The Institute of Economic Affairs (A Charitable Company Limited by Guarantee)
TRUSTEES’ REPORT AND FINANCIAL STATEMENTS
for the year ended
31 March 2024
Company Registration No. 755502 Registered Charity No. 235351
The Institute of Economic Affairs TRUSTEES’ REPORT
REFERENCE AND ADMINISTRATIVE DETAILS
Company Registration Number: 755502 Charity Registration Number: 235351
TRUSTEES
Linda Edwards Neil Record Kevin Bell Professor Christian Bjørnskov Robert Boyd Thomas Harris Robin Edwards Treasurer Professor Patrick Minford Bruno Prior Professor Martin Ricketts
Chairman – appointed 20 July 2023 Chairman – resigned 20 July 2023
EXECUTIVE DIRECTOR Tom Clougherty
EDITORIAL DIRECTOR Dr Kristian Niemietz
SECRETARY Andrew Mayer
REGISTERED OFFICE
2 Lord North Street Westminster London SW1P 3LB
AUDITOR
Streets Audit LLP Chartered Accountants & Statutory Auditor 1 Mark Square Shoreditch London EC2A 4EG BANKERS Barclays Bank PLC Leicester LE87 2BB
INVESTMENT MANAGERS
CCLA Investment Management Limited Vanguard Asset Management Evelyn Partners Investment Managers LLP (EPIM)
Page 1
The Institute of Economic Affairs TRUSTEES’ REPORT
The Trustees present their report together with the financial statements of the Institute of Economic Affairs (IEA) for the year ended 31 March 2024.
The financial statements comply with the Charities Act 2011, The Companies Act 2006, the Memorandum and Articles of Association, and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (published October 2019).
STATUS
The Institute of Economic Affairs is a charitable company limited by guarantee. The Institute was established through a trust deed in November 1955 and incorporated in 1963. It was set up under a Memorandum of Association which sets out its objects and powers and is governed under its Articles of Association. It is a registered charity No. CC/235351.
STRUCTURE, GOVERNANCE AND MANAGEMENT
The IEA is a charitable company limited by guarantee (ie without shares) whose Members are limited in liability to £1 each on termination of the company.
The IEA’s current membership are the nine serving Trustees and three former Chairmen of the Board who on resignation of their Chairmanships were appointed Life Vice Presidents (LVPs), provided that there are no more than three. The longest serving LVP retires on the ascension of the newest LVP, with the named exception of Lord Vinson, the original LVP. Members have voting rights at the Annual General Meeting of the IEA, but only current Trustees comprise the Board of Directors.
The IEA is managed by its Executive Director & Ralph Harris Fellow, Tom Clougherty, who oversees all aspects of its affairs and is responsible for achieving its goals. He reports three times a year to the Board of Trustees and more frequently to its Finance and General Purposes Committee (F&GP), comprising the committee Chairman, the Chairman of the Board, the Treasurer, and two further board members. These individuals also serve as the Audit Committee.
Decisions about the level and mix of activities are made by the Trustees; about detailed day-to-day operations by a senior leadership team comprising the Executive Director, Chief Operating Officer, Editorial Director, Director of Communications & Public Policy, and Director of International Outreach.
The Chairman of the Board and the Chairman of the Finance and General Purposes Committee form the Remuneration sub-committee which reviews the Executive Director’s performance annually. Three of the Trustees, including the Chairman of the Board, form a Nominations subcommittee which recommends potential Trustees to the full Board from time to time.
Three of the Trustees, who must be current or retired academics, lead the Academic Advisory Council (which has no fixed number), which meets annually and communicates more regularly with a wider network of between 50-100 academic fellows to support the academic work of the IEA. This includes writing, editing, peer review and setting academic standards.
Three of the Trustees, 3-5 external advisors, and temporarily an external acting Chairman form the Education Advisory Committee, which meets biannually and communicates more regularly with a wider network of 50-100 educators to support the educational outreach work of the IEA. This includes speaking in schools and universities, curriculum alignment, digital resources and supporting staff in the education team.
The IEA also seeks input and advice from an Advisory Council which is led by the Treasurer and has no fixed number of members. The Council supports the IEA’s outreach work to new individual donors, corporations and trusts, to ensure the long-term viability of the charity. The remits of both the Academic Advisory Council and Advisory Council are being reviewed in 2024.
Page 2
The Institute of Economic Affairs TRUSTEES’ REPORT
In December 2023, the position of Director General was retired and the former holder of the position began a new contract as Senior Economics Fellow, from which he resigned in January 2024 to pursue a new venture outside the IEA. The new title for the chief officer of the IEA is Executive Director and Ralph Harris Fellow. Following the unrelated exit of the former Academic and Research Director, the title of this position reverted to Editorial Director, as used previously.
OBJECTIVES AND ACTIVITIES
The charity’s main aims are to promote learning by means of research into economics and political science and to improve public understanding thereof. We try to achieve our objectives by means of the activities listed below, which include allocated support costs.
Academic programmes:
-
Research - conducting research and publishing books, papers, and briefings.
-
Education – organising events, seminars and conferences – many of them for students
-
International – establishing partnerships with think tanks, mainly in Europe, Africa and Asia
-
Communicating and distributing our work through traditional and digital media
Fundraising and subscriber support (more details of our approach are provided below).
PUBLIC BENEFIT
As detailed above, the charity’s main aims are to promote learning by means of research into economics and political science and to improve public understanding thereof. We bring analysis of issues relating to political economy to the public’s attention through our various academic programmes and other activities. The Trustees confirm that, in exercising their powers and fulfilling their responsibilities in pursuit of the aims described above, they have paid due regard to the guidance on public benefit published by the Charity Commission.
