INISTITUTE FOR GOVERNMENIT ANNUAL REPORT AND ACCOUNTS FOR THE YEAR TO 31 MARCH 2023 harlty number 1123926 Company number 6480524
INSTITUTE FOR GOVERNMENT ANNUAL REPORT AND ACCOUNTS CONTENTS Pages Legal and Administrative Information Govemors, Annual Report 3to11 Independent Auditor's Report 121014 Consolidated Slalement of Financial Activities 15 Charity and Group Balance Sheet 16 Consolidated Statement of Cash Flows 17 Notes to the Accounts 18to29
INSTITUTE FOR GOVERNMENT LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR TO 31 MARCH 2023 Board of Governors Governor Lord Sainsbury of Turville Baroness Valerie Amos Sir Andrew Cahn Sir lan Cheshire Miranda Curtis Sir Richard Lambert Baroness Susan Kramer Lord Simon of Hrghbury Sir Paul Tucker Jonathan Slater Slr David Lidinglon Dame Angela Eagle Tamara Finkelslein Chair Chair, Finance & Audit Committee Resigned 2810912022 Resigned 2110612022 Resigned 1810912022 Appointed 16 March 2023 Appointed 5" Juty 2023 Govemors are appointed for an initial term of 3 years. They may be reappointed for further periods of 3 year8. Executlve Directors The Director of the Institute is Dr H8nn8h White. The Dire¢lor is responsible for the day-lo-day running of the Institute along with a team of Directors and Programme Directors. Bankers Barclays Bank Acorn House 36-38 Park Royal Road London NW10 7JA Registered Auditor Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Principal & Reglstsred Office 2 Carlton Gardens London SW1Y SAA Wobslt• vMw.instituleforgovernment.org.uk The Institute for Government is a registered charity INo.11239261 and a company limlted by guarantee registered in England and Wales INo.6480524}. It was granted an exemption from the requirement to use the word Limited on 18 January 2008.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2023 The Governors are pleased lo present their annual directors, report together with the consolidated financial slalemenls of the charity and rls subsidiary for the year ending 31 March 2023 which are prepared to meet the requirements for a direclors, report and accounts for Companies House. The financial statements comply with the Charitles Act 2011, the Companies Act 2006. the Memorandum and Articles of Association, and Accounting and Reporting by Charttie5". Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Slandard applicable in the UK and Republic of Ireland (FRS 1021 (effective 1 January 20151. Our purpose8 and a1vie8 The InslitLrte for Governmenl {Ihe Institute") is an independent charrty. We work wrth all the m8in polllical parties in Westminster and wrth senior civil servants in Whitehall. providing evidence-based advice that draws on besl pradi¢e from around the worfd. The purposes of the Institute for Government are- The advancement of edatIOn in the art and sclence of govemment in the UK for the benefft of the public on a non-party political b8sis, and The promotion of efficient public administration of govemment and public service in the UK by providing programmes of education, training, research and study for the public benefit on a non-paty political basis. We continue to deliver our vision to increase the effectiveness of government in the UK, by improving the processes of government. and enhancing the decision making and skills of cwil servants and polilicians. Our focus is on bringing about long term, sustainable change. with an emphasis not just on producing proposals but on working lo see them implemented and have an impact on the way the UK is governed. Principal actlvltles and achlevements 2022-23 was another exceplionalty busy year for the Institute. It was another year of political turmoil in Weslminsler as we continued lo focus on the key questions for government effectiveness. In detail. our work covered: Civll Servlce - we launched a major Commission on the Centre of Government in March 2023. due to report in February 2024, to infomi declsions about how the centre of government should be organised after the general election. Our research programme continues lo make Ihe case for a new civil service statute, as well as looking at core civil service reform issues like the interchange of expertise, diversity and inclusion. how lo make effective efficiency cuts in the civil service and the Consequences of the Johnson premiership. In January 2023 we published the latest Whitehall Monitor looking at the overall slate of the civil service.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2023 Policy maklng- one focus has been on government $l[lence with a report on managing extreme risks. We have continued our work on nel zero with a succession of public and private events and research on energy efficiency and net zero and devolution. We have developed a programme of work to look at chronic policy problems. starting with t8¢kling obesity, and are looking al policy successes like offshore wind and samevsex marriage. Devolutlon - our prlncipal fccus has been research and engagemenl on English devolution, including the powers, funding and accountability of mayoral combined aulhorilies, We published reports setting out how metro mayors should be empowered to help deliver the government's levelling up and nel zero oty-eclivos. We began a new project on the effective implementation of devolution deals and produced analysis of the trailblazer deals for Greater Manchester and the Wesl Midlands. We also engaged in debate on the future of the Union, giving evidence lo committees of the UK and Scottish parfiaments and private advice to the Independent Commission on the Constitutional Future of Wales. Public Finances - we have continued to develop our programme of Work on levelling up. producing a series of reports and events looking at the set of policies that can most effectively contribute lo levelling up economic performance and how the govemment's plans staGk up. We also developed a major piece of work on the role of the Treasury during the pandemic. We produced Iwo papers examining how govemment could take a more effective approach to encouraging business investment and economic growth, and extended our body of work on tax policy making by examining issues flowing from the abolition of the Office of Tax Simplification. Alongside this, we a180 analysed 8nd commented on Ihe economic shocks that hit the UK (energy prices and inflation), the effectiveness of the government'$ reaction lo these, and Ihe implications of the economic and fiscal policies adopted by successive governments through the summer and autumn of 2022. Publlc bodl68 - we published a major report on public appointments In the summer. We have also conducted a series of projects on the public body life cycle, with a report published on abolishing public bodies and reports in progress on establishing publi bodies and on why Ihey should exist. The team has begun to develop a new programme of work on regulation. Publlc services in October we published our flagship annual Performance Tracker publication looking al the performan of nine public services over the previous year, with an update published in March ahead of the budget. Alongside this, we published research on adult social care fvnding and financing, analysis of the government's plan for the NHS, what the autumn statement meant for public servIs, lessons from 'austerity' in public services in the 201 Os, the future of school assessments, impact of local govemment funding cuts on neighbourhood services, and Outcome Delivery Plans, We also produced case studies on Oak National Academy and the unification of probation services.