INISTITUTE FOR GOVERNMENIT ANNUAL REPORT AND ACCOUNTS FOR THE YEAR TO 31 MARCH 2025 Charity number 1123926 Company number 6480524
INSTITUTE FOR GOVERNMENT ANNUAL REPORT AND ACCOUNTS FOR THE YEAR TO 31 MARCH 2025 CONTENTS Pages Legal and Administrative Infomiation Governors, Annual Report 3to13 Independent Auditorfs Report 14to16 Consolidated Statement of Financial Activities 17 Charity and Group Balan Sheet 18 Consolidated Statement of Cash Flows 19 Notes to the Accounts 20to34
INSTITUTE FOR GOVERNMENT LEGAL AND ADMINISTRATIVE INFORMATION FOR THE YEAR TO 31 MARCH 2025 Board of Governors Governor Lord Sainsbury of Turville Anand Aithal Baroness Valerie Amos Sir Andrew Cahn Sir lan Cheshire Miranda Curtis Baroness Susan Kramer Sir David Lidington Tamara Finkelstein Chair Appointed 17 September 2024 Resigned 5 November 2024 Chair, Finance & Audit Committee Governors are appointed for an initial term of 3 years. They may be reappointed for further periods of 3 years. After the year end, on 11 June 2025, Lord Sainsbury of Turville resigned and Edward Michael Balls was appointed to the Board. On that date, Sir lan Cheshire became Chair of the Board. In May 2025, Anand Aithal took over as Chair of the Finan & Audit Committee. Executive Directors The Director and Chief Executive of the Institute is Dr Hannah White. The Director is responsible for the day-to-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 & Registered Office 2 Carlton Gardens London SW1Y SAA Website www.instituteforgovemment.org.uk The Institute forGovernment is a registered Gharity (No.1123926) and a company limited by guarantee registered in England and Wales (No.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 2025 The Governors are pleased to present their annual directors, report together with the consolidated financial statements of the charity and its subsidiary for the year ended 31 March 2025 which are prepared to meet the requirements for a directors, report and accounts for Companies House. The financial statements comply with 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 accordan with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015). Our purposes and activities The Institute for Government ('the Institute") is an independent charity. We work with all the main political parties in Westminster and with senior civil servants in INlliitehall, providing evidence-based advi that draws on best practice from around the world. The purposes of the Institute for Government are.. The advancement of education in the art and science of government in the UK for the benefit of the public on a non-party political basis, and The promotion of efficient public administration of government and public service in the UK by providing programmes of education, training, research and study for the public benefit on a non-party political basis. We continue to deliver our vision to increase the effectiveness of govemment in the UK, by improving the prosseS of govemment, and enhancing the decision making and skills of civil servants and politicians. Our focus is on bringing about long term, sustainable change, with an emphasis not just on producing proposals but on working to see them implemented and have an impact on the way the UK is governed. Principal activities and achievements 2024-25 was another exceptionally busy and successful year for the Institute. The election was the defining feature of the year, with lots of work on preparation for government in the run-up to the election and on training for new MPS, ministers and private office staff and select committee members following the change of government. In a period where government faced significant challenges, we continued to focus on the key questions for government effectiveness. In detail, our work covered: Civil Service the year started with us promoting our 2023124 work on the centre of govemment. making the case publicly and privately for changes to No10 and the Cabinet Office in particular. After the general election we published 20 ways to improve the civil service which distilled our key insights on civil service reform into a digestible format for new ministers and senior officials. We followed that up with the latest Whitehall Monitor published in January 2025.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2025 We amplified our recommendation to introduce a civil service statute by publishing a draft Bill for the government to adopt, promoting it in a half-day conference. Throughout the year we continued a drumbeat of commentary about the state of the civil service and the priorities for change after the election. Policy making - our work in 2024-25 focused on how the government could deliver its core missions from clean power and housebuilding to closing the opportunity gap. We published a timely report on how Labour could overcome the ten biggest barriers to achieving clean power by 2030, released just one week before the election. This was followed by a series of events and extensive commentary throughout the year. We also published new research on how to improve the government's track record on housebuilding and asylum policy - the latest instalments in our Chronic Policy Problems series. We launched a new series Policymaking for Left-8ehind groups exploring how the government could use its mission-based approach to deliver better outcomes for groups who have eXperIend persistent disadvantage, across many policy areas and decades. Our first paper in this series focused on school readiness, highlighting stark disparities between demographic groups and what this meant for the government's ambition to close the opportunity gap. Devolution The 2024-25 financial year was a very busy and successful period for our devolution programme. It included the publication of five influential reports.. on the new government's devolution agenda, how to 'complete the map, of devolution, urban regeneration, combined authority constitutions, and local government reorgansation. We also hosted a number of public and private events in London and elsewhere, including with four metro mayors, the minister for devolution, the deputy first minister of Scotland, and four local and combined authority chief executives. We also engaged privately with the government, combined and local authorities to help to shape policy and implementation in relation to devolution. Public Finances - our work this year focused on achieving impact in the run-up to and after the general election, focusing on developing and disseminating solutions to key problems in the functioning of fiscal policy, where the election provided an opportunity to convince a new government to take a different approach. We published new research on capital spending in public services and how to run the multi-year spending review and continued to follow up on earlier work on fiscal frameworks and tax policy making. We also developed and published new work on local growth plans, focusing on developing recommendations for how the new government could maximise the opportunities provided by devolving more responsibilities to new and existing strategic authorities. Public bodies and regulation - we published Parliament and Regulators before the election and worked with parliamentary staff in resS to develop training and how-to guides for select committees. Post-election, we concluded our trio of reports on the life cycle of public bodies with How to set up a public body, which we have followed up with input and support for several set-up projects. Public events and private roundtables on artificial intelligence, together with a short publication on its use by the civil service, have also consolidated our work in this area. We also started work on the role of regulation in enabling and incentivising necessary transformational investment in the water and energy sectors. Public services - The team has focused this year on framing the choices facing the new government. This included a report on how to address the prisons crisis and a major analysis of the biggest problems facing public services and how to address these published within
