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2022-12-31-accounts

Charity Number: 222478

The Textile Institute

Report and financial statements For the year ended 31 December 2022

The Textile Institute

Reference and administrative information

for the year ended 31 December 2022

Charity number

Registered office and operational address

Trustees

Trustees who served during the year and up to the date of this report were as follows:

Prof Malgorzata Zimniewska CText FTI World President Elizabeth Fox CompTI Chairman Trevor Rowe CText FTI Honorary Treasurer Prof Jessie Power CText FTI Honorary Secretary Roger Gilmartin CText FTI Vice President Helen Rowe CompTI CText FTI Vice President Prof Rohana Kuruppu CText FTI Vice Chairman Katie Greenyer Immediate Past World President

Prof Subhash Anand MBE DSc CompTI CText FTI

Dr Phoebe Apeagyei CText ATI

Pitchamuthu Boobalan Dr Sailen Chaudhuri CText FTI

Dr Xiaogang Chen CText FTI*

Muhammad Ali Nusrat Chishti CText FTI

Dr Anne Creigh-Tyte CText FTI Dr Joe Cunning CompTI Abid Ganaie CText FTI Prof Kimti Gandhi CText FTI Prof Andrew Groves Prof Biman Gupta Dr Simon Harlock CText FTI Dr Memon Hafeezullah CText FTI Prof Richard Horrocks CText FTI Prof Dr Engr Ayub Nabi Khan CText FTI Prof Raechel Laing Hon FTI CText FTI Dr Calvin Lam CText FTI Prof Lee Lapthorne Bob Low CText ATI

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The Textile Institute

Trustees’ annual report

for the year ended 31 December 2022

Dr Robert Mather CText FTI Ian Morris CText FTI Prof Richard Murray CompTI CText FTI Abigail Petit CText FTI Prof Subbiyan Rajendran CText FTI Prof Elinor Renfrew Timir Roy CText FTI Lawrence Rubin CText ATI Dr Abu Sadat Muhammad Sayem CText FTI Dr Pammi Sinha CText FTI Prof David Tyler CText FTI ACFI Anastasia Vouyouka CText FTI Dr Barbara Waters CText FTI* Jane Wood CText FTI Dr Yoshihiro Yamashita

*Standing Committee and non-Standing Committee Chairmen, not Members of Council.

Key management Stephanie Dick, Chief Executive Officer personnel Rebecca Price, Executive Director Bankers National Westminster Bank PLC, 11 Spring Gardens, Manchester, M2 1FB UK Solicitors Mills & Reeve LLP, 8th Floor, 1 New York Street, Manchester, M1 4AD UK Auditors Slade & Cooper Limited, Beehive Mill, Jersey St, Manchester, M4 6JG

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The Textile Institute

Trustees’ annual report

for the year ended 31 December 2022

The trustees present their report and the audited financial statements for the year ended 2022.

Reference and administrative information set out on page 1 forms part of this report. The financial statements comply with current statutory requirements, the charity’s constitution, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

In planning the aims and activities of the charity, the Trustees have had due regard to the guidance on public benefit issued by the Charity Commission.

The Textile Institute is governed by the fifty members of the Council. These members consist of the Honorary Officers, and up to 24 nominated members of the Institute’s worldwide Sections and Committees, plus a further 24 members elected by a ballot of all voting members. Council meets regularly to set strategies, oversee the execution of these strategies and policies and to improve lines of communication between Council and the salaried staff. In association with the Executive Directors at the International Headquarters the day-to-day activities of the Institute are overseen by Council, led by the Chairman, and including the World President, Honorary Officers of Council and Chairs of Standing Committees who represent all aspects of the Institute’s activities, including membership and professional services.

The trustees review the aims, objectives and activities of the charity each year. This report looks at what the charity has achieved and the outcomes of its work in the reporting period. The trustees report the success of each key activity and the benefits the charity has brought to those groups of people that it is set up to help. The review also helps the trustees ensure the charity's aims, objectives and activities remained focused on its stated purposes.

The trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the trustees consider how planned activities will contribute to the aims and objectives that have been set.

Achievements and performance

The charity's main activities and who it tries to help are described below. All of its charitable activities focus on the advancement of knowledge and are undertaken to further The Textile Institute’s charitable purposes for the public benefit.

The Covid-19 global pandemic continues and inevitably this has had a continuing impact on the work of The Textile Institute, but the charity has continued to meet its objectives.

The Textile Institute’s main activities are intended for the advancement of the general interests of the textile industry and in the promotion of the profession and practice of textile technology – which includes the arts, sciences and technologies involved in the design and manufacture of all products made from textile materials. Once again, these activities were maintained in a variety of ways throughout 2022, as reported below.

