OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2023-12-31-accounts

IET Trustees’

Annual Report and Accounts 2023

Year ended 31 December 2023

We are the IET, and as a diverse, multi-discipline and international professional home, as well as a registered charity, our purpose is to ‘promote the general advancement of science, engineering and technology’ and ‘ to facilitate the exchange of information and ideas on these subjects amongst the members of the IET and otherwise ’.

The IET, its members and volunteers therefore work with other stakeholders in our space to inspire, inform and influence the global engineering community, supporting technology innovation to meet the needs of society.

2 IET Trustees’ Annual Report and Accounts 2023

Contents

1. Report of the Trustees 2. Financial review 3. Our plans for the future 4. Structure, governance and management

5. The independent auditor’s report to the trustees of the Institution of Engineering and Technology 6. Consolidated Statement of Financial Activities 7. IET Statement of Financial Activities 8. Consolidated and IET Balance Sheets 9. Consolidated Statement of Cash Flows

10. Notes forming part of the Financial Statements 11. Legal and administrative information

3 IET Trustees’ Annual Report and Accounts 2023

Report of the Trustees

Engineering a better world for society is a vital and pressing task. To make a real difference, we need to remain one of the most trusted professions at the forefront of delivering innovative solutions to societal challenges, and the opportunities they present, be it sustainability or digital transformation.

We are focused on our role in supporting the science, engineering and technology sectors to maintain this positive impact and are committed to driving fundamental change. We are two years into our ambitious strategy which focuses on how we can remain agile as we deliver these goals, ensure we are continuously listening to our stakeholders and evolve our Institution to increase our impact and value to society. And our audiences are growing; at the end of 2023 we had over 156,000 members in 143 countries, making us a truly international organisation and a trusted voice within our profession all around the world. In 2023, we also grew our number of new Engineering Council registrants by 16% to 2,387, compared with the 2,053 registered in 2022.

In 2023, we welcomed our new President, Dr Gopichand Katragadda, a globally renowned expert in Artificial Intelligence (AI). As well as holding his inaugural Address from IET London:Savoy Place, he held the first IET Presidential Address in Bengaluru, at a time when India is set to become a growing contributor to AI and software development. Over the last year, we have continued to develop our work around engineering excellence both in the UK and throughout the world, building our connections with organisations that are dedicated to developing, encouraging and supporting their engineers and technicians. The growth of our partnership community now sees us working with over 260 corporate partners, supporting some of the largest companies in the world with the professional development of their valued workforce.

We also want to be recognised as a leading provider of workplace solutions and share world-class guidance and insights to enable effective and innovative research and

learning. Our Open Access journey continues, with a total of nine IET journals receiving their first Impact Factors in 2023, demonstrating our commitment to publishing high-quality research. Ten new journal launches are also planned in 2024 and 2025 and we are delivering better and faster impact

4 IET Trustees’ Annual Report and Accounts 2023

for researchers with 27.6 million full-text downloads, equalling an 800% increase in usage across the portfolio since the transition to Gold Open Access in January 2021. As well as our extensive academic journals and books collection, our events portfolio expanded and we ran, amongst others, our first 6G conference which brought together regulators, policy makers, Government representatives, leading industry representatives and researchers worldwide, to share their vision and roadmap for 6G tech.

Our focus on skills, learning and networks reflects our commitment to inspire and support engineers to sustain their professional development, knowledge and abilities throughout their career. Throughout 2023, we embedded our newly established mentor programme, a service we are pleased to be able to offer for free to our members, to help them excel in the next stage of their professional journey. We’ve also supported organisations with Equality, Diversity and Inclusion (EDI) initiatives such as our Inclusive Thinking campaign and industry research to advance action, as well as co-running the annual REflect event, where we look to inspire young people from diverse ethnic backgrounds into science, technology, engineering and maths (STEM) careers. Since the year-end we have also welcomed Women into Science and Engineering (WISE) into the IET family to help deliver more impact on gender parity.

We were also proud to launch the Future Talent Awards and celebrated the first cohort of IET Launch and Boost Scholarships. These replaced our Diamond Jubilee Scholarships and Engineering Horizons Bursaries to better reflect the current needs of society and the engineering sector, helping students, degree apprentices and apprentices from all backgrounds and circumstances onto the engineering career ladder, and to keep on climbing.

Our support for the next generation spans the globe; our IET India Scholarship Award rewards and celebrates excellence and innovation amongst undergraduate engineering students with great success, and donations to the Futures Fund helped support the delivery of our education programmes - you can read more about these initiatives within the Report.

We know that not enough young people are choosing to study engineering or pursue careers in our profession. From market research, one of the major factors that needs to be addressed is that young people are not exposed to engineering during their primary and secondary education.

5 IET Trustees’ Annual Report and Accounts 2023

Our UK-based ‘Engineering Kids’ Futures’ report recommends greater effort on embedding engineering outcomes into the national curriculum and reinvigorating design and technology as a subject, to align it more closely with engineering. In October, we took these recommendations to a round table at 10 Downing Street to meet with industry leaders and parliamentarians to further our collective work.

By focusing on key issues, such as climate change, digital futures, and the needs of the profession, we can have a greater impact as the leading evidence-based voice of engineering and technology.

Building the knowledge needed to drive a skilled and sustainable workforce has been a key focus for our research projects in 2023 and we launched two national surveys - our Sultanate of Oman digital engineering skills report and our multi-region Green Skills survey - the latter we presented and explored through a series of events at the 28th United Nations Climate Change Conference (COP28) in the United Arab Emirates, in December. The development of AI also continues at pace and we are working closely with the expertise of our volunteers, members and partners to ensure we are guiding the sector to embrace the use of AI safely, to optimise its benefits and help support a resilient future, including our role as a key voice in the global media to help drive wider understanding.

We know that technology can have a huge impact on society with fantastic benefits, and the engineering profession is at the forefront of the adoption of digital technology. In March 2023, the UK Government’s Online Safety Bill progressed to the House of Lords and our advocacy led to a successful amendment that obliges Ofcom to review how the Act applies to emerging technology, such as the metaverse.

It goes without saying that our progress would not be possible without the continued dedication and passion of our local communities, networks, members and volunteers, who bring expansive knowledge and credibility to our work. It has been a delight during 2023 to see the resurgence of face-to-face meetings, as COVID-19 restrictions lifted around the world and we thank all our valued volunteers for your ongoing support.

Engineers have an extraordinary history of being great problem solvers who work continuously to innovate, find new solutions and push boundaries to solve complex societal and environmental issues.

As a sector we are in a unique position to lead collaborative action – it’s how we inspire tomorrow’s generation with the advancements of today.

6 IET Trustees’ Annual Report and Accounts 2023

Ed Almond MSc MBA FCA FIET IET Chief Executive and Secretary

Dr Gopichand Katragadda BE MS PhD CEng FIET IET President

IET Trustees’ Annual Report and Accounts 2023

7

Our aims and objectives

The IET exists with the sole purpose of Working together to engineer a better world.

Our vision is to “engineer a better world” and we seek to achieve this by pursuing our mission of “inspiring, informing and influencing the global engineering community to support technology innovation and meet the needs of society.”

The IET’s purpose is “to promote the general advancement of science, engineering and technology and to facilitate the exchange of information and ideas on these subjects amongst the members of the IET and otherwise.”

Extract from the IET Royal Charter

IET Trustees’ Annual Report and Account s 2023 - Report of the Trustees

8

Who do we work with?

We work hand in hand with a wide and varied group of stakeholders to deliver our vision and provide the support and knowledge frameworks that the engineering and technology community requires in order to fulfil its professional goals. These stakeholders and desired outcomes fit broadly into four categories.

Industry

Organisations that employ engineers and technicians; from micro-SMEs through to large, multinational companies.

Academia

Learners and researchers in tertiary institutions, plus supporting roles including faculty and librarians.

Practitioner

Any practicing engineer or technician, as well as students and apprentices who are on a pathway to becoming an engineer or technician.

Society

Anyone who is impacted by engineering and technology, including government, other Professional Engineering Institutions, and like-minded organisations.

By maintaining our focus on our audiences, the IET will remain relevant and effective in delivering the vision through our mission to inspire, inform and influence.

IET Trustees’ Annual Report and Accounts 2023IET Trustees’ Annual Report and Account - Report of the Trustees

9

Our values

We work with Integrity , operating professionally and ethically to gain trust. We must be open and honest with each other and respect everyone, valuing each other’s contribution. In the 21st Century, this focus on integrity also extends to valuing the work of subject matter experts and communicating their findings to the public in a manner that is easy to understand and, importantly, trust.

We work with Excellence , to deliver the highest level of service and satisfaction, using agile methods and seeking innovative solutions to add value. And our role is to continually improve and adopt best practices for the good of engineering and technology communities across the globe.

. We promote and encourage Teamwork The IET recognises that we must continue to work together and encourage talented individuals working in our teams and in our volunteer communities. More than ever, we must be collaborative both within the IET and externally, with our remit to partner with other likeminded organisations and optimise our respective outcomes.

10 IET Trustees’ Annual Report and Accounts 2023

Read our strategy.

Our strategy

Our audiences are the reason we are here, and we put them at the heart of everything we do.

Our strategy sets the direction for the institution with the aim of increasing the positive impact for society delivered by the engineering and technology sector, while ensuring the IET remains financially sustainable.

The strategy encourages the delivery of activities which centre around our themes, which are as follows:

Engineering Excellence

We drive professionalism, standards and ethics in all areas of engineering and technology.

Membership of the IET represents a commitment to these ideals and formal recognition of professional competence provides a clear indication of personal capability, maintained through a commitment to Continued Professional Development (CPD).

Engineering and technology touches everyone’s lives and the safety, quality and sustainability of our community’s solutions require a culture of professionalism and integrity which is recognised by society.

We believe this starts with inclusive access into engineering and technology careers via structured and more flexible routes, including apprenticeship and degrees, to provide a sound base of fundamental knowledge and practical skills which can be developed in the workplace through lifelong learning.

With the continuous development of technology and its applications, the IET brings the engineering and technology community together to define and share best practice and develop globally recognised standards.

IET Trustees’ Annual Report and Accounts 2023

11

Skills, Learning and Networks

We are a facilitator for the engineering community to network, learn and share knowledge; connecting and developing people and organisations for success.

Core to the IET’s purpose and activities is our support for engineering organisations, and individual engineers and technicians as they transition from education to continue developing their skills throughout their careers.

We provide the means for the engineering and technology community to interact in the manner most convenient to them. We seek to expand our reach through our events, learning and development products, online networking platforms, and mentoring activities, with the goal of bringing individuals and organisations together around both key and emerging topics.

By meeting the evolving needs of engineers and technicians as new technology is developed, connecting professionals to their peers and providing the most effective way for them to gain skills and develop as professionals, we deliver value not only to our community but to wider society.

IET Trustees’ Annual Report and Accounts 2023

12

European Conference on Optical Communication 2023

The IET hosted the 49th European Conference on Optical Communications (ECOC), which is Europe’s leading conference on optical communications, and one of the most prestigious and long-standing events in the field worldwide, in October 2023 in Glasgow.

We welcomed over 1,400 attendees from 39 countries, who heard 599 presentations.

ECOC continued its tradition of offering a wide variety of session formats, and as well as the traditional oral and poster presentations, attendees enjoyed a hackathon, workshops, and the everpopular Rump Session debate.

Social events provided a great opportunity for networking and experiencing Scottish culture in some spectacular venues.

Find out more.

IET Trustees’ Annual Report and Accounts 2023

13

Thought Leadership and Policy

We provide the right information at the right time, to the right people.

The IET is a leader in raising awareness of the positive impact that engineering can have on society’s challenges. We do this by providing evidence-based information to policymakers when they need it and influencing them to adapt a wholesystems approach to resolve complex national and global challenges.

As an independent body we bring together experts from across sectors and subject areas to share expertise, disrupt and challenge fixed ideas, and develop innovative solutions that can inform public policy.

Our work with policymakers helps build a regulatory environment that gives the public confidence that emerging technologies are secure and can help accelerate positive societal change.

14 IET Trustees’ Annual Report and Accounts 2023

----- Start of picture text -----
training on the job programmes, and in-house development formal
qualifications
@TheIET
Skills gaps
Training
theiet.org/skills
For further information, visit
Measuring the sustainability skills challenge
– Net zero needs the trifecta
innovation funding, and of an industrial strategy,
support for upskilling the UK
– internationally competitive. workforce to become more
thinking are key skills Agility and whole-systems
for reaching net zero
and adapting to climate
change, and more should
– this in the workforce. be done to encourage
UK’s education pipeline Industry confidence in the
is remarkably low by
international standards
between industry and – greater collaboration
universities is required -
targeting placements in
areas of critical skill deficit
– Employers are missing an and digital twins.such as nuclear technologies
opportunity on digitalisation
should help facilitate and net zero. Government
as AI and digital twins.use of technologies such upskilling in the sustainable
theiet.org
well for industry – the margin is substantial. education system does not prepare graduates is Malaysia. 2nd highest most employers think that the The UK is the only country in which help the UK meet net zero are:The top three technologies UK employers’ think would
To combat this, UK employers suggest: cooling of buildingssustainable heating and
placement yearsmore industry and generationenergy renewable and
targeted projects.more industry- retrofit
mindset an entering the workforce should have:Most UK employers think engineers agile thinkingwhole systems knowledge or environmental specialist sustainability business. changeof climate about the are concerned of UK employers on their impact the impact of resilient against they need to be have all the skills do not think they
climate change .
reduce carbon emissions introduced new technologies in the past three years to Compared to other countries surveyed, fewer UK firms have such as:
automation
However, the following areas are still seen as more important: AI
Overallis splitConfidence in the apprenticeship levy but is particularly low among SMEs. skillstechnical thinkinginnovative solving skills complex problem- Industrial Onlyonly 3% say digital twins are importantfor reaching net zerodigital twins as a priority technology has the skills in this area.UK firms are the think that the UK – in the construction sector, least likely to recognise materialshigh-performance .
whileflexibility, greater support how it works.awareness of should increase say government strategyfundinginnovation 39% net zero, followed by: government policy for reaching was rated the most helpful the green
economy funding for
and reskilling.upskilling
2023. The survey was carried out online.Fieldwork was undertaken between 21 August – 5 September 1,007 adults working in engineering employers in the UK.
For more information please visit
theiet.org/skills
2023 summary IET sustainability skills survey
68%
56%
52%
Recommendations
A survey of over 2000 engineering employers across the world, conducted by YouGov,
ensure the UK has the skills to be internationally competitive.found that the UK’s ambition to be a world leader in AI and sustainability is hampered
by the lack of adoption of digital technologies. A whole system approach is needed to
67%
76%
41% 27%
66%
46%
42%
63%
35%
39%
(44%) 36%
(34%) 34%
65%
77%
18%
79% 70% 17% 16%
70% 5%
23%
45%
47%
36%
36%
34%
Education system
Sustainability
Government policy
Methodology
of UK employers have a
sustainability strategy.
to implement this strategy. skills are required of those report that additional
Only a third of all UK engineering
that includes making their organisation net zero. employers have a sustainability strategy
are
agile thinking, amongst others.knowledge, whole systems and lower their environmental impact report that they Employers who do not have all the skills they need to lacking specialist sustainability skills and
conventional forms of training such as: UK employers are more likely than most countries to offer some other nations, including:to favour upskilling/reskilling than address skills gaps are more likely Employers in the UK who need to USA Germany
However, UK is the nation least likely to offer training in;manufacturing (9%) sectors.new technologies (15%), and
Futures Place, Kings Way, Stevenage, Hertfordshire, SG1 2UA, United Kingdom.The Institution of Engineering and Technology is registered as a Charity in England and Wales (No. 211014) and Scotland (No. SC038698).
E6D23003/P&I/1023
----- End of picture text -----

2023 Skills Survey

We carry out annual surveys of businesses to gauge the state of skills in the engineering and technology sector.

The 2023 IET Skills Survey: UK Summary examines the UK’s ambition to be a world leader in Artificial Intelligence and sustainability and is part of a

broader report outlining the international sustainability skill sector. The product of surveying over 2,000 employers around the globe, the survey examined the attitudes, skills, and technologies needed to reach net zero.

The report underlines the difficulties UK employers face in acquiring the skills they need to deliver their sustainability strategies. The results show that UK employers are missing an opportunity on digitalisation and net zero.

Find out more.

IET Trustees’ Annual Report and Accounts 2023

15

Research Solutions

We are a Learned Society of world renown and a leader in intelligence and analytics for the engineering and technology research communities.

The IET supports the global science and technology research community in solving the most pressing societal challenges by providing information, intelligence, and analytics solutions. We do this through a range of journal and book publications., library and archives, and indexing and analytics tools that expose deep connections across scientific and technical literature.

IET Trustees’ Annual Report and Accounts 2023

16

Inspec: Trusted content and precision analytics

IET Inspec is a scientific and technical database with precise, expert indexing for subject-specific and interdisciplinary research in the fields of engineering, physics, and computer science.

It contains over 20 million records of research literature from hundreds of trusted global publishers, and for more than 50 years it’s been an essential discovery tool to numerous prestigious institutions around the world.

Paired with Inspec Analytics, our dynamic research intelligence tool, research professionals can explore beyond the literature to uncover trends and patterns that were previously locked away, across a wide range of physics and engineering disciplines at both local and global levels.

IET Trustees’ Annual Report and Accounts 2023

17

Education

We provide inclusive and inspiring education pathways to meet demand for engineering and technology skills.

The future health of the engineering profession is dependent on young people being aware of and interested in STEM topics. That interest needs to be maintained throughout their education to the point where they can choose to advance their own STEM knowledge through high-quality education.

Factors influencing outcomes include parental understanding and attitudes towards engineering and technology careers, representation in the curriculum, the quality of teaching provision, access to inspiring experiences and relevant careers advice.

We collaborate with other stakeholders wherever appropriate to ensure inclusive, engaging and attractive routes into engineering and technology careers.

Our strategy is delivered by the operating expertise of our staff and volunteer teams and is overseen by our Main Boards, whose responsibilities are to deliver a portfolio of products, services and solutions that support the delivery of the IET Strategy.

IET Trustees’ Annual Report and Accounts 2023

18

Downing Street Roundtable

On 19 October 2023 the IET hosted a roundtable at 10 Downing Street. The roundtable brought together professional engineering institutions, industry, and academia to discuss how engineering education can be incorporated into the UK education system to ensure we are preparing students for the future skill requirements of the STEM workforce.

Find out more.

IET Trustees’ Annual Report and Accounts 2023

19

Our operational activity

The main activities undertaken by the charity to deliver against its strategy, and which form the basis of reporting are as follows:

Knowledgesharing , activities to gather and distribute scholarly and professional content through a variety of physical and online channels to a global audience, drawing on the unique strengths of our membership and communities.

Education, Policy and Awareness , activities which seek to engage young people and the wider public with the roles played by engineering, technology and science in enhancing people’s lives; as well as informing Government policy formulation.

Membership and Professional Development , activities which focus on the career-long professional development and professional registration of individuals.

IET Trustees’ Annual Report and Accounts 2023

20

Our activities are overseen by four volunteer-led Boards responsible for Equality, Diversity and Inclusion, Knowledge Services and Solutions, Volunteer Engagement, and Membership and Professional Development. These Boards, which advise the Charity’s Board of Trustees, meet regularly throughout the year and reflect the collaboration of IET staff and volunteers. We also control a number of subsidiaries which enable our international operations and the trading activities which fall outside of our primary purpose.

The IET derives a suite of key performance indicators from our Strategic Framework. These metrics are reported on under the relevant areas of operational activity within this document.

In 2024, the IET will benchmark an expanded series of metrics which will help us drive improvements in the way we deliver our operational activities and serve our members and customers.

IET Trustees’ Annual Report and Accounts 2023

21

Volunteering

Our volunteers are essential to the delivery of our vision and mission.

With over 40 different volunteering roles and types of engagement across the work that we deliver, the sheer breadth of skills, experience and knowledge that our volunteers provide enables the Institution to pursue and achieve a wide range of goals and help our members to adapt to and stay ahead in the dynamic world of engineering and technology.

Find out more.

IET volunteers make a difference across a wide range of areas including;

22 IET Trustees’ Annual Report and Accounts 2023

IET volunteering creates positive impact

Meet Manisha

Chartered Engineer, Executive Coach and IET Fellow Dr Manisha Morais is an IET Fellowship Assessor.

Volunteering with the IET can be a life-changing experience and an opportunity for the engineering and technology community to come together and make a positive impact. If you can help us achieve our mission, please contact volunteer@theiet.org regardless of your career stage or background.

Volunteer role

When Manisha was invited to apply for an IET volunteering position, she found the idea very appealing. In July 2023 Manisha submitted an IET Fellowship Assessor application. It was successful, as was her training day, just three months later. “ I was one of the youngest trainees in the room and the only ethnic minority woman ,” she said.