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2023 IfG A¢ademy- we have launched the Academy, bringing together the different strands of our learning and development work, attracting significant exlernal interest. We are working on increasing our engagement with academia, develcping a suite of online resources and new leaming and development programmes, and particularly how the Institute can use learning and development to maximise tts impact around the forthcoming general election. As part of this, we are translating our research materials into learning tools - starting wrth a port on understanding government budgets published in late 2022. Mlnisters - we continued working with government ministers and the civil Servants who work most closety with them to support Ihem to be as effective as possible in their roles. We also maintained our oommenlary on the question of ethical slandards in governmenl, putting forward recommendations for how these can be better upheld and working with other like-minded organisations to build support for changes to the system, Constitution - we have continued work on our Review of the UK Constitution in partnership with the Bennett Institute for Public Policy at the University of Cambridg8, publishing original research on the legislative process, the govemance of England, and bodies and individuals with a role in protecting the constilution. We have also worked with external academics and experts to publish a series of guest papers on subjects ranging from the House of Lords to party finance and held a series of roundtables across the UK. We have also been developing recommendations for our concluding report due in September 2023. Brexlt- we have continued to analyse the ongoing impact of Brexlt, Including its ongoing irnplications for Northern Ireland, the UK-EU Windsor Framework agreement to amend the Nl protocol, and the UK governmenfs approach to post-Brexit regulation. Futuro plans 2023-24 In 2023-24 our priorities and work prograrnme will be shaped by preparation for the general eleclion, due by January 2025 at the latest. As part of this, we will be producing new research on transitions of govemment and preparing for complex outcomes, alongside brigadlng key messages from our existing work on civll Servi reform, public service performance, constitutional refomi and more. As we have done ahead of every planned general election, we will also be working with the opposition on supporting their preparation for govemment in the event they win the 8lection. We will be continuing to focu$ on impact from our existSng work- we started in early 2023 with conference looking at government in the year ahead and plan a series of special conferences throughout 2023, for instance on our nel zero and ministers work. We'll be producing several of our set-piece reports on the slate of govemment.. Performance Tracker and Whitehall Monitor, continuing with our series of deep dives into particular departments including the TaSury and the Home Office and producing new reports on topics including making the most of English devolution and prevention in public services. We'll be entering the nexi phase of our development of the IfG Academy - expanding our ministerial training and OUT academic training, and focusing more heavity on producing high quality written products based on our research.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2023 How our a¢tivities deliver publlc bonefit In shaping our annual objectives and business plans the Institute has considered the Charity Commission's guidance on public benefit, including the guidance 'public benefit.. running a charity {PB2)'. The Institute produces high-quality research reports, comments and analyses that are independent of government, political parties, indNidual clients or companies. These are promoted wideiy and free of charge to individuals. organtsations, practitioners and others with an active interest in the government of the UK. Together, these reports and the events arising cut of our work provide a robust evidence b8se on the govemance of the UK. This helps equip the public, parliament and government itself wllh knowledge and infomalion on the issues affecting the governing of the UK and the training of its Current and future ministers. Our staff are frequentty inviled to discuss the findings of our research on UK and international radio and television and in print media. In this way our research helps inform the publ debate, media oullels and individual Gitizens. We have a social media presence on Twitter, Facebook, Instagram and Linkedln which is free and acsIble to the public. W& enGourage those with an Inte$t in our work to become involved ty lolnlng our mailing Ilsts and receiving newsletters and being invited lo attend our public events. Wtth the eslablishmenl of the IfG Academy we hope to share our expertise even more widely in order lo improve the process of policy-making 81811 levels. We monitor the impact ofour work very ¢losety and report on it at each meeting to the Board. We believe that if we can bring about or encourage even only minor improvements in govemment effectiveness then thls would constitute a significant public gc. In fact. we aim to do much betler than this and are happy lo be able to report a growing Teputation and influence with a corresponding impact on the thinking of govemment. Inevitably, however, there remains much scope for our work. Financial Review The Instilule's consolidated incorne amounted to £5,740,123 {2022'. £5,399,417) whilst onsolidaled expenditure amounted lo £5,843.450 12022.. £4,906,946) as shown in the Statement of Financial Activtties. After transfers to designated funds, Ihe consolidated loss on all funds was £{103,327). The charity's trading subsidiary, IFG Enterprises Limited. had income from only a limtted number of events during the year 85 demand for room hire was h)w in the immediate aftermath of the pandemic. The company has made a small profil for the year of £5,749. A Board Resolution of 11th December 2018 mandated the automatic transfer of the IFG Enterprises Ltd surplus to the Inslilule going fOard and a gift aid transfer of £3,743 Ilhe net overall P&L position al 31 St MarGh 20231 will be made lo the Institute. We have returned to more active promotion of the hire of the premises in 2023-24. We will also be using IFG Enterprises Ltd to invoice all sponsorship and Academy activity going forward, whether or not it is charltable activity.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2023 The Institute made an overall loss in 2022-23. If. however. bmo significanl unusual costs are excluded, it made a considerable operating surplus. This was primarily due to the ex¢eptional performance of its partnerships team in generating over £1m of financial support for the research programme from Corporate partners who were increasingly interested in the Instilule's work in areas such as the effectiveness of public servIs, regicsnal devolutlon, implemenlalion of nel zero and levelling up policy. We also saw an ongoing increase in bookings from academic institutions for courses to SUPkK)rt early career researchers lo understand government and make an impaGt on the policy debate. Against this there were, as noted above, two sunific8nt items whlch caused the Institute to record an overall deficit for the year. Firstly, the board noted with concern the impact of inflation on its staff and in November 2022 responded by mandating a one-off payment to stsff, the tol81 cost of which was in excess of £250,000. Second, under the terms of the lease, the Crown Eslale required the Inslilule lo cover the cost of painting the outside of the building. The painting was completed in December 2022 and provision has been made for the total cost of thls, although the