Annual Report and Financial Statement 2023
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President’s Foreword
Over the last year the Institution of Lighting Professionals (ILP) has stabilised and moved forward in our mission to support and develop all lighting professionals for the benefit of society and the environment. The Manchester Professional Lighting Summit saw a real step-change, moving from post-pandemic recovery to normalising our hybrid state. The Institution and members alike have embraced the benefits of technology to support our activities but not replace those valuable in-person interactions. The digital transition allows us to be more agile and to reach more members globally, but it must continue to be balanced.
The governance changes that you approved at the last AGM have now bedded in and we thank our Chief Executive, Justin Blades, for his direction and effort in addressing those necessary actions.
We come to the end of this financial year with a more resilient Board of Trustees, aligned with Strategy 2026 putting our two core priorities front and centre – Technical and Membership, Education and Qualifications - with new board roles to provide focus and oversight on these important areas of the Institution’s work. The Chief Executive has also reviewed and adjusted the organisation over the year to better align our structure and governance with Strategy 2026, ensuring the right balance of permanent employees and outsourced roles to deliver on our objectives.
I am proud to serve as chair of a more diverse Board than we have seen in ILP history. The Board of Trustees is more gender balanced 37% and has several YLP founding committee members and past chairs serving in key roles.
We celebrate 100 years, marking our Centenary in 2024. Reflecting on the past 100 years but looking to the future to ensure that the
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Institution is resilient, remains relevant and is structured to serve members and the public for the next 100 years.
We launched Women Lighting Professionals (WLP), a national community group to provide support to all women lighting professionals and encourage more women into our industry. Whilst we have seen improvement in our gender diversity, women are still very under-represented demographic (10% of current membership are female). Initiatives like the WLP aim to address this and rebalance the Institution to better reflect the diversity of the society it serves.
Our industry and sector communities, Lighting Delivery Centres (LDC)’s, Young Lighting Professionals (YLP) and WLP have held successful events both in person and online, continuing to deliver technical CPD and networking opportunities to members across the UK and Ireland. I would like to take this opportunity to thank every volunteer on those committees, every person who has presented a paper, every member company that has exhibited or sponsored events and every member who has attended.
In my presidential address we launched a call to action to make lighting more widely known. We want lighting to be a profession of choice, we want future generations to choose lighting and we ask you as members and promotors of the industry to be bold and to be proud of what we do and the value we bring. We see this represented in a series of Lighting Journal profiles across the centenary year and we have increased our STEM (science technology engineering & maths) engagement. This will continue into my successor, Perry Hazell’s year as president and beyond, leaving a legacy for the Institution and will help to provide a flow of future talent into the industry.
Rebecca Hatch IEng MILP President
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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.
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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 January 21[st] , 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 2023, as amended by Special Resolution on May 24, 2023. 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 Board of Trustees: 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 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 2023, the members of the Board of Trustees 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 Chief Executive Officer (non-voting) Justin Blades
At the instigation of the Chief Executive, a request for expressions of interest in serving on the Board of Trustees is sent to the serving Honorary Treasurers, Vice Presidents and Chairs of Lighting Delivery
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Centres and Member Groups serving at the commencement of each calendar year.
Expressions of interest are considered at a joint meeting of the Board of Trustees and the previous five Past Presidents, as defined in the Articles.
We held our Annual General Meeting on May 24[th] , 2023. The Board of Trustees confirmed at the meeting comprised:
President Rebecca Hatch Senior President Elect Perry Hazell Immediate Past President Fiona Horgan Junior President Elect James Duffin Honorary Treasurer John Sutcliffe Honorary Treasurer Vacant Vice President – Technical Vacant Vice President – Membership, Vacant Qualifications and Registrations Chief Executive Officer (non-voting) Justin Blades
The posts of Junior President Elect, Senior President Elect are subject to annual appointment in line with the requirements of the Institution’s Articles of Association. The posts of Honorary Treasurer are appointed for a term of three years in line with the requirements of the Institution’s Articles of Association.
Following the amendment of the structure of the Board of Trustees to include the posts of an additional Honorary Treasurer, Vice President – Technical and Vice President – Membership, Qualifications and Registrations at the 2023 AGM, an additional Call for Nominations for those positions was issued and the following co-opted members were appointed to the Board of Trustees during 2023:
Honorary Treasurer Kieron Jarvis (co-opted) Vice President – Technical Emily Bolt (co-opted) Vice President – Membership, Peter Raynham (co-opted) Qualifications and Registrations
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Volunteers
The ILP Council comprising Regional Representatives, YLP and the Board of Trustees meet regularly to discuss and co-ordinate ILP activities and initiatives.
