2022-12-31-accounts - The Institution Of Chemical Engineers

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Trustees' Report
Statement ofTrustees' responsibilities	20
Independent Auditor's Report to the Trustees ofthe Institution ofChemical Engineers	21
Consolidated statement offinancial activities for the year ended 31December 2022	24
Charity statement offinancial activities for the year ended 31December 2022	25
Balance sheets at 31December 2022	26
Consolidated cash flow statement for the year ended 31December 2022	27
Charity cash flow statement for the year ended 31December 2022	27
Notes forming part ofthe financial statements for the year ended 31December 2022

The highes	t	rated stra	te	gic	risks in	2022	which could impact the delivery ofthe strategy are listed below.
Risk							Control and Mitigation Measures
							Develop and deliver a cohesive and coherent approach to Volunteer
Insufficient		volunteers		to deliver our			Engageinent and Volunteer Management; identify all volunteering roles,
objects							put in place process for succession planning, advertise all volunteering
							opportunities and put in place a mechanism to recognise our volunteers.
							Run a full calendar ofmarketing communication activities to help existing
Membership		lacks diversity			and		members progress through a range ofmembership grades and to recruit
growth							new members. Increased focus on diversity through our volunteer
							engagement programme and the development ofa formalised ED&I
							positioning statement.
							Governance Panel established in 2020 to continuously review and update
Governance		structures		do not provide			governing documents and committee structure. Review ofScheme of
leadership	and decision			making			Delegation in 2023. Establish consistent model for project governance
							that conforms to best practice.
IChemE staff, members,				volunteers		do	Keep key Stakeholders informed and engaged with the rationale for the
not support		transformation					need for change and the agreed priorities.
							Run regular membership engagement survey, including benchmarking
IChemE outputs or benefits					are not		performance against other similar organisations. Review products and
valued by individuals organisations			and/or				services to remain relevant to the breadth and width ifmembers' career stages. Develop better understanding ofmember engagement within our
							new CRM system.

			Business Plan sets out a detailed prioritisation framework for all essential
Uncontrolled change impacts resourcing and business plan priorities			and secondary activities, and is split between Business as Usual and Change activity. New Change proposals are evaluated by the FIT(Future Institution Transformation) Governance Board and new Business as Usual
			activities are evaluated by the Senior Management Team.
Defined Benefit Pension Scheme			Latest triennial valuation carried out in 2021 snd revised Recovery Plan
becomes a burden	disproportionate	financial	agreed. Maintain regular dialogue with Pension Scheine Trustees. Demonstrate suength ofemployer covenant. Seek independent actuarial
			advice where necessary.
			Address any remaining weaknesses in existing processes aspart ofthe
Lose the ability to qualify		members	enhancements to the Application System in 2023. Close relationships and engagement with the Regulators to ensure ongoing
			compliance is fully understood.

				Unrestricted	Restricted	Total	Unrestricted	Restricted	Total
			Notes	Funds	Fuads	2022	Funds	Funds	2021
				f000	f000	f000	f000	f000	f000
INCOME
Donations &legacies							26	250	276
Charitable activities:
Qualifying Chemical Eogmeers				4,101		4)101	3,904		3,904
Operating aIcamed Society forChemical	Enginmrs			4/84	20	4/04	3,585	20	3,605
Excepsiooal eivemmeni funding							116		116
Other trading scliviliesi
Trading opemiions				193		193	190		190
Investments				64		64	65		65
TOTAL INCOME				8,642	20	8,662	7,886	270	8,156
EXPENDITURE ON
Raising funds:
Trading opersuons				(7()		(71)	(65)		(65)
investment manageioeai costs				(66)		(66)	(64)		(64)
Charitable sctivitiesi
Qualifying Chemical Engineers				(3,740)		(3,740)	(3,263)		(3,263)
Opmaiing a Learned Society for Chemical Engiaeeis				(4424)	(265)	(4,589)	(3,881)	(195)	(4,076)
TOTAL EXPENDITURE				(8,201)	(265)	(8,466)	(7873)	(195)	(7,468)
Net dosses) / gains on ievesanenss				(367)		(367)	576		576
NET INCOME / (EXPENDITURE)				74	(245)	(171)	1,189	75	1,264
Transfer between funds:			/5
Other recognised gains / Fosses):
Actuarial gains on defined benefit pension schemes				1,366		1466	1,191		1,191
Exchange gains / (losses) aiisiog from miianslatiou foreign branches S.subsidiaries		of		114		114	(110)		(110)
NET MOVEMENT IN FUNDS				1/54	(245)		2270	75	2,345
Fund balsnms bmugbi forward at 1 January				3,256	1,314	4,570	986	1,239	2,225
Fund balances carried forward at 31
December				4,810	1,069	5,879	3,256	1,314	4,570

