iop.org

Annual

Report

2020

IOP Annual Report 2020: Trustees Annual Report iii

Contents

bjectives and Activities,

Achievements and Performance 01

Beginning to deliver

on

ournew strategy 04

tructure, Governance and

anagement Constitution 15

Financial Review 30

Independent Auditors' Report 33

Financ

ial Statements and Notes 37

Trustees’ Annual Report and

Financial Statements for the

year ending 31 December 2020

IOP Annual Report 2020: Trustees' Annual Report 01

Objectives and Activities,

Achievements and

Performance

The Institute of Physics (IOP) is the national physical society for the

UKand Ireland. The objective of the IOP, as stated in our Royal Charter,

is to promote the advancement and dissemination of knowledge and

education in the science of physics, pure and applied, for the benet

ofthe public and the members of the IOP.

The trustees conrm that they have referred to

the Charity Commission and the Ofce of the

Scottish Charity Regulator (OSCR)’s guidance

on public benet when reviewing the IOP’s aims

and objectives and in planning future activities.

TheIOP meets the public benet test in the

following ways:

• advancement of education;

• advancement of science;

• advancement of community

development;and

• the promotion of equality and diversity.

The IOP works to advance physics

research,

application and education, and engages with

policymakers and the public, to develop

awareness and understanding of physics.

Thepublic benet, which our many and

variedactivities provide, can be summarised

as follows:

• Our support for teachers and curriculum

development, by improving the continuing

professional development (CPD) of teachers

in order to support continued improvements

inthe quality of physics teaching in schools.

• Our focus on building a more diverse,

inclusive and vibrant physics community.

Weactively seek to encourage students from

under-represented groups to study physics

beyond the age of 16, and work relentlessly

to break down barriers so all pupils can

havea high-quality physics education.

• Our publication of physics journals, books,

magazines and websites, and thescientic

meetings and conferences wearrange.

Thesebring high-quality physics research

toawide audience, ensuring the latest

physics developments are seen, shared

and built upon. IOP Publishing continues

todevelop anOpen Physics initiative

which is intended to support greater

access, transparency and inclusivity

acrossphysicsresearch.

• Our efforts to connect physicists working

inall sectors, to drive innovation and support

the delivery of groundbreaking technologies

that will help shape the economies of the UK

and Ireland.

• Our work to raise public awareness

ofthevalue of physics. By showing how

physicsaffects allof our lives, we spark

interest inthe subject and encourage more

people togetinvolved in it.

IOP Annual Report 2020: Trustees' Annual Report 02

• Our events and conferences support

athriving physics ecosystem, bringing

together the community from across the

UK, Ireland and internationally, to share

knowledge about the discipline and its

applications, explore collaborations

andprovide networking opportunities.

• Our work to continually increase professional

and ethical standards across the physics

community, driving excellence and

supporting inclusive workplaces.

It’s vital that nancial concerns do not

stoppeople from engaging in physics.

Withthat inmind, we offer concessionary

IOPmembership rates for anyone earning less

than £21,000 ayear (from 1 January 2021).

Undergraduates, trainees and apprentices

can join the IOPfor £15. Our Benevolent Fund

provides nancial support for IOP members.

During 2020 we ensured that the Benevolent

Fund was able to offer assistance to members

who were nancially impacted by COVID-19.

And,aspartof our commitment to support

scientic research globally, researchers in

many lower income countries can access our

subscription journals or publish in our open

access journals atdiscounted or no cost.

The IOP works to advance physics

research, application and education,

d engages with policymakers

andthe public, to develop awareness

and understanding of physics.

IOP Annual Report 2020: Trustees' Annual Report 04

Beginning to deliver

onournew strategy

Unlocking the Future

2020 marked the rst year of our new strategy,

Unlocking the Future. As a society we face

unprecedented challenges. Globally, we need

to address a changing climate and a growing

population, to decarbonise economies,

improvehealthcare and ensure water, food

and energy supplies. Domestically, we need

to develop the next generation of industries

to create jobs and improve productivity to

safeguard citizens’ futures.

Physics has a vital role to play in tackling these

issues and making the UK and Ireland t for

anew industrial era of science, technology

and engineering. Our strategy sets out our

aim to develop and support a thriving physics

ecosystem, unlocking the future for UK and Irish

physicists and their work at home and around

the world.

Soon after the launch of the strategy,

however,afurther worldwide challenge

emerged– the COVID-19 pandemic – with

unprecedented and lasting impacts in the

UK, Ireland and across the globe. In this

context, 2020 was a year in which we reacted

decisively to extraordinary external change

whilecontinuing to lay the foundations for

achieving our strategic goals. We were able to

remain strong and effective, provide support

to our own staff team, and to invest signicant

funds and resources into helping the physics

community adapt to new ways of working.

Unlocking the Future: in summary

Our strategy identies three key challengesthat

present the greatest barriers tounlocking the

potential of physics and its impact in society:

• Diversity and skills: We want to build

athriving, diverse physics community so

everyone, regardless of background, has

access to world-class physics education

andtraining.

• Unlocking capability: We want to ensure

the UK and Ireland are able to realise the full

societal and economic benets of the new

industrial era.

• Public dialogue: We want to show the

impact of physics on people’s lives, to

enableinformed public debate on funding

and policy.

