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2022-12-31-accounts

The Chartered Institution of Highways & Transportation Report and financial statements For the year ended 31 December 2022

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 2022 CONTENTS

Introduction and CEO Update 1
Trustees’ Report the year ended 31 Dec 2022 3
Reference and administrative details 16
Independent Auditor's report 18
Consolidated statement of financial activities 22
Charity and group balance sheets 23
Group Statement of Cash Flows 24
Notes to the financial statements 25

REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 CHAIR’S INTRODUCTION AND CEO UPDATE

Introduction

We have continued to experience significant external factors including the outbreak of war in Ukraine, gradual recovery from the impacts of Covid-19 and ongoing economic uncertainty that has impacted on us all.

During my second year as Chair of the Board of Trustees, I have been well placed to see how CIHT has positively reacted to these challenges and been able to continue on a successful route. Trustees have worked closely with the Executive staff over this period to ensure good governance and maintain financial sustainability throughout this period.

We have continued to deliver on our three strategic aims as outlined in the CIHT Strategy 2022+. The Institution has adapted well to new ways of working and has prioritised its use of resources.

The commentary provided in this report highlights some of our key achievements during 2022. 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 our volunteers and their employers for allowing their staff to undertake this work in the interests of the profession.

Looking forward to 2023, I know we will continue to focus on our key themes of Climate Action, Professionalism and Equality, Diversity and Inclusion.

With the support of our members, in collaboration with our partners, I believe we can continue to deliver public benefit and continue to show the relevance and importance of highways, transportation infrastructure and services.

Gordon Baker Chair – Board of Trustees

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REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 CHAIR’S INTRODUCTION AND CEO UPDATE

CEO Update

2022 was a challenging year due to the ongoing impacts of the Covid restrictions at the beginning of the year, and geopolitical challenges – particularly the war in Ukraine and the sharp rise in inflation.

As Covid restrictions eased staff returned to a hybrid office working with a minimum of two days in the office per week, with all staff in on Wednesdays.

Despite the uncertainties, we had a good year and have, for example, successfully delivered over 100 events (a mix of online and in-person) with over 10,000 people attending, launched our new Transportation Professional magazine (which has been well received), provided a new digital learning platform through CIHT Learn and quickly adapted the business model to reflect sales opportunities, launched Strategy 2022+ and held a very successful in person CIHT Annual Luncheon.

More information on some of our successes is detailed in the following report but we were especially pleased to be successful in our 5-year Engineering Council review – a positive outcome for all those involved.

Finally, it was also really encouraging to see the positive response from the 2022 member survey with 77% of members very satisfied or satisfied with their membership compared with 74% in 2020.

2023 will see us embark on some ambitious and exciting projects, through working with the Department for Transport on the Bus Center of Excellence to releasing the results of our first ever Employment Trends Research project.

We have continued to develop as an organisation and are always striving to improve. We face the future with optimism and confidence in the knowledge that the commitment and support from our Board of Trustees, Council 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 2022 TRUSTEES’ REPORT

Trustees’ Report for year ended 31[st] December 2022

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. Our central office is located at Britannia Walk near Old Street in London.

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 2022.

Objectives and Activities

The CIHT 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:

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:

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 2022 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.

The achievements and performance set out in this report 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. 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.

In formulating our corporate strategy, we have adopted a commitment to advance on three key cross cutting themes that underpin our ambition to deliver public benefit.

Our achievements and performance in addressing these three themes is set out in the next section of the report.

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REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 TRUSTEES’ REPORT

Achievements, and performance highlights for 2022

Key achievements and performance are reported below referencing the three strategic priorities and the three cross cutting themes as set out in the corporate strategy which was signed off in November 2021.

Climate Action

We will: Key Achievements / Initiatives in 2022
Become a net
Zero carbon
organisation by
2027		 •
CIHT have subscribed to the CAFA support service that has been set up to
specifically help membership bodies deliver on net zero commitments. Our aim is
to be a net Zero organisation by 2027.
•
All renewals communications sent by email where possible unless no email held.
•
Move to electronic membership certificates - printed certificates only issued on
request.
Support our
members by
providing training
on carbon
literacy		 •
The Transport Decarbonisation Pathway has been produced by an Expert Focus
Group that provides members with a clear Continuing Professional Development
(CPD) Framework including advice on key topics and learning outcomes. There is
an expectation that members should dedicate a proportion of their annual CPD
effort to growing their decarbonisation-related skills and knowledge.
•
A one-hour carbon literacy course is available on CIHT Learn (our online digital
training hub) for take-up by members.
•
Providing support for the climate agenda through events such as the CIHT East
Midlands Conference: The Road to Zero Carbon that focused on developing a
more sustainable and low carbon future, with valuable insight being provided by a
range of high-quality speakers.
Promote
initiatives across
our sector that
decarbonise our
transport system
and move
towards more
sustainable forms
of transportation		 •
Carbon Calculation and Accounting Standards for Local Highways Authorities:
CIHT is a partner in a major, multi-stakeholder project led by ADEPT and the
Future Highways Research Group to develop and implement standards that will
tackle the sector’s highly fragmented and inconsistent approaches to carbon
measurement, carbon accounting, and carbon reduction. Work to develop the
standards and tool is well advanced and is under live trial with several large
highway authorities. The aim is to publish the standards by the second half of
2023. CIHT are leading a sub-group seeking to ascertain the support that
organisations will need to roll out the standard.
•
Partnered with the Office for Zero Emission Vehicles (OZEV) to stage an expert
workshop to support the creation of guidance on site selection of Electric Vehicle
charging infrastructure.
•
Contributor to the Construction Industry Council’s (CIC) work on carbon reduction.