Young Lighting Professionals (YLP) is a section of the ILP focusing 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.
Membership
Year-on-year, we've witnessed a notable increase in the number of members upgrading their current memberships to levels that align with their lighting knowledge, skills, and experience. This trend has significantly contributed to enhancing the benefits members receive throughout their lighting careers.
Our Membership Boot Camp and Technical Report Writing sessions have been a resounding success, primarily delivered to our member groups nationwide, with plans to extend them to our Premier Corporate Members soon. Over the past year, we've conducted sessions in 5 LDCs and major companies. Notably, 80 ILP members have participated in the training, leading to over a quarter of them submitting upgrade applications, with more than half making initial enquiries.
LDC Continuous Professional Development (CPD) in-person events and webinars
Working alongside our staff team at Rugby, LDC committee members delivered an increased number of CPD in-person events and webinars throughout the year on topics ranging from Bat-friendly lighting and guidance from ILP’s GN08 publication to solar-powered lighting.
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The following number of events were delivered by LDC and Member Communities in 2023:
| Durham: | 7 |
|---|---|
| London: | 5 |
| Bristol: | 4 |
| Ireland: | 3 |
| Birmingham: | 2 |
| Manchester: | 2 |
| Scotland: | 2 |
| YLP: | 5 |
How to be Brilliant
We staged four How to be Brilliant events in 2023 as part of our activities supporting the Architectural Lighting Design community. Some of these events were delivered as part of the Institution’s support and attendance at Clerkenwell Design Week and [d]arc media’s Light23 event. Over 300 delegates attended the event programme overall.
Local Authority Lighting: Energy Crisis event in Daventry
This event focused on our Local Authority Lighting community took place on the 2[nd] February in the heart of the UK in Daventry, Northamptonshire and was created to provide information, support and evidence to help assist managers, street lighting engineers, public realm designers and energy managers navigate through the energy crisis with competence and professionalism.
The Professional Lighting Summit
The Professional Lighting Summit 2023 was held on June 14[th] -15[th] at the Museum Of Science And Industry in Manchester. With over 300 delegates attending, an exciting and informative set of technical papers were presented over the two-day event that brought the ILP membership community together in the North West.
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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 LCTF 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 membersonly.
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 our programme of face-to-face residential courses in 2023:
• Our well-respected Exterior Lighting Diploma (ELD) Modules A & B were delivered in spring and autumn.
• Worked with Engineers Ireland to deliver blended online training to their and our members in Ireland.
• A series of editorials were published in the Lighting Journal about ILP Training, including the ELD Modules and the online training platform to raise awareness of our training provision.
• An Asset Management Toolkit: Minor Structures (ATOMS) incompany tailored training course was delivered to Via EM at their premises in October.
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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
Guy Harding, our Technical Manager provides expert technical knowledge and guidance to members and the public supported by volunteers who sit on the Institution’s Technical Committee. The following documents were updated and published:
GN08-23 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.
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.
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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:
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Lighting Liaison Group
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UK Lighting and Technology Board
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ADEPT (ILP acts as secretariat)
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BSI
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CiE
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NHSS 6 & 8
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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 Board of Trustees.
As can be seen on the Statement of Financial Activities, turnover in 2023 is £860,018 being an increase of 9% on the previous year. The net movement in funds which includes gains on investments is £115,976. The total funds on the Balance Sheet at 31 December 2023 is £1,564,970 compared with £1,448,994 at 31 December 2022.
A budget was set for 2023 and the accounts were closely monitored against this budget. A full set of ILP accounts were prepared each quarter and presented to the Board of Trustees by the treasurers for discussion and approval. A year-end forecast was calculated in the last quarter 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 growth.
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Statement from 121-Advice Ltd (ILP’s Investment Managers)
Investment Portfolios
The ILP’s portfolio rose in value by 5.05% during 2023 which reflects the diversified, controlled risk approach being taken.
The portfolio benefits from a globally diversified portfolio of equity funds with monies allocated to both UK and Global equity funds. The portfolio also has exposure to fixed interest/bond funds as well as a healthy cash reserve.
