**Annual Report and Accounts For the Year Ended 31 March 2023**
||**Page**|
|---|---|
|Report of the Board of Trustees|2 – 16|
|Report of the Independent Auditors|17 – 20|
|Statement of Financial Activities|21|
|Balance Sheet|22|
|Statement of Cash Flows|23|
|Notes of the Financial Statements|24 – 38|
1
## **INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees**
for the year ended 31[st] March 2023
|**REGISTERED COMPANY**|**NUMBER:**|05201058|
|---|---|---|
|**REGISTERED CHARITY NUMBER (England and Wales):**||1108380|
|**REGISTERED CHARITY NUMBER (Scotland)**:||SC039336|
|**BOARD OF DIRECTORS:**|
Nicholas Boyes ACR (elected 1.12.22)||
||Richard Bruce||
||Duygu Çamurcuoğlu ACR (term ended 1.12.22)||
||Diana Davis ACR||
||Louise Davison||
||Lorraine Finch ACR (term ended 1.12.22)||
||Claire Fry ACR (re-elected 1.12.22)||
||Frances Graupner (term ended 1.12.22)||
||James Grierson, Chair (term ended 1.12.22)||
||Melanie Houston ACR (term ended 1.12.22)||
||Martin Kirke (term ended 1.12.22)||
||Adam Klups FIIC (term ended 1.12.22)||
||Charles Morse (appointed 1.12.22)||
||James Murphy||
||Anita Quye (elected 1.12.22)||
||Michelle Rheeston (elected 1.12.22)||
||Mark Ross (appointed 1.12.22)||
||Sophie Rowe ACR, Vice-Chair and Interim|Chair from 1.12.22|
||Michelle Stoddart||
||Pierrette Squires ACR (term ended 1.12.22)||
||Emma Chaplin (appointed 22.03.23 to take up role on 01.04.23)||
|**EXECUTIVE OFFICERS:**|Sara Crofts, Chief Executive||
||Simon Green, Company Secretary (until 12.7.22)||
|**REGISTERED OFFICE:**|106-109 Saffron Hill
**WEBSITE:**|www.icon.org.uk|
||London EC1N 8QS||
|**BANKERS:**|Unity Trust Bank plc||
||4 Brindleyplace||
||Birmingham||
||B1 2JB||
|**SOLICITORS:**|Mills & Reeve LLP
**AUDITORS:**|Haysmacintyre LLP|
||1 City Square|10 Queen Street Place|
||Leeds LS1 2ES|London EC4R 1AG|
|**ACCOUNTANTS:**|JS2 Limited||
||One Crown Square||
||Church Street East||
||Woking||
||GU21 6HR||
2
**Report of the Board of Trustees (Continued)** for the year ended 31[st] March 2023
## **INSTITUTE OF CONSERVATION**
The Board of Trustees presents its report and audited financial statements for the year ended 31[st] March 2023.
Icon (the Institute of Conservation) is a charitable company working to safeguard cultural heritage. Icon is also the professional membership body for the conservation profession.
**Icon’s vision** is to protect, preserve and promote our treasured cultural heritage through cultivating skilled conservation professionals, supporting meaningful collaboration across the cultural heritage sector, and delivering public benefit through engagement and advocacy.
**Icon’s mission** is to represent and support the practice and profession of conservation by promoting the public value of caring for cultural heritage and upholding high standards and ethics in conservation practice. Icon ensures that the guardians and owners of objects, buildings and collections can access knowledgeable and passionate professionals who will help them safeguard the physical remains of our past for the future.
## **These values underpin all our activities:**
- Work with integrity: we are open and honest and do what we believe is best for our shared cultural heritage, the public and our members
- Be inclusive: we value diversity and ensure that opportunities are open to all those who want to care for our heritage
- Be forward and outward-looking: we keep our eyes on the horizon and on the world around us
- Be ambitious advocates: both for our organisation and the things we believe in
- Be collaborative and generous: we work with our members and partners to achieve the best results together
- Uphold high standards: we value, support and promote the expertise and professionalism of our members and partners
## **OBJECTS AND ACTIVITIES FOR PUBLIC BENEFIT**
## **The Charitable Objects of Icon are:**
- To advance the education of the public by research into and the promotion of the conservation of items and collections of items of cultural, aesthetic, historic and scientific value and
- To preserve and conserve items and collections of items of cultural, aesthetic, historic and scientific value.
The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing their aims and objectives and in planning Icon’s future activities.
3
**INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees (Continued)**
for the year ended 31[st] March 2023
## **STRATEGIC OBJECTIVES 2022-2023**
Icon published a new Strategy in April 2022 after a year of consultation and development. There are five key objectives in the new Strategy:
1. Champion cultural heritage and the value of conservation
2. Extend our reach within the UK and internationally
3. Maintain high standards in conservation practice
4. Develop conservation as an inclusive and rewarding career
5. Strengthen our Institute
The following operational priorities for the financial year 2022-2023 were agreed by the Board of Trustees on 14[th] June 2022.
Key achievements for the year 2022-2023 are summarised in the table on the following pages.
Further information about our activities and their impact can be found on the Icon website at https://www.icon.org.uk/resource/icon-impact-report-2022-2023.html.
4
## **INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees**
for the year ended 31[st] March 2023
|**Objective**|**Activity / Priority**|**Outcomes / Outputs**|
|---|---|---|
|Champion cultural
heritage and the
value of conservation|Campaign – Heritage
Open Days|•Worked with Heritage Open Days staff and Icon members to set up
“Conservation Stations”
•Delivered four events introducing people to conservation and promoting Icon
•Published “Introducing Icon: the expert care and repair shop” on the Heritage
Open Days blog|
||Marsh Awards|•Developed a programme of three annual awards to celebrate people who have
maderemarkable contributions to the profession|
||Policy activity|•The_Conservation, People and Communities_briefing was revised and
republished
•Sara Crofts was interviewed by the research team working on the new_Culture_
_Strategy for Wales_
•Sara Crofts joined the project board for Research Infrastructure for
Conservation and Heritage Science (RICHeS) – an AHRC-led project
•Icon supported the “World Class Heritage, Second Class Pay” campaign led by
Prospect
•Patrick Whife co-chaired the Historic Environment Forum’s_Client Demand Task_
_Group_
•Icon collaborated effectively with heritage sector colleagues to draw attention to
the threat to cultural heritage posed by the war in Ukraine|
||Media profile|•Sara Crofts was interviewed in Historic Houses magazine: “_Revelation,_
_apocalypse and resurrection_”
•Sara Crofts was interviewed by_Homes & Antiques_for an article on conservation
versus restoration|
5
## **INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees (Continued)**
for the year ended 31[st] March 2023
|||•Sara Crofts wrote a well-received blog on the topic of “_Heritage in 20 years:_
_what will matter most_?” for the Heritage Alliance|
|---|---|---|
|Extend our reach
within the UK and
internationally|Historic Houses Parks
and Gardens Event|•Hosted a stand at the high-profile Historic Houses Parks and Gardens Event
•Introduced Icon to a new audience and raised theprofile of Accreditation|
||Enhanced social media
strategy|•Developed a data-based strategy for social media to maximise our reach and
engagement in the UK and internationally
•A large percentage of our audience on Instagram and Facebook is now
international|
||Annual Lecture 2022|•The Annual Lecture –_It’s Just a Dress_– was inspired by a popular media story
and generated a lot of engagement. The marketing campaign attracted young
and international audiences|
||Tru Vue grant programme|•Offered internationally for the first time
•Icon received 14 applications from a wide geographical spread – all continents
were represented
•7 grants were awarded in the UK and internationally|
||Engagement with
students|•Delivered a programme of events to engage new and returning students in
autumn 2022 – including panel events focused on career development and
providing opportunities for students to develop their professional networks
•Engaged with conservation higher education institutions to build support for the
campaign and encourage student participation in Icon activities|
6
## **INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees (Continued)**
for the year ended 31[st] March 2023
|Maintain high
standards in
conservation practice|Conservation Policy
Forum|•Icon set up a new policy forum for senior conservation staff working in large
organisations
•Two meetings were held in 2022-23 covering topics such as skills and
environmental sustainability|
|---|---|---|
||Environmental
sustainability|•Icon initiated discussions with the profession about the usefulness of fixed
specifications for environmental conditions which led to an invitation to join the
ACE review group considering the environmental parameters in the
Government Indemnity Scheme
•Offered input into Historic England’s Sector to Net Zero project (Climate Change
Programme)
