REGISTERED COMPANY NUMBER: RC000812 (England and Wales) REGISTERED CHARITY NUMBER: 1124517 REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATENENTS FOR THE YEAR ENDED 31ST JECEMBER 2023 FOR THE CHARTERED INSTXTUTE OF PLUMBJNG & HEATING ENGINEERING Clemence Hoar Cummlng5 Charte￿d Accountants and Statutory Auditor Riverside House 1-5 Como Street Romford Essex RM7 7DN THE CHARTERED INSTXTUIE OF PLUMBING & HEATING ENGINEERING CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2023 Page Report of the Trustees I to 13 Report of the Independent Audltors 14 to 16 statement of Flnanelal Actlvltles 17 Bal8n¢e Sheet 18 to 19 Cash Fltsw Statement 20 Notes to the Cash Flow Statement 21 Notes to the Flnanclal Statements 22 to 32 Detalled Statement of FinancTal Actlvltles 33 to 34 THE CHARTERED IN5TrruTE OF PLUMBING & HEATING ENGINEERING REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 Co￿P¢TeNc REPORT OFTHE BOARD OF TRUSTEES FOR YHE YEAR ENDING 31*1 DECEMBER 2023 Proud to be a Professlonal Page I THE CHARTERED INSTrruTE OF PLUNBING & HEATING ENGINEERXNG REPORT OF Tfr(E TRUSTEES FOR THE YEAR ENDED 315T DECEMBER 2023 The Trustees present their report wlth the financlal statements of the charlty for the year ending 31st Decerllber 2023. The trustees have adopted the ptovlsiuns of Accounting and Reportlng by Charltle5.' Staternenl of Recommended practi￿ applicable to charities preparlng their accounts In accordance with the ￿nancIal Reporting Standard applicable In the UK and Republic of Ireland {FRS1021 leffective I January 20191 Jn addition. Trustees have pald due regard to the Charlty Commlsslon's guldance on public benefit in determinlng acuvitles CIPHE should undertak2. REFERENCE AND ADMINISTRATIVÉ DETAILS Registered Company number RC000822 (England and Wales) Registered Charlty number 1124517 Reglstered office 64 Station Lane Hornchurch Essex RM12 6NB Trustees P. Massey N. lone.fi BA ACA K. McCalli5tèr EngTe¢h MCIPHE RP M. Brldges EngTech MCIPHE RI. teased 22.06.23 N. Overton MCIPHE- appolnred 22.06.23 R. Mallender EngTech FcfpHE RP appolnted 22.06.23 G. Westall EngTech MCIPHE RP C. Brooks Co-opted and Observer Speclallsts to the Board of Trustees P. Thom FCIPHE FRSA FCIM AIGEM - co-opted 19.11.19 T. Morrlson to-optpd 16.03.?2 M. Bridges EngTech NCIPHE RP- from 20.09.23 M. Gumb5 EngTech MCIPHE RP Ilmmodlare Past President) - ceased 22.Q6.23 H. Hung EngTech HonFCIPHE RP Ilfflmedlate Past Presldentl - from 22.06.23 Monorary Company Secretary C. Brooks President H. Hung EngTe¢h HonFCIPHE RP- ceased 22.06.23 A. Wildish CEng FCIPHE ap￿Inted 22.06.23 Chlef Executlve Officer Kevin Wellman EngTech FCIPHE RP Page 2 THE CHARTERED INSTITUTE OF PLUM81NG & HEATING ENGINEERING REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 Audltors Clernen￿ Hoar Cummlngs Chartered Accountants Riverslde House, 1 - 5 Como Street Romford Essex KM7 7DN Sollcltors Pe.nningtons Manches Cooper LLP 31 Chertsey Street Guildford Surrey GUI 4HO Bankers Barclays Bank PLC Knlghtsbridge Buslness Centre PO Box 32014 London NWI 2ZG STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The Chartered Institute of Plumbing and Heatlng Englneering is a company Incorporated by Royal Charter, granted on 12th February 2008. Ir is a registered charity, obtaSnlng charitable 5tatU5 on 16 June 2008. The Institute is governed by Its Rtsyal Charter and Bye-Laws. The Bye-Laws and Regulatlons are under constant review and were last updated in 2017 and 2020 respectlvelyi and future amendrnents wlll be carried out when necessary. Recruitment and hppointment of new Trustees Applications for Trusteeshlp are sought by adverti*ment. Inductlon and tralnlttg of new Trustees After appointment, an Inductlon Is arranged for new Trustees. Trustees serve up to a four-year period and may be re-electecj for a further four-year periad leffectlve from 20181. The Trustees meet at least flve tlmes a year to review the Strategy and performance and to set the operatlng plan5 and budgets. Organisational structure There are committee5 covering membership, professlonal standards and technlcal services. The Chlef Executive Officer Is appolnted by the Trustees to manage the day-to-day operatlons of the Institute. Related partles The Institute Is the reglstered owner of loo% of the Issued capital of Plumblng and Heatlng Promotions LiTnited, which became dormant in 2022. The Institute Is also the registered owner of IOOQk of the Issued share capltal of GreenPlumb Lirnited and SafePlumb Llmited, whlch have remaSned dormant since their respective incorporatlon. Rlsk management The Trustees have introduced a formal rlsk management process to a55ess business risks and Implement rlsk management strategies. The Trustee5 are pleased to report that the charity's internal financial controls, in particular, conform to guldellnes i55ued by the Charity Commlssion. The Trustees are fully Cognisant of their responsibility to evaluate and manage b￿sIneSS risk, whlch they classified as- Page 3 THE CHARTERED INSTITUTE OF PLUMBING & HEATXNG ENGINEERING REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 Governance and Management b. Operatlonal Risks Financial Risk ij. Envlronmental and F%ternal Factor5 Compliance other Ri5k5 not classifiable under the above headings. The Executive team dlscuss and rate business risks as they are Identified. On-going monitoring and updates on risk management is undertaken through reports provided by the Chlef Executive Offlcer. OBJECTIVES The Purpose of the CIPHE is to enhan¢e the $6fetyJ health and wellbeing of the publlc through a strong quallfled membership relnforced by their competency and te¢hnical expertise. The Mlssi¢Jn of the CIPHE Is to operate as an Sndependent technical and professlonal focal polnt and be a catalyst for the plumbing and heating industry by provSdlng teehnical and professlonal standards, expertise, educat5on and technlcal Innovation to the operatives within Its scope. The Vlslon of the CIPHE Is to