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 (295% total gain), Scottish Mortgage Investment Trust (188% total gain) and First Sentier Global Listed Infrastructure (94% total gain) and Polar Capital Global Healthcare (99% total gain).
Monies continue to be invested monthly to reduce risk and take advantage of lower unit prices, and this should serve the ILP portfolio well going forwards.
The portfolio is maintained with a view to future growth with an appropriate level of risk and continues to be monitored on an ongoing basis.
Economic backdrop
In stark contrast to 2022, 2023 ended with most stock market indices closing the year in positive territory.
Concerns remained in respect of global economic slowdown, inflation and interest rate rises, the ongoing invasion of Ukraine, and, later in 2023, the Israel/Gaza situation and Houthi attacks on shipping in the Red Sea.
As for economic activity in the major markets, the USA maintained its level throughout the year. The US economy never entered recession in 2023 and fears of a “hard landing” never transpired.
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Whilst the UK economy entered a technical recession in the second half of the year, the level of downturn was only 0.4%. The UK has been out of favour with international investors for a while now, but as a result the valuations of many British companies offer the opportunity for future growth.
Fears over a slowdown in China saw markets there fall with the Hang Seng index (Hong Kong) falling 13.8%.
Interest rates continued to rise in the US and the UK with rates being held in both markets at 5.50% and 5.25% respectively since July (US) and August (UK). With inflation figures beginning to fall, markets have started to price in interest rate reductions starting in 2024 however, neither central bank is committed to confirming how and when these may occur. The phrase “higher for longer” has become a popular media saying.
Many major indices performed exceptionally well in 2023. The largest riser during the year was the US NASDAQ index which represents tech stocks. This increased 43.4% in 2023 against a fall of -33.1% the previous year. Tech stocks, notably the “magnificent seven” (Tesla (TSLA), Meta (META), Alphabet (GOOGL), Amazon (AMZN), Apple (AAPL), Microsoft (MSFT) and Nvidia (NVDA)) performed exceptionally well primarily as interest in Artificial Intelligence began to be recognised by investors.
The wider S&P500 rose 24.2% (-15.0% in 2022), the DAX (Germany) and CAC40 (France) rose 20.3% and 16.5% respectively against 2022 losses of -12.4% and -9.5%.
The ILP’s Board of Trustees 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.
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As Honorary Treasurers, our thanks are due to the Board of Trustees, 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.
John Sutcliffe, Honorary Treasurer and Kieron Jarvis - Honorary Treasurer (co-opted)
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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 2023 have been audited. The auditor issued an unqualified opinion on the annual accounts and reported that the information given in the Report of the Board of Trustees was consistent with the financial statements.
A copy of the statutory audit report is included on pages 16 to 21. The full financial statements have been filed at Companies House.
The Trustees
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Independent Auditors Statement
We have examined the summarised Financial Statements of the Institution of Lighting Professionals for the year ended 31 December 2023, 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 2023 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 2023 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 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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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.
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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,
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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
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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:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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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. 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
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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:
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discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
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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;
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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 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 Independent 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
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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
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| The Institution of Lighting Professionals Statement of Financial Activities for the year ended 31 December 2023 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 |
2023 Unrestricted fund £ 810,710 36,075 13,233 860,018 34,717 702,928 51,839 789,484 45,442 115,976 1,448,994 1,564,970 |
2022 Total funds £ 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 |
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| The Institution of Lighting Professionals Balance Sheet At 31 December 2023 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 |
2023 2022 Total Total funds funds £ £ 357,380 357,898 801,460 762,945 267,000 260,000 1,425,840 1,380,843 3,475 3,196 88,767 29,482 192,487 165,119 284,729 197,797 (145,599) (129,646) 139,130 68,151 1,564,970 1,448,994 1,564,970 1,448,994 1,564,970 1,448,994 1,564,970 1,448,994 |
|---|---|
ILP Annual Report and Financial Statement 2023
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 2023
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 2023
| Page | |
|---|---|
| Report of the Trustees | 1 to 6 |
| Report of the Independent Auditors | 7 to 8 |
| Statement of Financial Activities | 9 |
| Balance Sheet | 10 |
| Cash Flow Statement | 11 |
| Notes to the Cash Flow Statement | 12 |
| Notes to the Financial Statements | 13 to 21 |
THE INSTITUTION OF LIGHTING PROFESSIONALS
REPORT OF THE TRUSTEES for the year ended 31 December 2023
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 Board of Trustees: 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 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 2023, 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 |
| Chief Executive Officer (non-voting) | Justin Blades |
At the instigation of the Chief Executive, a request for expressions of interest in serving on the Board of Trustees is sent to the serving Honorary Treasurers, Vice Presidents and Chairs of Lighting Delivery Centres and Member Groups serving at the commencement of each calendar year.
