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Association for
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Annual report and accounts 2022123
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Association for Project Management
Financial statements For the year ended 31 March 2023
Incorporated by Royal Charter RC000890
Charity registration number 1171112
Annual report and accounts 2022/23
1
## **Contents**
||Page|
|---|---|
|Legal and administrative information|3|
|Trustees’ annual report|4|
|Independent auditor’s report|25|
|Consolidated statement of financial activities|29|
|Consolidated balance sheet|30|
|Association balance sheet|31|
|Consolidated cash flow statement|32|
|Notes to the financial statements|33|
Annual report and accounts 2022/23
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## **Legal and administrative information**
The Association for Project Management is a body incorporated by Royal Charter (RC000890) and registered as a charity (1171112). Its charitable object is ‘to advance the science, theory and practice of project and programme management for the public benefit.’
|APM board of trustees|Milla Mazilu|(Chair)|
|---|---|---|
||Jon Broome|(Deputy Chair)|
||Sue Simmonite|(Deputy Chair)|
||Yetunde Adeshile||
||Emma Carroll-Walsh||
||Isobel French|(from November 2022)|
||Sorrel Gilbert||
||Debbie Lewis|(to September 2022)|
||Charles Mills||
||Amy Morley||
||Sheilina Somani|(from November 2022)|
||Karen Whelan||
||Ian Williams||
|Company secretary|M Robinson||
|Key management personnel|A Boddison|(Chief Executive)|
||M Hepworth|(Deputy Chief Executive)|
|Principal address|Ibis House||
||Regent Park||
||Summerleys Road||
||Princes Risborough||
||Buckinghamshire||
||HP27 9LE||
|External auditor|Buzzacott LLP||
||130 Wood Street||
||London||
||EC2V 6DL||
|Internal auditor|Crowe UK LLP||
||55 Ludgate Hill||
||London||
||EC4M 7JW||
|Principal bankers|Barclays Bank PLC||
||1 Churchill Place||
||London||
||E14 5HP||
|Principal solicitors|Blake Morgan LLP||
||New Kings Court||
||Tollgate||
||Chandler’s Ford||
||Eastleigh||
||SO53 3LG||
|Investment fund managers|Evelyn Partners||
||6 New Street Square||
||New Fetter Lane||
||London||
||EC4A 3BF||
Annual report and accounts 2022/23
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## **Introduction**
## **Board Chair’s report**
In 2022, we celebrated the 50[th] anniversary of the Association for Project Management (APM). We marked this with a variety of activities to recognise the progress we’ve made, both as a chartered organisation and as a profession. This celebration has given me the opportunity to reflect on the impact that projects have had on the world over the years. I thoroughly enjoyed reading the list of 50 inspiring projects we highlighted as part of our anniversary celebrations; these give me much hope for a world in which we see people and projects succeeding.
APM has strong foundations for continued success, with a robust board composition, an excellent management team, and a healthy and active body of members and volunteers. In October 2022, we welcomed our 40,000th member to the association, which is a fantastic achievement and a testament to the growing impact our work is having. I would like to thank every individual involved in getting us here: thank you for your drive, passion and dedication which has now led to us being even more visible across the growing profession.
It also gives me great pleasure to acknowledge the contributions of our members and volunteers, and to thank you all for your support. I was especially pleased to attend the APM Volunteer Awards in November 2022 and would take this opportunity to congratulate and thank all those of you who selflessly give your time to further the profession's reach and impact.
During the year, we undertook an external review of the Board against recommended practice points in the Charity Governance Code. This concluded with good evidence of performance on which we intend to continue building upon. I would like to thank colleagues on the Board and Company Secretary, Mike Robinson for their time, diligence and support given to the association – and to me in my role as Chair.
In looking to the future, we have developed a revised strategy. I would like to share my appreciation and thanks to former APM Chair Debbie Lewis and the wider Board, for their stewardship and creation of the revised strategy. I'd like to also acknowledge and thank Mark Hepworth, APM Deputy Chief Executive, and Adam Boddison OBE, APM Chief Executive, for their leadership in bringing together the organisation to further develop and bring the strategy to life.
APM is a young and vibrant professional body, leading the way for a profession that is both rewarding and exciting to work in. As the only chartered body for the project profession, I am keen to stay ahead of the curve so we can inspire, support and develop project professionals for years to come. This last year has given me tremendous hope and I look forward to a future in which people and projects can succeed, so that the world can be a better place.
## **APM Board Chair Milla Mazilu**
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## **Introduction (continued)**
## **Chief Executive’s report**
Our business year 2022/23 has been one of significant milestones and one that has built on the foundations we’ve previously worked so hard to establish. Throughout the year, we worked on what I refer to fondly as the ‘big four’ projects. These are our new brand identity, our 50[th] anniversary celebrations, our Delivering a Better Future strategy, plus our next-generation customer relationship management (CRM) system.
These projects will support us in our 1/10/100 ambition of reaching 1,000 corporate partners, 10,000 Chartered Project Professionals and 100,000 individual members. While ambitions on this scale will not be achieved overnight, we do believe these targets can be reached. The work we’ve done over the past 12 months means we have them firmly in our sights.
I’m sure you will have seen the launch of our striking new brand in October. This has given us a fresh new identity that resonates more with our diverse profession. It’s bold and exciting, and we look forward to seeing it in the hands of a growing number of project professionals, be it at events, on their screens or through our publications.
Our 50[th] anniversary gave us a chance to look back and celebrate the impact our organisation has had over the previous five decades. Our curation of _50 Projects for a Better Future_ illustrated the wide variety of the projects that improve our world.
While the anniversary was an important opportunity to reflect on how far APM has come as an organisation, it’s imperative that we look forward. This is what our new strategy, Delivering a Better Future, accomplishes by setting our goals as the chartered membership organisation for the project profession.
Although very much a ‘behind-the-scenes’ initiative, our CRM project is pivotal to enabling us to work in new, more digitally led ways by understanding our members and profession better. A lot of work has been done on the planning and discovery phase of this project already and we look forward to seeing it launch in 2023.
Investment in our people remains one of the most important commitments we can make. To ensure we’re ready for tomorrow’s challenges, we’ve continually focused on our staff to make sure we have a resilient, well-trained and motivated workforce. We’ve also focused on strengthening ties outside APM by building relationships with fellow project-orientated professional bodies such as PMI (Project Management Institute) and IPMA (International Project Management Association). We fully intend to nurture and grow these links to ensure we collaboratively meet the needs of those we serve and take the profession forward.
## **Professor Adam Boddison APM Chief Executive Officer**
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## **Structure, governance and management**
## **Background**
The board of trustees of Association for Project Management (APM) is pleased to present the annual report and audited accounts for the year ended 31 March 2023. These comply with the Financial Reporting Standard applicable in the UK and Republic of Ireland - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
APM is incorporated by Royal Charter (RC000890) and is a registered charity (1171112). Its charitable object is: ‘to advance the science, theory and practice of project and programme management for the public benefit.’ APM’s principal office is: Ibis House, Regent Park, Summerleys Road, Princes Risborough, Bucks, HP27 9LE.
## **Governance framework**
The Royal Charter and By-laws are available on the ‘About Us’ section of the APM website. The Charter serves as APM’s constitution and sets high-level governance arrangements such as the composition of the board of trustees.
The Charter authorises the board of trustees to manage the business of the Association. As part of this duty, the board agrees the APM regulations. The regulations are available online and set out detailed governance arrangements. They include a scheme of delegation confirming the matters that the Board withholds to itself for approval, and the matters which it delegates to the Chief Executive to manage. To summarise the framework: the board sets APM’s strategy and monitors its implementation, assuring itself that performance is on track. The board ensures that APM acts within its charitable objects and applicable law. As trustees, the board members are collectively required to manage the assets of the charity.
Individual APM members form an important part of APM’s governance framework. Those in the full and fellow grades (MAPM/FAPM) are voting members. This status enables them to attend and vote at general meetings as well as to participate in the annual elections for trustees. The board currently operates with up to nine elected trustees and up to five appointed trustees. The latter are generally appointed by the board to fill gaps in skills and experience. The elected trustees are voting members who are nominated and elected by voting members.
The 2022 board elections saw voter turnout at 18.1% which remained an upper quartile performance amongst similar membership bodies. A good range of quality candidates was again seen with 10 candidates being nominated. Trustees are keen to encourage a diverse and committed range of candidates and members are warmly encouraged to consider the opportunity.
The board has established sub-groups to oversee specific areas of its work. Duties and memberships are outlined on the APM website. The groups comprise: the audit and assurance committee; the remuneration committee; the professional standards and knowledge committee; and the nominations panel. Memberships and terms of reference for the groups are reviewed. Some trustees also act as ‘champions’ for specific topics and projects.
## **Detailed governance matters**
The regulations require an annual board evaluation exercise to be undertaken; this is externally facilitated every third year. An external consultant carried out a detailed review during the previous financial year, providing her report in March 2022. This identified a sound governance framework and good behaviours in the board room. A few recommendations for improvement were made including suggestions to review board composition, meeting frequency and to improve communications explaining the public benefit delivered by APM. A governance action plan for these points was prepared and completed during the year. The internal board evaluation for 2022/23 focussed on an ‘apply or explain’ analysis against the Charity Governance Code. This was completed finding only minor points for improvement which were addressed. Trustees endorsed the analysis which concluded good level of evidence against the Code’s recommended practice points.
Annual report and accounts 2022/23
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## **Structure, governance and management (continued)**
## **Detailed governance matters (continued)**
APM’s trustees are not remunerated but do receive expenses. APM purchases indemnity insurance which seeks to protect trustees against personal liability if legal claims are made against them.
Trustees' biographies can be found on the APM website.
New trustees receive both internal induction and external governance training. All new trustees receive briefings from members of the leadership team and the Company Secretary. Additional training and briefings are available for individual trustees on request. Regular briefings are given to the whole board on various aspects of APM’s activities and board-wide training is organised as required.