Manisha put her new skills and knowledge to the test in November. “ My first Fellowship assessment gave me the opportunity to pause and to look closely at the work of a seasoned leader. It reminded me that professionals are making excellent contributions globally and that we’re now able to be interconnected globally, from the comfort of our own offices .” As well as enabling her to give something back to the engineering and technology community, Manisha’s Fellowship Assessor role supports her personal and professional development. She said: “ I will continue to volunteer for the IET as often as I can and will encourage others to work towards Fellowship .“

IET Trustees’ Annual Report and Accounts 2023

23

Fundraising and development

The IET Futures Fund continues to stand as a testament to our commitment to supporting and inspiring the next generation and increasing access to opportunities. From nurturing young engineering talent through our education programmes to supporting students and apprentices in their studies through IET Launch Scholarships, the Futures Fund is a key part of our purpose to engineer a better world.

24 IET Trustees’ Annual Report and Accounts 2023

Matched funding

During Professor Bob Cryan’s Presidential year, we matched every donation to the IET Futures Fund. We achieved our target of raising £500,000 in matched funds, doubling the impact of donations.

Awards

67 students and apprentices were awarded a donor funded IET Launch scholarship in 2023 to support them with living costs associated with their studies.

Opportunity is at the heart of the awards, which support students who face financial hardship and have a passion for engineering to continue their studies. For example, 27% come from single parent families, 10% have caring responsibilities, 16% are on benefits and 14% identified as disabled or have a long-term health condition.

As well as providing vital financial support to those in need, recipients benefit from the opportunity to grow their professional network and access role models through building a direct relationship with their donors.

Education

Donations to the Futures Fund also supported the delivery of our Education programmes, IET Faraday® Challenge Days, FIRST ® LEGO® League and our free teaching resources. In the 202223 academic year, these programmes reached almost 48,000 children and young people and the free STEM resources were downloaded at least 121,000 times.

Support from our funders enables us to reach out to more children and young people, particularly those from disadvantaged areas who would otherwise not have access to these opportunities and create new resources for schools.

25 IET Trustees’ Annual Report and Accounts 2023

Thank you

We rely on the support of our donors to continue to build a more inclusive profession and open up new and exciting opportunities for the engineers of tomorrow.

Presidents Partnership

Commodore Barry Brooks BSc(Eng) FCGI CEng FIET

Professor Bob Cryan CBE DL FREng MBA DSc CEng FIET

Mr Chris Earnshaw OBE FREng BSc CEng FIET

Sir Alan Rudge CBE KB PhD FREng FRS CEng HonFIET

Sir Robin Saxby FREng FRS BEng CEng HonFIET

Mr Keith Thrower OBE FREng CEng FIET

In 2023, thanks to our supporters, £593,244 was pledged from individuals, trusts and foundations and companies who have generously invested their time and money to support our programmes.

Individuals can choose to donate to “Take Your Place” where a gift of £750 or £1,500 is recognised with an engraved block or seat plaque at IET London: Savoy Place. We are pleased to honour those who kindly leave a legacy to the IET with an engraved block, with the permission of family or executors.

Donations from companies, charitable trusts and foundations reflect our shared goals and joint commitments to society, diversity, inclusion and social mobility.

We would like to thank our generous donors for helping to support the next generation of engineers.

We would also like to thank the many individual IET members and others who have kindly supported the Futures Fund through online and text donations. Every pound donated to the IET Futures Fund goes directly to support the delivery of our education and awards programmes.

IET Trustees’ Annual Report and Accounts 2023

26

With special thanks to our donors whose funding was utilised in 2023

A G Manly Charitable Trust Eland Cables Pamela and David Rollin Foundation Altran UK / Capgemini The Engineers Trust Peter Jost Foundation Arm ERA Foundation R C Snelling Charitable Trust Bechtel Ford Motor Company Fund Reece Foundation Belling Charitable Settlement GKN Automotive Innovation Centre Rees Jeffrey’s Road Fund The Bugatti Trust HDR UK Fund Sage Foundation

Sir George Buckley HonFIET Hotpoint Science Foundation Ireland BT The Ironmongers’ Company Siemens Caterpillar Inc. Isles of Scilly Charitable Trust Society of Motor Manufacturers and Traders Limited (SMMT) Chelton LEGO Foundation Spirax-Sarco Engineering Chemring Group PLC Lujenna Educational Trust Stanley Black & Decker Costain MacRobert Trust Synoptix

Cundall National Grid Thales Holdings UK David Family Foundation National Grid ESO Kathleen and Graham Tubbs FIET Digital Xtra Fund National Instruments UKRI Trustworthy Autonomous Systems (TAS) Hub Edgar Lee Foundation Network Rail Wates Family Enterprise Trust Mrs Weiss and Professor Bernard Weiss HonFIET

----- Start of picture text -----
Synoptix
----- End of picture text -----

Fundraising statement

Section 162A of the Charities (Protection and Social Investment) Act 2016 requires charities of a certain size to make a statement regarding fundraising activities in their Annual Report.

The IET invests in the future of our sector by ensuring that our programmes for children, undergraduates and apprentices are offered each year. Alongside our investment we seek voluntary donations to enable us to increase the reach and impact of these programmes.

We do not use professional fundraisers or commercial participators to fundraise on our behalf.

The Institution of Engineering and Technology is registered with the Fundraising Regulator and complies with all the relevant standards set out in the Code of Fundraising Practice. This includes ensuring staff exhibit behaviour of a high standard when it comes to informing donors and treating people fairly, especially those who are vulnerable as defined by the code.

The IET’s Development team works mainly with companies and charitable trusts and foundations which share our interests and would like to support one or more of the individual programmes. We are also fortunate to have the support of many individuals who can choose to fund an individual programme or all, through a donation to the Futures Fund.

Most personal donations are generated from direct mailing or email communications to our members. Individuals give mainly through an online platform (Enthuse) which is registered with the Fundraising Regulator. The IET uses Enthuse, which enables us to receive and process donations and gift aid efficiently.

Our Development Team reports to a Deputy President (or equivalent), and the Chief Executive and Secretary, who, along with the Institution’s Executive team, are directly responsible to the Board of Trustees. An Impact Report is submitted to the Board of Trustees each year and made publicly available to highlight the breadth and depth of the work.

IET Trustees’ Annual Report and Accounts 2023

27

Knowledge sharing

Delivering world-class knowledge products and services.

Engineers and technology professionals work in a variety of environments and require information and channels for discussion in a variety of formats, on demand.

In line with our mission, vision and strategy, we

IET Trustees’ Annual Report and Accounts 2023

28

Our knowledge solutions include leading academic journals, awardwinning analytics tools, dynamic research communities, technical call-for-paper events, and online technical networks.

We are also the copublishers of the Requirements for Electrical Installations: IET Wiring Regulations (BS 7671), which is currently in its 18th Edition.

29 IET Trustees’ Annual Report and Accounts 2023

Journals and books

The IET’s academic journals collections help research departments and the wider engineering community to stay up to date with content covering the latest advances in engineering and technology.

Our journal content is indexed in all major databases including Scopus, Ei Compendex, SCI, SCI-E and Inspec as well as Google and Google Scholar to help users discover relevant content.

IET Trustees’ Annual Report and Accounts 2023

30

Journals

The IET’s 43 Journals span all areas of engineering and technology – covering in depth the disciplines of electrical, electronics, computing, control, biomedical and communication technologies. Over the course of the year, we published almost 3,500 papers, including 257 special issue papers.

Our current journal titles are fully gold Open Access, allowing researchers and practitioners around the world immediate and free access to current IET Journals content. The latest content from our journals is accessible through a publishing partnership with Wiley on the IET Research Hub page.

IET Journals Archive 1872 – 2012

Inspire your researchers to become pioneers of the future with unique insights into 140 years of engineering and technology history.

With over 145,000 full-text articles dating from 1872 - 2012, the IET Journals Archive provides exclusive, unlimited online access to the Institution of Engineering and Technology’s extensive publishing history.

Including ground-breaking articles by engineering pioneers such as Marconi and Edison, our Journals Archive provides a comprehensive source of historic engineering and technology information.

IET Trustees’ Annual Report and Accounts 2023

31

Books

During 2023, we published 57 new books spanning a wide range of subjects, including:

Design, Control and Monitoring of Tidal Stream Turbine Systems , by Mohamed Benbouzid FIET

Tidal energy generation has the potential to become an important component of the clean energy mix, using the ebb and flow currents off coasts to drive submerged turbines. The technology is advancing rapidly towards maturity, but challenges remain, with areas of active research including tidal stream turbine generators and drivetrain design options, turbine control, fault-tolerant control, monitoring and fault diagnosis, and biofouling issues. Edited by Mohamed Benbouzid FIET, this book provides insights from experts in the field into how engineers might solve key challenges in tidal stream turbine systems, enabling this technology to fulfil its role in helping society reach net zero.

Interactions of Wind Turbines with Aviation Radio and Radar Systems , by Alan Collinson FIET

Wind farms and wind turbines are strong reflectors of radio waves, which can affect radar and radio systems used by civil and military aviation. Also, the speeds of turbine blades and aircraft are comparable, and it can be difficult to discriminate between them using existing radar systems. Wind turbines provide essential renewable energy and promote energy independence but, critically, they must do so without compromising aviation safety or national defence. We’re proud to have worked with author Alan Collinson on the publication of his book on this vital cross-disciplinary topic. Alan is a nationally and internationally recognised expert in this field, having worked on NATO advisory groups, been an expert witness at public inquiries into the effects of wind farms on aviation radar systems, appointed OBE for services to the defence industry, and a Fellow of the IET.

Medical Equipment Engineering: Design, manufacture and applications , by Wai Yie Leong FIET

The design and manufacture of effective, safe, reliable medical equipment is an essential factor in patient health. This book is edited by Professor Wai Yie Leong (FIET), who is not only a thought-leader in her field, but a keen champion of women in engineering. Wai Yie is Vice President of the International Network of Women Engineers and Scientists (INWES), chairperson of the IET Malaysia Local Network and committee member of World Federation of Engineering Organisation’s Women in Engineering Committee.

IET Trustees’ Annual Report and Accounts 2023

32

Lectures, conferences and seminars

Delivering insight and debate into the key topics affecting engineers and technicians across the globe.

The IET’s events portfolio is a fantastic way for the engineering community to network, share knowledge and upskill across a wide range of disciplines and specialisms.

Individuals interact with the Institution’s conference content across virtual, hybrid and face to face formats. We have a variety of different conference types, to ensure that the right information is delivered to the right individuals, in the right manner.

These include;

33 IET Trustees’ Annual Report and Accounts 2023

Our conference highlights from 2023 include

Why 6G?

The first IET 6G conference brought together regulators, policy makers, government representatives, lead industry representatives and researchers worldwide to share their vision and roadmap for 6G tech

ACDC 2023

Held in Glasgow, Scotland, ACDC 2023 offered power transmission professionals the opportunity to learn about new and emerging projects, technologies and initiatives in this fast-moving sector, as it moves towards the net zero grid.

Milsatcoms

The latest in our long-running Milsatcoms conference series offered insight into the UK Ministry of Defence, and Space Agency priorities, and featured the latest on the UK Defence Space Strategy, critical updates on EU and UK military satellite programmes and strategies for building scalable, resilient and innovative infrastructures.

Cyber security for critical industries

This event focused on identifying the latest cyber security challenges facing companies today and the creation of resilient and responsive systems.

Power Electronics, Machines and Drives Europe

2023 saw the latest in a successful series of call for papers conferences which brought together hundreds of specialists from across the globe, and showcased the technology roadmaps of the components, systems, process and materials that are driving innovation.

Powering Net Zero Week

Powering Net Zero week encompassed three co-located conferences in Glasgow: Energy Storage, Electric Vehicle Infrastructure: Charging Ahead, and Renewable Power Generation and Future Power Systems. These conferences served as a platform to discuss solutions to deliver net zero by 2030.

IET Trustees’ Annual Report and Accounts 2023

34

President’s Address

Gopi’s lecture is available to view on-demand

Engineers – Holding the keys to the future of humanity.

In his President’s Address, Dr Gopi Katragadda shared his thoughts on how Artificial Intelligence and engineering are critical in achieving a future where sustainability, jobs, and progress are achieved in harmony.

What we said we would do and what we achieved

The key performance indicators we used to track our performance in the Knowledge Sharing area in 2023 were:

Strategic KPI

Average Journal Impact Factor

2023 outcome 2.2 2023 target 2.2

A Journal Impact Factor is often used to measure the importance of a Journal by calculating the number of times its articles are cited by other papers.

In 2023, we were able to achieve our target of achieving an Average Journal Impact Factor of 2.2, which is an improvement on our 2022 average Impact Factor of 2.1.

It is calculated over a two-year period and involves dividing the number of times articles within the Journal were cited, by the number or articles that are citable. By taking an average, we aim to provide a unified score across our journal portfolio.

This score was driven by a number of factors which included high Impact Factors for 10 new journals, which received impact factor scores for the first time during this period of measurement. Our existing journals also performed well with an average increase of 5% per Journal.

IET Trustees’ Annual Report and Accounts 2023

35

Membership and Professional Development

Professional home for life

We are a global, diverse home for more than 156,000 engineering and technology professionals in 143 countries and we support the engineering community at every career stage, whether it’s developing new capabilities or perfecting established ones. programmes to supporting students and apprentices in their studies through IET Launch Scholarships, the Futures Fund is a key part of our purpose to engineer a better world.

36 IET Trustees’ Annual Report and Accounts 2023

Safeguarding professional standards

The IET is licensed to award four categories of Professional Registration: Chartered Engineer, Incorporated Engineer, Engineering Technician, and ICT Technician. These titles are internationally recognised standards of professional competence and commitment.

Find out more.

We are the Professional Engineering Institution of choice for those seeking to fulfil their personal and professional ambitions.

Partnerships

The IET works with partners in Industry to help them ensure that their employees continue their professional development journeys and consistently demonstrate the highest levels of competence and expertise.

IET Trustees’ Annual Report and Accounts 2023

37

IET Corporate Partners

The IET works with a wide selection of large organisations who, like us, are committed to high professional standards and employee development. With over 260 Corporate Partners, we provide support for engineers’ professional development and registration to some of the largest companies in the world.

All our Corporate Partners have their own dedicated Corporate Account Manager, to support them in making the most of all the benefits available and create a bespoke partnership package that offers the best products and services tailored to each company’s individual needs.

Although companies must meet qualifying criteria, Corporate Partnership is cost-free.

This support includes;

IET Trustees’ Annual Report and Accounts 2023

38

We were pleased to announce that we welcomed the following organisations to our network in 2023.

Atos Insite Technical Services RINA Axima (Vulcain Engineering) Saab UK Ltd Balfour Beatty Inzpire Scottish Water BPA (British Pipeline Agency) Kenwood Security Services Group Bureau Veritas Kier Group SSMC – Mayo Clinic (UAE) Cambridge Consultants London Stanstead Airport (MAG) STFC (UKRI) Capgemini Engineering McDermott International Subsea 7 CGI Moog Tevva Essity MWH Treatment Ultra Energy FM Global Ofgem Ultra PCS Limited Frasers Group ProDrive Ultra Sonar Systems Ltd Home Office Proserv Veolia ES (UK) Ltd HydraForce Hydraulics PX Group Waters UK Imperial Brands RBSL Wessex Water INEOS Red Engineering WME Global (UAE)

IET Enterprise Partners

We’re always looking to partner with entrepreneurial and innovative small and mediumsized enterprises (SMEs) who are committed to professionalism. The IET recognises that smaller organisations face a vastly different range of challenges to their large corporate brethren, and as a result we launched our Enterprise Partner scheme to UK based SMEs who commit to funding 20 new IET memberships in their first year of membership, with the aim of raising the professional bar and helping SMEs take the next step towards delivering engineering and technology excellence.

Our Enterprise Partners receive tailored support, including:

We would like to thank our new Enterprise Partners, who in 2023 included:

AEGIS Engineering Systems HCF Catch Niftylift Ltd Brighton Palace Pier Infrastructure Gateway Ltd ORE Catapult The Bristol Port Company (Also known as IGL) PB Design Correll Electrical Engineering Ltd Integrum Power Engineering Playfords C3ia Solutions Ltd I3 Group Solutions RJ Power Networks Daci Utilities Engineering Mac Group Seaward Electronic Ltd Consultancy Limited MCS Statera Energy Operations Fortress Interlocks (also known as Galliford Try) TCP Group GeoPura NDGTA Ventus Energy Ltd Gridserve NHS Greater Glasgow and Clyde Wolverhampton Homes

IET Trustees’ Annual Report and Accounts 2023

39

Awards and scholarships

Recognising and promoting excellence.

Our awards programme includes awards for individual excellence, research and innovation, scholarships, travel awards, prizes and competitions within the engineering and technology sector.

Our activities in this area include;

We are pleased to draw attention to all of our

winners in 2023 ; for a full list of our prestigious winners, and to find out more about them and their work, please visit the IET website.

40 IET Trustees’ Annual Report and Accounts 2023

A F Harvey Engineering Research Prize

The A F Harvey Engineering Research Prize of £350,000 is awarded annually in remembrance of Welsh Engineer Dr Arthur Frank Harvey. For further information on the life and career of Dr Harvey, please visit the IETs website.

This is our most valuable prize fund, which is awarded to phenomenal researchers working in the fields of radar and microwave, lasers and optoelectronics, or medical engineering.

The A F Harvey Engineering Research Prize 2023 Prize

Professor Rachel McKendry is the 2023 winner of this prize, in recognition of her outstanding contributions to research in the field of medical engineering and technology, specifically in the area of bio sensors harnessing advances in quantum and digital technologies. Professor McKendry will present her research to the IET at Savoy Place during 2024.

Professor McKendry is Professor of Biomedical Nanoscience and holds a joint position between the London Centre for Nanotechnology and the Division of Medicine, University College London

She is Director of the i-sense EPSRC IRC, a large interdisciplinary research collaboration in Early Warning Sensing Systems for Infectious Diseases (2013-24) and the new EPSRC Digital Health Hub for AMR. Her research lies at the cutting edge of quantum technologies, deep learning and telecommunications for infectious diseases and public health.

See below for further information on Professor McKendry and her work.

IET Trustees’ Annual Report and Accounts 2023

41

The winner of the 2022 A F Harvey Engineering Research Prize was Professor John C Travers, Professor of Physics at Heriot-Watt University, Edinburgh, and Director of the Laboratory of Ultrafast Physics and Optics. The outcomes of his research have been published in over 200 scientific articles, presented in over 100 invited talks, and received attention in a wide range of scientific news outlets.

Together with his research group, he has pioneered a new technique to generate pulses of far-ultraviolet light, based on the use of soliton dynamics in gasfilled waveguides, which outperforms all previous techniques. We can generate tuneable, highly focusable, extremely intense, and extremely short pulses of far-ultraviolet light in a compact table-top system that exceeds the capabilities even of building-scale facilities.

Professor Travers presented his research to the IET on 9 March 2023, at a lecture hosted by Past IET President, Professor Bob Cryan.

What we said we would do and what we achieved

Number of non-student and apprentice members below the age of 40 (excluding Students, apprentices and those in India and China)

KPI 2023 target 36,750 KPI 2023 outcome 37,040

As part of our mission to Engineer a Better World, we want to ensure that Engineering and Technology talent is encouraged and to this end, we aim to encourage younger individuals to join the IET and make a positive contribution to their technical communities and society in general.

We were able to closely match our target in this area, thanks to the hard work of our Volunteers, Partners and staff, who generated strong growth, particularly in the UK.

New registered members

KPI 2023 target 2,291 KPI 2023 outcome 2,432

The full lecture is available online

This metric indicates the number of new professional registrations that the IET was able to award during 2023, across 4 categories: Chartered Engineer (CEng), Incorporated Engineer (IEng), Engineering Technician (EngTech) and ICT Technician (ICT Tech ). We were able to exceed our target in this area, with results in the EngTech category that were beyond our expectations at the beginning of the year. We are also pleased to be able to report that these results represent year on year growth across the CEng, IEng and ICT Tech registrant categories.

42 IET Trustees’ Annual Report and Accounts 2023

Education, policy and awareness

The IET’s core purpose is to promote the general advancement of science, engineering, and technology.

In order to accomplish this goal, we work hard to;

– Inspire young people to take up careers in engineering and technology.

– Inform and influence

Governments and policy makers to encourage them to confidently implement engineering and technology-based solutions and in turn provide an environment where technical talent can flourish.

– Engage with the public to provide independent information and expert advice regarding the technology and engineering solutions they use every day.

43 IET Trustees’ Annual Report and Accounts 2023

Inspiring the next generation

Throughout the year we produced and distributed several major initiatives, including:

FIRST ® LEGO® League Together with our partners at FIRST ® and LEGO® we engaged with more than 40,000 children via this hand-on learning activity. This global programme which helps today’s students and teachers engage in a practical and fun way with robotics and become the professionals of tomorrow.

For further information regarding the impact that the IET makes in the education space, our latest impact report is available on the IET’s website.

Faraday Challenge Days , which is an annual competition of STEM activity days which features a real-world challenge for pupils aged 12-13 years to engage with as part of a team, or via a Virtual Faraday Challenge, which are aimed at 7–15 year-olds. Via this programme, we engaged with almost 6,000 students during the 2022 / 2023 season.

IET Trustees’ Annual Report and Accounts 2023

44

Promoting engineers, engineering, and technology

Our Communications activities in 2023 focused on providing engaging information and content for all those interested in the Engineering and Technology fields, regardless of age or experience.

