**The Chartered Institution of Highways & Transportation Report and financial statements For the year ended 31 December 2021**
**Registered by Royal Charter: RC000835 Registered Charity: England (1136896), Scotland (SC040873) and the Republic of Ireland (20103989)**
**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 CONTENTS**
|**Introduction and CEO Update**|**1**|
|---|---|
|**Trustees’ Report for the year ended 31 Dec 2021**|**4**|
|**Reference and administrative details**|**15**|
|**Independent Auditor's report**|**17**|
|**Consolidated statement of financial activities**|**21**|
|**Charity and group balance sheets**|**22**|
|**Group Statement of Cash Flows**|**23**|
|**Notes to the financial statements**|**24**|
**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 CHAIR’S INTRODUCTION AND CEO UPDATE**
## **Introduction**
The past two years have been ones of tumultuous change. The challenges that CIHT and other organisations have faced from responding to COVID-19 is unlike any we have ever known. Trustees have worked closely with the Executive staff over this period to ensure the Institution responded quickly and effectively.
CIHT has adapted to the new operating environment and embraced momentous change in the way we work and deliver services. Going forward, we anticipate and welcome some return to more traditional engagement and face to face activity. However, this will continue to be complemented and enhanced by the extended use of digital media.
The commentary provided in the Board of Trustees report highlights some of our key achievements during 2021.The Institution could not have achieved all it has done without the unstinting efforts of members who give their time and attention to the work of the Institution. In this respect, the work of the regions and devolved nations in the UK and the international groups in the Republic of Ireland, Hong Kong, Malaysia, Dubai, and Qatar, should be recognised. In addition, many members contributed by serving on the Council, Strategic Boards (Committees) and working groups of the Institution. The Trustees are grateful to the volunteers and their employers for allowing their staff to undertake this work in the interests of the profession.
During the last 12 months, we also conducted extensive consultations with our membership and other key stakeholders on a vision for CIHT and a definition of our strategic priorities over the medium term. This led to development of the new CIHT corporate strategy (CIHT 2022+) which was signed off by Council in November 2021. Three over-arching themes underpin the delivery of our strategy. These are Climate Action; Professionalism; and Equality, Diversity and Inclusion (EDI).
With the support of our members, in collaboration with our partners, I believe we can deliver real and longlasting change across our sector for public benefit.
## **Gordon Baker Chair – Board of Trustees**
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**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 CHAIR’S INTRODUCTION AND CEO UPDATE**
## **CEO Update**
The scale of disruption that came in the wake of COVID-19 was both unpredicted and unprecedented. From the outset, CIHT moved quickly to stay ahead of the curve, controlling costs, deferring planned investment and adapting our operations to support members and other stakeholders **.**
In the face of this challenge, we have sought to expand our range of activities to extend our scope and influence and offer more resources including improved support related to professional and career development to members. We have learnt that we are resilient and, more importantly, we can adapt rapidly to shifting priorities in a still uncertain world by reaching out and remaining relevant to our members and partners.
Key to our thinking has been the need to ensure financial sustainability. Excluding movements related to use of restricted or designated funds, the Group has achieved a net year-end general fund surplus of £128K (£237k in 2020) or £340k (£344k in 2020) including the gain in the value of our investment holdings. As detailed in the accounts which follow, the Institution retains a healthy balance sheet with a level of free reserves that exceed the minimum requirements sought in our reserves policy and a robust cash position. CIHT does not have any outstanding loans since we cleared our mortgage on Britannia Walk in 2018. We have also set aside a programme of use for the designated funds to enable the Institution to invest in its capability and general infrastructure, so it is best placed to take advantage of new opportunities going forward.
Increasing the use of technology has been a central feature of our work during this period. We have provided enhanced digital content including an expanded range of online CPD events, podcasts and videos. We have revamped our resource webpages to provide additional member only content that includes an increased selection of technical articles, downloadable publications, an updated CIHT Options offer and accessible conference materials.
During 2021, we have worked on the development of a new digital learning platform (CIHT Learn) that we expect to launch in April 2022. CIHT Learn will enable members and other users to undertake professional learning and development at their convenience (24/7), offering access to a range of courses and programmes delivered in short bitesize chunks that can fit around home and work. Our new digital learning platform has the potential to transform the way in which we support our members and other stakeholders to develop skills and competencies and manage their ongoing Professional Development.
2022 has also seen the launch of a new and improved Transportation Professional journal with additional accessible content and features in response to members’ requests to see an enhanced offering. In addition, we are reviewing our member services and will be launching other new benefits in 2022.
COVID-19 also had a major impact on us as an employer. In line with government advice, our staff have been able to work remotely from home when required during 2021. We moved swiftly to support and facilitate a shift to home-based working and worked with our IT provider to ensure all staff was equipped to work remotely. We sought to increase our internal communications and hold more frequent staff meetings using online platforms such as MS Teams and Zoom. In 2021, we consulted staff upon the introduction of new flexible working contracts that embed scope for some hybrid working as a future norm. By introducing flexible working, we strengthen our ability to be an attractive and competitive employer that will enable us to thrive in competitive markets.
Over this same period, we have also sought to mobilise alternative ways of supporting our volunteer base. Examples include the use of webinar technologies to conduct professional reviews and deliver online meetings/ events, and enhanced use of central IT systems to promote events, enable bookings, administer payments, collect income and manage finances.
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**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 CHAIR’S INTRODUCTION AND CEO UPDATE**
In summary, over the last two years, CIHT has digitised at a pace previously unheard of. Understanding what we have been able to achieve online and by working remotely has been a revelation. We have emerged from this experience as a fitter organisation with the knowledge that we can do things in ways we never thought possible, reaching our members and markets in new and exciting ways. We face the future with optimism and confidence in the knowledge that the commitment and support from our Board of Trustees and volunteers will enable us to flourish and develop for our members’ and the public’s benefit.
## **Sue Percy CEO**
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**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 TRUSTEES’ REPORT**
## **Trustees’ Report for year ended 31[st] December 2021**
The Institution is a Registered Charity in England and Wales (1136896), a Registered Charity in Scotland (SCO40873); a registered charitable body in the Republic of Ireland (20103989) and incorporated by Royal Charter. The CIHT executive staff team normally operate out of a central office located at Britannia Walk near Old Street in London. Since March 2020, the office has been closed in line with government guidance on social distancing and all staff have worked from home, returning to the office (in combination with home working) for a short period in Summer 2021, before the office was closed again, in line with government guidance, towards the end of the year.
The Board of Trustees of the Chartered Institution of Highways & Transportation (CIHT) presents its Annual Report and Financial Statements for the year ended 31 December 2021.
## **Objectives and Activities**
The Chartered Institution of Highways & Transportation was formed on 1 January 2010 following the Grant of a Royal Charter by the Privy Council. (The former Institution of Highways & Transportation was a registered charity and a company limited by guarantee founded in 1930 as the Institution of Highway Engineers). The objects of the Institution are to advance for the public benefit the science and art associated with Highways and Transportation in all their aspects; and to promote education, training, and research and development of the said science and art.
The charitable powers of the Chartered Institution are set out in its Royal Charter and Byelaws dated 30 October 2009. The Institution aims to achieve its objectives by promoting good practice amongst its members, through programmes of meetings, conferences, seminars, and publications, providing routes to Chartered and Incorporated Engineer, Engineering Technician, the SoRSA Certificate of Competency and Chartered Transport Planning Professional; and providing a forum for consultation on all matters affecting Highways and Transportation. The Institution promotes debate in all areas affecting the discipline of Highways and Transportation.
CIHT provides strategic leadership and support to help our members develop, deliver, and maintain sustainable solutions for highways, transport infrastructure, and services that:
- Address the challenges of climate change
- Support the economy
- Help address societal inequalities
- Reduce environmental degradation
- Respond to a changing world
In November 2021, CIHT’s Council signed off a new medium-term strategy ( **CIHT Strategy 2022+)** which highlights our strategic priorities over the next five to ten years which are to:
- **Promote Learning** – providing members with the skills, training and qualifications to be the workforce that our society, the environment and the economy need
- **Influence the future** – working with members, stakeholders and decision-makers to demonstrate the value of efficient transport infrastructure and services and to help improve all networks so that they are safe, sustainable, effective and able to meet the changing needs of society
- **Promote the value of membership** – Recruiting new members and retention of existing members through a reputation for excellence and a range of attractive membership services
In addition to our priorities, we have three overarching themes; **Climate Action** ; **Professionalism** ; and **Equality, Diversity and Inclusion** (EDI)
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**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 TRUSTEES’ REPORT**
## **Delivering public benefit**
All our charitable activities are to advance for the public benefit the science and art associated with highways and transportation in all their aspects; and to promote education, training, and research and development of the said science and art. Success for the Institution is defined in terms of developing the knowledge, skills and effectiveness of members of the Highways and Transportation profession, and in influencing the development of policy and best practice in the field. Performance is measured in terms of increasing numbers availing themselves of existing provision, and the development of new ways of working to support these aims. In addition, the Institution continues to provide advice and guidance to the industry and stakeholders in accordance with its objects.
Membership of CIHT is open to applicants who meet the relevant professional criteria. Lower rates are charged for retired members, graduates, part-time students, and associate members whilst special concessions are offered in cases of personal change of circumstance, hardship, or unemployment. Full-time students and apprentices are offered membership free of charge.
