OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2021-12-31-accounts

Annual Report of the Council and Financial Statements for the year ended 31 December 2021

Registered charity number 1097899

Energy Institute Report of the Council and Financial Statements 2021

Council, Officers and Committee Chairs

Committees Senior Management

Council and Officers

President NC Steve Holliday FREng FEI Vice-Presidents NC Juliet Davenport OBE HonFEI NC Greg Jackson FEI NC The Rt. Hon Prof Charles Hendry CBE HonFEI

Chief Executive

Dr Nick Wayth CEng FEI FIMechE

Good Practice Director Martin Maeso CEnv MEI

Development Director Marta Kozlowska MEI

External Affairs Director Nick Turton FEI

Vice-President & Honorary Secretary

NC, HR

Dame Vivienne Cox DBE FEI

Finance Director

Honorary Treasurer Simardeep Soor ACA FEI

FAC

Ava Longhurst DChA

Main Committee Chairs

Young Member Representative

Sinead Obeng AMEI

NC, YPC

Other Members of Council

Prof John Currie CEng FEI PAC Prof Robert Gross FEI EAP Andrew Hadland AMEI Aleida Rios CEng FEI STAC Emily Spearman CEng MEI PAC Dr Joanne Wade OBE FEI

Human Resources Committee (HR) Dame Vivienne Cox DBE FEI

Finance and Audit Committee (FAC) Simardeep Soor ACA FEI

Professional Affairs Committee (PAC) Emily Spearman CEng FEI

Scientific and Technical Advisory Committee (STAC) Aleida Rios CEng FEI

Energy Advisory Panel (EAP) Prof Robert Gross FEI

Nominations Committee (NC) President

Young Professionals Council (YPC) Sinead Obeng AMEI

Disciplinary Committee

To be appointed by Council as required

Appeals Committee

To be appointed by Council as required

Other information

Registered Office

61 New Cavendish Street, London W1G 7AR, UK t: +44 (0) 20 7467 7100 e: info@energyinst.org www.energyinst.org.

Registered charity number 1097899

Incorporated by Royal Charter 1 July 2003

Licensed by the Engineering Council (UK) to register engineers and technicians

Licensed by the Society for the Environment to register Chartered Environmentalists

Bankers

Investment Managers

Sarasin & Partners LLP Juxon House, 100 St Pauls Churchyard, London EC4M 8BU

Solicitors

Hempsons 40 Villiers Street, London WC2 6NJ

Auditor

Haysmacintyre LLP 10 Queen Street Place, London EC4R 1AG

Pensions Adviser

Morgans Ltd 41 Gay Street, Bath, BA1 2NT

Lloyds TSB Bank Plc, 324 Regent Street, London W1B 3BL

1

Energy Institute Report of the Council and Financial Statements 2021

Council Report for the year ended 31 December 2021

Council presents its Report and the Financial Statements for the year ended 31 December 2021.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Reference and administrative details

Legal and administrative information is set out on page 1 and forms part of this report.

Establishment and legal structure

The Energy Institute (EI) was incorporated by Royal Charter on 1 July 2003 and is a registered charity, number 1097899. The EI is governed in accordance with the Royal Charter and Byelaws. The Financial Statements have been prepared in accordance with the req

Charities SORP second edition, effective 1st January 2019), and other relevant statutory

requirements.

Governance

The Council of the EI is its governing body and consists of elected and appointed members of the EI.

The Council of the EI has the following membership:

The Chief Executive attends meetings of Council in a non-voting capacity. Members are elected or appointed to the Council and remain so until their term of office, determined by Council regulations, concludes. The members of Council at the date of this report are shown on page 1. All served throughout the year with the exceptions of Greg Jackson FEI and The Rt. Hon Prof Charles Hendry CBE HonFEI who were appointed to Council at the AGM on 23 June 2021. Malcolm Brinded CBE FREng FEI, Dr Bernard Bulkin OBE FEI, Michael Parker CBE FEI, Dr Ibilola Amao FEI, Dr Waddah S. ng MEI, and Paul R. Smith FEI all retired from Council at the AGM on 23 June 2021.

Gender diversity is now 54%:46% female, male respectively. Ethnic diversity is now 23% (2020: 27%) of board membership.

Members of the Council are also the trustees in accordance with charity law and provide strategic direction for the Charity. Trustees are appointed and elected via various routes and all new members undergo a comprehensive induction and where appropriate external trustee training is also provided.

The Council has the power (under Bye-law 45) to establish, regulate and dissolve committees and delegate its powers and functions (other than the power to make regulations or its non-delegable powers as a body of trustees) to such committees. Three mandatory committees operate and report quarterly to Council, namely Finance and Audit, Human Resources and Professional Affairs. The Scientific and Technical Advisory Committee also reports to Council and is directly represented via the co-option of its Chair to Council. Similarly, the Energy Advisory Panel reports to Council and is chaired by a member of Council.

EI is managed on a day-to-day basis by the Chief Executive assisted by staff of appropriate qualification and experience. The Council monitors performance on a quarterly basis.

responsible manner for their contribution to the success of the EI and provided with appropriate incentives to encourage enhanced performance. It is the intention of the EI to reward staff in a way which ensures it attracts and retains the right skills to have the greatest impact in delivering its charitable objectives. In setting an appropriate salary structure the EI takes account of information on movements in prices and salaries in central London; salaries in the charity and

The EI consists of individual members and company members, having such qualifications and rights as are determined by the Bye-laws in force.

Regional communities and subsidiaries

The EI provides grants and administrative support and guidance to a number of regional communities that operate autonomously both within the UK and overseas. The officers of these branches are appointed by the regional community memberships of the EI. The EI also owns 3 subsidiary companies in Hong Kong, Nigeria and Singapore. The EI also has a wholly owned UK subsidiary company, limited by shares. EI Services Limited was incorporated on 17 May 2017. The

2

Energy Institute Report of the Council and Financial Statements 2021

Major risks

Council has identified and reviewed the major risks to which the EI is exposed. Council is satisfied that appropriate systems have been implemented to mitigate those risks.

