. •energy institute Annual Report of the Council and Financial Statements for the year ended 31 December 2023 Registered charity number 1097899
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Council, Officers and Committee Chairs Council and Officers Committees Senior Management Chief Executive Dr Nick Wayth CEng FEI FIMechE Director- Technical and Innovation Martin Maeso CEnv MEI President Juliet Davenport OBE HonFEI NC Vice-Presidents Greg Jackson FEI The Rl. Hon Prof Charles Hendry CBE HonFEI Aleida Rios CEng FEI NC NC NC, FAC Director- External Affairs Nick Turton FEI Director- Finance and Facilities Ava Longhurst DChA Director- People. Culture and Governance Zehra Hussain Vice-President & Honorary Secretary Andy Brown OBE NC, HR Honorary Treasurer Simardeep Soor ACA FEI FAC Main Committee Chairs Young Member Representative Michael Howie AMEI Ypc Human Resources Commlttee (HR) Andy Brown OBE Finance and Audit Committee (FAC) Simardeep Soor ACA FEI Professional Affairs Committee (PAGJ Emily Spearman CEng FEI Sclentlfic and Technl¢al Advlsory Commlttee (STAC) Lisa Rebora FEI Energy Advisory Panel (EAP) Prof Robert Gross FEI Other Members of Council Prof John Currie CEng FEI Prof Robert Gross FEI Andrew Hadland AMEI Lisa Rebora FEI Emily Spearman CEng FEI Dr Joanne Wade OBE FEI PAC EAP STAC PAC Nominations Committee (NC) President Young Professionals Council (YPC) Michael Howie AMEI Disciplinary Committee To be appointed by Council as required Appeals Committee To be appointed by Council as required Other infomiation Reglstered Offlce 61 New Cavendish Street, London W1G 7AR, UK +4410120 7467 7100 e". info@energyinsl.org www.ener inst.or Investment Managers Sarasin & Partners LLP Juxon House, 100 St Pauls Churchyard, London EC4M 88U Solicitors Hempsons 40 Villiers Street, London WC2 6NJ Registered charity number 1097899 Incorporated by Royal Charter 1 July 2003 Licensed by the Engineering Council IUKI lo register engineers and technicians Auditor Haysmacintyre LLP 10 Queen Street Place, London EC4R 1 AG Licensed by the Society for the Environment to register Chartered Pensions Adviser Environmentalists Morgans Ltd 41 Gay Street, Bath, BA12NT Bankers Lloyds TSB Bank Plc, Business banking BX1 1 LT
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Council Report for the year ended 31 December 2023 Council presents ils Report and the Financial Statements for the year ended 31 December 2023. 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 IEII was Incorporated by Royal Charter on 1 July 2003 and is a registered charity, number 1097899. The El is govemed in accordance with the Royal Charter and Byelaws. The Financial Slalements have been prepared in accordance with the requirements of the Royal Charter, the Statement of Recommended Practice 'Accounting and Reporting by Charities, (Charities SORP second edition. effective 1JanUary 20191, and other relevant statutory requirements. Governance The Council of the El is its governing body and consists of elected and appointed members of the El. The Council of the El has the following membership.. the President, the Honorary Secretary and the Honorary Treasurer other such officers as the El may determine up to 6 elected individual members of the El up lo 3 individuals C(pted by Council up to 3 individual members of the El, nominated by Branches The Chief Executive allends 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 Andy Brown OBE who was appointed lo Council at the AGM on 6 July 2023. Vivienne Cox CBE FEI retired from Council at the AGM on 6 July 2023 Gender diversity is now 460/0.54OA female, male respeelively. Ethnie diversity is now 150/012022.. 15 % l of board membership. Members of the Council are also the trustees in accordance with charity law and provide strategic direction for the Charity. Tru51ees 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 451 lo establish, regulate and dissolve committees and delegate ils powers and functions (other than the power lo make regulations or its non-delegable powers as a body of Irusleesl lo such commillees. Three mandatory committees operate and report quarterly lo Council, namely Finance and Audit, Human Resources and Professional Affairs. The Scienlilic and Technical Advisory Committee also reports to Council and is directly represented via the co-oplion of ils Chair to Council. Similarly, the Energy Advisory Panel reports lo Council and is chaired by a member of Council. El is managed on a day-t¢>day basis by the Chief Executive assisted by staff of appropriate qualification and experience. The Council monitors performance on a quarterly basis. The El's remuneration policy is to ensure the staff and the key management personnel are rewarded in a fair and responsible manner for their contribution to the success of the El and provided with appropriate incentives to encourage enhanced performance. 11 is the intention of the El lo reward staff in a way which ensures il attracts and retains the right skills to have the greatest impact in delivering its charitable objectives. In setting an appropriate salary structLJre the El takes account of information on movements in prices and salaries in central London, salaries in the charity and commercial sectors,. and, the El's charitable status and financial position. The El 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 El provides grants and administrative SLJPPOrt 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 El. The El also owns 3 subsidiary companies in Hong Kong, Nigeria and Singapore. The El also has a wholly owned UK subsidiary company, limited by shares. El Services Limited was incorporated on 17 May 2017. The purpose of the UK company is to administer commercial activities that will contribute to the El's charitable activities.
