Registered Charity Number: 214011 THE INSTITUTION OF GAS ENGINEERS AND MANAGERS Trustees, Report and Financial Statements Year Ended 31 December 2023
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS CONTENTS Page Legal and Administrative Information Trustees, Report 5-14 Statement of Trustees, Responsibilities 15 Independent Auditor's Report 16-18 Consolidated Statement of Financial Activities 19 Consolidated Balance Sheet 20 Charity Balance Sheet 21 Consolidated Statement of Cash Flows 22 Notes to the Financial Statements 23-39
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS LEGAL AND ADMINISTRATIVE INFORMATION Officer5 and Councll Membèrs as at 31st December 2023: President Andrew Musgrave CEn8 FIGEM Past Presldent David Parkin CEng FIGEM Presldent Elect David Tomkin CEng FIGEM Vlce Presldent Sarah Williams MIGEM Honorary Secretary. Benjamin Clarke C£ng MIET FIGEM thlef Emecutive Oliver Lancaster Bsc Msc FGS EngTech FIGEM Ordinary Members Paul Denniff CEng MIMechE FIGEM jordan Rowbottom CEng FIGEM Chi Xin Peter Chak BSC CEng FIGEM Lucy Ritchie MIGEM Gordon Mcmillèn AIGEM Darren Elsom IEng FIGEM Nicola Evan5 CEng MIGEM Adam Madgett EngTech TMIET MIGEM Earl Richards EngTech MIGEM Sikander Mahmood IEng MIMechE AIGEM Thomas James CEng MIGEM Sertlon Members Heng Xiang Zhou CEng MIGEM Conor O'Reilly CEng MIGEM Simon joyce IEn8 MIGEM London, Southefn & Eastern Peter Sykes-Tucker CEng MIGEM Midlands Lynsey Stevenson CEng MIMechE MIGEM North East & Yorkshire Nick Jerman EngTech MIGEM North West David Frost CEng MIGEM Scottish Henry larnes GradlGEM We15h J05h William5-Trim EngTech MIGEM South West Harriet Guiry Grad5GEM Young Peisons Section Tonywimpenny BEng Msc Company Members Far East Co-opted Members. Hllary Buxton CEnB FIMechE HonFIGEM' Chrlstopher Gorman CEng HonFIGEM' Sheila Lauchlan BSC CEng FIGEM. Michael 81ake CEng MIMechE MIGEM Bridget Hartley CEnE MIGEM. denotes Non-Trustee Also. Trustees for the period to 10th May 2023: David McLeod CEng MIGEM Brid8et Hartley CEng MIGEM Steve Critchlow EngTech FIGEM Michael 81ake CEng MIMechE MIGEM rim Roff CEn8 MICE FIGEM Lewis Watt5 CEn8 Mweldl MIGEM Kyle Lewis MIGEM Torn Stuart EngTech Matthew Kluwe AIGEM Andrew Jones CEn8
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS LEGAL AND ADMINISTRATIVE INFORMATION Secreiarlat Senlor Staff Chief Executive Officer Oliver Lancastei BSC MSC FGS EngTech FIGEM Head of Technical Services & Policv lan Mccluskèy BEn8 CEn8 FIMechE FIGEM Head of Finance Yusuf Girach FCCA Head of Membershlp Servlces Claire McHugh BAIHonsl AIGEM Head of Corporate Affairs and Operation5 Carl Stokes AIGEM Charity Number 214011 Reglstered Office Institution of Gas Engineers and Managers IGEM House 26 & 28 High Street Kegworth Derbyshire DE74 2DA Auditors UHY Hacker Young 14 Park Row Nottingham NGI 6GR Bankers HSBC Bank PIC 117 Great Portland Street London WIW 6QJ Sollcltors Browne Jacobson LLP Mowbray House Castle Meadow Road Nottin8ham NG2 18J Imiestment Managers Rathbone5 Investment Management 8 Finsbury Circus London EC2M 7A
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS YEAR ENDED 31 DECEMBER 2023 TRUSTEES, REPORT The Trustees of the Institution of Gas Engineers and Managers I'IGEM") present their report and audited financial statements for the year ended 31 December 2023. The financlal statements comply with the Insiitutlon's Royal Charter, applicable Companies and Charities Acts and the Charltles Statement of Recommended Practlce issued in October 2019. The Trustees consider that they have complied with their duties under Section 4 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. Objertfves and Actfvltles IGEM has a significant opportunity to lead an ambitious response frorn our sector to englneer a sustainable gas fLtture and help mitigate the impacts of climate change. IGEM needs to influence and keep In step with the evolvin8 landscape. and our Ambition, Priorities and Values will help deliver this for both our members and broader society for the gas system of today and tomorrow. We have embarked upon a new business plan covering the period 2023-2028 inclusive. which includes a critical tirneframe of both regulatory and policy decisions that are expetted to determine, and hopefully secure, the lon8-term direction of our industry. We recently con501idated IGEM'S focus and the way we go about our buslness our identity- which is at our core as we serve our rnembers and deliver our strategy. Our Ambition is to be the worfd'5 leading institution for gas professionals, advancing the safety, reliability and sustainability of erter8Y. Our Prioritie5 are core to our operatlon, supporting the delivery ol our strategy for societal benefit.. Promote, inspire and support the attainment and maintenance of the highest standards of professional competence arTrd excellence through ihe provlsion of high-quality products and services,. Design the gas system of the future. by leanin8 on our rich history and in leading the transition from fossil fuels to net zero. with low carbon gase5 as a critical part of a secure. wholè ener8V System., Provide personal and professional development for members and staff to grow their skills and reach their full potential in a supportive and diverse business environmeni; Engage stakeholders and listen. advise and influence,. developing innovation partnership5 to build informed analysis and evidence.. and Ensure our governance framework is robust and fit for purpose to allow our charitable oblertlves to be conducted effectively and efficientlv. Our Values define our professionalism and behaviour5. They reflect on our performance as a business and how we interact with members, colleagues, partners and customers.. Excellence.. to confidently and competently achieve. and help others achieve. the very highest standard5. Integrity.. doing the right thing based on core moral and ethical convictions,. Respect.. trusting, valuing and appretiatln8 the work of colleagues. members, volunteers and stakeholders independent of their posStlon or background., Open Mindedness: having an unprejudiced mindset that Is receptive to new ideas and opinions that may differ to your own., and Inngvative.. cultivate a community of èn8aged rnernbers and partners to tsndertake informed analysis and develop robust evidence to advise, influence and improve gas policy for public benefit. Our business plan pushes stronger in some of our current delivery areas, but has importantly introduced new activities to push the boundarie5 and Brow the membership, revenue and impact of ihe Institution. Key activities continue, which includes recruitment and retention of members. as well as provision of training and services io members and the widef industry to support members, continulng professional development, through the Gi journal, website, communications.
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS YEAR ENDED 31 DECEMBER 2023 TRUSTEES, REPORT conferences, lecture5 and technical training. In addition. technical advancement is achieved through review and development of Industry Standards and recommendations, research, networkin8 and Support. We have been delighted io see. as a result of our efforts, supported very much by our new website, the record 8rowth in numbers of individual member5 in a year since modern records began in 2009. We also see a continued growth in Company Members and have the most we've ever had in IGEM. The Sections within IGEM'S membership deliver varled programmes of events encompassing technical visits and paper evenin8s as well as networking and social activities. Several of these activities are international. Publlc BÈnÈflt Statement We have referred to the 8uidance contèined in the Charity Cornmi55ion's general guidance of public benefit when considering our Ambition. Priorities and Valuès and in plannin8 our future activities. In particular. the Tru5tee5 routinelv consider how planned activities will contribute to the Ambition, Priorities and Values they have set. IGEM deliver5 benefits for Society by applying expertise and experience to make an influential contribution to solvlng prèssing energy challenges in areas such as safety. security, affordability and sustainability, often bycollaborating openlv io enable effective action. We also effect positlve change by supporting the development of gas en8ineerin8 professionals as credible participants in a wider cornmunily of technical practitioners. Our main objectives for the year continved to be the promotion of engineering scgence as applied to the broad gas industry.. and to improve and elevate the technical knowledge of those engaged in the profession of gas engineerin8. The strategies we used to meet these objectives included.. Ensuring the competence of practislng gas engineers through a pathway for recognition. including registration with the Engineering Council.. PTovidin8 members with continuing profèssional development opportunities including free access to mentoring and support toward5 advancement through grades of membership. Providing awareness of technical developments and innovations through publications, conference5 and events, at both national and local level,. utilising technical expertise to advise and support the Governmenys pollcles on Net Zero, specifically developing technical standards and responding to consultations influencing statutory regulation.. Continuing to develop and publish peer reviewed Industry Standard5 aimed at enhancin8 the procedures for the safe use of natural 8as and hydrogen in the areas of transrnis5ion, distribution, utilisation and metering.. Securing approval to be an authoriser of recognlsed training providers,. Working Wlth skills partners to approve apprenticeships that lead to qualified gas technlclans.. Provision of scholarshlps and grants to individuals and companies undertaking research, developrnent and innovatlon, where the*r area of interest furthers the objectives of the charity; Ensuring a sèlection of free and discounted provision of services are offered within membership sefvice5, event placements and access to Technical Standards.. Auditing and authorisation of approved gas industry trainin8 providers,. and Extendin8 our reach by developing support for new sectors and in developin8 Telationships with Indla. Australia and Sweden. Our public benefit acttvities focus on the safe passage of gas through the supply chains through to safe use by the public and by indvstrial customers, as well a5 the planning for their future energy needs as part of an affordable, just and secure transition. These activitie5 include competence assessment. provision of opportunities for the continued demonstration of competence through personal professional development for our rnernbers. and those in the wider gas industry. In addition, we support, showcase and finance research, such as Carbon Monoxide and net zero policy research.