Charity statement o	ffinan	cial	activities fo	r the year	ended	31Decemb	er 2022
		No/rr	Unrestricted Funds	Restricted Funds	Total 2022	Unrestricted Funds	Restricted Funds	Total 2021
			8000	0000	8000	1000	f000	f000
INCOME
Donations &legacies						26	250	276
Gig aid from subsidiary company			122		122	125		125
Charitable activities:
Qualifying Chemical Engineers			4,100		4,100	3,903		3,903
Operatiag a Learned Society for Chemical	Engineers		4,226	20	4,246	3,531	20	3,551
Exceptional governmeat fuoding						116		116
Investments		5	64		64	65		65
TOTAL INCOME			8/ 12	20	8,532	7,766	270	8,036
EXPENDITURE ON
Raising funds:
lnve atm eat management costs			(66)		(66)	(63)		(63)
Charitable activities:
Qualifying Chemical Engmeers			(3,671)		(3,671)	(3,243)		(3343)
Operating a Leamcd Society for Chemical	Engineers		(4,267)	(265)	(4,532)	(3,802)	(195)	(3,997)
TOTAL EXPENDITURE			(8,004)	(265)	(8,269)	(7,108)	(195)	(7,303)
Net Oosses) / gains on investments			(36'/)		(367)	576		576
NET INCOME/(EXPENDITURE)			141	(245)	(104)	1,234	75	1,309
Transfer behveen funds:		/5
Other recognised gains / gosses)r
Actuarial gains on defined heneOt pension	schemes		1466			1,191		1,191
Exchange gains / gasses) arising from reiranslaoon of foreign bunches &subsidiaries			108		108	(103)		(103)
NET MOVEMENT IN FUNDS			1,615	(245)	1@70	2,322	75	2397
fund balances brought forward st 1January			3,091	1,314	4,405	769	1339	2,008
Fund balances carried forward at31
December			4,706	1,069	5,775	3,091	1314	4,405

			1Vote
				2022	2021	2022	2021
				f000	f000	8000	f000
Fixed assets
Tangible assets				647	721	647	721
Investments				6,319	6,678	6,319	6,678
				6,966	7,399	6,966	7,399
Current assets
Debtors			12	1,201	873	1,397	892
Cash at bank and in hand				3320	3,319	2&933	3,052
				4,521	4,192	4,330	3,944
Creditors: Amounts	falliag due within one year		13	(2,687)	(2,497)	(2,600)	(2,414)
Net current assets				1,834	1,695	1,730	1,530
				8,800	9,094	8,696	8,929
Pension scheme funding		deficit		(2,921)	(4,524)	(2&921)	(4,524)
Total net assets after pension deficit				5,879	4,570	5,775	4,405
Income Funds
Unrestricted funds
General funds				7,381	7,280	7&277	7,115
Designated funds			16	350	500	350	500
Pension reserve			21	(2,921)	(4,524)	(2,921)	(4,524)
				4,810	3,256	4,706	3,091
Restricted funds			15	1,069	1,314	1,069	1,314
Total funds				5,879	4,570	5,775	4,405

Consolidated cash flow s	t	ate	ment fo	r	the year ended 31December	2022
						2022	2021
					Note	8000	fOOO
Cash flows from operating activities					/9	(74)	563
Cash flows from investing activities:
Dividends and interest from investments					5	64	65
Purchase offixed asset investments Purchase ofproperty, plant &equipment					// /0	(64) (3)	(65)
Net cssb provided by / (used in) investing			activities			(3)
Change in cash and cash equivalents		in the repornng			period	(77)	563
Cash and cash equivalents at the start ofthe reporting					period	3/19	2,819
Change ln cash and cash equivalents		due	to exchange		rate movements	78	(63)
Cash and cash equivalests st the end		ofthe reportiag			period	3,320	3,319
Charity cash flow statement			for the year ended 31December 2022
						2022	2021
					Note	8000	OOOO
Cash flows from operating activities					/9	(154)	545
Cash tlows from investing activities:
Dividends and interest from investments					5	64	65
Purchase offixed asset investments Purchase ofproperty, plant &equipment					I/ /0	(64) (3)	(65)
Net cash provided by /(used in) investing			activities			(3)
Change in cash and cash equivalents	in tbe reporting			period		(157)	545
Cash and cash equivalents st the start		oftbe reporting			period	3,052	2,521
Cbsage in cash and cash equivalents	due		to exchange	rate movements		38	(14)
Cash and cash equivalents at the end	ofthe reporting			period		2,933	3,052

