland 8nd Ihe Chan"tS Act 2017 and UK Generally AecèptÈd PwtKe as il appeS from l J8nuary 2015. The S(Kiety is govwned by its Memorandum and of Ass0oalK •Jopted on 12 No¥wr4)ef 1998 and last amended on 28 June 2007. The Tnjstets at ttdate ofthi6 repryt served llwouguE tho year except Wh otheMi$e $tst¢d. are Ihe mornb•rs ol the Society's Twst•e Board h"51ed rm page 2. OBJECnVES OF THE SOCIErY The Socty's oW'ecb¥es. as spe¢d in the Mwnorandwn of A$sla1 a$ its obJ"ects. a.. A. To improvè and elavate t8chnKal and 9wwal under$tarKlirvJ. krbxledge. thll and ccmpelen¢¢ olp8rson$ engaged or desiring to be engaged operaiions en¢jin8ww or •by rew enW¢)ymenL and ¢h• iniagrity pute of ihe professK)n thereof. B. To promote and encourage the atharKemenl of s¢ience. lethnokngy ant1 practicé. and invenlions and ¥nprovernents in the li?Id of op8rat)ns ortr4inwing •)d any h¢r rdated branches ol engIneIng. and the diss8minaknon and axchan9e of Klea$. inlmtion and knawled9e thweol. C. By means olA and 8 above. bulwjthout preiuth'ce to thegen8ralty thereof. lo promolethe safety, effi'cterKy and environmentsl su$tsinabilty of operab'ons enginewing lo the benefil of the Community al . . AIMS OF THE SOCIETY The aims of the Society afe to promote. for the wbk benefl. safe. eff¢ient •nd SUSts1nab Operan$ On9ineering to the communty at lar98, thrw: Improving professimal educat¥)n, trainiry. comW8nc• and ethic5: Influencing legislalion and de$NJn- Erthancing public underslanding of the eontrutvJn of tr Society •nd its membershp to the cthnmunity.. Promoting the benefrfs ol mgmbwshi) and profess•y)al rtratv)n. 20218USINESS PLAN In 2021 the Sttw. like all olher organ&thns, had to e¢ntinue lo plans to alknv for the impact of the Cwd-19 pandemK. After an inib.al pernd of cptynism regarding a retum lo normality th8 discovery of a new strain and subsequent reinlroduciion ol festrKlion$ meant Ihal many aclivibes. including events, had lo bo 5hthd from face to fa¢e lo onlw. utAising ¢Jnb"ne c0rtsrng trxjls. STRUCTURE. GOVERNANCE AND MANAGEMEHT The Society 15 go¥erried by a Tntstee B¢wd, ¢¢wisty Bixiean meners. ar* respon$ible for the overall govomance of the Soiiety. The Board is supwted by Ihe trading c<¥npany. IRTE ServKes Limrtgd. the ALbdié 8nd Risk commfftw tho Klefflbershw a Professnal Standards committ08 and thg Prolessts)nal Sector Covnuls.
Spr4•tyDIOpqr3ln6tnywt•
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
Sodety
Trustee Board
IRTE
Services
Soeietyievel
committeese.gM&ps
Head
Ofli
Prole55ioh•l
ctor
IATE
profesonal
Se
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
In oddrfion to those lted on page 2. Ihe folknAgng Twstees also served on the Board thJru)g the year..
A FraSer1hen CEng FSOE IreswJned 2022)
SA Cafte IEng CEnv HonFSOE HonFIPlantE (resigned Oct 2021)
D Young IEng FSOE FBES Irewgned Jun 20221
AS Robinson CEng MSOE MIRTE MIPlanlE {r8signed Nov 20211
Al Ja¢kson CEng FSOE FIPlantE lappth.nted Nov 2021. re5Me Jun 20221
AJ Cockcfoft EngTe¢h MSOE MIRTE {¥wnted Oct 2021. rnsignad Jun 2022>
A Reid IEng CEnv FSOE FBES (re$fted Jun 2022)
AD Jolliffe MSOE MIRTE (r•sw8d May 20221
Staff
Bruce McGill, Chief Executs"ve, oversaw the irylwmntatw of Ihe 2021 SInesS plan agreed by the Trustee
Board. Key managemenl personnel are those senior managers •Jentrfd OTr p48 2. Their pay and bonelits
afft reviewed annualty h.ne with sim4ar pJsitioThs in the charity sector. In an effort lo better align the staff team
lo inwlement outputs and offer greater suprMNi th• Trusls agra to cert•'n aller8tn5 to the head ¢ffic8
slrnclure. These changes tc¥)k plxe in 2022 aNI inclwjed Ihe reduThJancy of tha Ckniel Executive Offi¢gr. The
Trustees would lthe lo thank Mr McGil for his time al ts Souety and b&adTh the oryani5ation through the
difficulties w•senl•d by lh8 pand1C.
VoluntO•fS
The Tru$iees are aFvreciati¥e of the rnam ¥tho Iheir lime to serve on Ihe Prol•sslL0l Sector
Councils and Committees both cntraHy IA Ihe regn& There are some 250 vobJnte8rs who serv8 the
Society in a variety of ioles and responsitxlities. Th Twslees are •vare thgt time given by Ihe volunteers 18
extremety ¥aale and an wnwtsnt part ol the running oryJanisaknon.
Rlsk Alan•9•ment
The Trustees are re5ponsibte for the managemènt of rtsks f&ed by the Society and seek eamy idenlifution.
evaluation and etiVe management and rnrtbJatK)n of ey risks. A lonnal review of the SocEty'$ risk
management process is urthrt8ken on an an[1 basis. The Auth"l and Risk Cornmitlee is reswnsible lor
regularfy I¢en9 the risk re9iSteT and reportmry to the Trustee &)ard. Other ¢ontrob indude comprehensive
strategK plwning. bgetIng and manaaernent reporting. formal lines of reporting and wrd¢en pedureS
includin9 aulhorisat)n d w
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 in Juty 2022. the mberShIP voted to agr•e an updated vernion ol the Memorandum and Art•5 of Assouat¥)n which wim now be Ibushed through aN Olr relthd dMents. Thg updated Mernrandum and Artidès of A$sal brings the Scoety inline with recognised best Fffacl within the Professional Ertsjineering Institute community and was a key requiremenl ol extending Ihe organisations ItC9nse wth the EngeerIng C¢Juncil. Itwill allowfor changes lo Board structure. rfiodernising its running and ensuring greatei rewesentation of the So¢ty's Secl¢xs. The Society is led by ts Truslee Bod arKI suworted by CTOS$ sector Cormiittees including the Member$hip & Professional Stsndards CDrrThittee and theAudil & Risk Committee. prIng detaikd ¢)versighl8nd scrutiny of key areas ol operation lof the sty. Each Se¢lor has its tn Profes$TraI Sector CourKib which feeds into these commbttees and deciswjn-making wccesslsts organi5atM)n chart on page 41. The Audit & Rrsk Ccthmillee ¢onlinue lo ensure delai18d asIght and SCTulviy ol key areas ol operntion for the Sotiety. Terms of ieferen¢e for the coryrfnittee include.. R8vi•w annual accourts tho SW and IRTE Sep4w Lirnbkd. and attend audith anrwal meeling Rwew the investment p¢)rNolio of th¢ Soo Rewew and update the risk register Over$ge the anrvJal insuryrte Tenew REVIEW OF ACTivmES Upon enteiing 2022. the Society had wide ranging rAans iilendgd lo suppyl ts Visi)n. These were based on ihe prevailing leeling of an e¥pected return to rKymalty and opportunty to regain grourvj lost due lo the Pandemic. Thè centre arnd ldding intemab"(Wkil relat)nship5, eypanding events and develoyn9 comThrcial actNikne5 through accreditalions. H<rweYer. a relwn of restri¢lion$ to a ne•V strain ol the viws made rt ¢ar thal. on¢e again. sc¥ne xtNitw, rnnty focused on int8mational d8veWnenl and INe events. would Mt bo pos$t4e an(1 the bjsmiess pl•n fKaS revwl a¢cordirvj. The Society continued to utiltse #mproved vmlao conforencYg pladorni$ to strengthen relationships with key industry partnws and to take part in ihe devekyment of aceredtslions arKI delivery of CPO. The Socièty ontinued to work with key partners lo enhance Ihèir apprenbceshw Pfogfawrmes supported thè HGV and Bus & Coach Trailblazw gro. pmidiThJ apprentic wilh le¢hni¢al infomBtion Ihrough publicalions. websile updales and as$i$ting Ihem lo rogi5t8r wilh Ihe Engineerirq Cwncil and the Society lor the Enwonmenl. Despite the continued effects pandemK thwe have been a number of SLK¢esses to reporL the inaugural Safety & su518inability Awards. the return ofthe Skills Chalknge aTrJconMued influence upon decAsion makaTs within relevanl 5rfls th• intr<xkntion ol Ihe sOcty,5 webin•r wies. Allhough the Society is a membershp boty, maIllY cl rf$ actwth.es are on to the public and are relevanl to a widè array ol specialsms and interests related to engineering. By m&%ing most of rts events and published ontenl available lo all. the So¢v&ty wms lo imwove slandards of training and comence across all operations enw•8fing fidds. Senior members of3ff and meners ofthe Tiuste8 Board. the IRTE Semces Board and the four PleSS1onal Sector Coun¢il5 0tton¢Sgd a nwnber ofmeelin9s wilh the Society's bu$in8$$ partners in ord8rlo raise the profilp oflh• organisation as well as ils Prof•s$ional sect5. Meetings have ien hekj wilh Department lor Transport (Dff). Institute of Motor Indu5ty {IMI), LcJistics UK {LtrwlK5). Ro•J Haulage A350colion (RHAI. The Stxiety of Motor Manulac14trers & Tradern {SMMT), Gwage Equipmeni ASSO110 {GEAI. Chartered Inslilute of Trnnsport {CILT), Driver Vehiclfr Slandards Agency {DVSA). Traff C(nmww8rs. HSE, Safaty A$$e$smgnt Federation (SAFed), In$tiiule for *pprenticeshps. veh• manLbfxturw&. fglkn Pr¢les$ional Engineerin9 In$lilutM)ns and key inthjty stskeholders.
