The Institute of Economic Affairs (A Charltable Company Llmited by Guarantee) TRUSTEES, REPORT AND FtNANCIAL STATEMENTS for the year end¢d 31 March 2022 Company Registration No. 755502 Registered Charity No. 235351 The Institute of Economic Affairs TRUSTEES. REPORT REFERENCE AND ADMINJSTIiATtVE DETAILS Company Registration Number. 755502 Clwity Registration Number.. 235351 TRUSTEES Neil Reci)rd Kevin Bcll Christian Bjornskov Robert Boyd Linda Edwards Robin Edwards Sir Mi¢ha¢l Hintrc Profcssor Patrick Minford Bruno Prior Professvr Martin Ricketts Linda Whetstonc Chairniati Tr¢a8ur¢r De¢e&8¢d 15 D¢cemb¢r 2021 DIRECTOR GENERAL Mark Littl¢wood ACADEMIC & RESEARCH DIRECTOR Jam¢s boid¢r SECRETARY Andrcw May¢r RBGISTERED OFFICE 2 Lord Notth Strcct Westminstcr London SWIP 3LB AUDrroR Str¢¢ts Audit LLP Chart¢r¢d A¢eountants & Statutory Auditor l Mark Squar¢ Shorediteh London EC2A 4EG BANKERS B￿ClaYS Bank PLC Leicesier LE87 2BB INVESTMENT MANAGERS CCLA Investment Managcmcni Limited Vanguatd Asset Managemeni Page I The Institute of Economic Affairs TRUSTEES. REPORT The Trustees pr¢s¢nt their report togcth¢r with th¢ financial statements of the Institute of Economi¢ Affairs (IEA) for the year cnded 31 March 2022. The financial statements Comply with the Charities Act 2011, The Compani¢s Act 2006, the Memorandum al￿ Articlcs of Association, and Accounting and Reporting by ChaTiti¢s: Statement of Recommcnded Practice applicable lo charities prepanng thcir a￿Ount9 in accordance with th¢ Financial Reporting Standard applicable in the UK and Republi¢ of Ireland (published October 2019). STATUS Th¢ Institute of Economic Affairs is a charitable company limited by guarantee. Thc Institute was ¢stsblished through a trusr deed in November 1955 and incorporatcd in 1963. It was set up under a Memorandum of Association wbich sets out its obj¢¢ts and power5 and As governed undcr its Articles of Association. It is a regist¢r¢d ¢h8rity No. Ca235351. STRUCTURE, GOVERNANCE AND MANAGEMENT Th¢ IEA is managed by its Dire¢ior GenernL Mark Littl¢wood. who oyersees all aspects of its affairs and is r¢$ponsible for achieving its goals. He rwrts threc tim¢s a year to the full Board of Trust¢cs and more frequently to its Finance and GeneTal Purposes Committec, comprising th¢ ¢onu￿1ttee chaiM￿n. Bwno Prior, th¢ Cha]rn￿n of th¢ Boarf Neil Record, the Tr¢Lgurer, Robin Edward$, and board Lnember, Robert Boyd. These individuals also serv¢ as the Audit Committee. Decisions about the level and mix of activities arc mad¢ by the Trustees. about detailed day-tfvday operations by senior staff, sometimes with advice from the Fillanee and General Purposes c.ommittee. Two of th¢Tnkstee5. the Cbairni￿ of the Board, Neil Record, and the ChaArnllD of thc Finance and General Purposcs Committee, Bruno Prior. forn) a SU1￿coMMittee which revi¢ws the Director General's perfornmncc annually. Three of the Trustees, the ChaiTn]all of the Board, Neil Record, Kevin Bell, and Litida Edward$, together forni a Nominations subcommitte¢ which recommends polential Trustees to the full Board from time to time. OBJECTIVES AND ACTIVITIES The charity's main aims are to promot¢ learnitig by M¢￿S of research into economies and politics and to improve public understanding th¢reof. We try to athi¢v¢ our objectives by means of thc activiiies listed bclow, which include allocated support costs. A¢ademic prograrntn¢s: Research, publi¢2tion and launch evcttts Studenvteacher outrea¢ Special events Communi¢alion and distribution, including digital and media Fundraising and subscribcT SUPPOrt (more details of our appro&ch are pmvided below). PUBLIC BENEFIT As detailed above, the charity's main aims are io promote learning by means of research into economics and politieq and to improvc public understanding thereof. W¢ bring analysis of i￿ueS relating to politi¢ economy to the public's ottentioll through our various a¢ademic prO￿arn￿¢S 2nd other activities. Trustees ¢onfym thaL ID exercising th¢ir powers atKY fulfilling their responsibiliti¢$ in pursuit of th¢ aims dcs¢ribed above, they hav¢ paid due regard to thc guidance on public benefit publishcd by the Charity Commission. Page 2 The Institute of Economic Affairs TRUSTEES, REPORT FUNDRAISING Thc IEA is cntircly indcp¢nd¢nt of aDy P)liti¢al party or grnup, and is funded by voluntary donations from individuals, companies and foundations who want to support Its work plu% a small amount of incomc from subscriptions, event partllersbips and eonterences, plus book$ sales al￿ inve$th*nts. Th¢ IEA docs noi ¢ommer¢ial fundrais¢￿ nor carry oui mass mailingl¢ommuni¢ations ¢xcNi5es. Most donors come to the IEA unprompted or via third party recommendations. Where the JEA s¢¢ks prosp¢¢tiv¢ donors to pro-actively reach out io, this is done using published data from the Ele¢tornl ComTnis$ion and Similar orgatiisations. Donors are communicated with in the fornydt and with th¢ frequency they Prefer. Intrrnal proto¢ols cxisi to desist from communicating with donors who have ceased to donate and bave not responded to fi]rth¢r communication. New donors are investigated to the best of the IEA'S ability to that donatiOll5 have nol come from government organisalions and are from people or organisations of good gthnding. A diligent approach is thken to ensure that all donations ore int¢nded, not accidcnial or from someone who may not understond the lll￿re of the dollaiionthey are glving. Tbe IEA bas r¢eeiv¢d no Complaints rcgarding ils fi￿dY4]S}￿g a¢tiviti¢s. REVIEW OF ACHIEVEMENTS The IEA, like many orgaDisatioDS, speTht the start of the year responding lo Government Tegulations around what events we could have. who we could mee( aDd where we could work. Our prepaTation for hybrid working in thc prior ycar however proved a wise inveslment. We maintained a strong and growing level of digital ouwut through the restrictions. were intluential on thc pace of thciT rcl&xation, and emerged stronger acro&8 all our areas of work. We wer¢ able to return to in-person evcnts at 2 Lord North Streel and elsewhere. Our edu¢ational content expanded on s¢v¢ral platforms. YouTub¢ views moTe than quadrupled to 2.3 million, almost ten times those pre-cofvid. This was in part thanks ￿ a range of ncw output I￿ludIng. Thc Swift Half hosted by Heod of Lifestyle E¢onomi¢s, Chri￿Opher Snowdon, Markets and Morality hostcd by Head of EPICENTEIL Adatn Bartba. Parallax Vi¢w5 hosted by Head of