Annual Reporl and Financial Statement 2022 1 ## **President’s Foreword** The Institution of Lighting Professionals (ILP) has shown great resilience in its return to in-person events and training during 2022. There have been several changes that have now started to bring the organisation to a new settled state with our Chief Executive Officer, Justin Blades, taking the lead. Justin continues to manage the ILP effectively to promote its knowledge and expertise across the lighting community and beyond, continuing to use the professional skills and competence of our members and volunteers to produce new guidance, share knowledge and promote best practice. Over the last year we have introduced the ILP Strategy2026 as a core focus of the Institution’s forward direction, while we have continued to promote our core values based on excellence in lighting. We have also seen many successful face-to-face events both nationally and locally with record numbers of local authority lighting professionals attending. We have seen the Lighting Delivery Centres (LDCs) return to delivering great local events engaging and supporting members on a local level. The ILP has continued to develop its digital platforms to allow hybrid and online events, to maintain an inclusive and accessible Institution for all, and it is through our many events and initiatives that the ILP continues to demonstrate our many membership benefits. The Exterior Lighting Diploma (ELD) training continues to go from strength to strength and the ILP continues to share its knowledge as far and wide as possible reaching an increased number of members across the UK, Ireland, and beyond. The ILP has always been supported at the head office by our wonderful staff team to whom the Board are very grateful. Over the last year we have seen changes at the head office but with Justin’s ILP Annual Report and Financial Statement 2022 2 lead we are positive the new staff will bring a new creative spirit and professionalism to the Institution moving forward. With the new strategy leading projects to bring the voice of the membership to the forefront of the ILP, I find myself looking to the future with positivity for the lighting community. The Board and volunteers are providing an invaluable amount of insight to support projects across the strategy working together to reach out to even more people with a passion for lighting including our project on Pathways into Lighting. As I step down as President, I feel positive that I am leaving an organisation that is moving in the right direction to inspire the next generation of volunteers and future presidents to come forward from all walks of our industry bringing their own experiences and knowledge to better our institution. I am very pleased to be handing over to Rebecca Hatch, who I know is very passionate to drive forward membership and the innovation at the heart of the Institution. The presidential succession profile behind Rebecca shows our progressive nature reminding our membership that the ILP, with continuing success of the Young Lighting Professionals (YLP) and LDC member communities, is a dynamic and creative organisation at the forefront of lighting. I hope the information within this Annual Review will encourage every member to be the change they want to see and by getting involved with one of our new projects will give you a voice and allow you to be part of an organisation at the forefront of lighting. The Strategic Implementation Programme (SIP) projects include: SIP project 01 - Membership Development – Rebecca Hatch / Elizabeth Thomas SIP project 02 - Technical Knowledge Base – Anthony Smith SIP project 03 - Industry Partner Recognition Scheme – Perry Hazell SIP project 04 - Pathways into Lighting – Fiona Horgan SIP project 05 - External Stakeholder Engagement – John Sutcliffe ILP Annual Report and Financial Statement 2022 3 If you are interested in getting involved and would like to find out more about the projects listed above, please contact Justin Blades, our CEO via Justin@theilp.org.uk. Together we can influence a sustainable lighting industry and have a positive impact on society. ## **Fiona Horgan ILP President** ILP Annual Report and Financial Statement 2022 4 ## **Our mission** The institution's mission is to support and develop lighting professionals and their global contribution for the benefit of society and the environment. ## **Our vision** Our vision is for a world illuminated by sustainable lighting solutions that help us to live, work and play without negatively impacting on the environment around us. ## **Our values** These are the values that will guide our actions and set the culture for the organisation as it moves into its second century. Professionalism Ethical Honesty Openness Accountability Innovative ## **Our objectives** The Institution was formed to promote, encourage and improve the science and art of lighting for the benefit of the public and for this purpose to facilitate the exchange of information and ideas on the subject among members of the Institution and otherwise and in furtherance thereof. ## **Structure, governance and management** The Institution of Lighting Professionals has previously been known as: The Institution of Lighting Engineers The Institution of Public Lighting Engineers The Association of Public Lighting Engineers Limited ILP Annual Report and Financial Statement 2022 5 The organisation was incorporated on January 21st, 1928. It is registered as a charity 268547 with the Charity Commission and company 227499 with Companies House in England. The Institution's present governing document is its Articles of Association 2010, as amended by Special Resolution on September 23rd, 2015. This document is available at www.theilp.org.uk and printed copies on are available on request. The Trustees of the Charity are also Directors of the Company. They make up the ILP Executive Board: the governing body of the Institution. This team is responsible for the regulatory and financial functions with the Chief Executive Officer holding the position of Company Secretary. During the year, the Trustees of the Institution had due regard to the Charity Commission's public benefit guidance when exercising their powers and duties. The Executive Board considers that the Institution's objectives and activities are for the public benefit. This consideration underpins the projects and decisions made by the organisation. At the start of 2022, the members of the Executive Board were: |President|Fiona Horgan| |---|---| |Senior Vice President|Rebecca Hatch| |Junior Vice President|Perry Hazell| |Immediate Past President|Anthony Smith| |Honorary Treasurer|James Duffin| |Honorary Treasurer|John Sutcliffe| |Co-opted Board member|Colin Fish| |Chief Executive Officer (non-voting)|Justin Blades| At the instigation of the Chief Executive, a request for expression of interest in serving on the Executive Board is sent to the two serving Honorary Treasurers and every Vice President serving at the commencement of each calendar year. Expressions of interest are considered at a joint meeting of the Executive Board and the previous five Past Presidents, as defined in the Articles. ILP Annual Report and Financial Statement 2022 6 We held our Annual General Meeting on June 21st, 2022. The Executive Board confirmed at the meeting comprised: President Fiona Horgan Senior Vice President Rebecca Hatch Immediate Past President Anthony Smith Junior Vice President Perry Hazell Honorary Treasurer John Sutcliffe Honorary Treasurer James Duffin Chief Executive Officer (non-voting Justin Blades The posts of Junior Vice President, Senior Vice President and Honorary Treasurer and Assistant Honorary Treasurer are subject to annual appointment in line with the requirements of the Institution's Articles of Association. ## **Volunteers** The ILP Council comprising Regional Representatives, VicePresidents, YLP and the Executive Board, meet regularly to discuss and co-ordinate ILP activities and initiatives. Young Lighting Professionals (YLP) is a section of the ILP focussing on how best to serve members aged 35 or under, or in the first few years of their lighting career, supported by a volunteer YLP committee. Vice Presidents take responsibility for key areas within the Institution, supported by committees, working groups and other volunteers. At the start of 2022, the following Vice Presidents were in post: Membership Development Glen Warner Architectural Graham Festenstein Local Authority Michala Medcalf Technical Haydn Yeo Education Kimberly Bartlett Government & Policy Alistair Scott Contracting Steve Biggs Products Scott Pengelly Engineering Council Guy Harding ILP Annual Report and Financial Statement 2022 7 ## **Engineering Council - Licence Renewal** Following an audit, the Institution's licence to award the registrations Engineering Technician, Incorporated