Chartered Institute of
Environmental Health
ANNUAL
REPORT
For the year ended 31 December 2023
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and what we do at..
cieh.org
## Contents
|1.|Trustees’ Annual Report|3|
|---|---|---|
|2.|Independent Auditors’ Report|19|
|3.|Consolidated statement of financial activities|23|
|4.|Balance sheets|24|
|5.|Consolidated cash flow|25|
|6.|Notes of financial statements|26|
|7.|About CIEH|51|
|8.|Advisors|52|
CIEH Annual Report 2023
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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 2023.
## **Objectives and activities**
The charitable objects of the Chartered Institute of Environmental Health (CIEH) are to promote for the public benefit the theory and science of environmental health in all its aspects and to disseminate knowledge about environmental health.
Our vision is of safer, cleaner and healthier environments for the benefit of people, businesses and local communities. At the end of 2023 the Board of Trustees chose to agree a set of priorities for 2024 with a view to reviewing its overall strategic aims during the year. The priorities for 2024 are in line with the current aims of a sustainable profession and a sustainable organisation. The priorities are:
- Advocating for professionalism and the profession, by developing powerful impact statements, increasing our influence at all levels of government and increasing our media coverage and impact
- Increase the impact of our policy and campaigning work, by developing the model to have member led policy and campaign work, including creating a register of volunteers and initiating an independent review of our advisory panels. Our work to increase influence and media coverage will also be to support this area
- In this expected election year develop a powerful general election strategy and supporting manifesto
- Work with partners to plan for the workforce of tomorrow through the creation of a workforce satellite panel
- Raise the profile and attractiveness of environmental health careers and supporting campaigns to maintain or increase student numbers
- Develop plans to deliver on 2023 AGM motions
- Deliver the finance strategy that aims to ensure the organisation is financially sustainable and resilient
We maintain our public benefit by influencing and shaping environmental health policy and implementation. We disseminate information and knowledge to and for the sector through our membership and communication networks. We provide education and training programmes.
## **Achievements and performance**
2023 was a year of change for CIEH with members actively sharing their thoughts, priorities and views through two Special General Meetings. Following these meetings a new Chair of the Board and new Trustees were elected and there has been a renewed focus on transparency, accountability and openness.
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## **Membership and professional development**
In 2023 we welcomed 1,271 new members to CIEH and ended the year on a total of 7,573 members (2022: 7,255 members).
Our membership by grade:
**----- Start of picture text -----**
Fellow - 3%
Affiliate - 16%
Student - 5%
Member - 69%
Associate - 7%
**----- End of picture text -----**
CIEH is committed to enhancing and developing our member offering. In 2023 we partnered with the Faculty of Public Health (FPH) to offer members in the Associate, Member and Fellow grades free Associate membership with FPH – providing CIEH members with even more opportunities to learn, network, and promote environmental and public health with like-minded professionals. We also launched a partnership with leading publisher Routledge to offer our members 25% off a range of environmental health books, again empowering members, at any stage of their career, to grow their knowledge.
Additionally, we teamed up with The Institute of Leadership and Management to offer environmental health professionals access to an Introduction to Leadership online course, combining online resources with interactive guidance from leadership experts.
We also recognised how important it is to offer students access to additional learning opportunities, which is why we enhanced our student membership offering to include free attendance to our headline conferences.
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In 2023 we completed the review of Chartered Status, and we aim to make the new route to Chartered Status available in Q1 of 2024. We ended 2023 with 2,030 Chartered Status members and welcomed a number of new students to our other professional registration pathways:
- 132 enrolled on pathway to Environmental Health Practitioner
- 47 enrolled on pathway to Food Safety Practitioner
- 4 enrolled on pathway to Housing Health Practitioner
In addition to this, our mentoring scheme continued to gain traction with 115 members receiving mentoring support in 2023.
## **Events**
2023 was another busy year for the CIEH events team as we continued to prioritise providing accessible, relevant and topical learning experiences to our members and the wider profession. We ran eight headline conferences covering the breadth of environmental health with a total of 1,418 delegates. Alongside this, we also ran 89 bitesize training sessions and 90 technical workshops. We were also able to keep our member event prices constant from the previous year in recognition of the cost of living crisis.
Accessibility and sustainability remain constant strategic aims for the CIEH events team. Aside from our popular face to face in-house training model, we sought to deliver several face to face training events in 2023 but due to low numbers we were unable to deliver them. Demonstrating the appetite for online training is still the preferred delivery method for most of our delegates. We will continue to develop new and exciting learning opportunities for CIEH members, both face to face and online for 2024.
The CIEH events team also secured several training contracts as preferred training provider for the Food Standards Agency (FSA). Over 25 events were delivered in 2023.
The tragic Awaab case highlighted the significance of our CIEH members working in the Private Rented Sector, demonstrating their important role in identifying and investigating health hazards. CIEH saw a significant increase in training in this area and we were able to meet the demands and deliver our established and well received HHSRS and Damp and Mould training.
## **Engagement**
We continued to run our popular member forum webinars, putting members at the heart of the conversation, with 22 taking place over 2023 and 2,138 members attending.
Engagement with CIEH online continued to grow with 62,856 engagements on social media and our social following increasing by 13% to 27,537. LinkedIn remains our most popular channel for our members and where we receive the highest engagement.
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On the CIEH website we published 55 blogs, the most popular blogs covered Chartered Status, CPD and Military Environmental Health Practitioners. We also published 98 Environmental Health News (EHN) Extra articles in addition to the EHN magazine, the most viewed EHN Extra articles of 2023 included:
- 8 signs of modern slavery
- Bed bug infestations are growing in the UK
- HSE opens up anonymous hotline for workers
During 2023, a lot of work was done to upgrade both the CIEH website and the 15Hatfields website in order to future proof both and improve usability, both upgrades were launched in early 2024.
Email communication remains an important and popular channel of communication for CIEH including the weekly Member Connect newsletter and our monthly Community newsletters. In 2023 both the open rates and click through rates increased, demonstrating that members are engaging with our email content.
In 2023 we also worked hard to give members a voice. For World Environmental Health Day 2023 we invited members to share their experiences of working in environmental health and what it means to protect public health. We heard from a range of members and the content was well received with the LinkedIn content alone reaching 22,873 impressions.
In 2024 we will be developing a new member engagement strategy to ensure we increase engagement, communicate in the most effective and efficient ways, and meet member needs.