Promoting professionalism

Support our
members to
uphold
professional
standards
through
knowledge
sharing,
networking,
learning, and
training		 •
Provision of a complementary course on CIHT Learn for members addressing
Professional Ethics.
•
An updated Code of Professional Conduct was approved by the Membership and
Member Services Strategy Board (MMSSB) in September 2022.
•
A new CPD policy guidance was published that sets out the expectation for CIHT
Member’s professional development.
•
CIHT Learn has been developed with tools to support Members to plan, undertake
and record their CPD.
•
The Institution has continued to run a comprehensive programme of webinars,
events and social activities.

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REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 TRUSTEES’ REPORT

RT
• Provided regular updates to CIHT’s website that contain good practice case studies,
thought leadership articles, research and the latest updates.
• Updated guidance provided for Transport Planning Professional mentors in October
2022.

Equality, Diversity & Inclusion

Introduce a
CIHT Equality,
Diversity and
Inclusion (EDI)
Strategy in 2021
and put a 5 year
action plan into
progress		 •
EDI action plan developed and launched.
•
EDI manager recruited to support the delivery of actions set out in the plan.
•
EDI Panel has commenced a new governance cycle, including several new
members each bringing intersectional diversity.
•
Recruitment of Regional EDI Officers has commenced.
•
CIHT Learn includes EDI related content including Understanding Disability,
Allyship, Tackling Age Bias – currently working on several additional modules.
•
Held webinars that have had a focus on EDI including ‘Do Transport Professionals
GET-IT? Gender Equality Toolkit in Transport (CIHT Scotland)’.
Push for more
equality,
diversity and
inclusion across
the sector		 •
EDI Officer role description created for regional / national committees.
•
EDI element included in 2023 Annual Business Plans.
•
The regions and nations have been working on speaker diversity.
•
78 organisations have signed up to CIHT’s Diversity & Inclusion Charter.
•
Draft EDI Charter updates have been completed and consultation with Partnerships
Network members undertaken. The updated charter will directly link with the
updated EDI Toolkit – thereby supporting prospective signatories to progress EDI at
pace.
•
Engineering and Transport Planning Professional Reviewer training has included a
module on understanding unconscious bias.
•
CIHT are working to recruit more STEM ambassadors to inspire people from a range
of backgrounds to join the sector. We have run a podcast series and webinars on
STEM ambassadors. Activities undertaken by our STEM ambassadors have
reached over 44,000 young people.
•
Regular use of speaking platforms at events, articles and news commentary to raise
issues and promote initiatives.
•
Embedding EDI as a key organisational value.
•
Two EDI related ‘themes’ incorporated into CIHT’s Content Strategy.
•
EDI related activity (webinar and communication) took place for INWED 2022.
•
EDI related activities held for National Inclusion Week (Sept/Oct) and Black History
Month (October).

1) Promote learning

CIHT is the only body to offer the full range of professional transportation qualifications including Chartered Engineer, Incorporated Engineer, Engineering Technician, the 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.

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REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 TRUSTEES’ REPORT

2021 2022
Registered Members – Eng Council 1,410 1,461 +51
Registered Members – ©TPP 264 290 +26

The following table highlights how we have addressed key commitments set out in our corporate strategy.

