Charity regtstration number 1166869 (England and Wales) INSTITUTE OF REFRIGERATION ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 INSTITUTE OF REFRIGERATION LEGALAND ADMINISTRATIVE INFORMATION Trustees Lisa Jayne Cook John Skelton Paul Singh Damian Wiszniewski Julie Murray Dermot Cotter Chris Griffiths Craig Girdlestone {Appointed 5 November 2024) {Appointed 5 November 2024) Senlor management Miriam Rodway Chief Executive Charity number (England and Wales) 1166889 Auditor Kingston Burrowes Audit Ltd 308 Ewell Road Surbiton Surrey KT6 7AL INSTITUTE OF REFRIGERATION CONTENTS Page Introduction from the President Truslees report 4-14 Independent auditor's report 15-17 Statement of financial activrties 18 Balance sheet 19 ststement of cash flows 20 Notes to the financial statements 21-36 INSTITUTE OF REFRIGERATION INTRODUCTION FROM THE PRESIDENT FOR THE YEAR ENDED 31 MARCH 2025 This report explains the work the Institute of Refrigeration has undertaken to fulfil the purpose for which it is legally registered as a charitable incorporated organisation. the activities it has undertaken during the period covered and what il has athieved during thal period. It also details plans and govemance, together with the financial slatements that explain how resources have been allocated. The IOR undertakes a wide range of educational and scientsfic activities which provide benefrt to the public and its members by promoting the advancement of the Scien￿ and practice of refrigeration. air conditioning and heat pump in all their applications for the good of society and the environment. During 202415 the IOR conlinued to manage its activities to provide maximum benefit to members and access to information. It reconfimied its priority areas around supporting apprenticeships. promoting career opportunities in the sector and pursuing enwronmental and teGhnical objectives. These priorities allowed the IOR to address the issues of most concern to indFviduals in the refrigeration, air conditioning and heat pump sector. SettÉng Strategic Priorities The IOR has focused sls efforts this year on the slrategic priority area of education and skills - getting the right skills for Ihe right job, for the right future. This is a critical area for the future of our industry and affects us all and everything the IOR does including providing technical information to ensure sound understanding of technologies. through publications, events and webinars that help members share knowledge and environmental work to address emerging issues. Our new activities in this area have included.. Extending our monthly maslerclass seTies of webinars designed for students and fvndamental understanding of key principles. Finalising TICR environmental recommendatiorss for end users that will be used to develop CPD training webinars and guides over the coming year. Committing to an education outreach project to be led by a six-month project manager who will visit schools, colleges and employers to better understand training needs. This will be funded by the IOR Presidents, Fund for Education which includes member donations from the Dinner. Preparing to review RACHP apprenticeship offerings and maximising our network of contacts within the BFi4 Training Section, Training providers and assessment aulhorities. Working with ACRIB lo gather infomiation on refrigerant handling skills and prepare for the more widespread use of low GWP alternatives. Statement on IOR Governance The IOR is governed by a Board of Trustees, members who volunteer to take on the role and responsibility of Charity Trustee and are elected by the membership. Their duties include management of the Institute, compliance with company and charity law, and generally ensufing good governance practice. The Board is chaired by the President and includes elected Board members and an Hon Treasurer. The Board members meet usually once a quarter to conduct IOR business. They are supported by a pemianent staff of five led by the Chief Executive Miriam Rodway. During ihis year a dispule betsveen the then President and the rest of the Board of Trustees occurred in May 2024 regarding how a complaint that he had made against the incumbent Presidenl-Elecl had been dealt with. The conduGI of Ihe President led the Board of Trustees to decide, with regret, that they had lost confidence in his ability to continue as chaif of the IOR Board meetin9s. The President chose to resign in September 2024 as President and Truslee prior lo the normal conclusion of his lemi in November. He continued to express his dissatisfaction with the outcome of his complaint by email and on social media. including a request for a vote of no confidence in the Board, future President and CEO. The matter was discussed at the AGM on 5th November when membèrs voted that the dispute should be resolved by mediation. Al the Conclusion of the mediation session held on 4th December all parties agreed that the dispute was now resolved and prepared a joint a ststement to that effect wh￿h included a mutual apology. INSTITUTE OF REFRIGERATION INTRODUCTION FROM THE PRESIDENT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 This was issued publicly in January 2025. Unfortunately, the previous President, who was no longer a Tfustee, subsequently changed their view and continued to express his dissatisfaction by email and on social media plarforms during 2025. In July 2025 they advised that he no longer considered himself to be a member of the Institute and this was acknowledged as a resignalion. The Board of Trustees took advice to support their management of this dispute from March 202410 November 2024 from a hltman resources expert (Boddy Matthews solicitors) who had been employed by the IOR in the past to advise on employment issues. Boddy Matthews issued a statement to members regarding their role as adviser to the IOR Board on 30th September 2024 which irÉcluded the following.. The Board has sought advice relation to the appropiiale steps for d88ling with the complaint in compliancè with IOR s Constitiition, policies and practices including the Code of Conduct and Disciplinary Policy, the IOR s duties as a registered Gharity and the duties and responsibililies of thg Tnistees to its members and other stakeholders. Advice was sought on navigating through the rfifficulties that have arisen with a view to finding a satisfactory resolution for all concerned in the light of Ioffs objectives and mindful of the overarching plinc1￿& that tha IOR is run for the public bgnefit. In our view, Ihe Board followed due prO￿$S and did not fall foul of any of its governing documents. All steps were taken in good faith to ensure the efficacy of the Boarf and the security of the IOR s roputation. The Board began to suggest mediation to resolve Ihe dispute in October 2024 and Ihis was organised in December 2024, engaging professional mediation sermces (Centre for Effective Dispute Resolution CEDR), in order to achieve a positive outcome from the mediation meeting and to safeguard the wellbeing of all parties. Improvemènts made to Governance The Board has taken a number of steps over Ihe past year to improve govemance of Ihe Instwtute as a result of this dispute. These are as follows. ITnplemented an Anti-Bullying and Harassment Policy - having prevtously felt Ihat Ihis was implicit in the Member Code of Conduct, the Board decided that a more specific policy on prevention and reporting of these practices was needed to set out expected behaviours. Established an Elhics and Coriduct Committee - the role of this group is to provide oversight through an independent group of members to whor¥J the Board could refer complaints or disputes. The Committee draws on servin9 Past Presidents of the Instrtute who are familiar wilh IOR processes and have high standing in the sedor. Implemented a Code of Cotyluct for Trustees-this document signed by all existing Trustees and by anyone