ftqures are not yet finalised, al just under £200.000. We continue to monitor the impact of inflation and wtential iecession which represent a onsider8ble risk to the Institute's financial plans. Principal funding sources The Institute's core funder is the Galsby Charitable Foundation. Core funding income from the Galsby Trusl in 2022-23 was £4,704,15012022.. £4,613,111). A three-year plan was produced during 2022-23 setting out the research programme the Institute inlended to undertake lo 2026 along with Ihe associated cost. A funding request was then submitted lo Ihe Gatsby Trustees asking for their support to deliver the plans. Approval for funding for the three-year period lo March 2026 was given by the Gatsby Board in February 2023. In addition to this core funding, the Institute funds ils project work and events by generating income from a range of corporale and academic funders and trusts. Details on all sources of funding are provided on the Institute's website. As noted above. it was an exceptionally PDSltive year for resource generation with the target of £700,000 exceeded by more than 430k and a slgnificant pipeline of opportunltles in place for 2023-24. R•$erv•$ poli¢y Total unrestricted funds decreased to £3,383,152 as at 31 Mah 202312022.. £3,486,479). There are no restricted reserves (2022: £nil). Fixed assets represent £213,241 (2022.. £128,681) of the unrestricted funds tot81. The new lease for 2 Carlton Gardens was signed after year end on 4th April 2023 and the legal obligations under thal lease are not accounted for in the 2022-23 accounts. Designated funds of £200,000 have been set aside lo provide finanGial security against future significant ontroff osts associated with 2 Carlton Gardens. In addition. the propety relocation fund of £620,000 has been established with a view to covering the polelltial costs of planning a move and re• equipping new premises in anticipation of ihe end of the 2023-2026 lease.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2023 The Govemors have reviewed their reserves Folicy and the financial risks faced by the organisalion. The Governors, poliw is that the level of reserves, defined as free and undesrgnated reserves measured by the amount of retained general funds should be at least six months, operating costs. Current gener81 fund reserves levels are £2.349.911 12021.. £2,537,798) which represent 38% of the planned expenditure of the Institute for 2023-24. It 15 therefore, in principle, the policy of the Institute to continue to build rts reserves. However, given the impact of inflation, the Board has given its approval for the Institutè to budget to broadty break even in 2023-24 with small surpluses planned for the final two years of the urrenl Ihree-year plan {2023-26). Investment policy The investment of funds surplus lo day-to-day requlrements Is discussed at the Finance & Audtt Committee. These fvnds are placed on deposit with large reputable banks with as long a maturity as is consistent with managing cash flow requirements. Unfortunately retums have remained low. Golng Concern The Institute reported a cash outflow of £127,400) for the year12022: inflow of £666,366>. The group retained a healthy cash balance of £3,377,528 at 31. March 2023. The Govemors are of the view that the management has the capactty to react quickly to changing circumstances and the security of the medium-lemi commitment of the Gatsby Charitable Foundation provides assurance that the charity is a going GOnrn. Structure. Goveman¢e and Management Inslitute for Governmenl is a company limited by guarantee governed by its Memorandum of Assocwtion dated 16 January 2008, and revised Articles of Association adopted by special resolulion on 21 September 2010. It is reglstered as a charity with the Charity Commission. The Institute is run by the Board of Governors who are also Members and Directors of the Company and Trustees of the Charity. Gov&rnors The Board met every three month5 during the period covered by the Annual Report to manage and control the affalrs of the Inslilule. The Governors concem themselves mainty with issues of a strategic nature, deciding broad policy for the Instrtute and ensuring good governaneé and compliance. The Institute seeks lo maintain a balance of political, civil service and commercial experience as well as polrtical affiliation among the members of its Board. The senior management team undertakes the day-to-day management of the Institute'5 activities wilhin the framework set out by the Govemcrs and comprises th8 Director, the Deputy Director, the Director of Research. the Director of Finance & Resources, the Chief Economist and Programme Directors. The Executive Committee of the toard continued to meet regularty throughout the year. The Committee is chaired by Lord Sainsbury.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2023 The Finance and Audit Committee. chaired by Sir lan Cheshire, also met on a quarterly basis and reviewed the financial performance and all aspects of risk management of the Instriute. The Remuneration Committee mel Iwice in the year to consider matters relating to recruilment and retention of staff. The Articles of Associalion provide for the appoinlmenl and retirement of the Govemors on three-y8ar terms. During Ihe year Lord Sainsbury. Sir Andrew Cahn, Sir lan Cheshire and Sir David Lidinglon retired by rotation and were re-appointed for a further temi. There is a minimum of three governors and there is no upper limit, though nomially the Board will comprise a maximum of fifteen members. During the year Dame Angela Eagle joined the Board as did Tamara Finkelstein after year end. The Governors put forward and discuss potential new Board members amongst the existing members. The key principles for appointment are Ihal the Board of Governors should provlde a balance of experience including from the civil service, private sector, the academic sector and also from the major poliliGal parties. The Board should ahvays be balanced in terms of direct political affiliation to ensure its non-partisan position. There is no specific training or induclion for new governors as they have been selected based upon their experience and interest in th6 objectives of the Institute. None of the Governors receive remuneration or other benefil from their work with the charity though they may be paid reasonable travel. hotel and other expenses that they incur in onnection with their attendance at Instttute rneelin9s. All Governors must declare the nature and extent of any interest, direct or indirect, they may have in any proposed transaction of the charity and they will not participate in any discussions orvotes on such matters. The Governors must also declare any conflicts of interest that may arise. Any connection between a governor or senior manager with a stakeholder Icuslomer, supplier. sponsor, funder, government department. political party) of the charity musl be disclosed in Ihe same way as any other contractual relationship with a related party- The Institute has utilised the governance cc¥Je for charities lo assess compliance with the principles of the code and identify any measures required to Improve its govemance standards and overall effectiveness as an organisalion. Risk Management The day-to-day task of managing risk is devolved to senior management though the Governors retain overall responsibility for risk management. Reporting of significant risks, how these are managed and mitigated forms part of the regular reporting by senior managgment to the Governors at board and other sub-committee meetings. The Institute maintains a risk register in which current risks are reviewed in the context of the internal and external environment, along with their probability and impad. The focus in this risk register is on the most material risks facing the Institute., risks which if realised could have seiious consequences for all or some of our stakeholders and threaten the future viability of the Institute.