# **YOUR FUTURE** # **Annual Report 2020** IHEEM Annual Report 2020 ## **Contents** A Message from the President .................................................................................................... 3 Chief Executive Statement ........................................................................................................... 4 Timeline of Key Activity ............................................................................................................... 6 IHEEM Response to COVID-19 ..................................................................................................... 7 2020 Healthcare Estates Online .................................................................................................. 8 New IHEEM Website ...................................................................................................................... 9 Learning & Development ............................................................................................................ 10 Developing Future Leaders ........................................................................................................ 11 Regional Branches ....................................................................................................................... 13 Technical Platforms ..................................................................................................................... 14 Company Affiliates ...................................................................................................................... 15 IT Infrastructure Modernisation ................................................................................................ 16 Governance ................................................................................................................................... 17 Membership Profile 2020 ........................................................................................................... 18 At a Glance Business Plan ........................................................................................................... 19 Knowledge Partners & Key Stakeholders .................................................................................20 Financial Report ........................................................................................................................... 21 Looking Forward to 2021 ...........................................................................................................23 **2** IHEEM Annual Report 2020 ## **A Message from the President** Welcome to IHEEM’s Annual Report which aims to provide you with an update of IHEEM’s activity over the past 12 months. Against the unprecedented backdrop of the global coronavirus pandemic, the Institute has continued to support our members whilst being conscious of not diverting them from their valuable work providing products and services to keep NHS frontline staff and patients safe. One of the key outputs from IHEEM’s response to COVID-19 has been its close working with the international arms of the Institute and this has brought into focus how much there is to learn from other parts of the world in relation to the challenges that affect our profession globally. I am confident that this sharing of information, experience and knowledge will continue in the long-term. Despite the challenges that we have all faced during 2020, the Institute has had a fulfilling and successful year which has seen membership numbers rise and new applications regularly submitted. It is extremely encouraging to see that our profession recognises the value of membership to a professional organisation. Looking back for a moment, I would like to remind everyone of the Healthcare Estates Conference, Exhibition & Awards in 2019 which was the largest, and, in my view the best, to date. We hosted over 4000 delegates and it was a truly international event with visitors from many different countries. The decision to defer the live event in 2020 was undoubtedly the right decision to make. However, the success of our online “Digital Week” event in October 2020 is a firm indication that there is an appetite for our members to engage in a new and different way as part of what is now deemed “the new normal”. One programme that I am especially proud of is the work we are doing for future leaders and the STEM agenda, which links to one of the key themes I introduced at the start of my term as President. At the beginning of 2020, we went into schools and directly engaged with over 200 students, through a series of workshops and presentations, which you can read more about in this report. There are also 74 students currently taking advantage of our offer of free IHEEM membership. I believe the Institute now provides something for people at every stage in their career including apprentices, tradespeople and those who wish to follow the non-standard route to accreditation. Finally, I would like to take this opportunity to thank our Chief Executive and everyone at Head Office, I am proud to work alongside such a strong, committed and passionate team. I am also grateful to all our volunteers who devote their valuable time each year to help us fulfil our vision. As I end my term as President, I look to the future of IHEEM with optimism and inspiration. **3** IHEEM Annual Report 2020 ## **Chief Executive Statement** I am delighted to be introducing the IHEEM Annual Report 2020; my first as CEO. Earlier this year we published IHEEM’s first 5 Year Business Plan which set out the Institute’s core objectives and key deliverables. A copy of the “At a Glance Business Plan” is provided in this report. I believe that whilst the healthcare efm industry remains an attractive sector, there is no doubt that it continues to face significant change and challenge. That is why it is vital for the Institute to have a clear strategic focus, alongside robust financial controls and innovative investment so that it can effectively meet the evolving needs and expectations of its membership. The outbreak of Coronavirus is still a major global concern and we continue to monitor developments very closely. From the very start, the safety and wellbeing of our members, staff and volunteers has been our overriding priority but we have also done all we can to ensure business continuity and have worked tirelessly to mitigate any operational and financial risks. We took the decision to put on hold the recruitment to vacant positions at Head Office because of the uncertainty. We have also reviewed and strengthened our corporate governance and professional standing and will continue to monitor and update this as the Institute develops. We deferred the live 2020 Healthcare Estates Conference & Exhibition but in its place ran our first online and on-demand digital conference. The feedback has been extremely positive and confirms that this new way of engaging was valuable and worthwhile. I would like to thank everyone who supported it including all the speakers, chairs and of course those who registered and watched. I firmly believe that, throughout the pandemic, we have remained relevant to the members that we serve. We immediately began to provide knowledge, information and regular updates on best practice and lessons learned from across the world. We also developed toolkits to support critical services such as oxygen and medical gas supplies and we harnessed digital technology to allow us to engage and provide that knowledge and information in new and inventive ways. **4** IHEEM Annual Report 2020 One of the universal lessons of the COVID-19 crisis has been the vital importance of strong and resilient networks and our Technical Platforms have provided specialist advice to Government via NHS England and NHS Improvement, SAGE and have also supported the Royal Academy of Engineering in their response. Alongside this vital work, we have started our modernisation programme with the development of our IT infrastructure as well as the launch of our new website which features a new Learning Hub, Knowledge Portal and our new automated CPD recording system. We are also establishing new partnerships and developing a new annual online-digital programme. These are all significant advances for the Institute and support our commitment to improve our offer to members and company affiliates and to provide accessible and affordable routes to development and opportunity. There is little doubt that conditions are challenging right now. However, IHEEM has existed for over 75 years and will be accustomed to operating through periods of social and economic uncertainty. I am positive that the Institute will emerge from the impact of recent events even stronger and will continue to serve our members in both traditional and modern ways to meet their personal and professional needs and aspirations. I would like to thank our President, Council Members and volunteers for their support and dedication. I would especially like to thank the Head Office team for their work this year and for their support to me and all those who engage with the Institute. This report gives me great confidence for the future and I very much look forward to 2021 and beyond and continuing to deliver the priorities and commitments we set out earlier this year in our 5 Year Business Plan. **5** ## **Timeline of Key Activity** Hosted International Healthcare Estates Conference, Exhibition & Awards Dinner “A Vision for 2030” Parliamentary Event & Lord Carter Innovation Award IHEEM begins to formally engage with NHSE&I on National efm Guidance & Standards **Oct-Dec 2019** ## 5 Year Business Plan Published Updated Contract in place for Annual Healthcare Estates Conference & Exhibition IHEEM begins corporate governance improvements Review of TP/BoR(AE) Terms of Reference commences First COVID-19 International Newsletter published **Jan-Feb 2020 Mar-Jul 2020** Tees Valley STEM Workshops Branch IT Collaboration portal created **Aug-Sep 2020** IHEEM becomes formal Policy Partner with the RAE Healthcare Estates Online Webinars from Exhibitors ## Healthcare Estates Online - Digital Week Development of Healthcare Engineering Apprenticeship Programme announced IHEEM confirmed as IET Faraday Challenge Partner Accredited “Health Facility Planning” online course New website launched **Oct-Nov 2020** Mind Matters Workshop Head Office & Council Strategic Planning Day CPD Certified body appointed Automated CPD recording system launched IHEEM Annual Report 2020 ## **IHEEM Response to COVID-19** **Business Plan Core Objectives 2, 6 and 7** The Institute’s swift and continued response to the global pandemic dominated its business activity for a large part of 2020. The primary focus was to ensure the safety and well-being of its staff and volunteers and in the case of live events, delegates and exhibitors whilst achieving the right balance in terms of business continuity and support to its global members, the national efm team and the wider engineering community. Issued IHEEM Operational Policy outlining immediate investment to facilitate Head Office remote working; all meetings and events to be deferred or held online; early negotiation with venues to eliminate financial penalties. Issued national and international call-outs to IHEEM’s individual and corporate membership for technical and professional support to both NHS England & Improvement and World Health Organisation. Over 150 responses were forwarded via IHEEM's dedicated mailbox. Developed free toolkits to support front-line engineering staff eg: Medical Gas Oxygen Demand Tool & Medical Gas Cylinder Management and Tracking Tool. Published fortnightly international newsletter sharing intelligence, best practice and personal experience to its 5,000 global membership across 45 countries. Established a Specialist Technical Panel to provide fast response to national and local calls for specialist advice and guidance on technical challenges raised by COVID-19. IHEEM formally recognised as part of the RAE response Developed and published Worked closely with to UK Government in IHEEM Technical national efm team and identifying and sourcing Factsheets on key topics devolved administrations to engineering advice and eg: Reprocessing of PPE disseminate key messages expertise. (Respirators) and Fire Safety. to the sector. IHEEM’s Technical Platforms (on page 14) continue to play a significant part in the Institute’s ongoing support to the COVID-19 pandemic and many of the webinars during Digital Week **(** page 8) focussed on the local, national, and international response. **7** IHEEM Annual Report 2020 ## **2020 Healthcare Estates Online** ## **Business Plan Core Objective 5** In response to the need for engaging and connecting with the national and international healthcare efm community, the Institute developed a programme of digital events, webinars and online resources under the banner of _Stay Connected. Keep Informed. Get Ahead._ The programme, including the **Digital Week** held 5-9 October, offered exclusive free content, presentations from high profile keynote speakers and resources to learn and share knowledge and experiences during this challenging period for our sector. **----- Start of picture text -----**
5 themes
41 live & 30+ hours
on-demand of content
webinars
3,000
93 UK & registrations
international from 33
speakers countries
**----- End of picture text -----**
The event was extremely successful and provides the foundation to develop and take forward IHEEM’s Digital Programme into 2021 and beyond (page 23) **Thank you to everyone who contributed and made this event a success!** **8** IHEEM Annual Report 2020 ## **New IHEEM Website** ## **Business Plan Core Objectives 1, 6 and 9** The new website was launched in October 2020 and feedback has been positive in terms of its content and usability. This meets the Institute’s goal to provide its members with an easier way to access details about IHEEM’s services and browse up-to-date information, knowledge and CPD training offers and supports its commitment to improving the offer to both our individual members and company affiliates. Key Features - Learning Hub – Knowledge, Information, Training, Career Development; - Career Map (in partnership with HEFMA); - Future Leaders and STEM resources; - Technical Guidance and Industry News; - Authorising Engineers – new IHEEM Expert Directory “Find An Expert”; - Company Affiliate Directory – dedicated information, marketing and promotion material. **9** IHEEM Annual Report 2020 ## **Learning & Development** ## **Business Plan Core Objectives 1, 2, 4 and 7** The new Learning Hub is a “one stop shop” within the IHEEM website where members can access a wide range of resources to support their education and training needs. In addition, there were two major developments in 2020, working in tandem, to support members CPD requirements and improve IHEEM’s offer to members: ## **Partnership with CPD Certification Body** The Institute is committed to delivering as much CPD content as possible to support its members in their career development and learning. Partnering with the **CPD Certification Service** ensures that all the CPD material IHEEM offers meets qualitative standards and has been through a rigorous and impartial assessment process. Wherever possible all training courses and resources will be CPD certified. ## **Development of a new Knowledge Portal** A brand new feature of the Learning Hub is the **IHEEM Knowledge Portal** (See _IT Modernisation Programme_ page). This digital library allows members to access a wide range of material including: - National and International Standards and Guidance - IHEEM’s own Factsheets and Practitioners Guidance - Practical Case Studies - Personal Narratives A number of new training and career development opportunities were also announced in October 2020: - **9 Day Health Facility Planning Course** – Introduces the specialised aspects of health facility planning and design to candidates with an interest in developing their skills to take on infrastructure projects in public and private healthcare sectors. The first course, held in November 2020, sold-out and a further 4 sessions are planned for 2021. - **IHEEM Coaching & Mentoring Programme** – Training for appropriately experienced members to support others through the non-standard route to accreditation (IEng/CEng). - **IHEEM Assessor & Reviewer Training** - Teach members how to assess professional registration applications by looking at qualifications, experience and CPD against the required standards. - **IHEEM Professional Registration Interviewer Training** – Training to acquire the skills required to participate in conducting a structured interview for a professional registration candidate. **10** IHEEM Annual Report 2020 ## **Developing Future Leaders** **Business Plan Core Objectives 1 and 3** ## **(STEM) Science, Technology, Engineering & Mathematics** Encouraging new entrants, and particularly future leaders, into healthcare engineering and estates management, and wider STEM roles, is an ongoing priority for IHEEM. It is one of the Institute’s _**Five Key Themes**_ and will be a focus for the term of the President