•Co-created a workshop at the Museums Association conference in December
2022|
||Increasing numbers
applying for Icon
Accreditation|•32 applications received
•23 members awarded Icon Accreditation|
||Expand skills events
programme|•Delivered 18 events including: business skills; leadership; writing persuasively;
and health and safety
•Events were attended by 1,186 delegates|
||Group and Network
events|•50 Group and Network events
•Mixture of online and in-person activities
•A variety of international speakers|
|Develop conservation
as an inclusive and
rewarding career|Apprenticeships|•Successful Ofqual registration means that Icon is now able to deliver End Point
Assessment for four heritage apprenticeship standards.|
||Conservators’ salaries|• Labour Market Intelligence report published
• Conservators’Salaries report published
•Publishedrevised guidelinesrelating to conservators pay andremuneration|
7
## **INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees (Continued)**
for the year ended 31[st] March 2023
|||•Supported the production of Prospect’s “World Class Heritage, Second Class
Pay”report|
|---|---|---|
||Careers advice|•Continued to promote the_Inspiring the Future_programme
•Sara Crofts participated in the panel of the_Women in Heritage: Education and_
_Career Opportunities_webinar hosted byEuropa Nostra|
||Industrial heritage skills|•Successful application to the National Lottery Heritage Fund’s Heritage
Innovation Fund for a project to investigate shortages in industrial heritage
conservation skills|
|Strengthen our
Institute|Environmental
responsibility|•Icon Sustainability Network hosted two Twitter conferences, delivered various
CPD events and published a social media campaign during COP27|
||Financial resilience|•Appointed a business development consultant with a focus on seeking
sponsorship and building commercial partnerships|
||Facilitating member
activity|•Set up three project groups on the Basecamp platform to support member
efforts to collaborate on providing emergency guidance to conservators working
inUkraine, arrange the shipment of materials, and supportrefugees.|
||Member engagement|•Ran a regular programme of ‘drop in’ sessions to allow members to meet and
share ideas with the Chief Executive
•Launched a redeveloped member magazine with a stronger focus on the
positive impact of conservation and the aim of increasing recognition of the
value of the profession
•Published the first Conservation Register Annual Report, setting out quantitative
results of marketing campaigns and the diversity of specialist conservator skills
searched for by users
•Delivered 3 ‘Marketing Tips and Tricks’ webinars to support ACRs to showcase
their work effectively in their Upgraded Listings on the Conservation Register|
8
## **INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees (Continued)**
for the year ended 31[st] March 2023
## **STRUCTURE, GOVERNANCE AND MANAGEMENT**
## **Governing document**
The Institute of Conservation (“Icon”) is registered as a Charity in England and Wales (Number 1108380) and in Scotland (Number SC039336). The Institute of Conservation is a Company Limited by Guarantee, Number 05201058, and is governed by its _Articles & Memorandum of Association_ which were approved and adopted by the Members at the Annual General Meeting on 1[st] December 2014 and amended at a General Meeting held on 27[th] August 2020.
## **Recruitment, appointment, induction, and training of Trustees**
The Trustees are responsible for setting the strategic direction of Icon and for agreeing and reviewing annual priorities. Trustees also take decisions on all strategic matters and are responsible for the sound financial management of the charity, although they have delegated the day-to-day running of the Charity to the Chief Executive, supported by the Management Team. All Trustees are also Directors of the Limited Company.
The Trustees held five meetings during the year including an in-person “away day” in January 2023.
The Trustees are volunteers and receive no remuneration apart from travel and subsistence expenses associated with the activities they undertake for Icon. Most Trustees are elected from and by Icon’s membership, serving a term of three years. The Board can also co-opt Trustees to fill gaps in the Board’s skills, knowledge and experience.
On 31[st] March 2023 there were 12 members of the Board of Trustees who had served as trustees during the year. Emma Chaplin was appointed as a trustee at the trustee meeting on 22[nd] March to take up her role from 1[st] April 2023. 8 trustees were elected by the membership and 4 were coopted by the Board. Of the 8 elected seats 1 (Scotland) is a reserved nation seat and 1 is a reserved seat for an emerging professional member. At present there is no one in the reserved seat for Northern Ireland or Wales. Elections are held once a year through an online portal.
Icon provides a trustee induction pack, which includes information on the role and conduct of charity trustees, to all members of the Board when they take office. All new Trustees are also invited to attend an induction workshop; other training opportunities are provided throughout the year.
During the year James Grierson made the decision not to accept the invitation to stand for a second term as the Chair of the Board of Trustees. Vice Chair Sophie Rowe therefore took over as interim Chair for the period between the AGM and the end of the financial year. Staff and trustees are very grateful to her for taking on this task. The Board also convened a task and finish group to undertake the open recruitment of a new Chair. Adverts were placed in a number of sector publications and websites and Emma Chaplin was invited to take up the role from 1[st] April 2023.
The Nominations Committee also arranged a recruitment round for two co-opted Trustees as Frances Graupner and Martin Kirke stood down at the AGM. Icon received a large number of applications. The shortlisting and interview process concluded with the appointment of Mark Ross and Charles Morse.
9
## **INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees (Continued)**
for the year ended 31[st] March 2023
## **Board Committee Structure and Members**
The following table sets out the structure and membership of the four Board committees. Trustees are noted in **bold type.**
|**Finance (FC)**|**Professional**
**Standards and**
**Development (PSD)**|**Nominations**|**Remuneration**|
|---|---|---|---|
|Receives quarterly
Management Accounts
and oversees the
preparation of the
Trustees’ Annual
Report, budget setting,
the appointment of the
Auditors and major
project expenditure|Oversees and advises on
policy development and
implementation of
conservation related
professional standards,
training and education
and research|Identifies and interviews
candidates for
appointment as Co-
opted Trustees or as
Chair of the Board of
Trustees and
recommends to the
Board which candidates
should be appointed|Considers proposals for
cost-of-living
adjustments and staff
remuneration, and
makes
recommendations to
the Board|
|**Richard Bruce FCA,**
**Chair**|**Mel Houston ACR**
**Chair**_(until Nov ‘22)_|**Martin Kirke, Chair**
_(until Nov ‘22)_|**James Grierson, Chair**
_(until Nov ‘22)_|
|**Claire Fry ACR**|**Diana Davis ACR,**
**Chair**_(from Nov ‘22)_|Helen Ganiaris ACR|**Sophie Rowe ACR**|
|Rebecca Hellen ACR|**Duygu Çamurcuoğlu**
**ACR**_(until Dec ’22)_|**Adam Klups**
_(until Dec ’22)_|**Richard Bruce FCA**|
|**James Murphy**|Flora Davidson|**Louise Davison**||
|**Michelle Stoddart**|**Lorraine Finch ACR**
_(until Dec ’22)_|||
||Laura Lewis-Davies|||
||**Sophie Rowe ACR**|||
||Karen Thompson ACR|||
The Board and its committees are supported by the following:
- Group and Network Chairs Forum (reporting to the Board via the Chair of Trustees) – chaired by James Grierson
- Accreditation Committee (reporting to PSD) – chaired by Sarah Peek ACR
- Editorial Advisory Panel (reporting to PSD) – chaired by Jonathan Kemp, Editor of the Journal
- • Conferences Committee (reporting to the Board) – chaired by Rebecca Ellison ACR
In addition, the Board sets up working groups to deliver self-contained and time-limited projects as needed. The following groups were active during the year:
- Membership Working Group – chaired by Michael Nelles
- Chartership Scoping Group – chaired by Simon Cane ACR
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**INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees (Continued)**
for the year ended 31[st] March 2023
## **Volunteers**
Icon’s capacity to deliver its objectives is greatly enhanced by the many members who give their time to contribute to the organisation’s work. In 2022-23, Icon was supported by more than 475 volunteers. In addition to the various committee and working group roles undertaken by volunteers, Icon members also support the delivery of Icon’s Accreditation framework, acting as CPD readers, Pathway mentors and Accreditation assessors. It would not be possible to deliver Icon’s Accreditation programme without their support.