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS YEAR ENDED 31 DECEMBER 2023 TRUSTEES. REPORT Structure, Governance and Management The Institution of Gas Engineers and Managers is a registered charity established in 1863, incorporated by Royal Charter in 1929 and governed by By-laws. which were last amended in July 2[1. IGEM has a Governance Manual, comprehensively updated during 2019 incorporating Charter. By-laws, requirements of Trustee5, organisational structure. key terms of reference of Boards and Committees as well a5 Membership Policy and Procedures. finance Policy and Procedures, and IGEM'S Quality Policies and Procedures and requirements of Charity Law. In addition, IGEM has a Conflicts of Interest Policv. The main decision making body of IGEM is Council, which governs IGEM and owns the strate8y that IGEM will adopt and implement. It consists of 27 Trustees together with oiher. non-vgtin& members. These are.. Presldent. President Elert. Vice President Imrnediate Past President Hofiorary Secretary 12 Ordinary Members, 11 Section Chairs lor nominated representativel. Chief Executive Officer Co-opted advisors to Council Indicates a Trustee member of Councll Council can invlte the election or appointment of any member of IGEM onto Council if it feels that they can bring value, knowledge and expertise. Some Trustees change at IGEM'S Annual General Meeting each year. Ordinary Members serve for three year5 and Section Chairs serve for at least one year. Council is supported by an Executlve Board that acts as a steering cornmittee to Council to assist with Tnjstee deliberations at Councll. The Executwe Board consists of.. President" President Elect Vice President Immediate Past President Honorary Secretary A representative each from gas networks, the YPN and Company Members ' Co-options lup to two). Chief Executive Officer Trustee member of Council Trustee or non-Trustee of Council IGEM comprf5es the followlng entltles: Institution of Gas Engineers and Managers Charity No. 214011 Hlstory Fund Charity No. 287678 Instltution of Gas Englneeis IS¢ottish Sectbonl Benevolent and Education Funds Charity No. SC006601 IGEM House Ltd Company No. 03093169 Institution of Gas En8ineeis and Managers Scholarships. Medals. Prizes and Lectureships Fund Charity No. 214011-11
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS YEAR ENDED 31 DECEMBER 2023 TRUSTEES, REPORT IGEM has a subsidiary trading company. IGEM House Ltd trading as Meetpoinl Midlands. This cornpany undertake5 cornmercial trading activities. and the results are consolidated in these finantial statements. This company commenced tradin8 during 2011 and rents conference and meeting facilities to third parties. The Institution has a Benevolent Fund, the Incorporated Benevolent Fund of the Institution of Gas Engineers and Managers, which report5 Separately to its members. IGEM operates a number of 8oards, Comrnittees, Sub-committees and Panels through whlch It undertakes its educational, technical and administrative functions. IGEM benefits from the input of many volunteer5, who govern the Institution. run the Sections, contribute to committees. panels. mentoring and interviewin8. Over 2023, there were 608 volunteers actively involved in IGEM who collectively provided volunteer sefvice5 totallin8 11,524 hours, eqtlivalent to seven full time staff. All Trustees give their timè frèely and no Trustee remuneration was paid in the year. Details of Trustee expenses and related party transactions are disc105ed in note 7 to the accounts. Trustees are required io dlsclose all relevant interests and register them with the Chief Executive and withdraw from decisions where a conflict of interest arises. All incoming Trustees are provided with training to fully explain their roles and responsibilitie5 and an induction package. This includes a copy of 'How to be an effective Trustee" published by the Charity Commi55ion, tO8ether with the By-laws, Governance Manual and Business Plan for the Institution. The general membership is organised into eight regional Sections throughout the UK and one overseas Section.. Far East District Section.. Irish Section- London, Southern & Eastern Section; Midlands Section,. North East & Yorkshire Section- North West Section,. Scottish Se¢tion,' South West Section; and Welsh Section. Throughout the year, the Sections organise a varied prograrnme of events encompassing Informative, te¢hni¢al presentations from high profile speakers from within and outside the gas industry as well as social networkin8 opportunities. These events also provide a valuable element to the ongoing development of our rnembers and evidence of attendance can be used withln our Continuing Professional Development framework. In addition, IGEM has two fvrther Sectlons, each establlshed to meet the more specific needs of the individual membership group.. Cornpany Member Section, which represents organisations that are members of IGEM. These members include netwoik asset owner operators, gas supply businesses, companies engaged wlthin the supply ¢haln, consultancies and educational establishments. Young Persons Network. A key rtsle of the Section is ¢9 give a voice to our younger, often more junior, members and to encourage them to play an active part within the Institution. As well as being assi8ned to a geographically deflned Section, all of our members under the age of 35 are included within the auspices of the YPN. Political Donations and Empenditu No contributions have been made to any political party in this financial year.