Cultural Allairs, Marc Glendening and The Doublc T&kc h05frd by Hcad of M¢dii Emily Carvcr. The IEA'S UK publLC affairs outreach hit n¢w highg in 2021. DespAte ongoing restrietions for part of the year, IEA staff were abl¢ to m¢et with 75 Parliamentarians (of all parties) to discuss fr¢¢ mark¢t ideas. The diversificalion of the UK broadcast landscape, notably the launch of GB N¢w$ and TalkTV. has increased opportunities for IEA comn￿lltary, direct to the publtc, and a growing number of new conlmentators, for example Chief Operating Officer and Energy Analyst. Andy Mayer on the energy crisis and Head of Public Policy, Matthew Lesh on thc wideT Cost of living. We continuc to gmw ourpr¢s¢n¢e on the BBC and Sky News, flagship shows, including BBC Polities Live, BBC Question Timc. BBC PapeTS. Sky News Pres5 Preview, and our spokespeople regularly appear on SkyNews' Uncommon Ground and The Great Debate, as well as LBC Cross QuestiOD. The IEA'S publishing programme also continued strongly under the leadership of a new Academic and Research Diiector. James Forder. W¢ r¢leased 30 pieces of r¢search across a wide range of topics. from football regulation (the IEA paper Red Card? discussed the government's plans to introduce an independent regulator for English football) to the Im￿rtanC¢ of import8 for the UK economy (The Importance of Impons). We significantly Stren￿bened our international outreach. a prioriiy since the sad passing of IEA Trustee and hero of the international libcrty movcrncllt Linda Whctstou¢ in Dcc¢mbcr 2021. A tireless campaigner and advocate for fr¢¢dom. sh¢ will bc misscd. This y¢ar th¢ IEA, paTts¢ring with The Vinson Centre at the University of Buckingham, launched the lllitiative for African TTade and Prosperity which has alreAdy s¢¢ured 13 think tank parttlers in different countries. IATP works with them and individuals to promo1¢ fre¢ market, I￿al. and bottom-up soluuons ts) the issues (4ciug th¢ contin¢nL Epi¢¢n¢er has aiso continued ils excellentwork advan¢iDg free maTkets 4cross EuTOP¢, publishing 21 pieces ofTes¢arch Ipap¢rs andbri¢fings) Page 3 The Institute of Economic Affairs TRUSTEES, REPORT and ho%ling, or speaking at 38 cy¢nts. The IEA was chosen as a finalist of the Atlas Network's Tcmpleton Freedom Award, & global awaTd that r¢cognises contributions to the understanding of fr¢¢ entrtprise and th¢ public policies that cncourage prosperiry and human flourishing througb free comp¢tition. Domestically* our student and education outreach continued to engage witb a vast number of students. Thirty young peopl¢ participated in our three-month internships, a more than 30￿/0 incrcase on a decade ago, and mor¢ tlwi l.(H)O studcnts were reached as part of our Summer Education Programme. The end of restrictions also allow¢d us to hold our Freedom We¢k evenL allowing 32 thdents trj participatc in a week-long series of lectures from top academics in Cambridge. FtNANCtAL REVIEW Total income for thc year was £2,565,000 (2021 (15 months).- £2,343.0(Kl) and totsl expendi￿re was £2,349,000 {2021.. £2,328,000)- After taking ac¢ount of gains on investments of £IOO,000 {2021- £35,000). there was a net increase in fi￿d$ of £316,000 (2021: £50,000) in thc ycar. Restricted income was £275,000 (2021.. £400,000} compared with eX￿nditUre on restricted projccts of £403,000 (2021.. £279,000). Investment in¢om¢ on the Ralph HarTiS Endowment Fund during the y¢ar amounted to £22,000 (2021: L24,000). Total n¢t assets were increased to £3,342,(K)0 (2021: £3.026.000). The financial ststements, tog¢th¢r with the notes thereto, expand on thcse outlinc detsils. The Finan¢¢ and General Purpos¢s Coinmitt¢e, and the full Board of Managing Trustees, regularly rcview thc aThouni of donations. There has b¢¢n a 13O/fj increase in the amount of donations in thi5 y¢ar, compared with thc 15 month period 202012021. Wc are gratefi]I to all our donor8 for supporting our work. GRANT MAKfNG POLICY The Trustees make occasionAI grants to indiTrTrduals to support their research and to attend collf¢r¢n¢¢s. Th¢s¢ are often from restricted funds donated spccifi¢ally for such puryyoses. From time to time grants may be made to other in5tityt¢$ where thc Trnstees think it approprtaie. All such pmjects are ass¢ss¢d by r¢f¢rence to ow mission. INVESTMENf AND RESERVES POLICIES Th¢ Institute's educational mission has a long-terni orientatioD, as noted above. whereas our abiltty to carry out our work depends on attracting annual donations itt a highly competitive ￿nd-raising environment. Accordingly. the Tn￿ee$. poli¢y is to invest conservativ¢ly. largely in equity funds, fixed intcrest funds and government securities. The Ralph Harris Fund is invested with a long-tcmi time horizon. Th¢ Treasurer and th¢ Finance and Gcneral Purposes Committee re8lllarly review invcstment results. During the p¢riod, the value of the investm¢nts rose by 90/• Tel￿1ve to a rise in the FfsE I(K> Index of120/.. The Tntslees, policy on reserve4 whi¢h is reviewed aDnually> ?8 to have sufficient liquid funds on hand to cover Iwo mollths of budgeted expenditure, whi¢b amounts to approximately £450,000. We believe tbis is adequate, undw nomial circumstallC¢& lo ¢nable us to maintain op¢rations in the evcnt of seAsonal or othcr fluctualions in donations anwor expcnditur¢. This target bas been m¢t in thai there was ¢a5h at bank and in hattd of £1,009,000 at the year-end plus the ¢a$h deposits held within thc Ralph Harris Fund of £699,000 whi¢h are available to endow the positton (yf the Director Gcncral of th¢ IEA. A transfer of £200,000 has been made during the p¢riod in this respect. Th¢ Trustees do not seek to accumulate rcscrvc$, bttt ratber to apply donations in support of the Institute's programmes in accordance with donors. intent. The free resenres of the charity #s at 31 March 2022, dcfined AS being unrestricted. undesignthd funds not rq)resented by tangiblc fixed agsets, &mountcd to £689,000 {2021: £152,000). RISK REVIEW The principal risks and uncettainties ￿ whicb the IEA is exposd are r¢putational,10ss of key personncl, and financial. Page 4 The Institute of Economic Affairs TRUSTEES, B￿PORT Reputalional risk centres on the quality and integrity of the Instituie's res¢ar¢h and publi¢alion$ and other activities. All the IEA'S major publications are peer reviewed. The system was managcd in thc p¢riod by the Academic and Research Director and supervised by the Cbainnan