Society of Operations Engineers REPORT AND AccouNTS FOR THE YEAR ENDED 31 DECEMBER 2021 INNWlllWUII *ABfA)2(JIZ' 30rt)9r2022 COMPMIES H¢JJSE #157 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 LI￿nSed Member of the EngineeriThJ Council and the Society for the Environment THE SOCIETY OF OPERATIONS ENGINEERS Patron Sir Jthn Parker G8E TRUSTEE BOARD President Ch￿r Director Internal¢onal Oifector S￿dards Di￿¢tor Services Director Govemance, Risk & Compkance Director IRTE Director BES Dirèctor Environment Director Co-opted Director C￿ople0 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 Seyrnr￿r 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 S*eelmre 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 Ch￿1 Operating Officer PA to CEO and Offic• Managgr Head of Finance Maiketing & Commun￿*1￿ M Memtérship Manager Professtonal st￿dar￿ 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 LIverw￿l Buiklmg, Pier Head, Liverwol L3 1NW Solicitor5 Bulling￿S 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•n*s kl. $utffiit th8* cfjport the atsdited financial statements for the year ended 31 DeCer￿r202I. In preparing the roport arwj financial sla*mertts of the So¢i•ty. th& Tru5taes have •lopled the provisions ol the Chant•s SORP (FRS 102) appl¢ablo lo charilies preparing IheK Kcounts in •C￿d3￿Ce w￿h Ihe Finanu81 Rap￿try Stand8rt1 apylKèble ￿ the UK and RopublAC of lrnland 8nd Ihe Chan"t￿S Act 2017 and UK Generally AecèptÈd PwtKe as il app￿eS from l J8nuary 2015. The S(Kiety is govwned by its Memorandum and of Ass0oalK￿ •Jopted on 12 No¥wr4)ef 1998 and last amended on 28 June 2007. The Tnjstets at tt￿date ofthi6 repryt served llwoug￿uE tho year except Wh￿ otheMi$e $tst¢d. are Ihe mornb•rs ol the Society's Twst•e Board h"51ed rm page 2. OBJECnVES OF THE SOCIErY The Soc*ty's oW'ecb¥es. as spe¢*d in the Mwnorandwn of A$s￿la1￿ 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 engIne￿Ing. 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￿ Opera￿n$ On9ineering to the communty at lar98, thrw: Improving professimal educat¥)n, trainiry. comW8nc• and ethic5: Influencing legislalion and de$NJn- Erthancing public underslanding of the eontr*utvJn of tr* Society •nd its membershp to the cthnmunity.. Promoting the benefrfs ol mgmbwshi) and profess•y)al r*tratv)n. 20218USINESS PLAN In 2021 the Sttw. like all olher organ&thns, had to e¢ntinue lo plans to alknv for the impact of the Cwd-19 pandemK. After an inib.al pernd of cptynism regarding a retum lo normality th8 discovery of a new strain and subsequent reinlroduciion ol festrKlion$ meant Ihal many aclivibes. including events, had lo bo 5hthd from face to fa¢e lo onlw*. utAising ¢Jnb"ne c0rtsrn￿g trxjls. STRUCTURE. GOVERNANCE AND MANAGEMEHT The Society 15 go¥erried by a Tntstee B¢wd, ¢¢wisty Bixiean men*ers. ar* respon$ible for the overall govomance of the Soiiety. The Board is supwted by Ihe trading c<¥npany. IRTE ServKes Limrtgd. the ALbdié 8nd Risk commfftw tho Klefflbershw a Profess￿nal Standards committ08 and thg Prolessts)nal Sector Covnuls. Spr4•tyDIOpqr3l*n6tnywt• REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 Sodety Trustee Board IRTE Services Soeietyievel committeese.gM&ps Head Ofli Prole55ioh•l ctor IATE profes￿onal Se9 wd¢omp8tsn¢e The Tr￿tee 8oard are principally elected by vobng rFwnber5 of the Socw. The exception is the Chair of IRTE Seryices L￿nited. Honorary Treasurer. Honornry Secretary. Cha¥ ol thè IAembetship and Professional Stsndards Committee and Ihe Preskl8nt of th• so￿ty. The Presidènt e*t and Mnmodialg past President ar• ex officio rnerthfs of the Trustee Board. At ￿ast 50% ofthe Professxffial Sector Council members arè elècted from and by the voting members of