We will: Key Achievements / Initiatives in 2022
Encourage and
support
members to
achieve
recognised
professional
qualifications		 •
91 Candidates applied for Professional Review for CEng, IEng or EngTech
through CIHT in 2022
•
A free module on ‘Preparing for Professional Review’ launched on CIHT Learn and
we held several professional qualification webinars.
•
CIHT’s Engineering Council Licence was retained at its 5-year review.
•
An experiential route to CEng pilot was approved for launch in 2023.
•
28 Candidates applied for Transport Planning Professional in 2022.
•
Initial Assessment introduced for Transport Planning Professional so members
interested in this qualification can check their route and we can monitor the
pipeline of interested candidates.
Demonstrate
and promote the
value of
qualifications to
professionals
and employers		 •
New education and professional development strategy launched in April.
•
Profiles of successful candidates from different routes and backgrounds have been
included in Transportation Professional.
•
Promotion of qualifications and professionalism through regional webinars
including Careers after a PhD: Networking event (CIHT East Mids); Professional
Qualifications Event – Meet the Reviewer and Reviewees (CIHT Northern Ireland);
Engineering Professional Qualifications with CIHT (EngTech, IEng, CEng) and
Transport Planning Professional – How to get qualified (CIHT Yorkshire & the
Humber).
Embed CPD as
an essential
requirement for
our members at
all stages of
their career		 •
CPD survey and focus groups conducted with members on their experience of
CPD. Member feedback has been used to draft the new CPD policy guidance note
to be launched in 2023.
•
New CPD recording functionality on CIHT Learn has been designed to support
members to plan, undertake and record CPD on CIHT Learn. Over 500 CIHT
members are now recording their CPD on CIHT Learn.
•
A new CPD Guide was published in December 2022 in response to member
feedback. The new guide sets out CPD expectations for CIHT Members including
advice on what can count as a CPD activity and the new expectation that
members focus some of their CPD on decarbonisation.
•
Regular promotion to members in newsletters and publications
Provide
mentoring and
professional
development
opportunities to
our members		 •
Published mentoring guidance for Engineering and TPP qualifications.
•
Help webinars for mentors for the Engineering and Transport Planning
Professional qualifications.
•
50 CIHT members have completed the Introduction to Mentoring course on CIHT
Learn.
Develop and
deliver a digital
learning
platform for our
members		 •
Launched CIHT Learn in April 2022.
•
10% of current CIHT members have to date registered on one or more courses.
•
Regular promotion of content and opportunities on CIHT Learn.

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REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 TRUSTEES’ REPORT

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.

Shape and contribute to
transport policy across the
UK and internationally		 •
Represented CIHT in government consultations across the UK through a
supporting framework of policy forums in Scotland, Wales and Northern
Ireland.
•
Engagement and support through the Highways Sector Council.
•
Developed policy briefings on social value, mobility pricing and behavioral
change.
•
Contributed to conferences on a variety of topics including the importance
of the integration of planning and transport.
•
Provide media commentary, appeared at 3rdparty events, presented views
and opinion at CIHT events and through Transportation Professional (print
and digital).
Maintain and develop
relationships with national,
devolved and regional
governments, industry and
the public		 •
Key stakeholder engagements have included interacting with the
Department for Transport (DfT), National Highways, ADEPT, members of
our Partnership Network, the Welsh and Scottish governments.
•
Secured ongoing secretariat support to the UK Roads Leadership Group
and World Road Association.
•
Release regular media briefings, news analysis and opinion articles.
Encourage research and
debate on a long-term vison
for sustainable and integrated
transport infrastructure		 •
Conducted surveys that have fed into policy projects (on integrating
planning and transport and on green/blue infrastructure).
•
Held a workshop with OZEV on site selection for EV charging
infrastructure.
•
Regular development meetings with DfT Planners alongside other
professional institutions.
Identify and share good
practice through exchange of
knowledge and information		 •
Between CIHT, Regions, Nations and SORSA we have held over 100
events attended by 10,000 people.
•
Delivery of new look Transportation Professional and associated digital
outputs via new publishing partner (Think Publishing).
•
Establishment of a more coordinated approach to content production
through a 12-month content strategy.
•
Ongoing engagement with all parts of UK public and private sector through
CIHT Partnership Network activities.
•
The CIHT Awards have highlighted excellent case projects, schemes and
initiatives from over 200 submitted entries. Shortlisted entries added to
‘The Work’ section of CIHT website to provide new case studies and
project overviews.
Provide thought leadership
on key highways and
transportation issues		 •
Work has continued on the formulation of the new Manual for Streets and
the development of a Bus Centre of Excellence in England with DfT.
•
Highlighted key issues of climate action, policy developments across UK,
and member’s work via regular media briefings and news commentary
including a BBC Radio 4 interview ‘Positive Thinking’.
•
Regular speaker at 3rdparty events.
•
Release of regular views and thought leadership.
•
Contributed to National Inclusion Week with a podcast, the podcast
‘Transport Talks (28k downloads) and blog material all help support
thought leadership for the sector focusing on key issues.

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REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 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.

