## Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024 Financial Statements and Review
Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
1
## Financial review of the year
## **Our objective**
IIRSM’s primary objective is to provide education, information and career support to members. The Board of Trustees continued to improve their governance during the year, ensuring members receive value and that we adhere to the Charity Commission’s Rules. During the year, we reviewed various policies, procedures and standards to support institutional growth and compliance.
IIRSM, as a charity delivering public benefit and operating as a membership body supporting its members, requires well managed resources and systems to deliver these objectives.
remained under inflationary pressure, by prioritising essential spending and renegotiating contracts. The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular, the Trustees have considered the charitable company’s forecasts and projections and have taken account of the cash balances held due to subscriptions received in advance and the significant investment assets held.
## **Annual results summary**
The income for the year to 30 June 2024 was £1,173,932 (2023: £1,104,297). Expenditure was £1,132,564 (2023: £1,151,359) resulting in a surplus of £41,368 (2023: deficit £47,062). This is a 6.3% increase in income, while costs have reduced by 1.6%.
We made an £46,133 gain on our investments (2023: gain £18,450). This results in an overall surplus of £87,501 (2023: deficit £28,612)
The balance sheet as at 30 June 2024 shows total funds of £513,031 (2023: £425,530) of which £83,892 (2023: £67,188) is designated for tangible and intangible fixed assets. The remaining free reserves at the end of the year were £429,139 (2023: £358,342)
## **Cash flow management, cost control and going concern**
The main increase in income came from a mix of extra membership fees, corporate training and the investment gain. We were able to reduce costs, while some costs
Based on this, the Trustees believe that there is no material uncertainty that the charitable company will not continue to be a going concern and have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future.
## **Fundraising activities**
IIRSM has a cost of raising funds in the financial statements in relation to generating income mainly from current and new members. The charity does not utilise external professional fundraisers or commercial participants to carry out fundraising activity and does not engage in face-to-face or telephone fundraising. We aim to build and maintain solid partnerships with our supporters and members and do not undertake activities to raise funds from those that could be classified as ‘vulnerable people’. Any approach to fundraising would take account of the Code of Fundraising Practice issued by the Fundraising Regulator. IIRSM has received no complaints about its fundraising activities, either during the financial year or subsequently.
2 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Risk assessment
The risks to which the charity is exposed, as identified by the Trustees, have been reviewed and systems and procedures have been established to manage these risks. The Board of Trustees is satisfied that reasonable steps are being taken to limit the probability and impact of these risks. The senior leadership team (SLT) regularly review the risk register, especially when considering changes to agreed plans or potential new opportunities. Changes in risk items are reported to the Board of Trustees as a standing agenda item at every meeting.
## **The major risks identified are set below:**
## **1. Lack of adequate revenue growth**
A failure to generate enough income to fund core projects and to support the implementation of the Institute’s strategy.
## **4. Cyber risks and GDPR**
The transition to a virtual working and member networking environment will result in additional cyber risks via use of malware (e.g., viruses and ransomware). These could result in data theft and identity fraud. Any data breach would result in reputational damage and possible regulatory fines.
## **Control**
We have enhanced our cyber security training for all staff, maintained regular software updates, introduced stricter password controls and off-site server back-ups. We have also strengthened our IT security protocols. We keep our members’ personal data securely and do not disclose data to third parties for commercial use.
## **5. Member retention**
Membership retention (and growth) is a continuing risk that could impact a significant income stream.
## **Control**
A new strategy and forecast has been developed with clear objectives to develop non membership subscription income streams. We have prioritised the development of new or rejuvenated products and services to generate sufficient income to support the implementation of the new strategy.
## **2. Insufficient IT capacity**
A lack of investment in IT systems will directly impact on our ability to launch and deliver our three-year strategy. A robust IT system is fundamental to IIRSM’s long-term sustainability.
## **Control**
A commitment to a structured renewal of all IT equipment has been established. Trustees have agreed a technology transformation project of which phase one, the development of a new website, was completed in late 2023. Phase two, the introduction of a new CRM system, is expected to be completed by the end of 2024-25.
## **3. Loss of organisational knowledge**
As staff move on during a period of change, loss of programme knowledge and competencies can impact the delivery of key plans and activity.
## **Control**
We have worked to enhance membership value with the development of various mentoring and training offers. Our communities are growing in numerous localities with a dedicated member of staff in support. The Trustees’ strategy is on enabling a more practical approach to CPD so that members are not pressured to record numerous activities for an ambiguous value. IIRSM must be seen to be relevant to all at whatever stage of their career.
## **6. Ageing membership population**
IIRSM is unable to attract the appropriate level of younger members and to maintain membership levels as older members retire.