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2023 The most signifant risks facing the Institute and the ones that infom our reserves policy are the reliance on Gatsby funding and the length of the lease and potential liabilities relaling 10 2 Carlton Gardens. Assurances of continuing support have been sought by the Board from the Galsby Foundation and a commitment covering the period up to and including 202>26 has been received. The wtenlial liabilities relating to 2 Carlton Gardens have been mitigated by selling aside adequate designated ieserves. During the year the Institute's systems became cloud-based and there was increased attention to cyber-security, ensuring that the Inslilule's systems were fit for purF)ose and secure. Cyber Essentials accreditation has been mainlained. Trading subsidlary The Institute has a wholly owned subsidiary, IFG Enterprises Limited, which undertakes commercial activities on behalf of the charty. The activities of IFG Enterprises Limited in 2022- 23 were limited to room and building hire. All profits of IFG Enterprises Limited are gift aided lo the Inslitute for Govemment. The Institute does not raise funds from the public and considers that it has appropriate standards and controls in place in its fundraising work with corporate and institutional clients to ensure that it adheres to the Code of Fundraising Practice. The Inslrtute takes great ¢are to ensure that its work is not influenced by fundraising activities and all funders and their contributions to the Institute are disclosed on the website. Pay pollcy for senlor staff The Board of Governors. who are the Instilule's trustees and members of the senior management team comprise the key management personnel of the charity in charge of directing and controlling, running and operating the Instr(ute on a day-to day basis. All board members give of their lime freety and no governor received remuneration in the year. There W8s one small item of governor expenses during the year. The Instltute for Govemment's policy on pay Is that it should be based on merit and that it should reward perfomance. The Instllute has a formally constiluled board sulKommittee to address remuneration issues. This meets on a regular basis throughout the year. Its remit 18 to consider the b8sis on which pay decisions are made and lo ensure they are in line with the Institute's mission and recruitment and retention strategy. It also reviews senior pay decisions and advises the Board on the remuneration of Ihe Director. Pay decisions are based on merit and. where appropriate for technical and specialist roles, market rates. The Instilule considers each year, according lo ¢ir¢um51an¢e$, whether lo apply a cost of living adjustment to salaries. The Institute's approach lo pay is to balance the need to attract, relain and molivale approprialety skilled individuals able lo deliver the necessary impact with the financial considerations of being a charity. Auditor Crowe U.K. LLP has indicated its willingness lo be reappointed as stalulory auditor. A resolulion proposing the appoinlmenl of Crowe U.K. LLP as auditors of the Charity for the year to 31 March 2024 will be put lo the Annual General Meeting. 10
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2023 Statement of Governors, responsibilities The Governors {who are also directors of the Institute for Government for the purposes of company lawl are responsible for preparing the Governors, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards {United Kingdom Generalty Accepled Accounting Practice). Company law requires the chatrty trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charttable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing the financial slalements, the Iruslees are required lo.. select suitable accounting policies and then apply them consistenlty; observe Ihe methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent., state whether applicable UK accounting standards h8ve been followed, subject to any material departures disclosed and explained in Ihe financial statements., prepare the financial statements on the going concem basis unless it is inappropriate to presume that the charity will Gonlinue in business. The Governors are responsible for keeping proper accounting records that disclose wtth reasonable accuracy at any time the financial position of the charity and lo enable them to ensure that the financi81 statemenls comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hence taking reasonable steps for the prevention and detection of fraud and other irregularities. The Govemois are responsible for the mainlenanrk and integrity of the corFrf)rate and financial information included on the charitable company's website. Legislation in the United Kingdom goveming the preparation and disseminalion of financial slalem6nls may differ from legislation in other jurisdictions. Statement as to disclosure to our auditors In so far as each of the Governors is aware al the time of approving our Governors, annual report: there is no relevant information. being information needed by the auditor in connection with preparing their report, of which the group's audttor is unaware. and each of the Governors, having made enquiries of fellow Governors that h81she ought to have individualty made, has tsken all steps thal helshe is obliged lo take as a director in order lo make himlherself aware of any relevant audrt information and to establish Ihal the audhor is aware of that information. By order of the board of trustees Lord Sainsbury of Turville (Chairl 5 October 2023 11
Indapandent Auditor's Report to the Members of the Institute for Governmont Oplnlon We have audited the financial statements of Institute for Govemment {'Ihe charitable company'} and its subsidiaries {'Ihe group,) for the year ended 31 March 2023 which comprise Consolidated Stalernent of Financial Aclivrties, Charty and Group Balance Sheets, Consolidated Slalemenl of Cash Flows and notes to the financial gtatements, including significant accounting polieies. The financial reporting framework that has been applied in their preparation is applicable law and United lQngdom Aecounling Standards, in¢luding Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practi¢el. In our opinion the financial statements.. give a true and fair view of the stste of the group's and the charitable company's affairs as al 31 March 2023 and of the gioup'8 income and expenditure, for the year then ended., have been property prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Bajls for oplnlon We conducted our audit in accordance with Inlemalional St8ndards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards 8re fvrther described in the Audrtorfs responsibilities for the audit of the financial statements section of our Port. We are independent of the group in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance wilh these rèquirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions rglating to going concern In auditing the financial stalements, we have concluded that the truslee'$ 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 rnaterial uncertainties relaling to events or conditions that, indniidually or collectively, may cast signrficanl doubt on the charitable company's or the group's ability lo continue as a going concern for a period of at least twelve months from when the financial statements are aulhorised for SUe. Our responsibilities and the responsibilities of ihe Iruslee8 With respect to going concem are d8scribed in the relevant sections of this report. Other Infomiatlon The trustees are responsible for the other Infom)ation contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor's report Ihereon. Our opinion on the financial statements does not cover the other information and, except lo the extent otherwise explicitly staled in our report, we do nol express any fomi of assurance conclusion thereon. Our responsibilty is to read the other information and, in doing so, consider whether the other infomation is materialty inconsistent with the financial stalemenls or our knowledg6 obtained in the audil or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statemenls themselves. If, based on the work we have performed, we conclude that there is a material misslalement of this other information, we are required to report that f*. We have nolhing to report in Ihis regard. 12