All of Icon’s Special Interest Groups and Networks are run entirely by volunteers.
It is estimated that Icon’s volunteers contribute in excess of £260,000 of in-kind support each year, calculated at a professional day-rate. The Board of Trustees is deeply grateful for the combined efforts of all the Icon members who give their time and talents in support of their profession.
## **Membership**
A substantial proportion of Icon’s operating revenue comes from membership subscriptions.
Icon had 2,335 members on 31[st] March 2023 (2022: 2,397), of whom approximately 18% live outside the UK. Members are the heart of Icon and during the reporting period Icon’s membership team kept up an active marketing and recruitment programme to entice new members into the organisation.
Icon’s Special Interest Groups mostly focus on areas of subject expertise, and are led by voluntary committees with designated officers and financial accountability. There are currently 16 groups: Archaeology; Book & Paper; Care of Collections; Ceramics & Glass; Ethnography; Furniture & Wooden Objects; Gilding & Decorative Surfaces; Historic Interiors; Metals; Paintings; Photographic Materials; Science; Scotland; Stained Glass; Stone & Wall Paintings; and Textiles. The Care of Collections Group is the largest, with 1,580 subscribing members. Smallest is the Stained Glass Group, with 367 subscribers.
Icon Networks are looser affiliations with less formal structures. Current active Icon Networks are: Dynamic Objects, Contemporary Art, Conservation Documentation, Emerging Professionals, Modern Materials, Sustainability, Pest Odyssey and Conservation Higher Education Institutions. Towards the end of the reporting period, Icon conducted a review of the network model. Member survey data indicated a perception that Networks operate like Groups; the distinction between Groups and Networks was also poorly understood externally. From an operational standpoint there is a benefit in standardising governance and budgeting processes across the two models. Accordingly, Icon’s Board of Trustees agreed that all Icon Networks should become Groups, operating under the same terms of reference and management regulations from April 2024 onwards. This allows a transition year during which Network committees can become familiar with Group regulations and processes.
Activity levels between individual Groups and Networks vary in any given year, but all contribute to the overall programme by delivering an extensive array of networking and training opportunities for Icon members. Formats range from workshops and conferences to lectures and talks. Groups and Networks have also hosted short courses, panel debates, gallery tours and symposia.
11
**INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees (Continued)**
for the year ended 31[st] March 2023
## **Skills (Internships, training and events)**
The Icon Skills Events programme was expanded, with over 500 members participating in a range of events designed to support the development of work-related professional skills. The training opportunities included: grant writing; writing for publication; personal gravitas and influence; health and safety for conservators; alongside a range of business skills topics.
There was a growth in the number of emerging professionals taking part in the Icon Internship Programme this year. Nine interns took part, including placements at Bainbridge Conservation (Furniture), Barley Studio (Stained Glass), Bodleian / Oxford Conservation Consortium (Book and Paper)*, English Heritage (Preventive), English Heritage (Preventive), Imperial War Museum (Digital Media)*, Industrial Museums Scotland (Industrial Conservation), National Museums Liverpool (Preventive), and National Trust for Scotland (Care of Collections and Historic Interiors)
* _Supported by the Clare Hampson Fund._
Work began on the development of Icon’s new Skills Strategy. Our skills strategy builds on Icon’s 2022 Labour Market Intelligence research and has been developed alongside consultation with Icon members, education providers and other key stakeholders across the heritage sector. The strategy will set out Icon’s commitment to supporting the continued development of a dynamic and resilient conservation workforce in support of our strategic objective to ensure that conservators’ work is valued and recognised. We also want to ensure that conservation professionals have fulfilling and rewarding careers.
## **Accreditation**
Icon Accreditation applications remained steady, with 32 new applications being received and 23 members being awarded Icon Accreditation over the course of the year. We continue to focus our efforts on increasing the number individuals coming forward for assessment and providing direct support to members as they navigate the application and assessment process.
A formal review of the Icon Accreditation Application and Assessment Process was also completed. The purpose of the review was to ensure that the process is accessible and is able to deliver consistent, high-quality assessments in an effective and efficient manner. The new assessment model was approved by Icon’s Professional Standards and Development Committee in March 2023, and will be implemented in 2023/24.
## **Publications**
Three issues of the peer reviewed Journal of the Institute of Conservation edited by Dr Jonathan Kemp and published by _Routledge Journals_ were produced in June 2022 (Vol 45, no 2), October 2022 (Vol 45, no 3) and February 2023 (Vol 46, no 1). The _Journals_ are all available online and in a printed version which is posted to members.
Meanwhile, four issues of Icon News (Nos. 99-102) edited by Lynette Gill were published by Icon during the reporting period – including the milestone 100[th] issue of the publication, which appeared
12
## **INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees (Continued)**
for the year ended 31[st] March 2023
in June 2022. The full library of _Icon News_ editions is available in the resources section of the Icon website.
In early 2022 we decided that the members’ magazine needed a full refresh to better-serve Icon’s new strategic objectives, and to ensure it remains relevant for advertisers, members and potential members. The brief for the redevelopment project was based on extensive research and user survey data, and redefined the magazine’s title, purpose, frequency, target audiences and scope for website integration.
After a competitive tendering process, communications agency CenturyOne were selected to deliver Icon’s member magazine. Edited by Karen Young, the first issue of the new _Iconnect Magazine_ (No. 1) was published in January 2023. The magazine is available online and in a printed version posted to Icon members.
## **Code of Conduct and Complaints**
There were no complaints made during the reporting period.
## **Looking to the future**
The new Icon Strategy was launched in April 2022. The following operational priorities for the financial year 2023-2024 were agreed by the Board of Trustees on 22[nd] March 2023.
13
**INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees (Continued)**
for the year ended 31[st] March 2023
## **Principal risks and uncertainties**
Icon maintains a detailed risk register which is updated quarterly by the Chief Executive and reviewed by the Board of Trustees. We also have a _Governance Handbook_ , which contains Icon’s regulatory and operating policies and a _Staff Handbook_ . All policies and procedures are regularly reviewed and updated, and members of the Management Team undertake regular training on relevant governance and compliance-related topics.