create technical excellence through whlth the public will recelve the beneflt of a protecled envlronment and enhanced SLSStainability together with improved safety and health through the provision of correctly installed, commlssloned, maintained and decommlssloned plumbing nd heatlng systems. The alms of the CFPHE are surnrnarlsed In four areas In the following graphic: PUBLIC SAFETY & HEALTH CIPHE MEMBERS EOUCATION RESEARCH Strategic Plan The Strategic Plan is fully revlewed eath year. The Board approved the 2024 - 26 Strateglc Plan, whlch contlnues to Fo¢u5 on a number of the key acllvities in support of Its role as the Chartered botjy for tho plumblng heating Industry. Our strategy focusses on harnessing the conslderable expert15e available wlthln the CIPHE, our membershlp and our industry colleague5. To9ether we work to promote best practice, create trainlng opportunllies, and enhance edu¢atlon wlthln the plumbing and heating Induslry. To further safÈguard public interest, especially for the vulnerable, and encourage safety within all buildlngs, an object of the CIPHE 15 to double mernbershlp whlch ultimately will lead to a safer environment and help to outlaw rogue Installers. The Strat￿lC Plan is underplnned by a rnanlfesto summarlslng kÈy èctlvltie5 which is prornoted to government, consumers and the industrv. Poge 4 THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGINEERING REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31sr DECEMBER 2023 The CIPHE'5 prime alm Is to adVaTr￿ for thp fr￿.nefit of the public the 5cieMce, pract1￿ and prlnciple5 of plumt>ing and heating en4Jlneering and in exerclsing Its rÈsponsibillties to sat15fy the requlrements of the Charity Commlsslon. It fulflls its objectives through several actyvltles. A summary of these and key achlevements follows.. ACflVZTZES AND ACHIEVEMENTS Public Beneflt Public benefit Is derlved frorn the actlvltie5 set out below particularly in raising the safety, health and envlronmental aspects of plumblng and heatlng enginpp.ring the perception of the public. nsurner Su The Institute continues to provlde support to members of the public through telephone enqulr(es and through publicatlon of artlcles In consumer magazlnes. In addlllon, It promotes the Find a Professional listing whlch Is available through the CIPHE web51te. Gren To CIPHE continues to support Worklng Group I responsible for the competency of englneers and Worklng Group 2, dealing with Installer competency. The constwction Industry and built environment sector continue tts encourage Improvements to regulations and standards for public benefit. Working Groups I Is to merge wlth Worklng Group e (Buildlng Safely Managers) and thereafcer wlll trdnsltion to becorne the Building Safety Advlsory Panel (BSAP). Terms of Reference are yet to bc agroed. Working Group 2 recently reported that the Minlmum Technlcal Competenc25 IMTCI revlew has concluded, the apprentI￿hIp standard has now been revlewed. The End Point Assessments have be2n agreed and are anticlpated to be released In early 2024. They ra15ed their concerns that there now appears to be some contradiction between apprentlceship standards, mainly affectlng hÈat purnp5 which wlll need to bÈ further explored. Under the 8uspSces of Worklng Group 2 the Engineerlng and Buildlng Servlces Skills Authorlty was convened by Actuate UK members together with other leading sector bodies, such as BEAMA, CIPHE, TJCA and MCS. to provide a credlble ButhorltatlvÈ voir.e for sk1115 across all eftgineerlng and buildlng services. Its official launch wlll be In early 2024. f Er ineerln RAE Following on from an Inqulry led by Lord Knlght and Lord Wlllets, CIPHE participated In a vlrtual roundtable to dlscuss 'Flt for th@ fulure.. growing and sustaining englneerlng and technology apprenticeships for young people.. Educatlon and tralnlng is becoming an Integral p3rt of govemment Industry discussion5. CIPHE Is proactively Involved in many dlscusslons eovering skills shortages and fit for purpose educatlon. The RAEng sought asslstance from CIPHE In brleflng one of their new Fellows on Net Zero and current Industry PToblems/challenge5. Government En emen CommunicatlOll5 and engagement wlth varlous government departments cont[￿ued as they sought CIPHE'S support wlth Can£iJItatK)￿ docijments and through dlalogue wlth dvll servants and attendance at meetings. Engagement attlvitie5 IIILluded Involvement wlth tlie followinq-. Heat and Buildings Strategyi Clean Heat Dlrector3te, Healthy Homes & Bulldings, Nat)datory Water Eificlency Label. Electrification of Heat, Mlsslon Xero Coalition, Go Science Heat Pump roundtable, IfATE and the 2025 Future Homes standard. CIPHE also ￿sponde￿ to the followln9 consultations.. Improvlng Boller Effl¢lency Stsndard5. Hydrogen for Heat. WC Performante SpÉtlfitation in Engl3nd and Wales and the Net Zero revlew. Parllament is lustlfiably commltted to reducing our carbon foOtp￿nt however, the￿ Is no doubt that rnuch more needs to be done to address the skllls shortages so as to achieve previously set Not Zero aspirations. CIPHE conbnues to support the need for mandated tr3inin9 and}or licensin9 of Ihe trade whlch remalns to be the best way to resolve skills issues which contlnue to blight QUT industry. Thls was highlighted durlng a roundtable meetlng wlth the Shadow minister for Defra followlng the report 'Flowlng Forward -Safeguardlng the UK'S Water System. Page 5 THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGINEERING REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 The CIPHE was invited to apply to partitipate. in TfATE'5 Employer Dirertory whlch enables dlrect feedback from Chartered Institutes on apprentlceship standcirds. r of Plumbers - Publl R IstÈr The Worshlpful Company of Plumbers established the Register, whlch gives the publlc access to ouallfied plumbers, In 1886. It helps protect public health and safety and promotes the Competen￿ and conduct or oood plumbers. In 1909, the Company handed over day-to-day mBnBgement of Its Roglster to the National Council for rhe Registration of Humbers, whlch, in 1953, was renamed the Registered Plumbers Assoclatlon. When the Assoclatlon amalgamated wlth the Institute of Plumblng In 1970, the Worshipful Company relinquished the Reglster award of the designation -Reglstered PlumbeV to the new Institute. As at 31st December 2023, 70,314 individuals had been entered onto the Reglster. The Reglster of Plumbers is malntalned In the Membership Department and 15 avallable for inspectlon by any rnember of the public by appointment. r Heatin Profe 9i5tet Since its laé>nch in January 2010. 