The Institute of Economic Affairs (A Charitable Company Limited by Guaran*c¢) TRUSTEES, REPORT ATr4D FINANCIAL STATEMENTS for th¢ y¢ar ended 31 MaTch2023 Company Registration No. 755502 ReEiStered Charity No. 235351
The Institute of Economic Affairs TRUSTEES, REPORT REFERENCE AND ADMtNISTrATEVE DEfAILS 755502 Charity Registration Number: 235351 TRUSTEES Linda Edwards Neil R¢wrd Kwin Bell Professor Christian Bjornskov Robert Boyd Thomas Harris Robin Edwards Pmf¢&sor Patrick Minford BTh0 Prior Professor Martin Ricketts Chatrnian- appointed 20 Juty 2023 Chairnian- resigt)ed 20 Juty 2023 Appointed 9 Matth 2023 DIRECTOR GENERAL MarkLittlewo(Ml ACADEMtC & RESEARCH DIREoR James Ford¢r SECRETARY Andrew Mayer REGIsRED OFFICE 2 Lord North Street Westminster London SWIP 3LB AUDITOR Streets Audit LLP Chartered Accountants & Sialutory Auditor l Mark Square Shoreditch London EC2A 4EG Barclays Bank PLC Leicester LE87 2BB Inveslment Management Liniited Vanguard Asset Manag¢ment Evetyn Partners Investment Managers LLP (EPIM) Page I
The Institute of Economic Affairs TRUSTEES, REPORT The Tnte¢S pr¢sent their report together with the financial statements of the Inslitute of Economic Affairs UEA) for the yeaT ended 31 March 2023. The fina141 statements compty with the Charities Act 2011. The Companies Art 2006, the Memorattdum 3lld Arti¢l¢s of A550cIatio and A¢¢ounting and Reporting by Charities: Statement of Recommended Practice applicable to chariii¢s preparing their accounts in a¢cordance with the Financial Reporting Standard applicable in the UK R¢public of Ireland (published October 2019). STATUS The Institu1¢ of Economi¢ Affairs is a ¢lwitsble company limit¢d by guarantee. The Institut¢ was established througb a trust deed in November 1955 and incorporated in 1963. It w&% set up wjder a Memorandum of AsSllatiOn which sets out its objects and powers and is governed under its Articles of Association. It is a registeTed thty No. CC1235351. STRUCTURE. GOVERNANCE AND TrAANAGEMENr The IEA is mallaged by its Director GeneraL Mark LIttl¢woo who oversees all &8pe¢ts of its affairs is responsible for achieving its goals. H¢ reports three tim¢s a year to the Board of Trustees and more frequently to its Finance and General Purposes Committee, comprisiDg the ¢onuDittee Chainnafy the Chairman of the Board, the Tre&sur¢r. and a further boardmember. These individuals also seTV¢ as the Audit Committee. Decisions aFKiut the l¢v¢l and mix of tiVItieS are made by the Trste¢S. about detsiled day-t day operations by Sl0r staff, sometimes with advice from the Finance and GeneTal ]knposes Committee. Two of the the chairm of the Boar(L amd th¢ Chairnian of the Finance and G¢neral Purposes Conllnittee, forni a sulpconywttee which reviews the Director Ga*rai'$ perforniance annually. Three of the TnLStees, including tk Chairnian of the B(Yar¢ forni a Nominations S0mMIttee whi¢h r¢wmmends potenliai TDJStees to th¢ full Bo&rd from time to time. On 12 October 2023. th¢ Board of TnLSt¢es anThouD¢ed the appointment of Tom Clough¢rty the new Executive Directorand RalphHaTris Fellow. Tom Clougherty replaces the oulgoingDirectorGeneraL Mark Littl¢wood. wh) will kcome Senior Economics Fellow. Matt Littlewood steps down after a distinguithed 14-year tenure as Director General of the IEA. leading ap¢riod ofremarkabl¢ rejuvenation and growth. Tom Cloughety will assume the role in D¢ber 2023. The charity's maill are to promote learning by means of research into economics and politics and to improve public understanding thereof. We ty to achieve our obje4tives by means of th¢ artivitie5 listed tlow. which include allocat support costs. Academic programmes.. Researcfy publtcation atld launth events Studentlteacher outre&h Special events Communication and distribution, includllw digital and media Fundraising and subscriber support (more detsi]s of our approach are provided below). PUBLIC BENEFIT As delailed above. the charity's main aims are to promote le8Jning by means of research into economics and politics and to improve public understanding thereof. We bring analysis of i&su¢s relating to political economy to the public's att¢ntion through ow various academi¢ programmes and other activities. Trustees Lx)nfirni thai in ex¢]sIng their powers and fulfilling their responsibilities in pursuit of the aims Page 2
The Institute of Economic Affairs TRUSTEES, REPORT de8cnlyed they have paid due regard to the guidance on public benefit published by the Charity Commission. FUNDRAISNG The A is etttirely independent of any political party or group. and is fiulded ty voluntary donations from individuals, companies and foundations who want to support its work plu5 a small amount of inwme from sub5criptioJkS. event partheTships and ¢onference& plus books sales and investments. The IEA does not use cotnmereial fiMdraI nor carry out mailinglcommunications exercises. Most donors come to the IEA unprompted or via third paty re¢onTrmendatiow. Where the IEA seeks prospective donor5 to pactively reach out to. this is done using published dats fmm th¢ B110raI Cotnmission and similar organisalions. Donor5 are communicated with in the forntst and with the frequey they preftr. Internal protocols exist to d¢sist from communicating with donors who have ceased to donate and have not responded to further ommunicatiorL New donot5 are investigated to the best of the IEA'S ability to ensure that donations hav¢ not come from government organisations and are from Fwle or Organ&tIOnS of 8ood st2ndin& A diligent approach is laken to ensure that ail donations ar¢ inl¢nd¢d. not accidental or from someone who tnay notunderstandthe nature ofthe donationthey aregiving. Th¢ IEAh&s Te(¥ivednocomplaints regarding its fundraising activitie& REVIEW OF ACHtEVEMENTS We pr(ydu¢ed 32 new peer-reviewed publications - coverin8 a wider range of topical illeS including: regulation, the e4)st of living and inequality. climate policy. trnde transporL ¢ducatio health and public auditin& and