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 S•rwlc•s to EngInlS By conslanlty reviewing Ihe quality of infwmation il provhdes to lis m8mbers, lh8 SoGiety aims lo en5ufe th standards of en9in¥ring in the re31 ld3 are maintained. ensuring thal ciMnpeteAt pracl¢tioner5 swve the public. A number of best ptact¢e guKl8s have been updal¢d or publKshed in 2021, whh are avaitable on the Socrety's websrte. The Sty has ajso hewed w engineers develop in their chosen rId by assessment and accre(tali)n of r8tavant training eoursos. The Socioty conlinued to make wnwovenxnts to its digrtal pLryUomi. irKluditVJ streamlThiing the usef journey and nproved $tynpostsng of key inf0miatl. As a resul we contiNe to sè8 a onl1 traffic and we better able lo customk%g members ewtences. Society e-newsletter 1$ ¢w¢U•d to some 15,$00 memts and 2.500 noTrmembers. Regular coveTa trade and regicrbal publications also ¢c4rtinues to increase en5unrKJ that meners are aware of the Society's aclivrties. Enyineering c¢nCil gistraOn is an iiiiiyjrtant consKkntion for new rrthlbers joining the Soci81y as It demonslrales their engineering c¢mptency and 15 recc3ni5ed throughout the wortd. Durino 2021. Ihe Soeiety registered 179 neAt Chartered Engineef5. Irwporated Engineers and Engineering Thnlan$ with the Engineerin9 Courvl. we also SUFPOrted 89 regi51farts from our affthate programs. Organisations ntinUe lo supwt Enginewing Countyl regsstration, and many are now ensuring that all employees are professw)naly regstered at thè poinl ol wtying for mwvthrship. A slr•amlined process has been developed to allcyAf tht In(vidL to be last tr¥ked through the system. The Society was awarded licensed ldY slalu5 by the lor the En¥(ment 2011 enablin9 the s(lety to award tho title olchwtefed Environmentalist (CEnvl lo suitabty qualified indNidu. in 2020 the Socth was also granled the IKence to award Registered Environrnon Practitiomf {REnvPI. Memb8rnhip 4¢WiSbkn ft¥r the Socw remained steathy throu1 2021 arwj surpassed expeclation$. This can artrulod to the end of Ihe fuiiough s¢lteme. reuurtment camptyns by CorFQTate Partners and promotional work by the Sclety hty3hhghts.ng th empbyabiltty of registered indivKluals. OrAine e(lIment femains the maln source new members. The Sc¢ietyw•earry ¢xrt targeted mtheb"n9campaigns throughout 2022, with a particar efflphaw on apwtw those hed Tith the onronMental sector. Thg Soc¢ety continue$ to support apprentic¢shw scherms •Gr0s5 relovanl sectss i)¢luding offe{g fre8 apprentice Membersh to MAN, DAF TNcks and Stagécoach. Despkn rest¥i¢b'ofts the IRTE Skills Chal8ng9 was able to go ah•ad. t8king pla¢ al Wtliams Ft confere Centre in October. The Soct¢ty has a¢¢fftdited a number of ¢ourses Ojring the year incluth.ng courses apwed as meetw the academic requirements ol the Enginewing Council as IrKowated Engineers and Engineering Te¢hniaans and Ihoso meeting the sLty.5 acthic requirements for Continn9 Pfofessnnal Doveknpmenl ICPD). Thete 2.086 irtec IKe1 awarded in 2021. R•gloMI Groups and Cenlr•s Oue to the national westrr¢liMs bfoughl ¥l>)ut14f the parthmic all ofts Society's R¥gx81 Centres cancelled lace to kn MeetgS and CPD pre5entatK)ns. Many ¢tynmittees Contirt to meet online The Hong Kmg Regional Group was also severety lecled by the pandemK and h1 to cancd all anned events. Publlcallon$ The Society's has Iwo p4kn1ution$. Transport Engn8er and Oper&iyts Eweer. They * thsKJned to help al iDvofved with operats'on$ •ngineering lo keep up to date vrith latast davebpmgnts. MernS receive the publatrOn Ihal is rn1 relevant to Ihem as part of their membership but there aro atso many rrfTrmembers who Subscribe to these prtli¢atyons. All Merrt also rec8N8 a ¢(py of the SocW'$ quarterty new$letter, SOE News. Corpth Partners recerye Of these publ?110n$ t¢ dislnbule amongst their slaff and other key oryani5aticns a150 recewe copies on a wular basis.
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021
Educatlon
We recognm that. as a PfdessiLM)al Engin8eftr8 IrbtuiN)n. w• hav• a responsilylty greater than siMY
crufting compelent person$ into membernhp. As an KKlepend8nt body we $trive ¢0 ensure that the publ i8
aware ofthe Irrortant ol eftgineering in general arml ot il being C(d competent persons. ensure
that WMbS. Skills We kept up to tjate Ihrwh lechnical wbhcalitsx, the website. CPO lectures and
netr•othiNJ meelin9S With Ih¢ir pews.