APM operates a code of conduct for board members and has a policy in relation to conflicts of interest. The board is updated on governance related matters as required and receives guidance on process from the Company Secretary. Related party transactions between APM and its board members are detailed in note 23 to the accounts.
The charity’s wholly owned subsidiary, Ibis Trading Limited (06536096), is established as a trading arm. Ibis may undertake commercial activities which are not classed as charitable primary purpose trading, or those that might expose the charity to unnecessary risk. Any profits are gift aided to APM. The presentation of the subsidiary in the accounts is explained in note 1 to the accounts. Currently Ibis’ activities focus on sponsorship income.
All individual APM members are bound by a code of professional conduct. Details of the code and its associated procedural rules and indicative sanctions guidance are available on the ‘About Us’ section of the APM website.
## **Risk management**
APM has a policy for the management of risk which is reviewed and approved by the board on the recommendation of the audit and assurance committee. Risk management is embedded within operational management and APM’s project, programme and portfolio management. APM risk management follows guidance set out by the Charity Commission (charities and risk management CC26).
The Deputy Chief Executive acts as risk champion and maintains the corporate risk register. APM has developed a process for risk management which cascades risk management to operational and programme management across APM. Each functional area manages its own risks, which are reviewed at the appropriate level and escalated as necessary.
Risk registers exemplify APM’s risk management processes and set out the topic, risk assessment, risk owners, impacts, mitigations, actions, net risk and risk acceptability.
The risk registers are maintained as live documents and are always available to management.
The board reviews risk in detail on an annual basis and reviews the corporate risk register on an exception basis at each board meeting. The audit and assurance committee reviews corporate risks and considers, an area of specific risk at each meeting, as well as monitoring the nature and application of the risk management process. Risks are also considered at regular leadership team meetings.
Key risks and the plans and strategies to manage those risks are detailed on pages 21 and 22.
Annual report and accounts 2022/23
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## **Structure, governance and management (continued)**
## **Pay policy for senior staff**
All board members give their time freely and receive no remuneration. Trustees may receive expenses. Details of their expenses and any related party transactions are disclosed in notes 21 and 23 to the financial statements.
A remuneration committee provides assurance to the board that APM has appropriate reward strategies and policies in place to support the delivery of the corporate strategy and to support an effective, high performing and diverse staff resource. It is chaired by a board trustee.
Day-to-day management of APM is delegated to a remunerated Chief Executive in accordance with board-approved regulations. The leadership team includes the Chief Executive and Deputy Chief Executive who are considered to be the key management personnel within the organisation. There are six other directors on the leadership team.
Remuneration of the leadership team is reviewed annually in accordance with APM’s remuneration policy which is the same for all staff. This includes provision for a performance related pay scheme. The remuneration of the Chief Executive is approved by the board’s remuneration committee. Regular benchmarking ensures remuneration for all staff is aligned with market rates for the industry.
## **Reserves policy**
APM updated its reserves policy in February 2021. We use a risk-based approach whereby reserve levels are adjusted as perceptions of risk and other factors change; this is aligned with our strategic risk register.
The focus is on the short-term potential drawdown of reserves which would allow time to undertake additional mitigation activities and allow APM to adjust to changed financial circumstances. Reserves are monitored monthly.
Key risks with the potential to impact reserves as identified from the corporate risk register include:
- a decline in income levels (viewed as the single most important risk to APM business continuity), with an inability to raise income having many root causes, for example:
- competitive threats
- economic recession
- a reputation event affecting APM’s credibility
- third-party failure
- inability to operate due to such events as a pandemic, adverse weather or IT failure
- a significant GDPR breach resulting in loss of personal data, leading to financial penalties and reputational damage
- market volatility causing a change in the value of the investment portfolio
- external events such as a high-profile project failure which discredits the profession.
APM operates stringent internal financial controls but financial loss due to fraud remains an operational risk. It is considered unlikely that any single instance of fraud would be material.
## **Level of reserves**
APM manages reserves at a total level using a risk-based approach and our policy is to maintain these within a range of £3.3m to £6.9m. Management of reserves covers designated funds, specific risk-based reserves and a buffer. Risk-based reserves and the buffer together are designed to provide adequate cover for any risks that may materialise and represent the free reserves of the organisation. Flexibility of operations is supported by the free reserves and the ability to determine future investment in defined funds.
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## **Structure, governance and management (continued)**
## **Reserves policy (continued)**
Reserve levels may fall outside the defined range if there is a strategy in place requiring the use of additional reserves and a plan to return the reserves back to the approved range.
Reserves were maintained within the prescribed range throughout 2022/23.
## Adequacy of reserves at 31 March 2023
APM had net assets of £6.0m at 31 March 2023 (2022: £6.5m) which is comfortably within the range defined in the reserves policy.
|Reserves breakdown
Risk-based
Buffer (surplus)
**Free**
Designated funds
Total|**2022/23**
£1.5m
£2.9m
**£4.4m**
£1.6m
£6.0m|**2021/22**
£1.4m
£3.6m
**£5.0m**
£1.5m
£6.5m|
|---|---|---|
## **Investment policy**
The policy aims to protect APM’s financial assets in real terms by appointing an external investment manager to manage the Association’s investments on a discretionary basis. The manager operates under an investment management agreement with APM which in turn is directed by a policy determining the structure and appropriateness of the investments.
The APM board has oversight of the implementation of the Association’s investment policy by the APM executive. The board approved updates to the policy during the year reflecting a desire to be more aligned to ethical, social and governance (ESG) considerations whilst not adversely affecting portfolio returns. The policy takes into account guidance issued by the Charity Commission along with the mission of the organisation, its financial position and its risk appetite. The board has appointed a board investment policy lead who acts as a conduit between the executive and board.
The investment objectives of the Association are to maintain the purchasing power of the current assets and all future contributions over a normal market/economic cycle (considered to be 7-10 years) to achieve returns within reasonable and prudent levels of risk. An appropriate asset allocation is maintained based on a total return policy that is compatible with a flexible spending approach, while still having the potential to produce positive real returns.
Investments are carried out in line with APM’s aims, charitable objectives and values. A general exclusionary policy has not been adopted, but individual investments may be excluded if perceived to conflict with the Association’s objects or if they might bring reputational damage by association.
To date, £3.5m has been transferred to the portfolio for investment; of this £139k remained in cash at the year-end pending investment under suitable market conditions.
The remaining cash funds not required on a day-to-day basis are placed on deposit.
Annual report and accounts 2022/23
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## **Objectives and activities**
We are the only chartered membership organisation for the project profession in the world. Our activities – from qualifications and networking to research, resources and debate - build the profile the profession warrants, challenge the status quo where it matters and set the highest standards. In a complex world, we’re helping the project profession deliver better.
## **Our vision and mission**
Our vision expresses what we want to achieve and how the world will benefit when we do:
“A world in which all projects succeed.”
We’ll make this vision a reality by unleashing the potential of projects to make a positive difference in the world, and by helping people to understand how they can contribute. This is expressed through our mission:
“To advance the science, theory and practice of project and programme management for the public benefit."
This mission statement also serves as our charitable object. As a charity, we exist to create public benefit through all that we do. This statement takes account of Charity Commission guidance on public benefit including _Public Benefit: Running a Charity (PB2)_ _**[1]** ._
## **Our values**
Our values are the principles that drive our behaviours, providing a consistent standard between colleagues and towards our members and stakeholders. They are core to who we are and define ourselves as an organisation. They drive and characterise how we communicate in every way and we’re proud of what they represent.
We have four values, each with its own associated behaviours:
- Progressive **-** Being Progressive is about approaching things with an open mind. We try to find the most creative way to get things done and we embrace technology, innovate and have a global outlook.
- Thoughtful **-** Being Thoughtful is about listening and leading debate. We constantly evolve, share our perspective, and own our voice. We support the skills that go beyond project management process alone and are fundamental to success.
- Warm **-** Being Warm is about championing diversity and inclusivity. We treat everyone with empathy and respect - however challenging the circumstances. We’re also flexible, friendly and collaborative.
- Excellent **-** Being Excellent is about our commitment to promoting the profession and raising its profile. We set the benchmark with chartered status and constantly challenge ourselves to improve by investing in our quality of thought, delivery, dialogue and services.
Annual report and accounts 2022/23
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## **Objectives and activities (continued)**
## **Our strategic goals**
2022 saw the launch of our new corporate strategy, _Delivering a Better Future_ . This builds on our previous strategy, _Inspiring Positive Change_ , which was introduced in 2017.
The new strategy was created through research, reflection and stakeholder consultation, to paint a clear picture of the present and future operating environment. From this discovery period, we identified four strategic themes that would help us build on the successes of recent years, while also ensuring adaptability and resilience for the future.
The strategic themes of _Delivering a Better Future_ are:
- APM provides leadership of the profession
- APM is a professional body for all project professionals
- APM identifies and enables the right skills for the project professional
- APM is an outstanding professional body.
These themes support our vision of a world in which all projects succeed and reflect our role as the only chartered membership organisation for the project profession in the world. By achieving these goals, more project, programme and portfolio professionals can be at their best, and more projects will be delivered successfully.
Underpinning these themes is the work we’ve undertaken across both Diversity, Equity, Inclusion and Belonging (DEIB) and sustainability. They remain critical factors for us, and those we serve, which is why elements of DEIB and sustainability now feature in our latest Competence Framework and Chartered Standard.
Annual report and accounts 2022/23
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## **Objectives and activities (continued)**
## **Creating public benefit**
As part of our 50[th] anniversary, we explored the impact and benefits of some of the biggest projects over the previous half-century. This laid bare the vital importance of projects, programmes and portfolios that are continuously pushing boundaries in a world that’s often volatile, uncertain, complex and ambiguous.
With our profession facing increasing demand to harness the power of change for good, we create public benefit in the following ways:
- Setting leading standards - Our highly respected Chartered Project Professional standard has been revised to align with our latest _Competence Framework_ to ensure we continually lead the way in creating clear, accessible standards and setting the highest of bars for the profession we serve.