the erosion of frecsrrtch. These and p8St IEA publications were downloaded moTethan 90.000 t1¢5 from our website. WAth 'AJ thtroduction to Capitalism, alone downloaded 2.500 times. This book is now a130 available in Frets¢ Indon¢sla BosDi8n, Nepalese, Korean and Greek. In partrshiP with John Wiley & Sons Ltd and the University of Buckingham we continue to publish the academic Journal. Economic Affaits, three times a year. The Journal. in print since 1980 is provided in harthopy to university libraries and otheTwise downloaded around 70,000 times a ye&r. Our readers and contiibutOTS come frojll a wsde range of backgrounds and disciplines. not least those working in think tanks, research institutes, and universities as well &s international organisatioD5 5uth as the OECD. Re¢ent well know names who have been published in th¢ journal include Lavnence Summers, Mervyn KI Ed Balls and Ruth Kelly. Our Educational Outreach progrdmmes ntinUe to go from strength to strength. In 2022123 we hosted or ran: 350 summer sdents. 36 full-titne internships" 9 schools conferences. 2 teacher Semill and engaged directly with over 3.500 students and 1,200 teacher5. We decled our relationthip with the University of Buckingham through the cfrfounded Vinson Center foT the Public Understandtng of FKonomics & Entrepr¢n¢utship. We aWded the firs¢ thspiring Freedom Award, to Vemon W. Hill Il for his outstanding contTibution to the Lnstitule's student education progra¢. We established the tEA AcAdemy P&thway, translating first contact wilh our m¢diaoutput and YouTub¢ content into publication4 )ferenceS. summer camps. course& and internship5. Therewere 5.265 mediahits in2022123. an average ofover 14 8 day. and some 43Yohigherthan our previous r*ak in 2019. The team saw the departure of Emily Carv¢T to GB N¢ws and Annabel D¢nh8m to the Telegraph. joining our growing 01 of alumni with promising careers in British medi W¢ invested £75,000 in IEA Stydios, enabling us to deliver broadc&8tquality educational oulput in multiple fornts. We produced 180 videos for the IEA YouTub¢ channel, with 8,8(Y) new subs¢ribeTs and 2m view Page 3
The Institute of Economic Affairs
TRUSTEES, REPORT
There were 113,000 doMilo&ts of our ldeasts, our Twitter followers gr¢w to 47,000, while 13,IYJO re¢
The Institute of Economic Affairs TRUSTEES, REPORT RtSK PEVIEW The Principal risk$ and un¢ertainties to which the ]EA is exposed are reputational. loss of key personnel, and financial. Reputational risk centres on the quality and integrity of the Institute's research and publications and other activities. All the TEA'S major publications are peer revi¢w¢d. The system was managed in the period by the AcAdemie 8nd Research Director and supervised by the Chairnvdn of our Academic Advisory Board. Professor Mthin Ricketts. The IEA mainlains Strict ind¢p¢ndencL from commerciaL party political or other intrrest& It does not accept Commissions lo perforni research on behalf of ¢omm¢rcial or governmental interests. The perforniance of key personnel is reviewed at least annually. eAther by the Director GeneTal or by a small committee of Trustees, led by the Ch8imiaty to assess whether ly)th the employer's and anployees, objectives are being satisfied As with any small Organisatio it is notpossibleto completely protect against the loss of key people. Financtal risks and ¢¢r14TntjeS ar¢ largely ¢over¢d by the Reserves and InvestDWIt policies noted ale. The TnLStees examine at least once a year Ihe major strategic, or*rationaL ond fjnancial risks and uncertaintles which the Institute fac¢5. ¢ither at gUlar tt special Bo8rd meeting4 or through the Finance and CJeneral Fknposes Committee. Fi PLANS In 2023.24, the IEA intendsto continuetoproduce high-caiibr¢ res¢arGh on economic matter4 theregulatory environmenL energy and ¢Iimate chan8e. lifestyle issues and mor¢. W¢ will continue to engage with Jucators through our extensiv¢ sludent and t¢a¢h¢r outreach programtne and through our comprehensive cixnmunicalions strategy. TRUSTEES The following w¢re Trustees (who dir¢ctors for the purp)ses of company law) at the time of signing this report and fllh2nciai statements. They all held office throughout the year end¢d 31 Mornh 2023 and up to the date of si]ng this rew¢ unless otherwise state Neil Record Linda Edwards Kevin Bell Professor Cl)ristian Bjomskov Robert Boyd Tholl Harris Robin Edwards Sir Michael Hintze Professor Patrick Minford BrutK> Prior Professor Martin Ricketts Chairman-resigned 20 July 2023 Chairman-appointed 20 Juty 2023 Ap]nted 9 March 223 Resigned 8 November 2022 None of the Tntstees has an interes¢ direct or indire¢L in any contract entered into by the Institute. The Ttvstees may from time to time. and at any iirne, appoint any person to a TrStee9 Ilp to the prescribed maximum of twelve. Appointtnents are norn)Aily made on the recommendation of the Nominations Comtnittee. Any TnLStee so appointed retains office until the next Amiuai General Meeting. and is th¢n eligibk for re¢ltIon on a thre¢-year rotating basis. New TThte¢S. who are already familiar with the Institute prior to appoinkn¢nk ore 'trained' mostly on the job by attending meeting5 ofTntstees. They ar¢providedwith nLrtes veringthe Instite'sMISSio history, Pagt S
The Institute of Economic Affairs TRUSTEES, REPORT Organisatio gOVernae. and detaib of tlLe other Trustees, together with the latest TrsteeS. Report and Financial Siatrments. Newty appointed Trustees will usually already have substantial IN)8rd level or departm¢ntal rnan&gement experi¢nce in either the comDtrrcial or academic arenas. PAY POLICY FOR SENIOR STAFF The perforniance of key per8onn¢l is reviewed at le&8t annuaIly. eitknrby tILe DAlOr General or by a small committee of Tntstees. led by the Chairmam. Pay increases and ixmuses e awatd¢d to reward m¢riL De¢isions regarding pay l¢vels are itifornied by reference to other think tanks and also ¢omp&rable positions ID related s¢ctQTS. TAXATION STATUS The clwiiabl¢ company is a registered charity and &8 SUC for tsxalion PUTPOSes is entitled to exemption under the In¢om¢ and Corporalion T&Yes Act 1988. AUDITOR A Tesolution to Oint Streets Audit LLP, as auditors will be put to the membus at the annuoi general meeting. The Trttees hav¢ taken advantsge of the exemptions available under the sm8]I companles. T¢gime from the requirement to prq)are a strategic report and in preparing the Trustees, R¢port. By order of the INJard Linda Edwards Chaimian .2023 P¢w6
