## **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
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**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 President, the Honorary Secretary and the Honorary Treasurer
- other such officers as the EI may determine
- up to 6 elected individual members of the EI
- up to 3 individuals co-opted by Council
- up to 3 individual members of the EI, nominated by Branches.
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
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**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:
- To conduct or promote the conduct of scientific and other research, to publish useful results of such research, and to provide facilities for study, research and education; To publish, produce and distribute or assist in the publication, production or distribution of films, recordings, and any form of written, printed or electronic communication and to advertise in any manner;
- To establish and maintain libraries and collections, and provide public access to them, and to collect information whether or not on a basis restricted by agreement with the provider thereof; To hold conferences, meetings and seminars and other events and to promote the reading of learned papers; To encourage the undertaking of voluntary work in the interests of the EI; To develop and promulgate codes of good professional practice, to prescribe standards of education, training and experience in professions or activities related to the objects and to hold examinations and other tests, and to award certificates and diplomas **:** provided that no such certificate or diploma shall purport to be issued by or under government authority, or purport to be a national qualification, without the prior approval of, or accreditation by, the appropriate department of Government and/or the appropriate devolved administration, or the appropriate regulatory body for qualifications;
- To institute, establish and promote educational and training courses, scholarships grants, awards and prizes.
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:
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**Energy Institute Report of the Council and Financial Statements 2021**
- Attracting, developing and equipping the diverse future energy workforce
- Informing energy decision making through convening expertise and advice
- Enabling industry to make energy lower carbon, safer, and more efficient
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:
- EI Enable launched, supporting members with a 24/7 advice service and funds for fees available to those made redundant during the pandemic
- Guidance produced with industry to protect workforces and assets during the pandemic
- EI LIVE lockdown-friendly webinars accessed by 1000s around the world
- UK members backed calls for a green skills strategy in Energy Barometer 2022
- Young Generation 2050 members had their say via round tables, podcast season and produced an inspirational film that premiered at COP26
- The Toolbox web app was extended into wind energy and is now available in 10 languages
- Annual incident data published for the first time by SafetyOn, while G+ delivered new guidance on helicopter safety practices
- EI joined UN Race to Zero and published first net zero progress report
- Record number of good practice documents published by the technical programme, and new activities under way in CCUS and hydrogen
- EI magazines moved online in a new digital flipbook format
- 1000s signed up for new EI Connect mentoring platform
- Energy Fundamentals training provided to 100s of BEIS and Scottish Government officials
- EI sponsored the Big Bang special climate change award and the edie net zero leader of the year award
- POWERful Women published annual boardroom data, held virtual conference and hosted event in COP26 green zone
- Growing participation in National Engineering Policy Centre, Methane Guiding Principles, Professional Bodies Charter for Climate Action and Sustainable Markets Initiative.
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
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**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:
- to employ an active investment management strategy; and
- to hold funds required for the day-to-day running of the Energy Institute in interest-paying bank deposit accounts.
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:
- The Institute is budgeting a business-as-usual breakeven in 2022, with a growth investment budget of £300,000
- The strategy budgeting for 2022, means that the Institute is well equipped to put mechanisms in place to ensure a cost reduction plan is put into action if income is not received as anticipated.
- Cash flow forecasts highlight the cyclical pattern where the Institute is cash rich early in the year and then utilises those cash reserves over the course of the year;
- Over the past two years cash reserves have built up to fund the strategy investment plans.
- The Institute holds around £4m of liquid investments, just over half of which represent restricted project funding. This core level of investments is unlikely to change significantly in value as amounts utilised are replaced with new amounts received.
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**
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**Energy Institute Report of the Council and Financial Statements 2021**
- New ways of engaging with and packaging services for employees of company members
- Development of a new platform to enable members to engage with each other and develop special interest groups
- Develop routes to fellowship in particular in key geographies and demographics
- Further amplify the influence of young professionals internally and through the next phase of Generation 2050
- Continued support for and visibility of role in POWERful Women and the Energy Leaders Coalition
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**
- Host first ever International Energy Week, as a hybrid event building on the strengths and legacies of IP Week, showcasing the technologies, business models and skills required for global net zero
- Further develop other conferences including Powering Net Zero and Middle East HSE & Sustainability
- -year legacy of the earlier Cadman and Melchett Awards
- Launch new online member magazine, New Energy World, building on the foundations of Energy World and Petroleum Review and providing a window on the energy transition as it unfolds
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
- Build a work programme in integrated power systems
- Scope out further projects focused on sectoral and cross-cutting priorities
- Secure new technical partners, with a focus on key geographies
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:
- follow applicable accounting standards;
- observe the methods and principles in the Charities SORP;
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent; and
- prepare the financial statements on the going-concern basis unless it is inappropriate to presume that the EI will continue in business.
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
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**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
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and have been prepared in accordance with the requirements of the Charities Act 2011.
## **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:
- adequate accounting records have not been kept by the parent charity, or returns adequate for our audit have not been received from branches not visited by us; or
- sufficient accounting records have not been kept; or
- the parent charity financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of trustees for the financial statements**
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**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:
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
-
- Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates
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.
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**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.
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**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.
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**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**
- **a) General information**
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