Annual Report and Financial Statements For the year ended 31 December 2020 Registered Charity No. 290350 

Find more information about who we are and what we do at: 

**cieh.org** 



> CIEH Annual Report 2020 2 

## Contents 

- 3 Trustees’ Annual Report 

- 12 Independent Auditors’ Report 

- 15 Consolidated Statement of Financial Activities 

- 16 Balance Sheets 

- 17 Consolidated Cash Flow Statement 

- 18 Notes to the Financial Statements 

- 38 About CIEH 

- 38 Advisers 

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## Trustees’ Annual Report 

The Board of Trustees present their report together with the Audited Financial Statements for the year ended 31 December 2020.. 

## **Objectives and activities** 

The Charitable Objects of CIEH are to promote for the public benefit the theory and science of environmental health in all its aspects and the dissemination of knowledge about environmental health. 

To support the delivery of our corporate strategy, “Growth with Purpose”, the Board of Trustees has agreed the following corporate objectives: 

- Ensure that CIEH is recognised as the voice of the environmental health profession by its members, stakeholders, key decisionmakers and the public 

- Build on our existing membership base, whilst increasing the number and diversity of environmental health professionals joining CIEH 

- Provide multiple pathways into the profession and support a wide range of practitioners to transition into, or progress through, their environmental health career 

- Create and maintain a professional, collaborative and inclusive culture. 

We have referred to the information contained in the Charity Commission‘s general guidance on public benefit when reviewing our aims and objectives and when planning our programme of activities.  The activities of CIEH are outlined in this report and further details can be found in our Annual Review which is available to download from our website. 

## **Achievements and performance** 

The last year saw our members rally around the flag and support our profession during the pandemic. 

We were delighted to welcome 800 new members to CIEH, and to see the first 23 members to successfully complete the Chartered Practitioner programme, becoming Chartered Environmental Health Practitioners. We celebrated this with an online graduation ceremony in December. 

We are passionate about promoting our members and reaching out to the next generation of EHPs. In August 2020, we launched the #ChooseEnvironmentalHealth campaign to coincide with the announcement of A-Level and GSCE results in England. Its aim was to raise awareness of environmental health as a rewarding career choice, with a particular focus on encouraging more 16 to 19 yearolds to pursue environmental health degrees.  It built on the format and success of the previous “What is environmental health?” campaign, for which we were delighted to win the Best Video Award at the Association Awards 2020. 

Using social media to reach the target audience, we signposted to fresh content including new career stage webpages, video soundbites from recent graduates, and an online careers fair aimed 

at students considering their 2021 UCAS applications. Following World Environmental Health Day on 26 September, we also **• 800 new members** targeted those considering changing their career to environmental **• 7,211 members** health with a short video interview and a pre-recorded webinar of **•** inspirational EHPs who had done just that. **•** 

- **1,930 members with Chartered Status** 

- **Members by grade: Affiliate 17%, Associate 8%, Member 69%, Fellow 2%, Honorary 4%** 

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The change in landscape caused by COVID-19 has posed a significant challenge to our flagship events programme. With faceto-face meetings and events being seriously curtailed throughout the year, we have worked closely with our members to create a comprehensive and accessible series of webinars and learning opportunities dedicated to addressing the key issues facing our profession. It has allowed us to bring expert opinion and frontline experience together on a platform that ensures full accessibility for members across the United Kingdom. 

- **Over 80 online events delivered** 

- **3 headline conferences** Although positive news on vaccines and a roadmap to end to 

- **• 1,583 delegates** lockdown give us hope that life might return to normal later in the year, we expect social distancing measures and restrictions to continue to seriously affect our networking and events programme 

in the first half of 2021. However, this has the immediate benefit of reducing travel for members and substantially lowering our impact on the environment which has always been a key goal for CIEH. 

Our successful “CIEH-conversations” webinar programme continues to grow, and we are now committed to delivering at least 12 over the course of the next year, completely free to members. 

We will also continue to deliver essential legislative updates and access to expertise from our trainers in key aspects of environmental health. We have converted the majority of our technical workshops to online delivery and are excited about a new range of courses and content for 2021 that we will be able to offer. Our innovative online bitesize training events are great examples of our new approach and have proved very popular. 

In 2019 we continued to broaden the routes into our profession. In the spring we launched a new streamlined Chartered Practitioner **• 225 practitioners on our Chartered** Programme for those with the EHRB certificate of registration. We **Practitioner programme** also supported the launch of the new BSc Environmental Health **• 221 final EHRB Certificates of Registration** Practitioner apprenticeship in the summer, which gained the **• 9 Recognised Partner Universities** maximum £22,000 funding per apprentice. 

- **221 final EHRB Certificates of Registration** 

- **• 9 Recognised Partner Universities** 

Work commenced on the development of our new Advanced Professional Certificate in Food Hygiene and Standards Controls to ensure that food enforcement remains a key part of the work our 

members do. In addition, we also worked with members to develop a new way of accrediting University degree courses to ensure that future practitioners remain relevant and competent.  In the autumn we celebrated the success of both University graduates and newly Chartered practitioners at our first Graduation ceremony. 

We worked with the Food Standards Agency to created training material for Imported Food Training Development ‘Legislation and Enforcement’.  We continued to invest in our learning products launching a new food allergen awareness training course under our 

flexible work-based learning programme and we continued to invest in our elearning courses updating these with new designs and certificates. 

- **65 appearances in print and online national media** 

- **132 appearances in regional media across the UK** 

The COVID-19 pandemic deeply impacted CIEH’s external affairs and advocacy strategies.  In the face of a rapidly changing landscape, we undertook a full review of our campaigning goals and priorities in order to thrive in the new environment. 

- **11 consultation responses** 

- **4 flagship policy reports** 

- **6 parliamentary briefings** 

The role of environmental health in supporting government efforts to tackle COVID-19 has led to an increased profile for the profession and a better understanding of environmental health in general. We have endeavoured to build on this and demonstrate both the value of environmental health to government and society, and increase CIEH’s influence with key decision makers. 

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We have become more streamlined, nimble, and flexible, in our policy and external affairs activity, allowing us to significantly raise the profile of the profession and our influencing capabilities. The media coverage we have achieved over the last 12 months is testament to the success of our approach. We secured coverage across the political spectrum in both print and online national outlets, such as the BBC, the Daily Mail, and The Guardian, alongside broadcast, trade, and regional media. 

In addition to cultivating our media profile, we have worked closely with MPs, Peers, and government departments, to influence key legislation, on wide-ranging issues such as the Trade Bill, the Environment Bill, cosmetics, noise, and the Food Law Code of Practice, both at a UK level and in the devolved administrations. 

We have worked hand-in-hand with CIEH members on our policy panels to create parliamentary briefings, flagship policy reports, and respond to a multitude of government consultations. 

Our work on housing has seen us gain a seat on the Ministry of Housing Communities and Local Government (MHCLG) project board for the second phase of the Housing Health and Safety Rating System (HHSRS). 

We have also successfully worked in partnership with other charities and organisations to advance the cause of environmental health. We have worked with the Healthy Air Campaign coalition of charities to campaign on air quality, we joined the newly created Renters Reform Coalition to campaign for more security and better standards of housing, and we launched our pivotal cosmetics reports in partnership with the Institute of Licensing. 

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## **Financial review** 

## **Highlights** 

Like many other organisations up and down the country, in 2020 business operations were impacted by the global pandemic.  The implementation of social distancing measures due to COVID-19 and the resultant reduction in face to face activities understandably led to a temporary drop in income most noticeably for our trading subsidiary CIEH Ltd which necesitated targeted reduction in planned areas of key expenditure.  The subsidiary’s trading results were a loss of £0.5m (2019: £0.07m profit) as shown in note 2 to the financial statements. 

Key financial highlights include: 

- group operating loss of £1m compared to prior year loss of £0.8m 

- total income of £4.2m reduced from the previous year’s figure of £5.3m 

- total expenditure of £5.3m reduced from the previous year’s figure of £6.1m 

As we look ahead to the future, our focus will be on building on viable opportunities for growth which will result in improved financial performance in the medium to long term. 

## **Income and expenditure** 

The consolidated results for the year show that we continue to make great strides in improving our financial performance despite the ongoing challenges presented by the COVID-19 global pandemic. Our net expenditure exceeded income by £1m (2019: £0.8m).  The income breakdown is shown in the chart below: 


**----- Start of picture text -----**<br>
3 %<br>3 % Investments income<br>Income analysis  2020 Government<br>funding<br>38 %<br>Subscription & Membership<br>income<br>29 %<br>Commercial trading<br>income<br>6 %<br>Conferences<br>income<br>21 %<br>Education<br>income<br>**----- End of picture text -----**<br>


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Subscriptions and membership income continues to play an important part in funding the services of CIEH and represents 38% of the overall income of the organisation. 

Income from education activities fell to £0.8m (2019: £1.1m), conferences fell to £0.3m (2019: £0.5m), commercial trading fell to £1.2m (2019: £1.6m), Coronavirus job retention scheme/furlough grant income rose to £0.1m (2019: £Nil), investments fell to £0.1m (2019: £0.2m). 

Expenditure on charitable activities fell to £4.8m (2019: £5.3m) and expenditure on raising funds fell to £0.5m (2019: £0.8m). Key cost reduction measures included placing 40% of staff on furlough and for retained staff not on furlough implementing a reduced working week for three months during which time staff salaries were also reduced by 20%. 

## **Balance sheet** 

Total funds for the Group stand at £9.9m (2019: £11.2m) with the movement predominantly being due to operating loss of £1m, investment gain of £2.3m and pension scheme actuarial loss of £2.6m.  Further details of which are set out in notes 9 and 12 to the financial statements. 

Debtors increased marginally to £1.3m (2019: £1.2m) whilst creditors increased to £2m (2019: £1.5m). 

## **Investments and reserves** 

Cazenove Capital Management (an operating division of Schroder & Co) advise the Board of Trustees in the construction of a suitable investment portfolio, and manage the investment into specific funds to be held within the portfolio. Cazenove ensure that investments are made into funds that follow good corporate social responsibility and that Environmental, Social and Governance (ESG) issues are considered by the organisations in which investments were made.   In addition, an explicit ethical restriction applies to the fund excluding all direct investments in tobacco. 

The strategic target of the fund is to achieve a long term return of 4% above inflation with a risk profile of less than 5% probability of making a capital loss exceeding 10% of the portfolio value within any one year. 2020 was an extraordinary year for investment markets. We saw the value of our investment fund decrease over the year by 1% (2019: gain of 13.4%) with underlying volatility caused by the global pandemic and its impact on economic outlook, the US elections as well as the end of the Brexit transition period. 

CIEH conducts an annual review of its reserves, which encompasses the nature of the income and expenditure streams, the need to match variable income with long term commitments and the nature of the reserves. Total funds as at 31 December 2020 were £9.9m (2019: £11.2m) represented by unrestricted general funds of £17.0m (2019: £15.3m) and a pension fund deficit of £7.1m (2019: £4.1m).  The pension fund is a long term funding issues that does not impact on day to day funding requirements. 

The reserves policy agreed by the Board of Trustees is to hold at least six months’ expenditure within general funds and based upon the 2020 results, this figure is £2.6m (2019: £3.1m).  Our current liquid funds, at the end of 2020, stand at £6.2m being listed investments of £5m along with cash and cash equivalents of £1.2m. 