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The Textile Institute

Trustees’ annual report

for the year ended 31 December 2022

Publications

The Institute has a Publications standing committee which works with several publishers: The Textile Institute Book Series (Elsevier) – chiefly for academics and researchers in textiles; The Textile Institute Professional Publications Series (CRC), aimed at young professionals. The Institute has a strong publications portfolio that significantly contributes to the overall income of The Textile Institute.

The Journal of The Textile Institute, Textile Progress and other journals carrying the TI brand continue to attract well respected, dedicated researchers in the field and are regularly referenced. There was a significant increase in the royalty income in 2022.

“ textiles ” magazine continues to be a valuable vehicle for disseminating information to a wide audience on a regular basis. Hard copies of the magazine provide informative articles on a variety of topic areas relating to the global textile supply chain, together with TI News which informs members about what activities are taking place at and organised by TIIHQ, around the world by its local Sections and Special Interest Groups as well as information about governance matters, and forthcoming diary dates. There is a digital version of the magazine which can be accessed on the members-only section of the TI website.

TT&D is the Institute’s well referenced ‘Textile Terms and Definitions’ collection. Originally published in hard copy and therefore having to be revised every year or two, it was subsequently moved online, which meant it could be updated whenever necessary and is a much-utilised member benefit.

Continued support was also received from the Lord Barnby Foundation, which ensures the running and upkeep of The TI Library.

Events and Activities

Textile Institute events have experienced a resurgence in 2022 with an increased interest in face-toface events. Plans were ready and in place to be able to move to face-to-face, as well as hybrid events and those which would continue to benefit from being held in a virtual format. Digital communications have enabled TIIHQ to be in direct and face-to-face contact with its members around the world as well as all members being able to participate in digital events for the benefit of all. Sections and Special Interest Groups have been crucial in holding virtual events for the general public as well as its own members. Working hard to pursue the Institute’s charitable purpose by advancing knowledge, networking, and offering information and training that benefit the public a TI YouTube channel was established to share knowledge and engage with the industry at all levels worldwide.

TIIHQ staff continue to network virtually with existing members and to attract new ones.

Exhibitions are a fertile recruiting ground for new members, many of whom are keen to meet staff in person to discuss TI activities before committing to membership, attaining professional qualifications as well as submitting papers to journals and other publishing matters. The Institute was delighted to return to TechTextil, Frankfurt in June 2022 with Corporate Members BTMA who were the hosts and sponsors of a British Pavilion.

TIIHQ staff are planning to attend ITMA Milan in June 2023 with the financial support of Corporate Member BTMA. ITMA showcases developments in textile manufacturing equipment, accessories and testing facilities and is held every four years.

The Introduction to Textiles short course in March and October 2022 was held in person due to the easing of restrictions which even saw delegates from overseas attending. The TI will offer short courses in both physical and virtual formats dependent on demand. The courses in both March and October were sold out illustrating the importance of these courses which are attended by both members and non-members alike. Work on a revised Introduction to Clothing course remains postponed, but it is slated for a future project by the events team to start at the end of 2023.

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The Textile Institute

Trustees’ annual report

for the year ended 31 December 2022

The Annual Parliamentary Lunch held each November and hosted by Past World President of The Textile Institute, Lord Simon Haskel CompTI CText ATI, at the House of Lords was held in November 2022. It was the first in person event of that size, it was very well attended and the first time that many members and colleagues had seen each other for 3 years.

An agreement with the University of Huddersfield was signed in 2022. The 92[nd] Textile Institute World Conference is planned for July 2023 and will be held at the University of Huddersfield. The conference theme is ‘Sustainability of the Textile and Fashion Supply Chain – Transitioning to Zero Carbon and Zero Waste’. The conference is focused on identifying the current scenario as well as emerging sustainable practices and solutions throughout the whole supply chain of textile and fashion products, starting from raw materials to manufacturing processes, distribution and retailing, use by consumers and up to the end-of-life phases. At the time of writing this report the host has received up to 150 submitted abstracts with a wish to attend the conference to present, a number of sponsors have been achieved and there has been global interest in the event with international media partners joining the Institute to support this event.

Tea with the TI webinars were launched in 2021 and have been very popular with members and the general public alike and topics chosen were those requested by the audience. The second Tea with the TI was held in 2022.

The Textile Institute continues to sponsor (in kind) and promote competitions and awards around the world for the benefit of students and graduates with a focus on the next generation who will enter industry. The Textile Institute continues to support the Manchester and the North-West Section Textiles & Life 3 Award, The Golden Shears Awards, Sri Lanka Section Awards, The Bradford Textile Society Design Competition and Fashanne. The TI is also a proud partner with Artsthread a global graduate website.

The TI revitalised the Special Interest Group (SIG) in Technical Textiles in 2021 due to the demand for information in industry as well as by request of members. The SIG has now held several webinars which included an industry roundtable event and a review of TechTextil, Frankfurt in 2022.