## **Our voice**
We are committed to raising the profile of environmental health and the work of our members. In 2023 we issued 52 press releases and received 41 appearances in print and online media including The Guardian, New Statesman, The Daily Mail, BBC Radio 4, BBC News, BBC News NI, The Independent and the Sunday Times.
CIEH also continued to campaign on issues that matter to our members. In 2023 this activity included responding to 10 consultations on a variety of environmental health issues including the licensing of non-surgical cosmetic procedures in England, the draft Noise and Soundscape Plan for Wales, the FSA consultation on developing a modernised food hygiene delivery model, and the draft Border Target Operating Model.
Air quality was a particular area of focus for the CIEH policy team in 2023. We responded to two key consultations, the first of these was from DLUHC around proposed changes to the National Planning Policy Framework. The second was Defra's Draft Air Quality Strategy which focused on the roles and responsibilities of local authorities. We also provided written evidence to the Climate Change, Environment and Infrastructure Senedd Committee on the recently tabled Environment (Air Quality and Soundscapes) (Wales) Bill and secured the opportunity for a number of our members to provide oral evidence to the committee and provided written evidence to the Environmental Audit
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Committee on indoor and outdoor air quality targets, securing the opportunity for one of our members to provide oral evidence to this committee as well.
The CIEH Policy team also continued to work hard to uphold legislation and policy standards. Since the UK Government tabled the Retained EU (Revocation and Reform) (REUL) Bill in September 2022, CIEH have been a consistent voice in opposition to wholesale sunsetting of regulatory standards. Working with parliamentarians in both Houses we have tabled over 30 parliamentary questions, and played a pivotal role in forcing legislative changes to the Bill in the House of Lords which ultimately removed the arbitrary sunset date originally included in the Bill.
We worked with key partners including the OSH Alliance and CTSI to highlight the detrimental impact of the Bill and remove the arbitrary sunset date. We will continue to raise our concerns and to urge the Government to dispense with their ‘health vs wealth’ dichotomy, instead presenting how a healthy population is vital to a thriving economy.
In total, the CIEH Policy team also secured four Select Committee Appearances for CIEH members, empowering members to shape the future of environmental health:
- Paul McCullough and Somayya Yaqub gave evidence on noise and light pollution to the Lords Science and Technology Committee
- Kristian James and Colin Cobbing gave evidence on Air Quality and Noise Quality to the Climate Change, Environment and Infrastructure Committee in the Senedd
- Matt Clark gave evidence to the Environmental Audit Committee on Air Quality targets
- Henry Dawson gave evidence to the Public Bills Committee scrutinising the Renters Reform Bill
Several CIEH members also attended a private meeting alongside CIEH stakeholders with Professor Sir Chris Whitty to discuss indoor air quality and housing conditions.
We also launched our Manifesto for environmental health which included reaching out to all members of the Cabinet and Shadow Cabinet.
During 2023 a lot of work was done to revitalise the operation of our Advisory Panels, with a focus on empowering members to have more substantial role in directing policy development. This included recruiting members to join two new Advisory Panels focusing on public health and port health. These Panels will launch in early 2024.
CIEH Career Ambassadors have also been working hard to raise the profile of environmental health. Activity included engaging with hospitality and catering students on the importance of environmental health as a profession to attending sixth form careers fairs and visiting primary schools.
Following a member climate change survey where 77% of respondents agreed or strongly agreed that the current climate emergency is one of the most significate environmental health challenges
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of our time, we launched a new climate change hub to bring a range to tools, resources and updates together to help empower environmental health professionals to become climate change champions.
## **Financial review**
## **Income and expenditure**
CIEH net income for the year before exceptional items, gains and losses is £.02m (2022: loss £765k). This represents a remarkable improvement in the financial performance of CIEH with both income increasing and expenditure decreasing.
- total income of £5.8m (2022: £5.3m) an increase of 12%
- total expenditure of £5.8m (2022: £6.0m) a decrease of 3%
This is the first positive operating result reported by CIEH for over 15 years.
CIEH’s net movement on total funds is -£2.1m (2022 -£6m) is a result of:
- Net income of £0.02m (2022: loss of £0.8m)
- Gain on investments of £0.2m (2022: loss of £0.5m)
- Property lease asset valuation loss of £2.4m (2022: loss of £10.7m)
The income breakdown is shown in the chart below:
**----- Start of picture text -----**
Investments - 2%
Subscriptions and
membership -
31%
Commercial
trading - 37%
Education - 18%
Conferences -
13%
**----- End of picture text -----**
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CIEH commercial activities saw continued recovery, and conference income was boosted by
significant housing events. Education income suffered in light of the current economic conditions. Our trading subsidiary CIEH Ltd, 15Hatfields, our venue hire business saw a very good recovery to match pre-pandemic income levels.
Subscriptions and membership income includes membership as well as magazine advertising sales. Whilst membership numbers increased magazine advertising sales reduced due the current economic climate.
Total expenditure has decreased by 3%. Staff costs have reduced driven by the restructuring at the end of 2022.
Investment performance is commented on in the investment section below.
The valuation loss on the property lease relates to Chadwick Court. CIEH owned the property until 2013 when it sold and leased back the property under a 150-year lease. In 2019 CIEH sublet the top three floors of the property. At that point CIEH was required to treat those three floors as investment property and value the lease annually on a fair value basis rather than a historical cost basis. In 2021 CIEH decided to change the accounting treatment for the lower two floors to be on the same basis. The cumulative recorded gains in respect of the annual valuations up to 31 December 2022 is £5.6m. The loss recorded this year of £2.4m reduces the cumulative gains to £3.2m. The valuation of the lease is an area of significant estimate and judgement. Please refer to notes 1.15 and 11 for further disclosures in respect of the lease and its accounting treatment.
Any loss or gain represents the change in valuation of the lease at each year end. As it is a valuation it has no impact on the cash position of CIEH. As it is an asset it is allocated to the fixed asset designated reserve and as such the valuation loss has no impact on the free reserves of CIEH. The lease is valued by Gerald Eve, a surveyor that is registered with the Royal Institute of Chartered Surveyors, using the Red Book methodology of valuation.
The main factors that contributed to the reduction in valuation in 2023 are:
## _Market conditions_
- Interest rate changes increasing the cost of debt
- Geo-political and world events affecting sentiment
- Continued impact from the pandemic and hybrid working trends
Market conditions have resulted in different yield assumptions that reduces the value, compared to the previous valuation, by approx. £1m.
