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2022-09-30-accounts

REGISTERED COMPANY NUMBER: 930776 (England and Wales) REGISTERED CHARITY NUMBER: 1121681

Report of the Trustees and Financial Statements For the Year Ended 30 September 2022 for INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Contents of the Financial Statements For the Year Ended 30 September 2022

Page
Report of the Trustees (incorporating the 3 to 16
Directors’ Report)
Report of the Independent Auditor 17 to 20
Statement of Financial Activities 21
Balance Sheet 22
Cash Flow Statements 23
Notes to the Financial Statements 24 to 35

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Report of the Trustees (incorporating the Directors’ Report) For the Year Ended 30 September 2022

The Trustees, who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity For the Year Ended 30 September 2022. The Trustees have adopted the provisions of the Charities Act 2011, the Companies Act 2006, the Memorandum and Articles of Association and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Report Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015).

REFERENCE AND ADMINISTRATIVE DETAILS

Governing document

The charity is controlled by its governing document, its memorandum and its articles of association last amended in March 2018, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006.

Registered Company number

930776 (England and Wales)

Registered Charity number

1121681

Registered office

5 Cambridge Court 210 Shepherds Bush Road London W6 7NJ

Trustees

M T Bell (Vice President) I M Blakemore (Hon Treasurer & Finance Committee Chair) Resigned 31.03.22 S M Crew (President Elect) Appointed 31.03.22 C R Gilbert-Wood (Chair, Scientific Committee) D S T Gregory (Immediate Past President) Resigned 31.03.22 S Jennings (Hon Treasurer & Finance Committee Chair) Appointed 31.03.22 A Kinsey (Chair, Professional Development Appointed 31.03.22 Committee) A L Kyriakides (Vice President) C E Leadley (Chair, Publications Committee) Resigned 31.03.22 A MacGregor (Chair, Education Committee) W Martindale (Hon Secretary) H S Munday (President) J M O’Brien (Chair, External Affairs Committee) H R Taylor (Chair, Professional Development Resigned 31.03.22 Committee) E Weston (Chair, Publications Committee) Appointed 31.03.22

Chief Executive & Company Secretary

J W Poole Resigned 12.10.22 T R B McLachlan Appointed 10.12.22

Senior Management

S French A Gardner D Kendale

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Report of the Trustees (incorporating the Directors’ Report) For the Year Ended 30 September 2022

Auditor

Moore Kingston Smith LLP 9 Appold Street London EC2A 2AP

Professional advisors

Bankers CAF Bank 25 Kings Hill Ave Kings Hill West Malling ME19 4JQ

Investment Managers Cazenove Capital 1 London Wall Place London EC2Y 5AU

STRUCTURE, GOVERANCE AND MANAGEMENT

Appointment and training of new Trustees

The President, President Elect, Vice President(s), Honorary Secretary, Honorary Treasurer and Chairs of Education & Careers, Professional Development and Publications Committees are elected by the Fellows and Members of the Institute of Food Science and Technology (IFST). The role of Immediate Past President is automatically filled. The chairs of Standing Committees (which includes the External Affairs Committee) are nominated by the members of their respective Committees and their appointment as Trustees is ratified by the Board of Trustees.

Formal training is offered to new Trustees and governance training is included at the April Board meeting. Opportunities for external Trustee training are highlighted to the Trustees. Literature relating to good governance is available for Trustees to download from IFST's website. For the first time, broad EDI training was provided in September for all Trustees. Directors’ and officers’ liability insurance is maintained.

PUBLIC BENEFIT STATEMENT

The Trustees have taken due regard of the Charity Commission’s guidance on public benefit. The charity's objectives, its main activities and who it aims to benefit are described below. All IFST's charitable activities focus on the advancement of the science of food science and technology, its education and its application for the benefit, safety and health of the public.

Organisational Structure

The Board is advised by a Scientific, Finance, Education, Professional Development, Publications, and External Affairs Committees; each is chaired by a Trustee who is a member of the Institute. The Board is also advised by Advisory Groups Panels and ad hoc working groups.

An Independent Assessor, responsible for assessing the effectiveness in which the Board discharges its duties, attends Board and other meetings as an observer but may not vote.

The Trustees have delegated to the Chief Executive the responsibility for the day-to-day operation of the charity. Pay and remuneration of key management personnel including the Chief Executive is set by the Remuneration & Benefits Committee. An informal benchmarking exercise is carried out on a regular basis with similar organisations to ensure IFST pay and remuneration remains marketable and fair. A new, more structured discretionary bonus scheme was introduced for all personnel.

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Report of the Trustees (incorporating the Directors’ Report) For the Year Ended 30 September 2022

Risk review

The Board of Trustees taking advice from the Finance Committee maintains and monitors a register of all major strategic, business and operational risks that the charity faces and confirms that systems have been established to mitigate these risks.

The key risks highlighted through this process included:

Impact of Covid-19

Covid-19 has again constrained the ability of the Institute to deliver some plans but the majority of its activity has continued unaffected or enhanced through a mixture of online and face-to-face. Plans for a return to mainly face-to-face events were necessarily adjusted due to the impact of the Omicron variant. Notably, Spring Conference 2022 was held online but, as the public health situation eased, IFST hosted an in-person IFST Lecture in October 2021 and a Spring Conference Lecture and Lunch in April 2022. While online events provide greater accessibility for larger audiences to our events and activities, the net contribution from events is lower than budgeted. The IFST executive continues to work well following a hybrid model.

The Board of Trustees continues to review and update the risk register in the light of the impact of Covid-19.

REVIEW OF IFST OBJECTIVES AND ACTIVITIES

The objective for which the Institute is established is the general advancement and application of food science and technology, for the benefit, safety and health of the public. Each year the Board undertakes a strategic review; in 2021-22 IFST worked towards six strategic priorities to enable it to achieve this objective.

Significant activities and achievements during 2021-2022

1) Providing and sharing evidence-based FS&T knowledge

Those needing access to relevant, reliable evidence-based FS&T knowledge actively seek out knowledge, outputs and positions provided by IFST. Information is known for being easily searchable and, generally, made available at no or low-cost.

