ODcvSign EnvelokE ￿.- C3rr39A3-9712-4225-0992-9121r4i1￿)CD85 Charity Règlstration No. 288084 Company Registration No. 01676971 IEngland and Wales) OXFORD INSTITUTE FOR ENERGY STUDIES ANNUAL REPORT AND FINANCIALSTATEMEMTS FOR THE YEAR ENDED 31 DECEMBER 2020 Docu&'gn I￿￿10pe IO". C3Ff39A3.9712-4225-B992-9121r489f)CB85 OXFORD INSTITUTE FOR ENERGY STUDIES LEGAL AND ADMINISTRATIVE INFORMATION Trustoo$ Or C Adam Dr A Al-Kuwaiz Dr AAAI-Mudhaf Professor R J Goodman Mr A Lajous HRH Prince A trAn Salman Al Saud Mr LAWhitehead Mr M Toyoda MrMIToll Dr AAAtliga Mr P F Malhieu Professor K E Boijars (Appointed 24 Febwary 20201 Secretsry M$ KA Teosé8le Charily numbor 286084 Company nuiiibor 01676971 PrlnGlpal addross S7 Woodstock Road Oxlord Oxfordshire OX2 6FA Registered offlce 66 Prescol Street London Audltor CBW Audit Limlled 66 Prescol Street London E1 8NN Bankers Barclays Bank plc Oxtord City Offi PO Box 333 Oxford Oxfordshire OXI 3NS Investment advisors 8reMrin Dolphin 12 Smilhfield Street London EC1A9BD Docuslgn Envelope ID.. C3FF39A3-97f?_4??.rfr 99?-91?.1R89DCR85 OXFORD INSTITUTE FOR ENERGY STUDIES CONTENTS Pago Trustees report statement ol Trustees responsibllilles Independent audiloes ieport Stalemenl ol financial activities io Summary incorne and expenditure account 11 Slatemenl ol finanaal position 12 Statement of cash flows 13 Notes to tho finanaal stslemenls 14-27 OocuSig11 Fnwekjpe In". c,3FF30A3-9712.4225.B992.91211309DPB85 OXFORD INSTITUTE FOR ENERGY STUDIES TRUSTEES REPORT IINCLUDING DIRECTORS, REPORTI FOR THE YEAR ENDED 31 DECEMBER 2020 Tho Trustees prosent their report and financial statements for the year ended 31 December 2020. The financial statements have been prepared in accordance with the accounllng polkies sel out In note 1 to the financial slalements and coinply with the Charity's governing documont, the Companies Act 2006 and "Accounllng and Reportlng by Charities: Statement of R￿0MMended Praclice appl.cable to charities preparing their accoun;s in accordance with the Financial lleporling Standard applicable in the UK and Repl5b1￿ of Ireland {FRS 1021 (effecllve 1 January 20191" Oljlectlves and actlvities The Inslilulo has been established as a centre for advsneed academlc lesearcli Into the social scien¢8 aspects of energy and eneigy markets. 11 operates as a -profit makkig educalional organisalion. The expenditufe in the perfiod supported Ihese objectives becaus811 enabled the charity lo undertake projects aimed at ddvaiicing research In this field. The Trustees have paid due regard lo guldance18sued by the Charity Commission in deciding what actimlies the Charity should undertake. Significant activitie$ The Institute Is commilled to achieving Ihe highest academic standards. As a general pollcy the Inslilute conoAnlr4tes ils research on energy issues of Inleinalional s'gnifi¢an¢e. Review of Instltute's Operatlons and Developments During 2020 Ihe Institute continued to undertake reseqirch iiito soe4al seience aspects of major energy issues. Research was undèrtaken ift oil, natural gas and eleclricily. and thè yynergies between all Ihree in relalion to N)e Iraisportallon ancs power se¢lors. Ils unique mullidlsciplinary expertise facililales the ana'ysis ol current energy Issues across production, cansumplion. markets. pol cy and Tegulalion. Ils research spans the supply and demand dyiianiics of globa,. regional and domesti¢ ene,"gy markets; Ilie key factors shaping energy policy in developed. devÈloping 8nd resource-rich countries and their interaction with other agendas. SLich as energy transilloTh. energy securily, climate chaThJe. energy sector refonn., 8nd the sliuclure of energy markets and their evolution. A detailed review of the year is Included Sn the inslilule's Annval Report, located on the charity's website. Fln3ncial review The Charity's activities for the year a￿ presented in the attached financial statements which show a surplus nel movement In funds loi Ihe year of £326,16312019.' £1,873.985). Thé balance of endowment funds al 31 December 2020 was £4.421,450 and for unreslrided funds il was £6.242,092. Rgsorvos policy The Inslitute's principal reason for hokling reserves 15 to generate a flow of inve.%lmenl income in times when the costs of projects th21 il Is undertaklng exceed5 the income received from donations and Irom publications and pro]ecls. Reseryes are Teviewed on a regular basis anrl after such review any surplus accumulalod from good management will be considered for fulu.