FUNDRAISING
The IEA is entirely independent of any political party or group and is funded by voluntary donations from individuals, companies and foundations who want to support its work plus small amounts of income from subscriptions, event partnerships, conferences, book sales and investments.
The IEA does not use commercial fundraisers nor carry out mass mailing/communications exercises. Most donors come to the IEA unprompted or via third party recommendations. Where the IEA seeks prospective donors to pro-actively reach out to, this is done using published data from the Electoral Commission and similar organisations.
Communications with donors are in the format and frequency they prefer. Internal protocols exist to desist from communicating with donors who have ceased to donate and have not responded to further communication. New donors are investigated to the best of the IEA’s ability to ensure that donations have not come from government organisations and that they are from people or organisations of good standing.
A diligent approach is taken to ensure that all donations are intended, not accidental or from someone who may not understand the nature of the donation they are giving. The IEA has received no complaints regarding its fundraising activities.
REVIEW OF ACHIEVEMENTS
We produced 20 new publications of which 5 were books, 10 were full-length Discussion Papers and 5 were Briefings. These covered a wide range of issues including classical liberal approaches to international relations, attitudes to markets in the Abrahamic religions, inflation, vaping, markets in defence procurement, social mobility, smoking prohibition, behavioural economics seen through the lens of the work of the
Page 3
The Institute of Economic Affairs TRUSTEES’ REPORT
classical economists, and the economics of catastrophic events. Our publications have been downloaded or viewed online over 100,000 times in the last year with Did Lockdowns Work? and Has Brexit Really Harmed UK Trade? among the biggest hits in terms of online reach. We have also begun to produce audio versions of some of our titles. So far, twelve of our publications have been recorded and released on our website and through a new podcast channel ‘IEA Publications’.
In partnership with John Wiley & Sons Ltd and the University of Buckingham we continue to publish the academic journal Economic Affairs, three times a year. The Journal, in print since 1980, is provided in hardcopy to university libraries and otherwise downloaded over 120,000 times a year. Our readers and contributors come from a wide range of backgrounds and disciplines, not least those working in think tanks, research institutes, and universities as well as international organisations such as the OECD. Recent wellknown names who have been published in the journal include Professor Tim Congdon, Mark Skousen and Rainer Zitelmann.
The Education department has had another successful year influencing the climate of ideas in education and academia across the UK. In 2023/24 we visited 14 schools, hosted 13 academic discussions, ran 10 internships, 3 essay competitions, 2 teachers’ seminars, an Oxbridge training day, and 2 alumni drinks receptions, connecting with over 2,500 students, 1,200 teachers and 300 university societies with our newsletters and online content. In January we hired an additional staff member to run our new Vinson Internship at the University of Buckingham, a term long research internship bringing classical liberal ideas to aspiring academics and students of Buckingham. In March we received a record number of 500 entries to our annual essay competitions and streamlined our internal processes with a project management tool, Monday.com which has improved our ability to track key metrics and enabled us to systematise the recruitment process for our internships and competitions. Professor Syed Kamall became Head of Academic Outreach in March to bolster our engagement with academics. Since then, we have seen attendance at our monthly academic lunches double and we have a conference on Markets and Morality in the works for this November. We recently launched a new alumni series ‘Career Talks’ with our Development and Operations departments, where older alumni share their insights with the younger generation of alumni on how to launch successful careers in law, finance, business and beyond.
The IEA had 5,275 media appearances across print, broadcast and online in 2023/24, which is in line with last year’s peak and amounted to an average of 14 per a day. The Institute’s publications and expert policy commentary received significant attention, including major front-page coverage of Did Lockdowns Work? in The Telegraph.
We have produced a record-breaking 260 videos, helping boost YouTube subscriber numbers by 6,800 and achieving 2.2 million views. The IEA’s Twitter/X posts had 58 million impressions, while podcasts were downloaded 86,800 times and 13,000 people receive our weekly newsletter.
The international programmes of the IEA grew significantly in terms of size and impact over 2023-24. Our international grant programme delivered 22 grants to partners, enabling 17 different translations of 10 IEA publications in 14 languages, and distributing over 16,300 printed books globally. The grants also facilitate over 50 events centred around the themes presented in our books and enable the creation of an array of new videos and social media content. In total, these activities are expected to reach an audience of over 2.5 million.
Our Initiative for African Trade and Prosperity (IATP) has supported its partners across the continent with over $55,000 worth of grants towards projects engaging with over 40,000 people in three different languages across twenty plus events. Tackling the challenges of promoting cross-border trade, the IATP has helped its partners produce three localised policy briefs which are being used to educate policy makers, academics and the media across the region.
Our European outreach initiatives reached new highs, as EPICENTER, our network of classical liberal think tanks, completed four major pan-European projects, leading to 37 blogs, 7 briefings, and 15 publications. These activities were mentioned by over 1000 mainstream media outlets reaching an estimated 130 million Europeans.
Page 4
The Institute of Economic Affairs TRUSTEES’ REPORT
FINANCIAL REVIEW
Total income for the year was £5,846,000 (2023: £2,318,000) and total expenditure was £2,985,000 (2023: £2,426,000). Income included the new endowment of £3,871,000 referred to below. Expenditure included £325,000 spent on essential restoration work, which was partly funded through restricted donations and partly from reserves. After taking account of gains on investments of £286,000 (2023: losses £62,000), there was a net increase in funds of £3,147,000 (2023: £170,000) in the year. Restricted income was £230,000 (2023: £569,000) compared with expenditure on restricted projects of £474,000 (2023: £336,000). Investment income on Endowment Funds during the year amounted to £105,000 (2023: £35,000). Total net assets increased to £6,319,000 (2023: £3,172,000). The financial statements, together with the notes thereto, expand on these outline details.