Elect Paul Fenton. IHEEM now offers free Student Affiliate Membership and there are 74 students currently registered who are enjoying the wide range of benefits that this brings. In January 2020, Monira Kaouech, the Institute’s STEM Ambassador, spent a week holding “People Like Me” workshops and presentations in schools and colleges in the North East of England. She was supported by efm healthcare professionals already in the field, including Alan Spraggon, Estates Manager at South Tyneside and Sunderland Healthcare Group and IHEEM Council member and six apprentices from the Northern and Yorkshire NHS Assessment Centre and the “Engineering Together – The North East Community of Professional Engineering” partnership. The workshops gave young students a flavour of a career in healthcare engineering and estate management, the associated construction supply chain, and of engineering in the wider context. There is now a dedicated “Future Leaders” section within the new IHEEM website. This includes case studies from healthcare engineers and apprentices and a set of career maps that outline the different options available within the sector. There is also a STEM Learning Hub and a Skills Hub both of which provide support and resources to students such as CV writing and interview techniques. In October 2020 IHEEM were delighted to announce that they would be the IET Education Theme Partner for the 2021/22 season of the Faraday Challenge. Based on a real-world problem, the challenge brings together STEM subjects in an engaging way and encourages the development of young peoples problem solving and communication skills. The Institute is currently working with the devolved administrations to devise a problem that the young competitors will seek to address and the solution to which will benefit healthcare engineering. **11** IHEEM Annual Report 2020 ## **Apprentices** In October 2020 IHEEM announced that, in collaboration with the **Northern and Yorkshire NHS Assessment Centre** , it is creating a national healthcare engineering apprentice programme which will be delivered through a national procurement to be developed and managed in partnership by The NHS Salisbury Procurement Hub. ## **Diversity and Inclusion** The “About Us” section within the new IHEEM website highlights what the Institute is actively doing through its Diversity and Inclusion working group, as well as providing useful information, resources and helpful links to other websites and external resources. In addition, this Working Group focuses on identifying and addressing perceived barriers within the Institute and wider engineering profession. In November 2019 IHEEM held a round-table event at the ETA Projects in London which brought together IHEEM's STEM ambassador, female engineers and estates professionals. Topics under discussion were encouraging people from diverse genders and ethnic minorities into the sector and how enthusiastic female engineers can make a real impact in attracting new recruits into the profession. The accredited programme, which also has the full support of HEFMA, will be based on the successful apprenticeship scheme that has been running in the North East for over 40 years. The four years of matched funding that IHEEM committed to providing earlier in the year (£30k/ per annum) will now form part of this partnership arrangement. This year’s focus provided an opportunity to highlight lesbian, gay, bisexual, transgender and questioning (LGBTQ+) engineers alongside current and historic barriers to inclusion and presenting positive examples and tools that can help to develop a more inclusive culture within engineering for LGBTQ+ engineers. Unfortunately, many of the events that IHEEM were scheduled to support were postponed due to the COVID-19 pandemic. However, the Working Group has taken the decision to extend this focus into next year, where it will become an important component of IHEEM’s new 2021 Digital Programme (page 23). **12** IHEEM Annual Report 2020 ## **Regional Branches** ## **Business Plan Core Objective 3 and 5** There is no doubting the impact COVID-19 has had on the planned face-to-face activity undertaken by IHEEM Branches and there remains careful consideration in balancing the need to keep connected with members, whilst recognising that many are still fully occupied with the demands of their day job. Prior to the health crisis, Branches, supported by company affiliates in some cases, delivered a number of seminars and technical presentations across a wide range of topics including: - Water Management & Safety; - Health & Safety; - Business Focussed Maintenance; - Engineering Smart Hospitals; - UPS/IPS Systems for Healthcare; - Biomedical Waste Management; - Patient Response Systems; - Synergy to the design and enhancement of the patient room; - “A Deep Dive into NHS Estates” – Best Practice in Estates Management & Compliance; - Medical Locations, Medical IT Systems and Uninterruptable Power Supplies; - Sustainability & Climate Change; - Stress & Resilience; - CEF Energy Infrastructure Scheme at Wythenshawe Hospital; - Preventing Corrosion in Heating & Cooling Systems; - Medical Locations, Medical IT Systems and Uninterruptable Power Supplies. Head Office is working closely with the Branches to provide additional support e.g. data and document management, business and financial management support, so that they can be incentivised to be more active locally. Branches now have their own dedicated web-space in the new IHEEM website where they can communicate directly with members and keep them up-to-date with events and activities. A new monthly live **Branch of the Month** webinar was announced in November 2020, with the aim of providing updates for both individual and company affiliate members on current and planned activity, as well as taking questions and discussion topics from the audience. The webinars will also be available to watch on-demand via the IHEEM Learning Hub for members only. All IHEEM branches will play a key part in the IHEEM 2021 Digital Programme (page 23) as well as developing new ways to engage locally and provide opportunities to network, develop and share knowledge with their members. **13** IHEEM Annual Report 2020 ## **Technical Platforms** ## **Business Plan Core Objectives 2, 5, 7 and 9** IHEEM’s Technical Platforms have played a vital role in the Institute’s response and support to the COVID-19 pandemic (page 7). The IHEEM Specialist Technical Panel was quickly established to respond to a number of requests for technical input from the UK Government and SAGE, as well as other engineering bodies such as the Royal Academy of Engineers (RAE) across a wide range of engineering challenges that had arisen during the pandemic. The Panel, formed from the Chairs of each platform and led by Pete Sellars, also provided engineering support to the World Health Organisation through its international links to IFHE and IFHEEU. It also produced a series of IHEEM COVID-19 Factsheets on topics such as PPE Reprocessing and Fire Safety. As a member of the NHS England & NHS Improvement’s Future Standards Working Group, the Technical Platforms have also provided comment and feedback to several draft national standards and guidance documents, including the ministerial priorities around the Health Infrastructure Plan (HIP) such as the Digital Blueprint and Patient Flow as well as a number of Health Building Notes (HBNs). Along with the IHEEM Branches, the Technical Platforms will have a key role in the 2021 Digital Programme (page 23) as well as the providing articles and sharing specialist knowledge and information to members via the IHEEM Quarterly Newsletter, which was launched in November 2020. The terms of reference and management arrangements of the Technical Platforms and the Boards of Registration (AE) are currently under review. An internal Working Group has been established to provide recommendations and ratification to the Council on a number of issues, which, when resolved, will ensure appropriate governance and assurance is in place to meet the licensing requirements set out by the Engineering Council UK in 2019, as well as ensuring consistency and transparency across all aspects of the working arrangements of Technical Platforms and Boards of Registration(AE). Once the review is completed a revised Terms of Reference will be developed and published on the IHEEM website. **14** IHEEM Annual Report 2020 ## **Company Affiliates** ## **Business Plan Core Objective 7** IHEEM received a tremendous response from its company affiliates to support NHS England and NHS Improvement during the COVID-19 pandemic. Over 150 offers of products, services and skills from its personal and company memberships were received. The new IHEEM website has a dedicated Company Affiliate webpage allowing them, for the first time, to engage directly with members and the wider healthcare efm sector and to showcase the wide range of goods and services they offer. Wherever possible, we will involve our corporate members in our activities, and there will be opportunities to sponsor online and digital events, as ‘live’ events have been sponsored in the past. **15** IHEEM Annual Report 2020 ## **IT Infrastructure Modernisation** ## **Business Plan Core Objectives 8 and 9** The capital investment, which began in 2019, to improve the outdated and unreliable IT systems used by IHEEM, is a vital component in strengthening the Institute’s governance around data and documentation handling, management and storage. It also enables the Head Office to provide Branches and Committees with the support they need. Improvements include: - Bespoke membership database – improved application and renewals process for new and existing members; - Improved and fully integrated accounts system including simple direct debit payment collection; - Use of Cloud technology for future proofing and staff efficiency; - Remote working facilities for Head Office staff to enable business continuity (Covid-19 Operational Policy). A major IT initiative in 2020 was the development and launch of the new bespoke “MyIHEEM CPD” section embedded into the new IHEEM website. The “MyIHEEM CPD Account” is a new automated system that allows members to easily record all their reflective learning in one place. A key benefit of the new system is that it allows users to share their record with third parties to confidentially review and comment (but not change) via one or more unique links. Users can also complete their CPD record live whilst at a certified IHEEM event via a mobile device. (Learning & Development, page 10). The improvement of the Institute’s recording systems has also been a focus of 2020, including the integration of registration processes into the bespoke membership database. September 2020 saw IHEEM’s Engineering Council Registration undergo a successful virtual audit - the first using this medium - and were delighted that the Institute’s CPD assessment processes were formally recognised as being far in excess of that required and acknowledged as a model of good practice. Head Office is now reviewing its policies to ensure they are up to date and relevant. **16** IHEEM Annual Report 2020 ## **Governance** ## **President** Ian Hinitt ## **Vice President & President Elect** Paul Fenton ## **Council Members** Alistair Cameron Chris James Paul Fenton Nigel Keery Alan Gascoine Stephen Lloyd Ian Hinitt Eddie McLaughlan Alison Ryan Greg Markham Alan Spraggon Bill Millar Phil Wade ## **Committee Chairs** Audit & Remuneration - Richard Boyce Conference & Exhibition - Claire Hennessy Diversity & Inclusion - Kim Shelley Management & Finance - Eddie McLaughlan Membership & Registration - Steven Palmer Professional Development - Carl McKenzie Technology Platform - Bill Millar ## **Branch Chairs** East Midlands - James Chadwick Hong Kong - Dr P L Yuen London & South East - Alan Gascoine North East - Alan Spraggon (Vice Chair) North West - Alistair Cameron Northern Ireland - Anthony Trimble Republic of Ireland - Bill O’Reilly Scotland - Harry Waugh South West - Richard Knight Southern - Greg Hansell Wales - Graham Jones West Midlands - Phil Wade Yorkshire - Chris Davies ## **Technical Platforms Chairs** Architecture & Design of the Built Environment - Paul Mercer Decontamination - Brian Kirk Electrical - Mark Richards Fire Safety - Maz Daoud International - Harry Waugh Medical Gas - Mike Ralph Medical Devices - TBA Sustainability - Ian Hinitt (to be established) Ventilation - Andrew Poplett Water - Mervyn Phipps **17** IHEEM Annual Report 2020 ## **Membership Profile 2020** **----- Start of picture text -----**
43
348
university
fellows*
affiliates
8
34
craftspeople
honorary
& technicians
fellows
1,157
members*
74 107
students apprentices
136
associate
members*
12
25
skilled persons
graduates
(affiliate)
232 52
company NHS
affiliates affiliates
**----- End of picture text -----**
@ September 2020 * includes retired **18** ## **Our Purpose** ## **Our 5 Key Themes** ## **At a Glance Business Plan** To continuously improve and develop the Institute, its services and the benefits we offer to ensure our members have the capability to deliver a healthcare estates environment that is safe, efficient and effective for patients staff and visitors 1 - Serving Our 2 - Developing 3 - Engaging with New Partner 4 - Supporting Existing 5 - Strengthening our National Membership Future Leaders Organisations Partner Organisations and International Profile |||**1**|**2**|**3**|**4**||**5**||**6**||**7**||**8**| |---|---|---|---|---|---|---|---|---|---|---|---|---|---| |**Core Objectives**|**Consistently Grow and Develop**
**Membership**||**Become a “trusted**
**partner” to Government**
**and Industry**|**Encourage the next**
**generation of Engineers**
**& Healthcare Estates &**
**Facilities Management**
**(efm) leaders**|**Collaborate with**
**training providers and**
**industry to provide and**
**endorse specialist NHS**
**course content**|**Develop technical**
**seminars, events &**
**conferences at branch**
**and national levels to**
**share best practice with**
**members**||**Raise the profle of**
**IHEEM Nationally and**
**Internationally and**
**become more professional**
**in its approach and**
**accountability to members**
**and the Engineering**
**Council UK**||**Create an environment**
**for members to engage**
**and network with other**
**healthcare associations**
**and institutes**||**Undertake a commercial**
**review of all IHEEM’s**
**business activities to**
**ensure long-term viability**
**and value for money**|| ||1.1 Identify areas for growth and||2.1 Input at Board Level|3.1 Work with branches|4.1 Work closely with|5.1 Develop and promote||6.1 Explore and develop||7.1 Strengthen||8.1 Review annual|| ||reach out to a wider audience||on the development of|to facilitate the|NHS Trust afliates|branch and national||innovative ways to||engagement with||conference and|| ||with a focus on tradespeople||a national workforce|development of an NHS|to develop specifc|conferences and||promote IHEEM to||industry, academia||develop a long-term|| ||and apprentices||strategy for efm|national apprenticeship|training courses|technical platform||existing and new||and professional||strategy|| |Deliverables|1.2 Develop and implement a new
members marketing strategy
and toolkit
1.3 Establish a stronger and
better balance of membership
through IHEEM’s Diversity &
Inclusion Working Group
1.4 Continued management of
membership applications and
engineering / AE registrations
1.5 Improve the ofer to members
to provide relevant and
current CPD activity and
simplify recording activity
1.6 Create an environment for
members to be successful||professionals
2.2 Work closely with NHS
England to input into and
disseminate national efm
policy and strategies
2.3 Support the NHSI Future
Standards Group in the
redevelopment of HBN
and HTM standards
2.4 Work collaboratively
with Archus UK for the
further development and
wider dissemination of
technical guidance using
existing platforms &
infrastructure|programme based on
a standardised model
that can be adopted by
providers
3.2 Develop a programme
of workshops linked to
Science, Technology,
Engineering and
Mathematics (STEM)
subjects for Year 7 &
8 secondary school
students
3.3 Review and expand
a register for all
professional specialist
efm services including
Authorising Engineers|for trade staf,
technicians, and
managers
4.2 Encourage training
providers/industry
to ofer CPD
accreditation as an
incentive to IHEEM
members|seminars
5.2 Organise and deliver
the IHEEM fagship
annual conference and
exhibition
5.3 Ensure content of
technical seminars
are CPD accredited in
line with Engineering
Council UK licencing
requirements||membership
6.2 Develop and launch a
revised website
6.3 Establish and deliver an
efective communication
plan using acknowledged
social media and
business network
devices
6.4 Be an active member
of the International
Federation of Hospital
Engineering (IFHE)
6.5 Attend and exhibit at
appropriate national and
local events||bodies that are
aligned to core efm
functions to support
members and raise
the profle of efm as
a profession||8.2 Review all of the
organisation’s annual
revenue costs (e.g.