Engineer and Chartered Engineer to individuals working in the lighting profession was renewed until July 2026. These registrations form the foundation of the Institution's definition and assessment of competence in lighting and a fundamental part of the ILP's delivery of its societal benefit to ensure that lighting professionals are competent to discharge their professional responsibilities to provide safe, fit-for-purpose and sustainable lighting solutions. ## **Online networking - Hi Lights** ILP's Hi Lights, an online session for everyone in lighting, continues to help connect our community. The drop-in sessions offer networking opportunities and provide access to speedy advice from lighting peers, peer-to-peer support with projects and specifications and the chance to virtually connect with a group of lighting colleagues. Now established as a monthly event, Hi Lights has connected hundreds of professionals from all over the globe, from India to Ireland, from student to Fellows, from manufacturers to designers. ## **LDC Continuous Professional Development (CPD) in-person events and webinars** Working alongside our staff team at Rugby, LDC committee members delivered several CPD in-person events and webinars throughout the year. Topics included: - Supporting the roll-out of Electric Vehicle charging infrastructure - a DNOs perspective - Local Authority Lighting: Energy Crisis - Dark Skies - Ecology and technology - TM66 - Beyond Illumination ILP Annual Report and Financial Statement 2022 8 ## **The Professional Lighting Summit** Over 300 people came together in Bristol in June to hear from experts, discuss and debate current lighting technical issues and best practice and see the latest innovations from manufacturers with the welcome return of the Professional Lighting Summit following its suspension during the Covid-19 pandemic. ## **The Lighting Journal** The Lighting Journal is distributed to lighting professionals including lighting designers, consultants, and engineers. The Lighting Journal delivers information on all aspects of the lighting profession including technical coverage and development, new products and services, and professional news. ILP members receive every issue of the Lighting Journal by post or digitally and can also access back issues in the library at Regent House. ## **The Lighting Column Technical Forum (LCTF)** The Forum is an independent section of the ILP. The group was formed to provide a source of knowledge, expertise, and information on all aspects of lighting column specification, design, manufacture, supply, storage and installation together with many of the associated products, materials and treatments. Our **website** continues to provide advice and information to everyone through our free-to-read content and content restricted to members-only. Our **online member portal** allows members to record CPD, access ILP documents, change personal details, pay subscription fees, and check membership grades and numbers. ## **CPD Training and Education** ILP continues to deliver quality technical CPD training in lighting and we continued to our programme of face-to-face residential courses in 2022: - Our well-respected Exterior Lighting Diploma (ELD) Modules A & B were delivered in spring and autumn 2022 ILP Annual Report and Financial Statement 2022 9 - An onsite ATOMS course was delivered in March 2022 ## **ILP Online Training Portal** Our online training portal continues to provide online access to our courses and education in a format that makes it easy for members to learn and address their CPD needs at their own pace when and where they like. The platform offers online versions of ILP's most popular one-day courses: Asset Management Toolkit: Minor Structures (ATOMS) Fundamentals and the Fundamental Lighting course. ## **Technical Knowledge and Assistance** In September 2022 Guy Harding was appointed as the new Technical Manager taking over from Peter Harrison following his retirement and many years of service to the Institution. The following documents were updated and published: ## **GN08-18 Bats and Artificial Lighting in the UK** This guidance note is intended to raise awareness of the impacts of artificial lighting on bats but also the potential solutions to avoid and reduce this harm. This new publication was published in association with the Bats Conservation Trust. ## **GN13-22 Surge Protection for Exterior Lighting** ## **Installations** BS7671 2018 'Requirements for Electrical Installations', known as the 'Wiring Regulations', specifically deals with Surge Protection Devices. This revised Standard gives advice and new criteria for where these devices should be installed. ## **PLG05 The Brightness of Illuminated Advertisements** PLG05 provides guidance for all people involved with exterior illuminated advertisements. The guide replaces the old TR5 and it has been updated to reflect changes in technology and the use of LEDs, the legal framework and lighting practice. In particular, the document now discusses the application of media screens and facades. ILP Annual Report and Financial Statement 2022 10 ## **Representing the Lighting Community** The Institution has also been represented by either our Technical Manager or appropriately experienced and qualified members on the following bodies: - Lighting Liaison Group - UK Lighting and Technology Board - ADEPT (ILP acts as secretariat) - BSI - CiE - NHSS 6 & 8 ILP Annual Report and Financial Statement 2022 11 ## **Financial Report 2022** This report is presented in a summarised form to make the Institution's financial affairs more readily understood. For those who wish to have sight of the full financial statements, these are available upon request at the Annual General Meeting or from the Institution's Rugby office. The trustees, who are also directors of the ILP for the purposes of the Companies Act 2006, have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The accounts have been audited by Magma Audit LLP, Chartered Accountants, and approved and signed by the Institution's Executive Board. As can be seen on the Statement of Financial Activities, turnover in 2022 is £786,460 being an increase of 42%. The net movement in funds which includes gains and losses on investments is £3,540. The total funds on the Balance Sheet at 31 December 2022 is £1,448,994 compared with £1,452,534 at 31 December 2021. After the easing of restrictions following the Covid-19 pandemic, the first in person event took place in September 2021. In 2022, ILP continued to deliver both online CPD webinars and training courses and in person events and training. Two budgets were set in 2022 to reflect different conditions and the accounts were closely monitored against these budgets. A full set of ILP accounts were prepared each quarter and presented to Executive Board by the treasurers for discussion and approval. A year-end forecast was calculated and monthly valuations on investments were requested from 121-Advice Ltd (ILP’s investment managers). ## **Investment policy and objectives** The day-to-day management of the charity's investments is carried out by the investments managers under instruction from the trustees. The managers are responsible for selecting appropriate investments to provide both income and capital ILP Annual Report and Financial Statement 2022 12 growth. There were no changes in the investment policies of the fund which continue to be the pursuit of real growth through a wide range of investments coupled with a low risk, high return on certain cash investment and Government stocks. ## **Statement from 121-Advice Ltd (ILP’s Investment Managers)** ## Economic backdrop “2022 was a very challenging year with most asset classes falling throughout the period. Market volatility also increased due to fears over global economic slowdown, inflation and interest rate rises, ongoing covid limitations in some major markets such as China and the ongoing invasion of Ukraine. Economic data throughout the year pointed towards slowing activity in the two economic powerhouses of USA and China and the invasion of Ukraine put added pressure on energy and food prices. This was witnessed in most major economies with the increasing costs of production and distribution leading to higher consumer prices. A number of interest rate rises in developed markets spooked investors and we saw falls in the major indices through the year, apart from the FTSE100 in the UK, which closed up 0.9% due to exposure to energy and mining stocks. Many of the larger indices saw double-digit falls throughout the year. The worst performing index was the Nasdaq (the US tech index, with constituent companies including Apple, Amazon, Tesla, Microsoft, Meta (Facebook)) falling by 33.1% by year end (source: NASDAQ.com). Fixed interest markets also fell in 2022 due to increasing inflationary concerns and