Professional Qualifications

Being a Chartered Professional Body, The Textile Institute is able to confer qualifications on its members through its Licentiate, Associate and Fellowship awards. Courses offered at Universities worldwide may be submitted for accreditation through the Professional Qualifications Committee (PQC). Accreditation allows students who successfully graduate from the course to apply directly for a professional qualification in a shorter period post-graduation and with a simplified application process. Being awarded a professional qualification enhances their personal profile and improves employment prospects.

Fellowship is the highest qualification offered. It requires an individual to clearly state what their ‘personal creative contribution’ has been to the textile industry. The Committee recognises that this is easier for some candidates to elucidate than others, but a pilot plan in 2018 for PQC members to coach industry colleagues, who undoubtedly had personally contributed to the industry but found it difficult to explain their work in terms of a ‘personal creative contribution’ has helped enormously. Throughout the pandemic, applications for Professional Qualifications have continued to be received.

The Approved Course process continues to gain momentum and interest. Designed to provide formal recognition for courses ineligible for professional accreditation (perhaps because of their academic level or brevity), it allows short course providers to say that their offering is ‘approved’ by the chartered professional body for textiles, clothing & footwear. Courses may be allocated credit which attendees can use towards professional qualifications, if so desired. It is hoped that as the world emerges from the

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The Textile Institute

Trustees’ annual report

for the year ended 31 December 2022

pandemic and economies start to recover, it is anticipated that the TI will receive more applications for PQs and more requests for course accreditation.

Membership

Whilst there was less in person interaction with members during the COVID pandemic this increased in 2022 and improved the virtual communication took place with both Individual and Corporate Members. At the start of 2020 the TI employed a Senior Membership Coordinator who has been dedicating her time to get to know the members, representatives of Section and Special Interest Groups, and this has provided a strong foundation for greater knowledge of the needs of members in general and of course the global textile industry. Membership of both Individual and Corporate Membership has remained steady in 2022. Membership recovery for both categories of members was carried out by the team at TIIHQ and this allowed for the TI to support its members during what had been a difficult period and to secure membership renewals and reinstatements.

Obstacles

The Textile Institute’s website was launched in 2021. The website has been refined to improve the functionality as well as tweaks to the design and to make it more user-friendly based on member feedback. Several of the initial teething problems have now been ironed out and a further project towards the end of 2023 to complete the works will in turn improve the efficiency as well as member income and generation.

Staff turnover has been far lower over the past year. There are only 5 members of staff and the Institute would benefit from extra resource, but we must work within budgetary constraints.

Senior staff have spent considerable effort ensuring that all staff have had the appropriate support whilst they work from home. TIIHQ is now benefitting from a hybrid working environment - the office is manned daily covering key working hours.

Beneficiaries of our services

The aim of The Textile Institute is to facilitate learning, to recognise achievement, to reward excellence and to disseminate information. Since 1910 The Textile Institute has been at the forefront of publishing high quality textile research. The comprehensive portfolio of publications is continually being expanded to fully represent the interests of the various textile related industries the Institute represents.

The TI’s Benevolent Committee is available to help members in their time of need, but it also supports students who are at the start of their professional career to attend conferences and support their studies.

The TI offers short courses and can develop and deliver bespoke workshops for industry under the banner of the Institute. The Introduction to Textiles short course established in 2010 is very much part of the TI portfolio and provides a steady income.

Conclusion

The Institute’s Standing Committees, Sections and Special Interest Groups are populated by member volunteers, supported by TI staff, helping to maintain the textile industry as one of the most diverse and successful of global industries. All of this would be harder to achieve without the drive and determination of its members who continue to work tirelessly for the Institute gifting their time for the benefit of others.

The future of our Institute is in the hands of the next generation and new members, who may not yet be aware of the existence of The Textile Institute. Promotion of the Institute and all it stands for -

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The Textile Institute

Trustees’ annual report

for the year ended 31 December 2022

professional qualifications, networking, dissemination of new knowledge - and the structure of appropriate events and activities desired by today’s textile professional will be the key to success.

In the meantime, existing staff and senior management are to be congratulated for the way they continue to keep the Institute running efficiently during difficult times, whilst maintaining a positive view of the future.

Financial review

The Textile Institute is in a financially stable position despite the continuing impact of the Covid-19 pandemic. The overall figures for the 2022 financial year show that a break-even situation occurred.

Publications was again one of the main income streams for the Institute with an increase in royalty payments. The increase in royalty is due to higher number of downloads and Textile Progress catching up with its publishing schedule as well as a slightly more favourable exchange rate working in our favour. Publications was still the largest income stream.

During the year Corporate Membership was a little above budget, after a big push on membership recovery. Individual Membership was also above target for the year.

The Professional Qualifications Department was well under budget in terms of new and ongoing accreditations. Applications for professional qualifications was also well under budget.

