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 BTh￿0 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 DIRE￿oR James Ford¢r SECRETARY Andrew Mayer REGIs￿RED 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 Tn￿te¢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 fina￿141 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 AsSl￿latiOn 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 Tr￿ste¢S. about detsiled day-t day operations by S￿l0r 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 S￿￿0mMIttee 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 p￿actively reach out to. this is done using published dats fmm th¢ B1￿10raI 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 i￿lleS 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 partr￿shiP 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 s￿dents. 36 full-titne internships" 9 schools conferences. 2 teacher Semill￿ and engaged directly with over 3.500 students and 1,200 teacher5. We dec￿led our relationthip with the University of Buckingham through the cfrfounded Vinson Center foT the Public Understandtng of FKonomics & Entrepr¢n¢utship. We aW￿ded 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 forn￿ts. 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 l￿deasts, our Twitter followers gr¢w to 47,000, while 13,IYJO re¢ve, whereas our ability to carry out our work depends on attracting annual donations in a highly ¢ompetitive fimd-raising eThvironmenL Accordingly, the Tn￿tees, tM)licy is to invest con5emtiv¢ly. The Ralph Hattis Fund is invested with along- t¢rni time horizon. The TreaSU￿r and the Finan¢¢ and General Purposes Committee regularly r¢view inv¢$tment results. During the PWAod. the value of tk invesLments fell by 9Yo relative to a rise in the FTSE 100 Index of 0.15Yo. The Tn)stees' policy ¢)n reserves, which is revi¢w¢d annually. is ts have sufficient liquid funds on hand to cover two months of budgeted exp¢nditure, which amounts to approxiD￿telY £450,01)O. We believe this is adequate, under norn]al circumstances, to enable us to maintain operations in the event of seasonal or oth¢r fluctuations in donations andlor expenditure. This target hès been met in that there was c&8h at bank and in hand of £374.000 at the Yea￿nd plus cash d¢posAts of £356.IYJO. in addition to those cash deposits h¢ld within the Ralph Ha￿1$ of £751.000 which are available to endow the position of the DiTector Genera] of the IEA. A transferof £200.{K￿ has been mad¢ duTing the period inthis respect. The Trustees do not seek to accwnulate Teserve& bttt Tather to apply donations in support of the Institute's prosrammes iti accordance with donors, intent. The free reserves of the chprity as at 31 March 2023. d¢frLed as being UDrestricTr(I undesignated funds not represented by tangible fixed asse1& amounted to £621.000 (2022: £689.IKJO). Pag¢ 4 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 al￿e. 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 2￿23 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 Tr￿Stee9 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¢l￿tIon on a thre¢-year rotating basis. New TTh￿te¢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 Instit￿e'sMISSio￿ history, Pagt S The Institute of Economic Affairs TRUSTEES, REPORT Organisatio￿ gOVerna￿e. and detaib of tlLe other Trustees, together with the latest Tr￿steeS. 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 DA￿lOr 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 Trt￿tees 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 STATETr￿T OF TRUSTEES, RESPONSIBILITIES The TTh￿tee5 (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 ex￿nditure, 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 Cl￿ttle$ 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 fU￿nCl￿1 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 a￿litOr is W￿WaYe. 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 24￿6. 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 fu1r￿ed 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 t￿1¢. Our respotssil>tlities and the responsI￿lI•ts￿ of the tn￿teeS with respect to goins ¢oMcern are descnl>ed in the relevBlll s¢¢tions of this repLWt. Other IDf0rn4tlon The t￿Ste¢S aT¢ responsible for th¢ other Inforn￿tiolL 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 Tn￿tee8, 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' re￿rt 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 C￿1tabk 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 I￿eD 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 ¢xplaD*iolls 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' exempti￿5 from th¢ requir¢ffnent to prepare a Strategic report. RespDDslblllttes ot t￿￿te¢S As explained more fiffly in the Tn￿s, 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 responsiTr*le 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 c￿ltable 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 recO￿lse non-compliance wlth appllcable laws and regulatlons; we identified the laws and regulations applicable to the Ch￿ity 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 COmpa￿leS ACÉ 2006, charities kgislatio￿ tsxation l¢gislation, data protection. employmenl environmental and health 8ftd s&fety l¢gislation' we 45se$8ed the extent of Compliance with laws and r¢gulalion5 identified above through thaking enquiries of management aud insp¢ditig legal correspondence, if requiTed' and Page 9 The Institute of Economic Affairs DEPENDENT AUDITOR'S REPORT TO IIIE MEMBERS OF THE INSTrruTE OF ECONOMtC AFFAtRS For the year en(kd 31 March 2023 Identtfled laws and regulations were communlcated wlthln the audlt team regularly and the team remalned alert to instances of non-compliance throughout the audlL We assessed the suxeptibility of the ¢b8rAty's f]naD¢1￿ stat¢ments to Material misst8temenL includiDg obtsilliD an ulld¢TStanding of how fraud mighi omjr. by.. making enquirles ofmanagement as to where they considered there was susceptsbility to fraud, their knowledge ofathal, suspected and alleged fraud,. and consideringthe internal controls in place to nhltlgate risks of fi7ud and non-compliance with laws and regulation& To addre&% the risk of fraud througb management bi&% attd ove￿Ide of controls. we: perfornied analytical procedures to identify any unusual or unexperted relationshlps.. t¢st¢d journal cntri¢s 10 identify unusual transactions. reviewed a sample of grdnts xti the year to ensure accurate Te¢ogttition,' agreed a sample ofemployees on the payroll to existence and agreed the accuracy of the pay,. a5sess¢d and review￿ the appropri4tene$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 Ont¢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 undernOTrW￿llablC 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