corresponding increases in interest rates. Kwasi Kwarteng’s “disastrous” mini-Budget in the autumn saw the UK set aside £65 billion to support UK bond markets. Fixed interest markets are starting to recover, but this will take time. ILP Annual Report and Financial Statement 2022 13 There was a small upturn in stock markets towards year end and the outlook looks more positive with China re-opening, the concerns over recession, inflation and interest rate rises in the USA improving towards the end of 2022, and other noticeable positives such as reduction in shipping delays/port access affecting global goods movements. Whilst the news and economic data was for the most part negative throughout the year, increasing consumer resilience in many major economies, many of whom have built up strong cash reserves throughout the covid period through working from home/reduced spending on consumer discretionaries (holidays, entertainments, etc.) helped to underpin economic activity. ## Investment Portfolio The ILP’s diversified portfolio closed the year down 11.8% which reflects the large falls in major world stock and fixed interest markets. The portfolio benefitted from its allocation to the UK stock market in the order of 26% of overall holdings. The FTSE100 returned +0.9% during 2022 which helped to limit the falls in other sectors and asset classes. The investment risk of the portfolio is reduced by diversification across global equity markets and other asset classes, such as Gilts, fixed interest instruments and some commercial property. The move to invest some of the portfolio into funds specialising in technology, infrastructure and other diversifying asset classes has provided excellent returns since February 2016, with notable performances from Allianz Technology Trust (173% total gain), Scottish Mortgage Investment Trust (158% total gain) and First Sentier Global Listed Infrastructure (101% total gain) and Polar Capital Global Healthcare (101% total gain). Monies continue to be invested monthly to take advantage of lower unit prices and this should serve the ILP portfolio well going forwards. ILP Annual Report and Financial Statement 2022 14 The portfolio is maintained with a view to future growth and continues to be monitored on an ongoing basis.” _Simon Knott BA (Hons) CertPFS Managing Director 121-Advice Limited_ The process for budget setting of events, training courses and exhibitions continues to be reviewed and the processes put in place ensure that these are accurately set, monitored, and reviewed after the event has taken place. The ILP continues a rolling programme of market-testing for the provision of goods and services. A full set of ILP accounts is prepared each quarter and these are compared to the budget. The accounts are discussed and approved by the Executive Board. The ILP’s Executive Board remains committed to providing value for money services and benefits to the members and account should be taken of the wide range of activities and initiatives carried out by the President, Vice Presidents, the Chief Executive, and staff, and by members themselves. All these people are to be congratulated on the excellent work which has been done during the year, and it must not be forgotten that a lot of this is carried out by members in their own time, unpaid and with the generous support of their companies for which we are very grateful. As Honorary Treasurers, our thanks are due to the Executive Board, the various Committees, the President, Vice Presidents, the Chief Executive, staff at Rugby and to you, the members, for your continuing support of the Institution. ## **James Duffin and John Sutcliffe - Honorary Treasurers** ILP Annual Report and Financial Statement 2022 15 ## **Statement by the Institution’s Trustees** The financial information presented on pages 22 and 23 is only a summary of information shown in the Institution’s statutory financial statements. The Institution’s financial statements for the year ended 31 December 2022 have been audited. The auditor issued an unqualified opinion on the annual accounts and reported that the information given in the Report of the Executive Board Members was consistent with the financial statements. A copy of the statutory audit report is included on pages 16 to 23. The full financial statements have been filed at Companies House. ## **The Trustees** ILP Annual Report and Financial Statement 2022 16 ## **Independent Auditors Statement** We have examined the summarised Financial Statements of the Institution of Lighting Professionals for the year ended 31 December 2022, set out on pages 22 and 23, and can confirm that the summarised Financial Statements are correctly extracted from the Statutory Financial Statements as filed at Companies House and the Charities Commission. We have attached below an extract of the Statutory Audit Report from the Financial Statements for the year ended 31 December 2022 as filed at Companies House. ## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF** ## **THE INSTITUTION OF LIGHTING PROFESSIONALS** ## **Opinion** We have audited the financial statements of The Institution of Lighting Professionals (the 'charitable company') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ILP Annual Report and Financial Statement 2022 17 - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. ILP Annual Report and Financial Statement 2022 18 Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Report of the Trustees has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: ILP Annual Report and Financial Statement 2022 19 - adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Our responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. ILP Annual Report and Financial Statement 2022 20 Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and charitable sector, we identified the principal risks of non-compliance with laws and regulations, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed included: - discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - challenging assumptions made by management in their significant accounting estimates, in particular in relation to the values of the freehold property, investment property and investment portfolio and the judgements formed; - identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, journal entries crediting cash and journal entries with specific defined descriptions. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of noncompliance with laws and regulations that are not closely related ILP Annual Report and Financial Statement 2022 21 to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. ## **Use of our report** This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. Victoria Craig (Senior Statutory Auditor) for and on behalf of Magma Audit LLP Chartered Accountants Statutory Auditor Magma House, 16 Davy Court Castle Mound Way Rugby, CV23 0UZ Date 23 May 2023 ILP Annual Report and Financial Statement 2022 22 The Institution of Lighting Professionals Statement of Financial Activities for the year ended 31 December 2022 |INCOME AND ENDOWMENTS FROM
Charitable activities
Other trading activities
Investment income
Total
EXPENDITURE ON
Raising funds
Charitable activities
Other
Total
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD|2022
2021
Unrestricted
Total
fund
funds
£
£
758,060
512,897
21,222
17,586
7,178
22,139
786,460
552,622
18,941
12,737
646,544
572,998
50,226
54,833
715,711
640,568
(74,289)
75,869
(3,540)
(12,077)
1,452,534
1,464,611
1,448,994
1,452,534| |---|---| ILP Annual Report and Financial Statement 2022 23 |The Institution of Lighting Professionals
Balance Sheet
At 31 December 2022
FIXED ASSETS
Tangible assets
Investments
Investments
Investment property
CURRENT ASSETS
Stocks
Debtors
Cash at bank
CREDITORS
Amounts falling due within one year
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
Unrestricted funds
TOTAL FUNDS|2022
2021
Total
Total
funds
funds
£
£
357,898
378,915
762,945
865,480
260,000
215,000
1,380,843
1,459,395
3,196
3,311
29,482
53,090
165,119
87,913
197,797
144,314
(129,646)
(151,175)
68,151
(6,861)
1,448,994
1,452,534
1,448,994
1,452,534
1,448,994
1,452,534
1,448,994