of our Acad¢mic Advigory BoariL ProfessoT Martin Ricketts. The IEA maintains stri￿ indeperLdeDce from Commercial, party political OT otherintereAts. It does not accept ¢ommissions to perform rcscarch on bchalf of commercial or govenlln¢ntsl iDler¢sts. The perfomwi¢¢ of key P¢T50nn¢l is rcvicwcd at Icast annually> either by the Director General orby a small ¢ommitte¢ of T￿￿(¢¢5. lcd by ih¢ Chairn]an, to assess whether both the employer's and ¢mployees' obj¢ctiv¢s are being satisfied. As with any small orgabis￿l0tt. At is not possible to completely protect against the loss of key people. Financial risks and uncertainties are largely covered by the Reserv¢s and Inv¢stm¢nt policics notcd above. Th¢ Trustccs ¢xamine at least once a year th¢ major $trat¢gi¢, op¢ntional and fuJan¢ial risks and uncerlainties which the Institute faces, either at r¢gular or spe¢ial BoaTd medings. or through the Finance and General Pwoses Committee. FUTURE PLANS In 2022-23, th¢ IEA intends to cement the su¢¢¢ss of thc prcvious year with further investsnent in our r¢spe¢t¢d pUbli￿tiOnS programme, which will produ¢c high4alibre research on hcalthcare. the regulatory environment, energy and clin)&te change, lifestyle issues atxl more. through ourextensivc studcnt and teacher outr¢a¢h pmgr4mm¢ and through our ¢onipr¢hcn5iVC con]muDicakn"ons Strategy. Page 5 The Institute of Economic Affairs TRUSTEES, REPORT TRUSTEES The following were Trust¢cs (who are director$ for the pvn)oses of company law) at the time of signing this report and fmaDciai statements. They all h¢ld office throughout the year ¢ndcd 31 March 2022 and up to the date of signing this r¢po¢ unless otherwise stated. Neil Record Kevin Bell Christian Bjornskov Robert Boyd Linda Edwards Robin Edwards Sir Micbael Hintze Prof¢$sor Patrick Minford Bruno Prior Prof¢88or Martin Ricketts Linda Whetstone Chairman TTeasurer Deceased 15 D¢¢¢mber 2021 None of tbe Trustees has an inl¢r¢st, direct or indirect, in any contract entered into by the InSti￿tr. The Trust¢es may from time to time, and at any time, appoint any person to be a Tnlstee, up to th¢ prescribed M￿lmuM of twelve. Appointments are nonnally made on the reconuncndation of thc Nominations Committee. Any Trustee so appointed retains offE¢e until th¢ next A[￿Ual G¢n¢ral MeetiDg, and is th¢n ¢ligiblc for re-clcction on a three-year rotating basis. New Trusteey are 'trained' mostly on the job by attending tncetings of Trustees. They are provided with notes covering th¢ Institute's mission, history, organisation* governan¢¢ and detsils of thc other Trustces, togcthcr with the latest Tn]slees' Rcport and Financial Sthtcments. Newly appointed Trust¢es will usually already bavc 5ub$tantiai board Icvel or deparunental management experience in ciiher th¢ commercial OT academic arenas. PAY POLICY FOR SENtOR STAFF The perfornIa￿Ce of kcy p¢rsotll)el is reviewed at Icast annually, either by the Director General orby a small ¢ommittee of Tmstc¢s. l¢d by the Chairnwl. Pay increases and bonu￿5 ar¢ awardcd to reward merit Decisions regarding pay levels are infonncd by ref¢r¢nce to other think thnks and also comparabl¢ positions iti related sectors. TAXATION STATUS The Charttablc company 18 a registered clwity and, &8 such, for taxation puryoses is entitled to ¢x¢mption uud¢r the Income and Corporation Taxcs Act 1988. Pdge 6 The Institute of Economic Affairs TRUSTEES. REPORT AUDITOR A resolution to r¢appoint Str¢¢ts Audit LLP, as auditors will b¢ put to the members at the annual general me¢ting. The TTUStees have taken advantage of the exemptions available under the small eompanies, regime from the requirement to prepare a strategic report and in preparing the Trustees, Report. By order of the board Neil Record Chairman Page 7 The Institute of Economic Affairs STATEMENT OF TRUSTEES, RESPONStBILITIES The Trustees (who arc also direetois of the Institu* of Economic AffaiT5 for the purpxiseg of company law) are responsiblc forpreparing the Trnstees, Report and the financial statem¢nls in aceordance with applicablc law and Unitcd Kingdom Accounting Standards Wnited Kingdom Generally Accepted A¢¢ountlDg Practiee). Compally law requircs the Trustee8 to prepare financial statements for cach financial year which give a true and fair view of the ￿ate of affairs of the charitable company and of the in¢omin8 resources and application of r¢sources, including th¢ income and cxpendithre, of the ¢haritable company for that period. In prep￿Illg Ihose fmancial statements. th¢ Trnstees are requircd to.. select suitable accounting poli¢ics and then apply them consisteDtIy> obscrve the methods and principles ill the Charities SO1￿. make judg¢ments and estimatrs that are reasollable and prnde stat¢ whether applicable #¢o)unting standards hav¢ b¢en followed, subject to ony material departures disclosed and explained in the fJnanciaE statements. and prepar¢ th¢ flnancial statcmertts on the going concern basis Unl￿ it is anappropriat¢ to presume that the company will continue in busin¢sS. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time th¢ fina￿181 position of the charitablc company 8md enable them to ensure that the fllwlcial ststements comply with the Companics A¢t 2006. Thcy are also respornsible for safcguarding the assets of the charitable company and hence for taking reasonable steps for the preventiott and detection of fraud and othcr irregularities. In $0 far &q the Trnstees are 4war¢'. th¢r¢ is no relevant audit inforn)ation of which the charitable coMp￿Y'S auditor is unaware" and the Trustees have tak¢n all steps that th¢y ought to have takcn to make themselves awar¢ of any rel¢vant audit iDfornMtion aDd to estsblisb that thc auditor is aware of that infornutioTh. By ord¢r of the board Ncil Re¢ord Chairnian Page 8 The Institute of Economic Affairs INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE INSTITUTE OF ECONOMIC AFFAIRS For the year ended 31 March 2022 Op5nion We have audited ihe fin￿¢la1 statements of the Instituie of Economic Affairs. ('the Charity.). for the year ended 31 March 2022 which comprise the Statement of financial ￿tiVitIes, the Baiance sheeL the sL￿¢[nent of Ldsh flows and the related notes. it]cluding a summary of significant acL(Trunting policie¥. The fjnancial rq)orting framework thai habbeen applied in theirprepardtion is appliuable law dnd United KiDbwdom AcLounting Standatds, including Financial Reporting Standard 102 