## **Control**
IIRSM is transitioning from being a membership organisation predominately for health and safety practitioners, to a membership body relevant to everyone involved in risk and safety management, which surveys have shown to be more appealing to younger groups. A focus on people development is attractive to individuals and corporate members.
## **Control**
Key operational processes are documented, and more flexible working patterns have been introduced with a focus on internal communication to boost overall staff knowledge.
3 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Staff and volunteers
## **Achieving our potential**
## **Health and safety**
Council recognises that building and developing skills, competencies, teamwork and motivation of employees is key to achieving IIRSM’s charitable aims. IIRSM employees are responsible for providing an effective and efficient service to members and ensuring that Committees and Panels can function successfully. Staffing has been stable during the year.
The average number of full or part time staff employed by the Institute in the year was 8 (2023: 9). We continue to invest in training and development to strengthen the capabilities of employees and enable them to achieve their full potential. IIRSM’s policy for remuneration of key management personnel is covered in Note 3 to the financial statements.
IIRSM members, affiliates and students are encouraged to become involved in the activities of the Institute and there are more than 1,340 (2023: 1,320) unpaid volunteers on committees, sub-Committees, panels, working groups and in branches. IIRSM is not only grateful for their input but also to their employers who support their participation by providing time and financial support for their attendance. IIRSM is also thankful to all those that have provided office space and utilities for meetings. The in-kind value of these resources cannot be reasonably quantified and measured and is not therefore recognised in the statement of financial activities.
The activities carried out by IIRSM are mainly office based, however, it is recognised that employees and volunteers do travel and homework on occasions. These risks receive regular assessment and review in line with the general policy statement of health and safety objectives included in the employee handbook, which was revised in 2024.
Organisational and operational risks are regularly re-evaluated by management within a documented system which includes a wider range of risk areas such as security and the environment. Staff members have and continue to receive appropriate health and safety training on the issues relevant to their obligations as employees and duty holders. Trustees have reviewed a number of policies during the year.
## **Equality and diversity**
IIRSM is committed to providing equal opportunities to job applicants, staff, students, and volunteers regardless of sex, sexual orientation, marital status, age, race, ethnic origin, religion or belief or disability. The Institute seeks to conduct all its activities in compliance with this principle and in full adherence to all applicable laws prohibiting discrimination in employment or service provision and develop and maintain a diverse workforce of staff and volunteers at all levels.
4 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Legal and administrative details
## **Council and Trustees**
Ms Ruth Denyer MIIRSM (2019), Co-President Mrs Rosie Russell FIIRSM (2021), Co-President
Mr Marc Phillip Brown FIIRSM (2021) Ms Stephanie Camm MIIRSM (2020), retired December 2023 Mr Matthew Cox FIIRSM (2018) Ms Karla Gahan FIIRSM (2021)
Mr John Nelson FIIRSM (2021), resigned June 2024 Ms Courtney Tree CAANZ (2023) Ms Anna Murray (2024) Mr Jonathan Biney FIIRSM (2024) Mr John Pares FIIRSM MCIPD (2024) _(Year of appointment to Council shown in brackets)_
## **Management Team**
Phillip Pearson Chief Executive
Alec Stevens FCCA Director of Finance
Sabreena Roberts Director of Professional Development
## **Registered Office:**
## **Bankers:**
Suite 107-108, _Barclays_ 150 Minories, 1 Churchill Place, London EC3N 1LS London E14 5HP
_CAF Bank Ltd_ 25 Kings Hill, Avenue Kings Hill, West Malling, Kent ME19 4JQ
## **Investments:**
_St James’s Place Wealth Management_ 23 Kingsway, York House, London WC2B 6UJ
## **Auditors:**
_Moore Kingston Smith LLP_ 9 Appold Street, London EC2A 2AP
**Solicitors:**
_Stone King LLP_ Broad Quay House, Bristol BS1 4DJ
5 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Structure, governance and management
## **Statement of Trustees’ responsibilities**
The Board of Trustees, also known as Council, present their statutory report with the financial statements of IIRSM for the year ended 30 June 2024.
The report has been prepared in accordance with Part 8 of Charities Act 2011.
The report is also a Directors’ Report required by section 415 of the Companies Act 2006. All the Trustees are also Directors of the charitable company.
The annual accounts have been prepared in accordance with the accounting policies set out on pages 10 to 11 of the attached financial statements and comply with the charitable company’s Memorandum and Articles of Association, applicable laws, the special provisions of part 15 of the Companies Act 2006 relating to small companies and with the Statement of Recommended Practice on Accounting and Reporting by Charities (FRS 102).
## **Governance and administration**
The governing document of the charitable company is the Memorandum and Articles of Association.