-e charitable purposes.11 is a150 envisaged thal the inslilule may have lo niake additional expenditures on the Charily's o*'eclives iii ordei to allra¢l donations in Ihé futuiè and I,')al eonsequ&nlly tsseNÈs could fall. Principal fundiftg sources Oona140ns arè received Irém a Wide range of 8ource%. Thosè making donations are predominantly &ngaged in Ihe international energy markets, with sp()nsors including. for examrle, Baker Hughes. Chevron Corporation, Enel Foundation, Mtsui & Co, ond Ilie Swedish EnergyAgency. Dotu&gn EtkvÈlopÈ Irj." c3FF39A&g712.4?.?&Bg￿.-pl21F3B￿r)rEl8 OXFORD INSTITUTE FOR ENERGY STUDIES TRUSTEES REPORT ICONTINUEDIIINCLUDING DIRECTORS. REPORTI FOR THE YEAR ENDED 31 DECEMBER 2020 Investmènt poli¢y and obJ@ctlvè$ The investments currenlly held can provlde an annual incom& of over £200,000 Its thè Inslilute to use towards ils objectives and also to help ease cash Ilow over the year. The bulk of tle charity's income is deiived from donations from S)onsors and Benefa¢tors. Th8 income from inveslmenls accounts fL)r approxima;aly 13% of total income. The Inslilute seeks lo piodu¢e Ihe best financial reluiti within an acceptable level of rlsk. The inveglmenl ob]'ectyve is lo generate a return over the long-lerm which should allow the Institute lo at least mainlain the real va.ue of the assets whilst generating an income to SLSPPOrt the ongolng ac15Mlies of Ihe 5nslilule. Should a fall in donations from Sponsors and Benefactors and or unexpected expenses occur, a draw do on capital is acceplAble lo meol expendiluio needs. F4Jture dèvolopmonts The Inslitule's Oil and the Middle East ProgTamme an(1 Gas Research Programme are well established 2nd continue lo produce high quality research ol inlernalional Significan￿ as well a5 Work with a more regional and national focus. The Eleclricily Programme continues lo expand, produ¢lng high quality researcli and oroanisino events Ihal allr8¢1 interest both from resea-.chers a.nd sponsors. Launched in July 2Q19 the Inslilule's China Energy Research Programrne is a centre of analytical excellence offoring ins￿1)ts inlo Ihe faelors that inf9712.4225.B99?.9121B89DCB85 OXFORD INSTITUTE FOR ENERGY STUDIES TRUSTEES REPORT {CONTINUEDIIINCLUDING DIRECTORS, REPORTI FOR THE YEAR ENDED 31 DECEMBER 2020 Employ¢0 Involvement The Charity's policy is lo consult and discuss wlh employees, through unions. slaif ¢ounoils and at meetihgs. mallers likely lo alfecl employees, inleresls. Infotmalion on mallers of concern lo empbyees Is given through informaticsn bulletins and reports which seek k) achlevo a common awareness on the part ol all employees of Ihe financial and economic la￿OrS aff8¢1ing the Chariiis performance. Audltor In accordance wlh 11)e conipany's articles, a resolution proposing Ihal CBW Audit Limited be reappoinled as auditor of the company wi51 be pul al a General Meeting. Dl$clo$ure of Inforniation to auditor Each of Ihe Trustees has confirmed that the￿ 15 no information of thi¢h they are aware whith is relevant lo the audit, bul of whrh the auditor is unawarè. They have further confirmed that they have taken approprlate steps lo identify such ielevanl infc>rmalion and to establish that the auditor is aware of such information. The Trustees report bYa¥ approved by the Board of Trustees. Ms K A Teasdale Secretary 5128/2021 Dated: t)tsii.Sbn Fnveknpg D.. fJFF3W9712-4225-B092.912fB80D¢B85 OXFORD INSTITUTE FOR ENERGY STUDIES STATEMENT OF TRUSTEES RESPONS181LITIES FOR THE YEAR ENDED 31 DECEMBER 2020 The Trustees, wl)0 are also tre dlre¢lors of Oxford Inslilule for Energy Studies lor the purpose of company law, are responsible for preparing the Trustees Report and lh2 financial statements in accordance with applicable law and Uniled Kingdom Accounting Standards {Uniled Kingdom Generally Accopted Accounting Praclicel. Company Law requ1￿$ the Trustees 10 prepa￿ financial statements for each finanaal year give a Irue and fair view of Ihe slate of affaks of the Charity and of the incoming resources and application of resources, cluding the Income and expondilure, of tho ch8rilable company for that year. ln preparing these finandal slalemenl$. the Trustees are requlred lo.. select 8vilable accounting poliues and then apply them consislehlly.. observe Ihe methods and prin(iplas in th8 Charities SORP; make judgements and eslimales Ihal are reasonable and piudetrt., and prepare the finan¢i81 slalemenls on the going concern basis unless il is inappropriate lo presume that the harily will continue in operation. The Trustees are responsible lor keeping adequaiè Èceounlinu Yeeords that disclose with reasonable accuracy at any time Ihe financial posits'on of the Charity and enable Ihein lo ensure that the financial $lalements comply Ih the Companles Act 2006. They are also ￿sponsible for safeguarding