## **Going concern** 

The Board of Trustees having carefully reviewed the financial position of CIEH Group, including the financial projections for 2021 and 2022, are sastisfied that there are sufficient funds at the date of signature of the financial statements to manage any foreseeable downturn in the UK and global economy.  The Board having reflected on the level of liquid reserves held also considers that there is a reasonable expectation that CIEH has adequate resources to continue in operational existence for the foreseeable future and for these reasons the Board of Trustees continues to adopt the going concern basis in preparing the financial statements. 

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## **Subsidiaries** 

CIEH is the sole member and owns the entire issued share capital of its subsidiary, CIEH Ltd.  Further details of the financial performance of CIEH Ltd are disclosed in note 2 to the Consolidated Statement of Financial Activities. 

## **Management of risk** 

Good risk management is fundamental to the sustainability of CIEH although it should be recognised that it is impossible to eliminate all risk in an activity.  The role of risk management is to identify the key risks facing the organisation and plan how these can be mitigated through specific measures.  Overall responsibility for risk management rests with the Board of Trustees who manage the process through formal reviews at board meetings and through the Risk and Audit committee.  Day to day responsibility is delegated to the Executive Team who identify and evaluate risks that relate to their areas and manage the mitigation plans accordingly. 

The key risks to the organisation and the principal processes in place to manage these risks are set out in the table below: 

|**Risk**|**Key controls and mitigations**|
|---|---|
|**Membership**<br>Membership retention levels fall due to poor<br>member engagement or renewal process<br>difficult for members.<br>**Professional Development**<br>New qualification pathway having significant<br>gaps leading to stakeholder needs not being<br>met.<br>**Financial**<br>Erosion of CIEH reserves by deficit trading or<br>poor investment performance.<br>Pension funding risks where there is a shortfall<br>in defined benefit pension fund.<br>**Voice and influence**<br>Volatile political landscape adversely impacting<br>our policy and campaigning or membership<br>dissatisfied with policy position.<br>**Business Transformation**|Engagement with members and the broader professional community has improved with<br>an increase in the quality and quantity of online events.  The CIEH business plan will<br>continue to support enhanced engagement activity, together with significant additional<br>outreach activity by senior staff and members.<br>Inclusive engagement with stakeholders so appropriate feedback mechanisms help<br>inform shape of qualification pathway.<br>Medium-term financial strategy in place to deliver surplus trading position during 2022.<br>Investment strategy has been reviewed with a balanced approach adopted in line with<br>agreed risk profile.<br>Engagement with LPFA who administer the fund along with provision of security<br>covenant for any pension scheme deficits.<br>Closely monitoring political developments, building in flexibility to campaign planning<br>allowing us to react quickly to deliver clear, effective and targeted campaigns.|
|Inability to adapt organisational structure to|Business activity reviews regularly undertaken ensuring improved collaboration across the|
|support strategy programme.|organisation.|
||Enhanced management training and support systems being implemented.|
|Technology compliance breach and cyber|Security programme in place covering identification of staff knowledge, targeted training|
|security risks including loss of data and breach|and ongoing testing of security measures. Improvements in updating and patching|
|of regulations including GDPR and PCI DSS.|systems.  Insurance cover also in place to help mitigate financial impact of breach.  Data|
||cleansing exercise undertaken to ensure compliance with agreed data retention policies.|



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## **Looking to the future** 

With new leadership now in place, CIEH can look to the coming year with confidence and a renewed sense of purpose. Together with our new CEO, President, and Chair, we will continue the task of evolving the organisation to ensure that it continues to both survive and thrive in this radically altered landscape. 

We will be reviewing our corporate strategy, assessing where best to commit resource, and evaluating opportunities to move our organisation forward. All of this is essential if we are to safeguard our heritage and ensure that we remain the voice of environmental health for years to come. 

Cultivating a deeper understanding of our profession, and its standing with government and key stakeholders, is integral to realising this ambition. To this end, we have been conducting a comprehensive workforce survey which aims to gather information on the state of the environmental health workforce in local authorities, private and third sectors. We hope to publish the results of this survey in spring 2021. 

COVID-19 will inevitably continue to dominate many aspects of our activity in 2021, and we will continue to support our members and work with government to ensure that environmental health helps to shape plans as we look to move out of lockdown, hopefully for the last time. 

There is also a substantial opportunity to build on the increased profile environmental health has had throughout the pandemic, and we will be exploring how best we can consolidate our position and ensure that our profession has a permanent place near the top of government. The work our new President is doing on calling for a Chief Environmental Health Officer for England is a key strand of this. 

However, COVID-19 cannot be our sole focus.  Our campaigning activity will build on our successes over the last 12 months, with environmental protection, housing, cosmetics, and food standards, once again forming the core of our focus. The impact of Brexit on trade, food, and environmental standards, is substantial, as are the FSA’s proposed changes to food competence and the Food Law Code of Practice, and we will continue to work closely with members to influence developments. 

We also remain passionate about working with our members to shape our qualifications, and routes to qualification, and to ensure that our learning and development opportunities are absolutely right for our profession. We are excited about taking this forward into the new year. Our qualifications will be complemented by a new accessible and modern Registration process for Environmental Health Practitioners that alongside Chartered Status will be the hallmark of professionalism and competence. 

2021 is going to be another year of change for CIEH, but we remain absolutely committed to keeping our members at the heart of everything we do. There are many challenges, but also a great number of opportunities. 

## **Structure, governance and management** 

In the United Kingdom, each member of CIEH has been allocated a geographic region, referred to as a Hub, based on the former boundaries of the English regional government offices and the Countries of Wales, Scotland and Northern Ireland.   All members have access to both the local Hubs and CIEH specialist communities. 

The Board of Trustees is the governing body for CIEH and determines the overall direction and development of the organisation.  The Board of Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations. 

The Board of Trustees is composed of six trustees elected by CIEH members, up to six appointed by the Board (on the recommendation of the Appointments and Remuneration Committee) and the President.  It is the ultimate decision making body for the operation of the charity. There are two committees, Risk & Audit and Appointments & Remuneration, reporting through to the Board of Trustees along with two advisory groups, Membership & the Profession and Learning & Qualifications. 

As part of their induction programme new trustees are made aware of their responsibilities including an introduction to the objectives, scope and policies of the charity, the use of charitable funds and in addition they are provided with further information on their legal duties as set out in detailed Charity Commission reference materials. Further updates are provided to all trustees during the year as and when required. 

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The Risk and Audit Committee is responsible for overseeing the management of risks arising from all CIEH activities to ensure the charity fulfils its strategic aims and objects. It agrees the audit strategy with the external auditors, receives their management letter and ensures that issues are resolved through the risk management process. 

The Appointments & Remuneration Committee has been established to assist the Board of Trustees in reviewing board composition (including skills, knowledge and experience), recommending the remuneration package of the CEO, reviewing the overall human resources strategy and ensuring that the remuneration policy for the organisation is in line with market practices. 

## **Statement of Trustees’ Responsibilities** 

Charity law requires the trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group for that period. 

In preparing these financial statements, the Board of Trustees are required to: 

- select suitable accounting policies and then apply them consistently 

- make judgements and accounting estimates that are reasonable and prudent 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements 

- observe the methods and principles in the Charities SORP and 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. 

The Board of Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements. 

## **Auditors** 

Haysmacintyre LLP have indicated their willingness to continue in office and will be proposed for reappointment at a meeting of the Board of Trustees. 

## **Statement as to disclosure of information to our auditors** 

In the case of each of the persons who are trustees of the charity at the date when this report was approved: 

- so far as each of the trustees is aware, there is no relevant audit information of which the charity’s auditors are unaware; and 

- each of the trustees has taken all the steps that he or she ought to have taken as a Trustee to make himself or herself aware of any relevant audit information and to establish that the charity’s auditors are aware of that information. 

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## **Reference and administrative details** 

**Name:** The Chartered Institute of Environmental Health is also known as CIEH **Constitution:** CIEH was granted a Royal Charter on 27 July 1984 **Status:** CIEH is a registered charity **Number:** 290350 **The registered office is:** Chadwick Court, 15 Hatfields, London SE1 8DJ **Contact details are:** Tel: 020 7827 5800 Fax: 020 7827 5862 Email: membership@cieh.org 

## **Trustees** 

The names of each member of the Board of Trustees are listed on page 38. 

## **Funds held as custodian trustee on behalf of others** 

CIEH holds funds as custodian trustee on behalf of others as disclosed in note 20. These funds are excluded from this report. 

## **Employees and Members** 

The Board of Trustees would like to take this opportunity to thank all CIEH employees and all its volunteer members involved in running its Hubs and special interest groups throughout the UK for their efforts in furthering the aims and objectives of the organisation. 

## **By order of the Board of Trustees Terenja Humphries** 

____________________ 

27 May 2021 

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## Independent Auditors’ Report To The Trustees Of The Chartered Institute Of Environmental Health 

## **Opinion** 

We have audited the financial statements of the Chartered Institute of Environmental Health for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities, the Charity and Group Balance Sheets, the Consolidated 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, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice). 

In our opinion, the financial statements: 

- give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31 December 2020 and of the group’s net movement in funds for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **Basis for opinion** 

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.  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 Auditor’s responsibilities for the audit of financial statements section of our report.  We are independent of the group 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 group/charity’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. 

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## **Other information** 

The trustees are responsible for the other information. The other information comprises the information included in the Trustees’ Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.  We have nothing to report in this regard. 

## **Matters on which we are required to report by exception** 

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion: 

- adequate accounting records have not been kept by the parent charity; or 

- sufficient accounting records have not been kept:or 

- the parent charity financial statements are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## **Responsibilities of trustees for the financial statements** 

As explained more fully in the trustees’ responsibilities statement set out on page 8, the trustees 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 group’s and the parent charity’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 group or the parent charity or to cease operations, or have no realistic alternative but to do so. 

## **Auditor’s responsibilities for the audit of the financial statements** 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but 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. 

Irregulaties, including fraud are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.  The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: 

Based on our understanding of the group and the environment in which it operates, we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Act 2011, the Charity’s Royal Charter, payroll tax and sales tax. 

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We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Audit procedures performed by the engagement team included: 

- Inspecting correspondence with regulators and tax authorities 

- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud 

- Evaluating management’s controls designed to prevent and detect irregularities; 

- Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and 

- Challenging assumptions and judgements made by management in their critical accounting estimates 

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 auditor’s report. 

## **Use of our report** 

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an Auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body for our audit work, for this report, or for the opinions we have formed. 