contracts, subscriptions,
infrastructure) to
ensure ftness for
purpose and value for
money)
8.3 Seek alternative income
sources e.g. lottery,
charitable trusts|| ||in the “non-standard route|||||||6.6 Ensure professional|||||| ||to Engineering Council UK|||||||afliation licences are|||||| ||accreditation”|||||||maintained and licencing|||||| |||||||||requirements adhered to|||||| ||||||||||||||| ||||||||||||||| ||||||**Core Objective 9**||||||||| ||**Develop and maintain efective governance & assurance across all business activities to meet both legal requirements and the corporate needs of IHEEM Head Ofce,**|||||||||**Branches, Council and Technical Platforms**|||| ||9.1 Develop a “hub and spoke” operating and resource model between Head Office
9.3 Develop a new Customer Relationship Management (CRM) system for improved
9.5 Review technical platform groups and develop an overarching operational||||||||||||| ||and Branches to allow branches to engage and support the Institute’s national
membership applications|||||||framework|||||| ||plans|||9.4 Produce a new Standard Operating Manual for all processes, procedures and||||9.6 Organise and deliver IHEEM council/trustee training days|||||| ||9.2 Maintain effective financial controls & management ensuring compliance with
standards required to ensure efficient and consistent performance of business|||||||9.7 Develop a sustainability policy/statement for the Institute|||||| ||statutory and mandatory regulations|||functions|||||||||| IHEEM Annual Report 2020 ## **Knowledge Partners & Key Stakeholders** Engaging with stakeholders and our Knowledge Partners is fundamental to our success. By listening to and working in collaboration with them we can grow and develop to better serve our membership. We are proud to work with all our partners and stakeholders some of whom are listed below: **20** IHEEM Annual Report 2020 ## **Financial Report** ## **THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT** ## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2019** |**Unrestricted**
**funds**
**£**|**Restricted**
**funds**
**£**|**2019**
**Total funds**
**£**|**2018**
**Total funds**
**£**| |---|---|---|---| |**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Conferences
134,913
Seminars
29,983
Publications
6,286
Membership
305,550
Miscellaneous
9,263
Investment income
3,586
**Total**
**489,581**
**EXPENDITURE ON**
**Charitable activities**
Conferences
63,598
Seminars
66,261
Publications
2,131
Membership
404,211
Miscellaneous
28,169
**Total**
**564,370**
Net gains/(losses) on investments
-
**NET INCOME**
**(74,789)**
**RECONCILIATION OF FUNDS**
Total funds brought forward
805,734
**TOTAL FUNDS CARRIED**
**FORWARD**
**730,945**|-
-
-
-
-
-
**-**
-
-
-
-
-
**-**
-
**-**
4,382
**4,382**|134,913
29,983
6,286
305,550
9,263
3,586
**489,581**
63,598
66,261
2,131
404,211
28,169
**564,370**
-
**(74,789)**
810,116
**735,327**|228,319
45,237
4,947
293,971
10,415
4,594| ||||**587,021**
93,112
79,911
1,429
349,920
8,825| ||||**533,197**
-| ||||**53,824**
756,292| ||||**810,116**| ||||| ## **CONTINUING OPERATIONS** All income and expenditure has arisen from continuing activities. **21** IHEEM Annual Report 2020 **THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT (REGISTERED NUMBER: 895080)** ## **BALANCE SHEET AT 31 DECEMBER 2019** ||**2019**
**£**|**2018**
**£**| |---|---|---| |**FIXED ASSETS**
Tangible assets
Investments
**Total**
**CURRENT ASSETS**
Stocks
Debtors
Cash at bank
**Total**
**CREDITORS**
Amounts falling due within one year
**NET CURRENT ASSETS**
**TOTAL ASSETS LESS CURRENT LIABILITIES**
**NET ASSETS**
**FUNDS**
Unrestricted funds
Restricted funds
**Total funds**|182,313
200
**182,513**
2,834
325,601
623,721
**952,156**
(399,342)
**552,814**
735,327
735,327
730,945
4,382
**735,327**|144,333
200| |||**144,533**
983
36,713
728,426| |||**766,122**
(100,539)| |||**665,583**| |||810,116| |||810,116| |||805,734
4,382| |||**810,116**| These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small charitable companies. The financial statements were approved by the Board of Trustees on 14 July 2020 and were signed on its behalf by: I Hinitt - President **22** IHEEM Annual Report 2020 ## **Looking Forward to 2021** ## **IHEEM Healthcare Conference, Exhibition and Gala Awards 19-20 October 2021, Manchester** The 2021 conference will once again provide healthcare estates professionals with an opportunity to discuss and share best practice, knowledge, experience and views across the wide range of current and future issues faced by everyone in the sector. The Institute will continue to offer the highest calibre of speakers from the NHS, other professional bodies as well as academia and industry. **IHEEM Dublin Conference 2021 – Delivering Sustainable Healthcare Estate** ## **2021 Digital Events Programme** An exciting new digital events programme is currently under development and will be launched in early 2021. Supported by IHEEM’s own Conference Committee, each month will have a theme against which events will be held or supported by IHEEM and where possible will be made available ondemand and CPD accredited. This programme part of IHEEM’s commitment to support its individual members and company affiliates to **Stay Connected. Keep Informed. Get Ahead** and to echo the “blended learning” approach now favoured by academic organisations since COVID-19 that mixes face-face events with online resources. Further details will be provided in HEJ and on IHEEM’s website as they become available. **Please check the IHEEM website for further details of Events, Training and Development Opportunities and CPD Offers for 2021** **23** ## For more information about IHEEM or Membership: 02392 823 186 office@iheem.org.uk www.iheem.org.uk www.linkedin.com/company/iheem @IHEEM ## **November 2020** ## **© 2019 - 2020 IHEEM Publications All Rights Reserved** **Produced in partnership with ARCHUS LTD, an advisory, investment and development organisation, with a focus on and sharing the values of its health and social care infrastructure clients.** REGISTERED COMPANY NUMBER: 895080 IEngland and Wales REGISTERED CHARITY NUMBER: 257133 REPORT OF THE TRUSTEES AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 FOR TrIE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 Page Report ofthe Trustees 1 to 9 Report of the Independent Audbtors 10 to 13 Statement of Financial Activities 14 Balancè ShÈÈt 15 Cash Flow Statement 16 Notes to the Cash Flow Statement 17 Notes to the Financial Ststements 18 to 28 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 The Injstees who are also director5 of the charty for the purposes of the Companies Act 201￿, present their report wych the financial stslerr*nts of the chaity for the year ended 31 December 2020. The trustees have adopted the provisK)ns of Accounting and Repoth"ng by ChariiEs' Statement of Re(x)mmended Practice applicable to charities preparing their accounts in accordan￿ wrth the Financial Reporting Standard applicable in the UK and Republic ol Ireland IFRS 102) leffectNe 1 January 20191. OBJECTIVES AND ACTIVITIES The charity's objectives The charity's objectives refled the mi55K)n of the charty. Each year trustees review objectives and aciThiffjes lo ensure that they continue to the charty's aims. In carying out this review the trustees havè Considered the Charty Commissitm's general guNJance on publ￿ benefrt and in particular its guidance on educalion and training for public bepefit. Mission The chanty is a prolessK)nal t)ody and ￿arned sO￿ty serving the interests of those involved In and with responsibility for heavthcare engineering and eslale management 5nduding the design. procurement and maintenance of heaYÉhcare facilities and equipment. The charty is established for public benefit to promote the art and Scien￿ of hea￿hCa[e enganeering and e5tale managerrEnt and to advance research, educalion and training. Activities The charity's activities in¢lude the mentoring and career develownent of heatthcare engineers. allied built environment professionals and facility managers. the PUbl￿at￿n of a professional jourrtal. the holding of educalior)al seminars, and the holding of an annual educational conferen￿. Each year the trustees review the charitE5 objectNes and aclivrties to enS1J￿ that they continue lo reflect the charily's mission. In carrying out this work the trustees have considered the Charity Commission's general gu5dance on public benefrt. Volunteers Volunteers afe an imFQrtanl resOUT￿ in bolh the running of the charity and the managen*nl of its educational activities Over 60 volunteers reguL3rty give their tsme for the runntng and managernefil ol the governing ouncil and its committ*s. with further volunteers giving their b.me to the running and management of branch activities and the programme ol educational events. All trustees give their lime freely The Institute encourages all members to beco￿￿ inVo￿ed in voluntary activities and lo share Iheii ski115 with others. Social investment policies We have invested in sustainable measures such as a SoLar PV scheme to reduce the carbon IDc>iprinl associated with our Head Offi￿ lacilf(ies and are looking to make furthef energy reducing improvements and investments such as LED lighting and building insuktM)n. We are also commrtted lo aft Apprentice within our Head offi￿ establishment which represents around 21 /0 of our FTE workforce. We a￿ delighted our apprentice completed her course as is now in a new role within the InstStute and is undertaking professional training and examinations in her chcssen career. We are looking to emplDy a finance apP￿ntI￿ in the coming year. We are providing supp)rt for industry led apprenticeship schen￿$ and we introdu￿d an Innovation Award to reC￿nISe efforts within our sector to improve e￿lenCY or reduce waste and costs of healthcare across the NHS. A focused drive to attract apprentbces as members resutted in having 128 apprenticeship members of the Institute at year end. Over 2020 we developed and delwered workshops lo 74 students as part of the STEM agenda and fvlure workforce_ We have a regi%lered STEM ambassador wrthin the Institute, this work will lurther devek>p of 2021. Page 1 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 ACHIEVEMENT AND PERFORMANCE Public Benefit The trustees ¢onfirm th* they have referyed lo the g¥jidan￿ contained In the Chanty Commission's general guidance on public benefit when reviewing the Charlty's aims and obiectNes and in planning future activrties. The Iruslees refer lo publ¢ benefft throughout this report. Charitabb a¢tw(Éies," how the ¢harty's activth.es delwer publ￿ benefrt The charty carries out a wvje range of actiVFties in pursuance of rts charitabk objectwes. The trustees. after taking into consideration the Charty Commi55ion's general gUKlan￿ on publ￿ benefit the activities SL¢mmansed bek)w prowde benefit to the public and the wKler community. Educational sèminars The charty held a range Of Semina￿ during the year supported by the IHEEM Technical Platfomis. partners and company affilrates. Due lo the pandemi these weie delivered through digrtal n￿d￿￿. During 2020, a number o15eminarslworkshops and webinafs were held on a ran9e of key thEmes. EaGh Df these attracted a good number of delegates and several also featured an event exhibitor. Feb (face lo lacel Feb (face lo lacel Feb (face lo lace} May Iwebinarl June Iwebinarsl July Iwebinar51 August Iwebinars} Seplember Iwebinarsl October Iwebinarsl 24 Webina￿ part ol Healthcare Estates dwjital week December Iwebinarsl South West Branch event AE IDI Framework Iwrth Eas￿0cM￿ Parkl Mind Matters workshop (dealing with stress) Council Strategic Planning day I webinar part of our digital seminars 2 webinars Sead by company afFiliales 5 webinars lead by company affiliales 3 webinars lead by company aftiliates 8 webinars lead by company affiliales Gk>ucestershire Ea5tleigh Eastleigh On linè On line On IFnè On line On line On ltrne On line The charity's branches additionally host a range ol speoalisl educatw)r)al seminar events. Educational conferencè & exhibitions In addition to the seminar programme. the￿ are several conference5 and exhibition5 that the Institute oiganises For 2020 due l() the pandem￿ these We￿ defetred lo the last quarter of 2021 and earty 2022. IHEEM'S annual fiagship COnfe￿A￿. exhibition and award5 dinnei. 