The Institute of Economic Affairs STATETrT OF TRUSTEES, RESPONSIBILITIES The TThtee5 (who are a]so directors of the Institute of Economtc Affairs for the purposes of company law) are responsible forpreparingthe Tn]ste¢s' Re)rt andthe financial statements in accordance with applicable law and United Kingdom Accounting Standard5 (United Kingdom Generally Accepted Accow)ting Practi¢e). Company law r¢quires the Trusteesto prepare fJnan¢ial statements ft>r each fuwicial y¢ar which give a tn and fairview of the state of affairs of the charitable company and of the incoming resources and application of resources. including the income and exnditure, of the ¢hariiable company for that period. In preparing those financial *at¢m¢nts. the Trustees are required to: select suitable accountiDg lICieS and then apply them consistently. observe the methods and principles in the Clttle$ SORP. make judgements and estimates that are reasonable and prudent. slal¢ wh¢ther applicable accounting stJndards have been followed. subje¢t lo any material depaTtures dis¢]osed and explained in the fUnCl1 statements. and prepare the financial statements on the going ¢orAcern basis Unless it is in4JpropriAte to presume that th¢ company will continue in business. The TnL8tees are responsil)le for keeping proper accounting r¢wrds that dls¢lose with reasonable accuracy at any time the financial position of the charitable company and enable ihem to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguardxng the &ssets of the charitable company and hence for taking reasonable step5 for the prevention and detection of fraud and other inegularities. In so far as the Trustees are aware: there is no relevant audit iDforniation of which the cbaTitable company's alitOr is WWaYe. and the Truste¢s have tsken all steps that they ought to hav¢ tsken to make themselves aware of any relevant audit infilrrnation and to establish that th¢ auditor is aware of that infomiatio By order of the board inda Edwards 2023 Page 7
The Institute of Economic Affairs tNDEPENDEKf AUDITOR'S REPORT TO THE MEMBERS OF THE INSTITUTE OF ECONOMtC AFFAIRS For the year ended 31 March 2023 OpiDiOll We have audit¢d the fjnanciai st4t¢m¢nts of the ltistitits of Economic Affairs, ('th¢ ¢harity'), for the year ended 31 l¥£arch 2023 which comprise the Ststement of fuw¢ial activities, tb¢ Balance sbeeL t&e Statement of Cgsh flowg and the related notes, inc]udiDg a summary of significant a¢coutsting pojicies. The financial reportmg framework that has b¢en applied in theirprep8r&tion is appli¢able law8DdUnitsdKingdorn A¢¢ounting Standards, irLcludiDg FinaD¢ial Reporting Standard 102'The FiThan¢ial Reportingstalldardapplicable Ati the UK andRepublic of Ireland, (United Kingdom Generally Accepted Accowitillg Prdctice). In 4)ur opinion the fitwicial statements.. give atNe andf#irvAew ofth¢ stste ofthecharitable company's affairs asat 31 March2023 of its incomittg tYsource$ attd application of T¢8ources, including its income and expenditure. for th¢ y¢¢ then ¢lld. have been property prepared iti accordance with United Kingdom G¢nerally Accepted A¢counting Pra¢tice' have been pr¢pÈred in accordance with the Companies Act 246. Basis for opinion W¢ collduced our audit iti accordaD¢¢ wlth Internation Stattdarth 4)n Auditsng IUK) OSA5 (UK)) alldapplicab law. Our responsibilities ullder those standards are fuTth¢r d¢gcribed in the Auditor's respoDsibiliti¢$ for the audit of tbe f]tMllcial statements section of ollr report. We are independent of the cForit&ble company iti accordance with the ¢thical requirements that are relevani to our audit of the financial ststements ill the United Kingd illcluding the Financial Reporting Coun¢il's Ethical St2ndard aThd we bave fu1red ow other ethical responsibilities in accordance with these requrements. W¢ believe that the wldit evidence we have Obtain . sufficient and appiopriatr to provide a basis for our OPiDiOn. ConclusioD5 relatAng to going to]e ID auditing the fmancial Statements, we have wwluded that th¢ tswst¢¢s' use of the going concern basis of accounting in the preparation of the fmancial statements ig apprcoriale. Based on the work we have perfornie4 we bave not id¢ntified any material uncertaittties relating to events or conditions that, individually or ¢ollectiv¢ty, may ¢as¢ significant doubt about the charltable company's ability to continue as a going concern for aperiod of at least twelve months from the date when the fmancial statements are auth0ri5ed for t1¢. Our respotssil>tlities and the responsIlI•ts of the tnteeS with respect to goins ¢oMcern are descnl>ed in the relevBlll s¢¢tions of this repLWt. Other IDf0rn4tlon The tSte¢S aT¢ responsible for th¢ other InforntiolL The other information compri5e$ the itrforniatioll iti¢lud¢d in the Annual report oth¢r the financial statements and our Auditor's report thereon. The trus¢e¢s are responsible for the other iDforniation contained withill the Tntee8, ReporL Ow opinion on the fmanci81 sratements does not cover th¢ otheT infomiation except to the extent othenvi8e ¢xpli¢itty stated in ourT¢POrt, we do not ¢xpress any fomi (Ff assurance ¢onchtsioo thereon. Jn CODDe¢tion with our audit of the f]Dallcial $tatementy ow responsiTr)ility is to readthe other infomi8tion irL doing so, consider whether the other infoTmation is materialty iti¢onsistent with the finarLcial ststements. or our knowl¢dge obtained in th¢ course of the audit or otherwise appearstobe mat¢riolly m]tated. Ifw¢ Adentify such mat¢rial inconsistellci¢s or apparnt m¥4teTial misst&tetneDts, W¢ requir¢d to detsrniine wh¢ther there is a material misstatement in the financial stalements or a material misstatement of the other infornialion. J£ based on th¢ work we have p¢rfornied, we conclude that there is a mat¢rial misslalcm¢n¢ of Ihis oth¢r InfomMti we 4r¢ required to report that facL We have nothing to report in this regar Page 8