Some of our highlights during the year include the following:

Over the summer we announced our latest Engineer a Better World campaign, which broadened children’s understanding of STEM in a fun and educational way. Using football and space, we asked children to design the very first Moon United football kit – after we worked with a panel of

engineers and technologists to realistically imagine what lunar football may look like in the future, and how it could be played. With two age categories, the competition attracted over 500 entries from across the UK and following a competitive judging process, our winners were chosen.

----- Start of picture text -----
Competition winners
----- End of picture text -----

IET Trustees’ Annual Report and Accounts 2023

45

Engineering Open House returned in June this year for a week of activities. This fun and educational experience for all ages provided exclusive, behind-the-scenes access to venues and STEM organisations across the UK – so young people and their families could explore, discover and experience first-hand the latest advancements in engineering and technology, as well as see first-hand the breadth of exciting career options available. With 21 companies on board including the likes of Airbus, Armagh

Planetarium, BT, Collins Aerospace, London Transport Museum, Make UK, and Zurich, a total of 30 events took place with more than 1,000 children, parents and teachers attending. As well as supporting each company with marketing, PR and social promotion for their events, ahead of these taking place, we worked with IET Young Woman Engineer of the Year, Ama Frimpong, to record a number of regional soundbites tailored to different companies and locations.

The Corporate Communications team also launched the final phase of its annual ‘Engineer a better world’ campaign throughout February and March. The campaign featured a national competition, Backpack to the Future , which challenged children aged 5-13 in the UK to design a school backpack featuring engineering and tech gadgets.

The winning design by 12-year-old Eleanor Woods was inspired by her mother’s experiences with asthma. Her ‘Breathe Better’ uses solar energy to filter out hazardous toxins in the air. The IET worked with global fashion brand HYPE® to create a prototype of the winning design which was both used for media work as well as being featured in a display in HYPE®’s flagship store in London.

46 IET Trustees’ Annual Report and Accounts 2023

Delivering thought leadership

Policy and thought leadership are central to the IET’s mission to inspire, inform and influence the global engineering community. As a member-led organisation, we act as a conduit for the expertise of

the profession to improve the world we live in and in doing this ensure that the ‘voice of engineering’ is heard.

2023 saw us continue our work to build our profile amongst policy makers and influence UK Government across a wide range of engineering and technology priorities, including:

What we said we would do

Annual Number of Young People, Parents and Teachers Engaged with an IET Education Resource.

Government Engagement with specific Engineering topics that the IET is targeting for adoption.

KPI 2023 target 178,100 KPI 2023 outcome 258,800

KPI 2023 target 8,400 KPI 2023 outcome 8,470

Our goals in this area include numbers of children engaged with via our FIRST ® LEGO ® League and Faraday Challenge Days, alongside the distribution of our on and offline educational resources, which are aimed at both students and their families.

We were able to overachieve against this target by a significant number.

We use a bespoke metric to measure our engagement with policy makers and industry. This metric assigns scores for the various types of activity that the Institution undertakes in order to promote engineering solutions to our various stakeholder groups, which in 2023 included:

We were able to closely match our target for Government Engagement and will continue to target and grow our influence further in subsequent years.

IET Trustees’ Annual Report and Accounts 2023

47

Financial review

Fig.1: 2023 Income analysis

The IET undertakes a diverse range of activities in pursuit of its charitable objects. Funding is principally achieved through a combination of fee-charging and primary purpose trading, together with contributions from the IET’s trading subsidiaries. This allows the IET to support a range of net-cost activities including education and policy work and the provision of significant digital resources to the broader engineering community, often without charge.

To achieve its objectives the IET needs to provide its services over the long-term and therefore aims to achieve a sustainable balance of income-generating and net-cost activities, whilst at the same time ensuring that an appropriate level of Reserves is maintained. Given the IET’s exposure to highly competitive and relatively mature publishing markets, the Institution continues to actively develop its products and services while managing the portfolio of activities to maximise its charitable impact in a financially sustainable way.

Financial outcomes in 2023

Group income generated in 2023 amounted to £66.4m, split as shown below (2022: £67.6m). Group expenditure in 2023 was £72.3m (2022 (restated: £67.3m). Consolidated net income including net investment gains/(losses) for the year was £3.4m (2022 (restated): net expenditure of £14.5m) before remeasurement of the defined benefit pension scheme and foreign exchange (losses)/gains on retranslation of foreign subsidiaries.

The activities undertaken in the year were carried out within the framework of budgetary control approved by the Trustees and all the income of the charity alone has been deployed on charitable activities or retained in the charity’s reserves (see Note 15).

Membership and Professional Development income in 2023 was £1.2m higher than in 2022. Income from Membership subscriptions recovered in the second half of the year and income from End Point Assessment continued to grow.

Donations and legacies £0.8m Trading activities £14.1m Investment and other income £4.6m Education, policy and awareness £0.7m Knowledge services and solutions £22.9m Membership and professional development £20.5m Share of profit in joint venture £2.9m

Within Knowledge Services and Solutions income fell by 25%. There was a significant drop in income from the 18th Edition, second amendment of the IET Wiring Regulations (BS 7671) and associated guidance notes, compared to the launch year 2022. This pattern is in line with previous cycles. There was also a reduction in income from the Wiley relationship due in large part to concerns around the integrity of submitted academic papers (part of an industrywide issue) leading to additional checks and slowing down the revenue stream.

Trading Income was £3.9m higher than in 2022 as business from hire of the IET’s venues recovered to pre-pandemic levels, along with a strong performance from the commercial events portfolio.

Income from Joint Ventures increased by £0.5m as the International Broadcasting Convention LLP (IBC LLP) continued its post-pandemic recovery. The IET’s share of the profit was £2.9m.

IET Trustees’ Annual Report and Accounts 2023

48

Fig.2: 2023 Expenditure analysis

Trading activities

The payments due to the IET by its UK trading subsidiaries undertaking activity to raise funds for its charitable purposes are £6,698,000 (2022: £4,475,000).

IET Services Limited undertakes professional magazine production and on-line recruitment advertising activities, as well as operating the rental of surplus IET accommodation and undertaking some of the group’s event management.

IET owns 100% of the shares in IET Conventions Limited (IETCL). IETCL changed its name from IEE Conventions Limited (IEECL) on 27 November 2023. IETCL has a 34% share in the profits of IBC LLP. This is accounted for in IETCL’s accounts as a joint venture; 34% of IBC LLP’s income and related expenditure are included in IETCL’s accounts (as per Note 2). IETCL’s result for the year was a profit of £2,938,000 (2022: profit of £2,478,000).

Expenditure on Charitable Activities in 2023 increased by 5.0% compared to 2022. Operational Spend was higher than in the prior year as a return of face-to-face activities to pre-pandemic level took place in many areas. This included higher expenditure on servicing the IET’s numerous global communities, and activity related increases in professional registration, and end point assessment. IT expenditure was higher than in 2022 and there was a full year of depreciation following the refurbishment of Future’s Place. In addition, a degree of restructuring cost was incurred in 2023. This related both to the outsourcing of E&T magazine and to the initial costs of transition to a new operating model which commenced in Q1 of 2024. Expenditure on trading activities was higher due to the increased level of income in the venue hire and events businesses.

Balance sheet and cash flow

The IET’s Group reserves and net assets, including Restricted Funds, increased in the year by £3.3m (2022 (restated): decreased by £17.8m). The more significant movements during the year were as follows:

IET Trustees’ Annual Report and Accounts 2023

49

Reserves Policy

The IET reviews its Reserves Policy regularly and in particular it is reviewed annually by the Finance and Investment Committee. The policy is structured such that we can maintain our Reserves at a sufficient level to ensure long term financial sustainability, while at the same time providing protection against the risks that have been identified and included within our Strategic Risk Register.

Total charity funds at the end of the reporting period were £183.0m (2022: £179.5m). Included in this total are restricted funds of £16.1m (2022: £14.9m), which represent amounts for restricted purposes specified by the donors and therefore not available for the general purposes of the charity.

Within the unrestricted funds the Trustees have earmarked designated funds for specific purposes. These include Fixed Assets reserves of £39.4m (2022: £41.8m) which could only be realised by disposal of the IET’s operational buildings and further amounts of £13.4m (2022: £11.3m) which are reserved to ensure those buildings can be refurbished or replaced over the medium to longer term. Further designations have been established to ensure funds are available to support future project investments.

The balance of the Charity’s General Funds at 31 December 2023 was £98.5m (2022 (restated): £95.6m). Under Charity Commission definitions these represent the Charity’s free reserves. In setting and monitoring its Reserves Policy and position, the Trustees are mindful of the key financial risks in relation to ensuring the continuity (and growth) of its charitable activities. With this in mind targets/monitoring parameters have been established in respect of key financial risks, including pension liabilities and volatility, operating and continuity risk and investment volatility. The overarching aim is to achieve a balance between achieving and maintaining a robust resilient financial position while using our funds to pursue the IET’s long term objectives and mission.

The operations contingency is set at 6 months’ future average expenditure and is designed to ensure that the charity can continue to operate fully in the short term in the event of an extreme event or set of circumstances occurring.

The revaluation contingency is set at 10% of unrestricted non-property investments and would insulate the IET from significant adverse movements in external financial markets, including investment values and currency movements.

The pension deficit is calculated on both the technical deficit basis (lower range) and the basis of expected Pension Scheme expenditure over time (upper range), which includes deficit recovery payments, expected expenses and wind-up costs payable.

Together, these items identify a target range for reserves as follows:

Fig. 3: Reserves coverage

----- Start of picture text -----
2023 2023 2022 2022
Charity only
Lower range £m Upper range £m Lower range £m Upper range £m
Operations contingency 31.5 31.5 32.5 32.5
Revaluation contingency 10.0 10.0 9.5 9.5
Pensions deficit 9.1 13.6
Target range for reserves 41.5 50.6 42.0 55.6
Actual reserves 98.5 98.5 95.6 95.6
Reserves coverage 237% 195% 228% 172%
----- End of picture text -----

IET Trustees’ Annual Report and Accounts 2023

50

The Trustees remain mindful of the long-term nature of the pension scheme liabilities and that movements in the pension scheme liability will impact on the resources available for general application. The Trustees have previously closed the IET scheme to future accrual to mitigate some risk and continue to work closely with the scheme trustees to manage scheme-related risks.

In assessing Reserves that are above target range the Trustees have adopted a medium-long term perspective (up to 10 years) to target use of surplus unrestricted funds. By taking this longer-term view, on-going adjustment can also be made to the level of reserve spending to moderate short-term volatility. At present levels this implies an average drawdown of Reserves of up to £4.4m per annum for use in the IET’s charitable activities.

In light of the IET’s financial and risk environment the level of Reserves and the policy for utilising excess Reserves is considered to be appropriate.

Investment policy

The Trustees’ general powers of investment derive from (and are restricted by) the Trustee Act 2000. These powers are not restricted by the IET’s Royal Charter, which states under clause 4:

“4. For the purpose of attaining the aforesaid objects the IET shall, subject to this Our Charter and the Bye-laws, have powers to do any act or thing and to administer the affairs and deal with the assets of the IET in all respects without any restrictions whatsoever and, in particular, (but without limitation):

The Board of Trustees has delegated the responsibility for investment activities of the Institution to the Finance and Investment Committee and included in that Committee’s terms of reference a requirement to ensure that the investments are managed in accordance with agreed policy and that this policy is clearly communicated in writing to the professional investment advisers engaged to undertake this activity.

The investment policy is reviewed annually by the Finance and Investment Committee and recommended to the Board of Trustees for approval.

The Finance and Investment Committee takes professional investment advice in developing the investment strategy and ensures that the investments of the IET held against the reserve funds and the trust funds are managed on behalf of the Board of Trustees in accordance with legislation and good practice.

All divestment transactions are approved by two authorised signatories prior to being transacted, unless such transactions have been delegated to a Fiduciary Manager. The investment signatory mandate is reviewed annually by the Finance and Investment Committee.

The IET’s investment strategy, including strategic asset allocations and investment management approach is developed with our Investment Advisors (Mercer). The portfolio constitutes a significant proportion of the IET’s total net assets and includes an investment property, Savoy Hill House, as well as a blend of non-property assets.

The IET’s non-property investment portfolio comprises both Passive Investment Funds that track given investment indices and Actively Managed Funds which seek to out- perform an index or achieve a target return (net of fees) through the skill of the manager.

Investment risk is managed at an overall level by diversifying the investment portfolio between different asset classes and geographic markets together with maximum ranges for these allocations.

Liquidity risk is managed by periodic forecasts of the Institution’s reserve and cashflow requirements to determine tolerance to illiquid asset classes.

IET Trustees’ Annual Report and Accounts 2023

51

The IET’s overriding investment objective is to provide medium-long term real returns with appropriate management of risk. Where we hold permanent endowment funds there is the additional requirement to deliver greater sustainable income over the long term.

The IET’s unrestricted investment strategy seeks to maintain a well-diversified portfolio and achieve higher overall returns without taking additional overall risk. This has included the introduction of Multi-Asset Credit (MAC) and Emerging Market Debt (EMD) together with an allocation to Private Market Investment to take advantage of the ‘illiquidity premium’.

The investment manager for MAC is Oak Hill and the investment manager for EMD and Private Markets is Mercer.

The allocation of unrestricted investment funds is summarised in the following table:

----- Start of picture text -----
Asset Class Performance Benchmark New Strategy
Composite Benchmark comprising of regional indices
Developed Equities provided by FTSE and MSCI Solactive Sustainable Global 36%
Developed Equity EU Paris-Aligned (NTR) Index
Emerging Market Equities MSCI Emerging Markets Index 4%
Diversified Growth 3 Month SONIA 12.5%
Private Markets Not applicable (up to) 15%
50% ICE BofA U.S. High Yield Index
Multi-Asset Credit (MAC) 12.5%
50% Credit Suisse Leveraged Loan Index
Emerging Market Debt (EMD) J.P. Morgan GBI-EM Global Diversified Index 7.5%
Fixed Income Global Opportunities Fund Not applicable 12.5%
Total 100%
----- End of picture text -----

The IET makes use of a drawdown service to facilitate capital calls into Private Market Investments using a Passive Sustainable Global Equity Fund. Over and above these funds held for drawdown, any committed funds allocated to Private Markets are held in the Diversified Growth Fund, pending longer term investment calls.

Funds not yet committed to Private Markets (that would otherwise make up the balance of the ‘up to 15%’ strategic allocation) are held proportionately across the other asset classes in line with their strategic allocations, pending any future commitment.

IET Trustees’ Annual Report and Accounts 2023

52

The current approved strategic asset allocations, which include tailored allocations in respect of the Restricted (i.e. Endowment) Funds, are shown below:

----- Start of picture text -----
Unrestricted Funds Expendable Endowment Permanent Endowment
Developed Market Equities 36% 47% 75%
Emerging Market Equities 4% - -
Diversified Growth Fund 12.5% 15% -
Private Markets (up to) 15% - -
Multi-Asset Credit 12.5% 15% 16%
Emerging Market Debt 7.5% 8% 9%
Absolute Return Bonds 12.5% 15% -
Total 100% 100% 100%
----- End of picture text -----

Cash balances arising from the results of operational and investment activities above that which is required for investing in ongoing operations are available for investment and normally invested externally and liquidated as reserves fall due to be utilised.

Money in the form of cash balances arising from operational timing differences will be placed on overnight or short to medium term deposit with a UK clearing bank (minimum A risk rated). Except for IET’s principal bankers, there is a maximum limit for the IET Group (“IET”) of up to £2m deposit with any one organisation. It is permitted to place short to medium term deposits with a higher risk (i.e. lower than A rated) bank or building society if it is cost effective, subject to approval by the Finance and Investment Committee. Where the overnight deposit accounts, which are maintained with IET’s principal bankers, temporarily exceed that required for investment in ongoing operations (e.g. in January following significant numbers of membership receipts), the IET seeks to identify suitable deposit accounts with alternative providers as quickly as possible.

The IET will not enter into any contract-based foreign currency hedging.

The Trustees have considered in detail the requirements of the Charity Commission’s Guidance note “Charities and investment matters: a guide for trustees” (CC14).

The IET exists to deliver benefit to society by working to engineer a better world. The Trustees believe sound and transparent governance, alongside attention to the societal impacts of organisational outcomes, supports the development and delivery of beneficial engineering and technology solutions to society.

The IET also has a specific objective to accelerate the pace of development and adoption of technology that supports the move towards a zero-carbon future to address the impacts of climate change on society and the wider environment.

IET Trustees’ Annual Report and Accounts 2023

53

The Trustees believe that Environmental, Social and Governance (ESG) factors can have a material impact on investment risk and return outcomes and that good stewardship can create and preserve value for companies and markets. IET therefore reflects these considerations, and particularly the role of financial markets in supporting the transition towards a more sustainable future, in its investment strategy.

ESG considerations are a standard part of the selection process when appointing new fund managers and the Institution requires its investment managers to have an ESG Policy in place in the selection, retention and realisation of investments together with a well-developed focus on governance factors and the ability to demonstrate at least some indication, and preferably demonstrable evidence, of progress in stewardship with respect to environmental and social factors.

The Finance and Investment Committee uses ESG ratings and research information provided by their investment advisor, Mercer, to monitor the level of an investment manager’s integration of ESG into their investment process and philosophy.

Investment performance

The Institution’s non-property investment portfolio is monitored through monthly reports for management accounting purposes as well as quarterly performance reports which are reviewed at every meeting by the Finance and Investment Committee and include our investment advisor’s view of both investment management and ESG ratings. The Institution’s investment property is valued annually.

For Passive Investment Funds, a desk research exercise is carried out every three years, with the assistance of the IET’s investment advisers, to reaffirm the Investment Manager’s credentials and suitability. For Actively Managed Funds, each new selection is managed on a case-by-case basis and a detailed review of past performance is carried out annually for such funds with the relevant Investment Manager.

The Committee monitors investment performance of equities and bonds against relevant benchmark indices.

The Trustees have not specifically excluded any asset type, or individual investments in light of its charitable objectives or ESG policy, however, recognise that a degree of bias away from investments with weaker ESG performance and towards stronger ESG performance will influence the makeup of underlying investments. Within its allocation to private markets, the IET considers that funds which focus on sustainable investment strategies will positively impact the application of science, engineering and technology to achieve public benefit.

IET Trustees’ Annual Report and Accounts 2023

54

Total net investment gains/(losses) plus investment income from the non-property investment portfolio during the year resulted in net gains of £14.4m (2022: net losses of £9.7m). The performance compared to Benchmark of the non-property investment portfolio for 2022, and the 3 years 2021-2023 (annualised) were as follows:

----- Start of picture text -----
Year ended 31 December 2023 3 years ended 31 December 2023
Over/(Under) Over/(Under)
Actual Benchmark Actual Benchmark
Performance Performance
BlackRock Portfolio
Dynamic Diversified
8.87% 4.71% 4.16% 0.86% 2.04% -1.18%
Growth Fund
Cash Liquid Heritage 4.63% 4.71% -0.08% 1.97% 1.99% -0.02%
UK Equities 7.70% 7.64% 0.06% 8.66% 8.47% 0.19%
North American
18.90% 18.86% 0.04% 11.23% 11.18% 0.05%
Equities
European Equities 15.39% 14.83% 0.56% 7.92% 7.38% 0.54%
Japan Equities 13.55% 13.53% 0.02% 3.05% 3.03% 0.02%
Pacific (ex Japan)
0.38% 0.44% -0.06% 4.00% 3.97% 0.03%
Equities
Emerging Market
3.27% 3.63% -0.36% -3.09% -2.84% -0.25%
Equities
Developed World
16.94% 16.81% 0.13% 9.93% 9.80% 0.13%
Equities
Mercer Portfolio
Emerging Market Debt 9.80% 6.30% 3.50% 1.70% -0.90% 2.60%
Passive Sustainable
N/A N/A N/A N/A N/A N/A
Global Equities
Sustainable
5.40% N/A N/A N/A N/A N/A
Opportunities (PIP VI)
Global Impact (PIPVII) N/A N/A N/A N/A N/A N/A
Oakhill Portfolio
Diversified Credit
15.19% 13.29% 1.90% N/A N/A N/A
Strategies
----- End of picture text -----

IET Trustees’ Annual Report and Accounts 2023

55

Our plans for the future

Delivering our Strategy

Throughout 2024 and beyond, the IET will continue its mission to promote engineering and technology.

2024 will see us continue to develop our activities with the needs of our primary audiences – practitioners, industry, academia and society – in mind.

The world is changing rapidly and by benchmarking new metrics aimed at helping us serve our key audiences better, we aim to stay as relevant as possible to the engineering community.

We have developed a deep range of metrics which will help us drive performance improvement and further understand not only the impacts we create as an Institution, but also where we might be able to optimise operations, ensuring that we can deliver the most impact in the most sustainable way.

Of course, our digital capabilities and resilience will be key success in this endeavour and our Customer Relationship Management project is ongoing. This will help us to ensure that our operational capabilities are align and able to drive and adapt to change.

Key Performance Indicators

Our Strategic Key Performance Indicators remain unchanged in 2024, but the IET’s Board of Trustees will be assessing and evaluating a wide range of metrics throughout the year with a view to refreshing the way we measure our success.