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS YEAR ENDED 31 DECEMBER 2023 TRUSTEES. REPORT Achlevement and Performance IGEM maintains ISO 9001..2015 quality accreditation. IGEM is licenced by the Engineerlng Council to assess applicants for inclusion on the national register of professional engineers and technicians. to reeognise acadernic programmes and professional development schemes and to monitor the Continuing Professional Development of re8lStrants. 162 gas industry professionals achleved professional registration and the titles En8Tech, IEng and CEng. Thls was supported by 118 members who volunteered their time and expeflise as mentor5, interviewers. and committee/panel members to support the membership processes and procedures. Indiv5dual Members Openl Wew L•psed•r Closlni Honorary io Companion 21 19 Fellow 220 15 208 Chartered Member 1.064 13 49 1,034 Incorporated Member 354 25 330 En8ineering Technician Member 714 iio 59 774 Member Manager 117 io 17 112 Graduate loo 30 121 151 73 Associate 510 229 iii 623 Gas Tethnician ioi 96 19 179 Licensed Gas Technician 22 17 Students 117 102 218 Total 3.346 569 335 17 3.597
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS YEAR ENDED 31 DECEMBER 2023 TRUSTEES, REPORT iaps¢d Company Members ¢)penkni Mowm• rt51ined Sma1111-5 employees) Small - Medium16-15 employees) Medium116-99 employees) Medium - Large1100499 employees) Lar8e1S(X)+ employees) Housing Partner Total 105 18 114 77 76 98 16 108 71 75 24 27 Is 20 390 57 27 420 In 2023, we continued our focus to support the technician community and improve the En8Tèch value proposition. IGEM'S EngTech working group continued to drive this initiative forward which resulted in an overall 8.4% increase in EngTech membership and rètention increased to 93%. In addition. we held a number of professional registration webinars open to all those interested in becoming a member or transferring grades as well as inhouse webinars with the support of our Company Members. The online l..1 booking System has also been popular foi those wanting to disCUS5 their individual pathway to membership and professional registration. OUT annual CPD sampling progressed in 2023 as we saw a record number of subrni5sions frorn our professionally registered mernber5. Supportive discussions were had and individual feedback was provided to those who submitted a CPD record. to support with their professional development journey. Two members had to be removed from the professional register due to non-compliance. We had another successful year with our Scholarships, 8rants and awards scheme. Thè scheme continues to support the engineers of the future. and with such a hi8h standard of applications, one undergraduate scholarship, one postgraduate scholarship and two Engineering Technician grants were awarded. IGEM develop5 and produces Technical Standards with Telated activities including research. record management, training and liaisin8 Wlth industry and external stakeholdèrs. Selected standard5 are made available for a reduced rate through ihe Gas Safe Re8lSter. This supports operatives working in the downstream sector to enable more industry representative5 to have affordable access to siandards. Working with the technical ¢omrnittee5, expert panels and working groups, rnember5 and volunteers were involved in 123 meetings, re5ultin8 in the department producing 267 technical papers and publishing 16 standards throughout the year, these were.. Hydro8en IGEMnD/13 Edition 2 Supplement 2 Pressure regulating installations for Natural Gas/Hydrogen blended mixtures at pressures not exceeding 7 bar IGEMnD/21 New steel and PE pipelines t7nLI instollotionsfor hydrogen IGEMnD/22 Reference Stondordfvr repurposing Natural Gas distribution moins ond servicesforHydrogen IGEM/IG/I Edition 2 Supplement 5- Interim Hydrogen troinino specification. IGEM/H/i with amendments June 2022 and July 2023 Reference Standard for low pressure hydrogen utilisation TD Serie5 IGEMnDI13 Edition 3 Pressure regulatin8 installations exceeding 7 bar 10
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS YEAR ENDED 31 DECEMBER 2023 TRUSTEES, REPORT G SerSe5 IGEM/G15 Edition 3 wilh amendments Aprll 2023 Gas in multi-occupancy buildings IGEM/G/12 Universolly tsdopted symbo15 IGEM/G/13 Arnendments Domestic supply copacity ondoperating pressure ot the outlet of the meter. GM Series IGEM/GM15 Editlon 4 Electronic gas meter volume conversion systems IGEMIGM/pRS/Ii Pur¢hosAng specificotion fordiaphrogm meter5. UP Serles IGEMlup/12 Edition 3 Appli¢t7tion of burners and controls to gosfAred proce55 plant IGEMlup/16 Amèndments November 2023 Designfor Noturol Gos instollotion5 on industrit71ond commercial premises with respect to DSEAR IG Series IGEM/IG/I Ed 2 Supplement 3 Meterin9tssP Noturol Gt75 training specilicotion IGEMIIG13 G(Jid(Jn¢efor the safe recovery of roud tonkers IGEM/IG/4 Bulk tronsport of LNG by road. Throu8hout the year our Hydrogen Comrnittee, chaired by Keith Owen of Northern Gas Networks INGNI, continued to grow in strength and provided the governance and leadership in the production of new hydro8ell standards. The committee is helping to support the UK Governmenvs commltment to achieve net zero carbon emisslons by 2050 and our strate8ic plan of working with key stakeholders on a range of research and demon5tTation project5 investigating the role of hydro8en within the national transmission and distribution system. In particular for these projects to achieve their full scope of work, it is recognised that the research and engineering standards will have a critical role. Early in the year we undertook a funded review for the technical requirements for the construction of a new hydrogen pipeline and assoclated pipework a5 part of CELSA Steel's study to assess the viability of operating the reheat furnaces on hydrogen gas. Throughout the year IGEM worked with industry experts on the Departrnent for Energy Security and Net Zero IDESNZI funded Hydrogen Standard5 and Skills for Heatin8 programme for the implementation of a competence framework for the cornmunity trials for hydrogen. The IGEM working group, chaired by Dr Richard Marrow, 5ucce55fully delivered the two new standards to support the training for engineers workin8 on the trials which was based on the results of ihe research on the effects of hydrogen on materials, pipe sizin& meterin& pur8in& tightness testin& ventilation and fluin8. Towards the end of the year we began work on the OFGEM funded project led by SGN and partnerin8 Wlth the gas networks. National Gas and DNV on the Velocity Design with Hydrogen Project. This project will demonstrate safe velocity limits for hydrogen, and hydro8en blends, with focL¢S on erosion. vibration, noise, and particle transportation. The digltal repository, dedicated to the advancement of hydrogen learning globally and supportlng the transition to a net zero carbon emlssions future, continues to go from strength to strength. At its core, the Hydrogen Knowledgè Centre enables learnin8 to be shared with other5, through a carefully curated. comprehenslve and growing database of information from the widest possible range of sources. The repository. managed by a dedicated team at IGEM, has grown to Include over 4,500 re50urce5. By the end of 2023 the platform had been accessed on average 3.800 tlmes per month wlth around 160 downloads per month. IGEM'S pollcy role has gone from strength to strength in 2023. seeing unprecedented levels of direct engagement with kev poIF¢y makers and influencers. We continued lo amplify the voice of our members through re5ponse5 to several governrnent consultations. includin8 the Improving Boiler Standards and Efficiency, Clean Heat Market Mechanism.
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS YEAR ENDED 31 DECEMBER 2023 TRUSTEE5' REPORT Strategy & Pollcy Statement for Energy Policy in Great Britain. the Heat Strate8y for Wales. Net Zero Sector Skills in Wales and Hydrogen Blending into GB Gas Oistribution Networks. We have a150 taken great Interest In the work of the government Select Committees presiding over energy security and net zero policy. responding to two Committee inquiries this year including, Heatin8 our Homes and Keeping the Power On. We have been reartive to important policy news. providing our responses to various announcements and publications such as, the government's Net Zero Review, Powering Up Britain package, Hydrogen Updates to Markei and reports by the Climate Change Committee. These responses. and more, have been published on IGEM'S Policy, Practice and Research web pa8e, providin8 a trusted source of information and insights for our members and stakeholders. Through this work we are supporting our industry In making the case for low carbon gases In our energy system and providing the evidence base on which policy rnakers can base their decisions- a recent example being the government's positive decision on blending hydrogen up to 20% into the existing gas network. We have played a key role participating in the work of several influential groups and or8anisations including, the All-Party Parliamentary Group for Energy Studies, the All-Party Parliamentary Group for Carbon Monoxide, the NEPC Net Zero Working Group. Gas Goes Green Review Group and Insights Forum. Hello Hydrogen Strategic Review Group, Energy Research Partnershlp, Palace Yard and Beyond 2050. These groups see us working directly atross industry, academia and government,. contributing to research, sharing our knowled8e and developing fact-based policy recornmendations on the future of the gas grid and how sustainable gases can support the UK'S decarbonisation efforts. IGEM'S events went from strength to strength through the year with record attendance to conference, and keynote speaking events, with the year kickin8 off with the Ga5 Utilisation Conference. the only dedicated downstream engineerin8 conference receiving record booklngs, and the year concluding with the largest Annual Conference in recent history. In between we had the excÈllÈnt Sir Denis Rooke Memorial Lecture from Louise Kingham, BP'S Senior Vice- President, Europe. and Head of Country, UK with an engaging lecture on the 'The role of natural 8as on the road to net zero- shortly followed by the Policy Conference which had over 30% increase in attendance on the prlor year. who heard from a wide range of speakers focusing on thewhole energy system planning, domestic heatingand flexible power generation