In relation to 2022 planned activities, Council has identified the following priority risks:

The ongoing risk around revenue control and cashflow due to the effects of the pandemic continue to be a key risk. The senior leadership team closely monitored reduced revenue streams from physical activities, such as events and training, to ensure costs were being reduced in line with the forecasted drop in income. For 2022, the implementation of the new business strategy will ensure the EI aligns itself with the changing energy landscape with an increased focus on accelerating a just energy transition. A series of forecasting scenarios to 2030 were produced to assess the level of investment that could be undertaken to achieve the strategy.

and the associated investment plan. Council also reviewed the risks identified ability to deliver growth, organisational effectiveness, robust financial monitoring, and ensuring return on investment. Council also recognised the risk of standing still and not executing the 2030 strategy could be more damaging to -term viability, than the risks associated with its execution.

Growing and engaging membership is a key aspect of the 2030 strategy and the way we engage with our members and wider society will be crucial to our success. A digital transformation agenda is a key enabler of delivering stronger global engagement. Ensuring this is delivered effectively and providing our members with a quality user experience is a key risk which will be carefully managed.

The changes we make to become more globally accessible with an accelerated digital delivery, due to the pandemic, To reduce the risk of any loss of engagement, the EI will need to ensure its digital delivery is as valued as the traditional engagement methods, providing a system-wide view together with supporting a net zero integrated energy system.

The strong organisational culture and therefore the risk of loss of key people, outdated policies, or ineffective organisation structure for people to operate is increased. With a reduced Council structure to improve its strategic focus and a new Head of HR in 2021 to introduce strategic HR capability, an improved mitigation of these risks is now in place.

PUBLIC BENEFIT

Members of Council recognise their responsibilities towards public benefit under the requirements of the Charities Act 2011 and have had regard to the guidance from the Charity Commission on public benefit. This requirement is reflected in the Objects of the EI, set out below. The benefits are clear and identifiable. They are available to a wide section of the public who are interested in energy and its implications for society, whilst the broader public benefits derive from the development of safe, secure and a more sustainable supply and use of energy in a way that enables affordable development. These benefits are set out within the appropriate sections of this report.

OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES

The objects of the EI are the promotion for the public benefit of the science of energy and fuels in all applications and uses, including:

In addition to its Royal Charter objects, which define the nature of its activities, the EI Council sets a strategy which aims to direct how it works towards achieving members and society by accelerating a just global energy transition to net zero.

The EI achieves this through:

3

Energy Institute Report of the Council and Financial Statements 2021

The Council approves an annual business plan and budget which supports the longer-term strategy and ensures that the organisational resources required are adequate to meet its needs.

The EI does not participate in any fundraising activities.

Principal activities for the year, achievements and performance

EI President Steve

of our sector which has continued to keep supplies of fuel and power flowing to our economies and day-to-day lives

The EI has continued to adapt to these circumstances with pastoral, operational and professional support for members and other customers, alongside sustaining business-as-usual services and making significant progress on new projects in particular focused on the response to the climate crisis.

Highlights of the year included:

The year also saw the appointment of two new Vice Presidents to Council - former UK Energy Minister Charles Hendry and Octopus Energy CEO Greg Jackson and the departure of eight trustees with a combined total of fifty years combined service. Longstanding CEO Louise Kingham CBE FEI also departed for a prominent new role in industry, and was replaced by Dr Ni

4

Energy Institute Report of the Council and Financial Statements 2021

Investment powers, policy and performance

The powers of Council to manage investments are specified in Bye-law 44. The Council has delegated the management of the investment portfolio to its Finance and Audit Committee.

Its policies are:

The performance of the Energy Institute portfolio for the calendar year 2021, net of management fees, was 10.2% against a benchmark of 13.7% and compared with the ARC steady growth charity index of 12.3%. The Committee regularly reviews the performance of the investment and deposit portfolio and reports to Council on a quarterly basis. Investments are under management by Sarasin & Partners LLP.

FINANCIAL REVIEW

The financial results for the EI itself are set out in the Statement of Financial Activities on page 9.

7,178,000 (2020: £7,750,000) and expenditure of

£7,058,000 (2020: £7,284,000). Unrestricted income in the year reduced by £926,000 to £5,325,000 (2020: £6,251,000) due to the pandemic having a significant impact on our knowledge sharing activities. With careful planning, cost efficiencies were successfully implemented to reduce the impact on operational reserves.

Unrestricted general reserves, excluding gain on investment, produced an operating surplus of £11,000 (2020: £275,000). The net gain on investments of £237,000 (2020: £195,000) resulted in net income of £248,000 (2020: £470,000). After taking account of movements on restricted reserves and the designated reserves, this resulted in total net income of £391,000 (2020: £688,000). Actuarial gains of £417,000 (2020: losses £1,047,000) on the pension scheme contributed to a net gain in funds of £808,000 (2020: net deficit £359,000) for the year.

At the end of 2021, the EI group had net assets of £10,617,000 (2020: £9,809,000), analysed in the balance sheet set out on page 11. The primary asset is the long leasehold of the premises at 61 New Cavendish Street.

Listed investments plus cash and bank deposits totalled £5,339,000 (2020: £5,441,000) at the end of 2021, sufficient to There was an decrease of £354,000 (2020: increase £1,041,000) in the estimated deficit on the pension plan from 2021, this is reflected in the balance sheet under the Financial Reporting Standard 102 as a pension plan deficit of £206,000 (2019: deficit £560,000).

Operational reserves

21 totalled £1,814,000 (2020: £1,526,000),

representing total unrestricted funds of £7,807,000 (2020: £7,220,000) less those held in tangible fixed assets of £6,088,000 (2020: £6,146,000), those designated for particular projects or purposes of £111,000 (2020: £108,000) and excluding the pension reserve deficit of £206,000 (2020: deficit £560,000).

The Council has reviewed the level of free reserves required by the Institute and considered the following:

Based on the factors noted above, the Council has set a policy level of free reserves of between £500,000 and £750,000 which it comfortably exceeds to enable investment for growth.

The current levels and explanations of the purposes for designated funds are described in note 13 to the accounts.

FUTURE PLANS

With the revised EI Council membership and arrival of a new CEO, considerable work has been undertaken on refreshing . While remaining agile to the changing needs of the sector, including the crisis emerging in international energy markets, the new strategy sets its sights firmly on a clearer statement of purpose - and ambition for growth across three strategic themes. The operational plan for 2022 reflects the first phase of this, stabilising and building the foundations for growth.