Expressions of interest are considered at a joint meeting of the Board of Trustees and the previous five Past Presidents, as defined in the Articles.
Page 1
THE INSTITUTION OF LIGHTING PROFESSIONALS
REPORT OF THE TRUSTEES for the year ended 31 December 2023
We held our Annual General Meeting on May 24th, 2023. The Board of Trustees confirmed at the meeting comprised:
President Rebecca Hatch Senior President Elect Perry Hazell Immediate Past President Fiona Horgan Junior President Elect James Duffin Honorary Treasurer John Sutcliffe Honorary Treasurer Vacant Vice President - Technical Vacant Vice President - Membership, Qualifications and Registrations Vacant Chief Executive Officer (non-voting) Justin Blades
The posts of Junior President Elect, Senior President Elect are subject to annual appointment in line with the requirements of the Institution's Articles of Association. The posts of Honorary Treasurer are appointed for a term of three years in line with the requirements of the Institution's Articles of Association.
Following the amendment of the structure of the Board of Trustees to include the posts of an additional Honorary Treasurer, Vice President - Technical and Vice President - Membership, Qualifications and Registrations at the 2023 AGM, an additional Call for Nominations for those positions was issued and the following co-opted members were appointed to the Board of Trustees during 2023:
Honorary Treasurer Kieron Jarvis (co-opted) Vice President - Technical Emily Bolt (co-opted) Vice President - Membership, Qualifications and Registrations Peter Raynham (co-opted)
Volunteers
The ILP Council comprising Regional Representatives, YLP and the Board of Trustees 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.
Membership
Year-on-year, we've witnessed a notable increase in the number of members upgrading their current memberships to levels that align with their lighting knowledge, skills, and experience. This trend has significantly contributed to enhancing the benefits members receive throughout their lighting careers.
Our Membership Boot Camp and Technical Report Writing sessions have been a resounding success, primarily delivered to our member groups nationwide, with plans to extend them to our Premier Corporate Members soon. Over the past year, we've conducted sessions in 5 LDCs and major companies. Notably, 80 ILP members have participated in the training, leading to over a quarter of them submitting upgrade applications, with more than half making initial enquiries.
LDC Continuous Professional Development (CPD) in-person events and webinars
Working alongside our staff team at Rugby, LDC committee members delivered an increased number of CPD in-person events and webinars throughout the year on topics ranging from Bat-friendly lighting and guidance from ILP's GN08 publication to solar-powered lighting.
The following number of events were delivered by LDC and Member Communities in 2023:
Durham: 7 London: 5 Bristol: 4 Ireland: 3 Birmingham: 2 Manchester: 2 Scotland: 2 YLP: 5
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THE INSTITUTION OF LIGHTING PROFESSIONALS
REPORT OF THE TRUSTEES for the year ended 31 December 2023
How to be Brilliant
We staged four How to be Brilliant events in 2023 as part of our activities supporting the Architectural Lighting Design community. Some of these events were delivered as part of the Institution's support and attendance at Clerkenwell Design Week and [d]arc media's Light23 event. Over 300 delegates attended the event programme overall.
Local Authority Lighting: Energy Crisis event in Daventry
This event focused on our Local Authority Lighting community took place on the 2nd February in the heart of the UK in Daventry, Northamptonshire and was created to provide information, support and evidence to help assist managers, street lighting engineers, public realm designers and energy managers navigate through the energy crisis with competence and professionalism.
The Professional Lighting Summit
The Professional Lighting Summit 2023 was held on June 14th-15th at the Museum Of Science And Industry in Manchester. With over 300 delegates attending, an exciting and informative set of technical papers were presented over the two-day event that brought the ILP membership community together in the North West.
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 LCTF 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 2023:
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Our well-respected Exterior Lighting Diploma (ELD) Modules A & B were delivered in spring and autumn.
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Worked with Engineers Ireland to deliver blended online training to their and our members in Ireland.
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A series of editorials were published in the Lighting Journal about ILP Training, including the ELD Modules and the online training platform to raise awareness of our training provision.