To meet these challenges, we have six

aspirations for the changed world we want to see

at the end of the strategy period. This is a broad

and ambitious strategy and our aspirations are

also ambitious.

1. Every secondary school pupil in the UK

and Ireland will have access to a specialist

physics teacher.

2. Girls will make up at least 30% of those

taking physics at age 16–19 and there will

bedouble the current number of young

people from black and minority ethnic

andlower socio-economic backgrounds.

3. There will be clear roadmaps and

funding commitments from the UK

and Irish Governments that propel

research and development investment

towards the Organisation for Economic

Co-operation and Development average

of2.4%ofgrossdomestic product.

4. Double the current number of people

will beemployed in technical roles in

physics-based and engineering businesses

and the number of those on physics-based

science apprenticeships will have increased

by afactor of 100.

IOP Annual Report 2020: Trustees' Annual Report 05

5. Our publishing services to the worldwide

physics community will have further improved

such that the number of scientists publishing

their research in our journals will grow by25%.

6. 10% of the population will have a meaningful

engagement with a physics-based public

event and 1% will have sustained contact

with physics.

Throughout 2020, we established four

interlinked programmes of work to implement

the strategy: our ecosystem, productivity and

transformation programmes and a new public

facing inuencing campaign.

We also embedded our values more deeply

across the IOP in 2020. These are:

• Be objective, led by evidence

• Be rewarding, open and engaging

topartnerwith

• Confront barriers to inclusiveness and

participation wherever we encounter them

• Exemplify the very highest standards

inallthat we do.

Below, we explore how these new programmes,

combined with greater emphasis on our values,

helped us to increase our impact in 2020.

We also detail how we urgently reacted to the

impact of COVID-19 on the physics community.

Responding to our community

As a professional body and membership

organisation, we support our members,

recognise their achievements and work with

them towards shared goals. Together, we

aimto create a bright future for physics, with

a sector that is well funded, genuinely diverse,

appreciated by society and ready to face our

dening challenges.

In 2020, as the COVID-19 pandemic began

tospread, we moved rapidly to deliver

immediate support and to understand what

mattered most to our members. Tohelp our

student members increase their skills and

prepare for the workplace, we ran online

workshops and webinars onsubjects ranging

100th anniversary of the IOP

2020 marked the 100th anniversary of the IOP. Throughout our centenary year, we celebrated

the role of physics and physicists in the UK and Ireland over the past 100 years, highlighting their

importance in today’s society as well as their immense potential for the future.

In November, we hosted a joint lecture on climate change policy with the German Physical Society

who were celebrating their 175th year. We also hosted an online talk from NASA Chief

Technologist Dr Douglas Terrier to discuss the

landing of the rst woman, and next man, on the

Moon. And to consider how physics has changed over the last 100 years, we invited six of our

members to give us their personal view of the changing landscape, looking at the physicists who

inspired them and the discoveries and innovations that have helped shape our lives.

We launched several initiatives that will help us create a legacy that will last well beyond our

anniversary year. Our new careers hub is an important and growing resource to support anyone

considering a future with physics. As part of our continuing commitment to highlight the

importance of technical roles and apprenticeships in physics, we widened our Awards to include

technicians, employers and apprentices, with two technicians awarded Honorary Fellowships in

2020.And we launched Looking Glass, a major new series of podcasts. Designed to appeal to

awide audience, it explores some of the most pressing challenges society faces today, asking what

role physics has in solving them. The series also takes a timely look at the purpose of a scientic

institution in the 21st century, to help us understand how we must evolve to be part of a modern

society, and to help shape it.

IOP Annual Report 2020: Trustees' Annual Report 07

from the Python programming language

to tailoring CVs. Wepublished guidance

on continuing professional development

throughout the year, and launched a range of

new resources onour career development hub.

And to supportuniversities through the crisis,

we published detailed guidance on continuing

toaward IOP-accredited qualications remotely.

We also froze membership fees for 2021

and increased the nancial help available

tomembers through the Benevolent Fund.

On the publishing side, IOP Publishing’s

technology, sales and customer services

supported libraries around the world to provide

remote access to content for their users, and we

also made any COVID-19-related articles free

toread to support the response effort.

Focusing on the longer-term impact of the

crisis, we then launched a consultation with

our members and other leaders in the physics

community to understand people’s changing

needs and priorities. Through online meetings

and interviews with individuals spanning

research, business, policy and government,

wedened 10 key focus areas:

• Supporting physicists’ careers, especially

inlight of the pandemic

• Working with the Treasury to ensure that

research funding is protected and attracted

• Highlighting physics’ contribution to the ght

against COVID-19

• Supporting examining bodies to develop

effective assessments

• Supporting teachers with remote working

• Building partnerships and networks

toaccelerate the pace of innovation

• Ensuring physics businesses can access

funding, facilities and the best support

andadvice

• Ensuring the supply of physics teachers was

not disrupted by the pandemic

• Ensuring students’ physics prospects were

not permanently damaged by the pandemic

• Exploring how to engage with the IOP

community virtually, as well as through

physical events, in the long term.

These themes aligned closely w

ith our strategy.

As such, the strategy remained both relevant

and robust enough to meet the immediate and

ongoing impacts of COVID-19. Our commitment

to delivering on it also grew stronger than ever.