Activities for 2022 include:

Attracting, developing and equipping the diverse future energy workforce

5

Energy Institute Report of the Council and Financial Statements 2021

Consolidate existing training offer with net zero programme and scope out EI Academy, aimed at being a leading global net zero training platform

Informing energy decision making through convening expertise and advice

Publish 2022 Energy Barometer focused on decarbonisation in hard-to-abate energy-intensive industries

Develop further Essentials Guides, including on Energy and Carbon Management

Deliver Energy Fundamentals course for BEIS, Scottish Government and continue to expand offering to policy makers across central, regional and local governments

Launch and grow reach of third season of EI podcast, Energy In Conversation

Enabling industry to make energy lower carbon, safer, and more efficient

Deliver and promote the first outputs from the hydrogen and CCUS projects

Expand Toolbox user base in diverse sectors and geographies

Council prepares financial statements for each financial period, which give a true and fair view of the state of affairs of the EI and of the surplus or deficit of the EI for that period. In preparing those financial statements, Council is required to:

Council is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the EI and to enable it to ensure that the financial statements comply with the Royal Charter and the Charities Acts. Council is also responsible for safeguarding the assets of the EI and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

A resolution proposing that Haysmacintyre LLP be re-appointed as auditor to the EI will be proposed at the Annual General Meeting.

Steve Holliday FREng FEI President

Simardeep Soor ACA FEI Honorary Treasurer

28 March 2022

6

Energy Institute Report of the Council and Financial Statements 2021

INSTITUTE

Opinion

We have audited the financial statements of the Energy Institute for the year ended 31 December 2021, which comprise the Consolidated and Charity Statements of Financial Activities, the Consolidated and Charity Balance Sheet, the Consolidated and Charity Cash Flow Statements and the related notes. These financial statements have been prepared under the accounting policies set out therein. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

ecember 2021 and of the

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial

accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Report of the Council. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of trustees for the financial statements

7

Energy Institute Report of the Council and Financial Statements 2021

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the parent charity and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to management override, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.

of the financial statements (including

the risk of override of controls), and determined that the principal risks were related to management override. Audit procedures performed by the engagement team included:

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting www.frc.org.uk/auditorsresponsibilities. This

Use of our report

and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the c t fullest extent permitted by law, we do not accept or assume responsibility to anyon body, for our audit work, for this report, or for the opinions we have formed.

Haysmacintyre LLP Statutory Auditor

10 Queen Street Place, London EC4R 1AG

Date:

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

8

Energy Institute Report of the Council and Financial Statements 2021

Consolidated Statement of Financial Activities for the year ended 31 December 2021 (Including consolidated income and expenditure)

----- Start of picture text -----
2021 2021 2021 2021 2020
Unrestricted
General Designated Restricted Total Total
Note reserves reserve reserves reserves reserves
Income:
Income from charitable activities:
- -
1,733 1,733 1,765
----- End of picture text -----

Charitable activities
Other trading activities
3
Government grants
Investments
Total income
Expenditure:
Charitable activities
Other trading activities
Total expenditure
4
Net gains on investments
9
Net Income/(expenditure)
Transfers between funds
Other recognised gains/(losses):
Actuarial gains/(losses) on Pension Plan
12
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
14		 3,072 227 1,612 4,911 5,222
368 - - 368 599
5,173 227 1,612 7,012 7,586
56 - - 56 46
96 - 14 110 118
5,325 227 1,626 7,178 7,750
5,168 305 1,439 6,912 7,012
146 - - 146 272
5,314 305 1,439 7,058 7,284
237 - 34 271 222
248 (78) 221 391 688
(23) 23 - - -
417 - - 417 (1,047)
642 (55) 221 808 (359)
966 6,254 2,589 9,809 10,168
1,608 6,199 2,810 10,617 9,809

All income and expenditure derive from continuing activities and there are no gains and losses other than those passing through the Statement of Financial Activities.

9

Energy Institute Report of the Council and Financial Statements 2021

Charity Statement of Financial Activities for the year ended 31 December 2021 (Including income and expenditure account)

----- Start of picture text -----
2021 2021 2021 2021 2020
Unrestricted
General Designated Restricted Total Total
Note reserves reserve reserves reserves reserves
Income:
Income from charitable activities:
- -
1,722 1,722 1,759
----- End of picture text -----

Charitable activities
3
Government grants
Donations
Investments
Total income
Expenditure:
Charitable activities
Total expenditure
4
Net gains on investments
9
Net income/(expenditure)
Transfers between funds
Other recognised gains/(losses):
Actuarial gains/(losses) on Pension Plan
12
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
14		 2,952
227
1,612
4,791
5,140
4,674
227
1,612
6,513
6,899
56
-
-
56
46
222
-
-
222
327
96
-
14
110
118
5,048
227
1,626
6,901
7,390
5,050
305
1,439
6,794
6,915
5,050
305
1,439
6,794
6,915
237
-
34
271
222
235
(78)
221
378
697
(23)
23
-
-
-
417
-
-
417
(1,047)
629
(55)
221
795
(350)
930
6,254
2,589
9,773
10,123
1,559
6,199
2,810
10,568
9,773

All income and expenditure derive from continuing activities and there are no gains and losses other than those passing through the Statement of Financial Activities.

10

Energy Institute Report of the Council and Financial Statements 2021

Consolidated and Charity Balance Sheet as at 31 December 2021

----- Start of picture text -----
Group Group Charity Charity
2021 2020 2021 2020
Note
Fixed assets:
Tangible assets 8 6,088 6,146 6,088 6,146
Investments 9 4,052 3,781 4,052 3,781
Total fixed assets 10,140 9,927 10,140 9,927
Current assets:
Debtors 10 972 1,651 952 1,898
Short term deposits 623 1,022 623 772
Bank and cash 664 638 468 414
Total current assets 2,259 3,311 2,043 3,084
Liabilities:
Amounts falling due within one year 11 (1,576) (2,869) (1,409) (2,678)
683 442 634 406
Net current assets
Total assets less current liabilities 10,823 10,369 10,774 10,333
Net assets excluding pension liability 10,823 10,369 10,774 10,333
Pension Scheme deficit 12 (206) (560) (206) (560)
10,617 9,809 10,568 9,773
Total net assets
The funds of the charity:
Unrestricted reserves 13
General reserve 1,814 1,526 1,765 1,490
Pension reserve (206) (560) (206) (560)
Designated reserves 6,199 6,254 6,199 6,254
7,807 7,220 7,758 7,184
Restricted reserves 13 2,810 2,589 2,810 2,589
10,617 9,809 10,568 9,773
Total group and charity funds
----- End of picture text -----