Freehold	buildings	5%
Leasehold	buildings	20%
Office equipment		15%
Computer	software	33%

The sum	mary financial perfonnanc	e and positio	n ofthe sub	sidiaries is s	hown below:
		IChemE	IChemE in	IChemE in	IChemE	2022	2021
		Ltd	New	Singapore	Malaysia	Total	Total
			Zealand	Ltd	Sdn Bhd
		f000	f000	f000	f000	f000	f000
Income		193	20		38	251	284
Expenditure		(71)	(35)		(90)	(196)	(180)
Net income 1(expenditure)		122	(15)		(52)	55	104
Amount	gift aided to the Institution	(122)				(122)	(125)
Retained	in subsidiary		(15)		(52)	(67)	(21)
Balance	sheets
		IChemE	IChemE in	IChemE in	IChemE	2022	2021
		Ltd	New	Singapore	Malaysia	Total	Total
			Zealand	Ltd	Sdn Bhd
		f000	f000	f000	f000	f000	f000
Fixed assets
Current assets		319	154		88	561	403
Current liabilities		(319)	(25)		(II3)	(45'/)	(238)
Net current assets			129		(25)	104	165
Total net	assets		129		(25)	104	165

3 Income from donatious and legacies
Group and Charity	2022	2021
	f000	f000
Donations (restricted fund)		250
Legacies		26
		276

4 Analysis ofincome from charita	ble activitie	s	s
		Group		Charity
		2022	2021	2022	2021
		8000	f000	8000	6000
Quehfying Chemical Engineersr
Membership subscription and accreditation	fees	4,098	3,904	4,097	3,903
Operating eLearned Societyfor Chemical	Engineers:
Journals &publications		1369	1,585	1)369	1,585
Knowledge communities		364	365	353	362
Conferences, seminars gr, events		597	207	595	201
Provision oftraining		1,943	1,421	1,898	1,376
Other income		14	7	14	7
Subscriptions to technical centres (restricted	funds)	20	20	20	20
Exceptional government funding:
Coronavirus Job Retention Scheme (UK)			6		6
Government wage subsidy schemes (non-UK)			110		110
		8&405	7,625	8,346	7,570
During 2021,the Institution was eligible to	claim funding	in the year from government	support schemes	in response to Covid-19.
No Further income was received in 2022.
5 Investment income
Group and Charity				2022 5000	2021 f000
Interest receivable				3	15
Dividends receivable				61	50

Group				Direct	Support	2022	2021
				activity	costs	Total	Total
				costs
				5000	8000	8000	f,000
Qualifying	Chemical	Engineers		2,414	1,326	3,740	3,263
Optsating	aLearned	Society for Chemical	Engineem	3,291	1,298	4,589	4,076
				5,705	2,624	8,329	7,339

6714400	0)andf23	0000 was restricted (2021:5195000).
Charity			Direct	Support	2022	202]
			activity	costs	Total	Total
			costs
			0000	XOOO	8000	6000
Qualifying	Chemical	Engineers	2,376	1,295	3,671	3,243
Operating	aLearned	Society for Chemical Enginsxsv	3,252	1,280	4,532	3,997
			5,628	2,575	8,203	7,240

	Group		Charity
	2022	2021	2022	2021
	f000	8000	f000	f000
Depreciation	77	77	77	77
Operating leases:
Plant and machinery	10	9	10	9
Land and buildings	74	75	60	61
Exchange rate differences	(53)	51	26	(18)

(202lt 52,	394,000). These are analysed as:
		Group		Charity
		2022	2021	2022	2021
		8000	f000	f000	f000
Staffcosts		1,062	968	1,028 .	922
Finance		414	307	410	317
IT		476	522	474	534
Facilities &	HR	523	521	512	502
Management	&Governance	149	76	151	51
		2,624	2,394	2,575	2,326

					Group		Charity
					2022	2021	2022	2021
					f,000	f000	f000	f.000
Qualifying		Chemical	Engineers		1&326	1,184	1,295	1,143
Operating		aLearned	Society for Chemical Engineers		1&298	1,210	1,280	1,183
					2,624	2,394	2,575	2,326
Analysis		ofgovernance		costs:
					Group		Charity
					2022	2021	2022	2021
					f000	f000	f000	f000
External	audit				41	36	35	31
General meeting costs					9	5	7	5
Legal &professional			fees		27	22	26	13
Electoral	services				3	3	3	3
					80		71	52