1,452,534| |---|---| ILP Annual Report and Financial Statement 2022 **Institution of Lighting Professionals** Registered office: Regent House, Regent Place, Rugby, CV21 2PN 01788 576492 www.theilp.org.uk Registered in England No. 227499 Registered Charity No. 268547 **REGISTERED COMPANY NUMBER: 00227499 (England and Wales) REGISTERED CHARITY NUMBER: 268547** **REPORT OF THE TRUSTEES AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022** ## **FOR** **THE INSTITUTION OF LIGHTING PROFESSIONALS** Magma Audit LLP Chartered Accountants Statutory Auditor Magma House, 16 Davy Court Castle Mound Way Rugby CV23 0UZ **THE INSTITUTION OF LIGHTING PROFESSIONALS** **CONTENTS OF THE FINANCIAL STATEMENTS for the year ended 31 December 2022** ||**Page**| |---|---| |**Report of the Trustees**|1 to 6| |**Report of the Independent Auditors**|7 to 9| |**Statement of Financial Activities**|10| |**Balance Sheet**|11| |**Cash Flow Statement**|12| |**Notes to the Cash Flow Statement**|13| |**Notes to the Financial Statements**|14 to 22| **THE INSTITUTION OF LIGHTING PROFESSIONALS (REGISTERED NUMBER: 00227499)** **REPORT OF THE TRUSTEES for the year ended 31 December 2022** ## **Our mission** The institution's mission is to support and develop lighting professionals and their global contribution for the benefit of society and the environment. ## **Our vision** Our vision is for a world illuminated by sustainable lighting solutions that help us to live, work and play without negatively impacting on the environment around us. ## **Our values** These are the values that will guide our actions and set the culture for the organisation as it moves into its second century. Professionalism Ethical Honesty Openness Accountability Innovative ## **Our objectives** The Institution was formed to promote, encourage and improve the science and art of lighting for the benefit of the public and for this purpose to facilitate the exchange of information and ideas on the subject among members of the Institution and otherwise and in furtherance thereof. ## **Structure, governance and management** The Institution of Lighting Professionals has previously been known as: The Institution of Lighting Engineers The Institution of Public Lighting Engineers The Association of Public Lighting Engineers Limited The organisation was incorporated on January 21st, 1928. It is registered as a charity 268547 with the Charity Commission and company 227499 with Companies House in England. The Institution's present governing document is its Articles of Association 2010, as amended by Special Resolution on September 23rd, 2015. This document is available at www.theilp.org.uk and printed copies on are available on request. The Trustees of the Charity are also Directors of the Company. They make up the ILP Executive Board: the governing body of the Institution. This team is responsible for the regulatory and financial functions with the Chief Executive Officer holding the position of Company Secretary. During the year, the Trustees of the Institution had due regard to the Charity Commission's public benefit guidance when exercising their powers and duties. The Executive Board considers that the Institution's objectives and activities are for the public benefit. This consideration underpins the projects and decisions made by the organisation. At the start of 2022, the members of the Executive Board were: |President|Fiona Horgan| |---|---| |Senior Vice President|Rebecca Hatch| |Junior Vice President|Perry Hazell| |Immediate Past President|Anthony Smith| |Honorary Treasurer|James Duffin| |Honorary Treasurer|John Sutcliffe| |Co-opted Board member|Colin Fish| |Chief Executive Officer (non-voting)|Justin Blades| At the instigation of the Chief Executive, a request for expression of interest in serving on the Executive Board is sent to the two serving Honorary Treasurers and every Vice President serving at the commencement of each calendar year. Expressions of interest are considered at a joint meeting of the Executive Board and the previous five Past Presidents, as defined in the Articles. Page 1 **THE INSTITUTION OF LIGHTING PROFESSIONALS (REGISTERED NUMBER: 00227499)** ## **REPORT OF THE TRUSTEES** **for the year ended 31 December 2022** We held our Annual General Meeting on June 21st, 2022. The Executive Board confirmed at the meeting comprised: |President|Fiona Horgan| |---|---| |Senior Vice President|Rebecca Hatch| |Immediate Past President|Anthony Smith| |Junior Vice President|Perry Hazell| |Honorary Treasurer|John Sutcliffe| |Honorary Treasurer|James Duffin| |Chief Executive Officer (non-voting|Justin Blades| The posts of Junior Vice President, Senior Vice President and Honorary Treasurer and Assistant Honorary Treasurer are subject to annual appointment in line with the requirements of the Institution's Articles of Association. ## **Volunteers** The ILP Council comprising Regional Representatives, Vice-Presidents, YLP and the Executive Board, meet regularly to discuss and co-ordinate ILP activities and initiatives. Young Lighting Professionals (YLP) is a section of the ILP focussing on how best to serve members aged 35 or under, or in the first few years of their lighting career, supported by a volunteer YLP committee. Vice Presidents take responsibility for key areas within the Institution, supported by committees, working groups and other volunteers. At the start of 2022, the following Vice Presidents were in post: |Membership Development|Glen Warner| |---|---| |Architectural|Graham Festenstein| |Local Authority|Michala Medcalf| |Technical|Haydn Yeo| |Education|Kimberly Bartlett| |Government & Policy|Alistair Scott| |Contracting|Steve Biggs| |Products|Scott Pengelly| |Engineering Council|Guy Harding| ## **Engineering Council - Licence Renewal** Following an audit, the Institution's licence to award the registrations Engineering Technician, Incorporated Engineer and Chartered Engineer to individuals working in the lighting profession was renewed until July 2026. These registrations form the foundation of the Institution's definition and assessment of competence in lighting and a fundamental part of the ILP's delivery of its societal benefit to ensure that lighting professionals are competent to discharge their professional responsibilities to provide safe, fit-for-purpose and sustainable lighting solutions. ## **Online networking - Hi Lights** ILP's Hi Lights, an online session for everyone in lighting, continues to help connect our community. The drop-in sessions offer networking opportunities and provide access to speedy advice from lighting peers, peer-to-peer support with projects and specifications and the chance to virtually connect with a group of lighting colleagues. Now established as a monthly event, Hi Lights has connected hundreds of professionals from all over the globe, from India to Ireland, from student to Fellows, from manufacturers to designers. ## **LDC Continuous Professional Development (CPD) in-person events and webinars** Working alongside our staff team at Rugby, LDC committee members delivered several CPD in-person events and webinars throughout the year. Topics included: - Supporting the roll-out of Electric Vehicle charging infrastructure - a DNOs perspective - Local Authority Lighting: Energy Crisis - Dark Skies - Ecology and technology - TM66 - Beyond Illumination Page 2 **THE INSTITUTION OF LIGHTING PROFESSIONALS (REGISTERED NUMBER: 00227499)** **REPORT OF THE TRUSTEES for the year ended 31 December 2022** ## **The Professional Lighting Summit** Over 300 people came together in Bristol in June to hear from experts, discuss and debate current lighting technical issues and best practice and see the latest innovations from manufacturers with the welcome return of the Professional Lighting Summit following it's suspension during the Covid-19 pandemic. ## **The Lighting Journal** The Lighting Journal is distributed to lighting professionals including lighting designers, consultants, and engineers. The Lighting Journal delivers information on all aspects of the lighting profession including technical coverage and development, new products and services, and professional news. ILP members receive every issue of the Lighting Journal by post or digitally and can also access back issues in the library at Regent House. ## **The Lighting Column Technical Forum (LCTF)** The Forum is an independent section of the ILP. The group was formed to provide a source of knowledge, expertise, and information on all aspects of lighting column specification, design, manufacture, supply, storage and installation together with many of the associated products, materials and treatments. Our **website** continues to provide advice and information to everyone through our free-to-read content and content restricted to members-only. Our **online member portal** allows members to record CPD, access ILP documents, change personal details, pay subscription fees, and check membership grades and numbers. ## **CPD Training and Education** ILP continues to deliver quality technical CPD training in lighting and we continued to our programme of face-to-face residential courses in 2022: - Our well-respected Exterior Lighting Diploma (ELD) Modules A & B were delivered in spring and autumn 2022 - An onsite ATOMS courses was delivered in March 2022 ## **ILP Online Training Portal** Our online training portal continues to provide online access to our courses and education in a format that makes it easy for members to learn and address their CPD needs at their own pace when and where they like. The platform offers online