the professional Sec￿rS. The Trustee Board arKI the Prole5sional Sector Councils annualiv corKtud a rovw of skills needed arKI recruilment op¢YJrtunit*5. The Truslee Boaid and the Professional S8ctrJr Councils are alxi able to cLw>t key members Wilh appropria￿ skiya and knowlgdye lo join and conlribute to their •ctDnt*s. The NominatKir* Committee conlrtue to support IhB prO￿sS of su¢¢ession ￿annIng for the Soc*ty. The committee is Chaired by th• President Elect and is resw$ible for ensuring plans arg in place for orderty succes5￿n to Board FrtJ$ib"ons an¢J senv)1 Board rdes and oversees the dtrvelcpment of a dwerse pipeline for successKin. Wing into xcount the ¢h*Jen9es ¢)pprytunil*s fao.ng Ihe SoC￿ty. arKI the $ki118 and expertise needed on the Board in the fvlurg. Upon taking up their newty elected Tru5t••5 receive tTainir¥J coveriThJ cowate governancg. Charty law and wlicies and procedures of the So¢iety. The Trustees and members of the Professional Sector C¢unci15 afe subiect to the Society'$ Code of Cwduc¢. The Truslees ￿lfirni ttwl Ihoy have ¢¢wntyied with tho requirements of the Charilies kt 2011 to hale due ragard to the Clwty c￿Mi*S￿ln'$ publthed gen¢ral gv¥Janrx ￿ putlic benofft. REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021 In oddrfion to those l*ted on page 2. Ihe folknAgng Twstees also served on the Board thJru)g the year.. A FraSer￿1￿hen 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. re5￿Me￿ Jun 20221 AJ Cockcfoft EngTe¢h MSOE MIRTE {¥wnted Oct 2021. rnsignad Jun 2022> A Reid IEng CEnv FSOE FBES (re$￿fted Jun 2022) AD Jolliffe MSOE MIRTE (r•sw8d May 20221 Staff Bruce McGill, Chief Executs"ve, oversaw the irylwmntatw of Ihe 2021 ￿SInesS plan agreed by the Trustee Board. Key managemenl personnel are those senior managers •Jentrf*d OTr p48 2. Their pay and bonelits afft reviewed annualty h.ne with sim4ar pJsitioThs in the charity sector. In an effort lo better align the staff team lo inwlement outputs and offer greater suprMNi th• Trusl*s agr￿a to cert•'n aller8t￿n5 to the head ¢ffic8 slrnclure. These changes tc¥)k plxe in 2022 aNI inclwjed Ihe reduThJancy of tha Ckniel Executive Offi¢gr. The Trustees would lthe lo thank Mr McGil for his time al ts Souety and b&adTh￿ the oryani5ation through the difficulties w•senl•d by lh8 pand￿1C. VoluntO•fS The Tru$iees are aFvreciati¥e of the rnam￿ ¥tho Iheir lime to serve on Ihe Prol•sslL￿0l Sector Councils and Committees both c*ntraHy IA Ihe reg￿n& 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 ¥a￿a￿le 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 e￿tiVe 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¢￿e￿n9 the risk re9iSteT and reportmry to the Trustee &)ard. Other ¢ontrob indude comprehensive strategK plwning. b￿￿getIng and manaaernent reporting. formal lines of reporting and wrd¢en p￿￿edureS includin9 aulhorisat*)n d wcUM￿ts aganst Ihe Chwity Governan￿ Code and upJatin9 its Memorandum and A￿"¢le5 of Asscoat*M to reFffesent best pra￿￿•. At an Exiraordinary General Meeling 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 Ol￿r relthd d￿￿Ments. Thg updated Mernrandum and Artidès of A$s￿al￿ brings the Scoety inline with recognised best Fffacl within the Professional Ertsjineering Institute community and was a key requiremenl ol extending Ihe organisations ItC9nse wth the Eng￿eerIng C¢Juncil. Itwill allowfor changes lo Board structure. rfiodernising its running and ensuring greatei rewesentation of the So¢*ty's Secl¢xs. The Society is led by ts Truslee Bo*d arKI suworted by CTOS$ sector Cormiittees including the Member$hip & Professional Stsndards CDrrThittee and theAudil & Risk Committee. pr￿￿Ing detaikd ¢)versighl8nd scrutiny of key areas ol operation lof