with a keynote session including the Oepartment for Ener8y Security and Net Zero and Ofgem which set Ihe scene for hydrogen across policy and regulation. Throughout the year we supported the IGEM Sections wide ran8e of events which accounted for over 50% of the events in the year. providing valuable CPD opportunities for our members. CPD isn't just reserved for IGEM members. and wlth almost 40% of the events dedicated to training on the teehnical standards we continue to provide essential learnin8 opportunitles for IGEM members and non-members to ensufe the industry continues to provide a safe and secure gas network from beach to meter. Ou15ide of the annual calendar IGEM also had presence at various exhlbltlons such as the Installer Show. CCUS & Hydrogen Decarbonisation Sumrnit, Political Party Conferences and held a visit to the historic Granton gasholder to re- enact a lunch first held in 1901 on the demolition of the gasholder, whith is now part of the wider regeneration of the rea wiih the iconic structure being restored and reptsfposed. Investments IGEM'S Portfolio of Investments are managed by Rathbones Investment Management held within their Core Investment Fund for Charitiès. Perforrnance is measured against a pre-agreed comp051te benchmark of market indlces. The Investment objectives for both the Unrestricted Funds and the Restrlcted Funds are to be balanced and managed for total return. During the year the IGEM portfolio value5 have increased by a total of £87,65812022.. decreased by £524,352) being 2.6% of the opening value. This represents a significant increase from last year. In addition, dividends earned are £106,08312022.. £90,631). 12
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS YEAR ENDED 31 DECEMBER 2023 TRUSTEES, REPORT 2023 Financial Re¥lew Funds Summary General Reserve Development Property Maintenance Reserve S¢holar5hips & Medals Fund Gas Innovatlon Fund Hydrogen Standards Innovation Fund GIUSP 2023 2022 1.300.OLK) 1,102,616 136.948 527,949 517,401 7.411 9CQ,OC 1,412,650 150,CMX) 569,816 536,109 SO.209 7,0 166.537 7.154 1,216.619 5.016,094 Sections History Fund Property and A55et5 166,545 8,227 1,174,209 4,941,306 Reserves The Institution's reserves are held to meet liabilities, working capital, operations, research, education and future developments to benefit member5, Custorners and support the gas industry in a viable and sustainable manner. The Development Reserve is for future investment into the development of the Institution and to facilitate the Investment into the energy transforrnation that is facing the industry. In 2023. after the successful launch of the IGEM website and CRM 5y5tem, Council approved fundlng for the next phase of the Digital Evolution and En8agement Project (Project DEEPI for UP to £IO.000 to scope the need5 to build on the m(nimum viable product delivered for launch, and subsequently approved funding ftsr up to £59,000, with 10% ontingency, from the Development Reserve to develop the outputs of the scoping activity. DEEP Phase 2 is forecast to be complete in QI 2024. Council previously approved a £IQ0,0 budget in 2021 from the Development Reserve to a form a new hydrogen social cornmunity network (titled Sph2erel. which the Secretariat continue to progress towards a launch in 2024 aftèr a dedicated resource was recruited In September 2023. The General Reserve is the free reserve, held at a value of up to approximately 6 months expendlture. currently set at £1,300.000 which provides adequate resllience to maintain liquidity and mitigate risks. The Restricted Funds were repurposed to enable increased application of the funds in order to make proper use of them in line with their objectives. Total funds held by the charity 31 the end of the reporting period are £4,941.306. This 15 constituted of general. designated and restrlcted funds as delailed below. Restricted 1,081,716 Oesignated Fixed Assets 1.385,381 1,174,209 Free RÈ%erve5 1.300.000 4.941,306 The expecied timeframe of expenditure of the designated and restricted funds will be in Ilne wlth the e¥ternal environment of transition of energy over the decade to 2030. The amount of reserves frèely available to the charity, after allowing for restricted funds, committed empendituie. assets and designations arè therefore 8reater than 6 months of expenditurè and is in line with the reserve pollcy. Further details of the funds held are included in Notes 16 and 17 to these financial statements. 13
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS YEAR ENDED 31 DECEMBER 2023 TRUSTEES, REPORT Rlsk Management The Audit & Risk Committee is responsible for providing a robust risk management framework with effective controls that are integrated to the operational management of the Insritution. The committee oversees quality management and governance processes including health. safety and environment, quality assurance management system that complies with BS EN ISO 9001..2015 standard and also a comprehensive risk register to identify. monitor and improve controls embedded within the organisation. The risk register has undergone a full review and has been sirnplified into a new format that ha5 dashboard views for headline risks. Strategies for managin8 these risks include the maintenance of identifièd procèsgès that specifically mitigate the risk and a regularly reviewed action plan that is consldèred to provide further mitigatton. The Secretarlat are responsible for the identificatitsn of risks and the effectiveness of management action to mitigate adverse perforniance against the 8usiness Plan. The detailed planning and execution of objectives and actions. sUltIng from risk reviews, are rnana8ed at an operational level within the Secretariat and are overseen by the Executive Board. There is an integrated management system that links risks. strategies, objectives and action5, managed by the Chief Executive Officer. Lloyds Register Quality Assurance is our Accreditor and there were two Surveillan visits undertaken thls year. one on 2nd February Iwas postponed in December 20221 and 4th September. The outcome of Septemberfs audit was a continued Satisfactory Conforman to the Standard. As a part of the requirements of this Standard, internal audits have to be undertaken. There are 4 member auditors, sitting on Audit & Risk Committee and 2 Staff auditors. There were 11 audits planned and all have been completed except one planned for the end of January 2024. Provisiofi of Informatlon to the Audltor. So far a5 each of the Trustees are aware at the time the report is approved.. There is no relevant audit information of which the charitls auditors are unaware.. and The Trustees have taken all stèps that they ought to have taken to make themselves aware of any relevant audit information and to e5tabli5h that the auditors are aware of that information. This report was approved by the Counal on 13 March 2024 and signed on ¢ts behalf. Andrew Musgrave President 14
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS YEAR ENDED 31 DECEMBER 2023 STATEMENT OF TRUSTEES, RESPONSIBILITIES The Trustees are responsible for preparing the Trustees. Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards Iunited Kingdorn Generally Accepted Accounting Practitel. The law applicable to charities in England and Wale5 requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the ¢harilyfor that period. In preparing these financial statements, the Trustees are required to.. select Sultable accounting policies and apply them con51Stentlv.' observe the methods and principles tn the Charities SORP: makejudgments and estimates that are reasonable and prudent,. state whether applicable accounting standards havè been followed, subject to any departures di5c195ed and explained in the financial statements,. and prepare the accounts on a going concern basis unless it is inappropriate to presume that the charity will continue in busine5S. The Trustees are responsible for rnaintainin8 proper accounting record5, which disclose with reasonable accuracy at any time the financial position of the charity and to enable them to ertsure that the accounts comply wlth the Charities Act 2011. the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charlty and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 15
Hackeryoung UHY Hacker Young LLP 14 Park Row Noitsngham NGI 6GR Chartered Accountants INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE INSTITUTION OF GAS ENGINEERS AND MANAGERS Oplnlon We have audited the financial statement5 Df The Institution of Gas En8ineeTS and Managers (the "Parent Charity'l and its 5ubsidiarie5 (the -Group"I for the year ended 31 Decembef 2023 which comprise the crjnsolidated statement of financial activities. the consolidated and charity balance sheets, the consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standard5, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Iunlted Kingdom Generally Accepted Accounting Practi1. In our opinion the flnancial statements.. give a true and fail view of the state of the group and charit¢s affairs as at 31 December 2023 and of its Incomlng resources and application of resour5 for the year then ended- have been properly prepared in aeeordance with United Kingdom Generally Accepted Accounting Praai¢e,' and have been prepared in accordance with the requirements of the Charities Act 2011. 8a515 for oplnlon We conducted our audit in accordance with International Standards on Auditin8 IUKI IISAS IUKII and applicable law. Our responsibilities under those Standards are further described in theAuditoi's responsibilitie5 for the audit of the financial statements sèttion of our repoft. We are Independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financlal statement5 in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordance with these requirernent5. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opirtion. Concluslons relatlng to golng 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 statement Is appropriate. Based on the work we have perforffled, we have not identified any material uncertainties relatlnÈ to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a goin ¢oncern foi a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are described In the relevant sections of this report. Other information The other information comprises thè infomiation included in the annual report other than the flnanclal statements and our auditor's report thereon. The Trustees are responslble for the other information contained within the financial statements. Our opinion on the financial statements doe5 not cover the other inforrnation and, except to the exteni otherwlse explicitly stated in our report. we do not expres5 any form of assurance conclusion thereon. Our responsibility is to read the othei information and, in doing so. conslder whether the other information is rnateriallv inconsistent with the financlal statemen15 or our knowledge obtalned in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsisterscies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other Information. If, based on the work we have performed, we conclude that ihere is a material misstatement of thls other information,. we are requSred io report that fact. We have nothing to report in this regard. Matters on whlch we are requlred to report by excèptlon In the light of the knowledge and understandlng of the Charity and its environment obtained in the course of the audit, we have not identified material misstatement5 in the Trustees, report. We have nothing to report in fespect of the follgwing rnatters where the Charities Act 2011 requires us to report to you if, in our opinion.. 16
