2020-12-31-accounts

ANNUAL REPORT AND ACCOUNTS

For the year to 31 December 2020

• [International HQ, 47-58 Bastwick Street, London, EC1V 3PS, United Kingdom]

• [Telephone: [phone]] [Email:] [e-mail] [Website:] istructe.org.

• [Charity Registered in England & Wales No 23339 and in Scotland No SC038263]

Contents

		Page
1	Introduction	1
2	Objects and Activities	1
3	Achievements and Performance	3
4	Financial Review	5
5	Plans for Future Periods	7
6	Structure, Governance and Management	8
7	Reference and Administrative Information	17
8	Financial Statements	19

ANNUAL REPORT AND ACCOUNTS

Page 1/40

1. Introduction

The Institution’s Board (whose members are the Trustees of the Charity) submits its annual report and accounts for the Institution of Structural Engineers for the year ended 31 December 2020. In preparing the report, the Board has complied with the Charities Act 2011, the Statement of Recommended Practice – Accounting and Reporting by Charities (2015) (‘SORP’) and applicable accounting standards.

2. Objects and Activities

2.1 Objects

The Institution’s objects are laid down in its Royal Charter, and may be summarised as being:

• [To promote the advancement of structural engineering, and]

• [To facilitate the exchange of information and ideas relating to structural engineering.]

2.2 Aims

The Institution’s aim is to accredit and support a corps of highly qualified structural engineers for the safe, sustainable, effective and efficient design, construction, adaptation, maintenance and refurbishment of buildings, bridges and other structures throughout the world.

2.3 Main Activities

The Institution, in furtherance of its objects to promote for the public benefit the general advancement of the art and science of structural engineering, continued to maintain and disseminate information and ideas on structural engineering to its members. Activities were focussed on:

• [Maintaining high standards of professional qualifications for structural engineering including the] development of specialist lists/registers.

• [Assisting members to maintain and enhance their professional competence] [.]

• [Fulfilling the Institution’s learned society role] [.]

• [Promoting the Institution and the profession of structural engineering ensuring inclusivity is at the core of] our activities.

• [Ensuring an on-going value for money and efficiency in the management of the Institution’s affairs.]

• [Valuing members’ voluntary time in supporting the activities of the Institution and utilising that support as] effectively as possible.

2.4 Objectives for 2020

The objectives for 2020 included:

[Developing greater responsiveness to the Climate Change agenda recognising the critical role and] contribution of structural engineers and placing Institution activity on a par with its existing emphasis on structural safety.

ANNUAL REPORT AND ACCOUNTS

Page 2/40

• [Review of qualification standards in light of recommendations from “The future of our profession” and UN] Sustainable Development Goals.

• Ongoing involvement in the review of the building safety regulatory system following the Grenfell Tower tragedy including development of CROSS and the review of the need for specialist registers.

• [The promotion of the requirement for members to undertake CPD in structural safety as part of their] mandatory CPD obligation.

• [Further improving diversity and inclusivity across the Institution’s Board, Council, Committee and Panel] structures.

• [Development and launch of a suite of new conferences, CPD courses and webinars.]

• [Appointment of Board Chairman from 1 January 2020.]

• [Business analysis and project planning for procurement of a new CRM system in 2020.]

• [Phase 3 of the website development including online application processes.]

• [Phase 2 of Making Tax Digital compliance.]

2.5 Public Benefit

2.5.1 Benefits from aims

The general public throughout the world benefit from a safe and well-designed infrastructure provided by the highly skilled members of the Institution. This has a knock-on effect benefitting the world economy by providing employers with employees (who are Institution members) having an internationally recognised specialist professional qualification.

Public benefit is also gained from the obligation placed on all members to adhere to high levels of professional conduct, and the ongoing professional support provided to members to keep their knowledge and skills up to date and relevant.

2.5.2 Membership benefits

The Institution is a membership organisation and members’ annual subscriptions form a significant part of the Institution’s income, which is used to fund its activities for the public benefit. Members themselves receive benefits through the Institution’s dissemination of knowledge and best practice, and from their membership of a professional body with high standards of entry and continuing membership. However, it is only with and through its members that the Institution can continue to fulfil its objects and provide benefit to the public as a whole.

2.5.3 Charity Commission Guidance

The Board has regard to guidance on public benefit published by the Charity Commission, when exercising its powers and duties and where such guidance is relevant. The Trustees have considered the Charity

ANNUAL REPORT AND ACCOUNTS

Page 3/40

Commission’s general guidance on public benefit and have taken it into account when reviewing the Institution’s aims and objectives and in planning its future activities.

3. Achievements and Performance

3.1 Overall Review

2020 saw the Institution making good progress in support of the Board approved strategy. The Covid-19 pandemic did raise additional challenges in meeting core objectives, however with appropriate adaptations in place, the following objectives set for 2020 were accomplished:

• The Institution invested heavily in responding to the Climate Change emergency through the appointment of a Senior Engineer (Climate Change) and the work of the Climate Emergency Task Group (CETG). The Institution worked to set/raise standards, support the profession through a range of publications /conferences/webinars (all of which were made freely available to members and nonmembers) and lead efforts to collaborate and influence the agenda with organisations around the world.

• The Institution, through the Joint Board of Moderators, undertook a review of its academic standards, taking into account a range of issues including climate change, UN Sustainable Development Goals etc. Revised guidance was approved in October 2020. Task Groups to review the IPD Regulations and the Institution’s exams were established in 2020 with work continuing into 2021.

• During the year the Institution continued its collaboration with other professional bodies around the world including other professional engineering institutions, the Engineering Council, the Royal Academy of Engineering (RAEng) and the Construction Industry Council (CIC) on matters of mutual interest. Of particular note is the continuing collaboration in the review of the building safety regulatory system following the Grenfell Tower tragedy, including:

• Input to the draft UK Building Safety Bill

• Input to the BSI framework for the competence of individuals and the development of specialist registers in Higher Risk Buildings

• Securing substantial government funding from Ministry of Housing, Communities and Local Government (MHCLG) to expand the structural safety reporting scheme

• The promotion of the requirement for members to undertake CPD in structural safety as part of their mandatory CPD obligation

• During the year the Institution Board focussed on the key priority areas in relation to the modernisation of the Institution’s governance identified by ‘Structured for Success (S4S)’ including:

• The appointment of Board Chairman from 1 January 2020

• Establishing World-wide electoral regional structures

• Re-defining the role of Vice-Presidents

• Increasing transparency and accountability of the Institution’s Nominations Committee.

• Delivery of targets set out in relation to developing our credentials as an inclusive Institution including further improving diversity and inclusivity across the Institution’s Board, Council, Committee and Panel structures.

ANNUAL REPORT AND ACCOUNTS

Page 4/40

• The Business Transformation Project continued, including:

• Significant progress against the targets set in Phase 3 of the website development.

• The completion of the business analysis, project planning and procurement phases of the project to deliver a new CRM system.

• Completion of phase 2 of the Making Tax Digital project.

• The re-licensing of the Institution’s trading subsidiary Structural Engineers Registration Ltd (“SER Ltd”)

• The adaptation of the Institution’s learning and development provision to provide 30 online CPD courses and 6 virtual conferences including the second annual Digital Design and Computation conference, a two-day Climate Emergency/Engineers Declare conference and a new Conservation of Heritage Structures conference in partnership with CARE.

3.2 Scotland

The Scottish Regional Group delivered a reduced programme of events and meetings during 2020 due to the impact of Covid-19. The Regional Group Committee continued to meet regularly throughout the year, albeit virtually, and 80% of planned Committee meetings were held. A reduced number of technical meetings and CPD events were held. However, the Regional Group was pleased to deliver the preparation courses for the Chartered Exam which were well attended.

The Scottish Regional Group committee volunteers considerable time supporting the work of the Institution in Scotland and at HQ. The Group is supported by a part time administrator assisting with all group activities, liaison with HQ, and providing improved services to the membership. The Group’s targets in 2020 included:

• Continue to provide quality CPD and interesting lectures for our members which meets the requirements of SER.

• Maintain engagement with the Scottish Government to help shape the construction environment in Scotland

• Continue with the delivery of concept design workshops to support preparation for the Chartered Membership Exam.

The Group continues to assist with the assessment and processing of membership applications for candidates residing in Scotland and is represented on the Institution’s Council and on headquarters’ committees.

The Group has maintained its engagement with 10 Scottish universities to promote the Institution and to increase student membership. The Group has good links with schools and younger people promoting the importance of the engineering profession. The Group continues to support the Young Members Group (YMG) with a committee member attending all YMG meetings.

Liaison has also been maintained with the Institution of Civil Engineers, BCSA, HSE, the Concrete Society and the Institution of Engineers and Shipbuilders in Scotland (IESIS). The Group continues to build working relationships with other bodies including RIBA, RIAS, GIA, IET, IMechE, CIBSE, CIMCIGS and others through the Federation of Engineering Institutions. The Group is a consultee on changes to legislation affecting the industry proposed by Scottish Government.

ANNUAL REPORT AND ACCOUNTS

Page 5/40

The Institution’s trading subsidiary Structural Engineers Registration Ltd operates a Scheme of Certification of Design (Building Structures) under the Building (Scotland) Act 2003 for the Scottish Government Building Standards Division.

4. Financial Review

4.1 Trustees’ Responsibilities for the accounts and financial statements

The Charities Act 2011 requires the Trustees to prepare financial statements for each financial year which give a true and fair value of the state of affairs of the charity at the end of the year and of the incoming and outgoing resources for the year then ended.

In preparing those financial statements, the Trustees are required to select suitable accounting policies and then apply them consistently, making judgements and estimates that are reasonable and prudent. The Trustees must also prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the charity will continue its activities.

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

The Trustees are satisfied that these requirements are being met.

4.2 Review of the year

The Group posted a surplus for the year ended 31st December 2020 of £1,081k (2019: £382k). Total Group income was £8m (2019: £7.9m), with £5m (2019: £5m) coming from members’ subscriptions and qualification fees and £3m (2019: £2.9m) from other sources including trading subsidiaries.

Repayments on the mortgage (circa 15% of asset value) taken to fund the redevelopment of the building in Bastwick Street in 2014 and to support capital projects (including the ongoing Digital Transformation project), were fully discharged within the forecast cash flow parameters agreed by the Board and the Institution’s bankers.

Some 63% of the Institution Group’s income comes from membership and qualification activities; 2% from advertising and online income from The Structural Engineer; 14% from the trading activities of SER;4% from Structural-Safety Ltd; 5% from publications sales, courses and conferences. The remaining 12% was derived from a range of activities across the charity and trading companies.

The Institution has a vision “to lead, support and nurture the development of structural engineering worldwide”. During 2020 the Board continued to evaluate how best to prioritise and fund development activity in pursuit of this vision whilst taking full cognisance of available revenues.

