Final Accounts 2009_0

Chartered Institute of Public Relations Financial statements for the year ended 31 December 2009

Chartered Institute of Public Relations Contents

Page

Administrative and reference information 1 - 3

Corporate governance statement 4 - 5

Financial review 6

Auditors' report 7

Revenue account 8

Balance sheet 9

Cash flow statement 10

Notes to the financial statements 11 - 17

Page 1

Chartered Institute of Public Relations Administrative and reference information 2009 Officers: President Kevin Taylor President Elect Jay O’Connor Treasurer Sally Sykes Immediate Past President Elisabeth Lewis-Jones Director General Colin Farrington Deputy Director General Ann Mealor 2009 Council: Miti Ampoma Emma Leech Matt Appleby Elisabeth Lewis‐Jones Carol Arthur Jason MacKenzie Andrew Bartlett Scott McKenzie Kevin Bentley Elizabeth Male Tom Bowden‐Green Pamela Mounter Caraline Brown Paul Mylrea John Brown Jay O'Connor Rob Brown Sarah Pinch Sarah Burton Deborah Powton Debbie Byers Peter Prowse Maire Campbell Jacqueline Purcell Caroline Cecil David Sanders David Crundwell Lisa Shaddick Jane Cumming Alan Smith Gill Dandy Katherine Stedman Paul Davison Jenifer Stirton Helen Dickinson Barbara Stopher Mark Douglas Sally Sykes Jonathan French Kevin Taylor Pat Gaudin Imelda Topping Anne Gregory Gillian Waddell Sarah Hall Adrian Wheeler Anthony Henderson Ashley Wilcox Keith Johnston Justin Wilkes Sally Keith Sue Wolstenholme Edmund King Paul Wynne Quentin Langley

The following were members of Council at the start of 2009 and were replaced when their term of office expired.

Alex Aiken Carol Matthews Elisabeth Anderson Conall McDevitt Mike Browne Justin McKeown Bronwen Eames John De Mierre Wynford Emanuel Melissa Page Marie Ennis Mani Pillai Stephen Jolly Lee Smith Mike Kean Robin Treacher Dennis Kelly Garry White Robert Khan Susan Wilcock Caroline Kinsey Ipek Yigit Deborah Leah Lionel Zetter

Page 2

Chartered Institute of Public Relations Administrative and Reference information (continued) Standing committees and representatives as at 31 December 2009 Business Services and Revenues Jenifer Stirton Chair Rob Brown Helen Dickinson Mark Douglas Jonathan French Sally Sykes Membership Lisa Shaddick Chair John Brown Vice Chair Matt Appleby Carol Arthur Tom Bowden-Green David Crundwell David Sanders Imelda Topping Education and Professional Standards Paul Mylrea Chair Sue Wolstenholme Co-Opted Vice Chair Miti Ampoma Debbie Byers Gill Dandy Pat Gaudin Emma Leech Sarah Pinch Jacqueline Purcell Barbara Stopher Professional Practices Committee Adrian Wheeler Chair Jane Cumming Anne Gregory Rhodri Harries Co-Opted Jane Howard Co-Opted Edmund King Quentin Langley Barry Leggetter Co-Opted Pamela Mounter Deborah Powton Peter Prowse Alan Smith Claire Walker Co-Opted Paul Wynne Disciplinary Committee Jon Aarons June Beedham Ken Cook Alan Dadd Chris Genasi Janet Hildreth Rosemary Inge Elisabeth Lewis-Jones Lord Laird of Artigarvan Harvey Thomas Sam Warnock Ian Wright Lionel Zetter

Page 3

Chartered Institute of Public Relations Administrative and Reference information (continued) Finance Committee Sally Sykes Chair/Treasurer Kevin Taylor President Jay O’Connor President Elect Elisabeth Lewis-Jones Immediate Past President John Brown Remuneration Committee Alison Clarke Chair Elisabeth Lewis-Jones Past President Jay O’Connor John Brown Sally Sykes Kevin Taylor Executive Board (throughout 2009): Kevin Taylor President Elisabeth Lewis-Jones Past President Sally Sykes Treasurer Jay O'Connor President Elect John Brown David Crundwell Jonathan French Sarah Hall Paul Mylrea Lisa Shaddick Jenifer Stirton Adrian Wheeler Sue Wolstenholme Director General Colin Farrington Acting Director General Ann Mealor Solicitors Camerons Solicitors LLP 70 Wimpole Street, London W1G 8AX Auditor Chantrey Vellacott DFK LLP Russell Square House 10/12 Russell Square London WC1B 5LF