- Promoting and facilitating education - We lead debate, champion innovation and challenge the status quo when doing so makes a difference. We provide the project profession with recognised qualifications, learning materials and a varied programme of events to facilitate discussion and drive improvement.
- Raising awareness - Our chartered status gives the profession the respect it deserves. We work to raise not only our own profile, but the profile of our members and the wider project profession by celebrating the economic and social value projects create; especially among new audiences.
- Growing the talent pipeline - We encourage organisations to invest in the professionalisation of their employees who are managing projects, programmes and portfolios. We work with higher education institutions and professional training providers, nationally and internationally, to promote project management as a career of first choice and facilitate access to our qualifications.
- Supporting research - As well as commissioning our own research, we fund research from educational and academic institutions around the world. We also hold events to share these new insights and celebrate the contribution that academia and research make to our profession.
In addition, we collaborate with government bodies, private sector organisations and other membership bodies to raise awareness of the importance of well-managed projects, and to advance the development of skills that enable projects to be delivered better.
Achieving these things and delivering on our objectives helps us progress towards a world in which all projects succeed. The public benefit that results from this represents the fulfilment of our charitable object, creating a virtuous circle.
Annual report and accounts 2022/23
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## **Achievements and successes**
## **Providing leadership of the profession**
## **Growing our membership**
Our membership has grown by 18.9% and we close the year having broken the 40,000 mark for individual members for the first time. We ended the year with 44,241 members.
This increase recognises our growing reach in new sectors, and our investment in growing our membership offering with online benefits such as APM Learning and the APM Community.
Our membership drive continues to grow internationally and is seeing demand from professionals in Gulf countries for our membership services.
## **Building strong relationships with our corporate partners**
During the year, we strengthened relationships with organisations across industry and the public sector through our Corporate Partnership Programme. Our focus on doing this ensures we can work closely with those at the forefront of project delivery to share knowledge and build strong mutual partnerships from which we all benefit.
Our efforts to build awareness of the benefits of APM Corporate Partnership have grown in new sectors including healthcare and pharmaceuticals; this was particularly prevalent following the COVID19 pandemic.
We ended the year with 442 corporate partners.
## **Growing demand for our qualifications**
The 22,261 exams sat last year is the highest ever for APM and highlights a strong demand for development opportunities to build knowledge, experience and capability from across the profession. Our online examinations enable greater accessibility to our qualifications and with the review of our APM Project Management Qualification underway we will continue to ensure we meet the needs of the profession’s development in the future.
## **Register of Chartered Project Professionals passes 3,000 ChPPs**
This year a new milestone was reached as our Register of Chartered Project Professionals totalled over 3,000 Chartered Project Professionals (ChPPs) for the first time since its launch in 2017.
Evidence of the value of chartered status continues to build, backed by our research, and we’re seeing a strong demand from major organisations for project professionals to have achieved the standard for key roles.
## **Public affairs and government engagement**
We accelerated growth and success in this area by submitting evidence to five external consultations, including securing a spot for our President at a government roundtable on transport skills.
Across the year we met numerous MPs and Peers, including attendance at party conferences - to talk through members’ concerns. We have also maintained good dialogue with our key stakeholder groups including the Infrastructure and Projects Authority (IPA), National Audit Office (NAO) and National Infrastructure Commission (NIC).
We’ve grown our voice and reach and continue to provide comment on high-profile events, including the Budget, NAO reports and other key publications.
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## **Achievements and successes (continued)**
## **APM research**
Our research programme continues to develop knowledge across a wide range of areas of interest and sectors. We published six pieces of research and 15 bitesize research blogs during 2022/23.
Four new studies were awarded funding from the APM Research Fund. These covered important topics such as gender inequality, net zero, diversity and well-being. All of these - and more current research - can be found on our website.
Research activity also included events, webinars and workshops to support all APM stakeholder groups including project professionals and project organisations, academics, students and volunteers among many others.
## **Leading discussion and debate**
Throughout 2022/23, we championed discussion and shared thought leadership on many important topics by publishing white papers and reports, and by hosting online roundtables. Using a variety of platforms enabled us to make these discussions more accessible. All outputs were shared over social media to give access to as many people as possible and allow them to continue the conversations on our online communities.
Among our outputs for the year were:
- Transitioning from project manager to project leader - We published an exclusive paper for our Corporate Partners in April, titled _Making the Transition from Project Manager to Project Leader_ . It shared insights from three prominent project leaders - Nick Smallwood, Chief Executive of the Infrastructure and Projects Authority; Emma Carroll-Walsh, Programme Executive at Manufacturing Technology Centre and APM Board Trustee; and Nick Elliott MBE, Chief Executive Officer of Helsing UK - on the skills and qualities necessary for project leaders, to help people on the verge of stepping up to this level in their careers.
- The chief project officer - A growing number of organisations are consolidating the planning and implementation of change initiatives within the role of chief project officer. We held a roundtable discussion in the summer to discuss the emergence of this role, how organisations can integrate it into existing operations, and the benefits of doing so. The online discussion was summarised in a report, which was made available on our website.
- Project management in the life sciences and pharmaceutical sector - We hosted a roundtable event in November for the life science sector. It was attended by representatives from leading pharmaceutical, healthcare, bioscience and life science organisations, including AstraZeneca, PIPMG and the NHS. It raised awareness of the importance of the project management profession within these sectors, which APM research has found contributes £17.5bn to the UK economy annually and employs 223,800 full-time equivalent workers.
- Project management in the charity sector - Project management in the charity sector adds £6.61bn of value to the UK economy each year. To help specialists in this sector become more confident in their ability to deliver projects, we gathered a panel of experts from various UK charities for a roundtable discussion on the opportunities and challenges in this unique sector. The discussion was summarised in our paper, _Delivering Better Projects in the Charity Sector: The Expert View_ , published in March.
Annual report and accounts 2022/23
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## **Achievements and successes (continued)**
## **APM Power of Projects Conference 2022**
Our Power of Projects conference in June 2022 was a significant one, as it coincided with our 50th anniversary celebrations and brought the project management community back together with our first in-person flagship conference since 2019.
The keynote speaker was Catherine Green OBE, Manufacturing Lead, Oxford-AstraZeneca Vaccine, Oxford University, who played an integral part in the development of the Oxford–AstraZeneca vaccine.
The conference hosted our lightbox exhibition celebrating APM’s curation of _50 Projects for a Better Future_ , showcasing the impact and benefit the profession brings to society.
## **APM Project Management Awards 2022**
Another event that championed the power of projects for good was our APM Project Management Awards, held in November 2022. The event received 150 entries, submitted from a wide range of - sectors from defence projects to post disaster recovery, retail to technology.
The winning projects and professionals demonstrated just how critical their work is to all of us with amazing feats and accomplishments on display.
On the night, we welcomed 450 guests, making it a night to remember for many.
## **APM Women in Project Management Conference 2022 featuring the Think Differently Summit**
Our award-winning Women in Project Management (WiPM) Conference took place in September 2022 in London, our first in-person WiPM conference since 2019. It garnered resoundingly positive feedback from sponsors and attendees of which there were over 480 in attendance.
The discussions addressed the key challenges of modern work, sharing insights from project management experts and providing the opportunity to make new connections. The conference included a Think Differently Summit, which explored the subject of diversity - its role in teams, the workplace and delivering project success.
## **APM Festival of Education and Research**
Our Festival of Education and Research was the biggest yet, attracting nearly 800 delegates in February 2023 from over 20 countries, featuring 25 speakers. This event received nearly twice as many award submissions as the previous year. Of those who attended, 84% said they would recommend the event to colleagues and contacts.
## **Early career project professional events**
Several emerging project professional events were held during the year, supporting the next generation of talent. These events covered themes including Getting into Chartered, Why Projects Fail and What Makes Projects Succeed, which focused on APM’s Dynamic Conditions research, attracting over 70 delegates at each session.
Annual report and accounts 2022/23
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## **Achievements and successes (continued)**
## **A professional body for all project professionals**
## **Success on our digital channels**
2022/23 was a remarkable year for us on social media. Our efforts led to a series of accomplishments on platforms as diverse as LinkedIn and TikTok.
Our LinkedIn channel, in particular, has been exceptionally successful. On this platform we reached an impressive milestone of over 100,000 followers. We also achieved significant increases in impressions, engagements and our engagement rate (the proportion of posts being interacted with), which increased to 6.6% from 4% the previous year.
Our LinkedIn Live events have also seen significant achievements. We have designed a LinkedIn Live calendar that enables us to schedule content throughout the year, aligning them with awareness days and essential pieces of APM content. For instance, we organised a LinkedIn Live session focused on women in projects to celebrate International Women's Day and Mental Health Awareness.
Furthermore, we have conducted several LinkedIn Lives that have supported various areas of the business, including membership, chartered, research, and the APM strategy. During 2022/23, our LinkedIn Live sessions achieved 20,000 viewers.
We applied a more strategic approach to our new TikTok account to ensure its continued growth. This platform is particularly popular among younger users, making it an important means of reaching this audience. We created a strategic plan and analysed our content's performance, leading us to grow our following to over 14,000, gain an impressive four million video views and 80,000 engagements.
## **APM Community mobile app**
Our new APM Community mobile app for members launched last year. The app connects project professionals from around the world and provides direct access for all users to the APM Community - APM’s online forum. We reached over 600 app users in 2022/23.
## **Women in projects**
We have a proven record of advocating for equality, diversity and inclusion in our profession. However, the evidence shows there is still disparity for women in project-related roles. We launched an editorial campaign to explore issues relevant to women, including career progression, flexible working, mentoring and tackling myths around discrimination. The campaign included blogs, interview articles and video interviews, that were syndicated and shared by partner organisations, to reach the widest possible audience. The campaign culminated in an online roundtable featuring prominent women from the project profession. This roundtable was made available on demand and was viewed over 5,000 times by the end of the business year.
## **Welcoming our youngest Chartered Project Professional**
In July, we congratulated Bel French, Infrastructure Project Manager with construction consultant Gleeds, who it was announced had become a Chartered Project Professional (ChPP) aged just 22 years old.