The Events Department portfolio suffered significantly due to the pandemic, but with no restrictions the Department has significantly increased its income. The Parliamentary Lunch has always been a highlight of the TI events calendar and for the first time in three years the lunch was able to go ahead and was extremely successful.

Another welcome source of income for the Events Department is the short course portfolio. Two Introduction to Textiles short courses were able to be delivered this year. Both courses were held as face-to-face programmes and were fully booked.

In addition to the standard short course portfolio an extremely successful bespoke short course was developed and after a successful pilot the client asked for the course to be delivered twice during the year with further courses expected to be delivered during the coming year.

Further income came from the World Conference (TIWC 2023) pump priming payment. The events department has had a very successful year and its income was well above budget. Planning is already in motion for subsequent TIWCs.

The Institute benefitted from an extremely generous legacy during 2022.

The Textile Institute website was launched in 2021. The new website has increased interest in TI activities and will result in an increase in membership and activities.

Once again it should be noted that the Institute did not require to borrow money from the Foundation Fund this year. The Foundation Fund was due to be revitalised in 2022 with specific aims for attracting and distributing funds but it was felt that this project would be revisited at a later date.

Whilst the TI remains in a stable position the impact of Covid-19 was still present in 2022, but this has been offset by a continued review of expenditure.

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The Textile Institute

Trustees’ annual report

for the year ended 31 December 2022

The Investment portfolio is regularly reviewed, and the funds are still managed by Investec Wealth and Investment Limited.

The TI overdraft facility of £30,000 is still in place supported by NatWest Bank. It has not been necessary to borrow from any external or internal funds during the year. This overdraft is guaranteed against the TI investments previously identified as managed by Investec Wealth and Investment Limited.

Reserves policy

The Institute has a reserve policy in place and it had been hoped to increase this on an ongoing basis with additional income but due to financial restrictions this has not been possible in this financial year.

The Textile Institute trustees feel that the Institute has sufficient reserves to pay its commitments for at least twelve months.

The commitments are reducing due to the contract for the office accommodation being reduced year on year. However with the contract for accommodation due for renewal in the next few years a more robust reserve policy will hopefully be implemented during the next financial year.

The primary purpose of this reserve fund is to protect the Institute’s charitable aims.

The trustees consider that there are adequate resources available from its current portfolio of activities - and their projected income - to fund the continued activities of The Textile Institute to meet the objectives of its Royal Charter and its responsibility as a registered UK charity.

The trustees are of the opinion that The Textile Institute is a going concern.

Plans for the future

The plans outlined below are still relevant as The Textile Institute is able to return to more “normal” service. In the meantime, in its best endeavours to maintain financial security, the Institute will continue to offer many of its services as normal, whilst relying on its staff who now engage in a hybrid working environment. For example -

As we continue to live in a period of great uncertainty globally, the main concern for the Trustees of the charity will be to protect income streams for the future in areas over which it has some control.

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The Textile Institute

Trustees’ annual report

for the year ended 31 December 2022

As an aide memoire – the Institute’s main aims are to advance the general interests of the textile, clothing and footwear industries and to promote the profession and practice of textile technology (covering the arts, sciences and technologies) related to the development, production and distribution of textile goods, for a vast array of end purposes.

Global Activities

The Institute appreciates the benefits of taking part in relevant global activities such as exhibitions; conferences; Section events and celebrations, which may result in:

The costs involved in allowing staff to travel must be weighed against the potential benefits gained. Lessons learned from past activities have highlighted the best exhibitions/functions to attend for maximum effect and every future offshore activity will continue to be measured in the same way.

Membership

The Textile Institute is, first and foremost, a membership organisation, and enhancing the Institute’s service to its members is one of its key objectives.

Membership fees themselves have not risen in line with UK inflation for some years. Throughout 2021 and 2022 serious discussions took place amongst the trustees to ensure that any increase should be made with due regard to the Institute’s needs, but also with a mind to retain as many members as possible. A modest increase was introduced at the beginning of 2021, but regular, appropriate increases must be scheduled thereafter. Members finding it hard to cover their fees because of hardship can always apply to the Benevolent Committee for assistance. It was agreed that a number of resolutions in regard to both Individual and Corporate Membership fee increases and those in subsequent years will be taken to the members at the Annual General Meeting in July 2023.

The Institute’s Corporate Members are a valuable asset, not only by providing membership income but also help and support for Individual Members and a collaborative approach to getting projects completed.

Other Income Streams

Income streams that will continue to be enhanced:

Following the strategic review of a number of the Institute current benefits to members, two new services were finalised and launched at the close of the year. The Affiliate Partner programme was introduced to promote organisations who have courses Accredited and / or Approved by The Textile

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The Textile Institute

Trustees’ annual report

for the year ended 31 December 2022

Institute. The courses can be delivered either face-to-face or digitally through the organisations’ dedicated learning space. The Affiliate Partner is responsible for registering delegates and issuing all required equipment, learning materials and support. Affiliate Partner courses are promoted via TI media including the website, emailing and social media to the TI’s entire network.