who applies to join the Board, explicstly sets out the expectalions and responsibilities of Trustees. Employed an HR consuttancy seNice on a monlhly retainer basis that specialises in working with small charities and voluntary organisalions. The service is reviewing and updating existing policies to ensure darity and compliance and can provide advice on future matters as they arise. Expanded and strengthened the Finance Commtttee that is responsible for staffing and resourcing and deals with day to day issues that might arise between Board meetings. Adding members with expertise in HR and Risk Managemenl has broadened the skills of the group. and increased ils membership from 3 to 5 people. Carried out a review of Ihe Constitution. This process began in September 2024 and is still ongoing. A working group of members who had commented on the current constitution and proposed Changes issued last year, have reviewed the constitution alongside Charity Commission guidance and consulted widely with interested members. The 2nd draft is due to be issued in November 2025 for further comment by members. Enhanced the induction and training of exisling Board members. The annual briefing meetings of new Trustees will now be supplemented with a Copy of the Good Govemance Guide by the Diréctory of Social Change, templates and slides of governan￿ practices, and free online training offered lo all Board members on TrLtstee and Financial responsibilities. Board members continue lo be sent Gopies of news and updates from the Charity Commission to ensure they are aware of any changes. r.or Implemented new email inboxes.. iotk0L￿￿uk for general communications to and from the Board to members to avoid circulation of personallwork email addresses; for communications with the Ethics Committee or complaint submission. INSTITUTE OF REFRIGERATION INTRODUCTION FROM THE PRESIDENT (CONTINUED> FOR THE YEAR ENDED 31 MARCH 2025 Impact statement The management of this conflict has consumed significant resources of the Instilute during the 12- month period covered by these accounts. This includes exceptional demands on volunteer time, a diversion of staff time dealing with high volumes of emails from the Pfevious President and the direct financial costs as detailed in the financial reports. There has been a negative impact in perception of the IOR by some parties due to the publ￿ nature of derogalory comments made by Ihe previous President on social media which the Board has chosen not to respond to in order not to draw further attention to them. It has also had a significant impact on the wellbeing of everyone involved. Members can be assured that the Board, that comprises individual members who volunteer their time, has acted with the besl interests of Ihe Institute as their primary driver and in their attempts lo close Ihe matter, throughout this long running dispute. They have followed Codes and Constitution consistently and ensured that decisions have been taken folk)wing fair processes. We would like to thank members for their many messages and actions of support throughout this period and acknowledge all of those who have contributed to attempts lo bring this matter to a close through Iheir involvement in committees. working groups and panels. We would also like to thank Ouf Staff who have taken on the additional workload during this period and yet continued to maintain all of the important education, marketing, financial, technical and scientific outptrts that Ihe IOR is known and respected for. Lisa-Jayne Cook FlnstR President Date: 26 August 2025 INSTITUTE OF REFRIGERATION TRUSTEES REPORT FOR THE YEAR ENDED 31 MARCH 2025 The trustees présent their annual report and financial statements for the year ended 31 March 2025. The purpose of the IOR as set out in its Constitution is.. Thé general advancement of refrigeration in all its applications, in relation both to the perfection of its melhods, and to the e*(ension of its services to the community To promote means for communication between members and their interchange of views To encourage invention and research in all matters relating to the science and practice of refrigeration To promote a sustainable approach lo all aspects of refrigeration system design and operation To co-operate with educational inslitutions for the furtherance of education in the science and Practi￿ of refrigeration To hold meetings of the Institute for reading and discussing papers dealing with refrigeration and allied subjects To publish and distribute the pro￿edIng$ or reports of Ihe Institute To do all other things, inciderttal or conducive lo Ihe attainment of the abovè objects or any of them The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Gharity's governing document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing iheir accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" Objectives and activlties The Trustees have reviewed their objectives and evaluated activities against them in line wilh the Charity Commission guidance and confirm that the IOR continues to provide publi¢ benefit through.. Helping the sector to address environmental issues by contributing to environmental research projects, industry inquiries and working with other Professional Institutes, Associations and policy makers. Providing a platform for the sharing of infomialion between members by publishing guidance, running events and making awards for research, study and innovation. This includes maintaining membership of {IIR) International Institute of Refrigeration and encouraging IOR Branch activity. Encouraging skills and Iraining by Working wilh those involved in training. employers and apprentices. Liaising with the InstitLtte for Apprenticeships and Technical EdLEcation and City & Guilds. Encouraging and promoting diversity wilhin the sector and raising awareness of career opportunities with schools by supporting STEM (Science Technology Engineersng and Maths), WES (Women's Engineering Society} and INWIC (International Women in Engineering}. Promoting professional standards by membership of technical standards body BSI (British Standards Institute} and professional standards body the Engineering Council. Encouraging and providing CPD (Continued Professional Development) opportunities and promoting a Code of Professional Conduct. The Trustees review Ihe impact and success in achieving these aims at quarterly Trustee Board meetings al which Committees, Finance, Operations and Governance is reported on. Trustee meetings also monitor membership take up and profile, Engineering Council registration, external relations and PR. Financaal projections, investments and resource management are presented quarterly by the Treasurer. Public benefrt The Trustees confirm that they have referred to Ihe guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Institute's aims and objectives and in planning future activities. The range of publications, even15 and projects provide benefit to the publi¢ by improving the effecliven ess and efficiency of the refrigeration, air conditioning and heat pump applications which underpin many aspects of public life. Activities and outputs are made widely available through a well visited websile and promoted via trade press, newslelters, social media, and free webinars. INSTITUTE OF REFRIGERATION TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Activities Technical publicatlons Technical papers were presented and published on the topics of.. Energy Conversion and Storage, Emissions in Food Transport. Digilalisation and Al, Energy use in the Industrial Sector, the Circular Economy, FiACHP EngTech Section Good Practice Guidés published covered.. Disposal of equipment at end of life, Fin and Tube evaporators, Refrigeranls with Glide, Insulating Copper Pipework, Distributors and Flooded Evaporators, Impact of Dirty Condenser Coils, Tips for Maximising Lrfespan of AC units, Expansion