Our ecosystem programme

Building a diverse, thriving and effective

physics community

Our 2020 work to nurture the physics ecosystem

was wide-ranging, with our Giving Voice to

Inclusion programme a central focus of our

efforts to foster a more representative physics

community. This project looks beyond diversity

to inclusion – the sense of belonging, of being

treated with fairness and of feeling trust in

those around you. A diverse workforce does not

guarantee inclusion, so we want to understand

people’s experiences of feeling included and

excluded, wherever they are in the physics

landscape. With that knowledge, we can take

action that will help break through the barriers

that keep people out of physics.

In November 2020, we launched an interactive

discussion to introduce the Giving Voice

toInclusion programme to the physics

community. Our focus in this work is on listening,

so we then spoke with Equality, Diversity

andInclusion experts and held focus groups

with adiverse cross section of members and

non-members. These conversations highlighted

themes that were then explored in a survey

sent to all members and to the wider physics

community. The survey results will guide our

future work, as we seek to tackle the challenges

that can prevent an inclusive environment

in places where physicists are educated,

trained and work.

In October, we also published our latest IOP

member diversity survey. This is a crucial piece

of research as we seek to ensure the physics

community becomes more representative of

society. The survey showed that our progress

IOP Annual Report 2020: Trustees' Annual Report 08

has been too slow as a c

ommunity, underlining

the need for our greater emphasis on diversity

and inclusion.

In December 2020, we published Subjects

Matter, a major report recommending a UK-wide

system of subject-specic CPD for all teachers

to help increase the quality of teaching in our

schools, improve educational outcomes for

all students, and boost economic growth and

prosperity across the UK. To develop the report,

we drew on the evidence, our own experience

of managing the Stimulating Physics Network

for the last 14 years, and the input of subject

organisations across all subjects.

We also broadened our efforts to make sure

young people can access a quality physics

education. Much of this work was inevitably

affected by the impact of COVID-19, but we

responded swiftly and in ways that proved

welcome and effective. For example, by

moving much of the work of our Stimulating

Physics Network online, we delivered more

than 10,000 hours of physics-specic (CPD)

to teachers from nearly 500 schools, as well

as developing a range of CPD video resources

for teachers towatch and discuss with IOP

experts. Wehavealso worked with governments

and regulators to ensure that their proposals

for alternatives to examinations are equitable

and workable, and do not adversely affect any

groups– especially those that are currently

under-represented in physics.

Similarly, we developed video and text resources

to enable physics teachers to teach imaginative

and inspiring lessons while working remotely.

We saw a fourfold increase in visits to IOPSpark,

our online resource for teachers. InOctober

to November 2020 alone, the site had more

than one million page views. And wecontinued

to partner with the Department for Education

(DfE) to award 150 scholarships to the IOP

Teacher Training programme for high-achieving

graduates. The application process for these

scholarships was again swiftly moved online,

as we maintained our focus on addressing

the serious shortage of physics teachers.

As well asworking to maintain the supply of

teachers,we initiated new projects toimprove

retention in teachers’ rst years and, during the

pandemic, worked with

governments to ensure

that trainee teachers have had as much teaching

experience as possible in preparation for their

rst jobs in 2021.

Stimulating and supporting a high-performing

physics sector is another central strand of our

ecosystem programme, and our Special Interest

Groups, Nations and Branches went to inspiring

lengths in this regard. Collectively these

member-led groups delivered more than 40 online

conferences, events and talks to help the physics

community stay connected and keep learning,

with over 6,000 people registered in total. Photon

2020, a major optics and photonics conference

organised within months of the rst lockdown,

showed the level of the Groups’ ambition, with

200speakers sharing their knowledge over

afour-day virtual conference.

We also recognised excellence in our

Institute of Physics Awards and Business

Awards programme, and welcomed six new

Honorary Fellows to the IOP. These included

the rsttechnicians to be recognised

bytheawardofan honorary fellowship:

Rachael Buckley andPaul Cook.

We took another step towards ensuring physics

is accessible to all with a new Irish Sign

Language (ISL) project that is being delivered

by Dublin City University. We will create an ISL

The IOP Challenge Fund

To underline our own commitment to

helpresolve some of the world’s most

acute challenges through physics, we

launched our £10m IOP Challenge

Fund in 2020. Through this signicant

commitment, we want to identify and

support plans and initiatives with partners

who share our ambition and sense

of urgency. Formed using part of our

operating budget that has now been turned

into acompetitive funding stream, the

initiative will enable the IOP to offer grants,

award contracts, work with partners and

invest in organisations ready to accelerate

large-scale change.

IOP Annual Report 2020: Trustees' Annual Report 10

Glossary of 75 physics and astronomy signs –

the rst dedicated set of signs for physics and

astronomy that has been produced anywhere.

Our productivity programme

Unl

ocking the full value of physics to society

and the economy

Following extensive input to government

consultations and reviews throughout the year,

we welcomed two landmark developments

in2020. Firstly, the UK government renewed

itscommitment to increase public investment

in research and development (R&D) to 2.4%

ofGDP. Secondly, the Brexit agreement ensured

that UK-based researchers will remain eligible

for research funding, despite the UK leaving the

European Union.