versions of ILP's most popular one-day courses: Asset Management Toolkit: Minor Structures (ATOMS) Fundamentals and the Fundamental Lighting course. ## **Technical Knowledge and Assistance** In September 2022 Guy Harding was appointed as the new Technical Manager taking over from Peter Harrison following his retirement and many years of service to the Institution. The following documents were updated and published: ## **GN08-18 Bats and Artificial Lighting in the UK** This guidance note is intended to raise awareness of the impacts of artificial lighting on bats but also the potential solutions to avoid and reduce this harm. This new publication was published in association with the Bats Conservation Trust. ## **GN13-22 Surge Protection for Exterior Lighting Installations** BS7671 2018 'Requirements for Electrical Installations', known as the 'Wiring Regulations', specifically deals with Surge Protection Devices. This revised Standard gives advice and new criteria for where these devices should be installed. ## **PLG05 The Brightness of Illuminated Advertisements** PLG05 provides guidance for all people involved with exterior illuminated advertisements. The guide replaces the old TR5 and it has been updated to reflect changes in technology and the use of LEDs, the legal framework and lighting practice. In particular, the document now discusses the application of media screens and facades. Page 3 **THE INSTITUTION OF LIGHTING PROFESSIONALS (REGISTERED NUMBER: 00227499)** **REPORT OF THE TRUSTEES for the year ended 31 December 2022** ## **Representing the Lighting Community** The Institution has also been represented by either our Technical Manager or appropriately experienced and qualified members on the following bodies: - Lighting Liaison Group - UK Lighting and Technology Board - ADEPT (ILP acts as secretariat) - BSI - CiE - NHSS 6 & 8 ## **Financial Report** This report is presented in a summarised form to make the Institution's financial affairs more readily understood. For those who wish to have sight of the full financial statements, these are available upon request at the Annual General Meeting or from the Institution's Rugby office. The trustees, who are also directors of the ILP for the purposes of the Companies Act 2006, have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The accounts have been audited by Magma Audit LLP, Chartered Accountants, and approved and signed by the Institution's Executive Board. As can be seen on the Statement of Financial Activities, turnover in 2022 is £786,460 being an increase of 42%. The net movement in funds which includes losses on investments is £3,540. The total funds on the Balance Sheet at 31 December 2022 is £1,448,994 compared with £1,452,534 at 31 December 2021. ## **Investment policy and objectives** The day-to-day management of the charity's investments is carried out by the investments managers under instruction from the trustees. The managers are responsible for selecting appropriate investments to provide both income and capital growth. There were no changes in the investment policies of the fund which continue to be the pursuit of real growth through a wide range of investments coupled with a low risk, high return on certain cash investment and Government stocks. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT Governing document** The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. ## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number** 00227499 (England and Wales) ## **Registered Charity number** 268547 ## **Registered office** Regent House Regent Place Rugby Warwickshire CV21 2PN ## **Trustees** A Smith Immediate past president F Horgan President J Duffin Honorary Treasurer J Sutcliffe Honorary Treasurer R S L Hatch Senior Vice President The Executive Board members are also the directors of the charitable company for the purposes of company law and its trustees for the purposes of charity law. Page 4 **THE INSTITUTION OF LIGHTING PROFESSIONALS (REGISTERED NUMBER: 00227499)** ## **REPORT OF THE TRUSTEES** **for the year ended 31 December 2022** ## **REFERENCE AND ADMINISTRATIVE DETAILS Company Secretary** J S Blades **Auditors** Magma Audit LLP Chartered Accountants Statutory Auditor Magma House, 16 Davy Court Castle Mound Way Rugby CV23 0UZ ## **Solicitors** Toller, Hales & Collcut 2 Castilian Street Northampton ## **Investment Managers** 121-Advice Limited Exchange House 12 - 14 The Crescent Taunton Somerset TA1 4EB **Bankers** HSBC Bank plc Coventry ## **STATEMENT OF TRUSTEES' RESPONSIBILITIES** The trustees (who are also the directors of The Institution of Lighting Professionals for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to - select suitable accounting policies and then apply them consistently; - observe the methods and principles in the Charity SORP; - make judgements and estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business. The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the trustees are aware: - there is no relevant audit information of which the charitable company's auditors are unaware; and - the trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. Page 5 **THE INSTITUTION OF LIGHTING PROFESSIONALS (REGISTERED NUMBER: 00227499)** **REPORT OF THE TRUSTEES for the year ended 31 December 2022** ## **AUDITORS** The auditors, Magma Audit LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. Approved by order of the board of trustees on 3 May 2023 and signed on its behalf by: ........................................................................ F Horgan - Trustee Page 6 ## **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE INSTITUTION OF LIGHTING PROFESSIONALS** ## **Opinion** We have audited the financial statements of The Institution of Lighting Professionals (the 'charitable company') for the year ended 31 December 2022 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006. ## **Basis for opinion** We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. ## **Opinions on other matters prescribed by the Companies Act 2006** In our opinion, based on the work undertaken in the course of the audit: - the information given in the Report of the Trustees for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Report of the Trustees has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Trustees. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit; or - the trustees were not entitled to take advantage of the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. Page 7 **REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE INSTITUTION OF LIGHTING PROFESSIONALS** ## **Responsibilities of trustees** As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. ## **Our responsibilities for the audit of the financial statements** Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company and charitable sector, we identified the principal risks of non-compliance with laws and regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries and management bias in accounting estimates. Audit procedures performed included: - discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud; - challenging assumptions made by management in their significant accounting estimates, in particular in relation to the values of the freehold property, investment property and investment portfolio and the judgements formed; - identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, journal entries crediting cash and journal entries with specific defined descriptions. There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Page 8 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE INSTITUTION OF UGHTING PROFESSIONAL5 Use of our report This rèport is made solely to the c*arTtablg companls members, a5 a bo(ty, in acCo￿n￿ with Chapter 3 of Part 1fj of the Companies Act 2006. Our audit work has beèn undartaken so that we rnight state to the charitable crynpanls members those matters we arts reqUI￿d to state to them in an auditors, report and for no othgr purpose. To the lullest extent permitted by law. we do not accept or assume rgspon$ibility to anyone other than the tharitabte company and the charstable company's members as a body, for our audrt work, for thw repor( or for the opinions we have forrned. Victoria Craig IS*nior Statutory Auditor} for and on behalf of Magrna Audit LLP Chartered Accountants Slatulgry Auditor Magma Hou$e, 16 Davy Court Casue Mound Way Rugby CV23 OUZ Date: 23 May 2023 Pa98 9 ## **THE INSTITUTION OF LIGHTING PROFESSIONALS** ## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the year ended 31 December 2022** |Notes
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
5
Charitable activities
Other trading activities
3
Investment income
4
**Total**
**EXPENDITURE ON**
Raising funds
6
**Charitable activities**
7
Charitable activities
Other
**Total**
Net (losses)/gains on investments