attractive membership services.
2021 2022
Paying members 10,532 10,442
No of apprentices in membership 411 459
% of all new members identify as female 26% 26%
% of UK new members that identify as BAME 22% 23%
Help shape a long-term
vision for the profession
that will equip it to attract,
retain and develop diverse
talent		 •
Launched our updated Membership recruitment and retention strategy.
•
Started work on a new CIHT Employment Trends survey and research report.
•
Membership survey completed.
•
Promoted success of Young Professional and Apprentice of Year awards at
Young Professional summit.
•
Use of updated diverse member profiles to promote the value of membership.
•
Working with partners including Tomorrow’s Engineers, Engineering UK and
STEM Ambassadors to promote the positive image of the profession.
Provide equitable services
and support to members
wherever they are located		 •
Formulation of new Regional Working Arrangements to promote consistent
levels of support across the UK irrespective of member location.
•
Review of international strategy for support for all members across the globe.
•
Increased support for International Groups.
Build on our provision of
international, national, and
regional high quality,
accessible events,
seminars and networking
opportunities		 •
Delivery of mixed programme of events embracing face to face, hybrid and
online webinars.
•
Provision of CIHT Connect to offer a supplementary channel for online
networking across the membership.
•
New modern Transportation Professional published for members.
•
100+ events held year to date.
Launch a comprehensive
membership strategy to
achieve sustainable
growth across all grades,
diversify our membership
profile and meet the future
needs of the sector		 •
Launch of new Membership recruitment and retention strategy in March 2022.
•
Embarked on numerous specific membership campaigns including a focus on
Masters students and the member get member relaunch.
•
Ongoing recruitment activities include lapsed campaign to encourage members
to rejoin.
•
Onboarding work started – focus on year 1 members to demonstrate the value
•
Successful transfer/ upgrade campaign – record numbers of transfers including
71 transfers to Fellowship grade and 24 from non-paying to paying grades.
•
All non-member touchpoints reviewed – weekly follow up by membership team.
•
Co-opted Young Professional and Apprentice members to Membership and
Member Services Strategy Board (MMSSB)
•
Promotion of membership and recruitment campaign at Traffex, Highways UK
and other 3rdparty events.
Have a membership and
governance structure and
composition that is more
representative of the
society we serve and
suitable for a modern
professional body		 •
New guidelines for set up and operation of international groups prepared by
Audit Committee (Aug 2022).
•
Formulation of new regional working agreements.
•
Regular review and update to member code of professional conduct.

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REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 TRUSTEES’ REPORT

Future plans

The key foundations that will support the delivery of the three strategic aims and three underpinning themes set out in CIHT Strategy 2022+ are set out below.

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 aim to become a net zero organisation by 2027.

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REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 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 as follows;

The Audit Committee met 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.

Good Governance Code

Since the Charity Governance Code was launched on 13 July 2017, CIHT has utilised the Code as a framework to support the development of better practice. Trustees acknowledge that the charity is best placed to fulfill 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.

In conducting operations, CIHT seeks 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 remuneration and pay policy for senior staff

The key management personnel of the charity comprises 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

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REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 TRUSTEES’ REPORT

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 comprises 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 holdings

As set out in the CIHT Investment policy, the objective of our investment holdings is to maximise returns within reasonable and prudent levels of risk.

In 2022, a decision was taken to consolidate all our CCLA investment holdings into the CCLA Ethical Investment Fund. This is a managed fund with specific restrictions (e.g. no investments in any organisation that derives more than a specified % of its turnover from fossil fuels, etc.)

Unfortunately, global uncertainties during 2022 have adversely impacted financial markets. Over the year ended 31 Dec 2022, we have seen a 9.4% (circa £135K) reduction in the unrealised saleable value of CIHT investments. This compares to a 10.5% annual increase in the CPI over the same period. In the first three months of 2023, we have seen some recovery in performance (i.e. up £31k).

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REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 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 £1,117k based on the 2023 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 2022, free reserves (which includes designated funds and is defined as Current Assets plus Investments less Current Liabilities and less Restricted Funds) stood at £2,049,271 (2021: £2,030,576). Excluding designated funds (set aside for specific purposes and outlined in Note 15 of the financial statements), net free reserves totaled £1,685,762 (2021: £1,792,396).

Going Concern

The Board of Trustees has carefully reviewed the financial position of the CIHT group, including financial projections for 2023 and 2024, 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. 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

Fundraising is not a material source of raising income for the Institution and we do not engage in the 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 2022 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 Senior Management Team who identify and evaluate risks that relate to their areas and manage the mitigation plans accordingly.

CIHT maintains a Strategic Risk and Assurance Register which seeks to group together key risks over five areas. On an annual basis, the Audit Committee conducts a comprehensive review of the register to ensure any new emerging risks are properly reflected and that appropriate mitigations are in place or key actions are set out to address areas of perceived risk exposure. The results of the review are presented to the Board of Trustees. The Audit Committee continue to oversee delivery of key actions and take account of the trending status in each. A summary dashboard with commentary is fed back to each Trustee meeting for their consideration.

Strategic
Risk Areas		 Net
Assurance
score		 What this risk area covers Key mitigations
Strategy and
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		 Low
Risk		 To
address
external
environment (for example
the impacts from Covid 19,
inflation, cost of living crisis
and
global
economic
uncertainty).		 Financial, Membership and income diversification
strategies.
Financial Regulations and policies.
Financial management practice and budget
management.
Reserves.
Investment Policy.
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 and Council.
Comprehensive suite of policies and procedures.
Risk management process.
External audit review.
Business continuity planning.
People (staff
and
volunteers)		 Medium
Risk		 Acting as a responsible
employer and to manage our
use of resources effectively.		 Human Resource (HR) Framework supported by
external HR provider.
Staff and Remuneration Panel.
Annual staff survey.
Regional Panel and committees.
Regional Action Plans.
Monitoring
engagement
and
supporting
volunteers.
EDI Strategy.