'Heatthcare Estales. was due to be held in October jn Manchester. The event attracted attTacls over 4,000 delegates and visitors and over 250 exhibitor Stands Fc)r 2020 this was ￿p￿ced by a seiies 0124 webinar5 Wsth 93 UK and International speakers over five days Covering the themes ol Policy. Workfor￿. scien￿ and Technok)gy, Design and International wilh over 3.000 registratK)ns from 33 countries. These a￿ available a5 on dernand sessions via our new website learning hub. Engineering Council September 2020 was our first audrt review following our I￿enCe renewal in 2019. The revEw acknowSed9ed the amount of work th* has taken pL4¢e over 2020. The folk)wng training was undertaken in line with our I￿enCIng requirements". Oct (Team51 Oct (Zooml Nov IZoDml Nov Izooml Dec (Teams) Assessor refresher Iraining114 participants} EC-IndivwJual Route to Assessment16 participants) EC-CPD asse55ing12 part￿1pant$) EC-Recognition of quaIrf￿at￿nsl2 part￿1PanIS) New Assessor training115 part￿IpJnts) On line Iraininy On line training On line training On line training On line tiaining Page 2 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE mANAGEmE￿r REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 The charty remains a strategic partner of Engineering UK and the Engineering Council. The charity's work cenlres on Compliance wrth the Engineering Council audrt and qualrty assurance requirements lo holLI the li￿nCe for assessing candidates for regigtratK>n as an Engineering Technician, Incorporated Engineer and Charte￿d ErTrgineer. The charrty also 5UPPOrt5 the Engineering Council's work lo promote Society's confidence and trusl in the engineering prolessK)n. The charty's engineers once registered are inlernalionally recognised having den￿nStrated standards of competence and commitment for the engineering profession whose skills underpin provision andlor distribution of the basic ne￿sSrt￿s of cwilised life con￿mIng heallh¢aie buildings, energy use. provisKJA of safe water and Sanitation. focrfj. transport and communications. Other work wrth the Engineering Council invofves the sampling ol registered members Continuing ProfesS￿n81 Devek>pmenl. the ptovis]on of training for interwewers. participation in the audrt ol other inslf(utes and promoting the Engineering Register. Branches The charty ha5 ft)urteen brnnches." Iwe￿e branch areas are Tepre5enled on the charity's governing council. Branch committees a￿ wpulated by volunleets who give their time to the management of edur2tion aclNilies, branch-based seminars. provKling interview panels for En9ineering Council registrants, and recruiting new mefflbers. Branch *livty is al the forefront of the charity's actwrty in delivery of pis objectives. During 2020 the Inslilule pul in Pla￿ the infrastructure for branches lo hosl and deliver live and pre-recorded webinar5 as part ol their offei. In the first month of 2021 blanches have delivered five live events. Including three session series on M￿1¢81 gases duang the pandern￿. Journal The qualty educalDnal publtstion 'HeaWh Estate Joumal. is distnbuted to all members len times per year. The Iru51ees rnanage the Joumal through the Professional Devebpment Committee that is constituted by membets of thè inslilule The Journal remains attia¢lwe. popular and Informative. Website and IT Infrastructure Redevelopment Over the last twelve months IHEEM has continued lo enhance rts membership daiabase to bring in governance management. and In October 2019 launched a new modern website In October 2020, enabling IHEEM lo meet key objective5 in prornoting the Instrtute as the leading voice In the healthcare estates sector. and a bespoke Conlinued ProlessK)nal Devebpment ICPDI syslem to enable easy capture and re￿rdIng ol CPD matenal and refleclwe leaming. This ha5 been designed to support members throughout their ¢areer joumey. International Federation of Hospilal Engineering IIFHEI The charity remains a cornmrtled member ol IFHE. IFHE 15 a non-profit. non-governmental and independent organisation whose resolirces are used to foster and promole exchange c>f hospital engineering le¢hnology knowledge wilh the ultimate goal th* people evefvere may receive better healthcare. The charty continued to proV￿e the administration for the Federation throughout the year. Pete Sellars. our own CEO, continue5 in his presidency ol IFHE Europe. the IFHE Wor￿￿￿e pres￿enCY was handed over to Italy in January 2021, deferred frorn October 2020. Over the pandemic the Inslitute, took the lead In partnership with the IFHE to Pfoduce and disseminate a fortnight￿ newsletter shanng Intelligence, best practi￿ and pe150na experien￿ across rts 5000 global meMbe￿hIP across 40 countrEs. Partnerships The Institute has a number of key know￿dge partnerships in place. Over 2020 we developed and strengthen our alliances with NHSEI team, working and 5UPPOrting Ihem wrth their communications to thè sectoi around the pandemic and Hefma on the workforce strategy. We will conlinue to develop these over 2021. Page 3 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTA TE MANAGEMENT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 Membèrship In response lo the pandemic. IHEEM look the unprecedenled decision in 2020 to cease chase outstanding membership lees for six months, and therefofe as a resvll not to lapse members due lo lack of payment. The ¢haity'5 membership numbers reflect thi5 decision. On 31st December 2020 membership numbers for fee paying 5rKliwdua15 was recorded as 1773. compared lo 1811 indwidual members on 31 st December 2019, a decrease 012.090/0. This was offsd by an increase in our f￿e member5hip5 aimed at students. apprentices and NHS tradespeople which in¢￿aSe lo 390 On 31st Decerrtjer 2020, from 354 on 31st De￿mber 2019, an increase ol 10.2¢/0. These are seen as our future paying rrembership. We saw a further increase in our Company Affiliate Members leach hawng up lo 4 nominaled named non-votsng members) to 247 recorded on 31st December 2020 from 231 on 31st December 2019, rewesenting an Increase o16.9Y.. Overall there was litt￿ change in Dverall in membership 114 membersl. The toial number of members lexcluding the 4 nominated non-voting members for Company affiliales) on 31st December 2020 is re¢orded a$ 2410 compared lo 2396 on 31st De￿rnber 2019. Membership fee concessK)ns arè offered for graduate and apprentice members. relired or penS￿nable members. members of limrted means of incorrE. University Affiliate members. Apprentice Affiliate members and Student Affilk4te members. Awards Recognrtion of public contribution to healthcare engineering and estate mana9èment and excellen￿ in achieveffEnt Is at the heart of the chatty's work. The charity recognises Individual achievements by providing a number of awards, medals and prizes. We had no Awar(ts in 2020 due lo the pandemic. these will be re-established for 2021. FINANCIAL REVIEW Investment policy and objectives The memorandum assockAlion describes how monies of the Insif(ute not Immediately required lor its purposes can be invested The Trustees, having regard lo Ihe IH4uidity requirements of operating the Institute and the reserves policy Sel out below. have operated a policy of k￿PIng available funds In an intèrest bearing deposit account. The invested funds he￿ on deposrt achieved an average rate ol return ol 0 3Yo against the Office lor National Slatislics, Consumer Pri￿ Index ICPII. for the year to Oecember 2020 of O SY. Reserves policy The Institute maintains reserves wh￿h the Council deems approptiale for its efficient operalion and lor the generation ol additional income on a prudent basis. Around 65/0 of the charity's incDtne is generated through membership Income received prirnanty in the first three monlhs of the year and the remaining Income is generated through ihe year from seminar actwity and annual conferences. A level ol free reserves of £250.000 equating to approxirnalety six monihs management, admintstration is considèred appropriat The actual free reserves exceeded the required level and amounted to £626.052 a ieduction of £109.275 on 2019. The decrease represents ￿ afeas of spend. aThJ may be used io SUp￿rt the operational cost5 lor 2021 if the pandemic continues. The Instrtule's investment in modemising the IT infrastructure induding the development of a membership database, bespoke CPD system and launch of a new website. Funding this deficit on the Dperationa5 costs for 2020 due to Ihe defeTral of all Confe￿nceS to 2021. creating a bss of approximatety £150k in 2020. The Board of Trustees are also mindtul of Ihe vo￿￿.￿ nalure of membeiship numbers and Ihe general decline in numbers in other similar Leamed Bodies and this has a bearing on our ￿se￿e levels wh￿h may be above what would normally be expected. Page 4 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 FINANCIAL REVIEW Principal funding sources The Charily's income Is derived from hyo main resources. membership subwiptions and educational events. including seminars and conferen￿$ (annual IHEEM Confe￿nce/exhlb￿.on and branch conferences}. Income through membership subscnplions tolalled £325k 12079 - £3(6kl. Events and train?ng income tOtal￿d £21k 12019 £165k}. Event resource5 e¥pended at £82k12019 = £130kl The difference ￿￿een years relates to the income and expenditure on events for 2020 ￿SU￿$ from provKling free webinars and learning material lo our members as opposed to having a number of cThifefen¢es lo wh¢h delegates would pay lo attend. This was a conscious decision taken by the Board to conbnue lo engage with our members and provKle valuable learning opw)rtunrtEs throughoul the Pandem￿ when kn to lace events were deferred unb'l late 2021. Educalioftal events is an elenEnt in the ¢harity's progrJmrne of actNrties". the trustees are keen lo continue wrth this work that provKles benefft to both the chartls member5 and the publ￿. Overall the charity pr(Klu¢ed a deficit of £104.893 12019 deficrt of £74,789) on a lumover of £350,997. This is due lo the bss of income generated fr(¥n having lo defer all fa￿ to fa￿ corkferences and events in 2020. Financial effect of significant events IHEEM holds two major conferences each year which aiFn to pi(xIU￿ a surplus. Actions are taken lo minimise the risk of surpluses not being made through Commercial arrangements wi(h oui Conference Organising Partners. Our Northem Ireland branch holds one confe￿nCe bi annually. The impact of deleiring thèse conferences to lète 2021 has resutted in Ihe cteficit seen above. The pandemic was unprecedented. the Institute reserves allowed IHEEhll lo operate and cover it's minimal operational costs for 2020. Page 5 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 FUTURE PLANS The charty has a iolling fwe year Strateg￿ plan covering the perh)d up to 2022 which includes extending the range of membership and improwng membershp servKes. Specrficalty. there is a major focus on recrurting apprentices and prowding activtties to attract an(1 telain younger members. The pandem1c has created new ways of working and brought lorward our digrtal agenda IHEEM is now looking to run frequent webinars arnd adopt a hybrhd approach to all its conferences. having both a face to face and dwJilal presence. The Inslrtute is deveknping partnerships wrth extemal training provklers to offer accredited appropriate training opw)rtunilies to our members. where tJ)ssible at discounted rates. This work started In 2020 and will be further developed in 2021, building Ihe material avai&ble thiough OL4r ￿arnIng hub. It has also Implemented a substsntBI upgrade to its ITC sySten￿ and websrte. 2020 saw the release of a new bespoke CPD recording system for our members linked to our training events and seminais agenda. the launch ol a new modern websrte and addilional enhancen*nts to oui new membership database to enable more effective governance recording. We have now removed on srte server5 from our operation Eady indi¢alions support a cash rate of rettjrn on investment of 2 years. and substsnlkHI stafl resource benefrt. Over the next ￿e1ve months IHEEM anticipates further enhances lo all of il's new IT sysletTJS lo provKle a further improved customer exPer￿n￿. During 2021 we will be boking to impkment the new management arrangements for ou¥ Technical Platform5 and Boards of Registration for Dur authorising engineers aimed al strengthening governarTr￿ wrthin the pro¢esses. The work that Ihe Technical Platfoms undertake is a vrtal ¢trmponenl ol IHEEM'S current and future work tts strengthen IHEEMS posrtion as Ihe leading he3￿hcare enginee￿n9 and e5tales professional body In the UK and Internationally. The Instilute is activety creating a number ol opportunities for our TPS to grow and raise the Importance of the work al a national level through inllLJen¢ing policy. standai(ts and guidance as well as producing our own IHEEM best praCt￿tt g￿KIan￿ lor the benefit ol our UK and global membership. The Instilule'5 President and members of the head office team continue to attend IHEEM'S branch ne￿Ort{ events to Strengthen links with the regions. IHEEM has also co-operated and is working in partnership with olher professional engineering bodies and the Royal Academy ol Engineering. National Health Service Improvements INHSII, Eas￿￿ Park, IFHE Europe and Worfdwde tD pL8y it's part In tjelivering an effectwe and efficEnt healthcare servi￿. STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document The lull narne ol the charty 15 The Insti(ute of Healthcare Engineering and Estate Management. IIHEEMI. The charity Is a company limrted by guarantee (Registeied Number 8950801 which was Incorporated in 1967. IS registered wrth the Charity Commissioners IRegistratu)n Number 2571331 and is governed by its Memorandum and Articles of Association last updated on 8th October 2019 The ILJII range Df governing documents, Terms of Referen￿ ol the governing council and council commiit*s. along wrth profiles ol individual trustees is available on the charty's website al www iheeni.org uk. Re¢witmÈnt and appointment of new trustees Al each annual general meeling one-third of the branch area based Irvslees must retire from office, selected from those who have been longest in appointment. Retiring trustees may offer themselves for reappointment, but mu51 retire after a second perK)d of appointrnent. The tnjstees have addit￿nal wwers to appoint addilK)nal trustees should the number of trustees fall less than thirteen. but these trustees musl retire al the next annual general meeting. Page 6 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 STRUCTURE. GOVERNANCE AND MANAGEMENT Organisational structure The trustee5 meet together three limes a year and are responsible for Ihe control and management of the charity. The trustees give their lirne Ireety and Teceive no remuneration or other financial benelils. To assist in the sm(M)th tunning of Ihe charity the tFUStees have established a number of subordinate committees that help them oversee ￿rtain aspects of the charrty's work_ Committees are CLJrrenlty established for Audit and Remuneration. Conference & Exhibib"on. Professional Devek)pment. Management and Finance. Membership and RegistratK)n and Technok)gy. The subordinate committees report back with their recommendations to the full meeting of the trustees. The charity has fourteen regK>nal branches vering the UK. the Republic of Ireknd and Hong Kong. The ManagenEnt and Finan￿ Commrttee oversee the opeialK)nal management on ￿half of the trustees. with day-l04ay managernenl delegated lo a small secretarial and adminstrative staff that operates from leasehotd premises in PortsrTK)ulh, Hampshire Over 2020 the team has been operating remotety being home based. with minimal Cover in the Portsmouth premises. We envisage this approach continuin9 going forward. Induction and training of new trustee5 Following appointment. new trustees are Introduced to their role and provided wrth copies of the InstitLrte's Memorandum of AssocHIK)n. Artides of Ass0oat￿n. trustees terms of reference and ¢Dun¢il cotnmitlee terms ol relerence. New trusl*s are also provKJed with Chanty Commission publi¢alions ¢onGeining risk, governance and public benefrt. All new Iruslees afe encouraged to attend a onè day spe¢ialisl charity governance course This InductKJn process ensures that new trustees are aware of the scope ol their responsibilities under the Charities Act Key management remuneration IHEEM'S