**Haysmacintyre LLP Statutory Auditors** 27 May 2021 

**10 Queen Street Place, London, EC4R 1AG** 

Haysmacintyre LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 

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> CIEH Annual Report 2020 15 

## Consolidated Statement of Financial Activities 

## (SoFA) (Incorporating an Income and Expenditure Account) 

## **for the year ended 31 December 2020** 

## **Group** 

|**2020**<br>**2019**<br>**Unrestricted funds**<br>Unrestricted funds<br>Note<br>**£’000**<br>£’000<br>**Income from charitable activities**<br>Subscription and membership<br>3<br>**1,598**<br>1,789<br>Education<br>3<br>**875**<br>1,116<br>Conferences<br>3<br>**263**<br>548<br>Regions<br>3<br>**6**<br>27<br>**Income from other trading activities**<br>Commercial trading<br>3<br>**1,220**<br>1,601<br>**Other income**<br>Grants<br>3<br>**144**<br>-<br>**Income from investments**<br>Investments<br>3/12.1<br>**141**<br>208<br>**Total income and endowments**<br>**4,247**<br>5,289<br>**Expenditure**<br>Expenditure on charitable activities<br>Subscription and membership<br>4<br>**2,433**<br>2,424<br>Education<br>4<br>**1,545**<br>1,460<br>Conferences<br>4<br>**787**<br>1,400<br>Regions<br>4<br>**4**<br>16<br>**Expenditure on raising funds**<br>Commercial trading operations<br>4<br>**529**<br>759<br>Investment management fee<br>4<br>**32**<br>43<br>**Total expenditure**<br>**5,330**<br>6,102<br>**Net expenditure for the year before gains /(losses)**<br>**(1,083)**<br>(813)<br>(Loss) / gain on investments<br>12.1<br>**2,344**<br> 11,271<br>**Net movement in funds before defined**<br>**benefit scheme gain**<br>**1,261**<br>10,458<br>Pension scheme – actuarial loss<br>9<br> **(2,617)**<br>393<br>**Net movement in funds**<br>**(1,356)**<br>10,851<br>Funds brought forward at 1 January<br>**11,280**<br>429<br>**Funds carried forward at 31 December**<br>**9,924**<br>11,280|**2020**<br>**2019**<br>**Unrestricted funds**<br>Unrestricted funds<br>Note<br>**£’000**<br>£’000<br>**Income from charitable activities**<br>Subscription and membership<br>3<br>**1,598**<br>1,789<br>Education<br>3<br>**875**<br>1,116<br>Conferences<br>3<br>**263**<br>548<br>Regions<br>3<br>**6**<br>27<br>**Income from other trading activities**<br>Commercial trading<br>3<br>**1,220**<br>1,601<br>**Other income**<br>Grants<br>3<br>**144**<br>-<br>**Income from investments**<br>Investments<br>3/12.1<br>**141**<br>208<br>**Total income and endowments**<br>**4,247**<br>5,289<br>**Expenditure**<br>Expenditure on charitable activities<br>Subscription and membership<br>4<br>**2,433**<br>2,424<br>Education<br>4<br>**1,545**<br>1,460<br>Conferences<br>4<br>**787**<br>1,400<br>Regions<br>4<br>**4**<br>16<br>**Expenditure on raising funds**<br>Commercial trading operations<br>4<br>**529**<br>759<br>Investment management fee<br>4<br>**32**<br>43<br>**Total expenditure**<br>**5,330**<br>6,102<br>**Net expenditure for the year before gains /(losses)**<br>**(1,083)**<br>(813)<br>(Loss) / gain on investments<br>12.1<br>**2,344**<br> 11,271<br>**Net movement in funds before defined**<br>**benefit scheme gain**<br>**1,261**<br>10,458<br>Pension scheme – actuarial loss<br>9<br> **(2,617)**<br>393<br>**Net movement in funds**<br>**(1,356)**<br>10,851<br>Funds brought forward at 1 January<br>**11,280**<br>429<br>**Funds carried forward at 31 December**<br>**9,924**<br>11,280|**2020**<br>**2019**<br>**Unrestricted funds**<br>Unrestricted funds<br>Note<br>**£’000**<br>£’000<br>**Income from charitable activities**<br>Subscription and membership<br>3<br>**1,598**<br>1,789<br>Education<br>3<br>**875**<br>1,116<br>Conferences<br>3<br>**263**<br>548<br>Regions<br>3<br>**6**<br>27<br>**Income from other trading activities**<br>Commercial trading<br>3<br>**1,220**<br>1,601<br>**Other income**<br>Grants<br>3<br>**144**<br>-<br>**Income from investments**<br>Investments<br>3/12.1<br>**141**<br>208<br>**Total income and endowments**<br>**4,247**<br>5,289<br>**Expenditure**<br>Expenditure on charitable activities<br>Subscription and membership<br>4<br>**2,433**<br>2,424<br>Education<br>4<br>**1,545**<br>1,460<br>Conferences<br>4<br>**787**<br>1,400<br>Regions<br>4<br>**4**<br>16<br>**Expenditure on raising funds**<br>Commercial trading operations<br>4<br>**529**<br>759<br>Investment management fee<br>4<br>**32**<br>43<br>**Total expenditure**<br>**5,330**<br>6,102<br>**Net expenditure for the year before gains /(losses)**<br>**(1,083)**<br>(813)<br>(Loss) / gain on investments<br>12.1<br>**2,344**<br> 11,271<br>**Net movement in funds before defined**<br>**benefit scheme gain**<br>**1,261**<br>10,458<br>Pension scheme – actuarial loss<br>9<br> **(2,617)**<br>393<br>**Net movement in funds**<br>**(1,356)**<br>10,851<br>Funds brought forward at 1 January<br>**11,280**<br>429<br>**Funds carried forward at 31 December**<br>**9,924**<br>11,280|
|---|---|---|
||**875**|1,116|
||**263**|548|
||**6**|27|
||||
||||
||**1,220**|1,601|
||||
||||
||**144**|-|
||||
||||
||**141**|208|
||||
||**4,247**|5,289|
||||
||||
||||
||**2,433**|2,424|
||**1,545**|1,460|
||**787**|1,400|
||**4**|16|
||||
||||
||**529**|759|
||**32**|43|
||||
||**5,330**|6,102|
||||
||**(1,083)**|(813)|
||**2,344**<br>|11,271|
||||
||**1,261**|10,458|
||**(2,617)**|393|
||||
||**(1,356)**|10,851|
||**11,280**|429|
||||
||**9,924**|11,280|
||||



None of the CIEH’s or the group’s activities were acquired or discontinued during the above two financial years. There were no recognised gains or losses other than those shown above. 

The notes on pages 18 to 38 form an integral part of these financial statements. 

CIEH Annual Report 2016 **15** CIEH Annual Report 2020 

**Page 15** of 38 



> CIEH Annual Report 2020 16 

## Balance Sheets 

## **as at 31 December 2020** 

|**2020**<br>Note<br>**£’000**<br>**Fixed assets**<br>Intangible fixed assets<br>10<br>**244**<br>Tangible fixed assets<br>11<br>**2,853**<br>Investments<br>12.1<br>**23,122**<br>**26,199**<br>**Current assets**<br>Stocks<br>**15**<br>Debtors<br>14<br>**1,313**<br>Cash at bank and in hand<br>**1,503**<br>**2,831**<br>**Creditors:**amounts falling<br>due within one year<br>15(i)<br> **(1,976)**<br>**Net current assets**<br>**855**<br>**Total assets less current liabilities**<br>**27,054**<br>**Creditors:**amounts falling due<br>after more than one year<br>15(ii)<br>**(10,010)**<br>**Total net assets before pension deficit**<br>**17,044**<br>Defined benefit pension scheme<br>liability<br>9<br>**(7,120)**<br>**Total net assets**<br>**9,924**<br>**Funds and reserves**<br>Unrestricted general funds<br>16<br>**17,044**<br>Pension fund<br>16<br>**(7,120)**<br>**Total funds**<br>16<br>**9,924**||**Group**<br>2019<br>**2020**<br>£’000<br>**£’000**<br>244<br>**60**<br>2,970<br>**2832**<br>21,671<br>**23,122**<br>24,885<br>**26,013**<br>24<br>**–**<br>1,187<br>**1,503**<br>407<br>**1,491**<br>1,618<br>**2,994**<br>(1,517)<br>**(1,680)**<br>101<br>**1,314**<br>24,986<br>**27,328**<br>(9,613)<br>**(10,010)**<br>15,373<br>**17,318**<br>(4,093)<br>**(7,120)**<br>11,280<br>**10,198**<br>15,373<br>**17,318**<br>(4,093)<br>**(7,120)**<br>11,280<br>**10,198**|**CIEH**|
|---|---|---|---|
||||2019<br>£’000<br>-<br>2,957<br>21,671|
||||24,628<br>–<br>906<br>399|
||||1,305<br>(1,234)|
||||71|
||||24,699<br>(9,613)|
||||15,086<br>(4,093)|
||||10,993|
||||15,086<br>(4,093)|
||||10,993|
|||||



The notes on pages 18 to 38 form an integral part of these financial statements. 

**Approved and authorised for issue on behalf of the Board of Trustees on 27 May 2021** 

**Terenja Humphries,** Chair, Board of Trustees 

**Daniel Oerther,** Deputy Chair, Board of Trustees 

CIEH Annual Report 2016 **16** CIEH Annual Report 2020 

**Page 16** of 38 



17 

CIEH Annual Report 2020 

## Consolidated Cash Flow Statement 

**for the year ended 31 December 2020** 

|Note<br>**Cash flow**<br>**from operating activities**<br>18<br>**Cash flow from**<br>**investing activities**<br>Purchase of intangible assets<br>10<br>Purchase of tangible assets<br>11<br>Cash withdrawal from investments<br>12.1<br>**Net cash provided by investing activities**<br>**Cash flows from**<br>**financing activities**<br>Capital element of finance lease rentals<br>Other loans<br>**Net cash provided by financing activities**<br>**Change in cash and cash**<br>**equivalents in year**<br>**Cash and cash equivalents at beginning of year**<br>**Cash and cash equivalents at end of year**|**2020**<br>**£’000**<br>**£’000**<br>£’000<br>**(151)**<br>**(103)**<br>(53)<br>**(48)**<br>(313)<br>**1,000**<br>1,050<br>**849**<br>**(2)**<br>(3)<br>**400**<br>-<br>**398**<br>**1,096**<br>**407**<br>**1,503**|**2019**|
|---|---|---|
|||£’000<br>(791)<br>684<br>(3)|
|||(110)<br>517|
|||407|
||||



The notes on pages 18 to 38 form an integral part of these financial statements. 

CIEH Annual Report 2016 **17** CIEH Annual Report 2020 

**Page 17** of 38 



> CIEH Annual Report 2020 18 

## Notes to the Financial Statements 

## **for the year ended 31 December 2019** 

## **1 Accounting Policies** 

## **1.1 Basis of accounting** 

The financial statements have been prepared under the historical cost convention, with the exception of investments, which are included at their market value at the balance sheet date. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities (SORP 2015), the Charities Act 2011 and applicable accounting standards (FRS102). 

## **1.2 Going concern** 

The ongoing COVID-19 pandemic necessitated a review the Charity’s finances with a medium term strategy in place to deliver a surplus trading position during 2022. 

After reviewing the group’s forecasts and projections, the Board of Trustees have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. 

As stated in the Trustee’s Annual Report, Trustees believe there are no material uncertainties that call into doubt the Group and the Charity’s ability to continue as a going concern. The group therefore continues to adopt the going concern basis in preparing its accounts. 

## **1.3 Leasehold property** 

On 20 December 2013, CIEH entered into a sale and leaseback agreement on the charity’s property, Chadwick Court, located at 15 Hatfields, London. The property is held by the charity under a 150 year long leasand has been classified as a long leashold property. 

The Board of Trustees considers that the risks and rewards of ownership rest with the charity and consequently account for the long-leashold as a finance lease. The property is split beween investment property, measured at fair value (see  note 12), and tangible fixed assets, measured on a cost basis (see note 11). For the tangible fixed asset element, depreciation is charged over its revised useful economic life of 150 years on a straight line basis. 