Bankers Nat West Bank Plc 134 Aldersgate Street London, EC1A 4LD Institute CIPR Public Relations Centre Address 52-53 Russell Square London, WC1B 4HP Website www.cipr.co.uk Notice of Annual General Meeting The Annual General Meeting of the Chartered Institute of Public Relations will take place at 6pm on Tuesday 15 June 2010 at CIPR Public Relations Centre, 52-53 Russell Square, London WC1B 4HP. All CIPR members are invited. An Agenda will be placed on the CIPR website by 28 May 2010

Page 4

Ann Mealor, Acting Director General 26 April 2010

Chartered Institute of Public Relations Corporate governance statement Corporate Governance

The Council

The Council is the governing body of the CIPR. Ultimately all acts undertaken by the officers and staff are in the name of,

and with the authority of, the Council.

The Council meets three to four times a year and focuses on overall strategy and co-ordination. Day to day responsibility

is delegated to the CIPR Executive Board and Standing Committees.

The Executive Board

The day-to-day operations of the Chartered Institute are supervised by the Board. This is chaired by the President and

consists of the elected officers (Immediate Past President; President; President-elect and Treasurer); the Director-

General, Deputy Director General and other elected members of the Council, including the Chairs of the four Standing

Committees. The Board works with the Director General to ensure the co-ordination of Institute business. Standing

Committees may refer matters to the Board for guidance and direction. The Board meets approximately eight times a year.

Standing Committees

There were six ‘Standing Committees’ in 2009: Membership; Professional Practices; Education and Professional

Standards; Business Services and Revenue; Finance; Remuneration. A Disciplinary Committee which does not include

members of the Council meets as necessary to consider references to it by the Professional Practices Committee. A

Qualifications Awarding Body, which includes some Council members, is separately constituted.

Committee roles are as follows:

Membership: admission policy; recruitment; member benefits and services.

Professional Practices: policy and ethical issues affecting Institute members; complaints against members.

Education and Professional Standards: education and training policy and implementation.

Business Services & Revenue: overseeing the development of trading functions including conferences and

publications.

Finance: financial and budgetary policy.

Remuneration: salary and terms and conditions of senior staff.

Financial responsibilities of the Council

The Council is responsible for preparing the financial statements in accordance with applicable law and United Kingdom

Generally Accepted Accounting Practice

Bye-law 38 requires the Council to prepare financial statements for each financial year which give a true and fair view of

the state of the affairs of the Institute and of the surplus or deficit of the Institute for that year. In preparing these the

Council is required to:

- select suitable accounting policies and apply them consistently;

- make judgements and estimates that are reasonable and prudent;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Institute will

continue in business.

The Council is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the

financial position of the Institute. It is also responsible for safeguarding the assets of the Institute and hence for taking

reasonable steps for the prevention and detection of fraud and other irregularities.

Page 5

Chartered Institute of Public Relations Corporate governance statement (continued)

Financial responsibilities of the Council (continued)

The Council must, in determining how amounts are presented within items in the revenue account and balance sheet,

have regard to the substance of the reported transaction or arrangement, in accordance with generally accepted

accounting principles and practice.

The Council is responsible for the maintenance and integrity of the corporate and financial information included on the

Institute’s website. Legislation in the United Kingdom governing the preparation and dissemination of the financial

statements and other information included in annual reports may differ from legislation in other jurisdictions.

Page 6

Chartered Institute of Public Relations Financial review

2009 was a difficult year for the Institute. We suffered exceptional property-related relocation costs and our trading saw a downturn in the autumn. However, our membership subscriptions held up well as did our Excellence Awards programme, both showing growth on the previous year.

Our loss – of £580k – is substantial. However, it is less than the originally anticipated £700k due to swift action to cut costs. Reductions were made to staff salaries and pensions, and activities that were not a priority were cut. The results of these actions will be seen in 2010 in lower costs and further benefit should follow through to 2011. I am grateful for the efforts of everyone who helped us achieve these savings while we continued to invest in and maintain our services to members.