## _Property condition_
- The ability to let it at market rent rates given the condition of the property, particularly when compared with other available properties
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- Additional works required over previous valuation estimate based on the condition survey report commissioned
Capital expenditure required to address lettability reduces the value, compared to the previous valuation, by approx. £0.4m.
## _Other factors_
- Proximity to an upcoming contractual break clause for the sub-tenant
- Imminent rent review on the head lease
The potential for the sub-tenant to break their lease term and additional rent due on the headlease decrease its value by approx. £1m.
## **Balance sheet**
Total funds for the Group stand at £6.3m (2022: £8.5m) with the movement predominantly being due to:
- property lease valuation losses of £2.4m
- investment gains of £0.2m
Commentary on pension, property and investment items are included above in the highlights section. Net current assets have remained at similar levels. The current ratio is 1.2 (2022: 1.2).
## **Investments**
CIEH aims to provide sufficient liquidity and total returns with an acceptable level of risk, to enable SPH to carry out its activities effectively both in the short term and over the long term.
The investment objective for the short term is to invest sufficient capital in lower risk, liquid and unrestricted assets, in order to meet anticipated operating cash shortfalls and capital expenditure requirements over a 1-2 year time horizon.
The investment objective for long term funds is to generate a return of 4% above inflation. Managing performance against the objective will also be appraised in the shorter term. Long term funds may be drawn upon from time to time. Income will be reinvested until drawn upon.
CIEH require Cazenove to invest responsibly and to incorporate environmental, social and governance considerations into their investment processes. CIEH also have an ethical restriction to exclude direct investment in tobacco.
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## _Strategic asset allocation_
The CIEH investment portfolio has a long-term strategic allocation of 70% to global equities, 10% bonds, 10% property, 8% alternatives and 2% cash. Based on Cazenove Capital’s assumptions, the expected risk (volatility) of this strategy is 12% with an expected nominal return of 6% per annum.
Alongside the investment portfolio, CIEH hold a low-risk portfolio which invests in cash and cash-like products. This serves to provide liquidity for operational requirements and to slightly lessen the overall investment risk at a combined portfolio level. In aggregate, this is expected to be in line with CIEH’s overall risk profile of having a less than 5% probability of making a capital loss exceeding 10% of the portfolio value within any one year.
## _Calendar year 2023 performance_
CIEH (excluding the cash portfolio): +6.2% _CPI+4% (long-term target): +7.7% ARC £ Steady Growth Index (peer group comparator): +7.3%_
Financial markets in 2023 were defined by inflation and interest rate expectations, although overall the year was more positive for investors than expected. Initially, stubborn core inflation alongside indications of softening global growth led to concerns over higher for longer interest rates. However, the last few months of the year saw greater market optimism, largely centred on declining inflation and peaking interest rates. This lifted all assets higher, despite devastating events in Gaza.
Global equities (MSCI AC World) returned +15.3% in sterling terms and UK gilts (FTA Govt All Stocks) returned +3.7% over the course of the year. Positive performance within equities was dominated by
US Mega Cap technology names, all benefiting from tailwinds of increasing use of Artificial Intelligence. Notably, in the last few months of the year, there was a broadening of performance outside of these names.
Over 2022 and 2023, high levels of inflation in the UK have made meeting the inflation plus return target more challenging in the short term. Despite this, we remain confident in our ability to achieve this target over the longer term.
## **Reserves**
The Board of Trustees believe it is important the CIEH hold sufficient reserves to reflect illiquid assets, the risks that may require CIEH to use its reserves, and the strategic and operating needs of the organisation.
Designated funds exist for:
- Illiquid fixed assets. The value of illiquid fixed assets including investment property and related liabilities is £1.7m. This is because illiquid assets are not readily available to directly support members.
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- Multi-year capital and project expenditure. Trustees believe that it is important to designate this type of expenditure as it affects the amount of reserves the Trustees can choose to apply to further activities in support of members. In 2022 the property capital fund was based on an estimate of £3.1m based on the surveyors report. During 2023 CIEH undertook a detailed property condition review and the estimated planned preventative maintenance costs for maintaining the building on an as is basis is £1.75m over the next 10 years. There is approved other capital and project spend of £0.2m. The total designated fund is £1.95m.
The reserves policy agreed by the Board of Trustees is to target a free reserves fund after designations of £4m. This is made up of
- Rental annual income of £1m will drop to nil if the tenant leaves the property. A reserve of £2m was deemed appropriate as it may take up to 2 years to replace the tenant.
- Investments experience gains and losses and the Board of Trustees are keen to ensure a reserve is available should the market value of investments drop significantly. A reserve of £1m was deemed appropriate based on 20% of the carrying value of investments.
- A reserve of £1m for all other non-rent expenditure was deemed appropriate based on 20% of non-rent expenditure budget.
At 31 December 2023 CIEH undesignated reserves were £3.5m (2022: £1.6m). The reserves policy continues to be only partially funded. As we look to the future our focus be delivery of the finance strategy. A key element of that strategy is the delivery of a financially sustainable operating model. Work on reviewing the model has started with the Board of Trustees expected to consider the outputs of that review during 2024.
## **Going concern**
The Board of Trustees having carefully reviewed the financial position of CIEH Group, including the financial projections for 2024 and beyond, are satisfied that there are sufficient funds at the date of signature of the financial statements to manage any 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.
## **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.
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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 below:
|out below:||
|---|---|
|**Risk**|**Key controls and mitigation**|
|**Colleagues**
Failure to attract and retain competent,
motivated, diverse and healthy staff team
resulting in capability to deliver CIEH’s
strategy goals.|Phase 1 of a pay and reward project is complete.
Phase 2 in planning, for delivery in 2024 and beyond.|
|**Sustainability and resilience**
Failure to cover our costs as a whole and
investing in infrastructure at a rate adequate
enough to maintain services appropriate to
the needs of our strategy.
Failure to maintain sufficient reserves to
withstand financial shocks and stress.|Finance Strategy approved in September 2023 with
delivery in progress.