Regional and national technical events and seminars (some of which are free of charge) are open to nonmembers to attend. The work of the Institution at a UK level is focused on developing, promoting and disseminating good practice and excellence in areas such as Transport Planning, Climate Change, Equality, Diversity and Inclusion, Road Safety, Sustainable Transport and Innovation for the public good. CIHT continues to contribute to skills development by its work on offering routes to professional qualifications and by developing our approach to continuous learning and embedding this as an essential requirement for a skilled and effective workforce. Its achievements and performance set out below provide a more detailed account of CIHT’s contribution to the industry in pursuit of its charitable objectives.
The Trustees have referred to the Charity Commission’s general guidance on public benefit when reviewing the charity’s aims and objectives and in planning its future activities. In particular, Trustees consider how planned activities will contribute to the aims and objectives that have been set.
The Trustees confirm that they have complied with the duty in section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission in determining the activities undertaken by the charity.
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**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 TRUSTEES’ REPORT**
## **Membership, achievements, and performance highlights for 2021**
Key achievements and performance are reported below under the three strategic priorities that were updated in November 2021.
## **1) Promote learning**
CIHT is the only body to offer the full range of professional transportation qualifications including Chartered Engineer, Incorporated Engineer, Engineering Technician, Certificate of Competence in Road Safety and, uniquely, Chartered Transport Planning Professional. These qualifications ensure that our members work to high professional standards on behalf of the societies we serve.
|||||
|---|---|---|---|
||**2020**|**2021**||
|Registered Members – Eng Council|1,303|1,410|+107|
|Registered Members – (C)TPP|249|264|+15|
## **During 2021;**
- CIHT achieved Office of Qualifications and Examinations Regulation (Ofqual) recognition as an End Point Assessment Organisation and completed the transition to the new apprenticeship standard. The first apprentices passed through the gateway in Q4 2021.
- Engineering qualifications were aligned to reflect UK spec 4[th] edition and AHEP 4 (the learning outcomes for qualifications accredited under license from the Engineering Council for IEng or CEng)
- New online qualifications platform was implemented.
- Work on development of a new digital learning platform underway – CIHT Learn is scheduled for launch in Q2 of 2022. This will underpin delivery of enhanced CPD functionality and learning resources for our members and other individuals interesting in developing their knowledge and skills.
- CIHT continue to promote STEM, careers in highways and transportation, and transport sectors response to climate adaptation in schools, colleges and universities. This activity is enabled by use of our career guidance packs, our Research and Education Partners’ network, and 147 members who volunteer on behalf of CIHT to undertake these activities.
## **2) Influence the future**
## **Raising the profile**
CIHT members play key roles in policy and technical developments across highways and transportation. Through working closely with members and influential stakeholders, CIHT shapes the decisions that affect our society, environment, and economy.
CIHT has continued to raise its profile through expanding its communication activities. In looking to highlight the variety of initiatives that the Institution is involved in, CIHT has been appearing and commenting in a wide range of media including broadcast, podcasts, online and print.
We continue to be a leader in Equality Diversity and Inclusion. Activities have included the promotion of our Diversity and Inclusion toolkit and Charter, that now has over 71 signatories. The toolkit is available online. Employers are being encouraged to sign up to this charter to help the industry recruit, retain and develop a more diverse workforce. During the year, consultants were appointed to help CIHT develop a new EDI strategy and action plan that was formally signed off in November 2021.
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**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 TRUSTEES’ REPORT**
CIHT developed an action plan to implement its Climate Change pledge. This is a core activity for CIHT and is influencing many of the outputs and projects that have taken place. In 2021, we have worked with an Advisory group to identified priority actions that align with addressing targets in the action plan.
- Blogs have been published featuring thought leadership on COP 26, School Streets, World Alzheimer’s Day and the latest update from Deborah Sims, CIHT President. See more here.
- Media releases have gone out on Budget analysis and commentary, Call for the CSR to commit investment in transport and infrastructure, the release of the Net Zero strategy, our role at COP 26 and many more
CIHT Podcasts progressing with nearly 23,000 downloads
During 2021, Submitted evidence to consultation responses included:
- September 2021 - CIHT Comprehensive Spending Response Submission
- May 2021 - CIHT Response to the Department for Transport's Safe use rules for Automated Vehicles
- April 2021 - CIHT Response to the Transport Select Committee's Smart Motorway inquiry (not public)
- March 2021 - CIHT Response to the Law Commission's Automated Vehicles Consultation 3
- March 2021- CIHT Response to MHCLG consultation on National Planning Policy Framework and National Model design Code
- March 2021 - CIHT Response to the Cabinet Office's Transforming Public Procurement Consultation
- February 2021 - CIHT Response to the Transport Select Committee's Zero Emission Vehicles and Road Pricing inquiry (not public)
- January 2021 - CIHT Response to the Transport Select Committee's Major Transport Infrastructure Projects inquiry
- January 2021 - CIHT response to the Department for Transport Future of Transport: Rural Strategy- Call for evidence
## **Liaison with other institutions and bodies**
- CIHT have been heavily involved in a variety of industry initiatives including Tomorrow’s Engineers Week, International Women in Engineering Day, International Women’s Day, Apprentice Week. We have continued to work closely with cross industry groups including the Highways Sector Council, Construction Industry Council and Royal Academy of Engineering. CIHT has been represented and appeared as speakers at industry events including Highways UK, Traffex, COP26 and North Trancity Rail.
- In 2021, we have conducted work for the Department for Transport (DfT) on an updated Manual for Streets and Road Safety visibility research.
## **Transportation Professional**
In 2021, we moved to a mixture of traditional print and digital only editions of Transportation Professional. Throughout the year, we conducted a market testing exercise which resulted in a decision to appoint a new publisher to work with CIHT on the development and delivery of the Transportation Professional journal and to support us in securing advertising and sponsorship revenues. The new supplier (Think Publishing) commenced operation in January with the first printed edition coming out in March 2022.
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**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 TRUSTEES’ REPORT**
## **3) Promote the value of membership**
Recruiting new members and retaining existing members through a reputation for excellence and a range of attractive membership services.
||||
|---|---|---|
||**2020**|**2021**|
|Paying members|10,298|10,522|
|No of apprentices in membership|360|411|
|% of all new members that are female|24%|26%|
|% of all new members that identify as BAME|21%|22%|
During 2021
- We developed a new member value proposition to highlight the benefits of attracting and retaining members
- Initiated work to ensure the local / regional offer is more consistent in terms of offerings across the UK
- Embedded use of the CIHT Connect platform to support engagement activities and networking across CIHT membership
- Initiated work on the development of a new membership strategy aligned to the vision and aspirations in CIHT Strategy 2022 +
- We have added even more exclusive member resources in MyCIHT including webinar recordings, case studies, best practice, thought leadership and an updated section called the Work.
## **Events**
Our approach to events in 2021 continued as digital first and we only planned to move back to face-to-face events in 2022.
We delivered a significant number of events. There were around 100 digital events run by our regions and nations that had almost 7,000 delegates attend. From a Britannia Walk perspective, we ran 34 events that were attended by over 2,500 attendees.
We value and encourage our next generation of members and have a vibrant and impressive regional, national and international network of emerging professionals who are committed to being active and influential within CIHT. In December, we held our 2-day digital young professionals conference that looked at ‘What’s on the Horizon?’ for tomorrow’s transport professionals. Our inspiring early career professionals are the future of the sector and we will continue to support them to broaden and deepen their knowledge, experience, and professional commitment.
Our 2021 Awards was a digital only event and we attracted many high-quality entries that are now available for members to view as case studies on the CIHT website. The shortlisted entries and winners were announced at a virtual Awards event.
CIHT hosted various roundtables with stakeholders, such as our Partnership Network, which looked at issues including resetting the skills agenda, social value and climate change.
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**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 TRUSTEES’ REPORT**
## **Future plans**
Key foundations that will underpin the delivery of the three strategic aims and three underpinning themes set out in CIHT Strategy 2022+.
## Regions, nations and technical groups
CIHT regions, nations, and technical groups will be at the heart of delivering our strategy. They support members individually, provide local services and engage with governments and regional bodies on strategic issues.
## International focus
We have members across the globe and will continue to deliver on our international strategy. We will collaborate with our international counterparts on shared agendas.
## Member services
We will continue to extend our offer to members by investing in digitally enabled platforms, including CIHT Learn, our new digital learning platform, so that they can receive more personalised support services. This will also help us achieve our aim of cutting carbon emissions. We will enhance accessibility to our services and ensure members have plenty of opportunities to network digitally or in person.
## Diversification of income base
We will continue to diversify our financial resources to ensure we are not overly reliant on membership subscriptions. We will do this by developing our training offering, events and additional services. We will regularly review our investment portfolio to optimise returns and provide a sustainable income base.
## Research, technical and policy
We will continue to develop and deliver quality thought leadership through research, technical and policy pieces to advance the art and science of highways and transportation and build our influence and impact.
## Governance
We will continue to strengthen succession planning across CIHT by encouraging more members to become actively involved in governance. We will review the skills, knowledge and competencies needed to be a progressive professional body and evolve our structures to remain relevant in a changing world.
## Volunteering
We will be clear on what opportunities are available to members to become more actively involved and what they can expect from us through our volunteer strategy. We will provide training and support for volunteers so that they feel valued and able to contribute to the delivery of our work.
## Business planning
We will continue with a three-year business planning cycle to enable the delivery of our strategy, including the prioritisation of actions, strong financial reporting, effective monitoring of performance and alignment of resources to ambition.
## Equality, Diversity and Inclusion Strategy
We will build on our achievements to date to drive the EDI agenda more consistently and with greater pace within the membership and across the sector.
## Climate Action
We will continue to develop our leadership role and support to members through training, influencing and evidence-based research in response to the UK government’s objective of a Net Zero carbon emissions economy by 2050 (2045 in Scotland). We will also seek to become a net zero organisation by 2027.