## **1.4 Other fixed assets** 

## Intangible fixed assets: 

Intangible fixed assets are measured at cost less accumulated depreciation, and any accumulated impairment losses. 

## Both software and course 

development costs are recognised as intangible assets when supplied by a third party. No depreciation is charged on assets under construction but computer software costs  are transferred from under construction to assets when the software comes into use. At that point in time they start to be depreciated. 

Depreciation is charged so as to allocate the cost of intangible assets less their residual values over their estimated useful lives, using the straight-line method. The principal rate for computer software and course development is 33%. 

Both computer software and course development, which are expected to generate future revenues and meet the other criteria allowable under FRS102 s18 ‘Intangible Assets other than goodwill’ have been capitalised as appropriate. 

## Tangible fixed assets: 

Tangible fixed assets are depreciated or amortised on a straight line basis to write off the cost of these assets over their estimated useful lives. The principal rates are: 

Fixtures & Fittings 20% Office equipment 33% Computer hardware 33% 

Assets under construction are transferred to fixtures and fittings when they come into use and at that point in time they are depreciated. 

## **1.5 Stocks** 

Stocks of publications and course material are stated at the lower of cost or net realisable value, after making due allowance for obsolete and slow moving items. 

All stock items are finished goods held for resale. 

## **1.6 Expenditure** 

All expenditure is accounted for on an accruals basis, inclusive of any VAT which cannot be recovered. Any VAT which is not recoverable by CIEH is included in allocated support costs, see note 5. 

Direct expenditure is directly allocated to specific activities and has been included in those cost categories. Indirect costs, which are attributable to more than one activity, are apportioned across cost categories on the basis of the direct usage in the various categories. 

Governance costs relate to the general running of the charity as opposed to those costs associated with income generation or charitable activity. These costs include Board of Trustee costs, audit costs and other strategic management costs, see note 6. 

## **1.7 Income and endowments** 

Subscriptions and membership fees are accounted for on an accruals basis. No income is accrued in relation to unpaid subscriptions at the year-end. Amounts received in advance are deferred to the period to which they relate. 

Education income is accounted for on an accruals basis in respect of professional exams and public training courses. 

Conference income is accounted for on an accruals basis and is generated from the delivery of CIEH events to its members and the public, as well as from the hire of its facilities (conference and meeting rooms), including the provision of catering, equipment and related services. 

Grant income received during the year relate to the coronavirus job retention scheme (CJRS) and is recognised in the period which the grant was awarded. 

Commercial trading income is accounted for on an accruals basis and mainly represents income generated from our conference venue 15Hatfields.  Rents receivable are accounted for on an accruals basis. 

CIEH Annual Report 2016 **18** 

**Page 18** of 38 

CIEH Annual Report 2020 



> CIEH Annual Report 2020 19 

## Notes to the Financial Statements _continued_ 

## **for the year ended 31 December 2020** 

## **1.8 Research and development** 

Research and development expenditure for products is charged to the Consolidated Statement of Financial Activities in the year in which it is incurred. 

## **1.9 Operating leases** 

Rentals paid under operating leases are included in the Consolidated Statement of Financial Activities on a straight line basis over the term of the lease. 

## **1.10 Finance leases** 

The obligations under the finance lease for Chadwick Court is carried at amortised carrying value using the ‘effective interest method’, which allocates the interest expense over the period to maturity at a constant rate on the balance of the liability carried in the balance sheet for the relevant period. 

## **1.11 Pensions** 

CIEH operates a **defined benefit pension** scheme. The scheme was reopened to new members from 1 May 2014, operating as CIEH’s nominated scheme as part of Auto Enrolment. The amounts charged in resources expended are the current service costs. Gains and losses on settlements and curtailments are included as part of staff costs. Vested past service costs are recognised immediately in the Consolidated Statement of Financial Activities. The interest cost and the expected return on assets are charged to net finance charges within support costs. Actuarial gains and losses are recognised immediately as ‘Actuarial Losses’. 

The defined benefit scheme is funded, with the assets of the scheme held separately from those of the group, in separate trustee-administered funds. The pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent currency and term to the scheme liabilities. 

Actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The resulting defined benefit asset or liability, net of the related deferred tax, is presented separately after other net assets on the face of the balance sheet. 

CIEH also operates a **defined contribution** scheme and the amount charged to the Consolidated Statement of Financial Activities in respect of pension costs and other post-retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet. 

## **1.12  Fund accounting** 

**General funds** are unrestricted funds which are available for use at the discretion of the Board of Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. 

## **1.13  Investments** 

Profit or loss on investment is recognised in the Consolidated Statement of Financial Activities on a cash receivable basis. 

Investments are stated at market value at the balance sheet date. Investment property has been valued on a net initial yield basis. 

A gain or loss is “realised” when the disposal proceeds of investments (at market value) is different from its value at the start of the year. 

A gain or loss is “unrealised” when the market value of an investment at the end of the year is different from its value at the start of the year (or from the date it was purchased during the year). 

## **1.14  Financial instruments** 

The group and charity only holds financial instruments which qualify as basic financial instruments in accordance with section 11 of FRS102. Assets such as trade and other receivables, and liabilities such as trade and other creditors are measured at amortised cost. Listed investments are measured at fair value. 

The group and charity do not hold any financial instruments measured at fair value other than the listed investments disclosed in note 12.1 

## **1.15  Significant estimates and areas of judgments** 

The preparation of financial statements requires management to make estimates and judgements that affect the reported amounts of assets and liabilities as well as the disclosure of contigent liabilities at the balance sheet date. 

Estimates and judgements are based on historical experience along with reasonable expectations around future events.  Actual outcomes could differ from the estimates.  This is especially the case of the valuation of the group’s investment property and defined benefit pension liability.  The valuation methodologies applied are considered to be the best estimate of market value. 

As disclosed in note 12.1, CIEH’s investment property has been revalued by an independent valuer in the current year. The Red Book valuation was performed on the basis of the net rental yield, with deduction of the full annual lease rentals payable. This valuation has therefore been adjusted for accounting purposes to add back lease rentals of £345k per annum, which are recognised in the finance lease liability disclosed in note 15, because to do otherwise would be to understate the charity’s net assets. 

**CIEH Annual Report 201** 4 6 **19** CIEH Annual Report 2020 

**Page 19** of 38 



20 

CIEH Annual Report 2020 

## Notes to the Financial Statements _continued_ 

**for the year ended 31 December 2020** 

## **2 Subsidiary activities** 

|Turnover<br>Total expenditure<br>Profit / (loss) for the year<br>Retained profits b/f<br>**Retained in subsidiary**|**CIEH Limited**|
|---|---|
||**2020**<br>2019<br>**£’000**<br>£’000<br>**1,408**<br>2,618<br>**(1,968)**<br>(2,550)<br>**(560)**<br>68<br>**286**<br>218<br>**(274)**<br>286|



CIEH has one wholly owned UK trading subsidiary; CIEH Limited. 

CIEH Limited, a company registered in England, carries out mainly primary purpose trading activities, providing learning outcomes and publishing a magazine. 

A summary of the trading results for CIEH Limited is shown below. 

## **3 Income and endowments** 

|Subscriptions and membership<br>Education<br>Conferences<br>Regions<br>Commercial trading<br>Grants<br>Investments<br>**Total income and endowments**|**2020**<br>**£’000**<br>**CIEH Ltd**<br>**£’000**<br>**CIEH**<br>**£’000**<br>**Group**<br>**418**<br>**1,180**<br>**1,598**<br>**653**<br>**222**<br>**875**<br>**–**<br>**263**<br>**263**<br>**–**<br>**6**<br>**6**<br>**225**<br>**995**<br>**1,220**<br>**103**<br>**41**<br>**144**<br>**–**<br>**141**<br>**141**<br>**1,399**<br>**2,848**<br>**4,247**|||**2019**|
|---|---|---|---|---|
|||£’000<br>CIEH Ltd<br>593<br>1,016<br>–<br>–<br>915<br>–<br>–<br>2,524||£’000<br>CIEH<br>£’000<br>Group<br>1,196<br>1,789<br>100<br>1,116<br>548<br>548<br>27<br>27<br>686<br>1,601<br>–<br>–<br>208<br>208<br>2,765<br>5,289|
||||||



**Subscriptions and membership** income consists of membership fees, and other sources of income of a membership nature (including the membership magazine; Environmental Health News). 

**Commercial trading** income arises from 15Hatfields venue and events business, together with rent from letting part of Chadwick Court. 

**Education** income is in respect of professional exams and public training courses. 

**Grant** (CJRS)/furlough income relates to the Coronavirus Job Retention Scheme. 

**Conference** income arises from the delivery of events to members and the public. 

**CIEH Annual Report 201** 4 6 **20** CIEH Annual Report 2020 

**Page 20** of 38 



> CIEH Annual Report 2020 21 

## Notes to the Financial Statements _continued_ 

**for the year ended 31 December 2020** 

## **4 Expenditure** 


**----- Start of picture text -----**<br>
2020 2019<br>Memo Total Memo Total<br>£’000 £’000 £’000 £’000<br>Subscription Membership<br>Direct costs 324 335<br>Staff costs 437 506<br>CIEH Ltd support 385 431<br>CIEH support 1,287 2,433 1,152 2,424<br>Education<br>Direct costs 190 185<br>Staff costs 370 403<br>CIEH Ltd support 227 238<br>CIEH support 758 1,545 634 1,460<br>Conferences<br>Direct costs 82 196<br>Staff costs 283 281<br>CIEH Ltd support 97 252<br>CIEH support 325 787 671 1,400<br>Regions   4 16<br>Commercial trading 529 759<br>Investment management fee 32 43<br>Total expenditure 5,330 6,102<br>Basis of apportionment: Direct costs<br>**----- End of picture text -----**<br>


**CIEH Annual Report 201** 4 6 **21** CIEH Annual Report 2020 

**Page 21** of 38 



22 

CIEH Annual Report 2020 

## Notes to the Financial Statements _continued_ 

**for the year ended 31 December 2020** 

## **5 Support costs** 

|**CIEH Ltd**<br>**£’000**<br>Staff costs<br>**365**<br>Office costs<br>**103**<br>Printing, postage and stationery<br>**2**<br>Rent, rates and maintenance<br>**3**<br>Light and heat<br>**–**<br>Publicity and marketing<br>**38**<br>Telephones<br>**8**<br>Computers<br>**1**<br>Legal and professional<br>**1**<br>Insurance<br>**14**<br>Bank charges<br>**19**<br>Finance lease interest<br>**–**<br>Governance costs<br>**17**<br>Irrecoverable VAT<br>**–**<br>Depreciation of tangible and<br>intangible assets<br>**138**<br>**Support costs**<br>**709**||**2020**<br>**Total**<br>**£’000**<br>**1,835**<br>**262**<br>**7**<br>**21**<br>**45**<br>**75**<br>**24**<br>**3**<br>**32**<br>**40**<br>**30**<br>**342**<br>**47**<br>**29**<br>**289**<br>**3,080**||||**2019**|
|---|---|---|---|---|---|---|
||**CIEH**<br>**£’000**<br>**1,470**<br>**158**<br>**5**<br>**18**<br>**45**<br>**37**<br>**15**<br>**2**<br>**32**<br>**26**<br>**11**<br>**342**<br>**30**<br>**29**<br>**151**<br>**2,371**||CIEH Ltd<br>£’000<br>511<br>106<br>7<br>5<br>–<br>68<br>20<br>2<br>1<br>21<br>27<br>–<br>13<br>–<br>140<br>921||CIEH<br>£’000<br>1,371<br>189<br>7<br>136<br>54<br>33<br>20<br>2<br>10<br>21<br>14<br>346<br>51<br>67<br>136<br>2,457|Total|
|||||||£’000|
||||||||
|||||||1,882|
|||||||295|
|||||||14|
|||||||141|
|||||||54|
|||||||101|
|||||||40|
|||||||4|
|||||||11|
|||||||42|
|||||||41|
|||||||346|
|||||||64|
|||||||67|
|||||||276|
||||||||
|||||||3,379|
||||||||



## **6 Governance costs** 

|Board of Trustees and<br>other meetings<br>Auditors’ remuneration<br>**Governance costs**|**2020**<br>**2019**<br>**£’000**<br>£’000<br>**14**<br>37<br>**33**<br>27<br>**47**<br>64|
|---|---|



Governance costs are the general running costs of the charity. Included in here are the costs of the Board of Trustees and associated support costs including external audit. 

