2023-09-30-accounts - The Institute Of Marine Engineering, Science And Technology

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INSTITUTE OF MARINE Engineering, S(ien(e & Technology Annual Report and Accounts 2023

Chair’s Foreword and Review of the Year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 5 About the IMarEST . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Trustees’ Annual Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Statement of trustees’ responsibilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 20 Independent auditor’s report to the trustees of the Institute of Marine Engineering, Science & Technology . . . . . . . . . . 24 Consolidated Statement of Financial Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Balance sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Consolidated statement of cash flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accounting policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33

IMarEST | 2023 Annual Report & Accounts | Page 2 of 51

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Chair’s
Foreword and
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This last year has seen us embark on an exciting journey of transformation and renewal in line with our 2022-2025 strategy which we unveiled in February 2023.

Part of the strategy involved delivering an IT transformation to improve member and customer experience. The first part of that project is now complete with our financial investment successfully delivering a new IMarEST website and customer relationship management system. The projects were delivered to a very high standard under an extremely tight deadline. This could not have been achieved without the dedication, hard work and collaboration by the Executive team and member volunteers, for which we thank them.

FY23 has also seen changes to personnel to the Board of Trustees, our Council, the Executive, and our team of employees. I am delighted to welcome Christy Farrer MBA, Professor Ed Hill, CBE and Sarah Grimshaw as new NonCouncil Trustees. Their collective expertise will undoubtedly contribute to our Institute’s success. Paddy Parvin has stepped down from the board as a Council Trustee, but has been elected by Council to become out first Vice-Chair of Council.

We are also fortunate to have a dedicated diverse and highly experienced group of elected Council Trustees who play a vital role in shaping the future of our Institute. They are: Dr. Parviz Sangin, Professor Chris Hodge, Professor Stephen de Mora, Dr. Sajid Hussain, Adthisaya Ganesen Manickam, Frank Mungo. Philip Parvin, and Kaushik Roy.

The Board of Trustees has officially delegated Council with implementing our Charitable Purpose, specific aspects of Operational Management, current strategy delivery, and managing relationships with members, Branches, and other bodies. To ensure continuity, we have established a Vice-Chair of Council and strengthened the Presidential Team.

The Council Executive Committee (CEC) has also been formed, comprising the President (as Chair of the Council), Vice-Chair, Chairs of the Council Committees, President Elect, Immediate Past President, and Delegates to the Engineering and Science Council. The CEC, chaired by the Vice-Chair of Council, will be responsible for governance related to the professional, technical and learned society delegated tasks, reporting to the Board of Trustees.

2023 was the last year that Gwynne Lewis, our Chief Executive, will be at the helm of IMarEST, having announced his forthcoming retirement. Gwynne has been an exceptional CEO, serving with dedication since mid-2020. Under his leadership, we have witnessed remarkable achievements, including the recruitment of a talented executive team, the successful implementation of new IT infrastructure, and the sale of our shares in MLA College Ltd. Gwynne’s instrumental role in revitalising our Institute’s finances and fostering operational excellence cannot be understated. The Trustees express our heartfelt gratitude for his contributions and wish him a fulfilling and well-deserved retirement, which he will begin in 2024.

It is my pleasure to announce that the Board of Trustees has recruited our new Chief Executive, Chris Goldsworthy, FIMarEST and former Cyprus Branch Chair. He joined the IMarEST in January 2024. Having returned to in-person events in the first half of 2022, I’m pleased to say that FY23 saw a continuation of this trend, with the Institute delivering our International Naval Engineering Conference and Exhibition and Annual Dinner, with plans in place for Oceans of Knowledge Conference and Engine as a Weapon X in FY24.

Our technical leadership in marine subjects continues to be driven not just through this events programme, but also through our Special Interest Groups (SIGs) and ongoing intergovernmental policy work. With a refreshed Technical and Policy team, we have been able to provide greater support for our SIGs and support several groups to refocus their work, including the new Superyacht SIG.

CONTINUED

IMarEST | 2023 Annual Report & Accounts | Page 3 of 51

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Chair’s
Foreword and
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CONTINUED

Based on consultation with our SIGs, we also published ‘Disruptive Technologies in the Marine Sector: 2023 and beyond’ – a report highlighting the potential impact of new technologies for the industry in coming years. Thank you to our SIG chairs for their insights on such projects and which help to demonstrate the expertise within the Institute and raise our profile.

National and international accreditations continued apace. We accredited 35 different courses/training schemes across 6 different institutions in FY23.

The agreements with our publishers once again allowed us to benefit from robust advertising revenue and sponsorship to support our events programme. Plus, our popular member magazine Marine Professional is set for a refreshed look and feel – look out for this in the new membership year.

As we move forward, we remain committed to your continued growth and development as marine professionals. Together, we will shape a brighter and more sustainable future for the marine sector. We must continue to deliver our three-year strategic plan which will allow us to continue to grow and provide value through membership. We must also seek to raise the profile of the IMarEST and the role of the ocean and maritime industries, ensuring their importance is recognised and that they drive positive change for a sustainable future.

IMarEST | 2023 Annual Report & Accounts | Page 4 of 51

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About the
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The Institute of Marine Engineering, Science and Technology is a registered charity and the international professional body and learned society for all marine professionals in over 120 countries - the largest marine organisation of its kind and the first Institute to bring together over 12,000 marine engineers, scientists and technologists into one international multi-disciplinary professional body.

We promote the scientific development of marine engineering, science and technology, providing opportunities for the exchange of ideas and practices and uphold the status, standards and knowledge of marine professionals worldwide.

We are a nominated and licensed body of the Engineering Council (UK), a member of the Science Council and have links with maritime organisations worldwide, unrivalled by similar organisations of their kind, including consultative status at the International Maritime Organization (IMO).

We provide grades of membership for everyone working in a marine-related role, from those seeking to become Chartered or other Professional Recognition, to those just starting out in their careers or studying in education. We enhance the professional development of marine engineers, scientists and technologists at all stages of their careers. Through our international Branches and multidisciplinary Special Interest Groups (SIGs), we enable marine professionals to engage on relevant topics, share knowledge and drive change. Through our partnerships with academia, industry and regulators, we raise professional standards and awareness.

IMarEST | 2023 Annual Report & Accounts | Page 5 of 51

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2022-2025
About the
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The IMarEST’s purpose is more critical than ever as we look at how we can make a difference across this decade andbeyond. As a home for those working across the marine sector, our role is to support marine professionals throughout their careers, ensuring they continue to develop their skills and stay abreast of the latest knowledge in their fields.

At the centre of our strategic plan to 2025 is a vision of the IMarEST as the trusted voice across the marine sector and as the global community for marine professionals, distinguished as leaders in shaping a sustainable world. As we take the Institute into the next chapter of its life, you will see us focus on six strategic themes:

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The IMarEST is the trusted voice across the marine sector and is the global community
for all marine professionals distinguished as leaders in shaping a sustainable world .
We enhance the professional development of marine engineers, scientists and
technologists at all stages of their careers . Through our international branches and
multidisciplinary special interest groups we enable marine professionals to engage MISSION
on relevant topics, share knowledge and drive change . Through our partnerships with
academia, industry and regulators, we raise professional standards and awareness .
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Membership experience

This theme focuses on creating a tailored membership experience that is accessible, valuable and relevant to all members across the professions and at every stage of their career. This includes delivering professional development, active community engagement and knowledge sharing.

Community and member engagement

This theme focuses on providing vibrant and engaged forums for members to network, share knowledge and drive change while enhancing the life of the Institute through increased participation in our activities. We aim to become a highly relevant and professional community for our members and to embed diversity and inclusion across our global membership.

Technical leadership

Using the expertise of our members, partners and our uniquely broad view of the marine sector, we will share knowledge, create insight and inform debate on technical and scientific issues.

Growth through innovation and relevance

This theme is about understanding and responding to the needs of academia, industry, regulators and members to develop and offer new products and relevant services.

Public profile and communications

This theme is about providing a platform for members to give expert advice and comment. We want to position the Institute to be the primary authority on marine issues across the professions.

Operational excellence

This theme is about transforming our operations to ensure that every activity, process, and project delivers an enhanced member experience and value to the organisation. We want to align and develop our staff and volunteers to support the aspirations of the Institute and drive the continual improvement of systems and processes for improved member and stakeholder engagement, information exchange, organisational growth and ultimately the long-term financial sustainability of the Institute.

IMarEST | 2023 Annual Report & Accounts | Page 6 of 51

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About the FY23
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Here are some of the highlights from FY23:

Our report, ‘Challenges in the Marine Industry: 2023 and beyond’ , identified the skills gap as one of the major challenges the marine OCTOBER sector faces over the coming decade. New edition of Marine Professional published

More than 250 delegates around the world gathered in Delft for our 16th International Naval Engineering Conference and Exhibition (INEC 2022) incorporating the International Ship Control Systems Symposium (iSCSS). NOVEMBER We appointed two new co-chairs to our Technical Leadership Board (TLB) - Jennifer Gomez Molina and Tim Kent

We launched a new ‘IMarEST China Technology Centre’ in Ningbo, China, DECEMBER to support professionalism in the region with access to IMarEST services and events. Creation of Council Executive Committee (CEC) to oversee the implementation of Council decisions, foster interaction and JANUARY interworking between and among Council committees, Board of Trustees and the Executive. We signed a memorandum of understanding with PETRONAS, to FEBRUARY support the professional development of their offshore engineers. We welcome our 120th President, Martin Shaw – his President’s Lecture focused on commercial shipping operations and the changes that have taken place over the past half century. Our 118th Annual Dinner brought together hundreds of marine professionals for an evening for of fine food and networking – featuring speeches from our MARCH President, Richard Noble, Dr Kirsi Tikka, and Chief MAKOi New edition of Marine Professional published

IMarEST | 2023 Annual Report & Accounts | Page 7 of 51

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About the FY23
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APRIL

MAY

JUNE

We partnered with Offshore Wind Learning IMarEST to help close the skills gap in offshore wind through a series of online courses.