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An Asset Management Toolkit: Minor Structures (ATOMS) in-company tailored training course was delivered to Via EM at their premises in October.
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
Guy Harding, our Technical Manager provides expert technical knowledge and guidance to members and the public supported by volunteers who sit on the Institution's Technical Committee. 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 artifcial 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.
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THE INSTITUTION OF LIGHTING PROFESSIONALS
REPORT OF THE TRUSTEES for the year ended 31 December 2023
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.
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:
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Lighting Liaison Group
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UK Lighting and Technology Board
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ADEPT (ILP acts as secretariat)
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BSI
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CiE
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NHSS 6 & 8
Statement by the Institution's Trustees
The financial information presented on the following pages 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 2023 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.
The report did not contain any statements in respect of section 498 (2) (a) or (b) (accounting records or returns inadequate or accounts not agreeing with records or returns), or section 498 (3) (failure to obtain necessary information and explanations) of the Companies Act 2006 and was therefore also unqualified in these respects. The full financial statements have been filed at Companies House.
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 Board of Trustees.
As can be seen on the Statement of Financial Activities, turnover in 2023 is £860,018 (2022: £786,460) being an increase of 9% (2022: 42%) on the previous year. The net movement in funds which includes gains on investments is £115,976 (2022: loss £3,540). The total funds on the Balance Sheet at 31 December 2023 is £1,564,970 compared with £1,448,994 at 31 December 2022.
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.
The portfolio is maintained with a view to future growth with an appropriate level of risk and continues to be monitored on an ongoing basis.
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
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THE INSTITUTION OF LIGHTING PROFESSIONALS
REPORT OF THE TRUSTEES for the year ended 31 December 2023
Registered office Regent House Regent Place Rugby Warwickshire CV21 2PN
Trustees
A Smith Past President (resigned 24/05/23) F Horgan Immediate Past President J Duffin Junior President Elect J Sutcliffe Honorary Treasurer R S L Hatch President P Hazell Senior President Elect (appointed 24/05/23)
The Board of Trustees are also the directors of the charitable company for the purposes of company law and its trustees for the purposes of charity law.
Company Secretary
J S Blades
Auditors
Magma Audit LLP Chartered Accountants Statutory Auditor Magma House, 16 Davy Court Castle Mound Way Rugby CV23 0UZ
Investment Managers
121-Advice Limited Exchange House 12 - 14 The Crescent Taunton Somerset TA1 4EB
Bankers
HSBC Bank plc Coventry
EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.
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
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charity SORP;
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make judgements and estimates that are reasonable and prudent;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
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THE INSTITUTION OF LIGHTING PROFESSIONALS
REPORT OF THE TRUSTEES for the year ended 31 December 2023
STATEMENT OF TRUSTEES' RESPONSIBILITIES - continued
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.
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 10 May 2024 and signed on its behalf by:
R S L Hatch - Trustee
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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 2023 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:
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give a true and fair view of the state of the charitable company's affairs as at 31 December 2023 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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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:
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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
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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:
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adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or
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the financial statements are not in agreement with the accounting records and returns; or
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certain disclosures of trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit; or
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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.
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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:
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discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
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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;
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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 Independent 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
10 May 2024
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THE INSTITUTION OF LIGHTING PROFESSIONALS
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) for the year ended 31 December 2023
| 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 gains/(losses) on investments NET INCOME/(EXPENDITURE) RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
2023 Unrestricted fund £ 810,710 36,075 13,233 860,018 34,717 702,928 51,839 789,484 45,442 115,976 1,448,994 1,564,970 |
2022 Total funds £ 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 |
|---|---|---|
The notes form part of these financial statements
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THE INSTITUTION OF LIGHTING PROFESSIONALS
BALANCE SHEET 31 December 2023
| Notes FIXED ASSETS Tangible assets 13 Investments Investments 14 Investment property 15 CURRENT ASSETS Stocks 16 Debtors 17 Cash at bank CREDITORS Amounts falling due within one year 18 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 19 Unrestricted funds TOTAL FUNDS |
2023 Total funds £ 357,380 801,460 267,000 1,425,840 3,475 88,767 192,487 284,729 (145,599) 139,130 1,564,970 1,564,970 1,564,970 1,564,970 |
2022 Total funds £ 357,898 762,945 260,000 1,380,843 3,196 29,482 165,119 197,797 (129,646) 68,151 1,448,994 1,448,994 1,448,994 1,448,994 |
|---|---|---|
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 10 May 2024 and were signed on its behalf by:
R S L Hatch - Trustee
P Hazell - Trustee
The notes form part of these financial statements
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THE INSTITUTION OF LIGHTING PROFESSIONALS
CASH FLOW STATEMENT for the year ended 31 December 2023
| Notes Cash flows from operating activities Cash generated from operations 1 Net cash provided by 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 provided by/(used in) 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 |
2023 £ 26,760 26,760 (3,377) - - 3,985 608 27,368 165,119 192,487 |
2022 £ 79,922 79,922 (6,245) (6,985) 10,231 283 (2,716) 77,206 87,913 165,119 |
|---|---|---|
The notes form part of these financial statements
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THE INSTITUTION OF LIGHTING PROFESSIONALS
NOTES TO THE CASH FLOW STATEMENT for the year ended 31 December 2023
1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES
2.