The Soc,$ webinar 5er$ has
Socr•ly tsl REPORT OF THE TRUSTEES FOR THE YEAR ENDED 310ECEMBER 2021 of •conomic a¢trily after the pandemic t¢ irweases in wcrfkshap ¥ttredrtatson iispeth"ons. ithc kcences and athertNry inccffte. Inwstsnoni lotrlled £63k (2020". £58k}. The resutts lor the year lo December 2021 show ¥n operating kjss of £161.127 Compared to an operakn.ng loss of £350.271 n 2020. 8y absorbing ils share thf the )ss trom CV shthv of £135.558 12020.. £366,599 wofrti the ov8rall posib.on is a defi¢it of £296.685 {2020". SuUS £16,328). The realed and unrealised profft on inv051menls in 2021 of E355.78312020." £43.259) gves overall net movement wpwards for the year of £S9,09812020.. £59.567). Inv•stmvntpo•ts an011¢Y The Soci8ty'$ inveslrnents 8 rTranaged by ROthb&S Invesknwl Mar9•nenl Lyniled in accordan¢e with Ihe discretionary managemeAt agreement and the agreed in¥Èstmèrtt pdy. Rathbrn reports quartorty and annualty to Ihe Trustee Board. The Trustees rèccgnise is rtsk 8s$ociated with investrnenl in main51ream rinancial maetS and accepl this rrJk in Teturn knthe pr05Fttt ol a(kIrtl returns over longer periods of lima. As such. the Truste89 wish to mall lafgety invested al all times. subj.ect to cash re5erve5 being held a5 part ol the investment management prctess and to cover h'abilities. The Inv¢$bnts ShId be well rfivernified and includè a range of assets inCding fixed mtsTest sloeks. UK shares and oversea5 shares. inveslmeftl pf)rffo1 95 al 31 December 2021 was ¥ahd al É3.091.64312020'. £2.725,778) uxnprising VA [ed interest lunds, 38% UK wtias, 40% overseas mwe$lm&Ats. and other invesbnents 15%. As restri¢bons ease and the rbulence from the pandemic recedes. market confKlenc8 has increased The lotal relum trom th8 portfolio was on in¢rease of 13.6% over the year ¢¢Mnp8red with an incr•ase of 12.2% in the ICOnstFaed by hnc(ne> benchmark. The Tvuslees have revithved perf0mar of lh8 inv?$tments with the Investment Advisor and ¥e h4)Py to main&"n the ¢wrenl thivestrrtent strategy and will ccrf)tinue to closety monllor p¢rf(mance o( ihe investments in the fUre. Tradlng Company The So¢ity'¥ wholly-owned tr•Jirg subsidrary. IRTE Serye$ Lintsd. made a net loss before gft aid aThJ taxation 01 £68.356 12020.. £422,440 profill from its xtNi1. These acl•vitie$ IRTE Workshop A¢¢reditation and managing the Commwcl VehKle Show whKh is Organed in partnership with the sIety ol Motor Manufacturers and Traders Limit8d ISMMTI and Ihe Road Haulage Associaln IRHAI. This loss fmm trading actfvitw is • tining igsue to the 91pornt of the 221 CV Show Inorynalty held in April) lo the end of AugusL As a resurt. audtled xcovnts of the CV Shcmt LLP b their financial year ended 30 Junè recogfttsed only the adminaVe costs iurred up lo Ihal point in time. Thè true wofit of Ihe 2021 Show will be finalised and recognised in 2022 and the Socth's aOUnts wll then include Ihe Profits IOT both the 2021 and 2022 Show$. More dotails ean be lound in nos 4&5 on pa9es 22 and 23. Group r•s•ry•s The reseryes pO¢y. whth 1$ rwewed annualty trty the eoèrd fomulat•d Wbth fft3aFd io.. Foreca$ts of future KCre. lthng inlo actwnt the rehikty of •xislmg sources Fospects for new $ourc•s". Forecasts of future expenditure based on pknned atlivi. An 8ft3$1$ of any lufurè needs, opportunits. cantbngencies or tsks the effects ofwhich * unlikety to be out of in¢ome rf and when Ih8y arw: and An assessm8nt ol Ihe Ikelihty)d Ihat any c thesa fiAure a¥ents wil and th? polential consequgnces of not beipo able to m88t Ihtm. The Cso(p's aim is to maintain $uffKient fre• r•s•pffjs toe4yMr 18 month$ 10141 exp8nditure, the target for 2020 being £3.63m12020.. £3.21ml. At the year end the free r•servos which consist unrestrted fvnds18S$ tangibl fixed agsets. tolaw £3.62m12020". £3.38m). Th• Group noi meet Ihis lar9et fr fr•• reswvo5 at Ihe of 2021. The ¢hallen¢J85 fxing Ihe Scr• the c<xYKrtJ yeor($) we to some extenl a resutt ol th• extended econDm inadivity due to COVID-19. Thè ¢urr¢nt ecOnCrfn crisis as evkned by rising inftation and cost of tiving cieases has reinforced the continual need closer moniton.rg ol the varrous Ome $tream$, elveS and cash-ftow whi¢h may fesull in re5erv¥s be9 ul11ed in the $hort tsrni lo meet any sfiortlall in income. The
5tici•tyoT Et¥ff•t• REPORT OF THE TRUSTEES FOR THE YEAR ENOED 31 DECEMBER 2021 Tiuslees remaw) commthed to mainlaining the currént bjt x¢ept Ihat any departure. while necessary, will be tempor until such irne as funds are avalable to obuihj ba¢& to Ihe 18 fTh)nths targat lavd. T•nqlbl• andtheanplbh fix•d assets The freehold land and building were pfofessionalty revaued January 2006 al aFsvoximatdy £2.1m. The value in use 1$ lfore in exce$5 of the CayIng vahje fA £1,601,730 in the ffinancial staten52nts. The movements in fixed assets during the ye ale set oul in 7 10 tho finarKial statements. The Tru5ts8& are nwnded lo tsko Ihe long term that even though investm8nt values haw be•n impacl•d by current evonts, lh& Society has hisioitalty been and is able lo operate wrthout the need to dispose of ils investm•nts. The lety has no irnmedté pkns to ¢Jopose of any of sts assets. Golng Con¢•m Having taken inlo consideralion the risks efialjenges lacry Ihe Socth and wevJhing ihern again$1 ils assets, reserves and future income streams. the TIu5tees are confKnI that lh8 Socioty can and will continu8 to operate a$ a going ciyicem. LOOKING FORWARD In 2022. the Society will CL1ue lo focus on ils ¢troaritle obiectsves and the supporting goal# of $ IsInesS plan that incljde the delwery ofr. Greater engagernent with exi5tiThJ aryj Wential apwentre and sludent members Greater membership dN¢Tsty 8ètter support lof exvsts"r¥J and wtontial m•mbgrs ImwO¥ vdunteer support and engagement Strengthening and de¥gkying Ihe prOfosSl soctrxs Fina1 $lability and 9d govemanc• Rovi$ed and updated gerDanc4 dc¢uMts A $uc¢esslul CommeffjK11 VehKle at the NEC September 2022. on behaw ol Ihe C(Mnmorcial Vehicle Shry4V LLP Tho sIety rem1 focu5•d on d•l1very tha kint•rm 5tratygr aims of #s 2025 wisn that frncludÈ'. Addffjswng the skilLs gap Encouraging diversity in eryn••ring Engaging apprenlice and student memb Engaging th volunteers Intemational gTowth M8mbership growth Prc#notoig memberstrip and le91rat Slatem•nt ol Trustees. r•spon51bHi¢hs The Trustees (who are also directo of the Socty of Operat#5 Engineers fw the purpos•s of company law) are responsible for preparing the TnL8leos' Annual Reptyt and the financial stalemènts in accordance with •ppIKable law and Unrted lQ"ngd(xn Generamy Accepted A¢ccwnting PractKe (Unrted Kilth Ac¢ounling Stsndard$). Company law requiros the Trustees to swre financial ststements for each financial year. Under company law the TfUStees musl not approve the financwl statements unss they are 5akn"sfied that Ihey 9we 8 true and faif vw of the stste ol affairs cl the chantable corw¥Jany and thè group and of IhE incoming resources and applicalion of resources. including the MKomo and expendrture, cl the charitsblg ccthpany and the group for that pertod. In Prewrng thesé financial $tatemnts, the Truslees are requirod to." Seknl surtable a¢nti)g policies and apply ttrm consistenty: 10