At the heart of this loss are the property costs around our move from St James’s Square to Russell Square. The circumstances around our move, including Serious Fraud Office investigations into our previous landlord who gave us notice to quit, have been widely reported. However, the move left us with £308k of exceptional costs and we faced a further £205k of rent payments due to overlapping occupancy. This is why our ‘premises expenses’ are higher than last year. Although we enjoyed a 14 month rent free period on Russell Square, our accounts need to show our future rental obligations. This is why the entry for ‘creditors’ is higher than last year.

On the positive side, as a result of the rent free period our cash flow remained strong throughout 2009 and continues to remain so. We now have, in Russell Square, a building that is accessible, fit for purpose and will allow us to expand our training and qualifications programmes when the market is right. The newly established CIPR Centre for Learning, which delivers our qualifications out of Russell Square, has proved to be very successful and is becoming increasingly popular with students. We are determined to make our building work hard for us and are already sharing some of our space with the British Promotion and Merchandise Association.

The other reason for our loss was a downturn in key activity areas such as qualifications and training due to the recession. However, as we enter this new year, early indications are that trading conditions have improved.

We have our 2010-2012 Strategic Plan in place, costs are being closely monitored and we are reviewing the structure of our organisation in order to ensure it best fits the needs of our members and the profession. We are streamlining processes and ensuring efficient operations are in order to deliver our 2010 plan to budget. Membership remains buoyant. Our goal is to produce a surplus for this year in order to build up our reserves.

Colin Farrington, Director General left the CIPR after 11 years at the end of March 2010. I was appointed Acting Director General by the Board in June 2009. I would like to thank my CIPR colleagues and Executive Board members for their commitment and support in reshaping the Institute to face the challenges ahead.

Ann Mealor FCIPR

Acting Director General

26 April 2010

Page 7

Chartered Institute of Public Relations Independent auditor’s report to the members of Chartered Institute of Public Relations

We have audited the financial statements of Chartered Institute of Public Relations (Institute) for the year ended 31 December 2009 which comprise the revenue account, the statement of total recognised gains and losses, the balance sheet, cash flow statement and the related notes. These financial statements have been prepared in accordance with the accounting policies set out therein. This report is made solely to the Institute's members, as a body. Our audit work has been undertaken so that we might state to the Institute's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Institute and the Institute's members as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of the council and the auditor As described in the statement of financial responsibilities of the Council the Institute's Council is responsible for the preparation of the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and have been properly prepared in accordance with appropriate accounting standards. We also report to you if, in our opinion, the Institute has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information regarding the Council’s remuneration and transactions with the Institute is not disclosed. We read other information contained in the Financial Statements and consider whether it is consistent with the audited financial statements. This other information comprises only the corporate governance statement and the financial review. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information. Basis of audit opinion We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Council in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Institute’s circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion In our opinion the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of Institute’s affairs as at 31 December 2009 and of its deficit for the year ended 31 December 2009. Chantrey Vellacott DFK LLP Chartered Accountants and Statutory Auditor London 26 April 2010

Chartered Institute of Public Relations

The notes on pages 11 to 17 form an integral part of these financial statements.

Page 8

Revenue account for the year ended 31 December 2009

2009 2008 As restated

Notes £ £

Income 2 4,432,366 4,775,494

Direct costs (1,501,372) (1,849,087) _________ _________ Gross surplus 2 2,930,994 2,926,407

Operational costs (221,850) (292,913)

Administrative expenses 5 (3,094,385) (2,826,841)

Exceptional costs 3 (307,849) -

Other operating income 113,349 123,455 _________ _________ Operating deficit 3 (579,741) (69,892)

Other interest receivable and

similar income 2,489 34,502

Interest payable on finance leases (2,709) - _ ______ _______ Deficit on ordinary activities before taxation (579,961) (35,390)

Tax on deficit on ordinary activities 6 - 414 _ ______ _______ Retained deficit for the year (579,961) (34,976) __ _____ _______ Statement of Recognised Gains and Losses

for the year ended 31 December 2009 2009 2008 As restated £ £

Loss for the financial year (579,961) (34,976)

________ _______

Total losses for the year (579,961) (34,976) _______

Prior year adjustment 14 78,089 _ ______ Total losses recognised since last annual report (501,872) __ _____


The notes on pages 11 to 17 form an integral part of these financial statements.