**CIEH Annual Report 201** 4 6 **22** CIEH Annual Report 2020 

**Page 22** of 38 



23 

CIEH Annual Report 2020 

## Notes to the Financial Statements _continued_ 

**for the year ended 31 December 2020** 

## **7 Net expenditure for the year** 

|_This is stated after charging:_<br>**2020**<br>**£’000**<br>Depreciation of tangible and<br>intangible assets<br>**289**<br>Auditors’ remuneration<br>– audit work<br>**27**<br>– non-audit work<br>**8**<br>Finance lease interest<br>**342**<br>Operating lease rentals<br>**32**|**Group**<br>**CIEH**<br>2019<br>**2020**<br>2019<br>£’000<br>**£’000**<br>£’000<br>277<br>**151**<br>138<br>27<br>**15**<br>15<br>8<br>**3**<br>3<br>346<br>**342**<br>346<br>32<br>**–**<br>–|
|---|---|



## **8 Employee and trustee costs** 

The employee costs for the Group and the charity were: 

|**2020**<br>**£’000**<br>Wages and salaries<br>**2,173**<br>Social security<br>**223**<br>Pension costs<br>**706**<br>Temporary staff<br>**41**<br>Training and recruitment<br>**39**<br>**3,182**|**Group**<br>**CIEH**<br>2019<br>**2020**<br>2019<br>£’000<br>**£’000**<br>£’000<br>2,139<br>**1,340**<br>1,222<br>224<br>**141**<br>135<br>755<br>**600**<br>641<br>216<br>**35**<br>91<br>35<br>**24**<br>17<br>3,369<br>**2,140**<br>2,106|
|---|---|



Central services staff (finance, IT, HR, marketing and administration) are employed by CIEH and are partially recharged to the subsidiary company on a direct costs basis. 

|**2020**<br>**Number**<br>Subscription and membership<br>**12**<br>Education<br>**13**<br>Conferences<br>**2**<br>Commercial trading<br>**6**<br>Central services<br>**18**<br>**51**||**2019**<br>**2020**<br>**2019**<br>Number<br>**£’000**<br>£’000<br>11<br>**438**<br>506<br>14<br>**371**<br>403<br>2<br>**284**<br>281<br>6<br>**251**<br>297<br>16<br>**1,838**<br>1,882<br>49<br>**3,182**<br>3,369|
|---|---|---|
||||
||||



These costs have been allocated to the most appropriate individual headings within the Statement of Financial Activities. 

**CIEH Annual Report 201** 4 6 **23** CIEH Annual Report 2020 

**Page 23** of 38 



24 

CIEH Annual Report 2020 

## Notes to the Financial Statements _continued_ 

## **for the year ended 31 December 2020** 

## **8 Employee and trustee costs** _**continued**_ 

|Employees whose emoluments<br>were over £60,000 per annum:<br>£60,000 – £69,999<br>£70,000 – £79,999<br>£80,000 – £89,999<br>£90,000 – £99,999<br>£140,000 – £149,999|**2020**<br>**2019**<br>**Number**<br>Number<br>**1**<br>1<br>**2**<br>–<br>**–**<br>1<br>**1**<br>–<br>**–**<br>1<br>**4**<br>3|
|---|---|



The executive management team of five (2019: four) were remunerated £367,505 (2019: £293,185) with company pension contributions totalling £41,167 (2019: £37,528). They received no other benefits (2019: £0). 

The Group makes pension contributions on behalf of four (2019: three) of the employees whose emoluments exceed £60,000. 

No Board of Trustee member received any remuneration for services as a trustee (2019: none). 

Board of Trustee members received reimbursement of their travel and subsistence expenses incurred in the performance of their duties as Board of Trustee members. These expenses totalled £1,232 to 11 trustees (2019: £4,049 to 11 trustees). 

Transactions with Board of Trustee members, officers of CIEH, Directors of CIEH Limited are disclosed in note 24, related party transactions. 

## **9 Pensions** 

During the year, costs relating to the various pension funds to which CIEH contributes were as follows: 

|London Pension Fund Authority<br>(LPFA)<br>Aegon UK PLC<br>Other<br>**Total pension costs**|||**Group**<br>**CIEH**<br>2019<br>**2020**<br>2019<br>£’000<br>**£’000**<br>£’000<br>728<br>**554**<br>624<br>18<br>**22**<br>8<br>9<br>**9**<br>9<br>755<br>**585**<br>641|
|---|---|---|---|
||**2020**<br>**£’000**<br>**663**<br>**34**<br>**9**<br>**706**|||
|||||



The LPFA scheme is a successor to the last GLC fund and is a Career Average Revalued Earnings (CARE) scheme.  It is actuarially valued on a three year cycle. In line with the 2019 valuation, CIEH’s contributions are 15.5% (2019:12.8%). 

In accordance with Financial Reporting Standard Number 102, CIEH is required to disclose certain information concerning assets, liabilities, income and expenditure related to defined benefit pension schemes for its employees. Certain employees of CIEH participate in the LPFA scheme, part of the Local Government Pension Scheme, a defined benefit statutory scheme. The Fund is administered by LPFA in accordance with the Local Government Pension Regulations 2007/08, as amended. 

**CIEH Annual Report 201** 4 6 **24** CIEH Annual Report 2020 

**Page 24** of 38 



25 

CIEH Annual Report 2020 

## Notes to the Financial Statements _continued_ 

## **for the year ended 31 December 2020** 

## **9 Pensions** _**continued**_ 

The return on the Fund (on a bid value to bid value basis) for the year to 31 December 2020 is estimated to be 17%. The actual return on the Fund assets over the year may be different. The estimated asset allocation for the CIEH as at 31 December 2020 is as follows: 

|**Employer asset share – bid value**<br>Equities<br>Target Return Portfolio<br>Infrastructure<br>Property<br>Cash<br>**Total**|**31 Dec 2020**<br>**£’000**<br>**%**<br>**6,183**<br>**55 %**<br>**2,623**<br>**23 %**<br>**761**<br>**7 %**<br>**1,040**<br>**9 %**<br>**726**<br>**6 %**<br>**11,333**<br>**100 %**||**31 Dec 2019**|
|---|---|---|---|
||||£’000<br>%<br>5,836<br>54 %<br>2,680<br>25 %<br>718<br>7 %<br>992<br>9 %<br>573<br>5 %<br>10,799<br>100 %|
|||||



The assumed life expectations from age 65 are: 

|**Life expectancy from age 65 years**|**31 Dec 2020**<br>**31 Dec 2019**|**31 Dec 2020**<br>**31 Dec 2019**|
|---|---|---|
|Retiring today|||
|Males|**22.2**|22.2|
|Females|**24.7**|24.6|
|Retiring in 20 years|||
|Males|**23.6**|23.5|
|Females|**26.2**|26.1|



The financial assumptions used to calculate the results are as follows: 

|**Assumptions as at**|**31 Dec 2020**<br>**31 Dec 2019**<br>**31 Dec 2018**|**31 Dec 2020**<br>**31 Dec 2019**<br>**31 Dec 2018**|**31 Dec 2020**<br>**31 Dec 2019**<br>**31 Dec 2018**|
|---|---|---|---|
||**% p.a**|% p.a|% p.a|
|Discount rate|**1.4%**|2.05%|2.8%|
|Salary increases|**3.3%**|3.8%|3.9%|
|Pension increases|**2.3%**|2.3%|2.4%|



**CIEH Annual Report 201** 4 6 **25** CIEH Annual Report 2020 

**Page 25** of 38 



26 

CIEH Annual Report 2020 

## Notes to the Financial Statements _continued_ 

## **for the year ended 31 December 2020** 

## **9 Pensions** _**continued**_ 

Balance sheet as at 31 December 2020 

|**Net pension liability as at**<br>**31 Dec 2020**<br>**31 Dec 2019**<br>**31 Dec 2018**<br>**£’000**<br>£’000<br>£’000<br>Present value of the defined<br>benefit obligation<br>**(18,453)**<br>(14,892)<br>(13,310)<br>Fair value of Fund assets (bid value)<br>**11,333**<br>10,799<br>9,285<br>Deficit<br>**(7,120)**<br>(4,093)<br>(4,025)<br>**Net defined benefit liability**<br>**(7,120)**<br>(4,093)<br>(4,025)|**Net pension liability as at**<br>**31 Dec 2020**<br>**31 Dec 2019**<br>**31 Dec 2018**<br>**£’000**<br>£’000<br>£’000<br>Present value of the defined<br>benefit obligation<br>**(18,453)**<br>(14,892)<br>(13,310)<br>Fair value of Fund assets (bid value)<br>**11,333**<br>10,799<br>9,285<br>Deficit<br>**(7,120)**<br>(4,093)<br>(4,025)<br>**Net defined benefit liability**<br>**(7,120)**<br>(4,093)<br>(4,025)|
|---|---|
||£’000<br>£’000<br>(14,892)<br>(13,310)<br>10,799<br>9,285<br>(4,093)<br>(4,025)<br>(4,093)<br>(4,025)|
|||
|||



Statement of profit or loss for the year to 31 December 2020 

|**The amounts recognised in the SoFA are:**|**Year to**<br>**31 Dec 2020**|**Year to**<br>**31 Dec 2020**|**Year to**<br>**31 Dec 2019**|
|---|---|---|---|
|||**£’000**|£’000|
|Service cost||**567**|606|
|Net interest on the defined liability||**81**|110|
|Administration expenses||**14**|12|
|**Total**||**662**|728|
|||||



Asset and benefit obligation reconciliation for the year to 31 December 2020 

|**Reconciliation of opening and closing balance**|||
|---|---|---|
|**of the present value of the defined**<br>**benefit obligation**|**Year to**<br>**31 Dec 2020**|**Year to**<br>**31 Dec 2019**|
||**£’000**|£’000|
|Opening defined benefit obligation|**14,892**|13,310|
|Current service cost|**567**|545|
|Interest cost|**302**|370|
|Change in financial assumptions|**2,280**|1,436|
|Estimated benefits paid net of transfers in|**(429)**|(399)|
|Experience loss/(gain) on defined benefit|**714**|–|
|obligation|||
|Change in demographic assumptions|**–**|(556)|
|Past service costs, including curtailments|**–**|61|
|Contributions by Scheme participants|**127**|125|
|**Closing defined benefit obligation**|**18,453**|14,892|
||||