The charitable company is administered by a Board of Trustees, members of which constitute Directors for the purposes of company legislation and Trustees for the purposes of Charity legislation. New Trustees can be appointed by Council between Annual General Meetings (AGM), although these must be confirmed by the membership at the next AGM. The desired profile of members is reviewed periodically by the Board of Trustees and appropriate appointments are made to ensure a balanced Board. No external bodies have the power to appoint Trustees, and Council is ultimately responsible for the charitable company. The names of Trustees who served during the year are included on page 5.
A special resolution was passed in August 2018 by a majority of members of the Institute to amend the Memorandum and Articles of Association. These continue to be reviewed annually.
Good governance and leadership is essential for the success of the Institute and Council is committed to following the principles and recommended practice in the Charity Governance Code (as recommended by the Charity Commission, **www.charitygovernancecode.org/en** ). These principles are organisational purpose, leadership, integrity, diversity, openness and accountability, Board effectiveness, decision-making, risk and control.
## **Appointment of Trustees**
The Trustees are elected at the Annual General Meeting. Each Trustee is appointed for a term of three years and may be reappointed for a further two terms before retiring from office. Trustees need not be members of the Institute but are elected by the membership at large. Council may also co-opt Trustees with specialist skill sets for a limited period.
## **Trustees’ responsibilities**
## _(In relation to these financial statements)_
The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires Trustees to prepare financial statements for each financial year. These give a true and fair view of the state of the affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure of the charitable
6 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Structure, governance and management (continued)
company for that period. In preparing these financial statements, the Trustees are required to:
- Select suitable accounting policies and apply them consistently
- Observe the method and principles in the Charities Statement of Recommended Practice (SORP)
- Make judgements and estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
- The Trustees are responsible for keeping proper accounting records that comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence must take reasonable steps for the prevention and detection of fraud and other irregularities.
## **Auditor information**
So far as the Trustees are aware:
- There is no relevant audit information of which the charitable company’s auditor is unaware of
- The Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
## **Induction and training of Trustees**
A formal induction process is provided for all new Trustees. The programme includes:
- Familiarisation with the role of IIRSM, the structure, governance and charitable objectives as well as the role and responsibilities of being a charity Trustee
- Courses are held annually for all Trustees to enhance their understanding and to update them on developments in corporate governance.
## **Organisation**
Trustees are responsible for matters related to the policy and strategy. The Trustees may delegate any of their powers to sub-committees. Sub-committees have been established to cover Audit, Finance and General Purposes, Membership and Branches, Technical and Education and Training. A Chief Executive is appointed by Council to manage the day-to-day operations of IIRSM.
7 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Reserves policy
## **Reserves**
IIRSM’s reserves have been ring-fenced by the Board of Trustees for furthering the objectives of the Institute, Information technology development, promotions, networking and as an operational contingency.
The reserves policy is based upon financing operations for a six-month period. This is calculated as an operating cost of £353,007 (2023: 390,208) and covered by existing unamortised income remaining in the balance sheet (page 13) as subscription in advance (Deferred income). Trustees
agreed to maintain further minimum free reserves that are not committed for any operating cost which is either 15% of unamortised income or 15% of six months operating costs whichever is higher to cover shortfall in revenue.
The current reserves are £513,031 (2023: £425,530). This is apportioned to a number of reserves, which is for the purposes of funding our operational costs if our income unexpectedly declines, and a number of specific reserves (e.g. strategic investments). The allocation of funds to the specific reserves below is agreed by the Trustees.
|~~|~~|~~|~~|**2024**
~~|~~|**2022**|
|---|---|---|---|
|~~a~~|~~|~~
~~ee~~
~~a~~|**£**
~~|~~
~~ee~~
~~a~~|**£**|
|~~a~~|**Total Reserves, of which:**
~~a~~|**513,031**
~~a~~|**425,530**|
|i.
~~a~~|Designated reserves
~~a~~|83,892
~~a~~|67,188|
|ii.|Volatilityof fixed assets valuation
~~a~~|20,000
~~a~~|20,000
~~a~~|
|iii.|Designated reserves (ring-fenced for branches)
~~a~~
~~ee~~|1,223
~~a~~
~~ee~~|–
~~a~~|
|iv.|Minimum required free reserves (15% of subscriptions in advance)
(Note 7)
~~ee~~|85,588
~~ee~~|77,362|
||Net free reserves available for investment
~~ee~~|322,328
~~ee~~|260,980|
8 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Investment policy
## **Summary**
## **Investment objective /** Balanced **Risk profile /** Medium
We would anticipate investing in environmental, social and governance (ESG) funds that enable our long-term capital growth. The UN Principles for Responsible Investments (UN PRI), the world’s leading proponents of responsible investment, also work to understand the investment implications of environmental, social and governance (ESG) factors and to support the international network of investors signatories in incorporating these factors into their investment and ownership decisions.
IIRSM’s investment is split into two separate investments:
- St James’s Place (SJP) Bespoke Portfolio. St James’s Place (SJP) became signatories to the UN Principles of Responsible Investors in February 2018.