Ihe assets of the Charity and hence lor taking reasonable steps for the prevention and deteclion of fraud and other irregularilles. Docusw En￿￿De ID= cyrrJoA&9712-4225-D992-9121D89DCD85 OXFORD INSTITUTE FOR ENERGY STUDIES INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF OXFORD INSTITUTE FOR ENERGYSTUDIES Oplnlon We have audileis Ihe financial slalemenls of Oxford Inslilule for Energy Studles Illie 'Charily') for the year ended 31 December 2020 which comprise Ihe slalemenl of financial activities. Ihe summary income and exponditure aceounl. the slalemenl of Iin8n¢lal position, the statement of cash flows and the notes to the fina.Icial slalemenls, iiicludirng significant accounling policies. The financial reporting framework that lias been applied in their preparation is applicable law and United Kingdom Accounting Slandaids, including fRS 102 Tlie Flnan¢ial Reporting Slancjaid applicable in Ihe UK 8nd R8piiblic of Ireland Iunited Kingdom Generdlly A￿epte9712.4225.B992.9121B89DCB8S OXFORD INSTITUTE FOR ENERGY STUDIES INDEPENDENT AUDITOR'S REPORT {CONTINUEDI TO THE TRUSTEES OF OXFORO INSTITUTE FOR ENERGY STUDIES We ensured that the engagement team eoleelively had the appropriate competence, ca)abililieS and s￿11$ lo Identify or recognise non-compliance with applicable laws and regulations. The laws and re9ulalions applicable lo IhÈ charity were idenlilied Ihrougi discussions with Iruslees an($ other managemenl. and from our commercial kno￿edge and experien￿ of Oxfo,'d Inslilule of Enefgy Sludles. 011￿)ese laws aiid regulations, we focused on those that we considered may have a diiecl alerial effect on Ihe financial stateiiienls or the operations of the ¢harily, It)¢ludihg Chaiilies Act 2011. Companies AGI 2008, taxation legislation, dal2 protection. anli-bribery. anti- money-laundering, employmonl, environmental and hoallh and safely legislation. The exlenl of compliance wth these laws and regulations identified above was assessed Ihrough making enqLJiries ol mai)agement and inspecting legal correspondence. The identified laws a.ILI regulations were communicated within the audil leam egijlarly and the team remalned alert lo inslai¢es of non-compliance throughout the audll. assessed the $118cepts"bility of the eom)any'8 financial statements to malefial misstatement. induding obtaining an understanding of how fraud m'ghl n¢¢ur, by: making pnquiries of manageinenl as lo where they ¢on8idereii Ilere was sus¢eplibilily lo fraud, Iheir knowledge of aclual. suspe¢led and alleged fraud., considering the internal controls in place to mitigale risks of fraud and non-compliancè with laws and regulations.. and understanding the design of the Gomp8ny's remuneration policies. To address the risk of fraiid through manageinenl bias and oveTride of controls, we.. performed analyllcal procedures lo Identify any unusual or unexpected relationsh ps,. tested journal entries lo ideilify unusual transaclions., assessed whether judgements and a$$umplion$ made in determinlng ihe accounting estimates sèt cwt in note 2 ￿E[e indicative of PDlenlial bia5". and investigated the ralionale behind significanl or unusual transactions. In response lo the risk of irregularilies and non-compliance with laws and regulations, ￿ designed procÈdures which included, bul were not limited lo-. agreeing financlal statement dlsdosures lo under(ying supporting documentation. l'eading Ihe minutes of meetings of Ihose Charged wilh goveriian¢è', enquiring of management as lo actual ail d polent.d liligalion and claims., and reviewtng coire5pondoiice wlh HMRC. Charilios Commission and the company's legal advisors. Tliere are inhereni limitalrons In our audit procedures described above. The more removed thai laws and regulations are from financial transactions, the less Iikety il is that we would become aware of non-compliance. Auditing blandards also limit the audit procedures required to i(Jenlify non-compliance with laws and regulalions lo enquiry of the directors and other management arid the inspection of regulatory and legal co1reswnd￿Ce. if a)y. Maleiial mis9181emenls that arisè (ILJe lo fraud ¢an bè haider lo deled 11)8n Ihoye Ihal arise froni error a$ they may involve deliberate concealment or collusion. A fuitlier descript￿￿ of our 18sponsibililie5 is available on the Financial Reporting Council's website al.. htlps=Il vNM.frc org.uklaudilorsresponsibilities. This descriplion forms part of our 3udilo, s report. OXFORD INSTITUTE FOR ENERGY STUDIES INDEPENDENT AUDITOR'S REPORT {CONTINUEDI TO THE TRUSTEES OF OXFORD INSTITUTE FOR ENERGY STUDIES USÈ of our report This ropori is made solèly lo Iho charltablo companls mombars. as a body, In accordanco wilh Chapter 3 of Part 16 of tho Companios Ael 2006. Our audit work has beèn undertaken so that we mighl stale io the ¢harilablè companls membors Ihoso maller8 wo are required lo state lo thom in an audilors, report and lor no other purpose. To Ihc fullcsl oxlonl permllled by law, we (kj not occepl or assume rosponsSbllly lo anyone other than the chdriiable company and Ilie charllable company's members as a body. for our audll worf(. for thls faporl, or for lh8 opinlot)s wé havè lormÈd. 