The Institute of Economic Affairs INDEPENDENf AUDITOR'S REPORT TO THE MEMBERS OF THE INSTITUIE OF ECONOMIC AFFAIRS For the year ended 31 March 2023 OpillioD 011 Other matters preucrib¢d by th¢ Companlej Aet 2006 En our OPilliOD, based on the work uud¢rtsken in the course of the audit: the infornlation given in the TThst¢es' rert for the ftnattciBI year fwwhich the finttncial statetnents are prepared is CODSiStent with the financial ststemcnts" and ikn Tn, Report has been prepared ID accordance with applicable legal reqlliremettts. Matters on whieh we are requlre41 to report by exception In th¢ light of our knowledge and understsndillg of the C1tabk company and its ellvifoDmwt obtaincd iti thc ¢ours¢ of th¢ audil we have not identified material misstatements in the Tru5tees' repDrL We havenothing toreport inrespectofthefollowingmatters iDrelatiOD towbi¢hth¢ CompatiiesAct2006 requiTes us to report to you if, in our opinion.. Adequats accounting records have Thot IeD kepl or reluTD5 adequate for our audit hav¢ not been received from branches not visited by us; or the financial ststements are not in a8reemeDt with the a¢ting r¢¢ffds and r¢¢urns.' or certain disclosutts of trustees, remuneration specified by law are mad¢" or we have not received all the inforn]ation and ¢xplaDiolls we requiT¢ for s)ur audit. or the trustee5 were not entitled Éo prepare the finallcial stal¢ments in a¢wrdan¢¢ with the small companies, regime and take advanta8e ofthe smallcompani¢s' exempti5 from th¢ requir¢ffnent to prepare a Strategic report. RespDDslblllttes ot tte¢S As explained more fiffly in the Tns, responsibilities 8tsiemen( the tsustees (who are also the director5 of the charitable company for the Purposes of company law) 8re T¢sponsible for the preparation of the f]namcial statements and forbeing satisfied that they giv¢ a tru¢ fair view. and for such internal control as the lrnstees determine is necessary to enable the prewation of fjnattcial statentents that ore free from material misstatemelll wh¢th¢r due to fraud elror. In preparing the frLencial statemen the ttustees are responsiTrle forassessing the charitable company's ability to tinue as a going Con¢¢ dis¢losin& as applicable. matters r¢]at¢d to going concern and using the going concern basis of xcowiiitig unless the tswt¢es either int¢nd to liquidate the cltable company or to cease operation4 or have no reali5tlc altrrnative bu¢ to do so. Audltor's rfspoDsiblliti¢J for the #udlt of the flDanelal slatements Our objertives are to obtain r¢&sotthle assurance about whether tbe t]Datt¢iil sr4t¢ments as a whole ore free from Materi misstatemenL whether due to fraud or etTor, and to issue an Auditor's [Ort th4t inrludes our opinion. ReasoDable &85uran¢e is a bigb level of assurance, but it is Dot a guarant¢¢ that an audit conducted in a¢cordan¢e with ISA$ (UK) will always detect amat¢rial misstat¢ment wh¢u it ¢xists. Misstatements can ari$¢ from fralld or error aDd ar¢ coL8idetrd material if, individually or in th¢ aggr¢8at@ they could reasonably be expeeted to influence the e¢onomic decisions of users tak¢D on th¢ b45]5 of these fillancial statemwts. Our approa¢h to identsfying and assessing risks of material misstatement in respect of irregularitio. iThcludiD8 fraud and non•compliaDce with laws alld r¢gulatAons, was as follows: the engagernentpartnerensured thattheaudltengagementteam collertively had the approprfate competence, capabilities and skilis ro Identify or recOlse non-compliance wlth appllcable laws and regulatlons; we identified the laws and regulations applicable to the Chity through discussions with Stee5 aTAd oth¢rm8nagement andfrom ourkttowledgeand experience ofthe ¢hatity 8nd sectoritLwhich it operat¢s,' we f¢xus¢d ijtt spe¢ific laws and r¢guJatioDS which we considered may have a dxrect matsrial effKt on th¢ finattcial statements or the operdtions of the charity including the COmpaleS ACÉ 2006, charities kgislatio tsxation l¢gislation, data protection. employmenl environmental and health 8ftd s&fety l¢gislation' we 45se$8ed the extent of Compliance with laws and r¢gulalion5 identified above through thaking enquiries of management aud insp¢ditig legal correspondence, if requiTed' and Page 9
The Institute of Economic Affairs DEPENDENT AUDITOR'S REPORT TO IIIE MEMBERS OF THE INSTrruTE OF ECONOMtC AFFAtRS For the year en(kd 31 March 2023 Identtfled laws and regulations were communlcated wlthln the audlt team regularly and the team remalned alert to instances of non-compliance throughout the audlL We assessed the suxeptibility of the ¢b8rAty's f]naD¢1 stat¢ments to Material misst8temenL includiDg obtsilliD an ulld¢TStanding of how fraud mighi omjr. by.. making enquirles ofmanagement as to where they considered there was susceptsbility to fraud, their knowledge ofathal, suspected and alleged fraud,. and consideringthe internal controls in place to nhltlgate risks of fi7ud and non-compliance with laws and regulation& To addre&% the risk of fraud througb management bi&% attd oveIde of controls. we: perfornied analytical procedures to identify any unusual or unexperted relationshlps.. t¢st¢d journal cntri¢s 10 identify unusual transactions. reviewed a sample of grdnts xti the year to ensure accurate Te¢ogttition,' agreed a sample ofemployees on the payroll to existence and agreed the accuracy of the pay,. a5sess¢d and review the appropri4tene$s and ¢ffe¢tivene&s of the k¢y systeills and eontro]4 se5sed whether judgements and asswDp¢ions m&le Its det¢nninirLg the &ecowitiD8 estimtes get out were itidieAtive of potetttial bias. alld