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Major risks Council has identified and reviewed the major risks lo which the El is exposed. Council is satisfied that appropriate systems have been implemented lo mitigate those risks. In relation lo 2024 planned aclivilies, Council has identified the following priority risks.. The El's 2030 strategy is lop priority lo ensure risks are well managed and appropriate KPI'S are in place to deliver on the strategic themes. Council reviewed 2024 plans and identifiecj associated risk against the key objectives. In order lo reduce the risk of not meeting the projected growth in membership, we are launching a new employee scheme which will engage individuals of our company members, providing them with better access to benefits and the route to professional membership. Our digital strategy aims to reduce the risk of ineffective systems which may lead to slower recruitment of professional members, and providing an effective CPD programme to ensure continued and new training needs is important to retaining our members. A high proportion of the strategy Is investment is dependent on human resource and therefore success depends on attraction of strong strategic leaders and people management. As the organisation grows, the need for effective procedures, new and updated policies is ever more important. Recognising there are some long serving senior leaders with a wealth of knowledge and experience, the need for effective suc$S1On planning has highlighted the importance of ensuring knowledge transfer is maintained within teams. To manage this risk, a Suc$s1on planning review and action plan for critical roles will lake pla in the coming year. Revenue and cashflow remains a risk, however, strong 2023 financial results has reduced the risk scoring since the last assessment. Looking ahead, an effective marketing strategy is key to promote the strategic developments made so far and deliver a return on investment. The risk of underfunding for the Statistical Review of World Energy increases as the support from its previous owner steps down in 2026. This risk will be greatly reduced with the aim of building up a cohort of supporting partners over the next 0 years. As we develop our digital StratY, the reliance on our website and software systems increases our risk of cyber attack, loss of data and access to personal infomalion. The El digital team have worked hard lo ensure our system security is robust and follows cyber security protocol. To manage this risk, organisalions need lo keep their security up to dale and remain vigilanL The digital team maintains the cyber essentials certification and routine cyber-penetralion testing. PUBLIC BENEFIT Members of Council recognise their responsibilities towards public benefit under the requirements of the Charities Act 2011 and have had regard lo the guidance from the Charity Commission on public benefit This requirement Is reflected in the Objects of the El, set out below. The benefits are clear and identifiable. They are available lo a wide section of the public who are interested In energy and ils 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 sel out within the appropriate sections of this report. OBJECTS, AIMS, OBJECTIVES AND ACTIVITIES The objects of the El 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, produ and distribute or assist in the publication, production or distribution of films, recordings, and any form of written, printed or electronic communication and lo 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 COnferenS, 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 El", To develop and promulgate codes of good professional practice, to prescribe standards of education, training and experience in professions or activities related lo the objects and to hold examinations and other lesls, and lo award rtIficateS 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, wilhoul the prior approval of, or accreditation by, the appropriate department of Government andlor 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.
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 In addition lo its Royal Charter objects, which define the nature of its activities, the El Council sets a strategy which aims to direct how il works towards achieving those objects. The El's purpose is to create a better energy future for our members and society by accelerating a just global energy transition to net zero. The El achieves this through". Attracting, developing and equipping the diverse future energy workforce Informing energy decision making through convening expertise and advice Enabling industry lo 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 organisalional resources required are adequate to meet ils needs. The El does not participate in any fundraising activities. Principal activities for the year, achievements and perfomiance The energy sector continued lo be buffeted by the supply and price impacts of the conflict in Ukraine during 2023. On top of this, the Increasingly visible impacts of climate change across all continents focused minds on COP28 at the end of the year in Dubai, UAE. The backdrop of this 'triple crisis,, a term coined by the El the previous year, continued lo drive much of the El's activities. Alongside this, 2023 has seen intensified efforts to deliver on the El's new, clearer strategic purpose, with projects either being delivered or scoped across three strategic themes, plus the significant addition of the Statistical Review of World Energy. Activities during 2023 included". Attracting. developing and equipping the diverse future energy workforce Launch of the El Academy, bringing together the El's existing training portfolio with new offerings in Offshore Wind, Nel Zero and preparatory work to develop the Executive Leadership in Energy Programme. Continued support for and visibility of role in POWERful Women, the Energy Leaders Coalition, TIDE, sponsoring the El Big Bang Climate Change Award, and supporting for the first lime publication of the Pride in Energy annual survey. Development of a new employee scheme for 2024 onwards designed to bring employees of company members and technical partners into individual, pre-professional membership of the El. Development of a new platform lo enable members to engage with each other and develop special interest groups, also lo be launched in 2024. Infomiing energy decision making through convening expertise and advice International Energy Week continued as a three-day In-person event, focused on the theme of 'lransitioning out of crisis,, with keynotes from industry CEOS, climate scientists, NGOS, both main UK political parties and others. President's Award presented to Damilola Ogunbiyi, CEO of Sustainable Energy for All and UN Secretary General Special Representative on Sustainable Energy. Published the first El edition of the Statistical Review of World Energy, after 70+ years with bp. In partnership with KPMG and Kearney, this has significantly enhanced the El's role and reputation in global energy circles. Continued to build the readership of New Energy World, the El's weekly digital and printed quarterly member magazine, providing a window on the eneryy transition as it unfolds. Made an impact at COP28 in Dubai with the publication of Energy Barometer 2023.. UAE in Transition, focused on the view of professionals in the host country, the Stalislical Review Country Transition Tracker, alongside multiple speaking engagements for the El President and CEO. Developed further knowledge content, including publication of an Essentials Guide on 'Transition energy intensive industries to net zero,. Delivered Energy Fundamentals course to 100s of officials al the new UK Department for Energy Security and Nel Zero, over four half-day sessions. Played a leading role in sector collabomtions including Sustainable Markets Initiative, National Engineering Policy Centre, Methane Guiding Principles. Enabling industry and consumers to make energy lower carbon, safer, and more efficient Technical and Innovation work programme continued to evolve in three key areas to support the transition, with accelerated work on CCUS, power systems and hydrogen.