Page 9

Balance sheet as at 31 December 2009 2009 2008 As restated Notes £ £ £ £

Fixed assets

Tangible assets 7 293,928 193,924

Current assets

Stocks 18,642 5,978

Debtors 8 479,423 797,336

Cash at bank and in hand 528,265 309,688 ___ _ ___ ___ ____

1,026,330 1,113,002

Creditors: amounts falling

due within one year 10 (820,411) (630,824) _ ______ ___ ____

Net current assets 205,919 482,178

Debtors: amounts falling

due after more than one year 9 232,500 232,500

__ _____ _______

Total assets less current

liabilities 732,347 908,602

Creditors: amounts falling

due after more than one year 11 (376,331) -

Deferred income 12 (521,941) (494,566)

_ ______ _______

Net liabilities (165,925) 414,036 _ ______ _______

Reserves 13

Revenue account (431,990) 167,695 National, regional and sectoral groups balances 266,065 246,341 _ ______ _______

(165,925) 414,036 _ ______ _______

The financial statements were approved and authorised for issue by the Council and were signed on its behalf on 26 April

2010.

Kevin Taylor Sally Sykes

President 2009 Treasurer 2009


Page 10

Cash flow statement for the year ended 31 December 2009 2009 2008 £ £ £ £ Net cash inflow/(outflow) from operating activities 336,628 (155,236) Returns on investments and servicing of finance: Interest received 2,489 34,502 Interest paid – interest element of finance lease payments (2,709) - (220) 34,502 Taxation - (4,250) Capital expenditure and financial investment: Purchase of tangible assets (102,828) (97,287) Financing Capital element of finance lease rental payments (15,003) -

Increase/(decrease) in cash for the year 218,577 (222,271) Reconciliation of net cash flow to movement in net funds: Increase/(decrease) in cash for the year 218,597 (222,271) Cash inflow from increase in lease financing 15,003 - New finance leases (97,295) -

Movement in net funds 136,305 (222,271) Net funds at 1 January 2009 309,668 531,939

Net funds at 31 December 2009 445,973 309,668 Analysis of Net Funds: 31 Dec 08 cash flow other non cash 31 Dec 09 movement £ £ £ £ Cash at bank and in hand 309,688 218,577 - 528,265 Finance leases - 15,003 (97,295) (82,292)

Net Funds 309,688 233,580 (97,295) 445,973 Reconciliation of operating loss to net cash inflow from operating activities: Loss on ordinary activities before taxation (579,961) (35,390) Interest payable 2,709 - Interest receivable (2,489) (34,502) Depreciation charge 94,645 57,166 Loss on disposal of fixed assets 5,474 - Increase/(decrease) in stocks (12,664) (1,930) Decrease/(increase) in debtors 317,913 (324,403) Increase in creditors 483,626 159,348 Decrease in provisions - (28,960) Increase in deferred income 27,375 53,435

Net cash inflow/(outflow) from operating activities 336,628 (155,236)

Chartered Institute of Public Relations Notes to the financial statements for the year ended 31 December 2009

Page 11

1. Accounting policies

1.1. Accounting convention

The financial statements are prepared under the historical cost convention and in accordance with applicable law

and UK accounting standards (United Kingdom Generally Accepted Accounting Practice).

1.2. Going concern

Notwithstanding the loss for the year and the net liabilities disclosed in the balance sheet, the budget and cashflow

prepared for the forthcoming year have been prepared on a basis which shows that the Institute will meet all its

liabilities as they fall due. In addition, the Institute’s working capital requirements are funded by way of subscription

advances which are not expected to be repaid in the normal course of business. On this basis, the Council

consider it appropriate to prepare the financial statements on a going concern basis.

1.3. National, regional and sectoral groups

The Institute makes grants to national, regional and sectoral groups to fund their activities. These grants are

eliminated on consolidation. The revenue account therefore recognises the revenues generated and expenditure

incurred by these groups during the year from their activities, and the balance sheet recognises any residual net

assets, for example cash balances, debtors less liabilities at the year end.

1.4. Income recognition

Membership subscription income is recognised in the year to which it relates. Student education and qualification

income is recorded in the year courses start. Income from seminars and events is recognised upon the timing of

the event and all other income is recognised upon the provision of the goods or services excluding VAT.

Subscription, education, events and other income received in advance is carried forward as deferred income and

included within creditors at the year end. Amounts received in advance for subscriptions are carried forward as

deferred income, which have now been disclosed separately from creditors on the face of the balance sheet.