Key indicators and activities included:

The Institute website’s directly relevant food science and technology content achieved 120,033 unique page views (2021: 114,944).

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Report of the Trustees (incorporating the Directors’ Report) For the Year Ended 30 September 2022

During the year the Institute hosted more than 38 events and webinars attracting 2,295 delegate registrations (of whom 1,172 were members and 1,123 were non-members).

Spring Conference 2022, ‘Minding the Gap; Communication, Skills, Technologies’, was well-received and attracted 203 delegates.

Readership of the Institute’s quarterly Food Science & Technology magazine remains strong: members receive the magazine as part of their membership package; other individuals, libraries and organisations may receive the magazine as a paid-for subscription. Each issue of the magazine is themed by the Editor around an area of interest agreed with the IFST’s Publications Committee and the Editorial Board. In 20212022 the themes included: food packaging, net zero, future foods and food manufacturing. For the eight months to end August, the average monthly online visitors was 2,542, (2021: 3,691) with 5,532 (2021: 3,815) page views, with one of the most read articles being ‘Carbon farming in the EU’ (volume 36, issue 1).

International Journal of Food Science & Technology , the Institute’s peer-reviewed academic journal published by Wiley, has performed very strongly with 650 articles and 6,790 page views, achieving an impact factor of 3.612 (2021: 3.713). Developments around Open Access publishing continue to be closely monitored by the Publications Committee and Board.

IFST has published 42 Information Statements, including new statements on Polycyclic Aromatic Hydrocarbons; Food authenticity testing; and Allergen Analysis – key considerations (including gluten & food intolerance compounds) (2021: 42).

There are now 13 ‘Food Science Fact Sheets’ (2021:11) in IFST’s consumer/public facing information series, with recent additions on Protein Food Sources; and Gut health and the Microbiome.

Through its member-led Special Interest Groups (SIGs), Branches and Working Groups, IFST hosted a total of 11 webinars during the year in addition to in-person and watch-along events including: Using genetics to understand the factors influencing food liking and their role in food choices; Status and Evolution of UK Packing Legislation; Plant-based food: fad, trend or future? Additionally, the Sensory Science Group hosted the 10[th] European Sensory Science Society (E3S) Annual Symposium,

2) Influencing key stakeholders

Our invaluable resource of independent evidence-based scientific positions and our access to experienced professionals is actively sought to inform and support the work of key stakeholders including Governmental departments. IFST will demonstrate leadership over chosen key topics and projects where it is in the best place to deliver positive outcomes in pursuit of our mission.

Key initiatives and activities included:

Relations with Government departments continue to strengthen through the work of the External Affairs Committee and the Scientific Policy Director. External Affairs Committee is continuing to prioritise policy positions. Regular contact with FSA/FSS/Defra remains commonplace.

Wales branch has been newly formed and has held its first few meetings. Members endorsed the proposal to petition for a Royal Charter and the Draft Charter at an Extraordinary general Meeting in December 2021.

A new guide, Food Safety Governance Guide for Directors, was published in March 2022 and received over 9000 download requests.

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Report of the Trustees (incorporating the Directors’ Report) For the Year Ended 30 September 2022

Overall website traffic has increased. During the year the main IFST website attracted 180,989 visitors (2021: 154,284). The Institute’s social media activity is becoming much more sensitive to profile of users on the different platforms. The number of users or followers is increasing year-on-year, and the average ‘engagement rate’ across all platforms is 4.0% (2021: 3.6%). We were pleased to achieve more than 50,000 followers on our LinkedIn company page in September 2022.

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Report of the Trustees (incorporating the Directors’ Report) For the Year Ended 30 September 2022

3) Promoting professional standards and development

Regulators, retailers and the general public are reassured that technical personnel at all levels within the food sector are recognised as being professionally competent and striving to remain current in their knowledge and skills through effective CPD.

Key initiatives and activities included:

The Institute continues to run IFST Connect sessions for employees of new and existing membership groups schemes, improving their understanding of potential memberships and registration options open to them. For existing members, small group and workshop sessions have been offered to help people find the right membership or register, and help them through the application process.

Membership numbers continue to be boosted through new membership group schemes, through which employers promote professional recognition with IFST and cover the fees for their employees.

Long-held plans to redevelop the MyCPD system were put on hold while IFST reviewed it’s online membership platform.

Under license from Science Council, the Institute has 170 Chartered Scientists (2021: 179), 52 Registered Scientists (2021: 66) and two Registered Science Technicians (2021: 2). The Institute is committed to supporting the Science Council to ensure these registers remain relevant and that licensed bodies like IFST have the information and relevant collateral they need to help them promote professional registration and attract registrants.

The multi-level Register of Food Safety Professionals has continued to attract a steady flow of new registrants. The number of registrants was: 246 (2021: 242).

The Institute has closely monitored the progress of GSFI proposals for food safety auditor professional recognition.

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Report of the Trustees (incorporating the Directors’ Report) For the Year Ended 30 September 2022

There were 117 registrants on the Register of Professional Food Auditors and Mentors (2021: 121).

The Code of Professional Conduct , which all members agree to observe, and the Disciplinary Procedures were reviewed and amendments published to members in April 2022. No complaints about the professional conduct of members under the Code of Professional Conduct and Disciplinary Procedures were received (2021: 0).

4) Utilising and growing the strength of our membership

The profile of our membership is respected for its breadth and depth of experience. Individuals are proud to join and be a part of the Institute for the opportunity to actively contribute to the achievement of the Institute’s mission.

Key initiatives and activities included:

The number of members is continuing to grow steadily standing at 3,299 at 30 September 2022 (2021: 2,983). Membership retention varies across the different levels of membership, with Fellows demonstrating a strong 90% retention rate. A ‘leavers’ membership campaign is in development to encourage people to rejoin and explore why they left. The membership comprises:

Fellows: 697 (2021: 698) Members: 857 (2021: 873) Associates: 997 (2021: 811) Students: 748 (2021: 601)

IFST worked with an external agency to contact lapsed members, attracting 35 rejoiners. A ‘Refer a friend’ campaign has been used to promote membership during the main renewal periods. The ‘Feeding our future’ campaign, enabling those who have been working in a technical role for over 10 years can join IFST and "pay it forward", helping to fund an early career professional with less than 10 years of experience to also join IFST free of charge, was launched at the IFST Lecture in April 2022.