Hackeryoung UHY Hacker Young LLP 14 Park Row ttingham NGI 6GR Charteied Accountants INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE INSTITUTION OF GAS ENGINEERS AND MANAGERS adequate accounting records have not been kept, or returns adequate for our audlt have not been received from branches not visited by us, or ttrie financial staternents are not in agreement with the actountin8 record5 and returns,. or certain disclosures of Trustees, remuneration specified by law are not made,. or we have not received all the information and explanation5 we require for our audit. Responslbllltles of Trustees As explained more lully in the Trustees, responsibilities statement, 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 materlal rnisstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the eharity's ability to continue as goin8 concern. disc105in& as applicable, matters related to going concern and usin8 the going concern basis of accounting unless the Trustees either intend to Ilquidate ihe charity or to cease operations. or have no realistic alternative but to do 50. Audltof's responslbllities for thè audit of the financial statements Our objectives are to obtain reasonable assurance about whether the flnanclal statements as a whole are free from materlèl mlsstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance 15 a high level of assurance. but is not a guararbtee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement whèn it exist5. 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 economie decisions of users taken on the basls of these financial staternents. Irregularities, includin8 fraud, are instances of non-compliance with laws and regulaiions. 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, Inclyding fraud is detailed below". Based on our underslanding of the charitable company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulatlgns related to the acts by the charitable company. which were contrary to applicable laws and reÈulations including fraud, and we considered the extent to which non-cornpliance might have a material effect on the financial statements. We also considered those laws and regulations that have direct Impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentive5 and opportunities for fraudulent manipulation of the financial staternents lincludin8 the risk of override of controlsl. and determlned that the prlnclpal risks were related to inflated revenue and the charltable company's net income for the year. Audit procedures performed included.. revlew of the financial statement disc105ures to underlying supporting documentatlon., testing of sales invoices to ensure revenue is recognised correctly within the financial statement5,' review of correspondence with and reports to the regulators. Including corre5ponden¢e on the Charity Commi55ion,' Enquiries of management in so far as they related to the financial statements, and testing of journals and evaluating whether there was evidence of bia5 by the trustees that represented a risk of material misstatement due to fraud. There are inherent limltations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and traftsactlons reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud 15 higher than the risk of not detecting one resulting from error. as fraud may involve deliberate concealment by. for example, forgery or intentional misrepresentation5, or through collusion. 17
Hackeryoung UHY Hackei Young LLP 14 PaTk Row NOItsn9h NGI 6GR Chartered AccouniÉnt5 INDEPENDENT AUDITOR'S REPORTTOTHE TRUSTEES OF THE INSTITUTION OF GAS ENGINEERS AND MANAGERS A further description of our responsibilities for the audit of the financial statements is located on the Flnancial Reporting Council's website at.. http'.//www.frc.or8.uk/auditorsresponsibilities. This description forms part of our audltor's report. Use of our report This report is made solely to the charit(s members. as a body, in accordance with Chapter 3 of Part 8 of the Charities Act 2011 and regulatlons made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity's member5 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 assLtme responsibility to anyone other than the harity and the charitvs members as a body. for our audit work. for this report, or for the opinions we have formed. Chrls Mckaln Isenlor Statutory Audltorl For and on bèhalf of UHY Hacker Youn8 Chartered Accountants and Statutory Auditor 11 April 2024 18
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS CONSOLIDATED STATEMENT OF FINANCIALAcfiviTIES YEAR ENDED 31 DECEMBER 2023 Unrestrltted Desl8nated Funds Funds Restrlcted Funds TOTAL 2023 TOTAL 2022 Notes Incoming Resourcès Charitable Activitles Trading Actlvitles Investment Income 2.395.328 90,032 68.895 75,398 1,288 2.472,014 90,032 107.497 2,299,213 57,6SI 90.913 1,022 37,580 Total Incoming Resources 2.554.255 76,420 38,868 2,669,543 2.447.777 Resources Expended Raising Fund5'. nvestment Manager Fees Tradin8 Expenditure 4,816 24,083 28,899 2,633 7,449 24,083 31.532 7.849 18,845 26.694 2.633 Charitable Activities 2.418.750 204.983 176,724 2.800.457 2,754,612 Total Resources Expended 2,447,649 204.983 179,357 2.831,989 2.781,306 Net surpluslldeficltl before investments 106.606 1128,5631 140,489 162.4461 1333,5291 Net Bainlllos51 on Investments 56,917 18111 31,552 87,658 IS24.3521 Net surpluslldeficitl before transfers 163,523 1129,3741 1108.9371 174,7881 1857A811 Transfer between Funds 194.067 1194,0671 Net Movement Sn Funds 357.590 1323.4411 1108,9371 74.7881 18S7,8811 Total Funds Brought Forward Total Funds Carried Forward 17 2.116.619 2.474,209 1,708,822 1,385,381 1,190.653 1.081.716 5,016,094 4,941.306 5,873,975 5,016.094 17 The statement of financial activities includes gains and losses togniSed in the year. AJI incoming resources and resources expended derive from continuing activities. The notes on pages 23 to 39 forrn part of these accounts. 19
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS CONSOLIDATEO BALANCE SHEET AS AT 31 DECEMBER 2023 2023 2022 Fixed Asset5 Tangible Investments 1,174,209 3,849,601 5.023,810 1,216,619 3,7S2,180 4.968.799 io Current Assets Debtors Short Tèrm Investments Cash at bank and in Hand li 13 12 $04.165 6.610 356,136 866,911 331,388 56.863 419,547 807,798 Creditors: amounts falling due within one year 14 1949.415 1760.5031 Net Current ILiabllitiesllAssets 182.5041 47,295 Net Assets 4,941,306 5,016,094 FUNDS Unrestricted Restricted Deslgnated 17 17 17 2.474.209 I81.716 1,385.381 4,941.306 2.116.619 1,190,6S3 1,708,822 5,016.094 The financial statements were approved and authorised for issue by the Council and were signed on its behalf on 13 Morch 2024. Andrew Mu58rave President The notes on pages 23 to 39 form part of these accounts. 20
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS CHARITY BALANCE SHEET YEAR ENDED 31 DECEMBER 2023 2023 2022 Fixed Assets Tangible Investments 1,174,209 3,850,601 5.024,810 1.216.619 3.753.180 4.969.799 io Current Assets Debtors Short Term Investments Cash at bank and in Hand li 502,847 6,610 308,658 818,115 348,458 56,863 373,299 778,620 13 12 Credltors: amounts falllng due wlthln one year 14 1943,0471 1773,0631 Net Current IllabllltlesllAssets 1124,9321 5,557 Net A55etS 4,899,878 4,975,356 FUNDS Unrestritted Restricted Designated 2.474,209 1.052.761 1,372.908 4,899,878 2.1.406 1.163.135 1,711,815 4.975,356 The financial statements were approved and authorised for issue by the Council and were signed on its behalf on 13 March 2024. Andrew Mus8rave President The notes on pages 23 to 39 form part of these accounts. 21
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS CONSOLIDATED STATEMENT OF CASH FLOW YEAR ENDED 31 DECEMBER 2023 Notes 2023 2022 Net cash outflow from operatin8 activities 20 1211,3981 1575,9271 Cash flo4vs from Investin8 Arti¥ities: Oividends & Interest received Purchase of property, plant and equipment Purchase of investments Procèeds from sale of investments Net cash in from inve5tin8 activitie5 107,497 90.913 11,5011 113,6711 6.460 82,201 116.5161 6.753 97,734 Decrease in cash and cash equivalents In the reportlng period 1113.664) 1493.7261 Cash and cash equlvalent at the beglnning of the reporting period Cash and cash equivalent at the end of the reporting period 476,410 362,746 970,136 476.410 Relatin8 to.. Cash at Bank and in hand Short Terrn Investments 356,136 6,610 362,746 419,547 56,863 476.410 The notes on pages 23 to 39 form part of these accounts 22