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**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 TRUSTEES’ REPORT**
## **Structure, governance, and management**
The Institution is a Registered Charity in England and Wales (1136896), a Registered Charity in Scotland (SCO40873) and incorporated by Royal Charter. In June 2017, the Institution was also approved as a registered charitable body in the Republic of Ireland (20103989). With the grant of Royal Charter by HM the Queen at the end of 2009 the Royal Charter and Byelaws became CIHT’s governing documents. CIHT’s members (individually and via the regions) elect the Council of the Institution, and the Council in turn appoints the Board of Trustees. The Board of Trustees is responsible for directing the affairs of the charity and ensuring it is solvent, well run and delivering the charitable outcomes for which it has been set up. It is the policy of the Institution to give a full briefing and guidance to new Trustees on their duties and responsibilities, and to ensure that they have a strong understanding of the issues and risks facing the Institution in achieving its objectives. All Trustees are given induction training each year and access to other training on an ongoing basis. The Board of Trustees has four strategic Boards reporting to it.
## Those four Boards are:
- The Appian Trading Board
- The Education and Professional Development Strategy Board
- The Membership and Member Services Board
- The Learned Society and Technical Strategy Board
The Audit Committee meet with CIHT’s External Auditors twice a year to review the Audit Plan and to receive the Audit of the Annual Accounts and the Management Letter and reports back to the Board of Trustees on the findings and management response.
All profits of the trading subsidiary, Appian Trading Limited, are transferred to the charity through Gift Aid to ensure that funds for the Institution’s activities are used efficiently.
In June 2021, following approval from the Privy Council to enact changes to our Royal Charter and Byelaws, the new governance rules were implemented. Key changes included:
- The appointment of the Chair of Board of Trustees for a two-year term as a separate position to the President.
- Introduction of a Nominations Panel to support Council in recommending appointments to Trustee positions.
- Increase in size of Council to 50 positions embracing a greater diversity of members from all classes and promoting increased representation from young professionals and greater representation from our devolved nations.
- Reduction in the number of supporters that are needed to support a nomination to Council.
- Membership and Skills Strategy Board to be dissolved and split into two new strategic boards addressing Education and the other to oversee Membership and Member Services.
- Closure of the External Affairs and Communication Strategy Board with this function being taken on by the Board of Trustees as a collective responsibility.
## **Good Governance Guide**
Since the Charity Governance Code was launched on 13 July 2017, CIHT has utilised the Code as a framework to support development of better practice. Trustees acknowledge that the charity is best placed to fulfil its vision, mission, and strategic goals if it has effective governance in place. To date, the charity's Board has established a solid foundation in governance in which all its members are clear about their legal responsibilities as Trustees.
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**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 TRUSTEES’ REPORT**
In conducting operations, CIHT seek to operate in line with the seven principles and recommended practice set out in the Charity Governance Code. CIHT already has several of the Code’s measures in place. These include:
- Trustee’s review of CIHT’s charitable purpose and reflect on changes to the external environment at annual planning days and when we conduct business planning.
- The impact of CIHT’s activities against KPIs are reported at each Board meeting.
- Development of a 5-year strategic plan based on CIHT’s agreed values with three strategic aims which are subject to annual review in terms of evaluating our performance and progress in terms of delivery.
- Declarations of interest are collected annually.
- Conflicts of interest are a standard item on the agenda for all Board meetings.
- There is an agreed scheme of delegated authority recorded in CIHT’s Standing Orders and Financial Regulations.
- An annual skills audit for all Trustees is used to identify requirements for Board development and inform the process of new appointments to the Board.
## **Trustee remuneration and pay policy for senior staff**
The key management personnel of the charity comprise the non-executive Board of Trustees and the Senior Management team. The Board of Trustees has ultimate responsibility for directing the affairs of the charity and ensuring it is solvent, well-run and delivering the charitable outcomes for which it has been set up. Day to day operational management of activities is delegated to senior management of the charity.
The Board of Trustees comprises a group of 13 elected members drawn from the CIHT Council. They do not receive any remuneration for volunteering their time and expertise. Details of Trustees’ expenses and related party transactions are disclosed in Note 5 and Note 20, respectively.
A Staff and Remuneration Panel has delegated authority from the Trustees to set pay and benefit levels for all staff members including the CEO and Directors. The Panel comprise the Chair, President, Vice President, Immediate Past President and Hon. Treasurer, and is advised by the CEO.
Staff pay is reviewed annually considering national salary data information from ONS, current inflation rates, London average fare increases, the economic situation in the industry which the Institution serves, and the current finances of the Institution. Every four years the Institution benchmarks against pay levels in other charities of a similar size. In 2021, we introduced a new form of employment contract for staff that enables flexible working arrangements.
## **Investment funds**
During 2021, CIHT has invested surplus funds into two holdings:
- CCLA Charities Investment Fund - a managed fund that invests in a diversified portfolio of investments classes
- CCLA Ethical investment Fund – a managed fund with enhanced restrictions (e.g. no investments in any organisation that derives more than a specified % of its turnover from fossil fuels, etc.)
The objective of our investment holdings is to maximise returns within reasonable and prudent levels of risk as set out in more detail in CIHT’s Investment Policy. At the end of 2021, the value of our investment holding over the year increased by 17.3% reflecting an annual gain of £212k (In 2020: value increased by 9.6% or £107k). This performance compares favourably to the annual rise in Consumer Price Index (CPI) which was 5.7%.
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**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 TRUSTEES’ REPORT**
## **Reserves policy**
CIHT maintains reserves to enable the Institution to fulfill its objectives and to implement the Corporate Plan as well as ensuring the provision of liquid resources representing four months’ operating expenditure estimated as £1,029k based on the 2022 budget. In addition, contingencies may arise due to the long-term nature of the Institution’s activities which may need funding out of reserves in the event of unforeseen circumstances.
As of 31 December 2021, free reserves (which includes designated funds and is defined as Current Assets plus Investments less Current Liabilities and less Restricted Funds) stood at £2,030,576 (2020: £1,869,839). Excluding designated funds (set aside for specific purposes and outlined in Note 15 of the financial statements), net free reserves totaled £1,792,396 (2020: £1,650,601).
## **Going Concern**
The Board of Trustees has carefully reviewed the financial position of the CIHT group, including financial projections for 2022 and 2023, and are satisfied that there are sufficient funds at the date of signature of the financial statements to manage any foreseeable downturn in the UK and global economy. The Board having reflected on the level of liquid reserves held also considers that there is a reasonable expectation that CIHT has adequate resources to continue in operational existence for the foreseeable future and for these reasons the Board of Trustees continues to adopt the going concern basis in preparing financial statements
## **Use of voluntary assistance**
The Institution relies upon the support of many members contributing their own time in the operation of its activities both within the nations, regions, and groups and at Britannia Walk (BW). It is not possible to quantify in financial terms the benefits derived, but all such voluntary assistance is gratefully acknowledged. As indicated below, the ongoing engagement of volunteers is perceived as a medium risk faced by the Institution.
## **Fundraising**
At two of our larger annual events (i.e. the Annual Awards and Annual Luncheon) and occasionally at Regional dinners, attendees are invited to make charitable donations to the CIHT Foundation. This has been set up to provide grant assistance for projects, research or other activity that fits with our charitable objects. The CIHT Foundation is accounted for as a restricted fund and its operation overseen by the Board of Trustees who receive an annual report detailing funds that have been collected by the fund through charitable donations and how these funds have been deployed in line with the stated aims of the CIHT Foundation. In 2021, no funds from charitable donations were collected.
Fundraising is not a material source of raising income for the Institution and we do not engage in use of third parties. There has been no non-compliance with the Fundraising code and no-concerns, or complaints received.
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**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 TRUSTEES’ REPORT**
## **Statement on Risk Assessment**
Overall responsibility for risk management rests with the Board of Trustees who manage the process through formal reviews at board meetings and via the Audit Committee. Day to day responsibility is delegated to the Executive team who identify and evaluate risks that relate to their areas and manage the mitigation plans accordingly.
In 2021, Trustees endorsed a move to adopting use of a new Strategic Risk and Assurance framework that seeks to group together key risks over five areas and forms the basis for overseeing the management of strategic risks faced by the Institution.
|||||
|---|---|---|---|
|**Strategic**
**Risk Areas**|**Net**
**Assurance**
**score**|**What this risk area covers**|**Key mitigations**|
|Strategy
&
Impact|Low
Risk|How we plan and deliver the
strategy and the impact that
it makes on our charitable
objectives|Corporate strategy / Business planning and
performance management framework
Oversight by Trustees, strategic Boards and
Council|
|Financial
sustainability|Medium
Risk|Financial strategy including
income mix, income security,
cost control and financial risk
appetite including reserves
and investment policy|Membership and income diversification strategy
to address impacts of covid-19, diversify our
income base and seek new types of funding
Financial Regulations & policies
Financial management practice and budget
management|
|Governance|Low
Risk|Ensuring organisation is well
run
and
efficiently
that
problems
are
identified
earlier
and
addressed
appropriately;
preservation
of reputation and integrity;
achieving charitable objects|New governance arrangements
Oversight by Board of Trustees & Council
Comprehensive suite of policies & procedures
Risk management process
External audit review
Business continuity planning|
|People (staff
& volunteers)|Medium
Risk|Acting as a responsible
employer and to manage our
use of resources effectively|HR Framework supported by external HR provider
Staff & Remuneration Panel
Annual staff survey
Regional Panel and committees
Regional Action Plans
Monitoring
engagement
and
supporting
volunteers
EDI Strategy|
|Statutory
&
regulatory
compliance|Low Risk|Encompassing broad range
of statutory & regulatory
requirements|Policies
and
procedures
(Data
protection,
Safeguarding, etc)
Annual Health and Safety review
Use of professional advisors as appropriate
Compliance
checklist
overseen
by
Audit
Committee
Reporting to Charities commission and other
regulators/ government bodies|
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**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 TRUSTEES’ REPORT**
## **Statement of Trustees’ responsibilities**
The Trustees are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
The laws applicable to charities in England, Wales and Scotland require the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of resources of the group for that period. In preparing these 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 accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Royal Charter and Byelaws, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees 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.