‘IFST Community’, the member engagement platform which enables members to interact with each other as individuals or as members of branch or SIG networks, has continued to grow but achieved less traction than anticipated and a review of the platform is planned.

A revised Honorary Fellowship award was adopted during the year, allowing for the nomination of individuals who have made the most significant contributions to the Institute, profession or the sector, regardless of being a member or non-member.

IFST remains hugely indebted to the 250 or more members who regularly contribute in some capacity, such as serving on a committee, helping with policy development, responding to consultations, presenting at events and writing for publications.

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Report of the Trustees (incorporating the Directors’ Report) For the Year Ended 30 September 2022

5) Encouraging and supporting our future talent

We are in a position to inform the sector on the current and future talent/skills needs relevant to FS&T and, where appropriate, we provide leadership in the delivery of those needs. The talent pipeline through all channels is sufficient to meet the needs of the sector.

Key initiative and activities included:

Student LaunchPads attracted 119 registrations in November 2021 and for the first time a separate event was run for apprentices attracting 76 in February 2022.

The degree accreditation scheme for undergraduate and postgraduate degree courses in food science and technology has attracted new applications, with a current total of 56 degree courses accredited (2021: 50), representing the majority of UK food science and technology degree provision.

Love Food Love Science , the website resource for young people and secondary school teachers continues to achieve strong results, with over 210,190 users (2021: 252,600). Plans continue to be made to capitalise on the success of the site and to enhance existing and develop new resources.

In collaboration with Campden BRI, IFST continues to support ‘Ecotrophelia’, an EU-wide ‘dragons den’-type competition for teams of university students, and this year celebrated the tenth anniversary of the competition. The 2022 UK competition attracted 13 teams from 7 universities (2021: 11 and 6)., The UK heat was conducted online with teams presenting high quality products to a high-profile panel of ‘dragons’. The winners (a team from the University of Nottingham, with their product, ‘Cracker(ed) it Crackers‘) will represent the UK in the European online final in October 2022.

The 2021-22 POST Fellow Heike Rolker has being looking at diet-related health inequalities. Her POSTnote will be published by the Parliamentary Office of Science and Technology (POST), supported by a grant from IFST.

The Student Group and network of university student representatives continued to promote food science and technology as an exciting and rewarding career choice to young people.

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Report of the Trustees (incorporating the Directors’ Report) For the Year Ended 30 September 2022

6) Financial stability, effective governance and sustainability

We have sustainable income streams by commitment to priorities 1 to 5 above and continue to review and develop products/services that meet the changing needs of members and the sector generally. These are all underpinned by effective cost control, sound financial and risk management and robust governance followed by the Board and the Executive.

The Board, supported by the IFST executive, the Finance, Scientific, Education, Professional Development, Publications and External Affairs Committees, as well as advisory groups and panels, continues to plan activity, monitor and review performance, and manage risks in line with the strategic priorities.

Key initiatives and activities included:

Developments in publishing are closely monitored by the Publications Committee and the Institute is adapting its strategy towards Open Access publishing.

Project 4000 Working Group has been exploring options to grow the membership beyond 4000, e.g. a ‘refer a friend campaign’ was launched in October 2021.

The Institute’s governance structure and main committee terms of reference are fit for purpose following the review last year. Branch and Special Interest Group terms of reference have been updated as part of Project Diamond.

With the announcement that Jon Poole, Chief Executive, intended to leave IFST in November 2022, Remuneration & Benefits Committee has overseen the recruitment and selection of a new Chief Executive, Tim McLachlan, who took up the position in October 2022. The executive team has undergone a number of other changes during the year, including the appointment of Bharat Pandya as Operations Manager. Remuneration & Benefits Committee and Board recognise the pressure these changes have placed on the executive team as well as the potential risk and impact on delivery and, consequently, are closely monitoring and supporting the team while it undergoes the transition.

The McLachlan Collection has been rehoused in the Cambridge Court. Increasing use of the office is evident as the public health situation allows, mainly for face-to-face meetings and collaboration. Work patterns going forward are being reconsidered with the appointment of Tim McLachlan as the new Chief Executive.

Diversity, equity and inclusion

The Institute is a signatory to the Science Council Declaration on Diversity, Equality and Inclusion. The Board has appointed a ‘diversity champion’ for these matters. IFST continues to work with the Science Council to improve representation, equity and inclusivity. Employee recruitment processes have been reviewed to mitigate the potential for unconscious bias and attract a diverse range of applicants.

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Report of the Trustees (incorporating the Directors’ Report) For the Year Ended 30 September 2022

Environmental Impact

Although the Institute is an organisation of just 12 employees working out of a modest office space - and does not trigger the threshold for SECR reporting - it does recognise the need to manage and, where relevant, report on its environmental impact. Indeed, as the professional body for those engaged in food science and technology, with the food sector contributing so significantly to carbon emissions and other environmental impacts, IFST recognises the leadership it must show.

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Report of the Trustees (incorporating the Directors’ Report) For the Year Ended 30 September 2022

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

FINANCIAL REVIEW

Principal funding sources

The major income streams were publications £372,710 (2021: £390,954) followed by membership subscription £235,191 (2021: £242,331). Significant income was also generated from education and accreditation activities.

Reserves Policy

At the year end, the charity's reserves stood at £1,411,180 (2021: £1,736,121), within which the Trustees identified two areas (where designated reserves totaling £256,722 have been established for specific purposes) in addition to the general reserve which supports the overall running of the charity (see note 17). The premises renovation & equipment reserve is held for repairs and renovations to the office and meeting space at 5 Cambridge Court. The Trustees reviewed the reserves in 2021 and agreed it would be prudent to hold a minimum reserve of £510,000 in any one year and that, in addition, a further £1,200,000 should be held for longer term exceptional risks as identified in the risk register. The reserves policy takes account of risks and opportunities faced by the charity, the number and sources of income, security of income, level of expenditure commitment and other liabilities to ensure reserves continue to represent sufficient mitigation to foreseeable risks and are not excessive.