Bel started her project career after taking her A Levels. She completed her NVQ Level 4 Associate Project Manager Apprenticeship while working on infrastructure projects and programmes. As part of this, she completed her APM Project Management Qualification and AgilePM Foundation exam. In addition to this remarkable achievement, Bel went on to be elected to APM’s Board of Trustees in November of the same year.
Annual report and accounts 2022/23
16
## **Achievements and successes (continued)**
## **Identifying and enabling the right skills for the project professional**
## **APM Learning developments**
Since the launch of APM Learning four years ago, we’ve developed over 40 modules covering the majority of APM competence areas. These are supported by guides,100 learning podcasts, tools and templates.
We now have over 40% of individual eligible members registered on the site, with a good spread of usage across member grades.
Associate 53%
Member 34%
Fellow 37%
Our learning podcasts were a new area added in the last year and have been popular with members. These 5–10-minute recordings help members develop the skills needed to succeed. Each one covers tools, tips and frameworks that help users to problem-solve, be agile, adapt, prioritise, lead effectively and communicate successfully.
Next year, we will continue to develop our library of modules focusing on plugging any remaining gaps in competence areas. We will also be launching new ‘information sheets.’ These short, easy-to-access guides will build into a library of resources for members across all areas of project management. The launch will contain up to 20 information sheets initially.
## **Publishing**
Throughout 2022/23 we published a wide range of books and reports. These included _Neuroscience – for Project Success Why people behave as they do_ by Carole Osterweil and our report on _Project Management in post-conflict and disaster zones._
Our publications are also available on the RNIB Bookshop, where learners with a visual disability can access large print and braille books free of charge.
We also worked closely throughout the year with Crossrail to publish a Learning Legacy journal. The journal is a collection of six papers sharing lessons from Crossrail - one of Europe’s largest engineering projects. As an official learning legacy partner, APM was responsible for reviewing the content and publishing the findings.
## **ChPP review**
Throughout 2022/23 we revised our Chartered Project Professional standard. The revision enables ChPP status to remain relevant, accessible and an aspirational benchmark for project professionals within the workplace. It does this by:
- aligning to the _APM Competence Framework 3rd edition;_
- featuring a mix of mandatory and elective competencies;
- developing accessible materials and making improvements to the user experience.
## **Project Management Qualification review**
Throughout 2022/23 we invested in research to explore how we can ensure our Project Management Qualification can continue to support our profession and what the next generation looks like.
This has involved a wide variety of stakeholder engagement and consultation panel exercises to gain the best possible insight from across the profession.
We end the year with a rich set of data and insights from a myriad of stakeholder groups to support our ongoing decision making and pilot stages throughout 2023/24.
Annual report and accounts 2022/23
17
## **Achievements and successes (continued)**
## **APM Mentoring**
Our APM Mentoring Programme has now been live for over 12 months and continues to support hundreds of people, enabling mentors drawn from APM’s global membership to support and guide people in the early stages of their career, returning to work or who are new to the project profession.
We now have 237 working pairs with 268 mentors registered after one year of being available to members.
To build awareness, we held a series of webinars during the year to bolster adoption of the programme and promoted its availability as a member benefit through ongoing marketing activity.
## **An outstanding professional body**
## **APM 50th anniversary**
2022 was our 50[th] anniversary. To mark the occasion, we undertook a series of activities which included _50 Projects for a Better Future_ , a showcase of the 50 most inspiring projects from the past 50 years, all of which have had a positive and transformative impact on society, the economy and environment.
More than 600 projects - from across the fields of construction and engineering, technology, healthcare, education, sports and nature, arts and media - were nominated for inclusion by a panel made up of APM members, APM branch representatives, board members and industry experts. _The 50 Projects for a Better Future list_ was published on our website and a hardback book was also produced and distributed.
Other activity included a consumer news story based on a survey of 2,000 people about career progression and the power of ‘hidden skills’ (including project management skills) to unlock opportunities for advancement. The survey generated 31 pieces of media coverage, including coverage in _The Sun, The Independent_ and _The Daily Express_ , among others.
## **Rebranding APM**
On 31 October 2022 we unveiled a new brand identity, including a new logo. This was the culmination of a complete brand refresh to reflect how the organisation has evolved since its previous brand was introduced.
Designed by creative agency Frank, Bright & Abel, the new logo represents our continued commitment to the project profession through the delivery of professional services and resources to our members, along with our Corporate Partners and the wider project community.
The new brand identity includes the new tagline: ‘Because when projects succeed, society benefits’, which reflects the power of projects to make the world a better place.
We’ve received a lot of positive feedback from our stakeholders and the new brand has been well embedded across our organisation and events.
## **Launch of digital badge for volunteers**
In February 2023 we launched a new digital badge for our volunteers that recognises the valuable contributions they make and raises their profile across the profession. We also published a new webpage to highlight the vast number of opportunities there are for people to get involved with volunteering at APM.
Both initiatives were built in response to an ongoing volunteer review that’s set to ensure our volunteering programme is fit for the coming years.
To date, nearly 900 volunteer digital badges have been issued.
Annual report and accounts 2022/23
18
## **Achievements and successes (continued)**
## **Awards and other achievements**
## **Best Companies two-star rating**
We have now achieved a two-star Best Companies rating. This represents ‘Outstanding’ levels of workplace engagement and continual improvement from our 2022 score, which gained a ‘very good’ one-star rating. The Best Companies score is an accreditation framework that represents employee engagement and the very best companies to work for in the UK. The rating is calculated following a survey that all APM staff are invited to complete. Our overall survey response rate was 90%. A donation of £1.50 per response to the Motor Neuron Disease Association (MNDA) was made, resulting in a donation of £151.50.
## **Association Excellence Awards**
In October 2022 our Corporate Partnership Programme took first prize at the Association Excellence Awards. The judges commented: “This was a very strong partnership demonstrating effectiveness.” In addition, _Project,_ APM's quarterly journal, won a Bronze award in the category of ‘Best Association Newsletter, Blog, Online or Physical Publication (circulation over 20,000)’.
The 2021 APM Project Management Awards were also shortlisted in the ‘Best Association Virtual or Hybrid Event’ category.
## **Memcom Awards**
In addition to the Association Excellence Awards, we were proud to be shortlisted in two categories at the annual Memcom Awards, which recognise innovation and creativity among professional bodies, membership associations and not-for-profit organisations. These were Best Celebration Event of the Year (for the APM Project Management Awards 2021) and Membership Organisation Team of the Year (for our Membership and Business Development Team).
## **Diversity, Equity, Inclusion and Belonging (DEIB)**
As the only chartered organisation for the project profession, it’s vital for us to continue working to promote, engage and champion diversity across the profession. In 2022 we published our Diversity and Equality policy online to make our goals more visible to the public and to increase confidence in our commitment to DEIB.
Our volunteer community supported this work throughout 2022/23. We’re grateful to them for their contribution of blogs that cover important topics like mental health, neurodiversity and inclusion, to name just a few. Our branch network ramped up its DEIB activity, both online and at physical events, and this has been well received.
We also celebrated diversity at our flagship events by welcoming experts in their field to share their knowledge. Several such sessions were held at our 2022 WiPM Conference.
At APM we believe a diverse, empowered workforce gives us different ways of thinking, a more successful business, and better places for us all to work. This extends to our trustees who have a wide variety of backgrounds as well as disparate life and work experiences. The diverse nature of our trustees supports our commitment to provide equal opportunities, promoting fairness and respect, and showing zero tolerance for discrimination. We were pleased to welcome two new board members in November: Bel French ChPP and Sheilina Somani ChPP FAPM.
Annual report and accounts 2022/23
19
## **Plans for the future**
In 2022 we launched our new strategy, _Delivering a Better Future._ This provides a roadmap for APM, showing how we will continue to innovate, adapt and build on current strengths, and it reflects our role and responsibilities as the chartered body for the project profession.
During 2022/23, we undertook a range of initiatives that form the foundations to some of our future plans. These included reviews of our chartered standard, our volunteer relationship and our accreditation model for training providers. We will start to implement enhancements to these areas in 2023/24.
In our endeavour to be an outstanding organisation, we will also be completing some internal changes, including the implementation of our CRM system and enhancing our insights function. We will review our product portfolio to ensure that we remain relevant to all our stakeholders including current and potential individual and corporate members, students and the wider profession. We will continue to enhance the voice of the profession by increasing our presence in political and other fields.
Working closely with education providers, corporate and public organisations, we will continue to grow the community of Chartered Project Professionals who drive excellence in the design, delivery and control of change.
We have already made commitments to sustainability, and we will build on these, both internally and as a leader for the profession. We will help project practitioners understand their impact on sustainability, so that they can incorporate it into their projects that meet the needs of the current generation without compromising future ones.
Project professionals have always had to be adaptive, but a lot has changed in recent years. Economic changes, Brexit, the COVID-19 pandemic and geo-political uncertainty have thrown the need to be adaptable into sharp focus. Above all, we remain committed to innovate, adapt and embrace change so that we can provide clear, consistent leadership and continue to help the project profession deliver better.
Annual report and accounts 2022/23
20
## **Principal risks and uncertainties**
The board has considered several strategic risks during the year, including those below, together with possible impacts and mitigating strategies.
||||
|---|---|---|
|**Risk**
**category**|**Risk**|**Mitigating strategy/assurance/controls**|
||||
|Governance|Diversity in board, committee or
volunteer roles is not delivered
leading to a lack of diversity of
thought and fresh ideas.|Promotion of vacancies invites applications from
diverse backgrounds and sectors and the ability to
appoint five trustees provides an opportunity to target
broadening diversity.
There is a limit on the maximum term of office for
trustees and committee appointments which sends the
message that new ideas are helpful to balance
continuity.
The APM board has agreed a diversity action plan to
help drive better understanding and representation
across the project profession.|
|Operational|Business continuity - an event
limits APM’s ability to operate.