the s￿￿ty. Each Se¢lor has its ￿￿tn Profes$￿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 a￿sIght 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$ge the anrvJal insuryrte Tenew REVIEW OF ACTivmES Upon enteiing 2022. the Society had wide ranging rAans iilendgd lo suppyl ts Visi)n. These were based on ihe prevailing leeling of an e¥pected return to rKymalty and opportunty to regain grourvj lost due lo the Pandemic. Thè centre ar￿nd l￿dding intemab"(Wkil relat*)nship5, eypanding events and develoyn9 comThrcial actNikne5 through accreditalions. H)ut14f the parthmic all ofts Society's R¥g*x81 Centres cancelled lace to kn Meet￿gS and CPD pre5entatK)ns. Many ¢tynmittees Contirt￿ to meet online The Hong Kmg Regional Group was also severety *lecled by the pandemK and h￿1 to cancd all ￿anned events. Publlcallon$ The Society's has Iwo p4kn1ution$. Transport Engn8er and Oper&i*yts Eweer. They * thsKJned to help al iDvofved with operats'on$ •ngineering lo keep up to date vrith latast davebpmgnts. Mern￿￿S receive the publ￿atrOn Ihal is rn￿1 relevant to Ihem as part of their membership but there aro atso many rrfTrmembers who Subscribe to these prt*li¢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 Ir*btuiN)n. w• hav• a responsilylty greater than siM￿Y crufting compelent person$ into membernhp. As an KKlepend8nt body we $trive ¢0 ensure that the publ￿ i8 aware ofthe Irr￿ortant* ol eftgineering in general arml ot il being C(￿d￿ competent persons. ensure that W￿Mb￿S. Skills We kept up to tjate Ihrwh lechnical wbhcalitsx, the website. CPO lectures and netr•othiNJ meelin9S With Ih¢ir pews. The Soc￿,$ webinar 5er*$ has n sche￿ are imp)rtant in raising standards of vehth mainteriance and complmnco across th8 road transport industy and conkn.nue lo be stgn ￿￿ted thr￿gh the DVSA'S Guth to Ro*lw(xthines$ arthj the FW Operators Recognilion Scheme {FORS). The So¢w was delighted l? hohj Ihe inaugural Safety & Sustainotllfty Awards in O¢lobw. Avrdrds ￿1* presented aCfOSS Ihe respective rwons withing the ScK*ty cutrninatM)g in the Sir Moir Lockh8ad Award acknowledging leaders in 5alety. The event was atieftded and luly lunded through sponsotship from key industry partneFS. Tho Socth 0150 COTrtinued to be fvlly commrtled to recogni5ing excellence aEr0s5 QUI Professional S•¢lofs I￿r￿￿ c8gional •wafds aThJ have wblishiThJ a nuft*•r of use $lwli# to h*JhlwJht best praclice. The IRTE Professional Se¢tor Continuas to woth Titi Ihe IMI in developing irt￿. with thg key objectives of improving tndusty s￿dardS and the c￿￿petenCe 01 lechnKian8 w0￿1ng in ¢he industry. The siewin9 Group meets fegularty with the remit of ensurbng the wlec 5chwne cr￿￿nueS lo comply with Industry requirem8nts. Membefs ofthe group indude rekwenlalNes from Manuf￿r01s. oporators. bus C￿panio$ and Iraining wovid8rs. Fundrnlslng The charity had no fundraksing actNA*5 requiring dbsdosure un(ler S162A of thg Chaiti•5 2011. Tradlng Company Aellvltl•s The Commercial veh￿16 Show was ab* to p ahead, alW at a poslponed dale tv*ards the end ol the year. A smaller show than in prevKJus years. it vrns Ihe first road transport conference to take pface once slrictv)ns wL¥e Idted and wa5 well re¢eb¥ed by the *it*$ty. The 2022 cty)Yne￿1aI will be pvsh&d bad4 Io a¢¢ommodale the delivery of the postp￿0￿ 2021 sh(hv and 15 due to tske place at the NEC in June. The IRTE Wothshg)Attr8thtstw)n S¢hBTrnwas devebwl in consultat￿n industry. v•hicb manufacturers and key governmenl ag8ncie$ lo delivei an indepondenl a¢ueditalion s¢heme to regulale and imyove indu$lry 818ndards for maintenance providers. The Scheme 15 thvned by IR TE ServKes Limited and 15 deh'vered by trusled partners. including the Fraght TransF*Yt