ANNUAL REPORT AND ACCOUNTS

Page 6/40

4.3 Reserves

At the end of 2020, the Institution had total unrestricted reserves, after the pension reserve, of £10.7m. The majority of this is Designated Funds, and in particular the Bastwick Street Fund (see section 6.4.2), with £3.0m in the General Fund.

As at 31 December 2020 the Institution had free reserves of £0.7m (the comparable 2019 figure was £163k). Free reserves are calculated using the total Unrestricted Fund, less Designated Funds (excluding the Bastwick Street Fund) and Fixed and Intangible Assets, adding back the loan used for the redevelopment of Bastwick Street. The free reserves position will be monitored on an annual basis.

During 2019 (and throughout at regular intervals) the Board reviewed the reserves policy and agreed that the target should be to hold minimum free cash reserves equivalent to three months of expenditure, currently approximately £1.7m. During much of 2020 this target was met mainly due to the significant savings in travel and subsistence costs because of the Covid restrictions introduced globally. The minimum figure during 2020 was £3m which is substantially higher than the target set by the Board. With the advance receipt of subscriptions for 2021 free cash reserves were £4.3m as at 31[st] December 2020.

4.4 Funds

The Institution’s restricted and designated funds are described in notes 18 and 19 to the Financial Statements, respectively.

The Board decides on a year-by-year basis the amounts that are placed in each designated fund and monitors actual income and expenditure against the operating forecast.

4.5 Pension Asset

To reflect the accounting surplus on its (1973) Pension and Life Assurance Scheme, a pension asset is reflected in the accounts, for both the year-ending 31 December 2020 (£799k), and year-ending 31 December 2019 (£598k).

4.6 Grant making policy

4.6.1 The Institution and Regional Group Awards

As a learned society, the Institution has a vision to lead, support and nurture the development of structural engineering worldwide by upholding high standards, building knowledge communities and promoting structural engineering. In furtherance of this vision the Institution encourages its members to pursue excellence in their work and contribution to the profession and wider society. The Institution celebrates outstanding contributions from structural engineers and awards are given each year to members and nonmembers for the technical papers, presentations at meetings in the regional groups, for the best students at higher educational establishments in regional areas, and for newly built/refurbished structures. Each of these award winners receives a certificate. Some also receive a plaque or a financial reward (in the £50-£200 range).

4.6.2 Research Fund

The Institution’s Research Fund (administered by the Research Panel, which reports to the Structural Futures Committee) makes grants to support research in structural engineering in both industry and

ANNUAL REPORT AND ACCOUNTS

Page 7/40

academia, including at undergraduate and masters level. It also supports young researchers through the annual Young Researchers’ Conference.

5. Plans for Future Periods

5.1 Long and medium-term strategy

The Institution’s Board approved a strategy to guide its direction of travel from 2015 to 2020 and to inform the longer-term period to 2025. The strategy is supported by a rolling 5-year business plan.

In summary the strategy is two-fold:

• An Institution committed to competency.

• An Institution founded on communities.

As a long-term strategy, the Institution has a vision that consolidates its existing position as the leading international specialist professional body for structural engineers committed to supporting the well-being of society through activities that assist structural engineers acquire, maintain and develop the necessary competencies to practice.

The Institution has also identified engineering themes that it can champion to promote dialogue both internally and externally with audiences that extend beyond its own current constituency of structural engineers. The broad areas of interest are:

• Safety of society.

• Sustainability of society and the Climate Emergency.

• Value to society.

The Institution’s major programme of digital transformation is a critical component of connecting a worldwide cohort of engineers. Development of the Institution’s web platforms increases the ability to access and share relevant information between member communities that may be founded on areas of common interest, need and expertise.

5.2 Looking ahead to 2021

The Board has endorsed a programme of objectives for 2021 in support of the strategic plan. These include the following activities, each of which will be reviewed in line with the disclosure statement on Covid-19 under section 6.3.6

• To continue to invest in responding to the climate change emergency by setting/raising standards, including enhancing competence through the review of qualifying routes to membership, a review of CPD requirements and by providing a suite of guidance notes and tools to support the profession worldwide.

ANNUAL REPORT AND ACCOUNTS

Page 8/40

• To continue to contribute to the review of the building safety regulatory system following the Grenfell Tower tragedy, including the development of specialist registers and the expansion of the structural safety reporting scheme to include fire safety issues.

• To continue the promotion of CROSS in the US (CROSS-US) and Australia (CROSS-AUS) and explore opportunities to further expand the initiative internationally.

• Delivery of those elements of the governance review agreed by the Board and further review of the Institution’s proposals to improve governance arrangements, set out in “Structured for Success”.

• To progress the Business Transformation Project through the delivery of a new CRM and further website development and integration work.

• Support membership engagement and growth through the promotion of more accessible routes to, and between, grades of membership and the development of more accessible assessment methodologies e.g. online exams.

• Increasing support to candidates preparing for the Professional Review Interview and examinations, targeting in particular those groups which have lower pass rates.

• The provision of new CPD content, including conferences, CPD courses and publications, with a particular focus on online delivery.

• The development of collaborative relationships with international organisations to enable shared access to technical/educational material and promotion of Affiliate schemes that may be attractive in countries that do not have formal competency tests.

• Further improving diversity and inclusivity across the Institution’s Board, Council, Committee and Panel structures.

6. Structure, Governance and Management

6.1 Organisational Structure

The Institution was founded in 1908 and was incorporated by Royal Charter on 4 May 1934; the current Supplemental Charter, with associated Bye-laws, was granted on 1 December 2004. The Charter empowers the Board to make Regulations relating to the Institution and for the conduct of members. They are kept under review and were last amended during 2020.

The Institution’s activities are conducted through the Institution itself and also through its two wholly owned subsidiaries - IStructE Ltd and Structural Engineers Registration Ltd (SER).

Structural Safety Ltd (SSL) jointly owned with The Institution of Civil Engineers brings together the activities of SCOSS (Standing Committee on Structural Safety) and CROSS (Confidential Reporting on Structural Safety)

To support its international development activities, the Institution has legal entities registered in Hong Kong and the United Arab Emirates. IStructE (Asia-Pacific) Limited and IStructE FZ LLC respectively.

Collectively all these companies are referred to as ‘the Institution Group’.

ANNUAL REPORT AND ACCOUNTS

Page 9/40

Authority to conduct the day-to-day operations of the Institution is delegated by the Board to the Chief Executive, who is responsible to the Board for the efficient running of the Institution and for the implementation of policies and strategies. An Executive Leadership Team (ELT), comprising the Chief Executive, Deputy Chief Executive and Chief Operating Officer, work with and support the Board in the fulfilment of their obligations as Trustees. In turn, the Senior Management Team (SMT) supports the Executive and has operational and delivery responsibility for the Institution’s membership, product and services activities.

Council (which includes members elected by and from Chartered and Incorporated Structural Engineers, Technician Members and co-opted graduates worldwide, as well as regional group chairmen and other cooptees) support the Board in determining the core values and strategic aims of the Institution. Although its role is essentially advisory and consultative, it debates and influences policies, offers advice to the Board, and, in each year where elections take place, it elects the President and the Board.

6.2 Governance

The Board Chairman is chairman of the Board of Trustees, which comprises 11 other members including, ex officio, the President. Each year, Council appoints three Vice-Presidents and one Past President to the Board. Other members of the Board are elected by and from members of Council.

Vice-Presidents who are not otherwise members of the Board attend Board meetings by invitation. The Board may invite specialist advisers to attend. The Executive Leadership Team also attend . Such persons do not thereby become members of the Board and may not vote on any matter to be decided by it.

The Institution’s ‘session’ commenced on 1 January 2020; when the incoming Board Chairman, President and members of the Board, the Council and committees took office. The session ran to 31 December 2020. At the first meeting of the session, Board members received training in trusteeship.

At the end of the session, the Board members self-evaluated their individual performance during the year and that of the Board. The collective output was discussed by the Board and as necessary, action plans developed so that improvements may be effected. The Board Chairman was also appraised separately by a panel appointed by the Nominations Committee made up of members of Nominations Committee.

As a result of the Covid-19 pandemic and the need to ensure continued connectivity and continuity through the Institution’s governance and committee structure, the Board extended the Term of Office of the President, Immediate Past-President, and members of the Board, Council, Committees and Panels for a period of 12 months (until the end of the session 2021). Elections for Vice-President in 2020 continued as normal, in order to enable succession planning for President from 2024.

6.3 Management

6.3.1 Committee and Panels

The committee structure is shown on page 11.

The Membership Committee advises on policy with regard to membership of the Institution, including setting and maintaining standards to qualify structural engineers globally.

The Education Committee advises on policy concerning school and university education for potential members and throughout member’s careers.

ANNUAL REPORT AND ACCOUNTS

Page 10/40

The Engineering Leadership Group advises on policy concerning technical matters related to structural engineering. It is assisted in this task by three topic head committees and associated panels.

The Resources Committee assesses and reviews the Institution’s resources needs including finance, staff and premises, and risk including financial and reputational.

The Professional Conduct Committee keeps the code of conduct, guidance notes and disciplinary procedures under review, and investigates allegations of misconduct made against members and also misrepresentations relating to Institution membership.

The Nominations Committee makes annual recommendations to the Council concerning the election of the President, the Vice-Presidents and the other members of the Council, and also the appointment and election of members of the Board. It also adjudicates on Institution Awards made to individuals.

Panels, which deal with specific areas of activity, report as shown on page 11.