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POLICIES lal Basls of preparation and a55essment of 8olng concern The financial statements have been prepared under the hlstofical cost convention, as modified by the inclusion of fixed asset investments at market value. The financial statements have been prepared in accordance with the second edition of the Charlties Statement of Recommended Practice issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021 and the Charities Act 2011. The Institution constitute5 a public benefit entity as deflned by FRS 102. The Trustees Consider that there are no rnaterial uncertainties about the Institution's ablllty to continue as a going concern. There are no Significant areas of adjustment or key assumptions that affect item5 in the account5. Ibl Group financlal statèments These financlal statements Consolidate the results of the charity. its wholly-owned subsidiary, IGEM House Ltd; and the Scholarships, Medals, Prizes and Lectureship Fund. the History Fund and the Institution of Gas Engineer51Scott15h Section) Benevolent and Education Funds, which are separate charities, on a line by line basis. A separate Statement of Financial Activities ISOFAI for the Institution alone is not presented because the charity has taken advantage of the provlslons to not disclose. Icl Funds accounting Funds held by the charity are.. Unrestricted general funds- these funds can be used in accordance with the charitable objects at the discretion of the Trustees. Designated funds- these arefunds set aside bytheTrustees out of unrestricted general funds for speclficfvture purposes or projects. Restricted funds - these funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor. Idl Incoming resources All income is recogni5ed once the charity has entitlement to the income. It Is probable that the income will be received and the amount of income receivable can be measured reliablv. Voluntaly income is accounted for when rèteived. Incomin8 resources represents the amount receivable durlng the yèar In respect of subscripiions, fees and other income. DTvidend5 are recogni5ed once the dividend has been declared and notification ha5 been reIved of the dividend due. Thi5 is normally upon notification by our investment advisor of the dividend yield of the investment portfolio. Where income Is received in advance Of perforrnance, its recognition is deferred and included in creditois until the contract is performed. Membership subscriptions received in advance are deferred and included in creditors. 23
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIAL STATEMEI4TS YEAR ENDED 31 DECEMBER 2023 ACCOUNTING POUCIES Icontlnuedl lel Re50urce5 expended Expenditure is recognised once there is a leÈal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliablv. Expenditure is classified under the following activity headings.. costs of raisin8 funds include those costs incurred in the management of the charit5 investment portfolio. charitable activities include expenditure associated with the objects of the charity and include dlrect costs and support costs associated to these activities. Irrecoverable VAT 15 char8ed as a cost against the activity for which the expenditure was incurred. (fl Tanglble Flxed Assets and Depreclatlon Individual fixed assets costin8 £1,000 or more are capitalised at cost. Depreciation is not charged on freehold land. Depreclatlon on other tanglble fixed assets is provided to write off the cost of fixed assets to their residual value evenly over their estimated useful lives, which are as follows:_ Freehold property Fixtures & Fittings Computer equipment 50 years 7 years 3 years 181 Foreign currencies Monetary assets and Ilablllties denomlnated in forei8n currencies are translated into sterling at rates of exchangè ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate ruling on thè date of the transadion. Exchange gains and losses are recognised in the statement of flnanclal activilies. Ihl Investments Investmenis are a form of basic financial instrument and are initially recognlsed at thelr transattlon value and subsequently measured at their fair value as at the balance sheet date using the ¢losin8 quoted market price. The statement of financial activities includes the net gains and 1055es arising on revaluation and disposals throughout the year. The charlty does not acquire put options, derivatives or other complex finanoal instruments. The rnain form of financial risk faced by the charity is that of volatility in equity markets and investment market5 de to wider economic conditions. the attitude of investors to investrnent risk, and changes in sentiment concerning equities and within partlcular sectors or sub sectors. 111 Realis*d gains and10$5¢5 All 8ains and losses are taken to the Statement of Financial Actlvltles as they arise. Realised gains and10s5es on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent tts the first day of the financial year. Unrealised gains and losses 24
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIALSTATEMENTS YEAR ENDED 310ECEMBER 2023 ACCOUNTING POLICIES Icontinuedl 111 Reallsed ¥alns and losses are calculated as the differen between the fair value at the year*nd and their carrying value. Realised and unrealised investment gains and1055es are combined in the Statement of Financial Activities. Ul Herltage assets The Institution possesses a collection of regalia and memorabilia, and a collection of library books. These iterns are held for the furtherance of the Institution's oblects and are considered heritage assets. Where heritage assets are donated, the Trustees consider that in the absence of reliable cost information, the expense of determining a reliable valuation of these artefacts is onerous compared with the additional benefit derived by users of the accounts in assesslng the Trustees, stewardship of the assets. Heritage assets are gifted and are therefore excluded from the balance Sheet in accordance wlth paragraph 18.14 of the SORP. Where heritage assets are purchased, the purchase costs are capitalised in the balance sheet. Ikl Cash and c35h eqyivalents Cash and cash equivalents include cash at bank and cash in hand as well as short-terrn hi8hly liquid investments with a short maturity Irecognised within short-term investmentsl. 111 Penslons The InstStution makes payments to defined contrlbutiofi pension schemes on behalf of qualifyin8 employee5. Such contributions are charged in the Statement of Financial Activities when made. The contributions are invested separately from the Institution's assets. Im) Operatlng leases Operating lease rentals are charged on a straight-line basts over the lease term. {nl Corporatlon tam The charity is exempt from tax on incorne and gains falling within section 505 of the Taxes Act 1988 or sectlon 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. lol Go¥ernment 8rants Government grants are recognised at the fairvalue of the a55et received or receivablewhen there is reasonable assurance that the grant condltions will be met and the grants will be cecelved. A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a 8rant does not specify performance conditions it is reco8nised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. Ipl Judgements In applylng accountin8 policles and key sources of estimation uncertainty In preparing these financial statements, the Trustees consider that there are no material judgements or estlmates. 25
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 CHARITABLE AcfiviTIES Activities in the furtherance of the charlty's oblecrives. Total 2023 Total 2022 Unrestrlcted DesSgnaied Restrlcted Membership Technical Conferences & Events Journal 893.899 1.130.034 289.836 81,559 893,899 1,130,034 289,836 81,559 841,295 935.193 328,738 114,471 Sections (Excl Scottish Section) Scottish Section History Fund 72,591 2,807 72,591 2.807 1.288 2.472.014 74,689 2,425 2,402 2.299.213 1,288 1,288 2.395.328 75,398 In 2022, of total income from charitable activltles, £2.215.508 was to unrestricted funds, E77,114 was to designated funds and £6.591 was to restrlcted fvnds. INVESTMENrs Total 2023 Total 2022 Investment In¢ome Unrestrlcted Designated R*stritt¢d Bank Interest Dividends and interest from investments 823 228 363 1,414 282 68.072 68.895 794 37,217 37,580 106.083 107A97 90,631 90.913 1,022 In 2022, of total incorne frorn investments, £58.490 was to unrestricted funds, £872 was to designated funds and £31,551 was to restricted funds. 26
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIALSTATEMENTS YEAR ENDEO 31 DECEMBER 2023 CHARITABLE EXPENDITURE Cost of activities in the furtherance of the objectives of ihe charitv Support and Governance Costs Staff Other Costs Total 2023 Total 2022 Costs Gènèral Funds.. Membership Technical Conferences, Events, Marketin8 & Media journal 236,303 285.276 67,648 321.022 164,883 208,439 468.834 814.737 442,903 685.083 274,117 45,653 33,461 158,298 1.033,108 261,851 158,533 76,566 44.806 930.426 53,461 15,044 13,389 589,429 515,288 219,230 237,467 123,416 86,745 203.104 175.533 455.216 2.418.750 2.143,019 Establlshment Deslgnated Funds.. Section Expenditure Development Property Maintenance 75,965 115,966 13,052 204,983 75,965 115,966 13,052 204,983 83,388 214,676 298,lJ64 Restrlcted Funds: Scholarships & Medals Gas Innovation Hydrogen Standards Innovatlon GIUSP History 76,021 50.690 42.798 7.000 215 76,021 50.690 42,798 7.000 215 69,549 17.547 216.448 7,500 2,485 313.529 176.724 176.724 1,033,108 1,312.133 455,216 2,800N57 2,754,612 27
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 SUPPORT AND GOVERNANCE COSTS Staff Costs Other Costs Total 2023 Total 2022 General & Su Central Support Legal and Professional Fees Council Meetings & Staff Expenses Bank & Credit Charges Sundry Postage & Telephone Printing & Stationery Computer Expenses Subscriptions and Other Costs Bad and Doubtful Debts Irrecoverable VAT ort Costs.. 234.327 234,327 3,263 4,838 30,593 18.943 27.718 4.385 75.255 5.889 210,308 935 2,963 24,789 548 3,263 4,838 30,593 18,943 27,718 4,385 75,25S 5,889 27,130 2,425 57,544 7.854 20,CKIO 20,618 17,486 17M6 Governance Costs.. Audit & Accountancy Fees Council and Trustee Expenses 13,785 18,734 13,785 18,734 13,500 2,258 234.327 220,889 455,216 3,872 The Institution Initially identifies the costs of its support functions. It then identifies those costs that relate to the Éovernance function. Havin8 identified its governance costs, the remaining support costs together with the governance costs are apportioned between the five key charitable activlties undertaken (see note 41 in the vear, based on the income generated for these charitable activities. NET OUTGOING RESOURCES This is stated after charging.. 2023 2022 Depreciation of Tangible Fixed Assets Operating Lease Rentals Audit fee 42,410 2.148 13,785 29,228 3,623 I3,5) 28
