2022-12-31-accounts - The Society Of Operations Engineers

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INDEX		Page
Council, Staff and Professional Contacts
Report ofthe	Trustees
Independent	Auditor's Report	12
Consolidated	Statement of Financial Activities	16
Consolidated	and Society Balance Sheets	17
Consolidated	Cash Flow Statement	18
Notes to the	Financial Statements

					Total Funds	Total Funds
					2022	2021
				Notes
Income and endowments	from:
Charitable activities					1,855,171	1,843,681
Other trading activities
Commercial trading operations					390,500	354,760
Investments					75,352	62,578
Total income					2,321,023	2,261,019
Expenditure on:
Charitable activities:					2,150,230	2,115,626
Other
Commercial trading operations		(including	taxation)		317,103	287,559
Investment management	fees				18,048	18,961
Total expenditure					2,485,381	2,422,146
Net gains/(losses) on revaluation		and disposal of investments		9	(225,682)	355,783
Net income/(expenditure)					(390,040)	194,656
Other recognised gains/(losses):
Net (loss)/income from joint ventures					302,198	(135,558)
Net movement in funds					(87,842)	59,098
Reconciliation offunds:
Total funds brought forward					5,422,813	5,363,715
Total funds carried forward					5,334,971	5,422,813
The notes on pages 19to 30form		part ofthese accounts.

						Group		Society
					Notes	31.12.22	31.12.21	31.12.22	31.12.21
							6	f	8
Fixed assets
Tangible assets						1,532,172	1,623,174	1,532,172	1,623,174
Intangible assets						90,364	180,728	90,364	180,728
Investments						2,964,910	3,091,643	2,965,010	3,091,743
Investment	in	joint		venture
Share of net			assets			100,000	100,000
						4,687,446	4,995,545	4,587,546	4,895,645
Current assets
Debtors					10	243,627	129,145	445,464	266,674
Cash at bank		and		in hand	11	1,145,578	1,232,429	731,654	950,590
						1,389,205	1,361,574	1,177,118	1,217,264
Creditors: amounts			falling due
within one	year				12	(741,679)	(934,306)	(719,924)	(911,803)
Net current assets						647,526	427,268	457,194	305,461
Net assets						5,334,972	5,422,813	5,044,740	5,201,106
Funds
Unrestricted		funds			15
General						5,044,640	5,201,005	5,132,582	5,142,008
Subsidiary trading						290,332	221,808
Profit for the	year							(87,842)	59,098
Total Funds						5,334,972	5,422,813	5,044,740	5,201,106

Statement ofCash Flows for the year	ended 31 December 2022	ended 31 December 2022	ended 31 December 2022
				Total Funds	Total Funds
				2022	2021
			Notes	6	6
Cash flows from operating activities:
Net cash provided by (used in) operating	activities			(36,777)	288,264
Cash flows from investing activities:
Dividends, interest and rents from investments				75,352	62,578
Purchase of property, plant and equipment				(8,430)	(8,607)
Proceeds from sale ofinvestments				391,056	286,960
Purchase of investments				(490,004)	(297,041)
Investment managers fees				(18,048)	(18,961)
Net cash provided by (used In) investing	activities			(50,074)	24,929
Cash flows from financing activities:
Changein cash and cash equivalents in	the reporting	period		(86,851)	313,193
Cash and cash equivalents at the beginning ofthe reporting			period	1,232,429	919,236
Cash and cash equivalents at the end of	the reporting	period		1,145,578	1,232,429
Reconciliation of net income/(expenditure	to net cash	flow	from operating	activities
Netincomel(expenditure) for the accounting statement offinancial activities	period as per the			(87,842)	59,098
Adjustments for:
Depreciation charges				189,796	193,170
(Gains)/Losses on investments				225,682	(355,783)
Dividends, interest and rents from investments				(75,352)	(62,578)
Investment managers fees				18,048	18,961
Decrease/(Increase) in debtors				(114,482)	414,692
Increasel(decrease) in creditors				(192,627)	20,704
Net cash provided by (used in) operating	activities			(36,777)	288,264
Analysis ofcash and cash equivalents
Cash in hand				1,145,578	1,232,429
Total cash and cash equivalents				1,145,578	1,232,429