Sotttyol op&rJI5Ety¢10 REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 Observe Ih? method5 and in Charitw SORP.. Mthe judgnents and eslThales Ihal ate reasona10 wdent State whether applicable UK accIntIng SIardS ha be¢n folkmtd. $ubi'ect lo any material d•partUf8S disclosed and ew01 in the fmancial stat8rnent$' and Prepare the $talerrnts on a going concwn basis unless it is inapprowiate to presume that thg tharilable company will continue in sin8$s. The Trustees are osponbb lor keeping adequale arn9 records thal are $ufficwt lo show and explain the charitable company's transactions, disdose with reasonable ac¢urxy at any brne the frnan¢ial $rt)n of ihe charilablg Company and enOe them lo ensure that the financ1 staiements eompty wilh Ihe Companies Act 2006 and Ihe provisions of the chty's conslitul¥)n. They are olso responsib for safeguarding the assets of the Charity and Ihe group and hence for reasuiabk step5 for the prevention and detectn of fra4#1 and ¢)ther irregularilw. The followng $talemenis ha 8ffimed by e&h clthe TnJ$tees ol tho charitlè company.. So far a¥ each Twstee 15 aware, there ra Tro reknvwt lit irrformalb (Ihol 1$, inftymatDn needed by the conwny's auditors in cnectI)n with pwring Iher ofwhth the coNvn$ auditots are unawa. Each Trustee has laken all the sleps that Ihry to have tsken as a Trustee in order to make th8msèlvgs ware ol any relevant auilt irrfymakn and lo esWBh that the (x)nWy'5 are awart of th8t information. AUDITOR Crcre U.K LLP has indKated its io be rtr•ppointed as the statutory auditor. SKJned on behallof the Trustees by: J E Eastrnan PresK1wl S M Stephgns Honorary Tweasurer Date: 21 September2022 11
5oaetyolOF¥r•tsEngheers INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SOCIETY OF OPERATIONS ENGINEERS Oplnlon We have auth'ted ihe ffnarKial ststements of s(£ty of Operations Engineers for Ihe year ended 31 December 2021 which coryise ConsobJale(I Statement ol FinarKial ActNilies. Consdidaled and Company Balan¢e Sheets, Cons(Aidal•d Cash FIN Statement aThJ notes to the financial statements. including significanl accounbng poIles. The financ1 reporting franework that ha5 been applied in Iheir preparation is applicabb law and United Kin9Jom Acc(MmEing Standards. including Financk41 Reportin9 Standard 102. The Financial Reporting StaTrdard applb in the UK and Republ of Ireland (United Kingdom Genefafy Aecepled Accountin9 Pracb"ce). In our opinion the financial $tatoffnts: give a true and fair vithv ol the state of the grp.5 and the chitable ctynpany's affairs as of 31 December 2021 a101 the group's w)ccrn and expendiiure fcrf the year thon Ord.. have been prop8rty prepared in accL¥darKe ith Unitwj Kingdom Generalty Accepted Accounting Prxtice,. and have been prepared in accordance ith the reqU1ments of the Conwaw A¢1 20CkS. Basis for opinlon We condu¢ted our audit m accordartt wrth Intemalional Standards Auditing {UK} IISAS (UK)) and aPpIable law. Our responsiblrtie5 undgr Ihose 5tandaTd5 are further de5uibed in the Auditorfs responsJililies for the audit of the $tslernenls sec11¢ ol cwr report Vle are wthpendent ol th8 charilable group in accordance with Ihe elhKal qU¥ents thal are leVant to our audrt of Ihe financial statements in the UK. includin9 the FRC'S Eth1 Standard. and we have fulfilled our other ethical responsibilities in acccrfdance with these qUileNnts. Vle believe that the audit eVIder we have obtained is suffioenl approwth lo wovmle a basi$ ts our opinn. Concluslons r•latlng to golng conc•m In aling the finla1 staterwits, have ¢0ed th tr.5 Use Oftt going concern basis of accounting the weparation of the ffinancial slalements is apyowe. Based on the wryk we have perfomd. wa h3¥e not wjentsfied any Maten uncertainkn.es relating to events or cMdrtvJns that, indivhaualty or collec1vly. casl signifKanl doubt on the gfOUP'S or the charilab company's ats'lity lo conlinue as a going coKefn frjr a ol al leasi twelve months from when the financial statements are authorised for issue. Our res51b111tles arml the resp$1b111¢IeS Of the trustees wilh respect lo goir4J corKem are described in the relevant seclK>TrS ol this reF¢Jt. Othef Infom)atlon The trustees are responsible for the other infrymation contained within the annual report. The othèr inlormalion comprises the infom)ation included in the annual port. other than the financ1 statements and our audilorfs port Itrereon. Our opinK)n on the fan¢1 statents does rK)t cover the other information and. except to Ihe oxlgnl othe158 expkiuy stated in our rewt. do not exptess any lorm of assurance ¢oncluskM thereon. Our responsikn'lty is to read the other inftKwAtion arKI, in d(Mng so. conshler whether the other information is ffrdlerialty inconsistenl wilh the financial staternts or our knwledge obtained in the audit or othepwbse appears lo te maiefialty misslatsd. If we idents.fy such rn3lerial inconsistenc$ or apparent mateTial misslalements. we afe requwed lo thtemine whether this gNes n5e lo a material misstatement in the 12
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE SOCIETY OF OPERATIONS ENGINEERS financial stalemenls thefftselves. If. based on th• fw¢Mk T• have PertMed. we conGlude tlkil there is material rnisstatement of this other infomwtion, wè reQred ts report Ihal facL We have nothing lo report in this rewd. Oplnlons on olher matters pres¢rlb•d by th• Companies Act 2006 In ¢)ur QFinvJn based on ts wryk dufing our audrt ihe inf0mli0n given #i the tntstees. reprt whh irtlLKle$ the dIf10T5. rpport prepared for the purposes of company law. for Ihe ffinancl year for whieh ltte finartial stai6m¢nts ar• prepared 15 consistent wilh the financtsl ststements" arKI the directors, r8POrt iled wilhin Ihe trustees. reFrt have been prepared in accordance with applKable al requirements. Matt•rs on whlch we are Tequlrod to report by exptIOn In light of knowle and urthrstsrKJiNJ ofthe group•J charrtabbe ct)mpany and their •nvYrybment obtained in the course ol the art. wé have mlentrfd m3lerAI misstaftnts in Ihe directors, report irlUded ¥Alhin the Irustees, rèpcrt. We have nolhing to rgwrt in respect of the tolkthing matters in relation to whth the Companies Act 2006 iequires us ts reFth to you if. in Our OpinK.. adequate acc¢)unting have not be kept or the financial statements are rK)t in agreenMt wilh the xcounbng records •)d retums.. or tertain dise105ure$ of trust. remvneralion speuh'ed ty Iw afft not made". or we have Th)1 receNed all the inlornwb)n aTrd expLanaiions we require for our audit.. or the Ifuslees were not enlrtled to prepare the financial slatements in accordan¢e with Ihe small companies regimeand lake &Jvantag&otlhe small companies exemplion in preparing the trustees, directors. report. Re$pon$lbllftI ol truste As explained more lulty in the trustees. resp)nsMIlL statent set out on page 6. the tfustees (who are so the direthrs ol the charitabk comnY lor the purp)ses of compary bwl are responsible tor the weparalion of the financial statements and for being SatsSd that they g¢ve a true and fair view, and for such inlernal control as Ihe truslaes detemmne ts necess to enable the weparatn of financial slalements thal are free from malenal n¥sstateTrenl, whether due lo fraud or error. In prePan9 the finanii* StaIerfts. th• trus1$ are resp)nle fcy asses5iry the charitable compaiy's abilty lo tontinue as a gn9 concem. di5ck)sfft9. as ape. mallers related lo gn9 concern and using th¢ goin9 ¢oncem basis of actntsn9 unles5 the trustees eiiher intend to liqu•late th chwrtable company or to cease operations. or have no realisbc aliornabve but lo th so. 13