Cyber security has also been a key training topic for all staff this year as the risk of cyber attack continues to a very serious concern for all charitable organisations. Icon’s most vulnerable digital asset is our membership database. If this was compromised valuable membership data could be lost, stolen or damaged, which would have serious repercussions. To mitigate this, the Chief Executive carried out a full review of operational IT systems supported by AirIT, Icon’s out-sourced IT provider. As a result, several cyber security services were upgraded and a new back-up system for Office365 was installed. We have also switched to Mimecast, an industry leader, for our anti-spam protection. In addition, we embarked on the government-backed Cyber Essentials assessment process at the end of the calendar year. Working through this framework has suggested further areas of improvement which are now being implemented.
In terms of uncertainties, the biggest question is always what will happen to our membership numbers. The financial pressures in the second half of 2022 were considerable, and the Board of Trustees had to think very seriously about the impact of the cost-of-living crisis on our members as well as the impact of inflation and rising costs for the organisation. Having considered the issue in detail, the Board took the decision to raise membership fees by an average of 6% for 2023-24. We hope that this will not have a negative impact on our retention figures, but the outcome will not be known until the summer of 2023. In the meantime, the Board agreed that Icon’s key priority is growing the membership base and encouraging more people to pursue accreditation. Our view is that the key to long term financial sustainability is to reach a membership figure closer to 3,000. This is a high target, but with a renewed focus on membership marketing we hope that it is achievable.
## **FINANCIAL REVIEW AND RESULTS FOR THE YEAR**
The statement of financial activities on page 21 shows a deficit in unrestricted activities after transfers of £50,849 (2022: surplus of £82,693), a deficit on the expendable endowment of £12,488 (2022: deficit of £22,531) and a surplus on restricted activities of £17,917 (2022: surplus of £15,945).
## **Reserves Statement**
At the 31[st] March 2023 Icon had total reserves of £332,771 (2022: £378,191). These included restricted funds which are not available for the general purposes of the charity of £82,515 (2022: £64,598) and an Expendable Endowment of £22,564 (2022: £35,052). This is the Clare Hampson Fund, a bequest set up with the intention of supporting studies in paper conservation. The restricted funds would mostly be expended before 31[st] March 2024 although they are likely to be replaced at least to some extent. The Endowment is likely to last until mid-2025 but this could vary up or down. Designated funds of £44,437 (2022: £69,073) represent the net book value of the capital database project and will be utilised over the life of the asset. The unrestricted reserves were £183,255 (2022: £209,468) and these can be used at the Trustees’ entire discretion. As the reserves are all held in bank accounts, there would be no need to realise tangible assets to release funds.
14
## **INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees (Continued)**
for the year ended 31[st] March 2023
Icon retains reserves for four main reasons:
- 1 to cover financial risks to which the charity is exposed in the course of its business including income shortfall, cash flow volatility, unplanned expenditure and managed contraction;
- 2 to enable annual planning and budgeting with a degree of flexibility and contingency;
- 3 to finance future plans and provide capacity for planned growth in line with Icon’s strategy and 4 to provide the ability to take advantage of change and opportunities, identified and agreed by senior management and Trustees.
The Trustees consider that in order to meet these needs, Icon should hold free reserves equivalent to no less than six months' unrestricted expenditure (approximately £415,000 at 31st March 2023 based on the 2023-24 budget).
The current level of free reserves, excluding the designated fund and expendable endowment, is £183,255 at 31[st] March 2023 and is therefore below the overall level set by Trustees. Accordingly, Icon management and Trustees will continue to monitor finances with the aim of achieving an unrestricted fund surplus being generated in each financial year until the six-months’ target has been met. The Trustees recognise that this represents a significant challenge in the current economic environment in the heritage sector.
The Board of Trustees will review this policy annually. Any substantial call on, or contribution to, reserves will be reported to Trustees.
## **Investment Policy**
The Trustees consider that it is appropriate that the majority of the funds are invested in interest earning reserve accounts and that no funds are invested in either equities or bonds. The Board of Trustees reviews this policy annually.
## **Staff Remuneration**
The pay of all staff is reviewed annually according to Icon’s Pay Policy to determine cost of living adjustments and whether any individual increases are warranted. In view of the nature of the charity, the Trustees benchmark from time to time against pay levels in other similar organisations. The remuneration bench-mark is the median of the range paid for similar roles in similar organisations.
## **Fundraising Policy**
Icon does not engage in large scale public fundraising and does not use professional fundraisers or commercial participators. We are unaware of any non-compliance with any regulations and codes and the charity has received no complaints relating to its fundraising practice during the year nor in any prior year.
## **Statement of Trustees' Responsibilities**
Company Law requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Institute at the end of the financial year and its surplus and deficit for the financial year.
15
## **INSTITUTE OF CONSERVATION**
## **Report of the Board of Trustees (Continued)**
for the year ended 31[st] March 2023
In doing so, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the principles and methods of the Charities SORP;
- make judgments and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the basis of a going concern unless it is inappropriate to presume that the company will continue in business
The Trustees are responsible for maintaining adequate accounting records which disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Financial statements are published on the charity's website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity's website is the responsibility of the Trustees. The Trustees' responsibility also extends to the ongoing integrity of the financial statements contained therein.
Each of the Trustees at the date of approval of this report confirms that:
- 1) so far as the Trustee is aware, there is no relevant audit information of which the company’s Auditors are unaware; and
- 2) the Trustee has taken all the steps that s/he ought to have taken as a Trustee to make herself/himself aware of any relevant audit information and to establish that the company’s Auditors are aware of that information.
This confirmation is given and should be interpreted in accordance with the Companies Act 2006.
This report was approved by the Board of Trustees on 27[th] September 2023 and signed on their behalf.
………………………………………
## **Emma Chaplin, Chair**
16
## **INSTITUTE OF CONSERVATION**
## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES AND MEMBERS OF INSTITUTE OF CONSERVATION**
## **Independent auditor’s report to the members and trustees of Institute of Conservation**
## **Opinion**
We have audited the financial statements of Institute of Conservation for the year ended 31 March 2023 which comprise Statement of Financial Activities, Balance Sheet, Statement of Cash Flows, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- give a true and fair view of the state of the charitable company’s affairs as at 31 March 2023 and of the charitable company’s net movement in funds, including the 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 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 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 charity 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.
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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ 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.
17
## **INSTITUTE OF CONSERVATION**
## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES AND MEMBERS OF INSTITUTE OF CONSERVATION (CONTINUED)**
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
## **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’ Annual Report (which includes the strategic report and the directors’ report prepared for the purposes of company law) for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report included within the Trustees’ Annual Report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report (which incorporates the strategic report and the directors’ report).
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charity Accounts (Scotland) Regulations (as amended) require us to report to you if, in our opinion:
- adequate accounting records have not been kept by the charitable company; or
- the charitable company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of trustees’ remuneration specified by law are not made; or
- 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’ exemptions in preparing the trustees’ report and from the requirement to prepare a strategic report.
## **Responsibilities of trustees for the financial statements**
As explained more fully in the trustees’ responsibilities statement set out on page 15-16, 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.