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 STAFF COSTS The average monthly number of employees during the year was.. 2023 No. 26 2022 No. Office and Management 23 2023 2022 staff Costs.. Oirect Salaries National Insurance Contributions Pension Contributions 954.751 960,860 88.414 122.833 1,165.998 93.599 113.723 1.168.182 The number of employees whose emoluments as defined for taxation purposes amounting to over £60.000 In the year was as follows.. 2023 2022 No. No. £60,000 to £70.000 £70,000 to £80,000 £IIO,000 to £120,000 É120.000 to £130,000 Pension contribution5 relating to those staff earning over £60,000 totalled E39.52412022". £51.7561. The Trustees and members of the Council received no remuneration during the year but travel expenses of £9.679 were pald to 4 coun¢il members12022'. £2,529 to 7 council members). The Institution considers 115 key management personnel to comprise the Chief Executive Officer and the senior management team. The total employment benefits intludinB employer pension contributions of the five12022.. five) key managemenl personnel were £485,24312022.. £439,6021. NET GAINS ON INVESTMENT ASSETS Unrestrlcted Restrictèd Deslgnated Funds Total Total Funds Funds 2023 2022 Gains on disposals Net unrealised (Ios51 Igains on revaluation to market value 502 144 646 869 56.415 56,917 31,408 31,552 18111 18111 87.012 87.658 1525.2211 IS24.3521 29
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTESTO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 TANG18LE FIXED ASSETS Group and Institutlon Tanglble Flxed Assets Land & Build5ngs Offlce Equlpment Total Cost At l January 2023 Transfer 1,537,667 1134,0541 IA03,613 261.988 134,054 396,042 1.799,655 At 31 December 2023 1,799.655 Depreclatlon At l January 2023 Charge for the Year Transfer At 31 December 2023 339,357 24.752 137,5351 326.574 243,679 17,658 37,535 29872 583,036 42,410 625,446 Net Book Amount At 31 December 2023 1,077,039 97,170 1.174.209 At 31 December 2022 1.198.310 18,309 1,216,619 Land and Buildings include land valued at £300.000 which is noi depreciated. Re8alla, memorabllla and Ilbrary collèction of books- Heritage a55ets The Instltutlon has in its possession items gifted to it that comprises of iegalia. memorabilia and a library collection of books, which have historical qualities and are held principally for their contribution to knowledge and therefore met the criteria for heritage assets. These assets have not been included on the b3lan¢e Sheet as the information on their cost or valuation Is not available. as these items were gifted to the Institution, and the information cannot be obtained at a cost commensurate with the benefit derived from obtaining this information. This is due to these itèms bein8 unique and therefore a market value cannot be obtained, as their value would dlffer dependent on the user. These regalia and memorabilia items are insUd at a cumulative value of E307,20012022.' E258,6891. While the collection of library books has an insurance value of £64,71712022'. £56,275). 30
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 310ECEMBER 2023 10 INVESTMENTS Group Quoted Investments Total Total Unrestricted & DeslBnated Restrlcted 2023 2022 Market Value at l January 2023 Additions Disposals Revaluation to market value 2.436.052 1,316,128 16,516 11,2381 31,4Q8 3,752.180 4.269.320 16.516 13,671 16.1071 15.5901 87,012 1525,2211 14,8691 55.604 Market Value at 31 December 2023 2.486,787 1.362.814 3,849,601 3,752.180 Historical C05t at 310ecember 2023 2,180,854 1,198.682 3.379,536 3,368,618 The Investments are split as follow5 Rathbones Core Investment Fund for Charities M&G Investrnents 2.472,536 14,251 2.486,787 1.362.814 3,835.350 3,737,117 14,251 15,063 3.849,601 3.752.180 1.362.814 Instltution Unrestrided & Dèsignated Total 2023 Total 2022 Restricted Quoted Investment5 IGEM House Ltd 2,486,787 1.362.814 3,849.601 3,752,180 1,000 3,753,180 2,487,787 1,362.814 3.850,601 Holdings in eK¢e55 of 5% of the total market value: Rathbones Core Investment Fund for Charities 99.6% IGEM House Ltd. a wholly owned Subsidiary of the Institution, was incorporaled to carry out the commeidal activities of the Institution. All investments are carried at their fair value. Investment in equities and fixed interest securities are all traded in quoted public markets. Holdings in common investment funds. unlt trusts and open-ended investment companies are at the bid price. The basis of fair value for quoted investments is equivalent to the market value. Using the bid prlce. Asset sales and purchases are recognised at the date of trade at cost (that is their transactlon value). The main risk to the Institution from financlal instruments lies in the combinatlon of uncertain investment market5 and volatility in yield. 31
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 10 INVESThIENTS Icontinuedl Liquidity risk is anticipated to be low as all assets are traded and the commltment to intervention by ntral b3nk5 and rnarket regulators has coniinued to provide for orderly trading In the markets and so their ability to buy and sell quoted equities and stock is anticipated to continue. The Institution's investments are mainly traded in markets with good liquidity and high trading volumes. The Institution has no material investrnent holdings in rnarkets subject to exchange controls or trading restrictions. The Institution does not make use of derivatives and similar complex financial instruments as it takes the view that investments are held for their longer-term yield total return and historic studies of quoted financial instruments have shown that volatility in any particular 5-year period will normally be corrected. 11 DEBTORS Debtors Group Institution 2023 2022 2023 2022 Due within one year Trade Debtors Amounts due from Group Undertakin85 Other Tax & Social Security Prepayments & Accrued Income 426,400 290,962 387,732 282,946 37,350 25,086 4,559 35,867 348,458 4,559 35,867 331,388 77,765 504.165 77,765 502.847 12 CASH AT BANK AND IN HAND Cash at Bank arKI In Hand Group Instltutlon 2023 2022 2023 2022 Unrestricted Designated Restricted 273.360 53.789 28.987 356,136 336,811 54,332 28,404 419.547 267.342 41.316 331.422 41.877 308,658 373.299 13 SHORT TERM INVESTMENTS Short term investments represent uninvested cash funds and are held in interest-bearing bank account5. Group and Institutlon Total 2023 Total 2022 Unrestrlrted Re5trlcted Income and Capital Account Money Market Account 512 510 863 6,000 6,610 56,LN)O 56,863 6,098 512 32
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 310ECEMBER 2023 14 CREDtroRS Creditors Group Institution 2023 2022 2023 2022 Due within one year Trade Creditors Other Tax and Social Security Other Creditors Accruals and Deferred income 198,919 68,105 15,135 667,256 949,415 79,751 42,423 11,745 626,584 760,503 198,300 64,003 15.136 665.608 943,047 91,751 38,575 11,745 630,992 773,063 15 DEFERRED INCOME Group and Instltutlon Movements in Deferred Income.. Balance at l January 2023 Released during the year Deferred during the year Balance at 31 Oecember 2023 496,089 1487,9871 530,743 538,845 2023 2022 Deferred Income is made up of.. Membership Income received in advance Event Income received in advante Technical Income received in advance Hydro8en Knowled8e Centre recelved in advance History Fund Income received in advance Journal Income received in advance 5ectlon Income re¢eived in advance 307,540 48,315 148.977 12,750 32 17.606 3,625 304.706 28.995 143.153 12,750 268 6,217 538,845 496.089 Membership income received in advance relates to subscriptions received in the current year that relate to the year to December 2024. Other intome received in advance relates to journal advertlsin8 income and Historv Fund income received in the curreni year that relate to the year to December 2024. 33
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 16 FUNDS Restrirted l. Scholarship. Medals. Prizes and Lectureship Fund This restricted fund ha5 variou5 scholarship, medals, prizes and lectureship fund that have been previouslv donated by individuals and organisations, and are consolldated into this fund. The objects of the fund are to further education and knowledge in gas engineering and management lin particular but not exclusivelv by the award of medals, scholarships. prizes, and lecture5hip51 and in the provision of other learning opportunities and events. 2. History Fund The purpose of this fund is to promote public education and research into the history of the gas industry and publish the useful results of such research. The Panel for the History of the Industry administer5 the fund and, amongst its other activities. it produces a quarterly newsletter, Historic Gas fimes. 3. Gas Innovation Fund (previously LNG Fund) The surplus from the Il, LNG International Conference and Exhibition held in 1995 has been donated to the Institution used for educational purposes and research into technlcal and commercial applications of gas such as Liquid Natural Gas, Hydrogen and Methane etc. 4. Scottlsh Section Education Fund Th*s fund exists to sponsor a travellin8 scholarship. awarded from time to time by the Scottish section. 5. Ga5 Industry Unsafe Procedures IGIUSPI Gainshare funding of £45,(X)O has been received in 2017 for IGEM to review and manage the Gas Indusiry Unsafe Situation Procedure5 over the next seven years. 6. Hydro8en Standards Innovation Fund This fund was created in 2020 to fund research activities to enable Hydrogen Standards to be wfittèn. IGEM has tontributed £IOO,000 from the Development Fund as a commitrnent to initiate the fund and furthèr funding has been received from indL¢Stry network partners. DesSgnated l. Devèloprnent Fund The Institution has set up a fund to promote the commercSal development of the Institution in line with its charitable objectives. to facilitate investment into fvture sustainability and the ener8V transformation that is facing the industry. The previously designated International Development Fund has now bèen incorporated into here. 2. Sections The Institution has affiliated Sections that have a uniform constitution agreed by thè Council and the sarne charity registration number as the Institution. Grants are sometimes allocated lo the Section5. Funds held by Sections are designated for the development of the Institution's activities in the regions. 3. Property maintenance reserve The Institution has set up a fund for refurbishment5 in order to maintain the value and use of the property. Unrestrlcted This is expendable at the discretion of the Trustees. It ensures that services are not interrupted in the event of a sudden loss of income or unexpected expenditure. It includes the operating activities of the Institution in addition to the operating results of IGEM House Ltd. Property and assets represent the net book value of fixed asset acquired and funded from the Charitws unrestricted funds.