The Finance and General Purposes Committee and the full Board of Managing Trustees regularly review the amount of donations. Excluding the new endowment, there was a 19% decrease in donations income compared with 2022/23. We are grateful to all our donors for supporting our work.
GRANT MAKING POLICY
The Trustees make occasional grants to individuals to support their research and to attend conferences. These are often from restricted funds donated specifically for such purposes. From time-to-time grants may be made to other institutes where the Trustees think it appropriate. All such projects are assessed by reference to our mission.
INVESTMENT AND RESERVES POLICIES
The Institute’s educational mission has a long-term orientation, as noted above, whereas our ability to carry out our work depends on attracting annual donations in a highly competitive fund-raising environment. Accordingly, the Trustees’ policy is to invest conservatively. The Ralph Harris Fund is invested with a longterm time horizon. The Treasurer and the Finance and General Purposes Committee regularly review investment results.
In May 2023 the IEA signed a Memorandum of Understanding with Nigel Vinson Charitable Trust and University of Buckingham to create a new perpetual endowment fund, the Nigel Vinson Fund, under the stewardship of the IEA but with aligned purposes and common governance arrangements with the existing fund established in June 2018 by the same three parties, but under the stewardship of the University. Both funds exist to widen the understanding of the Constitution of Liberty and the freedoms that are the foundations of our society, particularly in social market economies where free speech and free trade are conducted within a moral framework. The fund contributes to the growth of academic and educational outreach work at the IEA where that work is in collaboration with the University and is focused on but not limited to the Vinson Center for Economics and Entrepreneurship and all works supportive of the aligned educational purposes of each.
The Nigel Vinson Fund is managed by Evelyn Partners, who since January 2024 have also taken over management of the Ralph Harris Fund. The Trustees appointed Tom Harris (who is unrelated) to be the Vinson Fellow on the Authorising Board of the Nigel Vinson Fund, where the IEA is also represented by the Executive Director, Tom Clougherty, and the University by the Vice-Chancellor, James Tooley.
The Trustees’ policy on reserves, which is reviewed annually, is to have sufficient liquid funds on hand to cover 10% of budgeted expenditure, which amounts to approximately £334,000. We believe this is adequate under normal circumstances to enable us to maintain operations in the event of seasonal or other fluctuations in donations and/or expenditure. This target was not met at the year end in that there was cash at bank and in hand of £66,000 in addition to the cash deposits held within the investment funds of £60,000. The Trustees have taken action to rectify this situation over the coming financial year.
The Trustees do not seek to accumulate reserves but rather to apply donations in support of the Institute’s programmes in accordance with donors’ intent. The free reserves of the charity as at 31 March 2024, defined
Page 5
The Institute of Economic Affairs TRUSTEES’ REPORT
as being unrestricted, undesignated funds not represented by tangible fixed assets, amounted to £197,000 (2023: £621,000).
RISK REVIEW
The principal risks and uncertainties to which the IEA 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 IEA’s major publications are peer reviewed. The system was managed in the period by the Academic and Research Director and supervised by the Chairman of our Academic Advisory Board, Professor Martin Ricketts.
The IEA maintains strict independence from commercial, party political or other interests. It does not accept commissions to perform research on behalf of commercial or governmental interests.
The performance of key personnel is reviewed at least annually, either by the Executive Director or by a small committee of Trustees led by the Chairman, to assess whether both the employer’s and employees’ objectives are being satisfied. As with any small organisation, it is not possible to completely protect against the loss of key people.
Financial risks and uncertainties are largely covered by the Reserves and Investment policies noted above. The Trustees examine at least once a year the major strategic, operational, and financial risks and uncertainties which the Institute faces, either at regular or special Board meetings, or through the Finance and General Purposes Committee.
FUTURE PLANS
In 2024-25, the IEA intends to continue to produce high-calibre research on economic matters, the regulatory environment, energy and climate change, lifestyle issues and more. We will continue to engage with educators, academics, universities and alumni through our extensive student and teacher outreach programme and through our comprehensive communications strategy.
TRUSTEES
The following were Trustees (who are directors for the purposes of company law) at the time of signing this report and financial statements. They all held office throughout the year ended 31 March 2024 and up to the date of signing this report, unless otherwise stated.
| Neil Record | Chairman – resigned 20 July 2023 |
|---|---|
| Linda Edwards | Chairman – appointed 20 July 2023 |
| Kevin Bell | |
| Professor Christian Bjørnskov | |
| Robert Boyd | |
| Thomas Harris | |
| Robin Edwards | Treasurer |
| Professor Patrick Minford | |
| Bruno Prior | |
| Professor Martin Ricketts |
None of the Trustees has an interest, direct or indirect, in any contract entered into by the Institute. The Trustees may from time to time and at any time, appoint any person to be a Trustee, up to the prescribed maximum of twelve. Appointments are normally made on the recommendation of the Nominations Committee. Any Trustee so appointed retains office until the next Annual General Meeting, and is then eligible for re-election on a three-year rotating basis.
Page 6
The Institute of Economic Affairs TRUSTEES’ REPORT
New Trustees, who are already familiar with the Institute prior to appointment, are ‘trained’ mostly on the job by attending meetings of Trustees. They are provided with notes covering the Institute’s mission, history, organisation, governance, and details of the other Trustees, together with the latest Trustees’ Report and Financial Statements. Newly appointed Trustees will usually already have substantial board level or departmental management experience in either the commercial or academic arenas.