The second service is the Presenters Directory. Members are invited to join the Directory of Presenters of textiles professionals from both industry and academia who are interested in presenting at The Textile Institute, Section / Special Interest Group and partner events around the world. The Institute is particularly interested to hear from industry members who are happy to engage with students at both HE and FE institutions.

Summary

The Trustees of The Textile Institute continue to recognise that during this time of global financial uncertainty they must balance the risk of reducing membership income with an enhanced service and an eye on maintaining income from alternative sources.

The role of Council for the next reporting period will be again to look for new income streams without too much impact on already stretched human resources at HQ, and to encourage its members to continue volunteering their services.

Structure, governance and management

Nominations are invited to fill vacancies that will occur in the said year for members of The Textile Institute’s Council. In the event of the number of candidates exceeding the number of vacancies, there will be a postal ballot of all voting members. Those elected will take office from the date of the Annual General Meeting of the said year.

The Council is the Institute’s international governing body and is composed of nominees from the duly constituted Section, National & Regional Committees and an equal number of members elected by the membership at large. The constitution of Council and the conduct of elections to it are closely governed by the Institute’s Charter and Byelaws.

Elected members normally serve for a period of three years, after which time they may submit themselves for re-election. However, no member may serve for more than three consecutive terms without taking a break of at least one year. Council normally meets at least four times a year.

It is from amongst its members that Council normally selects future Chairmen, Vice-Chairmen, Honorary Secretaries, Honorary Treasurers, and members of certain committees. It is important to ensure that Council is fully representative, so that it guides the Institute’s development in a way that reflects the wishes of its membership.

It is impossible to be precise about the number of vacancies because it is not known which current Members will stand for re-election or be chosen to represent a particular geographical region.

The organisation is a charitable incorporated organisation, registered as a charity on 11 November 1963 in England and Wales.

The charity is constituted under a constitution of 1925. The trustees are members of the charity but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.

All trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 11 to the accounts.

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The Textile Institute

Trustees’ annual report

for the year ended 31 December 2022

Funds held as custodian trustee on behalf of others

The Textile Institute does not hold any funds as a custodial trust on behalf of any others.

Statement of responsibilities of the trustees

Law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the charity's financial activities during the period and of its financial position at the end of the period. In preparing financial statements giving a true and fair view, the trustees should follow best practice and:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

Auditors

Slade & Cooper Ltd were re-appointed as the charity's auditors during the year and have expressed their willingness to continue in that capacity.

The trustees’ annual report has been approved by the trustees on 03/07/2023 and signed on their behalf by

Name: Elizabeth Fox CompTI

Title: Chairman

Trevor Rowe CText FTI Honorary Treasurer

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Independent auditors’ report

to the members of

The Textile Institute

Opinion

We have audited the financial statements of The Textile Institute (the ‘charity’) for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the trustees’ annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the

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Independent Auditors’ Report (continued)

extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 11, the trustees are responsible for the preparation of financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 145 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect

[continued …]

13

Independent Auditors’ Report (continued)

of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-foraudit.aspx. This description forms part of our auditor’s report.

Slade & Cooper Limited Statutory Auditors Beehive Mill Jersey Street Manchester M4 6JG Date: //2023

Slade & Cooper Limited is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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The Textile Institute

Statement of Financial Activities

for the year ended 31 December 2022

Unrestricted
funds
Note
£
Income
Donations, grants and legacies
3
38,260
Income from charitable activities
4
291,630
Investment income
5
1,658
Total income
331,548
Expenditure
Costs of raising funds
6
-
Expenditure on charitable activities
7
311,009
Total expenditure
311,009
20,539
(11,115)
9
9,424
Transfer between funds
-
Net movement in funds for the year
9,424
Reconciliation of funds
Total funds brought forward
208,424
Total funds carried forward
217,848
Net income/
(expenditure) before net
gains/(losses) on investments
Realised/unrealised gains/(losses) on
investments
Net income/(expenditure) for the
year		 Restricted
funds
£
-
-
-
-
-
-
-
-
-
-
-
-
5,035
5,035		 Total funds
2022
£
38,260
291,630
1,658
331,548
-
311,009
311,009
20,539
(11,115)
9,424
-
9,424
213,459
222,883		 Total funds
2021
£
8,975
229,850
846
239,671
209
269,968
270,177
(30,506)
6,375
(24,131)
-
(24,131)
237,590
213,459

The statement of financial activities includes all gains and losses recognised in the year. All income and expenditure derive from continuing activities.