1.5. Tangible fixed assets and depreciation

Depreciation is provided at rates calculated to write off the cost less residual value of each asset over its expected

useful life, as follows:

Leasehold improvements - Straight line over the life of the lease

Computers - 25% straight line Computer software - 33 ⅓ % straight line

Furniture and equipment - 10%-25% straight line

1.6. Leasing

Rentals payable under operating leases are charged against income on a straight line basis over the lease term

taking into account the rent free period at the commencement of the lease. The rent free period equalisation

creditor will be released over five years on the basis of the difference between rent charged and payments made.

Assets held under finance leases are capitalised and disclosed under tangible fixed assets at their fair value. The

capital element of the future payments is treated as a liability and the interest charged to the revenue account on a

sum of digits basis.

1.7. Stocks

Stock comprising publications in print or production are valued at the lower of cost and net realisable value after

making due allowance for obsolete and slow moving items.


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1.8. Retirement benefits

The Institute operates a defined contribution pension scheme available to all qualifying employees. The

contributions payable in providing benefits are charged in the revenue account in the year to which they relate.

1.9. Taxation

The Institute’s transactions with its members are not subject to tax. Other transactions are taxable on a basis

agreed with HM Revenue & Customs.

2. Income and gross surplus analysis 2009 2008 As restated Gross Gross Income surplus Income surplus £ £ £ £ Membership subscriptions 1,487,392 1,487,392 1,423,776 1,423,776 Education and qualification 1,713,374 985,993 1,856,810 1,080,613 Conferences, seminars and awards events 1,114,018 413,076 1,356,568 322,952 Other 117,582 44,533 138,340 99,066 _________ _________ _________ _________

Total 4,432,366 2,930,994 4,775,494 2,926,407 _________ _________ _________ _________

3. Operating deficit 2009 2008 £ £

Operating deficit is stated after charging:

Depreciation on owned fixed assets 87,616 57,166

Depreciation on assets held under finance leases 6,849 -

Loss on disposal of tangible fixed assets 5,474 -

Auditor’s remuneration 17,250 16,250

Operating lease rentals: property 564,781 302,100

Finance charges on finance leases 2,709 -

Exceptional costs – dilapidations 252,863 -

– other including removal costs 54,986 - _________ _________

4. Staff costs 2009 2008

£ £

Salaries and wages 1,456,096 1,465,983

National insurance 149,364 150,157

Pension contributions 150,427 133,705 _________ _________ 1,755,887 1,749,845 _________ _________

2009 2008

No. No.

Average number of staff 40 40 ____ ____

The Institute operates a defined contribution pension scheme in respect of the staff. The pension charge

represents contributions due from the Institute. The scheme and its assets are held and managed by independent

managers.


Page 13

5. Administration costs 2009 2008

£ £

Staff costs 1,755,887 1,710,311

Staff insurance, training and recruitment costs 79,458 134,225

Premises 789,111 508,457

Office costs 114,910 123,292

Other costs 258,105 293,390

Depreciation 91,440 57,166

Loss on sale of fixed assets 5,474 - _________ _________

3,094,385 2,826,841 _________ _________

6. Tax on surplus on ordinary activities

(a) Analysis of the tax charge for the period 2009 2008

£ £

Current tax

UK corporation tax - -

Adjustments in respect of prior periods - (414) _______ _______

- (414) _______ _______

(b) Factors affecting the tax charge for the period

The tax assessed for the period is lower than the standard rate of corporation tax in the UK (21%) (2008: 20.75%).

The differences are explained below:

Loss on ordinary activities before tax (579,961) (35,390) _______ _______

Tax on profit on ordinary activities at standard CT rate of 21% (2008: 20.75%) (121,792) (7,343)

Effects of:

Net income not taxable/(net expenses not deductible) 33,849 (6,979)

Capital allowances less than depreciation 5,577 4,602

Unrelieved tax losses 82,366 9,720

Adjustments in respect of previous periods - (414) _______ _______

Current tax charge for the period (note 6(a)) - (414) _______ _______

Taxation is provided on the Institute's income from investment and surpluses arising from non-member sources.