- Rowan Dartington Ethical and Environmental Portfolio. Rowan Dartington is 100% owned by SJP. This collective is invested in funds that incorporate into their decision making the impact companies have on the environment and a broad range of social issues, with the overarching intention of investing to bring a positive change.
for a market-based investment as the bank interest earned was lower than the current low rate of inflation. This has resulted in the erosion of the monetary value which needed to be addressed given the size of the cash balance.
Our investments are managed by St James Place, a leading investment management company. We invested £453,250 in December 2019 and with an addition of another £100,000 during 2022. The value of our investment has increased to £587,725 (2023: £541,589)
## **Donations**
No charitable or political donations were made.
## **Auditors**
A resolution to re-appoint Moore Kingston Smith as auditor will be proposed at the annual General Meeting to be held on 3 December 2024.
## **Small companies regime**
This report has been prepared in accordance with special provisions relating to small companies within Part 15 of the Companies Act 2006.
Our portfolio remains balanced between a mix of income generating funds and capital appreciation funds. The bespoke investment is positioned as medium risk and we will be re-evaluating this in the coming year.
## **PRI performance over the last 15 years**
Our investment policy focuses on both capital preservation (i.e. safeguarding against inflation) and capital appreciation. The policy is in line with our Trustees’ risk appetite. We opted
Approved on behalf of the board of Trustees of IIRSM
Ruth Denyer MIIRSM Co-President
9 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Accounting policies
## **1.1 Company information**
The Charitable company is registered and domiciled in England and Wales (Charity registration number 1107666 and Company Limited by guarantee registration number 5310696). The registered office is at Suite 107-108, 150 Minories, London EC3N 1LS.
## **1.5 Subscription and other income from members**
Subscription income received that relates to a subsequent financial accounting period is carried forward as deferred income.
## **1.6 Income from research and advice**
## **1.2 Basis of preparation**
The financial statements have been prepared in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), published on 16 July 2014. The Charitable Company is a public benefit entity for the purposes of FRS 102 and therefore the charity also prepared its financial statements in accordance with the Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (The FRS102 Charities SORP), the Companies Act 2006 and the Charities Act 2011. The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.
## **1.3 Exemption from group accounts**
The financial statements present information about the charity as an individual undertaking and not about its group. The charity has a wholly owned subsidiary IIRSM Solutions Limited which is dormant and has been since incorporation, consequently it is not considered necessary to prepare group accounts.
## **1.4 Going concern**
The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charitable company to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular, the Trustees have considered the charitable company’s forecasts and projections and have taken account of pressures on membership and trading income in the light of recent economic pressures. After making enquiries the Trustees believe that there is no material uncertainty that the charitable company will not continue to be a going concern and have concluded that there is a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future.
Incomes from research and advice contracts are recognised after the service has been delivered to the contractors and after they are satisfied with the work.
## **1.7 Income from education and training**
Income from training approval is accounted for in the year to which it applies. Income received that relates to a subsequent financial accounting period is carried forward as a credit in the balance sheet and shown as deferred income.
## **1.8 Investment income**
Income is accounted for in the year to which it applies. Income received that relates to a subsequent financial accounting period is carried forward as a credit
## **1.9 Expenditure**
Expenditure is charged to the Statement of Financial Activities on the accruals basis. Expenditure is allocated directly to the expenditure headings as far as practically possible to reflect the activities of the Charity. Charitable expenditure consists of all expenditure relating to the activities carried out to achieve the objectives. Governance costs (which are included in support costs) represent those costs incurred for organisational administration and compliance with constitutional and statutory requirements. Support costs are allocated based on the proportion of income generated from each charitable activity, excluding other income and investment income.
## **1.10 Inventory**
Stock inventories are valued at the lower of cost of purchase or net realisable value.
10 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Accounting policies (continued)
## **1.11 Intangible fixed assets and amortisation**
Intangible fixed assets comprise website, computer systems development and qualification development cost. Amortisation is provided on intangible fixed assets depending upon an assessment of the likely useful life of the assets as agreed by the Finance and General Purposes Committee at the time of purchase.
All intangible assets meeting the revenue-generating requirements are capitalised. The useful life of these assets are assessed annually.
- Website Development Straight line over 5 years • Database Development Straight line over 5 years
• Qualification Development Straight line over 5 years The Trustees have assessed the intangible assets associated with the outgoing CRM system. As these costs will be obsolete when the new CRM is in use an impairment calculation has been made to apportion these costs over their shortened useful life.
market rate of interest are, measured at the present value of the expected future receipts or payment discounted at the market rate of interest. Fixed Assets investments are basic financial instruments and are accounted for at their market value.
## **1.15 Employee benefits**
Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee through, for example, redundancy, or to provide termination benefits.