investigated the rationale behind signlflcantorunusual transaL1ion& In respons¢ to the rtsk of irregulariti¢# atLd On<ODJpliotice with laws and regul&tion4 we designed pro¢¢thwes whith iti¢luded but w¢r¢ not limited to: agreeing financial statement dlsdosures to underlying supporting documentatlon: reling the Jnillutes of meetings ofthi)5¢ charged with gov¢rnallce' enquiring of management as to actual and potentiaL liligation and claims. and reviewing correspondence with HMRC, relevant regulators and the charity's legal advisor& There are itiherent limitations in our audit procedures d¢5¢ribed above. Th¢ more removed laws and re8ulations from fmancial trans#¢tions. the 1¢5s M(ely it is we would be¢ome aWe of non-complionce. Auditing standards also limitth¢ Juditprocethcs required io id¢ntify nonrfompliatt¢e witlLlaws andregulatioDS to enquiry of th¢ tru8tees and other management and the inspection of regulatory attd legal wrrespondence, if ally. Material misstatements that arise due to frnud can be harder to detect thatt tIKkqe tIt aTiS¢ from ermra5 they may involve deliberate con¢ea]ment or collusion. A furtber description of our respoDsibilAties for the audi¢ of the rUwJaI statements ig k)cated on the Financial Reportitig Council's website at s. This description forn15 part of our auditor's reporL UJ¢ of ovr report This report is made solely to the ¢haritable company's membus, as a knly, in acciYdallc¢ with Chaptsr 3 of Part 16 of the Companies Act 2006. Our audit WOTk hos been undertak¢n so that we might state to the clwitsble ompany'smembersthose matters we arerequiredtt) s¢ to them JD anAuditor's report atsd fornootherpw. To the l$t extent permitted by law, we do not accept or assw spOIL41b]I1ty to anyone other than the charitable Mparty and it's m¢mbers as a body, for our audit wi for this repor4 w for the opiDions we baye forni ROBERT ANDERSON (Senior Statutory Auditor) for and OD bebalf of Streets Audit LLP Chortered A¢¢ountarLts and Statutory Auditor l Mark Square Shoreditc London EC2A 4EG Date: 03 November 2023 P4w¢ 10
The Institute of Economic Affairs STATEMENT OF FINANCIAL ACTIVITIES (]NCLUDfNG AN tNCOME AND EXPENDITURE ACCOUNT) For the year ended 31 March 2023 UTwestrirted Restyi¢ted Fmdowment fvnd £000 Totsl 2023 £000 Total 2022 £0 Notes £000 £000 INCOME FROM: Donations Charitsble activities: Publications and subslption8 Other trading activitte CJRS Income InvesLm¢nts: Dividends reoeiv4ble Interest ttceivable Foreign exchange gaiti 1.607 569 2.176 2.423 33 63 33 63 52 54 12 22 13 22 19 TOTAL 1,714 569 35 2.318 2,565 EXPENDITURE ON: Raising FuDds: Fwidraisitkg and subs¢rib¢r support Ch¥rAtthle activities: Academic programme.. Researdl and Publicati(M Studentrreacher outreach Special Events Conmnutiications 3ixi 14 314 299 692 412 107 168 799 580 861 480 18 691 47 733 TOTAL 2,090 336 2,426 2,349 Net Gains on Investtnents.. Realised gains on disposa]s Utwealised losses 60 (122) 60 (122) 49 51 COME (376) 233 (27) (170) 316 200 (21KJ) NET MOVEMENT IN (176) 233 (227) {170) 316 RECONCILIATION OF TOTAL FtrNDS BROUGHT FORWARD 11.12. 13.14 1.395 113 1,834 3.342 3,026 TOTAL FUNDS CARRIED FORWARD 11,12. 13.14 1219 346 1,607 3.172 3,342 Prtgell
The Institute of Economic Affairs BALANCE SHEET As at 31 March 2023 Company Registration No. 755502 Registered Ck]arity No. 23535 I Noles 31 Marth 2023 31 March 2022 £000 FIXED ASSETS Tangible &ets Investhlents 598 1.963 536 1.790 2,561 2,326 CURRENT ASSETS tkbiors Cash at bank and in hand 347 374 273 1.009 721 1282 CREDITORS: Amounts falling due within one year io (iio) (266) NEf CURRENT ASSETS 611 1.016 NET ASSETS 3.172 3.342 THE FLfNDS OF THE CHARITY: Endowment fimd 11. 14 I,607 1,834 Restricted fijnds 12.14 346 113 Unrestrict¢d funds 13.14 1219 1,395 TOTAL FUNDS 14 3,172 3.342 The fUncIal statements bave been prepared in aCrdanCe with the provisio$ applicabl¢ to companies subject to the small companies. Rgime. The fJtwi¢iai statements on pages l I to 24 were approved by the Trustees and authoris¢d for issue on .. 2023 and are signed on their behalf by: Linda Edwards Page 12
The Institute of Economic Affairs STATEMENT OF CASH FLOWS For the year ended 31 March 2023 2023 2022 £000 Net cash (used inygenetated from operatin8 aclivitias (A) (356) 133 Cash flows from investing activities: Dividend5 and interest Proceeds from sale of investments Purchase of investments Purchase of fixed assets 41 373 (608) (85) 22 273 174) (5) Net cash (absorbed byygenerated from investing activities (279) 216 Change in cash and ¢ash equivalents in the period Cash and cash equivalents at l April (B) (635) 1.009 349 660 Cash and cash equ1valw at 31 March 374 1.009 {A) RECONCILIATION OF NET tNCOMEI(EXPBNDrruRE) TO NET CASH USED IN OPERATIONS.. Net (expendittreyjncome forthe reporting period (as per the Statement of financial activitiu) {170) 316 Adjustments fr*r: Depreciation charges Lossesl(Gains) on inv¢sim¢nts Dividends and inlerest Uttcrease) in debtors (D¢¢re&seYJnCre in creditors 23 62 (41) (74) (156) 20 (100) (22) (165) Net cash used irA operating activities (356) 133 (Bl ANALYSIS OF CHANGES IN NET DEBT Cash at bank and in IwMI at l April Cash flow 1,009 (635) 660 349 Cash at bth and in hand at 31 March 374 1,009 Page 13