Page 14

7. Tangible fixed assets Leasehold Computer Furniture &

Improvements Computers Software equipment Total

£ £ £ £ £

Cost

At 1 January 2009 91,194 334,880 8,745 161,723 596,542

Additions 92,622 4,928 - 102,523 200,123

Disposals (30,532) - - (7,296) (37,828) _______ _______ _______ _______ _______

At 31 December 2009 153,284 339,808 8,745 257,000 758,837 _______ _______ _______ _______ _______

Depreciation

At 1 January 2009 21,199 290,755 - 90,664 402,618

On disposals (30,532) - - (1,822) (32,354)

Charge for the year 39,990 24,200 2,915 27,540 94,645 _______ _______ _______ _______ _______

At 31 December 2009 30,657 314,955 2,915 116,382 464,909 _______ _______ _______ _______ _______

Net book values

At 31 December 2009 122,627 24,853 5,830 140,618 293,928 _______ _______ _______ _______ _______

At 31 December 2008 69,995 44,125 8,745 71,059 193,924 _______ _______ _______ _______ _______

Finance Leases

Included within the net book value of £293,928 is £70,885 (2008: £nil) relating to assets held under finance lease.

The depreciation in respect of such assets amounted to £6,849 (2008; £nil).

8. Debtors: amounts falling due within one year 2009 2008

£ £

Trade debtors 242,592 400,161

Other debtors 171,797 230,077

Prepayments and accrued income 61,499 166,557

Pension contributions 3,535 541 _______ _______

479,423 797,336 _______ _______

9. Debtors: amounts falling after more than one year 2009 2008

£ £

Prepayment: rent deposit 232,500 232,500 _______ _______

Long term debtors are shown separately from current assets due to their material nature and the fact that they will not be repaid within one year. This relates to the rent deposit on the Russell Square offices 10 year lease.


Page 15

10. Creditors: amounts falling due 2009 2008

within one year As restated

£ £

Trade creditors 295,640 263,998

Corporation tax - -

Other taxes and social security costs 56,480 47,246

Other creditors 169,302 6,440

Accruals and deferred income 236,528 313,140

Rent free period equalisation 31,000 -

Obligations under finance leases (note 17) 31,461 - _______ _______

820,411 630,824 _______ _______

2009 2008

£ £

11. Creditors: amounts falling due

after one year

Obligations under finance leases (note 17) 50,831 -

Rent free period equalisation 325,500 - _______ _______

376,331 - _______ _______ Obligations under finance leases are secured on the assets to which they relate. 12. Deferred Income

Deferred income represents amounts billed in advance in respect of membership subscriptions. As these sums are not expected to be repaid in the normal course of business, they have been shown separately on the face of the balance sheet. In previous years these amounts were included in creditors falling due within one year. The comparative figures have been re-stated.

13. Reserves

Institute National, Regional

& Sectoral groups Total

£ £ £

At 1 January 2009 as previously reported 89,606 246,341 335,947

Prior year adjustment (note 14) 78,089 - 78,089 _______ ___________ ______________

At 1 January 2009 as restated 167,695 246,341 414,036

(Deficit)/Surplus for the year (599,685) 19,724 (579,961)

_______ _______ _______

At 31 December 2009 (431,990) 266,065 (165,925) _______ _______ _______


Page 16

14. Prior year adjustment

Total 2008 Prior years

£ £

£

Decrease in deferred subscription income 78,089 8,646 69,443

Net increase in reported profits

_______

78,089

_______

_______

8,646

_______

_______

69,443

_______

The prior year adjustment arises due to a correction of the release of deferred subscription income paid in installments which had been incorrectly allocated in prior years. The comparative figures have been restated to reflect this change.

15. Financial commitments

At 31 December 2009 the Institute had annual commitments under non-cancellable operating leases as follows:

2009 2008

£ £

Leases of land and buildings

Expiry date:

Within one year - 171,510

More than five years 465,000 - _______ _______

With effect from 5 January 2009 the Institute signed a 10 year lease ending on 4 January 2019 on its offices in Russell Square at an annual rent of £465,000 with a rent free period of 14 months. The first rent review date is due on 5 January 2014.

16. Related party transactions (1) Under the Royal Charter, Council members are not entitled to receive any fees related to their work as

Council members. Council members qualified as approved trainers or acting as examiners may also receive fees on the same basis and subject to the same conditions as other CIPR members when carrying out these activities on the CIPR’s behalf. These fees amounted in aggregate to £7,676 (2008: £7,720).

(2) Payments were also made to Ashley Public Relations a business owned by Sue Wolstenholme, Council

member and Chair of the Qualifications Awarding Body, amounting to £16,265 (2008: £44,444). These were fees and expenses primarily for specialised work relating to qualifications overseas. No amounts were outstanding at the year end. The role of a Council or Board member is a voluntary position and no fees are paid related to this work.