8?8 members have been entered on to the Reglster of Heatlng Profe5slonals. Watcrsafc - Pub The CIPHE contlnued Its Involvement with Watersafe whose oblectlves are to o)ntrlbute to the safety of drinking water supplies and protectlon of customers, by.. ertnging together six Approved Contractor5. Schemes. Protnating good plumbing practice and compllance wlth the Water Supply {Water Flttlngsl Regulatlons and Scotush Water Bye13WS. Providing easy access to online search facility l¢stlng approved and competent plumbing buslnesses. Reductng the rfsk to drlnking water supplies from poor plumbing practice The number of Watersafe reglstered members of CIPHE increased by 35% from 245 to 331 in 2023, 6.8% of a total of 4,861 Approved Plumbers reglstered wlth the scheme. Watersafe contributes towards public healrh by helplng consumers to protert thelr drinklng water and void rogue traders by offerlng them an accessible onllne dlrectory of qualified plumbers. CIPHE continues to collaborate with Whlch7 Trusted Trader to promote p055tlve consvmer facing messaglng regardlng the plumblng and heating industry and provldes a platform for them to communicate with members IhrDugh thÉ membershlp beneflts arEd services gulde and resources. IPHE ManlfEs The rnanlfesto contlnues to bè publlshed on aft annual basis. It was distrlbuted w￿elY during the year and contlnues to be received favourably. eSp￿laIrY by tho trade press. Covering key issues such as the hèalth, safety and welfare of the public, the envlronment, eduotion, regulatlon and licencingi the CIPHE'S manlfesto slts the plumblng and heatlng industry at the centre of many key areas of Governrnent policyi such as health, educatlon, houslng, energy and the envlronment. An updated manlfesto, Including focused priority Items for the year wlll be launched In the first quarter of 2024 in advaTrce of the General Electlon. Page 6 THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGINEERING REPORT OFTHE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 orti Co ers throu h the R istration AuthO￿t The Institute has a duty to investigate complalnts that allege a Thetnber has complied with the Code of ProfessioFEal Standards to act professlonally, competently and reS￿sIbfy. Upon notlficatlon of such complaints, the complainant is required to complete a form, which 15 then submltted to the Investigation Panel IIP) to pro￿ed further. During 2(I23, the Panel investigated 7 cofflptaints, referring 3 to the Discipllnary Committee. The Dlsclpllnary Commlttee Impose sanctions on members when a complalnt against Ihem has been upheld. Durlng 2023, 1 member was removed frorn rnembershlp for faillng to adhere to rhe Code of Professlonal Strandards. Educatlon duca￿onal Pathwa A new career pathway flowchart has been produced by the Cll)HE whlch dÈtalls eath route a learner might take across domestic plumblng and heatlng as well &5 commercial and industrlal. The Approved Trainlng Centres Increased to 68 during the year. rdilblaz The Plumblng arbd Domesttc Heatln4J Technlclan Standard had a small fundlng Increase from £21K to £22K, whlch Is qulte an achievement. Awardlng bodies are rewrii¢ng the curriculum content to meet tho rev15ed pathways and assessmellts. It is aiffled to be launched for the academic year 202412025. Wh115t the CIPHE advocates that full competency Is held by achlevemerst of Level 3, the landscape has changed in many ways. Recruitment of apprentlceshlps has been hlt hard a¢ros5 England since the introduction of a Level 3 only pathway whlch became the route after frarneworks trased belng funded In 202Q. Employers have sought their own solutions t¢J overcome thls, as well as colleges due to loss of income. This In turn has tirought about three new pathways that bring into questlon-why do a four-year Level 3 route when competing routes are more cost effective and shorter?11 Removal of a Level 2 apprenticeship has also led to many people either learnlng out of date oualificatlons or none at all. We believe thls situatlon Is so serlous to Dur Sndustry In the long term, that there needs to be a fresh look at the structure now unfolding. We have now started conversatlons with IfATE and Industry to discuss a better way forword. atlonal Oev etluon The CIPHE contlnues to support and engage with competitlons. Heating Installer Plumber of the Year IHIPLOYI and a new all-FemalÈ Skllls tompetition attract a wlde audientr across England. Jerry Whlteley (Technical Manager) is the Head Judge for both coM￿tIr10n5 whl¢h are valued by educatlon, manufattvrers and Sndustry bodies. It provides access to a younger audlence and capltèlises their knowledge of the CIPHE and what It st3nd£ far. We 8lso 5UPPOrt tlie Heating Installer of the Year Awards that holcf a review and celebrates best praclice for ￿XIst1r1￿ Installers. Thls Is ￿lebrated at the laryest plumblng and heallng show in June each year at the NEC Installorshow. Durlng the show we are also privileged to SUPPDrt and judge the Installer Merit Awards for serwces people do out of kindness. Latterly, we were also asked to judge the PHAM News Energy EFflclency Awards held in London for thelr succe55e5 in designing energy efficlent heatlng and hol water systems across the UK. Bu Board CTPHE were Invlted by Clty & Guilds to partake In the BLtll£flng Sorvlcos