This may arise from fire, flood,
adverse weather, IT failure or
denial of service attack, media
crisis/reputational threat,
epidemic/pandemic, etc.|Business continuity and disaster recovery plans are in
place, reviewed and tested. An internal audit took place
in 2023 and found significant assurance in this area.
Tools and approaches for remote working are
embedded.
IT controls are in place and have been strengthened
during the year. Standard insurance cover is held.|
|Operational|IT security/GDPR - a malicious IT
attack or malware infection leads
to data loss. Failure of internal
controls, including significant
GDPR breach results in loss of
personal data, leading to financial
penalties and reputational
damage.|Annual IT security penetration testing is undertaken.
Anti-malware is deployed, and web and email filtering
are applied.
There are mandatory operating system updates applied
across end user devices and backups are in place for
all systems.
A data protection consultant has reviewed data
protection approaches and policies. A data protection
officer is in place. Data protection training is mandatory
for all staff.
An internal audit took place in 2022 and found
significant assurance in this area.|
|Operational|Third-party failure - a key
software system or partner fails
leading to financial or reputation
issues.|ICT systems planning and supplier management is in
place.
Disaster recovery and business continuity plans are in
place.|
Annual report and accounts 2022/23
21
## **Principal risks and uncertainties (continued)**
||||
|---|---|---|
|**Risk**
**category**|**Risk**|**Mitigating strategy/assurance/controls**|
||||
|External|Economic conditions - actual or
threatened recession leads to
reduced investment across
government and economy as a
whole.
Reduced investment in projects
and/or budgets for training and
memberships.|APM works with partners to make the case for project
management being especially vital in such
circumstances e.g._Golden Thread_research.
The Chartered standard provides confidence in
delivery and use of resource.
APM continues to improve evidence of value for each
stakeholder group.|
|Financial|There is a failure to manage
reserves appropriately and
maintain funds at an appropriate
level. Either reserves become
excessive (failure to deliver value
to members) or inadequate funds
limits ability to deliver the APM
strategy.|A risk-based reserves policy is in place.
Diversification is maintained through cash and long-
term investment.
There is regular reporting to the board to inform
evidence-based decision-making.
Business planning includes long term cash flow
forecasting and reserves projections.|
|Compliance|There is a failure of systems or
processes to adhere to
acceptable standards and/or
regulatory requirements. For
example, corporate governance,
financial regulations, health and
safety, bribery act, IR35.|The policy register is regularly reviewed and there are
policy controls in place.
APM has qualified and experienced staff in place to
address areas of compliance.
The organisation is subject to external and internal
audit. An internal audit of financial controls took place
in 2022 and found significant assurance in this area.
Annual board evaluation exercises are undertaken
and trustees carry out regular training.
There are robust regulations and board governance -
delegations are clear and in operation.
H&S practices reflect home working arrangements.|
Annual report and accounts 2022/23
22
## **Financial review**
## **Overview**
In line with our aims, 2022/23 was another year of growth for APM, with turnover increasing by 23% to £13.8m (£11.2m prior year). The deficit for the year was £490k against a prior year surplus of £189k, including an investment loss of £61k (gain £311k). This was a planned deficit, investing in our new strategy that will benefit our members and the profession.
Membership revenue grew by 5%, with qualification and contractual income 32% higher than last year.
Net assets at 31 March 2023 were £6.0m (£6.5m).
## **Income**
Subscription income from individual members and corporate partners increased by 5% to £4.8m. Individual membership numbers increased to a record high of to 44,241 with student member numbers growing by 22% to over 16,000 and international membership accounting for 6% of the total. Retention also increased.
Examination and other contractual income increased from £5.9m to £7.8m, an increase of 32% on the prior year. Revenue has returned to pre-Covid levels, with the number of exams taken up 11% on 2019/20 and a third higher than last year. The APM Project Management Qualification (PMQ) continues to be the lead contributor to examination revenues.
As we returned to a full programme of in person events, event income increased by 116% to £427k. This was buoyed by our 50[th] celebrations.
APM invests funds not required for working capital in an investment portfolio managed by a professional investment manager. Funds are actively managed and allocated across a range of asset types designed to yield the required rate of return for an acceptable level of risk. Returns are measured over a five to seven-year term rather than on a year-on-year basis, with volatility expected within certain limits. Losses in 2022/23 were £61k (1% of funds) against a gain of £311k in the previous year. 2022 was recognised as a difficult and unusual year due to the impact of the war in Ukraine, continued high cost of fuel and rising inflation. As inflation starts to normalise, performance is expected to stabilise.
Bank interest on deposits and dividends reinvested into the portfolio doubled on the prior year at £54k.
## **Expenditure**
The Charities Accounting Statement of Recommended Practice (SORP) requires expenditure to be analysed into the same categories as the income described above. The expenditure is detailed in note 4 on page 39.
Total costs grew during the year from £11.3m to £14.2m, an increase of £2.9m (26%). Costs were impacted by both growth and inflationary price increases, particularly in staff support costs including recruitment. Investment was made in professional staff to deliver the new strategy, with an increase in the average headcount to 130 from 112.
Note: Percentage variances are calculated from the full financial results rather than the rounded figures contained in this review.
Annual report and accounts 2022/23
23
## **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).
Charity law 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 the group and of the incoming resources and application of resources of the charitable group for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
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. 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 maintenance and integrity of the corporate and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
In so far as the trustees are aware:
- there is no relevant audit information of which the charity’s auditor is unaware; and
- the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
## **Auditor**
Buzzacott LLP has expressed its willingness to remain in office as auditor of the charity.
The trustees’ annual report is approved by the trustees of the Association.
Signed on behalf of the trustees
Milla Mazilu, Board Chair
24 July 2023
Annual report and accounts 2022/23
24
## **Independent auditor’s report to the trustees of the Association for Project Management**
## **Opinion**
We have audited the financial statements of Association for Project Management (‘the charity’) and its subsidiary (together, ‘the group’) for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities and its subsidiary (the ‘group’), the Consolidated and Association Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘The Financial Reporting Standard Applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the group’s and the parent charity’s affairs as at 31 March 2023 and of the group’s income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006 and the Charities 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 Auditor’s Responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Conclusions relating to going concern**
In auditing the financial statements, we have concluded that the 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 group and parent charitable company'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.
## **Other information**
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Annual report and accounts 2022/23
25
## **Independent auditor’s report to the trustees of the Association for Project Management (continued)**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:
- the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
- the charitable parent company has not kept adequate accounting records; or
- the financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we required for our audit.
## **Responsibilities of trustees**
As explained more fully in the trustees’ responsibilities statement set out on page 24, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent company’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 group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
## **Auditor’s responsibilities for the audit of the financial statements**
The trustees have elected for the financial statements to be audited in accordance with the Charities Act 2011 rather than the Companies Act 2006. Accordingly we have been appointed as auditors under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of 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 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 is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; and
Annual report and accounts 2022/23
26
## **Independent auditor’s report to the trustees of the Association for Project Management (continued)**
- we obtained an understanding of the legal and regulatory frameworks that are applicable to the charity and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011) and those that relate to data protection (General Data Protection Regulation).
We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions; and
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- reading the minutes of meetings of those charged with governance; and
- enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify noncompliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Annual report and accounts 2022/23
27
## **Independent auditor’s report to the trustees of the Association for Project Management (continued)**
## **Use of our report**
This report is made solely to the charity's trustees, as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011. Our audit work has been undertaken so that we might state to the company’s members 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 any party other than the charity and charity's trustees as a body, for our audit work, for this report, or for the opinion we have formed.
Hugh Swainson (Senior Statutory auditor) For and on behalf of Buzzacott LLP, Statutory Auditor
130 Wood Street London EC2V 6DL Date: 31 July 2023
Buzzacott LLP is eligible to act as auditor in terms of Section 1212 of the Companies Act 2006.
Annual report and accounts 2022/23
28
## **Consolidated statement of financial activities**
## **For the year ended 31 March 2023**
|**Notes**
**Income:**
Income from charitable activities:
Subscriptions
Examination and other contractual income
Publications
Income from other trading activities:
Events
Investment income
10
Total income
2
**Expenditure:**
Expenditure on charitable activities
4
Expenditure on raising funds:
Events
Investment management costs
Total expenditure
Net expenditure before (losses)/gains on investments
Net (losses)/gains on investments
12
**Net (expenditure)/income and net movement in**
**funds for the year**
7
Reconciliation of funds
Total funds brought forward
Total funds carried forward|**Total funds**
**2023**
**£**
4,818,994
7,779,686
678,712
427,476
54,159
13,759,027
13,254,217
910,335
23,499
14,188,051
(429,024)
(61,001)
(490,025)
6,512,028
6,022,003|**Total funds**
**2022**
**£**
4,593,039
5,902,413
465,622
198,163
27,523|
|---|---|---|
|||11,186,760|
|||10,793,201
497,487
18,342|
|||11,309,030|
|||(122,270)
311,227|
|||188,957|
|||6,323,071|
|||6,512,028|
APM has no restricted funds. All of the above results are derived from continuing activities. The group has no recognised gains or losses other than those dealt with in the statement of financial activities.
The notes on pages 33 to 52 form part of these financial statements.
Annual report and accounts 2022/23
29
## **Consolidated balance sheet**
## **As at 31 March 2023**
|**Notes**
**Fixed assets**
Intangible fixed assets
11
Tangible fixed assets
11
Investments
12|
**£**|**2023**
**£**
1,013,077
625,222
4,759,626|
**£**|**2022**
**£**
881,552
649,270
4,782,136|
|---|---|---|---|---|
||||||
||||||
||||||
|||6,397,925||6,312,958|
|**Current assets**
Investments
13
Stocks
14
Debtors
15
Cash at bank and in hand|||||
||1,736,715
33,609
1,704,146
1,110,761||480,424
20,799
1,266,555
2,693,994||
||||||
||||||
||||||
||4,585,231||4,461,772||
|**Liabilities**
Creditors: amounts falling due within
one year
16
**Net current assets**
**Total assets less current liabilities**
Provisions for liabilities
17
**Net assets**
**The funds of the charity:**
Unrestricted income fund-designated
18
Unrestricted income fund-general
19|||||
||(4,474,191)||(3,599,489)||
|||111,040||862,283|
|||6,508,965
(486,962)||7,175,241
(663,213)|
||||||
|||6,022,003||6,512,028|
||||||
|||1,638,300
4,383,703||1,530,822
4,981,206|
||||||
|||6,022,003||6,512,028|
The notes on pages 33 to 52 form part of these financial statements.