Audit & Remunerat50n Committee cafries out a thorough annual revièw ol stsff pay and conditions Using benchmaiking with other simiLar organisaiN)ns REFERENCE ANDADMINISTRATIVE DETAILS Registeied Company number 895080 (England and Wales) Registered Charity number 257133 RegiSte￿d office 2 Abingdon House Cumberland Business Centre Northumberland Road Pr>rtsmDuth Hampshire P05 1DS Page 7 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT REPORT OF THE TRUSTEES FOR THE YE4R ENDED 31 DECEMBER 2020 Trustees Board of tmstees and rneMbe￿ ol council President- PresKlenl". P Fenton MBE CEng FIHEEM Wice Pre5ident= A J Ryan C Eng FIHEEM N J Keery CEng FIHEEM Board: A Cameron CEng FIHEEM A J Ryan CEng FIHEEM A Spraggon CEng MIHEEM C James IEng MIHEEM A D Gas¢oine IEng FIHEEM N J Keery CEng FIHEEM W S H Mil￿rCEn9 FIHEEhrt P J Wade EngTech MIHEEM G Matkham CEng FIHEEM S T Lloyrt E Mclaughlan CEng MIHEEM lan Hinitt CEng FIHEEM North West branch Yotkshire branch North East branch Soulhem branch London bBnch Northern Ireland branch East Midlands branch West Midlands branch South West branch Welsh branch Scotland branch Ex president Chief Executive Pete Sellars Company Secretary Tan5a Davie5 Auditors P Underwood. FCCA Morris Crocker Limrted Chartered Accountants Stalutc>ry Auditors Station House North Street Havant Hampshire P09 1QU Solicitors Saulet Townsend Frodd1nglon House Cumberland Busines5 Centre Northumberland Avenue Portsmouth POS 1DS Bankers Barclays Bank P Marbl& Arch Corporate Banking Group P O Box32016 Edgware Road London. W2 STATEMENT OF TRUSTEES. RESPONSIBIUTIES The Iruslee5 (who are also the diiectors of The Institute of Hea￿h¢are Engineering and Estate Management for the purposes of company lawl ale responsible lor pieparing the Report of the Trustees and the financial slalements in accordance wrth applicable law and United Kingdom Accounting Stsndard5 (United Kingdom General￿ Accepted Accounting Practi￿1. Page 8 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2020 STATEMENT OF TRUSTEES. RESPONSI8ILtTIES - continued Cornpany law requires the Iruslees to prepare financial statements for each financial year which gThie a true and fair view of the slate ol affairs ol the charitable company and of the ¥r￿DMin9 resources and application Df sources. including the income and expendrture. of the chantable company for that perK)d. In preparing those financial stslemenls, the Itustee5 aFe required to select sulta￿e xcounling polrE5 and then apply them consistenty". observe the methods and prinuples in the Charty SORP,. make judgements and estimates that are reasonable and pruilentr. prepare the financial statements on the going concem basis Un￿ ht is inappr¢)priale lo presume that the charitable company will continue in business. The Iruslees are responsible for keeping proper accounting reC￿rdS whth disck)se wrth reasonable accuracy al any time Ihe financial p0S￿tIOn ol the charrtable company and to enable them lo ensuF8 that the financial siatements comply with the CompanEs Act 20(￿. They are also responsible for saleguaroting the assets of the charrtable company and hence for taking reasonable steps lor the pievenlion and detection ol fraud and other irregularrties. In so far as the trustees are aware.. there is no relevant audit Information of whKh the charitabfe Company's audrtors are unaware," and the trustees have taken all steps that they ought lo have tsken lo rnake themsefves aware of any ￿levant audit information and tD establish thal the audilors are aware of thai inloimalion AUDITORS The auditors. Morris Crocker Limited. will be proposed for re-apptsintment at the forthcoming Annual General Meeting. 1 S10412021 Approved by ordèr ol the board of ttU5tees on and 51gned on ts behalf by. P J Fenton - Trustee Page 9 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF TPIE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT Opinion We have audited the financial stalerTEnts of The Instrtute ol Heatthcare Engineering and Eslale Management Ilhe '¢harilable company'l for Ihe year ended 31 Decernber 2020 which comprise the Statement ol Financial A¢twilies. the Balance Sheet. the Cash Fk)w Statement and notes lo the financial slalemenls. in¢lu(Jing a summary ol signrf1cant accounting policies. The financial reporting framework that has been applied in their preparalK>n is applicable law aThJ United Kingd(Mn Accounting Standards {Unrted Kingdom Generally Accepted Accounting Prxticel. In OUT opinK)n the financial stalements.. gwe a true and fair wew of the state of the charrtable company's affairs as at 31 December 2020 and of ts Incoming ¥esources and appIl￿tion ol reS￿r￿. induding rt5 Income and expenditure. for the year then ended, have been property p￿ paled in awRlance wrth United Kingthn Generalty Accepled Accounting PraCt￿e,. and have been prepared in a¢cL)rdan￿ wrth the requirements ofthe Companies Act 2006. Basis for optnion We conducted our audit in accordance with InlemalK)nal Standards on Auditing IUKI IISAS IUKII and applicable law Our responsibil￿eS under those standards are further described In the Audrtors. responsibilil*s lor the audrt of the financial slalemenls section of our report. We are independent ol the charitable company in accordance with the ethical requirefftents that are relevant to our audit of the financial 5tatemenls in the UK. including the FRC'S Eth￿al Standard. and we have luKilled Dur other ethical responsibilities in accordance wrth these requirements We believe that the audil eV￿ence we have obtained is sufficient and apprtspnale tc> provide a basis lor our opinion. Corhclusions relating to going concem In auditing the lillancial statements. we have concluded th31 Ihe ttuslees. use ol the going concern basis of 8CCOLJnling in the p￿paratIOn ol the financal statements Is appropriate. Based on the work we have performed. we have not Identliied any material uncertainties relating to events or condition5 that, individually or collecbvety. may casl significant doubt on the charitable company's ability lo continue as a going concern lor a period ol at leasl twelve mnths from when the Iinancial statements are authorised lor issue. Our responsibilities and Ihe responsibilities of the Irustees wth respe¢t lo going concein are described in the relevant Sections ol this reporL Other infonnation The trustees are responsib￿ for the other 1nfoimat￿n. The other Inloimation Comprises the information included in the Annual Report. other than the financial statenEnts and our Report of thè Independent Auditors thèreon. Our opinion on the financial statements does nol cover Ihe other inforMat￿n and. except lo the exlenl olhenKise explicitly stated in our repKIrt. we do nol express any form of assuran¢e ¢on¢lusion thereon. In connection with our audrt of the financial slatements. our ￿spOnsibl11tY ts to read the other Infr)miatK)n and. in doing so. consider whether the other information is matenally in¢onsislenl wlh the financial slalemenls or our knowledge obtained in Ihe audit or otherwise appears to be materialty misstated. 11 we identify such rnalerial inconsislencies or apparenl malerial misstalements, we are required lo determine whether this gives se lo a fflatenal misstatement in the financial statements themselves. 11, based on the work we have performed, we con¢lu(k that the￿ is a material misslalernenl ol this Other information, we are required lo report that fact. We have nothing to report in this iegarit. Opinions on other matters presCri￿d by the Companies Act 2006 In our opinion, based on the work undertaken in the course of Ihe audit.. the information given In the ReFOrt of the Trustees for the financial year for wh￿h the financial statements are prepared is consistent wrth the financial statements.. and the Report of Ihe Trustees has been prepared in accordance with appl￿ble legal requiiemenls. Page 10 REPORT OF THE INDEPENDEKf AUDITORS TO THE MEMBERS OF THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTA TE MANAGEMENT Mattets on which we are required to report by exception In the light ol the knowledge and understanding of the charrtable Company and rts environment obtained in the cciurse of the audrt, we have not idenlrfied material missiatements in the Report ol Ihe Tmstees. We have nothing to report in respect of the folkMsn9 matters Whe￿ the CompanEs Act 2006 requires us to report lo you if. in our opinion.. adequate a¢counting records have not been kept or ￿t￿m$ adequate for our avdil have not been received from branches not visited by us.. or the financial statements are not in agreement with the accounhng records and ￿turns.. or certain disdosures ol Iiuslees, remuneration spe¢ffied by law are not made-, or we have not received all the infomalion and explanatic>ns we require for our audit". or the Iruslees were not enlrtled to lake advantage of the srnall companies exemption from the requirement lo prepare a Strategic Report or In preparing the Rep(>rt ol the Trustees Rèsponsibilities of trustees As explained more fully In the Slalement of Tnjstees. Responsibilities. the Ituslees Iwho are also the dire¢lors ol the charitable company for the purposes of company L3wI are responsible for the preparation ol the financial slal&ments and for being satisfied that they gwe a true armt lair wew, arld lor such internal control a5 the Iiustee5 delernine is ne￿SSary to enable the p￿pat?ts)n ol financ431 sl8lemeDts that are free from malerol misslaiemenl. whether due to fraud or error. In prepaiing the financial statements. the ttUStees ale restK>nsible for assessing the Charitab￿ company'5 ability lo continue as a going concern, disclosing. as applicable. matter5 related to going concern anc* using the going concern basis ol accounting unless the trustees either intend lo Iyuidale the charitable company or lo cease operations. or have no realistic altèinative bul to do $0. Page11 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT Our respon5ibi5itie5 for the audit of the financial statements Our objectives are lo obtain reasonable assurance aiK)Ut whether the financial slalements as a whole are free from material misstatement. whethe< due lo ffaud or eri()r. and lo issue a Report of the IrideperKlent Auditors that includes our opinion. Reasonable assuiante is a h>gh level of assurance. bul Is not a guarantee that an audit conduded in accordance wrth ISAS IUKI will a￿ayS delect a material misslalemenl when il exists. Misstalemenls Can arise from fraud or error and are ¢onsidered malenal rf, IndNidu31ty or in the aggiegate, they ¢oul(J ieasonabty be expecied to influence the ecfjn0m￿ dectsions of usets taken on the basis ol these financial slalemenls. Irregularities, including fraud, a￿ instances of non-compliance wth laws and regulations. We design procedures in line with our ￿spOnsIbl11t1es. outlined above. lo detect material m￿￿tateMentS in respect ol irregularTties, including fraud. The extent to whth our piocedures are capable of detecting i¥regularities, including fraud Is detailed below". From discussion wrth management and those charged wrth governan￿ infornalk)n about the entty is documented lo assess ihe activity within the organisation. We discLtss managements assessment of risk in respect of IrregU￿ritieS, fraud and going con￿rn. Based on these discussK*ns and our own assessments we detemiined that the key risk areas were in¢ome recDgnition in respect of cut off i55ue5 COn￿rnIng membership income and management override concerning the sie of Ihe organisation. We set financial statement malerialty kvel based on the level of income at £10,300. As a not for profil orgènisation raising income is its primary locus which is why income was used lo deiermine the level of malerialily. Our overall assessryEnt Jf risk was used to determine perfomiance materiality of £9.200. Substanlwe audst tests were designed after ?ssessing and tesiing Systems and cDntro5s Thè systeffls and controls which have been designed to act as a prev#&ntalive measure against Iraud and error were opeiating as documented. Subslanlive lestin J lested a sample ol Ihe population. repiesenlalive ol the population, lo identify eriors. The lestlng did not ￿entify any material misstaiements in areas lesled. Audit substantive lesls condu(Jed no material errors over the key risk areas of income recognition and management override The audit considers the organisalion is not exposed to malenal risk of error as a result of assessing laws and regulat￿nS that are appropriate lo the organisat￿n Managemenl assessed there ts no g(*ng risk. The audit undertook a review of budgets. management accounts and the reV￿W of board minutes and came io the same cor￿lUs￿￿ as management. A further description ol our responsibilthes for the audit of the financial siatements is lopaled on Ihe Financial Reporting Council's website al www.frG.org.ukJaudrtors¥esponsibilities. This descrbption forms part ol our Report ol the Independent Audrtor5. Page 12 REPORTOF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT Use of our report This report is made solety to the charrtable company's membeTS. as a bcKty, in ￿cOrdanCe with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might slate lo thè chantable company's members those Fnattet5 we ale required lo stsle lo them in an auditors, report and lor no other purpose. To the fulkst extent permrtted by law, we do not accept or assume responsibilty lo anyone other than the charitable company and the Charrtab￿ company's rnembers as a body, for our audit work. lor Ihis report, or for the opinions we have fom)ed. Paul Undejwood (Senior Stalulory Auditor) for and on behalf of Morris Crocker Limrted Chartered Accountants Slalulory Auditors Slalion HoLJse North Str*t Havant Harnpshire P09 1QU Date". Page 13 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT STATEMENT OF FINANCIAL ACTIVITIES IINCORPORAnNG AN INCOME AND EXPENDITURE ACCOUNT} FOR THE YEAR ENDED 31 DECEMBER 2020 2020 Total funds 2019 Total funds un￿$t￿Cle￿ fur ReslrLCted fvnds Notes INCOME AND ENDOWMENTS FROM Charitable activities Conferences Seminars Publicalions Membership MIS￿lIaneOUS 134.913 29,983 6,286 305.550 9,263 7.653 4.370 324.680 12.908 7,653 4,370 324,680 12.908 Investment inciyne 1.386 1,386 3,586 Total 350.997 350.997 489.581 EXPENDITURE ON Charttsble activities Conferences Seminars Publications Membership Miscellaneous 43.414 47.333 2,518 358.350 4.275 43.414 47.333 2.518 