Valve Hunting, Maintenance and Efficiency, Electronic Expansion Valves and Noise. The Annual IOR Proceedings Volume 121 was published incorporating technical papers. International profile UK Membership of the International Institule of Refrigeration (IIR) was maintained through the IOR'S International Refrigeration Committee. Members conlributed to conferences and publications. A UK conference on Adaptation to Climate Change was planned for 2025. IOR was represenled at ASHRAE Inlernational Associations Alliance, Intemational Institute of Ammonia Refrigeration, International Ne1work of Women in Cooling and Hampshire Refrigeralion Society meetings. The IOR rnntinues to support partners in Europe to promote REAL alternatives training and assessments in an advisory capacity. Networking and exchange of infonnation Masterclass webinars for students were held on the topics of servicing heat pumps, understanding refrigeration efficiency, optimising energy, press fitting ¢onnect40ns, refrigerant glide and P-H charts. air cooled condensers, siting of air-cooled Gondensers, refrigerant pipe sizing, compressor operation, vapour compression cycle basics. SIRACH held an event focused on strategies and technologies for low carbon héal networks Joint webinars took place with HPA, IMechE. and the CIBSE Young Energy Performance Group Promotion of events by other organisations included.. Hampshire Refrigeration Society, IIAR, Refcolij India, and the Cold Chain Summit from the Cold Chain Federation. Coollalks were broadcast on the topics of cold chain resilience, best practice in tightness testing, working safety with carbon dioxide. maximising cooling efficiency, troubleshooting heat pump installations, refrigerant future trends Free technical webinars were held at various industry trade shows and exhibitions. IOR has three directors of ACRIB (Air Conditioning and Refrigeration Induslry Board) who participate in meètings. This allowed IOR lo monitor indtjstry skills initiatives such as ACRIB F-gas Skillcard and RACHP UK Skills events, to share technical information aftd monitor legislation and policy in areas induding F-gas Regulation, EcoDesign. Building Safety Act and Building Regulations review. The Women in RACHP nelwork continued lo promote diversity with a podcast series and training days. A STEM Network for registered STEM Ambassadors to share experiences ID promoting the industry careers to schools. Local events organised by IOR sco￿and. Hampshire Refrigeration Society and Southwest South Wales Refrigeration Society. Webinars were held for members to encourage them to become a STEM ambassaijor, to register with the Engineering Council and to advance their membership grade. Campaigns to raise awareness of IOR services and technical information were carried out via Linkedln, with regular Pfess releases to journals and trade associations. Education and Tralnlng STEM Toolkits supporting the Fantastic Fridges website and careers were in use by 12 IOR STEM ambassadors with promotional materials to share in schools. A campaign to raise awareness of the FantasticFridges.com website was carried out tsrgeting school careers advisers and science teachers. Students on apprenticeship schemes were supported with free access to IOR publications. nners of all student competitions were invited to join the IOR Annual Dinner. Meetings were held with the Institute for Apprenticeships and Technical Education to monitor the national Apprenticeship standard. IOR Scotland branch invested in providing training for members and awards for achievement. INSTITUTE OF REFRIGERATION TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Professional Reglstration The IOR is a professional affiliate of the Engineering Council and members can join the Engineering Council register of professional engineers through a licencing agreement with CIBSE. Thefe are currently 8 registered members at various grades. The IOR holds an annual meeting with CIBSE to review the arrangement. The Engineering Council provides valuable benchmarks against which the Trustees evaluate IOR activity and standards in areas such as Codes of Conduct, CPD, Security and Risk, Diversity and provides marketing adv￿e. Encouraging and promoting innovation The Ted Perry Student Research Award was presented to Eshagh Goudarzi, London South Bank University for his work on "Integration of waste heal and mine water for heat recovery and storage in district heating and cooling" The J&E Hall Internalional Gold Medal for practical contribution lo the development of RACHP technology was awarded to Prof. Ahmed Kovacevic for his work in the field of compressor technology to deliver transformative solutions for high-fidelity numerical modelling of rotary positive displacement compressors. The Lightfoot medal for besl paper in the year was awarded lo "Heal Networks in Ruial Areas." Dylan Betts. The Beyond Refrigeration award for environmental innovation was awarded to Smart Parc Energy Centre in Derby, a sustainable energy management centre by GEA Heating & Refrigeratton Solutions. The IOR benefits from significant contribution of volunteers through: Membership of Committees and Working groups that address priorty topics for Ihe sector. Speakers sharing their expertise by giving leohnical talks at webinars and other events. Judging panels for awards and medals. Reviewing and grading of membership applications. Sponsoring and supporting Engineering Council applications. Giving talks to schools through the STEM ambassador programme. Representing IOR at key industry and technical events and meetings. Achlevèments and perfonnance Significanl activities generaling income for Ihe period included-. Membership and RACHP EngTech Section fees and subscriptions. Conferences, Dinners and other networking evenls. Publications sales and cofflmission. Project granls for Contracted Wofk to share outputs of project SIRACH, TICR Providing secretarial support to ACRIB, IRC and Real Altematives. Success indicators monitored at Trustee meetings include: Financial performan¢e against budget. Membership levels and Engineering Council registrations. Attendance levels at events and publications downloads. PR, social media and website analytics. Fundraising practices IOR does not engage in PLtblic fundraising or grant giving. There is some expenditure relaled to membership marketing and awards for innovation- some of which are funded by donation by external organisations. IOR'S main source of income is individual membership SLtbscription. INSTITUTE OF REFRIGERATION TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Finan¢ial review The IOR maintains a diverse range of income sources including membership fees, events income, publication sales, and externally funded projects in order to mitigate risk of over-reliance on any single income source. The Charity Management Accounts and Budgets agreed by the Trustees initially planned for a small operating surplus based on maintaining membership subscriptions, continuing levèls of support from members for IOR Dinners and events, publication sales and income from the TICR funded projecl and services to the REAL Alternatives consortium, IRC and ACRIB. These activilies have been successful, particularly the Annual Dinner which saw an increase in numbers attending and a new bigger venue. Anticipated costs for the developmenl of the technician App were reduced and the app was launched in spring 2025. The anticipated levels of income were offset by additional unforeseen expenditure this year on governance matters which are detailed below. Overall the IOR remains in a strong financial posilion with a total of funds to be Garried forward of £807,677 (2024.. £791,554} of which £444,932 are held in restricted funds that can only be used for specific purposes (such as the Presidents Fund and IOR Scotland's Refrigeration Aberdeen Fund). This leaves £362,745 {2024'. £360,976) in thè general