14

REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 TRUSTEES’ REPORT

Statutory and
regulatory
compliance		 Low Risk Encompassing broad range
of statutory and regulatory
requirements.		 Policies
and
procedures
(Data
protection,
Safeguarding, etc).
Annual Health and Safety review.
Use of professional advisors as appropriate.
Compliance checklist is overseen by Audit
Committee.
Reporting to the Charities commission and other
regulators/ government bodies.

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:

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: 18 May 2023

15

REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 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 2022

The members of the Board of Trustees, who were Trustees of the charity until 22 June 2022, 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 P Molyneux D Sprunt M Solanki S Hindshaw K Lodge D Kitchener

The members of the Board of Trustees, who were Trustees of the charity from 22 June 2022, are shown below.

G Baker (Chair of the Board) N Johnstone (President) K McShane (Vice President) S Hindshaw (Hon Treasurer) D Sims D Skelley R Llewellyn K Evans P Molyneux L Nightingale M Solanki O Reed 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

16

REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2022 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

17

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 2022 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:

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.

18

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:

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.

19

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:

20

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE CHARTERED INSTITUTION OF HIGHWAYS & TRANSPORTATION (CONTINUED)

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

1 June 2023

Sayer Vincent LLP is eligible to act as auditor in terms of section 1212 of the Companies Act 2006

21

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 2022

Unrestricted
Funds
2022
Note
£
Income
Donations and legacies
-
Member activities
2
2,060,873
Project income
3
200,143
Education income
74,152
Publication sales
38,104
National Conference
-
2,373,272
Other trading activities:
Appian Trading
458,865
Investment income receivable
4,829
Other income
-
Total income
2,836,966
Expenditure
Expenditure on Charitable activities:
Membership
1,528,631
Education
354,230
Publications
391,220
Motorway Archive Trust
632
2,274,713
573,125
Total expenditure
4
2,847,838
(10,872)
Net (losses) / gains on investments
10
(135,439)
(146,311)
Net movement in funds
(146,311)
Reconciliation of funds
Total funds brought forward
4,370,478
Total funds carried forward
15
4,224,167
£
Income from Charitable activities:
Net (expenditure) before
(losses) / gains on investments
Expenditure on raising funds:
Trading & collecting subscriptions
Net (expenditure) /
Net movement in funds		 Restricted
Funds
2022
£
4,958
10,343
-
14,202
-
-
24,545
-
-
-
29,503
118,932
-
-
-
118,932
-
118,932
(89,429)
-
(89,429)
(89,429)
218,967
129,538
**£ **		 Total
Total
Funds
Funds
2022
2021
£
£
4,958
-
2,071,216
1,730,523
200,143
278,448
88,354
126,639
38,104
35,648
-
3,137
2,397,817
2,174,395
458,865
54,249
4,829
1,556
-
30,450
2,866,469
2,260,650
1,647,563
1,402,269
354,230
357,081
391,220
402,125
632
613
2,393,645
2,162,088
573,125
338,935
2,966,770
2,501,023
(100,301)
(240,373)
(135,439)
212,111
(235,740)
(28,262)
(235,740)
(28,262)
4,589,445
4,617,707
4,353,705
£
4,589,445
_£ _

All of the above results are derived from continuing activities.

The annexed notes form part of these financial statements 22

THE CHARTERED INSTITUTION OF HIGHWAYS & TRANSPORTATION BALANCE SHEETS As at 31 December 2022

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
2022
£
265,742
1,909,154
1,299,422
3,474,318
248,901
1,129,741
1,378,642
(499,255)
879,387
4,353,705
£
3,594,916
629,251
4,224,167
129,538
4,353,705
**£ **		 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
£		 Charity
2022
£
265,742
1,909,154
1,299,522
3,474,418
697,796
329,659
1,027,455
(377,559)
649,896
4,124,314
£
3,365,525
629,251
3,994,776
129,538
4,124,314
**£ **		 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
£

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 18 May 2023 and signed on their behalf by:-

Gordon Baker Chair of the Board of Trustees

Simon Hindshaw Honorary Treasurer

The annexed notes form part of these financial statements

23

THE CHARTERED INSTITUTION OF HIGHWAYS & TRANSPORTATION GROUP STATEMENT OF CASH FLOWS For the year ended 31 December 2022