(3) The Council of the Institute approves the appointment of the trustees of the Chartered Institute Public

Relations Benevolent Fund (Iprovision). The trustees of Iprovision have full responsibility for the decision making and operations of the Charity and accordingly the Council of CIPR do not exercise dominant influence over the affairs of Iprovision. Accordingly the Council of CIPR do not consider Iprovision to be a subsidiary undertaking and therefore have not prepared consolidated accounts.

Copies of the accounts of Iprovision may be obtained by contacting CIPR Public Relations Centre 52-53

Russell Square, London WC1B 4HP.


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17. Commitments under finance leases Future commitments under finance leases are as follows:

2009 2008

£

£

Amounts payable within one year 35,424 -

Amounts payable between two and five years 53,136 -

_______

88,560

_______ -

Less: interest and finance charges relating to future periods (6,268) -

_______ 82,292

_______

_______ -

_______

Finance leases are analysed as follows:

Current obligations 31,461 -

Non-current obligations 50,831 -

_______

82,292

_______

_______ -

_______


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The following pages do not form part of the published accounts and are for management use only.


Page 19

Detailed revenue account for the year ended 31 December 2009

2009 2008

£ £ £ £

Income

Membership subscriptions 1,487,392 1,423,776

Conferences and seminars 347,485 548,133

Education 1,145,524 1,177,103

Qualifications 567,850 679,707

Awards events 766,533 808,435

Publications 17,133 24,394

Website 100,449 113,946 _________ _________

4,432,366 4,775,494

Direct costs

Conferences and seminars 282,879 475,658

Education 573,644 501,981

Qualifications 153,737 274,216

Awards events 418,063 557,958

Publications 7,011 10,676

Website 66,038 28,598 _________ _________

1,501,372 1,849,087 _________ _________

(1,501,372) (1,849,087) _________ _________

Gross surplus 2,930,994 2,926,407

Operational costs 221,850 292,913

Administrative expenses 3,094,385 2,826,841

Exceptional costs 307,849 - _________ _________

(3,624,084) (3,119,754) _________ _________

(693,090) (193,347)

Other operating income

Rent receivable (472) 14,131

Other income 113,821 109,324 _______ _______

113,349 123,455 _______ _______

Operating deficit (579,741) (69,892)

Other income and expenses

Interest receivable

Bank deposit interest 2,489 34,502

Interest payable

Leasing finance charges (2,709) - _______ _______

Net deficit on ordinary activities for the year (579,961) (35,390) _______ _______


Page 20

Operational costs and administrative expenses for the year ended 31 December 2009

2009 2008

Operational costs £ £

Journal costs 55,591 73,971

Journal adverts and sales (2,233) (6,868)

Library and research 6,232 7,501

Membership development and services 75,469 89,478

Grants to groups 1,884 7,276

International representation 13,094 30,087

Subscriptions 4,219 4,913

Policy development 970 308

Marketing 9,177 4,054

National, regional and sectoral groups general expenditure 57,447 82,193 _______ _______

221,850 292,913 _______ _______

Administrative expenses

Wages and salaries 1,456,096 1,426,449

Employer's NI contributions 149,364 150,157

Staff money purchase pension costs 150,427 133,705

Group life and health insurance 69,626 74,368

Staff training and recruitment 9,832 59,857

Premises 789,112 508,457

Insurance 20,181 9,153

Printing and stationery 22,569 27,550

Postage 13,130 19,272

Telephone, fax and internet 22,105 16,683

Computer costs 36,925 50,634

Travelling 44,887 45,492

AGM, elections and annual report 11,173 17,985

Legal and professional 18,170 34,188

Accountancy 33,670 63,185

Audit 17,250 16,250

Bank charges 40,884 45,409

Disciplinary procedures 16,238 119

General expenses 32,102 34,021

Unrecovered VAT 43,730 36,741

Amortisation on short leasehold 39,990 7,466

Depreciation on computers 22,311 33,559

Depreciation on furniture & equipment 29,139 16,141

Losses on disposal of tangible assets 5,474 - __________ __________

3,094,385 2,826,841 __________ __________

Exceptional costs

Dilapidations 252,863 -

Bad Debt – deposit write off 15,000 -

Legal fees – deposit recovery 19,185 -

Premises – removal costs 20,801 - __________ __________

307,849 - __________ __________

Documents

Final Accounts 2009_0