----- Start of picture text -----
Strategic Theme Key Performance Indicator 2023 Actual 2024 Target
Engineering Excellence Annual number of IET members achieving Engineering 2,432 2,570
Council registered status in-year
Skills, Learning and Non-apprentice student and apprentice members 37,040 37,410
Networks below the age of 40 (excluding those in India and
China)
Research Solutions Average Journal Impact Factors 2.2 2.3
Innovation and Policy Government Engagement Score 8,470 8,400
Education Engagement with IET Education Activity / Resources 258,800 285,272
Enabling Metrics
Achievement of Annual Budgets (£’s k) (3,696) (5,939)
Extent to Which Volunteers Recognise the Ways in 88.0% 85.0%
Which their Contributions Align to the Beneficial
Impacts the IET Seeks to Deliver
----- End of picture text -----

IET Trustees’ Annual Report and Accounts 2023

56

Structure, governance and management

Organisational structure

The IET was founded in 1871 and incorporated by Royal Charter in 1921. The current Royal Charter of the IET was allowed by the Privy Council on 14 November 2007 and came into effect from 1 January 2008, and the current Byelaws were approved by the Privy Council on 27 September 2016 and came into effect on 1 October 2016.

The Board of Trustees comprises the charity trustees of the IET and meets regularly throughout the year to conduct the business of the IET in accordance with the Royal Charter and Bye-laws. Key issues discussed by the Trustees during the year included:

Minutes of the Board of Trustees’ meetings, together with open Board papers can be found on the IET website.

IET Trustees’ Annual Report and Accounts 2023

57

The Trustees have established a structure of Boards and Committees from within the membership to monitor and control key areas of the IET as shown in the graphic below. Terms of reference for each of these bodies can be found in the About Us area of the Institution’s website.

Individual Trustees are appointed to membership of these Boards and Committees alongside non-Trustee members to ensure strong communication and co-ordination of decisionmaking.

Governance Review

The IET commissioned an independent Governance Review in 2023 which was conducted by BDO UK LLP. The purpose of the review was to examine the upper levels of the governance of the IET and consider the effectiveness of the current arrangements for the IET and its activities. A report was submitted to the Board of Trustees in June 2023 and over the following months a number of actions were agreed in response to the report.

Trustee election, induction and training

Trustees are normally elected by the membership from candidates who are either proposed by the Trustees, based on appropriate skills and competencies, or are nominated by 10 or more members. The President and Deputy Presidents are appointed by the Board of Trustees.

All new Trustees are provided with an Induction Pack, including relevant Charity Commission publications, which outlines the responsibilities and role of a Trustee and provides key information about the institution and its management.

Trustees are invited to attend orientation meetings with the President and senior staff and are asked to attend an induction seminar delivered by an external expert. They have access to the services of the Governance Department which maintains a training log and provides information and support as required.

Fig. 4 Governance Structure.

----- Start of picture text -----
Governance Committees Board of Trustees Main Boards
Audit and Risk Process Equality, Diversity
and Inclusion
Council
Finance and Investment
Knowledge Services
and Solutions
Nomination and Succession
Membership and
Professional Development
Policy Oversight
Remuneration Volunteer Engagement
----- End of picture text -----

IET Trustees’ Annual Report and Accounts 2023

58

Membership

Membership of the IET is open to any individual with an interest in science, engineering or technology. The Institution is not constituted for the gain of its members and members have no claim over the property of the Institution. However, as a membership body, engagement of members in the activities of the IET is key to the successful delivery of its mission.

Members enjoy key rights and responsibilities as defined in the Royal Charter and Bye-laws, and participation as volunteers in both governance and delivery processes ensures their influence on decision making. In addition, the IET undertakes an annual membership survey, holds an annual Membership Information Event and brings volunteers together for training events as required.

The Trustees have approved and put in place formal Delegations of Authority, which are accessible to all staff within the IET. The Royal Charter and Bye-laws require certain decisions to be taken by the IET in General Meeting.

Within these constraints it is the policy of the Board of Trustees that authority shall be delegated to the greatest extent compatible with the Trustees’ overall direction and control of the IET and to the point in the IET where it can be exercised most effectively. The Trustees retain responsibility for all acts taken under these delegated responsibilities.

An annual business planning cycle is in place resulting in the production of a rolling three-year IET Plan. The Trustees also meet outside routine Board meetings to review key strategies and organisational objectives, as well as to review and approve the output of the planning process. Input to strategy and plan development is provided by the Main Boards and Council and informed by member and user feedback as well as structured research. The Trustees monitor progress on a regular basis against strategic objectives and budgets set out in the IET Plan.

The Trustees also ensure strong communications with key Boards and Committees through committee membership as follows:

Decision-making.

----- Start of picture text -----
Trustee roles Appointed Retired Attendance Other governance roles
(from 1 (from 30 (actual/
October) September) potential)
Y M Akinola 2023 1/2 Nominations and Succession Committee
(Vice President) (from 1 Oct)
Dr B S Bhangu 2020 2023 3/5 Knowledge Services and Solutions Board
(Vice President) (until 30 Sep) Nominations and Succession
Committee (until 30 Sep)
Professor R A Cryan 2020 5/7 Nominations and Succession Committee
Remuneration Committee
Professor T R Dafforn 2022 6/7 Policy Oversight Committee
(Vice President)
K Deacon 2021 7/7 Nominations and Succession Committee
(from 1 Oct)
----- End of picture text -----

IET Trustees’ Annual Report and Accounts 2023

59

----- Start of picture text -----
D W A East 2023 1/2 Audit and Risk Process Committee (from 1 Oct)
(Deputy President) Finance and Investment Committee (from 1 Oct)
Nominations and Succession Committee
(from 1 Oct)
Remuneration Committee (from 1 Oct)
A Feng 2022 7/7 Audit and Risk Process Committee
Finance and Investment Committee
Nominations and Succession Committee
Dr S D Hart 2023 2/2 Audit and Risk Process Committee (from 1 Oct)
(Vice President and Finance and Investment Committee (from 1 Oct)
Honorary Treasurer) Knowledge Services and Solutions Board
(from 1 Oct)
Membership and Professional Development Board
(from 1 Oct)
Remuneration Committee (from 1 Oct)
Volunteer Engagement Board (from 1 Oct)
Dr A C Harter 2019 2023 3/3 Audit and Risk Process Committee (until 5 May)
(Deputy President) Finance and Investment Committee (until 5 May)
Nominations and Succession Committee
(until 5 May)
Remuneration Committee (until 5 May)
S E Hubbard 2022 7/7 Membership and Professional Development Board
(Vice President) Nominations and Succession Committee
R C Hurst 2020 2023 5/5 Audit and Risk Process Committee (until 30 Sep)
(Vice President and Finance and Investment Committee (until 30 Sep)
Honorary Treasurer) Knowledge Services and Solutions Board
(until 30 Sep)
Membership and Professional Development Board
(until 30 Sep)
Remuneration Committee (until 30 Sep)
Volunteer Engagement Board (until 30 Sep)
A S Hutty 2021 5/7
Dr G Katragadda 2019 7/7 Audit and Risk Process Committee (until 30 Sep)
(President) Finance and Investment Committee (until 30 Sep)
Nominations and Succession Committee
Remuneration Committee
Eur Ing Dr C Marsh 2022 7/7 Nominations and Succession Committee
(Vice President) Volunteer Engagement Board
Professor R Nag 2022 7/7 Audit and Risk Process Committee (from 1 Oct)
Finance and Investment Committee (from 1 Oct)
Professor P M 2020 5/5 Audit and Risk Process Committee (until 30 Sep)
Needham Finance and Investment Committee (until 30 Sep)
Nominations and Succession Committee
(until 30 Sep)
----- End of picture text -----

IET Trustees’ Annual Report and Accounts 2023

60

----- Start of picture text -----
D E Ohlson 2023 2/2 Audit and Risk Process Committee (from 1 Oct)
(Deputy President) Finance and Investment Committee (from 1 Oct)
Nominations and Succession Committee
(from 1 Oct)
Remuneration Committee (from 1 Oct)
Colonel A J Rogers 2023 1/2
M R Singhal 2023 2/2
Professor S K 2021 3/7
Spurgeon
(Vice President)
Professor K Sugden 2020 5/5
Sir Julian Young 2016 5/7 Nominations and Succession Committee
Policy Oversight Committee
Remuneration Committee
----- End of picture text -----

Effectiveness reviews

The Main Boards and Committees of the IET complete an annual exercise to identify skills gaps and assess their effectiveness. The most recent independent Governance Review was conducted by BDO UK LLP in 2023.

Remuneration of key management personnel

The key management personnel of the charity comprise the Trustees and key staff, being the Chief Executive and Secretary and other members of the Executive Team who are routinely in attendance at Board of Trustees meetings.

The IET’s policy is that no Trustees are remunerated for their services as a Trustee.

There is a Remuneration Committee made up of both current Trustees and other members appointed by the Trustees. The Committee has responsibility for agreeing the pay and remuneration of the charity’s key staff on an individual level and has access to external professional advice which includes benchmarking, market trends and advice on structuring of incentives.

The key staff are currently remunerated by a combination of base salary and benefits, together with bonuses. The objectives set for the Chief Executive and Secretary (CES) and Executive Team have both corporate (short-term and long-term) and individual performance elements and are aligned to the strategic objectives of the IET to promote the long-term success of the institution.

Performance against the IET’s values and individual objectives are assessed in the first instance by the President for the CES, and by the CES for the Executive Team and outcomes for all objectives are reviewed by the Remuneration Committee annually.

Gender Pay Gap

Our Gender Pay Gap (GPG) report for 2023 reflects our ongoing commitment to transparency, equality, and fostering an inclusive organisation. The report, which measures the difference in average earnings between men and women across the organisation in the UK, follows the requirements and methodology outlined in the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017.

IET Trustees’ Annual Report and Accounts 2023

61

As of a snapshot date of 5, April 2023, our GPG is 24.4%, a reduction of 4.4% from the equivalent 2022 figure. Key factors positively impacting our position include an uplift in the number of women moving into senior roles. The success of our Women’s Leadership Development Programme for example, has seen over 60% of participants experiencing substantial post-programme development. However, challenges persist, particularly in our lower pay quartile, where male representation has decreased and poses an area for focused attention.

A key priority for us is achieving gender parity at all levels and our report acknowledges the targeted interventions we will make. These include;

– Mentoring

We are currently operating a successful internal mentoring scheme and will continue to build on the importance of mentoring in accelerating the careers of women.

– Wellbeing

We know that different life stages can have a negative impact on women’s careers. as such we will be reviewing our wellbeing agenda.

– Re-orientation

We will introduce a structured re-orientation programme for colleagues returning from extended leave such as maternity, shared parental and adoption leave, to support women and their careers.

– Profile-raising

We will continue to raise the profile of women in the IET, including ensuring the opportunity for our Women’s Leadership Development Programme alumni to deliver learning sessions to the wider organisation.

– Leadership development

We will deliver our third Women’s Leadership Development Programme in 2024.

– Flexible working for all

We will ensure more men are aware of the flexible working arrangements on offer.

– Coaching for line managers

We will invest in offering coaching development for all line managers; we know through research that women, in particular, thrive in a coaching planning.

– Gender balance in recruitmen t

We have set ourselves a target of no single-gender interview lists. We will monitor and report on our success in achieving this target within our 2024 gender pay gap report. To evolve best practice, we’ll continue to work with EDI-focused networks such as ‘Women in Tech’ and ‘Women in Data’ and review our recruitment partners and platforms.

– Menopause support

We aim to meet this through considered and measured programmes of work that centre around internal talent development, structured succession planning and greater awareness of our wellbeing and flexible working initiatives.

As an organisation we remain committed to creating a workplace where talent flourishes irrespective of gender or any individual characteristic. We will continue to ensure that our colleague community, as well as the work that we do, reflects our shared values of equality and inclusivity.

Charity Governance Code

In February 2018, the IET adopted the Charity Governance Code for Larger Charities (2017) replacing the Charity Governance Code which was adopted by the IET in 2012. The Board of Trustees receives regular reports reviewing the use of, and compliance with, the Code. The majority of recommended practices within the Code correspond with the practices of the IET and where the IET has not adopted some of these practices the Board of Trustees receives an explanation of the reasons.

IET Trustees’ Annual Report and Accounts 2023

62

Risk management

The Trustees have implemented a risk management strategy which includes the maintenance and regular review of a strategic and operational risk register. The Trustees regularly review the strategic risks, and the risk management framework is supported by the work of the Audit and Risk Process Committee, as well as the Main Boards and Committees, which monitor certain strategic risks as delegated by the Board of Trustees. New risks can occur at any time and therefore strategic risks will be considered and reviewed on an ad-hoc basis as relevant, but existing risks will be reviewed at least annually.

Risk mitigation and management plans, including internal controls, are developed in agreement with the senior staff. The strategic and operational risk register informs the planning of Internal Audit work which is agreed by the Audit and Risk Process Committee and includes testing of internal controls.

More widely, risk awareness and management is promoted through skills audits, project management methodologies, the use of professional advisors and the recruitment of staff with specialist skills, including Legal and Compliance.

The most significant strategic risks and uncertainties faced by the IET in 2023 are shown in the table below.

It is unfortunate that although there has been a total recovery from the impact of COVID 19 on business in the UK in regard to risks to membership recruitment, this has been replaced by economic uncertainty and some businesses are re-evaluating continuing to fund PEI fees.

Overall, the Trustees are satisfied that the major risks have been reviewed and systems or procedures have been established to manage those risks, albeit that absolute assurance cannot be achieved.

Strategic Risk

Established processes in place for virtual engagement with potential members and professional registrants. Employer engagement through IET Partnership Programme virtually and physically. Professional development on-line with LifeSkill courses and new launch Career Manager Phase 3 with increased monthly engagement. Discounts available for hardship and early career stage.

Ability to recruit members and encourage professional development

----- Start of picture text -----
Maintaining Appropriate information policies and
systems procedures have been put in place and
integrity and these are subject to both internal review
information and external testing. Risk assessments,
security incident management and business
continuity procedures are also in place.
Specialist role within the staff team.
Know Your Operational benefits, delivery
Customer, the and governance. Focus on change
IET’s project management to bring the organisation
overseeing the along on the change journey to ensure
introduction meaningful process improvement to
of a new benefit the Member and customer
Customer experience and operational effectiveness.
Relationship Clear plans around integration, data
Management migration, and release management
system. (including UAT, cut over and roll back
options for all phases). Executive and
sponsor control group governance in
place to manage programme delivery and
benefits are in line with objectives, plans
and budgets at each phase of delivery
with clear measurable outcomes.
Ensuring IET’s The IET has previously adopted a
activities financial framework to structure
remain budgeting in the context of reserves
financially and medium-range budgets. Mitigations
sustainable include forecasting, strategic planning,
portfolio management and sound
procurement practices.
----- End of picture text -----

IET Trustees’ Annual Report and Accounts 2023

63

----- Start of picture text -----
Ability to The scheme has previously been closed Ability to Building key relationships, engaging
meet defined to accrual. Risk reduction and funding maintain status on topics of relevance to government
benefit approaches, including liability-driven and influence and ensuring a high quality of expertise
pension investments and partial buy-in of in Public within IET.
liabilities liabilities have been agreed with scheme Policy
trustees. Long-term risks are supported
by IET’s own Reserve policy. Ability Increase face to face engagement
to recruit between staff and volunteer groups.
Ensuring Policies and procedures in place and and retain Making full use of the volunteers in post
compliance regular training provided. Specialist role Volunteers for Registration and Fellowship activities.
with data within the staff team. Recruitment of New Volunteers. Ensuring
protection law volunteers are appropriately supported
and recognised for their commitment.
Threats to The IET’s financial model depends on
the level of contributions generated from mature Safeguarding Ensuring suitable policy, procedures and
publishing publishing products. Mitigations include children and checks are in place as well as mandatory
revenues close management and renewal of vulnerable training for all staff and volunteers.
strategic partnerships and vendors, adults
product development and new product
initiatives.
Protecting Scanning for market trends and threats Related parties and collaboration
the intangible to business value together with
value of appropriate development of existing with other charities
business products to maintain relevance.
assets The IET owns seven active incorporated subsidiaries as
described in Note 2. These include two companies in the
Business With the support of external expertise, UK operating on a commercial basis, principally in the areas
continuity the IET maintains a Business Continuity of room lettings, publishing and technical conference and
and disaster Plan and tests it regularly based on exhibition management services.
recovery simulated scenarios.
The IET works in cooperation with Learned Societies,
Adequate Standard project methodologies employers, educators and other bodies within the
project (including Agile) supported by structured
engineering and technology sector and in close
management Project Office procedures and Executive
partnership with the Engineering Council and Engineering
capabilities monitoring. Qualified and dedicated
UK. Cooperation includes the development of common
for effective project managers are used for key
development projects. standards, shared products, activities, and promotional
materials.
Liabilities and Use of suitably qualified staff together
reputational with robust editing and checking The IET is one of many Professional Engineering Institutions
risk resulting procedures. Up to date quality control in the UK and collaborates in a number of ways with the
from systems in place. objectives of leveraging the combined capabilities of these
publications, organisations for the benefit of society.
opinions and
advice
The Institution also collaborates with the IET Benevolent
Fund (Foothold) who provide benevolent services to IET
Adverse trends Recruitment focus on student and members and staff.
in member early career members. Development of
demographics engagement through IET On Campus
and other Young Professional oriented
activities. Increased engagement
with engineering employers. Proactive
marketing.
----- End of picture text -----

IET Trustees’ Annual Report and Accounts 2023

64

Corporate Social Responsibility

As a registered charity, we exist to deliver public benefit and we achieve this primarily through the advancement of knowledge in science, engineering and technology to deliver solutions to the needs of wider society.

We promote and encourage ethical behaviour in the practice of these disciplines by all stakeholders. In so doing, we seek to raise the level of public trust and confidence in the positive contribution to society made by science, engineering and technology. In joining the IET, all members must agree to abide by the Rules of Conduct which aim to support members to take an ethical stance when balancing the often-conflicting interests and demands of employers, society, and the environment.

We have a shared set of values for our staff and volunteers and seek to develop the skills and opportunities of staff and volunteers as part of a single team.

Many of our members support the work of the IET Benevolent Fund (Foothold). In 2010, we became a patron of disaster relief charity RedR. RedR works on an international level to improve the effectiveness of disaster relief, by delivering essential training and support to relief organisations and their staff, and by providing skilled professionals to humanitarian programmes.

In addition to the expectations to protect the environment included within the Members’ Rules of Conduct, we also seek to support environmental sustainability within its own operations.

Transparency in Supply Chains (TISC): Modern Slavery Act Statement

The IET runs its activities with integrity. Modern slavery is a complex and multi-faceted crime and tackling it requires all of us to play a part. The IET is committed to preventing acts of modern slavery and human trafficking from occurring within its business and supply chain and to improving our practices to combat slavery and human trafficking.

The IET’s Supply Chain

In order to deliver its activities, the IET works with a range of suppliers, including publishing services, software services, catering and facilities management, and professional services.

Policies

The IET has an Anti-Slavery Policy in place and offers guidance on whistleblowing on its website at https:// www.theiet.org/membership/professionalism-and-ethics/ - - - professional ethicsresources/whistleblowing guidance for-members as well as having staff and volunteer policies on whistleblowing. The IET also has a comprehensive Procurement Manual in place which sets out a procurement framework designed to ensure that modern slavery is not present within the IET’s business.

The IET’s Rules of Conduct for Members embed ethical behaviour across IET’s membership and oblige members to observe the provisions of the Statement of Ethical Principles published by the Engineering Council and the Royal Academy of Engineering.

Actions to minimise risk of Slavery

The IET takes a multifaceted approach, which includes the following:

During 2020 and ongoing into 2023, the IET requested, via our procurement policy and forms, that all contracts must include anti-slavery statements. In 2023 a project to review all standard templates was started, and is ongoing, and all the templates reviews that have been completed contain the appropriate anti-slavery statement.

In 2023 the IET embarked on a new relationship with Redactive who are now responsible for delivering E&T magazine and associated content. During the tender and contract signing a comprehensive due diligence process was completed and the contract contains AntiSlavery commitments. Site visits were carried out and the relationship ongoing requires some close working between the IET and Redactive to deliver on its purpose.

The Modern Slavery Act 2015 requires UK organisations with an annual turnover of £36m or more to report on the steps they are taking to ensure that modern slavery is not taking place in its supply chains and publish with a link via the home page on its website. This includes the IET.

IET Trustees’ Annual Report and Accounts 2023

65

Futures Place, our main office based in Stevenage, remains an area of focus, including for cleaning and catering services. Operatives are on site so any unusual work practises would be visible. Catering and cleaning are also generally consistent, allowing individuals to become known to facilities colleagues over time and relationships developed.

In December 2023 the IET started a process to review the Right to Work checks for all UK employees, to be completed in January 2024.

We have Modern Slavery provisions included in our operating manuals for both India and China offices.

Technology contracts are split into strategic, operational and commodity as classes of importance. They are reviewed on a regular basis and on their renewal cycle – all our key contracts have modern slavery clauses in them.

With regards to countries which may be considered higher risk, for IT, the key locations are Bulgaria for Ontotext and India for NEC Software and River Valley Technologies (RVT). All have UK offices / are part of larger international corporations. It is considered that the likelihood of risk is very low with these 3 suppliers and there was no impact in 2023.