Cash flows from operating activities:
Adjustments for:
Depreciation charges
Amortisation charges
Dividends and interest from investments
(Increase) / decrease in debtors
Increase / (decrease) in creditors
Cash flows from investing activities:
Dividends and interest from investments
Purchase of tangible fixed assets
Purchase of intangible assets
Losses / (gains) on investments
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) for the year
(as per the statement of financial activities)
Net cash provided by
operating activities
Net cash provided by / (used in)
investing activities		 £
£
£
£
(235,740)
(28,262)
63,300
66,421
172,580
147,591
(4,829)
(1,556)
(20,596)
208,127
165,090
(15,799)
139,805
376,522
4,829
1,556
(9,495)
(4,342)
(61,379)
(130,500)
135,439
(212,111)
69,394
(345,397)
209,199
31,125
920,542
889,417
1,129,741
£
920,542
£
2021
2022		 £
£
£
£
(235,740)
(28,262)
63,300
66,421
172,580
147,591
(4,829)
(1,556)
(20,596)
208,127
165,090
(15,799)
139,805
376,522
4,829
1,556
(9,495)
(4,342)
(61,379)
(130,500)
135,439
(212,111)
69,394
(345,397)
209,199
31,125
920,542
889,417
1,129,741
£
920,542
£
2021
2022
31,125
889,417
920,542
_£ _

The annexed notes form part of these financial statements

24

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

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.

25

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

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.

26

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

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
2022
£
1,299,422
136,041
312,805		 Group
2021
£
1,434,861
95,190
182,313		 Charity
2022
£
1,299,522
584,936
225,350		 Charity
2021
£
1,434,961
269,678
182,313

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 (2021: £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:

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.

27

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

2. INCOME FROM MEMBER ACTIVITIES

Member subscriptions
Corporate partners
Regions & Nations
Other		 Unrestricted
Funds
2022
£
1,691,411
179,600
174,938
14,924
2,060,873
**£ **		 Restricted
Funds
2022
£
-
-
10,343
-
10,343
**£ **		 Total
Total
Funds
Funds
2022
2021
£
£
1,691,411
1,540,595
179,600
140,008
185,281
37,382
14,924
12,538
2,071,216
£
1,730,523
_£ _

In 2021, £444 relating to Regions & Nations was restricted. All income from member activities in 2021 was unrestricted.

3. PROJECT INCOME

Secretariat fees
Visibility project		 Unrestricted
Funds
2022
£
200,143
-
200,143
**£ **		 Restricted
Funds
2022
£
-
-
Nil
£		 Total
Total
Funds
Funds
2022
2021
£
£
200,143
183,448
-
95,000
200,143
£
278,448
_£ _

In 2021, £95,000 relating to Visibility project was restricted. All other project income in 2021 was unrestricted.

4. EXPENDITURE

CURRENT YEAR

Membership
Education
Publications
Motorway Archive Trust
Fundraising Appian
Trading & collecting
subscriptions
Support costs (see Note 6)		 Staff
costs
£
566,990
182,516
102,850
331
852,687
185,102
445,028
1,482,817
**£ **		 Direct
costs
£
564,375
5,548
194,733
-
764,656
219,503
499,794
1,483,953
**£ **		 Support
costs
£
516,198
166,166
93,637
301
776,302
168,520
(944,822)
Nil
£		 2022
2021
£
£
1,647,563
1,402,269
354,230
357,081
391,220
402,125
632
613
2,393,645
2,162,088
573,125
338,935
-
-
2,966,770
£
2,501,023
_£ _

28

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

4. EXPENDITURE (continued)

PRIOR 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
2021
£
£
450,133
1,402,269
159,850
357,081
92,826
402,125
284
613
703,093
2,162,088
149,928
338,935
(853,021)
-
Nil
£
2,501,023
_£ _

5. NET (EXPENDITURE) FOR THE YEAR

This is stated after charging:

Depreciation
Amortisation
Trustees' expenses
Auditor remuneration (excluding VAT):
Audit - current year		 2022
£
63,300
172,580
5,470
13,250		 2021
£
66,421
147,591
979
12,075

The Trustees received no remuneration in the year. Trustees' expenses represent the costs of travel and subsistence for 7 trustees (2021: 4).

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		 2022
2021
£
£
13,250
12,075
8,357
7,078
27,607
4,517
49,214
23,670
46,949
40,387
28,564
19,040
8,789
9,462
8,783
7,581
128,356
130,527
10,271
7,794
69,020
55,907
63,300
66,421
54,020
52,080
32,528
25,412
499,794
£
438,281
_£ _

29

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

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		 2022
2021
£
£
1,244,061
1,134,126
137,384
124,035
74,604
68,696
26,768
75,004
1,482,817
£
1,401,861
_£ _

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 £408,208 (2021: £441,291).