Signed on behalf of the Trustees
Gordon Baker Chair of the Board of Trustees
Date: 11 May 2022
14
**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 REFERENCE AND ADMINISTRATIVE DETAILS**
## **Name and Registered Office of the Institution**
The Chartered Institution of Highways & Transportation 119 Britannia Walk London N1 7JE
**Charity Registration in England and Wales No:** 1136896 **Charity Registration in Scotland No** : SCO40873 **Charity Registration in Republic of Ireland No:** 20103989
## **Members of the Board of Trustees 2021**
The members of the Board of Trustees, who were Trustees of the charity until 23 June 2021, are shown below.
M Tugwell (President) D Sims (Senior Vice President) N Johnstone (Vice President) S Sharland (Hon Treasurer) M Lugg L Basford G Clarke P Molyneux D Sprunt M Solanki K Campbell
The members of the Board of Trustees, who were Trustees of the charity from 23 June 2021, are shown below.
G Baker (Chair of the Board) D Sims (President) N Johnstone (Vice President) S Sharland (Hon Treasurer) M Tugwell D Skelley R Llewellyn S Hindshaw P Molyneux D Sprunt M Solanki K Lodge D Kitchener
## **Chief Executive and Secretary**
Sue Percy
## **Auditor**
Sayer Vincent LLP Chartered Accountants and Statutory Auditor Invicta House 108-114 Golden Lane London EC1Y 0TL
15
**REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2021 REFERENCE AND ADMINISTRATIVE DETAILS**
## **Solicitors**
Withers Old Bailey London EC4M 7EG
## **Bankers**
Royal Bank of Scotland PLC 24 Grosvenor Place London SW1X 7HP
## **Investment Managers**
CCLA Investment Management Limited Senator House 85 Queen Victoria Street London EC4V 4ET
16
**INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CHARTERED INSTITUTION OF HIGHWAYS & TRANSPORTATION**
## Opinion
We have audited the financial statements of The Chartered Institution of Highways and Transportation (the ‘parent charity’) for the year ended 31 December 2021 which comprise the consolidated statement of financial activities, the group and parent charity balance sheets, the consolidated statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
- Give a true and fair view of the state of the group and parent charity’s affairs as at 31 December 2021 and of the group’s incoming resources and application of resources, for the year then ended
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- Have been prepared in accordance with the requirements of the Charities Act 2011 and of the Charities and Trustee Investment (Scotland) Act 2005 and regulations 6 and 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended)
## Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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.
## Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on The Chartered Institution of Highways and Transportation's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
17
**INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CHARTERED INSTITUTION OF HIGHWAYS & TRANSPORTATION (CONTINUED)**
## Other information
The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.
## Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:
- The information given in the trustees’ annual report is inconsistent in any material respect with the financial statements;
- Sufficient and proper accounting records have not been kept; or
- The financial statements are not in agreement with the accounting records and returns; or
- We have not received all the information and explanations we require for our audit
## Responsibilities of trustees
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, the trustees 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 charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
18
**INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CHARTERED INSTITUTION OF HIGHWAYS & TRANSPORTATION (CONTINUED)**
## Auditor’s responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under that Act.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are set out below.
## Capability of the audit in detecting irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We enquired of management and the audit committee, which included obtaining and reviewing supporting documentation, concerning the group’s policies and procedures relating to:
- Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
- We obtained an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the group from our professional and sector experience.
19
**INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CHARTERED INSTITUTION OF HIGHWAYS & TRANSPORTATION (CONTINUED)**
- We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
- We reviewed any reports made to regulators.
- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## Use of our report
This report is made solely to the parent charity’s trustees as a body, in accordance with section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005, section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the parent charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent charity and the parent charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## Sayer Vincent LLP, Statutory Auditor
Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL Date: 8 June 2022
Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006
20
## **THE CHARTERED INSTITUTION OF HIGHWAYS & TRANSPORTATION CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (Incorporating a Consolidated Income and Expenditure Account & Statement of Total Recognised Gains and Losses) For the year ended 31 December 2021**
|**Unrestricted**
**Funds**
**2021**
Note
**£**
**Income**
Donations and legacies
**-**
Member activities
2
**1,730,079**
Project income
3
**183,448**
Education income
**106,741**
Publication sales
**35,648**
National Conference
**3,137**
**2,059,053**
Other trading activities:
Appian Trading
**54,249**
Investment income receivable
**1,556**
Other income
**30,450**
**Total income**
**2,145,308**
**Expenditure**
Expenditure on Charitable activities:
Membership
**1,177,098**
Education
**357,081**
Publications
**402,125**
Motorway Archive Trust
**613**
**1,936,917**
**338,935**
**Total expenditure**
4
**2,275,852**
**(130,544)**
Net gains on investments
10
**212,111**
**81,567**
**Net movement in funds**
**81,567**
**Reconciliation of funds**
Total funds brought forward
**4,288,911**
**Total funds carried forward**
15
**4,370,478**
**£ **
Income from Charitable activities:
**Net (expenditure) / income before**
**gains on investments**
Expenditure on raising funds:
Trading & collecting subscriptions
**Net (expenditure) / income**
**Net movement in funds**|**Restricted**
**Funds**
**2021**
**£**
**-**
**444**
**95,000**
**19,898**
**-**
**-**
**115,342**
**-**
**-**
**-**
**115,342**
**225,171**
**-**
**-**
**-**
**225,171**
**-**
**225,171**
**(109,829)**
**-**
**(109,829)**
**(109,829)**
**328,796**
**218,967**
**£ **|**Total**
_Total_
**Funds**
_Funds_
**2021**
_2020_
**£**
_£_
**-**
_23,131_
**1,730,523**
_1,754,147_
**278,448**
_446,415_
**126,639**
_96,511_
**35,648**
_50,076_
**3,137**
_4,645_
**2,174,395**
_2,351,794_
**54,249**
_33,599_
**1,556**
_1,764_
**30,450**
_-_
**2,260,650**
_2,410,288_
**1,402,269**
_1,297,855_
**357,081**
_238,993_
**402,125**
_439,328_
**613**
_2,354_
**2,162,088**
_1,978,530_
**338,935**
_310,178_
**2,501,023**
_2,288,708_
**(240,373)**
_121,580_
**212,111**
_106,762_
**(28,262)**
_228,342_
**(28,262)**
_228,342_
**4,617,707**
_4,389,365_
**4,589,445**
**£ **
_4,617,707_
_£ _|
|---|---|---|
All of the above results are derived from continuing activities.
The annexed notes form part of these financial statements
21
## **THE CHARTERED INSTITUTION OF HIGHWAYS & TRANSPORTATION BALANCE SHEETS As at 31 December 2021**
|Note
**Fixed assets**
Intangible assets
8
Tangible assets
9
Investments
10
**Current assets**
Debtors
13
Cash at bank and in hand
**Creditors: amounts falling due**
**within one year**
14
**Net current assets**
**NET ASSETS**
**Funds**
Unrestricted funds:
General funds
Designated funds
Total unrestricted funds:
Restricted funds
**TOTAL FUNDS**
15|**Group**
**2021**
**£**
**376,943**
**1,962,959**
**1,434,861**
**3,774,763**
**228,305**
**920,542**
**1,148,847**
**(334,165)**
**814,682**
**4,589,445**
**£ **
**3,755,355**
**615,123**
**4,370,478**
**218,967**
**4,589,445**
**£ **|_Group_
_2020_
_£_
_394,034_
_2,025,038_
_1,222,750_
_3,641,822_
_436,432_
_889,417_
_1,325,849_
_(349,964)_
_975,885_
_4,617,707_
_£_
_3,675,639_
_613,272_
_4,288,911_
_328,796_
_4,617,707_
_£_|**Charity**
**2021**
**£**
**376,943**
**1,962,959**
**1,434,961**
**3,774,863**
**401,841**
**674,766**
**1,076,607**
**(310,072)**
**766,535**
**4,541,398**
**£ **
**3,707,308**
**615,123**
**4,322,431**
**218,967**
**4,541,398**
**£ **|_Charity_
_2020_
_£_
_394,034_
_2,025,038_
_1,222,850_|
|---|---|---|---|---|
|||||_3,641,922_|
|||||_874,548_
_374,307_|
|||||_1,248,855_|
|||||_(329,923)_|
|||||_918,932_|
||||||
|||||_4,560,854_
_£_|
|||||_3,618,786_
_613,272_|
|||||_4,232,058_
_328,796_|
|||||_4,560,854_
_£_|
The financial statements have been prepared in accordance with section 415A of the Companies Act 2006 relating to small companies. They were approved, and authorised for issue, by the Trustees on 11 May 2022 and signed on their behalf by:-
Gordon Baker Chair of the Board of Trustees
Sue Sharland Honorary Treasurer
The annexed notes form part of these financial statements
22
**THE CHARTERED INSTITUTION OF HIGHWAYS & TRANSPORTATION GROUP STATEMENT OF CASH FLOWS For the year ended 31 December 2021**
|**Cash flows from operating activities:**
Adjustments for:
Depreciation charges
Amortisation charges
Dividends and interest from investments
Decrease / (increase) in debtors
(Decrease) / increase in creditors
**Cash flows from investing activities:**
Dividends and interest from investments
Purchase of tangible fixed assets
Purchase of intangible assets
(Gains) on investments
**Net cash (used in)**
**investing activities**
Cash and cash equivalents at the
beginning of the year
**Cash and cash equivalents at the end**
**of the year**
Change in cash and cash equivalents
in the year
Net (expenditure) / income for the year
(as per the statement of financial activities)
**Net cash provided by operating activies**|**£**
**£**
_£_
_£_
**(28,262)**
_228,342_
**66,421**
_65,141_
**147,591**
_147,763_
**(1,556)**
_(1,764)_
**208,127**
_(244,624)_
**(15,799)**
_53,882_
**376,522**
_248,740_
**1,556**
_1,764_
**(4,342)**
_(33,118)_
**(130,500)**
_-_
**(212,111)**
_(106,762)_
**(345,397)**
_(138,116)_
**31,125**
_110,624_
**889,417**
_778,793_
**920,542**
**£ **
_889,417_
_£ _
_2020_
**2021**|**£**
**£**
_£_
_£_
**(28,262)**
_228,342_
**66,421**
_65,141_
**147,591**
_147,763_
**(1,556)**
_(1,764)_
**208,127**
_(244,624)_
**(15,799)**
_53,882_
**376,522**
_248,740_
**1,556**
_1,764_
**(4,342)**
_(33,118)_
**(130,500)**
_-_
**(212,111)**
_(106,762)_
**(345,397)**
_(138,116)_
**31,125**
_110,624_
**889,417**
_778,793_
**920,542**
**£ **
_889,417_
_£ _
_2020_
**2021**|
|---|---|---|
||||
|||_110,624_
_778,793_|
|||_889,417_
_£ _|
The annexed notes form part of these financial statements
23
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **1. ACCOUNTING POLICIES**
## **1.1 STATUTORY INFORMATION**
The Chartered Institution of Highways and Transportation is a charitable company limited by royal charter in England and Wales. The registered office address and principal place of business is 119 Britannia Walk, London N1 7JE.