Associalion. S & 8 Automotr¥e and the Road Haulage Associoknon. The IRTE Services Lwnrted Bowd ha5 over¥ll R5pon5ibilty for the govemarKe and thvelapment of Ihe Scheme. Arourtd 600 ￿￿shopS have been audrted snice the 5cherne started with moré authts bei)g arranged. ThefvureditatK)n Scheff* has ba￿ rac8nty been uwlatedlo irKlude the addition ofelacthc vehicles lo fleels. ANANCLAL REVIEW Resufts The Slatem¢nl of Financ￿1 A£tivilies {SOFAI forthe year ￿ sot out pag8 16 of th? finan¢s•1 $ialemerbts. Th• s￿￿luS lor the year lin¢luding gains ￿ in¥e5tmnt) 1$ £59.098 cornpar•d to the surplus last ye•T of £59.587. Charilabl8 incorne of £1.843.681 in 2021 is £98k hI￿r than in 2020. Thts reflects Ihè imF¥tyemenl in volume Socr•ly tsl REPORT OF THE TRUSTEES FOR THE YEAR ENDED 310ECEMBER 2021 of •conomic a¢tr*ily 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". Su￿US £16,328). The real*ed 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 an01￿1¢Y The Soci8ty'$ inveslrnents 8￿ rTranaged by ROthb￿&S Invesknwl Mar*9•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$ociated with investrnenl in main51ream rinancial ma￿etS and accepl this rrJk in Teturn knthe pr05Fttt ol a(kIrt￿l returns over longer periods of lima. As such. the Truste89 wish to ￿mall lafgety invested al all times. subj.ect to cash re5erve5 being held a5 part ol the investment management prctess and to cover h'abilities. The Inv¢$b￿nts Sh￿Id be well rfivernified and includè a range of assets inC￿ding fixed mtsTest sloeks. UK shares and oversea5 shares. inveslmeftl pf)rffo1￿ 95 al 31 December 2021 was ¥ah￿d al É3.091.64312020'. £2.725,778) uxnprising VA [￿ed interest lunds, 38% UK wtias, 40% overseas mwe$lm&Ats. and other invesbnents 15%. As restri¢bons ease and the ￿rbulence from the pandemic recedes. market confKlenc8 has increased The lotal relum trom th8 portfolio was on in¢rease of 13.6% over the year ¢¢Mnp8red with an incr•ase of 12.2% in the ICOnstFa￿ed by hnc(*ne> benchmark. The Tvuslees have revithved perf0mar￿ of lh8 inv?$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 fU￿re. Tradlng Company The So¢i*ty'¥ wholly-owned tr•Jirg subsidrary. IRTE Sery￿e$ 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 Commwc￿l VehKle Show whKh is Organ￿ed in partnership with the s￿Iety ol Motor Manufacturers and Traders Limit8d ISMMTI and Ihe Road Haulage Associal￿n IRHAI. This loss fmm trading actfvitw is • tining igsue to the ￿91por￿n￿t of the 2￿21 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 admin￿a￿Ve costs i*urred up lo Ihal point in time. Thè true wofit of Ihe 2021 Show will be finalised and recognised in 2022 and the Socth's a￿OUnts wll then include Ihe Profits IOT both the 2021 and 2022 Show$. More dotails ean be lound in no*s 4&5 on pa9es 22 and 23. Group r•s•ry•s The reseryes pO￿¢y. whth 1$ rwewed annualty trty the eoèrd fomulat•d Wbth fft3aFd io.. Foreca$ts of future K￿C￿re. lthng inlo actwnt the reh*ikty of •xislmg sources F*ospects for new $ourc•s". Forecasts of future expenditure based on pknned atlivi￿. An 8ft3￿$1$ of any lufurè needs, opportunit*s. 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 unrestr￿ted 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 cTrS 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 financ￿1 statements and our audilorfs ￿port Itrereon. Our opinK)n on the f￿an¢￿1 state￿nts does rK)t cover the other information and. except to Ihe oxlgnl othe￿158 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 statern￿ts 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 Pert￿Med. we conGlude tlkil there is material rnisstatement of this other infomwtion, ￿ wè reQ￿red 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 inf0m￿li0n given #i the tntstees. reprt wh￿h irtlLKle$ the dIf￿10T5. rpport prepared for the purposes of company law. for Ihe ffinanc￿l year for whieh ltte finartial stai6m¢nts ar• prepared 15 consistent wilh the financtsl ststements" arKI the directors, r8POrt i￿￿led wilhin Ihe trustees. reF￿rt have been prepared in accordance with applKable *al requirements. Matt•rs on whlch we are Tequlrod to report by ex￿ptIOn In light of knowle* and urthrstsrKJiNJ ofthe group•J charrtabbe ct)mpany and their •nvYrybment obtained in the course ol the a￿rt. wé have mlentrf￿d m3lerAI missta*ft*nts in Ihe directors, report ir￿lUded ¥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)ns￿MIlL￿ staten￿t set out on page 6. the tfustees (who are so the direthrs ol the charitabk* com￿nY lor the purp)ses of compary bwl are responsible tor the weparalion of the financial statements and for being SatsS￿d that they g¢ve a true and fair view, and for such inlernal control as Ihe truslaes detemmne ts necess￿ to enable the weparat￿n of financial slalements thal are free from malenal n¥sstateTrenl, whether due lo fraud or error. In prePa￿n9 the finanii* StaIerf￿ts. th• trus1￿$ are resp)n￿le fcy asses5iry the charitable compaiy's abilty lo tontinue as a g￿n9 concem. di5ck)sfft9. as ap￿￿￿e. mallers related lo g￿n9 concern and using th¢ goin9 ¢oncem basis of act￿ntsn9 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#iiMsE￿9￿IPErS 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 state￿￿nts as a whole are free ftom material rnisstatemgnt. whglherdue ￿ Itaud or error. and to issue an audilof's report that includes our opinion_ ReaSona￿e a$surarKg is a hwJh kvel ol assuranc• but is not a guaTanleg that an audit Cr￿duct•d in occordance wilh ISAS {UKI will atrways detect a malef1￿ mi55tatemenl when il exists. Misstal¢menls can arise from fraud or effor and are considered material rf, Ir#Jrv￿UaIty or in the agjregate. they could reasonabty be experted to #ifluenee the econom￿ dectsions of users taken on the basis of Ihe8e financial statements. Detail$ 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 resports￿lI￿￿ for the of the fmancrdl staternnts is located on the Financial Reporb'ng Cou￿11,5 website al". uklaudrtor5re5 nsibilrt*s. 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 StateM￿ts from irwulaniies, whelher due to fraud Of effor, and dL%cussed these bolween ovr audrt team. We then designed arKI perfomi8d audit procedures resp￿s4¥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, frtU￿n9 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 Compan￿5 Act 2006, Ihe charit￿ kt 2011 together with the Charrties SORP (FRS 102). We assessed the required conyliance with these laws and feWIa￿nS as p•1 of wr audit procedures on the related financkgl statement items. In addil¢on. we Co￿￿3ered 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 ats￿lty 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 conSide￿d 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 CorreSp￿dence. 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 Thranagw￿nt 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 ￿reSpor￿nCe with the Ch*ty 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 $orrÉ material misstslemonts in ￿ financial statements. even ttwh we have Propewly planned and performed our audit th XCOTdance with aud￿ng sI￿dards. For exarnple. tho further wemved non- Complian￿ with and regulai¥)ns IYfegularits"esl is from the events aTrJ transactions reflected in the 14 sL*￿ty0t0p￿ratk1nS¥￿g￿S INDEPENDENT AUDrroR'S REPORT TO THE MEMBERS OF THE SOCIEfY OF OPERATIONS ENGINEERS financial stslements, the less likety the inherenty limited pr￿ed￿leS reqL4red by auditin9 St*ards wguhj Idenlty il. In addition, as vrilh any audrt, t￿e remained a higher risk of non-detect￿ft of irreguianties, as th65e may Fnvolve coNusion. foryery. interttK￿al omsgons. mis￿[￿eSentat￿n$. 