Oplnlons on oth•r mattors pr8¥¢ribed by the Companios Act 2006 In our opinion based on the work undertaken in the course of our audit the informalM)n given in the trustees, rtrport, whh includes the directors, report prepared for the purposes of company law, for the fi'nancial year for which the financial statements are prepared is Dnsistenl th the financlal statements., and the directors. report included wlhin the trustees, report have been prepa in accordance with applicable legal requirements. Mattern on vthich we are requlred to report by exception In light of the knowledge and understanding of the group and charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the directors, report included within the trustees, report. We have nothing lo report in respBct of the following matters in relation towhlch the Companies Act 2006 requires us to report to you if, in our oplnion: adequate and proper accounting records have not been kept.. or the financlal statements are not in agreement with the accounfjng records and retums,. or certain disclosures of Iruslees, remunerauon $pe¢ifie(I by law arg not made; or we have not received all the Infomation and explanations we require for our audit., or the Iruslees were not entf(led to prepare the financial statements in accordance wlh the small ¢ompanies regime and take advantage of the sm811 companies, exemptions in preparing the trustees, dire¢lorg' report and from the requlrement to prepare a slrateglc report. R•sponslblllties of trustses As explained more fijlly in the Irustees. responsibilities slatement Iset out on page 131. the trustees {who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of Ihe financial slalemenls and for being satisfied that Ihey 9ive a true and fair view, and for such internal control as the Iruslees detemiine is necessary lo enable the preparation of financial slalements that are free fiom material misstatement, whether due to fraud or error. In preparing the financial slatemenls, the trnstees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, 85 applicable, matlers related lo going concem and using the going concem basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no reali$li¢ alternative but to do so. Auditovs rnspon8lbllitl•$ for the audlt of Ihe financlal $tatgmonts our objectives are to obtain reasonable assurance about whether the financial statements as whole are free from material misstalement, whether due lo fraud or error, and to issue an auditols report that includes our opinion. Reasonable assurance is a high level of assurance, but is nol a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misslalement when it exists. Misslalements can arise from fraud or error and are nsidered material if, individually or in Ihe aggregate, they could reasonably be expected lo influence the economic decisions of users taken on Ihe basis of these financi81 st8tements. Details of the extent lo which the audit was considered capable of detecting irregulartties. including fraud and non-compliance with laws and regulations a sel out below. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. .or This description fomis part of our auditorfs report. Extent to lch the audit was considered ¢apable of detecting irregularities. including fraud Irregularities, including fraud, are instances of non-compliance wilh laws and regulations. We Klentified and assessed the risk8 of material misstalemenl of the financial slalements from irregularrties, whether due to fraud or error, and discussed these between our audit team members. We then designed and perfomied audit procedures responsive to those risks. including obtaining audit evidence sufficient and appropriale to provide a basis for our opinion. 13
Date: 6th October 2023
Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006
INSTITUTE FOR GOVERNMENT CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 MARCH 2023 Unrestricted Genefal Fund Designated Funds Note¥ Restriettd FurKIs Z023 Totsl Funds 2022 Total Funds Income from.. Charitable actr'vities Other tr8din9 activities Invesbnènts Other Totsl 5,706,271 13.505 8,347 12,OCO 5,740,123 5.706,271 13,505 8,347 12.000 5.740,123 5.355,103 3(KJ 302 43,712 5,399,417 Expendlture on: Raising funds Charftable actNities Totsl 7,894 5.766.892 5,774,786 7.894 5,835.556 5,843,450 660 4,9C6.286 4,906,946 68,6S4 68,664 Net Ineorn¢IlgxpendlrQl Tr•nsf•rs bètween funds N•t Movement In fund$ RfrconClll¥on of lunds: TDtal funds brought forward Totsl funds carrhd forward 134,6631 1153,2241 1187,8871 168.6641 153,224 84,560 1103,3271 492,471 18 1103.3271 492,471 2,537,798 948,681 3A88,479 2.994.(K)8 2,349,911 1.033,241 3,383,162 3.486,479 The $t*•rnent of financial act9 IncIJe9 811 gain5 and kJs8e8 recc9ni8ed in the year. and expendrture derive from Cofflinuing acfyvrtie8. The amount of £68.664 allocated to d88ign8led lunds12022'. £56,0911 represents Ihe depret181ion ¢h8r9e while transfers beeen funds a 8dditlon$ to fixed 9889ts (see a180 Notes 12 & 13 on page 241. 15
INSTITUTE FOR GOVERNMENT CHARITY AND GROUP BALANCE SHEETS AS AT 31 MARCH 2023 Nots8 Group 2023 Charlty 2023 2012 2022 Flx•d Assets Tangible fixed assets Intangible fixed assets Irweslments 12 13 14 99,459 113,782 75,941 52,740 99,459 113,782 100 213.341 75,941 52,740 100 128.781 213.241 128.681 Curront Assots Debtors Cash at bank 410,879 447,503 3.377.528 3.549.805 3,788.407 3.997,308 510,484 538,351 3,275.244 3.460.883 3,785.728 3,999,234 Curr9nl Llabllltlo8 Credilor$.' amounts falling due within one year 16 618.496 839.510 615.917 639,530 Net Current Assets 3,169.911 3,357,798 3.169,811 3.359.704 Total assets current Ilabllities Total Net Assets less 3,383.152 3.486.479 3,383,1S2 3,488,485 3 383.152 3.486.479 3,383.152 3,488,485 Tho funds Oft charity: Unr•8trlcted Funds General Fund Oesignated Funds 19 2,349,911 2,537,798 1,033,241 948,681 3.383,152 3.486.479 2,349.911 2,539,804 1,033.241 948,681 3,383,152 3,488.485 Company number 6480524 The profillloss for the financial year dealt wth in the financial statements of the pargnt company wa £1105,333112022'. £492,831). The govemor8 have preparod group accounts in accoidance wlh section 398 ofthe Companies Act 2006 and section 138 of the Charitie$ Act 2011. These accounts are ppared in accDrdance wlh the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accoun15 required by the Comp8nles Act 2006 and are for clrculation to members of the company. Lord Sainsbury ol Turvil Chalr of Board of Govemors on behall of the govemors Approved and authorised for Issue by the Governors on 5 October 2023 16
