Financial summary 2015

The underlying growth of the organisation continued in the year, measured through average number of employees (109 in 2014/15 against 99 in the prior year).

Work takes place on IIED's Gray's Inn Road building in summer 2015 (Photo: Matt Wright/IIED)

The fall in expenditure to £18.1m in the year against £19.4m in 2013/14 is attributed to a comparable fall in payments to collaborating organisations for project work, which fell to £6.3m from £7.7m in 2013/14.

Reserves policy

Unrestricted reserves closed the year at £2.56m, a decrease by £100,000 after a £184,000 reduction in the Building and Capital Fund designated reserve that tracks the value of leasehold improvements over the remaining lease period on the Gray’s Inn Road site. The unrestricted reserves are the equivalent to approximately 15 per cent of expenditure for 2014-15.

The reserves policy requires an annual review to reassess the risks, and changes in IIED’s income, financial obligations and expenditure. The policy was reviewed during the year and the impact assessment of possible adverse financial events reaffirmed the agreed reserves policy established in 2012.

This concluded that to protect the organisation and its charitable programme against the risks of funding loss through income shortfalls and other unexpected financial losses, the appropriate target range of free reserves would be between £2.2m and £2.8m.

The free reserves of IIED, excluding the net value of leasehold improvements, and comprising its unrestricted reserves and group funds, stand at £1.6m (£1.5m in 2013/14) and thus fall beneath this range. The board has endorsed the target growth of free reserves by £250,000 in 2015/16 and 2016/17.

Investment policy

Reserves were invested in a combination of high interest cash deposits and fixed-term treasury deposits during the year 2014-15. This policy produces an acceptable rate of return while allowing flexibility in accessing funds.

Plans for future periods

IIED’s strategy for 2014-19, Engaging for Change, is ambitious, anticipating continued growth in our four principal research groups and other areas, and bringing together staff across the organisation to deliver on our four new change initiatives. To support this, our Business Plan (our thinking on ‘how’) will be more fully developed.

In addition, a number of diagnostic exercises carried out over the past couple of years have reinforced the need for IIED to strengthen its operations. Both of these elements will require the institute to continue its steady growth over the next five years.

Income by donor type


(total £17.6 million)

70%  Government and government agencies
11%  International and multilateral agencies
19%  Foundations and NGOs

Expenditure by group


(total £18 million)

30%  Natural resources
10%  Sustainable markets
14%  Human settlements
29%  Climate change
8%    Strategy and learning
5%    Communications
4%    Other

Expenditure by type


(total £18 million)

49%  Programme costs
35%  Payments to collaborating entities
16%  Support costs

Income and expenditure for the year ended 31 March 2015

Unrestricted funds

Restricted funds

IIED total 2014/15

IIED total 2013/14

 £

 £

 £

 £

Incoming resources

Incoming resources from generated funds

Voluntary income

-

-

-

652

Investment income

11,201

408

11,609

14,584

Incoming resources from charitable activities

Commissioned studies and research

10,620

18,019,997

18,030,617

19,384,889

Other incoming resources

-

            -

310

Total incoming resources

21,821

18,020,405

   18,042,226

19,400,435

 

Resources expended

Charitable activities

Commissioned studies and research

          77,236

17,803,204

   17,880,440

19,267,903

Publications

-

-

            -

 -

Governance costs

127,034

-

      127,034

116,937

Total resources expended

         204,270

     17,803,204

   18,007,475

       19,384,840

 

Net income/(expenditure)
for the year before transfers

 (182,449)

217,201

       34,751

15,595

Transfers between funds

217,201

 (217,201)

            -

-

Net movement in funds

34,752

0

       34,751

15,595

Funds brought forward at 1 April 2014

2,658,854

-

    2,658,855

2,643,259

Funds carried forward at 31 March 2015

2,693,606

              -

    2,693,606

2,658,854

 All amounts relate to continuing operations. There are no other recognised gains and losses other than those shown above.

Donors

Government and government agencies
Australian Agency for International Development
Department for Environment, Food and Rural Affairs (Darwin fund)
Department for Foreign Affairs and Trade
Department for International Development
Department of Energy and Climate Change
Irish Aid, Department of Foreign Affairs
Norwegian Embassy Mozambique
Royal Danish Ministry of Foreign Affairs
Scottish Government
Swedish International Development Cooperation Agency

International and multilateral agencies
Centre for International Forestry Research
European Commission
International Fund for Agricultural Development
UNDP Asia Pacific Regional Centre
UNDP Botswana
UN Environment Programme
UN Food and Agriculture Organisation
UN Population Fund

Foundations and NGOs
3ie International Initiative for Impact Evaluation
AECOM
Aidenvironment
Arcus Foundation
Arran Lule Sami Centre
Bernstein Family Foundation
British Council
Care International
Climate Change Agriculture Food Security
Climate and Development Knowledge Network
Comic Relief
Cordaid
Ecologic Institute
Ecosystems Service for Poverty Alleviation
Ford Foundation
GRET
Giz
Hivos
Institute of Development Studies
International Development Research Centre
International Livestock Research Institute
International Centre for Environment Management
International Union for Conservation of Nature
London School of Hygiene and Tropical Medicine
Mava Foundation
UK Met Office
Near East Foundation
Norwegian Institute of International Affairs
Oxfam
Red Cross Red Crescent Climate Centre
Resource Advocacy Programme
Rockefeller Foundation
SNV Netherlands Development Organisation
The Christensen Fund
The Tiffany and Co Foundation
Tufts University
University College London
University of Copenhagen
University of Edinburgh
Vanguard Charitable
Worldaware
World Conservation Monitoring Centre
World Resources Institute
Worldwide Fund for Nature