**NET EXPENDITURE**
**RECONCILIATION OF FUNDS**
Total funds brought forward
**TOTAL FUNDS CARRIED FORWARD**|**2022**
**Unrestricted**
**fund**
**£**
**758,060**
**21,222**
**7,178**
**786,460**
**18,941**
**646,544**
**50,226**
**715,711**
**(74,289)**
**(3,540)**
**1,452,534**
**1,448,994**|2021
Total
funds
£
512,897
17,586
22,139
552,622
12,737
572,998
54,833
640,568
75,869
(12,077)
1,464,611
1,452,534| |---|---|---| The notes form part of these financial statements Page 10 **LIGHTING PROFESSIONALS (REGISTERED NUMBER: 00227499)** ## **THE INSTITUTION OF** ## **BALANCE SHEET 31 December 2022** |||**2022**|2021| |---|---|---|---| |||**Total**|Total| |||**funds**|funds| ||Notes|**£**|£| |**FIXED ASSETS**|||| |Tangible assets|13|**357,898**|378,915| |**Investments**|||| |Investments|14|**762,945**|865,480| |Investment property|15|**260,000**|215,000| |||**1,380,843**|1,459,395| |**CURRENT ASSETS**|||| |Stocks|16|**3,196**|3,311| |Debtors|17|**29,482**|53,090| |Cash at bank||**165,119**|87,913| |||**197,797**|144,314| |**CREDITORS**|||| |Amounts falling due within one year|18|**(129,646)**|(151,175)| |**NET CURRENT ASSETS / (LIABILITIES)**||**68,151**|(6,861)| |**TOTAL ASSETS LESS CURRENT LIABILITIES**||**1,448,994**|1,452,534| |**NET ASSETS**||**1,448,994**|1,452,534| |**FUNDS**|19||| |Unrestricted funds||**1,448,994**|1,452,534| |**TOTAL FUNDS**||**1,448,994**|1,452,534| These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on 3 May 2023 and were signed on its behalf by: ............................................. F Horgan - Trustee ............................................. R S L Hatch - Trustee The notes form part of these financial statements Page 11 ## **THE INSTITUTION OF LIGHTING PROFESSIONALS** **CASH FLOW STATEMENT for the year ended 31 December 2022** |Notes
**Cash flows from operating activities**
Cash generated from operations
1
Net cash provided by/(used in) operating activities
**Cash flows from investing activities**
Purchase of tangible fixed assets
Purchase of fixed asset investments
Sale of fixed asset investments
Interest received
Net cash (used in)/provided by investing activities
**Change in cash and cash equivalents in**
**the reporting period**
**Cash and cash equivalents at the**
**beginning of the reporting period**
**Cash and cash equivalents at the end of**
**the reporting period**|**2022**
**£**
**79,922**
**79,922**
**(6,245)**
**(6,985)**
**10,231**
**283**
**(2,716)**
**77,206**
**87,913**
**165,119**|2021
£
(101,001)
(101,001)
(5,051)
(7,130)
111,358
9
99,186
(1,815)
89,728
87,913| |---|---|---| The notes form part of these financial statements Page 12 ## **THE INSTITUTION OF LIGHTING PROFESSIONALS** **NOTES TO THE CASH FLOW STATEMENT for the year ended 31 December 2022** |**1.**|**RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES**|**RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES**|**RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES**|**RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES**|**RECONCILIATION OF NET EXPENDITURE TO NET CASH FLOW FROM OPERATING ACTIVITIES**|| |---|---|---|---|---|---|---| |||||**2022**||2021| |||||**£**||£| ||**Net expenditure for the reporting period (as per the Statement of**|||||| ||**Financial Activities)**|||**(3,540)**||(12,077)| ||**Adjustments for:**|||||| ||Depreciation charges|||**7,262**||8,756| ||Losses on investments|||**-**|(75,869)|| ||Interest received|||**(283)**||(9)| ||Impairment of freehold property|||**20,000**||-| ||Gain on investment property|||**(45,000)**||-| ||Loss/gain) on investments|||**99,289**||-| ||Decrease in stocks|||**115**||640| ||Decrease/(increase) in debtors|||**23,608**|(40,159)|| ||(Decrease)/increase in creditors|||**(21,529)**||17,717| ||**Net cash provided by/(used in) operations**|||**79,922**|(101,001)|| |**2.**|**ANALYSIS OF CHANGES IN NET FUNDS**|||||| |||At|1/1/22|Cash flow|**At 31/12/22**|| ||||£|£||**£**| ||**Net cash**|||||| ||Cash at bank||**87,913**|**77,206**|**165,119**|| ||||**87,913**|**77,206**|**165,119**|| ||**Total**||**87,913**|**77,206**|**165,119**|| The notes form part of these financial statements Page 13 **THE INSTITUTION OF LIGHTING PROFESSIONALS** **NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2022** ## **1. STATUTORY INFORMATION** The Institution of Lighting Professionals is a charity, registered in England and Wales. Its registered office address is Regent House, Regent Place, Rugby, Warwickshire, CV21 2PN and the registered number is 00227499. ## **2. ACCOUNTING POLICIES** ## **Summary of significant accounting policies** The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated. ## **Basis of preparing the financial statements** The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Charities Act 2011 and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets being investments and freehold property. ## **Critical accounting judgements and key sources of estimation uncertainty** The charity makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. ## (i) Valuation of freehold and investment property The properties held by the charity are sensitive to changes in fair value. A valuation is obtained from a qualified valuer for each property with sufficient regularity to ensure that the valuation is not materially different from the fair value, with interim annual valuations carried out by the trustees. ## (ii) Carrying value of listed investments The listed investments held by the charity are sensitive to changes in fair value. A valuation is obtained from a qualified valuer for each investment with sufficient regularity to ensure that the valuation is not materially different from the fair value. ## (iii) Going concern The trustees assess the financial position of the charity throughout the period and at the year end. The trustees consider whether the charity has sufficient resources to meet its liabilities as they fall due for at least twelve months to ensure the basis of preparation is appropriate. ## **Income** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. ## **Expenditure** All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. Support costs are those costs incurred directly in support of expenditure on the objects of the charitable company. Irrecoverable VAT is shown in the category of resources expended for which it was incurred. Raising funds consists of regions' events costs. Charitable activities include direct expenditure associated with providing the charitable services and support costs relating to those activities. Other resources expended consists of governance costs which include those incurred in the governance of the charitable company and are primarily associated with constitutional and statutory requirements. ## **Tangible assets and depreciation** Tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:- Page 14 continued... **THE INSTITUTION OF LIGHTING PROFESSIONALS** **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022** ## **2. ACCOUNTING POLICIES - continued** **Tangible assets and depreciation** |Computer Equipment|33%|Straight line| |---|---|---| |Office Furniture|20%|Straight line| |Officers Jewels|25%|Straight line| Tangible fixed assets which represent freehold land and property are subsequently carried at revalued amount, being the fair value at the date of revaluation. Revaluations are charged to other recognised gains/losses and are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of each reporting period. Tangible fixed assets which represent freehold property is stated at valuation. No provision for depreciation is made on freehold land and buildings as the useful economic life of these assets are of such a length and the residual values are such that they are not materially different from the carrying value and any depreciation would not be material. Residual values are reviewed annually and any permanent diminution in value is provided in the statement of financial activities. ## **Investment Properties** Investment properties are shown at fair value. Any changes in fair value are recognised in the statement of financial activities transferred to the Investment Property Fair Value Reserve in the year. ## **Stocks** Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Stocks are recognised as an expense in the period in which the related revenue is recognised. At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the statement of financial activities. Where a reversal of the impairment is recognised the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the statement of financial activities. ## **Funds** Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. ## **Listed fixed asset investments** Investments are included in the financial statements at fair value. The statement of financial activities includes net gains and losses arising on revaluation and disposals throughout the year. ## **Operating lease agreements** Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. ## **Pension costs and other post-retirement benefits** The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. ## **Financial instruments** The charitable company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. ## (i) Financial assets Basic financial assets, including fixed assets held at valuation, trade and other debtors, cash and bank balances and investments are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. Page 15 continued... **THE INSTITUTION OF LIGHTING PROFESSIONALS** **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022** ## **2. ACCOUNTING POLICIES - continued** ## **Financial instruments** ## (ii) Financial liabilities Basic financial liabilities, including trade and other creditors and bank loans are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## **3. OTHER TRADING ACTIVITIES** |Job vacancy service