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 regu*￿n3. Uso of our roport This ièport is made sofety lo the ¢h¥itabJ• cowy's n*mbers. as a bth, in xcordance with Chaptsr 3 of part 16 of the CO￿￿ante$ 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 cttanta￿e 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. knd￿w 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 0￿ratIonS 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 operath￿S (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 revaluatK*n and dis[￿1 of investfflents 355,783 .43.2S9 Net Incomel(expenditur•) 194,656 (307.0121 Ixher reC￿niSed galnslllosses): Net {lossllincome from Joint ventures (135.558> 366.599 Net movemenl In funds 59.098 $9.587 Roconclllatlon ol funds: Total lunds broughl fwdrd 5.363.715 5.304.128 Tolal funds carried forward 5,422,813 5,363.71S The notes on pages 19 to 30 fcrfm part ol Ihese ac(xunts. The Stalemenl ol Financial Acbvities has been prepared in xcordance ￿￿tti Financial Reporting Standard No 102. All of the above results are daiveil fr(xn conlinuing activil*s. All gains and k)sses re¢ogni$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 $43,837 919,236 1.463.073 266.674 950.5 1.217,264 597.489 660.822 1.258,311 11 Credltors.. afflounts lalllng wlthln one y•ar 12 (934.￿) (913.602) (911.803) I899.004) . Net eurrnnt assèts 427,268 549.471 305.461 359.307. N•t ags•ts 5.422.813 5.363.715 5,201,10S 5.073,651 Funds Unrnstrfcl•d funds General subsidi￿ trading Prorrt lor the year 15 5.201,005 221.808 5.073.551 290.J64 5.142.008 5.014.064 59.098 59,587 Total Funds 5.422.813 5.363,715 5,201.ICfj 5.073.651 Th8 notes on pages 19 to 30 form part ol these accounts. The financial StateTT￿nts on pages 16 10 30 ￿tre aFy0￿￿ by the TTu$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¢￿1*5. 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 1148,899} N•t G4sh providedbylused In) Op*￿n9 a¢tlv 288.264 138.7141 Analysls of ¢Jsh •nql ¢ash •quival•nts Cash in h 1,232.429 919.236 Total cash and cash •qul¥al•nts 1.232,429 919,236 18 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•gisl￿ed charty Ireg. no. 10817531 and cLMnpany {reg. no. 36671471 which is irK(xwYated aTrJ domKiled in thp United Kingthm. The ￿dresS ol thé registered off￿e is 22 Greencoal P*e. 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 f*kl of operatwis engIne￿ing and any other related branches of engwertng, and Ihe dvJernination extharye of Ileas. inforMal￿)n and kI￿￿edge thereof. By means ol Ihe above. ixrt *Itr￿ul P￿Il￿￿￿e to the gener* Ihereof. to promote Ihe safety. eff￿lencY and en¥W(￿Mental wstain*ylity 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 a￿5￿nts in xcordance *rylh the Fina￿la1 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"vi1*s (SOFA) and balance sheet consolKJale the fi.nancial slatements of the S¢xaety. ts subsvjiary IRTE serV￿s Limiled and dcrfmant subS￿￿raneS {note 18) and include the results of the SoCie￿s 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 Stat*￿nt aThJ certain discthures al￿11 ffina￿l instruments. Havry assessed the tharW$ financial posioon. its plans lor Ihe for￿eats19 fuwre ￿ the risks lo which il is exposed. the trustees we 5*tsf*d 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 conside￿d 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 $l*rn•nts for year ended 31 Decern￿r 2021 Aecounllng pollci•s l¢onliThu•d} Crbtlcal a¢¢ounUng Judg•m•nts and k•y ol•stlmatk)n uncertalnty (poll￿) In the applicatron of Ihe charitys ¥￿Al￿r￿j