Approved by the board of trustees on 24[th] July 2023 and signed on its behalf by:
Milla Mazilu, Board Chair **Incorporated by Royal Charter RC000890**
Annual report and accounts 2022/23
30
## **Association balance sheet**
## **As at 31 March 2023**
|**Notes**
**Fixed assets**
Intangible fixed assets
11
Tangible fixed assets
11
Investments
12|**£**|**2023**
**£**
1,013,077
625,222
4,759,626|**£**|**2022**
**£**
881,552
649,270
4,782,136|
|---|---|---|---|---|
||||||
||||||
||||||
|||6,397,925||6,312,958|
|**Current assets**
Investments
13
Stocks
14
Debtors
15
Cash at bank and in hand|||||
||1,736,715
33,609
1,823,279
986,453||480,424
20,799
1,443,566
2,626,508||
||||||
||||||
||||||
||4,580,056||4,571,297||
|**Liabilities**
Creditors: amounts falling due within
one year
16
**Net current assets**
**Total assets less current liabilities**
Provisions for liabilities
17
**Net assets**
**The funds of the charity:**
Unrestricted income fund-designated
18
Unrestricted income fund-general
19|||||
||(4,469,016)||(3,684,091)||
|||111,040||887,206|
|||6,508,965
(486,962)||7,200,164
(663,213)|
||||||
|||6,022,003||6,536,951|
||||||
|||1,638,300
4,383,703||1,530,822
5,006,129|
||||||
|||6,022,003||6,536,951|
The notes on pages 33 to 52 form part of these financial statements.
Approved by the board of trustees on 24[th] July 2023 and signed on its behalf by:
Milla Mazilu, Board Chair **Incorporated by Royal Charter RC000890**
Annual report and accounts 2022/23
31
## **Consolidated cash flow statement**
## **For the year ended 31 March 2023**
|**2023**
**Notes**
**£**
**Net cash provided by operating activities**
A
412,163
Cash flows from investing activities:
Return on investment and servicing of finance
Investment income
54,159
Purchase of fixed assets
(754,772)
Acquisition of long-term investments
(576,837)
Proceeds from sale of investments and decrease in cash held within
investments
538,345
Net cash used in investing activities
(739,105)
Change in cash and cash equivalents
(326,942)
Cash and cash equivalents at the beginning of the reporting period
3,174,418
Cash and cash equivalents at the end of the reporting period
2,847,476
Analysis of cash and cash equivalents:
Cash in hand
1,110,761
Notice deposits
1,736,715
2,847,476
**Note A**
**Reconciliation of expenditure to net cash flow from operating activities**
Net expenditure for the year
(490,024)
Investment income
(54,159)
Loss/(gains) on investment activities
61,001
Profit on disposal/reclassification
-
Depreciation and amortisation
647,295
(Increase)/decrease in stock
(12,810)
(Increase) in debtors
(437,591)
Increase/(decrease) in creditors
698,451
**Net cash provided by operating activities**
412,163|**2022**
**£**
461,684
27,523
(535,675)
(868,249)
841,425|
|---|---|
||(534,976)
(73,292)
3,247,710|
||3,174,418|
||2,693,994
480,424|
||3,174,418|
||188,957
(27,523)
(311,227)
68,666
769,636
3,583
(167,573)
(62,835)|
||461,684|
No separate reconciliation of net debt has been prepared as there is no difference between the net cash (debt) of the charity and the above cash and cash equivalents.
Annual report and accounts 2022/23
32
## **Notes to the financial statements**
Association for Project Management is a registered charity (number 1171112) and incorporated by Royal Charter (RC000890). The registered office is Ibis House, Regent Park, Summerleys Road, Princes Risborough, Buckinghamshire HP27 9LE.
Ibis Trading Limited is a wholly owned subsidiary of the Association for Project Management and is a limited company registered in England and Wales (number 06536096). The registered office is Ibis House, Regent Park, Summerleys Road, Princes Risborough, Buckinghamshire HP27 9LE.
## **1. Accounting policies**
## **Basis of preparation**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Charities Act 2011.
Association for Project Management meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
These accounts are prepared in sterling which is the functional currency of the charity and rounded to the nearest pound.
## Preparation of the accounts on a going concern basis
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 Association and group to continue as a going concern for the foreseeable future. In reaching their conclusion, trustees have taken account of the Association’s operating environment, current and expected future financial performance, reserves, liquidity, and the ability to draw down on investments. Operating and financial performance through the COVID-19 pandemic has also demonstrated APM’s resilience. On this basis the trustees consider that there are no material uncertainties regarding the Association and group’s ability to continue in operational existence for the foreseeable future, and for this reason they continue to adopt the going concern basis in preparing the annual financial statements.
Annual report and accounts 2022/23
33
## **Accounting policies (continued)**
## **Group financial statements**
These financial statements consolidate the results of the charity and its wholly owned subsidiary Ibis Trading Limited on a line-by-line basis.
Information in respect to the charitable parent company is as follows:
|Gross income
Surplus/(Deficit) for the year|**2023**
**2022**
**£**
**£**
13,729,473
11,470,452
(514,949)
167,797|
|---|---|
No separate statement of financial activities has been presented for the Association alone as permitted by Section 408 of the Companies Act 2006.
## **Unrestricted funds**
Unrestricted funds are donations and other income receivable or generated for the objects of the charity without further specified purpose and are available as general funds. All funds are unrestricted during the year and at the year end.
## **Designated funds**
Designated funds are unrestricted funds earmarked by the board of trustees for particular purposes.
## **Restricted funds**
Restricted funds are to be used for specific purposes as specified by the donor. Expenditure which meets these criteria is charged to the fund. The charity currently has no restricted funds.
## **Income (including subscriptions, examination fees, contributions, grants, donations, contractual services and investment income)**
Recognition of membership income: members’ subscriptions are spread equally over 12 months following receipt, on the assumption that this is a fair reflection of the period over which value is provided to the member.
Subscription income represents amounts receivable during the year. Subscriptions are receivable from members annually.
Fees receivable for services are accounted for in the period in which the service is provided.
Income from delegate fees and sponsorship for events is recognised in the period in which the event occurs.
Investment income is recognised in the accounts when it is receivable.
Income represents amounts receivable net of VAT and discounts.
Voluntary income represents donations which are recognised in the accounts in the period they are received.
All income is recognised as receivable when there is legal entitlement to the income, probability of receipt and amounts can be measured reliably.
Annual report and accounts 2022/23
34
## **Accounting policies (continued)**
## **Expenditure (including allocation of expenditure)**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Resources expended include attributable VAT in the instances that it cannot be recovered.
Costs of raising funds are those costs incurred for holding a variety of events on project, programme and portfolio management and related fields.
The resources expended on charitable activities comprise direct costs associated with subscriptions, examinations and publications, together with a share of the support costs.
Support costs are the costs of central and administrative functions and governance costs, which are allocated to activity cost categories as detailed in the cost allocation note below.
Governance costs relate to the governance arrangements of the Association including the costs relating to strategic management, constitutional and statutory requirements.
## **Cost allocation**
Overhead and support costs have been allocated on the following basis to charitable activities and cost of raising funds:
|||||
|---|---|---|---|
||Description||Method of apportionment|
|
|Depreciation
Finance
Information technology
Other support staff
Office costs
Governance costs||Apportioned in relation to income
Apportioned in relation to income
Apportioned in relation to income
Apportioned in relation to income/expenditure
Apportioned in relation to income
Apportioned in relation to income|
## **Intangible fixed assets**
Intangible fixed assets are stated at cost less amortisation. Amortisation is provided at rates calculated to write off the cost of each asset over its expected useful life as follows:
|||
|---|---|
|Computer software costs|33.33% straight line|
|Customer relationship management system
20% straight line
Publications
33.33% straight line
Qualifications and other intangible assets
33.33% straight line||
Expenditure below £1,000 is written off in the year of purchase.
Intangible fixed assets include software licences, website and e-learning development costs and the costs of producing new APM qualifications and the APM Body of Knowledge 7th edition which have been capitalised on the grounds that they underpin APM’s examination syllabuses, and that they have an economic life beyond 12 months. E-learning and certain website development costs are capitalised on the basis that they aid and assist members taking qualifications and as such are enduring assets which will assist in the creation of future revenue. The work undertaken by APM’s digital partner is analysed by sprint and only classified as capital expenditure where this will form part of an enduring asset, with the remainder expensed.
Annual report and accounts 2022/23
35
## **Accounting policies (continued)**
## **Tangible fixed assets**
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Leasehold improvements and dilapidations Over the life of the lease, straight line Furniture and equipment 25% straight line Computer equipment 33.33% straight line
Expenditure below £1,000 is written off in the year of purchase.
## **Stocks**
Stocks are stated at the lower of cost and net realisable value, after making allowance for obsolete and slow-moving items.
## **Foreign currency**
Foreign currency transactions are recorded at the exchange rate at the time of the transaction. Foreign currency balances are translated into sterling at the exchange rate at the balance sheet date. Resulting gains or losses are included in the Statement of Financial Activities (SOFA).
## **Operating leases**
The cost of operating leases is charged to the SOFA over the period to which they relate.
## **Pension costs**
APM operates a funded defined contribution pension scheme. Contributions to the scheme are charged to the SOFA in the period to which they relate. The scheme is open to all eligible APM staff.
## **Cash and cash equivalents**
Includes cash and short-term liquid investments with a maturity date of three months or less from the date of acquisition or the opening of the deposit/investment account.