As part of ongoing due diligence, regular meetings with suppliers in Bulgaria and India are held to ground truth the situation with regards to our key strategic suppliers – we look to visit at least once a year. For example, in 2023 NEC Software were visited twice to discuss matters with their senior management, RVT visited in December, and we have regular account manager contact. These regular meetings will continue into 2024 and beyond.

Our recruitment practices help prevent the risk of modern slavery within our organisation. Our employment agreements and policies are managed locally, based on global templates and principles but adapted for the relevant local context and applicable law.

are paid a living wage in the countries it operates in, and benchmarking salaries to ensure that they remain competitive in the sector;

Continuous review and risk mitigation

The IET Anti-Slavery Policy sets out the IET’s principal risk areas. The IET recognises the need to continually assess the risks of slavery or human trafficking. The IET also recognises that there may be gaps in visibility of supply chains and limitations in the tools used to identify risks. Addressing these is a complex task and is under continuous review to develop an effective framework. The IET recognises the need for modern slavery training across the organisation to widen awareness, particularly for those staff members who are involved in managing recruitment and our supply chains and during 2022 rolled out an eLearning module to all IET staff on Modern Slavery and this continued with a second rollout of eLearning in 2023. 99% of staff have completed this training within the last two years, across all global offices.

To date, the IET has not found any instances of modern slavery in its operations or supply chain.

This statement was approved by the Board of Trustees on 5 February 2024.

Some of the other recruitment measures which the IET has in place include:

IET Trustees’ Annual Report and Accounts 2023

66

Statement of Trustees’ Responsibilities

The Trustees are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law, regulations and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group and charity for that period. In preparing these financial statements, the Trustees are required to:

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

The Trustees Report on pages 4 to 47 was approved by the Trustees on 13 May 2024 and signed on their behalf by:

– state whether applicable United Kingdom accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Dr Gopichand Katragadda BE MS PhD CEng FIET IET President

May 20, 2024

IET Trustees’ Annual Report and Accounts 2023

67

Independent auditor’s report to trustees of the Institution of Engineering and Technology

Opinion on the financial statements

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We have audited the financial statements of The Institution of Engineering and Technology (“the Parent Charity”) and its subsidiaries (“the Group”) for the year ended 31 December 2023 which comprise the consolidated statement of financial activities, the IET statement of financial activities, the consolidated and IET balance sheets, the consolidated statement of cash flows 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

We remain independent of the Group and the Parent Charity in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related 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 the Parent Charity’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.

IET Trustees’ Annual Report and Accounts 2023

68

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 Trustees are responsible for the other information. The other information comprises the information included in the IET Trustees’ Annual Report and Accounts, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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 themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ responsibilities, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent Charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion;

– the information given in the Trustees’ Report for the financial year for which the financial statements are prepared is inconsistent in any material respect with the financial statements; or

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

– we have not received all the information and explanations we require for our audit.

IET Trustees’ Annual Report and Accounts 2023

69

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance 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:

Non-compliance with laws and regulations

Based on:

– Obtaining and understanding of the Group’s policies and procedures regarding compliance with laws and regulations

we considered the significant laws and regulations to be the applicable accounting framework and UK tax legislation.

The Group is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be employment law and data protection.

Our procedures in respect of the above included:

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

Based on our risk assessment, we considered the areas most susceptible to fraud to be posting of inappropriate journal entries and management bias in accounting estimates.

Our procedures in respect of the above included:

70 IET Trustees’ Annual Report and Accounts 2023

not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: https://www.frc.org.uk/auditorsresponsibilities . This description forms part of our auditor’s report.

Use of our report

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of

BDO LLP, statutory auditor Gatwick, UK 21 May 2024

This report is made solely to the Charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and the Charities and Trustee Investment (Scotland) Act 2005. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

IET Trustees’ Annual Report and Accounts 2023

71

Consolidated Statement of Financial Activities

for the year ended 31 December 2023

Restricted & Unrestricted Restricted & Total
Unrestricted Endowment Total Funds Endowment Funds
Funds Funds Funds (restated) Funds (restated)
2023 2023 2023 2022 2022 2022
Notes £000 £000 £000 £000 £000 £000
INCOME AND ENDOWMENTS FROM:
Donations and legacies - 814 814 1 553 554
Trading activities 2 14,094 - 14,094 10,178 - 10,178
Investment and other income 3 4,039 513 4,552 3,917 434 4,351
Charitable Activities
Education, policy and awareness 676 - 676 293 - 293
Knowledge services and solutions 22,882 - 22,882 30,451 - 30,451
Membership and professional development 20,458 - 20,458 19,260 - 19,260
Share of profit in joint venture 2 2,938 - 2,938 2,478 - 2,478
Total 65,087 1,327 66,414 66,578 987 67,565
EXPENDITURE ON:
Raising Funds
Fundraising costs 429 - 429 334 - 334
Trading activities 4,976 - 4,976 3,663 - 3,663
Investment management fees 1,001 53 1,054 566 50 616
Charitable Activities
Education, policy and awareness 6,319 2,335 8,654 7,742 1,939 9,681
Knowledge services and solutions 36,528 - 36,528 33,425 - 33,425
Membership and professional development 20,677 - 20,677 19,613 - 19,613
Total 5 69,930 2,388 72,318 65,343 1,989 67,332
Net gains/(losses) on investments 9 7,102 2,240 9,342 (12,668) (2,016) (14,684)
Net income/(expenditure) 2,259 1,179 3,438 (11,433) (3,018) (14,451)
Other recognised (losses)/gains:
Remeasurements of net defined benefit
pension schemes 16a (44) - (44) (3,465) - (3,465)
Foreign exchange gains arising on retranslation
of foreign subsidiaries (103) - (103) 81 - 81
Net movement in funds/(deficit) 2,112 1,179 3,291 (14,817) (3,018) (17,835)
Reconciliation of funds:
Total funds brought forward 165,773 14,882 180,655 180,590 17,900 198,490
Total funds carried forward 15b 167,885 16,061 183,946 165,773 14,882 180,655

All income and expenditure is derived from continuing activities. The Statement of Financial Activities includes all gains and losses recognised in the year.

The Notes on pages 76 to 107 form part of these financial statements.

IET Trustees’ Annual Report and Accounts 2023

72

IET Statement of Financial Activities

for the year ended 31 December 2023

Restricted & Unrestricted Restricted & Total
Unrestricted Endowment Total
Funds		 Endowment Funds
Funds Funds Funds
(restated)		 Funds (restated)
2023 2023 2023
2022		 2022 2022
Notes £000 £000 £000
£000		 £000 £000
INCOME AND ENDOWMENTS FROM:
Donations and legacies
Qualifying charitable donations due to the IET 2 6,698 - 6,698
4,475		 - 4,475
Other donations and legacies - 814 814
1		 553 554
Investment and other income 3 9,619 513 10,132
8,811		 434 9,245
Charitable Activities
Education, policy and awareness 677 - 677
293		 - 293
Knowledge services and solutions 22,622 - 22,622
30,096		 - 30,096
Membership and professional development 20,108 - 20,108
18,954		 - 18,954
Total 59,724 1,327 61,051
62,630		 987 63,617
EXPENDITURE ON:
Raising Funds
Fundraising costs 429 - 429
334		 - 334
Investment management fees 1,001 53 1,054
566		 50 616
Charitable Activities
Education, policy and awareness 6,319 2,335 8,654
7,742		 1,939 9,681
Knowledge services and solutions 36,480 - 36,480
33,343		 - 33,343
Membership and professional development 20,216 - 20,216
19,305		 - 19,305
Total 5 64,445 2,388 66,833
61,290		 1,989 63,279
Net gains/(losses) on investments 9 7,102 2,240 9,342
(12,668)		 (2,016) (14,684)
Net income/(expenditure) 2,381 1,179 3,560
(11,328)		 (3,018) (14,346)
Other recognised losses:
Remeasurements of net defined benefit
pension schemes 16a (44) - (44)
(3,465)		 - (3,465)
Net movement in funds/(deficit) 2,337 1,179 3,516
(14,793)		 (3,018) (17,811)
Reconciliation of funds:
Total funds brought forward 164,620 14,882 179,502
179,413		 17,900 197,313
Total funds carried forward 15b 166,957 16,061 183,018
164,620		 14,882 179,502

All income and expenditure is derived from continuing activities. The Statement of Financial Activities includes all gains and losses recognised in the year.

The Notes on pages 76 to 107 form part of these financial statements.

IET Trustees’ Annual Report and Accounts 2023

73

Consolidated and IET Balance Sheets

as at 31 December 2023

as at 31 December 2023
Group Charity
2022 2022
2023 £000
2023		 £000
Notes £000 (restated)
£000		 (restated)
Fixed assets
Intangible assets 7 4,343 3,829
4,343		 3,829
Tangible assets 8 39,386 41,800
39,376		 41,788
Investments 9b 140,799 130,020
140,297		 129,714
Total fixed assets 184,528 175,649
184,016		 175,331
Current assets
Stock and work in progress 258 396
253		 391
Debtors 10 11,764 11,776
11,728		 14,500
Investments 9b 339 4,519
339		 4,519
Cash at bank and in hand 8,021 9,031
4,621		 2,843
Total current assets 20,382 25,722
16,941		 22,253
Liabilities
Creditors: Amounts falling due within one year 11 (22,829) (21,304)
(19,804)		 (18,670)
Net current (liabilities)/assets (2,447) 4,418
(2,863)		 3,583
Total assets less current liabilities 182,081 180,067
181,153		 178,914
Creditors: Amounts falling due after more than one year 12 (3,562) (3,474)
(3,562)		 (3,474)
Net assets excluding pension asset 178,519 176,593
177,591		 175,440
Defined benefit pension scheme asset 16 5,427 4,062
5,427		 4,062
Total net assets 183,946 180,655
183,018		 179,502
FUNDS
Endowment funds 15,266 14,095
15,266		 14,095
Restricted income funds 795 787
795		 787
Restricted funds 15 16,061 14,882
16,061		 14,882
General funds 98,163 95,341
98,496		 95,614
Designated funds 64,295 66,370
63,034		 64,944
Pension reserve 16 5,427 4,062
5,427		 4,062
Unrestricted funds 167,885 165,773
166,957		 164,620
Total funds 15 183,946 180,655
183,018		 179,502

The Notes on pages 76 to 107 form part of these financial statements.

Approved and authorised for issue by the Trustees on 13 May 2024 and signed on their behalf by:

May 20, 2024

May 17, 2024

IET Trustees’ Annual Report and Accounts 2023

74

Consolidated Statement of Cash Flows

for the year ended 31 December 2023

2023 £000 2022 £000 (restated)
Cash flows from operating activities:
Net cash used in operating activities (8,663) (6,238)
Cash flows from investing activities:
Interest received 420 97
Rent receivable 827 1,372
Share of profit in joint venture 2,938 2,478
Income from non-property investments 3,219 2,845
Investment management fees (1,053) (616)
Purchase of tangible fixed assets (see note below) (653) (3,819)
Purchase of intangible assets (955) (1,814)
Purchase of investments (1,138) (19,336)
Sale of investments - 25,336
Net cashprovided by investing activities 3,605 6,543
Cash flows from financing activities:
Finance lease repayments (132) (132)
Net cash used in financing activities (132) (132)
Change in cash and cash equivalents in the year: (5,190) 173
Cash and cash equivalents at 1 January 13,550 13,377
Cash and cash equivalents at 31 December 8,360 13,550
Reconciliation of net income to net cash fow used in operating activities 2023 £000 2022 £000 (restated)
Net income/(expenditure) 3,438 (14,451)
Depreciation 3,003 2,766
Amortisation 441 320
Net (gains)/losses on investments (9,446) 14,684
Adjustment to carrying value of joint venture (195) (1,258)
Unwinding of discount on finance lease 130 130
Foreign exchange (losses)/gains arising on retranslation of foreign subsidiaries (103) 81
Decrease/(Increase) in stocks 138 (256)
Decrease/(Increase) in debtors 12 (618)
Increase/(Decrease) in creditors 1,618 (146)
Adjustment for non-cash FRS 102 credit in respect of defined benefit schemes (221) (126)
Contributions paid to defined benefit schemes (1,188) (1,188)
Interest received (420) (97)
Share of profit in joint venture (2,938) (2,478)
Rent receivable (827) (1,372)
Loss on disposal of tangible fixed assets 61 -
Income from non-property investments (3,219) (2,845)
Investment management fees 1,053 616
Net cash used in operating activities (8,663) (6,238)
Analysis of cash and cash equivalents 2023 £000 2022 £000
Cash held as part of current asset investments 339 4,519
Cash at bank and in hand 8,021 9,031
8,360 13,550
At 31 December 2022 Cashflows Unwinding of discount on finance At 31 December 2023
Analysis of changes in net fund
£000		 £000 lease obligation£000 £000
Cash at bank and in hand
9,031		 (1,010) - 8,021
Cash held as part of current asset investments
4,519		 (4,180) - 339
Finance lease obligations
(2,376)		 132 (130) (2,374)
11,174 (5,058) (130) 5,986
Purchase of Tangible Fixed Assets 2023 £000 2022 £000
Tangible Fixed Assets Additions per Note 8 650 3,397
Other amounts paid in the year relating to amounts outstanding at 1 January 302 724
Amounts to bepaid as at 31 December (299) (302)
Amount included in Consolidated Statement of Cash Flows 653 3,819

The Notes on pages 76 to 107 form part of these financial statements.

75 IET Trustees’ Annual Report and Accounts 2023

Notes forming part of the Financial Statements

for the year ended 31 December 2023

1. Accounting policies

Basis of preparation

These financial statements have been prepared under the historical cost convention, as modified by the inclusion of certain financial instruments at fair value, and 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 (FRS 102) (second edition effective 1 January 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005, and the Charities Accounts (Scotland) Regulations 2006 as amended. The prior year figures have been restated. See note 17 for further details.

The IET achieves its public benefit purpose by encouraging the next generation of engineers, disseminating and exchanging technical knowledge; enhancing capability, professionalism and innovation, together with an improved understanding of how science, engineering and technology can provide solutions to meet society’s needs. The Trustees have paid due regard to the public benefit guidance published by the Charity Commission.

Preparation of the accounts on a going concern basis

The Trustees confirm that at the time of approving the financial statements, there are no material uncertainties regarding the Charity’s ability to continue in operational existence for the foreseeable future. In arriving at this conclusion, the Trustees have considered a period of at least 12 months from the approval date of these accounts and have taken account of current and anticipated financial performance, liquidity, its reserves position and the ability to draw down on readily realisable investments as required. For this reason, the going concern basis continues to be adopted in the preparation of the Charity’s financial statements.

Key judgments and assumptions

The most significant areas of judgment and assumption that affect items in the accounts include the actuarial assumptions which underpin the Pension Scheme Liability (see Note 16 for more information), the determination that the net pension asset meets the definition of an asset which can be recognised on the balance sheet, and the accounting treatment and assumptions that underpin the valuation of Savoy Hill House. This property has been accounted for wholly as an investment property. The percentage of the

property used for operational use is less than 10% of the floor space and as such is considered a trivial amount; furthermore, this element is not capable of being sold or leased out separately. Judgement also has to be applied in determining whether software development costs represent an internally or externally generated intangible asset. In particular, where developers are sourced from third parties, judgement may need to be applied in determining if the supplier is bearing a significant proportion of the risks associated with a failure of the project. With respect to the next reporting period, the most significant areas of uncertainty that affect the carrying value of assets held by the IET are the level of investment return and the performance of investment markets (see the Investment Policy within the Trustees’ Annual Report and Note 9).

Constitution

The Institution of Engineering and Technology (IET) is incorporated by Royal Charter and registered with the Charity Commission for England and Wales under charity number 211014 and the Office of the Scottish Charity Regulator under charity number SC038698.

IET Trustees’ Annual Report and Accounts 2023

76

Basis of Consolidation

The Group accounts incorporate the financial statements of the IET and its subsidiaries on a line-by-line basis. All subsidiaries have co-terminous year-ends to the IET, apart from The Institution of Engineering and Technology (“IET India”), IET Services (India) Private Limited (“IET Services India”) and IET Solutions (India) Private Limited (“IET Solutions”) which have financial year ends of 31 March.

Income

Income is accounted for when receivable. Income received from perpetual access to journal archives is recognised in full at the point of sale. In the case of membership subscriptions and subscriptions for journals and electronic services any receipt in respect of future years is shown as Amounts received in advance.

Government grants are accounted for when performance related conditions are met. For grants where no performance related conditions are imposed, income is recognised when the grant proceeds are receivable.

Legacies are accounted for when considered receivable.

Investment income and donations are accounted for when receivable. During the year, the IET collected membership fees on behalf of The Engineering Council and the Chartered Management Institute. Any such amounts collected are then passed onto the respective organisation. As the IET is acting as an agent in the collection of these fees, they are not recognised as income or an asset in the financial statements.

Expenditure

Charitable Expenditure includes direct costs and support costs. Support costs comprise those necessary costs which do not themselves produce the output of the charity, including central office functions and governance costs as shown in Note 5a. Such administration and accommodation support costs

have generally been allocated on a departmental staff headcount basis.

Governance costs are the costs associated with constitutional and statutory requirements and the strategic management of the charity’s activities. The costs of raising funds are the costs associated with generating income other than those derived from undertaking charitable or trading activities.

Foreign Currency Transactions

Foreign currency transactions are converted at the rate ruling on the date of the transaction. Outstanding balances are translated into sterling at the rates ruling at the balance sheet date. Any exchange differences arising are taken to the SoFA.

Taxation

The IET is a charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly, the IET is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Grants payable

Grants payable are payments made to third parties in the furtherance of the charitable objectives of the IET. Single or multi-year grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside the control of the IET.

Intangible Fixed Assets

Externally generated intangible assets are capitalised at cost and amortised on a straight-line basis over 4 years, which is the estimated useful economic life of the asset given the history of rapid change in computer software and susceptibility to technological obsolescence. The amortisation charge for computer software is either allocated directly to the relevant charitable activity or included as part of support costs which in turn are allocated across charitable activities on a departmental headcount basis.

Tangible Fixed Assets and Depreciation

Depreciation is provided on fixed assets so as to write them off over their estimated useful lives as follows:

Mechanical and Electrical Installations Straight-line over 15 years

Furniture, fittings and equipment Straight-line over 10 years

Computer and electronic equipment Straight-line over 4 years

London Crown leases, other leasehold and freehold buildings Straight-line over the lower of the length of the lease or 50 years

Assets in the course of construction are not depreciated. Savoy Place and Futures Place are capitalised at historic cost. Austin Court is capitalised at deemed cost. Other assets costing less than £2,500 are written off in the year of purchase. Exhibits and associated artwork are not capitalised and are written off in the year of purchase.

The IET does not capitalise its heritage assets as neither reliable cost information nor comprehensive valuations are readily available and such information cannot be obtained at a cost commensurate with the benefit to the users of the accounts and to the Charity. Furthermore, there is no intention for resale (see Note 8 for further detail).

IET Trustees’ Annual Report and Accounts 2023

77

Investments

Non-property investments are included in the balance sheet at fair value being the quoted bid price or, where bid prices are not available, the net asset value (“NAV”). Investments in underlying investments in the private markets vehicles shall, in principle, be valued at their last available net asset value as reported or provided by these funds or their agents. Such net asset value may be adjusted for subsequent net capital movements (i.e. capital calls, distributions etc.) where deemed appropriate by the Alternative Investment Fund Manager (“AIFM”). The AIFM may, in its discretion, permit some other method of valuation to be used if it considers that such valuation better reflects the fair value of any asset or liability of the Fund (or its Sub-Funds). This method will then be applied in a consistent way.

Securities or investment instruments that are listed on a stock exchange or dealt in on another regulated market, are valued at their last available sales prices reported on such exchange on the valuation day or, if no prices were quoted on such date, at the last reported “bid” price (in the case of a security or investment held long) and the last reported “ask” (in case of a security or investment sold short) on the valuation day, if no such prices have been quoted on such date, at the value assigned reasonably and in good faith by AIFM.

Securities or investments that are not listed on a stock exchange or dealt in on another regulated market as well as other non- listed assets (excluding interest in underlying funds, which will be valued in accordance with an investment structure) will be valued on the basis of the probable net realisation value (excluding any deferred taxation) estimated reasonably and in good faith by the AIFM. Short-term securities with remaining maturities of one year or less at the time of purchase are valued at cost or any other valuation methods as deemed appropriate.

The value of any cash in hand or on deposit, bills and demand notes and accounts receivable, prepaid expenses, cash dividends and interests declared or accrued as aforesaid and not yet received is deemed to be the full amount thereof, unless in any case the same is unlikely to be paid or received in full, in which case the value thereof is arrived at after making such discount as may be considered appropriate in such case to reflect the true value thereof.

Realised and unrealised gains/losses are recognised in full in the SoFA. Investment income is accounted for when receivable, with account taken of the tax credit at the time of receipt of the net income.