Lighting Delivery Centres' events and meetings
Miscellaneous income
**INVESTMENT INCOME**
Rents receivable
Investments income
Deposit account interest receivable|**2022**
**£**
**7,700**
**8,101**
**5,421**
**21,222**
**2022**
**£**
**-**
**6,895**
**283**
**7,178**|2021
£
4,400
806
12,380| |---|---|---| |||17,586| |||2021
£
15,000
7,130
9| |||22,139| ## **4. INVESTMENT INCOME** ## **5.** ## **INCOME FROM CHARITABLE ACTIVITIES** |Membership subscriptions
Courses
Lighting journal
Summit
Professional lighting guides|**2022**
Charitable
activities
**£**
**322,698**
**208,327**
**128,695**
**94,652**
**3,688**
**758,060**|2021
Total
activities
£
**300,680**
**73,353**
**134,478**
**-**
**4,386**| |---|---|---| |||**512,897**| Page 16 continued... ## **THE INSTITUTION OF LIGHTING PROFESSIONALS** **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022** ## **6. RAISING FUNDS** |**Raising donations and legacies**
Lighting Delivery Centres' events
**Investment management costs**
Support costs
Aggregate amounts
**7.**
**CHARITABLE ACTIVITIES COSTS**
All of the funds are unrestricted
**Provision of charitable services:**
Staff costs
Courses
Summit
Lighting journal
Technical committee
Professional lighting guide production costs
Support services
Analysis of support services is as follows:-
Promotion and publications
Membership and education
Lighting delivery centres and general meetings
Bank and finance charges
Printing, postage and stationery
IT consultancy
Premises costs
Depreciation
Office costs
Other costs|**2022**
**£**
**8,800**
**2022**
**£**
**10,141**
**18,941**
**Total Funds**
**2022**
**£**
**239,842**
**92,615**
**34,110**
**147,383**
**78**
**1,688**
**130,828**
**646,544**
**Total Funds**
**2022**
**£**
**9,570**
**1,613**
**26,060**
**5,616**
**2,479**
**28,846**
**40,392**
**7,262**
**909**
**8,081**
**130,828**|2021
£
1,379
2021
£
11,358
12,737
Total Funds
2021
£
265,533
32,873
533
152,048
-
6,153
115,858
572,998
Total Funds
2021
£
8,585
423
17,133
3,724
2,124
25,898
37,786
8,756
3,847
7,582
115,858| |---|---|---| Page 17 continued... ## **THE INSTITUTION OF LIGHTING PROFESSIONALS** **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022** ## **8. SUPPORT COSTS** |**Analysis of other resources expended:**
Staff costs
Legal and professional costs
**NET EXPENDITURE**
Net resources are stated after charging:
Staff pension contributions
Depreciation
Auditors remuneration
Auditors remuneration - non audit services
Operating leases|**Total Funds**
Total Funds
**2022**
2021
**£**
£
**41,334**
46,858
**7,900**
7,975
**49,234**
54,833
**2022**
2021
**£**
£
**12,591**
10,595
**7,262**
8,756
**7,300**
6,700
**330**
300
**360**
360| |---|---| ||| ||| ## **9. NET EXPENDITURE** ## **10. TRUSTEES' REMUNERATION AND BENEFITS** The members of the council were not remunerated. ## **Trustees' expenses** Travel and subsistence expenses amounting to £6,477 were reimbursed to 5 members (2021: £4,043 reimbursed to 4 members). ## **11. STAFF COSTS** |**STAFF COSTS**||| |---|---|---| ||**2022**|2021| ||**£**|£| |Wages and salaries|**251,823**|282,062| |Social security costs|**17,754**|19,734| |Other pension costs|**12,591**|10,595| ||**282,168**|312,391| |The average monthly number of employees during the year was as follows:||| ||**2022**|2021| |Head office|**8**|9| |The number of employees whose employee benefits (excluding employer pension|costs) exceeded|£60,000 was:| ||**2022**|2021| |£70,001 - £80,000|**1**|1| The total remuneration of key management personnel were within the range of £70,001 to £80,000 during the both the current and preceding year. Page 18 continued... **THE INSTITUTION OF LIGHTING PROFESSIONALS** **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022** ## **12. LIGHTING DELIVERY CENTRES** The company operates seven 'Lighting Delivery Centres' (LDC) throughout the British Isles. These are:- Birmingham Bristol Durham Ireland London Manchester Scotland The LDC's are not separately registered under either the Companies or Charities Acts and operate under the name and control of the Institution of Lighting Professionals. The combined results as shown in the accounts of the above LDC's for the years ended 31 December 2022 and 2021 are as follows:- |**Income and expenditure**
Income
Expenditure
Deficit
Brought forward at 1 January 2021
**TANGIBLE FIXED ASSETS**
**COST**
At 1 January 2022
Additions
Disposals
Impairments
At 31 December 2022
**DEPRECIATION**
At 1 January 2022
Charge for year
Eliminated on disposal
At 31 December 2022
**NET BOOK VALUE**
At 31 December 2022
At 31 December 2021|Freehold
property
£
**370,000**
**-**
**-**
**(20,000)**
**350,000**
**-**
**-**
**-**
**-**
**350,000**
370,000|**2022**
**£**
**8,101**
**(8,800)**
**(806)**
**28,996**
**28,190**
Equipment
& Officers
Jewels
£
**63,348**
**6,245**
**(1,672)**
**-**
**67,921**
**54,433**
**7,262**
**(1,672)**
**60,023**
**7,898**
8,915||2021
£
806
(1,379)
(573)
29,569
28,996
Totals
£
**433,348**
**6,245**
**(1,672)**
**(20,000)**
**417,921**
**54,433**
**7,262**
**(1,672)**
**60,023**
**357,898**
378,915| |---|---|---|---|---| |||||| |||||| |||||| |||||| |||||| ## **13. TANGIBLE FIXED ASSETS** ## Revaluation: The land and buildings were valued at £350,000 on 26 January 2023 by an external valuer, George and Company (Surveyors) Limited, Chartered Surveyors and RICS member. This interim valuation was carried out on a fair value basis. The trustees deem this to be the market value at the year end. Historical cost of land and buildings: If the properties had not been revalued the historical cost would be £452,869. Page 19 continued... ## **THE INSTITUTION OF LIGHTING PROFESSIONALS** **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022** ## **14. FIXED ASSET INVESTMENTS** |**FIXED ASSET INVESTMENTS**|| |---|---| ||Listed| ||investments| ||£| |**MARKET VALUE**|| |At 1 January 2022|**865,480**| |Additions|**6,985**| |Disposals|**(10,231)**| |Revaluations|**(99,289)**| |At 31 December 2022|**762,945**| |**NET BOOK VALUE**|| |At 31 December 2022|**762,945**| |At 31 December 2021|865,480| |All investments relate to the unrestricted fund.|| |Cost or valuation at 31 December 2022 is represented by:|| |||**Listed**| |---|---|---| |||**investments**| |||**£**| ||Valuation in 2022|**762,945**| |**15.**|**INVESTMENT PROPERTY**|| |||**£**| ||**FAIR VALUE**|| ||At 1 January 2022|**215,000**| ||Revaluation|**45,000**| ||At 31 December 2022|**260,000**| ||**NET BOOK VALUE**|| ||At 31 December 2022|**260,000**| ||At 31 December 2021|215,000| ## Revaluation: The investment property was valued at £260,000 on 26 January 2023 by an external valuer, George and Company (Surveyors) Limited, Chartered Surveyors and RICS member. This interim valuation was carried out on a fair value basis. The trustees deem this to be the market value at the year end. The comparable historic cost is £45,966 (2021: £45,966). Fair value at 31 December 2022 is represented by: Valuation in 2022 **£ 260,000** Page 20 continued... **THE INSTITUTION OF LIGHTING PROFESSIONALS** **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022** |**16.**
**STOCKS**
Goods For Resale
**17.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
Other debtors
Prepayments and accrued income
**18.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade creditors
Social security and other taxes
VAT
Accruals and deferred income|| |---|---| ||| ## **19. MOVEMENT IN FUNDS** |Unrestricted Funds - General
Unrestricted Funds - Investment Property
Fair Value Reserve
**Comparatives for movement in funds**
Unrestricted Funds - General
Unrestricted Funds - Investment Property
Fair Value Reserve|Tangible Fixed
Assets
£
357,898
-
357,898
Tangible Fixed
Assets
£
378,915
-
378,915|Investments
£
808,911
214,034
1,022,945
Investments
£
911,446
169,034
1,080,480|Other Net
Assets
£
68,151
-
68,151
Other Net
Assets
£
(6,861)
-
(6,861)|**2022**