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2025 weeks of the election, and an assessment of the autumn budget and the implications for the spending review. Prevention has been a big theme of our work this year, with the publication of an agenda- setting report on how the govemment could take a preventative approach to public seniices and a follow up paper on the role of youth work in prevention. We also published the first in a new series of Performan Tracker local reports, as well as publications on integrated care systems and the general practi estate. IfG Academy The Academy continued to expand and develop its work with priority audiences. Prior to the general election, our focus was on delivering learning and development forthe opposition with our preparing for government work. Afterthe general election, we shifted our focus to supporting new members of parliament-delivering training to 63 MPS, many of whom were first-time members, from across the political parties. We worked with newly established select committees on effective parliamentary scrutiny. covering 11 committees across 2024-25. Concurrently. our work with academics continued to grow. Our flagship programmes with AHRC and ESRC were completed successfully, and we delivered workshops for existing partners such as City University, Leeds, and Exeter. We also launched new partnerships with organisations such as the University of Warwick and University of Kent. Beyond academics, we delivered training to new audiences including the Equality and Human Rights Commission, and the Trades Union Congress. We expanded our relationship with the civil service through work with the Al Safety Institute, DSIT, and the Cabinet offl'S Leadership College for Government. Altogether, the Academy delivered 96 workshops, including ministerial and private office workshops. Ministers - Preparing for a potential change of government and supporting new ministers and their teams was the main focus for the ministers programme. We worked with the Academy team to support opposition parties, as we always do ahead of a general election, to think about how to approach governing in the event of an election victory. We also delivered 15 workshops with departmental private offices to support their preparation for the election and a potential transition. Once the new government had taken office, we delivered workshops with individual ministers, groups of newly-elected MPS who became ministers and departmental teams to support their transition into government and help them understand how to work with the civil service. Our research programme continued with more work on ethics and standards in government (including analysing the new government's work in this area). ministers, roles in responding to crises. and our series of interviews with former ministers. We also made our database of all ministerial appointments since 1979 publicly available. Future Plans 2025-26 Civil service: We are examining the relationship between ministers and civil servants, looking at what factors are essential to trust and Confiden between the two. We are also looking at how the transition to a new government worked. Whitehall Monitor 2026 will, as ever, be a major project, and we will publish our analysis of the civil service fast stream. We will research the delivery model of the Department for Work and Pensions as part of the Public Finances led project on inactivity. We will look in detail at how decisions are made in government through an examination of the ministerial submissions process. We will continue our commentary and impact work on the effectiveness of the civil service, the ability of government to deliver its objectives and how to make the ntre of govemment work better.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2025 Policy making: We will take forward our series on Policymaking for Left-Behind Groups with a focus on boys eligible for free school meals (FSM) a group that consistently falls behind their peers and faces some of the most entrenched disparities. Our work will examine how the Department for Education can support local areas to meet short-term school readiness targets while addressing long-temi inequalities for this group. By bringing together on-the-ground insights with our expertise on how govemment works, we aim to help shape the policy making process so that it delivers for groups who have been persistently underserved. This case study will generate broader insights on how to improve policymaking for groups that persistently experience poorer outcomes. As part of a separate project. we plan to develop a 'one stop, digital resOUr- the first of its kind - to support officials to deliver rapid yet robust policy advi under pressure, covering the end-to-end policy prOss. Devolution: This year we are launching our 'DevoLab' series. This will include a programme of events and case studies on tOPlC8 including transport, health and skills. shining a light on the most innovative practices taking place at a local and regional level. We are continuing to work on how to extend devolution further and complete the map of Devolution in England - including developing advice on one of the trickiest final parts of completing the map- extending devolution to non-metropolitan areas. And we are beginning new research bringing together key stakeholders in a series of roundtables to look at public services as the next phase of English devolution. Public finances: This year we will launch three new strands of work. First, jointly with the civil service team, examining policy development and delivery in the Department for Work and Pensions, focussing on incapacity benefits. Second, examining the benefits and barriers to shifting the balan of public sector pay away from pensions to current pay. Third, using microdata to understand better the relationship between private sector employment opportunities and problems with recruitment and retention in the public sector across the country. We will also extend our work on local growth to examine how strategic authorities develop effective local growth plans. Building on earSier work on Treasury orthodoxy and industrial strategy, we will also develop recommendations for how to steer a grovrth mission effectively from the centre. We will also continue to follow up on and achieve impact with earlier work on spending reviews and fiscal policy making processes. Public bodies and regulation: This year will focus on achieving impact from the body of research already prOdUd. In particular we will support those setting up or abolishing bodies to apply our lessons leamed. as well as helping the government to make well-founded decisions. We will also provide support to the various parliamentary and government reviev that are expected on public bodies and regulation. Planned research focuses on economic regulation, particularly how it can support investment in infrastructure. Public services: Alongside our national analysis of public services, we will continue with our Performance Tracker local series setting out how different services have performed more