Our Career Development Pathway membership was refreshed to help attract more graduates and young professionals as members.

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Working with
superyachts?
HELP DRIVE PROGRESS Our Special Interest Groups (SIGs) drive progress in a variety of technical fields. If you’d like to have a voice in a global forum to advance any and all aspects of superyachts and the superyacht sector, join us today.Our Institute comprises leading marine professionals across the industry and we invite you to join us in making an impact on the development of the superyacht sector and the specialist needs of those working with superyachts. Discover more about the Superyacht SIG here:
Sign up to the IMarEST now and receive 16 months of membership for the price of 12. Offer ends 11th of June 2023.
Sign up for discounted membership here:
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We were excited to launch a new Superyacht Special Interest Group (SIG), announced at the Palma Superyacht Show in Mallorca.

Our Executive and President attended the IMO Secretariat to meet the Secretary-General Kitack Lim for discussions about future collaboration.

New edition of Marine Professional published

JULY

The National University ‘Odessa Maritime Academy’ was awarded the 2022 IMarEST Outstanding Contribution Award, sponsored by P&S Automation.

AUGUST

Our new customer relationship management (CRM) platform and website went live, providing members an enhanced digital experience and exciting new features.

SEPTEMBER

New edition of Marine Professional published

IMarEST | 2023 Annual Report & Accounts | Page 8 of 51

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Trustees’
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Charitable Purposes

The IMarEST charitable purposes are delivered to the benefit of either the public at large or the global marine community:

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ADVANCEMENT OF MARINE
ENGINEERING, SCIENCE
AND TECHNOLOGY
•
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Advancing the understanding and practice of marine engineering, marine science and marine technology

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EDUCATIONAL ENVIRONMENTAL
EXCELLENCE SUSTAINABILITY
• •
Promoting educational Promoting environmental
excellence for marine sustainability for the benefit
professionals and students of humanity
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RELIEF OF POVERTY

•

Relieving global poverty through the safe and sustainable use of ocean trade and resources

IMPROVED SAFETY

• Improving safety for those operating and working in the global marine sector

ETHICAL PROFESSIONALISM • Encouraging ethical professionalism by upholding standards

IMarEST | 2023 Annual Report & Accounts | Page 9 of 51

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Trustees’
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Underpinning membership expertise

Delivery of the benefits described above depends upon the IMarEST maintaining a strong body of professional expertise incorporated in a financially robust and sustainable body. This expertise is essential to provide technical and social leadership and advice, and to ensure the safety, effectiveness and sustainability of global marine activities. This expertise is developed and recognised through our membership qualification, registration and professional development processes, through the maintenance of a body of technical information, and through professional and technical support. The IMarEST’s own activities as a professional body are not considered to generate detriment or harm.

Membership

The IMarEST could not deliver its charitable purposes to the public benefit without its membership, and the membership subscriptions which are used to fund activities for public benefit. General membership of the IMarEST is open to the whole marine community and, through Affiliate membership, to any member of the public with an interest in marine affairs. Financial barriers to membership are minimised. Membership for students, apprentices, cadets and others in full-time education is free and a Career Development Pathway scheme is in place to offer discounts following graduation. Concessionary rates are in place for those living in certain countries, for those who have retired and for long-service members. Any member suffering financial hardship may apply for fees to be reduced or waived.

Fundraising

All solicitations are managed internally, without involvement of commercial participators, professional fundraisers or third parties and are focused on generating income to support delivery of our charitable purposes. The day-today management of all income generation is delegated to the executive team, who are accountable to the Trustees. Fundraising income is presented in our accounts as “Donations”. The Institute is aware of the UK Fundraising Regulator’s guidance, has received no complaints in the year and is confident in its ability to comply.

Charity Commission Guidance

The IMarEST Board of Trustees confirms it has complied with the duty outlined in Part 2 of the Charities Act 2011 to have regard to guidance on public benefit published by the Charity Commission when exercising any powers or duties to which the guidance is relevant.

IMarEST | 2023 Annual Report & Accounts | Page 10 of 51

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What
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Membership experience

In FY24 we shall continue to grow our membership and registers across engineering, science and technology by creating a tailored membership experience that is accessible, valuable and relevant to all members at every stage of their career.
We will continue to work closely with the Engineering Council and the Science Council to ensure all our membership and registration processes and operations are fit for purpose and meet the needs of applicants from the marine sector.
During FY24 we will continue to deliver academic and professional accreditations and CPD recognitions to organisations, training providers and universities internationally.
Inspire, support and develop the next generation of marine professionals through a programme of relevant activity and encourage enrolment on the Career Development Pathway.
We will continue to develop partnerships with governments and industry to promote professional development of their staff.

Community and member engagement

We will run a series of high-quality events and workshops to lead on key technical issues and use a mix of inperson and online formats to create ‘hybrid’ events for greater accessibility. Key events in the FY24 calendar:
Oceans of Knowledge
Engine As A Weapon Symposium X
Annual Dinner
Future Leaders Forum
IMarEST Annual Conference
We will engage with the branches and SIGs, continuing to support them in delivering a range of services to members, including training them to deliver hybrid and online lectures and to record in-person meetings.
We will provide increased opportunities for members to network and exchange information and expertise with other marine professionals locally and around the world.
Expand our support of and engagement with Student Sections and encourage the establishment of new Sections.

Technical leadership

We will use the expertise of our members to provide an invaluable public service, sharing impartial, scientific and engineering expertise with governing bodies to help them in evidence-based decision and policy making.
We will ensure decisions that directly affect marine engineers, scientists and technologists and the way they undertake their work are communicated to members and ensure policymakers are developing reasonable regulation that can be implemented by our community.
We will develop awareness across relevant sectors and specialisms through our interdisciplinary content and magazine.

IMarEST | 2023 Annual Report & Accounts | Page 11 of 51

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What
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Growth through innovation and relevance

We will focus on working much more closely with our corporate clients to deepen our understanding of how we can support them.
We will further grow and commercialise our events programme
We will work with Think Publishing to improve our portfolio of member content and open access content under the established Marine Professional brand, as well as sponsorship and advertising revenue.
We will also continue to work with Witherby’s Seamanship International on our existing book portfolio and seek further book publishing opportunities in FY25.
As we have come to the end of our five-year contract with Taylor & Francis for the publication of our two technical journals, we are actively inviting proposals from alternative publishing houses, as well as an invitation to renew from Taylor & Francis.

Public profile and communications

We will enhance our marketing and communications strategy to improve external communications and media engagement to better communicate the work of the Institute for future growth.
We will continue to develop the website to enhance member engagement, resources and the overall user experience.
We will explore further investment in media training for our senior spokespeople

Operational excellence

We will continue developing and expanding our IT estate, website and CRM to ensure maximum productivity and efficiency in delivering membership and business services.
We will deliver financial targets and key performance measures as agreed by the Board of Trustees.

IMarEST | 2023 Annual Report & Accounts | Page 12 of 51

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Financial
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The table below provides a high-level breakdown of income as shown in the consolidated statement of financial activities and notes to the financial statements.

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2023 2023 2022 2022
£'000 % £'000 %
Income from charitable activities 2,531 85.13 2,462 84.23
Investment income 410 13.79 402 13.75
Net income from associates 19 0.64 58 1.98
Donations and legacies 13 0.44 1 0.04
2,973 100.00 2,923 100.00
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The IMarEST’s overall financial position shows net movement in funds as follows:

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2023 2022
£'000 £'000
Net deficit (excl.pension adjustment) prior to other gains (losses) (342) (125)
Pension Scheme Adjustment (Note 18) 201 254
Net income before recognised gains and losses (141) 128
(Loss) gains on listed investments 294 (1,680)
Actuarial gains on defined benefit pension scheme liability (11) 125
Foreign exchange losses on translation (15) (17)
127 (1,444)
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The underlying financial performance of the Institute was a deficit of £277k (2022: £125k). The implementation of our the new CRM and website has impacted our revenue generating activities. Improvements in market conditions have seen a gain in our investment portfolios, totalling £294k (2022: (£1,680k)). Income from investments remains broadly consistent year on year at £410k (2022: £402k). The weakening of sterling against other currencies has led to a foreign exchange loss of £15k (2022: £17k). There has been an overall positive movement of £201k (2022: £379k) on the valuation of the Retirement Benefit Scheme deficit.

The Group balance sheet shows total net assets of £11,078k as follows:

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2023 2022
£'000 £'000
Total net assets before pension scheme liability 12,635 12,709
Defined benefit pension scheme liability (1,557) (1,758)
11,078 10,951
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IMarEST | 2023 Annual Report & Accounts | Page 13 of 51

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Financial
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Charitable application

The table below provides a high-level breakdown of the application of funds to our charitable purposes as shown in the notes to the financial statements.

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2023 2023 2022 2022
£'000 % £'000 %
Membership Services 1,255 40.30 1,271 44.3
Technical Publications & Books 131 4.21 141 4.92
Conferences & Events 666 21.39 454 15.83
Marine Partners & Members Fees 330 10.60 291 9.87
Accreditation 170 5.46 173 6.01
Technical & Library 548 17.60 527 18.37
Awards 14 0.45 19 0.71
3,114 100.00 2,876 100.00
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Cash and investment policy

The Institute’s Royal Charter gives the Institute the power ‘to invest the monies of the Institute not immediately required in or upon such investments or other property or other assets as the Trustees may think fit.’ The Board of Trustees delegates day-to-day management of its investment portfolio to its investment managers and they act on a discretionary basis in accordance with the Statement of Investment Policy and Principle (SIPP) and benchmarks agreed with the Board of Trustees.

The Institute is following a strategy of predictable income using a selection of funds managed by Sarasin and Partners LLP (Sarasin). The SIPP and benchmarks are reviewed annually and adjusted as deemed necessary by the Board of Trustees. In the determination of benchmarks and the review of performance against these benchmarks the Trustees receive advice from an independent Investment Adviser.