Page 11/40

Committee Structure 2020

Committee Structure 2020 Page11/40	Committee Structure 2020 Page11/40
Chief Executive Deputy Chief Executive Chief Operating Officer Institution Board The Trustees Council Members Advisory Group Young members Panel International Interest Group UK Regional Group Representatives Engineering Leadership Group Membership Committee Education Committee Nominations Committee Professional Conduct Committee Resource Committee SER Ltd IStructE Ltd Board Secretary & Head of Professional Conduct Head of Membership Head of Learning and Development Application & Professional Review Professional Development Examinations Academic Qualifications Joint Board of Moderators Structural Safety Ltd Head of Publishing Papers Awards Editorial Advisory Board Technical Products Structural Awards Business Practice & Regulatory Control Committee Design Practice & Structural Safety Committee Structural Futures Committee Building Information Modelling Ethics Small Practitioners Health & Safety Humanitarian & International Development Seismic & Dynamic Events Sustainability Structural Safety Technical Study Groups Digital Workflow & Computational Design Research Headline committee Panel Committee reporting to ELG Subsidiary Group CROSS- AUS Ltd Climate Emergency Task Group (CETG)		page 11/41
	Headline committee Panel Committee reporting to ELG Subsidiary Group

Page 12/40

----- Start of picture text -----
Institution Board
Council
The Trustees Staff Structure 2020
Members Advisory
Group
Martin Powell
EA to CEO
Chief Executive Officer
Darren Byrne Simon Flannagan
Deputy Chief Executive PA to DCEO PA to COO Chief Operating Officer
Sunita Dhawan Vicki Fruish
Board Secretary & Head of Kristy MacDonald (^0.9)Professional Conduct Head of MembershipRebecca Carey Head of Learning and Development Digital & Data DirectorSylvia Pilotto Head of Human Resources
Professional Conduct Manager Examinations ManagerExams Officer (^0.6 v) Facilities Manager Head of Marketing & Communications Head of Training and Events Head of IT projects HR Manager (^0.6)
GOVERNANCE EXAMINATIONS Facilities General Assistant (^0.6)Facilities Coordinator Content & Communication Manager (v)Digital Marketing Manager (mat) CPD Course Coordinator (v)Events Executive (^0.6)Events Executive Data & Insights Lead UX Manager Resourcing & HR Adviser
Membership Engagement FACILITIES Digital Marketing ExecutiveDigital Marketing Manager CPD Course Coordinator DIGITAL TRANSFORMATIONCRM Project Manager HR SERVICES
Head of Technical Secretariat Manager Digital Communications Executive
Services EVENTS & PROFESSIONAL
Education Officer Finance Manager MARKETING & PUBLIC RELATIONS DEVELOPMENT
Regional Groups Coordinator Membership Services
Senior Engineer (Comp Design)
Senior Engineer (Climate Change ^0.5) MEMBERSHIP ENGAGEMENT Accounts AssistantAccountant Supervisor
Secretariat Executive Finance Assistant (^0.6) Lead Structural Engineer and CROSS Records Executive
Secretariat Executive (^0.6) Finance Officer – subscriptions Scheme Manager Head of Publishing
Secretariat Executive (^0.6 v) Manager, Membership & FINANCE Administrative assistant (^0.4v)STRUCTURAL SAFETY Managing Editor MEMBERSHIP SERVICES &
TECHNICAL SECRETARIAT Qualifications Editorial Assistant RECORDS
SERVICES
PR & CPD Executive PUBLISHING
Membership Qualifications Operational IT Systems Manager Registration Schemes Manager
Officer (x2) Library & Information
IT Systems Analyst Registration Schemes Executive (^0.6) Manager
MEMBERSHIP PROMOTION & IT Systems Support (v) Registration Schemes Executive (^0.6) Sponsorship & Venue
SUPPORT Manager (mat) Deputy Librarian
SYSTEMS & IT SER LTD Sponsorship and Venue
Manager (^0.8) LIBRARY & INFORMATION
SERVICES
FOH Coordinator
FOH Coordinator (v)
SPONSORSHIP & VENUE
----- End of picture text -----

(^) – part time (v) – vacant position

ANNUAL REPORT AND ACCOUNTS

Page 13/40

6.3.2 Regional Groups

Institution members throughout the world, where there are sufficient concentrations of members, are allocated to regional groups. Such regional groups are run by committees, which arrange learned society, continuing professional development and networking events, to complement those organised by the Institution centrally. Each group has regulations for its governance, which have been approved by the Trustees. The financial activities of these groups form part of the 2020 annual statement

6.3.3 Staff

With an average number of staff employed during the year of 63.5, the staff establishment at 31 December 2020 was 64 (which included 10 part-time staff). At 31 December 2019, the comparable figure was 62.25 (including 10 part-time staff). The staff organogram is on page 12.

The staff have adopted the following mission statement as the focus of their aspirations:

We provide a professional platform for all in the field of Structural Engineering to share their technical expertise and knowledge with each other in an efficient and effective manner. We help lead professional excellence in the field of Structural Engineering by supporting the development of members and championing public safety worldwide.

All staff receive an induction into the organisation and access to ongoing learning and development activities which supports their own continuing professional development.

Staff are rewarded with a market comparable pay and benefits package.

6.3.4 Pay and remuneration of key management personnel

As part of the annual operating plan and budget review, the Board approves an inclusive percentage uplift for annual salaries that is based on affordability; benchmark assessments to reflect the sector; the Institution’s central London location and Government published national statistics. Against the approved criteria, the Chief Executive approves individual increase awards.

The Chief Executive’s remuneration is assessed separately by a panel, comprising the Chairman, the President, and immediate Past-President, against criteria that includes benchmark and trend information compiled by the Institution’s Head of HR and performance objectives that have been agreed between the Chairman, President and the Chief Executive.

6.3.5 Volunteers

All members of the Board, the Council, committees, panels, task groups, advisory groups and study groups (as well as members serving the Institution on regional group committees and acting in other capacities) are volunteers, numbering at least 600 individuals. Additionally, an extensive network of members contributes in authorship and editorial roles. Around 20 members act as Institution representatives in countries outside the United Kingdom where there is no regional group; and circa 50 members serve on committees of the British Standards Institution, construction and engineering technical organisations, and educational institutions. This represents considerable commitment and input to the profession, mainly by senior members, which is to the public benefit as well as that of the Institution itself.

ANNUAL REPORT AND ACCOUNTS

Page 14/40

6.3.6 Risk Management

The Board acknowledges its responsibility for managing the risks to which the Institution is exposed. It oversees an on-going assessment of the major risks – in particular those relating to strategic objectives, operations, finances and reputation. Control systems are in place to manage those risks. Besides a generic response to risk management, the Board recognise the very specific and unprecedented challenges posed by the COVID-19 pandemic. A separate disclosure statement is included within this section and follows discussion with the Institution’s auditors.

The responsibility for providing guidance to the Board on matters relating to finance and operational risk is delegated to the Resources Committee. Strategic and reputational risk matters are primarily under the direction of the staff directorate and discussed at regular intervals with the Board.

The principal risks facing the Institution, with the key actions in place to mitigate against them are:

• Reduction in membership – Income from membership subscriptions is key to the Institution. In order to mitigate against a reduction in the number of members as the result of demographic factors and also to seek to grow the membership, the Institution has introduced initiatives including:

• An increased range of products and services including CPD course provision, on-line courses, books and other publications; the library and a growing portfolio of e-books and an events program.

• Increased involvement in careers activities including production of educational videos and a focus on young member events.

• Increasing the number of candidates eligible to proceed to Chartered Membership by mapping the examinations offered by other international structural engineering bodies against the Institution’s examinations and introducing supplementary examinations to assess those areas that are not tested.

• Improving accessibility to professional membership by introducing flexibility in how candidates may satisfy the Masters level academic requirement, the order in which candidates may take their Professional Review Interview/Examination, introducing new routes to membership and changing the Supporter requirements in terms of reducing the number of Members required to sign candidates’ application forms.

• Data Protection – The Institution’s operations are heavily reliant on the use of the personal data of both members and non-members. A risk-based approach to data security is taken and appropriate technical and organisational measures are in place. Further to the introduction of the General Data Protection Regulation in May 2018 all associated policies and procedures continue to be reviewed and updated as necessary.

• Resilience of commercial revenue – In order to reduce reliance on income from membership subscriptions a number of revenue streams, have, and continue to be developed through IStructE Ltd. Throughout 2020 and into 2021 a greater number of online products have been created and delivered, greatly increasing the available portfolio and meeting the varying delivery requirements of members and other users.

• Reduction in income from Structural Engineers Registration Ltd (SER) – Income from SER is largely linked to the level of activity in the Scottish construction industry which is outside the company’s control. A prudent approach is therefore taken to budgeting.

• Volunteer engagement – the Institution is heavily dependent on the voluntary contribution of its members particularly in areas of technical and engineering knowledge sharing. Members give their time freely and willingly however conflicting pressures in the workplace and personal life means that the Institution is always looking to increase the number of members actively engaged with its activities.

ANNUAL REPORT AND ACCOUNTS

Page 15/40

The increased use of technology including Zoom and the flexibility that this entails, in terms of conducting meetings and other Institution activities at different times of the day, has led to a significant increase in member and volunteer engagement. This process has been accelerated by the Covid pandemic and the Institution will incorporate the positive learning points from 2020 into future plans.

• Increase in staff costs – As with most membership organisations the Institution’s employee related costs is the key component of total expenditure. The risks associated with staff costs are managed through a rigorous annual budgeting process and close scrutiny to confirm the business need for any additional staff costs.

• Increases in the cost of capital expenditure – Where projects involving significant capital expenditure are undertaken there is likely to be an increased risk of cost escalation. Mitigation measures include development of detailed project specifications before work commences and appropriate levels of project management including formation of Project Oversight Boards.

• Health and safety – Presenting reputational and legal risks as well as the primary risk to the safety and health of staff and others, the Institution takes this risk area seriously. A health and safety policy is in place together with supporting documents and appropriate procedures. Health and safety is overseen by the Chief Operating Officer, who chairs a staff health and safety committee that meets quarterly Considerable health and safety work has been undertaken as a result of COVID-19, with new arrangements for office use to reduce the risk of COVID-19 transmission, all of which is documented in risk assessments; method statements and guidance documents. A similar process has been undertaken for use of the Institution and other venues for exams. Staff working from home have been supplied with guidance for safe working and regular communication and surveys of staff have been undertaken.

Disclosure Statement relating to COVID-19

Whilst the Annual Report and Accounts are focused on outturns from 2020, The Institution’s Trustees are mindful of the impacts of the COVID-19 pandemic on the short to medium term resilience of the Institution Group.

Given the significant international reach and exposure of the Institution this remains a fluid situation. Having gone through 2020 and successfully mitigated against the financial risks of COVID-19 the Institution Board believes it is in a positive position to manage the risks in 2021.

With a business model that is dependent in large measure on receipts from Membership subscriptions (circa 65% of revenues), in excess of 95% of fees for 2021 has already been collected. This is commensurate with performance in recent prior years. Enhanced follow-up of outstanding fees is underway and at the point of making this report, the Trustees are confident that the outturn will provide adequate security on stay -in business and fixed cost elements without significant draw-down on reserves. Additionally, a cashflow exercises has been conducted, disclosed and discussed with the Institution’s auditors with particular emphasis on cash flow through to May 2022.

As a learned society, the Institution is particularly active in the areas of events, conferences, courses and training. This is additionally supported through third party sponsorships as well as revenues from the hire of venue space at the Bastwick Street headquarters. All this activity will be negatively impacted during 2021 by measures relating to social distancing and “lockdown” whether in the UK or internationally. Early intervention and lessons learnt from 2020 has already stripped out a significant proportion of costs associated with this programme of activity and additionally, as 2020 demonstrated, significant numbers of activities can be transferred online, retaining income streams and in some case growing them due to a greater reach of the event. The Institution makes generous provision of financial resources to its network of regional groups around

ANNUAL REPORT AND ACCOUNTS

Page 16/40

the world and in the absence of the ability for face-to-face activities, this financial outlay will be significantly curtailed during 2021 thus strengthening the liquidity of cash reserves against other as yet unspecified risks associated with COVID-19.