4'LiAJA f .knS Mr Jonathan Cross {Senlor Statutory Audltorl for and on behalf of CBW Audll LlmSted 16 June 2021 Chartarèd Account8nts Stalulory Audltor 66 Prescol Stre81 London EI 8NN DOC￿￿g￿ Envelope ID.. C3FF39A3471?.4??S.H99?.-9121HRgi)f.H8S OXFORD INSTITUTE FOR ENERGY STUDIES STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2020 Urtrest¥icted Endowmant funds funds 2020 2020 Total Unreslrieted Endowinenl fui)ds funds 2019 2019 Tot 2020 2015 Nol9¥ Inc e froin". Voluntary Ir￿Me Incoming resources from charitable activities Incomlng resour¢es from inveyimenls 730,023 730,023 899,287 899,287 948,677 948.677 1,338,694 1,338,694 256.608 256,608 279,g22 279,922 Total Incom 1.935,308 1,935,308 2,517,903 2.517,903 Ex Raising funds èn 43,503 43,503 45,191 Chariiable zclivilies Projetls and publicat￿nS Support costs 1,240,362 397,399 1,240,362 1.344,807 397,399 384,825 1,344.807 384.825 Total chayilablo &xpond5ture 1.637,761 1,637,761 1,729,632 1,729.632 Other expenditure 12 60,998 60,998 44,018 44,016 Total rosources gxpendpd 1,742,262 1,742,2S2 1.818,839 1,818,B39 NÈI gainslllosses) on investments 11 121,970 11,147 133.117 675,392 499,529 1.174.921 Net movemont In funds 315,016 11,147 326.163 1,374,456 499,529 1,873,985 Fund balanrks at 1 January 2020 5,927,078 4,410,303 10,337,379 4.552,620 3,910,774 8,463,394 Fund balanc•s at 31 December 2020 6,242,og2 4,421,450 10,663,542 5.927,076 4,410,303 10,337,379 The stslemenl of financial aalivilies includes all gains and losses recoonised in the year. All incomè and èxpendittjre derive from continuing activilies. 10- DocuSgn ItNelope ID. c3FF39A3-97l2.4225-B9￿.9l?.IRB9r)cRo OXFORD INSTITUTE FOR ENERGY STUDIES SUMMARY INCOME AND EXPENDITUREACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020 All income funds 2020 2019 Gross income Gains on investments 1,935,308 121.970 2,517.903 675.392 Tolal income In Ihe reporting pwiod 2,057,278 3,193,295 Total expenditure fmm Income funds 1,742.262 1.818.839 N&t Income for th& y￿r 315,016 1.374,456 Docusiw Envelope In." c.3FF39A3-9712-47.2uf.R992-9121B89DCB85 OXFORD INSTITUTE FOR ENERGY STUDIES STATEIIIENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2020 2020 2019 Notes Flxgd as$els T8ngible assets Inveslmenls 13 14 7,828 9,434.911 17,749 9.499.999 9,442,729 9.517,748 Current assets Debtors Cash at bank and in hand 16 169,177 1,148,484 196.590 741,470 1.317.661 938.060 Cr•ditor$: •m(wnts falllng du8 wilhin one year Taxation and social security Olhei crerlilors 34,693 62.165 35,088 83,341 96.858 118.429 Nel currènt asséts 1,220,e03 819,631 Totsl assets less Current Ilabllltlo$ 10.663.542 10,337.379 Capltal funds Endowmenl funds- general Income funds Unréstricted funds 4.421.450 4,410.303 6,242,092 5,927,076 10,663,542 10,337,379 20 MAY 2021 The Inanrlal statement$ were app¥oved by the Tmsl8es on .................. tlo£¥SIgMdby. 51ydbr. IDSWSEQ14ts1J9p.I Mr LA ￿llehead Trustee MrMIToll Trustee Company Registration No. 01676971 12- Docusyii EiiYel¢)pv ID-. C3FF39A3-9712-42ts8992-9121Q89DCB85 OXFORD INSTITUTE FOR ENERGY STUDIES STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEM8ER 2020 2020 2019 Notes Cash flows from opgrating acllvltles Cash {absorbed byllgeneraled from operations 24 146,2511 464,005 Investing activities Purcl)ase of tangible fixed assets Decrease in cash within investment portfollo Puichase of other invesln)enls Proceeds on disposal of other Investments Investment Income received 11.5481 53,048 (947,9981 1,093 155 256.608 111,2011 1.379,8001 903,682 279,922 N8t cash gènèratsd fromllused in) Investlng actlvltl8s 453,265 1207,3971 Net cash used In flnahcSng a¢tivltle$ Nat incrèasè in caÈh and ca$h èllulvalènts 407,014 256,608 Cash and cash equivalents al beginning of year 741.470 484,862 Cash and cash ¢quivalÉnts at end of year 1,148,484 741,470 13- ## **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1 Accounting policies** ## **Charity information** Oxford Institute for Energy Studies is a private company limited by guarantee incorporated in England and Wales. The registered office is 66 Prescot Street, London, E1 8NN. ## **1.1 