**CIEH Annual Report 201** 4 6 **26** CIEH Annual Report 2020 

**Page 26** of 38 



> CIEH Annual Report 2020 27 

## Notes to the Financial Statements _continued_ 

## **for the year ended 31 December 2020** 

## **9 Pensions** _**continued**_ 

|**Reconciliation of opening and closing**<br>**balances of the fair value of Fund assets**|**Year to**<br>**31 Dec 2020**|**Year to**<br>**31 Dec 2019**|
|---|---|---|
||**£’000**|£’000|
|Opening fair value of Fund assets|**10,799**|9,285|
|Interest on assets|**221**|260|
|Return on assets less interest|**273**|1,273|
|Administration expenses|**125**|–|
|Administration expenses|**(14)**|(12)|
|Contributions by employer including unfunded|**231**|267|
|Contribution by Fund participants|**127**|125|
|Estimated benefits paid plus unfunded net of|**(429)**|(399)|
|transfers in|||
|**Closing fair value of Fund assets**|**11,333**|10,799|
||||



The total return on fund assets for the year to 31 December 2020 is £494,000. 

|**Sensitivity analysis**||||
|---|---|---|---|
||£’000|**£’000**|£’000|
|Adjustment to discount rate|+0.1%|**0.0%**|-0.1%|
|Present value of total obligation|18,075|**18,453**|18,839|
|Projected service cost|894|**924**|955|
|Adjustment to long term salary increase|+0.1%|**0.0%**|-0.1%|
|Present value of total obligation|18,456|**18,453**|18,450|
|Projected service cost|924|**924**|924|
|Adjustment to pension increases and||||
|deferred revaluation|+0.1%|**0.0%**|-0.1%|
|Present value of total obligation|18,833|**18,453**|18,081|
|Projected service cost|954|**924**|895|
|Adjustment to life expectancy assumptions|+1 year|**None**|-1 year|
|Present value of total obligation|19,099|**18,453**|17,829|
|Projected service cost|955|**924**|894|



**CIEH Annual Report 201** 4 6 **27** CIEH Annual Report 2020 

**Page 27** of 38 



> CIEH Annual Report 2020 28 

## Notes to the Financial Statements _continued_ 

## **for the year ended 31 December 2020** 

## **9 Pensions** _**continued**_ 

Re-measurements in other comprehensive income 

|**Re-measurements of the net assets /**|**Year to**|**Year to**|
|---|---|---|
|**(defined liability)**|**31 Dec 2020**|**31 Dec 2019**|
||**£’000**|£’000|
|Return on Fund assets in excess of interest|**273**|1,273|
|Other actuarial gains/(losses) on assets|**125**|–|
|Change in financial assumptions|**(2,280)**|(1,436)|
|Experience gain/(loss) on defined benefit obligation|**(714)**|–|
|Change in demographic assumptions|**–**|556|
|**Re-measurement of the net assets /**<br>**(defined liability)**|**(2,596)**|393|



|**Projections for the year to 31 December 2021**|**Year to**|
|---|---|
||**31 Dec 2021**|
|Service cost|**£’000**<br>**924**|
|Net interest on the defined liability|**98**|
|Administration expenses|**15**|
|Total loss|**1,037**|
|Employer contributions|**254**|



The projections for the year to 31 December 2021 exclude the capitalised cost of any early retirements or augmentations which may occur after 31 December 2020. 

The Aegon UK PLC scheme is a **defined contribution scheme** . CIEH’s contributions are 11%. CIEH also contributes 11% to employees’ personal pension schemes. 

No employees or directors of CIEH or CIEH Limited and its subsidiary undertakings, are involved in the control or administration of any of the above funds. 

**CIEH Annual Report 201** 4 6 **28** CIEH Annual Report 2020 

**Page 28** of 38 



> CIEH Annual Report 2020 29 

## Notes to the Financial Statements _continued_ 

**for the year ended 31 December 2020** 

## **10  Intangible fixed assets** 

|**Computer**<br>**software**<br>**CIEH**<br>**Cost or Valuation**<br>£’000<br>At 1 January 2020<br>28<br>At 31 December 2020<br>28<br>**Depreciation**<br>At 1 January 2020<br>28<br>At 31 December 2020<br>28<br>**Net Book Value**<br>**At 31 December 2020**<br>**–**<br>At 31 December 2019<br>–|**Total**<br>**assets**|
|---|---|
||£’000|
|||
||28|
||28|
|||
|||
|||
|||
||28|
||28|
|||
|||
||**–**|
|||
|||
||–|
|||



|**Course**<br>**development**<br>**Computer**<br>**software**<br>**Assets under**<br>**construction**<br>**Group**<br>**Cost or Valuation**<br>£’000<br>£’000<br>£’000<br>At 1 January 2020<br>9<br>697<br>105<br>Additions<br>–<br>7<br>96<br>Transfers<br>–<br>61<br>(61)<br>Disposals<br>–<br>(5)<br>–<br>At 31 December 2020<br>9<br>760<br>140<br>**Depreciation**<br>At 1 January 2020<br>4<br>563<br>–<br>Charge for the year<br>3<br>121<br>–<br>Disposals<br>–<br>(5)<br>–<br>At 31 December 2020<br>7<br>679<br>–<br>**Net Book Value**<br>**At 31 December 2020**<br>**2**<br>**81**<br>**140**<br>At 31 December 2019<br>5<br>134<br>105|**Course**<br>**development**<br>**Computer**<br>**software**<br>**Assets under**<br>**construction**<br>**Group**<br>**Cost or Valuation**<br>£’000<br>£’000<br>£’000<br>At 1 January 2020<br>9<br>697<br>105<br>Additions<br>–<br>7<br>96<br>Transfers<br>–<br>61<br>(61)<br>Disposals<br>–<br>(5)<br>–<br>At 31 December 2020<br>9<br>760<br>140<br>**Depreciation**<br>At 1 January 2020<br>4<br>563<br>–<br>Charge for the year<br>3<br>121<br>–<br>Disposals<br>–<br>(5)<br>–<br>At 31 December 2020<br>7<br>679<br>–<br>**Net Book Value**<br>**At 31 December 2020**<br>**2**<br>**81**<br>**140**<br>At 31 December 2019<br>5<br>134<br>105|**Course**<br>**development**<br>**Computer**<br>**software**<br>**Assets under**<br>**construction**<br>**Group**<br>**Cost or Valuation**<br>£’000<br>£’000<br>£’000<br>At 1 January 2020<br>9<br>697<br>105<br>Additions<br>–<br>7<br>96<br>Transfers<br>–<br>61<br>(61)<br>Disposals<br>–<br>(5)<br>–<br>At 31 December 2020<br>9<br>760<br>140<br>**Depreciation**<br>At 1 January 2020<br>4<br>563<br>–<br>Charge for the year<br>3<br>121<br>–<br>Disposals<br>–<br>(5)<br>–<br>At 31 December 2020<br>7<br>679<br>–<br>**Net Book Value**<br>**At 31 December 2020**<br>**2**<br>**81**<br>**140**<br>At 31 December 2019<br>5<br>134<br>105|**Total**<br>**assets**|
|---|---|---|---|
||£’000|£’000|£’000|
||697<br>7<br>61<br>(5)<br>760<br>563<br>121<br>(5)<br>679<br>**81**<br>134|105<br>96<br>(61)<br>–<br>140<br>–<br>–<br>–<br>–<br>**140**<br>105||
||||811|
||||103|
||||–|
||||(5)|
|||||
||||909|
|||||
|||||
|||||
||||567|
||||124|
||||(5)|
|||||
||||686|
|||||
|||||
||||**224**|
|||||
|||||
||||244|
|||||



**CIEH Annual Report 201** 4 6 **29** CIEH Annual Report 2020 

**Page 29** of 38 



> CIEH Annual Report 2020 30 

## Notes to the Financial Statements _continued_ 

## **for the year ended 31 December 2020** 

## **11  Tangible fixed assets** 

|**Long**<br>**leasehold**<br>**property**<br>**Equipment**<br>**Fixtures &**<br>**Fittings**<br>**CIEH**<br>**Cost or Valuation**<br>£’000<br>£’000<br>At 1 January 2020<br>2,839<br>775<br>Additions<br>–<br>24<br>Disposals<br>–<br>(3)<br>At 31 December 2020<br>2,839<br>796<br>**Depreciation**<br>At 1 January 2020<br>329<br>328<br>Charge for the year<br>18<br>133<br>Disposals<br>–<br>(3)<br>At 31 December 2020<br>347<br>458<br>**Net Book Value**<br>**At 31 December 2020**<br>**2,492**<br>**340**<br>At 31 December 2019<br>2,510<br>447<br>**Long**<br>**leasehold**<br>**property**<br>**Equipment**<br>**Fixtures &**<br>**Fittings**<br>**Group**<br>**Cost or Valuation**<br>£’000<br>£’000<br>At 1 January 2020<br>2,839<br>957<br>Additions<br>–<br>48<br>Disposals<br>–<br>(3)<br>At 31 December 2020<br>2,839<br>1,002<br>**Depreciation**<br>At 1 January 2020<br>329<br>497<br>Charge for the year<br>18<br>147<br>Disposals<br>–<br>(3)<br>At 31 December 2020<br>329<br>641<br>**Net Book Value**<br>**At 31 December 2020**<br>**2,492**<br>**361**<br>At 31 December 2019<br>2,510<br>460|**Long**<br>**leasehold**<br>**property**<br>**Equipment**<br>**Fixtures &**<br>**Fittings**<br>**CIEH**<br>**Cost or Valuation**<br>£’000<br>£’000<br>At 1 January 2020<br>2,839<br>775<br>Additions<br>–<br>24<br>Disposals<br>–<br>(3)<br>At 31 December 2020<br>2,839<br>796<br>**Depreciation**<br>At 1 January 2020<br>329<br>328<br>Charge for the year<br>18<br>133<br>Disposals<br>–<br>(3)<br>At 31 December 2020<br>347<br>458<br>**Net Book Value**<br>**At 31 December 2020**<br>**2,492**<br>**340**<br>At 31 December 2019<br>2,510<br>447<br>**Long**<br>**leasehold**<br>**property**<br>**Equipment**<br>**Fixtures &**<br>**Fittings**<br>**Group**<br>**Cost or Valuation**<br>£’000<br>£’000<br>At 1 January 2020<br>2,839<br>957<br>Additions<br>–<br>48<br>Disposals<br>–<br>(3)<br>At 31 December 2020<br>2,839<br>1,002<br>**Depreciation**<br>At 1 January 2020<br>329<br>497<br>Charge for the year<br>18<br>147<br>Disposals<br>–<br>(3)<br>At 31 December 2020<br>329<br>641<br>**Net Book Value**<br>**At 31 December 2020**<br>**2,492**<br>**361**<br>At 31 December 2019<br>2,510<br>460|**Long**<br>**leasehold**<br>**property**<br>**Equipment**<br>**Fixtures &**<br>**Fittings**<br>**CIEH**<br>**Cost or Valuation**<br>£’000<br>£’000<br>At 1 January 2020<br>2,839<br>775<br>Additions<br>–<br>24<br>Disposals<br>–<br>(3)<br>At 31 December 2020<br>2,839<br>796<br>**Depreciation**<br>At 1 January 2020<br>329<br>328<br>Charge for the year<br>18<br>133<br>Disposals<br>–<br>(3)<br>At 31 December 2020<br>347<br>458<br>**Net Book Value**<br>**At 31 December 2020**<br>**2,492**<br>**340**<br>At 31 December 2019<br>2,510<br>447<br>**Long**<br>**leasehold**<br>**property**<br>**Equipment**<br>**Fixtures &**<br>**Fittings**<br>**Group**<br>**Cost or Valuation**<br>£’000<br>£’000<br>At 1 January 2020<br>2,839<br>957<br>Additions<br>–<br>48<br>Disposals<br>–<br>(3)<br>At 31 December 2020<br>2,839<br>1,002<br>**Depreciation**<br>At 1 January 2020<br>329<br>497<br>Charge for the year<br>18<br>147<br>Disposals<br>–<br>(3)<br>At 31 December 2020<br>329<br>641<br>**Net Book Value**<br>**At 31 December 2020**<br>**2,492**<br>**361**<br>At 31 December 2019<br>2,510<br>460|**Total**<br>**assets**|
|---|---|---|---|
||£’000|£’000|£’000|
|||||
||2,839||3,614|
||||24|
||||(3)|
|||||
||||3,635|
|||||
|||||
|||||
||||657|
||||151|
||||(3)|
|||||
||||804|
|||||
|||||
||||**2,832**|
|||||
|||||
||||2,957|
|||||
|||||
||||**Total**<br>**assets**|
||£’000|£’000|£’000|
||2,839<br>–<br>–<br>2,839<br>329<br>18<br>–<br>329<br>**2,492**<br>2,510|957<br>48<br>(3)<br>1,002<br>497<br>147<br>(3)<br>641<br>**361**<br>460||
||||3,796|
||||48|
||||(3)|
|||||
||||3,841|
|||||
|||||
|||||
||||826|
||||165|
||||(3)|
|||||
||||988|
|||||
|||||
||||**2,853**|
|||||
|||||
||||2,970|
|||||