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 54 technical publications issued - equivalent lo one per week. Expanded Toolbox user base in diverse sectors and geographies- reaching 53,000 users, providing learning from SOO+ real life incidents in eleven languages. Annual incident data published by G+ and Safetyon for offshore and onshore wind sectors respectively, with multiple new companies joining the collaborations. A household version of the El's EnergyAware behaviour change tool was made available to the public in partnership with moneysavingexpert.com. Consolidation of the El's energy management consultant registers into the new Energy Efficiency Experts register. A significant change lo the make-up of Council occurred mid-year when Dame Vivienne Cox FEI stood down after 7 years. She was replaced as Vice President and Honorary Secretary by Andy Brown OBE FEI. Investment powets, policy and perfomianee The powers of Council to manage investments are specified in Bye-law 44. The Council has delegated the management of the investment portfolio lo ils FinanTr and Audit Committee. Ils policies are.. to employ an active investment management strategy., and to hold funds required for the day-l(Fday running of the Energy Institute in interest-paying bank deposit accounts. The performance of the Energy Institute portfolio for the calendar year 2023, nel of management fees, was 8 7 /0 against a benchmark of 11.7'/o and compared with the ARC steady growth charity index of 7.51'/o. The Committee regularly reviews the performance of the investment and deposit portfolio and reports lo Council on a quarterly basis. Investments are under management by Sarasin & Partners LLP. FINANCIAL REVIEW The financial results for the El itself are set out in the Statement of Financial Activities on page 10. During the year the El's consolidated results comprised income of £9,869,00012022. £7,733,000) and expenditure of £9,180,00012022'. £8,000,000). Unrestricted income in the year increased by £1,401,000 to £7,376,00012022. £5,975,000). Unrestricted general reserves, excluding gain on investment, produced an operating surplus of £294,00012022'. £367,000 loss}. The net gain on investments of £202,00012022.' £507,000 lossl resulted in nel income of £496,00012022'. £874,000 net expendilurel. After taking account of movements on reslricled reserves and the designated resetwes, this resulted in total nel income of £897,00012022.' £817,000 net expendilurel. Actuarial gains of £422,00012022'. £966,000) on the pension scheme contributed lo a nel gain in funds of £1,319,000 {2022.' £149,000) for the year. At the end of 2023, the El group had nel assets of £12,085,00012022'. £10,766,0001. analysed in the balance sheet set out on page 12. The primary asset is the long leasehold of the premises at 61 New Cavendish StreeL Listed investments plus cash and bank deposits tolalled £5, 111,00012022.. £4,784,000) at the end of 2023, sufficient lo meet the El's obligations lo creditors and reslricled funds. There was an increase of £490,00012022.. £902,000) in the estimated surplus on the pension plan from 2023. this Is reflected in the balance sheet under the Financial Reporting Standard 102 as a pension plan surplus of £1,186,00012022.' £696,000). Operational reserves The Energy Institute's consolidated free reserves al 31 December 2023 lotalled £1,286,00012022." £905,000), representing total unrestricted funds of £8,673,00012022." £7,796,000) less those held in tangible fixed assets of £S,082,00012022". £6,114,000), those designated for particular projects or purposes of £119,00012022." £81,000) and excluding the pension reserve surplus of £1,186,00012022." £696,000). The Council has reviewed the level of free reserves required by the Institute and considered the following. The Institute is budgeting breakeven in 2024 which includes investments made in the last 2 years, there is further growlh investments of £150,000 within the budget. The overall risk profile of the charity has been assessed and the most significant cost commitments have been identified and built into the minimum reserve level. Cash flow forecasts highlight the cyclical pattern where the Institute has good cash reserves eady in the year which is utilised over the course of the year
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 The Institute holds around £4m of liquid investments, approximately one third is unreslricled. This core level of investment is unlikely to change significantly in value given amounts ulilised are replaced with new income received. Based on the factors noted above, the Council has sel a policy level of free reserves with a minimum level of £800,000 10 reduce financial risk and an upper level of £1,200,000 for capital upgrades and future 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 a number of new initiatives either in their second year or about lo go live for the first time, 2024 is sel to be another busy year delivering on the El's strategic themes. Activities for 2024 will include.. Attractlng, developlng and equlpplng the dlverse future energy workforce A'member first, strategy aimed at refining and promoting the member offer, including the launch of El Together digital platform for members lo engage with each other and form special interest groups. Growth in individual membership by launching and promoting a new scheme to extend individual pre•professional membership lo employees of existing and future Company Members and Technical Partners. Development of the El Academy through original training content and partnerships, including the first cohort of the Executive Leadership in Energy Programme. Leadership and support for POWERful Women- focused around the tenth anniversary including a high-profile dinner event. Also activities in support of Generation 2050, Pride in Energy, TIDE and others. Informing energy decision making through convening expertise and advice The El conferencing programme will continue lo bring professionals together, with a major focus being International Energy Week, which will focus this year on the theme 'ln search of the energy transition,. The President's Award and former El Awards will also be integrated into a new International Energy Awards Dinner. The Slatislical Review of World Energy and associated materials will be published for the second time by the El, building on the strong legacy inherited from bp, with our partners KPMG and Kearney. The annual Energy Barometer member survey will be focused again on the UK this year looking back over the Barometer's fi'rst decade and forwards to the energy policy challenges for the next government. Deepening of relationships in the UK policy making sphere, focused on the Department for Energy Security and Nel Zero, including delivering the Energy Fundamentals course for new civil servants and, given the approaching General Election, with the Opposition energy team. Government and regulatory relationships will also be fostered in focus geographies, building on the 2023 UAE Barometer. Expansion of readership of New Energy World digital weekly through 3 open access months, and promotion of the printed quarterly with the aim of doubling the number of recipients among professional members. Active roles in collaborative initiatives including Sustainable Markets Inilialive, National Engineering Policy Centre and Methane Guiding Principles. Enabling industry and consumers to make energy lower carbon, safer, and more efficient Deliver the STAC-approved Technical and Innovation programme, publishing more than 50 good practice guidelines through the year and bringing in new partners and technical company members. Work with industry stskeholders to review programme scope, including potential new areas in support of the energy transition, including solar and better storage. Also expand engagement with global energy regulators to support safe, efficient and sustainable industry operations. Promote greater awareness and use of content through a programme of webinars, more concerted marketing and refreshed presence on the El website. Update and further promote free domestic version of EnergyAware lo El audiences and exposure on MoneySavingExpert website to support consumers lo make energy lower carbon, safer, and more efficient. COUNCIL'S RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS Council prepares financial statements for each financial period, which give a true and fair view of the slate of affairs of the El and of the surplus or deficit of the El for that period. In preparing those financial statements, Council is required to..