**Total**
**£**
**1,234,960**
**214,034**
**1,448,994**
**2021**
**Total**
**£**
**1,283,500**
**169,034**

**1,452,534**| |---|---|---|---|---| ## **Comparatives for movement in funds** Page 21 continued... **THE INSTITUTION OF LIGHTING PROFESSIONALS** **NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2022** ## **20. RELATED PARTY DISCLOSURES** During the year purchases of £15,648 (2021: £4,877) were made from a company controlled by a trustee. Page 22 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE INSTITUTION OF LIGHTING PROFESSIONALS Oplnlon We have audited the financial statements of The Institution of Lighting Professionals (the 'charitable company'l for the year ended 31 December 2022 which comprise the Statement ol Financial Activities, the Balance Sheet, the Cash Fk)w Statement and notes to the financial statements, including a summary ol significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements.. give a true and fair view ol the state of the charitable company's affairs as at 31 December 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended., have been property prepared in accordance with United Kingdorn Generally Accepted Accounting Practi￿., and have been prepared in accordance with the requirements of the Cornpanies Act 2006. Basis for opinion We conducted our 8udit in accordance with Inlemational Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditors, responsibilities for the audit of the financi81 statements section of our ieport. We ale independent of the charitable cornpany in accoidance wlh the elhiral requirements that are relevant to our audit of the financial slaternents in the UK, including the FRG'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordan￿ with these requirements. We believe that the audit evidence we have obtsined is sufficient and appropii8le lo provide 8 basis for our opinion. Con¢lu8ion8 relating to going concern In auditing the financial statements, we have concluded that the Iiuslees, use of the going ¢on¢ein basis of accounting in the preparation of the financial staternent5 is appropriate. Based on th8 work we have perfoirn8d, we have not id8ntrf18d any material uncert8intl85 relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concem for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going cOn￿M are described in the relevant sections of this report. Other InfomiatSon The trustees are responsible for the other information. The other information comprises the inlomiation included in the Annual Report, other than the financial statements and our Report of the Independent Auditors thereon. Our opinion on the finanaal statements does not cover the other information and, except to the extent otherwise explicit stated in our report, we do not express any fomi of assurance condusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and. in doing so, consider whether the other information is materially inconsislenl with the financial statements or our kno¥￿edge obtained in the audit or otherwise appears to be materially rnisslated. If we identify such material inconsistencies or apparent material misstaternents, we are required to determine whether this gives rise to a material rnisslatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstalemenl of this other information. we are required lo report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, b8sed on the work undertaken in the course of the 8udit.' the information given in the Report of the Tiuslees for the financial year for which the financial slalernents are prep8ied is consistent wth the financi81 statements.. and the Report of the Trustees has been prepared in accordance with applicable leg81 requirements. Matter8 on which we are required to report by exception In the light of the knowledge and understanding ol the charitable cornpany and its environment obtained in the course of the audit. we have not Identified material misstatements In the Report of the Trustees. We have nothing to report in iesped of the following matters where the Companies Act 2tK)6 requires us to report to you if, in our opinion-. adequate accounting records have not been kept or ieturns adequate for our audit have not been received fr(xn branches not visited by us", or the financial statements are not in agreement with the accounting records and retums., or certain disclosures of trustees, remuneration speafied by law are not made,. or we have not received all the infomation and explanations we require for our audit," or the trustees were not entitled to take advantage ol the small companies exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Trustees. Page 7 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE INSTITUTION OF LIGHTING PROFESSIONALS Responsibilitles of trustees As explained more fully in the Statement of Trustees, Responsibilities, the trustees Iwho are also the directors ol the charitable company for the purposes of company lawl are ￿spOnSible lor the preparation of the finanaal statements and for being satisfied that they give a true and lair view, and for such internal control as the trustees detemine is necessary to enable the preparation ol financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concem, disdosing, as applicable. matters related to going con￿rn and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or lo cease operations, or have no realistic alternative but to do so. Our ￿ponsIbIlitieS for the audit of the financial statements Our objectives are lo obtsin reasonable 8ssur8nce about whether the financial ststemenls as a Who￿ are free frorn material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, bul is not 8 guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when il exists. Misstalemenls can arise frorn fraud or error and 8re Considered material if. individually or in the aggregate. they ￿Uld reasonably be expe¢ted lo influence the economic decisions of users tsken on the basis of these financial slalerllents. The extent lo whith our proTrduies are ¢3pable of delecling irregularities, including fraud is detailed below.. Based on our understanding of the cornpany and charitable sector. we identified the principal risks of non-oompliance with 18Ws and regulations. and we considered the extent to which non-compliance might h8ve 8 material effect on the rinancial staternent5. Vve also considered those laws and regulation5 that have a direct Impact on the financial statements such as the Companies Act 20(￿. We evaluated managetllent's incentives and opportunities for fiaudulent manipulation of the financial statements Iincluding the risk of override of controls), and determined that the piincipal iisks were related to ptssting inappropriate journal entries and management bias in accounting estimates. Audit protsdures perfomed included". discussions with management including consideration of known or suspected InStan￿S of non-compliance with laws and regulation and fraud., challenging assumptions made by management in their significant accounting estimates, in particular in relation to the values of the freehold property, investment property and investment portfolio and the judgements formed., identifying and testing journal entries, in particular any joumal entries posted with unusual account combinations, joumal entries crediting cash and journal entries with specffic defined descriptions. There are inherent limitations in the audit procedures described above. We are less likely lo becorne aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealrnent by, for example. forgery or intentional misrepresent8tions. or through collusion. A further description of our responsibilities for the audit of the financial staternents is located on the Financial Reporting Council's website at www.frc.org.uklaudilorsresponsibililies. This description fomis part of our Report of the Auditors. A further description of our responsibilities for the audit of the finanri81 staterrents is located on the Financial Reporting Council's website al www.frc.org.uklaudilorsresponsibilitie5. This description forms part of our Report of the Independent Auditors. Page 8 REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF THE INSTITUTION OF LIGHTING PROFESSIONALS Use of our report This report Is made 501ely to the charitable company's membeis, as a body, in accordan￿ with Chapter 3 of Part 1fj of the Companies Act 2006. Our audit work has been undertaken so that we Tnight stste lo the charitable ¢omp8ny's member5 those matters we are required to state to them In an audilor5' report and for no other purpose. To the lullesl extent permitted by law. we do not accept or assume responsibility to anyon& other than the charitable company and the charitable wmpany's members as a body, lor our audit work. for th15 report, or lor the opinions we have forffled. Victoria Cr219 (Senior Statutory Audilorl for 8nd on behalf of Magrna Audit LLP Chartered Accountants Statutory Auditor Magma House, 16 Davy Court Casllts Mound Way Rugby CV23 OUZ D3te 23 May 2023 Pagè 9