## **1.2 BASIS OF PREPARATION OF FINANCIAL STATEMENTS**
These financial statements have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The charity and its subsidiary are a public benefit group for the purposes of FRS 102 and therefore have also prepared the financial statements in accordance with the 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 (The FRS 102 Charities SORP) and the Charities Act 2011.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Trustees have assessed whether the use of the going concern basis is appropriate and have considered possible events or conditions that might cast significant doubt on the ability of the charity and group to continue as a going concern. The Trustees have made this assessment for a period of at least one year from the date of approval of the financial statements. In particular the Trustees have considered the charity and group’s forecasts and projections. After making enquiries the Trustees have concluded that there is a reasonable expectation that the charity and group have adequate resources to continue in operational existence for the foreseeable future. The charity and group therefore continue to adopt the going concern basis in preparing the financial statements.
These financial statements consolidate the results of the charity and its wholly-owned subsidiary Appian Trading Limited on a line by line basis. Transactions and balances between the charitable company and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes to the financial statements.
The financial statements are presented in pounds sterling as this is the functional currency of the group. The accounts of non-sterling branches are translated into sterling. Income and expenditure items are translated at appropriate average rates and monetary assets and liabilities at the rates at the balance sheet date. The currency gains and losses are taken to the unrestricted funds.
## **1.3 INCOME**
Income is included in full in the statement of financial activities when receivable unless it relates to a specific future period, in which case it is deferred.
Income from government and other grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably.
24
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **1.4 EXPENDITURE**
Expenditure is recognised in the period in which it is incurred. Expenditure includes attributable VAT which cannot be recovered.
Expenditure is allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned based on an estimate of staff time, of the amount attributable to each activity.
Support costs relate to premises costs which are allocated on floor area basis; other costs are allocated in proportion to income. Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.
Branches / regions are accounted for on the accruals basis, other than branches which are treated as affiliates for accounting purposes which are not consolidated.
Monetary assets and liabilities and transactions in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date.
## **1.5 TANGIBLE FIXED ASSETS AND DEPRECIATION**
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
Building core 50 years Long leasehold land not depreciated Leasehold improvements 25 years Office equipment and furniture 5 years Computer equipment 3 years
Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.
## **1.6 INTANGIBLE FIXED ASSETS AND AMORTISATION**
Amortisation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The amortisation rates in use are as follows:
Database and website 5 years Development learning platform 5 years
## **1.7 FUND ACCOUNTING**
Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is identified to the fund, together with a fair allocation of management and support costs.
Unrestricted funds are donations and other income received or generated for the charitable purposes.
Designated funds are unrestricted funds earmarked by the Trustees for particular purposes.
## **1.8 INVESTMENTS**
Fixed asset investments are stated at market value, where market value represents the mid-market value on the last trading day before the year end. Gains and losses arising on investment assets, whether realised or unrealised, accrue to the fund for which the investments are held.
25
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **1.9 STOCKS**
Stocks are stated at the lower of cost and net realisable value. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation.
## **1.10 CREDITORS AND PROVISIONS**
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## **1.11 PENSIONS**
The charitable company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the charitable company in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the charitable company to the fund. The charitable company has no liability under the scheme other than for the payment of those contributions.
## **1.12 FINANCIAL INSTRUMENTS**
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
With the exceptions of prepayments and deferred income all other debtor and creditor balances are considered to be basic financial instruments under FRS 102.
The year end carrying value of financial assets and financial liabilities, measured at amortised cost, was as follows:
|Financial assets measured at fair value
Financial assets measured at amortised cost
Financial liabilities measured at amortised cost|**Group**
**2021**
**£**
**1,434,861**
**95,190**
**182,313**|**_Group_**
**_2020_**
**_£_**
**_1,222,750_**
**_334,629_**
**_187,055_**|**Charity**
**2021**
**£**
**1,434,961**
**269,678**
**182,313**|_Charity_
_2020_
_£_
_1,222,850_
_782,745_
_182,414_|
|---|---|---|---|---|
The year end carrying value of financial assets that are equity instruments, measured at cost less impairment and relating to the charity only were £100 (2020: £100). This balance relates to the investment in the subsidiary company, Appian Trading Limited.
## **1.13 ACCOUNTING JUDGEMENTS AND ESTIMATES**
The key judgements and estimates used in the preparation of these financial statements are as follows:
- The depreciation rate of tangible fixed assets and amortisation rate of intangible assets (as detailed above)
- Support costs are apportioned to direct activities based on the direct staff costs allocated to those activities
There are no other key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
26
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **2. INCOME FROM MEMBER ACTIVITIES**
|Member subscriptions
Corporate partners
Regions & Nations
Other|**Unrestricted**
**Funds**
**2021**
**£**
**1,540,595**
**140,008**
**36,938**
**12,538**
**1,730,079**
**£ **|**Restricted**
**Funds**
**2021**
**£**
**-**
**-**
**444**
**-**
**444**
**£ **|**Total**
_Total_
**Funds**
_Funds_
**2021**
_2020_
**£**
_£_
**1,540,595**
_1,527,947_
**140,008**
_156,405_
**37,382**
_55,091_
**12,538**
_14,704_
**1,730,523**
**£ **
_1,754,147_
_£ _|
|---|---|---|---|
In 2020, all income from member activities was unrestricted.
## **3. PROJECT INCOME**
|Secretariat fees
Visibility project
Manual for Streets 3|**Unrestricted**
**Funds**
**2021**
**£**
**183,448**
**-**
**-**
**183,448**
**£ **|**Restricted**
**Funds**
**2021**
**£**
**-**
**-**
**95,000**
**95,000**
**£ **|**Total**
_Total_
**Funds**
_Funds_
**2021**
_2020_
**£**
_£_
**183,448**
_193,415_
**-**
_248,000_
**95,000**
_5,000_
**278,448**
**£ **
_446,415_
_£ _|
|---|---|---|---|
In 2020, £248,000 relating to Manual for Streets 3 was restricted. All other project income in 2020 was unrestricted.
## **4. EXPENDITURE**
## **CURRENT YEAR**
|Membership
Education
Publications
Motorway Archive Trust
Fundraising Appian
Trading & collecting
subscriptions
Support costs (see Note 6)|**Staff**
**costs**
**£**
**520,897**
**184,979**
**107,419**
**329**
**813,624**
**173,497**
**414,740**
**1,401,861**
**£ **|**Direct**
**costs**
**£**
**431,239**
**12,252**
**201,880**
**-**
**645,371**
**15,510**
**438,281**
**1,099,162**
**£ **|**Support**
**costs**
**£**
**450,133**
**159,850**
**92,826**
**284**
**703,093**
**149,928**
**(853,021)**
**Nil**
**£**|**2021**
_2020_
**£**
_£_
**1,402,269**
_1,297,855_
**357,081**
_238,993_
**402,125**
_439,328_
**613**
_2,354_
**2,162,088**
_1,978,530_
**338,935**
_310,178_
**-**
_-_
**2,501,023**
**£ **
_2,288,708_
_£ _|
|---|---|---|---|---|
27
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **4. EXPENDITURE (continued)**
## **PRIOR YEAR**
|_Membership_
_Education_
_Publications_
_Motorway Archive Trust_
_Fundraising Appian_
_Trading & collecting_
_subscriptions_
_Support costs (see Note 6)_|_Staff_
_costs_
_£_
_502,007_
_114,207_
_113,903_
_296_
_730,413_
_149,919_
_432,972_
_1,313,304_
_£ _|_Direct_
_costs_
_£_
_280,074_
_7,447_
_208,398_
_1,754_
_497,673_
_6,228_
_471,503_
_975,404_
_£ _|_Support_
_costs_
_2020_
_£_
_£_
_515,774_
_1,297,855_
_117,339_
_238,993_
_117,027_
_439,328_
_304_
_2,354_
_750,444_
_1,978,530_
_154,031_
_310,178_
_(904,475)_
_-_
_Nil_
_£_
_2,288,708_
_£ _|
|---|---|---|---|
## **5. NET (EXPENDITURE) / INCOME FOR THE YEAR**
This is stated after charging:
|Depreciation
Amortisation
Trustees' expenses
Auditor remuneration (excluding VAT):
Audit - current year|**2021**
**£**
**66,421**
**147,591**
**979**
**12,075**|_2020_
_£_
_65,141_
_147,763_
_1,414_
_11,500_|
|---|---|---|
The Trustees received no remuneration in the year. Trustees' expenses represent the costs of travel and subsistence for 4 trustees (2020: 5).