Englneerlng Employer Industry 8oard along wlth Industry expert5 and ernployers to ensure the skills ernployers ne@d are met for a more productive workforce. Our representatlon is through the Employer Industry Board {EIBI whlch forms art of thls group. Page 7 THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGINEERING REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 The EIB comprises of ernployers, professlonal bodles and other sector organlsatlons who collaborate to ensure that educatlonal servSces are fit for purpose. New T Levels have been launched and are currently belng Irlalled across the country. New trlteria for work experience have now been applled a5 well as funding for employers. Con tnent an Aca em A requirement of the Code of Professional Standards is th3t members should undertake CPD to bmaden and maintain their knowledge and the CIPHE recommends that members should undertake 30 hours of CPD on an annual basis. The Institute delivers many ways by whlch members can earn CPD hours, including via CPD artlcles in P&H Engineering magazine. The CIPHE Academy Unde￿￿ent a soft launch late in June, to Include testlng amongsl a small group of members. Durlng thls perlod, the pritnary focus was on testing. including the runnlng order of courses, ensuring the content was effectlve, and allgning the platform's look and feel with the branding of CIPHE. The figures by year-end, were 175 reglstered users and 81 completed courses. Wider release and promotion will see these numbers Increase through 2024. Nwnb•ror Launched 2010612023 Mwnlxral Numb•ror knwu •ATh 17F, 27 To asslst wlth monltorfng CPD, the CIPHE supports mycareerpath@, which Is an onllne professional development system, deslgned by the Englneerlng Coun¢ll and adopted by rnany professlonal englneering Institutlons for use by their mernbers. The CIPHE digital projert is incorporatlng techtalk@ and smarttalk@ content, provldSng Informed technical and profes5i0nal education and trainlng across a range of subjects. The vldeo tontenr has collectlvely had more than 70,000 views to date. The CIPHE Plumbing Engineering Services Design Guide has been made freely avallable onllne for members and work to update the Guide seetion by secLlon contlnues. A webslte for the tnember rnagazine, P&H Englneerlng, Is accesslble at www.pandhengineerfng.co.uk. Page 8 THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGINEERING REPORT OF THE TRUSTEE5 FOR THE YEAR ENDED 31ST DECEMBER 2023 The CIPHE has continues to promote Its revlsed Approved Training Centre model that includes membership for the tralners and acce5S to dlgital training tools that have been developed too. The followlng colleges joined the Instltute as Approved Tralning Centres IATCI In 2023., Abingdon & Wltney College, Bath College, London South-East Colleges, Nescot College, Northampton College, Oxford Energy Acadetny. R4chmond College, Thè City of Liverpool College, Trafford and Stockport College Group and West Suffolk College. Additionallyi ViessmaTrn Group and LG Electronics achieved ATC status for thelr training centres. Industry Engagement Wo The 2023 Worfd Plumblng Conference was held in Shan4Jhai, wlth sorne 2,000 people representlng a dozen nat￿n5 in attendan￿, either In person or vlrtually. Attendees had the opportvnity to immerse thÈmselves In presentations, panel dlscusslons and workshops, delving Into the latest research, trends and best practlces. Dave Viola, CEO of the IAPMO Group of the Unlted States, was elected to a three-year term as Chair of WPC Execiitive Board and CIPHE CEO Kevin Wellman was oppolnted Oeputy Chair. Followlng competitive selection process, It was agreed that the UK would host the 2026 World Plumbrng conferen whlch will be facllitated by the CIPHE. War5 an of Plurnbe l Lectur The CEO w3s Invlted ro be one of three speakers at the Annual Lectvre entitled °Who Needs University. When Apprenticeshlps are Better?. The d15cussion focussed on the ben2flts of paid apprentittshlps versus uTrlverslty, and the varlety of pathways that are available ta those who b￿1n thelr careers by gaining hands-on work experien￿ alongside 3ddlb.onal tnlnlng. The other speakers Involved in the dlscusslon were Carl Arnt2en, CEO of Worcester Bosch and Ne51 Colllshaw, CEO at BPEC. on CIPHE contlnue5 ta support the CIC, &peclally wlth Its work on post Grenfell artlvltles and wlth the Building Safety Blll. Followlng a meeting with the new CIC Chair, Wel Yang, on 6th Novernber CIPHE was Invlted to partlclpate I￿ CIC'S Education & Tralnlng Group. The CIC endorsed a letter from the Construrtion Leadershlp Councll to the Chancellor of thè Exchequer which raised a nuinber of concerns including the fact that conftdence in the construction plpeline In respect of future work is at its lowest polnt slnce 2008. This Is through a tombinRtion of plannlng constraints, changÈ.% In dirp.ction on the Infrastrurture plpellne and nervousness in both homeowners and the prlvate sector èsset uwners. In addiknon, the volati1Sty of rnèterial Inflation In recent months has added further uncertainty to Ihe Industry whlch Is now seeing insolvencles across the Sector at the hlghest levels for a deL7de. Indus rialA es CIPHE contlnues to partner on projects with some of the Industrial Associates Development Group ranging fmm support for apprenticeshi[￿ and training to product focused CPD, the low carbon ageiitsa, and shared prioritles cin matters af publ1¢ safetV+ wellbelng and the plumblng and he£tlng Industry workforce. Regular Industrièl Assoclate fiKused communlcatlons are Included amongst the rest of aur output to Members. Feedback from Tndustrlal Assoclates highlights thelr support for CIPHE key rnessages such as the manifesto. Issues around the aglng workfor￿, current an(f future skllls-gap, professlonal routes Into the industry and whèt thls will mean for thelr busine55es and their products continue to be a priority and provlde opportunltie5 for CIPHE to hlghlight them. Page 