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2025 locally. We are looking at what it means to take a place-based approach to public services and how the government can support this in the spending review. We will look at opportunities for reform in particular sectors, and on particular issues such as tackling homelessness. We are also working on enabler for public service reform - building on our work on prevention and looking at procurement and how it can best contribute to delivering the governments missions. Academy: This year we are focusing on innovation and trying new ways to grow the Academy in a way that delivers high impact for the team and the IfG. We are continuing work with key partners such as the Al Safety Institute and have also gone through the process of joining the Government Learning Frameworks. This will enable us to reach more civil servants, including private office staff, and we have finalised our 'Private offi Induction, and 'Working with Ministers. training for this purpose. We intend to continue to support experts and academics joining govemment, including working with partners in academia and government to develop programmes of support for those undertaking fellowships inside government. We are also on course to deliver two open courses for academics in September and November, and demand for our regular courses continues to grow-especially with the advertisement of our new brochure for our standard courses for academics. In terms of our work with ministers, we continue building on the success of our pre- and post-election engagement to better establish ministerial and special adviser professional development as a feature throughout their time in office. Our research work on ministerial case studies over the summer will inform our L&D offers for ministers and their teams from the autumn. Ministers: As the govemment beds in, we will continue to assess their work on ethics and standards, as well as monitoring and commenting on levels of turnover among ministers. Our research programme will focus on developing in-depth case studies for ministers dealing with different situations in their roles, including managing crises and delivering in-depth reforms to public services. Our Ministers Reflect interview series will continue to capture the reflections of former ministers and their advi on how to be effective in the role. How our activities deliver public benefit In shaping our annual objectives and business plans the Institute has considered the Charity Commission's guidan 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, individual clients or companies. These are promoted widely and free of charge to individuals, organisations, practitioners and others with an active interest in the government of the UK. Together, these reports and the events arising out of our work provide a robust evidence base on the governance of the UK. This helps equip the public, parliament and government itself with knowledge and information on the issues affecting the governing of the UK and the training of its current and future ministers.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2025 Our staff are frequently invited 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 public debate, media outlets and individual citizens. We have a social media presence which promotes our work and is free and accessible to the public. We encourage those with an interest in our work to become involved by joining our mailing lists and receiving newsletters and being invited to attend our public events. Through the work of the IfG Academy we hope to share our expertise even more widely in order to improve the process of policy-making at all levels. Impact is at the heart of our work. We build the research and arguments for change, relationships, products and channels to improve government. We monitor the impact of our work very closely and report on it at each meeting to the Board. Our strong relationships, reputation and quality of argument means we have significant impact on government and expect that to grow after a general election in which the importance of how government is done was a key theme of debate. Financial Review The Institute's consolidated income amounted to £6,857,604 <2024.. £6,418,767) whilst consolidated expenditure amounted to £6,462,387 {2024'. £5,829,214) as shown in the Statement of Financial Activities. After the creation of a provision for liabilities related to the exit from 2 Carlton Gardens (see below) and transfers to designated funds, the consolidated surplus on all funds was £395,217. This surplus was partly due to underspend on salaries during the period and partly due to the continuing success of its partnerships team in generating over £1.2m of financial support for the research programme from grants and corporate partners who were increasingly interested in the Institute's work in areas such as the effectiveness of public services, regional devolution and policy making. We also saw an ongoing increase in booking5 from academic institutions for courses to support early career researchers to understand government and make an impact on the policy debate. The charrty has a trading subsidiary, IFG Enterprises Limited which undertakes commercial activities on behalf of the charity. In 2024-25 the company made a surplus for the year of £292,423. All of the IFG Enterprises Ltd surplus (the net overall P&L position at 31st March 2025) will be transferred to the Institute as a gift aid payment in line with the standing board mandate. Principal funding sources The Institute's core funder is the Gatsby Charitable Foundation. Core funding income from the Gatsby Trust in 2023-24 was £5,508,933 (2024: £5,252,561). A three-year plan was produced during 2022-23 setting out the research programme the Institute intended to undertake to 2026 along with the associated cost. A funding request was then submitted to the Gatsby Trustees asking for their support to deliver the plans. Approval for funding for the three-year period to March 2026 was given by the Gatsby Board in February 2023.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2025 During 2025-26, a new application will be made to the Gatsby Foundation for core funding for the years beyond 2026. In addition to this core funding, the Institute funds its project work and events by generating income from a range of corporate and academic funders and trusts. Details on all SoUrS of funding are provided on the Institute's website. As noted above, it was an exceptionally positive year for resource generation with over £1.2m contributed to the P&L for the year and a significant pipeline of opportunities in place for 2025-26. 