Sacwtsfow#iiMsE9IPErS INDEPENDENT AUDtroR'S REPORT TO THE MEMBERS OF THE SOCIETY OF OPERATIONS ENGINEERS Audlto¢s responslbllltles for the audli of the financlal sLthm•nts Our obiectives are to obtain reasonab aSsUrar atjwt WI the finanaal statents as a whole are free ftom material rnisstatemgnt. whglherdue Itaud or error. and to issue an audilof's report that includes our opinion_ ReaSonae a$surarKg is a hwJh kvel ol assuranc• but is not a guaTanleg that an audit Crduct•d in occordance wilh ISAS {UKI will atrways detect a malef1 mi55tatemenl when il exists. Misstal¢menls can arise from fraud or effor and are considered material rf, Ir#JrvUaIty or in the agjregate. they could reasonabty be experted to #ifluenee the econom dectsions of users taken on the basis of Ihe8e financial statements. Detail$ of thg extent to whth the audit was considered capable of detectirtg irregularities. indudin9 fraud and non-compliance wilh laws and regulatts)ns are set bebw. A fvriher destription of our resportslI for the of the fmancrdl staternnts is located on the Financial Reporb'ng Cou11,5 website al". uklaudrtor5re5 nsibilrts. This description fom part of our audilorfs reF Exlont to whlch the audlt was consld¢r¢d capable of detectlng Irregularltles, Includlng fraud Irregularities. in¢dIng fraud, are instances of fKin-comrAbance vhth laws and ul3t10ns. We identified and ssessed the ftsks of material misstalèm8nl of the finanthal StateMts from irwulaniies, whelher due to fraud Of effor, and dL%cussed these bolween ovr audrt team. We then designed arKI perfomi8d audit procedures resps4¥e lo those risks. irKlu6ing obtamirwJ aLbJrt eviderte sufficient and appropriate to provide a basis for our opinion. Vle obtained an understanding ofthe legal and regula within vthich the charitable company and group operates, frtUn9 on those law$ and regulab.ons that have a direct effect on the delerminalion ol malefial amounts and discbsures ihe financial statements. The laws and regulations wa conshlered n this context We the Compan5 Act 2006, Ihe charit kt 2011 together with the Charrties SORP (FRS 102). We assessed the required conyliance with these laws and feWIanS as p•1 of wr audit procedures on the related financkgl statement items. In addil¢on. we Co3ered pro¥B#5 of oth8r laws and regulaith$ th do not have a direct effect on the financial slalements but compliance with whKh mvjht be fundamental to the group's and the eharitablo company's atslty to operate or to avc•J a materAI penalty. We also considered the opporlunilies and incentives that may exist within th8 group and the Chwtsble cornpany lor fraud. The laws and regulation$ we conSided in this context for tl UK operations were General Data wotectth Regulab"on IGDPRI. taxalion iegislakn and employment gislat. Auditing standards limit the required Jdrt wKedures lo identrfy non4Ynpliance with these laws and regvlalions to enq¢thry ol Ihe trustees and other and inspectyon of regulatory and legal CorreSpdence. rf any. Wè Klenlifted the greatest risk of material impact on f¥wn¢ial staternnts from irregulanties, Inchjding fraud, lo be wthin the overrkle ol controls by management Our audil edureS to respond lo these risk$ induded enquiTie5 01 Thranagwnt and the Audit Commrtlee ab)ut Iheirown wjentffication and assessment of the risks of irregulari1. sample tesb.ng on Ihe of journals. reviewng ac¢oufitw estimaies for 'ages. revwing regulatory reSpornCe with the Chty Commtssion. and reading minutes of meth.ngs of those charg•d wth governance. Owing to the inherent h'mitatsons ol an dI1. there is an unavo#lable rrsk that we may not have detected $orrÉ material misstslemonts in financial statements. even ttwh we have Propewly planned and performed our audit th XCOTdance with audng sIdards. For exarnple. tho further wemved non- Complian with and regulai¥)ns IYfegularits"esl is from the events aTrJ transactions reflected in the 14
sLty0t0pratk1nS¥gS INDEPENDENT AUDrroR'S REPORT TO THE MEMBERS OF THE SOCIEfY OF OPERATIONS ENGINEERS financial stslements, the less likety the inherenty limited predleS reqL4red by auditin9 Stards wguhj Idenlty il. In addition, as vrilh any audrt, te remained a higher risk of non-detectft of irreguianties, as th65e may Fnvolve coNusion. foryery. interttKal omsgons. mis[eSentatn$. or the override of intemal controls. We are not responsible for preVen"fig n-CoMpli8nce and cannot be expecteil o d8toct non- complance with all laws and regun3. Uso of our roport This ièport is made sofety lo the ¢h¥itabJ• cowy's nmbers. as a bth, in xcordance with Chaptsr 3 of part 16 of the COante$ Acl 2(1)6. Our audit has been undertaken so that we mKJht state lo Ih charitable compary's membefs those matters we required lo stste lo them in an authtorfs ¥eport and for no other purpose. To the fvllest extent pemitted by law. we do not accept or assume responsibility to anyone other than Ihe charitable conyny and the cttantae company s membws as a and the charilable company's Iru5tees as a body. ft>r our audit for this rqxyt. or for the opinions we have fomied. kndw Thorna5 Senior Statulory AuditQf For and on behalf of Crowe U.K. LLP Statutory Auditor London •." 28 September 2022 r 88¢lpJts 1212 ollhe Conyaries X 15
THE SOCIETY OF OPERATIONS ENGINEERS Societyol Operations Engineers Consolldat•d Slatement of Flnanclal Activities ( incorporallng an Inrome and Expendlture Accounl ) for th• year ended 31 Decembw 2021 Tolal Funds 2021 Total Funds 2020 Notes Income and endowmènts fmrn: Chanlable activili8s other trading activities Commercwl trading 0ratIonS Inveslmenls 1.843.681 1.745.684 354.760 62,578 2,261,019 350.402 58.337 2.154.423 Total Income Expendltur• on: Chantal)1fj 8ctiwfies.' Oth Commercial trading operathS (including &IK)n) Investment managemenl fees 2,115.626 2.194.123 287,559 18.961 294,561 16,010 Total exp?ndftur• 2.422.146 2,504.694 Net gainsl(losses) on revaluatKn and dis[1 of investfflents 355,783 .43.2S9 Net Incomel(expenditur•) 194,656 (307.0121 Ixher reCniSed galnslllosses): Net {lossllincome from Joint ventures (135.558> 366.599 Net movemenl In funds 59.098 $9.587 Roconclllatlon ol funds: Total lunds broughl fwdrd 5.363.715 5.304.128 Tolal funds carried forward 5,422,813 5,363.71S The notes on pages 19 to 30 fcrfm part ol Ihese ac(xunts. The Stalemenl ol Financial Acbvities has been prepared in xcordance tti Financial Reporting Standard No 102. All of the above results are daiveil fr(xn conlinuing activils. All gains and k)sses re¢ogni$ed in the year are included atr. All funds are unreslrthd. 16
THE SOCIETY OF OPERATIONS ENGINEERS Societyofoperotigns Engineers Consolldatod and Socioty Balance s•ts Group Soclèty 31.1221 31.1220 31.1221 31.12.20 Flxed ass•ts Tangible assets Intsngible assets It)veslmenls Inveslmenl in joint venture Share of net assets 1.623,174 180.728 3.091.643 1.717.841 270.625 2.725.778 1.623.174 180.728 3.091.743 1.717,841 270,625 2.725,878 100,(XY) 4.995.545 11XI.OOCI 4.814.244 4.69S,645 4,714,344 Current assets Debtors Cash at bank and in hand 129.145 1.232.429 1.361,S74 $43,837 919,236 1.463.073 266.674 950.5 1.217,264 597.489 660.822 1.258,311 11 Credltors.. afflounts lalllng wlthln one y•ar 12 (934.) (913.602) (911.803) I899.004) . Net eurrnnt assèts 427,268 549.471 305.461 359.307. N•t ags•ts 5.422.813 5.363.715 5,201,10S 5.073,651 Funds Unrnstrfcl•d funds General subsidi trading Prorrt lor the year 15 5.201,005 221.808 5.073.551 290.J64 5.142.008 5.014.064 59.098 59,587 Total Funds 5.422.813 5.363,715 5,201.ICfj 5.073.651 Th8 notes on pages 19 to 30 form part ol these accounts. The financial StateTTnts on pages 16 10 30 tre aFy0 by the TTu$tees and auth¢)ri$ed for ue on 21 October 2022 and signed on th*r behalf by.. J E Eastman President S M Stephenson Honorary TT8asurer 17
THE SOCIETY OF OPERATIONS ENGINEERS
Societyof Operation5 Engineers
Stslom•nt of Cash Flows for th• year •nd•d 31 D•c•mbw 2021
T•)lal Funds
2021
Total Fund
2020
Ca$h fl¢)w$ Irom operatlng Bctlvttl•s:
Nel cash provlded by (used In) operathg actmlles
288,264
{138.714)
Cash ftows from inv•8tlng a¢15.