Investment property has been valued at the year-end date in accordance with the RICS valuation – Global Standards 2020 (“the Red Book”) and has been valued at fair market value in accordance with FRS 102. As such, no depreciation is charged during the year. Gains or losses arising on revaluation are credited or charged respectively to the SoFA under “Net gains/(losses) on investments”. Key assumptions of the valuation include the following yield profile:

Investments in subsidiary undertakings are accounted for at historic cost less impairment. Investments in joint ventures are accounted for using the equity method in the Group financial statements. Current asset investments include:

Stocks & Work-In-progress

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due provision for slow moving and obsolete items.

Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

Financial instruments

The group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. The exceptions to this are investments which are measured at fair value.

Cash at bank and in hand

Cash at bank and in hand includes deposits which can be withdrawn within 24 hours without penalty and short-term deposits which have a maturity period of 3 months or less from the date of acquisition and are not subject to significant risk of changes in value.

IET Trustees’ Annual Report and Accounts 2023

78

Liabilities

Liabilities (including termination payments) are recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

Leasing

Finance lease obligations are included within Creditors. Non-investment property assets held under finance leases are capitalised and depreciated over the shorter of the lease term or 50 years.

Lease obligations on investment properties are treated as finance leases. The lease obligation is quantified at the point of the lease inception or the property becoming an investment property, whichever occurs later, based on the present value of the minimum lease payments, and is included in creditors. Any adjustments to the rent payable under such leases due to periodic rent reviews is considered to be contingent rent. Contingent rent is treated as expenditure as it becomes payable.

Rentals paid under operating leases are charged in the SoFA on a straight-line basis over the lease term.

Fund accounting

Restricted funds are subject to specific restrictions imposed by the donor.

They include ‘Restricted income funds’ which are spent or applied within a reasonable period from their receipt or ‘Endowment funds’ originating from donations or bequests and invested to enable future expenditure in line with the restrictions of the donor. Endowment funds can be either permanent or expendable. Permanent endowment funds are held indefinitely, and the capital cannot be expended. Expendable endowments allow the Trustees to exercise the power to expend or apply the capital in line with the restriction.

Restricted Income Funds are not considered to be material in total and as such are not disclosed separately on the face of the SoFA. Summarised information is included in Note 15 on Reserves.

Designated funds are set aside by the Trustees for specific purposes but would otherwise form part of the general funds. General funds are available to spend at the discretion of the Trustees in furtherance of the charitable objectives of the IET. Further explanations are set out in Note 15.

Pension Costs

In accordance with “FRS 102–Employee Benefits”, both the operating and financial costs of pension and other post-retirement benefits are recognised in the SoFA. Pension cost is assessed in accordance with the advice of a qualified Actuary. Actuarial gains and losses arising are recognised within the “Other recognised gains/ (losses)” category of the SoFA under the heading “Remeasurements of net defined benefit pension schemes”. The provisions of “FRS 102–Employee Benefits” have been fully complied with and the relevant disclosures are made in Note 16. Contributions to defined contribution schemes are charged in the SoFA in the year they are due.

Defined benefit plan

For the defined benefit retirement plan, the cost of providing benefits is determined using the projected unit credit method.

Pension Scheme Liability/Asset

The net defined benefit liability represents the present value of the defined benefit obligation minus the fair value of plan assets out of which obligations are to be settled. Any asset resulting from this calculation is limited to the present value of available refunds or reductions in future contributions to the plan. Such assets are recognised in the balance sheet on the basis that the IET has an unconditional right to a refund of any ultimate surplus from the scheme.

The rate used to discount the benefit obligations to their present value is based on market yields for high quality corporate bonds with terms and currencies consistent with those of the benefit obligations.

Gains/Losses

Gains or losses recognised in other recognised gains/(losses):

Irrecoverable VAT

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

Parent company disclosure exemptions

In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available to qualifying entities:

IET Trustees’ Annual Report and Accounts 2023

79

2. Trading activities and subsidiaries

The Group’s financial statements incorporate all the IET’s wholly owned subsidiary companies. Throughout 2023 the IET had two active wholly owned non-charitable trading subsidiary undertakings registered in England and Wales, IET Services Limited (IETSL), company registration number 909719, and IET Conventions Limited (IETCL), company registration number 3566585, both of which are consolidated. IETCL changed its name from IEE Conventions Limited (IEECL) on 27 November 2023. The profit and loss accounts of these subsidiaries are shown below, and net profits are donated to the IET under a Deed of Covenant.

IETSL provides magazine publishing, conference, advertising and recruitment services, and rent of surplus IET accommodation and related services such as catering. The principal activity of IETCL is the provision of conference and exhibition services. IETCL accounts for its respective 34% shares in IBC Show Limited (formerly International Broadcasting Convention Limited), International Broadcasting Convention LLP (IBC LLP) and International Broadcasting Convention Partnership (IBC Partnership) under the cost model in its individual financial statements, measuring its investments at cost and distributions received from the investments as income. On 31 December 2023, the business and assets of IBC Partnership were transferred to IBC LLP. IETCL is jointly and severally liable together with the other partners for the IBC’s obligations: the Trustees consider that the possibility of a transfer of economic benefits is remote and therefore have not disclosed a contingent liability in connection with the joint venture.

IETSL
IETSL
IETCL		 IETCL
2023
2022
2023		 2022
£000
£000
£000		 £000
Turnover – external 14,094
10,178
-		 -
Turnover – intercompany 4,589
4,338
-		 -
Turnover – total 18,683
14,516
-		 -
Share of Joint Venture Profits -
-
2,938		 2,478
Cost of Sales (14,076)
-
-		 -
Gross Profit 4,607
2,938
2,938		 2,478
Distribution Costs (851)
(923)
-		 -
Administration Expenses (25)
(3)
-		 -
Operating Profit 3,731
2,012
2,938		 2,478
Net Interest Receivable/Payable 29
(13)
-		 -
Profit on Ordinary Activities before Tax 3,760
1,999
2,938		 2,478
Tax on ordinary activities -
-
-		 -
Profit for the Financial Year 3,760
1,999
2,938		 2,478
Statement of Changes in Equity:
Balance at 1 January 800
800
116		 114
Profit for the Financial Year 3,760
1,999
2,938		 2,478
Qualifying charitable donations due to the IET (3,760)
(1,999)
(2,938)		 (2,476)
Balance at 31 December 800
800
116		 116
Comprising - assets 4,186
6,766
1,562		 1,366
- liabilities (3,386)
(5,966)
(1,446)		 (1,250)

IET Trustees’ Annual Report and Accounts 2023

80

2a. Other subsidiaries

The IET has four principal wholly-owned subsidiaries registered outside England & Wales and Scotland to support its charitable activities, details of which are set out below.

IET USA, Inc. is located in Edison, New Jersey; its Federal Identification Number is 76-0563925. The two principal channels of business for IET USA, Inc. are reseller support activity and direct sales of books and journals.

Institution of Engineering and Technology (IET (India)), company registration number U80903KA2007NPL044461, is registered in Bangalore as a not-for-profit company incorporated under section 25 of the Indian Companies Act with charitable objects consistent with those of the IET in the UK. IET (India) carries on volunteer activity in India. IET Services (India) Private Limited (IET Services (India)), company registration number U93000KA2012FTC064117 carries out specific activities, including the sale of IET memberships locally in India.

IET Engineering & Technology (Beijing) Consultancy Ltd (IET (Beijing)), registration number 110000450079713, is registered in China. The business scope of this wholly foreign owned enterprise (WFOE) allows it to perform certain activities on its own account being events and professional registration and training activity, as well as providing consultancy services to the Group in connection with engineering technology. IET uses IETSL to contract such services.

All of these subsidiaries are owned directly by the IET with the exception of IET (Beijing) which is owned by IET Services Limited, itself a directly owned subsidiary of the IET.

The financial results of the IET’s principal non-UK subsidiaries for the year were as follows:

IET
IET USA IET Services IET
Total		 Total
Inc. (India) (India) (Beijing)
2023		 2022
£000 £000 £000 £000
£000		 £000
External income 866 3 205 281
1,355		 1,568
Intragroup income 918 176 507 910
2,511		 2,337
External expenditure (990) (188) (577) (1,244)
(2,999)		 (2,756)
Intragroup expenditure (606) - (77) -
(683)		 (891)
Dividend payable (244) - - -
(244)		 (357)
Funds (used by)/retained by the subsidiary (56) (9) 58 (53)
(60)		 (99)
Net assets 383 154 600 454
1,591		 1,755

3. Investment and other income

3. Investment and other income
Group
Group
Charity		 Charity
2023
2022
2023		 2022
£000
£000
£000		 £000
Income from equities 1,355
1,097
1,355		 1,097
Income from bonds 1,864
1,748
1,864		 1,748
Interest received on cash 420
97
272		 64
Rent receivable 827
1,372
827		 1,372
Dividend receivable -
-
249		 387
Other income received from subsidiary undertakings -
-
5,499		 4,540
Other income - external 86
37
66		 37
4,552
4,351
10,132		 9,245

IET Trustees’ Annual Report and Accounts 2023

81

4. Net income/(expenditure)

This is stated after charging:

This is stated after charging:
Group
Group
Charity		 Charity
2023
2022
2023		 2022
£000
£000
£000		 £000
Depreciation 3,003
2,766
2,999		 2,761
Foreign exchange losses arising on transactions 216
158
209		 174
Payments under operating leases:
- Land and buildings rents 716
652
544		 508
- Other 2,001
13
1,997		 10
Auditor’s remuneration:
- Statutory Audit 119
111
103		 96
- Taxation 16
25
7		 19
- Other services 31
-
31		 -

5. Analysis of total expenditure

Support Total
Direct Grant funding of costs Total 2022
costs activities (Note 5a) 2023 £000
Group £000 £000 £000 £000 (restated)
Charitable activities
Education, policy and awareness 4,359 1,371 2,924 8,654 9,681
Knowledge services and solutions 21,201 - 15,327 36,528 33,425
Membership and professional development 10,569 - 10,108 20,677 19,613
Total charitable activities expenditure 36,129 1,371 28,359 65,859 62,719
Fundraising costs 163 - 266 429 334
Trading activities 4,976 - - 4,976 3,663
Investment management fees 1,054 - - 1,054 616
Total group expenditure 42,322 1,371 28,625 72,318 67,332
Support Total
Direct Grant funding of costs
Total		 2022
costs activities (Note 5a)
2023		 £000
IET £000 £000 £000
£000		 (restated)
Charitable activities
Education, policy and awareness 4,359 1,371 2,924
8,654		 9,681
Knowledge services and solutions 21,153 - 15,327
36,480		 33,343
Membership and professional development 10,108 - 10,108
20,216		 19,305
Total charitable activities expenditure 35,620 1,371 28,359
65,350		 62,329
Fundraising costs 163 - 266
429		 334
Investment management fees 1,054 - -
1,054		 616
Total charitable expenditure 36,837 1,371 28,625
66,833		 63,279

IET Trustees’ Annual Report and Accounts 2023

82

5a. Support costs

Total
Finance & Human Property Total 2022
corporate IT resources & offices Governance 2023 £000
Group and IET £000 £000 £000 £000 £000 £000 (restated)
Charitable activities
Education, policy and awareness 879 894 174 929 48 2,924 3,556
Knowledge services and solutions 4,607 4,687 913 4,869 251 15,327 11,908
Membership and professional development 3,038 3,091 602 3,211 166 10,108 9,659
8,524 8,672 1,689 9,009 465 28,359 25,123
Fundraising costs 80 81 16 85 4 266 188
Total 8,604 8,753 1,705 9,094 469 28,625 25,311

Administration and accommodation support costs have generally been allocated to charitable activities on a departmental staff headcount basis.

5b. Analysis of grants – Group

Grant to Grants to Support Grant to Grants to Support
institution individuals costs Total institution individuals costs Total
2023 2023 2023 2023 2022 2022 2022 2022
£000 £000 £000 £000 £000 £000 £000 £000
Education, policy and awareness
Research 334 - 4 338 446 - 4 450
Scholarships, awards and prizes - 471 539 1,010 - 536 59 595
Hardship and financial assistance - 23 - 23 - 20 - 20
Total 334 494 543 1,371 446 556 63 1,065
Grant to Grants to Support Grant to Grants to Support
institution individuals costs Total institution individuals costs Total
2023 2023 2023 2023 2022 2022 2022 2022
Number Number Number Number Number Number Number Number
Education, policy and awareness
Research 1 - - 1 1 - - 1
Scholarships, awards and prizes - 246 - 246 - 926 - 926
Hardship and financial assistance - 35 - 35 - 68 - 68
Total 1 281 - 282 1 994 - 995

IET Trustees’ Annual Report and Accounts 2023

83

5c. Analysis of grants – Charity

Grant to Grants to Support Grant to Grants to Support
institution individuals costs Total institution individuals costs Total
2023 2023 2023 2023 2022 2022 2022 2022
£000 £000 £000 £000 £000 £000 £000 £000
Education, policy and awareness
Research 334 - 4 338 446 - 4 450
Scholarships, awards and prizes - 471 539 1,010 - 513 59 572
Hardship and financial assistance - 23 - 23 - 20 - 20
Total 334 494 543 1,371 446 533 63 1,042
Grant to Grants to Support Grant to Grants to Support
institution individuals costs Total institution individuals costs Total
2023 2023 2023 2023 2022 2022 2022 2021
Number Number Number Number Number Number Number Number
Education, policy and awareness
Research 1 - - 1 1 - - 1
Scholarships, awards and prizes - 246 - 246 - 900 - 900
Hardship and financial assistance - 35 - 35 - 68 - 68
Total 1 281 - 282 1 968 - 969

The IET Awards programme helps to deliver the IET’s vision, by underpinning our mission: to inspire, inform and influence the global engineering community, supporting technology innovation to meet the needs of society.

The programme includes awards for individual excellence, pioneering research, scholarships, travel awards, prizes and competitions. We also recognise the most innovative companies and the best new innovations across the world. All activities are undertaken by the IET directly, apart from research activities which are carried out through grant funding to third parties.

The Grant to Institution during the year represents the IET’s A F Harvey Engineering Research Prize which was awarded through the host organisation University College London, UK. The host organisation in 2022 was Heriot-Watt University, Edinburgh, UK.

6. Employees

Total employment costs of the Group and IET staff in the year were:

Group
Group
Charity		 Charity
2023
2022
2023		 2022
£000
£000
£000		 £000
Payroll costs:
Salaries and overtime 24,268
24,233
22,074		 21,527
Social Security 2,669
2,744
2,347		 2,398
Pension and other benefits
- defined benefit pension schemes (221)
(126)
(221)		 (126)
- defined contribution pension scheme 3,143
2,678
2,953		 2,543
- other payments 443
480
438		 378
Operating costs of defined benefit schemes 578
439
578		 439
Termination payments 981
249
522		 249
31,861
30,697
28,691		 27,408

IET Trustees’ Annual Report and Accounts 2023

84

The average monthly number of staff employed by the IET in the year was 550 (2022: 571) and by the Group was 608 (2022: 634), made up as follows:


was 608 (2022: 634), made up as follows:
Group
Group
Charity		 Charity
2023
2022
2023		 2022
Number
Number
Number		 Number
Charitable activities 585
601
548		 569
Trading activities 21
31
-		 -
Governance 2
2
2		 2
608
634
550		 571

The numbers of employees whose emoluments including taxable benefits in kind and bonuses paid, but excluding pension costs deducted through salary sacrifice and accrued bonuses, exceeded £60,000 were within the following bands:

Group
2023
Number
Group
2022
Number
Charity
2023
Number
Charity
2022
Number
£60,000 - £69,999 25
13
20
12
£70,000 - £79,999 20
17
15
12
£80,000 - £89,999 9
12
7
11
£90,000 - £99,999 9
5
8
4
£100,000 - £109,999 2
-
1
-
£110,000 - £119,999 3
7
3
6
£120,000 - £129,999 2
1
2
-
£130,000 - £139,999 2
1
2
-
£140,000 - £149,999 3
2
1
1
£150,000 - £159,999 1
-
-
-
£160,000 - £169,999 -
2
-
2
£170,000 - £179,999 1
-
1
-
£190,000 - £199,999 2
1
1
1
£210,000 - £219,999 -
1
-
1
£230,000 - £239,999 -
2
-
1
£260,000 - £269,999 1
-
1
-

For the Group, 6 of the above employees (2022: six) and for the Charity 5 of the above employees (2022: six) were deferred members of the defined benefit IET Superannuation and Assurance Scheme.

For the Group, 69 of the above employees were members of the IET’s defined contribution scheme (2022: 54). For the Group, pension payments in respect of the relevant employees to the defined contribution scheme totalled £810,808 (2022: £623,095).

For the Charity, 60 of the above employees were members of the IET’s defined contribution scheme (2022: 50). For the Charity, pension payments in respect of the relevant employees to the defined contribution scheme totalled £765,383 (2022: £591,100).

IET Trustees’ Annual Report and Accounts 2023

85

6a. Remuneration and benefits received by key management personnel

IET considers the key management personnel of the organisation to comprise the Trustees, together with the Chief Executive and Secretary (CES) and other members of the Executive Team who routinely attend Board of Trustees meetings. The aggregate remuneration and benefits of those personnel for services to the Charity and Group in the year amounted to £1,676,203 (2022: £1,550,051). In addition, employer’s national insurance contributions were £148,880 (2022: £167,503). Of these amounts £nil (2022: £nil) related to the Trustees.

The emoluments of the CES, including benefits in kind and any payments in lieu of pension contributions, amounted to £309,850 in the year (2022: £300,608 combined emoluments for the two staff members employed in the CES role during that year). In addition, employer’s national insurance contributions were £23,291 (2022: £47,788 combined employer’s national insurance contributions for the two staff members employed in the CES role during that year). The current CES is a member of IET’s defined contribution pension scheme. Employer’s pension contributions to this scheme for the CES in the year were £79,933 (2022: £11,501). In arriving at the 2022 figure for total CES emoluments, the current CES’ bonus for the year was split between his time working as a member of the Executive team and his time working as the CES. 2 members (2022: 2 members) of Key Management Personnel (including the CES) are members of the defined benefit IET Superannuation and Assurance Scheme.

7. Intangible fixed assets – Group and Charity

Computer software
£000
(restated)
Cost
At 1 January 2023 4,275
Additions 955
Disposals -
At 31 December 2023 5,230
Accumulated Amortisation:
At 1 January 2023 446
Amortisation for the year 441
Disposals -
At 31 December 2023 887
Net book value:
At 31 December 2023 4,343
At 31 December 2022 3,829

IET Trustees’ Annual Report and Accounts 2023

86

Intangible assets comprise purchased software for IET’s internal systems. Individually material intangible assets include purchased software to replace IET’s existing legacy membership platform and upgrade core IT systems supporting the delivery of IET’s strategy, finance and customer relationship management applications. The cost during 2023 was £883,000 (2022: £1,294,000) and the net book value at 31 December 2023 was £3,414,000 (31 December 2022: £2,531,000). The asset will be amortised over a 4-year period, which will commence once this asset is brought into use.

The amount of contractual commitments for the acquisition of intangible assets at 31 December 2023 was £540,000 (31 December 2022: £644,000).

8. Tangible fixed assets – Group

Mechanical and Computers and
Long Leasehold
Freehold building		 Electrical
Furniture, fittings		 Electronic
buildings - Futures Place Installations and equipment Equipment Total
£000 £000 £000 £000 £000 £000
Cost:
At 1 January 2023 16,902 12,120 21,178 5,376 5,730 61,306
Additions - 6 - 135 509 650
Transfers - - (23) 18 5 -
Disposals - - (52) (18) - (70)
At 31 December 2023 16,902 12,126 21,103 5,511 6,244 61,886
Accumulated Depreciation:
At 1 January 2023 3,026 3,776 6,192 2,444 4,068 19,506
Depreciation for the year 340 222 1,407 452 582 3,003
Disposals - - (3) (6) - (9)
At 31 December 2023 3,366 3,998 7,596 2,890 4,650 22,500
Net book value:
At 31 December 2023 13,536 8,128 13,507 2,621 1,594 39,386
At 31 December 2022 13,876 8,344 14,986 2,932 1,662 41,800

IET Trustees’ Annual Report and Accounts 2023

87

8a. Tangible fixed assets – IET

Mechanical and Computers and
Long Leasehold
Freehold building		 Electrical
Furniture, fittings		 Electronic
buildings - Futures Place Installations and equipment Equipment Total
£000 £000 £000 £000 £000 £000
Cost:
At 1 January 2023 16,902 12,120 21,178 5,300 5,730 61,230
Additions - 6 - 133 509 648
Transfers - - (23) 18 5 -
Disposals - - (52) (18) - (70)
At 31 December 2023 16,902 12,126 21,103 5,433 6,244 61,808
Accumulated Depreciation:
At 1 January 2023 3,026 3,776 6,192 2,380 4,068 19,442
Depreciation for the year 340 222 1,407 448 582 2,999
Disposals - - (3) (6) - (9)
At 31 December 2023 3,366 3,998 7,596 2,822 4,650 22,432
Net book value:
At 31 December 2023 13,536 8,128 13,507 2,611 1,594 39,376
At 31 December 2022 13,876 8,344 14,986 2,920 1,662 41,788

Heritage assets

The IET Library and Archives was founded in 1880, and houses around 6 linear kilometres of books, journals, archive collections, audio-visual material and heritage objects (including paintings and sculpture) which date from the late 14th century to the present day. This collection was awarded Designated Status in 2006 (the scheme is now managed by the Arts Council) in recognition of its national and international importance. The core collection is stored in the IET’s London headquarters at Savoy Place, with the remainder of the collection stored offsite in heritage quality storage. The IET Archives were awarded Accreditation by the National Archives in 2023.