8 Analysis of	trustee remuneratio	n and expenses
Group and Charity			2022 f000	2021 f000
Expenses paid to or	on behalf ofsix (202k nil) Trustees in nnpect		19
oftravel, subsistence,	and acconunodation	costs

					Group		Charity
					2022	2021	2022	2021
Qualifying	Chemical		Engineers		33	34	30	30
Operating a		Learned	Society for Chemical	Engineers	33	34	33	33
Management		and Adminisuation			20	19	18	18
					86	87	81	81

The aggregate payroll	costs ofthese persons were as fo	llows:
		Group		Charity
		2022	2021	2022	2021
		8000	f000	8000	f000
Wages and salaries		3,408	3,293	3,350	3,234
Social security costs		327	285	326	284
Pension scheme contributions		300	282	295	276
Defined benefit pension	scheme operating costs	81	79	81	79
Employee benefits		64	49	64	49
		4,180	3,988	4&116	3,922

Group		Charity
2022	2021	2022	2021

Group	Freehold	Short	Office	Computers	Total
	Property	leasehold	equipment
	f000	property f000	f000	f000	f000
Cost or valuatioa
At beginning ofyear	1,800	19	141	31	1,991
Additions				3	3
Disposals		(19)		(3)	(22)
At end ofyear	1,800		141	31	1,972
Depreciatioa
At beginning ofyear	1,079	19	141	31	1,270
Charge for the year	76			1	77
Disposals		(19)		(3)	(22)
At end ofyear	1,155		141	29	1325
Nct book value
At 31December 2022
At 31December 2021	721				721
Charity	Freehold	Short	Oflice	Computers	Total
	Property	leasehold	equipment
	f000	property f000	f000	f000	f000
Cost orvaluation
At beginning ofyear	1,800	19	141	31	1,991
Additions				3	3
Disposals		(19)		(3)	(22)
At end ofyear	1,800		141	31	1,972
Depreciation
At beginning ofyear	1,079	19	141	31	1,270
Charge for the year	76			1	77
Disposals		(19)		(3)	(22)
At end ofyear	1,155		141	29	1,325
Nel Dock value
At 31December 2022	645				647
At 31December 2021	721				721

11 Fixed asset investments
Group aud Charity	2022	2021
	8000	6000
Fair value at 1 January	6,678	6,090
Acquisitions at cost	2,935	1,832
Proceeds ofdisposals	(2,927)	(1,820)
Net (losses) Igains on revaluation	(367)	576
Fair value at31December	6,319	6,678
Historical costat31December	3,739	3,731

Group aud Charity	2022	2021
	f000	f000
Equities	2,639	4,048
Fixed Interest	1,828	1,336
Other	1,563	1,001
Cash	289	293

12 Debto	rs
		Group		Charity
		2022	2021	2022	2021
		8000	f000	8000	f000
Trade debtors		367	256	263	200
Amount due	trom subsidiaries			351	141
Other debtors		8	1	4	1
Prepaymeuts	and accrued income	826	616	779	550
		1,201	873	1497	892

13 C	reditors: amounts falling due within	one year
		Group		Charity
		2022 f000	2021 f000	2022 f000	2021 fOOO
Trade creditors		384	465	367	461
Amounts	due to subsidiaries			10	7
Other creditors		292	377	292	362
Taxation	and social security	199	120	185	108
Acciuals		412	230	392	210
Deferred	income	I&400	1,305	1,354	1,266
		2,687	2,497	2,600	2,414

Total f	uture commitments under non-cancellable	operating leases are as follows:
Group		2022		2021
		Land sad	Other	Land sad	Other
		buildings f000	f000	Buildings f000	fOOO
Amounts	falling due:
In less	than one year	38		71
In the second to filth years inclusive				34
Over five years
		38	8	105	17

Charity		2022		2021
		Land aad	Other	Land and	Other
		buildings f000	f000	Buildings f000	f000
Amounts	falling due:
In less	than one year	34		61
In the second to fifth years inclusive				34
Over five years
		34		95	17

16 Analysis ofmovements in unrestricted d	esignated funds
Group aad Charity	Future	Institution	Total
	Transformation	Programme
		5000	OOOO
At I January 2022		500	500
Expenditure		(500)	(500)
Transfer between funds		350	350
At31December 2022		350	350