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 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 lo presume that the El will continue in business. Council is responsible for keeping proper accounting records, which disclose with reasonable accuracy al any time the financial position of the El 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 El and hen for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor A resolution prowsing that Haysmacintyre LLP be re-appointed as auditor to the El will be proposed al the Annual General Meeting. 00 Juliet Davenport OBE HonFEI President Simardeep Soor ACA FEI Honorary Treasurer 18 April 2024
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ENERGY INSTITUTE Opinion We have audited the financial statements of the Energy Institute for the year ended 31 December 2023, 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 sel 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 Praclicel. In our opinion the financial stalemenls". give a true and fair view of the state of the group's and the parent charity's affairs as at 31 December 2023 and of the group's and the parent charity's incoming resour$ and application of resourTrs, for the year then ended., 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 Ihereunder. We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those stsndards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordan with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit eviden we have obtained is sufficient and appropriate lo provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the Iruslees, use of the going concern basis of accounting in 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 lo continue as a going concern for a period of at least Ie1ve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Iruslees with respect to going cOnM are described in the relevant sections of this report. other infomiation The Iruslees are responsible for the other information. The other infomialion comprises the information included in the Report of the Council. Our opinion on the financial slalements does not cover the other information and, except lo the extent otherwise explicitly stsled 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 ststemenls or our knowledge obtained in the audit or otherwise appears lo be materially misslaled. If we identify such material inconsistencies or apparent material misstalemenls, we are required lo determine whether there is a material misslalemenl 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 misstalemenl of this other information, we are required to report that fact. We have nothing lo report in this regard. Matters on whlch we are requlred to report by exceptlon 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 retums adequate for our audit have not been r1Ved 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 ft)r our audit. Responsibilities of trustees for the financial statements
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 As explained more fully in the Ststemenl of Council's Responsibilities sel out in the Report of the Council, the Iruslees are responsible for the prepaotion 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 prePatIOn of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group's and the parent charity's ability to continue as a going concern, disclosing, as applicable, mallers related lo going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charity or lo cease operations, or have no realistic alternative but to do so. Auditof s responsibilities for the audit of the financial statements Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misslalement, whether due lo fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI 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 lo influence the economic decisions of users taken on the basis of these financial stslemenls. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to delecl 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 il operates, we identified that the principal risks of non-compliance with laws and regulations related lo management override, and we considered the exlenl 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. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial slalemenls lincluding the risk of override of conlrolsl. and determined that the principal risks were related lo management override. Audit procedures performed by the engagement team included.. Discussions with management including consideration of known or suspected instsnces of non-compliance with laws and regulation and fraud., Evaluating management's controls designed to prevent and detect irregularities", Identifying and testing joumals, 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 Because of the inherent limitations of an audit, there is a risk that we will not delect all irregularities, including those leading to a material misstatement In the financial statements or non-compliance with regulation. This risk increases the more that 0mplian with a law or regulation is removed from the events and transactions reflected in the financial stalemenls, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding Irregularities occurring due to fraud rather than error, a5 fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Couneil's website al." Mrww.fic.or -uklauditorsres onsibilities. This description forms part of our auditor's reporL Use of our report This report Is made solely lo the charity's trustees, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might slate lo the harity's trustees those matters we are required to stale to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity's Iruslees as a body, for our audit work, for this report, or for the opinions we have formed. ttayswaLiiityte LLP Haysmacintyre LLP Statutory Auditor 10 Queen Street Place, London EC4R 1AG Date. 09105124 Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Consolidated Statement of Financial Activities for the year ended 31 December 2023 {Including consolidated income and expenditure) 2023 2023 2023 2023 2022 Unrestri¢ted G8n8ral Designatèd R8striet•d reserve reserve reserve £'ooo Total Total Note reseNes £'ooo reserves £'ooo £'ooo £'ooo Incomg: Income from charitable activities.. Members, subscriptions Charitable activities 1,959 1,959 1,745 4,817 545 1,934 7,296 5,459 Other tfftding activities 463 463 403 7,239 545 1,934 9,718 7,607 Govemment grants Investments 137 14 151 120 Total income 7,376 1,948 9,869 7,733 Expenditure.. Charitable activities 6,950 586 1,512 9,048 7,793 Other trading activities 132 132 207 Total expendlture 7.082 586 1,512 9,180 8,000 Nel gainslllossesl on investments 202 208 15501 Net incomellexpenditurel Transfers between funds 496 1411 47 442 897 {8171 1471 Other recognised gainslllossesl- Actuarial gains on Pension Plan 12 422 422 966 Net movoment in funds 871 442 1,319 149 Reconciliation of funds- Total funds brought foThvard 1,601 6,195 2,970 10,766 10,617 Total funds carried forward 13,14 2,472 6,201 3,412 12,085 10,766 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