DrrfN1ends. thterest and rents Irom wivestrnents
Purchase ol propety. plant and equ•wnent
Proceeds from sale of investments
Purchase of investments
Investment managers lees
Net cash pmvlded by (used In) Investlng •cdvltl•s
62.578
{8,6071
286.960
1297,0411
(18,9611
24.929
58.337
{14,422)
619.231
1598.357)
16.0101
48.779
Cash flows fr
THE SOCIETY OF OPERATIONS ENGINEERS Societyof Operations Engineers Notes to Ihe financlal stalem•nts for the year •nded 31 D•c•mber 2021 Accountlng pollcl•# Company Infofmatlon and ObioctiVOS The Society of OperalM)ns Engineers is a r•gisled charty Ireg. no. 10817531 and cLMnpany {reg. no. 36671471 which is irK(xwYated aTrJ domKiled in thp United Kingthm. The dresS ol thé registered offe is 22 Greencoal Pe. Londcn SW1P 1PR To improve and devale techn and general understandin9. kTh>lédge. skill and competence of pgrsons engaged or dessriw to te engtyed in (w"ons ewineering or any related employment. and the integrity aNJ repule of Ihe protessi¢)n Ilweol. To promote and er¢ourage the advanceMt of sciencé. techrt4)gy and waclice. in74entions and improvements in the fkl of operatwis engIneing and any other related branches of engwertng, and Ihe dvJernination extharye of Ileas. inforMal)n and kIedge thereof. By means ol Ihe above. ixrt Itrul PIle to the gener Ihereof. to promote Ihe safety. efflencY and en¥W(Mental wstainylity of cperal#)ns eryineering to the benefit of Ihe community al large. Basls ol accountlng These financwl stalements e been wep¥•J in e0rdance 1h the Chartties SORP {FRS 1021 applKable lo charities prewng their a5nts in xcordance rylh the Finala1 Reporting Standard apph"cat4e in the UK and Reput of Ireland aThJ the Comwies Act 2006 and UK Generalty Accepted Practice. The stalemenl of financial xb"vi1s (SOFA) and balance sheet consolKJale the fi.nancial slatements of the S¢xaety. ts subsvjiary IRTE serVs Limiled and dcrfmant subSraneS {note 18) and include the results of the SoCies regthal groups and nITe$ on a I'ne by line tHSiS. The Society's annual share of ihe profftthses from its iort venture are Incl in tho Statgment of Financial Activiles and its share of the net assets incliKl8d in the baL4nce sheeL The Society meets Ihe definition ol a pubhc tenefft erfity FRS 102. The chanty has taken advantage of Ihe exemplions in FRS 102 from the requirements to wesent a charity onty Cash Fknv Statnt aThJ certain discthures al11 ffinal instruments. Havry assessed the tharW$ financial posioon. its plans lor Ihe foreats19 fuwre the risks lo which il is exposed. the trustees we 5tsfd Ihai il rernains apwwi to wep¥e Iha financial stslemenis on a going con¢em basis. 111. FurKtlonal & pros•ntatlon ¢urr•ncy The lunctional currenGy of the chwity and rts subshyiary ts consided to be pounds slerling because this is currerKy of the ecoTrJmic environment in which the charity operates. The MThsofidated financial stal*nents are also presented in pounds sterlirwj. 19
THE SOCIETY OF OPERATIONS ENGINEERS Society of Operations Engineer5 Notes lo tho linanclal $lrn•nts for year ended 31 Decernr 2021 Aecounllng pollci•s l¢onliThu•d} Crbtlcal a¢¢ounUng Judg•m•nts and k•y ol•stlmatk)n uncertalnty (poll) In the applicatron of Ihe charitys ¥Alrj poh'cies, V•fiich are described in notes I, the Trustees are required to make ju&Jemenls. eslHnales. assumptions atM)ul the caryry value5 of assets aThJ Irdtslities that are fvjt readity apparent from olher scAJrces. The e5tim8tes and undertyin9 assumption5 based on histor1 expenence and (ther factors that aré ¢onsid8red to be revant. Aclual re5uIIs may differ from these e51imales. The estimates undwtyiry assumpkns • mield on an -gOi basis. Revlsions to accountin9 e51Nnates aTe recojnised ift the period in whKh ts esllmale is rewsed if the revision affecls onty Ihal perryJd. or th the pert of the re¥ishM and fulufe penods if th• r8vi$w affects the ¢urrenl and luture perTods. In the vlew ol the Tnv4tee5. no assurnpts)ns corKwning the future cff estimab'on w¢erfainty affecting as5e15 and liabililies at the balance sheet dale are bkety to resul in a mater1 adiu5tynenl to their Carrng amoun15 in the next finanual year. In¢omlng R•sources AJI incoming resree5 from rnembershy. educalKfft. events and putAications for the year are included in the SOFA the charity is legalty enlthd kn Ihe h)come and the amount can be quantified wdh reascwwble accwacy. vl. Rosour¢es Expondod l èXnd&Ure is accounted lor on an accruals basis and ha5 been classiftd under headings that aggiegale all costs relating to an expenditure group. SoJarie5 are allcKated in W0rIn to the Stxty's staff lime spent on each expendire group. Support costs are those cosls irKurred 41ireth in support of the Qts¢ts of the tharity and also alkncated to each expeThJilure group on th8 basis ol stsff lime. Goveman¢e ¢osts are those irKurred in cneCtiOn tmih Ihe g¢)veinance of the charity. KKtuding eompliance with conststuts0 and ststrjtory rgquiwents. Irrecoverab VAT Is written off as MUfred. vll. Dgpr•¢lation L•nd•nd bulldlngs D•pratIOn has t•en charggd at 2% on of the c05t ol laTrJ and buiklings. this bein9 the PfOPOrtion relatin9 to the tik11ng Cty. b. othor fix•d a55ets The fow annual rates ol dewe(*tion cost have been appli80: Furniture and rtttings 20% Property impfovements 10% Office equipment 20% Computers Dyitsl infrastructure Assets over thg Val of £1,(hY) ar8 capitah"sed.
THE SOCIETY OF OPERATIONS ENGINEERS Society of Operations Engineer5 Nots$ to the financlal statsments for th• year •nd•d 31 December 2021 Aecountlng polld•s (c¢Krtlnuodl vlll. P•nslon $ch•m• The Socty operates a Group Pwsona PensN PLan (Group PPP) which 1$ a rnory pur¢ha5e scheme. Pen5ft costs are charged to the SOFA. psefiting a constsnt percentage of earnings payabte by the sIety to empbyee's pkns. The Socty ha5 a150 m•Je provisNx for employees not Govered by the Group PPP to tske out slakthkler pen5W5. in order lo cornpty with current le91sLqti. Furfough In¢om• Government grants ar• roMgnise(l M the perf(¥mance model. fwhen the tharity has complEd with any condil)ns attaching lo the grant and the grnnt be received. The grant in COnnectTr to the job relent¢'on scheme has been OgniSed in the peiiod to which the unoertying furtoughed slaff eo$ts relate to. Iluded in income is an arne1 of £50,659 in rnspect of the Coronaviru$ Job Retenti Stheme. PublICaOn$ As in previous years tro postage costs retsti)y to the distnbut¢on of the SOE Nows are incknled under th15 heading. For•i9n ¢urnncles Tran5Xtions expressed in foreyn cu(rerKies are transLd ¢0 slerfiTrJ and recorded al rates of exchange apyoximalry lo those ruling at the dale of Ihe transadk?n. etary 95sel$ and liatslthes are Iranskted at rates ruling at the balance sheet date. All differences are taken lo the SOFA xll. Income and expendltur• As permitted by secIn 408 of the Companies Act 20C6. the income and extj11re of the parent undertaking nol presented as part ol these accounts. xlll. Fln8ncl•l Instrlan¢S If the charty has any basi¢ fmancml instruments. Itw a initRIty recognised al transaction valug and subsequenlly measured at amortised costs usY8 the effecbve interest rnethJ. Financial assets held al amortbSed cost comprise ¢ash an(1 and hand, together with tr and other debtors. Fin•rla1 Iiakn'lrt hèbj * amtyttsed cost eomprt5e irnde and other cr8drtor5. Inve5trnents, including bonds held as part of an investrnenl portfolio are held at fair value at I Balance Sheel date, V(h gains and losses beirnJ rwni59d vthhin incryne and expendilure. lnVestrnts in SUdiary undertakings are hekl at cost less impaimienl. xlv. G6ft Ald Donations lo the charity are reco9ni8tsJ a¥ an expense eitherwhen wd or at the date when the company has a gal 1otrj.lrty to make the d(>nafron payment, if eartier. Taxallon As a registered Charity. the Souety is not lth lo Tax t)n its income.