These financial statements were approved and authorised for issue by Council on 28 March 2022 and signed on its behalf by:

Steve Holliday FREng FEI President

Simardeep Soor ACA FEI Honorary Treasurer

11

Energy Institute Report of the Council and Financial Statements 2021

Cash flow Statement for the year ended 31 December 2021 Cash flow Statement for the year ended 31 December 2021 Group Group Charity Charity
2021 2020 2021 2020
Cash flows from operating activities:
Net Income for the reporting period (as per the statement of financial
activities)		 391 688 378 697
Gains on investments (271) (222) (271) (222)
Investment income (110) (118) (110) (118)
Depreciation of tangible fixed assets 82 97 82 97
Interest expense - 5 - 5
Decrease/(Increase) in debtors 679 (406) 946 (778)
(Decrease)/Increase in creditors (1,293) 730 (1,269) 833
Non-cash operating movement in pension scheme asset 63 (6) 63 (6)
Net cash used in operating activities (459) 768 (181) 508
Cash flows from investing activities:
Investment income 110 118 110 118
Proceeds from sales of investments - 250 - 250
Interest expense - (5) - (5)
Payments to acquire tangible fixed assets (24) (26) (24) (26)
Net cash provided by investing activities 86 337 86 337
Cash flows from financing activities:
Repayments of borrowing - (147) - (147)
Net cash used in financing activities - (147) - (147)
Change in cash and cash equivalents in the year (373) 958 (95) 698
Cash and cash equivalents at the beginning of the year 1,660 702 1,186 488
Cash and cash equivalents at the end of the year 1,287 1,660 1,091 1,186
Analysis of changes in net debt of Group 1 January 2021 Cash flow 31 December 2021
Cash at bank and in hand 638 26 664
Short term deposits 1,022 (399) 623
Total cash and cash equivalents 1,660 (373) 1,287
Analysis of changes in net debt of Charity 1 January 2021 Cash flow 31 December 2021
Cash at bank and in hand 414 54 468
Short term deposits 772 (149) 623
Total cash and cash equivalents 1,186 (95) 1,091

12

Energy Institute Report of the Council and Financial Statements 2021

Notes on the financial statements

Note 1 - Accounting Policies

The Energy Institute is a body incorporated by Royal Charter and is a charity registered with the Charity Commission (charity registration no. 1097899). The registered office address is 61 New Cavendish Street, London W1G 7AR.

b) Basis of preparation

The financial statements are prepared under the historical cost convention as modified to include the revaluation of investments at market value, and in accordance the Statement of Recommended Practice for Charities (Charities SORP second edition, effective 1st January 2019) and applicable accounting standards (FRS 102).

The Energy Institute meets the definition of a public benefit entity under FRS 102.

c) Basis of consolidation

The consolidated financial statements of the Energy Institute incorporate the accounts of the charity and its subsidiary undertakings. The results of the subsidiary undertakings, as shown in note 7, are consolidated on a line by line basis within the consolidated Statement of Financial Activities (SOFA).

The Energy Institute has one associated undertaking in Petroleum Geology Conferences Limited (PGC). The principal activity of the company is to hold periodic petroleum geology conferences in accordance with a joint venture agreement.

In the parent charity accounts the investment in associates is recognised at cost less provision for impairment. FRS 102 requires associated undertakings to be accounted for under the equity method of accounting where the charity’s share of the associate’s net income or expenditure is recognised in the SOFA and netted off against the carrying amount of the investment in the consolidated accounts. As all profits arising from the activities of PGC are subject to gift aid donations to its shareholders, and reflected within income of the Energy Institute, any variances in the interest in associates under equity accounting is immaterial to the financial statements and therefore the investment is held at cost in both the charity and consolidated financial statements.

d) Going concern

Despite the impact the global pandemic has had on the sector and wider public, the leadership and trustees have worked on a new strategy that adapts to a changing energy landscape with robust financial and operational strategies and plans to ensure that the charity is able to meet the challenges ahead. Despite the significant impact these challenges are having on society as a whole, the estimated financial impact on the Institute is considered manageable when taking into account the profile of revenues and available liquid reserves. Accordingly, the trustees continue to be confident that the Institute remains a going concern and the accounts have been prepared on that basis.

e) Income

All income is recognised on an accruals basis and excludes Value Added Tax.

The Energy Institute generally raises invoices and sends renewals to individuals for the following financial year’s membership fees and other agreed projects before the balance sheet date.

Government grants relate to the Coronavirus Job Retention Scheme (CJRS) income which is recognised as receivable in line with the period that the relevant expense has been incurred.

f) Expenditure

Expenditure is included on an accruals basis and excludes the related Value Added Tax (except where the Value Added Tax is not recoverable). Resources expended are analysed according to departmental costs incurred.

Support costs consist of central management, property, administration and governance costs. Governance costs consist of those costs associated with meeting the statutory and compliance requirements of the charity. Support costs are allocated to expenditure on charitable activities in accordance with the proportion of staff involved in each direct activity.

13

Energy Institute Report of the Council and Financial Statements 2021

Notes on the financial statements

Note 1 - Accounting Policies (continued)

g) Tangible fixed assets and depreciation

Fixed assets are stated at cost less depreciation. Depreciation is provided on all assets on the straight line method at the following rates calculated to write off over their remaining lives:

Leasehold improvements 1.0% per annum Plant and equipment 5.0% per annum Fixtures and fittings 20.0% per annum ICT assets 33.3% per annum

h) Investments

Listed investments are stated at market value. Gains and losses arising from changes in market values are included within the SOFA. Unlisted investments are stated at cost less provision for impairment .

i) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

j) Financial instruments

The Energy Institute only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments, including trade and other receivables and payables and bank loans are initially recognised at transaction value and subsequently measured at their settlement value.

Debt instruments are subsequently measured at amortised cost, using the effective interest method.

k) Creditors and provisions

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

l) Pensions

The Energy Institute operates a defined benefit pension plan which is closed to new entrants. The scheme is funded with the assets held separately from the Energy Institute in separate trustee administered funds.