2 Carlton Gardens and 16-18 Old Queen Street The lease for 2 Carlton Gardens expires in April 2026. In preparation for the lease expiry, the Institute has entered into a lease for a property at 16- 18 Old Queen St. owned by its primary funder the Gatsby Foundation. The rent is a peppercorn, but considerable renovation is required. A provision of £180,000 was created in 2024-25, to sit alongside an existing designated fund of £250,000 to provide financial security against future significant one-off costs associated with the exit from 2 Carlton Gardens. In addition, there is a designated property relocation fund of £1,000,000 to cover the potential costs of planning and executing a move and re-equipping new premises in 2026. The project to renovate 16-18 Old Queen Street is a major focus of management attention. This building is intended to be the long-temi home of the Institute and it is essential that the investment provide the facilities and resources required for the Institute's work in the coming decade. Initial contracts were drawn up around the end of 2024-25 for project managers. architects and other consultants and detailed design work was scheduled to take place over the summer of 2025. The intention is to enter into a construction contract in autumn 2025. Reserves policy Total unrestricted funds increased to £4,367,922 as at 31 March 2025 (2024.. £3,972,705). There are no restricted reserves (2023.. £nil). Fixed assets represent £309,363 (2024: £142,334) of the unrestricted funds total. The Governors have reviewed their reserves policy and the financial risks fad by the organisation. The Governors, policy is that the level of resenies, defined as free and undesignated reserves measured by the amount of retained general funds should be at least six months, operating costs. Current general fund reserves levels are £2,808,558 (2024.. £2,580,370) which represent 420A of the planned expenditure of the Institute for 2025-26. It is therefore the policy of the Institute to continue to build its resenies to provide resilience in the case of the unexpected.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2025 Investment policy The investment of funds surplus to day-to-day requirements is considered at the Finance & Audit Committee. These funds are placed on deposit with large reputable banks with as long a maturity as is consistent with managing cash flow requirements. Going Concern The Institute reported a cash inflow of £769,087 for the year (2024: inflow of £621,219). The group retained a cash balance of £4,523,829 at 31 sl March 2025. The Governors are of the view that the management has the capacity to react quickly to changing circumstances and the security of the medium-term commitment of the Gatsby Charitable Foundation provides assuran that the charity is a going concern. Structure, Governance and Management Institute for Government is a company limited by guarantee governed by its Memorandum of Association dated 16 January 2008, and revised Articles of Association adopted by special resolution on 21 September 2010. It is registered 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. Governors The Board met every three months during the period covered by the Annual Report to manage and control the affairs of the Institute. The Governors concern themselves mainly with issues of a strategic nature, deciding broad policy for the Institute and ensuring good governance and complian. The Institute seeks to maintain a balan of political, civil service and commercial experience as well as political affiliation among the members of its Board. During 2024-25, the Board was chaired by Lord Sainsbury of Turville. He stepped down at the Board meeting in June 2025 and the chair was taken by Sir lan Cheshire, formerly chair of the Finance and Audit Committee. The senior management team undertakes the day-to-day management of the Institute's activities within the framework set out by the Governors and comprised the Director, the Deputy Director, the Director of Impact, the Director of Finance & Resources, the Chief Economist and Programme Directors. The Finance and Audit Committee was chaired by Sir lan Cheshire during the year. It also met on a quarterly basis and reviewed the financial performance and all aspects of risk management of the Institute. Since year end, the Committee has been chaired by Anand Aithal. The Remuneration Committee met twice in the year to consider matters relating to recruitment and retention of staff. The Articles of Association provide for the appointment and retirement of the Governors on three-year temis. During the year Baroness Valerie Amos retired by rotation and after year end, Lord Sainsbury stepped down. There is a requirement for a minimum of three governors 10
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2025 and there is no upper limit, though normally the Board will comprise a maximum of fifteen members. The Governors put forward and discuss potential new Board members amongst the existing members. Proposals for appointments and re-appointments are reviewed by the Nominations Committee prior to approval by the Board. The key principles for appointment are that the Board of Governors should provide a balan of experience including from the civil service, private sector, the academic sector and also from the major political parties. The Board should always be balanced in terms of direct political affiliation to ensure its non-partisan position. There is no specific training or induction for new governors as they have been selected based upon their experience and interest in the objectives of the Institute. None of the Governors receive remuneration or other benefit from their work with the charity though they may be paid reasonable travel, hotel and other expenses that they incur in connection with their attendance at Institute meetings. 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 govemor or senior manager with a stakeholder (customer, supplier, sponsor, funder, government department, political party) of the charity must be disclosed in the same way as any other contractual relationship with a related party. The Institute has utilised the governance code for charities to assess Complian with the principles of the code and identify any measures required to improve its governance standards and overall effectiveness as an organisation. 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 and how these are managed and mitigated forms part of the regular reporting by senior management 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 impact. The focus in this risk register is on the most material risks facing the Institute,. risks which if realised could have serious consequences for all or some of our stakeholders and threaten the future viability of the Institute. The most significant risks facing the Institute and the ones that inform our reserves policy are the reliance on Gatsby funding and potential liabilities relating to 2 Carlton Gardens and 16-18 Old Queen Street. Assurances of continuing support have been sought by the Board from the Gatsby Foundation and a commitment covering the period up to and including 2023-26 has been received along with assurances of ongoing funding for the immediate future. The potential liabilities relating to 2 Carlton Gardens have been mitigated by setting aside adequate designated provisions and reserves, while the management of the Old Queen Street project is under constant review.