15

The Textile Institute

Balance Sheet

as at 31 December 2022

Note
£
Fixed assets
Tangible assets
12
Investments
14
Total fixed assets
Current assets
Stock
-
Debtors
15
116,697
Cash at bank and in hand
51,384
Total current assets
168,081
Liabilities
Creditors: amounts falling
due in less than one year
16
(60,950)
Net current assets
Total assets less current liabilities
Net assets
The funds of the charity:
Restricted income funds
18
Unrestricted income funds
19
Total charity funds
2022		 £
37,599
78,153
115,752
107,131
222,883
222,883
5,035
217,848
222,883		 £
£
52,710
89,268
141,978
1,688
106,524
30,503
138,715
(67,234)
71,481
213,459
213,459
5,035
208,424
213,459
2021		 £
£
52,710
89,268
141,978
1,688
106,524
30,503
138,715
(67,234)
71,481
213,459
213,459
5,035
208,424
213,459
2021
141,978
71,481
213,459
213,459
5,035
208,424
213,459

The notes on pages 17 to 33 form part of these accounts.

Approved by the trustees on 03/07/2023 and signed on their behalf by:

Elizabeth Fox CompTI

Trevor Rowe CText FTI

16

The Textile Institute

Notes to the accounts for the year ended 31 December 2022

1 Accounting policies

The principal accounting policies adopted, judgments and key sources of estimation uncertainty in the preparation of the financial statements are as follows:

a Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102) amended by Update Bulletin 1), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The accounts (financial statements) have been prepared to give a 'true and fair' view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'true and fair view'. This departure has involved following Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Textile Institute meets the definition of a public benefit entity under FRS102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note.

17

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

b Preparation of the accounts on a going concern basis

The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.

There are no key judgments which the trustees have made which have a significant effect on the accounts.

The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next reporting period.

c Income

Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the item(s) of income have been met, it is probable that the income will be received and the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.

Income received in advance of a provision of a specified service is deferred until the criteria for income recognition are met.

d Donated services and facilities

Donated professional services and donated facilities are recognised as income when the charity has control over the item, any conditions associated with the donated item have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102) Update Bulletin 1, the general volunteer time of supporters is not recognised and refer to the trustees’ annual report for more information about their contribution.

On receipt, donated professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

18

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

e Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the Bank.

f Fund accounting

Unrestricted funds are available to spend on activities that further any of the purposes of charity.

Designated funds are unrestricted funds of the charity which the trustees have decided at their discretion to set aside to use for a specific purpose.

Restricted funds are donations which the donor has specified are to be solely used for particular areas of the charity’s work or for specific projects being undertaken by the h it

g Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

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

h Operating leases

Operating leases are leases in which the title to the assets, and the risks and rewards of ownership, remain with the lessor. Rental charges are charged on a straight line basis over the term of the lease.

19

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

i Tangible fixed assets

Individual fixed assets costing £500 or more are capitalised at cost and are depreciated over their estimated useful economic lives on a straight line basis as follows:

Per annum
Computer software 33%
Computer hardware 33%
Fixtures & fittings 10%
Website development 33%

The silver collection and the collection of pictures and tapestries are included in the balance sheet at valuation. These assets are not subject to wear and tear meaning that their residual values will be high. In view of the nature of these assets, no depreciation is charged against them.

i Fixed asset investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The statement of financial activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The charity does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

j Stock

Stock is included at the lower of cost or net realisable value. In general, cost is determined on a first in, first out basis. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation. Provision is made where necessary for obsolete, slow moving and defective stocks.

k Debtors

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

20

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

l Cash at bank and in hand

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

m Creditors and provisions

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

n Financial instruments

The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans which are subsequently measured at amortised cost using the effective interest method.

21

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

o Pensions

Employees of the charity are entitled to join a defined contribution ‘money purchase’ scheme. The charity’s contribution is restricted to the contributions disclosed in note 10. Contributions outstanding at the year end was £828.13 (2021: £810).

The money purchase plan is managed by Scottish Widows Plc and the plan invests the contributions made by the employee and employer in an investment fund to build up over the term of the plan a pension fund which is then converted into a pension upon the employee’s normal retirement year age when eligible for a state pension. The charity has no liability beyond making its contributions and paying across the deductions for the employee’s contributions.

2 Legal status of the charity

The charity is an incorporated Royal Charter, registered as a charity in England & Wales.