358.350 4.275 63.598 66.261 2,131 404,211 28.169 Totsl 455 890 455.890 564,370 NET INCOMEIIEXPENDITUREI 1104.8931 1104,8931 174.7891 RECONCILIATION OF FUNDS Totsl funds brought foThvard 730.945 4.382 735.327 810,116 TOTAL FUNDS CARRIED FORWARD 626,052 4,382 630.434 735,327 The noles fomi part of these financol sialemen15 Page 14 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT (REGISTERED NUMBER: 8950801 BALANCE SHEET 31 DECEMBER 2020 2020 2019 Notes FIXED ASSETS Tangible assets Investments 230.505 200 182.313 200 12 230,705 182,513 CURRENT ASSETS Stocks Debtors Cash al bank 13 14 4.911 339.805 460,009 2,834 325,801 623,721 804.725 952,156 CREDITORS Amounts falling due wrthin one year 15 1404,9%1 1399,342} NET CURRENT ASSETS 399.729 552.814 TOTAL ASSETS LESS CURRENT LIABILITIES 630.434 735,327 NET ASSETS 830,434 735,327 FUNDS Unroslricted funds Restricted funds 17 626.052 4.382 730.945 4.382 TOTAL FUNDS 630,434 735,327 These financial statements have been prepared in accordance wrth the pcovisions applicable to charitable companies subject lo the 5rnall companies regirTE. The financial statements were approved by the Boafd of Trustees and authorised for issue on 2410312021 and were swJned on Ils behalf by". P J Fenton- Tnjslee The noles ft)rm part ol these financol slalements Page15 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTA TE MANAGEMENT CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 2020 2019 Notes Cash flows from operatiny activities Cash 9eneraled from operation5 188.3981 151,4671 Nel cash used in operattng actwrties 188.3981 151,4671 Cash flow5 from investing acti¥itÈe5 Purchase of tangible fixed assets Sale of tangible fixed assets Interest received 176.753} 53 1.386 167,4091 10.585 3.586 Nel cash used in investing activitie5 175.314} 153.2381 Change in cash and cash equivalents in the reportlllg period Cash and cash equivalenls at the beginning of the reporting period 1163.712} 1104.7051 623.721 728,426 Cash and cash equivalents at the end of the reporting period 460,009 623,721 The notes lom part ol these financial statements Page 16 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT NOTES TO THE CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 RECONCILIAnON OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES 2020 2019 Net expenditure tor the reporting period las per the Statement of Financial Activitie51 Adjustments for= Depreciation charge5 Profil on disposal of frAed assets Interest received In¢￿ase in stocks In¢￿ase In debtors In¢rease in creditors 1104.893) 174.7891 28.560 153) 11.3861 12.0771 114.2041 5.655 29.427 110.5831 13.5861 11.8511 {288,8881 298.803 Net cash used in operdtion5 188.3981 151.4671 ANALYSIS OF CHANGES IN NET FUNDS At 1.1.20 Cash flow At31 1220 Nel cash Cash at bank 623.721 1163.7121 460 009 623.721 1163.7121 460,OD9 Total 623.721 1163,712) 460,009 The notes fom) part of these finanoal stslemenls Page 17 THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES Basis of preparing the financial statements The financial statements of the charrtable company. which is a public benefit entity under FRS 102. have been prepared in accordance wrth the charit￿s SORP IFRS 1021 Accounting and Reporting by Charities.. Statement of RecomrrEnded Practi￿ applicable to charities preparing their accounts in accordance with the Financral Reporting Standaid applicab￿ in the UK and Republic of Ireland IFRS 1021 (effective 1 January 20151. and the Companies Aci 20[￿. The financial slatemenis have been prepared under the historical cost conventK)n wth the exceptDn of Investrments which are included at market value. as modified by the revaluation of certain assels. The Trustees consider that there afe no material ￿n￿rtaIntieS regarding the chartsble company's abilty lo ¢onlinue as a going Car￿M. The ttustees have paid Part￿Ular attent￿n to the likely effects on the charity of the CovKI-19 outbreak and remain confident that the organisation has suffiu.ent ￿$OUr￿ lo enable the ¢harity lo ¢ontinue as going corTrcern for the foreseeable lulure_ Income All Income Is recognised In the Stalement of Financial Activities once the charity has entitlement to the funds, il Is probable that the irscome will be recesved and the amount can be measured reliably. Fees for services (seminars. conferences, publicalionsl are laken into account when the SeN1￿ Is performed Inco￿ ￿￿￿ed in advance ol a servKe is deferred until the cnteria for Incorne recognrtion ale mei Expenditure Liabilities are recognised as expenditure as soon as thare is a legal or constructive obligation committing the chanly lo that expenditure. il Is probable thal a tian51ei ol economic benefrts will be required In Sett￿ment and the amount of the obligation can be measured re5iabty Expendrture is accounted loi on all a¢cruals basis and has been dassified under headings that aggiegale all cost related to the category. Wherè ¢osts ¢annol bè dire¢lty 3itribuled lo particular headings Ihey have been allocated lo activities on a basis consistent with the use of resources. Irrecoverable VAT Irrecoverable VAT is ¢harged against Ihe category of resources expended lor which il w85 incurred. Charitable activities Challtable expenditure comprises those costs incurred by the chanty in delivery of its activities of rts services lo benelitiaries It exdudes governance cc>sls. Govemance costs Goveinance cosis Included those costs assoctated wth meeting the constitkjtional and statutory requirements Df the chanty and include the audrt fee and any costs linked to the strategic management ol the charity. They also include the costs of council meetings. Allocation and apportionment of costs Support costs are allocated to an activty on a basis ol average time spent by staff in ass>sting ihe organising and administration of those functions_ Tangible fixed assets Fixed asset addrtions and repL8cemenis of fumitufe and equiprnenl lolalling ovei £l,OLK) pa ale wrrtten off over their eslbrnaled useful life. using a 25% depreciation rate on written down value. The leasehold property has b*n revalued by the courril at 31 st Oecember 2000 on a current value basis. With effect from 2001 depieciation ￿ provhled so as to wrile off the lease over rts usefyl life. In accordance wrth the provisions of the SORP the Tnjstees have eleded not to incorpoiale further revaluations of the property in the financial state￿￿ntS. Page 18 continued... THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES- continued Tangible fixed assets Leasehold ￿￿p[9VeMents are written off over Ihetr estimated useful life using a deprecation rnle of 100 p a. on written d(ywn value. Stocks Stocks ale valued at the k>wer of cost and nel realisable value, after making due allowance for Obso￿te and Slow moving ileffls. Taxation The Charity is exempt from ￿rpOrat￿)n lax on its chantable activrties. Fund accounting Unrestricted funds can be used in accordance wrth the charitable objectwe5 al the discretion ol the trustees. Restricted funds can onTy tE used for particular restricted purposes within the objects ol the charity. Restrielions arise when sycified by the donoi 01 when lunds ale raised for particular ieslricled purposes Further explanalion of the nature and purpose of each fund is included in the note) to the lin3ncial statements. Pension costs and other posl-retirement benefits The Charitab￿ company OP¢rates a defined con¥ribulion pension s¢heme Contributions payable lo the chafilable Company's pensnn scheme are charged lo the Siaternent of Financial Activities in the pefK>d lo which they relate. Investments Fixed asset Investments are included at mafkel value at the balance sheet date Realised gains and Iosstts on invèstrnenls are calculated as Ihe difference between sale proceeds and their market value at the st2rt 01 the year or their SkJb5equent cost. and are charged or credited to the slaternenl of financial aclmties in the year of disposal Unrealised gains and k>sses represent the movement in market values during the year and are credited or charged lo the staternent ol finaftcial activ¢ties based on market value at the end ol the year. Financial instruments The Gharitable company enters into basic financial instruments transactions that result in the recognition ol financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third path'es and loans to related partEs and investments in non-puttable ordinary shales. Trade and other debtors Short term debtor5 are measuTed at transaction price, fess any impairment Loans receivable are measured initially at fair value, nel ol transaction costs. and are measured subsequently at amortised cost using the effective interest method, less any impaimienl Cash and cash equivalents Cash and cash equwalents comprise cash al bank and on hand. depO$￿S with banks and other 5hort-term highly liquid investments and bank overdrafts In the balan￿ sheet, bank overdrafts are shown within borrowings ol Cu￿nt liabilitts. Page 19 continued... THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 DECEMBER 2020 ACCOUNTING POLICIES - continued Investments Trade and other credito Short term trade creditois a￿ measured al thè transaction prKe. Other financial liabilities. including bank k>ans. are measured Inrtially at fair value. nel ol transadK*n c0515, and are measured subsequentty at amortised cost using the effe¢tNe iftteiesl method INVESTMENT INCOME 2020 2019 Deposrt Inte￿$1 1,386 3,586 All investmenl income is demied from assets held in the Unrted Kingdom. INCOME FROM CHARITABLE ACTIVlllES 2020 2019 Activity confe￿nCeS Seminars Publicat￿nS Conferences Seminars Publications Subscriptions and entrance lees M15ctsllaneous income 134,913 29.983 6.286 7.653 4.370 Membership Miscellaneous 324 680 12,908 305,550 9.253 349.611 485.995 CHARITABLE ACTIVITIES COSTS Direct Cos:s (see note 51 Support costslsee note 61 TolaL% Conferences Seminars Publications Membership rvliscellaneous 85 4.006 2.518 11,728 4.275 43.329 43.327 43.414 47.333 2.518 358.350 4.27S 346.622 .612 433.278 455.890 Page 20 ¢ontinued.. THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS- continuèd FOR THE YEAR ENDED 31 DECEMBER 2020 DIRECT COSTS OF CHARITABLE ACTIVITIES 2020 2019 Branch Techn￿31 visit Seminar costs Conference costs Publication cosis Members support costs MIs￿l￿aneOuS costs Awards IFHE Subscription Gran15 lolllroml branches 3S3 4,006 85 2,518 11,728 1,270 23.107 18,460 15,798 2,131 13,639 3,122 8.677 2,288 13481 2.314 338 22.612 86.874 SUPPORT COSTS Governance Costs Management Totals Conlerellces Seminars Membership 42.603 42.600 340.810 726 727 5,812 43,329 43,327 346,622 426.013 7.265 433,278 Activity Management Governance costs Bas￿ of allocalion Time Tiry Support cos15. induded in:,he above. ace as follows.. Managemenl 2020 Total activities 2019 Tolal activities confe￿nCeS Seminars Membership Wages Social security Pensions Of[1￿ CDsis Meeling costs Legal and professional lees Irrecoverable VAT Bad debts Depieci2lK)n ol tangible assets 26.016 2.542 26,016 2.542 208.127 20.340 6.759 54.498 1.657 260.1 $9 25.424 8.449 68.123 2.071 236,638 18,730 8,517 83,424 21,184 6,813 207 6.812 207 524 1.592 1.208 523 1.592 1.207 4.186 12.737 9.658 5.233 15.921 12.073 41,481 9,976 1,780 2.856 2,856 22,848 28.560 29,427 42.603 42.6rKI 340.810 426.013 4S1,137 Page21 continued... THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 DECEMBER 2020 SUPPORT COSTS- continued Governance costs 2020 Total aclwilies 2019 Total activities Conferen Semina Membership Auditors, remuneration Accountancy and ￿81 fees Cost of Council meellngs 574 574 4.592 5,740 6.835 36 116 37 116 292 928 365 1,160 950 18.574 726 727 5.812 7.265 26.359 NET INCOMEIIEXPENDITURE) Net incomellexpendiluiel is staled after chafgingllcredth"ng}". 2020 2019 Auditors. rernuneralion Deprecialion- owned asse15 Auditors, remuneration Non audit 5.740 28,508 365 6.835 18,844 2,705 TRusfEES' REMUNEFiATION AND BENEFITS There were no trustee5' rernuneration or other benefits for the yèar ended 31 December 2020 nor lor the year ended 31 Oecember 2019. Trustees. expenses Trustees are reimbursed actual costs necess31?ly Incurred In attending to the charity's busin2S5 al council meeting These rna.nly indude travelling CDSts The nvrrtber of Truslees reirnbursed was 3 12019. 71 the toial reimbursed was £1.07812019'. £7.1271. STAFF COSTS 2020 2019 Wages and salaries Social security costs Other pension costs 260.159 25,424 8,449 236.638 18,730 8,517 294.032 263.885 The average nK)nlhty number of employees during the year was as follows". 2020 2019 One employee received emolLFrrEnls in excess of £60.000. Key management personnel The key rnanagement personnel of the charrtable company compiise the trustee5. the Chief Executive Officer, and the Executive hlanager The total employee benelrts ol the key management personnel ol Ihe Charilèble company were £150.228 12019". £106.5721 This doe5 not include remuneration lor Iiuslees, all ol which is rerxjrted as pei note 8. Page 22 continued THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020 10. COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACnVITIES un￿$1￿Cted fund Restricted funds Total funds INCOME AND ENDOWMENTS FROM Charitable activities Conferences Seminars PublicalK)ns Membership Miscellaneous 134,913 29.983 6.286 305.550 9.263 134,913 29,983 6.286 305.550 9.263 Inveslment income 3.586 3.586 Total 489.581 489,581 EXPENDITURE ON Charitable activities Conferences Seminais Publications MerTrbership Miscellaneous 63.598 66,281 2.131 404.211 28.169 63.598 66,261 2,131 404.211 28.169 Total 564.370 564.370 NET INCOMEIIEXPENOITUREI 174.7891 174,7891 RECONCILIATION OF FUN)1 S Total funds brought foTrvard 8C15.734 4.382 810.116 TOTAL FUNDS CARRIED FORWARD 730,945 735.327 Page 23 continued.. THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT NOTES TO ThE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020 TANGIBLE FIXEDASSETS ImprOve￿EntS to property FixtUFes and fittings Long leasehokt Totals COST Al 1 January 2020 Additions Disposals 135,000 31.901 136,847 75,753 12,4951 303,748 76.753 12,4951 Al 31 December 2020 135.000 31,901 211,105 378,006 DEPRECIATION Al 1 January 2020 Charge lor year Eliminated on disposal 25.650 1.350 21,602 1,031 74.183 26,127 12,442} 121.435 28,508 12,4421 Al 31 December 2020 27,000 22.633 97.868 147.501 NET BOOK VALUE At 31 Oecember 2020 108.000 9.268 113,237 230,505 Al 31 December 2019 109.350 10.299 62.664 182,313 The leasehoSd pioperty Is shown above at a va'.ualion carried out by the Council on 31 sl December 2000 on a current use basis. The hisioiical cost or ine property Is ¢149.598. 