9 THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGINEERING REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 RESEARCH & TECHNICAL TechnTcal Strategy Group The Technlcal Strategy Group ITSGI operates as an Incjependent technlcal and professlonal focal polnt and aims to be an authority to the plumblng and heating industry by providing technical standards, guldance, expertlse and educaknon & technic81 Innovallon. It achieves thi5 through the appolnttllent of Technical Working Groups; the followlng Groups hbve been established.. Water Safety; Heatlng; Contro15, Hot and Cold Water Servlces and Above & Below Ground Drainage. In a¢Jdition to this, the CIPHE have engaged In a wide variety of technical Industry gmup meetlngs Ènsuring both the installer nd consumer are belng represented correctly. This included revlsions to the bulldlng rÈgulatlons and other matters associated with both water safety and the future of heat in buildings. In addition, work commented on carrylng out rev15ions to the Plumblng Englneerlng serv1￿> Design Guide. The ExperIen￿d Worker Route and its content has been agreed In p￿ncIple by the working partles and will complement the Level 3 apprenticeship. The new route is anticipated to be launched In 2024. MEMBERSHIP & PROMOTION Membership and Engineering Councll The total membership as ar 31sL December 2023 was 7.194, an increase of 9% year-on-year. Membershlp breakdown by category (Dec 2023) FCIPHE Coinpanioi IASuppor.èr Approved Irainins Con¢rp ACIPHE 16% riFH= 1,246 Membershlp appllcauons were re¢elved In ttstsi throughout 2023. Page 10 THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGINEERING REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 Applicatlon breakdown by category 2023 FCIPHE, 0.2% | IIASUp￿rte". 1.4% Ceniie. l 0% NILIPHE,45 4% Afflll3ie, 2.2% ACIPHE, 7 5% Durlng 2023. 12 appllcants were newly registered at EngTech level, O at IFng level and l at CEng level. As al Ihe end of 2023, the Instilute had 741 Englneerlng Technlcians, 84 Incorporated Englneers and 29 Charte￿d Engineers. Master Plumber Certificate On 27th March 2023, the Master Certlflcate Awards for construc￿On Llverles were held at the Egyptlan Hall, Man51on House hosted by Lord Mayor AldermaTr Nichol8s Lyons. Dennis Coates EngTech MCIPHE RP, Mark Merrltt EngTech MCIPHE RP, Christopher Btte5 EngTech MCIPHE RP RHP and Robert Mallender EngTech FCIPHE RP were presented with their Master Plumber Certiflcates. The Lord Mayor a150 presented a Journeyrnan Certificate ta Conna Green MCIPHE RP. Plumbing Professionals Development Scheme ThÈ CIPHE Worshipful Company of Plumbers will jointly deliver and run the Plumblng Professionals Development Scheme IPPDSI for talent in the plumblng and heating engineering industry. It wlll provide rnentoring support and guldance to plumbers as they embark on their careers. Exhlbltlons The CIPHE was agaln a key partner and exhibitor at the InstallerSHOW In its new home at the irmlngham NEC. Once again, CIPHE partnered with a number of Induslrlal Assotlate mernbers to run a competitlon that meant CIPHE was visible across a number of stands lo help drive footfall aeross a number of stands The Institute asslsted and contributed to presentations at the event, the promotlon or a Certificate of Excellence in conlunctlon wlth the Worshipful Company of Plumbers and with judging for the Installer Merlt Awards and the Heating Installer of the Year Award. Overall, the event was another g￿at success for the CIPHE, generatlng new mernbers, strengthenlng tSes with exi5tlng members. Page 11 THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGINEERING REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 Promotlonal Campalgns and Media The CIPHE has worked closely wlth the plumblng and heating trade press, who consistendy a551sted in promotlng the Proud to be a Profession31 and custorner safety, health and wellbeing campalgns and provided signlficant coverage on the CIPHE manifesto. CIPHE has also been increasingly prominent In national media regarding plumblng and heating i55ues. including an appearènce on the Tonight programme by Jerry Whlteley for its investigation into heat pumps. The CIPHE continues Its calls for greater levels of communication between government and organlsètions such as the CIPHE to establlsh long-term strategies which will combat Ihe fuel poverty epidemic. The CIPHE and its membership Is dedicated to safeguarding the most vulnerable In sociÈty, and that includes those livlng in fuel poverty. With continued volatility surrounding fuel prices there is increaslng toncern that many more p8ople wlll enter into fuel poverty. The Government must seek to protect these people., only by working together can we srop the ￿nne￿5Sary and highly preventable dÈath5 attributable to thi5 Issue. Website statistlcs The launch of the CIPHE website in April means reporting on a year that was 250/0 old webslte and 75% new. However, there have been some ￿allY positive trends that the CIPHE can ￿POrt on.. Slie user5.' 72,866 Sesslons.. 102,801 Sessions per user.. 1.41 Page vlews.. 324,473 Page5 per session.. 3.16 Average session duration.. 