| ACTIVITIES | |||
|---|---|---|---|
| 2023 | 2022 | ||
| £ | £ | ||
| Net income/(expenditure) for the reporting period (as per the | |||
| Statement of Financial Activities) | 115,976 | (3,540) | |
| Adjustments for: | |||
| Depreciation charges | 3,895 | 7,262 | |
| Interest received | (3,985) | (283) | |
| Impairment of freehold property | - | 20,000 | |
| Gain on investment property | (7,000) | (45,000) | |
| (Gain)/loss on investments | (38,515) | 99,289 | |
| (Increase)/decrease in stocks | (279) | 115 | |
| (Increase)/decrease in debtors | (59,285) | 23,608 | |
| Increase/(decrease) in creditors | 15,953 | (21,529) | |
| Net cash provided by operations | 26,760 | 79,922 | |
| ANALYSIS OF CHANGES IN NET FUNDS | |||
| At 1/1/23 | Cash flow | At 31/12/23 | |
| £ | £ | £ | |
| Net cash | |||
| Cash at bank | 165,119 | 27,368 | 192,487 |
| 165,119 | 27,368 | 192,487 | |
| Total | 165,119 | 27,368 | 192,487 |
The notes form part of these financial statements
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THE INSTITUTION OF LIGHTING PROFESSIONALS
NOTES TO THE FINANCIAL STATEMENTS for the year ended 31 December 2023
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.
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:-
| Computer Equipment | 33% | Straight line |
|---|---|---|
| Office Furniture | 20% | Straight line |
| Officers Jewels | 25% | Straight line |
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THE INSTITUTION OF LIGHTING PROFESSIONALS
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023
2. ACCOUNTING POLICIES - continued
Tangible assets and depreciation
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.
- (ii) Financial liabilities
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THE INSTITUTION OF LIGHTING PROFESSIONALS
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023
2. ACCOUNTING POLICIES - continued
Financial instruments
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 4. INVESTMENT INCOME Investments income Deposit account interest receivable |
2023 £ 5,950 18,424 11,701 36,075 |
2022 £ 7,700 8,101 5,421 |
|---|---|---|
| 21,222 | ||
| 2023 £ 9,248 3,985 13,233 |
2022 £ 6,895 283 |
|
| 7,178 |
5. INCOME FROM CHARITABLE ACTIVITIES
| Membership subscriptions Courses Lighting journal Summit Professional lighting guides Local Authority Lighting |
2023 Charitable activities £ 364,575 213,830 125,999 87,368 6,438 12,500 810,710 |
2022 Total activities £ 322,698 208,327 128,695 94,652 3,688 - |
|---|---|---|
| 758,060 |
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THE INSTITUTION OF LIGHTING PROFESSIONALS
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023
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 Local Authority Lighting 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 |
2023 £ 25,541 2023 £ 9,176 34,717 Total Funds 2023 £ 259,273 88,420 37,874 152,611 8,998 24 8,388 147,340 702,928 Total Funds 2023 £ 20,352 13,316 28,014 6,560 2,523 32,682 35,232 3,895 790 3,976 147,340 |
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 |
|---|---|---|
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THE INSTITUTION OF LIGHTING PROFESSIONALS
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023
8. SUPPORT COSTS
| Analysis of other resources expended: Staff costs Legal and professional costs NET INCOME/(EXPENDITURE) Net resources are stated after charging: Staff pension contributions Depreciation Auditors remuneration Auditors remuneration - non audit services Operating leases |
Total Funds Total Funds 2023 2022 £ £ 43,423 42,326 8,416 7,900 51,839 50,226 2023 2022 £ £ 13,438 12,591 3,895 7,262 7,400 7,300 600 330 180 360 |
|---|---|
9. NET INCOME/(EXPENDITURE)
10. TRUSTEES' REMUNERATION AND BENEFITS
The members of the council were not remunerated.