The asset or liability recognised in the balance sheet is the net of the present value of the pension scheme liabilities and the fair value of the assets held in the scheme. The current service cost of the scheme and net interest costs are charged to staff costs in the SOFA. Actuarial gains and losses are recognised within other recognised gains and losses in the SOFA. The detailed assumptions relating to the valuations of the pension scheme assets and liabilities and movements in the year are included in Note 13.

The Energy Institute also operates stakeholder pension plans for employees for which employer contributions are expensed in the SOFA as payable. On 1 January 2020, the Energy Institute entered into a salary sacrifice scheme agreement with the stakeholder pension scheme members.

m) Foreign currency translation

The Energy Institute’s functional and presentation currency is pound sterling. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are recognised in the SOFA.

The trading results of overseas subsidiaries are translated into sterling at the average exchange rate for the year. The assets and liabilities of overseas undertakings are translated at the exchange rates ruling at the balance sheet date. Exchange adjustments arising from the retranslation of opening net investments and from the translation of the results at average rates are recognised in the SOFA.

14

Energy Institute Report of the Council and Financial Statements 2021

Notes on the financial statements

Note 1 - Accounting Policies (continued)

n) Fund accounting

Funds held by the Energy Institute are categorised as:

Unrestricted general – funds which can be used in accordance with the charitable objects of the Institute at the discretion of Council.

Unrestricted designated – funds which have been set aside by the Council for specific purposes.

Restricted – funds that can only be used for particular restricted purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Note 2 – Critical accounting judgements and estimates

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the Energy Institute’s accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Key areas subject to judgement and estimation are as follows:

Defined benefit pension scheme liabilities

The Energy Institute has obligations to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet as advised by an independent actuarial adviser. The assumptions reflect historical experience and current trends.

Note 3 - Incoming resources from charitable and other trading activities

Membership subscriptions
Knowledge sharing activities
Skills development activities
Good practice activities
Other		 Group
Group
Charity
Charity
2021
2020
2021
2020
£’000
£’000
£’000
£’000
1,735
1,765
1,724
1,759
986
1,933
618
1,334
871
683
750
601
3,400
3,205
3,400
3,205
20
-
21
-
7,012
7,586
6,513
6,899

Note 4 – 2021 Expenditure on charitable and other trading activities

Good practice activities
Knowledge sharing activities
Skills development activities
External affairs
Charitable activities
Charitable and other trading expenditure in subsidiaries
Group total		 Direct costs
Staff
Direct costs
Other
Support
costs
2021 Total
£’000
£’000
£’000
£’000
1,236
1,841
423
3,500
836
221
563
1,620
521
443
282
1,246
239
48
141
428
2,832
2,553
1,409
6,794
-
264
-
264
2,832
2,817
1,409
7,058

15

Energy Institute Report of the Council and Financial Statements 2021

Notes on the financial statements

Good practice activities
Knowledge sharing activities
Skills development activities
External affairs
Charitable activities excluding exceptional cost
Charitable and other trading expenditure in subsidiaries
Group total		 Direct costs
Staff
Direct costs
Other
Support
costs
2020 Total
£’000
£’000
£’000
£’000
1,187
1,479
394
3,060
957
405
525
1,887
609
656
263
1,528
258
51
131
440
3,011
2,591
1,313
6,915
-
369
-
369
3,011
2,960
1,313
7,284

Note 5 – Analysis of support costs

Support staff costs
Building facilities and services
Management & Human Resources
Finance
Information Technology
Included in support costs are governance costs relating to:
Auditor’s remuneration
Actuarial
Legal and consultancy
Salaries
Other		 2021
£’000
2020
£’000
943
839
197
194
71
78
59
58
139
144
1,409
1,313
22
20
3
3
23
17
5
5
-
1
53
46

Note 6 – Staff costs

ote 6 – Staff costs
Salaries
Social security
Stakeholder pension
Defined benefit pension service cost
Redundancy
Temporary/sub-contract staff
Other staff related costs		 2021
£’000
2020
£’000
2,725
2,884
301
291
239
240
162
91
-
30
278
261
70
52
3,775
3,849

16

Energy Institute Report of the Council and Financial Statements 2021

Notes on the financial statements

The average number of employees was 77 (2020: 75).

The following numbers of staff have salaries above £60,000: 2021 2020
Between £60,000‑£70,000 3 4
Between £70,001‑£80,000 1 2
Between £80,001‑£90,000 2 1
Between £90,001‑£100,000 1 1
Between £130,001‑£140,000 - 1
Between £160,001‑£170,000 1 -

Pension contributions paid in respect of these individuals totalled £102,000 (2020: £159,000).

Trustees’ reimbursed expenses

Due to the nature of the Energy Institute, most Trustees will be associated with organisations which may have a financial relationship with the Energy Institute. Opportunity is given for disclosure of any financial or other interest prior to any Council discussion. Trustees are allowed to be paid according to the Royal Charter for services provided to the Charity. During the year no trustees were remunerated (2020: no trustees). Trustees’ expenses for travel and accommodation reimbursed during the year amounted to £885 (2020: £1,529) in respect of 3 trustees.

Remuneration of key management personnel

The key management personnel of the Energy Institute comprise 5 senior directors. Total remuneration, employer’s national insurance contributions and pensions for these key management personnel were £633,000 (2020: £620,000).

Note 7 – Subsidiary undertakings

Energy Institute has 3 trading international branch subsidiaries and 1 UK trading subsidiary, which are controlled by the Charity. Energy Institute Hong Kong (Branch) Ltd is incorporated in Hong Kong under the Companies Ordinance and limited by shares wholly owned by the EI. Energy Institute Nigeria is a Company Limited by Guarantee with EI as the sole member. Energy Institute Nigeria is incorporated in Nigeria and registered with the Corporate Affairs Commission. Energy Institute (EI) Singapore Pte Ltd, is incorporated in Singapore as a private limited company and wholly owned by the EI. EI Services Limited was incorporated on 17 May 2017, a wholly owned UK subsidiary company of Energy Institute, limited by shares.