The situation regarding the Institution’s certification scheme in Scotland and Jersey (SER Limited) is more difficult to forecast given its dependence on planning and construction activity in these places and therefore outside its direct control. However, 2020 demonstrated that although COVID-19 resulted in a downturn in activity the impact was relatively minor. The lessons learnt from 2020 have been built into the 2021 budget.

The 2021 budget set a deficit of £8k. Following a re-forecast of income and expenditure to reflect an evolving, Covid-19 impacted, operating environment a predicted uplift of £279k was forecast, taking the year-end figure to a surplus of £271k. The Trustees consider this a realistic assessment that continues to be adequately supported by the Institution’s current liquidity.

The Institution continues to implement its emergency contingency plans and the vast majority of staff continue to work remotely, demonstrating that for the most part we are able to provide continuity of service and backup administration. Where staff are unable to work remotely, we have actively pursued UK Governmental support through their furloughing programme that will enable staff to be retained for their eventual return to work and underpinned by up to an 80% contribution towards salary costs. The Institution has ‘topped up’ the Government contribution, ensuring that no member of staff was financially disadvantaged as a consequence of the programme. At this stage there is no consideration of making posts redundant

Much of the work of the Institution is reliant on the contribution of expertise from within the membership. The provision of on-line meetings is enabling this support to continue largely unaffected. This applies equally to engineering and technical activities as well as to matters of governance and oversight from the Trustees. International travel restriction has enabled appreciable cost savings.

Based on previous downturns in the business cycle, whilst revenues from commercial activities might take time to recover, membership subscription income is generally robust and sustaining. Professional Engineers have taken many years to qualify for membership of the Institution; their professional qualifications and hence the criteria for Institution membership is highly valued. As such the Trustees retain confidence that income from subscriptions will continue to strongly underpin the overall revenues of the Institution, as was the case in 2020. Equally there is no evidence to suggest the desire from structural engineers throughout the world in taking Institution examinations will decline. Accordingly, both short-term gains from examination fees as well as longer-term revenues from newly qualified members is expected to endure.

The Institution has long-term development plans for its ongoing business digital transformation. This provides resilience to its support of an international community. Delivering this change is dependent on capital development expenditure in a series of integrated projects. As needed, the Trustees will consider temporary suspension of new CAPEX to preserve cash liquidity for routine operational sustainability

Whilst short-term liquidity is not currently considered to be problematic, the Institution is well resourced through the freehold ownership of its headquarter building where gearing through mortgage borrowing is circa 12%. The Trustees stated policy is that borrowing against the building is only for development activity and not for funding general activity, which must be funded via membership and commercial revenues. In the event of a continuing and major worldwide aftermath to COVID-19, the Trustees would as necessary, review its mortgage cash release policies. Based on current projections for 2021 and 2022 such action is not expected to be required

In summary, both in 2020 and then into 2021 and 2022, the Trustees are satisfied that the ongoing funding of the Institution and the wider Group as a viable and ongoing Charity is sustainable and within acceptable

ANNUAL REPORT AND ACCOUNTS

Page 17/40

parameters of risk consideration, although mindful that the enduring pandemic means that a continual series of short and longer term reviews will be required so that mitigating actions can be taken as required.

6.3.7 Fundraising

Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. Although the Institution does not undertake widespread fundraising from the general public, the legislation defines fund raising as ‘soliciting or otherwise procuring money or other property for charitable purposes’ Such amounts receivable are presented in the Institution’s accounts as ‘donations and legacies’.

In relation to the above the Trustees confirm that all solicitations are managed internally, without involvement of commercial participators or professional fund-raisers, or third parties. The day-to-day management of all income generation is delegated to the staff directorate, who are accountable to the Trustees.

The Institution is not bound by any undertaking to be bound by any regulatory scheme and does not consider it necessary to comply with any voluntary code of practice.

No complaints have been received by the Institution in relation to fundraising activities.

The Institution’s terms of employment require staff to behave reasonably at all times; as it does not approach individuals for funds it does not particularise this to fundraising activities nor is it considered necessary to design specific procedures to monitor such activities.

6.3.8 Subsidiary Companies

The Institution’s subsidiary companies are listed in note 7 to the Financial Statements.

6.3.9 Connected Charities

6.3.9.1 The Institution of Structural Engineers Benevolent Fund

The Institution of Structural Engineers Benevolent Fund is deemed a connected charity as its objects restrict its beneficiaries to current or former members of the Institution and their dependents. During 2020 the Institution collected £35,875 of donations from its members and paid these to the Fund.

7. Reference and Administrative Information

7.1 Registration

The Institution is registered with the Charity Commission for England and Wales under number 233392 and the Office of the Scottish Charity Regulator under number SC038263.

7.2 Address of principal office

The Institution’s address is 47-58 Bastwick Street, London, EC1V 3PS

ANNUAL REPORT AND ACCOUNTS

Page 18/40

7.3 Trustee Board

During 2020 the Trustees were:

Matthew Byatt	Victoria Martin	John Staves*
Jane Entwistle	Donald McQuillan	Peter Terrell
Shalini Jagnarine-Azan	Ashutosh Nene	Marelize Visser
Joe Kindregan	Simon Pitchers	Charlotte Wildman

Those marked* were no longer in office at the date of the approval of this report.

Mohamad Al-Dah was appointed as Trustee from 1 January 2021.

7.4 (i) Executive Team

Martin Powell	Chief Executive
Darren Byrne	Deputy Chief Executive
Simon Flanagan	Chief Operating Officer

7.4 (ii) Board Secretariat

Kristy MacDonald Board Secretary

7.5 Auditors

Haysmacintyre LLP, statutory auditor 10 Queen Street Place London EC4R 1AG

Approved by the Board and signed on their behalf by

Peter Terrell

Board Chairman

Date: 6th May 2021

Page 19/40

Independent auditor’s report to the trustees of the Institution of Structural Engineers

Opinion

We have audited the financial statements of the Institution of Structural Engineers for the year ended 31 December 2020 which comprise the consolidated statement of financial activities, the balance sheets, the consolidated statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

• give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31 December 2020 and of the group’s net movement in funds for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011 and the Charities and Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations 2006.

Basis for opinion

We have been appointed as auditor under section 144 of the Charities Act 2011, and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Acts and relevant regulations made or having effect thereunder. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group 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’ Report and the President’s Foreword. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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 and the Charities Accounts (Scotland) Regulations 2006 require us to report to you if, in our opinion:

• adequate accounting records have not been kept by the parent charity, or returns adequate for our audit have not been received from branches not visited by us; or

• sufficient and proper accounting records have not been kept; or

• the parent charity financial statements are not in agreement with the accounting records and returns; or

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

Responsibilities of trustees for the financial statements

As explained more fully in the trustees’ responsibilities statement set out on page 5, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Page 20/40

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

Auditor’s responsibilities for the audit of the financial statements

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 of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the group and the environment in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to charity law applicable in both England and Wales and Scotland, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included:

• Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

• Reviewing the controls and procedures of the group relevant to the preparation of the financial statements to ensure these were in place throughout the year, including during the Covid-19 remote working period;

• Evaluating management’s controls designed to prevent and detect irregularities;

• Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and

• Challenging assumptions and judgements made by management in their critical accounting estimates, in particular the valuation of intangible assets and debt provisions.

• Reviewing the assumptions and judgements used by the professional actuary in relation to the Charity’s pension asset.

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act, and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. 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’s trustees as a body for our audit work, for this report, or for the opinions we have formed.

Haysmacintyre LLP 10 Queen Street Place Statutory Auditors London EC4R 1AG 12 May 2021

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

Page 21/40

Consolidated statement of financial activities Year ended 31 December 2020

Note Income from: Donations, legacies and grants 2 Income from trading activities Gross income from charitable Trading subsidiaries’ income Income from charitable activities Membership and qualification activities Technical & professional learning and development Income from joint venture 11 Other charitable activities Income from investments 3 Total income Expenditure on: Cost of raising funds 4 Cost of charitable trading Trading subsidiaries costs Charitable activities 4 Membership and qualification activities Technical & professional learning and development Other charitable activities Total expenditure Loss on translation of foreign entities Net income Actuarial gain / (loss) on final salary pension scheme 22 Net movement in funds Reconciliation of funds Total funds brought forward Total funds carried forward	Unrestricted Funds £’000 127.3 136.3 1,746.6 5,050.4 522.0 127.7 258.7 4.5 7,973.5 120.6 1,571.6 3,361.8 1,171.3 649.9 6,875.2 (0.7) 1,097.6 81.0 1,178.6 9,558.0 10,736.6	Restricted Funds £’000 19.1 - - - 22.4 - 0.4 41.9 - - - 58.3 - 58.3 - (16.4) - (16.4) 282.6 266.2	Permanent Endowment * Funds £’000 - - - - - - - - - - - - - - - - - - 31.3 31.3	2020 Total £’000 146.4 136.3 1,746.6 5,050.4 544.4 127.7 258.7 4.9 8,015.4 120.6 1,571.6 3,361.8 1,229.6 649.9 6,933.5 (0.7) 1,081.2 81.0 1,162.2 9,871.9 11,034.1	2019 Total £’000 46.8 136.1 2,218.5 5,050.0 161.2 - 273.5 9.6
					7,895.7
					118.0 1,700.3 3,505.0 1,093.2 1,091.0
					7,507.5
					(5.9)
					382.3 (35.0)
					347.3 9,524.6
					9,871.9

All of the above results are derived from continuing activities. All gains and losses recognised in the year are included above. The notes on pages 24 to 40 form part of these financial statements.

• Permanent endowment: The only movement during 2020 was the receipt of £44 in bank interest.