'The Financial Reporting Siandard applicable in the UK and Republi¢ of Ireland, (Uniled Kingdom Generally A¥cep￿1 Ac¢ouniing Pr4wiice}. In our opinion ihe financial srarements.. give a trne and fairview ofthesi￿eor the charitable company's affairs as at 3 l March 2022 andof its incoming resources and applicaiion of r&8ources, including its income and cxpcndiDJrc, for ihc ycar then ended-, have been properly prewared in accordallce with Ulli￿d Kittgdom GencTally Accepted Accounting Practicc". and have been prepared in ac¢oTdaJKe wilh the Companies Aci 21￿6. Ba$i$ for opinion We conduced our audit in a￿OrdanCe with International StaDdards on Auditing (UK) USAS (UK)) and applicable law. Our r¢sEY)nsibiliries und¢r those standariLs ar¢ fvrther d¢6cribed in the Auditor's responsibilities for the audit of th¢ financial statwn¢nts s¢¢tion of our report. We are independent (Trf the ¢haritabl¢ company in acc4)rdan¢¢ with th¢ ethical requirements that are relevant to our audit of the financial statements in the UDited Kingdom. includin¥ the Financial Rewrting Council's Ethic￿ Standard and wc have ￿lfIlled our other ethical resTon&ibilities in aL¢oTda￿te with these requiTements. We ￿lIeVe that ihe audii evidence we havc obtainLYl is suffiLient and appropriaie tt) provide a basi& for our opiniotj. Conclusifjns rel4¢iDg to going concer In auditing ihe financial stat¢m¢nts, we have Conclud￿ that the trustees, we of ihe going Concern basis of a¢counting in the pr¢paration of th¢ financial slatements is appropriate. Based on the Work we have Wfonne￿ w¢ h4ve not iden1ifi￿l any material uncerraintie5 Telaung to eyents or Conditions that, individually or collectively, tnay casi sigwficant doubt aboui the chaxitable company's ability to contillue as a going concern for a period of at least nvelve months from the date when rhe fJnallci41 siatement&' are authorised for issue. Our re$ponsibiliti¢s alld the r￿p0￿51b￿lltl¢s of the trLhSt¢es with respect t(Tr going ¢oll¢¢rn ar¢ d¢5CTib¢d in the r¢leYallt Sections of this report. Other i*forrng41ioD Th¢ truste¢& ar¢ responsible tor ihe other information. Th¢ other infornJation wmpris¢s the itrfornurion included ID the Annual report other than the financial statements and our Auditor's report thereon. The trust¢¢s ar¢ respon5Lble foT the other infotmation contained within the TTU5tees' Report. Our opinion on th¢ r]nan¢iJi 5tstcments doe5 Tlot cover the othet infotmation and, exctpt to the extent otherwise explicitly stated our report. we do expre￿ any forni ot &ssuranGe ronclu5ioll thereon. In conneL¢iOll wilh our audit of the fin￿LIa1 statements. our responsibility IS to lead the other intomiation in duing so. consider whether the othei infvmiation is maierially incon51Stent with the fiylancial 5tattments', ur our knowledge obtaKned in the courbe vf the 4tudit or vihenvise appeats to be maierially rni551aied. If we identify such. aterial inconsistencies or apparent material Tlli55tatements. we ait requiTed tsi determine wheth¢T there is a aÈerial misbtatement in the financial State￿ents or a mateTial Tni5StatemeDt uf the uther information. If, based on th¢ work we have p¢rfornied, we conclude that there ts a material rnisstat¢ment of tbis otheT infonnalion, we are required to reJx>rt that fact. We have nothing to ttport in thi$ regard. Page 9 The Institute of Economic Affairs INDEPENDEwf AUDITOR'S REPORT TO THE MEMBERS OF THE INSTITUTE OF ECONOMIC AFFAIRS For tbe year ended 31 March 2022 Opinion on other matters prescribed by the Complnles Aet 2006 In our opinion, based on the work undcrtaken in the course of the audit: the inforniation givcn im thc Trusl¢¢s' report for the financial year for which the financial stat¢meniS are preparaj is consistenl with the financial statements.. amd the Trustees, Repon h&s been prepared in acc4)rdancc with applicable legal rcquircments. M8tters on whlcb we are r¢quired to report by ¢x¢eption In the light of our knowledge and understanding of the charitable compalhy and its environment obtained in th¢ COUTse of the audiL we have not identified material misstatements in the TTUSt¢es' re￿rt. We have nothing to reportin reSp￿tOf the followin8 matters in relationto which the Companie5 Act 2006requires us to re￿rt to you if, in ouropinion: adequate ac¢owiting records have not been kept, or rcturns adcquate for ow &udit have not been received from branch¢s not visited by or the financial statements are Dot in agreement with the accounting records aTKi returns" or certain dI￿lOsUre$ of trusi¢es' rernuneration Specificd by law are not made; or we have not receiv¢d all the inforniation and explanations wc require for our audit- or the trnslees w¢r¢ not entltled to prcpare the financial staiemcnts in accordance with the small con]panies' regime and take advantage of the small companie5. ¢x¢mptions from the requirement io prepar¢ a Strategic Responsibilltles Of ¢TUStees As explained more fully in the Trustees, ￿spOnSIbl11ties statemen¢ the tNsttts (who arc also the direct(rs of the charitable company for the putposes of cotllpaDy law) arc Tcsponsible foT thc preparation of th¢ financial statemenis and for being satistied that they give a true and fair view, and for such inteTnal control as the trustees determine is necessary to enable the preparation of financial statcments that are fre¢ from rnaterial misstatement, whether due to fraud or ¢rroT. In preparing the financial statements, the trystee5 are ￿sPonSIble for &ssessing the charitable company's ability to continue as a going ¢on¢¢rn, disclosing, as applicable, matters relat￿ to going Conccm and using the going conccrn basis of accounting unless the tjustees either intend to liquidate the charitable Company or to ¢¢ase operation4 orhave no realisti¢ altetnative but to do so. Audltor'g responslbilltles for the audit of the financial ststement Our objects.ves are to obtain r¢asonable a&suran¢e about whether the financial stat¢ment$ as a whole arc free from mat¢rial m155tatemenL wh¢iher due to fraud or ern)r, attd to issu¢ an Auditor's report that ineludes our opinion. Reasonable a55ufdn¢e is a high l¢vel of assurance, but Ét 15 not a guarantee that an audit conducted in a¢cordan¢e with ISAS (UK} will always d¢te¢t a materidl mi5Statement when it exi51s. Mi%statemenls &qn arise from fraud or error and are ¢onsid¢r¢d material if, individually or in the aggregate, they could r¢asonably be expected to iDfluente the