The performance* against benchmark for the funds comprising the investment portfolio is given in the following table:

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Benchmark Portfolio
Sarasin Income and Reserves Fund Class A Inc 6.0% 4.0%
Sarasin Endowments Fund Class A Inc 9.3% 6.7%
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*performance is calculated ‘net’ of investment management fees and takes into account receipts and withdrawals from the portfolio during the period.

The Board of Trustees keeps under review the adequacy of the Treasury to fund immediate cash flow requirements, short-term capital projects and risk mitigation without jeopardising the invested reserves.

IMarEST | 2023 Annual Report & Accounts | Page 14 of 51

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Financial
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Total Return Accounting

On 18 September 2018 the Committee of Management of the Memorial Fund (a Permanent Endowment Fund) agreed to adopt a total return investment approach under section 105 of the Charities Act 2011 for the Memorial Fund and that its core value should remain set at £3,044,472 as shown on the Memorial Fund balance sheet for the year ending 30 September 2011. They further agreed that responsibility for the implementation and oversight of adopting a total return basis should be delegated to the Institute’s Finance & Investment Committee.

Reserves and reserves policy

In addition to its operating funds (i.e. working capital in current and deposit accounts), the IMarEST maintains a variety of funds and investments with different aims and structures:

a) Restricted Funds. The IMarEST retains two separate Restricted Funds:
ii. The Awards and Scholarships Fund. This was established from legacies and donations received over time and is used to fund rewards for excellence within the fields of Marine Engineering, Science and Technology, with any unexpended income being retained within the fund. At 30 September 2023 its value was £243k (2022: £233k). It is considered as a reserve for its specific purpose.
ii. The Permanent Endowment Memorial Fund (PEMF). This was created after the sale of the Mark Lane building from 25% of the net proceeds. It is governed by its own scheme rules, under which dividend income can be used for the charitable purposes of the Institute but the core capital value must be preserved. At 30 September 2023 its core value was £3.044M. The fund is managed on a Total Return basis (in accordance with Charity Commission guidance) wherein capital gain above the core value can be taken as income. The Fund can be considered as part of the reserves – but under normal circumstances only for income generation. At 30 September 2023 the total fund value, including unapplied total return was £3.78M (2022: £3.68M).
a) Unrestricted Funds (free reserves). Further IMarEST investment assets are contained in an investment fund which may be utilized for the general financial needs and charitable purposes of the Institute. At 30 September 2023 its value was £7.72M (2022: £8.63M). and can be considered free reserves.
b) Designated Funds. The Trustees have designated £892k (2022: £167k) of funds relating to tangible fixed assets and cash held overseas to reflect that these cannot easily be realised as cash to apply towards charitable purposes.

The IMarEST requires reserves for the following purposes:

a) In order to preserve the medium and long-term interests of the charity.
b) As a source of income to fund the IMarEST’s charitable purposes and Retirement Benefit Scheme (RBS) Recovery Plan.
c) As a contingency fund against recovery from maturing risks.
d) To meet the mid-term capital requirements of the Institute.

The reserves policy is to maintain the Institute, Memorial and Awards & Scholarship Funds at the required level in order to provide income to support delivery of the Charitable Purposes and RBS Recovery Plan without eroding capital value. IMarEST have recently updated the strategic plan for the next three years, which will see investment in capability and infrastructure to support efficiencies and growth. The designated funds and current target value of £12-£13m of free reserves will be reviewed in due course.

At 30 September 2023 the value of IMarEST free reserves and designated funds as shown on the charity balance sheet is £8.5M (2022: £8.6M).

IMarEST | 2023 Annual Report & Accounts | Page 15 of 51

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Financial
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Pay policy for senior staff

The executive team of the Group direct and control the operation of the Group on a day to day basis. The remuneration of the entire executive team is reviewed and approved annually by the IMarEST Remuneration Committee. This Committee is chaired by the Vice Chair of the Board of Trustees. The Committee ensures arrangements are affordable and fair, and are designed to motivate and reward performance in the interest of the Group. Remuneration is benchmarked periodically using external surveys and data which includes both commercial and not-for-profit organisations.

Risk management

Risk management is embedded within the operations of the Group. Risk registers are regularly maintained by the executive, and reviewed by the trustees. Currently the most significant risks are:

Category	Risk		Mitigation
Compliance	Adherence to a broad range of regulatory and statutory obligations, including fnancial reporting, direct		Update operational procedures, seeking ISO9001 certifcation in FY24. Appropriate staff training and
	and indirect tax, employment laws,		development to ensure we maintain
	Charity Commission guidance, data		appropriate skills and competencies in
	protection etc.		house, and supplement with external
			expertise where necessary.
People	As a small to medium sized business everything we do is highly dependent		We have reviewed our HR processes including recruitment, development,
	upon our volunteer network and our		succession planning and appraisal. We
	employees / executive. Post COVID the		also undertake manager training and
	local employment market is very		conduct regular staff		opinion surveys.
	buoyant and there is a risk that we		We are working towards an Investors in
	might lose key staff and their		People accreditation within the next 12
	experience, impacting the business in		months.
	the short to medium term.
Systems/Infrastructure	There is a risk that a lack of recent investment in our IT Systems and		We have completed the frst phase of our an IT Transformation Programme
	infrastructure might lead to a failure of		which has seen us move to the cloud and
	the system and a	loss of business	implement a new CRM system, website
	continuity.		and member portal.
			We will develop our communities
			platform during FY24		suporting member
			interactions with SIG's, Branches and
			each other.
Financial	Ability to meet defned beneft pension		The 2020 valuation was agreed with the
	liabilities.		RBS Trustees in December 2021, setting
			an affordable level of contributions until
			the next valuation in 2023. IMarEST have
			historically been reliant on the income
			from Investment	Assets to meet this
			obligation.
Financial	Ensuring that IMarEST’s portfolio of activities are fnancially sustainable.		A 3 year fnancial plan targeting a move to operational surpluses is currently
			under review, along with an extension of
			our strategic plan.
			A clear framework is used for bottom up
			budgeting, and forecasting. Internal
			project committees focus on customer
			engagement and	product development
			in response to member feedback.
			Improving engagement with students/
			early career professionals is key to
			longevity.

IMarEST | 2023 Annual Report & Accounts | Page 16 of 51

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Financial
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Audit

Financial audit oversight is delegated to the Finance & Investment Committee. Operational and procedural audit matters are overseen directly by the Board.

Members

The role played by our members, who so generously volunteer their time and expertise to serve the IMarEST, cannot be overestimated. Their contribution is vital across a number of activities, including the Professional Review process by which individuals are assessed for qualification to membership, as accreditors, providing technical lectures, contributing to our publications, as representatives of the IMarEST, through branches, through SIGs (Special Interest Groups), our various Committees, the Council and the Board of Trustees. The IMarEST is very grateful for the contributions of members and recognises that without their efforts there could be no IMarEST.

Related parties and connected organisations

As detailed in note 9 to the financial statements, IMarEST has two fully owned subsidiary undertakings Marine Management (Holdings) Limited, a company registered (01100685) in England and Wales. and Marine Exhibitons Limited, a company registered (09235513) in England and Wales. Marine Management (Holdings) Ltd is the parent company of MAREST (S) PTE Limited.

As at 30 September 2023, Marine Management (Holdings) Ltd held a 30% share in Marine People Limited, a marine specialist recruitment agency. The shares in MLA College Ltd held at last year end were sold on 16 December 2022.

The table below gives details of the composition of the Board of Directors of the companies identified above as at 30 September 2023.

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IMarEST IMarEST
Company Trustees Executive External Chair
Marine Management (Holdings) 1 2 2 External
Limited
MAREST (S) PTE Limited — 2 1 Executive
Marine Exhibitions Limited — 2 — Executive
Marine People Limited — 1 2 External
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The Institute has a close working relationship with the Guild of Benevolence of the IMarEST, which is a separate and independent charity. The Institute provides certain services to the Guild for which charges are made based on the costs incurred by the Institute. The Honorary Treasurer and Secretary of the Institute are ex-officio members of the Guild’s Committee of Management but the Institute has no overall control of the charity.

The Institute has historically had a close relationship with the Memorial Fund, which was a separate charity whose exclusive objects were to repair and maintain the property of the Institute, to advance education in engineering, science, and technology in the marine environment, and to advance the general charitable purposes of the IMarEST. Although it remains legally constituted as a separate charity, since July 2012 the Memorial Fund has been linked to the main Institute charity for registration and accounting purposes and no longer has a separate charity registration number. The Trustees of the Institute at any given time also serve as the trustees of the Memorial Fund.

In pursuance of its charitable objectives, the Institute has a working relationship through the joint branch arrangements with the Royal Institution of Naval Architects.

IMarEST | 2023 Annual Report & Accounts | Page 17 of 51

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Structure,
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Board of Trustees

The Institute of Marine Engineering, Science and Technology is a body incorporated by Royal Charter (registered number RC000256) and a charity registered in England & Wales (number 212992). It is governed by a Royal Charter, Bylaws and Regulations which were last updated in 2018 and 2023 respectively.

The overall governance and control of IMarEST is managed by a Board of Trustees (the Board) whose members are the charity trustees of IMarEST. The Board is composed of the five Officers of the Institute plus between 9 and 15 other Trustees, of which at least six must be Council Trustees and at least three Non-Council Trustees. Council Trustees are appointed by Council and Non-Council Trustees are appointed by the Board itself. IMarEST recruits trustees with the relevant skillset to support the Institutes activities. All Trustees receive an induction to IMarEST, along with an overview of the responsibilities of trustees. They are encouraged to attend training sessions during their tenure. The Chair of the Board is a Fellow of the IMarEST and appointed by the Board but need not be a member of either the Board or Council at the time of appointment. A Vice-Chair is selected by the Board from among its existing membership. The Board has three committees to focus on specic asp ects of its work in detail: Nominations and Remuneration (both composed solely of Board members) and Finance & Investment, composed of Board members and, at the discretion of the Board, one or more individuals with specialist expertise who are not currently members of the Board. In addition, the Presidents’ Advisory Committee, composed of past Institute presidents, is considered a Board committee.