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2025 The Institute's systems are cloud-based and there is constant attention to the issue of cyber- security, ensuring that the Institute's systems are fit for purpose and secure. Cyber Essentials accreditation has been maintained. Trading subsidiary and fundraising The Institute has a wholly owned subsidiary, IFG Enterprises Limited, which undertakes commercial activities on behalf of the charity. A Board Resolution of 11th December 2018 mandated the automatic transfer of the IFG Enterprises Ltd surplus to the Institute going forward and all profits of IFG Enterprises Limited are gift aided to the Institute for Government. 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 Institute takes great care 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 policy for senior staff The Board of Governors, who are the Institute'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 Institute on a day-to day basis. All board members give of their time freely and no governor received remuneration in the year. The Institute for Government's policy on pay is that it should be based on merit and that it should reward performance. The Institute has a formally constituted board sub-committee lo address remuneration issues. This meets on a regular basis throughout the year. Its remit is to consider the basis on which pay decisions are made and to 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 the Director. Pay decisions are based on merit and, where appropriate for technical and specialist roles, market rates. The Institute considers each year, according to circumstances, whether to apply a cost of living adjustment to salaries. The Institute's approach to pay is to balance the need to attract, retain and motivate appropriately skilled individuals able to deliver the necessary impact with the financial considerations of being a charity. Auditor Crowe U.K. LLP has indicated its willingness to be reappointed as statutory auditor. A resolution proposing the appointment of Crowe U.K. LLP as auditors of the Charity for the year to 31 March 2026 will be put to the Annual General Meeting. 12
INSTITUTE FOR GOVERNMENT GOVERNORS, ANNUAL REPORT FOR THE YEAR TO 31 MARCH 2025 statement of Governors, responsibilities The Governors (who are also directors of the Institute for Government for the purposes of company law) are responsible for preparing the Govemors, Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting practi). Company law requires the charity trustees to prepare financial statements for each year which give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of reSoUrs, including the income and expenditure, of the charitable group for that period. In preparing the financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently., observe the methods and principles in the Charities SORP., make judgements and estimates that are reasonable and prudent; state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements., prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will Gontinue in business. The Governors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and the group and hen taking reasonable steps for the prevention and detection of fraud and other irregularities. The Governors are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Statement as to disclosure to our auditors In so far as each of the Governors is aware at 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 auditor is unaware, and each of the Governors, having made enquiries of fellow Governors that helshe ought to have individually made, has taken all steps that helshe is obliged to take as a director in order to make himlherself aware of any relevant audit information and to establish that the auditor is aware of that information. By rd r of the board of trustees Sir lan Cheshire (Chair) 10 September 2025 13
Independent Auditor's Report to the Members of the Institute for Government Opinion We have audited the financial slatements of Institute for Government ('the charitable company,) and its subsidiaries ('the group,) for the year ended 31 March 2025 which comprise Consolidated Statement of Financial Activities, Charity and Group Balance Sheets, Consolidated Statement of Cash Flows 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view of the state of the group's and the charitable company's affairs as at 31 March 2025 and of the group's income and expenditure, for the year then ended,, have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006. Basls for opinion We conducted our audit in acGordance with Intemational 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 group 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 trustee's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied, 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 or the group'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 concem are described in the relevant sections of this report. other information The trustees are responsible for the other information contained within the annual report. The other information comprises the infomiation included in the annual report, other than the financial statements and our auditor's report thereon. 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 audit 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 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. 14
Oplnlons on other matters prescrlbed by the Companies Act 2006 In our opinion based on the work undertaken in the course of our audit the information given in the trustees, report, which includes the directors, report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements- and the directors, report included within the trustees, report have been prepared in accordance with applicable legal requirements. Matters on which we are required 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 to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion.. adequate and proper accounting records have not been kept,. or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees, remuneration specified by law are not made., or we have not received all the information and explanations we require for our audit-, or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the trustees, directors, report and from the requirement to prepare a strategic report. Responslbllltles of trustees As explained more fully in the trustees, responsibilities statement Iset out on page 13], 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 COnrn, 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 responslbllltles for the audlt of the financial statements Our objectives are to obtain reasonable assuran about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set 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.. VANW.frc.or .uklauditorsres onsibilities. This description fomis part of our auditor's report. Extent to which the audit was considered capable of detecting irregularities, including fraud Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion. 15
Tina Allison
Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London
25 September 2025
INSTITUTE FOR GOVERNMENT CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 MARCH 2025 Unrestricted General Designated Restricted Fund Funds Funds Notes 2025 Total Funds 2024 Total Funds Income from: Charitable activities other trading activities Investments Other Total 6,665,239 80,928 29,067 16,700 6,791,934 65,670 6,730,909 80,928 29,067 16,700 6,857,604 6,321,406 63,680 21,181 12,500 6,418,767 65,670 Expenditure on: Raising funds Charitable activities Totsl 15,199 6,280,019 6,295,218 15,199 6,447,188 6,462,387 15,766 5,813,448 5,829,214 101,499 101,499 65,670 65,670 Net incomel(expenditure) Transfers between funds Net Movement in funds 496,716 (101,499) 395,217 589,553 19 {268,528) 268,528 228,188 167,029 395.217 589,553 Reconciliation of funds: Total funds brought forward Total funds carried forward 2,580,370 1,392,335 3,972,705 3,383,152 2,808,558 1,559,364 4.367,922 3,972.705 The slatemenl of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. The amount of £101.499 allocaled to designated funds {2024.' £96,631) represents the depreciation charge while transfers belween funds are additions to fixed assets (£268,528 - see also Notes 12 & 13 on pages 28 & 29). 17