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Charity Statement of Financial Activities for the year ended 31 December 2023 {Including income and expenditure account) 2023 Unrestricted Gènèral Designatod R•strict8d reserves reserve reserves £'ooo £'ooo £'ooo 2023 2023 2023 2022 Total reserves £'ooo Total reserves £'ooo Note Income: Income from Gharilable activities.. Members, subscriptions Charitable activities 1,954 1,954 1,742 4,676 545 1,934 7,155 5,227 6,630 545 1,934 9,109 6,969 Govemment grants Donations 334 334 196 Investments 135 14 149 119 Total Income 7.099 1,948 9,592 7,290 Expenditure.. Charitable activities 6,799 586 1,512 8,897 7,594 Total expenditure 6,799 586 1,512 8,897 7,594 Nel gainslllossesl on investments 202 208 {5501 Net Ineomellexpendlturel Transfers beleen funds 502 1411 47 442 903 18541 1471 other recognised gainslllossesl: Actuarial gains on Pension Plan 12 422 422 966 Net movement in funds 877 442 1,325 112 Reconciliation of funds: Total funds brought ft>rward 1,515 6,195 2,970 10,680 10,568 Total funds carried foThvard 13,14 2.392 6,201 3.412 12,005 10.680 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. 11
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Consolidated and Charity Balance Sheet as at 31 December 2023 Group 2023 £'ooo Group 2022 £'ooo Charity 2023 £'ooo Charity 2022 £'ooo Note Fixed assets: Tangible assets Investments 6,082 4,110 10,192 6,114 3,902 10,016 6,082 4,110 10,192 6,114 3,902 10,016 Total fixed assets Current assets: Debtors Short term deposits Bank and cash 10 1,812 13 988 1,996 149 733 2,032 13 378 1,969 149 92 Total current assets 2,813 2,878 2,423 2,210 Liabilities: Amounts falling due within one year Net current assets 12,1061 707 12,8241 {1,7961 627 12,2421 -32 Total assets less current Ilabllltles 10,899 10,070 10,819 9,984 Net assets excluding pension liability Pension Scheme surplus 10,899 1,186 10,070 696 10,819 1,186 9,984 696 12 Total net assets 12.085 10.766 12,005 10.680 The funds of the charity- Unrestricted reserves General reserve Pension reserve Designated reserves 13 1,286 1.186 6.201 8,673 3,412 905 696 6,195 7,796 2,970 1,206 1,186 6,201 8,593 3,412 819 696 6,195 7,710 2,970 Restricted reserves 13 Total group and charity funds 12.085 10.766 12,005 10.680 These financial statements were approved and authorised for issue by Council on 18 April 2024 and signed on ils behalf by.. Juliet Davenport OBE HonFEI President Simardeep SoorACA FEI Honorary Treasurer 12
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Cash flow Statement for the year ended 31 December 2023 Group GTOiIP harity harity 2023 2022 2023 2022 £'ooo £'ooo £'ooo £'ooo Cash flows from operating activities: Net incomelldeficit} for the reporting period {as per the slalement of financial aclivitiesl IGainsllLosses on investments Investment income 897 18171 903 {8541 12081 11511 79 184 17181 1681 550 12081 11491 {1191 79 73 1631 11,0171 14461 833 1681 550 11201 73 11,0241 1,248 64 Depreciation of tangible fixed assets Decreaselllncreasel in debtors (Decreaselllncrease in creditors Non-cash operating movement in pension scheme asset Net cash used in operating octiTVitITes 15 1261 48 (4701 Cash flows from investing activities: Investment Income Payments to acquire investments Payments to acquire tangible fixed assets Net cash (used)/provided by investing activitiTgS 151 120 14001 1991 13791 149 119 14001 1991 13801 1471 104 1471 102 Cash flows from financing activities- Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year 119 14051 1,287 150 18501 1,091 882 241 Cash and cash equlvalents at the end of the year 1,001 882 391 241 Anatysis of changes in net debt of Group 1 January 2023 £'ooo 733 149 Cash flow 31 December 2023 £'ooo 988 13 £'ooo 255 136 Cash al bank and in hand Short term deposits Total cash and cash equivalents 882 1,001 Anatysis of changes in net debt of Charity 1 January 2023 £'ooo 92 149 Cash flow £'ooo 286 136 31 December 2023 £'ooo 378 13 Cash al bank and in hand Short term deposits Total cash and cash equivalents 241 150 391 13
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Notes on the financial statements Note 1- Accounting Policies a} General infomiation The Energy Institute is a body incorporated by Royal Charter and is a charity registered with the Charity Commission (charity registration no. 10978991. The registered office address is 61 New Cavendish Street, London W1G 7AR. b} Basis of proparation The financial statements are prepared Ljnder the historical cost convention as modified to include the revaluation of investments al market value, and in accordance the Statement of Recommended Practice for Charities (Charities SORP second edition. effective 1January 20191 and applicable accounting standards IFRS 1021. 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 SLJbsidiary undertakings, as shown in note 7, are consolidated on a line by line basis within the consolidated Statement of Financial ActThiities ISOFAI. In the parent charity accounts the investment in associates is recognised al 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 nel income or expenditure is recognised in the SOFA and netted off against the carrying amount of the investment in the consolidated accounts. d} Going concem The successful financial outturn in 2023 has improved free reserves and decreased negative financial exposure. A strong 2024 operating plan along with tight budgetary control, monitoring of financial risks and flexibility if revenue streams do not meet expectations, provide the trustees with confidence that the Institute remains a going concern. 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 generalty raises invoices and sends renewals to individuals and Companies for the following financial year's membership fees and other agreed projects before the balance sheet date. fl Expenditure Expenditure is included on an accruals basis and excludes the related Value Added Tax lexcepl where the Value Added Tax is not recoverable). Resources expended are analysed according to departmental costs incurred. Support costs consist of ntral management, property, adminislralion and governance costs. Governance costs consist of those costs associated with meeting the ststutory and compliance requirements of the charity- Support costs are allocated lo expenditure on charitable activities in accordance with the proportion of staff involved in each direct activity. gl Tangible fixed assets and depreciation Fixed assets are staled at cost less depreciation. Depreciation is provided on all assets on the straight line method al the following rates calculated to write off over their remaining lives". Leasehold improvements Plant and equipment Fixtures and fith'ngs ICT assets 1.00/0 per annum 5.00/0 per annum 20.00/0 per annum 33.3Q/o per annum 14