Long leasehold property relates to CIEH’s property, Chadwick Court, held under finance lease from 20 December 2013. 

**CIEH Annual Report 201** 4 6 **30** CIEH Annual Report 2020 

**Page 30** of 38 



> CIEH Annual Report 2020 31 

## Notes to the Financial Statements _continued_ 

## **for the year ended 31 December 2020** 

## **12 Investments** 

## **12.1 Investments** 

Investment portfolio held at Cazenove Capital Management comprises of: 

|**Investment**<br>**Property**<br>**Listed**<br>**Investments**<br>**Cash and cash**<br>**equivalents**<br>£’000<br>£’000<br>£’000<br>Value at 1 January 2020<br>15,300<br>5,938<br>433<br>Investment income<br>–<br>–<br>141<br>Management fee<br>–<br>–<br>(34)<br>Cash withdrawal<br>–<br>–<br>(1,000)<br>Additions<br>–<br>4,355<br>(4,355)<br>Disposal proceeds<br>(4,983)<br>4,983<br>(Losses) / gains<br>2,600<br>(256)<br>–<br>**Value at 31 December 2020**<br>**17,900**<br>**5,054**<br>**168**|**Investment**<br>**Property**<br>**Listed**<br>**Investments**<br>**Cash and cash**<br>**equivalents**<br>£’000<br>£’000<br>£’000<br>Value at 1 January 2020<br>15,300<br>5,938<br>433<br>Investment income<br>–<br>–<br>141<br>Management fee<br>–<br>–<br>(34)<br>Cash withdrawal<br>–<br>–<br>(1,000)<br>Additions<br>–<br>4,355<br>(4,355)<br>Disposal proceeds<br>(4,983)<br>4,983<br>(Losses) / gains<br>2,600<br>(256)<br>–<br>**Value at 31 December 2020**<br>**17,900**<br>**5,054**<br>**168**|**Investment**<br>**Property**<br>**Listed**<br>**Investments**<br>**Cash and cash**<br>**equivalents**<br>£’000<br>£’000<br>£’000<br>Value at 1 January 2020<br>15,300<br>5,938<br>433<br>Investment income<br>–<br>–<br>141<br>Management fee<br>–<br>–<br>(34)<br>Cash withdrawal<br>–<br>–<br>(1,000)<br>Additions<br>–<br>4,355<br>(4,355)<br>Disposal proceeds<br>(4,983)<br>4,983<br>(Losses) / gains<br>2,600<br>(256)<br>–<br>**Value at 31 December 2020**<br>**17,900**<br>**5,054**<br>**168**|**Investment**<br>**Property**<br>**Listed**<br>**Investments**<br>**Cash and cash**<br>**equivalents**<br>£’000<br>£’000<br>£’000<br>Value at 1 January 2020<br>15,300<br>5,938<br>433<br>Investment income<br>–<br>–<br>141<br>Management fee<br>–<br>–<br>(34)<br>Cash withdrawal<br>–<br>–<br>(1,000)<br>Additions<br>–<br>4,355<br>(4,355)<br>Disposal proceeds<br>(4,983)<br>4,983<br>(Losses) / gains<br>2,600<br>(256)<br>–<br>**Value at 31 December 2020**<br>**17,900**<br>**5,054**<br>**168**|**Investment**<br>**Property**<br>**Listed**<br>**Investments**<br>**Cash and cash**<br>**equivalents**<br>£’000<br>£’000<br>£’000<br>Value at 1 January 2020<br>15,300<br>5,938<br>433<br>Investment income<br>–<br>–<br>141<br>Management fee<br>–<br>–<br>(34)<br>Cash withdrawal<br>–<br>–<br>(1,000)<br>Additions<br>–<br>4,355<br>(4,355)<br>Disposal proceeds<br>(4,983)<br>4,983<br>(Losses) / gains<br>2,600<br>(256)<br>–<br>**Value at 31 December 2020**<br>**17,900**<br>**5,054**<br>**168**|**Investment**<br>**Property**<br>**Listed**<br>**Investments**<br>**Cash and cash**<br>**equivalents**<br>£’000<br>£’000<br>£’000<br>Value at 1 January 2020<br>15,300<br>5,938<br>433<br>Investment income<br>–<br>–<br>141<br>Management fee<br>–<br>–<br>(34)<br>Cash withdrawal<br>–<br>–<br>(1,000)<br>Additions<br>–<br>4,355<br>(4,355)<br>Disposal proceeds<br>(4,983)<br>4,983<br>(Losses) / gains<br>2,600<br>(256)<br>–<br>**Value at 31 December 2020**<br>**17,900**<br>**5,054**<br>**168**|**Investment**<br>**Property**<br>**Listed**<br>**Investments**<br>**Cash and cash**<br>**equivalents**<br>£’000<br>£’000<br>£’000<br>Value at 1 January 2020<br>15,300<br>5,938<br>433<br>Investment income<br>–<br>–<br>141<br>Management fee<br>–<br>–<br>(34)<br>Cash withdrawal<br>–<br>–<br>(1,000)<br>Additions<br>–<br>4,355<br>(4,355)<br>Disposal proceeds<br>(4,983)<br>4,983<br>(Losses) / gains<br>2,600<br>(256)<br>–<br>**Value at 31 December 2020**<br>**17,900**<br>**5,054**<br>**168**||**Total**<br>**2020**|
|---|---|---|---|---|---|---|---|---|
|||£’000||£’000||£’000||**£’000**|
||||||||||
|||15,300||5,938||433||**21,671**|
|||–||–||141||**141**|
|||–||–||(34)||**(34)**|
|||–||–||(1,000)||**(1,000)**|
|||–||4,355||(4,355)||**–**|
|||||(4,983)||4,983||**–**|
|||2,600||(256)||–||**(2,344)**|
|||**17,900**||**5,054**||**168**||**23,122**|
||||||||||



65% of Chadwick Court has been let on a 10 year lease and therefore represents Investment Property to the Group. The fair value of the investment property was determined by reference to a red book valuation adjusted to disregard the element of ground rent already recognised as a finance lease in these finance statements. 

The valuation was performed by Colliers International LLP. 

Amounts are receivable under operating leases as follows: 

|**Group and CIEH**<br>Within one year<br>Within two to five years<br>After more than five years<br>**Total**||**2020**<br>**£’000**<br>**851**<br>**4,219**<br>**3,572**<br>**8,642**|**2019**|
|---|---|---|---|
||||£’000<br>526<br>4,015<br>4,627|
|||||
|||||
|||||
|||||
||||9,168|
|||||



## **12.2 Subsidiary undertakings** 

## **CIEH Limited** 

CIEH holds the entire equity interest in CIEH Limited, a company incorporated in the United Kingdom. The equity interest was donated to the CIEH. The company is currently engaged in the delivery of the charity’s primary purpose objectives. 

**CIEH Annual Report 201** 4 6 **31** CIEH Annual Report 2020 

**Page 31** of 38 



> CIEH Annual Report 2020 32 

## Notes to the Financial Statements _continued_ 

## **for the year ended 31 December 2020** 

## **13 Interest payable** 

|**13 Interest payable**||||||
|---|---|---|---|---|---|
|Finance lease<br>**Total interest payable**|||**Group**<br>2019<br>£’000<br>346<br>346||**CIEH**|
||**2020**<br>**£’000**<br>**342**<br>**342**|||**2020**<br>**£’000**<br>**342**<br>**342**|2019<br>£’000<br>346<br>346|



## **14 Debtors** 

|Amounts falling due within one year:<br>Trade debtors<br>Amounts owed by subsidiary undertakings<br>Other debtors<br>Prepayments and accrued income<br>**Total debtors**|||**Group**<br>**CIEH**<br>2019<br>**2020**<br>2019<br>£’000<br>**£’000**<br>£’000<br>534<br>**67**<br>242<br>–<br>**572**<br>32<br>15<br>**9**<br>13<br>638<br>**854**<br>619<br>1,187<br>**1,502**<br>906|
|---|---|---|---|
||**2020**<br>**£’000**<br>**428**<br>**–**<br>**11**<br>**874**<br>**1,313**|||



**CIEH Annual Report 201** 4 6 **32** CIEH Annual Report 2020 

**Page 32** of 38 



> CIEH Annual Report 2020 33 

## Notes to the Financial Statements _continued_ 

**for the year ended 31 December 2020** 

## **15 Creditors** 

|**(i)**<br>**Amounts falling due**<br>**within one year**<br>Obligation under finance lease<br>Trade creditors<br>Taxes and social security<br>Accruals and deferred income<br>**(ii)  Amounts falling due after**<br>**more than one year**<br>Finance lease<br>Other loans<br>**Obligations under**<br>**finance lease are payable**<br>**as follows:**<br>After more than one year<br>but within five years<br>After five years|||**Group**<br>**CIEH**<br>2019<br>**2020**<br>2019<br>£’000<br>**£’000**<br>£’000<br>345<br>**345**<br>345<br>78<br>**369**<br>47<br>144<br>**7**<br>21<br>950<br>**959**<br>821<br>1,517<br>**1,680**<br>1,234<br>9,613<br>**9,610**<br>9,613<br>–<br>**400**<br>–<br>9,613<br>**10,010**<br>9,613<br>1,380<br>**1,380**<br>1,380<br>8,233<br>**8,230**<br>8,233<br>9,613<br>**9,610**<br>9,613|
|---|---|---|---|
||**2020**<br>**£’000**<br>**345**<br>**404**<br>**75**<br>**1,152**<br>**1,976**<br>**9,610**<br>**400**<br>**10,010**<br>**1,380**<br>**8,230**<br>**9,610**|||
|||||
|||||
|||||



**Finance lease** CIEH property, Chadwick Court, is held under a 150 year finance lease from 20 December 2013. The total value of the minimum lease rentals payable over the life of the lease is £51.8m. 