In 2023 CIEH has been able to significantly reduce its
operating deficit and as a result has been able to increase
its free reserves.|
|**Investments**
Poor investment performance, resulting in
erosion of CIEH’s reserves and financial
instability.|Investment managers’ performance monitored by
Executive Team and Board. Detailed strategic review of
property holding is underway to inform Trustees about
options for the future and gain tighter control over the
performance of the asset.|
|**Membership**
Reduction in membership numbers due to
socio-economic factors, major changes in the
EHprofession or underperformance of CIEH.|Membership levels and associated metrics are monitored
regularly, alongside complaints and compliments.|
|**Data and cyber security**
Cyber breach, resulting in lost data,
prolonged inability to access systems,
potential fines and reputational damage.|Policies and procedures are in place alongside monitoring
of training and testing outcomes.|
|**Governance**
CIEH’s governance, oversight and decision-
making arrangement do not support effective
delivery of objectives and strategy.|Governance processes are in line with good practice, and
regularly reviewed, including appraisals of the Board,
Committees and governance office holders. The Board has
access to legal advice when required and is regularly and
routinely supported by an external governance adviser. In
2023 The Board of Trustees approved the creation of a
finance committee to support the drive towards financial
sustainability and should be operational in 2024.|
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|**Professional Development**
Failure to keep qualifications pathways and
standards up to date with the needs of the
profession.|Regular engagement with members, employers by the
executive team, including ongoing consultation on
Chartered Environmental Health Practitioner. Oversight by
the Board, supported by the Membership Learning and
Profession AdvisoryGroup.|
|---|---|
|**Policy Positions**
Member and stakeholder dissatisfaction with
CIEH’s policy positions.|CIEH’s Policy Advisory panels have been refreshed and are
undergoing further development and transformation to
ensure greater participation and leadership from members
with relevant expertise and interest in subject areas.
Campaign and policy updates are regularly reported to
members in our weekly member connect newsletter, and
via subject-specific newsletters to those members who opt
to select them. Regular meetings with stakeholders
provide opportunities for checks and balances on policy
positions, including participation in a number of multi-
stakeholder alliances. Feedback mechanisms are in place
to hear from members when CIEH appears to fall short of
expectations.|
|**Reputational Risk**
Risk that performance does not match
expectation.|Policies and procedures are in place alongside monitoring
activities.|
|**Health and Safety**
Risk of harm to health or wellbeing of staff,
tenants or visitors.|Policies and procedures are in place alongside monitoring
activities. In 2024 CIEH will be undertaking a review of
currentpolicies andprocedures.|
## **Looking to the future**
The shared passion for environmental health, and the profound difference our members’ work makes to people’s lives form the foundation to advance the profession, and to increase the influence and our impact that CIEH has as a vibrant community of practice.
Following a period of significant change in the early part of 2023, the Board of Trustees will be looking to learn lessons from a review of issues brought forward by members at two Special Meetings. These centre largely around greater member participation and engagement in the activities of the Institute, and changes to governance structures to enable this. The Board will be looking to ensure that CIEH is inclusive and represents the views from all our membership, including those in all sectors; public, private, military, third sector and universities, as well as in the devolved nations.
With the arrival of new Trustees to the Board, priorities will be placed upon investing time and energy in Board and Trustee development, to apply leadership and governance to a review of CIEH’s strategic priorities. There is considerable work to be done in relation to financial sustainability,
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membership growth, professional training and development, and increasing our influence and profile.
Work is already underway in respect of financial sustainability; a review of our governance in respect of financial matters, the development of a finance strategy to define and achieve financial sustainability and resilience that has at its core the development of a sustainable operating model, as well as a review of how CIEH can maximise its return from the property at Chadwick Court.
CIEH has already made a lot of progress towards sustainability. The results shown in these accounts demonstrate the very significant progress made. The approved 2024 budget is set at a small operating deficit. Delivery of the finance strategy over the next three years is designed to deliver consistent sustainable results in future years.
Towards the end of last year we were delighted to advance our relationship with The Royal Environmental Health Institute of Scotland. We recognise that both organisations have strong identities and by collaborating and working together on matters relating to Environmental health we can make the profession stronger.
## **Structure, governance and management**
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 nine Trustees elected by CIEH members, up to three appointed by the Board (on the recommendation of the Appointments and Remuneration Committee) and the President. A vote of members at a Special Meeting held in March 2023 resulted in the Board of Trustees changing its Operating Procedures to reflect this composition, which had previously been six elected Trustees and up to six appointed Trustees.
It is the ultimate decision-making body for the operation of the charity. There are two committees, Risk and Audit and Appointments and Remuneration, reporting through to the Board of Trustees along with two advisory groups, Membership and the Profession and Learning and Qualifications combined from January 2023. In 2023 the Board of Trustees approved the creation of a Finance Committee to have oversight of finance and investments and to support financial sustainability. It is expected to be operational in 2024.
Two Special Meetings of members were held in March and April of 2023, where members voted in favour of motions that resulted in refreshing the Board of Trustees with the aim of ensuring it was fit for purpose in defining and delivering a strategy that will be fit for purpose within the future landscape for Environmental Health and the profession that will be needed to serve within that landscape. These changes are reflected in the list of Trustees at the end of this report.
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As part of their induction programme new Trustees are made aware of their responsibilities including an introduction to the objects, 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.
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 and 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.
The Board of Trustees approved the creation of a Finance Committee to oversee finance and investments, and the delivery of the finance strategy. This Committee is expected to be operational by mid 2024.
## **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 Statement Of Recommended Practice 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
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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.
## **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.
## **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 51.
## **Funds held as custodian trustee on behalf of others**
CIEH holds funds as custodian trustee on behalf of others as disclosed in note 17. These funds are excluded from this report.
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## **Employees and Members**
The Board of Trustees would like to take this opportunity to thank all CIEH employees and all its volunteer members for their efforts in furthering the aims and objectives of the organisation.
## **By order of the Board of Trustees**
**Judith Hedgley**
**----------------------------**
**16 May 2024**
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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 (‘the charity’) and its subsidiary (‘the group’) for the year ended 31 December 2023 which comprise the Consolidated Statement of Financial Activities, the Group and Charity Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including 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 the parent charity’s affairs as at 31 December 2023 and of the group’s income and expenditure, for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the 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 trustee's 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 charity's or the group’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
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19
The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
## **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: the information given in the financial statements is inconsistent in any material respect with the trustees’ report; or
sufficient and proper accounting records have not been kept by the parent charity; or the 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**
As explained more fully in the trustees’ responsibilities statement set out on page 16 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 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 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
CIEH Annual Report 2023
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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.
Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.
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.
## **Extent to which the audit was considered capable of detecting irregularities, including fraud**
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.
We obtained an understanding of the legal and regulatory frameworks within which the charity and group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Charities Act 2011 together with the Charities SORP (FRS102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charity’s and the group’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charity and the group for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulation, taxation legislation, and employment legislation.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the override of controls by management and judgements made in the property valuations. Our audit procedures to respond to these risks included enquiries of management, and the Risk and Audit Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, and reading minutes of meetings of those charged with governance.
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Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
## **Use of our report**
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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 and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
## **Crowe U.K. LLP**
Statutory Auditor
London
23 May 2024
Crowe U.K. LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
CIEH Annual Report 2023
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## Consolidated Statement of Financial Activities
## **(SoFA) (Incorporating an Income and Expenditure Account) for the year ended 31 December 2023**
|||**Group**|**Group**||
|---|---|---|---|---|
|||**2023**||2022 Restated|
|||**Unrestricted**||Unrestricted|
|||**Funds**||Funds|
||_Note_||**£'000**|£'000|
|**Income from charitable activities:**|||||
|Subscriptions and membership income|_3_||**1,803**|1,702|
|Education income|_3_||**1,019**|1,136|
|Conference income|_3_||**778**|635|
|**Income from other trading activities:**|||||
|Commercial trading|_3_||**2,063**|1,687|
|**Income from investments**|||||
|Income from investments|_3,12.1_||**143**|112|
|**Total income and endowments**|||**5,806**|5,272|
|**Expenditure**|||||
|**Expenditure on charitable activities:**|||||
|Membership|_4_||**2,430**|2,807|
|Education|_4_||**1,399**|1,261|
|Conferences|_4_||**1,167**|1,341|
|**Expenditure on raising funds**|||||
|Commercial trading operations|_4_||**758**|594|
|Investment management fee|_4_||**34**|34|
|**Total expenditure**|||**5,788**|6,037|
|**Net income/(expenditure) for the year before**
**exceptional items**|||**18**|(765)|
|Exceptional gain on defined benefit scheme|_9_||**0**|6,007|
|**Net income /(expenditure) for the year before**
**gains/(losses)**|||**18**|5,242|
|(Loss) on investment property|_12.1_|**(1,860)**||(7,770)|
|Gain/(loss) on investments|_12.1_||**238**|(466)|
|**Net movement in funds before defined benefit**|||||
|**pension scheme gain / (loss) and leasehold**||**(1,604)**||(2,994)|
|**property revaluation (loss)/gain**|||||
|Leasehold property revaluation (loss)/gain|_11_||**(540)**|(2,980)|
|**Net movement in funds**||**(2,144)**||(5,974)|
|Funds and reserves brought forward at 1
January|||**8,493**|14,467|
|**Funds carried forward at 31 December**|||**6,349**|8,493|
CIEH Annual Report 2023
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None of 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. All funds carried forward are unrestricted. The notes on pages 26 to 50 form an integral part of these financial statements.
## Balance Sheets
## **as at 31 December 2023**
|**2023**
2022 Restated
**2023**
2022
_Note_
**£**
£
**£**
**Fixed assets**
Intangible assets
_10_
**192**
183
**156**
Tangible assets
_11_
**2,479**
3,073
**2,455**
Investments
_12_
**13,620**
15,200
**13,620**
**16,291**
18,456
**16,231**
**Current assets**
Stock
**20**
16
**-**
Debtors
_14_
**1,113**
1,161
**1,305**
Cash at bank and in hand
**1,222**
1,568
**1,160**
**2,355**
2,745
**2,465**
**Creditors:**amounts falling due within one year
_15_
**(1,896)**
(2,304)
**(1,727)**
**Net current assets**
**459**
441
**738**
**Total assets less current liabilities**
**16,750**
18,897
**16,969**
**Creditors:** amounts falling due after more than
one year
_15_
**(10,401)**
(10,404)
**(10,401)**
**Total net assets**
**6,349**
8,493
**6,568**
**The funds of the charity:**
Unrestricted general funds
_16_
General funds
_16_
**3,309**
1,561
**3,528**
Designated funds
_16_
**3,040**
6,932
**3,040**
**Total funds**
_16_
**6,349**
8,493
**6,568**
**Group**
**CIEH**||
|---|---|
||Restated
£
101
3,045
15,200|
||18,346
-
1,166
1,497|
||2,663
(1,926)|
||737|
||19,083
(10,404)|
||8,679|
||1,747
6,932|
||8,679|
The notes on pages 26 to 50 form an integral part of these financial statements. Approved and authorised for issue on behalf of the Board of Trustees on 16 May 2024
Judith Hedgley Chair, Board of Trustees
CIEH Annual Report 2023
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## Consolidated Cash Flow Statement
**for the year ended 31 December 2023**
CIEH Annual Report 2023
25
## Notes to the Financial Statements
## **1. Accounting Policies**
## **1.1 Basis of preparation**
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 and leasehold and investment property, which are included at fair value. The financial statements have been prepared in accordance with the Statement of Recommended Practice for Charities SORP (FRS102), the Charities Act 2011 and applicable accounting standards (FRS102). CIEH meets the definition of a public benefit entity under FRS102.
## **1.2 Going concern**
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 Group financial statements**
The financial statements consolidate the results of the Charity and its wholly owned subsidiary CIEH Limited on a line-by-line basis. A separate Statement of Financial Activities and Income and Expenditure Account for the Charity has not been presented because the Charity has taken advantage of the exemption afforded by section 408 of the Companies Act 2006.
## **1.4 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 lease and has been classified as a long leasehold property.
The Board of Trustees considers that the risks and rewards of ownership rest with the charity and consequently account for the long-leasehold as a finance lease.
The property is split between investment property (note 12) and tangible fixed assets (note 11). Both elements are measured at their fair value. The tangible fixed assets element of the property continues to be depreciated over the remaining term of the lease on a straight line basis. A valuation of the property was performed on 31 December 2023, by an independent valuer that holds the MRICS qualification and has recent experience of both the location and class of investment property being valued.
CIEH Annual Report 2023
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## Notes to the Financial Statements
continued as at 31 December 2023
## **1.5 Other fixed assets**
## Intangible fixed assets:
Intangible fixed assets are measured at cost less accumulated depreciation, and any accumulated impairment losses.