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Notes on the financial statements Note 1- Accounting Policies Icontinuedl h) Investments Listed investments are slated al market value. Gains and losses arising from changes in market values are included within the SOFA. Unlisted investments are staled at cost less provision for impairment. il 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. jl Financial instruments The Energy Institute only has financial assets and financial liabilities of a kind that qU81ify as basic financial instruments. Basic financial inslrumenls, including trade and other receivables and payables and bank loans are initially recognised al transaction value and subsequently measured at their settlement value. Debt instruments are subsequently measured at amortised cost, using the effective interest method. kl Creditors and provisions Creditors and provisions are recognised where the eharily 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. 11 Penslons The Energy Institute operates a defined benefit pension plan which is closed lo 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 eurrent 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 reC(niSed gains and losses in the SOFA The detailed assumptions relating lo 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 al the rates of exchange ruling at the balance sheet dale. Transactions in foreign currencies are recorded at the rate ruling at the date of the Iransaclion. All differences are recognised in the SOFA. The trading results of overseas subsidiaries are translated into sterling at the average exchange rale for the year. The assets and liabilities of overseas undertakings are translated al the exchange rates ruling al the balance sheet dale. Exchange adjustments arising from the retranslation of opening nel investments and from the translation of the results at average rates are recognised in the SOFA. nl 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 al the discretion of Council. Unrestricted designated- funds which have been sel aside by the Council for specific purposes. Restricted- funds that can only be used for particular reslricled purposes within the objects of the Charity. Restrictions arise when specified by the donor or when funds are raised for particular reslricled purposes. 15
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Notes on the financial statements 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 expenditLJre 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 lo pay pension benefits to Trrtain 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 rale on corporate bonds. Management estimates these factors in determining the nel pension obligation In the balance sheet as advised by an independent actuarial adviser. The assumptions reflect historical experien and current trends. The FRS 102 valuation has presented a surplus In the fund_ The pension plan triennial valuation for the year ended 31 December 2022 resulted in a surplus of £548,000. According lo the Trust Deed and Rules. the Principal Company must agree to surplus assets being used to augment members, benefits and in the event that the Scheme winds up and all liabilities are discharged, any assets then remaining can be paid to the Employer. To recover some of the surplus, the employer and pension trustees have agreed to transfer the annual administration expense obligation to the plan and reduce the employer contributions. Leasehold premises Following the completion of the refurbishment works in 2016, il was concluded that no further depreciation expense should be recognised in respect of the leasehold premises as any provision would not be material lo the accounts due lo ils very long useful economic life and high residual value. This has been reviewed and Council have concluded that there have been no changes in circumstances. Note 3- Incoming resources from charitable and other trading activities Group Group 2023 2022 £'ooo £'ooo Charity 2023 £'ooo Charity 2022 £'ooo Membership subscriptions Knowledge sharing activities Skills development activities Good practi activities Other 1,963 2,149 1,290 4,276 40 1,761 1,172 1,103 3,546 25 1,959 1,685 1,149 4,276 40 1,758 770 871 3,546 24 9,718 7,607 9,109 6,969 Note 4- 2023 Expenditure on charitable and other trading activities Direct Costs Direct costs Staff Other £'ooo £'ooo Support 2023 Total costs £'ooo £'ooo Good practice activities Knowledge sharing activities Skills development activities External affairs Charitable activities 1,749 855 731 295 3,630 2,079 714 578 115 3,486 283 534 713 356 178 1,781 4,362 2,282 1,665 588 8,897 283 Charitable and other trading expenditure in subsidiaries Group total 3.630 3.769 1.781 9.180 16
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Notes on the financial statements Note 4- 2022 Expenditure on charitable activities and other trading activities Direct costs DI¢t costs Staff Other £'ooo £'ooo Support 2022 Total costs £'ooo £'ooo Good practi activities Knowledge sharing activities Skills development activities External affairs 1,403 821 563 291 1,868 503 437 48 498 664 332 166 3,769 1,988 1,332 505 Charitable activities 3,078 2,856 406 1,660 7,594 406 Charitable and other trading expenditure in subsidiaries Group total 3,078 3.262 1.660 8.000 Note 5-Analysis of support costs 2023 £'ooo 2022 £'ooo Support staff costs Building facilities and services Management & Human Resources Finance Information Technology 1,106 215 168 84 208 183 110 66 185 1,781 1,660 Included in support costs are governance costs relating to.. 2023 £'ooo 28 2022 £'ooo 26 Auditor's remuneration Actuarial Legal and consultancy Salaries 39 20 76 54 Note 6- Staff costs 2023 £'ooo 2022 £'ooo Salaries Social security Stakeholder pension Defined benefit pension service cost Redundancy Temporarylsub-contract staff other staff related costs 3,597 400 256 17 24 387 53 2,980 352 245 160 61 324 72 4,734 4,194 Remuneration of key management personnel The key management personnel of the Energy Institute comprise of 4 directors and chief executive. Total remuneration, employer's national insurance contributions and pensions for these key management personnel were £629,00012022'. £697,000). 17
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Notes on the financial statements Note 6- Staff costs (continued) The average number ofemployees was 9012022". 791- The following numbers of staff have salaries above £60,000". Beeen £60,000-£70,000 Beeen £70,001-£80,000 Beeen £80,001-£90,000 Beeen £90,001-£100,000 Beeen £100,001-£110,000 Beeen £170,001-£180,000 Beeen £180,001-£190,000 2023 2022 Pension contributions paid in respect of these individuals totalled £101,00012022'. £152,000). 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 remuneraled12022". no trusleesl. Trustees, expenses for travel and accommodation reimbursed during the year amounted to £8,44212022.. £4,144) in respect of 4 trustees. Note 7- Subsidiary undertakings Energy Institute has 3 trading international branch subsidiaries and 1 UK trading subsidiary, which are controlled by the Charity. El Services Limited was incorporated on 17 May 2017, a wholty owned UK subsidiary company of Energy Institute, limited by shares. Energy Institute Hong Kong (Branch) Ltd is incorporated in Hong Kong under the Companies ordinan and limited by shares wholly owned by the El. Energy Institute Nigeria is a Company Limited by Guarantee with El as the sole member. Energy Instrfcute Nigeria is incorporated in Nigeria and registered with the Corporate Affairs Commission. Energy Institute IEII Singapore Ple Ltd, is incorporated in Singapore as a private limited company and wholly owned by the El. Trading subsidiaries, results El Services Ltd Energy Institute Hong Kong Ibranchl Ltd £'ooo Energy In8trtute Nigeria Ltd Energy Institute Singapore Ltd Totsl 2023 Totsl 2022 £'ooo £'ooo È'ooo È'ooo £'ooo Turnover Cost of sales Gross profil Adminlother costs Trading profivllossl Grants paid from El Nel incomel loutgoingsl Amount payable by qualifying charitable donation to Energy Institute Retained profil brought forward 465 11241 123 11271 141 121 161 38 1221 16 1121 626 12731 353 1231 330 675 14161 259 1301 229 23 252 11961 171 334 121 121 334 13341 161 333 13341 58 95 39 Retained profil carried forward and net assets 30 62 94 95 18