## **1.16 Pension contributions**
The charitable company makes contributions to each eligible employees’ pension fund. Contributions are charged to the Statement of Financial Activities as and when they become due.
## **1.12 Tangible fixed assets and depreciation**
## **1.17 Designated and unrestricted funds**
Tangible Fixed Assets are stated at cost and only those with an aggregate cost of more than £500 are capitalised. Depreciation is provided to write off the cost of the Fixed Assets over their estimated useful lives at the following annual rates:
- Computer hardware Straight line over 3 years • Office Fixtures and Fittings Straight line over 3 to 5 years • Exhibition Stand Straight line over 3 years
The annual depreciation charge for computer hardware, office fixture and fittings and exhibition stands is sensitive to change in useful economic life and residual values of assets. These are reassessed annually.
## **1.13 Foreign currency transactions**
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rate 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 taken to the Statement of Financial Activities.
## **1.14 Basic financial instruments**
Cash and cash equivalents include cash at bank and in hand and short term deposits with a maturity date of three months or less. Debtors and creditors receivable or payable within one year of the reporting date are carried at their transaction price. Debtors and creditors that are receivable or payable in more than one year, and not subject to a
The cost of tangible and intangible assets are designated funds. All other funds are unrestricted funds that can be utilised to achieve the Institute’s objectives.
## **1.18 Critical accounting estimates and areas of judgement**
Intangible fixed assets comprise website, computer systems development and qualification development cost. Amortisation is provided on intangible fixed assets depending upon an assessment of the likely useful life of the assets at the time of purchase. All intangible assets meeting the revenue-generating requirements are capitalised. The annual depreciation charge for Computer hardware, Office Fixture and Fittings and Exhibition Stands is sensitive to change in useful economic life and residual values of assets. These are reassessed annually as approved by the Finance and General Purpose Committee.
## **1.19 Fixed asset investments**
Investments are stated at fair value at the balance sheet date. The SOFA includes net gains and losses on revaluation and disposals throughout the year.
11 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Financial statements
Including an income and expenditure account. Statement of financial activities for the year ended 30 June 2024
**----- Start of picture text -----**
Income and expenditure Note 2024 2023
£ £
Income from charitable activities
Membership 978,942 946,285
Professional development 142,020 89,496
Trading activities
Income from events 47,781 65,482
Income from publication 21 37
Other income 2,795 2,259
Investment income 2,373 739
Total income 1,173,932 1,104,297
Expenditure
Expenditure on raising funds 2.4 (248,854) (205,092)
Charitable activities
Membership 2.2 (706,013) (780,416)
Professional development 2.3 (177,697) (165,851)
Total expenditure (1,132,564) (1,151,359)
Net (loss) / gain on Investment 46,133 18,450
Net (deficit) / surplus 87,501 (28,612)
Fund balance at 1 July 425,530 454,142
Balance carried forward at 30 June being net movement in funds 513,031 425,530
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The Statement of Financial Activities includes all gains and losses recognised in the current and preceding year. All activities are derived from continuing operations. The Notes on pages 15-22 form part of the financial statements.
12 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Balance sheet as at 30 June 2024
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Note 2024 2024 2023 2023
£ £ £ £
Fixed assets
Intangible fixed assets 4 76,679 62,261
Tangible fixed assets 5 7,213 4,927
Investments 6 587,725 541,592
671,617 608,780
Current assets
Prepayments 28,733 10,614
Other debtors 32,370 80,536
Fixed deposit – 100,000
Cash at bank and in hand 541,753 341,938
602,856 533,088
Current liabilities
Trade creditors 64,944 79,459
Other creditors – –
Tax and social security 10,780 10,618
Accruals 115,132 110,515
Subscriptions in advance 7 570,586 515,746
761,442 716,338
Net current liabilities (158,586) (183,250)
Net assets 513,031 425,530
Reconciliation of funds
Unrestricted funds 10 429,139 358,342
Designated funds 11 83,892 67,188
Total funds 513,031 425,530
The accounts were approved by the Board of Trustees and
authorised for issue on 3 December 2024 and signed on their behalf.