Council

The Council is the representative body of the members of the Institute and acts in an advisory capacity to the Board of Trustees. It also provides oversight for the professional, technical and learned society activities of the Institute under delegation from the Board. Appointed Members of Council are appointed by Council to three-year terms on the recommendation of the Nominations Committee. Elected Members of Council are elected to threeyear terms by the Voting Members in the relevant electoral division. Both Appointed Members and Elected Members are eligible to serve two consecutive terms of office and there are currently four electoral divisions: Americas, ANZSPAC (Australia and New Zealand), Asia Pacific and EMEA (Europe, Mid East and Africa). The Honorary Treasurer is elected annually by Voting Members across all electoral divisions. The President of IMarEST serves as the Chair of Council as well as IMarEST’s ambassador and is appointed to a one-year term by Council on the recommendation of the Presidents’ Advisory Committee. The President is supported by the Presidential Team, which consists of the President Elect, Immediate Past President and the Vice Chair of Council. The Vice Chair of Council is appointed for three years and chairs the Council Executive Committee which supervises the work of the Committees of Council.

Council delegates the delivery of specific aspects of its work to its standing committees: Membership Committee, Professional Affairs and Education Committee (PAEC), Publications Supervisory Board (PSB) and Technical Leadership Board (TLB). Council must meet a minimum of twice each year and normally holds two face-to-face and two on-line meetings during the year.

IMarEST | 2023 Annual Report & Accounts | Page 18 of 51

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Statement
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The trustees are responsible for preparing the trustees’ report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and the group and of the income and expenditure of the group and the charity for that period. In preparing these accounts, the trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in 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);
make judgements and estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and
prepare the accounts on the going concern basis unless it is inappropriate to presume that the group and charity will continue in operation.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, applicable Charity (Accounts and Reports) Regulations and the provisions of the charity’s Royal Charter. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of accounts may differ from legislation in other jurisdictions.

Approved by the trustees and signed on their behalf on 2 April 2024 by:

Kevin Daffey Chair of Board of Trustees

Martin Murphy Honorary Treasurer

IMarEST | 2023 Annual Report & Accounts | Page 19 of 51

Independent auditor’s report to the trustees of the Institute of Marine Engineering, Science & Technology

Opinion

We have audited the financial statements of The Institute of Marine Engineering, Science and Technology (“the Parent Charity”) and its subsidiaries (“the Group”) for the year ended 30 September 2023 which comprise the consolidated statement of financial activities, the consolidated and Parent Charity balance sheets, the consolidated cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the Group’s and of the Parent Charity’s affairs as at 30 September 2023 and of the Group’s incoming resources and application of resources for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.

Basis for opinion

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

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’s or 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.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

IMarEST | 2023 Annual Report & Accounts | Page 20 of 51

Other information

The other information comprises the information included in the Annual report and Accounts 2022, other than the financial statements and our Auditor’s report thereon. The Trustees are responsible for the other information contained within the Annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Parent Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report.

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

adequate accounting records have not been kept by the Parent Charity; or
the information given in the trustees’ annual report is inconsistent in any material respect with the accounts; or
the Parent Charity financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Trustees’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities, 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.

IMarEST | 2023 Annual Report & Accounts | Page 21 of 51

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and Charity and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) and the Charities Act 2011) and those that relate to data protection (General Data Protection Regulation). identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of noncompliance throughout the audit.

We assessed the susceptibility of the Group and Charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias;
used data analytics to investigate the rationale behind any significant or unusual transactions; and
tested authorisation controls on expenditure items, ensuring all expenditure was approved in line with the Group and Charity’s financial procedures.

IMarEST | 2023 Annual Report & Accounts | Page 22 of 51

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;
reading the minutes of meetings of those charged with governance; and
enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the accounts is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charity’s trustees, as a body, in accordance with the Charities Act 2011. 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.

Edward Finch (Senior Statutory Auditor)

For and on behalf of Buzzacott LLP, Statutory Auditor 130 Wood Street London EC2V 6DL

Date: 2 April 2024

IMarEST | 2023 Annual Report & Accounts | Page 23 of 51

Consolidated Statement of Financial Activities

Year to 30 September 2023

Notes Income Donations and legacies 1 Charitable activities 2 Investment income 3 Income from associates 3 Total income Expenditure Charitable activities 4 Other expenditure Write down of investment in associates 6,12, 19 Total expenditure Net income (expenditure) before investment gains and losses Gain / (loss) on listed investments 9a Net income / (expenditure) Transfers between funds 18 Net income/(expenditure) before other recognised gains and losses Actuarial (loss) / gains on defined benefit pension scheme ` Foreign exchange losses Net movement in funds Reconciliation of funds Total funds brought forward at 30 September Total funds carried forward at 30 September	Unrestricted funds £’000 2 2,531 272 19 2,824 3,100 — 3,100 (276) 196 (80) 129 49 (11) (15) 23 7,037 7,060	Restricted funds £’000 11 — 9 — 20 14 — 14 6 4 10 - 10 — — 10 233 243	Endowment funds £’000 — — 129 — 129 — — — 129 94 223 (129) 94 — — 94 3,681 3,775	Total funds 2023 £’000 13 2,531 410 19 2,973 3,114 - 3,114 (141) 294 153 — 153 (11) (15) 127 10,951 11,078	Total funds 2022 £’000 1 2,462 402 58
					2,923
					2,869 (74)
					2,795
					128 (1,680)
					(1,552) —
					(1,552) 125 (17)
					(1,444) 12,395 10,951

Income and expenditure was derived from continuing activities in the above periods, with the exception of the write down in associates.

IMarEST | 2023 Annual Report & Accounts | Page 24 of 51

Balance sheets

As at 30 September 2023

, Group 2023 2022 £’000 £’000 834 59 16 77 11,962 11,737 12,812 11,873 542 1,744 201 459 743 2,203 (920) — - 12,635 12,709 (1,557) (1,758) 11,078 10,951 3,775 3,681 243 233 891 167 7,726 8,628 (1,557) (1,758) 11,078 10,951 (1,367) (177) 836	Charity	Charity
2023 £’000 834 16 11,962 12,812 542 201 743 (920) — 12,635 (1,557) 11,078 3,775 243 891 7,726 (1,557) 11,078 (177)	2023 £’000 786 11 11,938 12,735 642 140 782 (1,028) (246) - 12,489 (1,557) 10,932 3,775 243 887 7,584 (1,557) 10,932	2022 £’000
		- 77 11,622
		11,699
		1,702 407
		2,109 (1,302)
		807
		45
		12,551 (1,758) 10,793
		3,681 233 167 8,470 (1,758)
		10,793

The accompanying accounting policies and notes form an integral part of these financial statements. The financial statements on pages 22 to 48 were approved by the trustees on 2 April 2024 and signed on their behalf by:

Kevin Daffey Chair of Board of Trustees

Martin Murphy Honorary Treasurer

IMarEST | 2023 Annual Report & Accounts | Page 25 of 51

Consolidated statement of cash flows

Year to 30 September 2023

Cash flows from operating activities Net movement in funds for the year before other recognised gains and losses Adjustments for Depreciation charges tangible assets Amortisation charges intangible assets Write back of negative goodwill Decrease in stock Decrease (increase) in debtors due within one year Decrease in debtors due in more than one year Decrease in creditors DB pension charge contributions net of interest expense Dividends and investment income receivable Net income from associates Gains on listed investments Foreign exchange losses Net cash used in operating activities Cash flows from investing activities Dividend received from investments Purchase of property, plant and equipment Purchase of intangible assets Proceeds from sale of listed investments Purchase of listed investments Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at 1 October Cash and cash equivalents at 30 September Analysis of cash and cash equivalents Cash at bank and in hand Cash held by investment managers Total cash and cash equivalents	2023 £'000 153 19 29 - - 1,202 - (447) (136) (410) (19) (294) (15) 82 430 (9) (751) - - (330) (248) 563 315 201 114 315	2022 £'000
		(1,552) 76 11 (403) 4 (1,269) 1,584 99 (254) (402) (58) 1,680 (17)
		(501)
		450 (8) - 250 (7)
		685
		185 378
		563
		459 104
		563

The Group holds no external loans. There is therefore no difference between the changes in cash and cash equivalents and the changes in net debt.

IMarEST | 2023 Annual Report & Accounts | Page 26 of 51

Accounting policies

A summary of the principal accounting policies adopted (which have been applied consistently, except where noted), judgements and key sources of estimation uncertainty, is set out below.

Basis of preparation

The Financial Statements have been prepared in accordance with the Charities SORP (FRS 102), Accounting and Reporting by Charities: A 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) and the Charities Act 2011. The statements have been prepared under the historic cost convention, with the exception that investments, memorabilia and historic assets are included at market value. The financial statements are rounded to the nearest £’000.

The charity constitutes a public benefit entity as defined by FRS 102.

The trustees consider that there are no material uncertainties about the Group and Charity’s ability to continue as a going concern. The Charity holds significant reserves which will support a budgeted deficit position for the forthcoming year, whilst the income streams are diversified. Should the Charity require additional funding for operational activities, the investments can be realised quickly to ensure that financial obligations are met as they fall due.

Basis of consolidation

The accounts consolidate those of the Charity and its wholly owned non-charitable trading subsidiaries: Marine Management (Holdings) Limited, MAREST (S) Pte Limited and Marine Exhibitions Ltd.

The shareholding in MLA College Ltd was sold in December 2022, discharging the debtor disclosed at the end of last year. Intra-group transactions are eliminated in full.

As a result of a direction issued by the Charity Commission in July 2012, The Institute of Marine Engineering, Science and Technology Memorial Fund (the Memorial Fund) was linked with the funds of the Institute.

In the year ended 30 September 2006, the Stanley Gray Awards and The Institute of Marine Engineers Scholarship Fund merged with the Donald Maxwell Fund. Donald Maxwell Fund was linked, under a Charity Commission direction, with the funds of the Institute. The resulting linked charity is referred to as the Awards and Scholarship Fund. The Scholarship fund was enhanced by a generous injection of funds in respect of the John Blackburn Main Trust in 2007.