Trading subsidiaries’ results
Turnover
Cost of sales
Gross profit
Admin/other costs
Trading profit/(loss)
Grants paid from EI
Net income/ (outgoings)
Amount payable by qualifying
charitable donation to Energy Institute
Retained profit brought forward
Retained profit carried forward and net
assets		 EI Services
Ltd
Energy
Institute
Hong Kong
(branch)
Ltd
Energy
Institute
Nigeria
Ltd
Energy
Institute
Singapore
Ltd
Total
2021
Total
2020
£’000
£’000
£’000
£’000
£’000
£’000
368
55
70
-
493
686
(141)
(42)
(49)
-
(232)
(342)
227
13
21
-
261
344
(5)
(7)
(30)
(2)
(44)
(44)
222
6
(9)
(2)
217
300
-
5
2
7
1
222
11
(7)
(2)
224
301
(222)
-
-
-
(222)
(327)
-
20
11
6
37
63
-
31
4
4
39
37

17

Energy Institute Report of the Council and Financial Statements 2021

Notes on the financial statements

Note 8 - Tangible fixed assets (Group and Charity)

a) Cost
Cost at 1 January 2021
Additions
Cost at 31 December 2021
b) Depreciation
Depreciation at 1 January 2020
Charge for the year
Depreciation at 31 December 2020
Net book value at 31 December 2021
Net book value at 31 December 2020		 Leasehold
premises
Leasehold
improvements
Plant and
equipment
ICT, Fixtures
and fittings
Total
£’000
£’000
£’000
£’000
£’000
4,250
2,220
273
549
7,292
-
-
-
24
24
4,250
2,220
273
573
7,316
462
99
120
465
1,146
-
23
13
46
82
462
122
133
511
1,228
3,788
2,098
140
62
6,088
3,788
2,121
153
84
6,146

The lease on the premises at 61 New Cavendish Street has 937 years to run until its expiry. On 17 September 2002, Jeremy James & Company, estate agents, provided a valuation report on an open market value basis on the premises at 61 New Cavendish Street and valued the premises at £4,250,000. This was the effective cost of the lease when it was transferred to the Energy Institute on 1 July 2003.

Capital commitments

There are no capital commitments at 31 December 2021 (2020: None).

Note 9 – Investments (Group and Charity)

Alpha Common Investment Fund
Market values
1 January 2021
Net gain on revaluation
31 December 2021
Historical cost
1 January 2021
31 December 2021		 £
£’000
3,781
271
4,052
2,450
2,450

Council are aware of the current volatility in the investment markets. Council are not expecting to require the disposal of any of the investment portfolio in the foreseeable future.

Unlisted investments

The Energy Institute had a one third equity interest in Petroleum Geology Conferences Limited, during 2021 the company was dissolved, the share capital was returned to the EI. The EI also has 100 ordinary shares of £1, in EI services Ltd.

18

Energy Institute Report of the Council and Financial Statements 2021

Notes on the financial statements

Note 10 – Debtors

ote 10 – Debtors
Trade debtors
Prepayments and accrued income
Other debtors		 Group
Group
Charity
Charity
2021
2020
2021
2020
£’000
£’000
£’000
£’000
718
1,329
700
1,580
254
321
252
317
-
1
-
1
972
1,651
952
1,898

Note 11 – Creditors

ote 11 – Creditors
Amounts falling due within one year
Trade creditors
Taxation and social security
Accruals and deferred Income		 Group
Group
Charity
Charity
2021
2020
2021
2020
£’000
£’000
£’000
£’000
206
408
212
408
168
365
154
325
1,202
2,096
1,043
1,945
1,576
2,869
1,409
2,678

All amounts received in advance and deferred income relate to the subsequent financial year and are released to income in that year.

Note 12 - Retirement benefits

Stakeholder contributions

The Energy Institute operates defined contribution pension arrangements for employees. Employer contributions made during the period in respect of 72 (2020: 59) employees were £239,000 (2020: £239,500). The Energy Institute entered into a salary sacrifice scheme agreement with stakeholder pension scheme members from the 1 January 2020.

Defined benefit pension scheme

The Energy Institute operates a defined benefit pension scheme, the Energy Institute Pension and Dependents Benefits Plan which has 6 active members. The scheme funds are administered by Trustees and are independent of the Energy Institute's finances. Contributions are paid to the scheme in accordance with the recommendations of an independent actuarial adviser. Details in respect of the scheme are provided below. The benefits have been valued by projecting forward the results from the FRS102 disclosures, as at 31 December 2021, making adjustments to reflect benefits paid out of the Plan, additional accrual and differences between the assumptions used at this year-end and those at the previous year-end. The value of the defined benefit liabilities has been measured using the projected unit method. The full actuarial valuation as at 1 January 2020 showed a deficit of £40,000.

19

Energy Institute Report of the Council and Financial Statements 2021

Movement in assets during the period

31 December 2021 31 December 2021 31 December 2021 31 December 2020 31 December 2020
Principal actuarial assumptions % a year % a year
Discount rate 1.9% 1.4%
Retail Price Inflation 3.6% 3.2%
Consumer Price Inflation 3.1% 2.7%
Salary growth 2.9% 2.1%
Rate of increases to pensions in payment
−Price inflation (CPI) subject to a maximum of 2.5% p.a. 1.9% 1.8%
−Price inflation (CPI) subject to a maximum of 3% p.a. 2.2% 2.0%
−Price inflation (CPI) subject to a maximum of 5% p.a. 2.9% 2.6%
−Price inflation (CPI) subject to a maximum of 5% p.a.
and a minimum of 3% p.a. 3.7% 3.6%
Demographic assumptions
Mortality after retirement
-
Base table		 S3PXA series year of
S3PXA series year of
birth (YOB) tables birth (YOB) tables
-
Future improvements		 CMI_2019_M/F (1%) CMI_2019_M/F (1%)
Proportion taking tax free cash 100% 100%
2021 2021 2020 2020
Assumed life expectancy at aged 65 Males Females Males Females
Current pensioners 21.8 years
24.1 years		 21.8 years
24.1 years
Retiring in 20 years 22.8 years
25.3 years		 22.8 years
25.3 years
Changes in fair value of plan assets 31 December 2021 31 December 2020
£’000 £’000
Opening fair value of plan assets 9,862 9,123
Employer contributions 103 107
Employee contributions 26 28
Benefits paid (359) (296)
Expenses paid (15) (19)
Expected return on scheme assets 136 199
Actuarial gain/ (losses) on assets (106) 720
Closing fair value of plan assets 9,647 9,862
Actual return on plan assets 30 919

The plan assets are invested in three Legal and General Investment Management funds.