Trustees' expenses
Travel and subsistence expenses amounting to £9,357 were reimbursed to 7 members (2022: £6,477 reimbursed to 5 members).
11. STAFF COSTS
| STAFF COSTS | ||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Wages and salaries | 268,767 | 251,823 |
| Social security costs | 20,491 | 17,754 |
| Other pension costs | 13,438 | 12,591 |
| 302,696 | 282,168 | |
| The average monthly number of employees during the year was as follows: | ||
| 2023 | 2022 | |
| Head office | 7 | 8 |
| The number of employees whose employee benefits (excluding employer pension | costs) exceeded | £60,000 was: |
| 2023 | 2022 | |
| £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.
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THE INSTITUTION OF LIGHTING PROFESSIONALS
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023
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 2023 and 2022 are as follows:-
| Income and expenditure Income Expenditure Deficit Brought forward at 1 January 2022 |
2023 £ 18,424 (25,541) (7,117) 28,190 21,073 |
2022 £ 8,101 (8,800) (806) 28,996 28,190 |
|---|---|---|
13. TANGIBLE FIXED ASSETS
| COST At 1 January 2023 Additions Disposals At 31 December 2023 DEPRECIATION At 1 January 2023 Charge for year Eliminated on disposal At 31 December 2023 NET BOOK VALUE At 31 December 2023 At 31 December 2022 |
Freehold property £ 350,000 - - 350,000 - - - - 350,000 350,000 |
Equipment & Officers Jewels £ 67,921 3,377 (3,025) 68,273 60,023 3,895 (3,025) 60,893 7,380 7,898 |
Totals £ 417,921 3,377 (3,025) 418,273 60,023 3,895 (3,025) 60,893 357,380 357,898 |
|---|---|---|---|
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 (2022: £452,869).
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THE INSTITUTION OF LIGHTING PROFESSIONALS
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023
14. FIXED ASSET INVESTMENTS
| FIXED ASSET INVESTMENTS | |
|---|---|
| Listed | |
| investments | |
| £ | |
| MARKET VALUE | |
| At 1 January 2023 | 762,945 |
| Revaluations | 38,515 |
| At 31 December 2023 | 801,460 |
| NET BOOK VALUE | |
| At 31 December 2023 | 801,460 |
| At 31 December 2022 | 762,945 |
All investments relate to the unrestricted fund.
Cost or valuation at 31 December 2023 is represented by:
15.
| Listed | |
|---|---|
| investments | |
| £ | |
| Valuation in 2023 | 801,460 |
| INVESTMENT PROPERTY | |
| £ | |
| FAIR VALUE | |
| At 1 January 2023 | 260,000 |
| Revaluation | 7,000 |
| At 31 December 2023 | 267,000 |
| NET BOOK VALUE | |
| At 31 December 2023 | 267,000 |
| At 31 December 2022 | 260,000 |
Revaluation:
The investment property was valued at £267,000 on 4 December 2023 by an estate agent, Life Investments Estate Agency. This 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 (2022: £45,966).
16. STOCKS
| Goods For Resale | 2023 £ 3,475 |
2022 £ 3,196 |
|---|---|---|
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continued...
THE INSTITUTION OF LIGHTING PROFESSIONALS
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023
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 Tangible Fixed Assets Investments £ £ Unrestricted Funds - General 357,380 847,426 Unrestricted Funds - Investment Property Fair Value Reserve - 221,034 357,380 1,068,460 Comparatives for movement in funds Tangible Fixed Assets Investments £ £ Unrestricted Funds - General 357,898 808,911 Unrestricted Funds - Investment Property Fair Value Reserve - 214,034 357,898 1,022,945 |
2023 £ 63,901 - 24,866 88,767 2023 £ 12,488 6,459 7,901 118,751 145,599 Other Net Assets £ 139,130 - 68,151 Other Net Assets £ 68,151 - 68,151 |
2022 £ 22,051 115 7,316 29,482 2022 £ 22,852 6,276 75 100,443 129,646 2023 Total £ 1,343,936 221,034 1,564,970 2022 Total £ 1,234,960 214,034 1,448,994 |
|---|---|---|
20. RELATED PARTY DISCLOSURES
During the year purchases of £5,778 (2022: £11,155) were made by a company controlled by a trustee in the year.