3 Income from donations and legacies

Donations
Grants
Total 2022
Previous Reporting Period
Donations
Grants
Total 2021		 Unrestricted
£
36,801
1,459
38,260
Unrestricted
£
5,375
3,600
8,975		 Restricted
£
-
-
-
Restricted
£
-
-
-		 Total 2022
£
36,801
1,459
38,260
Total 2021
£
5,375
3,600
8,975

22

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

4 Income from charitable activities

Unrestricted
£
Membership fees (individuals)
62,040
Membership fees (companies)
32,964
Events & delegate fees
55,190
Publications and Information Service
12,054
Royalties
124,495
Diplomas and exam fees
3,887
Medals and Awards
1,000
Total 2022
291,630
Previous Reporting Period
Unrestricted
£
Membership fees (individuals)
53,456
Membership fees (companies)
32,526
Events & delegate fees
11,792
Publications and Information Service
7,628
Royalties
114,152
Diplomas and exam fees
9,296
-
Total 2021
229,850		 Restricted
£
-
-
-
-
-
-
-
-
Restricted
£
-
-
-
-
-
-
-
-		 Total 2022
£
62,040
32,964
55,190
12,054
124,495
3,887
1,000
291,630
Total 2021
53,456
32,526
11,792
7,628
114,152
9,296
-
229,850

All income from charitable activities is unrestricted except for one payment by The Cotton Council towards the development of the new website

5 Investment income

Investment income
Income from bank deposits
Interest on investments		 2022
£
42
1,616
1,658		 2021
£
2
844
846

All investment income is unrestricted.

23

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

6 Cost of raising funds

2022
£
Investment broker's fee
-
-
All expenditure on cost of raising funds is unrestricted.
Analysis of expenditure on charitable activities
Unrestricted
Restricted
£
£
Staff costs
138,253
-
Office cost
49,160
-
Publication cost
27,411
-
Membership cost
6,725
-
Events costs
34,558
-
Other costs
7,947
-
Depreciation
15,748
-
31,207
-
Total 2022
311,009
-
Previous reporting period
Unrestricted
Restricted
£
£
Staff costs
135,460
-
Office cost
40,652
-
Publication cost
25,634
-
Membership cost
5,812
-
Events costs
8,194
-
Other costs
7,903
1,000
Depreciation
15,540
-
29,773
-
Total 2021
268,968
1,000
Governance costs (see note 8)
Governance costs (see note 8)		 2021
£
209
209
2022
£
138,253
49,160
27,411
6,725
34,558
7,947
15,748
31,207
311,009
2021
£
135,460
40,652
25,634
5,812
8,194
8,903
15,540
29,773
269,968

7 Analysis of expenditure on charitable activities

24

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

8 Analysis of governance costs

Basis of
apportionment
Staff costs
Time spent
Audit fees
Governance
Accountancy services
Governance
Legal and professional
Governance
Council expenses
Governance		 2022
£
24,791
4,200
1,000
1,140
76
31,207		 2021
£
24,597
4,000
-
1,140
36
29,773

25

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

9 Net income/(expenditure) for the year

This is stated after charging/(crediting): 2022 2021
£ £
Depreciation 15,748 15,540
Operating lease rentals:
Land and buildings 15,650 15,814
Equipment 400 400
Auditor's remuneration - audit fees 4,200 4,000
Auditor's remuneration - accounts preparation fees 1,000 -

10 Staff costs

Staff costs during the year were as follows:

ff costs during the year were as follows:
Wages and salaries
Social security costs
Pension costs
Staff training
Working from Home Allowance		 2022
£
143,577
9,306
4,747
5,414
-
163,044		 2021
£
143,815
9,552
5,250
110
1,330
160,057

No employee has employee benefits in excess of £60,000 (2021: Nil).

The average number of staff employed during the period was 5 (2021: 5).

The key management personnel of the charity comprise the Chief Executive Officer and Executive Director. The total employee benefits of the key management personnel of the charity were £105,084 (2021: £103,718).

26

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

11 Trustee remuneration and expenses, and related party transactions

One trustees received travel and subsistence expenses during the year of £7.50. (2021:none).

There are no donations from related parties which are outside the normal course of business and no restricted donations from related parties.

The charity has purchased indemnity insurance for the Trustees during the year, at a cost of £544 (2021: £426).

The following related parties received honoraria during the year for presenting on the Short Course organised by TIIHQ. These payments are authorised by the charity's governing document and in line with Charity Commission guidelines.

Name Relationship Amounts received
2022 2021
Prof Subbiyan Rajendran Council member 300 400
Dr Xiaogang Chen Council member 300 400

The following related parties received fees during the year for curriculum development and for presenting on the bespoke course. These payments are authorised by the charity's governing document and in line with Charity Commission guidelines.

Name Relationship Amounts received
2022 2021
Helen Rowe Council member 2,250 -
Trevor Rowe Council member 2,250 -

27

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

12 Fixed assets: tangible assets

Cost
Additions
Disposals
Depreciation
Charge for the year
Disposals
Net book value
At 31 December 2021
At 1 January 2022
At 31 December 2022
At 1 January 2022
At 31 December 2022
At 31 December 2022		 Silver, pictures
and tapestries
£
21,200
-
-
21,200
-
-
-
-
21,200
21,200		 Computer
Software
£
682
-
-
682
682
-
682
-
-		 Computer
Hardware
£
4,661
637
-
5,298
4,492
382
-
4,874
424
169		 Fixtures and
Fittings
£
3,237
-
-
3,237
1,999
318
-
2,317
920
1,238		 Website
Development
70,095
-
-
70,095
39,992
15,048
-
55,040
15,055
30,103		 £
99,875
637
-
Total
100,512
47,165
15,748
-
62,913
37,599
52,710

28

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

13 Corporation tax

The charity is exempt from tax on income and gains falling within Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects. No tax charges have arisen in the charity.