INSTITUTE FOR GOVERNMENT CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDING 31 MARCH 2023 Group 2023 2022 Cash flows from oporatlng actlvitios-. Net cash provided byllused in} operating activitie8 (27,400) 666.366 Cash flo from Investing acllvltlo$: Interest income Puicha8e of tangible fixed assets 8.347 (153,224} 302 1104,7191 Net Ca$h us8d in Inv•8tlng a¢tlvltle$ 1144,8771 1104A17) Change in cash and cash equivalonls In the reporting period {172,2771 561,949 Cash and cash ¢qulvalents atthe beginning of the r•porting p•rlad 3 S49 805 2 987 856 Total Cash and cash gquival8nts at thg end of the reportlng porlod 3 377 528 3.549.805 RECONCILIATION OF NET MOVEMEMT IN FUNDS TO Ngf CASH FLOW FROM OPERATING ACTIVITIES Group 2023 2022 Ngt Incomel(expendlturel for the reporting perlod Adlu$tments for.. Depreciation charge Interest income {IncreasellDecrease In debtors Increasel{Decreasel in credrtors 1103,3271 492,471 68,664 18,3471 36,624 21.014 56,091 13021 {22,684) 140 790 Net cash provld8d by oporatlng a¢tlvlti 666 366 17
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 ACCOUNTING POLICIES Bas18 of preparatbon The financial slateronts have been prepared in accordance with Accounting and Reporting by Charities.. Slalemenl of Recommended Practice applicable to charit5 preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 {effeclive 1 January 20151- (Charities SORP IFRS 10211. the Financial Reporting Stsndard applicable in the UK and Republlc of Ireland IFRS 10218nd the Companies Act 2006. Institutè for Government meets the definition of a public benefft entity under FRS 102. Assets and Ilabilities are inlllally wognised at historical cost or Iransacts'on value unless otherwise stalod in the relevant accounting policy nolelsl. Preparntlon of the accounts on a going concam b8$19 The Governors having assessed the charity's fi'nancial posttion, its plans for the foreseeable fvture, the risks to which il is exposed and fofecasl projeclions are satisfied that rt remains appropriate to prepare the finan¢ial Statements on the going concern basis. Further delalls ¢)n the Inslilule's going concem as8essmenl are provided in the Governors, Annual Report on page 8. Critical accountlng Judgements and 05timato uncortalnty In the application of the charity's accounting policies. which are described in this re. Govemors are required lo make judgements. estimate8 and assumptions about the carrying value5 of assets and liabilities that are not readily apparent from other sources. The estimates and underfying a55umptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these eslimales. The estimates and underlying assumplitsns are reviewed on an on-going basis. Rev18ions to 8ccounling eslimales are recognised in the period in whieh the estimate is revised if the revislon affects only that period, or in the period of the revision and future periods. The 2023-26 lease on 2 Carlton Gardens was signed after year end so there We no related legal Dbligalions al year end. All fijture obligations under that lease wll be reassessed and provided for as necessary over the lrfe of the lease. The GOverrr8 are of the vlew that there are no assumptions conceming the fiJl(Jre or estimation8 of urtainlY affecting assets and liabilities at the balance sheet date which are likely to re5uII in a material adjuslmenl lo their carrying amounts in the next ffinancial year. dl Group financlal statsments In accordan¢e wilh the requirements of SORP 2015 the ftnanclal stslements consolidate the resuR8 of the charity and its wholly owned subsidiary IFG Enterprises Llmbled on a line•by-line basis. The results of IFG EnlerpYise8 Limited are shown In Note 5. Incomg Income from any source including grants 1$ Tecognised when the charty has entitlement lo the funds, any performance conditions attaching lo the itemlsl of income have been met, il is probable that the iome will recelved and the amount can be measured feliably and 18 not deferred. Our principal source of Income. from the Gatsby Charitable Trust, is given as an annual grant towards our general operating costs. The grant is therefore recognised evenly across each financi81 year. For other grants and income for specific prolecls and events series, income Is recognlsed en any performance criteria have been mel and wrth regard to the length of the project being funded or the number and liming of events in a funded series. Income recelved in advance for any event, project or room hire or provl8ion of other speclfied servlce Is deferred until the criteria for income recognition are met including when an event actually takes place or, where a proje¢l runs across financial years. wlth regard to $1)UrCe inputs Into a project or specthc deliverable or performance criteria. 18
INSTITUTE FOR GOVERNMENT NOTESTO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Fund accounting Unre51ricled funds are available lo Spend on actsvilieg that further any of the purposes of the charity. Designated lunds are unrestricted funds of the Charity lch the Governors have decided al their discretion lo sel aside lo use for a Specific purpose. Rostricted funds are donations vA)ich the donor has specifi'ed are ID be solety used for p8rti¢ular areas of the Institirte's work or for specific projects being undertaken by the In51ilule. gi Expendlture and Irrecoverablo VAT Expenditure 1$ rgnISed once there 13 a legal or constructive obligation to make a payrnènt to a third paty, il Is probable that settlement wll b• wquired and the amount of the obligation can be m¢asured rellably. Expenditure Is classiwed under the following activity headlngs.. Costs of raislng funds comprise Ihg costs of cornmercial trading by the subsldiary and thelr assoaated support costs., • Expenditure on charitable a¢lwth'es includes the costs of events. projects and research and other activities undertaken lo further the purposes of the charity and their associated support costs., • Other expendrture represents those items not falling into any other heading. Irrecoverable VAT is charged as a c081 against the activlty for whioh the expendfture was incurred. h) Allocatlon of Support ¢¢Y4t8 Support Gosls are those functions that as8lSt the work of the charity bul do not directly undertake charitable activities. Support costs include back office costs, finance, personnel. payroll and governance costs vthich support the Institute's projects and a¢liviliès. These costs have been allocated between cost of ralslng funds and expendf(ure on charitable activities. The bases on whiGh Support costs have been allocaletj are Sel gut in Note 8, Tanglble flxed a88ets Individual fixed assets costing £500 or more are recognlsed al cost and are deprec181ed over thelr eslimaled useful economic lives on a slraight-line basis as follows.. As8Ot category Lung leasehold buildingfimprovements Office equipment Furniture & fillings Annu81 rate Based on lenn of leaseleslimaled lease extenslon 33% 20% Intangibla fixed assets The Institute launched a new web8lte during the year. Ils cost wll be amortlsed ovef its estimated useful economic lrfe of three years on a straighl.line basi$. kl Financial instrum•nts Institute for Government has financial liabilrties of a kind that qualify as basio financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial asse15 held al amortised cost comprise ¢88h and bank in hand together with trade and other debtors and accrued income. Financial liabilitias held at amortised cost comprise trade creditors, other ¢redilc>rs and accruals. 19