18
## **INSTITUTE OF CONSERVATION**
## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES AND MEMBERS OF INSTITUTE OF CONSERVATION (CONTINUED)**
## **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 the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Based on our understanding of the charitable company and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011, Companies Act 2006, Charities and Trustee Investment (Scotland) Act 2005, regulations of the Charity Commission and OSCR and GDPR and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, Charities Act 2011, Charities Accounts (Scotland) Regulations 2006 and provisions of the Charities SORP.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in certain accounting estimates and judgements. Audit procedures performed by the engagement team included:
- Inspecting correspondence with regulators and tax authorities;
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Evaluating management’s controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual or no 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 detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, 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, as 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 Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
19
## **INSTITUTE OF CONSERVATION**
## **INDEPENDENT AUDITORS’ REPORT TO THE TRUSTEES AND MEMBERS OF INSTITUTE OF CONSERVATION (CONTINUED)**
## **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, section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable 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 anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Kathryn Burton (Senior Statutory Auditor) For and on behalf of Haysmacintyre LLP, Statutory Auditors Date: 17th October 2023
10 Queen Street Place London EC4R 1AG
20
## **INSTITUTE OF CONSERVATION**
## **STATEMENT OF FINANCIAL ACTIVITIES**
**(incorporating the income and expenditure account)** for the year ended 31[st] March 2023
|**Note Unrestricted**
**Funds**
**Restricted**
**Funds**
**Expendable**
**Endowment**
**2023**
**2023**
**2023**
**Income from**
**£**
**£**
**£**
**_Donations, Legacies & Grants_**
Donations & Grants
2
2,498
36,205
-
**_Charitable Activities_**
Champion cultural heritage
23,823
-
-
Extend our reach
52,120
-
-
Maintain high standards
63,113
-
-
Develop conservation careers
93,971
-
-
Membership Services
376,447
-
-
**_Other Trading Activities_**
Advertising Income
30,285
-
-
Sponsorship
13,985
-
-
**_Investments_**
Bank Interest
3,229
______-
____372
**Total Income**
659,471
36,205
372
____________
____________
____________
**Expenditure on**
**_Charitable_ ****_Activities_**
Champion cultural heritage
134,967
-
-
Extend our reach
79,357
-
-
Maintain high standards
182,800
11,517
-
Develop conservation careers
90,134
4,467
12,860
Membership Services
184,108
-
-
Strengthen our Institute
37,454
3,804
-
**Total Expenditure**
5
708,820
19,788
12,860
**Net Income (expenditure)**
(49,349)
16,417
(12,488)
Transfer of Funds
(1,500)
1,500
-
**Net Movement in Funds**
(50,849)
17,917
(12,488)
**Brought Forward Funds at 1 April 2022**
278,541
_______
64,598
_______
35,052
_______
**Carried Forward Funds at 31 March 2023**
227,692
82,515
22,564
________
________
________|**Total**
**Funds**
**2023**
**£**
38,703
23,823
52,120
63,113
93,971
376,447
30,285
13,985
__3,601
696,048
____________
134,967
79,357
194,317
107,461
184,108
41,258
741,468
(45,420)
-
(45,420)
378,191
_______
332,771
________|**Total**
**Funds**
**2022**
**£**
95,336
36,574
53,636
108,710
90,207
344,947
41,490
9,978
__1,344
782,222
____________
136,681
80,679
191,967
141,644
148,185
38,849
738,005
44,217
-
44,217
333,974
_______
378,191
________|
|---|---|---|
The notes on pages 24 – 38 form an integral part of these financial statements. All transactions are derived from continuing activities. All recognised gains and losses are included in the Statement of Financial Activities. Full comparative figures for the year ended 31 March 2022 are shown in note 14.
21
**Company Number: 05201058**
## **INSTITUTE OF CONSERVATION**
## **BALANCE SHEET**
as at 31[st] March 2023
||||**2023**|**2022**|
|---|---|---|---|---|
||**Note**|**£**|**£**|**£**|
|**FIXED ASSETS**|||||
|Tangible Assets|6||3,374|4,443|
|Intangible Assets|7||80,554|106,493|
|**CURRENT ASSETS**|||||
|Debtors|8|102,730||78,329|
|Cash at Bank and in Hand||295,212||427,622|
|||________||________|
|||397,942||505,951|
|**CREDITORS**- Amounts|||||
|Falling Due Within One Year|9|(149,099)||(238,696)|
|||________||________|
|**NET CURRENT ASSETS**|||248,843|267,255|
||||________|________|
|**NET ASSETS**|10||332,771|378,191|
||||________|________|
|**FUNDS**|||||
|**Restricted Funds**|||82,515|64,598|
|**Unrestricted Funds**|||||
|General Unrestricted Funds||183,255||209,468|
|Designated Funds||44,437||69,073|
|Expendable Endowment||22,564||35,052|
|||____________||____________|
||||250,256|313,593|
||||________|________|
||10||332,771
_______|378,191
________|
These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small entities.
These Financial Statements were approved and authorised for issue by the Board of Trustees on 27th September 2023 and signed on its behalf by:-
………………………………
**Emma Chaplin, Chair**
22
The notes on pages 24 - 38 form an integral part of these financial statements.
23
## **INSTITUTE OF CONSERVATION**
## **STATEMENT OF CASH FLOWS**
for the year ended 31[st] March 2023
||||**2023**|||**2022**|**2022**||
|---|---|---|---|---|---|---|---|---|
||**Note**|**£**||**£**||**£**|**£**||
|**Cash flows from operating activities:**|||||||||
|**_Net income/(expenditure) for the year_**||(45,420)||||44,217|||
|Adjustments for:|||||||||
|Depreciation and Amortisation charges|6 & 7|30,695||||29,861|||
|Dividends & interest||(3,601)||||(1,344)|||
|Loss on disposal of fixed assets||-||||896|||
|(Increase)/Decrease in debtors|8|(24,401)||||27,416|||
|Increase/(decrease) in creditors|9|(89,597)||||75,447|||
|||________||||________|||
|**Net cash provided by operating**|||||||||
|**activities:**||||(132,324)|||176,493||
|**Cash flows from investing activities:**|||||||||
|Purchase of intangible fixed assets|6 & 7|(3,687)||||(25,850)|||
|Dividends & interest||3,601||||1,344|||
|||________||||________|||
|**Net cash provided by (used in)**|||||(86)||(24,506)||
|**investing activities:**|||||||||
||||________||||________||
|**Decrease in cash and cash equivalents**|||||||||
|**in the year**||||(132,410)|||151,987||
|**Net cash and cash equivalents at the**|||||||||
|**start of the year**||||427,622|||275,635||
||||________||||________||
|**Net cash and cash equivalents at the**|||||||||
|**end of the year**||||295,212|||427,622||
||||________||||________||
|**Analysis of changes in net debt**|||**Balance at**|||**Cash flows**|**Balance**|**at 31**|
||||**1**|**April**|**2022**||**March**|**2023**|
||||||**£**|**£**||**£**|
|Cash at bank and In hand||||427,622||(132,410)|295,212||
||||________|||________|________||
||||427,622
________|||(132,410)
________|295,212
________||
24
## **INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS**
for the year ended 31[st] March 2023
## **1. ACCOUNTING POLICIES**
## a) **Statement of Compliance**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: 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 (FRS 102) (Second Edition, effective 1[st] January 2019) - (Charities SORP (FRS 102)), and the Companies Act 2006. The Institute of Conservation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
## **General Information**
The Charity is a private company limited by guarantee without share capital, incorporated in England & Wales (company number 05201058), a Charity registered in England and Wales (Charity number: 1108380) and a Charity registered in Scotland (Charity number: SC039336). The registered office is listed on page 2.
## **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 charity 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 charity’s forecasts and projections and have taken account of pressures on donation and investment income. After making enquiries the Trustees have concluded that there is a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. The charity therefore continues to adopt the going concern basis in preparing its financial statements.
## b) **Fund Accounting**
General unrestricted funds comprise surpluses and deficits and are available for use at the discretion of the Board of Trustees in furtherance of the Charity’s general charitable objectives.
Other unrestricted funds are amounts that have been put aside out of the general unrestricted funds at the discretion of the Trustees to fund specific projects for the future development of the Institute (note 11).
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes.
Expendable Endowment – following the receipt of the final balance of the Clare Hampson bequest the balance on the fund has been transferred into an Expendable Endowment fund where the expenditure is restricted for use in the support of book & paper conservation studies.