12. FIXED ASSET INVESTMENTS Shares in group undertakings MARKET VALUE Al 1 January 2020 and 31 December 2020 200 NET BOOK VALUE At 31 December 2020 200 Al 31 DeCem￿r2019 200 There were no inveslmenl assets outside the UK. The corrtpanls investments al the balance sheet dale in the share capital of companies indude the following.. Healthcare Building and Engineering Limited Registered oftice 2 Abingdon House. Cumberfand Business Centre. Portsmouth. Hampshire. POS IDS Nature of business.. Dormant Class of share.. Ordinary shares holding 100 2020 2019 Aggregate capital and ie5erves 100 100 Page 24 continued... THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS- continued FOR THE YEAR ENDED 31 DECEMBER 2020 12. FIXED ASSET INVESTMENTS- continued IHEEM Ltd Registered Offi￿." 2 Abingdon House. CumberLgnd Business Centre. Portsmouth. Hampshire, P05 1DS Nature ol business". DO￿llant CL4ss of share. Ordinary shares holding 100 2020 2019 Aggiegale Capital and ￿seNe$ 100 100 13. STOCKS 2020 2019 Finished goods 4.911 2.834 14. DEBTORS: AMOUNTS FALLING DUEWITHIN ONE YEAR 2Q20 2019 Trade debtors B3d Debt Provision Oiher debtors 320,232 112,0731 31.646 303.189 22,412 339.805 325.601 15. CREDITORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 2020 2LI19 Trade creditors Social secunly and Dlher taxes DE&ferred subscnption In¢ome Other creditors Accrued expenses 3.326 31,947 20,343 310,805 28,021 8,226 324118 49.363 6.019 404 99S 399,342 The charitable company hokls ftjnds on behaff ol the Decontamination Technical Platform. These funds do not belong lo the ¢haritabk Company and Iherefoie are recogn15ed as a Iiabiliw. The balance as at 31 De￿mber 2020 ts £2.29012019." £2.2901 and 15 induded within other credrtor5. Deferred income represents membershÈp subscriptions received in advance 2020 2019 Brought forward Amount released to incoming reSoUr￿S Amount deferred in year 310.805 1310.8051 324.118 47.711 147,7111 310,805 Carried forward 324,118 310,805 Page 25 continued... THE INSnTUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020 16. ANALYSIS OF NET ASSETS BETWEEN FUNDS 2020 Total fund5 2019 Total funds Unlestricted fvnd Restricted fund5 Fixed assets Investments Current assets Current IkHbilrties 230.505 200 800.343 1404.9%) 230,505 200 804.725 1404.9961 182,313 200 952.156 1399.3421 4,382 626.052 4.382 630.434 735.327 17. MOVEMENT IN FUNDS Net movement in funds At 31.1220 At 1.1_20 Unrèstricted funds General fund 730.945 1104.8931 626,052 Restricted funds Northcrc>ft Silver Medal Award Fund Lucas Scholarship Fund 1.086 3.296 1.086 3.296 4.382 TOTAL FUNDS 735 327 1104 8931 630.434 Nel movernenl in funds, indb(Èd in rhe above are as follows". Incoming resources Resources expended Movément In ILSnds Unrestricted funds General fund 350,997 1455.8901 1104 8931 TOTAL FUNDS 350.997 1455,8901 1104,8931 Page 26 continued... THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2020 17. MOVEMENT IN FUNDS - continued Comparatives for movÈment in funds Net movement in funds At 31.12.19 At 1.1_19 Unrestricted funds General fund 805.734 174.7891 730,945 Restricted funds Northcroft Silver Medal Award Fund Lucas Scholarship Fynd 1,086 3.296 1.086 3.296 4.382 4.382 TOTAL FUNDS 810.116 174,7891 735,327 Comparative net fflovÈment In funds. induded in the aixFve are as folbws. Incoming resoUr￿S Resources expended Movement in funds UnrestrictEd funds General fund 489.581 1564.3701 174,7891 TOTAL FUNDS 489.581 1564.3701 174,7891 EMPLOYEE BENEAT OBLiGATIONS The charitable company operates a deflned contribution scheme which is administered Independently. The costs toi the charitable -ompany lor the year E8.44912019.' £8.5171 ThtiE was £668 due lo the pension scheme adminLslrator al Ihe year end 12019". £8171 The expected cost to the charitable compar)y in the coming year Is expected to be in line with that of 2020 19. RELATED PARTY DISCLOSURES There were no ￿late(j paty Iransactions for the year ended 3IDe￿Mber 2020. 20. ULTIMATE CONTROLLING PARTY The charitable company is under the control of ts members. Nlo one member has sufficient votin9 rights lo control the chaiitable company. Page 27 continued THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 310ECEMBER 2020 21. LEGAL STATUS OF THE CHARITY The charitable company is a Itmited by guaianlee and has share capital. The Irabilily of each member in the evenl of ￿nd￿g up is limrted to £1. 22. CONFERENCE AND SEMINAR ANALYSIS Head Offbce Welsh Branch N.Ireland Branch Branches Total Income TOTAL Conference Activity Conference Delegate Income Step ExhibilK)n ContributK>n Totsl Conference In¢ome Seminar Activity Seminar income 6.810 843 7,653 6.810 843 7.653 Expenditure Conference Activity Conferèncè 2020 85 85 Direct Conference Expenses SLlPPOrt Costs (Note Sl 85 43,329 85 43.329 Total Conference Expenditure 43.414 43,414 Seminar AcEivity Electric seminar Wales exhibition and conference AE conference Seminar expenses Irish Conference Seminar mind matters 2.50D 80 95 25 236 1.070 2,500 80 95 25 236 1,Q17Ql Direct Seminar Expenses Support Costs (Note Sl 4,01 43,327 43,327 Total Seminar Expenses 47.333 47,333 Conlerer7ce IDeficitl Sèminar (Deficit) 143,4141 139.6801 Page 28 ## **FINAL AUDIT COMMUNIQUÉ FOR THE YEAR ENDED** ## **31 DECEMBER 2020** ## **FOR** ## **THE INSTITUTE OF HEALTHCARE ENGINEERING AND ESTATE MANAGEMENT** **CONTENTS** **Introduction Key Findings Audit Scope and Objectives Audit Approach ANNEX A: Financial Adjustments ANNEX B: Key Findings and Recommendations ANNEX C: Errors Noted During Audit Which Were Not Adjusted ANNEX D: Minor Findings and Recommendations ANNEX E: Audit Findings Regarding Identified Risks ANNEX F: Weaknesses in Internal Controls Identified ANNEX G: Analytical Review ANNEX H: Letter of Representation From Management** ## **Introduction** - 1 Our work on the audit of the financial statements for the year ended 31 December 2020 of The Institute of Healthcare Engineering and Estate Management is now complete and we have issued an unqualified auditor’s report on 27 April 2021. - 2 Our opinion is in three parts. We provide an opinion on whether: - the financial statements give a true and fair view of the state of The Institute of Healthcare Engineering and Estate Management’s affairs as at 31 December 2020 and of its incoming resources and resources expended for the year then ended; - the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to smaller entities; - the financial statements have been properly prepared in accordance with the Companies Act 2006. - 3 In accordance with International Standard on Auditing (UK and Ireland) 260 (October 2012), “Communication of Audit Matters to those Charged with Governance”, we have produced this report for the attention of those charged with governance. This final audit communiqué has been produced to fulfil those requirements. ## **Key Findings** - 4 We identified the following minor issues arising from our audit: - No expense form on file for T Davies - 5 Full details of all the audit findings and our recommendations can be found in Annexes B and D. - 6 There were no uncorrected errors. - 7 We would like to take this opportunity to express our thanks for the assistance and support we have received from the charitable company’s staff with whom we came into contact during our audit. ## **Audit Scope and Objectives** - 8 Morris Crocker is the appointed independent external auditor under the Companies Act 2006. - 9 In carrying out our audit we have regard to the responsibilities of the trustee directors to prepare financial statements which give a true and fair view of the entity’s state of affairs at 31 December 2020 and of its incoming resources and resources expended and cash flows for the financial year, as well as to ensure that they have been properly prepared in accordance with the Companies Act 2006. - 10 Our examination of the financial statements for the year ended 31 December 2020 was carried out in accordance with International Standards on Auditing (UK and Ireland) (October 2012) issued by the Auditing Practices Board. We have a professional responsibility to report if the financial statements do not comply in any material respect with the standards issued or adopted by the Accounting Standards Board. - 11 Our audit procedures are designed primarily to provide an opinion on whether the financial statements provide a true and fair view of the charitable company’s position as at 31 December 2020 and the incoming resources and resources expended for the year then ended. - 12 As part of our audit we also review the financial information contained in the Report of the Trustees and elsewhere to ensure it is consistent with the financial statements. ## **Audit Approach** - 13 Our approach is primarily risk based. We collect information by having discussions with staff and reviewing key documents to improve our understanding of the charitable company’s operations. This enables us to form a preliminary view of the strengths and weaknesses of the overall control environment. We also review the information systems controls and the controls operating for specific account balances. We then use this information to identify the significant risk areas. We review management controls and test their design, operation and effectiveness in order to determine those from which we can gain assurance and those where we need to direct more audit focus. - 14 We undertake audit procedures on all account areas, focusing on where we have identified a significant risk of error, and evaluate results in order to support our audit opinion. We review accounting systems and management controls operated by the charitable company only to the extent we consider necessary for the effective performance of our audit. The results of all these aspects of the audit are brought together and evaluated to consider the impact on our opinion. - 15 The matters detailed in this final audit communiqué arose from our normal audit procedures that were undertaken in accordance with International Standards on Auditing (UK and Ireland) (October 2012) issued by the Auditing Practices Board. The responsibility for the implementation and monitoring of internal and management controls rests with The Institute of Healthcare Engineering and Estate Management. Our work did not involve a detailed review of all aspects of the systems and cannot be regarded as a comprehensive statement of all weaknesses that might exist, or of all improvements that might be made. - 16 As part of our audit we report to management those matters that we consider merit their attention and recommend appropriate remedial action. However, management remains responsible for implementing these and our recommendations should be assessed for their full impact before they are implemented. ## **Areas of Audit Risk** - 17 Our audit plan highlighted two material risks for specific audit emphasis. Our findings against each of the identified risks are set out in Annex E. ## **Matters Specifically Required to be Communicated to Those Charged with Governance** ## **Fraud** - 18 We require management to acknowledge in writing its responsibility for internal controls to present and detect fraud. - 19 We also require management to disclose to us: - The results of their assessment of the risk that financial statements may be materially misstated as a result of fraud; - Their knowledge of fraud or suspected fraud affecting the charitable company involving management, employees or others; and - Their knowledge of any allegations of fraud, or suspected fraud communicated by employees, former employees, analysts, regulators or others which may have an impact on the financial statements. ## **Effectiveness of Communications** - 20 International Standard on Auditing (UK and Ireland) 260 (October 2012) requires us to review the effectiveness of communications between the auditors and those charged with governance. - 21 Throughout our audit we have ensured that communications have been effective. We had an audit planning meeting with Tania Davis before our audit fieldwork commenced. - 22 In addition, the audit team liaised with finance staff at the charitable company throughout the course of the audit which ensured that all issues arising were dealt with at the earliest opportunity. - 23 Overall, we consider that communications between Morris Crocker and The Institute of Healthcare Engineering and Estate Management have operated effectively throughout the audit. ## **Material Weaknesses in Internal Control** - 24 A material weakness in the accounting and internal control systems is a deficiency in design or operation which could adversely affect the charitable company’s ability to record, process, summarise and report financial and other relevant data, and which might result in a material misstatement in the financial statements. - 25 As external auditors, our communications of matters include only those audit matters of governance interest that have come to our attention as a result of the performance of the audit. - 26 During our audit we reviewed the accounting systems and management controls operated by the charitable company only to the extent we consider necessary for the effective performance of the audit. As a result, our review may not have detected all weaknesses that exist or all improvements that could be made. - 27 No material weaknesses in the accounting and control systems have been identified by us during our audit of the financial statements. ## **Other Audit Matters of Governance Interest** - 28 International Standard on Auditing (UK and Ireland) 260 (October 2012) also requires us to communicate to those charged with governance any other audit matters of governance interest to be raised in this report. - 29 There are no other matters of governance interest to be raised in this report. ## **Qualitative Aspects** - 30 Under International Standard on Auditing (UK and Ireland) 260 (October 2012), we are required to give our views about the qualitative aspects of the charitable company’s accounting practices and financial reporting. ## **Significant Accounting Policies, Practices and Financial Reporting** - 31 The accounting requirements of company law, the