Page 22140 Consolidated and Charity balance sheets Year ended 31 December 2020 Note The Group Char 2020 £'ooo 2019 £￿00 2020 £'ooo 2019 £'ooo Intanglblea55et5 Web5i185 686.7 680.1 686.7 680.1 Investmentln lointventur8 117.7 Flxed as80ts T8ngibleassets Inveslmenl in subsidiarywmpani 8,675.7 8,825.0 8,675.7 8,825.0 8,675.7 8,8252 Currenta$sets st￿ks of publications Deblors Cash al bankand in hand 12 13 439.8 4,550.6 488.7 568.3 571.5 2.642.9 Total currenta55ets 4.995.5 Creditors-afflounts falling duewthin one year 13.074.31 12,820.81 12,805.41 12,637.81 Netcurrent88881s 1,244.7 581.8 Credltor8- amunls f211ingdu8aft8r on8 y8ar 15 11,280.21 11,166.21 11280.21 Total net a$$etsbeforepenslonschemesurplu8 10,235.1 9,273.9 9,441.1 8￿￿.9 Pensk)n $¢hemelundlng $u¥pkn$ 22 759.0 598.0 799.0 8.0 Total net a$$etsafter penslonschemesurplu$ 11,034.1 9,404.9 Fund$ollhe Cha￿ty Unteslricted (unds.. De$￿natedfu￿dS Generalfunds Total untesthdedlunds excludiw reserye P8nsion reserv8 19 6,950.0 2.987.6 9,937.6 6.484.1 2.475.9 8.960.0 598.0 6,283 2 6.484.1 9,143.4 799.0 8.493.0 598.0 22 Total unrestridedlunds 10.736.6 9,558.0 9,942.4 9.091.0 Perrnan8nl 8ndOw￿￿1[U￿d Re$th1*8d fund5 17 18 31.3 31,3 282.6 31.3 266.4 31.3 282.6 rotalfunds 11034.1 10 240.1 9,404.9 Approved by the Insbiubon Board. aulhori88d for i&8Ue and signd on theii behallby.. Peter Teiiell,Chaimian Jafie Entwisle, HonOraryT￿a$U￿r Date.. 6th May 2021

Page 23/40

Consolidated and Charity statement of cash flows Year ended 31 December 2020

Reconciliation of changes in resources to net cash inflow from operating activities Note below Cash flows from operating activities Net income after tax Investment income 3 Interest payable Depreciation 7 Amortisation of intangible assets 8 Decrease / (increase) in stock 12 Decrease) / (increase) in debtors 13 Increase in creditors 14 Difference between pension charge and cash contribution 22 Net cash generated from operating activities Cash flow from investing activities Purchase of tangible fixed assets 7 Purchase of intangible assets 8 Investment in joint venture 11 Amount received in gift aid 11 Interest received 3 Net cash from investing activities Cash flow from financing activities Increase capital element of mortgage Additional funds from re-mortgage Interest paid Net cash from financing activities Increase in cash in year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year	Group 2020 £’000 1,081.2 (4.9) 54.7 198.5 165.2 0.1 48.9 253.5 (120.0) 1,677.2 (49.2) (171.8) (127.7) 10.0 4.9 (333.8) (114.0) - (54.7) (168.7) 1,174.7 3,375.9 4,550.6	2019 £’000 382.3 (9.5) 46.5 219.8 127.8 (0.2) (91.7) 76.4 (120.0) 631.4 (6.1) (248.6) - - 9.5 (245.2) (117.6) 615.3 (46.3) 451.2 837.4 2,538.5 3,375.9	Charity 2020 £’000 754.2 (4.9) 54.7 198.5 165.2 0.1 3.2 167.6 (120.0) 1,218.6 (49.2) (171.8) - - 4.9 (216.1) (114.0) (54.7) (168.7) 833.8 2,642.9 3,476.7	2019 £’000 349.9 (9.5) 46.5 219.8 127.8 (0.2) (54.6) 107.5 (120.0)
				667.2
				(6.1) (248.6) - - 9.5
				(245.2)
				(117.6) 615.3 (46.5)
				451.2
				873.2 1,769.7
				2,642.9

The notes on pages 24 to 40 form part of these financial statements.

6

Page 24/4 0

Notes to the accounts

Year ended 31 December 2020

1. Accounting policies

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) (2019) (effective 1 January 2019) - (Charities SORP (FRS 102) (2019)), and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The Institution of Structural Engineers meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

Due to the Covid-19 pandemic the Institution has re-forecast its income and expenditure and the impact the changes will have on cash flows for the current financial year extending the forecast period to May 2022. This exercise has been done specifically to determine if the going concern basis of accounting is still appropriate in the preparation of the financial statements. The Trustees having considered the results of this work are satisfied that the business can meet its obligations as they fall due and the going concern basis of accounting is appropriate.

Income

A reforecast of income for 2021 shows group revenue increasing by £333k (4%) compared to the budget for the year which is mainly due to a government grant not included in the budget. Excluding this grant the change is close to nil. Over the 5 months to May’22, with an expected increase in activity, forecast income is expected to rise by £93k compared to budget.

Expenditure

The reforecast shows an increase in costs of £54k (1%) compared to the budget for the year which is in the main due to the costs associated with delivering the services covered by the government grant. Over the 5 months to May’22, expenditure is expected to increase by £259k due to the anticipated return to near normal activities within the Institution.

Staffing

The level of staff costs remains unchanged from budget. To mitigate the impact during the Covid-19 lockdown, a number of staff have been furloughed and their continued cost is supported by claiming the 80% job retention rebate from the government.

The overall position is a surplus of £279k against budget and a deficit of £166k, year on year.

Predicting the impact of Covid-19 is inherently uncertain, however, reforecast represents best estimates based on information at the time, which broadly assumes lockdown measures and significant business disruption until the end of the summer. Additional information on the potential impact of Covid-19 on IOSE can be found within the Trustees Annual Report.

Capital expenditure

The expenditure for 2021 of £556k is forecast to proceed as planned as well as the programme of projects for the period to May 2022.

Cash flow

Factoring in receipts from the government grant and the reduced payments to suppliers, the cash position as at 31[st] December 2021 is forecast to be £3,474k, an increase of £354k compared to budget. The predicted position at the end of May 2022 is forecast to be £4,019k, a year-on-year fall of £361k.

Pension Asset

To reflect the accounting surplus on its (1973) Pension and Life Assurance Scheme, a pension asset is reflected in the accounts, for both the year-ending 31 December 2020 (£799,000), and year-ending 31 December 2019 (£598,000). The amounts noted above are as shown on the Balance Sheet, page A4, under the heading ’Pension scheme funding surplus’.

Basis of consolidation

The financial statements include the consolidation of IStructE Limited, Structural Engineers Registration Limited, IStructE (Asia Pacific) Limited and CROSS-AUS Limited (wholly owned subsidiaries of the Institution) and IStructE FZ LLC (a subsidiary of IStructE Ltd) on a line by line basis. Structural-Safety Limited, a 50% owned subsidiary, is accounted for by including 50% of the net assets. The financial statements of a connected charity, The Benevolent Fund, has not been included within the group consolidation. In addition, the overseas subsidiary IStructE (Asia-Pacific) Limited has not been consolidated as its activities were considered not to be material.

The activities of the international regional groups, together with their assets and liabilities, are not consolidated as being immaterial.

Income

All income is recognised in the Statement of Financial Activities when the conditions for receipt have been met and receipt is probable. The following accounting policies are applied to income:

Donations and grants

Donations and grants are included in the financial statements when the conditions of receipt have been met. During 2020 the Charity received grants of £98,613 in respect of the Coronavirus Job Retention Scheme and £521,962 for work on structural safety reporting.

Page 25/40

Trading activities

Income from publishing, recruitment, catering, room hire and training

Turnover is recognised when the event, product or service has been delivered and the Group has fulfilled its contractual obligations.

Certification and renewal fees

The income from certification fees is recognised on receipt of payment while renewal fees are held as deferred income and allocated to the year to which they relate.

Charitable fees

Members’ subscriptions and fees

Members’ subscriptions and fees due are treated as income when receivable. Amounts received in respect of future years are held as deferred income and allocated to the year to which they relate.

Examinations and professional review fees

The income is recognised in the accounts in the month in which the examination is held with amounts received in advance held as deferred income. Income from professional review interviews is recognised on receipt.

Investment income and gains

Investment income, including any tax recoverable thereon, is included in the financial statements in the year in which it is receivable. The income from the joint venture (Structural-Safety Limited) is recognised as the service is provided based on 50% of the net assets of the Company.

Expenditure

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 and includes irrecoverable Value Added Tax. Expenditure has been allocated on the basis indicated below:

Cost of raising funds

This cost category includes the cost of books sold and the operating costs of the trading subsidiaries.

Charitable activities

This includes all expenditure directly related to the objects of the charity.

Membership and qualification activities

This comprises the costs involved in providing support and services to the members of the Institution.

Technical & professional learning and development

This comprises the costs related to the advancement and development of structural engineering.

Other charitable activities

This comprises the costs of training members and events.

Support costs

These costs represent the staffing and associated costs of finance, IT, and the general building and administration costs in supporting the operational activities for which the charity is responsible and governance costs. Governance costs include external audit, legal advice to the Trustees and costs associated with the Board. These are allocated as detailed in Note 3. The method of allocating support costs is based on headcount using FYE (full year equivalents) to full-time posts, irrespective of whether these posts are filled by permanent or temporary staff.

Fund accounting

The charity maintains various types of funds as follows:

Permanent endowment funds

These funds have been received by the Institution with specific restrictions on their use within the objectives of its Royal Charter and from which the income arising is available for fulfilment of those objectives. These funds comprise various prize funds.

Restricted funds

These funds have been received by the Institution with specific restrictions on their use within the objectives of its Royal Charter.

Unrestricted funds

These are available for the Institution to pursue its objectives under its Royal Charter and comprise:

Designated funds

Designated funds are amounts which have been put aside at the discretion of the Trustees. General unrestricted funds represent funds which are expendable at the discretion of the Trustees in the furtherance of the objects of the charity under its Royal Charter.

General fund

T his represents the undesignated accumulated surpluses from funds available for the general objectives of the Institution.

Page 26/40

Intangible assets

The assets in this category contain the historical cost less amortisation to date of the Institution’s websites. The cost is written off on a straight-line basis at 16.67% per annum.

Tangible fixed assets

Fixed assets are stated at historical cost less depreciation. Equipment renewals due to technological changes are charged to the Statement of Financial Activities. Depreciation is provided at rates calculated to write off the costs less land and estimated residual value on a straight-line basis over their estimated useful lives as follows:

Freehold premises 2% per annum on cost Computers 33.3% per annum on cost Furniture and equipment 16.67% per annum on cost

Investments in subsidiaries

Investments in subsidiaries are shown at cost. Investments in non-charitable companies under a joint venture arrangement are included at fair value, which is the Group’s share of the net assets of the commercial company at the balance sheet date.

Stock

Finished stock and work in progress relates to technical publications and is stated at the lower of cost and net realisable value. Cost comprises the price of purchasing, compilation, printing and binding.

Cash at bank and in hand

Cash at bank and in hand includes cash and short term highly liquid investments.

Pension contributions

The Institution operates two pension schemes as follows:

Contributory final salary scheme

This scheme provides benefits based on final pensionable salary. The scheme was closed during 2002 and future pension arrangements were provided through a group personal pension plan. The assets of the final salary scheme are invested and are totally separate from those of the Institution. Contributions to the scheme are charged to income and expenditure to spread the cost over the employees’ working lives with the Institution. These contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. In accordance with FRS102 a Pension surplus is recognised under certain conditions.

This scheme is being accounted for under FRS102, with the annually calculated notional surplus on the funding of the scheme shown in the accounts as a designated fund entitled “Pension Reserve” which is added to unrestricted funds in the balance sheet.

Group personal pension plan

The plan provides benefits based on contributions made and investment returns. The plan commenced during 2002 following the closure of the final salary scheme. Both the Institution and employees contribute to this plan. The assets of the plan are held in individual polices for each employee and invested and are totally separate from those of the Institution. Contributions to the plan are charged to income and expenditure as incurred. During 2015, new and existing employees who are not in the plan were automatically enrolled unless they have exercised their right to opt out.