02..21 In additlon, durlng 2023, the followlng transactions took place through the website- 420 people Jolned onllne - total value of £75,552 1,093 shop orders placed total value of £30,235 1,655 metnbership renewal payments made onllne - total value of £247.360 Social Media The CIPHE is active on soclal medla and at the year-end had increased its followers on all 3 platforms.. Linkedln Facebook X (formerly known as Twitter) 22% 4.6% 0.1 Annual General Meeting The 15th AGM of CIPHE was held on Thursday 22nd June. The AGM was kindly hosted by Geberit TrBinlng Academy at their premises In Warwlck and was also conducted via Zoom Conference Facllitie5. In excess of 47 members participated worldwlde to see Alex WSldlsh take offlce as National Presldent and Yvonne Oryill as Vlce-PresSdent. Neil Overton was elecled as Votlng Member Trustee to serve on the Board for 4 years and Rob Mallender was elected to Serve as a Votlng Mernber Trustee to serve for I year. FINANCIAL REVIEW Reserves pollcv The Trustees regularly review the reserves of the charlly to meet It5 financlal commitments and achleve its objectives. They conslder that the charity had sufficienl reserves to oper3te for the next 12 rnonths and Into the foreseeable future. The prime objective or the reserves policy of the Trustees Is to maxlmlse CIPHE surplus funds which are held in a range of Interest bearing bank accounts. In particular the General Fund Is Invested wlth due reg￿rd to potentiBI calls on the fund as Identlfled In the Strategic Plan. Page 12 THE CHARTERED INSTITUTE OF PLUMBXNG & HEATING ENGINEERING REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31ST DECEMBER 2023 Investment poll¢y and objectives The Institute has the power to make any Investment that the Trustees see fit. Head Office Following an extenslve review of 64 Statlon Lane, including costs of refurblshment and staffing, the Board of Trustees agrÈÈd to put the property on the markel wlth a view to selling the building and land. Fenn Wright Estate and Lettyng Agency were appoinled to oversee the sale and the CEO h25 been tasked with flnding alternatlve premises. ACKNOWLEDGEMENT The CIPHE 2023 Trustee Report Is structured around our key objectives and hlghllghts key actlvltyes throughout the year. Atknowledgement and appreciation must be glven to the Trustees, Presidents, Branches, volunteers, staff and Industry stakeholders who have asslsted the CIPHE throughout the year. Your commltment ènd enthuslasm in supporting our alms and actlvities has challenged, motivated and Insplred the CIPHE to progress and we look forward to working closely with you In the comlng years. STATEMENT OF TRUSTEES RESPONSIBILITIES The Trustees are responsible for preparlng the financlal statetnents in accordance wlth applieable law and Unlted Kingdotn Generally Accepted Accountlng Practlce. The Trustees are required to prepare flnanclal statements for each financial year whlch glve a true and falr vlew of the state of affairs of the Charity and of the Incomlng resour￿5 and application of resources, Including the income and Èxpendlture, of the Charlty for that period. In preparlng those finanaal statements, the Trustees are requlred to: review, update and, If nece55afyi e￿SUre they acquire the netrssary skllls to discharge their responsibilities a5 a Trustee,. review the declaratyon of interest at each meetlng,. select suitable accounting pollties and then apply them consistently; observe the methods and principles In the Charlty SORP; make judgements and estimate5 that are reasonable and prudent. prepare the financial statements on the golng concern b6515, unless It Is inappropriate to presume that the Charity will continue In buslness. The Trustees are responslble for keeping proper 3CCOUntlng records, which dlsclose wlth reasonable accuracy at any time, the financial posltlon of the Charity, to enable thern to ensure that the flnanclal statements comply wlth the requirement5. They are also responslble for safeguarding the assets of the charitable cornpany and hence for taklng reasonable Steps for the prevention and detectlon of fraud and other Irregularitie5. srATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS As far as the Trustees are aware, there Is no rÈlÈvant Information of which the Charity's audliors are unaware, and each Trustee ha5 taken all the steps that Ihey ought to have taken as a Trustee. in order to rnake them aware of any audlt Informltion and to establlsh that the charltable company's auditors are aware of that Information. AUDrroRS The auditors, clernen￿ Hoar Cummlngs, wlll be proposed for re-appolntment at the forthcomlng Annual Gener31 Meeting. ON BEHALF OF THE BOARD OF TRUSTEES: By order of the Board of Trustees Paul Massey, Chairman Date.. 20th March 2024 Page 13 REPORT OF THE INDEPENDENT AUDXTORS TO THE TRUSTEES OF THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGINEERXNG Oplnlon We have audlted the flnanclal statements of The Chartered Institute of Plijmhlng & HeBtlng Fng1neering (the 'charStable company'l for the year ended 31sl' Deceinber 2023 whlch comprlse the Statement of Financial Activities. the Balance Sheet, the Cash Flow Statement and noles to the financial statements, Includlng a summary of significant accounting pollcles. The financial reportlng franiework that has been applied In thelr preparatlon is applieable law and Unlted Klngdam Atcountlng Standards (United Kingdorn Generally Accepted Accountlng Practlcel, Including Financial Reportlng Standard 102 'The Flnancial Reportlng Standard applicable in the UK and Republlc of Ireland,. Ill our opinion the financlal statements: give a true and fair view of the state of the charliable company's affairs as at 31st December 2023 and of Its incomSng resources and application of resources, Including its incorne and expenditure for the year then ended,. have been properly prepared in accordance wlth United Kingdom Generally Accepted Accountlng Practlce, including Flnancial Reportlng Standard 102 'The Flnandal Reportlng Standard appllcable In the UK and Republlc of Ireland" and have beeTr prepared in accordan￿ wlth the requlrement5 of the Companies Act 2006. Basis for oplnlon We. r.ondiscted our audit in accordance wlth Internatlonal Standards on Audltlng IUKI IISAS IUKII and appli£ébl& Idw. Our responsibilit(es vnder those standards a￿ further described In the Auditors, responsibilities for the audit of tho financial statements section of our report. We are IndepÈndp.nt of the charitatile company in accordatice wlth the ethlcal ￿0￿]re￿entS that are relevaIiL to our autiit uf the finarktldl stdt&irient5 Irtr the UK, including Ihe FRC'S Ethl¢al Standard, and the provisions available for small entitle5, In tho circumsrances set out In note 23 to the financlal statements, and we