14 Investments

Investments
Add: additions to investments at cost
Disposals at carrying value
Add net gain/(loss) on revaluation
Market value at the start of the year
Market value at the end of the year		 2022
£
89,268
-
-
(11,115)
78,153		 2021
£
83,102
82,127
(82,336)
6,375
89,268

Investments are all carried at fair value and are all traded in quoted public markets.

15 Debtors

Other debtors
Prepayments and accrued income		 2022
£
1,217
115,480
116,697		 2021
£
1,082
105,442
106,524

29

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

16 Creditors: amounts falling due within one year

Bank overdraft
Trade creditors
Other creditors and accruals
Deferred income
Taxation and social security costs
Deferred income
As at 1
January
2022
£
Membership subscriptions
7,900
Publications subscriptions
642
Short course income
3,691
Parliamentary Lunch
7,964
20,197		 2022
£
-
33,121
13,058
14,771
-
60,950
Received in
year
£
94,374
5,171
36,197
5,306
141,048		 2021
£
-
18,853
24,593
20,197
3,591
67,234
Released in
year
As at 31
December
2022
£
£
(95,004)
7,270
(4,880)
933
(33,320)
6,568
(13,270)
-
(146,474)
14,771

17 Deferred income

30

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

18 Analysis of movements in restricted funds

Manchester and the
North West Section
FCDE (The Federation of
Clothing Designers and
Executives)
Manchester and the
North West Section
FCDE (The Federation of
Clothing Designers and
Executives)
Previous Reporting
Period		 Balance at
1 January
2022
£
2,000
3,035
5,035
Balance at
1 January
2021
£
1,650
4,035
5,685		 Income
£
-
-
-
Income
£
-
-
-		 Expenditure
£
-
-
-
Expenditure
£
-
(1,000)
(1,000)		 Transfers
£
-
-
-
Transfers
£
350
-
350		 Balance at
31
December
2022
£
2,000
3,035
5,035
Balance at
31
December
2021
£
2,000
3,035
5,035

Name of Description, nature and purposes of the fund

Manchester and the North To support events held by the Manchester and Cheshire section West Section

FCDE (The Federation of Clothing Designers and Executives) New website development

To support the Tailoring SIG and make an annual award to a student studying tailoring in the UK.

To support the cost of developing a new website and database

31

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

19 Analysis of movement in unrestricted funds

General fund
TI Foundation Fund
General fund
TI Foundation Fund
Previous Reporting
Period		 Balance
at 1
January
2022
£
203,523
4,901
208,424
Balance
at 1
January
2021
£
227,004
4,901
231,905		 Income
£
320,433
-
320,433
Income
£
246,046
-
246,046		 Expenditure
£
(311,009)
-
(311,009)
Expenditure
£
(269,177)
-
(269,177)		 Transfers
£
-
-
-
Transfers
£
(350)
-
(350)		 Balance at
31
December
2022
£
212,947
4,901
217,848
Balance at
31
December
2021
£
203,523
4,901
208,424

Name of Description, nature and purposes of the fund General fund The free reserves after allowing for all designated funds TI Foundation Fund The Trustees have designated the TI Foundation fund to be used for any purpose approved by the TI Foundation committee.

32

The Textile Institute

Notes to the accounts for the year ended 31 December 2022 (continued)

20 Analysis of net assets between funds

Tangible fixed assets
Fixed asset investments
Cash at bank and in hand
Other net current assets/(liabilities)
Creditors of more than one year
Total
Tangible fixed assets
Fixed asset investments
Cash at bank and in hand
Other net current assets/(liabilities)
Creditors of more than one year
Total
Previous Reporting
Period		 General
fund
£
37,599
78,153
51,384
55,366
-
222,502
General
fund
£
52,710
89,268
20,567
40,978
-
203,523		 Designated
funds
£
-
-
-
-
-
-
Designated
funds
£
-
-
4,901
-
-
4,901		 Restricted
funds
£
-
-
-
-
-
-
Restricted
funds
£
-
-
5,035
-
-
5,035		 Total
£
37,599
78,153
51,384
55,747
-
222,883
Total
£
52,710
89,268
30,503
40,978
213,459

21 Operating lease commitments

The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Less than one year
One to five years		 2022
£
15,815
31,630
47,445
Land and		 2021
£
15,814
47,442
63,256
Buildings		 2022
2021
£
£
480
480
360
840
840
1,320
Land and Buildings		 2022
2021
£
£
480
480
360
840
840
1,320
Land and Buildings
1,320

33