The Memorial Fund and The Awards and Scholarship Fund remain subject to their trusts and the terms under which they were given. The separate charity balance sheet and its related notes include these two funds.

IMarEST | 2023 Annual Report & Accounts | Page 27 of 51

Income

Income is recognised in the period in which the group and the charity has entitlement to income, the amount of the income can be measured reliably and it is probable that the income will be received.

Donations and legacies

Income from donations and legacies is included once the Charity is informed of an entitlement and that there is a probable assurance of receipt. Unless the legacies or donor specifies conditions of receipt, the income is included in the general fund.

Charitable activities

Subscriptions are recognised on an accruals basis. Receipts received in advance of the membership period are held as deferred income. Income is recognised using the stage of completion method and ongoing tutorial support is considered to be immaterial. Income generated from consultancy is recognised over the life of the project. Income from technical journals subscriptions and events are recognised in the year it relates to, with payments in advance held as deferred income.

Investment income and interest

Income receivable on deposits and investments is recognised when received. Income from permanently endowed investments is calculated on a total return basis (see note 9).

Expenditure

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the Charity to the expenditure. All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.

Where subsidiary companies undertake charitable activities these are included within the charitable expenditure.

All expenditure is inclusive of irrecoverable VAT.

Allocation of overheads

Where costs cannot be directly attributed to a particular charitable activity, costs are allocated using the best judgement. The allocation of overhead costs is analysed in note 4.

Governance costs

Governance costs have been analysed to show the cost of running the Charity, including strategic planning for its future development, legal advice for the Board of Trustees or Council. All the costs of complying with constitutional and statutory requirements, such as the costs of the Board of Trustees and Council meetings, and of preparing statutory accounts and satisfying public accountability, are allocated to charitable activity using best judgement.

Operating leases

Lease commitments are charged in the statement of financial activities on a straight-line basis over the lease term. Details of the lease commitments are shown in note 14.

IMarEST | 2023 Annual Report & Accounts | Page 28 of 51

Pension costs

The Institute's staff pension scheme incorporates a final salary section and a stakeholder section. The assets of the scheme are held separately from those of the Institute in an independently administered fund. The final salary section of the scheme was closed to new members on 5 April 2002. At that date, the final salary section, which previously was a non-contributory scheme, became a contributory scheme with active members paying 7% of their gross salary.

The final salary section of the pension scheme is accounted for in accordance with FRS 102 section 28 'Retirement Benefits'. The service cost of pension provision relating to the year, together with the cost of any benefits relating to past service if the benefits have vested, is charged to the statement of financial activities. A charge equal to the increase in the present value of the scheme liabilities (because the benefits are closer to settlement) and a credit to the Group's long term expected return on assets (based on the market value of the scheme assets at the start of the year), are also included in the statement of financial activities.

The difference between the market value of the assets of the scheme and the present value of the accrued pension liabilities is shown as an asset or liability on the balance sheet. Any differences between the actual and expected return on assets during the year are recognised in the statement of financial activities along with the difference arising from experience or assumption changes.

Contributions to the stakeholder section of the pension scheme are charged to the statement of financial activities in the year in which they become payable.

More information about the pension scheme is provided in note 17 to the financial statements.

Intangible assets

Intangible assets comprise the following:

Goodwill arising on the acquisition of a 30% interest in Marine People Limited.
Accounting Software
CRM and Website

Items of software are capitalised where they provide an on-going economic benefit to the charity. Costs incurred are capitalised to the extent that they relate to bringing the asset into a working condition or operating in the manner intended. Intangible assets are held at cost and amortisation is charged over their useful economic life on a straight line basis of 10 years. The impairment of intangible assets is considered annually, or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, and provision made when necessary.

IMarEST | 2023 Annual Report & Accounts | Page 29 of 51

Tangible assets

Leasehold property - Leasehold premises and associated acquisition costs are stated at cost. Depreciation is provided to write off the cost of the leasehold premises over the initial 5-year term of the lease.

Other tangible fixed assets - Assets with a value under £250 are not capitalised and all assets are assessed for signs of impairment at each Balance Sheet date.

Depreciation is provided to write off the cost, less estimated residual values, of other tangible fixed assets over their expected useful lives. Fixtures, fittings and equipment are depreciated on a straightline basis each year at rates between 20% and 33%.

Memorabilia - The Institute holds a collection of heritage assets which relate to the history of the Institution itself and the wider history of Marine Engineering, Science and Technology. Part of the collection is on loan to the South Shields Marine School. No depreciation is provided on the memorabilia and historic assets. Revaluation of these assets will be considered annually and subject to receiving a reliable valuation at a cost commensurate with the benefit to the users of the accounts and to the IMarEST, any increase or decrease in value of the assets from one year to the next will be treated as an unrealised gain or loss.

Investments

Investments in listed stocks and shares are stated at market value at the balance sheet date. Realised and unrealised gains on investments during the year are taken to the fund in which the investments are held. Any increase or decrease in the value of the assets from one year to the next is treated as an unrealised gain or loss.

All gains and losses are taken to the statement of financial activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and either the opening market value or the purchase cost if investments are purchased in the year. Unrealised gains and losses are calculated as the difference between the market value at the year-end and either the opening market value or the purchase cost if investments are purchased in the year. Realised and unrealised gains are not separated in the statement of financial activities.

At 30 September 2023, the Group had a 30% shareholding in Marine People Limited. In accordance with FRS 102, these associates have been accounted for using the equity method.

Taxation

The Institute of Marine Engineers, Science and Technology is a registered Charity and accordingly is exempt from taxation on its charitable activities.

Stocks

Stocks are valued at the lower of cost and net realisable value.

IMarEST | 2023 Annual Report & Accounts | Page 30 of 51

Foreign currency

Foreign currency transactions of individual companies are translated at the rates ruling when they occurred. Foreign currency monetary assets and liabilities are translated at the rate of exchange ruling at the balance sheet date. Any differences are taken to income and expenditure in the statement of financial activities.

The results of overseas operations are translated at the average rates of exchange during the year and the balance sheet translated into sterling at the rates of exchange ruling on the balance sheet date. Exchange differences which arise from translation of the opening net assets and results of foreign subsidiary undertakings are taken to other recognised gains and losses in the statement of financial activities.

Funds

Where income is received, which is subject to donor-imposed restrictions on its future use it is credited to restricted funds in the statement of financial activities. Expenditure of the resources for the specified purpose is charged to the restricted fund, and any balances of unexpended income are carried forward as restricted funds on the Balance Sheet. Where funds received are to be retained as permanent endowment, these are identified separately as endowment funds.

Where the Board of Trustees identifies a need to allocate funds for specific purposes, these funds are shown as designated funds in the balance sheet. Such funds are unrestricted as their designation is at the discretion of the Board of Trustees. All funds other than restricted funds and designated funds are regarded as free reserves and are called other unrestricted funds. Where funds previously designated are no longer required, they are transferred to other unrestricted funds.

Debtors, cash and creditors

Debtors – trade and other debtors are recognised at the settlement amount due after any trade discount offered. Amounts due are initially recognised at fair value and subsequently at amortised cost using the effective interest method where the effect of discounting is material. Prepayments are valued at the amount prepaid net of any trade discounts due.

Cash at bank and in hand – Cash at bank and cash in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

Creditors and provisions – Creditors and provisions are recognised where there is a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

IMarEST | 2023 Annual Report & Accounts | Page 31 of 51

Accounting estimates and judgements

In preparing the accounts, the trustees are required to make estimates and judgements. The matters detailed below are considered to be the most important in understanding the judgements that are involved in preparing the accounts, and the uncertainties that could impact the amounts reported.

Intangible assets – The allocation of staff time in support of the implementation of a new CRM and website has been based on prudent estimates provided by departmental managers. In deciding whether this time should be capitalised or expensed, an assessment has been made about whether the time incurred was directly attributable to bringing the asset into use or related to the general administration or training costs. Assessed useful economic life of the asset has been based on best estimate, which has been informed by previous replacement cycles.

Income recognition – a significant portion of the Group’s income is earned over a period of time following invoice. This includes membership subscriptions, registration fees for qualifications and annual centre fees. Income is allocated to each accounting period in accordance with accounting policy. The setting of the recognition methods and periods is an area where judgement is applied, and this is undertaken by reference to product definitions, and individual sales contracts.

Income and cost allocation to charitable purpose – the allocation of income and costs to charitable purposes is an area where judgement is applied and this is undertaken by reference to knowledge of the activities undertaken and to historic data trend.

Actuarial assumptions in respect of defined benefit pension scheme – the application of actuarial assumptions relating to the Institute’s defined benefit pension scheme is incorporated in the accounts in accordance with FRS 102. In setting the assumptions, advice is taken from independent qualified actuaries. These assumptions require significant judgement to be exercised with regard to such areas as future changes in salary and inflation, mortality rates and long-term discount rates.

Overseas bank accounts – there are cash balances in some overseas bank accounts that are difficult to access. The total of these balances at the end of the year was £42K. A full provision has been made against these amounts on the basis that some, if not all, of these balances would be recovered in due course.