fund whose use is unrestricted. The IOR continues to hold sufficient reserves lo provide for the long-temi operation of the charity, to respond to opportunities that might arise to further its aims and to maintain sufficient contingency for unexpected events. The Trustees have considered factors Ihal could affect future financial performance which include reduced membership levels, drops in investment values, and funded projects due to conclude in the near future. The Trustees have cautious financsal forecasts in place and currentty anticipate deficits for the next 2-3 years whilst the IOR carries out activities to increase income including and education projecl which will generate morè members. a potential environmental research proje¢l and a major international conference. The Trustees continue to monitor closely the investmenl portfolio performance and interest rates on cash surplus to immediate requirements, making changes when needed. Exceptional expenditure Exceptional exper7ditur8 on governance was incurred during the year on the following constitutional, regulatory advice and HR matters.. £3,932 advice on Code of Conduct and Disciplinary Panel operation. £7,345 clarification of Trustee Responsibilities and Constitutional authorily including expert attendance by advisers at Board meeting and drafting of correspondence. £4,777 draftin9 a Letter lo Members and unsuccesgfLtI attempts to arrange mediation. £8.757 advice on legality of AGM proposals made by Mr Fox and preparation of response to members by Board. £1,462 drafting correspondence with Mr Fox. £3,900 professional mediation services CEDR and £650 additional costs for mediator to arrange colleague to support Mr Fox. This totalled £30,825. Regular govemance expenditure on independenl election services provided by Mi-voice for voting of £965 is also included in governance expendilure total of £31,790 (see note 9 in the accounts). The following expenses were also incurred related to mediation and are included in other general expenditure headings Travel expenses £864.15 travel, hotels and subsistence for Mr Fox and colleague, Room hire £693. No further legal costs were incurred between November 2024 and March 2025. These exceptional governance costs were partially offset by donations totalling £15.000 received specifically for this purpose during the year with messages from the donors that said "The criticism of the high cost that was directed to the Trustees at the AGM in 2024 was totally inappropriate" that this was "To contribute lowards the cost of the human resources and legal advi￿ that the Board of Trustees had to take" and 'We would have been disappointed rf they as a management team had not sought professional guidance in suth a difficult situation.- INSTITUTE OF REFRIGERATION TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Reserves policy The Trustees have considered what is a prudent reserves policy to minimise Ihe risk lo the Charity of unexpected economic events and ensure that the charity is not holding excess funds that are not bèing applied for charitable purposes. The reserves target is reviewed annually and Trustees currently have in place a reserves target lo hold six months of operating expenditure. The actual reserves held as at 31 sl March 2025 were £212,970 (unrestricted funds less tangible fixed assets and designated funds). However, the IOR holds additional reserves Ihat have been designated for speGifiG areas of expendilure of £86,122, and a further £331,285 in the Presidents Fund for Educalion initiatives. The six monlhs operating expenditure on which the reserves target is calculated is Gurrently £252.531. During the next 12 months the Trustees will be putting plans in place to increase the IORS reserves to provide improved long term financial stability for the IOR by growing the membership base. This will support a longer-term aim to increase the actual rese￿eS held by a fvrther £125,000 in fiJlur8 to hold at least 8 months operating expenditure in reserves. The Trustees have judged that the IOR has sufficient funds to continue in operation for at least thé next 12 months from the date of confimalion of the accounts, due lo the continued high level of activity and engagement by members, growth in membership income being seen and anticipated, future contracted project income, planned events and the availability of reserves upon which to draw should the need arise. The IOR budget forecasts are for deficits 2026 and 2027 reflecting investments in activities, events and initiatives to grow the IORS membership income and diversify income from activities and seNices. Cash management - Cash surplus to immediate needs is invested prudently in line with recognised good practice for Charities, in a low-risk mix of bank deposit accounts CAF Bank (Charity Aid Foundation), CAF Instant Access Deposit, Adermore Bank as well as tax-free Charity investment bonds, which provide long term growth as well as substantial fegular dividends. The IOR maintains a broad range of investmenls lo minimise risk. Over the longer- lerm investment values have increased beyond that which would have been expected from simple bank-account based savings and these bonds conb'nue to yield dividends. Trustees monilor the value of the investments through reports at Board meetings. INSTITUTE OF REFRIGERATION TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Risk management Trustees carry out a regular review of risks associated with the on-going management of the Charity and a risk register is held. Trustees are satisfied that processes and procedures are in place to mitlgale the impact of such risks on the operations of the charity. The principal risks identified have been.. Staffing - the Board review annually staff welfare. staffing requirements and opportunities lo invest in IT to ensure adequate resources are available and Ihat these are deployed efFiciently with a business continuity plan lo mitigate staffing related risks. Activities lo improve monitoring of staff wellbeing are in planning for the fulure. Office working arrangements - elTicient use is made of cloud computing to allow flexible working patterns, remote working. team working with voluntèers in dtfferent locations, and operating as much as possible a paper free system. Cybersecurity and data protection - IOR as a data owner keeps an up to date GDPR risk assessment, has processes in place lo train staff, manage data sharing with processors, manage any potential breaches. It uses external consultants to ensure cybersecurity. updating of firewalls, prevention of security breaches etc and reviews opportunities to enhance protection regularly. Membership profile the need to attract more members to ensure a continued membership base in the long-term fvture is being addressed by encouraging diversity. supporting students and providing better access to information for technicians. Profile-raising opportunities for younger people and students include inviting student award winners to attend the IOR Dinner with funding for their travel costs. Over-reliance on a small number of volunteers and balance of member input - Regular recruitment of new member volunteers is carried oul through newsletters, direct email and social media campaigns. The IOR equality and diversrty policy encourages equal opportunities and a balance of representalion. Guidance on responsibilities of Committee members and social media policy have been updated and circulated. Unpredictability of investment income and market revaluation of inveslmenls - remains a risk which the IOR addresses by ensuring a vatied portfolio of charity investments, monitoring throughout the year Iheir growth and returns and having a split of surplus funds bel￿een investments and banklbuilding society deposit aocounts. Compliance with legal and professional registration requirements is mon¢tored through subscription to C.harily Commission newsletter