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 Dobtors Trade and other debtors are recognised at the settlement amount due after any trade discount Offed. ml Cash at bank and in hand Cash at bank and cash In hand Includes cash and short term highly liquid investmen15 with a short maturity of three months or $S from the date of acquisition or opening of the depo*t or similar account. Credltors and provl8lon$ Credllors and provisions are recognised where the charty has a present obligation resulng from a past event th81 wll probabty result in the transfer of fvnés lo a third party and the amount due to settle the obllgation can be measured or estimated reliably. Pen8ion$ The Charity has a money wrchase scheme for qualifying employees. Pension co818 charged to the Statement of Financlal Activities represent Ihe contributions payable by the Charity in the period. LEGAL STATUS OF THE INSTITUTE The Instllute Ss 2 eompany limited by gLJarantee incorporated in England & Wales and has no sharg Cap1. In the event of the charrty being wound up. the liability in respect of the guarantee is limited lo £1 per member of the charity. The Inslilute's rpg15tered offirR address is 2 Carfton Gardens, London. SW1Y SAA. FINANCIAL PERFORMANCE OF THE CHARITY The consolidaled slalement of financial activities include3 the re$ult5 Qf the charty's wholly owned subsidiary which undertakes commercial activities including room hire on behalf of the Charity. The surnmary flnanclal performance of the charity alone is.. 2023 2022 Income Gift aid from subsidiary company 5,726.480 3,743 5,399,117 5.730,223 5.399.117 Expenditure on raisin9 funds and charitsble activities 5,835,558 4,906,286 Net Income 1105,333) 492,831 Totsl funds brought lorward 3,488,485 2,995,654 Total funds carried forward 3383,152 3.488,485 Represented by., Designated unrestricted income funds General unrestricled income fvnds 2,349,911 1,033,241 3.383,152 948,681 2.539,804 3,488,485 20
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 INCOME FROM CHARITABLE ACTIVITIES 2023 2022 Grant from Gatsby Charitable Foundation Project and event sponsorship income Learning and development courses Olher income from charitable activities 4.704,150 770,659 231,348 114 5 706,271 4,613.111 575,159 166.522 311 5,355 103 The Galsby Charitable Foundation continues lo provide an annual inftation adjustsd general purposes grant towards the oore operational co815 of the In5b'lute. This grant is formally committed until March 2026. INCOME EARNED FROM OTHER ACTIVITIES The wholly owned trading subsldiary IFG Enterprises Limited is InGorporaled in the United Kingdom (company number 072402421 and pays all of rts profits lo the charity under the grfi aid scheme. IFG Enlerproses Limited continues to manage the commercial actNilies of the Institute for Government, principally r¢M hire and other event management. Financial statements for Ihe company's financkgl year lo 31 March 2023 have been prepared. A summary of the results is shown below. The summary financial perfomiance of the subsidiary alone is.. 2023 2022 Tumover Interest Income Cost of sales and administrative costs Net profit 13,505 138 300 680 13601 5.749 Retained earnings brought fowrd Amount gift aided lo the charity Retained earnings carried forward {2.0061 11,646) There 18 a management fee of £7,297 payable tothe parent company included in the resutts atove {2022.' nil) relating lo the cost of sales of events held by IFG Enterprises Limited. A8 at 31 March 2023, IFG Enterprises Limited had tolal assets of £104,58012021.. £8B.9421 and total Ilabilltle8 of £104,48012021.. £90.8981. OTHER INCOME Other Income includes £12.000 12022.. £43,712) which represents recharge3 for the use of facilities al 2 Carlton Gardens by the Publio Chairs Fowm including ulilrties and Dther seNice c0818 incurred by the Institute in respect of the whole building and is unrestricted general fund In¢om&. 21
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES A5 in previous years there is no simple di8tinctlon befvleen Research and Leaming & Development a5 identifiably different charitable actNilies. As such expenditure on charitable activrties is not 8egmenled. The expenditure on our charitable work is analysed below. 2023 2022 Stsff salaries and other staff related costs Premises and other building related costs Events and Stsff Catering Transcription and other research costs Office supplies IT costs Depreciation Finance costs including bank charge¥ Websf(e and media costs Irrecoverable VAT Govemance ¢osl8 Support costs 3.693,991 3,257,467 895,600 675.950 370,266 145,187 6,963 15,830 12.088 6,520 67,137 83,213 68.664 56,091 2,244 1.768 118,330 158.697 134,920 84,575 39,173 44,282 426,180 376,706 Totsl 5,835,556 4,906,286 ANALYSIS OF GOVERNANCE AND SUPPORT COSTS The Institute Inltlally l¢Jentifies the costs of its Support functions. 11 then identifies those costs which relate lo the govemance functh)n. The table below gives analysis of 8UPPOrt and govemance costs Including the basis on which these are calculated. Genernl support Governanc• Totsl 2022 Basls of calculatitrn Staff costs 314,415 15.923 330,338 300,867 Support functlon staff tlme spent on support function ath'vits'es Buildlng costs 95,548 95,548 92,175 Support fvnction 8taff as pr¢¥)ortion of FTE stsff Audit and accounlanGy fees: Audit Tax advisory 21,750 1,500 21.750 1,500 17.596 7,230 Governance Govemance Legal and professional fee5 16,217 16,217 3,120 Govemance Total 426,180 39 173 465 353 420.988 The total paid lo the charity's aLvJilors was £21,250, of which £20.750 is included in this not? and £500 in raising fvnds. 22
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 ANALYSIS OF STAFF COSTS. TRUSTEE REMUNERATION AND EXPENSES AMD THE COST OF KEY MANAGEMENT PERSONNEL The aggregate payroll costs were as follows- 2023 2022 Salaries and wage$ Soclal security c08ts Pen$ion costs Other ¢osls 2,88S,854 2.662,696 350,707 277,541 541.671 371,473 9.801 7,859 3,788,033 3.319,569 During the year there were no redundancy or termination paymenls12021.' £nill. The number of staff wth emoluments greater than £60,000 was.. 2023 2022 £60,000- £69.999 £70,000- £79,999 £80,000- £89,999 £90,000- £99,999 £100,000 - £109,999 £110,000 £119,999 £120.000- £129.999 £130.000 - £139,999 £170.000- £179,999 £280.000- £289,999 Penslon costs are allocated lo acllvib'es In proportion to the relatsd staffing costs incurred and are wholly charged to unrestrfcted fvnds. The banding dI8closures are the gross pay of higher paid stsff nel of penslon and charitsble glving salary exchange, which may have the effect of moving the individual to a lower emoluments band. The charity trustees were not pald nor dit1 they fe¢elve any other benefits from employment with the chadty or ¥ubsidiary in the year12022'. £nill. There wa$ one payment of £50.57 made for expenses during the year12022: £nill. No charity trustee received payment for professional or other services supplied lo the charity12022.. £nill. Durlng 2022-23. the key management personnel of the pa¥ent charity comprised the Iruslees, the Director, Deputy Director, Dlreclor of Research, Director of Finance & Resources, Director of Partnerships, Director ol CommuniGalion$ and Marketing, Programme Directors and Chief Economist of the Institute for Govemment. The total employee benefits of the key management personnel of the charity were £1,399,246 12022.. È1,248.9081. The key management personnel of the group are the same as those of the Chartty. 10. STAFF NUM8ERS The average number of persons employed by Institute of Government whether on a fvll lime or part time basls during the period, an81ysed by category. was as foll(Iws'. 2023 No. 2022 No. Research, Learning and Development Office, management and seNice$ 35 16 17 23