Income from charitable	activities	Society
		Year to	Yearto
Activities in furtherance	ofthe charity's objects	31.12.22	31.12.21
		6
Membership		1,302,483	1.303,523
Education and Events		225,709	212,026
Publications		146,001	170,959
Income from regional groups and centres		7,049	7,726
Room rental and sundry	income	173,929	149,447
		1,855,171	1,843,681

Commercial trading operati	Commercial trading operati	ons	ons
The Society has a subsidiary		that has		been trading			since	11 October 1993		and pays	all its	profits to The
Society of Operations	Engineers		by gift	aid. The principal				activity of the Company is to			raise	funds	in order
to promote the aims	ofthe Society.
The Society holding	in the issued		ordinary		share capital ofF100is as follows:
		Country		of		Registration				Proportion		held
Name		Registration					Number		31.12.22			31.12.21
IRTE Services Limited England			and	Wales			2854868			1QQ'/		100%
A summary of IRTE	Services	Limited's		results		are shown		below and	audited	accounts	will be filed		with the
Registrar ofCompanies at Companies				House.
Profit and Loss Account for the			year	ended		31 December 2022			Year to			Yearto
									31.12.22			31.12.21
										6			f
Turnover										389,917			354,725
Expenditure
Cost ofsales										(309,943)		(281,042)
Administrative expenses										(7,160)			(6,517)
										(317,103)		(287,559)
Operating Profit/(Loss)										72,814			67,166
Interest receivable										583			36
Profit/(Loss) on ordinary activities										73,397			67,202
Net (Loss)/Income from Joint		Venture								302,198		(135,558)
(Loss)/Profit before	gift aid	and	taxation							375,595			(68,356)
Amount gifted to the	society									(307,071)
(Loss)/Profit before	taxation									68,524			(68,356)
Taxation										0			0
Retained profit for the year										68 524	~68356

Commercial	(continued)
		As at	As at
IRTE Services Limited		31.12.22	31.12.21
The aggregate ofthe assets, liabilities	and funds was:
Assets		638,117	401,532
Liabilities		(347,785)	(179.724)
Funds		290332	221 808

The costs ofthe Commercial	The costs ofthe Commercial	Vehicle Show	Vehicle Show	LLP management	LLP management	LLP management	team totalling f278,998(2021:	team totalling f278,998(2021:	team totalling f278,998(2021:	team totalling f278,998(2021:
8259,599)are recharged	to IRTE Services Limited				by the	SOE.	One ofthe tenants occupying
office space )n the SOE buiding is a firm of solicitors which						includes amongst		its partners,		a
director of IRTE Services	Limited. The contractual				arrangements		are at arms	length and		the tenant
pays rent at a commercial	rate. The directors			of IRTE Services			Limited agreed	to declare		a Gift
Aid donation ofF307,071	(2021:		Nil).
							At 31.12.22		At	31.12.21
6 t l 0 by/(t )p	t		p y(l l	d dl	lt bllltl	) ~307,796		~602
Joint Venture
IRTE Services Limited has a		33.33%interest		in the	Commercial		Vehicle Show	Limited	Liability
Partnership.
							Year to	30June 2022
Summary financial information			ofthe				Partnership			SOE
CV Show LLP							total			share
							E			8
Profit and Loss Account
Turnover							3,502,620		1,167,540
Operating (Loss)/Profit							906,594			302,198
Interest receivable							0			0
Partners' Asset							300,000			100,000
Balance Sheet							As at 30June		2022
Current Assets							1.008.645			336,215
Current Liabii)ties							(208,726)			(69,575)
Net Assets							799,919			266,640
Represented by:
Partners' Capital Accounts							300,000			100,000
Partners' Current Accounts							499,919			166,640
							799,919			266,640