Leases

Rental costs under operating leases are charged to the Statement of Financial Activities in equal amounts over the periods of the lease.

Financial instruments

The Institution 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. This is referred to in Note 13.

Current and deferred tax

The tax expense for the year comprises current and deferred tax. The current tax charge is calculated on all taxable income on the basis of tax rates and laws that have been enacted at the reporting date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Critical accounting judgements and estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are detailed below:

Useful economic lives of tangible and intangible assets

The annual depreciation and amortisation charge for fixed assets is sensitive to changes in estimated useful economic lives of the assets. The useful economic lives are re-assessed annually and rare amended where necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

.

Page 27/40

Defined benefit pension scheme asset

The determination of the assumptions used in calculating the defined benefit pension scheme asset is the responsibility of the Trustees. The assumptions are set with regard to advice given by the scheme actuary (see note 22). In this context, significant judgement is exercised in a number of areas, including future changes in salaries and inflation, mortality rates and the selection of appropriate discount rates. Furthermore, a roll forward approach which projects results from the latest full actuarial valuation performed at 31 December 2019 has been used by the actuary in valuing the pension asset at 31 December 2020. Any differences between the figures derived from the roll forward approach and a full actuarial valuation would impact on the carrying amount of the pension asset.

The scheme rules do not include any specific instructions for dealing with any residual surplus in the scheme at the point of wind up. Given the lack of clarity within the rules, significant accounting judgement is exercised in determining to recognise the pension scheme asset on the balance sheet, and also in determining the value of the asset that should be recognised.

Allocation of support costs

Judgement is exercised in determining the appropriate basis to use for each category of support cost when apportioning those costs to the activities within raising funds and charitable activities. Details of the method of apportionment are included within note 3.

Foreign currency

Transactions in foreign currencies are recognised at the rate of exchange at the date of the transaction. Any exchange differences are recognised through the statement of financial activities. Foreign exchange monetary assets and liabilities are recognised at the rate of exchange ruling at the balance sheet date.

2. Donations, legacies and grants

In 2020 the Institution received donations of £47,821 (2019: £46,763) and government grants of £98,613 (2019: £nil). There was no income from legacies in either 2020 or 2019.

3. Investment income

Investment income
	2020	2019
	£’000	£’000
Bank interest	4.9	9.5

4. Analysis of Support and Governance Costs

Basis of allocation Charitable trading Trading subsidiaries Membership & qualification activities Technical & professional learning & development Other charitable activities Total	Management £’000 Head count 27.6 259.8 721.1 185.1 135.4 1,329.0	Legal & finance £’000 Head count 6.9 64.8 179.9 46.2 33.8 331.6	Information technology £’000 Head count 10.6 100.0 277.7 71.3 52.1 511.7	Governance £’000 Head count 4.1 38.1 105.8 27.1 19.9 195.0	Total support and governance costs £’000 49.2 462.7 1,284.5 329.7 241.2 2,367.3	Direct costs £’000 71.4 1,108.9 2,077.3 899.9 408.7 4,566.2	Total £’000 120.6 1,571.6 3,361.8 1,229.6 649.9
							6,933.5

Page 28/40

Comparative figures for 2019

Basis of allocation Charitable trading Trading subsidiaries Membership & qualification activities Technical & professional learning & development Other charitable activities Total	Management £’000 Head count 30.9 185.3 768.9 253.2 188.4 1,426.7	Legal & finance £’000 Head count 6.9 41.2 170.8 56.3 41.8 317.0	Information technology £’000 Head count 9.0 54.3 225.3 74.2 55.2 418.0	Governance £’000 Head count 7.5 44.8 186.0 61.3 45.6 345.2	Total support and governance costs £’000 54.3 325.6 1,351.0 445.0 331.0 2,506.9	Direct costs Total £’000 £’000 63.7 118.0 1,374.7 1,700.3 2,154.0 3,505.0 648.2 1,093.2 760.0 1,091.0
						5,000.6 7,507.5

5. Net income for the year is stated after charging

Net income for the year is stated after charging
	2020	2019
	£’000	£’000
Auditors’ remuneration
For audit services	30.8	25.5
For taxation services	20.8	2.8
Depreciation of fixed assets	362.7	347.8

6. Information regarding employees, trustees and key management personnel

The number of staff (FTE) employed by the Institution throughout the year was 60 (2019: 59) split across the below functions.

Function Charitable trading Trading subsidiaries Membership and qualification Technical and professional learning and development Other charitable activities Support and governance Total Staff costs comprise: Salaries Permanent health Insurance Social security costs Pension costs Staff welfare, training and recruitment	2020 1 8 23 6 4 18 60 2020 £’000 2,614.9 51.5 298.4 281.7 260.2 3,506.7	2019 1 6 22 7 6 17 59 2019 £’000 2,593.6 44.3 279.9 257.1 267.0
		3,441.9

Page 29/40

The number of employees whose total emoluments amounted to £60,001 or above for the year is as follows:

	2020	2019
£ 60,001 - £ 70,000	4	2
£ 70,001 - £ 80,000	1	-
£ 80,001 - £ 90,000	1	1
£ 90,001 - £100,000	1	1
£100,001 - £110,000	1	1
£170,001 - £180,000	-	1
£180,001 - £190,000	1	-

All staff in this category are members of the Institution group personal plan. Pension contributions of £48,272 (2019: £37,302) were paid in respect of these employees.

The Board is drawn from the membership of the Institution. No Trustee received any remuneration for their duties as Trustees (2019: none). Trustees are reimbursed for travelling expenses whilst engaged on the activities of the Institution.

Reimbursements were made as follows:

Reimbursed in 2020 to 12 members of the Board Reimbursed in 2019 to 11 members of the Board

£’000 24.9 88.0

The breakdown of costs incurred for each Trustee is listed below.

e breakdown of costs incurr	ed for each Trustee is listed below.
		Travel & Subsistence	Professional
Trustee	Country of Residence	Incurred	Review Fees	Total
P Terrell (Chairman)	France	2.0	-	2.0
D McQuillan (President)	United Kingdom	8.1	-	8.1
J Kindregan	Ireland	0.8	-	0.8
C Wildman	United Kingdom	0.6	-	0.6
J Entwistle	United Kingdom	0.6	-	0.6
S Jagnarine-Azan	Trinidad	0.4	-	0.4
J Staves	United Kingdom	0.2	-	0.2
V Martin	United Kingdom	0.3	-	0.3
S Pitchers	United Kingdom	0.8	-	0.8
A Ratnaker-Nene	India	3.0	0.1	3.1
M Visser	South Africa	7.1	0.1	7.2
M Byatt	United Kingdom	0.8	-	0.8

In their capacity as members of the Institution Trustees are obliged to pay annual subscriptions due to the Institution. Trustees are entitled to take advantage of the services offered by the Institution and its subsidiary companies, on the same terms offered to all members or to the general public.

Where Trustees or their connections provide services to, or utilise any other services or facilities of the Institution, the amounts paid to or charged by the Institution and based on either:

Standard rates paid by the Institution to members and non-members alike for services such as lecturing; or

Rates negotiated on behalf of the Institution, independently of the member involved, by the Board or their delegated committee, based on competitive tenders or general rates.

The key management personnel of the parent charity, the Institution, comprise the Trustees, the Chief Executive Officer, Deputy Chief Executive and the Chief Operating Officer. The total employee benefits of the key management personnel were £387,267 (2019: £428,389).

Page 30/40

7. Fixed Assets

Consolidated and Charity

Cost Balance at 1 January 2020 Additions Disposals Balance at 31 December Accumulated Depreciation Balance at 1 January 2020 Charge for year Disposals Balance at 31 December Net Book Value At 31 December 2020 At 31 December 2019	Freehold Premises £’000 9,527.9 - - 9,527.9 753.9 148.8 - 902.7 8,625.2 8,774.0	Computers £’000 664.8 43.7 - 708.5 644.5 22.3 - 666.8 41.7 20.3	Furniture and Equipment £’000 182.5 5.5 - 188.0 151.8 27.4 - 179.2 8.8 30.7	Total £’000 10,375.2 49.2 -
				10,424.4
				1,550.2 198.5 -
				1,748.7
				8,675.7
				8,825.0

All tangible fixed assets are used in the activities of the Institution. The trading subsidiaries do not own any tangible fixed assets. Audited accounts of the trading subsidiaries are filed with the Registrar of Companies.

8. Intangible assets

Consolidated and Charity

Cost Balance at 1 January 2020 Additions Disposals Balance at 31 December 2020 Amortisation Balance at 1 January 2020 Charge for year Disposals Balance at 31 December 2020 Net Book Value At 31 December 2020 At 31 December 2019	Websites £’000 1,015.0 171.8 -
	1,186.8
	334.9 165.2 -
	500.1
	686.7
	680.1

Page 31/40

9. Investments in subsidiaries

The group has the following subsidiary trading companies:

Subsidiary undertaking	Principal activities	Net Assets	Share capital held
IStructE Ltd	Various commercial activities	See note 8	£100
Structural Engineers Registration Ltd	A registration service to engineers in Scotland and Jersey	See note 8	£1
IStructE (Asia Pacific) Ltd	To support the Institution’s activities in the area	£0k	£100
IStructE FZ LLC	To support the Institution’s activities in the UAE	See note 8	£28.2k
Structural Safety Ltd	Provision of structural safety reporting schemes	£0k	-
CROSS-AUS Ltd	Provision of structural safety reporting schemes in Australia	Nil	-
Institution of Construction Engineers	Not trading	Nil	-
Association of Construction Engineers	Not trading	Nil	-

IStructE Ltd and Structural Engineers Registration Ltd are 100% subsidiaries of the Institution and incorporated in the UK. Subsidiaries activities have been consolidated into the Institution’s financial statements. As a general policy, the trading companies’ gift aid all their taxable profits to the charity. IStructE (Asia Pacific) Ltd is incorporated in Hong Kong.

IStructE FZ LLC is a Branch office of IStructE Ltd.

Structural Safety Ltd is a company limited by guarantee and is 50/50 owned by the Institution of Structural Engineers and the Institution of Civil Engineers.

CROSS-AUS Ltd is a company limited by guarantee and is a wholly-owned subsidiary of the Institution of Structural Engineers.