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Notes on the financial statements Note 8- Tangible fixed assets (Group and Charity) Leasehold premises £'ooo 4,250 Leasehold improvements £'ooo 2,220 Plant and equipment £'ooo 315 ICT, Fixtures and fittings £'ooo 630 Total al Cost Cost al 1 January 2023 Additions Disposals £'ooo 7,415 47 11101 47 {1101 Cost at 31 December 2023 4,250 2,220 315 567 7,352 bl Depreciation Depreciation al 1 January 2023 Charge for the year 462 144 148 547 1,301 22 16 41 79 11101 {1101 Depreciation at 31 December 2023 462 166 164 478 1,270 Net book value at 31 December 2023 3,788 2,054 151 89 6,082 Net book valuo at 31 December 2022 3,788 2,076 167 83 6,114 The lease on the premises at $1 New Cavendish Street has 935 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 lo the Energy Institute on 1 July 2003. In 2016, Council reviewed the calegorisalion, depreciable amounts and useful economic lives of tangible fixed assets following the completion of the refurbishment works. It was concluded that no further depreciation expense should be recognised in respect of the leasehold premises as any provision would not be material to the accounts due lo its very long useful economic life and high residual value. This has been reviewed and Council have concluded that there have been no changes in circumstsnces. Capital Commitments There were no capital commitments as at 31 December 202312022." £24,000). Note 9- Investments (Group and Charity) Sarasin Endowments Fund Long term investments Market values 01-Jan-23 Additions Net gain on revaluation 31-Dec-22 £'ooo 3,902 208 4,110 Historical cost 01-Jan-23 2,852 2,852 31-Dec-23 Council is not expecting to require disposal of the long-lerm investment portfolio in the foreseeable future bul may draw upon the medium term portfolio if required. Unlisted investments The Energy Institute has 100 ordinary shares of £1, in El services Ltd. 19
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Notes on the financial statements Note 10- Debtors Group 2023 £'ooo 1,233 579 Group 2022 £'ooo 1,869 327 Charity 2023 £'ooo 1,436 596 Charity 2022 £'ooo 1,665 304 Trade debtors Prepayments and accrued income 1,812 1,996 2,032 1,969 Note 11- Creditors Group 2023 £'ooo 301 151 438 Group 2022 £'ooo 436 158 434 Charity 2023 £'ooo 357 131 429 879 Charlty 2022 £'ooo 177 137 430 1.498 Amounts falling due within one year Trade creditors Taxation and social security Awruals Deferred Income 2,106 2,824 1.796 2.242 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 eontribulion pension armngements for employees. Employer eontribulions made during the period in respect of 7512022.. 661 employees were £256,00012022'. £245,000). 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 5 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 al 31 December 2023, making adjustments lo reflect benefits paid out of the Plan, additional accrual and diffèrences between the assumptions used at this year-end and those al the previous year-end. The value of the defined benefit liabilities has been measured using the projected unit method. The full actuarial valuab'on as at 31 December 2022 showed a surplus of £548,000. 20
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Movement in assets during the period 31 December 2023 °A a year 4.5'/o 3.20/0 2.80/0 31 December 2022 Yo a year 4.8° 3.3010 2.80/D Principal actuarial assumptions Discount rate Retail Price Inflation Consumer Price Inflation Salary growth Rale of increases lo pensions in payment Price inflation ICPII subject to a maximum of 2.50/0 p.a. Price inflation ICPII subject to a maximum of 30/0 p.a. Price inflation ICPII subject to a maximum of 5¥9 p.a. Price inflation ICPII subject to a maximum of 50/0 p.a. and a minimum of 30/0 p.a. Demographic assumptions Mortality after retirement Base table 2.30/0 2.2Vo 1.90 2.1'/o 2.70 1.8¥0 2.110 2.7010 3.6Q S3PXA series year of S3PXA series year of birth IYOBI tables birth IYOBI tables CMI_2022_MIF11 Q/0) CMI_2019_MIF110101 Future improvements Proportion taking lax free cash 100¥0 100° 2023 Males 2023 Females 2022 Males 2022 Females Assumed life expectancy at aged 65 Current pensioners Retiring in 20 years 21.4 years 22.3 years 23.8 years 25.0 years 21.9 years 23.0 years 24.3 years 25.4 years Changes in fair value of plan assets 31 December 2023 £'ooo 31 December 2022 £'ooo Opening fair value of plan assets Employer contributions Employee contributions Benefits paid Expenses paid Expected return on scheme assets Actuarial gainl Ilossesl on assets Closing fair value of plan assets Actual return on plan assets 7,187 89 9,647 100 23 12961 26 13571 1161 181 341 120 12,3941 7,187 12,2131 7,464 461 The plan assets are invested in three Legal and General Investment Management funds. Asset Allocation Diversified Growth Fund Bonds 31 Decgmber 2023 31 December 2022 14.0'/. 56.20/, 26.60 Gills Cash 62.7 /0 15.60/¢ 1.60 21
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Movement In assets during the perlod 31 December 2023 31 December 2022 £'ooo £'ooo Changes in present value of defined benefit obligation Opening defined benefit obligation Current service cost Employee contributions Interest cost 6,491 55 23 307 9,853 143 26 186 Benefits paid Remeasurement lossllgainl on defined benefit obligation". Impact of experience Impact of amended financial assumptions Impact of amended mortality assumptions Closing defined benefit obligation 12961 13571 14791 290 {1141 13,4741 6.278 6.491 Pension expense Anatysis of the amount charged lo income and expenditure 31 December 2023 31 December 2022 £'ooo £'ooo Current service cost Expenses Interest on nel liability 155} 11431 1161 151 11641 34 121} The Scheme is closed to new enlranls. 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 lend lo increase with lime. 31 Decgmber 2023 31 December 2022 £'ooo £'ooo other comprehensive income Actual less expected return on plan assets Experience gainslllossesl on liabilities Change in assumptions Aeluarial Ilossllgain recognised in OCI 120 12,3941 11141 3,474 966 479 11771 422 31 December 2023 31 December 2022 £'ooo £'ooo Balance sheet position Present value of defined benefit obligation Fair value of plan assets Nel defined benefit pension Iliabilityllasset 16,2781 7,464 1,186 16,4911 7,187 696 22
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Notes on the financial statements Note 13- 2023 Group Reserves 1 January 2023 Ineomin9 our¢e$ Rèsources Transfèrs and expended other gain8111055e51 £'ooo 31 Deeèmbèr 2023 £'ooo £'ooo £'ooo £'ooo Unrestricted reserves General reseryes Pgnsion resgrv8 905 696 1,601 7,376 17,1501 68 7,082 155 422 577 1,286 1,186 2,472 7,376 Designated reserves Powerful Women reserve UK WPC reserve Statistical Review reserve Fixed asset reserve 65 16 395 13701 181 11291 79 586 90 150 21 6082 6,201 6,114 6,195 47 47 545 Total unrestricted reserves 7,796 7,921 17,6681 624 8,673 Restricted reserves Partner technical projects Shell hearts and minds General prize fund Benevolent fund 2,034 427 1,900 29 11,4951 131 2,439 453 503 13 515 Total restricted reserves 2,970 1,948 11,5121 3,412 Total Reserves 10,766 9,869 19,1801 630 12,085 Note 13- 2023 Charity Reserves 1 January 2023 Incoming resour¢e$ Resource8 Transfers and 31 December expended other 2023 gain8111055e51 £'ooo £'ooo £'ooo £'ooo £'ooo Unrestricted reserves General reseryes Pgnsion resgrv8 819 696 1,515 7,099 16,8671 68 6799 155 422 577 1,206 1,186 7099 Designated reserves Powerful Women reserve UK WPC reserve Statistical Review reserve Fixed asset reserve 65 16 395 13701 181 11291 79 586 90 150 21 6082 47 47 6,195 545 Total unrestricted resgrves 7,710 7,644 17,3851 624 8,593 Restricted reserves Partner technical projects Shell hearts and minds General prize fund Benevolent fund 2,034 427 1,900 29 11,4951 131 2,439 453 503 13 515 Total restricted reserves 2,970 1,948 11,5121 3,412 Total Reserves 10,680 9,592 18,8971 630 12,005 23