economi¢ decisions of us¢rs taken on the basis of thcse financial stat¢m¢nts. Our approach io id¢ntifying and assessing risks of material mi&stitement in respert of irregularitie8 iu¢luding fraud and non•C4)mplianr¢ with laws at)d regulations, was as follow5.. the engagement partner ensured that the audit engagementteam collertively had the approprlate ornpetence, capabilitie5 and skills to identify or recognise nonthcompliance with applicable laws and regulations,. we identificd the laws and regulatioTSS applicable lo the charity through discussions Wjth ttu$tees and other manag¢ment and from our knowledgc andexperien¢e of the chariry and sector inwhich it operates; we fou]5ed on 4xcific lawg and regulations which we considered rnay have a direct mat¢rial effeci on th¢ financial statements or the operations of the charity including the Companies Act 2(rf>6, taxation legislation. dats protection, employmcn¢ environmental and health aTMI safery legislation: we assessed the extent of compliance with laws and regulations identified abov¢ ihrough making enquiries of management and iT]5PCCting l¢gal ¢otrespondenc¢. if requircd- and identifLed laws and regulations were communicated within the audit team regularly and the team retnained alert to Instances of non-compliance throughout the audlt. Page 10 The Institute of Economic Affairs INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE INSTITUTE OF ECONOMIC AFFAIRS For the year ended 31 March 2022 We a8sess¢d the susceptibility of the ¢harity's financial stalcm¢nts to material misstsiement. including obtaining undcrstanding of how fraud mhght occur, by.. making enquiries oFmanagement as to where they considered there was 5U5ceptibility to fraud. their knowledge of actual. suspected and alleged fraud.- and onsidering the internal controls in place to mitigate risks of fraud and non-compliance wlth laws and regulations To addre&% the ri&k of fra￿ through mana¥¢m¢nt bias and ov¢rrid¢ of controls, W¢.. performed analyllcal procedures to identify any unusual or unexpected relationships: Ic$ied journal entrieb to identify unusual tran.%actions' reyiewed 8 sample of srants in the yeaT to en&ure accurate recognition,. agreed a sample of employees on the payroll to existence and agreed the accuracy of the pay., assessed and reviewed the appropriatcncss and cffcctiveness of the key systems and controls: assessed whether judgemenis and assumptions made in detcrmining ihe accounting cstimatcs sct out were indicative of polenlial bias; and investlgated the rationale behind significant or unusual transactions. In respon5C to the risk of irrcgulaTitie5 ar¥J on-compliance with laws and regulations. we d¢si8ned procedures which includcd, but wcre not iimitcd to.. agreeing financial statement disclosures to underlying supporting documentation: reading the minui¢s of meetings of those charged wilh governanLf' enquiring of management as to actual aTMI pOtc￿lia1 litigation and ¢18im$- and reviewing correspondence with HMRC. relevant regulators and the charity5 legal advisor& Thcrc are itthercht limitalions irt our audit procedures described abov¢. The rn0￿ r¢mov¢d laws and regulations frotn f]nancial transactions. the less likely it is that wc would bccome aware of non-compliaD¢e. Auditing siandards also limit the audit procedurts required to idcntify non-compliance with laws and r¢gulations to ¢nquiry of the tNstees and other management and the inspeclion of regulattsry and legal eorrcspormkncc, if any. MAierial misstatements ibat arise due to fraud Can be harderto detect th8rt thosc ihat arise frorn ¢rror as thcy may involve deliberate toThcealment or collusion. A thrtber descriptlOD of our r¢S￿nSibl11tieS for ibe audit of the financial siatemenis is located on the Financial Re￿rtIng Council's websi* at hii .'Ilwww.frc.or .uklauditorsr¢s nsibilities. This descripti(*n forrns part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body, in a¢¢ordan¢¢ with Chapter 3 of Part 16 of the Companies Act 2006. audit work has been undertaken so that we might 5ts1e to lh¢ charitsble company's membersthose mattrrs we are required io state io them in An Auditor's report 8nd for nooih¢rpurp)sc. To the thllest extent pemiitted by law. we do not accept or assume responsibility to anyon¢ other than the charitable {ompany and it's members &s 2 body, tor audit worK for this report. or for the opinions w¢ havc fomied. ROBERT AfJDERSON (Senior sta￿lOry Auditor) for and on behalf of Streets Audii LLP Chartered Accountsnts and Stththtory Auditor l Mark Square Shoredit¢h London EC2A 4EG D￿¢.. 31 October 2022 Pogell The Institute of Economic Affairs STATEMENT OF FINANCIAL ACTMTIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 March 2022 U1￿¢Stricted fun(Ls R¢stri¢t¢d fimds £000 Enduwmeot Total Total fund 2022 2021 £000 (12mths) (15mths) £000 £000 Noi¢s £000 tNCOME FROM.. Donations Charitable activities: Publications and Sub￿riptiOnS Special events Oihcr trading activities CJRS Income lttvestmcnts: Dividends receivabl¢ Interest receivable Foreign exchange gain 2,148 275 2,423 2,150 52 52 43 54 12 54 12 30 93 22 22 23 TOTAL 2.268 275 22 2,565 2J43 EXPENDITURE ON.. Raising FLmds'. Fundraising and subscTiber support Charitable a¢tiviti¢$- ALademtc programme.. Rebearch and Publications Studentne￿hcr outreach Special Events Communications 298 299 367 591 386 l8 653 270 94 861 480 18 691 927 380 83 571 38 TOTAL 1,946 403 2,349 2,328 Net Gain5 ort Investments.. Realised gains on disposals Unrealised gains 49 51 49 13 22 NET (EXPENDITURE INCOME 322 (128) 122 316 50 Trdnsftrs betwccn funds 200 {2￿) NET MOVEMENT tN FUNDS 522 (128) (78) 316 50 RECONCILIATEON OF FUNDS: TOTAL FUNDS BROUGI FORWAIID 11.12, 13,14 873 241 1.912 3,026 2,976 TOTAL FLfNDS CARRIED FORWAiiD 11,12. 13,14 ,395 113 1.834 3.342 3.026 Page 12 The Institute of Economic Affairs BALANCE SHEET As at 31 March 2022 Company Registration No. 755502 Registered Charity No. 235351 Noles 31 March 2022 31 March 2021 £000 FIXED ASSETS Tangible assets Investhients 536 1.790 551 1,889 2.326 2,HO CURRENT ASSETS Debtors Cash at bardt and in band 273 1.009 108 660 ,282 CREDITORS.. Amounts falling due within one year 10 (266} (182) NET CURREwf ASSETS 1,016 586 NET ASSETS 3.342 3,026 THE FUNDS OF THE CHARITY: Endowment fimd 11, 14 1,834 1.912 RestTiCted funds 12,14 113 241 UnTcstricted fimds 13,14 .395 873 TOTAL FUNDS 14 3,342 3,026 Th¢ finan¢ial sto¢¢m¢nis hav¢ bccu p￿par¢d in accordance with tbe provisions applicabl¢ to companies subject to the small ￿mpanieS, regime. Thc financial slatcmcnts on page5 12 to 25 were approved by the Trustees al￿ authorised for issu¢ on *. Octhw.. 