## **6. DIRECT SUPPORT COSTS**
|Governance costs:
Audit fee
Legal & professional
Trustee, Council and committee meetings
Other support costs:
Telephone, power, cleaning, rates
Building maintenance
Insurance
Printing, postage & stationery
Computer & internet
Subscriptions
Irrecoverable VAT, payroll processing & bank charges
Depreciation
Accountancy
PR & marketing|**2021**
_2020_
**£**
_£_
**12,075**
_11,500_
**7,078**
_20,671_
**4,517**
_3,079_
**23,670**
_35,250_
**40,387**
_48,732_
**19,040**
_20,003_
**9,462**
_8,180_
**7,581**
_7,392_
**130,527**
_146,650_
**7,794**
_6,299_
**55,907**
_57,520_
**66,421**
_65,141_
**52,080**
_50,700_
**25,412**
_25,636_
**438,281**
**£ **
_471,503_
_£ _|
|---|---|
28
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **7. STAFF COSTS**
Staff costs were as follows:
|Salaries and wages
Social security costs
Pension contributions
Other staff costs, recruitment and training
Total staff cost included as expenditure|**2021**
_2020_
**£**
_£_
**1,134,126**
_1,092,602_
**124,035**
_119,032_
**68,696**
_46,671_
**75,004**
_54,999_|
|---|---|
||**1,401,861**
**£ **
_1,313,304_
_£ _|
The key management personnel of the charity comprise the Chief Executive Officer and senior management team. The total employee benefits of the key management personnel of the charity, inclusive of employer pensions and employer National Insurance contributions, were £444,291 (2020: £448,696).
The number of employees whose emoluments amounted to over £60,000 in the year (exclusive of employer pensions and employer National Insurance contributions) was as follows:
|£60,000 - £69,999
£70,000 - £79,999
£100,000 - £109,999
£110,000 - £119,999
The average headcount during the year was as follows:|**2021**
**No.**
**1**
**2**
**-**
**1**
**27.1**|_2020_
_No._
_2_
_2_
_1_
_-_|
|---|---|---|
|||_25.8_|
## **8. INTANGIBLE ASSETS - CHARITY AND GROUP**
|**£**
**Cost**
At 1 January 2021
**-**
Additions
**130,500**
Disposals
**-**
At 31 December 2021
**130,500**
**Amortisation**
At 1 January 2021
**-**
Charge for the year
**-**
At 31 December 2021
**-**
**Net book value**
At 31 December 2021
**130,500**
At 31 December 2020
_394,034_
**Development**
**learning platform**|**£**
**730,154**
**-**
**-**
**730,154**
**336,120**
**147,591**
**483,711**
**246,443**
_394,034_
**Database**
**and website**|**Total**
**£**
**730,154**
**130,500**
**-**|
|---|---|---|
|||**860,654**|
|||**336,120**
**147,591**|
|||**483,711**|
|||**376,943**|
|||_394,034_|
29
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **9. TANGIBLE FIXED ASSETS - CHARITY AND GROUP**
|**Cost**
At 1 January 2021
Additions
Disposals
At 31 December 2021
**Depreciation**
At 1 January 2021
Charge for the year
At 31 December 2021
**Net book value**
At 31 December 2021
At 31 December 2020
**10. INVESTMENTS**
**Market Value**
At 1 January
Net gains
At 31 December
Historic cost at the year end
Investments comprise:
Investment in subsidiary undertaking
CCLA COIF Charities Ethical Investment Fund
CCLA COIF Charities Investment Fund|**Long**
**leasehold**
**property**
**£**
**2,564,585**
**-**
**-**
**2,564,585**
**569,550**
**47,137**
**616,687**
**1,947,898**
**£ **
_1,995,035_
_£ _
**Group**
**2021**
**£**
**1,222,750**
**212,111**
**1,434,861**
**£ **
**739,332**
**£ **
**Group**
**2021**
**£**
**1,206,973**
**227,888**
**-**
**1,434,861**
**£ **|**£**
**26,955**
**-**
**-**
**26,955**
**24,401**
**1,272**
**25,673**
**1,282**
**£ **
_2,554_
_£ _
_Group_
_2020_
_£_
_1,115,988_
_106,762_
_1,222,750_
_£ _
_739,332_
_£ _
_Group_
_2020_
_£_
_1,027,654_
_195,096_
_-_
_1,222,750_
_£ _
**Office**
**equipment &**
**furniture**|**£**
**62,065**
**4,342**
**-**
**66,407**
**34,616**
**18,012**
**52,628**
**13,779**
**£ **
_27,449_
_£ _
**Charity**
**2021**
**£**
**1,222,850**
**212,111**
**1,434,961**
**£ **
**739,432**
**£ **
**Charity**
**2021**
**£**
**1,206,973**
**227,888**
**100**
**1,434,961**
**£ **
**Computer**
**equipment &**
**software**|**Total**
**£**
**2,653,605**
**4,342**
**-**|
|---|---|---|---|---|
|||||**2,657,947**|
|||||**628,567**
**66,421**|
|||||**694,988**|
|||||**1,962,959**
**£ **|
|||||_2,025,038_
_£ _|
|||||_Charity_
_2020_
_£_
_1,116,088_
_106,762_|
|||||_1,222,850_
_£ _|
||||||
|||||_739,432_
_£ _|
|||||_Charity_
_2020_
_£_
_1,027,654_
_195,096_
_100_|
|||||_1,222,850_
_£ _|
30
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **11. SUBSIDIARY UNDERTAKING**
The charity owns the whole of the issued ordinary share capital of Appian Trading Limited, a company registered in England. The subsidiary is used for non-primary purpose trading activities. All activities have been consolidated on a line by line basis in the statement of financial activities. Available profits are gift aided to the charity. A summary of the results of the subsidiary is shown below:
|Turnover
Cost of sales
Surplus for the period
Changes in equity:
Total equity brought forward
Total comprehensive income for the year
Gift aid distribution to parent charity
The aggregate of the assets, liabilities and funds was:
Debtors
Cash at bank and in hand
Creditors
**Capital and reserves at the year end**
**(including £100 share capital)**|**2021**
**£**
**223,353**
**(181,774)**
**41,579**
**£ **
**2021**
**£**
**56,853**
**41,579**
**(50,385)**
**48,047**
**£ **
**2021**
**£**
**8,039**
**245,776**
**(205,668)**
**48,147**
**£ **|_2020_
_£_
_208,144_
_(157,759)_|
|---|---|---|
|||_50,385_
_£ _|
|||_2020_
_£_
_168,289_
_50,385_
_(161,821)_|
|||_56,853_
_£ _|
|||_2020_
_£_
_27,400_
_515,110_
_(485,557)_|
|||_56,953_
_£ _|
The subsidiary results for the year include the following transactions with the parent charity:
Recharge of staff costs from the parent charity to the subsidiary undertaking
**£ 173,497** _£ 149,919_
## **12. PARENT CHARITY**
The parent charity's gross income and the results for the year are disclosed as follows:
|Total income
Net movement in funds|**2021**
**£**
**2,087,682**
**£ **
**(19,456)**
**£**|_2020_
_£_
_2,363,965_
_£ _|
|---|---|---|
|||_339,778_
_£ _|
31
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **13. DEBTORS**
|Trade debtors
Prepayments
Grant debtors
Other debtors
Taxation receivable (VAT)
Due from subsidiary inc Gift Aid
Branch debtors|**Group**
**2021**
**£**
**11,498**
**133,115**
**69,018**
**5,475**
**8,853**
**-**
**346**
**228,305**
**£ **|_Group_
_2020_
_£_
_42,280_
_101,803_
_248,000_
_11,897_
_21,507_
_-_
_10,945_
_436,432_
_£ _|**Charity**
_Charity_
**2021**
_2020_
**£**
_£_
**5,094**
_24,880_
**132,163**
_91,803_
**69,018**
_248,000_
**4,792**
_11,897_
**8,853**
_21,507_
**181,575**
_465,516_
**346**
_10,945_
**401,841**
**£ **
_874,548_
_£ _|
|---|---|---|---|
## **14. CREDITORS:**
## **AMOUNTS FALLING DUE WITHIN ONE YEAR**
|Trade creditors
Branch creditors
Taxes and social security
Pension costs creditor
Other creditors
Deferred income
Accruals
**Deferred income**
Balance at 1 January
Amount released from previous years
Amount deferred in the year:
Member subscriptions
Secretariat fees
Partnership income
Other income (including events)
Balance at 31 December|**Group**
**2021**
**£**
**67,442**
**500**
**34,055**
**26,355**
**22,885**
**151,852**
**31,076**
**334,165**
**£ **
**Group**
**2021**
**£**
**162,909**
**(162,909)**
**92,026**
**23,521**
**24,093**
**12,212**
**151,852**
**£ **|_Group_
_2020_
_£_
_96,407_
_14,140_
_32,525_
_7,937_
_17,999_
_162,909_
_18,047_
_349,964_
_£ _
_Group_
_2020_
_£_
_115,166_
_(115,166)_
_124,449_
_23,060_
_-_
_15,400_
_162,909_
_£ _|**Charity**
**2021**
**£**
**67,442**
**500**
**34,055**
**26,355**
**22,885**
**127,759**
**31,076**
**310,072**
**£ **
**Charity**
**2021**
**£**
**147,509**
**(147,509)**
**92,026**
**23,521**
**-**
**12,212**
**127,759**
**£ **|_Charity_
_2020_
_£_
_91,766_
_14,140_
_32,525_
_7,937_
_17,999_
_147,509_
_18,047_|
|---|---|---|---|---|
|||||_329,923_
_£ _|
|||||_Charity_
_2020_
_£_
110,666
(110,666)
_124,449_
_23,060_
_-_
_-_|
|||||_147,509_
_£ _|
32
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **15. STATEMENT OF FUNDS - CURRENT YEAR**
|**Restricted funds:**
1.