Asset Allocation 31 December 2021 31 December 2020
Diversified Growth Fund 52.2% 47.8%
Bonds 29.2% 32.6%
Gilts 17.8% 19.3%
Cash 0.8% 0.3%

20

Energy Institute Report of the Council and Financial Statements 2021

Movement in assets during the period

Changes in present value of defined benefit obligation
Opening defined benefit obligation
Current service cost
Employee contributions
Interest cost
Benefits paid
Scheme amendments
Remeasurement loss/(gain) on defined benefit obligation:
-
Impact of experience
-
Impact of amended financial assumptions
-
Impact of amended mortality assumptions
Closing defined benefit obligation
Pension expense
Analysis of the amount charged to income and expenditure
Current service cost
Expenses
Interest on net liability
Actuarial remeasurement		 31 December 2021
£’000
31 December 2020
£’000
10,422
8,642
142
109
26
28
145
188
(359)
(296)
-
(16)
(148)
(12)
(375)
1,683
-
(96)
9.853
10,422
31 December 2021
£’000
31 December 2020
£’000
(142)
(109)
(15)
(19)
(9)
11
-
16
(166)
(101)

The Scheme is closed to new entrants. As a result, the age profile of the active members will tend to rise and under the projected unit method the current service cost will tend to increase with time.

Other comprehensive income
Actual less expected return on plan assets
Experience gains/(losses) on liabilities
Change in assumptions
Actuarial (loss)/gain recognised in OCI
Balance sheet position
Present value of defined benefit obligation
Fair value of plan assets
Net defined benefit pension (liability)/asset		 31 December 2021
£’000
31 December 2020
£’000
(106)
720
148
12
375
(1,779)
417
(1,047)
31 December 2021
£’000
31 December 2020
£’000
(9,853)
(10,422)
9,647
9,862
(206)
(560)

21

Energy Institute Report of the Council and Financial Statements 2021

Notes on the financial statements

Note 13 – 2021 Group Reserves

Unrestricted reserves
General reserves
Pension reserve
Designated reserves
UK WPC reserve
Powerful Women reserve
Fixed asset reserve
Total unrestricted reserves
Restricted reserves
Partner technical projects
Shell hearts and minds
General prize fund
Benevolent fund
Total restricted reserves
Total Reserves		 1 January
2021
Incoming
resources
Resources
expended
Transfers and
other
gains/(losses)
31 December
2021
£’000
£’000
£’000
£’000
£’000
1,526
5,325
(5,251)
214
1,814
(560)
-
(63)
417
(206)
966
5,325
(5,314)
631
1,608
14
6
(5)
-
15
93
221
(217)
-
97
6,147
-
(83)
23
6,087
6,254
227
(305)
23
6,199
7,220
5,552
(5,619)
654
7,807
1,664
1,594
(1,394)
-
1,864
416
16
(22)
-
410
6
1
(1)
-
6
503
15
(22)
34
530
2,589
1,626
(1,439)
34
2,810
9,809
7,178
(7,058)
688
10,617

Note 13 – 2021 Charity Reserves

Unrestricted reserves
General reserves
Pension reserve
Designated reserves
UK WPC reserve
Powerful Women reserve
Fixed asset reserve
Total unrestricted reserves
Restricted reserves
Partner technical projects
Shell hearts and minds
General prize fund
Benevolent fund
Total restricted reserves
Total Reserves		 1 January
2021
Incoming
resources
Resources
expended
Transfers and
other
gains/(losses)
31 December
2021
£’000
£’000
£’000
£’000
£’000
1,490
5,048
(4,987)
214
1,765
(560)
-
(63)
417
(206)
930
5,048
(5,607)
631
1,559
14
6
(5)
-
15
93
221
(217)
-
97
6,147
-
(83)
23
6,087
6,254
227
(305)
23
6,199
7,184
5,275
(5,355)
654
6,199
1,664
1,594
(1,394)
-
1,864
416
16
(22)
-
410
6
1
(1)
-
6
503
15
(22)
34
530
2,589
1,626
(1,439)
34
2,810
9,773
6,901
(6,794)
688
10,568

22

Energy Institute Report of the Council and Financial Statements 2021

Notes on the financial statements

Note 13 – 2020 Group Reserves

Unrestricted reserves
General reserves
Pension reserve
Designated reserves
UK WPC reserve
Powerful Women reserve
Fixed asset reserve
Total unrestricted reserves
Restricted reserves
Partner technical projects
Shell hearts and minds
General prize fund
Benevolent fund
Total restricted reserves
Total Reserves		 1 January
2020
Incoming
resources
Resources
expended
Transfers and
other
gains/(losses)
31 December
2020
£’000
£’000
£’000
£’000
£’000
1,088
6,251
(5,982)
169
1,526
481
-
6
(1,047)
(560)
1,569
6,251
(5,976)
(878)
966
17
6
(9)
-
14
74
140
(121)
-
93
6,217
-
(96)
26
6,147
6,308
146
(226)
26
6,254
7,877
6,397
(6,202)
(852)
7,220
1,338
1,291
(965)
-
1,664
471
46
(101)
-
416
6
-
-
-
6
476
16
(16)
27
503
2,291
1,353
(1,082)
27
2,589
10,168
7,750
(7,284)
(825)
9,809

Note 13 – 2020 Charity Reserves

Unrestricted reserves
General reserves
Pension reserve
Designated reserves
UK WPC reserve
Powerful Women reserve
Fixed asset reserve
Total unrestricted reserves
Restricted reserves
Partner technical projects
Shell hearts and minds
General prize fund
Benevolent fund
Total restricted reserves
Total Reserves		 1 January
2020
Incoming
resources
Resources
expended
Transfers and
other
gains/(losses)
31 December
2020
£’000
£’000
£’000
£’000
£’000
1,043
5,891
(5,613)
169
1,490
481
-
6
(1,047)
(560)
1,524
5,891
(5,607)
(878)
930
17
6
(9)
-
14
74
140
(121)
-
93
6,217
-
(96)
26
6,147
6,308
146
(226)
26
6,254
7,832
6,037
(5,833)
(852)
7,184
1,338
1,291
(965)
-
1,664
471
46
(101)
-
416
6
-
-
-
6
476
16
(16)
27
503
2,291
1,353
(1,082)
27
2,589
10,123
7,390
(6,915)
(825)
9,773

23

Energy Institute Report of the Council and Financial Statements 2021

Notes on the financial statements

Designated reserves

UK WPC: Some income generated from UK WPC activities is allocated to build reserves which can support participation in the WPC Youth Committee and other WPC or UK WPC activities.