The R&D commitment was rumoured to be

atriskdue to the economic devastation

causedby COVID-19. But, together with a range

oflike-minded organisations, we successfully

worked with the Treasury, submitting multiple

consultation responses. These outlined the

needfor a continued focus on innovation

aspartof efforts to rebuild the economy

afterthepandemic and to improve livelihoods

over thelong term.

Similarly, throughout 2020 it frequently

looked as though a Brexit deal that would

protect UK research funding was out of reach.

Adding our voice to a chorus of concern, we

made clear that leaving the EU without a deal

would risk the UK being left behind in science,

technology and engineering. In December, we

welcomed the announcement that the UK can

continue to participate in the Horizon 2020

and Horizon Europe EU research frameworks.

We also immediately began preparing

guidance on the Brexit agreement’s impact

forstudents, businesses and researchers

intheUK and Ireland.

Our own work to tackle the issues that inspired

our strategy included collaborating with the

Henry Royce Institute. Royce selected the

IOP tohelp convene a research community

toexplore novel materials and processes that

could help todeliver affordable green energy.

We undertook a technical road-mapping

exercise as part of this work in 2020 and look

forward to ongoing collaboration towards this

cri

tical challenge.

Looking to the future, we began developing

major new pieces of research last year

onworkplace skills and innovation within

physics-based businesses. Both will launch

in 2021 and will combine novel research with

data and analysis gleaned from Physics Insight,

our in-house data visualisation capability.

Physics Insight tracks trends and developments

in physics funding, research, publications

and patents to build a picture ofthe physics

landscape. Our objective for thesenew research

projects is to understand what skillsand

knowledge employers value most,sowe

can most effectively support pioneering

applicationsof physics.

Our inuencing campaign

Supporting young people to change

theworldby doing physics post-16

Limit Less, our rst public inuencing campaign,

launched in October 2020. Ourstaff and

members developed Limit Less together, and

through the campaign we want to support

young people to change the world and full

theirpotential by studying physics beyond

theage of 16.

Limit Less is built on the experiences and

insights of young people, those who care

for them, and our members. When we were

developing the campaign, we surveyed

thousands of 14- to 21-year-olds, parents

and carers to understand their perceptions

ofphysics and physicists. We also asked

members to share experiences of when they

hadbeen discouraged from pursuing physics.

Two clear themes emerged from this research.

Firstly, some young people are put off by

misconceptions about physics. It is seen

astoo difcult, not creative or just plain boring.

Secondly, prejudices persist about who can

beaphysicist. Girls are told physics is for

boys.Young people are told physics isnot

for them because of their ethnicity, sexual

orientation, disability or social background.

Through this campaign, we want to dispel these

fallacies. The campaign is not aimed directly

IOP Annual Report 2020: Trustees' Annual Report 11

atyoung people, but at the people – from

teachers to parents to politicians – who shape

their decisions and opinions.

Since Limit Less launched, we have begun

working to shift perceptions in families,

communities, nurseries and schools, and in the

media and on social media. We are also building

relationships with organisations and individuals

focused on disability, LGBTQ+ rights, poverty

and more to build our understanding and to help

build a more diverse physics community.

We have published a range of online stories

from physicists who have experienced and

overcome the obstacles we are challenging in

the campaign. And we have linked with YouTube

to curate content on the site’s physics learning

area in order to challenge misconceptions about

physicists in the media. We also promoted

the campaign to MPs during Sense About

Science’s Evidence Week and contacted all

members of the Scottish Parliament and the

Assemblies in Wales and Northern Ireland.

Andto show that physics is anything but

boring,we have published a series of online

science experimentsfor parents to do with their

children– Do Try This At Home. Working in all

ofthese ways, we want to limit young people

less and support them more.

Our transformation programme

Becoming a stronger organisation to deliver

on our strategy

The level of ambition in our new strategy requires

us not only to work with more partners more

effectively than ever, but to transform how we

work ourselves. This goes beyond our systems

and processes to the values and culture that

dene who we are.

In 2020, we focused on progress in four areas:

leadership and management; organisational

planning and performance; knowledge and

decisions; and effectiveness and efciency.

Alongside our efforts to embed our values

across the IOP, this multifaceted approach

should empower all staff to be part of a higher

performing organisation.

To improve the level of knowledge and decision

making across the IOP, we created new cross-

organisational groups of senior staff. To enhance

organisational effectiveness, we reviewed

staff performance competencies. To boost

efciency and effectiveness, we moved swiftly

to remote working tools – a switch accelerated

by the COVID-19 pandemic – and improved

our customer relationship management and

data systems. And to improve organisational

planning, we created a single centralised

business plan. All of these shifts will strengthen

our ability to deliver on our strategy in the

coming years.

At the same time, a team of staff from across

the IOP led a process to create behaviours

linked to our values. Close to 90% of staff took

part in consultations run by the team, with the

resulting behaviours now guiding the way we

work together.

We also took another step on our digital

transformation journey, taking our website

out of beta, migrating content and

decommissioning old sites. Our new website

is more accessibleand mobile-friendly.

Thismove marked amilestone in our journey

towardstransforming our digital platforms.

Working through COVID-19

The wellbeing of our staff has been a

critical priority throughout the COVID-19

pandemic. From the earliest days of the

crisis we encouraged exible working for

staff who needed to care for others, and

we moved fast to ensure all IOP employees

had the technology they needed to work

effectively from home. We have also

sought to strengthen communications with

staff through what has been a difcult

time for everyone, with senior leadership

briengs and staff-led meetings online.