s to the financial st	s to the financial st	atements for the year	ended 31 Dece	mber 2022
Analysis ofcharitable		expenditure
			Staff	Support	Other Direct	Total
			Costs	Costs	Costs
Year to 31	December	2022		6	6
Services to engineers			444,215	242,393	34,829	721,437
Regional groups and centres			29,066	15,861	102,479	147,406
Publications			40,035	21,846	329,722	391.603
Education			93,981	51,282	17,161	162.424
Marketing,	committees	and exhibitions	202,442	110,466	114,358	427,266
Governance			147.262	80,356	72,476	300,094
			957,001	522,204	671,025	2,150,230
Year to 31	December	2021 (Prior Year)
Services to	engineers		430,807	239,440	28,055	698,302
Regional groups and centres			33.852	18,814	87,316	139,982
Publications			58.196	32,345	350,778	441,319
Education			126,491	70,303	14,588	211,382
Marketing.	committees	and exhibitions	202,638	112,627	113.327	428,592
Governance			105,022	58,371	32,656	196,049
			957,006	531,900	626,720	2,115,626

Analysis ofsupport	costs
		Communications	Postage	Financial
	Premises	and IT	& Printing	Costs	Depreciation	Total
Engineers	48,377	67,583	2,525	35,811	88,098	242,394
Regions	3,165	4,422	165	2,343	5,765	15,860
Publications	4,360	6,091	228	3.228	7,940	21,847
Education	10,235	14,298	534	7,576	18,639	51,282
Marketing/Publicity	22,047	30,799	1,151	16,320	40,149	110.466
Governance	16,037	22,404	837	11,872	29,205	80,355
Total Support	104,221	145,597	5,440	77,150	189,796	522,204
Total Support costs
2021	106,515	162,442	4,805	64,969	193,170	531,901

No	tes to the financial stateme	nts for the	year ended 31 D	ecember 2022
7.	Tangible fixed assets Group and Society		Land and buildings freehold	Computer and other assets	Total
	Cost			f
	Cost at 31 December 2021		2,257,845	141,224	2,399,069
	Additions		0	8,430	8,430
	Fully depreciated and written	off	0	(40,495)	(40,495)
	Cost at 31 December 2022		2,257,845	109,159	2,367,004
	Depreciation
	Balance at 31 December 2021		656,115	119,780	775,895
	Charge for the year		87,983	11,449	99,432
	Fully depreciated and written	off	0	(40,495)	(40,495)
	Balance at 31 December 2022		744,098	90,734	834,832
	Net book value at 31 December 2022		1,513,747	18,425	1,532,172
	Net book value at 31 December 2021		1,601,730	21,444	1,623,174

Intangible fixed assets			Digital
Group and Society			Infrastructure
Cost
Cost at 31 December 2021			449,485
Additions			0
Fully depreciated and written	off		0
Cost at 31 December 2022			449,485
Depreciation
Balance at 31 December 2021			268,757
Charge for the year			90,364
Asset Write downs from previous		years	0
Balance at 31 December 2022			359,121
Net book value at 31 December		2022	90,364
Net book value at 31 December		2021	180,728

9.	Investments				31.12.22		31.12.22	31.12.21		31.12.21
	Group				Cost	Market Value		Cost	Market Value
	Listed stocks and shares				f		8	8		8
	UK Gilts and other fixed interest				393,452		389,075	194,897		209,389
	UK Equities				668,387		1,023,787	736,424		1,190,148
	Alternatives & Hedge Funds				530,696		561,614	434,807		466, 114
	Overseas investments				786,865		990,434	769,149		1,225,992
	Investments total			2379400			2,964,910	2,135,277	3,091,643
								Year to		Yearto
	Movements during the year							31.12.22		31.12.21
	Group							f		8
	Market value as at start of	year						3,091,643	2,725,778
	Purchases during the year							490,004		297,041
	Sales at market value prior	to disposal						(392,504)		(268,901)
	Unrealised (loss)/gain on revaluation							(224,342)		337,369
	Non market transactions							109		356
	Market value as at end ofyear							2 964,910	3,091,643
	Realised gain on disposal of investments							(1,450)		18,058
	Unrealised (loss)/gain on revaluation							(224,341)		337,369
	Gain/(losses) on non market transactions							109		356
	Net gains/(losses) on revaluation		and disposal of		investments			~225,682		355,783
	Investments over 5%
	The following investments	have a	market valuation		ofover 5%of the total investment valuation:
	JP Morgan Asset Mgrs (UK) US Equity Income Hedged 8148,596(5.7%)
	Society
	The Society's investments	include	a further	6100	investment	in	IRTE Services	Limited (see	note	4).
10.	Debtors				Group			Society
				31.12.22			31.12.21	31.12.22	31.12.21
					8		8	E'		6
	Trade debtors (less bad debts)				73,594		177,427	45,809		157,735
	Owed by subsidiary undertaking				0		0	307,796		802
	VAT				0		0	18,234		18,325
	Other debtors				96,407		(138,094)	0		0
	Prepayments and accrued	income			73,626		89,812	73,625		89,812
					243,627		129,145	445,464		266,674