**CIEH Annual Report 201** 4 6 **33** CIEH Annual Report 2020 

**Page 33** of 38 



34 

CIEH Annual Report 2020 

## Notes to the Financial Statements _continued_ 

**for the year ended 31 December 2020** 

## **16 Reconciliation of movement in total funds** 

|Unrestricted general funds<br>Pension fund<br>Total Charity Funds<br>Subsidiary Funds<br>**Total Funds**<br>Unrestricted general funds<br>Pension fund<br>Total Charity Funds<br>Subsidiary Funds<br>**Total Funds**|**At 1 Jan**<br>**2020**<br>£’000<br>15,086<br>(4,093)<br>10,993<br>286<br>**11,280**<br>**At 1 Jan**<br>**2019**<br>£’000<br>4,236<br>(4,025)<br>211<br>218<br>**429**|**Income**<br>**Expenditure**<br>**Transfers**<br>£’000<br>£’000<br>£’000<br>2,942<br>(3,055)<br>–<br>–<br>(410)<br>–<br>2,942<br>(3,456)<br>–<br>1,305<br>(1,865)<br>–<br>**4,247**<br>**(5,329)**<br>**–**<br>**Income**<br>**Expenditure**<br>**Transfers**<br>£’000<br>£’000<br>£’000<br>2,670<br>(3,089)<br>–<br>–<br>(461)<br>–<br>2,670<br>(3,550)<br>–<br>2,618<br>(2,550)<br>–<br>**5,289**<br>**(6,102)**<br>**–**|**Gains/**<br>**(losses)**<br>**At 31 Dec**<br>**2020**<br>£’000<br>**£’000**<br>2,344<br>**17,318**<br>(2,617)<br>**(7,120)**<br>(273)<br>**10,198**<br>–<br>**(274)**<br>**(273)**<br>**9,924**<br>**Gains/**<br>**(losses)**<br>**At 31 Dec**<br>**2019**<br>£’000<br>**£’000**<br>11,270<br>**15,086**<br>393<br>**(4,093)**<br>11,663<br>**10,993**<br>–<br>**286**<br>**11,664**<br>**11,280**|**Gains/**<br>**(losses)**<br>**At 31 Dec**<br>**2020**<br>£’000<br>**£’000**<br>2,344<br>**17,318**<br>(2,617)<br>**(7,120)**<br>(273)<br>**10,198**<br>–<br>**(274)**<br>**(273)**<br>**9,924**<br>**Gains/**<br>**(losses)**<br>**At 31 Dec**<br>**2019**<br>£’000<br>**£’000**<br>11,270<br>**15,086**<br>393<br>**(4,093)**<br>11,663<br>**10,993**<br>–<br>**286**<br>**11,664**<br>**11,280**|
|---|---|---|---|---|
|||||**£’000**|
||||||
|||||**15,086**|
|||||**(4,093)**|
|||||**10,993**|
|||||**286**|
||||||
|||||**11,280**|



## **17 Projects** 

CIEH administers projects and funds on behalf of other entities as custodian trustee. Funds for two projects are held in separately identifiable accounts and income and expenditure is not included in the Statement of Financial Activities of CIEH. The balances on the projects and the funds held at 31 December 2020 are as follows: 

|Emergency & Relief Fund<br>Bonnefoy Fund|**2020**<br>**2019**<br>**£’000**<br>£’000<br>**5**<br>5<br>**21**<br>21|
|---|---|



**CIEH Annual Report 201** 4 6 **34** CIEH Annual Report 2020 

**Page 34** of 38 



> CIEH Annual Report 2020 35 

## Notes to the Financial Statements _continued_ 

## **for the year ended 31 December 2020** 

## **18 Cash flow resulting from operations** 

|**Reconciliation of deficit for the financial year**<br>**to net cash inflow from operations**<br>**Cash flows from operating activities**<br>Surplus/(deficit) for the financial year<br>**Adjustments to exclude:**<br>Depreciation of intangible assets<br>Depreciation of tangible assets<br>Interest element of finance lease rentals<br>Investment income<br>Pension scheme actuarial gains<br>Investment management fees<br>Investment: gains<br>Debtors decrease / (increase)<br>Stock decrease / (increase)<br>Creditors increase / (decrease)<br>Pension charged to SoFA<br>Pension contributions<br>Cash generated from operations<br>Interest paid<br>**Net cash flow resulting from operations**||**Group**|
|---|---|---|
|||**2020**<br>2019<br>**£’000**<br>£’000<br>**(1,356)**<br>10,851<br>**124**<br>127<br>**165**<br>150<br>**342**<br>346<br>**(141)**<br>(208)<br>**2,617**<br>(393)<br>**32**<br>43<br>**2,344**<br>(11,271)<br>**(126)**<br>(712)<br>**8**<br>1<br>**460**<br>156<br>**662**<br>728<br>**(251)**<br>(267)<br>**191**<br>(449)<br>**(342)**<br>(342)<br>**(151)**<br>(791)|
||||
||||
||||
||||
||||
||||
||||
||||
||||
||||
||||
||||
||||
||||
||||
||||
||||
||||
||||
||||
||||
||||



## **19 Analysis of net debt** 

|**Group**|**At 1 Jan**<br>**2020**<br>**Cash flow**|**At 1 Jan**<br>**2020**<br>**Cash flow**|**At 1 Jan**<br>**2020**<br>**Cash flow**|**At**|**31 Dec**<br>**2020**|
|---|---|---|---|---|---|
|||£’000|£’000||£’000|
|Cash at bank and in hand||407|1,096||1,503|
|Debt due within one year:||||||
|Finance lease||(345)|–||(345)|
|Debt due after more than one year:||||||
|Finance lease||(9,613)|3||(9,610)|
|Other loans||–|(400)||(400)|
|||(9,551)|699||(8,852)|
|||||||



**CIEH Annual Report 201** 4 6 **35** CIEH Annual Report 2020 

**Page 35** of 38 



36 

CIEH Annual Report 2020 

## Notes to the Financial Statements _continued_ 

**for the year ended 31 December 2020** 

## **20 Reconciliation of net cash flow to  movement in net debt** 

|Increase/decrease in cash in the year<br>Capital element of finance lease rentals<br>Other loans<br>Movement in net debt in the year<br>Net debt at 1 January<br>**Net debt at 31 December**||**2020**<br>**2019**<br>**£’000**<br>£’000<br>£’000<br>(110)<br>2<br>**699**<br>(108)<br>**(9,551)**<br>(9,443)<br>**(8,852)**<br>(9,551)|
|---|---|---|
||**£’000**<br>**1,096**<br>**3**<br>**(400)**||



## **21 Controlling party** 

CIEH is run by its Board of Trustees, who are appointed by the members of CIEH and the board. 

## **22 Indemnity insurance** 

The Board of Trustees has affected an indemnity insurance policy to protect CIEH and its subsidiary undertakings from loss arising from the neglect or defaults of its trustees, directors or employees and to indemnify them against loss arising from any claim against them jointly or severally by reason of any wrongful act in their capacity as trustees, directors or officers. The premium on the insurance policy was £3,342 (2019: £3,028). 

## **23 Capital commitments** 

At 31 December 2020 group capital commitments of £158,787 (of which £139,787 had been spent at 31 December) had been authorised and contracted for (2019: £124,280 authorised and £104,755 had been spent). 

**CIEH Annual Report 201** 4 6 **36** CIEH Annual Report 2020 

**Page 36** of 38 



37 

CIEH Annual Report 2020 

## Notes to the Financial Statements _continued_ 

## **for the year ended 31 December 2020** 

## **24 Related party transactions** 

During the year CIEH received Gift Aid payments of £0 (2019: £34,000) from The Environmental Health Registration Board, a company connected with CIEH. 

As part of the provision of its training courses CIEH Limited commissions books, researches new courses and arranges for examination papers to be marked and moderated. Some of this work is undertaken for payment by persons who are members of the Chartered Institute of Environmental Health. 

During 2020 and the prior year 2019 no member of the Board of CIEH Limited was paid for services for work on behalf of CIEH. 

There were no other related party transactions in the current year or the prior year. 

## **25 Operating leases** 

As prescribed by FRS102, total minimum future lease payments under operating leases are analysed below for the following periods; payable within one year; payable after one year but within 5 years; payable after 5 years. 

|**Other assets**<br>Payable within 1 year<br>Payable during 2 to 5 years||**Group**<br>**CIEH**<br>2019<br>**2020**<br>2019<br>£’000<br>**£’000**<br>£’000<br>36<br>**–**<br>–<br>45<br>**–**<br>–<br>81<br>**–**<br>–|
|---|---|---|
||**2020**<br>**£’000**<br>**36**<br>**9**<br>**45**||



**CIEH Annual Report 201** 4 6 **37** CIEH Annual Report 2020 

**Page 37** of 38 



> CIEH Annual Report 2020 38 

## **About CIEH** 

## **President** Julie Barratt 

## **Trustees who served during the year and continue to serve:** * 

## **Standing boards / committees for 2020** 

## **Risk and Audit Committee** * 

Terenja Humphries (Chair) Daniel Oerther  (Deputy Chair) Julie Barratt (Appointed 1 January 2021) Maurice Brennan Siraj Choudhury (Resigned 31 December 2020) Sterling Crew (Appointed 1 January 2021) Kevin Gould (DC) (Resigned 25 June 2020) Jonathan Hayes (Resigned 31 December 2020) Roisin Kerr Madhu Murali (Appointed 25 June 2020) David Newsum Nick Pahl Jessica Tabois Kirpal Tahim Vanessa Wardle (Appointed 1 January 2021) Dawn Welham (Resigned 31 December 2020) Jo Wyatt (Resigned 31 December 2020) 

Carol Healy (Chair) 

Roy Coulter (Chair) (Resigned 31 December 2020) John Cragg (Appointed 1 January 2021) Jonathan Hayes (Resigned 31 December 2020) Madhu Murali (Appointed 1 January 2021) Saravana Namasivayam Robert Spain 

## **Appointments and Remunerations Committee** * 

## James Howe (Chair) 

Steve Othen (Chair) (Resigned 31 December 2020) Maurice Brennan (Appointed 25 June 2020) Amanda Clarke Tracey Marshall (Appointed 1 October 2020) Andrea Sutherill (Appointed 1 January 2021) 

## **CIEH Executive Management Team** 

## **Advisers** 

Phil James Chief Executive (Appointed 6 January 2021) Christine Kanu Executive Director of Finance and Corporate Services Deborah Wood Executive Director of Membership and  External Affairs Jon Buttolph Associate Director of Membership and Professional Development Justin Turner Associate Director of Operations 

**Bankers** HSBC Bank Plc, 60 Queen Victoria Street, London EC4N 4TR **Auditors** Haysmacintyre LLP 10 Queen St. Pl., London EC4R 1AG 

**Investment** Cazenove Capital Management, **managers** 1 London Wall Place, London EC2Y 5AU 

* Governance office holders who held office at any time in 2019 and who have been appointed between the end of the year and 30 April 2020 are shown, for completeness. 

To find out more visit: **www.cieh.org** 

Get in touch **info@cieh.org Page 38** of 38 

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