No staff have been furloughed during the

pandemic, and our focus throughout has

been on maintaining a sense of community

among IOP employees, even when we have

not been able to work together physically.

IOP Annual Report 2020: Trustees' Annual Report 12

IOP Publishing (IOPP)

Driving physics research forward

IOPP is a subsidiary of the IOP and aleading

international scientic publisher. Itscommitment

to fostering physics excellence and diversity

could be seen throughout 2020.

IOPP launched the world’s rst peer review

certication programme tailored for the physical

sciences, with the aim of creating a future

generation of outstanding peer reviewers. Italso

became the first physics publisher to move to

double-anonymous peer review, a shift that

should make the review process more diverse

and representative. And it continued the roll

out of transparent peer review across more

publications, showing the full process from

initial review to nal decision.

Open access was another key focus, with

IOPP launching a further three new fully open

access journals over the course of the year

and announcing its Open Physics initiative

inFebruary 2020. This initiative sets out IOPP’s

commitment to promote and support open

science practices across the physical sciences

through wider and faster research access,

greater transparency and broader inclusivity.

Putting this commitment into action, IOPP

joinedthe Research4Life partnership,

whichmakes research information available

inlow- and middle-income countries.

And itlinked with 16other major physics

societies topublish a joint statement in

support of openaccess publishing, calling

for a pragmatic,inclusive andnancially

sustainableapproach. IOPP has also been

working with the IOP to inform the current review

of UK Research and Innovation’s open access

policy, highlighting the need for a smooth and

inclusive transition which preserves researcher

choice and the sustainability of high-quality

publishing services.

In addition, IOPP continued running

pioneering conferences and events despite

thepandemic, looking to increase international

cooperation between physicists. Its rst Twitter

poster conference saw a stream of people

sharing research with peers and experts

onthesocial network, while Quantum 2020,

IOPP’s rstvirtual quantum conference,

brough

ttogether nearly 4,500 researchers

worldwide. Quantum 2020 was organised

withthe IOP in partnership with the Chinese

Physical Society and the University of Science

and Technology of China.

Plans for 2021

During 2021 we will continue to work towards

the aspirations set out in our strategy, Unlocking

the Future. Here we outline some of the projects,

programmes and initiatives planned forthe

coming year.

Diversity and inclusion continue to be at

theheart of our work and we remain determined

tomake the physics community a more

welcoming and supportive place for people

from all backgrounds. This year we are

reviewingouragship Juno programme

tosupport inclusive practice in university

andcollege departments. We will take forward

what we have learned through our Giving Voice

to Inclusion consultation, in which we invited

members of the physics community to share

their insights andexperiences, to help us better

understand the barriers to inclusion inphysics

and how wecan address them.

We will continue to grow our groundbreaking

inuencing campaign, Limit Less, which

seeks to increase the number of young

people from underrepresented groups who

do physics from age 16. We will also develop

work withuniversities to provide academic

and pastoral support at Year 12. Outcomes

from a pilot phase during 2021 will be closely

monitored and lessons learned about how

thissupport can drive greater participation

among under-represented people.

As part of our work to improve access to

specialist physics teaching, we will work with

stakeholders across all subjects to call on

UK governments to invest in creating a more

condent, engaged teaching profession,

through a sustained, world-class system

ofsubject-specic CPD for all teachers. This

will be complemented with a community-led

initiative to bring together teacher support

withprofessional development.

IOP Annual Report 2020: Trustees' Annual Report 14

As we work to increase technical roles in

physics-

based and engineering businesses, we

will lead work to increase our understanding of

the need for physics skills in the workforce, and

build on this with a new initiative working with

small and medium sized enterprises on

technician roles.

Our public engagement will continue through our

ongoing events programmes, which we will make

more inclusive. We will continue to produce our

Looking Glass podcast series, and we will

engage more with the wider community through

a series of conversations.

Much of our work through the life of the strategy

will be catalysed by the IOP Challenge Fund. For

example, our aspiration for clear roadmaps and

funding commitments from governments to

support research and development will be

advanced through a new Physics Leadership

Commission, initiated through the Fund.

During 2021, new funding streams will be

brought online through calls for proposals

from the physics community and beyond,

leveraging resources and building partnerships

to speed our progress. This includes a strand

to support the physics community to recover

from the damage suffered through the

COVID-19 pandemic – an essential component

in addressing the challenges identied

inourstrategy.

Finally, a continuing process of organisational

transformation will ensure we are equipped

todeliver this ambitious work. This will include

the continued development of our digital

programme, a major review ofourgovernance

and an enhanced presence in Ireland, with

a new ofce in Dublin and our application

for registration as a charity in the Republic

ofIreland.

IOP Annual Report 2020: Trustees' Annual Report 15

Structure, Governance and

Management Constitution

Constitution and Governing Document

Tracing its roots back to 1

874 and the Physical

Society of London, but originally incorporated

in 1920, the IOP as currently constituted was

established by Royal Charter on 30 September

1970 (as subsequently amended). This Royal

Charter, which is supplemented by Bylaws and

Regulations, is the IOP’s governing document.