IMarEST | 2023 Annual Report & Accounts | Page 32 of 51

Notes to the Financial Statements

1 Donations and legacies

Donations and legacies
Donations	Unrestricted funds 2023 £’000 2	Restricted funds 2023 £’000 11	Total funds 2023 £’000 13	Unrestricted funds 2022 £’000 -	Restricted funds 2022 £’000 1	Total funds 2022 £’000
						1

2 Income from charitable activities

Membership services Technical Publications & Exhibitions Conferences & functions Marine Partners & members fees Accreditation Technical & Library Support services	Unrestricted and total funds 2023 £’000 1,947 99 335 60 43 11 36 2,531	Unrestricted and total funds 2022 £’000
		1,987 64 157 70 133 21 30
		2,462

3 Investment income

Listed investments Interest income Income from associates Listed investments Interest income Income from associates	Unrestricted funds £’000 265 7 272 19 291 Unrestricted funds £’000 264 - 264 58 322	Restricted funds £’000 9 — 9 — 9 Restricted funds £’000 9 — 9 — 9	Endowment funds £’000 129 — 129 — 129 Endowment funds £’000 129 — 129 — 129	Total funds 2023 £’000
				403 7
				410 19
				429
				Total Funds 2022 £’000
				402 -
				402 58
				460

IMarEST | 2023 Annual Report & Accounts | Page 33 of 51

4 Expenditure on charitable activities

Membership services Technical Publications & Books Conferences & events Marine Partners & members fees Accreditation Technical & Library Awards	Direct costs £’000 545 40 411 57 43 185 14 1,295	Support costs £’000 710 91 255 273 127 363 - 1,819	Total 2023 £’000 1,255 131 666 330 170 548 14 3,114	Direct costs £’000 590 54 208 49 42 146 20 1,109	Support costs £’000 681 87 246 234 131 381 - 1,760	Total 2022 £’000
						1,271 141 454 283 172 527 20
						2,869

All of the above expenditure relates to expenditure on unrestricted funds, with the exception of Awards Expenditure, where £14k was restricted (2022: £20k).

Support costs above consist of:

Staff costs Office costs Governance costs Pension Scheme Costs Other costs	2023 £’000 763 95 61 238 663 1,819	2022 £’000
		753 106 41 166 694
		1,760

Other costs comprise Estates, IT, Marketing, Finance and HR.

5 Staff costs

Staff costs
Wages and salaries Social security costs Ordinary pension costs	2023 £’000 1,260 146 223 1,629	2022 £’000
		1,106 127 97
		1,330

Wages and salaries above includes £nil redundancy costs.

During the course of the year IMarEST have capitalised £201k of staff costs (included in figures above) relating to the development of the new CRM and Website. The cost has been transferred in the year to Intangible Assets.

IMarEST introduced a salary sacrifice scheme for employee pension contributions in 2022. Ordinary pension costs for FY23 represent the full employer contribution.

IMarEST | 2023 Annual Report & Accounts | Page 34 of 51

The average number of employees during the year was allocated as follows (based on estimated time spent on activities in the year on each charitable activity).

Membership services Technical Publications & Books Conferences & events Marine Partners & members fees Accreditation Technical & Library Support Total	2023 No. 3 1 1 1 2 2 10 20	2022 No.
		3 1 1 1 2 2 10
		20

The number of staff whose total emoluments (excluding employer's pension contribution and employer's national insurance) for the year was over £60,000 is as follows

£ 60,001 - £ 70,000 £ 70,001 - £ 80,000 £ 80,001 - £ 90,000 £90,001 - £100,000 £100,001 - £110,000 £110,001 - £120,000 £130,001 - £140,000 £140,001 - £150,000	2023 No. 1 1 - 1 - - 1 1	2022 No.
		2 1 1 1 - - 1 -

IMarEST introduced a salary sacrifice scheme in August 2022 which has impacted the emoluments calculation, and the employer pension contributions.

Employer pension contributions in respect of the above higher earners were as follows:

Contributions to defined contribution schemes, £ Number of individuals	2023 100 5	2022
		57 6

Key management personnel and trustees expenses

Key management personnel during the year comprise the members of the board of trustees, the Chief Executive, Finance and Commercial Director, Sales and Business Development Director, Membership and Professional Services Director, Head of Business Systems and Transformation, Head of Technical, Policy & Content, Head of Marketing & Communications, Head of Membership, and the Institute Assistant Secretary.

The total remuneration of key management personnel was £809K (2022: £804K).

No trustees were remunerated for their role as trustee.

IMarEST | 2023 Annual Report & Accounts | Page 35 of 51

Expenses were reimbursed to the trustees when they were claimed in accordance with the appropriate rules governing the payment of expenses.

Total expenses claimed, covering travel, subsistence and hotel expenses, £ Expenditure reimbursed relating to events, £ Total claim No. of trustees reimbursed	2023 £’000 22 - 22 11

During the year the IMarEST did not receive any donations from the trustees (2022: £nil).

6 Related party transactions

The following transactions and balances occurred between the Charity or its wholly owned subsidiaries and other non-wholly owned undertakings.

MLA College Ltd (MLA): The shareholding was sold on 16 December 2022. There were no charges to the SOFA in the current year relating to this sale. (2022 : £74k).
Marine People Limited: Dividends totalling £20k were received (2022: £48k) and costs of £Nil were paid for recruitment services (2022: £5k). All balances were settled at the year-end.
Marine Management (Holdings) Limited (MM(H)): There was an outstanding amount due from IMarEST to MM(H) of £53k (2022: £27k due from MM(H) to IMarEST). A historical balance related to a loan to fund investments in MLA and Marine People. The change in balance for FY23 relates to the par value of MLA share capital.
Marine Exhibitions Limited: Unpaid shares were transferred from MM(H) to IMarEST during the year, and the share capital was paid up by IMarEST. There was an outstanding amount due from MEX to IMarEST of £147k (2022: £Nil). Transactions between IMarEST and MEX relate to the IMarEST conferences and events portfolio.
Marest S PTE Ltd: There was an outstanding due from Marest to IMarEST of £14k (2022: £10k due from Marest to IMarEST) . These monies relate to charges to supporting IMarEST activities in Asia Pacific region.

Owing to the composition of the Board of Trustees, it is inevitable that IMarEST might have corporate members in which a trustee has an interest. Our standard corporate rates are applied to this membership. During the year £x (2022: £x) was received for corporate membership from such organisations.

Other than the above, there were no related party transactions.

IMarEST | 2023 Annual Report & Accounts | Page 36 of 51

7 Intangible fixed assets

Group

Group
Cost At October 2022 Transfers from tangible fixed assets Additions At 30 September 2023 Amortisation At 1 October 2022 Transfers from tangible fixed assets Charge for year At 30 September 2023 Net book values At 30 September 2022 At 30 September 2023	Marine People Limited Goodwill £’000 108 - - 108 49 - 11 60 59 48	Computer Software £’000 - 106 751 857 — 53 18 71 - 786	Total £’000
			108 106 751
			965
			49 53 29
			131
			59
			834

Of the above assets, £786k (2022: £Nil) of Computer Software is owned by the Charity. Additions relate to new Software brought into use at the end of the financial year. Depreciation will start in FY24 and the assets will be written down over a 10 year period. Historic investment in business systems has been reclassified from tangible fixed assets during the year.

8 Tangible fixed assets

Group

Group
Cost or valuation At 1 October 2022 Additions Transfers to intangible assets Disposals At 30 September 2023 Depreciation At 1 October 2022 Transfers to intangible assets Charge for year Depreciation on disposals At 30 September 2023 Net book values At 30 September 2022 At 30 September 2023	Leasehold acquisition costs £’000 9 - - - 9 9 - - - 9 - -	Furniture, fixtures and fittings £’000 364 - - (51) 313 355 - 9 (51) 313 9 -	Business systems and equipment £’000 638 9 (106) (404) 137 569 (53) 10 (404) 122 69 15	Total £’000
				1,011 9 (106) (455)
				459
				933 (53) 19 (455)
				444
				78
				15

IMarEST | 2023 Annual Report & Accounts | Page 37 of 51

Charity

Charity
Cost or valuation At 1 October 2022 Reclassifications Additions Disposals At 30 September 2023 Depreciation At 1 October 2022 Reclassifications Charge for year Depreciation on disposals At 30 September 2023 Net book values At 30 September 2022 At 30 September 2023	Leasehold acquisition costs £’000 9 - - - 9 9 - - - 9 - -	Furniture, fixtures and fittings £’000 364 - - (51) 313 355 - 9 (51) 313 9 -	Business systems and equipment £’000 630 (106) 6 (404) 129 562 (53) 10 (404) 115 68 11	Total £’000 1,003 (106) 6 (455)
				448
				926 (53) 19 (455)
				437
				77
				11

All tangible fixed assets are held at cost. Business systems have been reclassified as intangible assets.

The Institute also holds a collection of heritage assets which relate to the history of the Institution itself and the wider history of Marine Engineering, Science and Technology. Part of the collection is on loan to the South Shields Marine School.

Due to the fact that reliable cost information or comprehensive valuations are not readily available for these assets, and that such information cannot be obtained at a cost commensurate with the benefit to the users of the accounts and to the IMarEST, the values were written down to £nil in FY21 and are retained at that value.

The Trustees recognise the importance of the collection, which they will continue to maintain, and will recognise any expenditure which is required to preserve or prevent deterioration of individual collection items in the income and expenditure account when it is incurred. Expenditure in the current year totals £Nil (2022: £Nil).

9 Investments

Listed investments Investments in associates Subsidiary undertakings	Note a b c	Group 2023 £ 11,898 64 - 11,962	Group 2022 £ 11,592 145 - 11,737	Charity 2023 £ 11,898 - 40 11,938	Charity 2022 £
					11,592 - 30
					11,622

IMarEST | 2023 Annual Report & Accounts | Page 38 of 51

a) Listed investments

Group & Charity Market value at 1 October Additions at cost Disposals Net unrealised gains (losses) on revaluation Market value at 30 September Cash held with investment managers Total listed investments Cost at 30 September b) Investments in associates Group At 1 October 2022 Disposals in year Net income from associates Adjustments to carrying value At 30 September 2023	2023 £’000 11,488 - - 296 11,784 114 11,898 11,622 Marine People Limited £’000 65 18 (20) 63	2022 £’000 13,412 7 (215) (1,716) 11,488 104 11,592 11,622 Marine Learning Alliance £’000 80 (80) — — -	2023 £’000 145 (80) 18 (20)
			63

Marine People Limited is a company registered in England and Wales (Company Registration No. 10632568). The company is a marine specialist permanent recruitment agency. Marine Management (Holdings) Limited has 30% ownership of Marine People Limited. During the financial year ending 30 September 2023, the Group received a £20k dividend from the company (2022: £48k).