The Institute of Economic Affairs ACCOUNTING POLICIES BASIS OF AccouwfING AND GOING CONCERN The In5tituts of Economic Affairs (IEA) is a charitable ¢omp8ny limited by guarantee. attd is registere domiciled and iw)rporatrd in England. Its registered office is 2 LoTd North StreeL Westtllinster, London SWIP 3LB. The financial statem¢nts have been prepared under the historical cost convention with iten recolSed at cost or transaction value except for investments which are reco]sed at market value. Th¢ financia] statements have been prep in aC¢OTdallce with the Statement of Recot)llnended Prncticc". Accounting and R¢portitig by Charities preparing their accounts in accordance with the Financial Reporting Standard appli¢abl¢ ITh the UK and Republic of treland (FRS 102). effective October2019. the Chorities Act 2011. and the Companies Act 2006. The Institute ConStiteS a public benefrt entity &$ defined by FRS 102. The Trustees confjrni that at the tim¢ of approving the financial statements, there is a re8sonable expectation that the Instittlte has ad¢quate resources to continue in operational existence for the foreseeable futwe. In arriving at this Concl10n. the Trust¢es have reviewed budgets and c&sh flow forecasts covering a period to 31 March 2025, taken account of Current and anticipated fmancial perforn)an¢¢ in the current economic conditions. atml the Institute's reseryes positiotL For this reason. the going concern basis continues to be adopt¢d in the preparation of the Institute's f]nan¢ial statements. TANGIBLE FIXED ASSETS Fixed &sset5 ar¢ stated at historical cos( less depreciatioTh Depre¢iatson is provided on tangible fixed assets, other than freehold land, at rates calculated WTite each asset down evenly over its expected useful life, as follows'.- Fr¢¢hold propety over 40 years Office equipmenl over 3 - 10 year5 depending on the of the asset ExpendittNe of a capitsl below £l,ON) is not capitslised, but charged to the Statement of Financial A¢tivili¢s in the year of exFenditure. STOCKS AND WORK IN PRRESs No value for accounts purposes is attributed to stocks of unsold pubjications. PENSION coNfRIBUTtONS Th¢ Institute operates a defined contribution scheme. Contributions are charged to the Ststement of Financial Activities on an acGruals basis. knounts payable at the period end ar¢ included in oth¢r creditots. COME Income from donations is includ¢d in income when these have been pledged by the donor, it is probable that the income will be received and the amount C8n be rneasured reliably. excepl: when don0 specify tha¢ donations given to the charity niust be used in future accounting p10dS, the income is deferred until those periods.. when donors impose conditions. which have to be firIlled before the charity becomes entitled to s¢ such in¢om¢. the income is deferred and not in¢luded in income until the pr¢-wnditiOll8 foruse have been met. Subscription income is cdited to income for the subscription period covered. All other income including ittome from investments is credited to iti¢ome when receivable ty the ¢harity. EXPENDITURE All expenditu is aOUnted for on an accruals basis And has been classified under headings that aggregate a]1 Costs Telthd to the category. Choritsble &upenditure comprises thos¢ costs incurred by the charity in the delivery of its activities and s¢rvices for its beneficiaries. It includes both costs that c8m be allocated diTe¢tly to such activities 8nd those ¢osts of an indire¢t nature necessary to support them. All costs are allwated between expendittw¢ categories on a basis d¢sAgned to Tefl¢ct the use of the resource. Costs relating to a particular a¢tivity are allo¢at¢d direcdy. Support ¢osts include central functions and have been allocated to tiVity ¢OSt categori¢s on abasis consistent with the use of resour e.£. by floorspace. Staff costs have been allocated accordingto the lim¢ spent on each tiVIty. Page 14
The Institute of Economic Affairs AccouwrtNG POLICIES FOREIGN CURRENCY Assets and liabilities denominated tn foreign currencies are transl&iaJ at the rate of exchange ruling at the balance sheet date. Transactions in fotrign CuenCieS are recorded at the rate nlling at th¢ date of th¢ transactio All differences are taken to the Statement of Financial Activities. Research expenditUTe is written off in the financial statements as it is incurred. Th¢ Ralph HiS Fund is an expendable endowment whose use is r¢stri¢ted to fmancial support forthe p)sition of th¢ DiTtor Gener including employment and 5UPPOrt Costs. tNiESTIUCTED FUNDS Unrestricted funds comprise those fun& which the Trustees are free to use for any purpose in firtheran¢e of the charitable objectives. Designated fimds are unrestricted fimds vthich the Tnjstees have ¢urr¢ntty designated for specific purposes. General funds ¥ft unrestricted funds for which no specific purpos¢s Ive be desigDat¢d. RFSTRICT6D FUNDS Restrietsd Ojnds are those donated to the Institute for on¢ or more sp¢cifi¢ pwposes. OPERATING LEASES All operating lease rentslsare recognid in the Statem¢nt of FinancialActivities on astraigbt line blS over the life of the lease. FtNANCIAL INSTRUMENTS The charity has chosen to adopt sections 11 and 12 of FRS 102 in resFrtt of financial instruments. The charity only has financiai assets and financial liabilities of akind that qualify as blC financial instruments. i*nelal wsets: Basic financial asset& includinginvestments h¢ldasfix¢d a. and trade and otherreceivables, are initially recogDised at transaction price. Investments held as fixed assets comprise equities, oPended fijnds, fixed interest securities and ¢urrency and are stated at year end n)arket value {bid-PTice). Realised gains and losses on disposal and unrealised gains and losses due to the movement in m8rket value of investments ¢ recogtused in th¢ Statem¢nt of Financial Activities. Other finan¢ial &ssets are asse&1 at the end of each reporting period for objective evidence of impainnent due to reduction in th¢ recoverable amount. Any impairnient losses are recognised in the Slat¢ment of Financial Activities. Fi04D¢lg1114bl]itiu: Ble fmancial liabilitie& includitig trade aTrJ other payable5 are initially r¢co8nised at transaction pric¢. Any subsequent changes to amounts payable are recognised in the StatemetLt of Finan¢ial Activities. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are cl&ssified as current liabilities if payment is due witbill one year or less. CRITICAL ACCOUNfiNG ESTIMATES AND AREAS OF JUDGEMENT Estimates and judgements are ¢ontinually evaluated aT]d are b&s¢d onhistorical experience and oth¢r factors, incluthng eXp10S of fvbJr¢ ¢v¢nts that b¢liev¢d to be reasonable under the ¢ir¢umstances. Th¢re are no Critical CoUnting estimatss and areas ofjudgement included within these accounts. Page 15