CIHT Foundation Fund
2.
Hong Kong Branch Fund
3.
Motorway Archive Trust
4.
YP Transport Visions Group
5.
DfT Visibility
6.
DfT Manual for Streets 3
**Total restricted funds**|**Brought**
**forward**
**£**
**58,370**
**41,932**
**696**
**4,500**
**-**
**223,298**
**328,796**|**Income**
**£**
**-**
**444**
**-**
**19,898**
**95,000**
**-**
**115,342**|**£**
**(900)**
**(4,426)**
**-**
**(14,925)**
**(67,611)**
**(137,309)**
**(225,171)**
**Expenditure**|**Transfers**
**and gains**
**Carried**
**forward**
**£**
**£**
**-**
**57,470**
**-**
**37,950**
**-**
**696**
**-**
**9,473**
**-**
**27,389**
**-**
**85,989**
**-**
**218,967**|
|---|---|---|---|---|
1. The CIHT Foundation Fund has been set up as a separate restricted fund to receive charitable donations from collections and other appeals to distribute to activities and projects that advance the art and science of highways and transportation.
2. The Hong Kong branch funds are controlled locally by the CIHT branch in that territory and are regarded as restricted to use in Hong Kong.
3. The Motorway Archive Trust fund is used to maintain its archives related to the development of UK wide motorways.
4. A grant from Rees Jefferies to support young professionals in the transport sector address approaches to exploring the future challenges and opportunities facing the sector and its professionals on a cross-sector and cross-institution basis.
5. Award of grant funding by Department for Transport to enable CIHT to progress the Visibility at Junctions research project.
6. Award of grant funding by Department for Transport to enable CIHT to progress the development of a revised Manual for Streets.
|**Designated funds:**
1.
IT Development
2.
Refurbishment
3.
Research (Policy & Technical)
4.
Research (CIHT Related)
5.
Diversification of Income
6.
Climate change
7.
Diversity & Inclusion
8.
HR Development
**Total revenue funds**
**Capital funds**
9.
Database and website
10. Digital Learning Platform
**Total designated funds**|**Brought**
**forward**
**£**
**43,450**
**-**
**46,150**
**12,574**
**37,064**
**50,000**
**30,000**
**-**
**219,238**
**394,034**
**-**
**613,272**
**£ **|**Income**
**£**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**-**
**Nil**
**£**|**£**
**(25,586)**
**-**
**-**
**-**
**(35,784)**
**(25,820)**
**(23,268)**
**-**
**(110,458)**
**(147,591)**
**-**
**(258,049)**
**£**
**Expenditure**|**Transfers**
**£**
**16,550**
**15,000**
**(6,150)**
**32,500**
**31,500**
**15,000**
**10,000**
**15,000**
**129,400**
**-**
**130,500**
**259,900**
**£ **|**Carried**
**forward**
**£**
**34,414**
**15,000**
**40,000**
**45,074**
**32,780**
**39,180**
**16,732**
**15,000**|
|---|---|---|---|---|---|
||||||**238,180**
**246,443**
**130,500**|
||||||**615,123**
**£ **|
The Trustees approved the transfers between designated and general funds during the year as detailed above.
33
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **15. STATEMENT OF FUNDS - CURRENT YEAR (CONTINUED)**
## **Purposes of designated funds**
1. **IT Development** . To cover ongoing future development of IT platform and website.
2. **Refurbishment.** To fund the renovation and replacement of facilities and equipment for Space 119 to ensure that we are able to retain and develop lettings income.
3. **Research (Policy & Technical)** . A fund to build capacity to research emerging issues in transportation infrastructure, fund specific projects in the policy and technical areas and to conduct research directly related to the Institution.
4. **Research (CIHT Related)** . A fund to support marketing research that will inform decions related to the positioning of CIHT in UK and in international markets.
5. **Diversification of Income** . A fund to enable the research and development of commercial activities that might be undertaken by the Institution as a means of diversifying sources of revenue e.g. development of sponsorship strategy, new digital learning platform, new products, etc.
6. **Diversity & Inclusion.** To provide funding to support progression of our developmental work in this area.
7. **Climate Change** . Enabling activities that will enable us to address objectives set out in the CIHT Climate change pledge.
8. **HR Development.** Enabling investment in development and appraisal of staff and supporting change management activities **.**
9. **Database and website** . A transfer has been made into the fund to represent the amount spent in the year on the database and website. The year end balance on the fund equates to the book value of intangible assets.
10. **Digital Learning Platform** - A transfer has been made into the fund to represent the amount spent in the year on set up and develoment of CIHT learn. The year end balance on the fund equates to the book value of intangible assets.
## **SUMMARY OF FUNDS IN THE YEAR**
|Total general funds
Designated funds
Total unrestricted funds
Restricted funds
Total funds|**Brought**
**forward**
**1 January**
**2021**
**£**
**3,675,639**
**613,272**
**4,288,911**
**328,796**
**4,617,707**
**£ **|**Income**
**£**
**2,145,308**
**-**
**2,145,308**
**115,342**
**2,260,650**
**£ **|**£**
**(2,017,803)**
**(258,049)**
**(2,275,852)**
**(225,171)**
**(2,501,023)**
**£**
**Expenditure**|**Transfers**
**and gains**
**£**
**(47,789)**
**259,900**
**212,111**
**-**
**212,111**
**£ **|**Carried**
**forward**
**31 December**
**2021**
**£**
**3,755,355**
**615,123**|
|---|---|---|---|---|---|
||||||**4,370,478**
**218,967**|
||||||**4,589,445**
**£ **|
34
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **16. STATEMENT OF FUNDS - PRIOR YEAR**
|_Brought_
_forward_
_£_
**_Restricted funds:_**
_CIHT Foundation Fund_
_56,769_
_Hong Kong Branch Fund_
_46,864_
_Careers project_
_3,998_
_Motorway Archive Trust_
_2,450_
_YP Transports Vision Group_
_4,500_
_DfT Manual for Streets 3_
_-_
**_Total restricted funds_**
_114,581_
_Brought_
_forward_
_£_
**_Designated funds:_**
_IT Development_
_79,623_
_Refurbishment_
_15,971_
_Member training &_
_professional development_
_12,006_
_Research (Policy & Technical)_
_61,150_
_Research (CIHT Related)_
_28,568_
_Diversification of Income_
_-_
Climate change
_-_
_Diversity & Inclusion_
_50,000_
**_Total revenue funds_**
_247,318_
**_Capital funds_**
_Database and website_
_541,797_
**_Total designated funds_**
_789,115_
_£ _
**SUMMARY OF FUNDS IN THE PRIOR YEAR**
_Brought_
_forward_
_1 January_
_2020_
_£_
_Total general funds_
_3,485,669_
_Designated funds_
_789,115_
_Total unrestricted funds_
_4,274,784_
_Restricted funds_
_114,581_
_Total funds_
_4,389,365_
_£ _|_Income_
_£_
_2,251_
_-_
_-_
_-_
_-_
_248,000_
_250,251_
_Income_
_£_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_-_
_Nil_
_£_
_Income_
_£_
_2,160,037_
_-_
_2,160,037_
_250,251_
_2,410,288_
_£ _|_£_
_(650)_
_(4,932)_
_(3,998)_
_(1,754)_
_-_
_(24,702)_
_(36,036)_
_£_
_(128,173)_
_(5,424)_
_-_
_(5,000)_
_-_
_(42,936)_
_-_
_-_
_(181,533)_
_(147,763)_
_(329,296)_
_£_
_Expenditure_
_£_
_(1,923,376)_
_(329,296)_
_(2,252,672)_
_(36,036)_
_(2,288,708)_
_£_
_Expenditure_
_Expenditure_|_Transfers_
_£_
_-_
_-_
_-_
_-_
_-_
_-_
_Nil_
_£_
_Transfers_
_£_
_92,000_
_(10,547)_
_(12,006)_
_(10,000)_
_(15,994)_
_80,000_
_50,000_
_(20,000)_
_153,453_
_-_
_153,453_
_£ _
_Transfers_
_and gains_
_£_
_(46,691)_
_153,453_
_106,762_
_-_
_106,762_
_£ _|_Carried_
_forward_
_£_
_58,370_
_41,932_
_-_
_696_
_4,500_
_223,298_|
|---|---|---|---|---|
|||||_328,796_|
|||||_Carried_
_forward_
_£_
_43,450_
_-_
_-_
_46,150_
_12,574_
_37,064_
_50,000_
_30,000_|
|||||_219,238_
_394,034_|
|||||_613,272_
_£ _|
|||||_Carried_
_forward_
_31 December_
_2020_
_£_
_3,675,639_
_613,272_|
|||||_4,288,911_
_328,796_|
|||||_4,617,707_
_£ _|
35
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **17. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS**
|**CURRENT YEAR**
Tangible fixed assets
Intangible fixed assets
Investments
Net current assets
**PRIOR YEAR**
_Tangible fixed assets_
_Intangible fixed assets_
_Investments_
_Net current assets_|**Designated**
**funds**
**£**
**-**
**376,943**
**-**
**238,180**
**615,123**
**£ **
_Designated_
_funds_
_£_
_-_
_394,034_
_-_
_219,238_
_613,272_
_£ _|**General**
**funds**
**£**
**1,962,959**
**-**
**1,434,861**
**357,535**
**3,755,355**
**£ **
_General_
_funds_
_£_
_2,025,038_
_-_
_1,222,750_
_427,851_
_3,675,639_
_£ _|**Restricted**
**funds**
**£**
**-**
**-**
**-**
**218,967**
**218,967**
**£ **
_Restricted_
_funds_
_£_
_-_
_-_
_-_
_328,796_
_328,796_
_£ _|**Total funds**
**£**
**1,962,959**
**376,943**
**1,434,861**
**814,682**|
|---|---|---|---|---|
|||||**4,589,445**
**£ **|
|||||_Total funds_
_£_
_2,025,038_
_394,034_
_1,222,750_
_975,885_|
|||||_4,617,707_
_£ _|
## **18. POST BALANCE SHEET EVENTS**
Following the Balance Sheet date, the invasion of Ukraine was a dominant factor in a material reduction in the value of the Charity's investment portfolio. As at April 2022, the value of the portfolio held within CCLA (see Note 10) had reduced by approximately £67,000 compared to 31 December 2021.