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
£110,000 - £119,999
The average headcount during the year was as follows:		 2022
No.
-
3
1
29.5		 2021
No.
1
2
1
27.1

8. INTANGIBLE ASSETS - CHARITY AND GROUP

£
Cost
At 1 January 2022
130,500
Additions
61,379
At 31 December 2022
191,879
Amortisation
At 1 January 2022
-
Charge for the year
25,584
At 31 December 2022
25,584
Net book value
At 31 December 2022
166,295
At 31 December 2021
130,500
Development
learning platform		 £
730,154
-
730,154
483,711
146,996
630,707
99,447
246,443
Database
and website		 Total
£
860,654
61,379
922,033
483,711
172,580
656,291
265,742
376,943

30

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

9. TANGIBLE FIXED ASSETS - CHARITY AND GROUP

Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
On disposals
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021
10. INVESTMENTS
Market Value
At 1 January
Additions at cost
Disposal proceeds
Net (losses) / 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
616,687
47,137
-
663,824
1,900,761
£
1,947,898
£
Group
2022
£
1,434,861
1,120,847
(1,120,847)
(135,439)
1,299,422
£
1,293,847
£
Group
2022
£
-
1,299,422
-
1,299,422
**£ **		 £
26,955
-
(11,315)
15,640
25,673
698
(11,315)
15,056
584
£
1,282
£
Group
2021
£
1,222,750
-
-
212,111
1,434,861
£
739,332
£
Group
2021
£
1,206,973
227,888
-
1,434,861
£
Office
equipment &
furniture		 £
66,407
9,495
-
75,902
52,628
15,465
-
68,093
7,809
£
13,779
£
Charity
2022
£
1,434,961
1,120,847
(1,120,847)
(135,439)
1,299,522
£
1,293,947
£
Charity
2022
£
-
1,299,422
100
1,299,522
£
Computer
equipment &
software		 Total
£
2,657,947
9,495
(11,315)
2,656,127
694,988
63,300
(11,315)
746,973
1,909,154
**£ **
1,962,959
_£ _
Charity
2021
£
1,222,850
-
-
212,111
1,434,961
_£ _
739,432
_£ _
Charity
2021
£
1,206,973
227,888
100
1,434,961
_£ _

31

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

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		 2022
£
643,071
(420,148)
222,923
£
2022
£
48,047
222,923
(41,579)
229,391
**£ **		 2021
£
223,353
(181,774)
41,579
_£ _
2021
£
56,853
41,579
(50,385)
48,047
_£ _

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)		 2022
£
109,692
800,082
(680,283)
229,491
**£ **		 2021
£
8,039
245,776
(205,668)
48,147
_£ _

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

£ 185,102 £ 173,497

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		 2022
£
2,264,977
£
(417,084)
£		 2021
£
2,087,682
_£ _
(19,456)
£

32

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

13. DEBTORS

Trade debtors
Prepayments
Grant debtors
Other debtors
Taxation receivable (VAT)
Due from subsidiary inc Gift Aid
Branch debtors		 Group
2022
£
42,602
112,860
-
73,970
19,469
-
-
248,901
**£ **		 Group
2021
£
11,498
133,115
69,018
5,475
8,853
-
346
228,305
_£ _		 Charity
Charity
2022
2021
£
£
8,179
5,094
112,860
132,163
-
69,018
26,351
4,792
-
8,853
550,406
181,575
-
346
697,796
£
401,841
_£ _

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
2022
£
167,417
-
37,669
1,723
70,358
186,450
35,638
499,255
£
Group
2022
£
151,852
(151,852)
123,319
25,492
9,416
28,223
186,450
**£ **		 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
_£ _		 Charity
2022
£
72,081
-
45,850
1,723
70,358
152,209
35,338
377,559
£
Charity
2022
£
127,759
(127,759)
123,319
25,492
-
3,398
152,209
**£ **		 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
_£ _

33

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

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
£
57,470
37,950
696
9,473
27,389
85,989
218,967		 Income
£
4,958
10,343
-
14,202
-
-
29,503		 £
-
(2,469)
-
(3,085)
(27,389)
(85,989)
(118,932)
Expenditure		 Transfers
and gains
Carried
forward
£
£
-
62,428
-
45,824
-
696
-
20,590
-
-
-
-
-
129,538

  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
4.
Diversification of Income
5.
Climate change
6.
Diversity & Inclusion
7.
HR Development
Total revenue funds
Capital funds
8.
Database and website
9.
Digital Learning Platform
Total designated funds		 Brought
forward
£
34,414
15,000
85,074
32,780
39,180
16,732
15,000
238,180
246,443
130,500
615,123
**£ **		 Income
£
-
-
-
-
-
-
-
-
-
-
-		 £
-
-
(25)
(1,500)
(30,251)
(1,516)
-
(33,292)
(146,996)
(25,584)
(205,872)
£
Expenditure		 Transfers
Carried
forward
£
£
6,000
40,414
5,000
20,000
(10,000)
75,049
93,621
124,901
45,000
53,929
14,000
29,216
5,000
20,000
158,621
363,509
-
99,447
61,379
166,295
220,000
£
629,251
**£ **

The Trustees approved the transfers between designated and general funds during the year as detailed above.

34

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

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 . 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. 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.

  5. Climate Change . Enabling activities that will enable us to address objectives set out in the CIHT Climate change pledge.

  6. Diversity & Inclusion. To provide funding to support progression of our developmental work in this area.

  7. HR Development. Enabling investment in development and appraisal of staff and supporting change management activities .

  8. 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.