Ruth Denyer
Co-President of the Council
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13 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Statement of cash flows for the year ended 30 June 2024
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Note 2024 2023
£ £
Cash flows from operating activities
Cash (used in) / generated from operations See below 148,941 45,006
Net cash (outflow) / inflow from operating activities 148,941 45,006
Cash flow from investing activities
Purchase of property, plant and equipment and intangibles ( 51,499 ) ( 60,052 )
Disposal 76,570 74,418
Addition (77,479) (80,109)
Disposal gain / (loss) 909 5,691
Investment income 2,373 739
Net cash (used in) / generated from investment activities (49,126) (59,313)
Change in cash and cash equivalents in the reporting period 99,815 (14,307)
Cash and cash equivalents at the beginning of the reporting period 441,938 456,245
Cash and cash equivalents at the end of the reporting period 541,753 441,938
Cash and cash equivalents consist of:
Cash at bank 541,753 441,938
Analysis of net cash At 1 July 2023 Cash flow At 30 June 2024
441,938 99,815 541,753
Reconciliation of net (outgoing) / incoming resources to net cash
2024 2023
inflow from operating activities
£ £
Net outgoing / incoming resources for year 87,501 (28,612)
Depreciation 3,023 3,674
Amortisation 31,772 7,782
Investment losses / (gains) (46,133) (18,450)
Investment income (2,373) (739)
Decrease in prepayments (18,119) 16,640
Increase in other debtors 48,166 38,701
Increasing trade creditors, tax and Social Security (14,353) 12,171
Increase / (decrease) in accruals 4,617 (9,015)
Decrease in deferred income 54,840 22,854
Net cash (outflow) / inflow from operating activities 148,941 45,006
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14 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Notes to financial statements
## **2.1 Expenditure analysis**
**Activity or programme**
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Activities
2024 undertaken Apportioned Total
cost
directly
£ £ £
Expenditure on raising funds (2.4) 227,226 21,628 248,854
Charitable activities
Membership (2.2) 338,329 367,684 706,013
Professional development (2.3) 134,440 43,257 177,697
699,995 432,569 1,132,564
Direct staff costs for raising funds have been charged under ‘Activities undertaken directly’
2023
Expenditure on raising funds (2.4) 183,076 22,016 205,092
Charitable activities
Membership (2.2) 384,129 396,287 780,416
Professional development (2.3) 143,835 22,016 165,851
711,040 440,319 1,151,359
2.2 Membership
Membership costs include any costs incurred to serve membership
2024 2023
£ £
Magazine print and mailing 96,506 134,168
Membership stationery 5,304 1,858
Helplines 5,276 8,722
Partnership costs 8,696 10,060
Branch network cost 6 11,430
Direct staff costs 222,541 217,891
Support costs and wages apportioned 367,684 396,287
706,013 780,416
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15 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Notes to financial statements (continued)
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2.3 Professional development
2024 2023
£ £
Direct staff cost 134,440 143,835
Support costs and wages apportioned 43,257 22,016
177,697 165,851
2.4 Expenditure on raising funds
2024 2023
£ £
Promotion and awareness raising 120,321 95,884
Publication 14,632 4,929
Direct staff cost 92,273 82,263
Support cost and wages apportioned 21,628 22,016
248,854 205,092
2.5 Governance cost
2024 2023
£ £
Legal and professional fees 500 850
Audit and accountancy Fees 20,610 12,350
Institutional membership 4,192 4,235
Other governance costs 14,367 8,934
39,669 26,369
**----- End of picture text -----**
16 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Notes to financial statements (continued)
## **2.6 Analysis of support costs**
**----- Start of picture text -----**
2024 2023
£ £
Other staff costs 43,673 72,595
Premises costs 65,326 86,624
Communication costs 23,986 24,023
Business travel 7,021 12,164
Website and IT services 98,083 81,983
Health, safety and environment – 3,127
Bank charges 18,866 15,968
Sundry expenses (inc. VAT adjustments) (1,924) 3,209
Amortisation 31,772 7,782
Depreciation 3,023 3,674
Partnership costs 8,696 10,060
Events and exhibitions 14,662 15,301
Governance costs (2.5) 39,669 26,369
Staff cost apportioned 103,072 102,800
455,925 465,679
**----- End of picture text -----**
## **3. Trustees and employee information**
## a) Trustee information
No remuneration was paid to the Trustees during the year (2023: £nil). Expenses in respect of travelling to meetings were reimbursed during the year was zero (2023: 1) Trustees amounting to £nil (2023: £184)
## b) Employee information
|b)Employee information|||
|---|---|---|
||**2024**|**2023**|
||**Number**|**Number**|
|The average number of staff employed bythe Charitywas:|8|9|
|**Employee costs during theyear were:**|**£**|**£**|
|Wages and salaries|430,953|441,466|
|Social Security|42,071|31,051|
|Pension costs|51,745|53,501|
||**524,769**|**526,018**|
||||
|**Salary band**|**2024**|**2023**|
|£60,000 - 70,000|–|3|
|£80,000 - 90,000|1|1|
17 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Notes to financial statements (continued)
## 3. Trustees and employee information
The total remuneration for key management personnel amounted to £222,638 (Including salaries and employee benefits) (2023: £319,193). Key management personnel are defined as persons having authority and responsibility for planning, directing and controlling the activities of the charitable company whom the Board of Trustees have delegated significant authority or responsibility in the day to day running of the charitable company’s affairs. Key management personnel are shown on page 5. Total redundancy and termination payments during the year amounting to £11,308 (2023 £39,120) were recognised as an expense and did not give rise to a funding requirement.