Both software and 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 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.
## **1.6 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.
CIEH Annual Report 2023
27
## Notes to the Financial Statements
continued as at 31 December 2023
## **1.7 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.
## **1.8 Income**
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. Memberships renew annually with the majority renewing at the beginning of the calendar year.
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.
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.
## **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.
CIEH Annual Report 2023
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## Notes to the Financial Statements
continued as at 31 December 2023
## **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. More detail in respect of the accounting estimates is detailed in note 1.15.
## **1.11 Pensions**
CIEH operates a defined contribution scheme for all existing and new members, and the amount charged to the Consolidated Statement of Financial Activities in respect of pension costs and post-retirement benefits is the contribution 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**
Unrestricted Undesignated 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. Basic financial instruments are initially recognised at transaction value and subsequently measured at settlement value. 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.
CIEH Annual Report 2023
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## Notes to the Financial Statements
continued as at 31 December 2023
## **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 contingent 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.
The property lease relating to Chadwick Court has been measured on a fair value basis in line with FRS102. In determining fair value CIEH commissioned a (Royal Institute of Chartered Surveyor’s) RICS registered valuer to undertake the valuation of the property lease for financial reporting purposes. CIEH’s property is unusual in having a very long lease and CIEH is required to reflect the obligations of the lease as a liability as well as account for the property asset as an investment property for the portion let out and as a fixed asset for the portion used by CIEH. We are informed by the valuer that the value of a leasehold is calculated by the ‘profit’ that can be generated from assigning (selling) the lease. Therefore, the rent payable to the ultimate landlord, as well as the rent generated by the tenants, the certainty of this rent now and into the future, as well as the condition of the property are all material to value. The Standard Red Book Valuation calculation includes the full rental liability and income under the lease, which would result in the finance lease liability element being accounted for twice. The Red Book recognises that there are situations when the valuation can be based on special assumptions. CIEH instructed the valuer to adopt a special valuation assumption to reduce the amount of rent assumed in the valuation by the amount of rent that is already accounted for in the lease liability calculation. Reducing the rent cost assumption increases the lease valuation.
The table below shows the Standard Red Book Valuation, the Valuation with Special Assumption, the Net carrying amount on the Balance Sheet of the valuation less the liability.
|Year|Standard Red
Book Valuation|Valuation with
Special
Assumption of a
reduced rent
payable under
the headlease|Long Leasehold
Liability|Net carrying
amount on the
Balance Sheet|
|---|---|---|---|---|
|2022|£7,200,000|£12,750,000|£9,949,158|£2,800,842|
|2023|£5,075,000|
£10,350,000|
£9,946,302|£403,698|
|Change in
valuation|(£2,125,000)|(£2,400,000)|£2,856|£2,397,144|
It should be noted that the Red Book valuation does not represent market value of the lease on the open market.
CIEH Annual Report 2023
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## Notes to the Financial Statements
continued as at 31 December 2023
## **1.16 Prior Year adjustment**
A prior year adjustment has been made to reduce the income recognised for tenants at Chadwick Court and to recognise a liability in respect of the sinking fund and to reflect a change in accounting policy recognising Member Education Pathway Registration Income up front.
## **2. Subsidiary Activities**
CIEH has one wholly owned UK trading subsidiary; CIEH Limited a company registered in England (01999717) and its registered office is Chadwick Court, 15 Hatfields, London SE1 8DJ. 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
CIEH Annual Report 2023
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## Notes to the Financial Statements
continued as at 31 December 2023
## **3. Income**
**Subscriptions and membership** income consists of membership fees, and other sources of income of a membership nature.
(including the membership magazine; Environmental Health News).
**Education** income is in respect of professional exams and public training courses.
**Conference** income arises from the delivery of events to members and the public.
**Commercial trading** income arises from 15Hatfields venue and events business, together with rent from letting part of Chadwick Court.
CIEH Annual Report 2023
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## Notes to the Financial Statements
continued as at 31 December 2023
## **4. Expenditure**
|**4. Expenditure**|**4. Expenditure**||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|**Direct**
**costs**
**£’000**
Membership
**308**
Education
**117**
Conference
**182**
Subtotal costs
**607**
Investment management fee
Commercial trading operations
**Total expenditure**||2023|||**2023**
Direct
**Total**
costs
**£’000**
£’000
**2,430**
374
**1,399**
118
**1,167**
103
**4,996**
595
**34**
**758**
**5,788**|||2022|||
|||**Staff**
**costs**|**CIEH**
**CIEH**
**Ltd**
**Support**||||Staff
costs|CIEH
CIEH
Ltd
Support||2022
Total|
||**£’000**
**308**
**117**
**182**
**607**|**£’000**
**437**
**311**
**176**
**924**|**£’000**
**369**
**213**
**177**
**759**|**£’000**
**1,316**
**758**
**632**
**2,706**||£’000
374
118
103
595|£’000
532
289
330
1,151|£’000
302
136
144
582|£’000
1,599
718
764
3,081|£’000
2,807
1,261
1,341|
|||||||||||5,409|
|||||||||||34
594|
|||||||||||6,037|
CIEH Annual Report 2023
33
## Notes to the Financial Statements
continued as at 31 December 2023
## **5. Support Costs**
|**5. Support Costs**||||
|---|---|---|---|
|**CIEH LTD**
**£’000**
Staff costs
**322**
Office costs
**193**
Printing , postage and stationery
**1**
Rent, rates and maintenance
**24**
Light and heat
**-**
Publicity and marketing
**74**
Research and development
**36**
Telephones
**9**
Computers
**-**
Legal and professional
**-**
Insurance
**11**
Bank charges
**17**
Finance lease and loan interest
**-**
Governance costs (see note 6)
**18**
Irrecoverable VAT
**-**
Depreciation, and loss on disposal
of tangible and intangible assets
**54**
**Support costs**
**759**|**2023**|**Total**
CIEH LTD
**£’000**
£’000
**1,476**
295
**408**
83
**5**
1
**214**
21
**118**
-
**117**
49
**47**
2
**30**
9
**3**
-
**190**
-
**49**
16
**40**
15
**390**
-
**136**
19
**36**
-
**206**
72
**3,465**
582|2022|
||**CIEH**
**£’000**
**1,154**
**215**
**4**
**190**
**118**
**43**
**11**
**21**
**3**
**190**
**38**
**23**
**390**
**118**
**36**
**152**
**2,706**||CIEH
Total
£’000
£’000
1,680 1,975
265 348
3 4
155 176
60 60
64 113
20 22
18 27
7 7
163 163
30 46
26 41
363 363
26 45
31 31
170 242
3,081 3,663|
CIEH Annual Report 2023
34
## Notes to the Financial Statements
continued as at 31 December 2023
## **6. Governance Costs**
Governance costs relate to the Board and all Committees (Membership, Learning and the Profession Advisory Group, Appointments and Remunerations Committee, Risk and Audit Committee). It includes election and interview costs for governance roles including online voting software. Costs for the AGM and any special meetings including room hire, electronics and voting software. Legal and governance advice. Board secretarial and administration work. Meeting costs and expenses.