The collection is managed by professional staff, with expert conservation advice from the National Conservation Service. The archives and rare books are housed in purpose-built storage in Savoy Hill House, which also includes a reading room for researchers. Online catalogues for both the Library and Archives can be found on the IET website at theiet.org/library .

The Library’s Knowledge Centre at Savoy Place reopened to visitors in May 2021, while maintaining remote access to the digital collections at theiet.org/membership/library-and-archives/ebooks-ejournals-and-other-digital-resources .

IET Trustees’ Annual Report and Accounts 2023

88

9. Investments – Group

9. Investments – Group
Non-property Investment
investments property Total
£000 £000 £000
At 1 January 2023 114,963 19,576 134,539
Acquisitions at Cost 3,317 1,138 4,455
Proceeds from Sale of Investments (3,213) - (3,213)
Decrease in Current Asset Investments (4,180) - (4,180)
Net Investment Gains/(Losses) 10,952 (1,610) 9,342
Adjustment to carrying value of joint venture 195 - 195
At 31 December 2023 122,034 19,104 141,138
Finance lease relating to investment property (Notes 11 and 12) - (2,374) (2,374)
Total net investments 122,034 16,730 138,764
Historical Cost at 31 December 2023 106,821 8,365 115,186
Unrealised Gains 15,213 8,365 23,578
Realised Losses based on historic cost (1,064) - (1,064)

9a. Investments – IET

9a. Investments – IET
Non-property Investment Investments held at
investments property cost Total
£000 £000 £000 £000
At 1 January 2023 113,596 19,576 1,061 134,233
Acquisitions at Cost 3,317 1,138 - 4,455
Proceeds from Sale of Investments (3,213) - (1) (3,214)
Decrease in Current Asset Investments (4,180) - - (4,180)
Net Investment Gains/(Losses) 10,952 (1,610) - 9,342
At 31 December 2023 120,472 19,104 1,060 140,636
Finance lease relating to investment property (Notes 11 and 12) - (2,374) - (2,374)
Total net investments 120,472 16,730 1,060 138,262
Historical Cost at 31 December 2023 106,719 8,365 1,060 116,144
Unrealised Gains 13,753 8,365 - 22,118
Realised Losses based on historic cost (1,064) - - (1,064)

The Investment Property for both the Group and the IET (Savoy Hill House) was valued as at 31 December 2023 by RICS Registered Valuers from Avison Young. The Valuers are not employees or officers of the IET. The valuation has been undertaken in accordance with the RICS Valuation – Global Standards 2020 (“the Red Book”) and has been valued on the basis of Fair Value. The Investment Property is accounted for as a finance lease. Lease payments are contingent on estimated rental value. Rent reviews occur formally every five years.

IET Trustees’ Annual Report and Accounts 2023

89

9b. Analysis of Investments

9b. Analysis of Investments
Group
Group
Charity		 Charity
2023
2022
2023		 2022
£000
£000
£000		 £000
Fixed asset investments
Investment property 19,104
19,576
19,104		 19,576
Other fixed asset investments
Investments in subsidiary undertakings -
-
1,060		 1,061
Investments in joint ventures 1,562
1,367
-		 -
Listed investments:
- Equities 58,794
53,846
58,794		 53,846
- Bonds 37,964
36,283
37,964		 36,283
- Mixed Fund 16,339
15,547
16,339		 15,547
Private Markets 5,857
2,788
5,857		 2,788
Cash 1,179
613
1,179		 613
Other Fixed asset investments 121,695
110,444
121,193		 110,138
Total fixed asset investments 140,799
130,020
140,297		 129,714
Current asset investments
Cash held as part of the fixed asset investment portfolio 339
4,519
339		 4,519
Total current asset investments 339
4,519
339		 4,519
Total investments 141,138
134,539
140,636		 134,233
Group
Group
Charity		 Charity
2023
2022
2023		 2022
£000
£000
£000		 £000
UK 40,650
41,965
39,888		 41,398
Non-UK 100,488
92,574
100,748		 92,835
141,138
134,539
140,636		 134,233

The IET has committed funds of £13,000,000 (2022: £13,000,000) to Private Markets of which £5,469,000 (2022: £2,153,000) has been called upon for investment at the year-end date.

Investments are primarily held to provide investment return to the Charity. The Trustees reviewed the investments in subsidiary undertakings and joint ventures as at 31 December 2023 and considered that no change in their carrying value was required.

Cash held as part of the fixed asset investment portfolio and classified as a current asset investment is expected to be drawn down for operational purposes in the next financial year.

IET Trustees’ Annual Report and Accounts 2023

90

10 Debtors: Amounts falling due within one year

Group
Group
Charity		 Charity
2023
2022
2023		 2022
£000
£000
£000		 £000
Trade debtors 4,061
3,683
2,589		 2,157
Other debtors 446
438
136		 131
Accrued income 4,752
5,288
4,622		 5,206
Payments in advance 2,505
2,367
2,329		 2,152
Amounts due from subsidiaries -
-
2,052		 4,854
11,764
11,776
11,728		 14,500

Included within ‘Amounts due from subsidiaries’ of the charity is a loan of £300,000 (2022: £300,000) from IET to IET Services Limited. The loan has no specified repayment date and carries interest at 1% above the UK bank base rate. The loan is secured by way of a fixed charge debenture over the assets of IET Services Limited.

11. Creditors: Amounts falling due within one year

Group
Group
Charity		 Charity
2023
2022
2023		 2022
£000
£000
£000		 £000
Accruals for grants payable 787
839
787		 839
Trade creditors 2,643
2,051
1,784		 1,862
Obligations under finance leases 97
97
97		 97
Taxation and NI costs 727
748
660		 660
Other creditors 1,385
1,011
1,377		 994
Accruals 6,054
5,902
5,148		 4,710
Amounts received in advance 11,136
10,656
9,630		 9,287
Amounts due to subsidiaries -
-
321		 221
22,829
21,304
19,804		 18,670

‘Amounts received in advance’ represent income from subscriptions relating to future periods. Substantially all of the receipts in advance as at 31 December 2022 were released to the Statement of Financial Activities in the year ended 31 December 2023. Accruals include termination payments of £338,537 (2022: £50,947).

When members pay IET membership fees, the IET may also collect fees and/or donations on behalf of third parties and subsequently pass those amounts on to those entities. The funds received as an agent, paid across to the entities during the year end and balances held at the beginning and end of the year (included in Other creditors) are as follows:

Group and Charity Group and Charity
2023 2022
£000 £000
Funds held as at 1 January 471 715
Funds received in year 2,335 2,305
Funds transferred to third parties (2,070) (2,549)
Funds held at 31 December 736 471

91 IET Trustees’ Annual Report and Accounts 2023

12. Creditors: Amounts falling due after more than one year

Group
Group
Charity		 Charity
2023
2022
2023		 2022
£000
£000
£000		 £000
Accruals for grants payable 1,135
1,195
1,135		 1,195
Obligations under finance leases:
- later than one year and not later than five years 350
350
350		 350
- later than five years 1,927
1,929
1,927		 1,929
Other creditors 150
-
150		 -
3,562
3,474
3,562		 3,474

13. Commitments

The total of future minimum lease payments under non-cancellable operating leases as at 31 December for the Group and Charity are as follows:

Group
Group
Charity		 Charity
2023
2022
2023		 2022
£000
£000
£000		 £000
Land and buildings, expiry date:
- within one year 72
228
-		 186
- between two and five years 1,442
573
1,255		 372
- after five years 19,861
19,733
19,861		 19,733
21,375
20,534
21,116		 20,291
Vehicles and equipment, expiry date:
- within one year 93
3
93		 3
- between two and five years 727
18
719		 7
820
21
812		 10

The total of future minimum lease payments in respect of finance leases for the Group and Charity are as disclosed in Notes 11 and 12 – ‘Obligations under finance leases’. The obligations relate to a lease that expires in the ‘later than five years’ category.

Land and buildings with leases that expire after five years comprises solely of a long lease for Savoy Place which expires in 2121. The present value of the minimum lease payments for this lease are estimated at 31 December 2023 to be £3,293,115 (31 December 2022: £3,259,219). The present value at 31 December 2023 is based on a discount factor of 3.5% (2022: 3.5%) which reflects current long term gilt yield estimates.

IET Trustees’ Annual Report and Accounts 2023

92

14. Trustees and related party transactions

During the year, travelling and subsistence expenses totalling £86,519 were incurred by 20 Trustees on behalf of the IET (2022: £84,567 by twenty Trustees). None of the Trustees, or persons connected with them, received remuneration for any service to the IET this year or last year.

The Institution of Engineering and Technology Benevolent Fund (known as “Foothold”) provide benevolent services to IET members and staff. Colonel A J Rogers (IET Trustee from 1 October 2023) became a trustee of Foothold on 1 October 2023. Professor Kate Sugden (IET Trustee from 1 October 2020 to 30 September 2023) was also a trustee of Foothold for the same period, 1 October 2020 to 30 September 2023. The IET had amounts receivable from Foothold in 2023 of £37,426 (2022: £314,377) principally relating to staff related costs, travel, and subscriptions to outside bodies and £358 (2022: £692) relating to IET group memberships. Amounts receivable of £nil were outstanding at 31 December 2023 (31 December 2022: £37,909). The IET had amounts payable to Foothold in 2023 of £351,825 (2022: £450,320) relating to donations collected on behalf of Foothold. There were amounts payable of £1,200 at 31 December 2023 (31 December 2022: £42,437).

Ed Almond (IET Chief Executive and Secretary) became a trustee of Engineering UK on 1 March 2023. The IET had amounts payable to Engineering UK in 2023 of £1,939,065 (2022: £1,817,187) relating to professional registration entry and annual fees. There were amounts payable of £704,084 at 31 December 2023 (31 December 2022: £407,521).

Professor Ronjon Nag (IET Trustee), via his holding company R42 Group, owned 100% by Professor Ronjon Nag, provides the course ‘An Introduction to Artificial Intelligence’ to the IET Academy. The IET had amounts payable to R42 Group in 2023 of £nil (2022: £4,021) relating to course fees. There were no amounts payable at 31 December 2023 (31 December 2022: £nil).

Abbie Hutty (IET Trustee) received an honorarium of £250 (2022: £nil) relating to her role as advisor and judge for a children’s competition run by the IET.

The IET has the following related party transactions with its Group entities:

Debtor/ Debtor/
Expenditure
(creditor) at		 Expenditure (creditor) at
Income 2023
2023
31 Dec 2023		 Income 2022 2022 31 Dec 2022
Entity Relationship Ownership £000
£000
£000		 £000 £000 £000
IET Services Limited Subsidiary 100% 9,324
(4,589)
584		 6,730 (4,338) 3,598
IET Conventions Limited Subsidiary 100% 2,941
-
1,434		 2,476 - 1,234
IET USA, Inc. Subsidiary 100% 850
(918)
(88)		 1,214 (948) (55)
IET (India) Subsidiary 100% -
(176)
(150)		 - (145) (87)
IET Services (India) Subsidiary 100% 77
(507)
(81)		 51 (484) (79)
IET Solutions (India) Subsidiary 100% -
(6)
8		 - (25) 9
IET (Beijing) Subsidiary 100% 25
-
25		 13 - 13
IET (Canada) Subsidiary 100% -
(9)
-		 (13) -
Institution of Engineering
and Technology, USA		 Subsidiary 100% -
(15)
-		 -
-		 (8) -
IBC LLP Associate 34% -
-
-		 - - -
IBC Partnership Associate 34% 20
-
-		 - - -

IET Trustees’ Annual Report and Accounts 2023

93

The IET is the immediate parent (except for IET (Beijing) whose immediate parent is IET Services Limited) and ultimate controlling party for the subsidiary entities listed above and these financial statements are publicly available.

IET Services Limited had amounts payable to IET (Beijing) during the year of £911,969 (2022: £757,000) in respect of business support services provided. An amount payable of £125,077 was outstanding at 31 December 2023 (31 December 2022: £116,000).

IET Conventions Ltd (formerly IEE Conventions Ltd) holds a 34% share in its joint ventures IBC LLP and IBC Partnership. The business and assets of IBC Partnership were transferred to IBC LLP on 31 December 2023. IET Conventions Ltd has a debtor with IBC LLP at 31 December 2023 of £1,444,092 (31 December 2022: £nil) relating to its share of Partnership profits. The share of net profits in the year in respect of IBC LLP was £nil (2022: £nil). IET Conventions Ltd has a debtor with its joint venture, IBC Partnership, at 31 December 2023 of £nil relating to its share of Partnership profits (31 December 2022: £1,258,000). The share of net profits in the year in respect of the IBC Partnership was £2,949,671 (2022: £2,483,000).

The intercompany balance with IET Services Limited includes an amount due to the IET in the current and prior year of £300,000. This amount represents the loan related to a Publishing Agreement that can be terminated by either party by giving not less than six months’ notice. The loan carries interest at 1 per cent above UK Bank

Base Rate per annum. The loan is secured by way of a fixed charge debenture. Except for this loan balance, all other intercompany balances between Group entities are unsecured and repayable under standard credit terms for consideration in cash.

IET Services Limited has one employee (2022: four) who were members of IET’s defined benefit pension scheme, ‘The IET Superannuation and Assurance Scheme’ (IET SAS) from 1 October 2007 until its closure to future accrual on 31 March 2012. The directors of IET Services Limited consider that there is insufficient information to account for the Scheme as a Defined Benefit Scheme in its own accounts, in particular as separate contribution rates were not identified for the participating employers of the scheme. As such, the Scheme is accounted for on a Defined Contribution basis in the accounts of IET Services Limited. The FRS 102 surplus of IET SAS at 31 December 2023 as calculated by the Scheme Actuary is £5,427,000 (2022: surplus of £4,062,000), full details of which are set out in Note 16. A recovery plan has been agreed between the principal employer, The IET, and the Scheme Trustees in respect of the deficit calculated for non-IIE members based on the position at 31 March 2023, the date of the most recent triennial actuarial valuation. IET Services Limited’s contribution into this Scheme during 2023 was nil (2022: nil).

IET Trustees’ Annual Report and Accounts 2023

94

15. Reserves

General Funds

The General Funds of the charity represent those unrestricted funds of the charity which have not been designated for a particular purpose by the Trustees. An appropriate level of reserves is required by the IET to manage contingencies and risk and thereby protect the continuity of its activities. The general funds are managed over the long term by reference to the key risks identified for the IET; currently including business continuity, investment volatility and pension liabilities. This target-based approach is described in the Reserves Policy in the Financial Review section of the Report of the Trustees.

Designated Funds

The Fixed Assets Reserve represents the net book value of tangible fixed assets.

The Invested Building Redemption Reserve has been set up to provide the future funds required to rebuild or replace Austin Court and to provide a sum of money to refurbish Savoy Place. It also includes the estimated current cost of refurbishing Futures Place. These outflows are expected to occur as assets reach the end of their respective estimated useful lives.

The Development and New Initiatives Reserve has been established to fund those projects which have been approved to be undertaken and is also to underwrite new revenue-generating activities to supplement the income from existing activities during the period 2024-2027 as set out in the IET’s Corporate Plan.

The results of the FRS 102 valuation in respect of the IET’s defined benefit pension schemes are disclosed in more detail in Note 16. The net pension scheme asset is disclosed under The Pension Scheme Funding Reserve .

Accumulated Funds are in connection with the IET’s subsidiary companies and represent amounts retained by those companies. Dividends are paid from time to time as allowed by local jurisdictions.

Restricted Funds

The Trust Funds have been established to receive donations and bequests which are restricted by the donor to the support of certain activities. These funds typically support scholarships, awards, prizes and research.

Trust Funds are managed alongside the IET’s unrestricted investment portfolio and are shown at fair value at 31 December 2023.

The Dr A F Harvey Fund is a part of the IET Benefactors Trust Fund but is shown separately because of its significance. Dr Harvey, an IET member, bequeathed a generous sum of money to the IET for a Trust Fund to be set up in his name after his death. The terms of the Trust specify that the money is to be used for the furtherance of scientific research into the fields of medical, microwave and radar, or laser engineering. The Board of Trustees agreed that the available funds would be used to offer an annual research prize in one of these research fields each year, covering them all over a three-year cycle.

The Impact Engineering Fund represents monies that have been donated to the IET for various specific purposes.

A number of these funds are also linked charities. The most significant linked charity by size is the IET Benefactors Trust Fund which is the IET’s principal Restricted Fund and was established for such charitable purposes connected with the Institution or connected with the advancement of education in electrical engineering generally including the establishment and award of scholarships, fellowships, lectureships, competitions, prizes and awards. It is shown separately on the basis of materiality.

The largest of the other linked charities is the Lord Hirst Fund which provides financial support to engineers in financial need, with funds at 31 December 2023 of £543,000 (31 December 2022: £499,000). The full list of linked charities is provided in Note 15a.

In addition, the Janet Firmin Memorial Fund had funds of £780,000 as at 31 December 2023 (31 December 2022: £692,000). The Fund is not a linked charity.

Government Grants:

The IET has signed Grant Agreements with Science Foundation Ireland. See Note 15d for further details.

Transfers between Funds

Transfers between Unrestricted Funds represent specific designations agreed by the Trustees and which Designations are to be applied to those purposes.

IET Trustees’ Annual Report and Accounts 2023

95

15a. Linked Charities

The IET Linked Charities that hold a value in Trust Funds within the Restricted Funds are as follows:

Permanent endowments – Other Trust Funds

Linked Charity Name Registration Number
Wilde Benevolent Trust Fund 211014-1
The Institution Prize for Women 211014-3
William Beedie Esson Scholarship 211014-6
Will Geipel Scholarship 211014-7
Goldup Prize Fund 211014-8
Percy Hudswell Fund 211014-9
David Hughes Scholarship 211014-10
I M E A Scholarship Fund 211014-12
J D Knight and E D Knight 211014-13
Sir Edward Manville Scholarship Fund 211014-15
O'Gorman Memorial Fund 211014-18
The Page Prize 211014-19
Sir Charles A Parsons Memorial Scholarship 211014-20
Paul Scholarship 211014-21
John S Robinson Memorial Fund 211014-22
Salomons Scholarship 211014-23
Swan Memorial Scholarship Fund 211014-24
Thorrowgood Scholarship 211014-25
War Thanksgiving Education and Research Fund No 1 211014-26
Lord Hirst Fund 211014-31
The Joseph William Beauchamp Scholarships 211014-32
The Caroline Haslett Memorial Trust 211014-34

Expendable endowments – IET Benefactors Trust Fund:

Linked Charity Name Registration Number
IET Benefactors Trust Fund 211014-14
The Institution of Electrical Engineers Manufacturing Education Trust 211014-30

Expendable endowments – Other Trust Funds

Linked Charity Name Registration Number
J R Beard Travelling Fund 211014-4
Blumlein-Browne-Willans Premium Fund 211014-5
Hunter Memorial Lecture Fund 211014-11
Henry Nimmo Premium Fund 211014-16
Leslie H Paddle Scholarship Fund 211014-27

IET Trustees’ Annual Report and Accounts 2023

96

15b. Reserves and Restricted Funds

Group – Year ended 31 December 2023

Balance at Other Balance at
1 January 2023 Net Income/ recognised 31 December
£000 (Expenditure) losses Transfers 2023
(restated) £000 £000 £000 £000
Total General Funds 95,341 8,616 (103) (5,691) 98,163
Designated Funds
Fixed Assets Reserve 41,800 (3,003) - 588 39,385
Invested Building Redemption Reserve 11,256 - - 2,103 13,359
Development and New Initiatives Reserve 11,900 (3,412) - 1,812 10,300
IETCL Accumulated Fund 116 - - - 116
IET India Accumulated Fund 101 (18) - - 83
IET Services (India) Accumulated Fund 570 25 - - 595
IET USA, Inc. Accumulated Fund 279 (78) - - 201
IET (Beijing) Accumulated Fund 348 (92) - - 256
Total Designated Funds 66,370 (6,578) - 4,503 64,295
Total Unrestricted Funds Before Pension Asset 161,711 2,038 (103) (1,188) 162,458
Pension Scheme Funding Reserve 4,062 221 (44) 1,188 5,427
Total Unrestricted Funds After Pension Asset 165,773 2,259 (147) - 167,885
Permanent Endowment Funds
Other Trust Funds 2,243 275 - - 2,518
Expendable Endowment Funds
IET Benefactors Trust Fund 5,769 (22) - - 5,747
Dr A F Harvey Fund 5,637 860 - - 6,497
Other Trust Funds 446 58 - - 504
Total Expendable Endowment 11,852 896 - - 12,748
Total Endowment Funds 14,095 1,171 - - 15,266
Restricted Income Funds
Impact Engineering Funds 457 (14) - - 443
Other Trust Funds 330 22 - - 352
Total Restricted Income Funds 787 8 - - 795
Restricted Funds 14,882 1,179 - - 16,061
Total Group Funds 180,655 3,438 (147) - 183,946

IET Trustees’ Annual Report and Accounts 2023

97

15b. Reserves and Restricted Funds (continued)