## c) Remuneration policy
IIRSM is committed to ensuring that we pay our staff fairly and in a way which ensures we attract and retain the right skills to have the greatest impact in delivering our charitable objectives. In accordance with the charities SORP, The company’s act 2006, And the charities act 2011, IIRSM discloses the following:
- All payments made to Trustees (no Trustees receive ‘pay’ although they are entitled to claim for appropriate expenses)
- The number of staff in receipt of more than £60,000
- Pensions and other benefits
IIRSM staff pay and benefits benchmark against similar organisations and are reviewed annually. The Finance and General Purposes Committee reviews pay and benefits and recommends to the IIRSM Council’s Officer Group for approval. These are incorporated in the annual budgets and approved by the Board of Trustees.
## **4. Intangible fixed assets**
**----- Start of picture text -----**
Computer Website Qualifications Total
software development
Assets £ £ £ £
1 July 2023 21,669 52,808 10,250 84,727
Additions during the year – 46,190 – 46,190
Disposal – – – –
30 June 2024 21,669 98,998 10,250 130,917
Amortisation
1 July 2023 10,279 10,550 1,637 22,466
Charge for the year 4,239 25,482 2,051 31,772
Disposal – – – –
30 June 2024 14,518 36,032 3,688 54,238
Net book value
At 30 June 2024 7,151 62,966 6,562 76,679
At 30 June 2023 11,390 42,258 8,613 62,261
**----- End of picture text -----**
18 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Notes to financial statements (continued)
**----- Start of picture text -----**
5. Tangible fixed assets
Computer Office Total
hardware F&F
£ £ £
1 July 2023 15,020 774 15,794
Additions during the year 4,851 458 5,309
Disposal (5,065) – (5,065)
30 June 2024 14,806 1,232 16,038
Depreciation
1 July 2023 10,407 460 10,867
Charge for the year 2,784 239 3,023
Disposal (5,065) – (5,065)
30 June 2024 8,126 699 8,825
Net book value
At 30 June 2024 6,680 533 7,213
At 30 June 2023 4,613 314 4,927
6. Investments
2024 2023
£ £
Investments brought forward 541,592 523,142
Disposal proceed (76,570) (74,418)
Additions 77,479 80,109
Net investment (loss) / gain 45,224 12,759
Market value at 30 June 587,725 541,592
Cost at 30 June 546,762 523,142
Equities (UK) 164,203 173,346
Equities (Overseas) 423,522 368,243
Total investments held 587,725 541,592
The Trustees consider the investments in equities to be material to IIRSM.
Investments in individual entities held at 30 June 2024 which are over 10% of portfolio by market value are:
Cost Market value
£ £
St James’s Place Bespoke 281,000 325,046
SJP Rowan Dartington 265,762 262,679
**----- End of picture text -----**
19 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Notes to financial statements (continued)
## **7. Subscription in advance**
**----- Start of picture text -----**
2024 2023
£ £
Deferred a subscription at 1 July 515,746 492,892
Released during the year (515,746) (492,892)
Deferred in year 570,586 515,746
Carried forward at 30 June 570,586 515,746
**----- End of picture text -----**
Membership subscriptions, corporate partnerships and training approval income received that relates to a subsequent financial accounting period is carried forward as deferred income. The income in advance balance of £570,586 included a balance of £122,858 (2023: £75,066) related to training classes, course approval fees and second year and third year membership subscriptions paid that relate to the period starting 1 August 2023.
## **8. Pension commitments**
There is a £3,802 creditor in respect of pension contributions to the company auto enrolment pension scheme. The total pension costs for the year are £51,745 (2023: £53,501)
## **9. Future financial commitments**
At 30 June 2024, the institute has annual commitments under an operating leases as set out below:
|**Land and buildings:**|**2024**|**2023**|
|---|---|---|
|Leases expiring|**£**|**£**|
|Within 1year|28,800|57,600|
|Between 2 and 5years|–|28,800|
|**Total**|**28,800**|**86,400**|
|**Rentpaid during theyear**|**57,600**|**76,800**|
||||
|**Others:**|**2024**|**2023**|
|Leases expiring|**£**|**£**|
|Within 1year|3,340|3,340|
|Between 2 and 5years|13,360|13,360|
|Over 5years|835|4,175|
|**Total**|**17,535**|**20,875**|
|Rentpaid duringtheyear|3,340|4,498|
20 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Notes to financial statements (continued)
**10. Analysis of funds 2024**
**----- Start of picture text -----**
General funds Designated funds Total
£ £ £
General reserves at 1 July 2023 358,342 67,188 425,530
Addition in assets (51,499) 51,499 –
Operating surplus for the year 41,368 – 41,368
Transfers in designated funds 34,795 (34,795) –
Net gain on investments 46,133 – 46,133
Total funds at 30 June 2024 429,139 83,892 513,031
**----- End of picture text -----**
General funds are free reserves that can be used as and when Trustees of the Charitable Company decide. Designated funds are those that are invested in intangible and tangible fixed assets.