## **7. Net expenditure for the year**
CIEH Annual Report 2023
35
## Notes to the Financial Statements
continued as at 31 December 2023
## **8. Employee and Trustee Costs**
CIEH Annual Report 2023
36
## Notes to the Financial Statements
continued as at 31 December 2023
The executive management team of 4.33 (2022: 4.7) were remunerated £537,775 (2022: £500,559). Included within this total there were company pension contributions totalling £60,148 (2022: £54,236). They received £9,824 benefits (2022: £8,695). The Group makes pension contributions on behalf of 6 (2022: 6) of the employees whose emoluments exceed £60,000.
During the year termination payments were agreed of £30,442 (2022: £314,727) and at the year-end £nil had not been paid (2022: £94,406).
No Board of Trustee member received any remuneration for services as a trustee (2022: 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 £1,692 to 7 Trustees (2022: £2,226 to 7 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 pension fund to which CIEH contributes were as follows
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 2023
37
## Notes to the Financial Statements
continued as at 31 December 2023
## **10. Intangible Fixed Assets**
## **Group**
## **CIEH**
CIEH Annual Report 2023
38
## Notes to the Financial Statements
continued as at 31 December 2023
## **11. Tangible Fixed Assets**
**Group**
CIEH Annual Report 2023
39
## Notes to the Financial Statements
continued as at 31 December 2023
## **Tangible Fixed Assets CIEH**
Long leasehold property relates to CIEH’s property, Chadwick Court, held under finance lease from 20 December 2013. The lease is valued on a fair value basis using the method described in note 1. The carrying amount that would have been recognised had the assets been carried under the cost model is £2,434k.
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## Notes to the Financial Statements
continued as at 31 December 2023
## **12. Investments**
65% of Chadwick Court has been let on a 10 year lease and therefore represents Investment Property to the Group. The lease is valued on a fair value basis using the method described in note 1.
## **12.1 Subsidiary Undertakings**
CIEH holds the entire equity interest in CIEH Limited, a company incorporated in the United Kingdom. The equity interest was donated to CIEH. The company is currently engaged in the delivery of the charity’s primary purpose objectives.
## **13. Interest Payable**
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## Notes to the Financial Statements
continued as at 31 December 2023
## **14. Debtors**
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## Notes to the Financial Statements
continued as at 31 December 2023
## **15. Creditors**
Obligations under finance lease relate to the property lease for Chadwick Court. The term of the lease is 150 years expiring on 19 December 2163. Obligations are based on the initial rent of £345k per annum. In 2018 there was a rent review and an additional £85k per annum was added to the rent charge. This is recognised as an expense as incurred through the income and expenditure account. Rent reviews occur every 5 years with an upward only rent review to 35% of open market rent. The next review was due December 2023 and CIEH is in discussions with the landlord. A final decision expected during 2024.
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## Notes to the Financial Statements
continued as at 31 December 2023
## **16. Reconciliation of movement in total funds**
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## Notes to the Financial Statements
continued as at 31 December 2023
## **16. Reconciliation of movement in total funds (contd.)**
The Trustees of CIEH have created two new designated funds for
1. illiquid fixed assets. The value of illiquid fixed assets including investment property and related liabilities is £1.7m. This is because illiquid assets are not readily available to directly support members.
2. multi-year capital and project expenditure. Trustees believe that it is important to designate this type of expenditure as it affects the amount of reserves the Trustees can choose to apply to further activities in support of members. In 2022 the property capital fund was based on an estimate of £3.1m based on the surveyors report. During 2023 CIEH undertook a detailed property condition review and the estimated planned preventative maintenance costs for maintaining the building on an as is basis is £1.75m over the next 10 years. There is approved other capital and project spend of £0.2m. The total designated fund is £1.95m.
## **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 2023 are as follows
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## Notes to the Financial Statements
continued as at 31 December 2023
## **18. Cashflows resulting from operations**
|**18. Cashflows resulting from operations**|||
|---|---|---|
|**Reconciliation of deficit for the financial year to**|**Group**||
|**net cash flow from operations**|**2023**|2022|
||**£’000**|£’000|
|**Cash flows from operating activities**|||
|(Deficit)/Surplus for the financial year|**(2,144)**
|(5,974)|
|**Adjustments to exclude:**|||
|Depreciation of intangible assets|**100**
|100|
|Depreciation of tangible assets|**100**
|142|
|Sale of tangible fixed assets|**6**
|-|
|Interest paid|**340**
|342|
|Investment income|**(143)**
|(112)|
|Exceptional gain on defined benefit scheme|**-**
|(6,007)|
|Leasehold property revaluation (loss)/gain|**2,400**
|10,750|
|Investments - management fee|**32**
|34|
|Investments -unrealised losses / (gains)|**(239)**
|465|
|Debtors - (increase) / decrease|**48**
|90|
|Stock - (increase) / decrease|**(4)**
|(5)|
|Creditors - increase / (decrease)|**(408)**
|341|
|Cash generated from operations|**88**
|166|
|Interest paid|**(389)**
|(363)|
|**Net cash flow resulting from operating activities **|**(301)**
|(197)|
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## Notes to the Financial Statements
continued as at 31 December 2023
## **19. Analysis of net debt**
|**19. Analysis of net debt**||||||
|---|---|---|---|---|---|
||**01-Jan**||**Cash**||**31-Dec**|
|**Group**|**2023**||**flow**||**2023**|
||**£’000**||**£’000**||**£’000**|
|Cash at bank and in hand|1,568||(346)||**1,222**|
|Debt due within one year||||||
|Finance Lease|(345)||-||**(345)**|
|Debt due after more than one year|-|||||
|Finance Lease|(9,604)||3||**(9,601)**|
|Other loans|(800)||-||**(800)**|
||(9,181)||(343)||**(9,524)**|
## **20. Reconciliation of net cashflow to movement in net debt**
|Increase / (decrease) in cash in the year
Loan
Cash to repay loan
Movement in net debt in the year
Net debt at 1 January
Net debt at 31 December|**2023**|**£'000**
**(343)**
**(9,181)**
**(9,524)**|2022||
|---|---|---|---|---|
||**£’000**
**(346)**
**-**
**3**
||£'000
(310)
-
3
|£'000
(307)|
|||||(8,874)|
|||||(9,181)|
## **21. Controlling Party**
CIEH is run by its Board of Trustees, who are appointed by the members of CIEH and the board.