## **Financial instruments**
APM has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments. Basic financial instruments are recognised initially at transaction value and subsequently at their settlement value. Financial instruments are recognised in the balance sheet when the Association 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, deferred income and amounts due to or from HMRC, all other debtor and creditor balances are considered to be basic financial instruments under FRS 102. See notes 15, 16 and 17 for the debtor and creditor notes.
Annual report and accounts 2022/23
36
## **Accounting policies (continued)**
## **Fixed asset investments**
Investments are stated at market value at the balance sheet date. The SOFA includes the net gains and losses on revaluation and disposals throughout the year.
## **Judgments and key sources of estimation uncertainty**
In the application of the Association’s accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The most significant estimates and assumptions which affect the carrying amount of assets and liabilities in the accounts relate to:
- useful economic lives: the annual depreciation charge for property, plant and equipment and the annual amortisation charge for intangible assets is sensitive to change in the estimated useful economic lives and residual value of assets. These are reassessed annually and amended where necessary to reflect current circumstances;
- allocation of membership income on a time apportioned basis which results in an estimation of deferred income carried forward at each balance sheet date;
- dilapidations provision for leased premises due at the end of the leases;
- estimation of the appropriate proportion of IT expenditure to capitalise as intangible fixed assets;
- estimation of future income and expenditure flows for the purpose of assessing going concern.
Annual report and accounts 2022/23
37
## **2. Income**
All income from charitable activities was derived from the provision of services, with the exception of income from publications of £678,712 (2022: £465,622).
Interest income received was £15,669 (2022: £700). Dividend income from investments was £38,490 (2022: £26,823).
## **3. Governance costs**
|||||
|---|---|---|---|
||**2023**||**2022**|
|Staff costs
Audit and legal fees
Cost of trustee meetings, travel and support|**£**
201,529
36,566
20,394
258,489||**£**
181,643
22,735
29,013|
||||233,391|
Staff costs contain a proportion of executive time in addition to the company secretarial function.
The costs of £258k (2022: £233k) above are representative of total governance costs of which £8,063 (2022: £4,147) were apportioned to raising funds. The remainder were apportioned to charitable activities (note 6).
Annual report and accounts 2022/23
38
## **4. Breakdown of expenditure on charitable activities**
|**Activities**
**undertaken**
**directly**
**2023**
**£**
Membership subscriptions
3,101,176
Examination and other fees
2,462,735
Publications
588,775
Research & development projects
518,591
6,671,277
**2022**
Membership subscriptions
2,229,386
Examination and other fees
1,938,955
Publications
547,575
Research & development projects
392,135
5,108,051
**Total support cost breakdown by activity**
**Staff**
**costs**
**2023**
**£**
Expenditure on raising funds
113,034
Charitable activities
3,510,842
3,623,876
**2022**
Expenditure on raising funds
47,882
Charitable activities
2,648,496
2,696,378|**Support**
**costs**
**£**
2,389,261
3,857,173
336,506
-
6,582,940
(Note 6)
2,382,259
3,061,389
241,502
-
5,685,150
(Note 6)
**Other**
**costs**
**£**
98,909
3,072,098
3,171,007
54,899
3,036,654
3,091,553|**Total**
**£**
5,490,437
6,319,908
925,281
518,591|
|---|---|---|
|||13,254,217|
|||4,611,645
5,000,344
789,077
392,135|
|||10,793,201|
|||**Total**
**£**
211,943
6,582,940|
|||6,794,883|
|||102,781|
|||5,685,150|
|||5,787,931|
**5. Total support cost breakdown by activity**
,
Annual report and accounts 2022/23
39
## **6. Support cost apportionment**
## **Charitable activities**
|**Membership**
**subscriptions**
**Examination**
**and other fees**
**2023**
**£**
**£**
Depreciation
227,606
367,442
Finance
226,496
365,651
Information technology
361,325
583,315
Support staff costs
1,274,251
2,057,124
Office costs
208,692
336,908
Governance costs
90,891
146,733
Total
2,389,261
3,857,173
(Note 4)
(Note 4)
**2022**
Depreciation
308,825
396,864
Finance
249,576
320,724
Information technology
406,512
522,400
Support staff costs
1,109,804
1,426,185
Office costs
211,480
271,769
Governance costs
96,062
123,447
Total
2,382,259
3,061,389
(Note 4)
(Note 4)
**Net income/(expenditure) for the year**
This is stated after charging:
Depreciation and amortisation of fixed assets
Operating lease payments - premises
Auditor’s renumeration - current year
Auditor’s remuneration - prior year under provision
Auditor’s remuneration for non-audit services|**Publications**
**£**
32,056
31,900
50,889
179,467
29,393
12,801
336,506
(Note 4)
31,307
25,301
41,210
112,507
21,439
9,738
241,502
(Note 4)
**2023**
**£**
647,293
197,656
23,000
2,176
3,200|**Total**
**£**
627,104
624,047
995,529
3,510,842
574,993
250,425|
|---|---|---|
|||6,582,940|
|||(Note 4)
736,996
595,601
970,122
2,648,496
504,688
229,247|
|||5,685,150|
|||(Note 4)
**2022**
**£**
769,634
187,580
20,000
2,624
1,250|
**7. Net income/(expenditure) for the year**
This is stated after charging:
Annual report and accounts 2022/23
40
## **8. Staff costs and numbers**
|Wages and salaries
Social security costs
Pension costs
Private medical insurance
Group life assurance|**2023**
**£**
5,708,200
533,284
382,491
56,315
19,017
6,699,307|**2022**
**£**
4,559,230
388,455
335,650
41,040
14,466|
|---|---|---|
|||5,338,841|
Included in the above are redundancy and termination payments in the year amounting to £53,784 (2022: £0).
The number of employees whose emoluments fell into the following bands were:
||**2023**|**2022**|
|---|---|---|
|£60,001 - £70,000|6|5|
|£70,001 - £80,000|7|6|
|£80,001 - £90,000|5|4|
|£90,001 - £100,000|1|-|
|£110,001 - £120,000|-|1|
|£120,001 - £130,000|1|-|
|£140,001 - £150,000|1|-|
The above staff have retirement benefits accruing under defined contribution schemes at a cost of £83,593 (2022: £102,941) to APM.
Key management personnel are deemed to be the Chief Executive, the Deputy Chief Executive as well as the trustees who are not remunerated.
Pay and benefits including pension and employer national insurance contributions to key management personnel who have held the positions in the year amounted to £323,608 (2022: £260,134).
|Average employee numbers:
Business development and marketing
Customer services
Office and administration|**2023**
59
32
39
130|**2022**
48
28
36|
|---|---|---|
|||112|
Annual report and accounts 2022/23
41
## **9. Taxation**
The activities of the charity and its trading subsidiary are exempt from corporation taxation under section 505 of the Income and Corporation Taxes Act 1988 to the extent that they are applied to the organisation’s charitable objects. The trading subsidiary does not pay UK corporation tax as its taxable profits are paid to its charitable holding company as gift aid.
## **10. Investment income**
|**Investment income**||||
|---|---|---|---|
|||||
||**2023**||**2022**|
|Bank interest
Income from investments|**£**
15,669
38,490
54,159||**£**
700
26,823|
||||27,523|
Annual report and accounts 2022/23
42
## **11. Fixed assets**
## **Intangible fixed assets - group and Association**
|**Cost**
At 1 April 2022
Additions
Disposal
At 31 March 2023
**Amortisation**
At 1 April 2022
Charge for the year
Disposal
At 31 March 2023
**Net book value**
At 31 March 2023
At 31 March 2022|**Computer**
**software**
**Customer**
**relationship**
**management**
**system**
**Publications**
**Qualifications**
**Work in**
**progress**
**Total**
**£**
**£**
**£**
**£**
**£**
**£**
2,043,834
383,430
622,412
853,640
-
3,903,316
309,600
-
-
3,000
316,469
629,069
(376,282)
-
(418,107)
(301,833)
-
(1,096,222)|
|---|---|
||1,977,152
383,430
204,305
554,807
316,469
3,436,163|
||1,361,232 378,703
581,978
699,851
-
3,021,764
364,691
920
20,252
111,681
-
497,544
(376,282)
-
(418,107)
(301,833)
-
(1,096,222)|
||1,349,641
379,623
184,123
509,699
-
2,423,086|
||627,511
3,807
20,182
45,108
316,469
1,013,077|
||682,602
4,727
40,434
153,789
-
881,552|
Annual report and accounts 2022/23
43
## **11. Fixed assets (continued)**
## **Tangible fixed assets - group and Association**
|**Cost**
At 1 April 2022
Additions
Disposals
At 31 March 2023
**Depreciation**
At 1 April 2022
Charge for the year
Disposals
At 31 March 2023
**Net book value**
At 31 March 2023
At 31 March 2022|**Leasehold**
**improvements &**
**dilapidations**
**Furniture &**
**computer**
**equipment**
**Total**
**£**
**£**
**£**
863,552
650,943
1,514,495
23,750
101,953
125,703
(3,513)
(343,825)
(347,338)|
|---|---|
||883,789
409,071
1,292,860|
||282,921
582,304
865,226
100,801
48,950
149,751
(3,513)
(343,825)
(347,338)|
||380,209
287,429
667,638|
||503,580
121,642
625,222|
||580,631
68,638
649,269|
Annual report and accounts 2022/23
44
## **12. Fixed asset investments**
## **Movement in fixed asset investments**
|Investment portfolio
Market value brought forward
Acquisitions at cost
Less disposal proceeds
Realised (losses)/gains on disposal
Unrealised (losses)/gains on investments
Market value carried forward
Historical costs
**Geographical analysis**
United Kingdom investments
Overseas investments
**Total investments**
Listed investments
Cash held by investment fund manager
Total - group
**Asset allocation**
Equity
Bonds
Other
Fund cash (includes cash held within investments)|**2023**
**2022**
**£**
**£**
4,700,018
4,435,213
576,837
868,249
(595,014)
(914,671)
31,061
32,243
(92,062)
278,984|
|---|---|
||4,620,840
4,700,018|
||3,980,293
4,051,173|
||681,732
1,249,265
3,939,108
3,450,753|
||4,620,840
4,700,018|
||4,620,840
4,700,018
138,786
82,118|
||4,759,626
4,782,136|
||**2023**
**2022**
54%
58%
17%
9%
22%
27%
7%
6%|
Cash is held for investment pending suitable market conditions.