PAY POLICY FOR SENIOR STAFF
The performance of key personnel is reviewed at least annually, either by the Executive Director or by a small committee of Trustees, led by the Chairman. Pay increases and bonuses are awarded to reward merit. Decisions regarding pay levels are informed by reference to other think tanks and also comparable positions in related sectors.
TAXATION STATUS
The charitable company is a registered charity and, as such, for taxation purposes is entitled to exemption under the Income and Corporation Taxes Act 1988.
AUDITOR
A resolution to reappoint Streets Audit LLP, as auditors will be put to the members at the annual general meeting.
The Trustees have taken advantage of the exemptions available under the small companies’ regime from the requirement to prepare a strategic report and in preparing the Trustees’ Report.
By order of the board
Linda Edwards Chairman ……………2024
Page 7
The Institute of Economic Affairs STATEMENT OF TRUSTEES’ RESPONSIBILITIES
The Trustees (who are also directors of the Institute of Economic Affairs for the purposes of company law) are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the Trustees are required to:
-
select suitable accounting policies and then apply them consistently;
-
observe the methods and principles in the Charities SORP;
-
make judgements and estimates that are reasonable and prudent;
-
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
In so far as the Trustees are aware:
-
there is no relevant audit information of which the charitable company’s auditor is unaware; and
-
the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.
By order of the board
Linda Edwards Chairman ………….. 2024
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 2024
Opinion
We have audited the financial statements of the Institute of Economic Affairs, (‘the charity’), for the year ended 31 March 2024 which comprise the Statement of financial activities, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).
-
In our opinion the financial statements:
-
give a true and fair view of the state of the charitable company’s affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the Companies Act 2006.
Basis for opinion
We conduced our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt about the charitable company’s ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
Other information
The trustees are responsible for the other information. The other information comprises the information included in the Annual report other than the financial statements and our Auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Page 9
The Institute of Economic Affairs INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE INSTITUTE OF ECONOMIC AFFAIRS For the year ended 31 March 2024
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Trustees’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Trustees’ Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of trustees’ remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the trustees were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies’ exemptions from the requirement to prepare a Strategic report.
Responsibilities of trustees
As explained more fully in the Trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but it is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Our approach to identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
-
the engagement partner ensured that the audit engagement team collectively had the appropriate
-
competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
-
we identified the laws and regulations applicable to the charity through discussions with trustees and other management and from our knowledge and experience of the charity and sector in which it operates;
-
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the charity including the Companies Act 2006, charities legislation, taxation legislation, data protection, employment, environmental and health and safety legislation;
-
we assessed the extent of compliance with laws and regulations identified above through making enquiries of management and inspecting legal correspondence, if required; and
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 2024
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the charity’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud,
-
their knowledge of actual, suspected and alleged fraud; and
-
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested journal entries to identify unusual transactions;
-
reviewed a sample of grants in the year to ensure accurate recognition;
-
agreed a sample of employees on the payroll to existence and agreed the accuracy of the pay;
-
assessed and reviewed the appropriateness and effectiveness of the key systems and controls;
-
assessed whether judgements and assumptions made in determining the accounting estimates set out were indicative of potential bias; and
-
investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and on-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statement disclosures to underlying supporting documentation;
-
reading the minutes of meetings of those charged with governance;
-
enquiring of management as to actual and potential litigation and claims; and
-
reviewing correspondence with HMRC, relevant regulators and the charity’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the trustees and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and it’s members as a body, for our audit work, for this report, or for the opinions we have formed.
ROBERT ANDERSON (Senior Statutory Auditor) for and on behalf of Streets Audit LLP Chartered Accountants and Statutory Auditor 1 Mark Square Shoreditch London EC2A 4EG Date: 2 December 2024 Date:
Page 11
The Institute of Economic Affairs
STATEMENT OF FINANCIAL ACTIVITIES (INCLUDING AN INCOME AND EXPENDITURE ACCOUNT) For the year ended 31 March 2024
| Notes Unrestricted funds £000 Restricted funds £000 Endowment funds £000 INCOME FROM: Donations 2 1,547 230 3,871 Legacies 22 - - Charitable activities: Publications and subscriptions 11 - - Other trading activities 51 - - Investments: Dividends receivable - - 75 Interest receivable 8 - 30 Foreign exchange gain 1 - - __ TOTAL 1,640 230 3,976 EXPENDITURE ON: Raising Funds: Fundraising and subscriber support 477 21 - Charitable activities: Academic programme: Research and Publications 687 28 - Student/Teacher outreach 454 90 - International outreach 259 186 - Communications 634 149 - __ _ TOTAL 3 2,511 474 - Net Gains on Investments: Realised gains on disposals - - 59 Unrealised gains/(losses) - - 227 _ _ NET (EXPENDITURE)/ INCOME 4 (871) (244) 4,262 Transfers between funds 418 - (418) _ _ NET MOVEMENT IN FUNDS (453) (244) 3,844 RECONCILIATION OF FUNDS: TOTAL FUNDS BROUGHT FORWARD 11,12, 13,14 1,219 346 1,607 ___ TOTAL FUNDS CARRIED FORWARD 11,12, 13,14 766 102 5,451 |
Total 2024 £000 5,670 22 11 51 75 38 1 5,846 498 715 544 445 783 __ 2,985 59 227 _ 3,147 - ___ 3,147 3,172 _ 6,319 |
Total 2023 £000 2,176 - 33 63 22 19 5 2,318 314 799 377 203 733 __ 2,426 60 (122) _ (170) - (170) 3,342 ___ 3,172 |
|---|---|---|
Page 12
The Institute of Economic Affairs BALANCE SHEET As at 31 March 2024
| Notes FIXED ASSETS Tangible assets 7 Investments 8 CURRENT ASSETS Debtors 9 Cash at bank and in hand CREDITORS: Amounts falling due within one year 10 NET CURRENT ASSETS NET ASSETS THE FUNDS OF THE CHARITY: Endowment funds 11, 14 Restricted funds 12,14 Unrestricted funds 13,14 TOTAL FUNDS 14 |
31 March 2024 £000 569 5,500 6,069 258 66 324 (74) 250 6,319 5,451 102 766 6,319 |
31 March 2023 £000 598 1,963 2,561 347 374 721 (110) 611 3,172 1,607 346 1,219 3,172 |
|
|---|---|---|---|
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.