Registered Details

The IOP’s registered name is the Institute

of Physics. Its principal ofce address

is37Caledonian Road, London N1 9BU.

The IOP is a charity registered in both England

and Wales (no. 293851) and in Scotland

(no.SC040092), and is therefore regulated by

boththe Charity Commission for England and

Wales (CCEW) and the Ofce of the Scottish

Charity Regulator (OSCR). The CCEW is the IOP’s

lead regulator.

The IOP has also applied for registration

as a charity in the Republic of Ireland and

has submitted an Expression of Intent for

Registration as a Charity in Northern Ireland.

Professional Advisers

Details of the IOP’s professional advisers

are as follows:

Independent Auditors

PricewaterhouseCoopers LLP, 2 Glass Wharf,

Bristol BS2 0FR

Investment Advisers

Lane Clark & Peacock LLP, 95 Wigmore Street,

London W1U 1DQ

Tax advisers

Deloitte LLP, 3 Rivergate, Temple Quay BS1 6GD

Solicitors

Eversheds, 1 Callaghan Square,

Cardiff CF10 5BT

The IOP does not however have a sole appointed

solicitor or formal panel of solicitors.

Annual General Meeting

Each year the IOP holds an Annual General

Meeting, the rules of which are set out in the

Bylaws and Regulations, at which all members

are entitled to attend and vote. Membership

fees, any changes to the Bylaws and the

appointment of the auditors are approved by

themembership at the Annual General Meeting.

The Council (Board of Trustees)

As set out in the Royal Charter, the IOP is

governed by its Council. This consists of trustees

elected from, and by, the membership, and up

to three co-opted trustees who are appointed

bythe Council itself.

All members of the Council are also the

trustees of the IOP. The Council has the ultimate

responsibility for directing the affairs of the IOP,

ensuring that it is solvent, well-run and delivering

the charitable outcomes for the benet of the

public for which it has been set up. The Council

sets and monitors the IOP’s strategy which

delivers these charitable outcomes.

Of the elected Council members,

therearefoursenior ofcers and currently

four Vice-Presidents. The senior ofcers are

thePresident, President-elect, Honorary

Secretary and Honorary Treasurer. The current

four Vice-Presidents are for Business, Education,

Membership, and Science and Innovation. There

are ten additional elected Council members.

IOP Annual Report 2020: Trustees' Annual Report 16

Certain Council members have lead

responsibilities for important cross-cutting

areassuch as equality, diversity and inclusion,

and the IOP’s international programme.

Co-opted Council members are appointed

as required.

There are currently 19 members of the IOP

Council (including one co-opted member).

The Council currently meets four times per year.

All Council members give their time voluntarily

and are not remunerated for their work on

behalf of the IOP beyond the reimbursement

ofreasonable expenses.

Elections to Council

The rules governing the election of Council

members are set out in the Bylaws. At the

start of each calendar year, the number of

vacancies that will arise that year is identied.

With delegated powers from the Council,

theNominations Committee then evaluates

the balance of skills, knowledge, experience

and diversity of Council members and, in the

light ofthat evaluation, prepares a description

of therole and capabilities required for each

particular vacancy on the Council. A notice

of vacancies, along with role descriptions,

is published and all members are eligible

tonominate themselves.

The Nominations Committee then assesses

the nominations received from members to

confirm eligibility and that candidates meet the

requirements laid out in the role descriptions.

Where there is more than one nomination for

any vacancy, a ballot takes place. Where there

is only one nomination for any vacancy, that

nominee is deemed elected assuming they meet

the eligibility and role description requirements.

Council members generally serve one four-year

term. Exceptions to this are the President

who serves a two-year term plus two years

immediately preceding that as President-elect,

and the Honorary Treasurer and Honorary

Secretary who are eligible for election for

asecond four-year term. Co-opted members

areappointed annually for a maximum term

ofthree years.

Induction and Training of Trustees

Formal induction is

given to all new trustees

whoare invited to attend meetings with IOP staff

and advisers as part of the induction process.

Trustees are also able to attend external training

courses for charity trustees.

Conflicts of Interest

Trustees have a duty to declare conflicts of

interest so they can ensure that at all times they

are taking decisions that are in the best interests

of the IOP.

The IOP maintains a register of trustees’ interests,

which is updated annually by trustees and as any

changes are reported.

Procedures are in place for managing

conflictsofinterest that may arise during Council

meetings.

IOP Annual Report 2020: Trustees' Annual Report 17

Details of Trustees

Details of the trustees at the date of this report are as follows. There are no corporate trustees

ortrustees holding property for

the IOP.