Reserves			General	Regional	Total
			Reserves	Reserves	Reserves
Year to 31 December 2022			6	6	6
Group
Balance at 31 December 2021			5,346,649	76,164	5,422,813
Surplus/(Defiicit)	for the year		(97,757)	9,916	(87,841)
Balance at 31 December 2022			5,248,892	86,080	5,334,972
Represented by
Fixed assets			4,687,446	0	4,687,446
Cash at bank and		in hand	1,059,498	86,080	1,145,578
Other net current		assets	(498,052)	0	(498,052)
			5,248,892	86,080	5,334,972
Society
Balance at 31 December 2021			5,124,942	76,164	5,201,106
Surplus/(Deficit)	for the year		(166,282)	9,916	(156,366)
Balance at 31 December 2022			4,958,660	86,080	5,044,740
Represented by
Fixed assets			4,587,546	0	4,587,546
Cash at bank and		in hand	645,574	86,080	731,654
Other net current		assets	(274,460)	0	(274,460)
			4,958,660	86,080	5,044,740
Year to 31 December 2021
Group
Balance at 31 December 2020			5,278,650	85,065	5,363,715
Surplus/(Deficit)	for the year		67,999	(8,901)	59,098
Balance at 31 December 2021			5.346,649	76,164	5,422,813
Represented by
Fixed assets			4,995,545	0	4,995,545
Cash at bank and		in hand	1,156.265	76,164	1,232,429
Other net current		assets	(805,161)	0	(805,161)
			5,346,649	76,164	5,422,813
Society
Balance at 31 December 2020			4,988,586	85,065	5,073,651
Surplus/(Deficit)	for the year		136,356	(8,901)	127,455
Balance at 31 December 2021			5,124,942	76,164	5,201,106
Represented by
Fixed assets			4,895,645	0	4,895,645
Cash at bank and		in hand	874,426	76,164	950,590
Other net current		assets	(645,129)	0	(645,129)
			5,124,942	76,164	5,201,106


Staff						Year to	Year to
						31.12.22	31.12.21
						E	E
The total staff		emoluments	including	taxable benefits for the year:
Gross salaries		permanent	and temporary		staff	793,279	804,285
Employer's	Nl					86,806	87,030
Employer's	pension					45,194	56,045
Life assurance		cover				4,334	3,930
						929,613	951,290


Redundancy and	termination	payments	totalling E30,623 (2021;F1,614)were paid during		the year.
				2022		2021
Key Management	(defined as the senior		management team):
Total emoluments	including	taxable benefits for the year		494,136		552,687

During the year, payments	During the year, payments	totalling E300	totalling E300	(2021 E1,800) were paid to a Trustee as fees in connection	(2021 E1,800) were paid to a Trustee as fees in connection	(2021 E1,800) were paid to a Trustee as fees in connection	(2021 E1,800) were paid to a Trustee as fees in connection	with
workshop	inspections on behalf		IRTE Services Ltd		No other payments	were made except for out of		pocket
expenses	(see note 6c).
						2022	2021
Average	number ofemployees		analysed	by function	was.
Charitable	expenditure					17		18
Management, administration		and support				2		2
CV Show	management team					4		4
						23		24

Number of staff whose emoluments
taxable benefits from the Society exceeded E60,000:	2022	2021
E60,001 - E70,000	1
E70,001 - F80,000
E80,001 - E90,000
E90,001 - E100,000
E100,000 - E110,000
E110,000 - F120,000