25
**INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
for the year ended 31[st] March 2023
## **1. ACCOUNTING POLICIES (CONTINUED)**
## c) **Income**
Income represents amounts receivable (and known at the year-end) by the charity during the year from all sources including subscriptions, grants, contracts, donations and investments. All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.
Grant income and membership contributions are included as they are received except where they relate to future periods in which case they are deferred.
## d) **Expenditure**
Expenditure is included in the Statement of Financial Activities on an accruals basis, inclusive of any VAT which cannot be recovered. Bursary payments are treated as fully expended when paid.
The costs of policy and advocacy, membership, Conservation Register, conferences, professional development, publications, group activities and support costs comprise expenditure, including staff costs, which is directly attributable to these activities. Where costs, such as support and governance, cannot be directly attributed, they have been allocated on the percentage of time spent on each charitable activity.
Support costs comprise all services supplied centrally, identifiable as wholly or mainly in support of direct charitable purposes and include an appropriate proportion of general overheads which cannot be allocated to specific activities.
Governance costs include these costs associated with meeting the constitutional and statutory requirement of the charity and include the audit fees.
## e) **Operating Leases**
Rentals payable under operating leases are charged on a straight line basis over the terms of the leases.
## f) Depreciation and Amortisation
Depreciation is provided on all tangible fixed assets in order to write off their cost over their expected useful lives. The rates adopted are as follows:-
Computer Equipment & databases 33.33% per annum straight line
Only fixed assets with a value in excess of £1,000 are capitalised. Assets purchased with a value below this are expensed in the year in which they occur.
Amortisation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The amortisation rates in use are as follows:
Conservation Register 5 years Membership database and website 5 years
26
## **INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
## for the year ended 31[st] March 2023
## **1. ACCOUNTING POLICIES (CONTINUED)**
## g) **Defined Contribution pension scheme**
The amounts charged to the statement of financial activities are pension contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.
## h) **Financial Instruments**
Financial assets such as cash and debtors are measured at their present value of the amounts receivable, less an allowance for the expected level of doubtful receivables. Financial liabilities such as trade creditors, loans and finance leases are measured at the present value of the obligation.
With the exceptions of prepayments all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 7 and 8 for the debtor and creditor notes.
## i) **Creditors and provisions**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## j) **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## k) **Cash and cash equivalents**
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
## l) **Judgements and key sources of estimation uncertainty**
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
27
**INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
for the year ended 31[st] March 2023
## **1. ACCOUNTING POLICIES (CONTINUED)**
## l) **Judgements and key sources of estimation uncertainty (continued)**
The most significant estimates and assumptions which affect the carrying amount of assets and liabilities in the accounts relate to:
Useful Economic Lives - The annual depreciation charge for property, plant and equipment is sensitive to change in the estimated useful economic lives and residual value of assets. These are reassessed annually and amended where necessary to reflect current circumstances.
## m) **Employee benefits**
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **2. DONATIONS, LEGACIES AND GRANTS**
Voluntary income received in the year was as follows:
|**2023**
**_Donations, Legacies & Grants_**
National Lottery Heritage Fund
Social Enterprise Academy Scotland
Sundry Donations
2022
**_Donations & Legacies_**
Culture Recovery Fund (DCMS)
Social Enterprise Academy Scotland
Sundry Donations
Other|**Unrestricted**
**Restricted**
**2023**
**£**
**£**
**£**
-
25,000
25,000
-
6,000
6,000
2,498
5,205
7,703|
|---|---|
||2,498
36,205
38,703|
||Unrestricted
Restricted
2022
£
£
£
-
83,900
83,900
-
4,000
4,000
3,759
3,600
7,359
-
77
77|
||3,759
91,577
95,336|
28
## **INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
for the year ended 31[st] March 2023
## **3. NET MOVEMENT IN FUNDS**
The Net Movement in Funds is stated after charging:-
|Auditors' Remuneration - current year (excluding VAT)
Depreciation and Amortisation
Operating Leases – rent|**2023**
**£**
12,450
30,695
35,167
________|**2022**
**£**
9,500
29,861
35,000
________|
|---|---|---|
## **4. STAFF COSTS**
|Staff Costs:
Wages and Salaries
Social Security Costs
Pensions|**2023**
**£**
265,954
23,010
15,301
________
304,265
________|**2022**
**£**
257,714
22,672
12,977
________
293,363
________|
|---|---|---|
One employee received emoluments between £70,000-£75,000 (2022: One employee between £60,000-£65,000).
Administrative salaries have been directly allocated to projects on which time was spent.
The company has a group stakeholder defined contribution pension plan with autoenrollment for staff. During the year payments totalling £nil (2022: £nil) were accrued and are included within current liabilities at the year end.
Numbers of Employees at 31 March 2023: 7 (2022: 8).
The average number of employees during the year was: 8.17 (2022: 8.25).
The analysis of employees (full time equivalents) in the year was as follows:
|Champion cultural heritage
Extend our reach
Maintain high standards
Develop conservation careers
Membership Services
Strengthen our Institute|**2023**
**2022**
**Number**
**Number**
1.3
1.6
0.3
0.2
1.6
1.8
0.3
0.5
1.6
1.5
1.5
1.1|
|---|---|
||6.6
6.7|
29
**INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
for the year ended 31[st] March 2023
## **4. STAFF COSTS (continued)**
Key management personnel are the Management Team (Chief Executive, Business Director, Head of Membership and Head of Skills). The total employee benefits of the key management personnel for the year totalled £190,799 (2022: £197,215).
None of the Board of Trustees received remuneration for their services as Trustees during the year (prior year £nil).
7 members (2022: 5) of the Board of Trustees received reimbursed expenses during the year. These were for travelling and amounted to £1,690 (2022: £355).
Icon pays the premium on an insurance policy covering Trustees’ liabilities.
30
## **INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
for the year ended 31[st] March 2023
## **5. ANALYSIS OF EXPENDITURE**
|Current Year 2023
Champion
cultural
heritage
**£**
**Direct Costs**
Grants to
beneficiaries
-
Staff costs (note 4)
67,817
Other staff / staff costs
557
Room hire
73
Subscriptions &
publications
250
Website & IT direct
5,215
Assessors costs
-
Professional Fees
-
Event costs
-
Publication costs
191
Other
3,839
_______
77,942
**Support Costs**
Staff costs (note 4)
8,635
Staff related costs
2,920
Premises costs
10,294
Office running costs
7,027
Professional services
16,756
**Governance Costs**
Staff costs (note 4)
5,616
Audit
3,364
Other
2,413
_______
57,025
_______
**Total Expenditure**
134,967
_______|Extend
our reach
Maintain
high
standards
Develop
conservation
careers
Membership
Services
Strengthen
our
Institute
**£**
**£**
**£**
**£**
**£**
-
500
71,864
-
12,818
13,055
79,215
12,813
78,520
-
22,360
16,222
11,976
1,290
-
204
375
-
109
30,658
371
-
2,015
-
32
-
-
29,812
-
7,950
-
-
-
-
-
624
-
22,995
-
50
-
-
-
-
-
-
2,070
76
34
5,663
28,440
_______
_________
__________
_______
_________
68,379
127,704
96,687
118,083
41,258
1,664
10,086
1,632
9,999
-
562
3,411
551
3,380
-
1,982
12,025
1,945
11,920
-
1,352
8,212
1,328
8,137
-
3,225
19,571
3,166
19,400
-
1,081
6,564
1,062
6,506
-
648
3,929
636
3,894
-
464
2,815
454
2,789
-
_______
_______
_______
_______
_______
10,978
66,613
10,774
66,025
-
_______
_______
_______
_______
_______
79,357
194,317
107,461
184,108
41,258
_______
_______
_______
_______
_______|2023
Total
**£**
85,182
251,420
52,405
761
33,294
35,059
7,950
624
23,045
191
40,122
_______
530,053
32,016
10,824
38,166
26,056
62,118
20,829
12,471
8,935
_______
211,415
_______
741,468
_______|
|---|---|---|
Costs which have been directly attributable to a particular activity have been fully allocated to that specific charitable activity.