The financial statements on pages 12 to 25 were approved by the Trustees and authorised for issue on
……………….. 2024 and are signed on their behalf by:
Linda Edwards Chairman
Page 13
The Institute of Economic Affairs STATEMENT OF CASH FLOWS For the year ended 31 March 2024
Net cash generated from/(used in) operating activities (A) Cash flows from investing activities: Dividends and interest Proceeds from sale of investments Purchase of investments Purchase of fixed assets Net cash (absorbed by)/generated from investing activities Change in cash and cash equivalents in the period (B) Cash and cash equivalents at 1 April Cash and cash equivalents at 31 March (A) RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH USED IN OPERATIONS: Net income/(expenditure) for the reporting period (as per the statement of financial activities) Adjustments for: Depreciation charges (Gains)/Losses on investments Dividends and interest Decrease/(Increase) in debtors (Decrease) in creditors Net cash generated from/(used in) operating activities (B) ANALYSIS OF CHANGES IN NET DEBT Cash at bank and in hand at 1 April Cash flow Cash at bank and in hand at 31 March |
2024 £000 2,834 113 2,102 (5,353) (4) (3,142) (308) 374 66 3,147 33 (286) (113) 89 (36) 2,834 374 (308) 66 |
2023 £000 (356) |
|---|---|---|
| 41 373 (608) (85) |
||
| (279) | ||
| (635) 1,009 |
||
| 374 (170) 23 62 (41) (74) (156) (356) |
||
| 1,009 (635) 374 |
Page 14
The Institute of Economic Affairs ACCOUNTING POLICIES
BASIS OF ACCOUNTING AND GOING CONCERN
The Institute of Economic Affairs (IEA) is a charitable company limited by guarantee, and is registered, domiciled and incorporated in England. Its registered office is 2 Lord North Street, Westminster, London SW1P 3LB. The financial statements have been prepared under the historical cost convention with items recognised at cost or transaction value except for investments which are recognised at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), effective October 2019, the Charities Act 2011, and the Companies Act 2006. The Institute constitutes a public benefit entity as defined by FRS 102.
The Trustees confirm that at the time of approving the financial statements, there is a reasonable expectation that the Institute has adequate resources to continue in operational existence for the foreseeable future. In arriving at this conclusion, the Trustees have reviewed budgets and cash flow forecasts covering a period to 31 March 2026, taken account of current and anticipated financial performance in the current economic conditions, and the Institute’s reserves position. For this reason, the going concern basis continues to be adopted in the preparation of the Institute’s financial statements.
TANGIBLE FIXED ASSETS
Fixed assets are stated at historical cost, less depreciation. Depreciation is provided on tangible fixed assets, other than freehold land, at rates calculated to write each asset down evenly over its expected useful life, as follows:-
Freehold property over 40 years Office equipment over 3 - 10 years depending on the nature of the asset Expenditure of a capital nature below £1,000 is not capitalised, but charged to the Statement of Financial Activities in the year of expenditure.
STOCKS AND WORK IN PROGRESS
No value for accounts purposes is attributed to stocks of unsold publications.
PENSION CONTRIBUTIONS
The Institute operates a defined contribution scheme. Contributions are charged to the Statement of Financial Activities on an accruals basis. Amounts payable at the period end are included in other creditors.
INCOME
Income from donations is included in income when these have been pledged by the donor, it is probable that the income will be received and the amount can be measured reliably, except:
-
when donors specify that donations given to the charity must be used in future accounting periods, the income is deferred until those periods;
-
when donors impose conditions, which have to be fulfilled before the charity becomes entitled to use such income, the income is deferred and not included in income until the pre-conditions for use have been met.
Subscription income is credited to income for the subscription period covered.
All other income including income from investments is credited to income when receivable by the charity.
EXPENDITURE
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them. All costs are allocated between expenditure categories on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly. Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources e.g. by floor space. Staff costs have been allocated according to the time spent on each activity.
Page 15
The Institute of Economic Affairs ACCOUNTING POLICIES
FOREIGN CURRENCY
Assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the Statement of Financial Activities.
RESEARCH EXPENDITURE
Research expenditure is written off in the financial statements as it is incurred.
ENDOWMENT FUNDS
The Ralph Harris Fund is an expendable endowment fund whose use is restricted to financial support for the position of the Executive Director, including employment and support costs.
The Nigel Vinson Fund is an expendable endowment fund whose use is restricted to supporting the academic and outreach work of the IEA in collaboration with the University of Buckingham.
UNRESTRICTED FUNDS
Unrestricted funds comprise those funds which the Trustees are free to use for any purpose in furtherance of the charitable objectives. Designated funds are unrestricted funds which the Trustees have currently designated for specific purposes. General funds are unrestricted funds for which no specific purposes have been designated.