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Notes on the financial statements Note 13- 2022 Group Reserves 1 January 2022 Ineomin9 our¢e$ Rèsources Transfèrs and expended other gain8111055e51 £'ooo 31 Deeèmbèr 2022 £'ooo £'ooo £'ooo £'ooo Unrestricted reserves General reseryes Pgnsion resgrv8 1,814 206 1,608 5,975 16,2781 64 6,342 16061 966 360 905 696 1,601 5,975 Designated reserves Powerful Women reserve UK WPC reserve Fixed asset reserve 97 15 6,087 147 11791 1101 73 262 65 17 99 99 159 Total unrestricted reserves 7,807 6,134 16,6041 459 7,796 Restricted reserves Partner technical projects Shell hearts and minds General prize fund Benevolent fund 1,864 410 1,533 38 11,3631 1211 2,034 427 530 28 12 43 503 Total restricted reserves 2,810 1,599 11,3961 1431 2,970 Total Reserves 10,617 7,733 18,0001 416 10,766 Note 13- 2022 Charity Reserves 1 January 2022 Incoming our¢es RoUrceS Tran8fer8 and 31 December expended other 2022 gain811108se81 £'ooo £'ooo £'ooo £'ooo £'ooo Unrestricted reserves General reseNes Pgnsion resglV8 1,765 206 5,532 15,8721 64 5936 16061 966 360 819 696 5532 Designated reserves Powerful Women reserve UK WPC reserve Fixed asset reserve 97 15 147 11791 1101 73 262 65 17 99 99 6,199 159 Total unrestricted reserves 7,758 5,691 16,1981 459 7,710 Restricted reserves Partner technical projects Shell hearts and minds General prize fund Benevolent fund 1,864 410 1,533 38 11,3631 1211 2,034 427 530 28 12 43 503 Total restricted reserves 2,810 1,599 11,3961 1431 2,970 Total Reserves 10,568 7,290 17,5941 416 10,680 24
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Notes on the financial statements Designated reserves UK WPC.. Some income generated from UK WPC activities is allocated lo build reserves which can support participation in the WPC Youth Committee and other VIPC or UK WPC activities. Powerful Women." Some income generated from Powerful Women activities is allocated to build reserves which can support participation in the acb'vity. statistical Review reserve.. Some income generated from the Statistical Review of World Energy is allocated lo build reserves which can support the activity. Resource has been provided in kind from the partner companies and has been accounted for within the designated reserve. Fixed asset reseThe.' 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 lo health, safety, environment and standards relating lo the energy industry. Shell hearts and minds. The Energy Inslilule 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 pryzes, 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- 2023 Group Net assets by fund The various group reserves are represented by the Energy Inslitule's assets and liabilities as summarised below.. Tangible Net Pension 31-Dec-23 fixed & current resetve investment assets assets £'ooo £'ooo £'ooo £,)0 Unreslricled reserves Pension reserve Designated reserves 1,118 168 1,286 1,186 6,201 8,673 3,412 12,085 1,186 6,082 7,200 2,992 10,192 119 287 420 707 1,186 Restricted reserves Total 1,186 Note 14- 2023 Charity Net assets by fund The various charity reserves are represented by the Energy Institute's assets and liabilities as summarised below". Tangible Net Pension 31-Deca23 fixed & current reserve investment assets I assets £'ooo £'(H)O £'ooo £'ooo Unreslricled reserves Pension reserve Designated reserves 1,118 88 1,206 1,186 6,201 8,593 3,412 12,005 1,186 6,082 7,200 2,992 10,192 119 207 420 627 1,186 Restricted reserves Total 25
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Notes on the financial statements Note 14- 2022 Group Net assets by fund The various group reserves are represented by the Energy Inslitule's assets and liabilities as summarised below.. Tangible Net Pension 31-Dec-22 fixed & current reserve investment assets assets £'ooo £'ooo £'ooo £'ooo Unreslricled reserves Pension reserve Designated resetves 1,050 11451 905 696 6,195 7,796 2,970 10,766 696 6,114 7,164 2,852 10,016 81 1641 118 54 696 Restricted reserves Total 696 Note 14- 2022 Charity Net assets by fund The various charity reserves are represented by the Energy Institute's assets and liabilities as summarised below.. Tangible Net Pension 31-Oec-22 fixed & current reserve investment assets I assets £'ooo £'ooo £'ooo £'ooo Unreslricled reserves Pension reserve Designated reserves 1,050 12311 819 696 6,195 7,710 2,970 10,680 696 6,114 7,164 2,852 10,016 81 11501 118 1321 696 Restricted reserves Total 696 Note 15- Related party transactions Transactions during the year with El ServIS Ltd, resulted in an amount due to the Energy Institute tolalling £380,000 12022.. due lo El £118,000). Energy Institute raised InvolS to El Services Ltd tolalling £115,00012022.' £145,000) in respect of recharged costs. There are no other related party transactions that require disclosure. 26
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Notes on the financial statements Note 16 - Comparative Statement of Financial Activities Consolidated Statement of Financial Activities for the year ended 31 December 2022 Ilncluding consolidated income and expenditure) 2022 2022 Unrestrlcted General Designated Restricted reserve reseNe 2022 2022 Total Note reserve reserves £'ooo £'ooo £'ooo £'ooo Income- Income from Gharilable activities.. Members, subscriptions Charitable activities 1,745 3,714 1,745 159 1,586 5,459 Other trading activities 403 403 5,862 159 1,586 7,607 Govemment gntS Investments 107 13 120 Totsl income 5.975 159 1.599 7,733 Expenditure.. Charitable activities 6,135 262 1,396 7,793 Other trading activities 207 207 Totsl expenditure 6.342 262 1.396 8.000 Nel Ilossesllgains on investments 15071 1431 15501 Net {expendlturelllncome Transfers beleen funds 18741 1991 11031 99 160 18171 other recognised gainslllossesl: Actuarial gains on Pension Plan 12 966 966 Net movement in funds {71 160 149 Rgconciliation of funds: Total funds brought forward 1,608 6,199 2,810 10,617 Total funds carried foThvard 14 1.601 6,195 2.970 10,766 27
Eneryy Instltute Report of the Councll and Flnanclal Statements 2023 Notes on the financial statements Note 16 - Comparative Statement of Financial Activities (Continued) Charity Ststement of Financial Activities for the year ended 31 December 2022 Ilncluding income and expenditure accounti 2022 2022 2022 2022 Unrestri¢ted G8n8ral Designatèd R8strict•d reserve reseNes £'ooo Total Note reserves £'ooo reseNes £'ooo £'ooo Incomg: Income from charitable activities.. Members, subscriptions Charitable activities 1,742 1,742 3,482 159 1,586 5,227 5,224 159 1,586 6,969 Govemment grants Donations 196 196 Investments 106 13 119 Total income 5,532 159 1,599 7,290 Expenditure.. Charitable activities 5,936 262 1,396 7,594 Total oxpenditurg 5,936 262 1.396 7,594 Nel Ilossesllgains on investments 15071 1431 15501 Net lexpenditurellineome Transfers beeen funds 19111 1991 1103} 99 160 18541 Other recognised gainslllossesl: Actuarial gains on Pension Plan 12 966 966 Net movement in funds 1441 160 112 Reconciliation of funds: Totsl funds brought forward 1,559 6,199 2,810 10,568 Total funds carrled foThvard 14 1,515 6,195 2,970 10,680 28