  9. Digital Learning Platform - A transfer has been made into the fund to represent the amount spent in the year on set up and development 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
2022
£
3,755,355
615,123
4,370,478
218,967
4,589,445
**£ **		 Income
£
2,836,966
-
2,836,966
29,503
2,866,469
**£ **		 £
(2,641,966)
(205,872)
(2,847,838)
(118,932)
(2,966,770)
£
Expenditure		 Transfers
and gains
Carried
forward
31 December
2022
£
£
(355,439)
3,594,916
220,000
629,251
(135,439)
4,224,167
-
129,538
(135,439)
£
4,353,705
**£ **

35

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

16. STATEMENT OF FUNDS - PRIOR YEAR

Brought
forward
£
Restricted funds:
CIHT Foundation Fund
58,370
Hong Kong Branch Fund
41,932
Motorway Archive Trust
696
YP Transports Vision Group
4,500
DfT Visibility
-
DfT Manual for Streets 3
223,298
Total restricted funds
328,796
Brought
forward
£
Designated funds:
IT Development
43,450
Refurbishment
-
Research
58,724
Diversification of Income
37,064
Climate change
50,000
Diversity & Inclusion
30,000
HR Development
-
Total revenue funds
219,238
Capital funds
Database and website
394,034
Digital Learning Platform
-
Total designated funds
613,272
£
SUMMARY OF FUNDS IN THE PRIOR YEAR
Brought
forward
1 January
2021
£
Total general funds
3,675,639
Designated funds
613,272
Total unrestricted funds
4,288,911
Restricted funds
328,796
Total funds
4,617,707
_£ _		 Income
£
-
444
-
19,898
95,000
-
115,342
Income
£
-
-
-
-
-
-
-
-
-
-
Nil
£
Income
£
2,145,308
-
2,145,308
115,342
2,260,650
_£ _		 £
(900)
(4,426)
-
(14,925)
(67,611)
(137,309)
(225,171)
£
(25,586)
-
-
(35,784)
(25,820)
(23,268)
-
(110,458)
(147,591)
-
(258,049)
£
Expenditure
£
(2,017,803)
(258,049)
(2,275,852)
(225,171)
(2,501,023)
£
Expenditure
Expenditure		 Transfers
£
-
-
-
-
-
-
-
Transfers
£
16,550
15,000
26,350
31,500
15,000
10,000
15,000
129,400
-
130,500
259,900
£
Transfers
and gains
£
(47,789)
259,900
212,111
-
212,111
_£ _		 Carried
forward
£
57,470
37,950
696
9,473
27,389
85,989
218,967
Carried
forward
£
34,414
15,000
85,074
32,780
39,180
16,732
15,000
238,180
246,443
130,500
615,123
_£ _
Carried
forward
31 December
2021
£
3,755,355
615,123
4,370,478
218,967
4,589,445
_£ _

36

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

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
£
-
265,742
-
363,509
629,251
£
Designated
funds
£
-
376,943
-
238,180
615,123
_£ _		 General
funds
£
1,909,154
-
1,299,422
386,340
3,594,916
£
General
funds
£
1,962,959
-
1,434,861
357,535
3,755,355
_£ _		 Restricted
funds
£
-
-
-
129,538
129,538
£
Restricted
funds
£
-
-
-
218,967
218,967
_£ _		 Total funds
£
1,909,154
265,742
1,299,422
879,387
4,353,705
**£ **
Total funds
£
1,962,959
376,943
1,434,861
814,682
4,589,445
_£ _

18. 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 7 Trustees amounted to £5,470 (2021: 4 Trustees reimbursed a total of £979).

Most of the Trustees are also members of or employed by other organisations which may undertake transactions with CIHT and Appian in the normal course of business. All such transactions are on an arm’s length basis.

37

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2022

19. STATEMENT OF FINANCIAL ACTIVITIES - PRIOR YEAR

Income
Member activities
Project income
Education income
Publication sales
National Conference
Other trading activities:
Appian Trading
Investment income receivable
Other income
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 / (expenditure)
Net movement in funds
Income from Charitable activities:
Expenditure on raising funds:
Trading & collecting subscriptions
Net (expenditure) / income before
gains on investments		 Unrestricted
Funds
2021
£
1,730,079
183,448
106,741
35,648
3,137
2,059,053
54,249
1,556
30,450
2,145,308
1,177,098
357,081
402,125
613
1,936,917
338,935
2,275,852
(130,544)
212,111
81,567
4,288,911
4,370,478
_£ _		 Restricted
Total
Funds
Funds
2021
2021
£
£
444
1,730,523
95,000
278,448
19,898
126,639
-
35,648
-
3,137
115,342
2,174,395
-
54,249
-
1,556
-
30,450
115,342
2,260,650
225,171
1,402,269
-
357,081
-
402,125
-
613
225,171
2,162,088
-
338,935
225,171
2,501,023
(109,829)
(240,373)
-
212,111
(109,829)
(28,262)
328,796
4,617,707
218,967
£
4,589,445
_£ _

38