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 310ECEM8ER 2023 17 MOVEMENT OF FUNDS Investment Movemènt Transfers Balance at 151 Jan 2023 Income Expendlture Balance at 31st Dec 2023 Unrestricted Funds Group and Institution General Reserve Property and Assets 900,000 2.554.255 1,216,619 2,116.619 2.554.255 12,405,239) 142,4101 12,447,649) 56,917 194.067 1.300.000 1.174.209 194,067 2.474.209 56,917 Restrlrted Funds In5tltutlon Scholarships & Medals Fund Gas Innovation Fund Hydrogen Standards InnovatSon Fund 569,816 536,109 19,346 17,871 177.3931 151,9511 16,180 15,372 527,949 517,401 50,209 7,000 142,7981 17,OLX)I 7,411 GIUSP Group lincludlng above) History Fund Scottish Section 7,154 20.365 1,288 363 121SI 8,227 20,728 1,081,716 1.190,653 38,868 1179,3571 31,552 Deslgnated Funds Instltutlon Development Property Maintenance Reserve Sections.. Northeast & Yorkshire Welsh Midlands North West Far East London. Southern & Eastern South West 1,412,650 150,CX)O 1115,9671 113,0521 1194,0671 1,102.616 136,948 11,420 18,736 26,990 12.066 41.877 13,819 13,739 112,5531 111.9151 12,8831 19,7011 122.1671 12,686 19,749 24,107 10,617 41,317 18111 8,252 21,607 5,659 5,243 4.170 6.758 833 4,785 2,110 16.5811 12.5981 3,863 4,755 4,170 5,413 6,667 Industrial Affiliate5 Young Persons Network Group (including above) Scottish 3,300 6,000 14,6451 11661 12.420 1.708.822 2,808 76,420 12,7551 1204.9831 12.473 1,385,381 18111 1194,0671 5,016.094 2.669.543 12,831,989) 87.658 4,941,306 35
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS 14OTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 17 MOVEMENT OF FUNDS Icontlnuedl PRIOR YEAR COMPARATIVE Ir*vestment Movement Transfers Balance at 1st Jan 2022 Income Expenditure Balance at 31st Dec 2022 Unrestrlcted Funds Group and Instltutlon General Reserve 900,000 2,331,649 1,244,347 2,144.347 2,331.649 12.139,2341 1340,7421 127.7281 12,166.9621 1340,7421 148,327 900.000 1,216.619 2,116.619 Property and Assets 148,327 RestTl¢ted Funds Institutlon Scholarships & Medals Fund Gas Innovation Fund Hydro8en Standards Innovation Fund 719,691 632.091 17.965 14,882 170,9971 118,8501 196,8431 186,7671 15,2471 569,816 536,109 258,612 14,500 2,798 1216.4481 17.5LKII 5,247 50,209 7.000 GIUSP Group lincludln8 abo¥el History Fund Scottish Section 7,237 20.270 1.652.401 2,402 95 12,4851 7,154 20,365 1.190,653 38,142 1316,280 1183.6101 Deslgnated Funds Instltution Development Property Maintenance Reserve Sections.. Noitheast & Yorkshire Welsh Midlands North West Far East London, Southern & Eastern South West 1,775,653 150,orxJ 1214.6761 1148,3271 1.412.650 Iso,oc 9.593 19.788 25.031 15.605 28.332 15,551 9,161 3,7CM) 12,195 23.866 113.7241 110,2131 11,7411 115,7341 110,3211 11,420 18,736 26,990 12,066 41,877 8,477 5,543 4,170 7,153 15,033 3,909 7,179 16,7271 17,4791 5,659 5,243 4,170 6,758 833 Indu5tri31 Affiliates Youn8 Persons Network Group lincludin8 abovel Scottlsh 13951 114,2001 12.849 2.077,227 2,425 77.986 2,854 1298,0641 12,420 1,708,822 1148.3271 5.873,975 2W7.777 12,781,306) 1524,3521 5,016.094
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIAL STATEMENT5 YEAR ENDED 31 DECEMBER 2023 18 ANALYSIS OF ASSETS BETWEEN FUNDS Unrestrlctedl Designated Funds Restrlrted Funds Total 2023 Fund Balances at 31 Oecember 2023 are represented bv.. Tangible fixed assets Investments 1.174.209 2.486.787 333,247 1134.6531 1,174,209 3.849,601 362,746 1445,2501 1.362.814 29.499 1310,5971 Cash Net current liabilities Total net assets 3,859,590 1.081,716 4,941,306 Unrestricted/ De518nated Funds Restricted Funds Total 2022 Fund balances at 310ecember 2022 are represented bv.. Tangible fixed assets Investments Cash Net current liabilities 1,216,619 2,436,052 447,599 1274,8291 1.216.619 3.752.180 476,410 1429,1151 1,316.128 28.811 1154.2861 Toial net assets 3,825,441 1,190.653 5.016.094 19 COMMITMENTS UNDER OPERATING LEASES As at 31 December 2023 the Group and Institution had commitments undei operating leases as follows.. Other 2023 2022 Group and Instltutlon Within one year Between two and five years 1,670 2,070 1,552 3,622 1.670 37
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 310ECEMBER 2023 20 RECONCILIATION OF NEf DEFICITTO NET CASH FLOW FROM OPERATING ACTIVITIES 2023 2022 Net deficit for the reportin8 period Adjustments for.. Depreciatlon charges Gain on disposal of Investment5 Fair value movement on investments Dividends. interest and rents from investments Ilncreasel in debtors Increase / Idecreasel In credllors 174.7881 1857,8811 41,410 16461 187,0121 1107.4971 1172,7771 188,912 29.228 18691 525,221 190,9141 153,3381 1127,3741 Cash used from Operatlons 1211,3981 1575,927 21 ANALYSIS OF DEBT l January 2023 31 Dernber 2023 Cash flows Short term investments Cash 56.863 419.547 150.2531 163,4111 6,610 356.136 Total net debt 476,410 1113,6641 362.746 22 RELATED PARTY TRANSAcfioNS The group and the institution has taken advantage of the exemption available under section IAC.35 of FRS 102, from disclosing transactions entered into between two or more wholly owned members of the group. 23 CONSOLIDATED ENTITIES The entities included in the consolidation are.. The History Fund- charlty number 287678- incorporated in England and Wales IGEM House Ltd IIOO% ownedl- company number 03093169- incorporated in England and Wales Institution of Ga5 En8ineers1Scottish Sectionl Benevolènt and Education Funds- charity number SC(X)6601 incorporated in Scotland The charity's financial statements Include those of the Institution of Gas Engineers and Managets Scholarships, Medals, Prizes and Lectureships Fund charity number 214011-11- registered in En8land and Wales. 38
THE INSTITUTION OF GAS ENGINEERS AND MANAGERS NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023 24 FINANCIAL INSTRUMENTS The Society'5 financial instruments may be analysed a5 follows: 2023 2022 Flnancial assets Flnancial a55ets measured at amortised cost 789,146 766,966 Flnanclal Ilabilities Financial liabilitie5 measured at amortised cost 881.310 718,080 Financial assets measured at amortised c05t comprise cash at bank. tradè debtor5 and 5hort-term investments. Financial liabilitles measured at amortised cost comprlse trade creditor5, Other credltors and ac¢ruals. 39