Group – Year ended 31 December 2022

Balance at Net Income/ Other Balance at
1 January 2022 (Expenditure) recognised 31 December 2022
£000 £000 losses Transfers £000
(restated) (restated) £000 £000 (restated)
Total General Funds 105,173 (5,594) 81 (4,319) 95,341
Designated Funds
Fixed Assets Reserve 41,169 (2,766) - 3,397 41,800
Invested Building Redemption Reserve 10,701 - - 555 11,256
Development and New Initiatives Reserve 15,900 (3,179) - (821) 11,900
IETCL Accumulated Fund 116 - - - 116
IET India Accumulated Fund 113 (12) - - 101
IET Services (India) Accumulated Fund 495 75 - - 570
IET USA, Inc. Accumulated Fund 353 (74) - - 279
IET (Beijing) Accumulated Fund 357 (9) - - 348
Total Designated Funds 69,204 (5,965) - 3,131 66,370
Total Unrestricted Funds Before Pension Asset 174,377 (11,559) 81 (1,188) 161,711
Pension Scheme Funding Reserve 6,213 126 (3,465) 1,188 4,062
Total Unrestricted Funds After Pension Asset 180,590 (11,433) (3,384) - 165,773
Permanent Endowment Funds
Other Trust Funds 2,423 (180) - - 2,243
Expendable Endowment Funds
IET Benefactors Trust Fund 6,974 (1,205) - - 5,769
Dr A F Harvey Fund 6,812 (1,175) - - 5,637
Other Trust Funds 519 (73) - - 446
Total Expendable Endowment 14,305 (2,453) - - 11,852
Total Endowment Funds 16,728 (2,633) - - 14,095
Restricted Income Funds
Impact Engineering Funds 790 (333) - - 457
Other Trust Funds 382 (52) - - 330
Total Restricted Income Funds 1,172 (385) - - 787
Restricted Funds 17,900 (3,018) - - 14,882
Total Group Funds 198,490 (14,451) (3,384) - 180,655

IET Trustees’ Annual Report and Accounts 2023

98

15b. Reserves and Restricted Funds (continued)

Charity – Year ended 31 December 2023

Balance at Balance at
1 January 2023 Net Income/ Other recognised 31 December
£000 (Expenditure) (losses)/gains Transfers 2023
(restated) £000 £000 £000 £000
Total General Funds 95,614 8,571 - (5,689) 98,496
Designated Funds
Fixed Assets Reserve 41,788 (2,999) - 586 39,375
Invested Building Redemption Reserve 11,256 - - 2,103 13,359
Development and New Initiatives Reserve 11,900 (3,412) - 1,812 10,300
Total Designated Funds 64,944 (6,411) - 4,501 63,034
Total Unrestricted Funds Before Pension Asset 160,558 2,160 - (1,188) 161,530
Pension Scheme Funding Reserve 4,062 221 (44) 1,188 5,427
Total Unrestricted Funds After Pension Asset 164,620 2,381 (44) - 166,957
Permanent Endowment Funds
Other Trust Funds 2,243 275 - - 2,518
Expendable Endowment Funds
IET Benefactors Trust Fund 5,769 (22) - - 5,747
Dr A F Harvey Fund 5,637 860 - - 6,497
Other Trust Funds 446 58 - - 504
Total Expendable Endowment 11,852 896 - - 12,748
Total Endowment Funds 14,095 1,171 - - 15,266
Restricted Income Funds
Impact Engineering Funds 457 (14) - - 443
Other Trust Funds 330 22 - - 352
Total Restricted Income Funds 787 8 - - 795
Restricted Funds 14,882 1,179 - - 16,061
Total Charity Funds 179,502 3,560 (44) - 183,018

IET Trustees’ Annual Report and Accounts 2023

99

15b. Reserves and Restricted Funds (continued)

Charity – Year ended 31 December 2022

Charity – Year ended 31 December 2022
Balance at Net Income/ Other Balance at
1 January 2022 (Expenditure) recognised 31 December
£000 £000 losses Transfers
2022 £000
(restated) (restated) £000 £000
(restated
Total General Funds 105,439 (5,514) - (4,311)
95,614
Designated Funds
Fixed Assets Reserve 41,160 (2,761) - 3,389
41,788
Invested Building Redemption Reserve 10,701 - - 555
11,256
Development and New Initiatives Reserve 15,900 (3,179) - (821)
11,900
Total Designated Funds 67,761 (5,940) - 3,123
64,944
Total Unrestricted Funds Before Pension Asset 173,200 (11,454) - (1,188)
160,558
Pension Scheme Funding Reserve 6,213 126 (3,465) 1,188
4,062
Total Unrestricted Funds After Pension Asset 179,413 (11,328) (3,465) -
164,620
Permanent Endowment Funds
Other Trust Funds 2,423 (180) - -
2,243
Expendable Endowment Funds
IET Benefactors Trust Fund 6,974 (1,205) - -
5,769
Dr A F Harvey Fund 6,812 (1,175) - -
5,637
Other Trust Funds 519 (73) - -
446
Total Expendable Endowment 14,305 (2,453) - -
11,852
Total Endowment Funds 16,728 (2,633) - -
14,095
Restricted Income Funds
Impact Engineering Funds 790 (333) - -
457
Other Trust Funds 382 (52) - -
330
Total Restricted Income Funds 1,172 (385) - -
787
Restricted Funds 17,900 (3,018) - -
14,882
Total Charity Funds 197,313 (14,346) (3,465) -
179,502

IET Trustees’ Annual Report and Accounts 2023

100

15c. Restricted Funds Analysis

Group and Charity 2023

Group and Charity 2023
Balance at Balance at
1 January Investment 31 December
2023 Income Expenditure gains Transfers
2023
£000 £000 £000 £000 £000
£000
Permanent Endowment Funds
Other Trust Funds 2,243 16 - 259 -
2,518
Expendable Endowment Funds
IET Benefactors Trust Fund 5,769 213 (1,119) 884 -
5,747
Dr A F Harvey Fund 5,637 234 (364) 990 -
6,497
Other Trust Funds 446 16 (27) 69 -
504
Total Expendable Endowment 11,852 463 (1,510) 1,943 -
12,748
Total Endowment Funds 14,095 479 (1,510) 2,202 -
15,266
Restricted Income Funds
Impact Engineering Funds 457 798 (812) - -
443
Other Trust Funds 330 50 (66) 38 -
352
Total Restricted Income Funds 787 848 (878) 38 -
795
Restricted Funds 14,882 1,327 (2,388) 2,240 -
16,061
Group and Charity 2022 Balance at Balance at
1 January Investment 31 December
2022 Income Expenditure losses Transfers
2022
£000 £000 £000 £000 £000
£000
Permanent Endowment Funds
Other Trust Funds 2,423 - - (180) -
2,243
Expendable Endowment Funds
IET Benefactors Trust Fund 6,974 187 (537) (855) -
5,769
Dr A F Harvey Fund 6,812 193 (475) (893) -
5,637
Other Trust Funds 519 13 (27) (59) -
446
Total Expendable Endowment 14,305 393 (1,039) (1,807) -
11,852
Total Endowment Funds 16,728 393 (1,039) (1,987) -
14,095
Restricted Income Funds
Impact Engineering Funds 790 553 (886) - -
457
Other Trust Funds 382 41 (64) (29) -
330
Total Restricted Income Funds 1,172 594 (950) (29) -
787
Restricted Funds 17,900 987 (1,989) (2,016) -
14,882

IET Trustees’ Annual Report and Accounts 2023

101

15d. Government Grants

Impact Engineering Funds includes grants from Science Foundation Ireland, details of which are set out below.

Science Foundation Ireland

The following information is set out in accordance with the requirements of the funder.

The principal terms of the Grant are:

Grantor : Science Foundation Ireland (“SFI”). SFI is an agency of the Department of Further and Higher Education, Research, Innovation and Science.

Programme : Discover Programme Call

Project Title : Igniting Curiosity in STEM: FIRST® LEGO® League

Purpose : FIRST® LEGO® League. This is a STEM programme which inspires children and young people from the ages of 4-16.

Grant #1 : €299,300 – 24 months commencing 1/1/2021

Grant #2 : €293,090 – 24 months commencing 1/1/2023

Confirmation statement : The IET has adequate financial control systems in place to monitor granted funds. The State’s investment is protected and will not be used as security for any other activity without prior consultation with the Foundation.

Transactions in the year were as follows:

Grant #1 Grant #2
Description £’000 £’000
Balance @ 1 January 2023 44 -
Income 1 254
Expenditure (45) (123)
Balance @ 31 December 2023 - 131

IET Trustees’ Annual Report and Accounts 2023

102

15e. Analysis of Group Net Assets Between Funds

Restricted and
31 December 2023 Unrestricted funds endowment funds Total funds
2023 2023 2023
£000 £000 £000
Intangible assets 4,343 - 4,343
Tangible fixed assets 39,386 - 39,386
Fixed asset investments 119,991 20,808 140,799
Current assets 20,068 314 20,382
Current liabilities (18,904) (3,925) (22,829)
Long term creditors (2,426) (1,136) (3,562)
Pension scheme asset 5,427 - 5,427
167,885 16,061 183,946
167,885 16,061 183,946
Unrestricted funds Restricted and Total funds
31 December 2022 2022 endowment funds 2022
£000 2022 £000
(restated) £000 (restated)
Intangible assets 3,829 - 3,829
Tangible fixed assets 41,800 - 41,800
Fixed asset investments 111,453 18,567 130,020
Current assets 25,334 388 25,722
Current liabilities (18,430) (2,874) (21,304)
Long term creditors (2,275) (1,199) (3,474)
Pension scheme asset 4,062 - 4,062
165,773 14,882 180,655

15f. Analysis of IET Net Assets Between Funds

Restricted and
31 December 2023 Unrestricted funds endowment funds Total funds
2023 2023 2023
£000 £000 £000
Intangible assets 4,343 - 4,343
Tangible fixed assets 39,376 - 39,376
Fixed asset investments 119,489 20,808 140,297
Current assets 16,627 314 16,941
Current liabilities (15,879) (3,925) (19,804)
Long term creditors (2,426) (1,136) (3,562)
Pension scheme asset 5,427 - 5,427
166,957 16,061 183,018
Unrestricted funds Restricted and Total funds
31 December 2022 2022 endowment funds 2022
£000 2022 £000
(restated) £000 (restated)
Intangible assets 3,829 - 3,829
Tangible fixed assets 41,788 - 41,788
Fixed asset investments 111,147 18,567 129,714
Current assets 21,865 388 22,253
Current liabilities (15,796) (2,874) (18,670)
Long term creditors (2,275) (1,199) (3,474)
Pension scheme asset 4,062 - 4,062
164,620 14,882 179,502

IET Trustees’ Annual Report and Accounts 2023

103

16. Pension Schemes

16a. Defined Benefit Schemes

The IET operated one defined benefit pension scheme during the year, The IET Superannuation and Assurance Scheme (IET SAS) and which is closed to new entrants and to future accrual. The scheme is subject to triennial valuations by independent actuaries using the projected units method.

The most recent triennial valuation was carried out as at 31 March 2023.

Contributions under the current Recovery Plan are £99,000 per month and due to cease in March 2024.

For the purposes of these financial statements the actuary carried out FRS 102 valuations for the scheme for the year ended 31 December 2023.

The scheme is administered through a trust, which is independent of the IET, by Trustees who are appointed by IET and member-nominated Trustees. The figures below exclude the pension expenses or employees of Foothold, a separate charity organisation that also participates in the defined benefit scheme.

Assumptions

The tables set out below state the assumptions upon which the valuations of the Scheme was based.

IET SAS IET SAS
2023 2022
% pa % pa
Price inflation (RPI) 3.10 3.25
Price inflation (CPI) 2.45 2.55
Pension increase rate LP15 3.05 3.15
Discount rate 4.50 4.75

The mortality assumptions adopted imply the following life expectancies from age 60:

IET SAS IET SAS
2023 2022
Member age 60 – male (current life expectancy) 27.3 27.8
Member age 60 – female (current life expectancy) 29.5 29.7
Member age 40 – male (future pensioner) 28.2 29.0
Member age 40 – female (future pensioner) 30.7 30.9

IET Trustees’ Annual Report and Accounts 2023

104

Analysis of the amounts credited/(charged) to Statement of Financial Activities

2023 2022
£000 £000
Net interest credit on net defined benefit liability 221 126
Net amount credited to Statement of Financial Activities 221 126
2023 2022
£000 £000
Actual return on assets excluding amounts included in net interest (2,233) (58,217)
Actuarial gains arising on scheme liabilities 2,189 54,752
Actuarial losses charged to the Statement of Financial Activities (44) (3,465)

Analysis of the amounts recognised in the Balance Sheet

2023 2022
Changes to fair value of scheme assets £000 £000
Opening fair value of scheme assets 114,009 172,995
Interest income 5,318 3,165
Contributions by employer 1,188 1,188
Benefits paid (5,448) (5,122)
Return on Scheme assets excluding interest income (2,233) (58,217)
Closing fair value of scheme assets 112,834 114,009
2023 2022
Changes topresent value of benefit obligations £000 £000
Opening present value of benefit obligations 109,947 166,782
Interest costs 5,097 3,039
Benefits paid (5,448) (5,122)
Actuarial gains (2,189) (54,752)
Closing present value of benefit obligations 107,407 109,947
2023 2022
£000 £000
Fair value of scheme assets 112,834 114,009
Present value of benefit obligations (107,407) (109,947)
Net surplus 5,427 4,062

IET Trustees’ Annual Report and Accounts 2023

105

Fund assets

The major categories of plan assets as a percentage of total plan assets are as follows:

2023 2023 2022 2022
£000 % £000 %
UK Equities 61 0.1 56 0.1
Overseas Equities 2,846 2.5 2,368 2.1
Debt Securities – Government 47,017 41.7 45,965 40.3
Diversified Growth Funds 9,532 8.4 10,725 9.4
Insurance contracts 48,536 43.0 50,448 44.2
Aviva DAF Fund 4,363 3.9 4,361 3.8
Cash and cash equivalents 479 0.4 86 0.1
112,834 100.0 114,009 100.0

None of the fair values of the assets shown include any of the IET’s own financial instruments or any property occupied by, or other assets used by, the IET.

Sensitivity analysis

The calculation of the IET SAS defined benefit obligation is sensitive to the assumptions set out above. The table set out below shows the impact on the value of the benefit obligation as at 31 December of a change in assumptions:

Actuarial value of liabilities Actuarial value of liabilities
at 31 December 2023 at 31 December 2022
£000 £000
Base Case 107,407 109,947
-0.5% decrease in discount rate 114,117 116,922
1 year increase in member life expectation 111,704 114,294
+0.5% change in inflation 112,063 114,648

16b. Defined Contribution Schemes

Both the IET and employees make contributions towards the IET’s defined contribution stakeholder pension arrangement. At 31 December 2023, 530 Group employees were members of the scheme (31 December 2022: 564). The total employer contributions charged to this scheme during the year amounted to £2,911,000 (2022: £2,678,000). The amount of outstanding contributions at 31 December 2023 were £6,526 (31 December 2022: £Nil).

The pension charge for the year to 31 December 2023 for all schemes (including the defined benefit pension scheme) was £2,690,000 (2022: £2,552,000).

IET Trustees’ Annual Report and Accounts 2023

106

17. Prior Period Adjustment

A prior period adjustment has been made to capitalise externally generated computer software and amortise this cost on a straight-line basis over 4 years. Historically, the cost of externally generated computer software was incorrectly written off in the year of purchase. See note 1 for the revised accounting policy on Intangible Fixed Assets. The adjusted net book value of £3,829,000 for externally generated computer software at 31 December 2022 is shown in Note 7.

The effect of this adjustment on funds is as follows:

The efect of this adjustment on funds is as follows:
Group Group Charity
Charity
2022 2021 2022
2021
£000 £000 £000
£000
Original funds c/fwd 31 December 176,826 196,155 175,673
194,978
Cumulative adjustment to funds (capitalised computer software) 4,275 2,461 4,275
2,461
Cumulative adjustment to funds (amortisation) (446) (126) (446)
(126)
Restated funds c/fwd 31 December 180,655 198,490 179,502
197,313

The effect of this adjustment on intangible assets is as follows:

The efect of this adjustment on intangible assets is as follows:
Group
2022
£000
Charity
2022
£000
Original intangible assets -
-
Cumulative adjustment to funds (capitalised computer software) 4,275
4,275
Cumulative adjustment to funds (amortisation) (446)
(446)
Restated intangible assets 3,829
3,829

Prior year expenditure amounts have been accordingly restated in both the Charity and the Group Statements of Financial Activities and the notes to the accounts for the respective expenditure headings.

The effect of this adjustment on expenditure is as follows:

Group
Previously reported
2022
£000
Group
Adjustment
2022
£000
Group
Balance as restated
2022
£000
Charity
Previously reported
2022
£000
Charity
Adjustment
2022
£000
Charity
Balance as restated
2022
£000
Education, policy and awareness 9,858
(177)
9,681
9,858
(177)
9,681
Knowledge services and solutions 33,975
(550)
33,425
33,893
(550)
33,343
Membership and professional development 20,371
(758)
19,613
20,063
(758)
19,305
Fundraising costs 343
(9)
334
343
(9)
334

The Consolidated Statement of Cash Flows has been restated as follows:

Net cash used Net cash provided Net cash used Change in
cash and cash
in operating by investing in financing equivalents
activities activities activities in the year
£000 £000 £000 £000
Original balances reported for 2022 (8,052) 8,357 (132) 173
Add: Net income 1,494 - - -
Add: Amortisation 320 - - -
Less: Purchase of Intangible Assets - (1,814) - -
Restated balances for 2022 (6,238) 6,543 (132) 173

IET Trustees’ Annual Report and Accounts 2023

107

Legal and administrative information

The Institution of Engineering and Technology (IET) is registered with the Charity Commission for England and Wales under charity number 211014 and the Office of the Scottish Charity Regulator under charity number SC038698.

Principal Office

Savoy Place, London WC2R 0BL, UK

Trustees

Members of the Board of Trustees at the date the report was approved:

Y M Akinola MBE (appointed 1 October 2023) Professor R A Cryan CBE DL Professor T R Dafforn

K Deacon

D W A East CBE (appointed 1 October 2023)

A Feng Dr S D Hart (appointed 1 October 2023)

S E Hubbard

A S Hutty Dr G Katragadda Eur Ing Dr C Marsh OBE

Professor R Nag

Other Trustees who served during the period of the report:

Dr B S Bhangu OBE (retired 30 September 2023) Dr A C Harter CBE DL (retired 5 May 2023) R C Hurst (retired 30 September 2023) Professor P M Needham (retired 30 September 2023) Professor K Sugden (retired 30 September 2023) Sir Julian Young KBE CB (retired 30 September 2023)

Executive Team

Ed Almond (Chief Executive and Secretary) Toni Allen (Chief Engagement and Growth Officer) John Sullivan (Chief Technology Information Officer) Morna Dason-Barber (People Director)

Sara Killingworth (Portfolio and Product Management Director)

Christopher Knibb (Governance and External Engagement Director) Michelle Richmond MBE (Interim Operations Director) Simon White (Chief Finance Officer)

D E Ohlson (appointed 1 October 2023) Colonel A J Rogers (appointed 1 October 2023) M R Singhal MBE (appointed 1 October 2023) Professor S K Spurgeon OBE

IET Trustees’ Annual Report and Accounts 2023

108

Auditors

BDO LLP, 2 City Place, Beehive Ring Road, Gatwick, West Sussex RH6 0PA

Bankers

Barclays Bank Plc, One Churchill Place, London E14 5HP

Solicitors

Custodian

BNY Mellon, London Branch, One Canada Square, London E14 5AL

Investment Advisers

Mercer Limited, 1 Whitehall Quay, Leeds LS1 4HR

Actuary

Hymans Robertson, One London Wall, London EC2Y 5EA

Mills & Reeve, Botanic House, 100 Hills Road, Cambridge CB2 1PH

Investment Managers

BlackRock Advisors (UK) Limited, 12 Throgmorton Avenue, London EC2N 2DL

Mercer Global Investments Europe Ltd, 2nd Floor, Charlotte House, Charlemont Place, Dublin 2, Ireland

Oak Hill Advisors (Europe) LLP, 45 Pall Mall, 4th Floor London SW1Y 5JG

IET Trustees’ Annual Report and Accounts 2023

109

Working together to engineer a better world

Contact information

London, UK

T +44 (0)20 7344 8460 E faradaycentre@ietvenues.co.uk

Stevenage, UK T +44 (0)1438 313311 E postmaster@theiet.org

Beijing, China* T +86 10 6566 4687 E china@theiet.org W theiet.org.cn

Hong Kong SAR T +852 2521 2140 E infoAP@theiet.org

Bengaluru, India T +91 80 4089 2222 E india@theiet.in W theiet.in

New Jersey, USA T +1 (732) 321 5575 E ietusa@theiet.org W americas.theiet.org

@TheIET theiet.org

The Institution of Engineering and Technology is registered as a Charity in England and Wales (No. 211014) and Scotland (No. SC038698). The Institution of Engineering and Technology, Futures Place, Kings Way, Stevenage, Hertfordshire, SG1 2UA, United Kingdom.

*A subsidiary of IET Services Ltd.