Powerful Women: Some income generated from Powerful Women activities is allocated to build reserves which can support participation in the activity.

Fixed asset reserve: represents the funds which are invested in the Institute’s fixed assets and therefore not readily available to be spent.

Restricted reserves

Partner technical projects: Funds provided specifically for projects advancing scientific and technical knowledge relating to health, safety, environment and standards relating to the energy industry.

Shell hearts and minds: The Energy Institute sells the Hearts and Minds toolkit on behalf of Shell Exploration and Production Ltd, any surplus is held for future investment in the development of the toolkit and related Human Factors projects.

General prize fund; The objects include:

The furtherance of education in the field of the science of energy and fuels by the award of prizes, the provision of grants, the funding of exhibitions and seminars, the provision of continuing professional education and the provision of scholarships.

Benevolent fund : The fund provides assistance for the benefit of deserving members of the Energy Institute and their dependants to improve quality of life and provide educational opportunities.

Note 14 – 2021 Group Net assets by fund

The various group reserves are represented by the Energy Institute’s assets and liabilities as summarised below:

Unrestricted reserves
Pension reserve
Designated reserves
Restricted reserves
Total		 Tangible
fixed &
investment
assets
Net
current
assets
Pension
reserve
£’000
£’000
£’000
1,544
270
-
-
-
(206)
6,088
111
-		 31-Dec-21
£’000
1,814
(206)
6,199
7,632
381
(206)
2,508
302
-		 7,807
2,810
10,140
683
(206)		 10,617

Note 14 – 2021 Charity Net assets by fund

The various charity reserves are represented by the Energy Institute’s assets and liabilities as summarised below:

Unrestricted reserves
Pension reserve
Designated reserves
Restricted reserves
Total		 Tangible
fixed &
investment
assets
Net
current
assets /
(liabilities)
Pension
reserve
£’000
£’000
£’000
1,544
221
-
-
-
(206)
6,088
111
-		 31-Dec-21
£’000
1,490
(206)
7,758
7,632
332
(206)
2,508
302
-		 7,184
2,810
10,140
634
(206)		 10,568

24

Energy Institute Report of the Council and Financial Statements 2021

Notes on the financial statements

Note 14 – 2020 Group Net assets by fund

The various group reserves are represented by the Energy Institute’s assets and liabilities as summarised below:

Unrestricted reserves
Pension reserve
Designated reserves
Restricted reserves
Total		 Tangible
fixed &
investment
assets
Net
current
assets
Pension
reserve
£’000
£’000
£’000
1,276
250
-
-
-
(560)
6,145
109
-		 31-Dec-20
£’000
1,526
(560)
6,254
7,421
359
(560)
2,506
83
-		 7,220
2,589
9,927
442
(560)		 9,809

Note 14 – 2020 Charity Net assets by fund

The various charity reserves are represented by the Energy Institute’s assets and liabilities as summarised below:

Unrestricted reserves
Pension reserve
Designated reserves
Restricted reserves
Total		 Tangible
fixed &
investment
assets
Net
current
assets /
(liabilities)
Pension
reserve
£’000
£’000
£’000
1,276
214
-
-
-
(560)
6,145
109
-		 31-Dec-20
£’000
1,490
(560)
6,254
7,421
323
(560)
2,506
83
-		 7,184
2,589
9,927
406
(560)		 9,773

Note 15 – Related party transactions

Transactions during the year with EI services Ltd, resulted in an amount due to the Energy Institute totalling £34,000 (2020: due from EI £262,000). Energy Institute raised invoices to EI Services Ltd totalling £138,000 (2020: £261,000) in respect of recharged costs. There are no other related party transactions that require disclosure.

25

Energy Institute Report of the Council and Financial Statements 2021

Notes on the financial statements

Note 16 – Comparative Statement of Financial Activities

Consolidated Statement of Financial Activities for the year ended 31 December 2020 (Including consolidated income and expenditure)

Note
Income:
Income from charitable activities:
Members’ subscriptions
Charitable activities
Other trading activities
3
Government grants
Investments
Total income
Expenditure:
Charitable activities
Other trading activities
Total expenditure
4
Net gains on investments
9
Net Income/(expenditure)
Transfers between funds
Other recognised gains/(losses):
Actuarial (losses)/gains on Pension Plan
13
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
14		 2020
2020
2020
2020
Unrestricted
General
Designated
Restricted
Total
reserves
reserve
reserves
reserves
£’000
£’000
£’000
£’000
1,765
-
-
1,765
3,737
146
1,339
5,222
599
-
-
599
6,101
146
1,339
7,586
46
-
-
46
104
-
14
118
6,251
146
1,353
7,750
5,704
226
1,082
7,012
272
-
-
272
5,976
226
1,082
7,284
195
-
27
222
470
(80)
298
688
(26)
26
-
-
(1,047)
-
-
(1,047)
(603)
(54)
298
(359)
1,569
6,308
2,291
10,168
966
6,254
2,589
9,809

26

Energy Institute Report of the Council and Financial Statements 2021

Notes on the financial statements

Note 16 – Comparative Statement of Financial Activities (Continued)

Charity Statement of Financial Activities for the year ended 31 December 2020 (Including income and expenditure account)

Note
Income:
Income from charitable activities:
Members’ subscriptions
Charitable activities
3
Government grants
Donations
Investments
Total income
Expenditure:
Charitable activities
Total expenditure
4
Net gains on investments
9
Net income/(expenditure)
Transfers between funds
Other recognised gains/(losses):
Actuarial (losses)/gains on Pension Plan
13
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward
14		 2020
2020
2020
2020
Unrestricted
General
Designated
Restricted
Total
reserves
reserve
reserves
reserves
£’000
£’000
£’000
£’000
1,759
-
-
1,759
3,655
146
1,339
5,140
5,414
146
1,339
6,899
46
46
327
-
-
327
104
-
14
118
5,891
146
1,353
7,390
5,607
226
1,082
6,915
5,607
226
1,082
6,915
195
0
27
222
479
(80)
298
697
(26)
26
0
-
(1,047)
-
-
(1,047)
(594)
(54)
298
(350)
1,524
6,308
2,291
10,123
930
6,254
2,589
9,773

27