RESTRICTED FUNDS
Restricted funds are those donated to the Institute for one or more specific purposes.
OPERATING LEASES
All operating lease rentals are recognised in the Statement of Financial Activities on a straight line basis over the life of the lease.
FINANCIAL INSTRUMENTS
The charity has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments. The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments.
Financial assets:
Basic financial assets, including investments held as fixed assets, and trade and other receivables, are initially recognised at transaction price.
Investments held as fixed assets comprise equities, open-ended funds, fixed interest securities and currency and are stated at year end market value (bid-price). Realised gains and losses on disposal and unrealised gains and losses due to the movement in market value of investments are recognised in the Statement of Financial Activities.
Other financial assets are assessed at the end of each reporting period for objective evidence of impairment due to reduction in the recoverable amount. Any impairment losses are recognised in the Statement of Financial Activities.
Financial liabilities:
Basic financial liabilities, including trade and other payables are initially recognised at transaction price. Any subsequent changes to amounts payable are recognised in the Statement of Financial 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 classified as current liabilities if payment is due within one year or less.
CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
There are no critical accounting estimates and areas of judgement included within these accounts.
Page 16
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
1 STATEMENT OF FINANCIAL ACTIVITIES – COMPARATIVE FIGURES
| Notes Unrestricted funds £000 Restricted funds £000 Endowment fund £000 INCOME FROM: Donations 2 1,607 569 - Charitable Activities: Publications and Subscriptions 33 - - Other trading activities 63 - - Investments: Dividends receivable - - 22 Interest receivable 6 - 13 Foreign exchange gain 5 - - __ TOTAL 1,714 569 35 EXPENDITURE ON: Raising Funds: Fundraising and subscriber support 300 14 - Charitable activities: Academic programme: Research and Publications 692 107 - Student/Teacher outreach 412 168 - Communications 686 47 - __ _ TOTAL 3 2,090 336 - Net Gains on Investments: Realised gains on disposals - - 60 Unrealised losses - - (122) _ _ NET (EXPENDITURE)/INCOME 4 (376) 233 (27) Transfers between funds 200 - (200) _ _ NET MOVEMENT IN FUNDS (176) 233 (227) RECONCILIATION OF FUNDS: TOTAL FUNDS BROUGHT FORWARD 11,12 13,14 1395 113 1,834 ___ _ TOTAL FUNDS CARRIED FORWARD 11,12 13,14 1,219 346 1,607 |
Total 2023 £000 2,176 33 63 22 19 5 2,318 314 799 580 733 __ 2,426 60 (122) _ (170) - (170) 3,342 ___ 3,172 |
|---|---|
Page 17
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
| 2 DONATIONS Foundations, corporate and individuals Restricted Unrestricted Endowment 3 ALLOCATION OF COSTS 2024 Fundraising and subscriber support Research and Publications Student/Teacher Outreach International Outreach Communications |
31 March 2024 £000 230 1,547 3,871 5,670 Direct costs £000 Support costs £000 21 477 104 611 67 477 235 210 173 610 600 2,385 |
31 March 2024 £000 230 1,547 3,871 5,670 Direct costs £000 Support costs £000 21 477 104 611 67 477 235 210 173 610 600 2,385 |
31 March 2024 £000 230 1,547 3,871 5,670 Direct costs £000 Support costs £000 21 477 104 611 67 477 235 210 173 610 600 2,385 |
31 March 2023 £000 569 1,607 - 2,176 2024 Total £000 498 715 544 445 783 2,985 |
|---|---|---|---|---|
| 600 |
Included within direct costs of International Outreach are grants of £94,149 (2023: £26,056) paid to organisations.
ALLOCATION OF SUPPORT COSTS 2024
| Personnel costs | 1,642 | |
|---|---|---|
| Office costs | 311 | |
| Property costs | 415 | |
| Travel costs | 17 | |
| _____ | ||
| 2,385 | ||
| _____ | ||
| Support costs have been allocated as follows: | ||
| Support | Personnel | |
| costs | costs | |
| Fundraising and subscriber support | 20% | 20% |
| Publications | 27% | 25% |
| Student/Teacher Outreach | 31% | 15% |
| International Outreach | 4% | 11% |
| Communications | 18% | 29% |
Page 18
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
| 3 ALLOCATION OF COSTS 2023 Fundraising and subscriber support Research and Publications Student/Teacher Outreach Special Events Communications ALLOCATION OF SUPPORT COSTS 2023 Personnel costs Office costs Property costs Travel costs Support costs have been allocated as follows: Fundraising and subscriber support Research and Publications Student/Teacher Outreach Special Events Communications 4 NET EXPENDITURE Net expenditure for the period is stated after charging: Depreciation – charge for period Governance Costs - Auditor’s remuneration Other Governance Costs Legal fees Operating lease rentals – plant and machinery |
Direct costs £000 Support costs £000 2023 Total £000 27 287 314 157 642 799 189 391 580 - - - 158 575 733 _ ________ _________ 531_ 1,895 2,426 ______ _ _________ _1,579 209 79 28 _ 1,895_ ____ Support costs Personnel costs 16% 15% 33% 34% 29% 19% 0% 0% 22% 32% 31 March 2024 £000 31 March 2023 £000 33 23 10 6 5 9 50 1 12 16 |
|---|---|
Page 19
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
5 TAXATION
The Institute is not liable to corporation tax on its income and gains in the current period to the extent that they are applied for charitable purposes.