INSTITUTE FOR GOVERNMENT CHARITY AND GROUP BALANCE SHEETS AS AT 31 MARCH 2025 Notes Group 2025 Charity 2025 2024 2024 Fixed Assets Tangible fixed assets Intangible fixed assets Investments 12 275,523 64.887 275,523 64,887 13 33,840 77,447 33,840 77,447 14 100 309,463 100 142,434 309,363 142,334 Current Assets Debtors Cash at bank 15 492,426 4,523,829 5,016,255 488,639 3,994,203 4,482,842 2,507,985 2,409,236 4,917,221 1,458,726 2,935,176 4,393,902 Current Liabilities Creditors: amounts falling due within one year Net Current Assets 16 777,696 652,471 678,762 563,631 4.238,559 3,830,371 4,238,459 3,830.271 Total assets less current liabilities 4,547,922 3,972,705 4,547,922 3,972,705 Provision for liabilities and charges Totsl Net Assets 18 180,000 180,000 4,367,922 3,972,705 4,367,922 3,972,705 The funds: Unrestricted Funds General Fund Designated Funds 19 2,808,558 1,559,364 4,367,922 2,580,370 1,392,335 3,972,705 2,808,558 1,559,364 4,367,922 2,580,370 1,392,335 3,972.705 Company number 6480524 The piofivloss for the financial year dealt with in the financial statements of the parent company was £395.217 {2024'. £589.553}. The govemors have prepared group accounts in accordan with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordan with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to rnembers of the company. Sir lan Cheshire Chair of Board of Governors on behalf of the governors Approved and authorised for issue by the Governors on 10 September 2025 18
INSTITUTE FOR GOVERNMENT CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDING 31 MARCH 2025 Group 2025 2024 Cash flows from operating activities: Net cash provided by operating activities 769,087 621,219 Cash flows from investing activities: Interest income 29,067 1268,528) 21,181 (25,725) Purchase of tangible & intangible fixed assets Net Cash used in investing activities (239,461) 14.544) Change in cash and cash equivalents in the reporting period 529,626 616,675 Cash and cash equivalents at the beginning of the reporting period 3,994,203 3 377 528 Total Cash and cash equivalents at the end of the reportlng period 4,523,829 3,994,203 RECONCILIATION OF NET MOVEMENT IN FUNDS TO NET CASH FLOW FROM OPERATING ACTIVITIES Group 2025 2024 Net Income for the reporting period Adjustments for: Depreciation charge Interest income (Increase) in debtors Increase in creditors 395,217 589,553 101,499 12g,067} (3,7871 305,225 96,631 (21.181) (77,759) 33,975 Net cash provided by operating activities 769,087 621.219 19
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 ACCOUNTING POLICIES Basi5 of preparation The financial statements have been prepared in accordance with Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland {FRS 102) (effective 1 January 2015) - (Charities SORP IFRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102} and the Companies Act 2006. Institute for Government meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otheiSe stated in the relevant accounting policy note(s). b) Preparation of the accounts on a going concern basis The Governors having assessed the charity's financial position, its plans for the foreseeable ture, the risks to which it is exposed and forecast projections are satisfied that it remains appropriate to prepare the financial statements on the going concern basis. Further details on the Institute's going concern assessment are provided in the Governors, Annual Report on page 10. Crltlcal accounting judgernents and estimate uncertainty In the application of the charity's accounting policies, which are described in this note, Governors are required to make judgements, estimates and assumptions about the carrying values of assets and li8bilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods. The Governors are ofthe view that there are no assumptions concerning the future or estimations of uncertainty affecting assets and liabilities at the balance sheet date which are likely to result in a material adjustment to their carrying amounts in the next financial year. d) Group financial statements In accordance with the requirements of SORP 2015 the financial statements consolidate the results of the charity and its wholly owned subsidiary IFG Enterprises Limited on a line-by-line basis. The results of IFG Enterprises Limited are shown in Note 5. Income Income from any source including grants is recognised when the charity has entitlement to the funds, any performance conditions attaching to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred. 20
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 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 financial year. For other grants and income for specifiG projects and events series, income is recognised when any performance criteria have been met and with regard to the length of the project being funded or the number and timing of events in a funded series. Income received in advance for any event, project or room hire or provision of other specified service is deferred until the criteria for income recognition are met including when an event actually takes pla or, where a project runs across financial years, with regard to resource inputs into a project or specific deliverable or performance criteria. f) Fund accounting Unrestricted funds are available to spend on activities that further any of the purposes of the charity. Designated funds are unrestricted funds of the charity which the Governors have decided at their discretion to set aside to use for a specific purpose. Restricted funds are donations which the donor has specified are to be solely used for partlGular areas of the Institute's work or for specific projects being undertaken by the Institute. g) Expendlture and Irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings.. Costs of raising funds comprise the costs of commercial trading by the subsidiary and their associated support costs., Expenditure on charitable activities includes the costs of events, projects and research and other activities undertaken to further the purposes of the charity and their associated support costs., Other expenditure represents those items not falling into any other heading. Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. Allocatlon of support costs Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities. Support costs include back Offi costs, finance, personnel, payroll and governance costs which support the Institute's projects and activities. These costs have been allocated beeen oost of raising funds and expenditure on charitable activities. The bases on which support costs have been allocated are set out in Note 8. 21