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 11. CORPORATION TAXATION The Charity is polenlially exempl from laxalion in respect of Income or capital gains received wthin categories covered ljy Chapter 3 Part 11 Corporation Tax Act 2010 or Sectlon 256 of the Taxation of Chargea& Gains Act 1992, to the extent that such income or gains are applied exclusively to charItab purposes. 12. TANGIBLE FIXED ASSETS Group and Charfty Cost Leasehold Improvomgnls Offlce Equipmont Fumltur8 & Flttlngs Total Balance brought forward 1 April 2022 Addlllons Transfer lo Intangible Assets Disposals 2,857,211 625,861 63,724 425,511 3,90B.583 17,805 81,529 Balance carried forward a131 March 2023 2857211 689.585 443 316 3.990,112 Dapro¢18tlon Balance brought forward al 1 April 2022 Charge for the period DIspD8a18 2,857.211 566,094 45.162 409.337 3,832,642 12,849 58.011 Balance carrled foThvard 31 March 2023 2857211 422.186 3.890 653 Not b¢¢k value at 31 March 2023 Nel book value at 1 April 2022 59,767 75,941 13. INTANGIBLE FIXED ASSETS Assots undor Constructlon Intanglbl• A$sots Total Cost Balance bmught foN4ard at 1 April 2022 Additions 52,740 71,695 52,740 71.695 Transfers 124435 124.435 Balance carrled foNard at 31 March 2023 124,435 124,435 Amortlsallon Balance brought forward al 1 April 2022 Charge for the period Disposals 10,653 10.653 Balance carried fOard 31 March 2023 10.653 Net book value at 31 March 2023 113782 113 782 Net book value al 1 April 2022 52,740 52,740 The Institute launched r(8 new websrte In January 2023. 24
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 14. INVESTMENTS harfty 2023 2022 Investment in subsidiaries 100 100 The charty holds 100 shares of £1 each in its wholty owned trading 8ubsidiary company IFG Enterprises Limiied which is incorporated in the Unlt$d Kingdom. These are the only shares allotted. called up and fully pald. The activities and results of Ihls company are summarised in Note 5. 15. DEBTORS Group 2023 Charlty 2023 2022 2022 Trade debtor8 Other debtors Amounts owèd by subsidiary Prepayments and accrued income 267.425 2,820 202,947 3,928 265.128 2,820 101,902 140,634 202,947 3,928 90,848 240,62B 140.634 240,628 410,879 447,503 510.484 638,351 10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2023 Charlty 2023 2022 2022 Trade creditors Accruals and deferred income Other tsxalion and social s¥urty Other creditors 138,407 385,682 84,723 9.704 156,809 382,025 90,396 10,280 138.407 385,662 82.144 9.704 156,809 382,025 90,418 10,280 618,496 639,510 615.917 639.530 17. DEFERRED INCOME Group Charfty 2023 2023 2022 2022 Deferred Income at 1 April 2022 Resources deferred during the year Amounts released from previous periods 114,288 119,308 111788 162,148 108.880 156740 114,288 119.308 111788 162,148 108,880 156740 121,808 114.288 121.808 114.288 25
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 18. ANALYSIS OF CHARITABLE FUNDS Analys1$ of movements In unrestrlctsd and re¥tri¢tsd lunds 2022-23 Balanco Incomo Expendltur• Transfers Balance 1 Aprfl 2022 31 March 2023 Unrostrl¢tsd Income Fund6 Gen8ral funds 2.537,796 5,740.123 15,774,7861 (153.224} 2,349,911 Deslgnatsd Fundg Fixed as$el fund Propety TrloGalion fund Capital and maintenance fund 128.681 620,000 168,6641 153,224 213,241 620,000 200,000 200,000 RestrScted Fund$ TOTAL FUNDS 3.486,479 5,740,123 5.843.450 3,383 152 Analysis of movemts In unrestricted and restrlcted funds 2021-22 Balan¢e Income Expenditure Trnn$fer5 Balan¢• 1 Aprll 2021 31 March 2022 UnroStrlct•d Income Funds General funds 2,093.955 5.399,417 14,850,855) 1104,719) 2.537,798 Deslgnatèd Funds Fixed a33et fvnd Property relocation fund Capital and maintenance fund 80,053 620,000 158,091) 104,719 128,681 620,000 200,000 200,000 R•Btrict8d Funds TOTAL FUND8 2 994 008 5399417 4 906 946 3 486 479 The fi'xed asset fund represents fL4nds set aside equivalent to the nel book value of the fixed as¥els of the organisalion. The fixed assets are depreciated over time and therefore 11 Is appropriate lo puk fijnds aside covering the reduction in economic value ofthe Insb'tule's fixed as$¥ts. The property relocation fund represents a round Sum estimate of the replament cost of office equipment and fixtures and fittings in Ihe event of an office move al the end of the lease at 2 Carlton Gardens. The capitsl and malnlenance fund represents funds pul aside lo cover futu costs in relats'on to 2 Carlton Gardens which, by their nature. Gan be both large and unpredlclable In liming. The 2023-26 lease for Carfton Garden was gned after year end, Where il imposes legal obligations, provislon 11 be made over the lif9 of the lease to coverlhem. The need for designated funds will be assessed accordingly. 26
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 19. ANALYSIS OF GROUP NET ASSETS 8ETWEEN FUNDS Unrestrlctsd Re$tsictod Group total fund• funds Gon•ral Deslgnated funds Fund balances at 31 March 2023 aro reprosented by: Tangible fixed assets 213,241 213,241 Current assets 2,968.407 820,000 3,788.407 Curient Ilabililie8 618.496 618.496 2,349,911 1,033,241 3,383,152 Unrestricted R•strict•d Group totsl funds funds Gen•ral De$lgnat•d funds Fund balanG98 at 31 March 2022 ar• r•prgs•nt•d by- 128,681 128,681 Tangible fixed assets 3.177.308 820,000 3,997,308 Current assets 1639.5101 (639,5101 Current Ilabi1S1ies 2,537,79B 948,681 3,486,479 27
INSTITUTE FOR GOVERNMENT NOTES TOTHE ACCOUNTS YEAR ENDED 31 MARCH 2023 20. OPERATING LEASE COMMITMENTS Al 31 Mah 2023, the charity had the folln9 total operallng lèase commltmenl5.' Group 2023 Charlty 2023 2022 2022 Operating lease comMentS due.. Not later than one year Later than one year and not later than five years 5,315 485,000 5,315 485,000 The above commitments represent the charge for an operating lease on 2 Carfton Garden8. The lease with rent get al £485,00 expired on 4th April 2023. A Ihree•year lease WTth rent sel al £600,000 was slgned after year end on 41h April 2023. Thls has been treated as a post balan¢e sheet event. The Charfty has Sel aside £2C>Ok as a designated fund for any malntenance and reinslalemenl costs which may be needed during the remainder of ils lease al Carlton Gardens. eTe the 2023-26 imposes legal obllgations, provislon will be made for the estimated cost over the life of the lease. 21. RELATED PARTY TRANSACTIOMS The charity does undertake transactions wrth it3 wholly ovmed subsKliary IFG Enterprises Limited in the nomial course of business. For 2022-23 there was a recharge of £7,297 to IFG Enterprises Lirnited12022.. £nill for the costs Sncurred by the Inslilule in supporting the external hire business of IFG Enterprises Ltd. When there are malning profits from its business they are gift aided by IFG Enterprises Limited tg the Inslilute foi 2022.23 this amount wll be £3,74312022.. £nS1). There were no other related party transactions during the year. 28
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2023 22. COklPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 2022 un$tricted General Fund Designated Fund6 Notes Restrlcted Funds 2022 Total Funds 2021 Total Funds Income from.. Charitable activit*s Other trading activities Inveslm•nts other 5,355,103 300 5.355,103 300 302 43.712 5.399.417 5,367,974 302 43,712 5,399,417 86,333 5,456,952 Totsl Éxpendlture on.. Ralsing funds CharItae aclvits. Totsl 660 4,906,286 4,gJ6,946 1,846 4.628.765 4,630.411 4.850,195 4,850,855 56.091 56,091 N•t lncomol1oxnd1IurQ> Tran8f•rn between fund Net hlov•ment in funds Reconclllatlon ollvnd$'. Total fund8 brought forward Total fundj carrfed forward 548,562 1104,7191 443,843 156,0911 104.719 48,628 492.471 826,541 16 492,471 826.541 2,093,955 900,053 2.W.008 2,187,467 2.537,798 948,S81 3A86,479 2,994.008 The statem¢nt of financial adivthe8 includes all gains and108ses rognISed In tr year. All incorne arkj expenditure ¢Jerive from contlnuing a¢tivities. 29