		Net amount recharged the charity in the	/ (to)	outstandiag at year end in debtors / (creditors) for the charity	outstandiag at year end in debtors / (creditors) for the charity
		2022	2021	2022	2021
		6000	f000	5000	f000
IChemE	Ltd	192	25	299	107
IChemE	in Malaysia		(61)
IChemE	in New Zealand	(11)	(9)	(33)	(22)
IChemE	in Singapore Ltd		(13)
IChemE	Malaysia Sdn Bhd	15	28	43	28
		196	(30)	309	113

Fund balances at 31D	ecember 2022 are represente	d by:
Group		Unrestricted	Restricted	Total
		funds	Funds
		5000	6000	5000
Tangible fixed assets		647		647
Investments		6,319		6,319
Pension scheme funding Net current assets	deficit	(2,921) 765	],069	(2,921) 1,834
Total uct assets		4,810	1,069	5,879
Charity		Unrestricted	Restricted	Total
		funds	Funds
		6000	5000	5000
Tangible fixed assets		647		647
Investments		6,319		6,319
Pension scheme funding	deficit	(2,921)		(2,921)
Net current assets		661	1,069	1,730
Total net assets		4,706	1,069	5,775

19 Reconciliation ofnet move	ment	in fun	d	s to net cash flow from operating act	ivities
Group					2022	2021
					f000	f000
Net (expenditure) / income					(171)	1,264
Adjustments for:
Depreciation on tangible fixed assets					77	77
Losses / (gains) on investments					367	(576)
Dividends and interest fiom investments					(64)	(65)
Investment management fees					56	53
Difference between pension charge and cash		contribution			(237)	(204)
(Increase)/decrease in debtors					(328)	(207)
Increase/(decrease) in creditors					190	268
Exchange gains / (losses) arising from retranslation				offoreign branches &subsidiaries	114	(110)
Change in cash and cash equivalents	due to	exchange rate movements			(78)	63
Net cash (used ia) / provided by operating		activities			(74)	563
Charity					2022	2021
					f000	f.000
Net (expenditure) / income					(104)	1,309
Adjustments for:
Depreciation on tangible fixed assets					77	77
Losses / (gains) on investments					367	(576)
Dividends and interest from investments					(64)	(65)
Investment management fees					56	53
Difference between pension charge and cash		contribution			(23'7)	(204)
(Increase)/decrease in debtors					(505)	(153)
increase/(decrease) in creditors					186	193
Exchange gains / (losses) arising from retranslation			offoreign branches &subsidiaries		108	(103)
Change in cash and cash equivalents	due to	exchange		rate movements	(38)	14
Net cash (used in) / provided by operating		activities			(154)	545

The major categories of	The major categories of	'assessors asfollows:
Asset category			2022	2021
			5000	f000
Liability Driven Investment		(LDI)	3,470	3,784
Multi-asset	Funds		3,562	6,830
Cash			34	80
Total			7,066	10,694

Amounts recognised in the balance sh	eet:
		2022	2021
		f000	f000
Fair value ofassets		7,066	10,694
Present value offunded obligations		(9,987)	(15,218)
(Deficit) in scheme		(2,921)	(4,524)
Amounts recognised in the stutement	offinancial activities over theyear;
		2022	2021
		5000	f000
Interest on liabilities		270	203
Interest on assets		(191)	(131)
Total		79	72
Remeasurements over the year:
		2022	2021
		6000	f000
Loss / (gain) on assets in excess ofinterest		3,643	(141)
Experience losses / (gains) on liabilities		459	(264)
Losses / (gains) from changes to demographic	assumptions		53
(Gains) / losses from changes to financial assumptions		(5,468)	(839)
Total		(1,366)	(1,191)

The change in the value ofthe assets over theperiod toast
	2022	2021
	8000	f000
Fair value ofassets at beginning ofperiod	10,694	10,486
Interest on assets	191	131
Institution contributions	316	276
Benetits paid	(492)	(340)
Return on assets less interest	(3,643)	141
Value ofassets at end ofperiod	7,066	10,694
The change in the value ofthe defined benefit liabiliues over theperiod roast
	2022	2021
	0000	f000
Value ofliabilities at beginning ofthe period	15,218	16,405
Past service cost
Interest on liabilities	270	203
Benefits paid	(492)	(340)
Experience loss / (gain) on liabilities	459	(264)
Changes to demographic assumptions		53
Changes to financial assumptions	(5,468)	(839)
Value ofliabilities at end ofthe period	9,987	15,218
	2022	2021
	0000	f000
Actuarial gains / Bosses)	1,366	1,191