Accounting convention** The financial statements have been prepared in accordance with the Charity's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)". The Charity is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling , which is the functional currency of the Charity. Monetary a mounts in these financial statements are rounded to the nearest £. The accounts have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below. The charity has taken advantage of the exemption under Section 24.13A 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)" not to prepare consolidated accounts, on the basis that the subsidiary is not material for the purpose of giving a true and fair view. The financial statements present information about the charitable company as an individual entity and not about its group. ## **1.2 Going concern** At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. With the recent and rapid development of COVID-19, the world entered an unprecedented disruption to business activities, educational activities and everyday life. The charity's performance is therefore carefully monitored by the trustees, since COVID-19 is currently having a significant impact on the world economy. The trustees have updated budgets accordingly to reduce the impact on the group and ensure resources are available to meet liabilities as they fall due. ## **1.3 Charitable funds** Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements. - 14 - **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1 Accounting policies** **(Continued)** ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. ## **Permanent Endowment Fund Created on Inception** The Permanent Endowment Fund represents contributions received from founder members of the Institute and inaugural gifts received by the Institute on incorporation. The donors designated the original capital as a Permanent Endowment Fund that cannot be spent, and that the investment income generated from the Fund is unrestricted and can be used to finance the activities of the Institute. The investment gains and losses derived from the underlying investments of the Permanent Fund are prorated and split between the permanent endowment fund and the General Unrestricted Fund. ## **Income Equalisation Fund** The Institute depends on investment income together with donations and other contributions received to fund its research projects. In view of the danger of sudden fluctuations in the level of income, if income from the investment portfolio exceeds 7%, there will be a transfer to the Income Equalisation Fund, which is a designated fund. This is so that in periods of low income there are sufficient resources available to maintain the Institute's operations. In periods where the investment income is less than 2% of the value of the investment portfolio, a transfer will be made from the Income Equalisation Fund to the General Fund. The amount transferred will be 2% of the market value of the investments less the investment income received. For the period under review, the return did not exceed 7% and was above than 2%, therefore no transfer was made from this Fund to the General Fund. ## **1.4 Incoming resources** Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. All incoming resources are included on the Statement of Financial Activities when the charity is legally entitled to the income, it is certain that the resources will be received, and the amount can be quantified with sufficient reliability. ## **1.5 Resources expended** 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. - 15 - **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1 Accounting policies** **(Continued)** ## **1.6 Tangible fixed assets** Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: Leasehold improvements 20% on cost Library 33% on cost Plant and machinery 33% on cost Fixtures, fittings & equipment 20% on cost The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year. The Charity has an accounting policy regarding the treatment of the library purchases. Since employees of the charity use these resources over a number of years it was felt the accounting policy should reflect this and so should be capitalised. The Trustees have deemed the library assets to have a useful life of three years so should be depreciated over this period. ## **1.7 Fixed asset investments** Fixed asset investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in net income/(expenditure) for the year . Transaction costs are expensed as incurred. ## **1.8 Impairment of fixed assets** At each reporting end date, the Charity reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any ) . ## **1.9 Cash and cash equivalents** Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. ## **1.10 Financial instruments** The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _**Basic financial assets**_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised. - 16 - **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1 Accounting policies** **(Continued)** ## _**Basic financial liabilities**_ Basic financial liabilities, including 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 p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. 