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 Tangible flxed assets Individual fixed assets costing £500 or more are recognised at cost and are depreciated over their estimated useful economic lives on a straight-line basis as follows.. Asset category Long leasehold buildinglimprovements Office equipment Furniture & fittings Annual rate Based on term of leaselestimated lease extension 33/0 i) Intangible fixed assets The Institute launched a new website in 2022-23. Its cost will be amortised over its estimated useful economic life of three years on a straight-line basis. k) Financial instruments Institute for Government has financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method. Financial assets held at amortised cost comprise cash and bank in hand together with trade and other debtors and accrued income. Financial liabilities held at amortised cost comprise trade creditors, other creditors and accruals. i) Debtors Trade and other debtors are recognised at the settlement amount due after any trade discount offered. m) Cash at bank and In hand Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Credltors and provisions Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. LEGAL STATUS OF THE INSTITUTE The Institute is a company limited by guarantee incorporated in England & Wales and has no share capital. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity. The Institute's registered office address is 2 Carlton Gardens, London, SW1Y SAA. 22
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 FINANCIAL PERFORMANCE OF THE CHARITY The consolidated statement of financial activities includes the results of the charity's wholly owned subsidiary which undertakes commercial activities including room hire on behalf of the charity. The summary financial performance of the charity alone is". 2025 2024 Income Gift aid from subsidiary company 6,561,094 292,423 6,256,439 160,988 6,853,517 6,417,427 Expenditure on raising funds and charitable activities 6,458,300 5,827,874 Net Income 395,217 589,553 Total fvnds brought forward 3,972,705 3,383,152 Total funds carrled forward 4,367,922 3,972,705 Represented by.. Designated unrestricted income funds General unrestricted income funds 1,559,364 2,808,558 4.367,922 2,580,370 1,392,335 3,972,705 INCOME FROM CHARITABLE ACTIVITIES 2025 2024 Grant from Gatsby Charitable Foundation Project and event sponsorship income Learning and development courses other income from charitable activities 5,508,933 5,252,561 968,281 875,525 251,459 193,319 2,236 6,730,909 6,321,406 The Gatsby Charitable Foundation continues to provide an annual inflation-adjusted general purposes grant towards the core operational costs of the Institute. This grant is formally committed until March 2026. A new application will be made in late 2025 for upcoming periods. 23
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 INCOME EARNED FROM OTHER ACTIVITIES The wholly owned trading subsidiary IFG Enterprises Limited is incorporated in the United Kingdom (company number 07240242) and pays all of its profits to the charity under the gift aid scheme. IFG Enterprises Limited now manages all the business activities of the Institute for Government, including charitable activity. Financial statements for the company's financial year to 31 March 2025 have been prepared. A summary of the results is shown below. The summary financial performance of the subsidiary alone is" 2025 2024 Turnover Interest income Cost of sales and administrative costs Net profit 1,078,856 3,134 789,567 292,423 893,901 964 733.877) 160,988 Retained earning5 brought forward Amount gift aided to the charity Retained earnings carried forward 292,423 160.988 There is a management fee of £785,482 payable to the parent company included in the results above12024.' £732,537) relating to the cost of sales of events held by IFG Enterprises Limited. As at 31 March 2025, IFG Enterprises Limited had total assets of £2,335,063 (2024.. £1,260,274) and total liabilities of £2,334,963 (2024: £1,260,174). OTHER INCOME Other Income includes £16,700 (2024.. £12,500) which represents recharges for the use of facilities at 2 Carlton Gardens by the Public Chairs Forum including utilities and other service costs incurred by the Institute in respect of the whole building and is unrestricted general fund income. 24
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES As in previous years there is no simple distinction between Research and Learning & Development as identifiably different charitable activities. As such expenditure on charitable activities is not segmented. The expenditure on our charitable work is analysed below. 2025 2024 Slaff salaries and other staff related costs Premises and other building related costs Events and Staff Catering ResearchlAcademy costs Office supplies IT costs Depreciation Finance costs including bank charges Website and media costs Irrecoverable VAT Governance costs Support costs 3,974,412 3.589,992 1,066,436 848,410 376,803 402,158 22,794 24,409 15,478 24,540 79,099 64,553 101,499 96,631 1,030 886 166,293 161,754 158,807 157,043 46,992 41,551 437,545 401,521 Total 6,447,188 5,813,448 ANALYSIS OF GOVERNANCE AND SUPPORT COSTS The Institute initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. The table below gives analysis of support and governance costs including the basis on which these are calculated. General support Gov8rnance 2025 Total 2024 Total Basis of calculation Staff costs 335,264 18,361 353,625 335,040 Support function staff time spent on support function activities Building costs 102,281 102,281 84,841 Support function staff as proportion of FTE staff Audit and accountancy fees.. Audit Tax advisory 26,320 2,255 26,320 2,255 22,900 238 Govemance Governance Legal and professional fees 56 56 53 Governan Total 46 992 484 537 443,072 The total paid to the charity's auditors was £26,320. 25
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 ANALYSIS OF STAFF COSTS, TRUSTEE REMUNERATION AND EXPENSES AND THE COST OF KEY MANAGEMENT PERSONNEL The aggregate payroll costs were as follows.. 2025 2024 Salaries and wages Social security costs Pension costs Other costs 3,198,852 2,916,851 358,868 326,545 619,099 598,813 11,909 10,240 4,188,728 3,852,449 During the year there were no redundancy or termination payments {2024: £5,200), The number of staff with emoluments greater than £60,000 was: 2025 2024 £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 £210,000 - £219,999 £240,000 - £249,999 Pension costs are allocated to activities in proportion to the related staffing costs incurred and are wholly charged to unrestricted funds. The banding disclosures are for totsl gross pay before any deductions. The charity trustees were not paid nor did they receive any other benefi'ts from employment with the charity or its subsidiary in the year (2024.. £nil). No charity trustee received payment for professional or other services supplied to the charity (2024.. £nil). During 2024-25, the key management personnel of the parent charity comprised the trustees, the Director, Deputy Director, Director of Finan & Resources, Director of Partnerships, Director of Communications and Marketing, Programme Directors, Director of Impact and Chief Economist of the Institute for Government. The total employee benefits of the key management personnel of the charity were £1,860,185 (2024.. £1,681,764). The key management personnel of the group are the same as those of the Charity. 26
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 10. STAFF NUMBERS The average number of persons employed by Institute of Government whether on a full time or part time basis during the period, analysed by category, was as follows.. 2025 2024 No. Research, Learning and Development Offi'ce, management and services 41 17 58 38 17 55 11. CORPORATION TAXATION The Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes. 27