MLA College Ltd is a company registered in England and Wales (Company Registration No. 09188277). The company is a provider of marine related e-learning. Marine Management (Holdings) Limited sold its 40% shareholding in MLA College Ltd in December 2022. Note 12 provides further information.

c) Subsidiary undertakings

The following subsidiaries are part of the Group.

Name Nature of business Parent Holding Share capital, £ Marine Management (Holdings) Limited (MM(H)) Holding Company IMarEST 100% 30,000 MAREST (S) PTE Limited Membership MM(H) 100% 26,548 Marine Exhibitions Limited Events IMarEST 100% 10,000	Address of registered office
	1 Birdcage Walk, London, England, SW1H 9JJ 16 Raffles Quay, #33-03 Hong Leong Building, Singapore 1 Birdcage Walk, London, England, SW1H 9JJ

IMarEST | 2023 Annual Report & Accounts | Page 39 of 51

A summary of the results of each entity is shown below.

Total Income Cost of Sales Other operating expenses Profit/ (Loss) before tax Taxation Retained profit (losses) for the year Retained profit (losses) at 30.09.23	Marine Exhibitions Limited 2023 £’000 2022 £’000 436 - - - (436) - - - - - - - - -	MAREST (S) PTE Limited 2023 £’000 2022 £’000 161 153 - - (180) (155) (19) (2) - - (19) (1) (46) (27)	Marine Management (Holdings) Limited (MM(H)) 2023 £’000 2022 £’000 20 48 - (1) (2) 19 46 - 19 46 203 184	Marine Management (Holdings) Limited (MM(H)) 2023 £’000 2022 £’000 20 48 - (1) (2) 19 46 - 19 46 203 184
				184

Marine Management (Holdings) Limited

Marine Management (Holdings) Ltd, a company registered (Company registration 01100685) in England and Wales is the parent company of MAREST (S) PTE Ltd. The IMarEST is the ultimate parent company, owning the entire share capital of Marine Management (Holdings) Ltd. This company itself did not trade during the year, the board maintains its duties as the parent to MAREST (S) PTE Ltd and its reported expenditure consists of minor administration/filing charges.

MAREST (S) PTE Limited

MAREST (S) PTE Limited, incorporated on 13 August 2012, is registered in Singapore (201220044C) and is a 100% subsidiary of Marine Management (Holdings) Ltd. The IMarEST owns the entire share capital of Marine Management (Holdings) Limited, a company registered in England and Wales. The principal activity of the company is support for the delivery of IMarEST’s charitable purposes in the Asia Pacific region.

Marine Exhibitions Limited

Marine Exhibitions Ltd was incorporated on 25 September 2014 (Company registration 09235513). It is a 100% owned subsidiary of IMarEST. The principal activities of the company are those relating to the delivery of conferences, exhibitions and symposia. The company started trading on 1 September 2022.

IMarEST | 2023 Annual Report & Accounts | Page 40 of 51

10 Statement of total returns

10 Statement of total returns
30 September 2022 Permanent Endowment Unapplied total return Movements in the reporting period: Investment return: dividends and interest Investment return: realised and unrealised (losses) gains Unapplied total return allocated to income in the reporting period Net movements in reporting period 30 September 2023 Permanent Endowment Unapplied total return		Endowment £’000 Unapplied Total Return £’000 Total Funds 2023 £’000 Total Funds 2022 £’000 3,044 - 3,044 3,044 - 637 637 1,507
		3,044 637 3,681 4,551 - 129 129 128 - 94 94 (620)
		- 223 223 (492) - (129) (129) (378)
		- 94 94 (870) 3,044 - 3,044 3,044 - 731 731 637
		3,044 731 3,775 3,681

The total return allocated to income in the period was transferred to the general funds of the Institute.

11 Debtors due within one year

Trade debtors Other debtors Prepayments Amount due from group undertakings Amount due from associates Accrued income	Group 2023 £’000 112 227 166 - - 37 542	Group 2022 £’000 33 81 88 - 1,320 222 1,744	Charity 2023 £’000 83 217 144 161 - 37 642	Charity 2022 £’000
				16 73 77 - 1,320 216
				1,702

Other debtors includes income receipts of £191k (2022: £70k) made via 3rd party applications which have yet to be paid over to the charity bank accounts.

At the end of FY22, there was a debt due within one year relating to the Group’s interest in MLA College, which was sold in December 2022.

IMarEST | 2023 Annual Report & Accounts | Page 41 of 51

12 Debtors due in more than one year

2 Debtors due in more than one year
Amount due from group undertakings Amount due from associates	Group 2023 £’000 - - -	Group 2022 £’000 - - -	Charity 2023 £’000 - - -	Charity 2022 £’000
				37 8
				45

13 Creditors: amounts falling due within one year

Trade creditors Other creditors Tax and National Insurance Accruals Members’ subscriptions in advance Amounts due to group undertakings Other deferred income Deferred income movement Balance at 1 October Amount released in the year Amount deferred in the year Balance at 30 September	Group 2023 £’000 161 129 37 247 235 - 111 920 476 (476) 346 346	Group 2022 £’000 114 212 35 530 359 - 117 1,367 565 (565) 476 476	Charity 2023 £’000 150 127 34 360 235 53 69 1,028 519 (519) 304 304	Charity 2022 £’000
				108 212 33 518 359 - 72
				1,302
				551 (463) 430
				519

IMarEST | 2023 Annual Report & Accounts | Page 42 of 51

14 Operating lease commitments

4 Operating lease commitments
Group Within one year Between one and two years Between two and five years	2023 Property Other £ £ 138 3 44 3 - 4 182 10	2022
	Property £ 138 44 - 182	Property £ 64 - — 64	Other £
			3 3 7
			13

Of the above commitments, £148k (2022: £41k) relate to the Charity. As at 30 September 2023, the existing lease for the charities head office had expired. The charity has recently signed a new lease for 1 Birdcage Walk until 20 December 2024.

15 Capital Commitments

The Group and Charity had no capital commitments as at 30 September 2023 (2022: £Nil).

16 Auditors’ remuneration

Remuneration payable to the group auditor was as follows:

Financial statements audit current year Financial statements audit prior year HR Services VAT & Tax Advice / Services	Group 2023 £ 33 2 2 3 40	Group 2022 £ 32 3 4 1 40	Charity 2023 £ 31 2 2 2 37	Charity 2022 £
				29 3 5 -
				37

IMarEST | 2023 Annual Report & Accounts | Page 43 of 51

17 Pension schemes

The Group operates a defined benefit and a defined contribution pension scheme. The defined benefit scheme was closed to new entrants and to future service accrual on 5 April 2002. The defined contribution pension scheme was introduced on 5 April 2002 for the benefit of all staff.

The Institute's total contributions to the defined benefit scheme were £330k (2022: £300k).

Defined benefit pension scheme

In preparing these financial statements, the Institute has fully complied with the Financial Reporting Standard 102: "Retirement Benefits" issued by the Accounting Standards Board.

Benefits under the IMarEST Retirement Benefits Scheme (RBS) are based on employees' final remuneration and length of service. All assets of the scheme are held separately from those of the Institute in independently administered funds. The pension expense charged to the statement of financial activities makes no allowance for actuarial gains and losses during the year.

The RBS is in deficit and a recovery plan agreed with the Trustees of the RBS every three years.

In addition to the £330k contribution, administrative and other expenses of the scheme and the Pension Protection Fund levy are paid separately by the Institute. These costs amounted to £89k (2022: £126k )

In preparing these financial statements, the Institute has fully complied with the Financial Reporting Standard 102: "Retirement Benefits" issued by the Accounting Standards Board.

IMarEST | 2023 Annual Report & Accounts | Page 44 of 51

The actuary has computed the following information with respect to the financial position of the scheme as at 30 September 2023:

Group and charity Fair value of scheme assets Defined benefit obligation Net defined benefit (liabilities) assets Restriction on asset recognised at year end Net amount recognised at year end	2023 £'000 7,971 (9,528) (1,557) — (1,557)	2022 £'000
		8,460 (10,218)
		(1,758) —
		(1,758)

The amount recognised in the Statement of Financial Activities was:

Administration expenses Net interest expense Charge recognised in income and expenditure Return on scheme assets Actuarial gains (losses) Charge/(credit) recorded in other comprehensive income Total defined benefit cost/(credit)	2023 £'000 34 84 118 513 (502) 11 129	2022 £'000
		- 40
		40
		5,051 (5,176)
		(125)
		(85)

Changes in the value of scheme assets were as follows:

At start of the year Benefits paid Administrative expenses Contribution from the employer Interest income (expense) Return on assets At end of the year	2023 £'000 8,460 (704) (34) 330 432 (513) 7,971	2022 £'000
		13,473 (526) (6) 300 270 (5,051)
		8,460

Changes in the value of scheme liabilities were as follows:

At start of the year Benefits paid Interest income (expense) Past service cost (expense) Actuarial gains (losses) At end of the year	2023 £'000 (10,218) 704 (516) — 502 (9,528)	2022 £'000
		(15,610) 526 — (310) 5,176
		(10,218)

IMarEST | 2023 Annual Report & Accounts | Page 45 of 51

The major categories of scheme assets are as follows:

Return Seeking funds Fixed Interest Gilts Index Linked Gilts Hybrid gift fund Cash	2023 £'000 % 4,716 59 1,112 14 458 6 1,383 17 302 4 7,971 100	2022 £'000 %
		6,705 79 512 6 102 1 821 10 320 4
		8,460 100

Principal actuarial assumptions used:

Discount rate Inflation assumption – Retail price inflation Inflation assumption – Consumer price inflation Revaluation of deferred pensions – Deferred revaluation Increase for pension payment . Benefits accrued prior to 1 October 1999 . Benefits accrued after 1 October 1999 . Benefits accrued after 1 October 2005 Proportion of members opting for early retirement Proportion of members commuting maximum allowable pension for cash at retirement	2023 2022 % %
	5.55 5.23 3.40 3.67 2.40 2.87 3.40 3.67 5.00 5.00 3.85 3.83 2.25 2.43 — — 85.00 85.00