Investment Policy

The Trustees wish to invest those monies not immediately required for the benefit of the charity’s activities in such a manner that annual interest on the investment, after such taxes as may be levied on charities, will be CPI plus 3.5% over a 3 to 5 year period.

The Board of Trustees believes that a medium risk investment policy is appropriate. Medium risk is described as being prepared to accept risk of some short-term volatility in pursuit of returns over the medium- to longterm in line with this investment target.

The Trustees recognise that they are not in a position to trade on a frequent basis and have delegated management of the portfolio to investment managers Cazenove Capital. The Trustees have also determined the investment will be held in a Responsible Multi-Asset Fund, which seeks to avoid harm (integrating ESG factors), benefit people and the plant, and supports Sustainable Development Goals, and therefore excludes investments in assets like fossil fuels.

Investment Performance

During the year the value of investments decreased by £270,758, including losses of £115,540.

Fundraising

On occasion, IFST receives voluntary funds from trusts, foundations and individuals as income that helps us to fulfil our charitable objectives.

The executive team administers any voluntary income received in this way but does not actively fundraise. IFST does not engage external professional fundraisers or commercial participators to carry out fundraising activity nor engage in face-to-face or telephone fundraising. In developing the approach to fundraising IFST has taken account of the Code of Fundraising Practice issued by the Fundraising Regulator. The charity has received no complaints about its fundraising activities either during the financial year or subsequently.

The charity periodically reviews its policies and procedures in relation to the General Data Protection Regulation. This Privacy Policy, published on our website, clearly states what personal data we will hold in relation to members, stakeholders and related contacts and how this data will be used. It sets out how individuals can raise concerns or complaints.

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Report of the Trustees (incorporating the Directors’ Report) For the Year Ended 30 September 2022

PLANS FOR FUTURE PERIODS

The Board of Trustees has agreed an outline business plan for the three years to 2024 and a detailed plan for the period October 2022-September 2023 focused on the six strategic priorities:-

Providing and sharing evidence-based FS&T knowledge

Influencing and supporting key stakeholders

Promoting professional standards and development

Utilising and growing the strength of our membership

Encouraging and supporting our future food sector

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Report of the Trustees (incorporating the Directors’ Report) For the Year Ended 30 September 2022

Financial stability, effective governance and sustainability

RELATED PARTIES

The only related party transactions in the year are shown in note 18. There are no related parties outside the normal course of business.

GOING CONCERN

The Institute has been affected by lockdowns and other restrictions. A significant proportion of IFST’s income comes from publishing and membership activity, which have continued to hold up and are expected to continue to be insulated from any significant impacts from Covid-19, whether directly or because of a wider economic downturn. As noted above, income generating event activity has been limited but so has the cost of running physical meetings.

Noting the apparent security of the Institute’s income streams and stability of expenditure in light of recent (and potential future) shocks and the levels of reserves, the trustees plan an ambitious programme of work and continue to operate IFST as a going concern.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees (who are also directors for the purposes of company law) are responsible for preparing the Trustees’ Report (incorporating a Directors’ Report) and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Independent auditor’s report to the members of Institute of Food Science and Technology

Opinion

We have audited the financial statements of the Institute of Food Science and Technology For the Year Ended 30 September 2022 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 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:

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.

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 other information comprises the information 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.

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Independent auditor’s report to the members of Institute of Food Science and Technology

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, 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:

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Independent auditor’s report to the members of Institute of Food Science and Technology

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 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.

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:

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Independent auditor’s report to the members of Institute of Food Science and Technology

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.

…………………………………………………. Luke Holt (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

1[st] March 2023 Date: ………………………….

6[th] Floor 9 Appold Street London EC2A 2AP

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INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Statement of Financial Activities

(Incorporating an Income and Expenditure Account) For the Year Ended 30 September 2022


2022
Unrestricted
funds
Notes
£
INCOME AND ENDOWMENTS FROM:
Charitable activities:
3
Publishing
372,710
Education
24,526
Accreditation
86,950
Membership subscription
235,191
Sponsorship
11,200
Investments:
Investment income
2
49,637
Total income
780,214
EXPENDITURE ON
Raising funds:
Investment management costs
4
4,690
Charitable activities:
5
Publishing
59,041
Education
300,931
Accreditation
139,981
Membership administration
326,861
Other
75,567
Total expenditure
907,071
Net operating expenditure
(126,857)
Net (losses)/gains on investments
(115,540)
Net expenditure for the year
(242,397)
Other recognised gains/(losses):
Actuarial gains/(losses) on defined benefit
pension schemes
(82,544)
Net movement in funds
(324,941)
RECONCILIATION OF FUNDS
Total funds brought forward
1,736,121
TOTAL FUNDS CARRIED FORWARD
1,411,180
All amounts relate to continuing activities.		 2022
Total
funds
£
372,710
24,526
86,950
235,191
11,200
49,637		 2021
Total
funds
£
390,954
24,855
74,368
242,331
8,700
49,730

780,214		 790,938
4,690
59,041
300,931
139,981
326,861
75,567		 4,314
62,353
266,091
117,512
332,394
69,595

907,071
(126,857)
(115,540)
(242,397)
(82,544)
(324,941)
1,736,121
1,411,180		 852,259
(61,321)
184,890
123,569
2,709
126,278
1,609,843
1,736,121

All income and expenditure in 2021 and 2022 related to unrestricted activities.