| EMPLOYEES The average monthly number of persons employed by the Institute during the period was: Office and management Staff costs for above persons: Wages and salaries, including benefits Social security costs Other pension costs The number of employees whose emoluments as defined for taxation purposes amounted to over £60,000 in the period was as follows: £60,001 - £70,000 £80,001 - £90,000 £90,001 - £100,000 £100,001 - £110,000 £150,001 - £160,000 £180,001 - £190,000 |
31 March 2024 No. 31 March 2023 No. 22 22 31 March 2024 £000 31 March 2023 £000 1,129 1,067 129 128 50 45 1,308 1,240 31 March 2024 No. 31 March 2023 No. 3 1 - 1 1 - - 1 - 1 1 - |
|---|---|
6 EMPLOYEES
The employees earning over £60,000 participate in the company defined contribution pension scheme. Contributions paid in the period in respect of these employees amounted to £20,437 (2023: £42,970).
The key management personnel of the Institute comprise the Trustees, alongside a senior leadership team (SLT) currently comprising the Executive Director (replacing the Director General in December 2023), the Chief Operating Officer, the Editorial Director (replacing the Academic & Research Director in January 2024), the Director of Communications & Public Policy and the Director of International Outreach (both from February 2024). The former Chief Marketing & Creative Officer exited the SLT in December 2023 and the former Development Director in August 2023. The total employee benefits of these key management personnel were £449,920 (2023: £535,312), including pension and social security costs, and also consultancy fees paid to the Academic & Research Director and the Chief Marketing & Creative Officer who provided their services on a consultancy basis.
No Trustees, or persons related or connected to them, received any remuneration or reimbursement of expenses from the Institute during the period, other than as detailed in note 17 below.
Page 20
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
7 TANGIBLE FIXED ASSETS
| Freehold property £000 Office equipment £000 Cost 1 April 2023 965 97 Additions in year - 4 Disposals in year - - 31 March 2024 965 101 Depreciation 1 April 2023 455 9 Charged for period 18 15 Released on disposals - - 31 March 2024 473 24 Net book value 31 March 2024 492 77 31 March 2023 510 88 |
Total £000 1,062 4 - 1,066 464 33 - 497 569 598 |
|---|---|
8 FIXED ASSET INVESTMENTS
| Managed Portfolios £000 Open-end funds £000 Market value at 1 April 2023 - 856 Additions 5,083 - Disposals - (834) Investment gains 308 (22) Market value at 31 March 2024 5,391 0 __ _ Historical cost at 31 March 2024 5,083 0 ___ Historical cost at 31 March 2023 - 776 |
Cash held on deposit £000 1,107 270 (1,268) - 109 __ 109 ____ 1,098 |
Total £000 1,963 5,353 (2,102) 286 5,500 _ 5,192 __ 1,874 |
|
|---|---|---|---|
Page 21
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
| 9 | DEBTORS | 31 March | 31 March | 31 March | 31 March |
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| £000 | £000 | ||||
| Trade debtors | 51 | 67 | |||
| Taxation recoverable | 5 | - | |||
| Prepayments and accrued income | 202 | 280 | |||
| 258 | 347 | ||||
| 10 | CREDITORS: Amounts falling due within one year | 31 March | 31 March | ||
| 2024 | 2023 | ||||
| £000 | £000 | ||||
| Trade creditors | 21 | 26 | |||
| Taxation and social security | 26 | 31 | |||
| Accruals and deferred income | 27 | 53 | |||
| 74 | 110 |
Deferred income has arisen as a result of 2 year subscriptions paid in advance. Amounts are released to the Statement of Financial Activities within the period to which the subscription relates.
| 31 March | 31 March | ||||||
|---|---|---|---|---|---|---|---|
| 2024 | 2023 | ||||||
| £000 | £000 | ||||||
| Deferred income at | 1 April 2023 | 1 | 1 | ||||
| Released to Statement of Financial | Activities in period | (1) | (1) | ||||
| Deferred in period | 1 | 1 | |||||
| Deferred income at | 31 March 2024 | 1 | 1 | ||||
| 1 | EXPENDABLE ENDOWMENT FUNDS | ||||||
| At Endowment |
Investment | Transfers | Investment | At | |||
| 1 April | in the | Income | between | Gains | 31 March | ||
| 2023 | Year | £000 | funds | £000 | 2024 | ||
| £000 | £000 | £000 | £000 | ||||
| Ralph Harris Fund | 1,607 | - | 31 | (369) | 6 | 1,275 | |
| Nigel Vinson Fund | - |
3,871 |
74 |
(49) |
280 |
4,176 |
|
| 1,607 | 3,871 | 105 | (418) | 286 | 5,451 |
11 EXPENDABLE ENDOWMENT FUNDS
The Ralph Harris Fund has been established as an expendable endowment fund to endow the position of the Executive Director of the IEA as “Executive Director and Ralph Harris Fellow.”
Page 22
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
During the year, the Nigel Vinson Charitable Trust gifted a sum to the IEA to form the Nigel Vinson Fund to endow joint working between the IEA, the University of Buckingham and the Nigel Vinson Charitable Trust:
To widen the understanding of the Constitution of Liberty and the freedoms that are the foundations of our society, particularly in social market economies where free speech and free trade are conducted within a moral framework;
To promote the scholarly exploration of these ideas;
To promote the career progression of young scholars who engaged with those ideas;
To devise and deliver academic programmes and events to educate the wider academic community, and younger people more widely in the nature and importance of these ideas;
And through this to contribute to the growth of the academic and outreach work of the IEA where that work is in collaboration with the University of Buckingham, focused on but not limited to the Vinson Center for Economics and Entrepreneurship, and all works supportive of the aligned educational purposes of each.