10. Results and net assets of trading subsidiaries

Turnover Cost of sales Gross profit Administrative expenses Operating profit before tax Amount donated to the Institution Corporation tax Amount retained by the subsidiary Fixed assets Current assets Current liabilities Net assets and funds	IStructE Ltd £’000 656.4 (274.9) 381.5 (390.2) (8.7) - (8.7) - (8.7) 28.2 262.9 (299.8) (8.7)	SER Ltd £’000 1,102.8 (301.0) 801.8 (329.7) 472.1 - 472.1 - 472.1 - 663.7 (191.6) 472.1	IStructE (Asia-Pac) Ltd £’000 - - (8.1) (8.1) - (8.1) (8.1) - 26.3 (5.4) 20.9	CROSS_ AUS Ltd £’000 5.1 - 5.1 (3.7) 1.4 - 1.4 1.4 - 2.6 - 2.6	IStructE FZ LLC £’000 - - - (0.7) (0.7) - (0.7) - (0.7) - 35.3 - 35.3	Total £’000* 1,764.3 (575.9) 1,188.4 (732.4) 456.0 - 456.0 - 456.0 28.2 990.8 (496.8) 522.2	2019 £’000 2,239.0 (1,005.1)
							1,233.9
							(755.8)
							478.1 (191.0)
							287.1 -
							287.1
							28.2 722.4 (414.0)
							336.6

• Turnover includes inter-company activity of £17.5k (2019: £20.5k) which was removed from the figures shown in the statement of financial activity.

Page 32/40

11. Investment in joint venture

The Charity has an investment in a joint venture run through a company called Structural-Safety Ltd. The company is co-owned by the Institution of Structural Engineers and the Institution of Civil Engineers. The company began trading during 2020. The results and net assets of the company for the financial were as follows:

Turnover Cost of sales Gross profit Administrative expenses Operating profit before tax Amount paid in gift aid Amount retained Intangible assets Fixed assets Current assets Current liabilities Net assets and funds Share of net assets Institution of Structural Engineers – 50% Institution of Civil Engineers – 50% Income from joint venture Share of profit from joint venture Gift aid received during 2020 12. Stock Finished goods 13. Debtors Debtors in respect of charitable services Amounts due from subsidiary undertakings Other debtors and prepayments Other taxation and social security	2020 £’000 401.9 (50.3) 351.6 (96.3) 255.3 (20.0) £235.3 160.2 1.7 156.0 (82.6) 235.3 117.65 117.65 235.3 117.7 10.0 127.7	2019 £’000 - - - - - - - - - - - - - - - - - - Group 2020 2019 £’000 £’000 5.1 5.2 5.2 5.2 Group 2020 2019 £’000 £’000 130.5 133.6 - - 307.4 326.6 1.9 28.5 439.8 488.7	Charity 2020 2019 £’000 £’000 5.1 5.2 5.2 5.2 Charity 20120 2019 £’000 £’000 75.3 46.8 199.6 195.8 291.5 300.4 1.9 28.5 568.3 571.5	Charity 2019 £’000 5.2	Charity 2019 £’000 5.2
				5.2
					571.5

Page 33/40

14. Creditors: Amounts falling due within one year

Mortgage falling due within one year Creditors Other creditors Accruals Deferred income Other taxation and social security	Group 2020 2019 £’000 £’000 122.3 117.6 274.7 344.2 197.0 215.5 175.0 120.1 2,138.1 1,896.1 167.2 127.3 3,074.3 2,820.8	Charity 2020 2019 £’000 £’000 122.3 117.6 208.8 271.3 184.7 220.4 147.5 91.9 2,057.4 1,843.9 84.7 92.7 2,805.4 2,637.8

15. Creditors: Amounts falling due after one year

Mortgage falling due after one year	Group 2020 2019 £’000 £’000 1,166.2 1,280.2	Charity 2020 2019 £’000 £’000 1,166.2 1,280.2

16. Financial instruments

The Institution 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.

Loan is repayable as follows: Within one year Between one and two years Between two and five years After five years	Group 2020 2019 £’000 £’000 122.3 117.6 127.1 122.2 1,039.2 396.0 - 762.0 1,288.6 1,397.8	Charity 2020 2019 £’000 £’000 122.3 117.6 127.1 122.2 1,039.2 396.0 - 762.0 1,288.6 1,397.8

In November 2019, the Board approved an extension to the loan, increasing it to £1.4m, which equals the amount borrowed in 2014. The loan is for 5 years but has a 10- year profiling, which explains why it is fully repayable at the end of 5 years, although rather than a balancing payment, at the end of the 5 years, an additional 5 years will be added to the loan in line with the profile agreed with Barclays Bank. The rate of interest is fixed at 3.86% for the first 5 years, to be repaid in equal instalments until December 2025. At the end of the 5[th] year the rate of interest will be re-negotiated on the amount outstanding for the final 5 years. The purpose of the loan is to finance the business transformation projects planned over the next 5 years. The loan is secured by a first charge on the Institution’s 47-58 Bastwick Street property. The ratio for the loan to property is 15% (2019: 16%).

17. Movement in permanent endowment funds

. Movement in permanent endowment funds
Prize funds Prize funds	1 January 2020 £’000 31.3 1 January 2019 £’000 31.2	Income £’000 - Income £’000 0.1	Expenditure £’000 - Expenditure £’000 -	31 December 2020 £’000
				31.3
				31 December 2019 £’000
				31.3

Page 34/40

18. Movement in restricted funds

Research fund Prize funds EEFIT fund Young Structural Eng. Competition Structural Safety Fib (UK) Barret Prize Fund Pai Lin Li Travel Awards Alsop Fund Research fund Prize funds EEFIT fund Young Structural Eng. Competition Structural Safety Fib(UK) Barret Prize Fund Pai Lin Li Travel Awards Alsop Fund	1 January 2020 £’000 65.8 2.5 24.1 110.6 22.2 34.6 3.6 8.6 10.6 282.6 1 January 2019 £’000 65.3 2.5 25.4 110.3 23.8 29.8 3.6 12.7 14.1 287.5	Income £’000 19.1 - 3.8 0.3 - 18.7 - - - 41.9 Income £’000 16.2 - 3.2 0.3 135.4 22.9 - - - 178.0	Transfer to Unrestricted Funds £’000 - - - - - - - - - - Gift /transfer of assets £’000 - - - - - - - - - -	Expenditure £’000 18.3 - 0.2 - 22.2 16.6 - 1.0 - 58.3 Expenditure £’000 15.7 - 4.5 - 137.0 18.1 - 4.1 3.5 182.9	31 December 2020 £’000 66.6 2.5 27.7 110.9 - 36.7 3.6 7.6 10.6
					266.2
					31 December 2019 £’000 65.8 2.5 24.1 110.6 22.2 34.6 3.6 8.6 10.6
					282.6

Purpose of restricted funds

Name

Research fund

Prize funds

EEFIT fund

Purpose

This fund has the objectives of raising and applying funds for the purpose of enabling research to advance the art, science, and practice of structural engineering.

These funds were raised for specific educational prizes.

This fund is used to support the activities of the Earthquake Engineering Field Investigation Team.

Young Structural Engineer Competition

Structural Safety

Fib(UK)

Barret Prize Fund

Pin Lin Li Travel Awards

Alsop Fund

This fund will be used for competitions for young Structural Engineers.

This fund is used to finance the scheme of Confidential Reporting on Structural Safety and the Standing Committee on Structural Safety.

This fund is to be used for the administration of the UK fib group.

This fund is used to award a prize to the winner of the Young Structural Engineers’ International Design Competition.

The fund is used to award travel bursaries for young engineers wishing to spend 4 to 6 weeks abroad studying current practice or trends related to the use of any construction material in the field of structural engineering.

The purpose of the fund is to support educational bursaries through Starfish Zambia.

Page 35/40

19. Movement in designated funds

Designated funds Prize funds Employee pensions fund Bastwick Street fund England Registration fund Digital Transformation Bastwick Street Maintenance fund Development Fund Designated funds Prize funds Employee pensions fund Bastwick Street fund England Registration fund Digital Transformation Bastwick Street Maintenance fund Development Fund	1 January 2020 £’000 9.7 360.0 5,188.3 100.0 110.8 100.0 615.3 6,484.1 1 January 2019 £’000 9.7 280.8 5,408.1 100.0 225.0 65.0 - 6,088.6	Income £’000 - - - - - - - - Income £’000 - - - - - - - -	Transfers £’000 0.3 40.0 - 52.6 255.2 50.0 334.7 732.8 Transfers £’000 - 79.2 - - (114.2) 35.0 615.3 615.3	Expenditure £’000 - - 198.3 2.6 66.0 - - 266.9 Expenditure £’000 - - 219.8 - - - - 219.8	31 December 2020 £’000 10.0 400.0 4,990.0 150.0 300.0 150.0 950.0
					6,950.0
					31 December 2019 £’000 9.7 360.0 5,188.3 100.0 110.8 100.0 615.3
					6,484.1

Funds are designated for the following purposes:

Name

Prize fund

Employee pension fund

Purpose Period to be used Donated funds to provide educational and examination prizes. When required This fund was designated in 2001 to set aside for ongoing costs which When required are calculated on a triennial basis.

Bastwick street fund

England registration fund

Digital transformation

Bastwick street maintenance fund Development fund

This is to recognise the accounting profit after the sale of the leasehold of When required 11 Upper Belgrave Street, London. Being used to offset annual depreciation charges on Bastwick street.

Established in 2014 to fund the work required to investigate the setting up When required of a Structural Engineer Registration scheme in England.

This is to fund future digital projects.

This is to fund future digital projects. When required Setup to fund the future maintenance work at Bastwick Street. When required This is to fund a replacement for the Institution’s CRM, IT hardware, Next 4 years software upgrades and other development projects.

Page 36/40

20. Analysis of assets and liabilities between funds for the year ended 31[st] December 2020

	Unrestricted	Restricted	Permanent	Total
	Funds	Funds	Endowment	2019
			Funds
	£’000	£’000	£’000	£’000
Intangible assets	686.7	-	-	686.7
Investment in joint venture	117.7	-	-	117.7
Tangible fixed assets	8,675.7	-	-	8,675.7
Current assets	4,698.0	266.2	31.3	4.995.5
Current liabilities	(3,074.3)	-	-	(3,074.3)
Long-term liabilities	(1,166.2)	-	-	(1,166.2)
Pension Scheme Funding Surplus	799.0	-	-	799.0
Total net assets	10,736.6	266.2	31.3	11,034.1
Comparative analysis for the year ended 31st December 2019

Comparative analysis for the year ended	31st December 2019
	Unrestricted	Restricted	Permanent	Total
	Funds	Funds	Endowment	2019
			Funds
	£’000	£’000	£’000	£’000
Intangible assets	680.1			680.1
Tangible fixed assets	8,825.0	-	-	8,825.0
Current assets	3,555.9	282.6	31.3	3.869.8
Current liabilities	(2,820.8)	-	-	(2,820.8)
Long-term liabilities	(1,280.2)	-	-	(1,280.2)
Pension Scheme Funding Surplus	598.0	-	-	598.0
Total net assets	9,558.0	282.6	31.3	9,871.9

21. Taxation

The Institution is a charity within the meaning of Part 1 Schedule 6 Finance Act 2011. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2011 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

22. Pension schemes

Final salary pension scheme

The Institution contributes to the Institution of Structural Engineers (1973) Pension and Life Assurance Scheme at rates set by the Scheme Actuary and advised to the Trustees by the Scheme Administrator. In accordance with FRS102 the scheme is accounted for as a defined benefit scheme. This scheme is accounted for under FRS102, with the annually calculated notional surplus or deficit on the funding on the scheme shown in the accounts as a designated fund entitled “Pension Reserve” which is deducted from unrestricted funds in the balance sheet. The trustees believe that the scheme currently meets statutory minimum funding requirements. The contributions made by the employer over the financial year have been £120,000. In addition, £107,799 was paid directly in respect of charges for the management of the scheme. The scheme is now paid up and following a triennial valuation of the scheme carried out as at 31 December 2013 the Institution agreed to continue contributions of £20,000 per month, payable since January 2011, until 31 March 2018 (inclusive) in order to make up the deficit disclosed at the valuation. A triennial valuation as at 31 December 2016 has been completed and following this the Institution has agreed to pay contributions of £10,000 a month from April 2018.The Trustees note that the deficit or surplus calculated under FRS102 can vary greatly from year to year depending on the assumptions made at the valuation date. In accordance with FRS102 a Pension surplus is recognised under certain conditions.