Discount rate
Inflation assumption – Retail price inflation
Inflation assumption – Consumer price inflation
Revaluation of deferred pensions – Deferred revaluation
Increase for pension payment
. Benefits accrued prior to 1 October 1999
. Benefits accrued after 1 October 1999
. Benefits accrued after 1 October 2005
Proportion of members opting for early retirement
Proportion of members commuting maximum allowable pension for cash at retirement

2023
2022
%
%

5.55
5.23
3.40
3.67
2.40
2.87
3.40
3.67
5.00
5.00
3.85
3.83
2.25
2.43
—
—
85.00
85.00

Assuming retirement at age 65, life expectancy in years are as follows:

Male currently aged 65 Female currently aged 65 Male currently aged 45 Female currently aged 45	2023 2022
	86.3 86.3 88.3 88.3 87.3 87.3 89.6 89.6

IMarEST | 2023 Annual Report & Accounts | Page 46 of 51

18 Movement in Funds

Group Unrestricted funds General funds Designated funds Intangible fixed assets fund Tangible fixed assets fund Overseas cash Pension reserve Restricted funds Awards and scholarships Endowment funds Charity Unrestricted funds General funds Designated funds Intangible fixed assets fund Tangible fixed assets fund Overseas cash Pension reserve Restricted funds Awards and scholarships Endowment funds	At 1 October 2022 £’000 8,628 - 77 90 (1,758) 233 3,681 10,951 At 1 October 2022 £’000 8,470 - 77 90 (1,758) 233 3,681		Income £’000 2,824 - - - - 20 129 2,973 Income £’000 2,544 - - - - 20 129 2,693	Expenditure £’000 (3,275) (18) (19) - 212 (14) - (3,114) Expenditure £’000 (2,983) (18) (19) 212 (14) - (2,822)		Gains and losses £’000 181 - - - (11) 4 94 268 Gains and losses £’000 181 - - (11) 4 94 268	Transfers £’000 (632) 804 (43) - - (129) — Transfers £’000 (628) 804 (47) - (129) — -	At 30 September 2023 £’000 7,726 786 15 90 (1,557) 243 3,775
								11,078
								At 30 September 2023 £’000 7,584 786 11 90 (1,557) 243 3,775
	10,793							10,932

Transfer between funds represent the application of total return on endowment funds (note 10) and movements on designated funds.

Purpose of funds

Designated funds

The trustees have earmarked part of the charity’s unrestricted funds as designated funds to be used for the following particular purposes in the future.

The intangible assets fund represents the net book value of goodwill and software owned by the Group. As a long-term asset, these intangible assets are expected to generate economic returns for the Group in the future.

The tangible fixed assets fund represents the net book value of the tangible fixed assets owned by the group, excluding historic assets and memorabilia (which are restricted funds). Such assets are vital to the group being able to carry out its charitable work and the value invested in the assets cannot, therefore, be realised in order to meet future expenditure or contingencies. To emphasise this point the net book value of the assets is represented by a specific tangible fixed assets fund.

IMarEST | 2023 Annual Report & Accounts | Page 47 of 51

The designated overseas cash fund was created on 30 September 2014 in respect of those cash at bank balances which cannot be readily transferred to UK and as such are not available to the trustees for charitable purposes.

Restricted funds

The Awards and Scholarships Funds were established via donations and legacies received over the course of time to create separate funds specifically available for rewarding excellence within the field of marine engineering, science and technology. Income arising from these funds is accumulated in the restricted income fund and is used to fund the prizes and awards.

Endowment funds

The permanent endowment funds form part of the funds of the Memorial Fund. On 18 September 2018 the Committee of Management of the Memorial Fund (a Permanent Endowment Fund) agreed to adopt a total return on investment approach under section 105 of the Charities Act 2011 for the Memorial Fund and that its core value should remain set at £3,044,472. They further agreed that responsibility for the implementation and oversight of adopting a total refund basis should be delegated to the Institute’s Finance & Investment Committee.

Net assets between funds

*et assets between funds*
Group Intangible fixed assets Tangible fixed assets Investment assets Net current liabilities DBS pension liability Group Intangible fixed assets Tangible fixed assets Investment assets Net current assets DBS pension liability	Endowment funds £ — — 3,775 — — 3,775 Endowment funds £ — — 3,681 — — 3,681	Restricted funds £ — — 243 — — 243 Restricted funds £ — — 233 — — 233		Unrestricted funds	Pension reserve £ — — — — (1,557) (1,557) Pension reserve £ — — — — (1,758) (1,758)	2023 Total funds 834 15 11,962 (177) (1,557)
			Designated funds £ 786 15 90 — — 891	General funds £ 48 — 7,853 (177) — 7,726 Unrestricted funds
						11,078
						2022 Total funds 59 77 11,737 836 (1,758)
			Designated funds £ — 77 90 — — 167	General funds £ 59 — 7,733 836 — 8,628
						10,951

IMarEST | 2023 Annual Report & Accounts | Page 48 of 51

19 Post Balance Sheet Events

There are no post balance sheet events to report in the current year. In the previous year, we reported the receipt of sale proceeds of £1.4M (£1,320k debt and £80k share capital) relating to the sale of shares in MLA College which completed on 16 December 2022.

20 Comparative consolidated statement of financial activities

Notes Income Donations and legacies 1 Charitable activities 2 Investment income 3 Income from associates 3 Total income Expenditure Charitable activities 4 Total expenditure Other expenditure Write down of investment in associates Total Expenditure Net (expenditure) income before investment gains and losses Loss on listed investments 9a Net income Transfers between funds Net income (expenditure) before other recognised gains and losses Actuarial gains on defined benefit pension scheme Foreign exchange losses Net movement in funds Reconciliation of funds Total funds brought forward at 30 September Total funds carried forward at 30 September	Unrestricted funds £’000 - 2,462 265 58 2,785 2,850 2,850 (75) 2,775 9 (1,019) (1,010) 378 (632) 125 (17) (524) 7,560 7,036	Restricted funds £’000 1 — 9 — 10 19 19 - 19 (9) (41) (50) - (50) — — (50) 283 233	Endowment funds £’000 — — 128 — 128 — — - - 128 (620) (492) (378) (870) — — (870) 4,551 3,681	Total funds 2022 £’000
				1 2,462 402 58
				2,923
				2,869
				2,869
				(75)
				2,794 128 (1,680)
				(1,552) —
				(1,552) 125 (17)
				(1,444) 12,395
				10,951

IMarEST | 2023 Annual Report & Accounts | Page 49 of 51

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Structure,
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Members of Board of Trustees

Chair Board of Trustees President President-Elect Immediate Past President Honorary Treasurer

Rachel Nicholls-Lee (Vice-Chair, Board of Trustees) Barry Brooks (to Mar’23) Nigel Brunning (to Mar’23) Yves De Leeneer (to Mar’23) Stephen de Mora Christy Farrer (from Jun’23) Adthisaya Ganesen Manickam (from Mar’23) Sarah Grimshaw (from Nov’23) Ed Hill CBE (from Jun’23) Christopher Hodge OBE Katherine Holmes (to Oct’22) Sajid Hussain Alan Mills (to Mar’23) Frank Mungo Philip Parvin (to Oct’23) Louise Rigby (to May’23) Kaushik Roy (from Mar’23) Parviz Sangin

Management Team

Chief Executive Gwynne Lewis (to Jan ’24) Chris Goldsworthy (from Jan ’24)

Commercial & Finance Director

Sue Arnold

Sales & Business Development Director Hector Sewell

Membership & Professional Services Director Susan Foster (from Nov’23)

Institute Assistant Secretary Margaret Marchetti

Head of Membership & Partner Services Richard Goldsbrough (to December 2022) Susan Foster (from Feb’23 to Oct’23)

Head of IT & Business Systems Ronnie van de Laak

Head of Marketing & Communications Anshie Patel (to May‘23) Patrick Carpenter (from May‘23)

Head of Technical & Policy Peter Sheppard (from Feb’23)

Members of Council

Chair, Board of Trustees President President-Elect Immediate Past President Honorary Treasurer Iain Anderson John Blacklock (to Mar’23) Christopher Bleasdale Barry Brooks John Butler (to Mar’23) Anna-Marie Chaffey Yves De Leeneer (to Mar’23) Stephen de Mora Valerio De Rossi (from Mar’23) William Doyle (to Mar’23) Robert Fitzsimmons Adthisaya Ganesen Manickam (from Mar’23) Bradley Golden Richard Graham (to Mar’23) Kenneth Greig Christopher Hodge OBE Sajid Hussain Franklin Joseph Sergey Karianskyi Pete Lambeth Jemma- Anne Lonsdale (from Mar’23) Bev Mackenzie Paul Marshall (to Mar’23) Leonard Michaels (to Mar’23) Stephen Morant (from Mar’23) Frank Mungo Philip Parvin Malek Pourzanjani Kaushik Roy Cassandra Ryan (to Mar’23) Parviz Sangin Nigel Smith (from Mar’23) George Sotirelis (from Jul ’23) Alex K M Tang (from Mar’23) Alexander Walster (from Mar’23) Mike Watt Elisabeth Wilson

Head of Events Jo Lewis (from Feb’23)

IMarEST | 2023 Annual Report & Accounts | Page 50 of 51

Principal Office

1 Birdcage Walk Westminster London SW1H 9JJ

t +44 (0)20 7382 2600

Auditor

Buzzacott LLP 130 Wood Street London EC2V 6DL

Bankers

Barclays Commercial Bank Level 27 1 Churchill Place London E14 5HP

Solicitors

Investment Manager

Withers LLP Sarasin & 20 Old Bailey Partners LLP London Juxon House EC4M 7AN 100 St Pauls Churchyard London EC4M 8BU

Incorporated by Royal Charter and a registered Charity (registration 212992).