SORP and United Kingdom Accounting Standards permit a degree of choice in some areas as to the specific accounting policies and practices that may be adopted by an entity. - 39 There were no significant accounting estimates or areas of judgement. ## **Review of Information in the Report of the Trustee Directors** - 40 We have reviewed the Report of the Trustees for consistency with the financial statements and our understanding of the charitable company’s operations. There were no issues arising from this review. ## **Significant Disagreements with Management** 41 There were no such disagreements. ## **Letter of Representation** - 32 We have considered the appropriateness of the accounting policies and practices adopted by the charitable company. The accounting policies adopted are appropriate. No accounting policies or practices requiring change have been identified by us during our audit of the financial statements. ## **Timing of Transactions** - 42 The charitable company’s management have provided us with a letter of representation under guidance issued by the Auditing Practices Board (See Annex H). If you wish to discuss any issues raised in this report please contact Paul Underwood on 023 9248 4356 or at pu@morriscrocker.co.uk. - 33 The timing of transactions tested did not highlight any significant issues. ## **Material Uncertainties** - 34 There were no material uncertainties highlighted during the course of the audit. ## **Unusual Transactions** - 35 The financial statements were not unduly affected by unusual transactions. ## **Significant Matters Arising in Connection with Related Parties** - 36 During the course of the audit no significant matters involving related parties were identified. ## **Presentational Matters** - 37 During the course of the audit no non–financial and presentation issues were identified. ## **Areas of Significant Estimation and Judgement by the Charitable Company** - 38 We consider the appropriateness of any significant accounting estimate and judgements throughout our audit. ## **ANNEX A: Financial Adjustments** As a result of our audit, the following adjustments were made to the draft accounts presented for audit. 1) Being adjustment to irrecoverable VAT ||Dr|Irrecoverable VAT|£15,737|| |---|---|---|---|---| ||Cr|VAT||£15,737| |2)|Being adjustment for|the audit accrual||| ||Dr|Auditors remuneration|£4,330|| ||Cr|Accruals||£4,330| |3)|Being branch adjustments|||| ||Dr|Branch technical visit|£353|| ||Dr|Office costs|£283|| ||Dr|Meeting costs|£840|| ||Dr|Accountancy|£1,300|| ||Dr|Grants to/from branches|£338|| ||Dr|Other debtors|£480|| ||Dr|Bank|£4,402|| ||Dr|Creditors|£1,007|| ||Cr|Deposit interest||£54| ||Cr|Miscellaneous income||£8,106| ||Cr|Seminar income||£843| |4)|Being disposal of photocopier|||| ||Dr|Profit/Loss on disposal|£53|| ||Dr|Disposal of asset – Depreciation|£2,442|| ||Cr|Disposal of asset - Cost||£2,495| |5)|Being provision for bad debts|||| ||Dr|Bad debt provision|£12,073|| ||Cr|Trade debtors||£12,073| ## **ANNEX B: Key Findings and Recommendations** There were no key findings or recommendations. ## **ANNEX C: Errors Noted During Audit Which Were Not Adjusted** There were no errors noted during the audit which were not adjusted. ## **ANNEX D: Minor Findings and Recommendations** ## **1) No expense form on file for T Davies** |Observation|No expense claim form was available for Tania Davies expenses
in May 2020.| |---|---| |Implication|There is a possibility that payments could be made incorrectly.| |Recommendation|Obtain a copy of all approved expense forms and keep these on
file.| |Response|| |Action Date|| ## **ANNEX E: Audit Findings Regarding Identified Risks** |**Risk identified**|**Response**| |---|---| |Income recognition and deferred income|We carried out system walkthrough testing, income
systems appear to be working adequately. We carried out
proof in total testing, with no issues noted. We reviewed
the after-date receipts and the deferred income
schedules to ensure that cut-off had been correctly
applied. Income did not appear to be materially
misstated.| |Management override|We reviewed a sample of journal entries to ensure they
were correct. No evidence of management override was
identified.| ## **ANNEX F: Weaknesses in Internal Controls Identified** There were no weaknesses in internal controls identified. ## **ANNEX H: Analytical Review** ## **INCOME** Income has decreased from £489,581 in 2019 to £350,997 in 2020. Conference income has decreased by £134,913 due to the Coronavirus pandemic there was no conference this year and the STEP contract was terminated in January 2020. Seminar income has decreased by £22,330; this is due to a decrease in the number of seminars this year as expected due to the lockdown measures in place. Income from publications has decreased by £1,916, additional efforts were made in 2019 increase the advertising on the wall planners. Membership income has increased by £19,130 compared to 2019, this is due to the increase in membership rates and numbers. Miscellaneous income has increased by £3,645. Investment income has decreased by £2,201, there was less cash held in deposit accounts over the year. ## **EXPENDITURE** Expenditure has decreased from £564,370 in 2019 to £455,890 in 2020. Conference costs have decreased by £20,184. Direct conference costs have decreased by £15,713, due to the pandemic there were no large conferences this year. Seminar costs have decreased from £66,261 in 2019 to £47,333 in 2020, there were less seminars in 2020 due to the Coronavirus pandemic. Direct seminar costs have decreased by £14,454 and seminar support costs have decreased by £4,474. The cost of publications has increased from £2,131 in 2019 to £2,518 in 2020. Membership costs have decreased from £404,211 in 2019 to £358,350 in 2020. Direct membership costs have decreased by £10,588 which is due to members support costs decreasing by £1,911 and awards which have decreased from £8,677 in 2019 to £nil in 2020, the President’s address event made a loss last year as expenditure increased. Miscellaneous costs have increased by £23,894 the Northern Ireland technical visit costs have decreased from £23,107 in 2019 to £353 in 2019, £19,203 was included in 2019 for the technical trip. Support costs have decreased from £477,496 in 2019 to £433,278 in 2020. Staff costs have increased by £23,521, due to the bonuses paid in 2020. Office costs have decreased by £15,301, largely due to staff recruitment costs in 2019 for £12,436. Three vacancies were put on hold in 2020 due to the Coronavirus pandemic. Computer costs have increased by 31% this year due to the additional IT maintenance required this year for website and server labour. There are £12,073 of bad debts included this year compared to £1,760 in 2019. Additional costs for irrecoverable VAT this year for £15,921 compared to £9,976 in 2019. Meeting costs have decreased by £19,113, 2019 included costs for Manchester which didn’t go ahead in 2020. Governance costs have decreased from £26,359 in 2019 to £7,265 in 2020. This is due to the decrease in council meetings from £18,574 in 2019 to £1,160 in 2020. There were additional costs for council initiatives last year and expenditure for the engineering talent awards totalling £5,065. ## **FIXED ASSETS** The net book value of fixed assets has increased from £182,513 in 2019 to £230,705. Additions totalled £76,753 which is largely for the new database system. The total depreciation charged for the year is £28,508. 11 ## **ANNEX G: Analytical Review** ## **CURRENT ASSETS** Current assets have decreased from £952,156 in 2019 to £804,725. Cash at bank has decreased by £163,712 compared to 2019. This includes a decrease to branch bank balances of £687. Stock has increased from £2,834 compared to £4,911 in 2020. Debtors have increased from £325,601 in 2019 to £339,805 in 2020. Trade debtors are £320,232 in 2020 compared to £303,189 in 2019 there has been an increase in membership income which is also reflected in the increase in deferred income. Other debtors have increased from £22,412 in 2019 to £31,646 in 2020, this is due to additional prepayments for the Dublin conference which was postponed in 2020 and rearranged for November 2021. ## **CREDITORS** Creditors have increased from £399,342 in 2019 to £404,996 in 2020. Trade creditors have decreased by £28,621, there were two large balances outstanding as at the end of last year for Equal Engineers Ltd and Senior Internet Ltd. Social security and other taxes has increased by £1,827, and this is largely due to an increase in the VAT liability compared to 2020. As mentioned above the largest increase in creditors is due to the increase in deferred subscription income from £310,805 in 2019 to £324,118. Other creditors have increased from £28,021 in 2019 to £49,363 in 2020, this is due to the seminar income collected in advance totalling £31,487 in 2020 compared to £5,850 in 2019. There has been a decrease in accruals this year of £2,207. ## **ANNEX I: Letter of Representation from Management** **Our Ref:** PU/NCL/1INS01 ## **Your Ref:** 13 April 2021 Morris Crocker Station House North Street Hvant Hampshire PO9 1QU Dear Sirs ## **The Institute of Healthcare Engineering and Estate Management** We confirm that the following representations are made on the basis of enquiries of management and staff with relevant knowledge and experience (and, where appropriate, of inspection of supporting documentation) sufficient to satisfy ourselves that we can properly make each of the following representations to you in connection with your audit of the charitable company's financial statements for the year ended 31 December 2020. ## **GENERAL** - 1 We have fulfilled our responsibilities as trustee directors under the Companies Act 2006 for preparing financial statements in accordance with applicable law and applicable United Kingdom Accounting Standards, for being satisfied that they give a true and fair view and for making accurate representations to you. All the accounting records have been made available to you for the purpose of your audit and all the transactions undertaken by the charitable company have been properly reflected and recorded in the accounting records. All other records and related information, including minutes of all management and shareholders meetings, have been made available to you. - 2 The financial statements are free of material misstatements, including omissions. - 3 We believe that the effects of uncorrected misstatements (as set out in the appendix to this letter) are immaterial both individually and in total. ## **INTERNAL CONTROL AND FRAUD** - 4 We acknowledge our responsibility for the design and implementation of internal control systems to prevent and detect fraud and error. We have disclosed to you the results of our risk assessment that the financial statements may be misstated as a result of fraud. We have disclosed to you all instances of known or suspected fraud affecting the entity involving management, employees who have a significant role in internal control or others that could have a material effect on the financial statements. We have also disclosed to you all information in relation to allegations of fraud or suspected fraud affecting the entity’s financial statements communicated by current or former employees, analysts, regulators or others. ## **ASSETS AND LIABILITIES** - 5 Stock is not stated at an amount in excess of net realisable value. - 6 The charitable company has satisfactory title to all assets and there are no liens or encumbrances on the charitable company’s assets, except for those that are disclosed in the notes to the financial statements. - 7 We have recorded or disclosed, as appropriate, all liabilities, both actual and contingent, and have disclosed in the notes to the financial statements all guarantees that we have given to third parties. - 8 We have no plans or intentions that may materially alter the carrying value or classification of assets and liabilities reflected in the financial statements. - 9 We have no plans to abandon product lines or other plans that will result in any excess or obsolete stock. ## **ACCOUNTING ESTIMATES** - 10 Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. ## **LOANS AND ARRANGEMENTS** - 11 The charitable company has not granted any advances or credits to, or made guarantees on behalf of, trustee directors other than those disclosed in the financial statements. ## **LEGAL CLAIMS** - 12 We have disclosed to you all claims in connection with litigation that have been, or are expected to be, received and such matters, as appropriate, have been properly accounted for and disclosed in the financial statements. ## **LAWS AND REGULATIONS** - 13 We have disclosed to you all known instances of non-compliance or suspected non-compliance with laws and regulations whose effects should be considered when preparing the financial statements. ## **RELATED PARTIES** - 14 Related party relationships and transactions have been appropriately accounted for and disclosed in the financial statements. We have disclosed to you all relevant information concerning such relationships and transactions and are not aware of any other matters which require disclosure in order to comply with the requirements of company law or accounting standards. ## **SUBSEQUENT EVENTS** - 15 All events subsequent to the date of the financial statements which require adjustment or disclosure have been properly accounted for and disclosed. ## **GOING CONCERN** - 16 We believe that the charitable company's financial statements should be prepared on a going concern basis on the grounds that current and future sources of funding or support will be more than adequate for the charitable company's needs. We have considered a period of twelve months from the date of approval of the financial statements. We believe that no further disclosures relating to the charitable company's ability to continue as a going concern need to be made in the financial statements. ## **AUDIT ADJUSTMENTS** - 17 We approve the audit adjustments as documented in Annex A attached to this letter. ## Yours faithfully ## **The Institute of Healthcare Engineering and Estate Management** ............................................................ Signed on behalf of the board of trustee directors Date: ........................................................