The notes on pages 24 – 35 form part of these financial statements.

page 21

page 22

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Cash flow Statement

For the Year Ended 30 September 2022

Total funds
£
Cash flows from operating activities:
Net cash provided by operating activities
(135,454)
Cash flows provided by/(used in) investing activities:
Investments, dividends and interest income
49,637
Purchase of intangible fixed assets
(42,750)
Purchase of tangible fixed assets
(7,990)
Proceeds from the sale of investments
200,000
Purchase of investments
(49,063)
Movement in cash held by investment manager
4,281
Net cash (used in)/provided by investing activities
154,115
Change in cash and cash equivalents in the reporting period
18,661
Cash and cash equivalents at the beginning of the reporting
period
152,587
Cash and cash equivalents at the end of the reporting period
171,248
Reconciliation of net income/(expenditure) to net cash flow from operating activities
Current
Year
£
Net income/(expenditure) for the reporting period (as per the
statement of financial activities)
(324,941)
Adjustments for:
Depreciation and amortisation
59,166
Losses/(gains) on investments
115,540
Investments, dividends and interest income
(49,637)
(Increase)/decrease in debtors
(69,624)
Increase/(decrease) in creditors
48,993
Movement in pension liability
85,049
Net cash used in operating activities
(135,454)
Analysis of cash and cash equivalents
Current
Year
£
Cash in hand
171,248
Total cash and cash equivalents
171,428		 Prior year
funds
£
(92,034)
49,730
-
(5,036)
-
(49,712)
4,314
(704)
(92,738)
245,325
152,587

Prior Year
£
126,278
41,513
(184,890)
(49,730)
(915)
(21,585)
(2,709)
(92,034)
Prior Year
£
152,587
152,587

page 23

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Notes to the Financial Statements For the Year Ended 30 September 2022

1. ACCOUNTING POLICIES

Company information

The Institute of Food Science And Technology is a private company limited by guarantee, incorporated in England and Wales. The registered office is 5 Cambridge Court, 210 Shepherds Bush Road, London, W6 7NJ.

Accounting convention

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. They are in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Irelands (FRS 102) (effective 1 January 2015) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The functional currency is sterling and the financial statements are rounded to the nearest pound. The Charity constitutes a public benefit entity as defined by FRS 102.

Going concern

The financial statements are prepared on a going concern basis which assumes that the charitable company will continue in operational existence for the foreseeable future. The Trustees have prepared forecasts for a period of at least twelve months from the date of approval of these financial statements which demonstrate that IFST will continue to meet its liabilities as they fall due for that period. Like every business, the Institute has been affected by the lockdown and other restrictions. A significant proportion of IFST’s income comes from publishing and membership activity, which have held up very well in recent times and are expected to continue to be insulated from any significant impacts, whether directly or because of a wider economic downturn. With the direct effects of Covid-19 seemingly subsiding, the indirect effects of the current cost of living crisis, including increased inflation and interest rates, could pose a threat. However, IFST are expected to come through this relatively unscathed with increased income targets in years to come.

Noting the apparent security of the Institute’s income streams and stability of expenditure in light of recent (and potential future) shocks and the level of reserves, the trustees plan an ambitious programme of work and continue to operate IFST as a going concern.

Income recognition

All income is included on the Statement of Financial Activities when the charity is entitled to the income and the amount can be quantified with reasonable accuracy and there is probability of receipt.

International Journal of Food Science Technology

The International Journal of Food Science Technology included within publishing income, is accounted for by bringing into the Statement of Financial Activities its share of profit earned under its agreement with its publisher, who runs to a 31[st] December year end.

Expenditure recognition

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category.

The cost of raising funds comprises the costs of managing the investment portfolio.

Charitable activities expenditure comprises those costs incurred by the Institute in the delivery of its objectives. It includes both costs that can be allocated directly to such activities and an allocation of the indirect support costs incurred by the Institute.

Support costs represent indirect expenditure incurred in support of the Institute’s primary objectives and allocated on the basis as detailed in note 6.

page 24

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Notes to the Financial Statements For the Year Ended 30 September 2022

Intangible fixed assets

Intangible fixed assets comprise of website costs. They are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. The capitalisation threshold for intangible fixed assets is £1,000.

Amortisation commences once the asset is completed and brought into use and is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Website development costs

-3 years straight line

Tangible fixed assets

The capitalisation threshold for tangible fixed assets is £1,000. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property (excluding land) -2% on cost Improvements to property -10% on cost Office equipment -10-33% on cost

Gains/losses on investment assets

All gains and losses are taken to the Statement of Financial Activities as they arise. Unrealised gains and losses on investment assets represent the difference between their fair value at the end of the year and their fair value at the beginning of the year, or transaction value if acquired during the year. Realised gains and losses on disposal of investment assets represent the difference between the sale proceeds and the fair value at the beginning of the year, or transaction value if acquired during the year.

Financial instruments

The company has chosen to apply the provisions of Section 12 “Basic Financial Instruments” and Section 12 “Other Financial Instruments” of FRS102 to all of its financial instruments. Financial instruments are recognised in the company’s balance sheet when the company becomes party to the contractual provisions of the instruments. Financial assets and liabilities are offset, with the net amount presented in the financial statements, when there is a legally enforceable right set off the recognised amounts and there is an intention to settle on a net basis or by realising the asset and settling the liability simultaneously.

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using their closing quoted market price. Realised and unrealised gains and losses are shown in the statement of financial activities together as net gains on revaluation and disposals of investment assets. The Institute does not directly acquire put options, derivatives or other complex financial instruments.

Debtors

Debtors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses.

Creditors

Creditors are recognised initially at fair value. Subsequent to initial recognition they are measured at amortised cost using the effective interest method.

page 25

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Notes to the Financial Statements For the Year Ended 30 September 2022

Taxation

The charity is exempt from corporation tax on its income applied for charitable activities.

Funds

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. A premises renovation & equipment designated reserve is maintained for periodic renovation of 5 Cambridge Court.

Restricted funds are used for the specific purposes laid down by the donor. Expenditure which meets their criteria is charged to the fund.