Role Name Term From Term End

President Jonathan Flint CBE FREng

FInstP

1 October 2019 30 September 2021

President-elect Professor Sheila Rowan CBE

FRS FRSE Hon. FInstP

1 October 2019 30 September 2021

Honorary Secretary Professor Brian Fulton FInstP

CPhys

1 October 2017 30 September 2021

Honorary Treasurer Professor David Delpy CBE

FRS FREng FMedSci FInstP

CPhys

1 October 2019 30 September 2023

Vice-President for Business Dr John Bagshaw FRAeS

FInstP CEng CPhys

1 October 2020 30 September 2024

Vice-President for Education Dr Lisa Jardine-Wright FInstP

CPhys

1 October 2020 30 September 2024

Vice-President for

Membership

Dr Mark Telling FInstP CPhys 1 October 2017 30 September 2021

Vice-President for Science

& Innovation

Professor Martin Freer FInstP 1 October 2019 30 September 2023

Ordinary Member Dr Tariq Ali FInstP FRAS

CPhys

1 October 2018 30 September 2022

Ordinary Member Dr David Boyce FInstP CPhys 1 October 2018 30 September 2022

Ordinary Member

Dr Gayle Jodine Calverley-

Miles MInstP MBCS MIScT

CSci CPhys

1 October 2019 30 September 2023

Ordinary Member Dr Tamara Clelford FInstP

CEng CPhys

1 October 2018 30 September 2022

Ordinary Member Professor Claudia Eberlein

DiplPhys DPhil FInstP CPhys

1 October 2020 30 September 2024

Ordinary Member Professor Wendy Flavell

FInstP CPhys

1 October 2017 30 September 2021

Ordinary Member Professor Martin Hendry

MBE FRSE FInstP

1 October 2019 30 September 2023

Ordinary Member Dr June McCombie MBE

FInstP FRAS FRSC CPhys

1 October 2017 30 September 2021

Ordinary Member Dr Alix Pryde FInstP 1 October 2019 30 September 2023

Ordinary Member Professor Anne Tropper

FInstP FOSA CPhys

1 October 2017 30 September 2021

Co-opted Member Dr Peter van der Burgt

FInstP CPhys

2 May 2019 30 September 2021

1 Was President-elect from 1 October 2017 to 30 September 2019

2 To be President from 1 October 2021 to 30 September 2023

3 Eligible to stand for election for second term

4 Eligible to stand for election for second term

IOP Annual Report 2020: Trustees' Annual Report 18

Details of the trustees during the reporting period but who have now retired are as follows:

Role Name Appointment Date Retirement Date

Vice-President

forBusiness

Dr James McKenzie FInstP CEng CPhys 1 October 2016 30 September 2020

Vice-President

forEducation

Dr Carol Davenport FInstP CPhys CSciTeach 1 October 2016 30 September 2020

Ordinary Member Professor Becky Parker MBE Hon.FInstP CPhys 1 October 2016 30 September 2020

Co-opted Member Professor Jim Al-Khalili OBE FRS FInstP 1 October 2017 30 September 2020

Decision-making and delegations

Key strategic decisions affecting the IOP

are made by Council but, in the interests of

good governance and efcient management,

itdelegates consideration of matters in specialist

areas to its standing committees under agreed

terms ofreference for those committees.

Italso delegates powers to take executive

andmanagement decisions to the Group

ChiefExecutive Ofcer through the Regulations,

agreed Annual Budget and Delegations

ofAuthorityMatrix.

Committees

The Council has a number of standing committees

with delegated powers, thus ensuring that

the required time and attention is applied to

overseeing specic areas of interest. The terms

of reference and delegated power of these

committees are set by the Council. Committee

membership is not limited to Council members,

thus allowing for both wider representation from

the membership and receipt of specialist external

advice where appropriate.

The standing committees as at 31 December 2020

are set out on the following page and are marked

inred.

IOP Annual Report 2020: Trustees' Annual Report 19

IOP Council and Committee Structure

Council

Nominations

Committee

Honorary

Fellows

Committee

Science &

Innovation

Committee

Remuneration

Committee

Awards

Committee

Membership

Committee

Audit & Risk

Committee

Disciplinary

Committee

(ad hoc)

Education

Committee

Senior

Ofcers

Committee

Resources

Committee

Diversity &

Inclusion

Committee

Business

Advisory Group

Curriculum

Committee

Stimulating

Physics

Network

Professional

Standards

Committee

Degree

Accreditation

Committee

Group Ofcers

Forum

Nations and

Branches

Committee

Scotland

Committee

Wales

Committee

Ireland

Committee

English Branch

Committees

Welsh

Education

Committee

Scottish

Education

Committee

Other committees and groups that advise IOP and its Council

IOP Annual Report 2020: Trustees' Annual Report 20

Executive and senior management

The day-to-day management of the IOP

Groupand its activities is delegated to the

Group Chief Executive Ofcer, supported

byanexecutive management team.

The day-to-day management of publishing

activities is delegated to the Chief Executive

ofIOP Publishing Limited (prior to8March

2021 this role was titled Managing Director of

IOP Publishing Limited). IOP Publishing Limited

has its own board of directorsand a number

of subsidiary undertakings that support the

delivery ofthepublishing programme.

The IOP Group senior management team

in2020 and to the date of this report was:

Role Name

Group Chief

ExecutiveOfcer

Professor Paul Hardaker

FInstP FRMetS CMet

Group Chief

FinancialOfcer

Michael Bray FCMA (until

31 December 2020)

Sukhraj Dhadwar FCCA

(commences August 2021)

Deputy Chief

Executive, IOP

Rachel Youngman

Director of Policy &

Public Affairs, IOP

Tony McBride

Director of Physics

Programmes, IOP

Philip Evans

(until 31 December 2020)

Director of Science,

Innovation and

Skills,IOP

Louis Barson

(from 5 April 2021)

Managing Director, IOP

Publishing Limited

Steven Hall

(retired 5 March 2021)

Chief Executive, IOP

Publishing Limited

Antonia Seymour (from

8March 2021, previously

Publishing Director)

Remuneration of the senior team

The pay and remuneration of the group senior

management team is set and monitored

on behalf of Council by the Remuneration

Committee. The Committee comprises the

President, President-elect, Honorary Secretary

and Honorary Treasurer, and is supported by

several separately appointed external advisors.