have fulfilled our other ethical responsibilitles in accordance wlth these requirements. We believe that the èudlt evldence we havE obtained is sufficient aiTrd approprlate to provlde a basls for our opinion. Conclugions relating to golng concern In auditing th& finènclal statement5, we have concluded that the trustees, use of the golng COn￿rn basis of accovntlng In the prepaiatlon of the flnanclal statements is appropriate. Based on the work we havÈ perfQ￿ttd, we have not identified any materlal uncertaintles relating to events or eondltions that, Indlvldually or colleLtivelyi cast 5ignificaiit doubt on the charltable company's afjlllty to continue as a going concern for a perlod of at least twelve months from when the fiNancial statements are authorised for issue. Our responsibilities and the responslbllltles of the trustees wlth respect to going concern are descrlbed In the relevant sectlons of thls report. other Information The trustees are responslble for the other infortnatlon. The other information comprlses the information included in the Annual Report, other than the finanaal statements znd our Report of the Independent Auditor5 thereon. Our opinion on the flnanclal statements does not cover the other Infortnatlon and, except to the extent otherwlse expllcitly stated in our report. we do not Èxpress any fomi of assurance condusion thereon. In connection with our audlt or the fSnanclal statements, our ￿SponSIbIlitY is to read the other information and, in doing so, consider whether the other Inforniatlon Is maLer¢ally inconsistent wlth the flnanclal statements or our knowledge obtained in the audlt or othÉrwlse appears to be materially misstated. If we Identlfy such maiemal Inconsistencies or apparent material misstatements, we are requlred to determine whether this gives rise to è maierlal mlsstatement in the finanaal statements themselves. If, based on the work we have perft)rmed, we conclude that there Is a materlal misstatement of this other Informatlon, we are requlred to ￿pOrt that fact. We have nothlng to report in thls regard. Page 14 REPORT OF THE INDEPENDENT AUIJXTORS TO THE TRUSTEES OF THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGINEERING Matters on whlch we &re requlred tts report by exceptlon Wo have nothlng to report in respert of the followlng matters Whe￿ the Charrf(les 1￿cOunts and Retx)rtsl Regulatlons 2008 requires us to report to you If, In our opiniun-. the infonnation glven In the Report of the Trustees is inconsistent In any materlal respect wlth the flnancial statemeNt5,' or the charltable cornpany ha5 not kept adequate accounting records,. or the financial sLatements are not In agreement with the accounting records and rottjrns., or we have not received all the Informatlon and explanation5 we require for our audit. Responsibilities of trustees explalned more fully In the Statement of Trustee5' Re5ponsibllities, the trustees {who are also the directors of the charltable company for the purposes of tompany IAW) are re.5ponsible for the prep3ration of the finanaal Sta￿ments and for being sat15fied that they glve a true and f allocated to actlvitles on a basis conslstent with the use of resources. Intangible assets Development costs are ￿ld at cost until the intanqlble asset Is avallable for use. Arnortlsat*on will be provided at the followlng annual rate In order to write off each asset over Its estlmatÈd useful life. Development costs at 250kn on cost Tanglble flxed assets Freehold property is held at falr value. Any adlustments In fair v&lue wlll show as a surplus or defltit the year. Depreciation Is provlded at Ihe followlng annual rate In order to write orr each asset over est4rnated useful life. Fixtures and flttings at 25Q/o on cast Investments The holding values of shares In subsldlary undertaklngs are reported at hlstorical cost. Page 22 contlnued... THE CHARTERED XNSTITUTE OF PLUMBING & HEATING ENGINEERING NOTES TO THE FINANCIAL STATEMENTS- contlnutsd FOR THE YEAR ENDED 31ST DECEMBER 2023 ACCOUNTING POLICIES - contlnued Stocks stocks are valued at the lower of cost and net reallsable vzlue, after maklng due allowance for obsolete anij slow moving Items. Taxation As a charity, The Chartered InsbtLtrte of Plumblng and Heatlng Engineering is exempt tax on Income and gains falling wlthSn section 505 of the Taxes Act 1988 (Ir $256 of the Taxatlon of Chargeable Galns Act 1992 to the extent that these a￿ applied to its charitable objects. Fund accounting Unreslricted funds can be used in accordance wlth the charitable obJe£tlve5 at the dI￿retIOn of the trustees. Restrfrted funds can only be used for part5¢ular restricted purptsses wtthin the objects or the charily. Restrirtions arlse when specified by the donor or when fund5 are ralsed for particular restrlcteif purposes. Deslgnated funds are unrestrleted funds 'ring fenced, by the trustee5 for particular purposes. Further explanat(on of the nature and purpose of each fvnd is Included In the notes to the 1Snan¢ial statements. Penslon costs and other p05t-retiwement benefits The chèrltable company operates a defined contnb¥bon penslon scheme. Contributions payable to the charitable company's pension scheme are d)arged to the Statement of Ananclal Activltie5 In the perlod to whlch they relate. DONATIONS AND LEGACIES 2023 2022 Legacies OTHER TRADfNG ACTIVITIES 2023 2022 Sales of supplles Office serVi￿S Sundry ¢neome 57.876 30,617 41.698 11,467 103 601 Page 23 continued... THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGENEERING NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31ST DECEMBER 2023 INVESTMENT INCOME 2023 2022 Deposit account interest INCOME FROM CHARITABLE ACTIVITZES 2023 2022 Activlty ducational Magazlnes & Dlrectory Maintalnlng Professlonal Standards & Awareness Publltatlons 36,095 29,976 Fees from members 940 737 976 832 883 355 RAISING FUNDS Other tradlng actlvltles 2Q23 2022 Cost of stspplie5 501d CHARITABLE ACTIVITIES COSTS Grant funding of activittes (see note Support costs (see nrté 91 Dlrect Costs 8) Toralg Educatlonal Magazlnes & DlrÈctory Support Services for Nembers Nalntalnlng Professlonal Standards & Awareness 264.343 84,830 268,896 349,173 293,044 24,148 203 646 454 331 467 989 604 411 1 096 548 GRANTS PAYABLE 2023 2022 Support Services for Members Page 24 contlnued... THE CHARTERED INSTITUYE OF PLUMBING & HEATING ENGINEERING NOTES TO THE FXNANCfAL STATEMENTS - contlnued FOR THE YEAR ENDED 31ST DECEMBER 2023 SUPPORT COSTS Staff costs Commun- ication5 Offlce costs Premlses costs Educatlonal Maua21nes & Directory Support Servi￿5 for Members Maintalnlng Professlonal Standards & Awareness 23,457 8.879 45.789 1,347 169,406 8,880 45,790 9,716 260 625 137 383 Neetlng & conference expenses Finance costs Governance costs Other Totals Educational Magazlnes & Directory Support Service5 for Members Maintaining Professlonal Standards & Awareness 5.358 84,830 5,356 6,507 16,394 6,847 268.896 250 685 604 411 Actlvity Basls of allocatlon Staff costs Use of Staff Tlme Communlcarions Use of Resource5 Offlce costs Use of Resources Premlse5 Costs Use of Staff Time Flnance costs Use of Resources Other Use of Resources Meetlng & conference expenses Use of Resources Governan￿ costs Use of Resources 10. NET JNCOMEI(EXPENDITURE) Net Incomellexpfytditurel Is stated after charglng/lcredltlngl'. 2023 2022 Audltors, remuneratlon Taxation compliance serVI￿S Depreclatlon owned assets Development costs amortlsation 10,058 1,045 4,459 9,016 968 3.302 Page 25 continued... THE CHARTERED INSTITUTE OF PLUMBING & HEATENG ENGINEERING NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31ST DECEMBER 2023 11. TRUSTEES. REMUNERATION AND BENEFIT5 The￿ were no tru5tees' remuneration or other beneflts for the year ended 31st December 2023 nor for the yeaf ended 31st December 2022. Trustee5' expenses Reimbursed meetlng and travel expenses totalling £652 12022.. £5171 were pald to two of the trustees csuring the year. Other meeting costs mer by the charity on behalf of the Board of the Trustees were NTL12022,. £3721. Expenditure related to the Presldents dlnner event were E4,432 12022-. £3.8191. 12. sfAFF COSTS 2023 2022 Wages and salarles Social 5ecurlty cosis other pension costs 456,052 42,822 417,609 40,981 S28 289 489 085 The full ttme eoulvalent number of employee5 for the year was as follows,. 2023 2022 Membership Technical Support Total The average monthly number of employees durlng the year was as follows: 2023 2022 Management Technlcal Administration li li The number of employe￿ whose employee beneflts {ex¢lud¥ng employer pension costs) ex￿eded £60,000 wa5.. 2023 2022 £60,001 - £70,000 £90,001 - £100,000 £IOO,ODI - £IIQ.DOO Key Management personnel employee beneflfs are £163,358 12022.. £156.295 1. Paoe 26 continued... THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGINEERING NOTES TO THE FINANCIAL STATEMENTS- contlnued FOR THE YEAR ENDED 31ST DECEMBER 2023 13. HIGHER EARNING EMPLOYEES Contributions totalllng É17,019 (2022.. £16,262) pald durlng the year under money purchase schetne lor hlgher pald employees. 14. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES Unrestricted fijnds Restrfcted funds Totsl fvnds INCOME AND ENDOWMENTS FROM Donatlons and lÈg&Lies 94,793 94,793 aritable a¢tivitie5 Educatlonal MagdzinÈs & Directary Maintalning Professional Standards & Awareness 29,976 29,976 853,379 853,379 Other tradlng activltles Irnvest￿ent income 65,850 65.850 Total 1046 614 1 046 614 EXPENDITURE ON Ralslng funds 8,342 8,342 Charitable actlvltles Educational Nagazine5 & Dlrectory Support Service5 for Member5 Maintainlng Professlonal Standards & Awareness 254,925 290,844 254,925 290,844 491 700 491 700 Total 1045 811 1 045 811 NET INCOME 803 803 RECONCILIATION OF FUNDS Total funds brought forward 1,272,420 1,272,420 TOTAL FUNDS CARRIED FORWARD 1 273 223 L 273 223 Page 27 continued... THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGINEERING NOTES TO THE FINANCIAL STATEMENTS- ¢onlinuéd FOR THE YEAR ENDED 31ST DECEMBER 2023 15. INTANGZBLE FXXED ASSETS Development costs COST At 1st January 2023 AddStions 174,583 At 31st De￿rnber 2023 190 108 AMORTISATION At 1st lanijary 2023 Charge for yÈar 91,433 At 31st netember 2023 138 960 NET BOOKVALUE At 31st Decernber 2023 At 31st Decémber 2022 16. TANGIBLE FIXED ASSETS Fixtures nd Freehold property Totals COST OR VALUATION At 1st January 2023 Addltions Dlsposdls Revaluatlons 790.000 57,475 5,598 (6,235) 847,47S 5,598 (6.235) 310 000 310 000 At 31st December 2023 i loo 000 1 156 838 DEPRECXATION At 1st January 2023 Charge for year Ellminated on disposal 53.336 4,459 53,336 4,459 At 21st December 2023 NET BOOK VALUE At 31st December 2023 i loo 000 5 278 1 105 278 At 31st December 2022 790 000 794 139 Included in cost or valuation of land and buildings is freehold land of £500,000 (2022 - £500.OOOJ whlch Is not depreclated. Page 28 contlnued... THE CHARTERED INSTITUTE OP PLUMBING & HEATING ENGINEERING NOTES TO THE FINANCIAL STATEMENTS- Contlnued FOR THE YEAR ENDED 31ST DECEMBER 2023 16. TANGIBLE FIXED ASSETS- contlnued Cost or valuatlon at 31st December 2023 Is represented by.. Flxtures nd fittlngs Freehold propprty Totals Valuatton In 2023 Cost 310,000 790 000 310.000 846 838 i ioo.ooo 56 838 1 156 838 The Freehold Property Wa5 valved at 31 December 2023 by John Hogan Ba (Honsl MSC MRICS of Fenn Wright. A flrm regulated by RICS. The Instllute also owrTrs the President's Chaln and Lady's Pendant whlch have not been incorporated intrj the balan￿ sheet. The Chain and Pendant are valued for insijrance purposes. 17. FIXED ASSET JNVESTMENTS Sha￿9 In group undertakings MARKET VALUE At 1st January 2023 and 31st D￿mber 2023 NEY BOOKVALUE At 31st Decetnber 2023 At 31st December 2022 There were Tro Investment assets outslde the UK. The company's investments at the balance sheet date in the share capltal of companles include the following-. Plumblny & Heating Promotlons Llmited Reglstered office.. 64 St