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 operations from suppliers. Amounts payable 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. ## _**Derecognition of financial liabilities**_ Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled. ## **1.11 Employee benefits** The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received. Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits. ## **1.12 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. ## **1.13 Leases** Rentals payable under operating leases, including any lease incentives received, are charged as an expense on a straight line basis over the term of the relevant lease. ## **1.14 Taxation** The charity is exempt from corporation tax on its charitable activities. ## **1.15 Allocation and apportionment of costs** Costs are allocated between: - Costs of generating voluntary income, which covers the investment management costs and promotion of the charity - Charitable activities, which covers projects and publications costs along with support and admin costs, and - Governance costs, which covers the costs involved in producing audited financial statements. These allocations are made on a consistent basis. Projects are continuously changing in an attempt to further the objectives of the Institute. - 17 - **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **1 Accounting policies** **(Continued)** ## **1.16 Donations and Grants** Income received from donations and grants, including capital grants, is included in incoming resources when these are received, except as follows: - Where donors specify that donations and grants given to the Institute must be used in future accounting periods, the income is recognised on receipt, as long as there are no pre-conditions attached to the income . - If donors impose conditions, which have to be fulfilled before the Institute becomes entitled to use such income, the income is deferred and included in incoming resources when the pre-conditions have been met. If donors specify that donations and grants (including capital grants) are for particular purposes, which do not amount to pre-conditions regarding entitlement, then this income is included in incoming resources restricted funds when receivable. ## **2 Critical accounting estimates and judgements** In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. ## **Key sources of estimation uncertainty** ## **Tangible fixed assets** Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life. Those charged with governance have applied the rates using industry standards, from which they expect a low level of estimation uncertainty. ## **Valuation of fixed asset investments** Fixed asset investments are revalued at the end of each reporting date using market rates. The valuation is conducted by Brewin Dolphin, an independent and experienced firm of investment advisers. - 18 - ## **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **3 Voluntary income** ||**Unrestricted**|Unrestricted| |---|---|---| ||**funds**|funds| ||**2020**|2019| ||**£**|£| |Donations and gifts|706,750|899,287| |Coronavirus Job Retention Scheme grant|23,273|-| ||730,023|899,287| - 19 - ## **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **4 Incoming resources from charitable activities** |**Brainstorming Publications**
**2020**
**2020**
**£**
**£**
Income
-
1,467
Saudi Aramco fellowship grant
-
-
Uniten fellowship grant
-
-
China day
-
-
1,467|**Oil day**
**Gas project Fellowship grants**
**Electricity**
**project**
**2020**
**2020**
**2020**
**2020**
**£**
**£**
**£**
**£**
-
865,502
-
44,994
-
-
(3,500)
-
-
-
39,885
-
-
-
329
-
-
865,502
36,714
44,994|**Total**
**2020**
**£**
911,963
(3,500)
39,885
329
948,677| |---|---|---| ## **For the year ended 31 December 2019** Unrestricted funds |**Brainstorming**|**Publications**|**Oil day**|**Gas project**|**Fellowship grants**|**Electricity**|**Total 2019**| |---|---|---|---|---|---|---| ||||||**project**|| |**£**|**£**|**£**|**£**|
**£**|**£**|**£**| |5,083|
14,705|3,656|1,055,493|