Defined benefit pension scheme

The Institute participates in the Universities Superannuation Scheme (USS). The scheme is a hybrid pension scheme providing defined benefit (for all members), as well as defined contribution benefits. The assets of the scheme are held in a separate trustee-administered fund. Due to the mutual nature of the scheme, the scheme’s assets are not attributed to individual institutions and a scheme-wide contribution rate is set. The Institute is therefore exposed to actuarial risks associated with other institutions’ employees and is unable to identify its share of the underlying assets and liabilities of the Employee scheme on a consistent and reasonable basis. As required by FRS 102 Section 28 “Employee benefits”, the Institute therefore accounts for the scheme as if it were a wholly defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme. Since the institution has entered into an agreement (the Recovery Plan) that determines how each employer within the scheme will fund the overall deficit, the institution recognises a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and therefore an expense is recognised.

FRS 102 makes the distinction between a group plan and a multi-employer scheme. A group plan consists of a collection of entities under common control typically with a sponsoring employer. A multiemployer scheme is a scheme for entities not under common control and represents an industry wide scheme such as USS. The accounting for a multi-employer scheme where the employer typically has entered into an agreement with the scheme that determines how the employer will fund a deficit results in the recognition of a liability for the contributions payable that arise from the agreement (to the extent that they relate to the deficit) and the resulting expense in profit or loss in accordance with Section 28 of FRS 102. The directors are satisfied that the scheme provided by USS meets the definition of a multi-employer scheme and has therefore recognised the discounted fair value of the contractual contributions under the recovery plan in existence at the date of approving the financial statements.

Critical accounting estimates and areas of judgement

In preparing the financial statements, management is required to make estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgements are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.

The USS pension scheme is a multi-employer scheme for which a deficit reduction plan is recognised. The determination of the provision is dependent on the assumptions in relation to the length of term of the plan arrangement, contribution rates assessed, actuarial assumptions and future changes to underlying interest rates. These assumptions may vary over time and impact on the provision value in future periods accordingly.

page 26

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Notes to the Financial Statements For the Year Ended 30 September 2022

Heritage assets

The Institute owns a collection of books and papers on food science and technology and other related subjects. These are known as the ‘McLachlan Collection’ as the majority of the collection was donated to the Institute by the, now, late Prof Tom McLachlan, Past IFST President in or around 1978. Over the years, further books were added or donated to the collection by various parties but the collection has since remained in storage for more than 20 years. Following a thorough assessment of this collection we now feel it appropriate to consider these as a ‘Heritage Asset’ under Financial Reporting Standard 102 and the Charities SORP. We are not in a position, nor do we feel it appropriate at this time, to place a value on the collection which would be a costly exercise and would serve little purpose due to the unique nature of the collection. Our primary focus is to establish a safe repository for the collection which will enable free access for those who request to use it. Further information on the McLachlan Collection is provided in the Trustees Annual Report.

2.
INVESTMENT INCOME
UK Investments, dividends and
interest
3.
INCOME FROM CHARITABLE ACTIVITIES
Activity
IJFST
Publishing
IJFST for members
Publishing
Food Science & Technology Publishing
Other publications sales
Publishing
Advertising
Publishing
Events
Education
MyCPD & employer schemes Accreditation
SALSA
Accreditation
Other accreditation schemes Accreditation
Science Council Registers
Accreditation
IFT/IFST
Accreditation
IFST Registers
Accreditation
Membership subscriptions
Membership subscription
Corporate sponsorship
Sponsorship
4.
INVESTMENT MANAGEMENT COSTS
Investment management fees		 2022
2021
£
£
49,637
49,730
2022
2021
£
£
342,103
355,016
681
2,806
7,845
2,695
10,682
22,907
11,398
7,530
14,005
8,646
-
1,103
23,870
23,730
55,517
40,524
7,564
8,803
-
208
10,521
16,209
235,191
242,331
11,200
8,700
-
730,576 741,208
2022
2021
£
£
4,690
4,314

page 27

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Notes to the Financial Statements For the Year Ended 30 September 2022

5. CHARITABLE ACTIVITIES COSTS

Direct costs Support costs
(See note 6)
£
£
Publishing
21,257
37,784
Education
28,890
272,041
Accreditation
19,074
120,907
Membership administration
77,490
249,371
Other
-
75,567
Total 2022
146,710
755,670
Total 2021
151,991
695,954		 Totals
2022
£
59,041
300,931
139,981
326,861
75,567
902,380
847,945		 Totals
2021
£
62,353
266,019
117,512
332,394
69,595
847,945

6. SUPPORT COSTS

Support costs are attributed as follows:

Basis of allocation Publishing 5% Education 36% Accreditation 16% Membership administration 33% Other 10%

2022
Total
activities
£
Support costs comprise:
Employment costs
570,086
Legal expenses
12,018
Other costs
114,400
Depreciation of tangible assets
11,309
Amortisation of intangible assets
47,857
755,670
7.
NET INCOME
Net income is stated after charging:
2022
£
Auditor’s remuneration – audit current year
7,200
Auditor’s remuneration – audit prior year under accrual
2,850
Auditor’s remuneration – non audit
1,700
Depreciation - owned assets
11,309
Amortisation - owned assets
47,857		 2021
Total
activities
£
538,076
15,562
100,800
8,672
32,844
695,954
2021
£
7,100
-
2,800
8,672
32,844

8. TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 30 September 2022 nor for the year ended 30 September 2021.

page 28

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Notes to the Financial Statements For the Year Ended 30 September 2022

Trustees' Expenses

Expenses of the trustees are reimbursed if they submit a claim. The total expenses for travel and subsistence reimbursed to three trustees (2021: fourteen) during the year were £2,038 (2021: £1,698).

9. STAFF COSTS

Wages and salaries
Social security costs
Pension
Average number of employees during the year		 2022
£
474,201
45,399
40,282
559,882
2022
14		 2021
£
451,443
46,800
31,601
529,844
2021
14

There were no employees whose emoluments excluding employers’ pensions contributions amount to over £60,000 in the year.

Key management personnel comprise of three members of senior management (2021: 3) and the Chief Executive. The total benefits received by key management personnel in the year amounted to £240,239 (2021: £231,836).