THE SOCIETY OF OPERATIONS ENGINEERS SOCOf Operations Engineers Not•s to the Ilnanclal stalements for th¢ year ended 31 Deeembèr 2021 Incom• from ¢h•riW>l• •¢livtti Y••r to 31.12.21 Y•ar to 31.12.20 Actlvltlos In fvrth•ranc• ol tho charws obJKts Membershlp Educatton and Evenis Publicatkins Income Ir¢)m regK>nal grcwps and cenlres Rocrfn rwlal and sundry iFwme 1.303.523 212.026 170.959 7.726 149.447 1.843.681 1.318.462 81.829 139,100 12.576 193.717 1.745.6•4 Commerclal tradlng operallons The Soctety has a subsidiary Ihat h85 been Iradwig ynce 11 October 1993 and pays all its proffts to The Society of OperalwJns Engineers by gift akj. The wncal aC1Y of Ihe Comp•w 15 to raw funds n ordar to prO[le the avns of the Socpty. The s(ty hO&j in thè issued ordinary sh¥e ¢aprtal of£100 is as folows: Country of Reglslrallon R•gl•tratlon Numb•r Proportlpn hdd 31.1221 31.12.20 IRTE SeNices Llmited England and Wa 2854868 100% A summary of IR TE Serrtes Limthl's results arg $lvn I)e1 a1 wirted acetsunts ill bg filed with Ihe Registrar of Companies at Companies House. Profit Ind for th• y•ar •nded 3100¢omb•r 2021 Year to 31.1221 YKr lo 31.12.20 TuTnov•r 354,725 349,846 E¥p•ndi¢urè Cost of sales Administrative expenses (281,042) 16,517) (287,5591 67.166 (288.2601 {6,301) 1294,561) S5,285 Opfjrallng PffjfiV(Losyl Interest receivable 556 PrOf(LO$S) on ordinary acllvltl•s 67.202 $5,841 Net ILossylncome from Joint Venture (135.5581 366,599 ILos$yPront betorn gm and taxaUoTr (68.3561 422.440 Amount gthed to the {422.8041 (LossVProfit bth)re taxallon TaxatK)n 168.356) {3641 Rotslnod profft for lh• y The company incurred M(Pation tax n) Ihe year of £MI12020.. £N) No further proNision for corptrMin tax has been made on the eompanls Profrt f(K the year due to of donab.ng all rts tax adjusted profits avaW)le for dislribub.on under grfl to its uRmale parent undertakn.ng Wth nino months of eaGh yearftd date and because the crynpany eaty im*mented FRS 102 para 29.14 22
THE SOCIETY OF OPERATIONS ENGINEERS Society of Operations Engineers Noles to tha flnanclal statements for the yaar ended 31 Devmber 2021 Comrnerclal tr•dlng op•rations 1¢¢>11nudj As•t 31.1121 IRTE S•rvleè# Umlt•d Th• aggr•gats ol the ass•ts, Ilabllhl•¥ arrfl funds w•s: 31.1220 Assets Liabibties 401,$32 (179.7241 744.568 1454.404) Fund¥ 221.808 The Gost8 of the Commercial Vehth SIKM LLP manml team toialliry £259.599 (2020.. £259.0281 arè retharged tr> IRTE s¥e$ Limited by the SOE One of the tenanls occupying offi.ce space in the SOE buidiThJ is a firrn ol soh"citors whh wludeS amrrfJ5t ifs partners. director of IR TE Seivus Limited. The contraclual arrangern are at ams length and the tenant pays rent at a commercial re. IRTE serv Limited £422,804 a5 Gift AKI to the SOE in respect of Ihè 2020 profit. The direclcKs ot IRTE seryeS Limited have reed not lo declare a Gift Akl (h)natith) for 2021. At 31.12.21 Al 31.12.20 Amunl On9 bylltol p¥ent coryyany {lUded in liabthl*s) 423 197 Jolnt Ventur• IRTE Services Liffthd has a 33.33% ntefest in Commercial Vehicle Strthi Limrted Liabilty Partnership. Y•ar to 30 Jufft• 2021 P¥tn•rnhip Swnmwy financlal Infomiaiion gfth¢ CV Show LLP share Pr4)flt and Loss Account TurrKwer Year lo 30 June 2021 {41X.675J (135.558 op8rab.ng ILossyProfft Interest receivable PartnepJ' Assei loo, Balance Sh•01 Current Assets Cwrenl Lvabilit A6 •t 30 Jun• 2020 2.405.551 801,850 {2.105.551} 1701,850) Net Assets 300,(NJO 100,(100 Represent&J by. Partners, Capitsl Accrmmts Partners, Current Accwnts 100,IMI 100.OIJJ The Parthershp prepares ounts to 30 June atKI ts aLK)ve •xlrx¢ 15 Ite10 from the most reunlty available ac¢jnts. 23
THE SOCIETY OF OPERATIONS ENGINEERS Society of Operations Engineers Notes to thc financlal statomonts for the year endod 31 Decombor 2021 6a. Analysi$ ol ch•rlt•bl• expendlturn Staff Support Costs Other Dlrg Costs Total Yfrar to 31 D0GfrMr 2021 S8fyices to ervJinee¥s R09ional groups and eentres Publication$ Edu&100 Marketing. tA)mmittees ond exhiNt#Ms Governance 430.807 33.852 58,196 126.491 202.638 105.022 239.441 18.815 32.345 70.303 112.627 56,371 28.055 87,316 350,778 14.588 113.327 32.6 698,302 139.983 441.319 211.382 428.592 19S.049 957,006 531,9112 626,720 2,115.627 Y1 to 31 D袕mb•r 2020 (Pflor Year) Services to enginegTs Regic4BI groups and ¢entre¥ Publlcath)ns Education Markeling. commfftees and exhibl¥Ms Govem8nce 475,080 49,074 60.349 734,743 207.857 103.987 235.334 24.309 29,894 66.746 lo2.3 51.510 50.616 102.492 414.855 6.561 43,850 33.903 761,030 175.875 505.098 208.050 354,670 189,400 1.031.0 510.7 652.277 2.194.123 6b. Analys18 of support costs Flnaneb•l Costs 0eprncla0 Prnmisej Total Engineers Regions Publications Education M8rketinglPubkity Govemance 47.949 3.768 6,477 14.078 22.554 11.689 73.125 5.746 9.878 21.471 34.396 17.826 2,163 170 292 635 1.018 527 29.246 2.298 3.951 8.587 13.757 7.130 86.958 6.833 11.747 25.532 40.902 21,199 239,441 18.815 32.345 70.303 112.627 58.371 Total Support 106,515 162.442 4.805 193,170 531.902 Tot41 Support costs 95,615 131.189 19.270 61,030 203.652 510,756 6¢. Governan costs ar• mad• up olthe lollowln9: Govemance costs include audit fees of £18.60012020: £17.800I. non audit fe&s of £3.35012020.' £3.585). AI 16 Truste (including Ihe 7 Direct8 of IRTE SeTvKe5 Ltd} claim oui of pocket expen$e$ in relatim tr) travel and subsistence costs for atterrflanc? at meelings and representslion events amounliry 10 £7.43112020'. £10,344}; Trustees. and Offrters. liabilty w)surance £2.9S2 (2020.. £2.738Tr: rwnamider is expendilure on 18981 ond otlw adminlstralivo costs an SprtnManI ol ¥laff tine. 24
THE SOCIETY OF OPERATIONS ENGINEERS Society of Operations Engineers Notes lo Ihe financial statements for the year ended 31 DeceMr 2021 Tanglble flxed assots Land and buildings freehold Computer and Group and Sochty Cost Cost al 31 December 2020 Ad(litsons Cost at 31 December 2021 Total 2,257,845 132.617 8.607 141.224 2.390.462 8,607 2.399.069 2.257.845 Depr•¢lallon Balance at 31 Decenkner 2020 Charge for the year Balance al 31 December 2021 567,406 88.709 656,115 105,215 14.565 119.780 672.621 103.274 775.895 N•t book value at 31 D¢umbor 2021 1.601.730 1.623,174 N•1 book valuo at 31 Docomber 2020 1690.439 27.402 1.717.841 Intsnglble fixed ass•ts Digital Group and SoGiety Cost Cost at 31 Decernbew 2020 Additions Fully depreaated and wrbtten off Cosl al 31 December 2021 449.485 449,485 Depre¢latlon Balance at 31 December 2020 Charge for the year Asset Write downs from previous yoars Balance at 31 December 2021 178.860 89,897 268.757 Net book value at 31 De¢•mb•r 2021 180.728 Not l)ook valu• at 31 00Mb 2020 270.625 25
THE SOCIETY OF OPERATIONS ENGINEERS Society of Operations Engineers Notes to the flnanclal statements for the yoar ended 31 D•c•mber 2021 Inv•stments Group Llstsd stocks and shar UK Gitts and other fixed inlerest UK Equities Abtematives & Hedge Funds Overseas investments 31.1221 31.12.21 IA•1 Vu• 31.12.20 Cost 31.12.20 Ilarket Valu• 194.897 736.424 434.807 769.149 209.389 1.190.148 466.114 1.225,992 194.322 771.026 263.717 782.919 220.069 ,114,897 271.695 1.119.117 Inv•stments lolal 2 1352n 3.091.643 2 725,778 Year to 31.1221 Year to 31.12,20 overnonts durfng th• y•¥ Group MaTkel value as at slart ol year Purchases du(in9 the year Sales at market value prior to disposal unreakn.sed {lo$s}Igan on rwalualion Non market Iransaction5 2.725,778 297.041 1268.901) 337.369 2.703.393 598,357 {652.029) 75.999 Market value as al end ol 3 091643 2 725 778 Realised gain on disp)sal of investments Unrealised {loss}Igain on revaluation Gainl(losses) on non market transaclx)n$ Net gainslOossg91 M rnvaluation and dispo of In%lMen¢S {32,798) 75.999 58 43.259 337.369 356 355.783 Inv•stmenls over 5% The folbwwy investments have a mafket valualion of over 5% ofthe knlal vweslmenl vaation. JP Moryan Asset Mgrs (UK) US Equity Incom8 Hedged £146.596 (5.WA) The So•,$ inVestrnts indudo a further £100 Investrnent in IRTE Services Limrfed (see note 41. 10. Deblors Sochty 31.12.21 31.12.20 31.12.21 31.1120 Trade deblors (less bad debls) Owed by 8ubsidiary undertaking VAT Other debtoryJ Prepayments and Kcrued income 177.427 74.359 157.735 56.102 423.197 16,610 18.325 (138.094) 89,812 129 145 368.881 100.597 89.812 266 674 100.597 597.489