The Institute of Economic Affairs NOTES TO THE FINANCLAL STATEMENTS For the year ended 31 March 2023 STATEMEwf OF FINANCtAL ACThVITJES- COMPARATIVE FIGURES Unrestri¢ted Restri¢t¢d Endownlent fijnds fimd £OLM) £000 2022 £000 Notes £000 rNCOME FIiOM: Donations Charitabl¢ A¢tivities.' Publications and Subs¢riplions Other traditig activities Cffts Inrne Investments: Divid¢ndA re1vable For¢igtt exchange gain 2.148 275 2,423 52 54 12 52 54 12 TOTAL 2.268 275 2.565 EXPENDITURE ON.. Raising Fund%: Fwidraising and sulhscrib support Charitsble activities: Academic programme.. Researth Ènd Publications Studenvf¢acher outreach Special Events Communications 298 299 591 386 18 653 270 861 18 691 38 1.946 403 2,349 Net GaiLs on Invesim¢iits: Realised gan on disposAIs Utirealised gains 49 51 49 52 322 (128) 316 Tronsfers be4ween fimd8 21)0 (200) NET MOVEMENT tN FUNDS 522 (128) (78) 316 RECONCILIATION OF FUNDS: TOTAL FUNI)S BROUGHr FORWARD 11.12 13,14 873 241 1,912 11,12 13,14 FORWARD 1.395 113 .834 3,342 Page 16
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEIrfENTS For the year ended 31 March 2023 DONATIONS 31 March 2023 £000 31 March 2022 £000 Foundatio. ¢orF4irate and individuals Restricted Unrestricted 569 1,607 275 2.148 2,176 2,423 ALLOCATION OF COSTS 2023 Support costs 2023 Total £000 cosls £000 £000 Fundrdising and subscriber gjpport Research and P41blications Stydentif¢ad Outreach Special Events 27 157 189 287 314 799 580 391 158 575 733 531 1.895 2,426 ALLOCATION OF SUPPORT COSTS 2023 P¢rsonnel ¢osts Office fA)sts Property costs Travel costs 1,579 209 79 28 1,895 Support costs have be allocated as follows: Supwt Costs Personnel osts FundrSIng arwj subscrib¢r support Publications stUdente8¢her Outreach Specia] Events Communications 16Yo 33Yo 29Yo Oyo 22V 15Y. 19Ytr OY• 32Yo Page 17
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ¢nded 31 March 2023 St4pport cost 2022 Trtal £000 ALLOCA TIONOF COSIS 2022 Costs £000 Fupthaifing alsb$¢ib¢rSUPporI Research andPublications StudenvTeacher Outreach Special Events Comrn*tscations 20 238 J04 279 623 376 J8 543 299 801 480 18 691 148 510 1,839 2.349 ALLOC4TIONOFSUPPORTcosfs2022) Personnel ¢osts Office cosls Property costs Travel costs 1.568 189 02 20 1.839 Supporl ¢osts have been allwaled tufollows.. Stwporl costs Personnel costs Ftmdraising l•klsub8¢riber SUPPQTI Resei7rch andPubliratio StudenirreaGher 024treach Special Events Communicationg 16Y• 33Y• 29Y• iy. 21¥• 15Y 34Yo Iwo iy 31Yo NET EXPENDITURE 31 Mar¢h 2023 31 March 2022 £000 Net exp¢nditure for the period is stated after charging: Depreciation-¢harge for perlod Governance Costs- Auditor'5 remuneration Other Governance Costs Legal fees OperAting l¢as¢ rentals- plant and machinery 23 20 16 12 Page 18
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 TAX4TION The Institute is not liable to corporation t&x on its income and gains in the current period to the eknentthat they are applied for charitable purposes. EMPLOYEES 31 March 2023 31 March 2022 No. Tr averag¢ monthly number of persons employed by the Institute during the period was: Offi¢¢ and maDag¢m¢nt 22 20 31 March 2023 31 M 2022 £000 Staff costs for above persons., Wages and salarie4 includlng benefrts Social security ¢osts Other pension costs 1,067 128 45 1.065 40 1,240 1.222 The number of employees whose emoluments as deflld for twtion purposes an)ouoted to over £60.000 in the period was as follows: £60,001- £70.000 £XO.001- £90.000 £90.001- £100,000 £ioo.i)oi - £1 10,000 £150.1)01- £160.000 £190.001- £200,000 31 March 2023 31 March 2022 The employees earning over £60.000 participate in th¢ ¢ompatty d¢fmed cotltribution pension scheme. Contributiolls paid in the perlod in reo)ect of th¢s¢ employ¢¢s amounted to £42,970 (2022: £45,78D. The key management personnel of the Irtstitute comprise the TnLSte¢4 together with the Director GeneraL the Chief Operating Officer. the Academic & Research Director, the Chief Marketing & Creative OffIr and the Development Director. The totsl ejnployee benefits of th¢s¢ key management personnel were £535,312 (2022: £558.672). including pension ond social security sts. and also consultancy fees paid lo the Academic & Research Director and the Chief Marketing & Creative Officer who provide their services on a consultancy b&sis. No Trustee4 OT persons related or ¢onne¢*d ty t11. received any remuneratiort or reimbursement of expenses from the Institute during the other than as detailed itk nots 17 below. Pagt 19
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 TANGIBLE FIXED ASSETS Freehold property £000 equipment £000 Total £000 Cost l April 2022 Additions in year Disposth iti year 965 12 85 977 85 31 Mar¢h 2023 965 97 1.062 Depreciation l April 2022 Charged for period Released on disposats 437 18 441 23 31 Mch 2023 455 464 Net book value 31 March 2023 510 88 598 31 March 2022 528 536 FIXED ASSET INVESTMENTS Open-d fimds £000 Cash held on deposit Total £0 £000 Market value at I April 2022 Additions Disposals Jnvesttn¢nt gains 1,091 699 608 (200) 1,790 608 (373) (62) (173) (62) Market value at 31 March 2023 856 1,963 Historical Cost at 31 March 2023 776 1,098 1,874 Historical Cost 31 March 2022 889 699 1.588 Page 20
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 DEBTORS 31 March 2023 £000 31 March 2022 £000 Trade debtOTS Taxation recoverRble PAEpayments and accnd ioMe 67 109 158 347 273 10 CRBDETORS: Amounts falling due within one year 31 March 2023 £000 31 March 2022 £000 Trade ¢rlitors Taxation and social security Acoruals and defeffed income 26 31 53 95 32 139 iio 266 Defeed income ha5 arisen as a resuh of 2 year subscriptions paid in advan¢¢. Amounts are released to the Ststementof Financial Activities withintheperiod to which the subscription relates. 31Marth 2023 £000 31 March 2022 £000 Deferred income at l April 2022 Released to Statement of Finala1 Aotivities in p¢riod Deferred in period (i) (i) Defeffed income at 31 March 2023 At l April 2022 £000 Invesiment Income Transfers Investtnent At Gains 31 March 2023 £000 £000 fijnds £000 Ralph Harris Fund 1,834 35 (200) (62) The Ralph Hatris Fund has been established as an exEdable endowment endow the position of Director G¢n¢ral of the IEA aS,IreCtor General and Ralph Harris Fellow." Page 21