176,769|67,988|1,338,694| - 20 - ## **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **5 Incoming resources from investments** |||**Unrestricted**|Unrestricted| |---|---|---|---| |||**funds**|funds| |||**2020**|2019| |||**£**|£| ||Income from listed investments|211,470|225,801| ||Income from Corporate bonds|27,237|33,499| ||Income from International Bond|16,288|18,107| ||Interest receivable|1,613|2,515| |||256,608|279,922| |**6**|**Raising funds**||| |||**2020**|**2019**| |||**£**|**£**| ||Investment management|43,503|45,191| - 21 - **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **7 Charitable activities** |**Projects**
**and**
**publications**
**2020**
**£**
Staff costs
741,724
Depreciation and
impairment
-
Consultancy
471,149
Materials and Library
Costs
10,568
Light and heat
-
Telecommunications
-
Photocopying, postage,
printing and stationery
21
Sundry expenses
1,786
Repairs, maintenance and
property expenses
-
Travel and subsistence
12,711
Gas day costs
2,932
Staff healthcare
-
Computer software
-
Bank Charges
-
Insurance
-
Subscriptions
(529)
Rent, rates and water
-
Other charitable
expenditure
-
1,240,362
1,240,362|**Support**
**costs**
**2020**
**£**
240,131
11,469
-
-
5,602
5,125
2,030
5,667
1,554
-
-
-
41,810
651
3,978
-
83,490
(4,108)
397,399
397,399|**Total**
**2020**
**Projects**
**and**
**publications**
**2019**
**£**
**£**
981,855
626,425
11,469
-
471,149
544,990
10,568
18,248
5,602
-
5,125
-
2,051
17,150
7,453
7,429
1,554
-
12,711
60,237
2,932
50,806
-
-
41,810
-
651
-
3,978
-
(529)
1,067
83,490
423
(4,108)
18,032
1,637,761
1,344,807
1,637,761
1,344,807|**Support**
**costs**
**2019**
**£**
244,274
10,642
-
-
4,462
5,133
9,385
20,498
2,772
-
-
4,996
379
1,063
4,756
76,465
-
384,825
384,825|**Total**
**2019**
**£**
870,699
10,642
544,990
18,248
4,462
5,133
26,535
27,927
2,772
60,237
50,806
4,996
379
1,063
4,756
1,067
76,888
18,032
1,729,632
1,729,632| |---|---|---|---|---| ## **8 Auditor's remuneration** The analysis of auditor's remuneration is as follows: |Audit of the annual accounts
**Non-audit services**
All other non-audit services|**2020**
**£**
8,500
5,500|**2019**
**£**
7,500
5,500| |---|---|---| - 22 - **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020** ## **9 Trustees** There w as no trustees' remuneration or other benefits for the year ended 31 December 20 20 nor for the year ended 31 December 201 9 . ## **Trustees' expenses** There were no trustees' expenses paid for the year ended 31 December 20 20 nor for the year ended 31 December 201 9 . ## **10 Employees** The average monthly number of employees during the year was: |Academic
Administrative
Total
**Employment costs**
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or
more were:
£60,001 - £70,000
£70,001 - £80,000
£80,001 - £90,000
£120,001 - £130,000
£140,001 - £150,000|**2020**
**Number**
10
6
16
**2020**
**£**
819,703
94,975
75,351
990,029
**2020**
**Number**
3
1
-
1
1|**2019**
**Number**
9
6
15
**2019**
**£**
737,889
85,213
67,856
890,958
**2019**
**Number**
1
-
1
-
1| |---|---|---| The number of staff to whom defined contribution retirement benefits are accruing is 16 (201 9 : 15 ). Pension contributions for the year are disclosed above. - 23 - **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **11 Net gains/(losses) on investments** |**Unrestricted Endowment**
**funds**
**funds**
**general**
**£**
**£**
Revaluation of investments
14,981
11,147
Gain/(loss) on sale of investments
106,989
-
121,970
11,147
**For the year ended 31 December**
**2019**
675,392
499,529|**Total**
**2020**
**£**
26,128
106,989
133,117|**Total**
**2019**
**£**
1,081,043
93,878
1,174,921
1,174,921| |---|---|---| ## **12 Other expenditure** |Wages
Accountancy fees
Auditor's remuneration
Legal and professional
**Tangible fixed assets**
**Leasehold**
**improvements**
**£**
**Cost**
At 1 January 2020
17,272
Additions
-
At 31 December 2020
17,272
**Depreciation and impairment**
At 1 January 2020
17,062
Depreciation charged in the year
124
At 31 December 2020
17,186
**Carrying amount**
At 31 December 2020
86
At 31 December 2019
210|**Library**
**£**
114,478
-
114,478
104,479
6,093
110,572
3,906
9,999|**Unrestricted**
**funds**
**£**
22,932
20,673
8,500
8,893
60,998
**Plant and**
**machinery**
**Fixtures,**
**fittings &**
**equipment**
**£**
**£**
57,409
18,688
1,548
-
58,957
18,688
50,519
18,038
5,060
192
55,579
18,230
3,378
458
6,890
650|**Total**
**2019**
**£**
20,259
14,232
7,500
2,025
44,016
**Total**
**£**
207,847
1,548
209,395
190,098
11,469
201,567
7,828
17,749| |---|---|---|---| ## **13 Tangible fixed assets** - 24 - **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **14 Fixed asset investments** |**Listed**