THE SOCIETY OF OPERATIONS ENGINEERS Society ofoperdtions Engineers Notes to the flnaneial statements lor the year ended 31 D•cernbar 2021 11. Cash and bank balances Group 31.1220 SIety 31.12.21 31.12.20 31.1121 Oeposlt and curfent accounts Cash Ki hand 1,232,329 100 1.232.429 919.036 2ty) 950.490 100 660.622 200 660.822 12. Cr•ditOfS: •rnounts falling du• wlthln one ye•f Group 31.12.20 31.1221 31.12.21 31.12.20 Subscrplions in advance Trade and other creditors Social sact1 and Olhgr taxes VAT cruals and deferred income 548.977 228.704 30.368 153n 126.794 934.308 521.467 229.318 31.100 723 130.994 548.977 211.364 30.368 521.467 229.073 31,100 121.094 911 803 117.364 899.004 Creditor accruals totalled £ Nil {2020: £Nil}. The deferred inccffne incl185 office rental income frorn tenants. .13. Caplt•l Commltments and Op•ratlng Leases During 2020. the Group entered into 8 Ihree year operating lease agment to hire Iwo office pholo¢opiers. The quarte payment iludeS the renlal and mainter¢arKe of these equiprnenl. The ovtstsnding Contractual rental payments at year end totaifgd £5.252 (2020: £6.848) 14. L•s$or k¢ountlng The Group has a numbei of lease and lieence ¢mipy 89reemenls tmth lenants ottupying office space on the ground and second Ib)ors of 22 Greenal Place. These ageMts are open ended wrth not¢e periods of either Ihree (ILY liceftces lo occupyi or six (for leases) month$ fequired foi eilher party to terminalo the agreement. The annual irKome from lh8 agreements. shk1 no temiination take place 1$ £124.067 27
THE SOCIETY OF OPERATIONS ENGINEERS ScKiety of Operations Engineers Notes to Iho financial slatom•nts for lh• year ended 31 D8mber 2021 15. R•s•rv•8 Gener41 R•glon•l Tol•l R•s•rv•¥ Year lo 31 D•C•mr 2021 Group Balance at 31 December 2020 SurplusllOeficrt} for thè year 8alance at 31 December 2021 5.278,650 67.999 5,346,649 85.065 18,9011 76.164 5,363.715 59,098 S.422,813 Represented by Fixed assets Cash al bank and in hand Qther nel current assets 4.995.54S 1.156.265 1805.161) 5.346.649 4.995,545 1,232,429 {805.161 5.422,813 f6.164 76. 164 8Klety Balancg 8131 De¢ember 2020 Surplusl(Deficill for the year Balance al 31 Decernber 2021 4.988.586 136.356 5.124.942 85.065 18,9011 76.164 5.073.651 127.1155 5.201106 Resented by Fixed assets Cash at bank and in hwKS Other net current assets 4.89S.645 874.426 1645.129) 5.124.942 4.895,645 950.590 1645.1291 5.201.106 76,164 76, 164 Year to 3100¢ombor 20ZQ Group Balance al 31 December 2019 SurplusllDeficill for the year Balance al 31 December 2020 5.211.OW2 67,558 5.278.650 93.038 (7,971 85,¢xs 5.304.128 59,587 5.363,71S Reprgsenled by Fixed asséts Cash at bank and in hd Other net current assets 4.814.244 834.171 {369.765) 5,278.650 4,814.244 919.236 {369.76S) 5.363.715 85.065 85.065 So¢l•ty Balance al 31 December 2019 SurplusllDeftcill for ye* Balance al 31 December 2020 4.920.664 67,922 4.988.$86 93.036 (7.9711 85.06S 5,013,71X) 59.951 5,073.651 Roprnsented by Fixed assets Cash at bank arKI in h•KI Other net ¢urrenl assets 4.714.344 575.757 {301.515 4.988.586 4,714.344 660.822 1301,515) 5.073.651 85.C65 85,065 24
THE SOCIETY OF OPERATIONS ENGINEERS Society of Operations Engineers Notes to tho financial statomonts for the year ended 31 D0mber 2021 16. St•ff Yoarto 31.12.21 Year to 31.1220 The Ial staff emohJments induding taxth beneffts for the ye#r: Gross sae$ pem)an8nt and t•mp(ary $taff Employerfs Nl Employerfs pensk fe assurance cover 804.285 87,030 56.045 3,930 869.175 93.985 59.194 4.692 1027 046 Redundancy and temination paymgnts tolalling £1.614 (2020: £11.813) were paKI during Ihe year. 2021 2020 Key Management (defined as the senior management team): Totsl emolument$ including Ioxabk benefit5 for Ihe year 552.687 602,964 During the year. payrnents tolaifing £l.800 {2020'. EN4 wefft patd to a Trustee as fees In conneclM with workslK)p Inspect$ on behalf IRTE SeNKes Ltd. No other payments were made except IOT out of pocket expenses 6c). 2021 2020 Average numbw ol emtheos sed by function was: Charitable expendit1¢ Management, adminislrath)n and supwt CV ShN fflana9ement leam 18 19 24 25 Nufflber ol staff whose emolLments lèxcludiNJ pensions} induding taxable beneffts from the SoGiaty exceeded E60.IYJ): £70,001- £80.000 £8a,001 - £80.000 £90.001- £100.000 £100,000 - £110.000 £110.000. £120,000 2021 2020 The Socièty's pgnsion contribution for any member of staff whose ern0luffts exceed £60.(0 15 paMI at the ¥ame rale a$ app.ts1e to all staff ¢lKJible to join the group personal pension heMe. 17. Soclety P•nsl¢)n Arranqemènts The Societrls contribulions m*le orb behalf of eligible employes in th8 yw amounted to £71.383 (2020.. £75,866). {Also see note 1(wi) of the accounts.)
THE SociEfY OF OPERATIONS ENGINEERS Society of Operattons Engineers Notes to Ihe15nanclal slatements for the ar ended 31 December 2021 18. The Councll of Management The Trustee Board nsIsts of 16 members including the ¢hair3 01 Ihe 5 Profossional S¢clor Councils. No romungralion or other benefit in monoy or Mov$ bwrth vrds given by the S¢xety lo any othgr mgmber of the Board except out ol pke1 expense5 (see n¢e tr). 19. Voluntsers Th8 TTuslee5 are grateful kn thg Invaable time supp(xt given by the 200 volunteers who $11 on Ihe Trustee Boafd, IRTE SeThices Board. fNe Profession81 Sector Couneils. the Membership & Professional Standards Committee and R•gic81 Committ•as. 20. Uablllty ol Members The Society is a company limited by gu10 and Clause 8 of its M8morandum olAssrtiation states that Ihe maxirnum contribution for wl¥ch a member can be Ikqble in the event ol the Soclety's IUMIation 1$ £10. 21. Dorniant Companl•s Th8 fdkmiing companies are subsi(fvaries of SOE twt did not trade the year.. Country of Rfjglstratlon: Reglstratlpn Reserves Mumb•r 31.12.20 Reserves 31.12.20 In¥tiluttm of Plant Engineers Inslilule of Road Transport Engww5 EThJland & Wab85 Engl8rKI & Wabs 419646 395541 1.OlX) 1.000 1.000 1,000 Bolh of these companies are Imited by guantee. 22. Flnanclal Instruments At Ihe balance sheet date. Ihe consolidated group held financial assets al amortised cost comprising investment in joint venture. tvade debtorn. other debtols and cash and deposits of £1,509.856 (2020". £1,456.8421 and financial It1"hIleS at am0"Se¢l eost comprising trade and ¢)ther credrtcs and acefuals of £385.279 (2020.. £392.135). Total interest income receNe¢l respect of fwwncial assets hekl at amortised cost talbod £6312020: £4771. Tho charity hekl financk41 awl$ at fair value through invJrn8 or expenditure cornpany investments ol £3,091.64312020'. £2.725,7781. 147ovements in the year through the Statement of Financial Activities comprise dividend InMe of £62,515 {2020= £57.861) and net gains of £355.78312020.. £43.259)