10. INTANGIBLE FIXED ASSETS

Website
development
costs
£
COST
At 1 October 2021
99,528
Additions 42,750
At 30 September 2022142,278

AMORTISATION
At 1 October 2021
65,778
Charge for the year
47,857
At 30 September 2022
113,635
NET BOOK VALUE
At 30 September 2022
28,643
At 30 September 2021
33,750		 Total
£
99,528
42,750
142,278

65,778
47,857
113,635
28,643
33,750

page 29

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Notes to the Financial Statements For the Year Ended 30 September 2022

11. TANGIBLE FIXED ASSETS

11. TANGIBLE FIXED ASSETS
Freehold Improvements
Office
property to property equipment Total
£ £ £ £
COST
At 1 October 2021 279,267 82,105 24,465 385,837
Additions - - 7,990 7,990
At 30 September 2022 279,267 82,105 32,455 393,827
DEPRECIATION
At 1 October 2021 125,057 64,553 14,829 204,439
Charge for year 3,800 2,308 5,201 11,309
At 30 September 2022 128,857 66,861 20,030 215,748
NET BOOK VALUE
At 30 September 2022 150,410 15,244 12,425 178,079
At 30 September 2021 154,210 17,552 9,636 181,398
12. FIXED ASSET INVESTMENTS
Listed investments 2022 2021
£ £
MARKET VALUE
At 1 October 2021 1,575,877 1,345,589
Additions at cost 49,063 49,712
Disposal proceeds (200,000) -
Realised gains on disposals 1,905 -
Unrealised (losses)/gains on revaluation (117,445) 184,890
Movement in investment broker's cash (4,281)
 (4,314)
At 30 September 2022 1,305,119 1,575,877
Historical cost 1,119,239 1,236,731
The following investments comprise in excess of 5% of the value of the portfolio:
Investment Name Holding Value
(in units) £
SUTL Cazenove Charity Responsible 1,942,657 1,204,445
Investments consist of: 2022 2021
£ £
Equity 1,204,445 1,470,922
Cash 100,674 104,955
1,305,119 1,575,877

page 30

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Notes to the Financial Statements For the Year Ended 30 September 2022

12. FIXED ASSET INVESTMENTS (continued)

Geographical Analysis

Geographical Analysis
2022 2021
£ £
United Kingdom investments 100,672 104,955
Overseas investments 1,204,447 1,470,922
1,305,119 1,575,877
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2022 2021
£ £
Trade debtors 57,469 22,119
Prepayments and accrued income 30,480 2,378
Other Debtors 11,227 5,057
99,176 29,554

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
Accruals and deferred income
Defined benefit pension liability		 2021
£
14,337
14,656
204,004
4,939
237,936		 2021
£
16,014
10,536
154,949
7,444
188,943

Included in the above is deferred income totalling £187,419 (2021: £140,296) which predominantly related to publication royalties and membership subscriptions. The 2021 amount was fully released in the 2022 year.

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022 2021
£ £
Defined benefit pension liability 133,149 48,100

page 31

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Notes to the Financial Statements For the Year Ended 30 September 2022

16. PENSION COMMITMENTS

Universities Superannuation Scheme (USS)

The total cost charged to the statement of financial activity was £40,282 (2021: £31,601) as shown in note 9. There was neither a prepayment nor an accrual at the end of the financial year in respect of these contributions.

However, due to the adoption of FRS 102 there is now a liability in the accounts for the contributions payable that arise from the agreed future deficit contributions, this has been discounted to present value at each year end. This has been split between creditors falling due within one year and creditors falling due after more than one year. The movement in this liability from year to year is posted to the statement of financial activities and the element of unwinding the discount on the liability is recorded as finance costs in the statement of financial activities.

2022 2021
£ £
DB pension liability falling due within one year 4,939 7,444
DB pension liability falling due after more than one year 133,149 48,100
Movement in DB pension liability in SOFA 82,544 2,709

The latest available complete actuarial valuation of the Retirement Income Builder is at 31 March 2018 (“the valuation date”), which was carried out using the projected unit method. A valuation as at 31 March 2020 is underway but not yet complete.

Since the institution cannot identify its share of USS Retirement Income Builder assets and liabilities, the following disclosures reflect those relevant for those assets and liabilities as a whole.

The 2018 valuation was the fifth valuation for the scheme under the scheme-specific funding regime introduced by the Pensions Act 2004, which requires schemes to adopt a statutory funding objective, which is to have sufficient and appropriate assets to cover their technical provisions. At the valuation date, the value of the assets of the scheme was £67.3 billion and the value of the scheme’s technical provisions was £67.3 billion indicating a shortfall of £3.6 billion and a funding ratio of 95%.

The key financial assumptions used in the 2018 valuation are described below:

Pension increases (CPI)

Term dependent rates in line with the difference between the Fixed Interest and Index Linked yield curves, less 1.3% p.a.

Discount rate (forward rate) Years 1-10: CPI + 0.14% reducing linearly to CPI – 0.73% Years 11-20: CPI + 2.52% reducing linearly to CPI + 1.55% by year 21 Years 21+: CPI + 1.55%

page 32

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Notes to the Financial Statements For the Year Ended 30 September 2022

16. PENSION COMMITMENTS (continued)

The main demographic assumption used relates to the mortality assumptions. These assumptions are based on analysis of the scheme’s experience carried out as part of the 2018 actuarial valuation. The mortality assumptions used in these figures are as follows:

Mortality base table

Valuation Pre retirement: 71% of AMCOO (duration 0) for males and 112% of AFC00 (duration 0) for females. Post retirement:

97.6% of SAPS S1NMA “light” for males and 102.7% of RFV00 for females

Future improvements to mortality

CMI_2017 with a smoothing parameter of 8.5 and a long term Improvement rate of 1.8% p.a. for males and 1.6% p.a. for females

Use of these mortality tables reasonably reflects the actual USS experience. To allow for further improvements in mortality rates the CMI 2014 projections with a 1.5% pa long term rate were also adopted.