poh'cies, V•fiich are described in notes I, the Trustees are required to make ju&Jemenls. eslHnales. assumptions atM)ul the caryry value5 of assets aThJ Irdtslities that are fvjt readity apparent from olher scAJrces. The e5tim8tes and undertyin9 assumption5 ￿ based on histor￿1 expenence and (ther factors that aré ¢onsid8red to be re￿vant. Aclual re5uIIs may differ from these e51imales. The estimates undwtyiry assumpkns *• miel￿d on an ￿-gOi￿ basis. Revlsions to accountin9 e51Nnates aTe recojnised ift the period in whKh ts esllmale is rewsed if the revision affecls onty Ihal perryJd. or th the pert￿ of the re¥ishM and fulufe penods if th• r8vi$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 mater￿1 adiu5tynenl to their Carr￿ng amoun15 in the next finanual year. In¢omlng R•sources AJI incoming res￿ree5 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 èX￿nd&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 W0￿rI￿n to the Stx*ty's staff lime spent on each expendi￿re 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 c￿neCtiOn 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•pr*￿atIOn has t•en charggd at 2% on of the c05t ol laTrJ and buiklings. this bein9 the PfOPOrtion relatin9 to the t￿ik11ng C￿ty. 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 $ch•m• The Soc*ty operates a Group Pwsona PensN PLan (Group PPP) which 1$ a rnory pur¢ha5e scheme. Pen5￿ft costs are charged to the SOFA. ￿p￿sefiting a constsnt percentage of earnings payabte by the s￿Iety to empbyee's pkns. The Soc*ty 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 COnnect￿Tr to the job relent¢'on scheme has been ￿OgniSed in the peiiod to which the unoertying furtoughed slaff eo$ts relate to. I￿luded in income is an arne￿￿1 of £50,659 in rnspect of the Coronaviru$ Job Retenti￿ Stheme. PublICa￿On$ 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 transL*d ￿¢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 secI￿n 408 of the Companies Act 20C6. the income and ext￿￿j11￿re of the parent undertaking nol presented as part ol these accounts. xlll. Fln8ncl•l Instr￿lan¢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 rneth￿J. Financial assets held al amortbSed cost comprise ¢ash an(1 and ￿ hand, together with tr* and other debtors. Fin•r￿la1 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. lnVestrn￿ts in SU￿diary 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 SOC￿Of 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 wnc*al aC1￿￿Y 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 $lv*n I)e1￿ a￿1 wirted acetsunts *ill bg filed with Ihe Registrar of Companies at Companies House. Profit Ind for th• y•ar •nded 3100¢omb•r 2021 Year to 31.1221 YKr lo 31.12.20 TuTnov•r 354,725 349,846 E¥p•ndi¢urè Cost of sales Administrative expenses (281,042) 16,517) (287,5591 67.166 (288.2601 {6,301) 1294,561) S5,285 Opfjrallng PffjfiV(Losyl Interest receivable 556 PrOf￿(LO$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(P￿ation tax n) Ihe year of £MI12020.. £N*) No further proNision for corptr*Min 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 year*ftd 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¢¢>1￿1nu*dj 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,$32 (179.7241 744.568 1454.404) Fund¥ 221.808 The Gost8 of the Commercial Vehth SIKM LLP man￿m￿l team toialliry £259.599 (2020.. £259.0281 arè retharged tr> IRTE s￿¥￿e$ Limited by the SOE One of the tenanls occupying offi.ce space in the SOE buidiThJ is a firrn ol soh"citors wh￿h w￿ludeS amrrfJ5t ifs partners. director of IR TE Seivus Limited. The contraclual arrangern￿ are at ams length and the tenant pays rent at a commercial r*e. IRTE serv￿ Limited £422,804 a5 Gift AKI to the