2022 and arc signcd OD thcir bchalf by". Neil Record Chainnan Poge 13 The Institute of Economic Affairs STATEMBNT OF CASH FLOWS For the year ended 31 March 2022 2022 2021 (12 months) (15 months) £000 N¢t c&sh generdted frony/(u8ed in) operats.ng activiti¢5 (A) 133 86 Cash tlows from invcsting activities.. Dividends and interest Proceeds from sale of iDvesm]¢nts Purchase of investments Purchase of fixed asscts 22 273 (74} {5) 24 550 (377} (6} Net cash provided by inv¢$ting activities 216 191 Chang¢ in casb and cash equivalents in the pcriod Cash and cash equivalent5 at l April 2021 (l January 2020) (B) 349 660 277 383 Cash and cash ¢quivalents at 31 March (A) RECONCILtATION OF NET ￿COME/{ExPEND1TuRE) TO NET CASH USED IN OPERATIONS.. Nct incomcl{expenditure) for the reporting period (as per the statement of financial activities) 3)6 50 Adjustsnents foT: Depreciation charges Gains on inv¢51Jn¢nts Dividends and int¢r¢st Oncrease)IDcKrca8¢ in debtors In¢re&sel(Decrc￿j in creditors 20 (i(K)) (22) (165) 84 23 (35) (24) 2(K) (128) Net cash generated froml(used in) operating activities 133 86 (B) ANALYSIS OF CHANGES TN NET DEBT Cash at bank and in hattd at l April 2021 (l January 2020) Cash flow 660 349 383 277 Cash at bank and in haod at 31 March I,(Ki9 660 Page 14 The Institute of Economic Affairs ACCOUNTING POLICIES BASIS OF ACCOUNTING AND GOING CONCERN The Institute of Economic Affairs (IEA) is a charitsble company limited by guaraniec, and is r¢giqt¢re domiciled and incorporated in England. Its registered office is 2 North Street. Weskninster, London SWIP 3LB. The tinancial sts￿ments have been prep￿ed under the historical cost convention with items rccogniscd al cost or transaction valuc exccpt for investments which are recognised al mark¢t valu¢. The fllwicial statements have been prepared in accordance with the Ststement of Recommended Pra¢tii¢: Acc4)unting and Reporting by Charities preparing their accounts in accordance wilh the Financial R¢porting Standard applicable in the UK and Republic of Ireland (FRS 102), effective October 2019, the Charities Act 2011, and the Companies Act 2006. The Insti￿te conSti￿teS a public benefit entity as detined by FRS 102. Thc T￿￿1¢cS confirn] thal at thc timc of approving thc financial staiements, there is a reasonable expe¢tstion that tbe Institute has adequate resources to continue in operational existene¢ for th¢ foreseeable fviure. In arriving at this conclusion, the T￿￿tee5 bave reviewed budgets and cash flow forecasts covering a peTiod to 31 March 2024, takcn account of curTcnt and anticipated financial perfonnatLce in the cuThent economic ¢onditions. and thc Jnsiilute's rcs¢rv¢$ position. For this reayon, the going concern basis continues to be adopted ill the preparation of the Institute's fllhancial stAt¢ments. TANGIBLE FIXED ASSETS Fixed a&8￿ are ststed at histori¢al cost, less depr¢¢i2ti0n. Depr¢¢iJtion is providcd Im tsngiblc fixcd assets, othcr than freehold land, at rates calculared io write each ASS￿ down cvcnly ovcr its eXp￿ted useful life. as follows:_ FT¢¢hold propety ov¢r 40 y￿5 Offic¢ equipment OV¢T 3 y¢ars Expendiwr¢ of a capi(al natur¢ below £l.000 is not capitalised, bui charged ¢0 the Statement of Financial Activities in the year of expendittwe. ST(￿Ks AND WORK IN PROGRESS No valu¢ foT a¢¢oun¢s pu￿￿$¢8 is attribu*d io stocks of unsold publication$. PENSION CONTRIBUTIONS The Insti￿te op¢rat¢s a d¢fuJed ¢onttibution schem¢. CoJ)tiibutions charged to tb¢ Statement of Finati¢ial A¢tivitics on an aC¢n￿lS basis. Amounts payabl¢ at the p¢riod ¢nd ar¢ includ¢d iu oth¢r crcditors. COME ]ncome from donations is included in income when these have been pledged by the donor, it is PTobabl¢ that thc incomc will bc reecivcd and thc arnount can be mc&8urcd rcliably, cxccpt: when donors specify that donalions given to the charity must be used in futur¢ a¢¢ounting p￿iods, th¢ in¢ome is deferred until those periods. when donors impose conditions, which have to be fulfilled before ibe charity becomes entitled to usc such in¢om¢, thc income is d¢f¢rr¢d and not included in income until the preryconditions for use havc b¢en mct. Subscription incomc 1$ credited ￿ income for the Sub￿riptIon tKriod covered. All otheT income including income from investments is credited to incom¢ when rcceivablc by thc charity. Income received from the goven]ment Coronovirus Job Rdention Scheme (CJRS) has been recogniscd on a receivables basis. EXPENDITURE All expenditure is accounted for on an accruals basis and has been classified under headings that aggregA all costs related to the ¢ate80ry. Charitabl¢ cxpcnditur¢ compris¢s thos¢ ¢osls in¢urr¢d by th¢ ¢harity in th¢ d¢liv¢ry of its activities and services for its beneficiaTies. It includes both costs that can be allocated directly to such activities and thos¢ costs of all indirect nattwe necessary to support them. All costs are allocated between expenditure ekt¢gori¢s on a basis designed to reflect the use of the resource. Costs relating to a particular activity 4W¢ allo¢at¢d diTectly. Support Costs in¢lud¢ ¢entral functions and hav¢ b¢¢n allo¢a*d to activily ￿sICal¢gon¢S on 4 busis Page 15 The Institute of Economic Affairs ACCOUNTING POLICIES consistent wtth the use of resources ¢.g. by floor space. Staff costs bave been auochted according to the lime spcnt on each activity. FoR￿IGN CURRENCY Assets and liabilities denominatrd in foreign curr¢nci¢s ar¢ translated at the rate of exchange rnling at the balance sheet date. Tran8a¢tions in foreign curr¢n¢i¢s are recorded at th¢ rate Tuling at the dat¢ of the transaction. All differences arc taken to the Statement of Fina￿1￿1 Activities. RESEARCH EXPENDITURE Research exp¢ndilwe is written off in the financial statemcnts gs it is incurred. ENDOWMENT FUND The Ralph Harris Fund ig an expendable endowment fund whose use is restricted to fioancial support for the position of the Dir¢¢tor Generdl, including ¢mploymcnt and support wsts. UNRESTRJCTED FUNDS unrestr1c￿d funds comprise those fithds which the Tn￿te¢S ar¢ fr¢e to use for any purpose in fvrtbcrats¢¢ of Ihe charitablc obj¢ctives. Designated ￿ndS aTC unrcstricled ￿ndS which the Tn￿teeS have currently designatcd for sp¢cifi¢ purposes. General funds are urtre.qtrict¢d fuDds for which no specific putpos¢s have been designated. RESTRICTED FUNDS Re5tiictcd funds are those donated to the tnstitute for one or mor¢ Specifi¢ purposes. oPERAT￿G LEASES All operating leas¢ r¢ntsls are r¢¢ognised in the Statemcnt of Financial Activities on 8 Straight line basis over the life of the lease. FINANCIAL tNSTRUMENTS The charity has chosen to adopt sc¢tions I l and 12 of FRS 102 in rcspect of financial instruments. The charity only has fll)ancial assets and financial liabilities of a kind that qualify a5 basic financial instruments. Flnancial assets: Basic financial asse￿ in¢luding investn￿nts held a5 fixcd ass¢ts, and trade aDd othcr r¢¢¢ivables, are it)itially Tecognised at transaction PTi¢e. Inv¢stm¢nts held as fixed assets ¢omprise equities, open-¢nded funds, r￿ed inter¢st s¢curities #nd currency and are stated at year end markct Value (bid-price). Realis¢d gains and105scs on disposaI and unrealised gains and losses due ￿ thc movement in markct value of investments arc r¢cognised in the Stst¢ment of Financial Artivitie& Other fu)ancial assets arc asSeS￿d at the end of ¢ach re￿rtIng period fr*r objective evid¢n¢e of in)pairnicnt due to reduction in th¢ recoverable amount. Any impairnient 1055cs ar¢ recognised in the Statement of Financial A¢tivities. Financial liabilities: Basi¢ fllwicial liabillties, including tradc and other payables are initially recognised at trallsaction price. Any subsequent Changes to amounts payable are recogDised in the Stlltement of Financial A¢tivities. TTade payables are obligations to pay for goods or services that have be¢tL acquired in the ordinary course of business from supplicrs. Ac¢ounts payable are classifi¢d as cutrent liabilities if paym¢nt is due within onc year or less. CRITICAL ACCOUNTING ESTIMATES AND ARF.AS OF JUDGEMENT Estimates and judgements are continually ¢valuated and are based on historical exp¢ricnce and other factors, including cxp¢¢tstions of future events that aTe believed to ￿ reasonable under the circumstances. Ther¢ are no critical accounting estimates and arcas ofjudgement included within these ac¢ounls. Page 16 The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022 STATEMENT OF FtNANCIAL ACTIVITIES- COMPAIL4TIVE FIGURES (15 months) UrLr¢stricted fi]nds Restricted nds £000 Endowment fimd Total 2021 £000 Notes £000 INCOME FROM: Donations Charithble Activities: Publications and Subscriptions Sp￿la] ¢vents Other trading activiti¢8 CJRS Income Investments.. Dividends receivable IntLYCSt Teecivable 1,750 4(Kl 2,150 43 43 30 93 30 93 23 23 TOTAL 1.919 400 24 2.343 EXPENDITURE ON.. Raising Funds.. Fundraising and subscribcr Sup[￿)rt ChariTable adivities.. Academic programme.. R¢8earch and Publications StlldcnLTeacher Outreach Speci¥l Event CvmmuniLaiiuns 367 367 814 219 83 566 927 380 83 571 161 TOTAL 2.049 279 2,328 Net Gains on Investrients: Realised gains on disposals Unrealised {losses)Igaitis 13 22 22 NET (EXPENDITURE)IENCOME (130) 121 59 50 Transfers benveen fjjnds 241 (241) NET MOVEMENT IN FUNDS iii 121 (182) 50 BECONCILIATION OF FUNDS. TOTAL FUNDS BROUGHr FORWARD 11,12 13,14 762 120 2,976 TOTAL FUNDS CARRIED FORWARD 11,12 13,14 873 241 1,912 3,026 Page 17 The Institute of Economic Affairs NOTES TO THE F￿ANCIAL STATEMENTS For the year ended 31 March 2022 DONATIONS 31 March 31 M8r¢h 2022 2021 (12 months) (15 months) £wo £000 Foundations. corpora* and individuals Restricied Unrestricted 275 2,148 400 1,750 2,423 2.150 ALLOCATION OF COSTS 2022 (12 months) DiTect costs Support ¢osts 2022 Total £000 £￿)0 Fundraising and subscrib¢r supp Re.%earch and Publications Studentryeacher Outr¢a¢h Special EvenL8 Communications 20 238 104 279 623 376 18 543 299 861 480 18 691 148 510 1,839 2,349 ALLOCATION OF SUPPORT COSTS 2022 (12 months) Personnel costs Office costs Prop¢rty wsls Trdvcl Losts 1,568 189 62 20 1,839 Support¢osts have been allocated as follows: Support cosls P¢rsowiel costs Funthaising and subscriber support Publicaiions Studentrfeacber Outreach Special Events Communications 29Q/ 210/ Puge18 The Institute of Economic Affairs NOTES TO THE FINANCtAL STATEMENTS For the year ended 31 March 2022 Direct costs Support costs 202J Total £000 ALLOCA TIONOF COSTS2021 (15 monihs) £000 £000 Fumdraiying and subscribersupporl Research amd Publicatiu Sthdent/Teacher Oulreuch Special£veNts Commt4nicatious 15 120 48 352 807 332 85 498 367 927 380 83 571 73 250 2.072 2,328 ALLOCA TIONOFSUPPORT COSTS 2021 (J5 months) Persortnel costs Office costs Property cosls Travel costs 1.852 143 70 2,072 Supp(Jrt costs huve been allocÉUedasfollows.' Suppoyl costs Penonnel eosts Fundraiging andsubscriber support Research and Publications Siudentryeacher Outreach Special Events Communications ]7•/. 390/0 16% 16/0 NET EXPENDrruRE 31 March 2022 (12 months) £000 31 March 2021 (15 months) £O(KJ Net ¢xp¢nditure for th¢ period 15 Statcd aft¢r chargiDg= Depreciation- charge for period Governance Costs- Auditor's TemuDerdtio OthcT Govcrnanc¢ Costs ttg81 fees Operaiing lease rents]s- plani and ma¢hin¢ry 20 23 19 12 16 Page 19 The Institute of Economic Affairs NOTES TO THE FtNANCIAL STATEMENTS For the year ended 31 March 2022 TAXATION Th¢ Institute is not liable to corporatt.on tax on its income and gains in the current ￿riod to the extent that they are applicd for charitable puryJosc$. EMPLOYEES 31 March 31 March 2022 2021 {12 months) (15 months) No. The averdgc monthty numb¢r of persoThs cmployed by the Institut¢ during the [KrI￿ was: Offic¢ and managemcnt 20 20 31 MaTch 31 March 2022 2011 (12 months) (15 months} £000 £000 Staff cosls for above persons: wag￿ and salaries, including benefits Social security costs Oth¢r pension costs 1,065 117 40 1,294 143 90 1222 1,527 The number of employca whose emoluments as d¢fined for taxation purposes amouttted to over £60,000 in the 15 month period was as follow$: 31 Mar¢h 31 March 2022 2021 (12 months) (15 months) No. £60,001- £70,0(K> £80,001- £90,000 £90.001- £100,000 £ioo,ooi - £1 io.o(M) £190,001- £200,0(M) The employecs earning over £60,000 participate in tbe company defined contribution p¢nsion heme. Contnbutions paid in thc period in respect of these cmployees amountcd to £45,787 (2021: £56,545). The key managemcnt personnel of the Institutc ¢omprise the Trustees. together with the Dir¢¢tor G¢n¢ral, Ibe Chief OperAtittg Officer, the Academic & Research Direcior, the Chief Mark¢ting & Creative Officer and the Development Director. Thc toial cmployee benefits of these key management personD¢I were £558,672 (2021.. £586,460), ittcluding pension and social qecurity costs, and also ¢on$ultancy fees paid to the Academic & Res¢ar¢h Dircctor 2nd the Chief Markcting & Creative Officer who provide tbeir setvices on a ¢onsultancy ba5jS. No TTUSte¢& orp¢rsons related orconnected io them. reccived any remuneration orr¢imbursement of exp¢nses from the IDstitut¢ durAn8 the period, other than &$ detailed in note 17 below. Page 20 The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022 TANGIBLE FIXED ASSETS Freehold propcrty Office ¢quipment £000 Totsl Cost l April 2021 Additions in year Disposals in year 965 974 (2) (2) 31 March 2022 965 12 977 Depreciation l April 2021 Charged Eor period Released on disposals 419 18 423 20 {2) (2) 31 MaT¢h 2022 437 442 Net book value 31 March 2022 528 536 31 March 2021 546 551 FIXED ASSET INVESTMEwrs Op¢n-¢nd funds Cash held 00 deposit £000 Totsl Mark¢t value at l April 2021 Additions Disp)sals Jnvestsnent gains .137 752 74 (127) 1,889 74 (273) 100 (146) 100 Markct valuc at 31 March 2022 699 1,7 Historical cost at 31 March 2022 889 699 1.588 Historical cost at 31 March 2021 9¥6 752 1,738 Page21 The Institute of Economic Affairs NOTES TO THE FtNANCIAL STATEMENTS For the year ended 31 March 2022 DEBTORS 31 Mar¢h 31 March 2022 2021 (12 months) (15 months) 'rrade debtors Taxation re¢ov¢rJble Prepayments and accrued income 109 58 158 50 273 108 io CREDITORS.. Amounts falling du¢ within on¢ ye 31 March 31 March 2022 2021 (12 months) (15 monihs) £000 Tradc ¢reditOTS Taxation and social security Othcr CTeditors AecnBls and deferr¢d incorne 95 32 Is 33 23 108 139 266 182 Deferr¢d in¢on* has ari$en as a result of 2 ycar subscriptions paid in advance. Amounts are released to th¢ Statement of Finon¢ial Activities withintheperiod towhi¢h the subscription relates. 31 March 31 March 2022 2021 (12 months) (15 months) £￿0 Defcrred it)¢ome at l April 2021 ( l January 2020) Released lo Statement of Financial Activities in pcriod Defe￿ed in p¢ri(wJ 108 (108) (i) Deferred incJ)me at 31 March 2022 I I EXPENDABLE ENDOWrtENT FUND At l April 2021 Investmcnt In¢ome Transfers betwccn funds £000 Investment At Gain5 31 March 2022 £000 £000 £￿0 Ralph Harris Fund 1,912 22 (200) loo 1,834 The Ralph Hurls Fund bas been established as on exp¢ndable endowment fi￿d to Cndow the p05ltion of Director General of the IEA &q"Dir¢ctor General ajd Ralph Harris Fcllow." Page 22 The Institute of Economic Affairs NOTES TO THE FTNANCIAL STATEMENrs For the Ye￿ ended 31 March 2022 12 RESTRtCTED FUNDS Atl April 2021 £000 At31 March 2022 £000 Income £(KJO Expenditure £0( (4) (95) Events and PublicatTons Richard Koch Brcakthrough Prize Roof Restoration Futhd CUItt￿al Afia￿S Unit Trade Unit Regulatory Affairs Unit Lifesyle Eeonomics IATP 40 34 55 55 {55) {15) (8) (6) (23) (6) {44) {38) Student Outreach and Opportunity European Network Think Tent Vinson Centre at th¢ University of Buckin8ham M Fund 75 38 36 21 80 46 (67) (42) 38 241 275 (403) Donatiuns were r£ceived to support vaTiQUS ¢v¢Thls and publi¢ations. The Rich4Lrd Koch Breakthrough prize will be awarded ID acomp¢tition £on¢eming innovative Free-markei Br¢JkthTough poliLies. DoDation8 were rK¢iv¢d in reswnse to a fundraising appeal to cover the costs of e￿ential roof repaiy worf( in th¢ nexi financial year. The IEA hag specialist whA¢h examine and report on cultural affair5, irade and con)pciition, regulatory affairs and lifestyle economics. The Initiative for African Trade and Prosperity (IATP) is guided by the core belief thst bottom-up fr¢¢ market p)licies are the most effective way io alleyiate poverty. amplify liberty and cratc a morc peac¢ful future. The IEA'S Stud¢nt Outreach Programme aims to spread understanding of free markeis and thelr benefits to students, and includes a Student Opportunity Fwid to provide financial support to students who otherwise couldn't ac¢¢ss IEA PTogramme8. Donations were Teceived to support a network of public p)Iicy Organisations from European countries. Donations were received to e5tsbli5h a marquee, Think Tent, organised wilh ty40 other think tanks, to be the tentrthl point for free market debate at the Conservativ¢ Party CoDf¢r¢n¢¢. The VirLSon Centre at the University of Buckingham se¢k5 to firth¢r th¢ S￿dY of liberal e¢onomics in the The M Fund wa5 set up to promote research In￿ the reduction in the size of the public srftor and to promote interest in market economy policies on the part of teachers and senioT pupils. Poge 23 The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ¢nded 31 March 2022 13 UNRESTRtCTF.D FUNDS Atl April 2021 £000 At31 March Income £000 Expenditwe £000 Trdnsf¢rs £000 2022 D¢si8nated FU￿￿S Fixed Asset Fund Major Building WoTk5 Fund 546 170 (18) 528 170 Dcsignoted unr¢stri¢ted funds Unrestrided g¢n¢ral tsnds 716 157 (18) {1,928) 698 697 2268 21)0 873 2,268 {1,946) 21)0 1.395 The Fixed Asset Fund represents donatlOD5 made to the Inslithtc currently designated and used by th¢ Trustees for the purwse of acquiritjg freehold and ittvestsnenl propcrty. A transfer has been made beiween the Fixed Asset Fund and general funds in order to reflect the deprc¢iation of the freehold PToperty itt the period. Funds were designa*d to undertake major building works which werc origittally planned to be undertaken in 2020 but delayed due to the Coron0vin￿ Pandemie. Unr¢stricted general funds r¢pre5ent free r¢setv¢s 8fter allowing for all dcsigttated fimds. 14 ANALYSIS OF NET ASSETS BETWEEN FUNDS Designated Funds General Restiictsd Endowment Funds funds fi￿d £000 £000 £000 Total fimds £000 Fwjd balat)ceb at 31 March 2022 are represented by.. Tangible fixed assets Inve6tments Current assets Current liabilities 528 536 1.790 1.282 {266) 1.790 170 955 (266) 113 Total nct a8scts 698 697 1,834 3,342 15 PENSION SCHEMES The Institute operates a defincd contribution scheme and contribuiions to the scheme are M￿1¢ to Ott indepcndwt insurance company. The pension costs of th¢ I￿tt￿te,8 scheme arno￿￿ted to £40,225 (2021.. £90.034). There were no ontrÉbuiions outstanding at the end of the period (2021.- £22.750). Page 24 The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2022 16 STAI'US Th¢ Institute is a ¢ompany limited by guarantee and bas DO share Capithl. The Institute had 10 (2021: I l) memb¢rs at the period ¢n