guidance, free training for staff and Trustees from the Directory of Social Change, circulation of Charity Commission guidance on risk. dispute management, decision making, and trustee responsibilities, Charity Management online resources and magazines, involvement in Engineering Council meetings and advice from professional advisers. Risk of culture of bullying - would have an adverse effect on Twstee and staff retention and the reputation of the charity. This has been addressed by the introduction of an Anti-Bullying and Harassment Poli¢y, a detailed written procedure for Disciplinary action and engagement of a charity HR consultancy on a retainer to review staff terms and conditions, grievance and wellbeing policies and other relevant policies on a regular basis. Disrupts'on of dispLrtes between TrL¢Stees - a new Code of Conduct lor Trustees has been adopted by all Trustees. Trustees have also read and confirmed the Charity Commission guidance on Trustee responsibililies, decision making and disputes, eligibilrty to serve a5 Trustees. A new Ethics and Conduct committee with oversight to handle complaints or disputes has been established drawing on expertise of Past Presidents. Designated and Restricted funds Expenditure is made directly for the purposes for which these funds were established as shown in the notes to the accounts. Planned expenditure for the next period is as follows.. Distribution of student prize monies from the Ted Pery Fund. Presidents, fund income from the current and previous financial year is available to support educ*ion initialives as agreed by the Board. Mike Tin51ey fund is available to support studies by a disabled engineer or technician. International Refrigeration Committee {IRC> fund allows IOR lo maintain inlernalional institute membership for the UK. SIRACH project designated fund will be used to support events and site tours. IOR Branches hold designated funds for local activity and education programmes. The financial statements that follow show the current values of the restricled, unrestricted and ￿sh funds ol the Institute in notes 21- 23. INSTITUTE OF REFRIGERATION TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Plans for future periods Key activities being undertaken in the next period requiring investment of additional resources are focused on strategic priority areas including.. Education - carrying out an outreach project with colleges and employers to identify training need s, link this to membership and identify fundirtrg for fLtture sknlls promolion Environment - organising an intemational research conference on adaplation to climate change that will cover ils costs of administration through delegate fees. publishing and distributing technical material and training webinars for end user sector as outcomes of the TICR project ffransport Industrial and Commercial Refrigeration> co-ordinated by LSBU and fully funded by DESNZ. Publications continued development of a Technicians App to deliver technical Gontent to field-based lechnicians and students. Operational- improved IT securily and access to cost-effective HR specialist support. Structure, govemance and management Legal Status The IOR Constitution sets out the objects, powers, membership processes, decision making. AGM and voting arrangements. functions and duties of tnjstees including how trustees ale appointed and inducted. The Rules sel oul Ihe processes around grades of membership, membership fee collection and appointment of President, President Elect, Trustees, Hon Treasurer and Chief Executive. 10- INSTITUTE OF REFRIGERATION TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 The members who served as trustees ￿tsIeen 1st April 2024 and throughout the year to 31* March 2025 ar8 sh own below. Currently seNing Trustees as at 315tMarch 2025: LIsa-J￿ne Cook Pregdert Dumot Cott Elèsed fvlen* aig Girdestone Ekidedmember Clyis Grfflhs Etected Member J￿Ie Mwray Etected Mertier Jom Skelton Hffl Treasurer Paul Sligh Eteded Mernber Dallian WI5zni￿* E￿rted Merrt)er the AGM in November 2024 the term in office of lan Fither and Catsiina Marques C£¢ncluded and th8y Stood down from the Board_ Graeme Fox resigned as President and Twstee in September 2024. Mike Creamer fetsred from the Board in December 2024_ Graeme Fox Lisa Jayne Cook John Skelton Paul Singh Damian Wiszniewski Julie Murray Dermot Cotter Chris Griffiths Craig Girdlestone lan Fisher Catarina Marques (Resigned 20 September 2024) (Appointed S November 2024> (Appointed 5 November 2024) (Resigned 5 November 2024) (Resigned S November 2024} 11 INSTITUTE OF REFRIGERATION TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Re¢ruilment and appointment of trustses The Board of Trustees of the IOR includes Six elected trustees, a President, President-Elect, Past President and Hon Treasurer. One-third of Ihe elected Trustees rèlire from office each year by rotation. Vacancies are advertlsed by newsletter and on the website. Nominations must be supported by Iwo members. If the number of nominalions exceed the number of vacancies an election is held. New Tnjstees tske part in an induction meeting where information about Chartty Commission legal responsibilities, lerms of reference for Trustees. past meeting minutes. strategy documents and organisational, policy and financial background infomation is shared. They take part in an induction briefing with the President and Chief Executive. The Presidènt-Elect is appointed al the AGM following a vote by the Membership {if there is morè than one candidate) one year before the current President is due to sland down. Presidents are appointed for a term of bNo years. Organisational structure The Board of Trustees appoints various Committees and Chairs to Gary out the work of the Institute as shown below and approves their Term5 of Reference which are reviewed every 2 years. Each Committee includes a representative of the Trustees and is supported by a member of the permanent IOR stsff. The IOR employs a permanent secretariat of five staff members led by a Chief Executive. Staff remuneration, including that of key staff. and the benefits packages for all staff, are reviewed annually by a Finan¢e Cornmittee in line with average cost of living increases and if appropriate exceptional staff performance. Decision making policies - Trustees meet quarterly with a quorum of five. They may also make decisions by email resolution. Decisions are confirmed by agreement of a majority- Trustees delegate ￿rtain fvnclions to Committees by determining iheir lerms of reference. They may authorise the formation of Branches and new Committees. The Finan￿ Committee is made up of a minimum of the Hon Treasurer. President and Immediate Past President and CEO and has authority for financial policies. monitoring of investment performance and resourcing including remuneration of staff. Poli¢ies are in place covering the reimbursement of Trustee expenses, Declaration of corFflicts of interest, Drversity, GDPR Data Management. Risk management and conlingency planning, Volunteer management, Code of Conduct and Discipline procedure, Bullying and Harassment, Non commercialtty of speakers. Appointment of guest speakers. amongst others. Policies are reviewed and audited on a regular rolling basis by agreement of Trustees. Key policies are published on the website. Ethi¢s and Conduct Committee Report- The Ethics and Conduct Committee was formed in Decèmber 2024 and is authorised to review complaints indeperident of the Board and comprises past Presidents or members who have previously served as Trustees. During this period it has dealt with eight complaints from members, one employee gfievance and two follow up queries. The employee grievancè was accepted as valid and referred to the Board. Two of the complaints received from members were dismissed for insulficient evidence. Six of the complaints regarding the same member were referred to an independent Disc5plinary Panel. The Disciplinary Panel upheld five of the ¢omplaints and the member was sanctioned. The Disciplinary Panel did not uphold one of the complaints. 