12 RESTRICTED FUNDS
| At 1 | At 31 | |||
|---|---|---|---|---|
| April 2023 | Income | Expenditure | March 2024 | |
| £000 | £000 | £000 | £000 | |
| Events and Publications | - | 1 | (1) | - |
| Linda Whetstone Scholarship | - | 32 | (32) | - |
| Building Restoration Fund | 104 | - | (104) | - |
| IATP | 110 | 65 | (127) | 48 |
| Student Outreach and Opportunity | 16 | 11 | (7) | 20 |
| Epicenter | 116 | 28 | (110) | 34 |
| Think Tent | - | 44 | (44) | - |
| Vinson Centre at the University of | ||||
| Buckingham | - | 49 | (49) | - |
| ______ | ______ | ______ | ______ | |
| 346 | 230 | (474) | 102 |
The IEA secured funds for a scholarship in memory of Linda Whetstone.
Donations were received in response to a fundraising appeal to cover the costs of essential building restoration work.
The Initiative for African Trade and Prosperity (IATP) is guided by the core belief that bottom-up free market policies are the most effective way to alleviate poverty, amplify liberty and create a more peaceful future.
The IEA’s Student Outreach Programme aims to spread understanding of free markets and their benefits to students, and includes a Student Opportunity Fund to provide financial support to students who otherwise couldn’t access IEA programmes.
Donations were received to support Epicenter, a network of public policy organisations from European countries.
Donations were received to establish a marquee, Think Tent, organised with two other think tanks, to be the central point for free market debate at the Conservative Party Conference.
The Vinson Centre at the University of Buckingham seeks to further the study of liberal economics in the UK.
Page 23
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
13 UNRESTRICTED FUNDS
| UNRESTRICTED FUNDS | |||
|---|---|---|---|
| Designated Funds Fixed Asset Fund Designated unrestricted funds Unrestricted general funds |
At 1 April 2023 £000 510 510 709 _____ 1,219 |
Income £000 Expenditure £000 Transfers £000 - (18) - - (18) - 1,640 (2,493) 418 __ _ ___ 1,640 (2,511) 418 |
At 31 March 2024 £000 492 |
| 492 274 _____ 766 |
The Fixed Asset Fund represents donations made to the Institute currently designated and used by the Trustees for the purpose of acquiring freehold and investment property. A transfer has been made between the Fixed Asset Fund and general funds in order to reflect the depreciation of the freehold property in the period.
Unrestricted general funds represent free reserves after allowing for all designated funds.
14 ANALYSIS OF NET ASSETS BETWEEN FUNDS
| Designated Funds £000 General Funds £000 Restricted funds £000 Endowment funds £000 Fund balances at 31 March 2024 are represented by: Tangible fixed assets 492 77 - - Investments - 49 - 5,451 Current assets - 222 102 - Current liabilities - (74) - - _ Total net assets 492 274 102 5,451 |
Total funds £000 569 5,500 324 (74) 6,319 |
|---|---|
15 PENSION SCHEMES
The Institute operates a defined contribution scheme and contributions to the scheme are made to an independent insurance company.
The pension costs of the Institute’s scheme amounted to £50,209 (2023: £45,364). There were no contributions outstanding at the end of the period.
Page 24
The Institute of Economic Affairs NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
16 STATUS
The Institute is a company limited by guarantee and has no share capital. The Institute had 12 (2023: 10) members at the period end.
The Memorandum of Association provides that members are liable to contribute a sum not exceeding £1 each in the event of the company being wound up while they are members or within one year of ceasing to be members.
17 RELATED PARTY TRANSACTIONS
During the period £41,575 was incurred in employment costs (2023: £122,751) of the partner of the Director General, who was a full-time employee of the Institute until August 2023. There was no amount outstanding at this or the previous period end in respect of these transactions.
Donations from trustees in the period totalled £51,490 (2023: £126,050). Donations from staff and consultants in the period totalled nil (2023 £610). There were no amounts outstanding at this or the previous period end in respect of these transactions.
Donations and fees of £580,600 (2023: £376,370) were received or pledged in the period from IEA Forum Limited, a company in which a Trustee is a director, and three Trustees are members. £122,600 (2023: £80,792) was outstanding at the year-end in respect of these transactions.
No conditions were attached to any of these donations which would require the charity to significantly alter the nature of its existing activities.
The IEA conducts its European Outreach activities through Epicenter, a network of public policy organisations from European countries. Epicenter is an AISBL established in Belgium, with IEA senior employees as its directors. The movement in restricted funds relating to Epicenter are shown in note 12. In addition, expenditure from unrestricted funds of £86,417 (2023: £49,654), and the donation of the services of the Director of Epicenter for the first five months of the year, were made to support the activities of Epicenter during the year. The employment costs relating to the Director of Epicenter were £15,486 (2023: £29,058).
18 COMMITMENT UNDER OPERATING LEASES
| The total future minimum lease payments, at the reporting date, | 31 March | 31 March | |
|---|---|---|---|
| under non-cancellable operating leases are as follows: | 2024 | 2023 | |
| £000 | £000 | ||
| Amounts due: | |||
| - within one year |
10 | 13 | |
| - between one and five years |
13 | 23 | |
| 19 | FINANCIAL INSTRUMENTS | 31 March | 31 March |
| 2024 | 2023 | ||
| £000 | £000 | ||
| Financial Assets, at fair value: | |||
| Investments held as fixed assets | 5,451 | 1.954 |
Page 25