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMFNrs For the year end¢d 31 M&rch 2023 12 RESTRICTED FUNDS Atl April 2022 £000 At31 Income Expenditire March 2023 £000 £000 £000 (4) (12) Events and blicati1)I)S Linda Whetstone Memorial Building Restorntion Fund Cultural Affairs Unit IATr Sdent Outreath and Opporttmity Epicenter Thi]]k Tent Vinson Centr¢ at the Univernity of Bu¢kingham M Fund 12 70 104 (s) (89) (3) (107) {42) 199 14 187 42 16 116 36 36 (36) (38) 38 113 569 336 346 Donations were r¢¢¢ived to 5UPPOrt various events alld publications. The COD]missioned a portrait and # memorial recepti in memory of Linda Whetstone. Donations wer¢ received in resp(Mhse to a fundraising appeal to ¢ovtt the costs of ws¢ntial builditi8 reslorntion wo The IEA has a speci1$1 unit which examines and T¢ports on cuhural affairs. The Initiativ¢ for AfricaD Trade and Prosperity IIATP) is guided by the core belief that ixtttom.up free market policies ar¢ tbe m05t efftctive way to all¢viats povety, atTrplify liberty 8nd Crats a more pea¢efvl The IEA'S Sttthnt Outreacb ProgrAt aims to spread understanding of free mark¢ts and their benefits to students, aDd in¢ludes a Stuil¢nt Opportunity Fwid to provide financiol support to students who otherwise couldn't access IEA pro]Me. Donation5 were received to supwt Bpicentsr. a network of pub]ic policy (Ygatiisations from Europea countries. Donations were receivedto establisb amarquee. Think Ten4 orgaDis¢d with other think tanks, to b¢ the central point for free matket debate at the Cous¢rva¢ive Party Conf¢r¢nce. The Vitisoti Centre at the Utiivttsity of Buckinghom seeks kn fityth¢r the sw of hl)eral e¢onomi¢s in the UK. The M FuDd setup to prcAnote research itito therethictiOD iti th¢ siz¢ ofthepublic sector alld to promote an illtere5t inmarket economy policies on the p8rt of teachers and geniorpupib. Poge 22
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023 13 UNRESTRICTED FUNDS At31 April 2022 Income Expenditire £000 £000 Transfers 2023 £000 £000 DrsigDat¢d Fund Fixed knet Fwid Major Building wo Fund 528 170 (18} sio (170) 698 697 {18} (2,072} (170) 370 510 709 1,714 1,395 1,714 (2.OYJ) 200 1,219 The Fixed Asset Fund represents donations made to the Instite curr¢ntty d¢sigDat¢d and us¢d by the Trnsttts for the purp)se of acquiring freehold al inv¢slment property. A traDsfrrha5 be¢n made betwccn the Fixed Asset Fund and gejml funds in order to reflKt the depreciation of the fr¢ehold propty in the perio Funds were designated to undertake majorbuiiding work5 which were tsrigxnalty plantted to be ulldettsk ill 2020 but delayed to the Coronoviru3 Pand¢mic. UnrestiIct generdl fuDds Teprwent free r¢wY¢s after allowing for all designated fijnds. 14 ANALYSIS OF NET ASSETS BETWEEN FUNDS Designated General Restricted EDdowm¢nt Fund8 Fwids funds fund £000 £(M)O £000 Tot41 funds £000 Fund balallce5 at 31 Mah 2023 are represented by.. Tall]e fixed assets Investtnents Current assets CuTTent liabilitie8 510 88 356 375 (iio) 598 1.963 721 (110) 1.607 346 Total net &vets 510 709 346 1.607 3.172 15 PENSION SCHEMES The Institute optrntes & defitted conthlxrtiOD stheme and ¢ontributions to the scheme are made to an Indedent insurats¢e ¢ompany. The pension costs of th¢ tDStitute's 8theme amounted to £45,364 (2022: £40225). There no coDtnlJutions outstanding at the end of the perAOd. Page 23
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For th¢ year ended 31 March 2023 16 STATUS The Instityts is a company limit by guarantee and has no slwe c8pitsI. The Institute bad 10 (2022: 10) merntrr8 8tth¢ p¢riod en The Memor8ndwn ofAssociation PTovides thatmembers ar¢ liable to contribute a sum not exceeding £1 eacb in the event of the wmpany being wound up while tkny are members or within on¢ year of ce851n8 to be m¢mbers. 17 RELATED PARTY IRANSACTIONS During the period £124.121 ws incurred in employm¢Dt rosts (2022.. £121751) of the p•tier of the Direcknr GenernL who is a full-titll¢ employee of the Ins¢itut¢. There w&8 no amount outstanding at the iod end (2022: £17258) iu respect of these transactiODS. DonatiODS from trUSt¢es in the peri{ totalled £126.050 (2022: £70.290). Donatiiw from stsff and consultants in th¢ period totalled £61012022 £10.020). DonatiODS and f¢¢s of £376J70 (2022: £179.l83) were received or pledged in the petiod from IEA FoTum Limited, & company in which ) TTU5tee ts a director, and three Tn>t¢e$ ar¢ members. £80.792 (2022.. £72,000) was outstandiD8 at the y¢ar4nd in respect of these tratt8a¢Éion$. No ¢onditioDs wetr attathd to ally of these donations which would require the charity to slgnifi¢aDtty alt¢r the nature of its existsog artivities. The IEA conducts its Ewopeau Outr¢8¢b activities througb Epi¢entsr. fft network of public poll¢y orgattisations from Europeall wuntrie$. Epieenter is an AISBL ethblisbed in Belgium. with IEA senior employees as its direthOTS. Th¢ movement inrestrict¢d funds relating to Epicent¢r are sbown itinote 12. In addition, expenditure from u1¢$trictCd funds of £49.654 (2022.. £19,569). al the ¢kn&atioD of th¢ services of the Director of Epi¢enter were made to Sup( the actiyities of Epittut¢T duriDg th¢ y¢or. The employnent Costs reknting to the Directly of Epicenter were £29,058 (2022.. £24.379). 18 COMMITMENT UNDER OPERATING LEASES The total futUT¢ minimwn lease payments. at the r¢portillg dat4 31 Mar¢h undernOTrWllablC opetatiDg leases are as follows: 2023 31 March 2022 Amounts due.. within one year between one and fiveyears 13 23 17 19 FINANCIAL INSTRUMENTS 31 Marcb 2023 £000 31 March 2022 £000 FiDauc1 Asse at fair value: Investh]ents beld as fixed &8sets 1,954 1.790 Page 24