The current life expectancies on retirement at age 65 are:

----- Start of picture text -----
2022 2021
Males currently aged 65 (years) 23.9 24.7
Females currently aged 65 (years) 25.5 26.1
Males currently aged 45 (years) 25.9 26.7
Females currently aged 45 (years) 27.3 27.9
----- End of picture text -----

A new deficit recovery plan was put in place as part of the 2020 valuation which requires payment of 6.2% of salaries over the period 1 April 2022 to 31 March 2024 at which point the rate will increase to 6.3%. The 2022 deficit recover liability reflects this plan. The liability figures have been produced using the following assumptions:

2022 2021
Discount rate 2.80% 2.59%
Pension increases(CPI) 1% 1%

page 33

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Notes to the Financial Statements For the Year Ended 30 September 2022

17. MOVEMENT IN FUNDS

Unrestricted
funds
General fund
Fixed asset
reserve
Premises
renovation &
equipment
reserve
TOTAL FUNDS
Unrestricted
funds
General fund
Fixed asset
reserve
Premises
renovation &
equipment
reserve
TOTAL FUNDS		 At
01.10.21
£
1,470,975
215,146
50,000		 Income
£
780,214
-
-		 Expenditure
£
(907,071)
-
-		 Net
investment
losses
Actuarial
gain on
pension
£
(115,540) (82,544)
-
-
-
-		 Transfers
At
30.09.22
£
£
8,424 1,154,458
(8,424)
206,722
-
50,000
- 1,411,180
Transfers
At
30.09.21
£
£
36,481
1,470,975
(36,481)
215,146
-
50,000
-
1,736,121
1,736,121 780,214 (907,071) (115,540)
(82,544)
At
01.10.20
£
1,308,216
251,627
50,000		 Income Expenditure
£
£
790,938
(852,259)
-
-
-
-		 Net
investment
losses
Actuarial
gain on
pension
£
184,890
2,709
-
-
-
-
1,609,843 790,938
(852,259)		 184,890
2,709

Unrestricted funds

The "Fixed Asset Reserve" is to fund the cost of the Charity's fixed assets, primarily the provision of an office for the Charity and associated activities. During the year a transfer of £8,424 was made from the General Fund to align the value of the reserve with the book value of fixed assets as set out in note 11.

The "Premises Renovation & Equipment Reserve" is to fund the cost of renovation and improvement of the charity’s head office and office equipment, consisting of internal and external redecoration normally every two years with the option of more substantial work if needed every five-to-ten years. Please note that £nil was spent during the year on capital renovation work and has been included in fixed asset additions (2021: £5,036).

page 34

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Notes to the Financial Statements For the Year Ended 30 September 2022

18. RELATED PARTY TRANSACTIONS

The charity received £24,501 (2021: £29,230) for the provision of accreditation services to Safe And Local Supplier Approval (SALSA). A balance of £7,152 was due at as at 30 September 2022 (2021: £7,152). This entity has two directors in common with Institute of Food Science and Technology.

The charity received £201 (2021: £nil) for the provision of membership, advertising and Science Council Register services to Berry Ottaway. Nothing was due as at 30 September 2022 nor 30 September 2021. This entity has one director in common with Institute of Food Science and Technology.

The charity received £13,563 (2021: £nil) for the provision of accreditation, membership and sponsorship services to Campden BRI. Nothing was due as at 30 September 2022 nor 30 September 2021. This entity has two directors in common with Institute of Food Science and Technology.

The entity received £1,735 (2021: £1,207) from 11 trustees (2021: 9) in the form of membership fees. There were no fees outstanding as at 30 September 2022 (2020: £Nil). An additional £nil was received from 0 trustees (2021: £325 from 7 trustees) for event fees or publications.

page 35

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Detailed Statement of Financial Activities

For the Year Ended 30 September 2022

INCOME FROM
Donations:
Fundraising
Charitable activities:
IJFST
IJFST for members
Food Science & Technology
Other publications sales
Advertising
Events
MyCPD & employer schemes
SALSA
Other accreditation schemes
Science Council Registers
FT/IFST
IFST Registers
Membership subscriptions
Corporate sponsorship

Investments:
Investment income
Total income

EXPENDITURE ON
Raising funds:
Investment management fees including support costs
Charitable activities:
IJFST
Food Science & Technology
Other publication costs
Schools & Careers
Awards
Website (including database)
Events
External representation
MyCPD & employer schemes
SALSA
Other accreditation schemes
Science Council Register
IFT/IFST
IFST Registers
Fundraising
Sundry member activities
Carried forward		 2022
£
-
342,103
681
7,845
10,682
11,398
14,005
-
23,870
55,517
7,564
-
10,521
235,191
11,200
730,576
49,637
780,214
4,690
-
18,912
2,345
1,023
2,017
53,528
23,296
6,899
-
500
11,675
14,627
-
9,335
-
2,477
151,400		 2021
£
-
355,016
2,806
2,695
22,907
7,530
8,646
1,103
23,730
40,524
8,803
208
16,209
242,331
8,700
-
741,208
49,730
790,938
4,314
1,656
17,697
8,202
3,461
5,706
62,069
5,024
659
280
-
5,500
23,637
2,964
14,233
1,085
272
156,305

This page does not form part of the statutory financial statements.

page 36

INSTITUTE OF FOOD SCIENCE AND TECHNOLOGY

Detailed Statement of Financial Activities

For the Year Ended 30 September 2022

Brought forward
Governance costs
Auditor’s remuneration
Support costs
Management
Employment costs
Consultancy & outsourcing

Building maintenance & service
Office equipment maintenance
Committee expenses
Communications
Legal expenses
Irrecoverable VAT
Freehold property - Depreciation
Office Equipment - Depreciation
Website – Amortisation

Total expenditure
Net operating expenditure
Net (losses)/gains on investments
Net income for the year
Other recognised gains/(losses):
Actuarial losses on defined benefit pension schemes
Net income/(expenditure)
2022
£
151,400
8,800
570,086
18,773
18,665
23,271
3,866
15,713
14,968
22,366
6,108
5,201
47,857
907,071
(126,857)
(115,540)
(242,397)
(82,544)
 2021
£
156,305
8,700
538,076
17,829
20,838
23,072
3,835
13,706
18,512
9,870
6,108
2,564
32,844
852,259
(61,321)
184,890
123,569
2,709
126,278
(324,941)

This page does not form part of the statutory financial statements.

Page 33