The assumptions which had the most significant effect on the results of the valuation are those relating to the return on investments and the discount rate used to derive the net present value of the scheme liabilities. The assets of the scheme have been included within this year’s accounts at open market value as at the year end and the liabilities have been calculated using the following actuarial assumptions.

Page 37/40

22.Pension schemes (continued)

2.Pension schemes(continued)
	31 December 2020		31 December 2019	31 December 2018
	% per annum		% per annum	% per annum
Rate of discount	1.35		2.05	2.80
Inflation (RPI)	3.25		3.05	3.45
Inflation (CPI)	2.35		2.35	2.55
Allowance for revaluation of deferred pensions of CPI or 5% p.a. if	3.00		3.00	3.00
less with a minimum of 3% p.a.
Allowance for pension in payment increases of RPI or 5% p.a. if	3.70		3.60	3.80
less, minimum 3% p.a.
Allowance for commutation of pension for cash at retirement	80%	of	Nil	Nil
	Post	A
	Day

The mortality assumptions adopted at 31 December 2020 imply the following life expectancies:

	2020	2019
	Years	Years
Male retiring at age 65 in 2020	21.4	21.8
Female retiring at age 65 in 2020	23.1	23.6
Male retiring at age 65 in 2040	22.7	23.1
Female retiring at age 65 in 2040	24.6	25.2

Present values of plan liabilities, fair value of assets and deficit:

	2020	2019	2018	2017	2016
	£’000s	£’000s	£’000s	£’000s	£’000s
Fair value of plan assets	8,401	8,036	7,172	7,373	7,326
Present value of plan liabilities	7,602	7,438	6.659	7,177	7,269
Surplus/(deficit) in scheme	799	598	513	196	57
Recognised surplus	799	598	513	196	57
Defined Benefit asset / (liability) to be recognised	-	-	-	-	-

Reconciliation of opening and closing balances of the present value of the scheme liabilities:

	Year Ending	Year Ending
	31 December 2020	31 December 2019
	£’000s	£’000s
Scheme liabilities at start of period	7,438	6,659
Interest cost	150	183
Actuarial losses (gains)	238	825
Benefits paid, death in service insurance premiums	(224)	(229)
Plan liabilities at end of period	7,602	7,438

Reconciliation of opening and closing balances of the fair value of scheme assets:

Reconciliation of opening and closing balances of the fair value of scheme assets:
	Year Ending	Year Ending
	31 December 2020	31 December 2019
	£’000s	£’000s
Fair value of scheme assets at start of period	8,036	7,172
Expected return on scheme assets	164	199
Actuarial gains / (losses)	305	774
Contributions by employer	120	120
Benefits paid, death in service insurance premiums	(224)	(229)
Fair value of scheme assets at end of year	8,401	8,036
The actual return on the scheme assets over the period ending 31 December 2020 was (£973,000).

Page 38/40

22.Pension schemes (continued)

Total expense recognised in the statement of financial activities:

tal expense recognised in the statement of financial activities:
	Year Ending	Year Ending
	31 December 2020	31 December 2019
	£’000s	£’000s
Net Interest cost	150	183
Losses (gains) on settlements	(238)	(825)
Total expense recognised in the statement of financial
activities	(88)	(642)
her Comprehensive Income:
	Year Ending	Year Ending
	31 December 2020	31 December 2019
	£’000s	£’000s
Return on plan assets (excluding amounts included in net interest
cost) – gain / (loss)	305	774
Experience gains and losses arising on the plan liabilities:
Amount of (loss) / gain	404	5
Effects of changes in the demographic and financial assumptions
underlying the present value of the plan liabilities:
Amount (loss) / gain	(642)	(830)
Effect of changes in the amount of surplus that is not recoverable
(excluding amounts included in net interest cost) – gain (loss)	14	16
Total amount recognised in other comprehensive income
within the statement of financial activities – (loss) / gain	81	(35)

Other Comprehensive Income:

Pension Asset

To reflect the accounting surplus on its (1973) Pension and Life Assurance Scheme, a pension asset is reflected in the accounts, for both the year-ending 31 December 2020 (£598,000), and year-ending 31 December 2019 (£598,000).

These amounts are shown on the Balance Sheet, page A4, under the heading ’Pension scheme funding surplus’.

Assets:

sets:
	Year Ending	Year Ending	Year Ending
	31 December 2020	31 December 2019	31 December 2018
	£’000s	£’000s	£’000s
Liability Driven Investments	1,273	986	981
Cash	-	11	6
Insurance Policy	2,866	3,202	2,979
Diversified Growth	2,415	2,178	1,827
Absolute Return Bonds/Credit	1,847	1,659	1,379
Total assets	8,401	8,036	7,172

Analysis of the sensitivity to the principal assumption of the value of the plan liabilities:	Analysis of the sensitivity to the principal assumption of the value of the plan liabilities:
Assumption	Change in assumption	Approximate impact on
		scheme liabilities
Discount rate	Decrease by 0.1% p.a.	Increase by 2%
Rate of inflation	Increase by 0.1% p.a.	Increase by 2.0% (of inflation-linked
		liabilities)
Rate of mortality	1 year increase in life expectancy	Increase by 4%

The best estimate of contributions to be paid by the Institution to the scheme for the period beginning after 31 December 2020 is £120,000 per annum and is based on the current arrangement in place between the Institution as employer and the Pension Trust who manage the scheme. This will be reviewed in line with the next triennial valuation due at the end of 2022 at which time the impact of COVID-19 on the scheme’s assets will be reassessed.

Page 39/40

23. Related party transactions

IStructE Ltd

The company undertakes activities relevant to the profession of structural engineering which either the Institution of Structural Engineers as a charity is unable to undertake or which can be more effectively conducted through the company. Key activities are the sale of advertising space in the institutions journal, acting as an agent to sell the Institutions technical publications, and selling sponsorship for Institution events.

	2020	2019
	£’000	£’000
Sales	72.8	10.9
Purchases	75.0	4.8
Management charges from the Institution of Structural Engineers	335.7	432.5
Intercompany balance (Debtor)	122.5	149.3
Structural Engineers Registration Limited
The company promotes and manages schemes for the registration of individuals and organisations engaged in the certification of structures in
Scotland and Jersey.

	2020	2019
	£’000	£’000
Management charges from the Institution of Structural Engineers	293.3	231.7
Charitable donations to the Institution of Structural Engineers	-	191.0
Intercompany balance (Debtor)	77.2	46.5
Structural Safety Limited
The company provides a reporting service on issues to do with structural safety.
	2020	2019
	£’000	£’000
Sales	162.6	-
Purchases	324.4	-
Management charges from the Institution of Structural Engineers	83.0	-
Charitable donations to the Institution of Structural Engineers	10.0	-
Intercompany balance (Debtor)	71.2	-
IStructE (Asia Pacific) Ltd
The purpose of the company is to facilitate and support the activities of the regional groups in the Asia Pacific area..
	2020	2019
	£’000	£’000
Grant from the Institution of Structural Engineers	-	14.4
IStructE FZ LLC
The purpose of the company is to facilitate and support the activities of the regional group in the United Arab Emirates.
	2020	2019
	£’000	£’000
Grant from the Institution of Structural Engineers	-	6.2
CROSS-AUS Ltd
The purpose of the company is to provide structural safety reporting on schemes in Australia.
	2020	2019
	£’000	£’000
Grant from the Institution of Structural Engineers via the Australia Regional Group	4.2	3.7

24. Analysis of changes in net debt

Cash and cash equivalents Cash Borrowings Debt due within one year Debt due after one year Total	At the 1st January 2020 £’000 3,375.9 (117.6) (1,280.2) (1,397.8) 1,978.1	Cash flows £’000 1,174.7 109.3 - 109.3 1,284.0	Other non- cash changes £’000 - (114.0) 114.0 - -	At 31st December 2020 £’000 4.550.6 (122.3) (1,166.2)
				(1,288.5)
				3,262.1

Page 40/40

25. Consolidated statement of financial activities – comparative figures Year ended 31 December 2019

Note Income Donations and legacies Income from trading activities Gross income from charitable trade Trading subsidiaries’ income Income from charitable activities Membership and qualification activities Technical & professional learning and development Other charitable activities Investment income 3 Total income Expenditure Cost of raising funds 4 Cost of charitable trading Trading subsidiaries costs Charitable activities 4 Membership and qualification activities Technical & professional learning and development Other charitable activities Total expenditure Loss on translation of foreign entities Net income/(expenditure) before tax 19 Corporation tax Net income/(expenditure) after tax Actuarial gain/(loss) on final salary pension scheme 22 Net movement in funds for the year Reconciliation of funds Total funds brought forward Total funds carried forward	Unrestricted Funds £’000 30.8 136.1 2,218.5 5,050.0 - 273.5 8.7 7,712.6 118.0 1,700.3 3,505.0 910.3 1,091.0 7,324.6 (5.9) 387.1 - 387.1 (35.0) 352.1 9,205.9 9,558.0	Restricted Funds £’000 16.0 - - - 161.2 - 0.8 178.0 - - - 182.9 - 182.9 - (4.9) - (4.9) - (4.9) 287.5 282.6	Permanent Endowment Funds £’000 - - - - - - 0.1 0.1 - - - - - - - 0.1 - 0.1 - 0.1 31.2 31.3	2018 Total £’000 46.8 136.1 2,218.5 5,050.0 161.2 273.5 9.6
				7,895.7
				118.0 1,700.3 3,505.0 1,093.2 1,091.0
				7,507.5
				(5.9) 382.3 -
				382.3 (35.0)
				347.3 9,524.6
				9,871.9

All the above results are derived from continuing activities. All gains and losses recognised in the year are included above.