12- INSTITUTE OF REFRIGERATION TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 other mattars Commlttees Annual Dinner- Julie Murray (Chair). P Arrowsmtth. R Hurley, S Buckell, S Parris. Education and Training J Skelton (Chair). A Bowden. J Bonner, S Buckell, S Creech. l Dickinson. D Hudson, M Giltoes, R Mapperley, M Noon, D Russell, P Singh, T Thain. Environment - C Griffiths {Chair), D Cotter, M Ferguson, N Franzen, Nigel Upson, R Parker, W Serter, C Marques, LJ Cook. Ethics and Conduct- Kevin Glass (Chair) Finance- J Skelton (Chair), LJ Cook. International Refrigeration Committee- A Pearson (Chairman), J Burden. M Camacho. J Evans, D Gunn, R Lawton, R Low, D Quinn. The work of the Committee was supported by the following subscribing organisations.. Aggreko, Cambridge Refrigeration Technology, GEA, Orbia, J&E Hall International. Star Refrigeration. Membership - C Girdlestone (Chair), R Cawte, L-J Cook, S Creech, C Eaton Smith. E Hammond, A Reed, J Southwick, S Parris, M Wiecaszek, D Wiszniewski Papers and Publications - D Cotter (Chair}, D Butler, D Colboume, M Ferguson, N Franzen, P Holzer, C Marques, R Unsworth, C Vines. J Whitwell. RACHP Engineers, Section & ACHPI Management Panel - R Wright (Chair}, G Adams. l Bowman, J Broughton, M Carannante, l Fisher, G Furneau, D Garcia, C Girdleslone. A Jabbar, S Kayes, l Lemmon, N M¢Goldri¢k, M Nankivell, A Radford, D Sowden, P Sta¢ey. Technical- D Paget (Chair), P Arrowsmith, S Benton, D Colboume, N Cook. D Cotter. P Cowan. J Evans, C Green, P HoEzer. N Roberts. N Rivers, S Padgett, A Pearson, D Scott. C Tomescu. Women in RACHP Network - S Buckell and A Prado (Co-chairs), K Bullivant, G Dormer, C Fountain. S Gill, J Loiselle, F Maddocks, C Marques. K Perry, A Prado, L Pogson, A Richardson, C Mcwhirter, L-J Cook. Branch & Soclety Contacts Easl Anglian Refrigeration Society- C Sealy Northein Branch - M Morton IOR Scotland- J Frazer Hampshire Society {affiliated} - J Emm Southwest Refrigeralion Society {affiliated> - D Wiszniewski Extemal Represent2tion & co.opèration Air Conditioning and Refrigeration Industry Board (IOR Direclors L-J Cook, l Fisher, D Wiszniewski) ASHRAE Associale Alliance {LJ Cook. M Rodway) British Standards Institution and European and International Standards Remew Committees {A Pearson. D Colbourne, S Benton, D Pagel, J Evans, M Rodway and others) Inlemational Institute of Refrigeration (UK delegate - J Evans) Intemalional Institute of Ammonia Refrigeration (A Pearson, M Rodway) International Women in Cooling (L-J Cook, M Rodway} SIRACH (G Maidment. J Evans, L Waters) Women's Engineering S¢xiety {L-J Cook, K Perry, M Rodway) Staff Members Miriam Rodway - Chief Executive Bawani SaNendran -Accountant Clare Tooth - Membership Secretary Lisa Waters - Events Manager Edith Meyer- Communications and Publications Professional advisors Auditor- Kingston Burrowes Audit Lld of Surbilon Surrey Bankers- CAF Bank, 25 Kings Hill Ave, Kirigs Hill, West Malling, Kenl ME19 4JQ 13- INSTITUTE OF REFRIGERATION TRUSTEES REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Statement of Trustees responslbllities The trustees are responsible for preparing the Trustees Report and the financial statements in accordance with applicablè law and United Kingdom Accounting Standards {Uniled Kingdom Generally Accepted Accounting Practice). The law applicable lo charities in England and Wales requires 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 of the incoming resources and appli¢ation of resources of the charity for that year. 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 Chartties SORP. make judgements and estimates thal are reasonable and prudent., state whether applicable accounting standards have been followed. subject to any material departures disclosed and explained ir) the financial statements- and prepare the financial statements on the going concern basis unless il is inappropriate to presume that the Charity will continue in operation. The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that Ihe financial stalements comply with the Charities Acl 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trusl deed. They are also responsible for safeguarding the assets of the ¢harity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees report was approved by the Board of Trustees. Lisa Jayne Cook Presldent 26 August 2025 14- INSTITUTE OF REFRIGERATION INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF INSTITUTE OF REFRIGERATION Opinion We have audited the financial statements of Institute of Refrigeration (the 'charity') ftsf the year ended 31 March 2025 which comprise the statement of financial activities, the balan¢e shèet. the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in Iheir preparation is applicable law and Uniled Kingdom AGcounting Standards, in¢luding Financial Reporting Standard 102 The Financial Reporting Standard applicablg in lh& UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a Irue and fair view of the state of the charity's affairs 2S at 31 March 2025 and of its incoming resources and application of resources, for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi￿., arsd have been prepared in accordance with the Chaflties Act 2011. 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 Auditorfs responsibilities for the audit ol the finan￿al statements sedion of our report. We are independent of the charity in accordance with the elhical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled OE2r other èthical responsibilities in accordan￿ with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements. we have concluded that the Trustees use of the going concem basis of ac£ounting in the preparation of the financial slatemenls is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that. individually Of collectively, may cast significant doubt on the charity's ability to conlinue as a going con￿rn for a period of at least twelve months frorn when the financial stalements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concem are described in the relevant sections of this report. Other inforniation The other information ¢omprises the information included in the annual report other than the finarKial stalements and our audilols report Ihereon. The Irustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of asstjrance conclusion Ihereon. OL¢r responsibility is lo read the other infomiation and, in doing so. consider whether the other information is materially inconsistent with the financial statements or our knowlèdge obtained in the course of the audit, or othe￿ise appears to be materially misstated. If we identify such material inconsistencies or apparenl malerial misstatements, we are required to determine whether this gives rise to a malerial misslalement 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 thal fa¢t. We have nothing to report in this regard. Matters on which we are requlred to report by exception We have nothing to report in respect of the following matters in relalion to which the Chartties (Accounts and R8POrts> Regulations 2008 requires us to report to you if. in our opinion= the information given in the financial statements is inconsistent in any material respect with the Trustees report., or sufficient accounting records have not been kept. or the financial slatements are not in agreement with the accounting records., or we have not received all the information and explanations we require for our audit. 