SOE in respect of Ihè 2020 profit. The direclcKs ot IRTE sery￿eS Limited have ￿reed not lo declare a Gift Akl (h)natith) for 2021. At 31.12.21 Al 31.12.20 Amunl O￿n9 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 It￿e10￿ 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 D0GfrM￿r 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 Y￿1 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 0eprncla￿0 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 Direct￿8 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 Sp￿rt￿nManI ol ¥laff tine. 24 THE SOCIETY OF OPERATIONS ENGINEERS Society of Operations Engineers Notes lo Ihe financial statements for the year ended 31 DeceM￿r 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 00￿Mb￿ 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 V￿u• 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 va￿ation. JP Moryan Asset Mgrs (UK) US Equity Incom8 Hedged £146.596 (5.WA) The So•,$ inVestrn￿ts 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 S￿Iety 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 incl￿185 office rental income frorn tenants. .13. Caplt•l Commltments and Op•ratlng Leases During 2020. the Group entered into 8 Ihree year operating lease ag￿ment to hire Iwo office pholo¢opiers. The quarte￿ payment i￿ludeS 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$or k¢ountlng The Group has a numbei of lease and lieence ￿ ¢mipy 89reemenls tmth lenants ottupying office space on the ground and second Ib)ors of 22 Green￿al Place. These ag￿eM￿ts are open ended wrth not¢e periods of either Ihree (ILY liceftces lo occupyi or six (for leases) month$ fequired foi eilher party to terminalo the agreement. The annual irKome from lh8￿ agreements. sh￿k1 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 D8￿mber 2021 15. R•s•rv•8 Gener41 R•glon•l Tol•l R•s•rv•¥ Year lo 31 D•C•m￿r 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 Re￿sented 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 h￿d 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.$86 93.036 (7.9711 85.06S 5,013,71X) 59.951 5,073.651 Roprnsented by Fixed assets Cash at bank arKI in h•KI Other net ¢urrenl assets 4.714.344 575.757 {301.515 4.988.586 4,714.344 660.822 1301,515) 5.073.651 85.C65 85,065 24 THE SOCIETY OF OPERATIONS ENGINEERS Society of Operations Engineers Notes to tho financial statomonts for the year ended 31 D0￿mber 2021 16. St•ff Yoarto 31.12.21 Year to 31.1220 The I￿al staff emohJments induding taxth beneffts for the ye#r: Gross sa￿￿e$ 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 expendit￿1¢ 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 ern0luff￿ts 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¢x*ety lo any othgr mgmber of the Board except out ol p￿ke1 expense5 (see n¢*e tr). 19. Voluntsers Th8 TTuslee5 are grateful kn thg Inva￿able time supp(xt given by the 200 volunteers who $11 on Ihe Trustee Boafd, IRTE SeThices Board. fNe Profession81 Sector Couneils. the Membership & Professional Standards Committee and R•gic￿81 Committ•as. 20. Uablllty ol Members The Society is a company limited by gu￿1￿0 and Clause 8 of its M8morandum olAssrtiation states that Ihe maxirnum contribution for wl¥ch a member can be Ikqble in the event ol the Soclety's I￿UMIation 1$ £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 Engw*w5 EThJland & Wab85 Engl8rKI & Wabs 419646 395541 1.OlX) 1.000 1.000 1,000 Bolh of these companies are Imited by gu*antee. 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 I￿t1"hIleS at am0￿"Se¢l eost comprising trade and ¢)ther credrtc￿s 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 In￿Me of £62,515 {2020= £57.861) and net gains of £355.78312020.. £43.259)