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INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 13. INTANGIBLE FIXED ASSETS Intangible Assets Total Cost Balan brought forward at 1 April 2024 130,820 130,820 Balan carried forward at 31 March 2025 130,820 130,820 Amortisation Balance brought foward at 1 April 2024 Charge for the period 53,373 43,607 53,373 43,607 Balance carried forward 31 March 2025 96,980 96,980 Net book value at 31 March 2025 33,840 33,840 Net book value at 1 April 2024 77,447 77,447 14. INVESTMENTS Charity 2025 2024 Investment in subsidiaries 100 100 The charity holds 100 shares of £1 each in its wholly owned trading subsidiary company IFG Enterprises Limited which is incorporated in the United Kingdom. These are the only shares allotted, called up and fully paid. The activities and results of this company are summarised in Note 5. 15. DEBTORS Group 2025 Charity 2025 2024 2024 Trade debtors VAT Other debtors Amounts owed by subsidiary Prepayments and accrued income 225.734 195,884 9,175 2,196 26,064 30,641 7,312 2,205,388 238,580 52,076 35,178 2,196 1,145,330 223,946 7,312 259.380 281,384 492,426 488,639 2,507,985 1,458,726 29
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2025 Charity 2025 2024 2024 Trade creditors VAT Accruals and deferred income Other taxation and social security Other creditors 337,655 31,159 298,900 100,466 9,516 164,328 337,655 164,328 315,608 96,718 75,817 231,125 100,466 9,516 226,768 96,718 75.817 777,696 652,471 678,762 563,631 17. DEFERRED INCOME Group Charity 2025 2024 2025 2024 Deferred income at 1 April 2024 Resources deferred during the year Amounts released from previous periods 133,940 73,744 {100,790) 121,808 100,790 (88,6581 45,100 5,969 (11,950) 121,808 11,950 (88,658) Deferred income at 31 March 2025 106,894 133,940 39.119 45.100 18. PROVISION FOR LIABILITIES AND CHARGES Group Charity 2025 2024 2025 2024 Balance at 1 April 2024 Amount utilised in the year Amount released in the year Amount provided in the year 180,000 180,000 Balance at 31 March 2025 180,000 180,000 The provision has been made to cover the liabilities and charges which could potentially arise from vacating 2 Carlton Gardens during 2026 as the Institute moves to its new home at 16-18 Old Queen St. 30
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 19. ANALYSIS OF CHARITABLE FUNDS Analysis of movements in unrestricted and restricted funds 2024-25 Balance Income Expenditure Transfers Balance 1 April 2024 31 March 2025 Unrestricted Income Funds General funds 2,580,370 6,835,374 (6,338,658) {268,528) 2,808,558 Designated Funds Fixed asset fund Property relocation fund Capital and maintenance fund 142,334 1,000,000 (101,4991 268,528 309,363 1.000,000 250,001 250,001 Restricted Funds 65,670 65,670 TOTAL FUNDS 3,972,705 6,901,044 6,505,827 4,367,922 Analysis of movements in unrestricted and restricted funds 2023-24 Balance Income Expenditure Transfers Balance 1 Aprll 2023 31 March 2024 Unrestricted Income Funds Gèneral funds 2.349,911 6,418,767 (5,732,583) {455,725) 2,580,370 Designated Funds Fixed asset fund Property relocation fijnd Capital and maintenance fund 213,241 620,000 200,000 (96,631) 25,724 380,000 50,001 142.334 1,000,000 250,001 Restricted Funds TOTAL FUNDS 3.383,152 6,418.767 5,829,214 3.972,705 The fixed asset fund represents funds set aside equivalent to the net book value of the fixed assets of the organisation. The fixed assets are depreciated over time and therefore it is appropriate to put funds aside covering the reduction in economic value of the Institute's fixed assets. The property relocation fund represents a round sum estimate of the replacement cost of office equipment and fixtures and filtings in the event of an office move at the end of the lease at 2 Carlton Gardens. The capital and maintenance fund represents funds put aside to cover future costs in relation to 2 Carlton Gardens which, by their nature, can be both large and unpredictable in timing. The 2023-26 lease for Carlton Garden was signed on 4 April 2023. Where it imposes clear legal obligations, provision is being made over the life of the lease to cover them. The need for designated funds will be assessed accordingly. 31
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 20. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS Unrestricted Restrlcted Group total funds funds General Designated funds Fund balances at 31 March 2025 are represented by: 309,363 309,363 Tangible fixed assets 3,766,254 1,250,001 5,016,255 Current assets (777,696) (777,696) Current liabilities Provision ft)r dilapldations (180,0001 {180,000) 2,808,558 1,559,364 4,367,922 Unrestricted Restrlcted Group funds funds total General Designated funds Fund balances at 31 March 2024 are represented by: 142,334 142.334 Tangible fixed assets 3,232,841 1,250,001 4,482,842 Current assets (652,4711 (652,471) Current liabilities 2,580,370 1,392,335 3,972,705 32
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 21. OPERATING LEASE COMMITMENTS At 31 March 2025, the charity had the following total operating lease commitments.. Group Charity 2025 2025 2024 2024 Operating lease commitments due: Not later than one year Later than one year and not later than five years Later than five years Lease payments recognized as an expense 600,000 600.000 600,000 598,630 6,575 598,630 6,575 598,630 The above commitments represent the charge for an operating lease on 2 Carlton Gardens. A three-year lease with rent set at £600,000 was signed on 4th April 2023. Lease payments recognised as an expense in 2024-25 were £600,000. The Charity has set aside a balance sheet provision of £180,000 in addition to a designated fund of £250,000 for any maintenance and reinstatement costs which may be needed during the remainder of its lease at Carlton Gardens and at the end cf the lease. On 31 January 2025, the Institute entered into a three-year lease at peppercorn rent for a property at 16-18 Old Queen St owned by The Gatsby Foundation. The building will be re-furbished and, once complete, the Institute will move its operations there after the expiry of the lease at Carlton Gardens. 22. RELATED PARTY TRANSACTIONS The charity does undertake transactions with its wholly owned subsidiary IFG Enterprises Limited in the normal course of business. For 2024-25 there was a recharge of £785,482 to IFG Enterprises Limited {2024'. £732,537) for the costs incurred by the Institute in supporting the business of IFG Enterprises Ltd. When there are remaining profits from IFG Enterprises Ltd's business they are gift aided by that company to the Institute. For 2024-25 this amount will be £292,42312024'. £160,988). There were no other related paty transactions during the year. 33
INSTITUTE FOR GOVERNMENT NOTES TO THE ACCOUNTS YEAR ENDED 31 MARCH 2025 23. COMPARATIVE CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 2024 Unrestricted General Fund Designated Funds Notes Restricted Funds 2024 Total Funds 2023 Total Funds Income from". Charitable activities 6.321.406 63,680 21,181 12,500 6,418,767 6,321,406 63,680 21,181 12,500 6,418.767 5,706.271 13,505 8,347 12,000 5,740,123 Other trading activities Investments Other Total Expenditure on: Raising funds Charitable activities Totsl 15,766 5,716,817 5,732,583 15,766 5,813,448 5,829,214 7.894 5,835,556 5,843,450 96,631 96,631 Net incomel(expendlturel Transfers between funds Net Movement in funds Reconclllatlon of funds.. Total funds brought forward Total funds carried forward 686,184 (455,725) 230,459 (96,631) 455,725 359,094 589,553 (103,327) 18 589,553 (103,32n 2,349,911 1,033,241 3,383,152 3,486.479 2,580,370 1,392,335 3,972,705 3,383,152 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities. 34