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## Notes to the Financial Statements
continued as at 31 December 2023
## **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 £4,107 (2022: £4,241).
## **23. Capital Commitments**
At 31 December 2023 there were no group capital commitments (2022: £22,070 had been authorised and contracted for).
## **24. Related Party Transactions**
During the year CIEH received Gift Aid payments of £nil (2022:£nil) 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.
There were no related party transactions.
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## Notes to the Financial Statements
continued as at 31 December 2023
## **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
|Operating leases as a lessee|**Group**||**CIEH**||
|---|---|---|---|---|
||**2023**|2022|**2023**|2022|
||**£'000**|£'000|**£'000**|£'000|
|Other assets|||||
|Payable within 1 year|**21**|27|**11**|14|
|Payable during 2 to 5 years||21||10|
||**21**|48|**11**|24|
|Operating leases as a lessor|**Group**||**CIEH**||
||**2023**|2022|**2023**|2022|
||**£'000**|£'000|**£'000**|£'000|
|Investment property|||||
|Receivable within 1 year|**836**|837|**836**|837|
|Receivable during 2 to 5 years|**4,140**|3,698|**4,140**|3,698|
|Receivable 5+ years|**409**|1,466|**409**|1,466|
|||-||**-**|
||**5,385**|6,001|**5,385**|6,001|
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## Notes to the Financial Statements
continued as at 31 December 2023
## **26. Prior year adjustments**
Prior year adjustment to Year 2022 reversing recognising deferred income up front for pathway registration income and to earlier years correcting the service charge sinking fund treatment for tenants at Chadwick Court so that it is held as a liability rather than taken as income.
|**Total Turnover**
Total Turnover, as previously stated
Prior year adjustment
Total Turnover, as restated
**Total Creditors: amounts falling due within one year**
Total Creditors, as previously stated
Prior year adjustment
Total Creditors, as restated
**Total Reserves**
Total equity, as previously stated
Prior year adjustment
Total reserves, as restated|**2022**|**2022**|
|---|---|---|
||**CIEH**|**Group**|
||£'000
2,953
73
3,026
1,986
(60)
1,926
|£'000
5,199
73
5,272
2,364
(60)
2,304
8,433
60
8,493|
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## About CIEH
## **President:** Mark Elliott (appointed 1 January 2024) **Trustees who served during the year and Trustees who continue to serve:**
||**Role**|**Date of appointment**|**Date of resignation**|
|---|---|---|---|
|Stephanie Appiah-Anderson|Trustee|1 January 2022|29 March 2023|
|Julie Barratt|President|1 January 2021|14 August 2023|
|Nicholas Chapman|Trustee|26 July 2023|Current|
|Sterling Crew|Trustee|1 January 2021|29 March 2023|
|Sterling Crew|Trustee|1 May 2024||
|Joan Elliott|Trustee|1 January 2022|22 February 2023|
|Mark Elliott|President|1 January 2023|Current|
|Jonathan Hayes|Trustee|1 January 2022|17 April 2023|
|Judith Hedgley|Chair|28 April 2023|Current|
|Sarah Johns|Deputy Chair|26 July 2023|Current|
|Roisin Kerr|Trustee|1 January 2020|17 April 2023|
|Rosemary Lee|Trustee|18 April 2023|26 July 2023|
|Penelope Dawson Malone|Trustee|26 July 2023|Current|
|Abigail Miller|Trustee|18 April 2023|26 July 2023|
|Madhu Murali|Trustee|25 June 2020|29 March 2023|
|Saravana Namasivayam|Trustee|1 January 2023|Current|
|David Newsum|Trustee|6 February 2023|1 June 2023|
|Daniel Oerther|Trustee|1 January 2020|30 November 2023|
|Nick Pahl|Trustee|27 April 2017|5 February 2023|
|Kathyrn Preece|Trustee|26 July 2023|1 May 2024|
|Lindsay Shaw|Trustee|26 July 2023|Current|
|Kirpal Singh Tahim|Trustee|1 January 2019|30 November 2023|
|Vanessa Wardle|Trustee|1 January 2021|28 April 2023|
|James Johnson|Trustee|1 May 2024||
|Kev Shawcross|Trustee|1 May 2024||
## **CIEH Executive Management Team**
Phil James Fran McCloskey
Jon Buttolph Louise Hosking Justin Turner
Chief Executive Officer (Resigned October 2023) Acting Chief Executive Officer (October 2023 – present) Director of Finance (October 2022 – October 2023) Executive Director of Professional Standards Executive Director of Environmental Health (May 2023 – present) Executive Director of Commercial and Digital Innovation
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## **Risk and Audit Committee**
Carol Healy (Chair) John Cragg (Term ended 31 December 2023) Michael Jackson (Term started 1 January 2024) Madhu Murali (Resigned 29 March 2023) Saravana Namasivayam Robert Spain (Term ended 31 December 2023) Matt Thwaite (Term started1 April 2024)
## **Appointments and Remunerations Committee**
James Howe (Chair) Joan Elliot (resigned 22 February 2023) Judith Hedgley (resigned 1 April 2024) Maria Jennings Tracey Marshall (Term ended 30 September 2023) Andrea Sutherill (Term ended 31 December 2023) Nicholas Chapman (Term started 1 April 2024) Lamin Tamba (Term started 1 April 2024)
## Advisors
## **Bankers**
HSBC Bank Plc, 60 Queen Victoria Street, London EC4N 4TR
## **Auditors**
Crowe U.K. LLP 55 Ludgate Hill London, UK EC4M 7JW
## **Investment managers**
Cazenove Capital Management 1 London Wall Place London EC2Y 5AU
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