**investments**
**£**
**Cost or valuation**
At 1 January 2020
9,158,594
Additions
947,998
Valuation changes
26,128
Disposals
(986,166)
At 31 December 2020
9,146,554
**Carrying amount**
At 31 December 2020
9,146,554
At 31 December 2019
9,158,594|**Cash in**
**portfolio**
**Total**
**£**
341,405
9,499,999
-
947,998
-
26,128
(53,048)
(1,039,214)
288,357
9,434,911
288,357
9,434,911
341,405
9,499,999| |---|---| ## **Fixed asset investments revalued** The investments comprise listed investments that are revalued to market value at the balance sheet date. The valuation is conducted by Brewin Dolphin, an independent and experienced firm of investment advisors. The historical cost of listed investments held as at 31 December 2020 is £6,309,528 (2019: £6,411,276). Of the total value of listed investments, £6,014,447 (2019: £5,273,183) represents overseas investments and £3,132,107 (2019: £3,885,412) represents UK investments. |**15**
**Financial instruments**
**Carrying amount of financial assets**
Instruments measured at fair value through profit or loss
**16**
**Debtors**
**Amounts falling due within one year:**
Trade debtors
Amounts owed by fellow group undertakings
Other debtors
Prepayments and accrued income|**2020**
**£**
9,146,554
**2020**
**£**
101,552
14,486
28,653
24,486
169,177|**2019**
**£**
9,158,594
**2019**
**£**
119,102
34,139
15,686
27,663
196,590| |---|---|---| - 25 - ## **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **17 Creditors: amounts falling due within one year** |Other taxation and social security
Trade creditors
Other creditors
Accruals|**2020**
**£**
34,693
11,807
6,127
44,231
96,858|**2019**
**£**
35,088
33,345
6,456
43,540
118,429| |---|---|---| ## **18 Retirement benefit schemes** ## **Defined contribution schemes** The Charity operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The charge to profit and loss in respect of defined contribution schemes was £75,351 (2019: £67,856) ## **19 Analysis of net assets between funds** |**Unrestricted**
**Funds**
**Endowment**
**funds**
**2020**
**2020**
**£**
**£**
Fund balances at 31 December 2020 are
represented by:
Tangible assets
7,828
-
Investments
5,024,608
4,410,303
Current assets/(liabilities)
1,220,803
-
6,253,239
4,410,303|**Total**
**2020**
**£**
7,828
9,434,911
1,220,803
10,663,542|Total
2019
£
17,749
9,499,999
819,631
10,337,379| |---|---|---| ## **Unrestricted funds** The unrestricted funds comprise the general fund and the income equalisation fund. The balance on the general fund at the year end was £5,672,575 (2019: £5,313,132) and the balance on the income equalisation fund was £613,944 (2019: £613,944). ## **20 Operating lease commitments** At the reporting end date the Charity had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows: |Within one year
Between two and five years
In over five years|**2020**
**£**
66,000
247,500
-
313,500|**2019**
**£**
66,000
264,000
49,500
379,500| |---|---|---| - 26 - **OXFORD INSTITUTE FOR ENERGY STUDIES** ## **NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)** ## **FOR THE YEAR ENDED 31 DECEMBER 2020** ## **20 Operating lease commitments** ## **(Continued)** Operating lease payments represent rentals payable by the charity for its office premises. Rentals are fixed for the term of the lease. ## **21 Events after the reporting date** During March 2020 the World Health Organisation announced the pandemic of COVID-19, which led to lockdowns across the world and has a significant economic impact across several industries. This has led to a non-adjusting post balance sheet event where the effects to the charity will not be adjusted for as at 31 December 2020. The main effects are predicted to be in the valuation of investments and the future donations made to the charity, however an estimate on the financial effect of COVID-19 cannot be reliably made. ## **22 Related party transactions** ## **Remuneration of key management personnel** The remuneration of key management personnel is as follows. |Aggregate compensation
23
**Analysis of changes in net funds**
The Charity had no debt during the year.
**24**
**Cash generated from operations**
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Gain on disposal of investments
Fair value gains and losses on investments
Depreciation and impairment of tangible fixed assets
Movements in working capital:
Decrease in debtors
(Decrease)/increase in creditors
**Cash (absorbed by)/generated from operations**|**2020**
**2019**
**£**
**£**
350,400
284,870
**2020**
**2019**
**£**
**£**
326,163
1,873,985
(256,608)
(279,922)
(106,989)
(1,174,921)
(26,128)
-
11,469
-
27,413
23,619
(21,571)
21,244
(46,251)
464,005| |---|---| - 27 -