During the year sales of £nil (2022: £15,648) were made to a company controlled by a trustee in the year.
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THE INSTITUTION OF LIGHTING PROFESSIONALS
NOTES TO THE FINANCIAL STATEMENTS - continued for the year ended 31 December 2023
21. POST BALANCE SHEET EVENTS
After the reporting date but before the signing of the financial statements, the investment property with a carrying value £267,000 was sold for £260,000.
Page 21
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 2023 which comprise the Statement ol Financial Activities, the Balance Sheet, the Cash Flow 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 Kingdorn 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 Decernber 2023 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 Inlemation81 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 financial statements section of our report. We ale independent of the ch8ritable MpanY in a¢oordance with the ethical requirements that are relevant to our audit of the financial slalements in the UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibilities in accordan wth 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 ststements, we have concluded that the Iiuslees, use of the going ¢on¢ein basis of 8c¢ounling in the preparation of the financial staternent5 is appropriate. Based on th8 work we have p8rfotm8d, w8 h8V8 not identif18d any tnaterial uncertainties ielating to 8vents 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 cOnM are described in the relevant sections of this report. Other InfomiatSon The trustees are responsible for the other information. The other information cornprises the information induded 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 explicitly stated in our report, we do not express any fomi of assurance condusion thereon. In connection with our audit of the financial statements, our responsibilrty is to read the other information and. in doing so, consider whether the other information is materially inconsistent with the financial staternents or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstaternents, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 11, 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 inform8tion given in the Report of the Tiuslees for the finan¢ial year for which the financial slalernenls ale 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 of the charitable company and it5 environment obtained in the course of the audit. we have not Identified material misstatements In the Report of the Trustees. We have nothing to ieptsrt in iespect of the ft>llowing matters where the Companies Ad 2(K)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 from 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 Responslbllltles of trustees As explained more lully in the Statement of Trustees, Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and lor being satisfied that they give a true and fair view, and for such internal control as the trustees detemine 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, disdosing, as applicable, matters related to going concern and using the going concem 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 ponsIbIlitieS for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frorn maleTial misstatement, whether due lo fraud or error, and lo issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level ol assurance, but is not a guarantee that an audit conducted in accordance with ISAS IUKI will always detect a material misstatement when il exists. Misslalements can arise from fraud or error and are considered material if. individually or in the aggregate. they Uld reasonably be expected to influence the economic decisions of useis tsken on the basis of these financial slalernents. The extent lo whith our ProdureS are capable of detecting irregularities. including fraud is detsiled below.. 88sed on our understanding of the company and charitable sector, we identified the princip81 iisks of non-complianc with law5 and regulations. and we considered the exlenl to which non-oompliance might have a material effect on the Iinanci81 staternents. We also considered those laws and regulation5 that have a direct Impact on the financi81 statements such as the Companie5 Act 2006. We evaluated managetllent's INtiveS and opportunitie5 for fiaudulent manipulation of the financial staternents Iinduding the risk of override of controls), and determined that the principal iisks were related to posting Inappiopriat8 joumal entries and management bias in 8CCOUnting estirnate5. Audit procedures perfomed inclLJded.. discussions with management including consideration of known or suspected InStanS 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 fomed., 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 to become aware of instan$ of non-compliance with laws and regulations that are not dosely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to traud 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 slalerllents is located on the Financial Reporting Council's website at www.frc.org.uklauditorsresponsibilities. This description forms part of our Report of the Independent Auditors. Use of our report This report is made solely lo the charitable company's members. as a body. in accordance with Chapter 3 of Part 16 of the Companies Act 20Cfj. Our audit work has been undert8ken so that we might slate lo the Charitab company's members those matters we are required lo slate lo them in an audilor5' 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 ieport. or for the opinions we have formed. Victoria Craig (Senior Statutory Auditor) lor and on behalf of Magma Audit LLP Chartered Accountants Statutory Auditor Magma House, 16 Davy Court Castle Mound Way Rugby CV23 OUZ 10 May 2024 Page 8