15- INSTITUTE OF REFRIGERATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF INSTITUTE OF REFRIGERATION Responslbillties of trustees As explained more fully in the statement of Trustees responsibilits-es, the trustees are responsible for the preparation of the financial statements and for being satisf5ed 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 oncern and using Ihe going concern basis of accounting unless the trustees either intend to cease operations, or have no realistic atternative but to do so. Auditols responslbilltles for the audit of the financial statements We have been appointed a5 auditor under section 144 of the Charities Act 2011 and report in accordan￿ with the Act and relevant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statement5 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 deteGt 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 infiuence the economic decisions of users taken on the basis of these financial statement5. IrregularÈties, 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 is detailed below.. Enquiry of management, those charged with govemance about actual and potential lrtigation or claims and identification of non-compliance with laws and regulations. Reviewing minutes of meetings of those charged with governance. Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness. Perfomiing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. Professional scepticism in course of the audit and with audit sampling in material audit areas. Because of the inherent limitations of an audit, there is a risk that we will not detect all irreg ularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This rtsk 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 n0￿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 Counal's website at.. https.'Il www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. INSTITUTE OF REFRIGERATION INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF INSTITUTE OF REFRIGERATION Use of our report This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To Ihe fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's Irustees as a body, for our audit work, for this report, or for the opinions we have formed. Kevin Fisher BA FCA CTA (Senlor Statutory Auditor) For and on behalf of Kingston Burrowes Audit Ltd. Statutory Auditor Chartered Accountants 308 Ewell Road Surbiton Surrey Iff6 7AL 14 October 2025 Kingston Burrowes Audit Ltd is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006. 17- INSTITUTE OF REFRIGERATION STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Unrestrictsd Restrfficted funds funds 2025 2025 Total Unrestricted Restricted funds funds 2024 2024 Total 2025 2024 Notes Income and endowments from: Donations and Membership Charitable adivities Other trading activities Investments Other income 223,035 260,921 1,300 15.309 2,281 3,182 226,217 260,921 1,300 31,891 2,281 202,249 183,049 1,300 11,055 4,093 1,431 203.680 183.049 1,300 27.627 4,093 16,582 16,572 Total income 502,846 19,764 522,610 401,746 18,003 419,749 Expenditure on: Raising fijnds Charitable activities 42.808 464,255 42,808 468,230 40,644 389,410 40,644 410,892 3.975 21,482 Total expenditure 507,063 3,975 511,038 430,054 21,482 451,536 Net gainsl{losses} on investments 13 1.616 2.935 4,551 7,180 8,315 15,495 Net incomellexpenditurel (2,601) 18,724 16,123 (21.128) 4,836 (16.292) Transfers between funds 4.370 (4,370) 7,453 (7,453) Net movement in funds 10 1,769 14,354 16,123 (13,675) (2,61n (16,292) Reconciliation of funds: Fund balances at 1 April 2024 360,976 430,578 791,554 374,651 433,195 807,846 Fund balances at 31 March 2025 362,745 444,932 807,677 360,976 430,578 791,554 The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activitie5. 18- INSTITUTE OF REFRIGERATION BALANCE SHEET AS AT31 MARCH 2025 2025 2024 Notes Fixed assets Tangible assets Investments 15 16 59,283 553,975 59,573 549,424 613,258 608,997 Current assets Debtors Cash at bank and in hand 17 75,473 202,339 47,407 188.731 277,812 236.138 Creditors: amounts falling due wtthin one year 18 {83.393) (53,581) Net current assets 194,419 182,557 Total assets less current liabilities 807.677 791,554 The funds of the charity Restricted income funds Unrestricted funds 21 22 444,932 362,745 430,578 360.976 807,677 791.554 The financial statements were approved by the trustees on 26 August 2025 John Sketton Treasurer INSTITUTE OF REFRIGERATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2025 2025 2024 Notss Cash flows from operating activities Cash absorbed by operations 27 {15,387) (72,762) Investing activities Purchase of tangible fixed assets Purchase of investments Proceeds from disposal of investments Investment income received (2,896) (150.000) 106,968 27,627 31,891 Net cash generated froml{used in) investing activities 28,995 (15,405) Net cash generated from financing activities Net increasel{decrease) In Gash and cash equivalents 13,608 (88,16n Cash and cash equivalents at beginning of year 188,731 276,898 Cash and cash equivalents at end of year 202,339 188,731 -20- INSTITUTE OF REFRIGERATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Accounting policies Charity infomiation The Institute of Refrigeration is a charitable incorporated organisation (CIO) registered with the Charity Commission in England and Wales {No. 1166869). 1.1 Accounting convention The financial statements have been prepared in accordance with the charity's goveming document, the Charities Act 2011, FRS 102 "The Financial Reporting Standard applicablè in the UK and Republic of Ireland" and the Charities SORP "Accounting and Reporting by Charities.. Statement of Recommended Practice applicable to charities preparing their accounts in accordance wrth the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)" The charty is a Public Benefit Entity as defined by FRS 102. The financial statements 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 the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations bul which has since been withdrawn. The financial statements are prepared in sterling, which is the funotional currency of the charity. Monetary amounts in these financial statements are rounded to the nearest £. The financial statements have been prepared under Ihe historical cost convention, Imodified to include the revaluation of freehold properties and tts include investment properties and certain financial instrLRnents at fair value]. The princip21 ac£ounting policies adopted are set out below. 1.2 Going concem At the time of approving the financial statements, Ihe trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for Ihe foreseeab16 futtjre. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charitable funds Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors or grantors as to how they may be used. The purposes and uses of the restricted fLtnds are set out in the notes to the financial statements. Endowment funds are subjecl to specffic conditions by donors that the capital must be mainlained by the charty. 1.4 Income Items of income are recognised in the financial statements when all of the following criteria are met- The charity has entitlement to the funds., any perfomiance conditions have been met or are fulty within the control of the charity., there is sufficient certainty that receipt of the income is considered probably., and the amount can be measured reliably. 21 INSTITUTE OF REFRIGERATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 AGGounting policies (Continued) 1.5 Expenditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable Ihat a Iransfer of economic benefils will be required in settlement, and the amount of the obligation ¢an be measured reliably. Expenditure is classified by aGtivÉty. The costs of each activity are made up of the total of dir￿ costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity- Shared cosls which contribute to rnore than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent wilh the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset's use. 1.6 Tangible fixed assets Tangible fixed assets are initially ffleasured at cosl and subsequently measured al cost or valuation, net of depreciation and any impairment losses. Tangible assets costing more than £500 are capilalised. Deprecialion is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Freehold land and buiklings Fixtures and ffttings Computers 2 % straight line 250A slraight line 250A straight line The gain or loss arising on the disposal of an asset is determined as the difference be￿een the sale proceeds and the carying value of the asset, and is recognised in the statement of financial activities. 