Support costs have been allocated based on the percentage of staff time spent and calculating its direct staff cost. Support costs are then allocated in proportion to this direct cost.
The percentages used are: Champion cultural heritage 27%, Extend our reach 5%, Maintain high standards 32%, Develop conservation careers 5%, Membership Services 31%.
31
## **INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
for the year ended 31[st] March 2023
|Prior Year 2022
Champion
cultural
heritage
**£**
**Direct Costs**
Grants to
beneficiaries
-
Staff costs (note 4)
71,046
Other staff / staff costs
500
Room hire
-
Subscriptions &
publications
670
Website & IT direct
5,444
Assessors costs
-
Event costs
-
Publication costs
-
Prizes and awards
-
Other
3,159
_______
80,819
**Support Costs**
Staff costs (note 4)
9,016
Staff related costs
1,078
Premises costs
11,354
Office running costs
6,289
Professional services
17,054
**Governance Costs**
Staff costs (note 4)
5,975
Audit
2,792
Other
2,304
_______
55,862
_______
**Total Expenditure**
136,681
_______|Extend
our reach
Maintain
high
standards
Develop
conservation
careers
Membership
Services
Strengthen
our
Institute
**£**
**£**
**£**
**£**
**£**
-
-
96,958
-
6,447
8,450 79,098
17,734
63,390
2,534
34,045
1,833
11,190
379
-
-
826
-
348
169
27,725
9,293
30
1,542
-
-
382
-
29,686
260
1,160
7,350
-
-
-
-
30,372
-
28
-
-
-
-
299
-
-
150
1,788
-
-
2,655
467
-
2,667
27,447
_______
_________
_________
_______
_________
74,035
129,771
127,700
98,339
36,857
1,072
10,036
2,250
8,043
321
129
1,204
270
965
39
1,350
12,641
2,834
10,131
405
748
7,001
1,570
5,611
224
2,028
18,985
4,256
15,215
608
711
6,652
1,491
5,331
213
332
3,108
697
2,491
100
274
2,569
576
2,059
82
_______
_______
_______
_______
_______
6,644
62,196
13,944
49,846
1,992
_______
_______
_______
_______
_______
80,679
191,967
141,644
148,185
38,849
_______
_______
_______
_______
_______|2022
Total
**£**
103,405
242,252
47,947
1,343
39,260
35,772
8,510
30,400
299
1,938
36,395
_______
547,521
30,738
3,685
38,715
21,443
58,146
20,373
9,520
7,864
_______
190,484
_______
738,005
_______|
|---|---|---|
Costs which have been directly attributable to a particular activity have been fully allocated to that specific charitable activity.
Support costs have been allocated based on the percentage of staff time spent and calculating its direct staff cost. Support costs are then allocated in proportion to this direct cost.
The percentages used are: Champion cultural heritage 29%, Extend our reach 3%, Maintain high standards 33%, Develop conservation careers 7%, Membership Services 26%, Strengthen our Institute 1%.
32
## **INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
for the year ended 31[st] March 2023
## **6. TANGIBLE FIXED ASSETS**
|**Computers**
**£**
At 1 April 2022
29,129
Additions
1,185
________
At 31 March 2023
30,314
________
**Depreciation**
At 1 April 2022
24,686
Charge for Year
2,254
________
At 31 March 2023
26,940
________
**Net Book Value at 31 March 2023**
3,374
________
**Net Book Value at 31 March 2022**
4,443
________|**Total**
**£**
29,129
1,185
________
30,314
________
24,686
2,254
________
26,940
________
3,374
________
4,443
________|
|---|---|
All assets are used for charitable purposes.
## **7. INTANGIBLE FIXED ASSETS**
||**Database**|
|---|---|
||**£**|
|At 1 April 2022|139,907|
|Additions|2,502|
||________|
|At 31 March 2023|142,409|
||________|
|**Amortisation**||
|At 1 April 2022|33,414|
|Charge for Year|28,441|
||________|
|At 31 March 2023|61,855|
||________|
|**Net Book Value at 31 March 2023**|80,554|
||________|
|**Net Book Value at 31 March 2022**|106,493
________|
Icon invested in a new membership database and website which was launched in April 2021. Since these and the Conservation Register purchased the previous year would have an overall life of up to 10 years with an upgrade after about 5 years, they are now amortized over 5 years.
33
## **INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
for the year ended 31[st] March 2023
|**8.**
**DEBTORS**
**Amounts Falling Due Within One Year**
Trade & Other Debtors
Prepayments
Accrued Income
Included within debtors were financial instruments
(comprising Trade & Other Debtors and Accrued Income)
measured at amortised cost of:
**9.**
**CREDITORS**
**Amounts Falling Due Within One Year**
Trade & Other Creditors
Accruals
Taxation & Social Security
Deferred Income (see below)
Included within creditors were financial instruments
(comprising Trade & Other Creditors, Accruals, Taxation &
Social Security and VAT) measured at amortised cost of:||
|**2023**
**£**
39,560
28,536
34,634
________
102,730
________
74,194
________
**2023**
**£**
26,045
16,250
11,909
94,895
_______
149,099
_______
54,204
_______||**2022**
**£**
40,125
31,497
6,707
________
78,329
|
|---|---|---|---|---|---|
||||||________
46,832
|
||||||________
**2022**
**£**
30,513
21,273
11,326
175,584
_______
238,696
_______
63,112
_______|
|||||||
34
## **INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
for the year ended 31[st] March 2023
## **Deferred Income**
Deferred income relates to membership contributions received for future periods and other fees received in advance.