Annual report and accounts 2022/23
45
## **12. Fixed asset investments (continued)**
The following investments comprise significant holdings in the portfolio:
|**Investments**
Findlay Park
Liontrust special situations
Lumyna
TB Evenlode
Guardcap Global Equity
Fundsmith Equity
Trojan funds
Invesco
Investment in subsidiary
Ibis Trading Limited|**Group**
**2023**
**£**
-
-|**Holding**
**(units)**
**Value**
**£**
2,580
341,413
69,691
332,925
1,668
310,273
122,277
309,825
23,597
272,766
57,415
270,789
77,578
242,556
1,547
238,950
**Group**
**Company**
**2022**
**2023**
**£**
**£**
-
1
-
1|**%**
7.2
7.0
6.5
6.5
5.7
5.7
5.1
5.0
**Company**
**2022**
**£**
1|
|---|---|---|---|
||||1|
The Association owns all of the issued share capital of Ibis Trading Limited, a company registered in England and Wales. The subsidiary is used for sponsorship and made a profit of £66,905 (2022: £21k) before gift aid of £41,982 (2022: £nil to APM on income of £154,177 (2022: £95k). Ibis Trading was incorporated on 17 March 2008 and commenced trading on 27 July 2009. All activities have been consolidated line by line in the SOFA. The total net assets were £1 (2022: liabilities of £24,922).
## **13. Current asset investments**
|Notice deposits less than three months
Notice deposits more than three months|**Group**
**2023**
1,132,999
603,716
1,736,715|**Group**
**2022**
378,414
102,010
480,424|**Company**
**2023**
1,132,999
603,716
1,736,715|**Company**
**2022**
378,414
102,010|
|---|---|---|---|---|
|||||480,424|
Annual report and accounts 2022/23
46
## **14. Stocks**
|**Group**
**2023**
**£**
Publication materials and sundry sale items
33,609
**15.**
**Debtors: amounts falling due within one year**
**Group**
**2023**
**£**
Trade debtors
977,187
Prepayments and accrued income
709,986
Other Debtors
16,973
Amounts owed by group undertakings
-
1,704,146
**16.**
**Creditors: amounts falling due within one year**
**Group**
**2023**
**£**
Trade creditors
783,443
Accruals and deferred income
3,353,270
Other creditors
2,029
Other taxes and social security
335,449
4,474,191
**Deferred income**
**Group**
**2023**
**£**
Brought forward as at 1 April 2022
2,099,800
Income deferred in year
2,502,736
Brought forward funds released in year
(2,093,397)
Carried forward as at 31 March 2023
2,509,139|**Group**
**2023**
**£**
33,609||**Group**
**2022**
**£**
20,799
**Group**
**2022**
**£**
696,727
554,634
15,194
-
1,266,555
**Group**
**2022**
**£**
566,414
2,715,690
2,029
315,356||**Company**
**2023**
**£**
33,609
**Company**
**2023**
**£**
971,697
709,986
16,973
124,623
1,823,279
**Company**
**2023**
**£**
783,443
3,348,803
3,252
333,518
4,469,016
**Company**
**2023**
**£**
2,098,176
2,504,360
(2,093,397)
2,509,139|**Company**
**2022**
**£**
20,799|
|---|---|---|---|---|---|---|
|||||||**Company**
**2022**
**£**
696,727
554,634
15,194
177,011|
|||||||1,443,566|
|||||||**Company**
**2022**
**£**
570,296
2,793,302
3,252
317,241|
|||||||3,684,091|
|||||||**Company**
**2022**
**£**
1,983,971
2,097,396
(1,983,191)|
|||||||2,098,176|
Annual report and accounts 2022/23
47
## **17. Provisions for liabilities**
|Dilapidation provision for leased premises
VAT provision|**Group**
**2023**
**£**
486,962
-
486,962|**Group**
**2022**
**£**
463,213
200,000
663,213|**Company**
**2023**
**£**
486,962
-
486,962|**Company**
**2022**
**£**
463,213
200,000|
|---|---|---|---|---|
|||||663,213|
The VAT provision of £200k made in 2021/22 was settled. This was provided for following a VAT internal audit which identified a potential adjustment required in light of a change in the method of apportionment for partial VAT exemption purposes. This resulted in an amount due to HMRC in the 2022/23 financial year of £101k.
## **18. Designated funds**
|**2023**
Group and Company
Fixed asset fund
**2022**
Group and Company
Fixed asset fund|**At 1 April**
**2022**
£
1,530,821
1,530,821
**At 1 April**
**2021**
£
1,833,447
1,833,447|**Incoming**
£
-
-
**Incoming**
£
-
-|**Outgoing**
£
-
-
**Outgoing**
£
-
-|**Transfers**
£
107,479
107,479
**Transfers**
£
(302,625)
(302,625)|**At**
**31 March**
**2023**
£
1,638,300
1,638,300
**At 31**
**March 2022**
£
1,530,822
1,530,822|
|---|---|---|---|---|---|
The fixed asset fund of £1,638,300 represents tangible and intangible fixed assets.
Annual report and accounts 2022/23
48
## **19. Unrestricted general funds**
|**2023**
**Group**
Retained
fund
**Company**
Retained
fund
**2022**
**Group**
Retained
fund
**Company**
Retained
fund|**At**
**1 April**
**2022**
**Incoming**
**Outgoing**
**(Loss)**
**on**
**investments**
**Transfer**
**from**
**designated**
**funds**
**At**
**31 March**
**2023**
**£**
**£**
**£**
**£**
**£**
**£**
4,981,207
13,759,027
(14,188,051)
(61,001)
(107,479)
4,383,703|
|---|---|
||5,006,129
13,729,473
(14,183,419)
(61,001)
(107,479)
4,383,703|
||**At 1 April**
**2021**
**Incoming**
**Ongoing**
**Gain on**
**investments**
**Transfer**
**from**
**designated**
**funds**
**At 31**
**March**
**2022**
£
£
£
£
£
£
4,489,623
11,186,760
(11,309,030)
311,227
302,625
4,981,207|
||4,535,707
11,091,933
(11,235,363)
311,227
302,625
5,006,129|
Annual report and accounts 2022/23
49
## **20. Net assets by fund**
|**2023 Group**
Intangible fixed assets
Tangible fixed assets
Investments
Current assets
Current liabilities
Creditors due in over one year
**2022 Group**
Intangible fixed assets
Tangible fixed assets
Investments
Current assets
Current liabilities
Creditors due in over one year|**Designated**
**£**
1,013,077
625,222
1
-
-
-
1,638,300
**Designated**
**£**
881,552
649,270
-
-
-
-
1,530,822|**General**
**£**
-
-
4,759,625
4,585,231
(4,474,191)
(486,962)
4,383,703
**General**
**£**
-
-
4,782,136
4,461,772
(3,599,489)
(663,213)
4,981,206|**Total**
**£**
1,013,077
625,222
4,759,626
4,585,231
(4,474,191)
(486,962)|
|---|---|---|---|
||||6,022,003|
||||**Total**
**£**
881,552
649,270
4,782,136
4,461,772
(3,599,489)
(663,213)|
||||6,512,028|
Annual report and accounts 2022/23
50
## **20. Net assets by fund (continued)**
|**2023 Company**
Intangible fixed assets
Tangible fixed assets
Investments
Current assets
Current liabilities
Creditors due in over one year
**2022 Company**
Intangible fixed assets
Tangible fixed assets
Investments
Current assets
Current liabilities
Creditors due in over one year|**Designated**
**£**
1,013,077
625,222
1
-
-
-
1,638,300
**Designated**
**£**
881,552
649,270
-
-
-
-
1,530,822|**General**
**£**
-
-
4,759,625
4,580,056
(4,469,016)
(486,962)
4,383,703
**General**
**£**
-
-
4,782,136
4,461,772
(3,599,490)
(663,213)
4,981,206|**Total**
**£**
1,013,077
625,222
4,759,626
4,580,056
(4,469,016)
(486,962)|
|---|---|---|---|
||||6,022,003|
||||**Total**
**£**
881,552
649,270
4,782,136
4,461,772
(3,599,489)
(663,213)|
||||6,512,028|
## **21. Trustee remuneration and expenses**
The trustees neither received nor waived any emoluments during the year (2022: £0). The reimbursement to 9 (2022: 5) trustees of expenses for travel and subsistence incurred on behalf of the Association totalled £4,022 (2022: £1,140) during the year. The Association receives subscriptions from the trustees and provides examination services to some trustees on the same basis as any other member.
Annual report and accounts 2022/23
51
## **22. Financial commitments**
The total amounts payable over the lease term are shown below, analysed according to when the payments are due.
|Operating leases: land and buildings
**Due:**
Within one year
Between two and five years
After five years
Operating leases: office equipment
**Due:**
Within one year
Between two and five years|**2023**
**£**
171,371
685,484
83,660
940,515
**2023**
£
3,989
1,755
5,744|**2022**
**£**
171,371
685,484
255,031|
|---|---|---|
|||1,111,886|
|||**2022**
£
4,539
5,744|
|||10,283|
## **23. Related party transactions**
During the year the charity bought services amounting to £23,891 (2022: £0) from one trustee (2022: none). Amounts owed to the trustee at year end were £2,594.
A relative of a member of the key management personnel was awarded the designation of Chartered Project Professional.
Intercompany transactions between the charity and its wholly owned subsidiary, Ibis Trading Limited were £82,641 (2022: £67,292) for shared resources.
Ibis Trading gift-aided surplus funds of £41,982 (2022: £0) to the charity.
Amounts owed by Ibis Trading Limited to the charity at the balance sheet date were £124,623 (2022: £177,010).
The services referred to above were conducted at arm’s length.
Annual report and accounts 2022/23
52