1.7 Flxed asset investments Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net incomel(expenditure) for the year. Transaction costs are expensed as incurred. 1.8 Impairment of fixed assets At each reporting end date, the charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairmenl loss (if any). 1.9 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposils held al call with banks, other short-term liquid investments with original matLtrities of Ihree month5 or less, and bank overdrafts. Bank overdrafts are shown wilhin borrowings in current liabilFties. 1.10 Flnancial instruments The charity has elected lo apply Ihe provisions of Section 11 'Basi¢ Financial Instruments, and Section 12 'Other FinanGial Instruments Issues, of FRS 102 to all of its financial instruments. Financial instruments are rewgnised in the charity's balance sheet when the charity becomes party lo the conlractual provisions of the instrument. Financial assets and liabililies are offsel, with the net amounts presented in the financial statements, when there is a legally enforceable rtght to set off the recognised amounts and there is an intention lo settle on a n81 basis or lo realisé the asset and settle the liability simultaneously. -22- INSTITUTE OF REFRIGERATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 A¢counting policies IContinued} Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured * transaction price including transaction costs and are subsequently Ca￿led at amortised cost using the effective interest method unless the arrangemenl constitutes a financing transaclion. where the transaction is measured al the present value of Ihe future receipts discounted at a market rate of interest. Financial assets dassified as receivable within one year are nol amortised. Baslc Ilnancial liabilities Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a fiDancing Iransadion, where the debl instrument is measured at the present value of the future payments discounted al a market rale of interest. Financial liabilities classified a5 payable within one year are not amortised. Debl instruments are subsequently Garried al amortised cost. using the effective interest rate method. Trade creditors are obligalions lo pay for goods or se￿1￿$ that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are re¢ognised initially at transaction price and subsequently measured at amortised cosl using the effective interest method. Derecognition of finan¢ial liabilities Financial liabilities are derecogni5ed when the charity's contractual obligations expire or are discharged or cancdled. 1.11 Retirement benefits Payments to defined contribution retirement benefil schemes are charged as an expense as they fall due. Income from donations and membership Unrestrlcted Restrlcted funds funds 2025 2025 Total Unrestricted Re$tri¢ted funds funds 2024 2024 Totsl 2025 2024 Membership subscription General Membership subscription - SES & ACHPI Other donations and sponsorship 193.573 193.573 186,095 186,095 8,562 8,562 10.254 10,254 20.900 3,182 24,082 5,900 1,431 7,331 223,035 3,182 226,217 202,249 1.431 203.680 -23- INSTITUTE OF REFRIGERATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Income from Gharitable activities Unrestrictsd funds 2025 Unrestrfcted funds 2024 Income from charitable actlvlties Project grant5 Annual dinner and networking events ACRIB management fee Sales of publications 69.391 158.824 30,244 2.462 30,959 121,523 29,651 916 260,921 183,049 Income from other trading activifjes Unrestricted Unrestricted funds funds 2025 2024 Advertising and merchandise 1,300 1,300 Income fry>m investments Unrestricted Restricted funds funds 2025 2025 Total Unrestricted Restricted funds funds 2024 2024 Total 2025 2024 Dividends Interest receivable 7,849 7,460 16,582 24,431 7,460 7,586 3,469 16,572 24,158 3,469 15.309 16,582 31,891 11,055 18,572 27.627 Other income Unrestricted Unrestricted funds funds 2025 2024 Royalties 2,281 4,093 -24- INSTITUTE OF REFRIGERATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Expenditure on raising funds Unrestrictod Unrestrfctsd funds funds 2025 2024 Fundraistng and publicity Staff costs Support costs 28,490 14,318 30,904 9,740 42.808 40,644 From the £42,808 {2024: £40,644) total cost of Raising fvnds. £23,223 (2024= £25.459} related to direct costs and £19,585 (2024: £15,186) related to support costs. The cost has been allocated as: Membership Scheme - General IOR £41,096 (2024. £38,206) Membership Scheme - SES and ACHPI £1,712 (2024.. £2,438) -25- 0ryIr￿-fn co¢*tn Ln (YJ w (D O OfnLu2riIici<￿_ c a> OCO¢TrvO¢ts￿O Ln 0￿Éri OQL Jf¥•* 0￿)￿￿(L[L 7.453 7,180 360,976 The REAL Alternatives Consortium fund ￿preSentS monies re￿iVed to continue to expand existing educational material related to low GWP refrigerant use in collaboration wilh international partners. This fund has now been ¢losed as at 31 March 2025. The SIRACH project represents funding reseNed for futu￿ sustainable innovalion research network activity. The Intemational Refrigeration Committee represents funds raised by industry for the payment of the UK National Subscfiption to the Internalional Inslitute of Refrigeration. IOR Branches represents Tnonie5 held by IOR Branches designated for local activities. 23 Analysis of net assets between funds Unrestricted funds 2025 Restricted funds 2025 Total 2025 At 31 Mar¢h 2025: Tangible assets Investments Current assetsl(liabilities) 59,283 186.498 116,964 59,283 553.975 194,419 367,477 77,455 362.745 444,932 807,677 INSTITUTE OF REFRIGERATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 23 Analysis of nel assets bet￿een funds {Continuedl Unrestricted funds 2024 Restricted funds 2024 Totsl 2024 At 31 March 2024: Tangible assets Investments Current assetsl(liabilities) 59,573 184,882 116,521 59.573 549,424 182,557 364,542 66,036 360.978 430,578 791,554 24 Operating lease commltments Lessee At the reporting end date the charity had outstanding commttments for future minimum lease payments under non-cancellable operating leases. which fall due as follows- 2025 2024 Within one year Between two and five years 3,948 4,935 809 8,883 809 25 Related party transactions Air Conditioning and Refrigeration Industry Board IACRIB) The Institute charged ACRIB £36.978 (2024: £36.523) for shared facilities, management and expenses during the year. £6,734 of this remained outstanding at the year end. The Institute paid ACRIB a membership subscription of £5.606 {2024: £5.606>. The Institute has a number of trustees who are also directors of ACRI8. 26 Contingent Assets The total funding awarded to the charity in respect of Multi￿year projects but not recognised as income amounts to £29,926. These funds will be recognised in accordance with agreed budgets and specified Cf implied timeframes 35- INSTITUTE OF REFRIGERATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 27 Cash absorbed by operations 2025 2024 Surplusl(deficÉt) for the year 16,123 (16,292) Adjustments for: Investment income recognised in slalement of financial a¢tivities Fair value gains and losses on investmenls Depreciation and impairment of tangible fixed assets (31,891) (4,551) 3,186 (27,627> (15.495> 2,461 Movements in working capital: (Increase) in debtors Increasel(decrease) in creditors Increasel(decrease) in deferred income (28,066) 22,431 7,381 (13,196} (76) (2,537) Cash absorbed by operations (15,387) (72,762> 28 Analysis of changes in netfunds The charity had no material debt during the year.