|Balance as at 1 April 2022
Amounts released to income
Amounts deferred in period
Balance as at 31 March 2023|**£**
175,584
(175,584)
94,895
_______
94,895
_______|
|---|---|
## **10.ANALYSIS OF NET ASSETS BETWEEN FUNDS**
|Current Year (2023)|||**Expendable**||
|---|---|---|---|---|
||**Unrestricted**|**Restricted**|**Endowment**|**Total**|
||**£**|**£**|**£**|**£**|
|Tangible Fixed Assets|3,374|-|-|3,374|
|Intangible Fixed Assets|80,554|-|-|80,554|
|Debtors|102,730|-|-|102,730|
|Cash at Bank and in Hand|190,133|82,515|22,564|295,212|
|Current Liabilities|(149,099)|-|-|(149,099)|
||__________|__________|__________|__________|
||227,692|82,515|22,564|332,771|
||________|________|_______|_______|
|Prior Year (2022)|||**Expendable**||
||**Unrestricted**|**Restricted**|**Endowment**|**Total**|
||**£**|**£**|**£**|**£**|
|Tangible Fixed Assets|4,443|-|-|4,443|
|Intangible Fixed Assets|106,493|-|-|106,493|
|Debtors|78,329|-|-|78,329|
|Cash at Bank and in Hand|327,972|64,598|35,052|427,622|
|Current Liabilities|(238,696)|-|-|(238,696)|
||__________|_________|_________|__________|
||278,541|64,598|35,052|378,191|
||________|_______|_______|_______|
35
## **INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
for the year ended 31[st] March 2023
|**11. FUNDS**
**Current Period**
**Restricted Funds:**
Nigel Williams
1
Frederick Bearman
3
Conservation Register
Restricted Capital
4
Care of Collections
Stimulus Fund
5
Social Enterprise
Academy Scotland
8
Aurelius Charitable Trust
9
Heritage Innovation Fund
10
Icon Scotland Group -
fund for accreditation
grants
11
**Total Restricted Funds**
**Unrestricted Funds:**
General unrestricted funds
**Designated Funds:**
Database Capital
6
**Expendable Endowment**
2|**At**
**1 April**
**2022**
**£**
32,577
5,637
19,951
2,433
4,000
-
-
-
______________
64,598
209,468
69,073
35,052
_ _____________
378,191
______________|**Income**
**Expenditure**
**Transfers**
**At**
**31 March**
**2023**
**£**
**£**
**£**
**£**
3,600
(34)
-
36,143
105
(2,000)
-
3,742
-
(3,804)
-
16,147
-
(2,433)
-
-
6,000
(10,000)
-
-
1,500
-
-
1,500
25,000
(1,517)
-
23,483
-
-
1,500
1,500
_____________
________________
________________
_______________
36,205
(19,788)
1,500
82,515
659,471
(684,184)
(1,500)
183,255
-
(24,636)
-
44,437
372
(12,860)
-
22,564
________________
________________
____________
_______________
696,048
(741,468)
-
332,771
________________
________________
___________
_______________|
|---|---|---|
36
## **INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
for the year ended 31[st] March 2023
|**11.FUNDS (CONTINUED)**
**Prior Period**
**Restricted Funds:**
Nigel Williams
1
Frederick Bearman
3
Conservation Register
Restricted Capital
4
Care of Collections
Stimulus Fund
5
CRF R3 2021/22
7
Social Enterprise
Academy Scotland
8
**Total Restricted Funds**
**Unrestricted Funds:**
General unrestricted funds
**Designated Funds:**
Database Capital
6
**Expendable Endowment**
2|**At**
**1 April**
**2021**
**Income**
**Expenditure**
**Transfers**
**£**
**£**
**£**
**£**
30,765
3,600
(1,788)
-
5,637
-
-
-
24,141
-
(4,190)
-
20,000
-
(17,567)
-
-
83,977
(83,977)
-
-
4,000
-
-
_____________
______________
________________
______________
80,543
91,577
(107,522)
-
103,089
690,268
(583,889)
-
92,759
-
(23,686)
-
57,583
377
(22,908)
-
______________
_______________
________________
______________
333,974
782,222
(738,005)
-
|**At**
**31 March**
**2022**
**£**
32,577
5,637
19,951
2,433
-
4,000
_________________
64,598
209,468
69,073
35,052
__________________
378,191
|
|---|---|---|
- (1) Nigel Williams Fund: provides a prize awarded to an individual conservator by the Icon Ceramics and Glass Group.
- (2) Expendable Endowment: The Clare Hampson Fund: bequest set up with the intention of supporting studies in paper conservation.
- (3) The Frederick Bearman Fund has been set up to commemorate the late Frederick Bearman.
- (4) The Conservation Register is an online searchable database to allow the public to find conservators they can trust. As it has an estimated life of 5-10 years, it is being amortised over 5 years.
- (5) The Care of Collections Stimulus Fund has provided funds to museums etc to enable them to engage accelerated Icon members to advise on their collections.
- (6) The Database Capital reflects the cost of purchasing and commissioning a new membership database and new main website. As it has an estimated life of 5-10 years, it is being amortised over 5 years. It was partly funded by the Government’s Culture Recovery Fund (CRF) and partly by donations.
- (7) The CRF R3 grant covered the cost of staff salaries and office rent for four months from October 2021 to January 2022
37
## **INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
for the year ended 31[st] March 2023
## **11.FUNDS (CONTINUED)**
- (8) The Social Enterprise Academy Scotland grant was award to support the international marketing of Icon’s Pathway Membership and accreditation framework.
- (9) Aurelius Charitable Trust funding supports reduced cost Icon membership for students and apprentices graduating but earning less than £15,000 / year.
- (10) Heritage Innovation Fund funding from the National Lottery Heritage fund to undertake research related to workforce skills gaps relating to industrial heritage conservation skills.
- (11) Icon Scotland Group - fund for accreditation grants provides a grant of 50% accreditation fees for members in Scotland. Members must apply, and selection is managed through the Scotland Group.
## **12.OPERATING LEASE COMMITMENTS**
The total amounts payable in respect of operating leases are shown below:
|**Property leases payments due**
Within one year|**2023**
**£**
36,000
________
36,000
________|2022
**£**
32,083
________
32,083
________|
|---|---|---|
## **13.RELATED PARTY TRANSACTIONS**
Melanie Houston supervised the Intern scheme involved at ‘arms length’. She was also a member of the Pest Odyssey Steering Committee, an informal group of heritage and museum professionals.
Lorraine Finch is an assessor for Icon accreditation, ICRI and AIM. She was paid a small fee for writing Environmental Guidance (2022: she was paid for presenting ‘Being Freelance' at the Icon Business Skills Foundation Course on 27th January 2022).
Claire Fry and Duygu Çamurcuoğlu are both Assessors for Accreditation and received honorarium.
James Murphy was paid a small fee for delivering two training courses; commercial Business Skills training course to members in the prior year.
James Grierson is a trustee of the York Foundation for Conservation & Craftsmanship which provides bursaries every year to assist conservators in their journey to Icon accreditation.
Louise Davison was awarded an Icon internship in 2021 which continued into 2022/23.
There were no other related party transactions in the year or in the prior year.
38
## **INSTITUTE OF CONSERVATION**
## **NOTES TO THE FINANCIAL STATEMENTS (Continued)**
for the year ended 31[st] March 2023
## **14.Prior Year Statement of Financial Activities**
|**Unrestricted**
**Funds**
**Restricted**
**Funds**
**Expendable**
**Endowment**
**2022**
**2022**
**2022**
**Income from**
**£**
**£**
**£**
**_Donations, Legacies & Grants_**
Donations & Grants
3,759
91,577
-
**_Charitable Activities_**
Champion cultural heritage
36,574
-
-
Extend our reach
53,636
-
-
Maintain high standards
108,710
-
-
Develop conservation careers
90,207
-
-
Membership Services
344,947
-
-
**_Other Trading Activities_**
Advertising Income
41,490
-
-
Sponsorship
9,978
-
-
**_Investments_**
Bank Interest
967
______-
____377
**Total Income**
690,268
91,577
377
____________
____________
____________
**Expenditure on**
**_Charitable_ ****_Activities_**
Champion cultural heritage
112,051
24,630
-
Extend our reach
77,750
2,929
-
Maintain high standards
164,548
27,419
-
Develop conservation careers
93,234
25,502
22,908
Membership Services
126,211
21,974
-
Strengthen our Institute
33,781
5,068
-
**Total Expenditure**
607,575
107,522
22,908
**Net Income (expenditure)**
82,693
(15,945)
(22,531)
Transfer of Funds
-
-
-
**Net Movement in Funds**
82,693
(15,945)
(22,531)
**Brought Forward Funds at 1 April 2021**
195,848
_______
80,543
_______
57,583
_______
**Carried Forward Funds at 31 March 2022**
278,541
64,598
35,052
________
________
________|**Total**
**Funds**
**2022**
**£**
95,336
36,574
53,636
108,710
90,207
344,947
41,490
9,978
1,344|
|---|---|
||__
782,222
|
||____________
136,681
80,679
191,967
141,644
148,185
38,849
738,005|
||44,217
-|
||44,217
333,974
_______
378,191
________|
39