36
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **19. STATEMENT OF FINANCIAL ACTIVITIES - PRIOR YEAR**
|**_Income_**
_Donations and legacies_
_Member activities_
_Project income_
_Education income_
_Publication sales_
_National Conference_
_Other trading activities:_
_Appian Trading_
_Investment income receivable_
**_Total income_**
**_Expenditure_**
_Expenditure on Charitable activities:_
_Membership_
_Education_
_Publications_
_Motorway Archive Trust_
**_Total expenditure_**
Net gains on investments
**_Reconciliation of funds_**
_Total funds brought forward_
**_Total funds carried forward_**
**_Net income /_**
**_Net movement in funds_**
_Income from Charitable activities:_
_Expenditure on raising funds:_
_Trading & collecting subscriptions_
**_Net income / (expenditure) before_**
**_gains on investments_**|_Unrestricted_
_Funds_
_2020_
_£_
_20,880_
_1,754,147_
_198,415_
_96,511_
_50,076_
_4,645_
_2,103,794_
_33,599_
_1,764_
_2,160,037_
_1,267,571_
_234,995_
_439,328_
_600_
_1,942,494_
_310,178_
_2,252,672_
_(92,635)_
_106,762_
_14,127_
_4,274,784_
_4,288,911_
_£ _|_Restricted_
_Total_
_Funds_
_Funds_
_2020_
_2020_
_£_
_£_
_2,251_
_23,131_
_-_
_1,754,147_
_248,000_
_446,415_
_-_
_96,511_
_-_
_50,076_
_-_
_4,645_
_248,000_
_2,351,794_
_-_
_33,599_
_-_
_1,764_
_250,251_
_2,410,288_
_30,284_
_1,297,855_
_3,998_
_238,993_
_-_
_439,328_
_1,754_
_2,354_
_36,036_
_1,978,530_
_-_
_310,178_
_36,036_
_2,288,708_
_214,215_
_121,580_
_-_
_106,762_
_214,215_
_228,342_
_114,581_
_4,389,365_
_328,796_
_£ _
_4,617,707_
_£ _|
|---|---|---|
37
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **20. RELATED PARTY DISCLOSURES**
The members of the Trustee Board received no remuneration in relation to fulfilling their role as Trustees. Expenses for travel and subsistence reimbursed to 4 Trustees amounted to £979.
**Geoff Allister** is Chair of the CIHT Audit Committee and an Executive Advisor to Amey Consulting which is a member of CIHT’s Partnership Network.
**Bert (Herbert) Bailie** is a CIHT Council member and a member of the Audit Committee. He is also Chair and Director of the Inclusive Mobility and Transport Advisory Committee.
**Susan Giahi Broadbent** is a CIHT Council Member and is a Senior Technical Director at Jacobs which is a strategic partner of CIHT who have sponsored CIHT events and activities.
**Josh Bush** is a CIHT Council Member and a Tier 1 Sponsor, Major Projects of National Highways.
**Andy Campbell** is a CIHT Council Member and a Technical Director of WSP which is a member of CIHT’s Partnerships Network who have sponsored CIHT events and activities.
**Kristopher Campbell** is a CIHT Trustee and SPTO Civil Engineer of Transport for Infrastructure in Northern Ireland which is a member of CIHT’s Partnerships Network.
**Kate Carpenter** is a CIHT Council Member and Divisional Director at Jacobs which is a strategic partner of CIHT who have sponsored CIHT events and activities.
**Ginny Clarke** is a CIHT Trustee, and she is also a Trustee of the Rees Jeffreys Road Fund who have supported CIHT projects on Equality, Diversity and Inclusion and careers. She is also a committee member of the Audit Committee of Royal Academy of Engineers.
**Tracey Collins** is a Council Member and Talent, Development and Inclusion Manager of Kier which is a member of CIHT’s Partnerships Network.
**Claudia Currie** is a CIHT Council Member and an Associate Transport Planner at Mott MacDonald which is a strategic partner of CIHT who have sponsored CIHT events and activities.
**Anthony Ferguson** is a Council Member and Deputy Director of Traffic Technology at the Department for Transport.
**Jo Field** is a CIHT Council Member. She is also a Founder & Managing Director of JFG Communications Ltd whose current clients include Costain, Skanska and WSP which are strategic partners of CIHT who sponsor CIHT from time to time.
**Gill Foster** is a CIHT Council Member and member of the Audit Committee and is a Director at WSP which is a strategic partner of CIHT who have sponsored CIHT events and activities.
**Nick Hopcraft** is a CIHT Council Member and Sponsor, HS2 Delivery team, at Highways England who support / sponsor CIHT from time to time.
**Julie Hunt** is a Council Member and Associate Director of Highways of Jacobs UK Ltd which is a member of CIHT’s Partnerships Network.
**Darran Kitchener** is a CIHT Trustee and an Associate Director of Milestone Transport Planning who have sponsored CIHT events.
**James Leeming** is a CIHT Council Member and a Senior Projects Manager of National Highways.
38
**NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2021**
## **20. RELATED PARTY DISCLOSURES (Continued)**
**Richard Llewellyn** is a CIHT Trustee and a Researcher of Edinburgh Napier University which is a member of CIHT’s Partnerships Network.
**Kate Lodge** is a CIHT Trustee and Transport Planner of Arup which is a member of CIHT’s Partnerships Network.
**Rache Lord** is a Council Member and Graduate Transport Planner of Capita which is a member of CIHT’s Partnerships Network.
**Matthew Lugg** is a CIHT Council Member and Head of Profession – Local Government at WSP which is a strategic partner of CIHT who have sponsored CIHT events and activities.
**Peter Molyneux** is a CIHT Trustee and Major Roads Director of Transport for the North which is a member of CIHT’s Partnerships Network.
**David Ogden** is a CIHT Council Member and Operations Director of Colas which is a member of CIHT’s Partnerships Network.
**Olivia Reed** is a CIHT Council Member and an Assistant Engineer of Project Centre which is a member of CIHT’s Partnerships Network.
**Stelios Rodoulis** is a CIHT Council Member and a Principal Transport Consultant employed by Jacobs which is a strategic partner of CIHT.
**Sue Sharland** is a CIHT Trustee, Director of Appian Trading Limited and Treasurer and a Trustee of the Road Safety Foundation, a Trustee of iRAP and a Director of their subsidiary RASL.
**Deborah Sims** is CIHT President and Trustee and a Senior Lecturer for the University of Greenwich which is a member of CIHT’s Partnerships Network.
**Dana Skelley** is a CIHT Trustee and Council Member. She is also a Shareholder of Skanska Infrastructure UK which is a knowledge partner of CIHT who sponsor CIHT from time to time.
**Mitesh Solanki** is a CIHT Trustee and Chair of Appian Trading Limited and Managing Director for Ringway Infrastructure Services. Ringway is a strategic partner of CIHT who have sponsored CIHT events and activities.
**Dennis Symons** is a CIHT Council Member and a Principal Engineer of National Highways.
**Martin Tugwell** is a CIHT Trustee and CEO of Transport for the North which is a member of CIHT’s Partnerships Network.
**Richard Ward-Jones** is a CIHT Council Member and a Director of Appian Trading Limited. He is also a Client Director at Atkins which is a strategic partner of CIHT who have sponsored CIHT events and activities.
**Andrew Warrington** is a CIHT Council Member and a Senior Technical Director at Arcadis which is a strategic partner of CIHT who have sponsored CIHT events.
39