|**2023**|**2023**|**2023**|**2023**|
|---|---|---|---|
|General reserves at 1July2022|435,550|18,592|454,142|
|Addition in assets|(60,052)|60,052|–|
|Operatingloss for theyear|(47,062)|–|(47,062)|
|Transfers in designated funds|11,456|(11,456)|–|
|Net loss on investments|18,450|–|18,450|
|**Total funds at 30June 2023**|**358,342**|**67,188**|**425,530**|
|**11. Analysis of net assets**|**11. Analysis of net assets**|**11. Analysis of net assets**|**11. Analysis of net assets**|
|---|---|---|---|
|**2024**||||
||**General funds**|**Designated funds**|**Total**|
||**£**|**£**|**£**|
|Investments|587,725|–|587,725|
|Fixed assets|–|83,892|83,892|
|Net current liabilities|(158,586)|–|(158,586)|
|**Total net assets at 30June 2024**|**429,139**|**83,892**|**513,031**|
|**Total net assets at 30June 2023**|**358,342**|**67,188**|**425,530**|
|**2023**||||
|Investments|541,592|-|541,592|
|Fixed Assets|-|67,188|67,188|
|Net current liabilities|(183,250)|-|(183,250)|
|**Total net assets at 30June 2023**|**358,342**|**67,188**|**425,530**|
|**Total net assets at 30June 2022**|**435,550**|**18,592**|**454,142**|
21 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Notes to financial statements (continued)
## 12. Limited liability
The liability of each Trustee is limited. Every member of the company undertakes to contribute a sum not exceeding one pound to the assets of the company if it is wound up.
## 13. Related party transactions
As a corporate supporter of IIRSM, Barnett Waddingham LLP paid £11,000 (2023: £9,500) of which Karla Gahan is an executive director.
As a corporate supporter of IIRSM, MeiraGTx UKII Limited paid £5,149 (2023: £5,400) of which Rosie Russell is an executive director.
As a corporate supporter, the company sponsors the charity’s activities in exchange for branding opportunities and access to knowledge products. Any money that belongs to the next financial year has been deferred and will remain on the balance sheet.
During the year 2 (2023: 6) Trustees paid to be members of IIRSM these membership subscriptions totalled £298 (2023: £1,123) and were made on an arm’s length basis at the open market value.
22 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Independent Auditor’s report
## **Opinion**
We have audited the financial statements of International Institute of Risk and Safety Management (‘the company’) for the year ended 30 June 2024 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and Notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable in law and United Kingdom Accounting Standards, including FRS 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:
- give a true and fair view of the state of the charitable company’s affairs as at 30 June 2024 and of its incoming resources and application of resources, including its income and expenditure, 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 Companies Act 2006.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to 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 evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
significant doubt on the charitable company’s ability to continue as a going concern for a period of at least 12 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 other information comprises that included in the annual report, other than the financial statements and our auditor’s report thereon. The Trustees are responsible for the other information contained within the annual report. 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.
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 course of 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 themselves. 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.
## **Opinions on other matters prescribed by the Companies Act 2006**
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Trustees’ annual report has been prepared in accordance with applicable legal requirements.
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
23 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Independent Auditor’s report (continued)
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ annual report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us;
- the financial statements are not in agreement with the accounting records and returns;
- certain disclosures of Trustees’ remuneration specified by law are not made;
- we have not received all the information and explanations we require for our audit; or
- the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the Trustees’ annual report and from preparing a strategic report.
## **Responsibilities of Trustees**
As explained more fully in the Trustees’ responsibilities statement set out on page 6, the Trustees (who are also the directors of the charitable company for the purposes of company law) are 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 preparing the financial statements, the Trustees are responsible for assessing the charitable company’s ability 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 charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable 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 aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Trustees.
- Conclude on the appropriateness of the Trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion.
24 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
## Independent Auditor’s report (continued)
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of noncompliance 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.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company. Our approach was as follows:
- We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council.
- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
## **Use of our report**
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state 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 any party other than the charitable company and charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
## Moswe Kingshn Salts UP Luke Holt (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP, Statutory Auditor
9 Appold Street, London EC2A 2AP
20 December 2024
25 Trustees’ Annual Report and Financial Statements for the year ended 30 June 2024
iirsm
INTERNATIONAL INSTITUTE OF
RISK AND SAFETY MANAGEMENT
Suite 107-108
150 Minories
London
EC3N 1 LS