The Committee commissions, each year, relevant

external benchmarking information fromboth

the publishing and charity sector to support

itsdecision-making, and, when necessary, takes

additional advice from specialist organisations.

Please see note 10 to the Financial Statements

for further information.

Governance Review

In 2020 and 2021, the IOP undertook

acomprehensive review and consultation

with its members and the wider physics

community of its governance and membership

engagement arrangements. This was with

a view to ensuring that, as it moves into its

second century, itis,and remains, a modern,

well-governed and responsive organisation which

continues to serve the public and satisfy its

charitable objectives as well as being one

ofwhich itsmembers can be proud and where

they can be engaged and have a voice on

itsfuturedirection.

This has led to some proposed changes to its

governance and committee structures which will

be reported in more detail in the Annual Report

for the year ending 31 December 2021, but

includes the dissolution of the Senior Officers

Committee and, from 1 October 2021, the

development of new terms of reference for key

committees, the establishment of a Finance &

Investment Committee in substitution for the

Resources Committee and the clearer separation

of Council governance committees from those

focused onmember engagement.

Impact of COVID-19 on IOP Governance

The IOP has coped well with the imposition of

social-distancing measures arising from the

COVID-19 pandemic. The full governance cycle

of Council and core governance committee

meetings has continued uninterrupted,

with all Council and core governance committee

meetings being held virtually

by video conference. There has been no

significantimpact on the IOP’s governance

orcontrols as a result of the COVID-19

pandemicand ateach of its meetings the

Council has reviewed a COVID-19 financial

andrisk management plan. This has kept

underclose review people; finances; contract

liability; and organisational cashflow.

IOP Annual Report 2020: Trustees' Annual Report 21

Group Corporate Structure

he IOP has a number of subsidiary

undertakings, as outlined below and in

thestructure chart on the following page.

To ensure clarity and appropriate governance,

there are a number of agreements in place

thatdene and describe the provision of

intra-group services.

The main trading subsidiary undertaking of the

IOP is IOP Publishing Limited (commonly known

as IOPP).

IOPP is a wholly owned subsidiary of the

IOPandis incorporated in England and Wales.

Its principal activity is the publication and

distribution of high-quality scientic journals,

books, conference proceedings and magazines.

IOP Publishing Limited has a number of further

trading subsidiary undertakings as follows:

IOP Publishing Consultants (Beijing)

Co.Limited

IOP Publishing Consultants (Beijing) Co. Limited

is a wholly owned subsidiary of IOP Publishing

Limited and is incorporated in China as a wholly

foreign-owned enterprise (WFOE). Its principal

activity is to provide services to IOP Publishing

Limited, including publishing consulting,

electronic technology consulting, business

consulting, market information consulting

andcorporate management consulting.

IOP Marketing and Promotion Services

PrivateLimited

IOP Marketing and Promotion Services Private

Limited is 99.99% owned by IOP Publishing

Limited with the remaining 0.01% of share

capital owned by the IOP.

It is incorporated in India. Its principal activity

is promotion and marketing services for IOP

Publishing Limited.

Turpion Limited

Turpion Limited is a wholly owned subsidiary

of IOP Publishing Limited and is incorporated

in England and Wales. The principal activity

of the company throughout the year was the

publication of English-language translations

ofRussian journals.

Turpion-Moscow Limited

Turpion-Moscow Limited is incorporated

inRussia and is a wholly owned subsidiary

ofTurpion Limited.

IOPP also has a branch in Japan which

is non-incorporated.

The IOP also has the following trading

subsidiaryundertakings:

IOP Publishing Inc.

IOP Publishing Inc. is a not-for-prot corporation

of which the IOP is the sole corporate member.

It is incorporated in the USA. Its principal

activity is to provide publishing services to

IOP Publishing Limited. All such services are

provided solely in support of the IOP’s charitable

and educational activities.

IOP Business Publishing Inc.

IOP Business Publishing Inc. is a wholly

owned subsidiary of IOP Publishing Inc. It is

incorporated in the USA. Its principal activity

isto provide advertising-sales services.

With the exception of IOP Marketing and

Promotion Services Private Limited, all

companies are wholly owned subsidiaries

oftheir immediate holding company.

There are two further Group subsidiary

undertakings, both of which are

currentlydormant.

These are:

IOP Educational Publishing Limited

IOP Enterprises Limited

IOP Annual Report 2020: Trustees' Annual Report 22

IOP Group Corporate Structure

1 Incorporated in USA

2 Japanese Branch (non-incorporated)

3 Incorporated in China

4 Incorporated in India (99.99% owned by IOPP and 0.01% by IOP)

5 Incorporated in Russia

IOP

IOP Business

Publishing Inc

IOP Publishing

Japan

(Branch)

IOP Publishing

Consultants

(Beijing)

Co. Limited

IOP Marketing

and Promotion

Services

Private Limited

Turpion Limited

IOP Educational

Publishing

Limited (Dormant)

IOP Publishing

Limited

IOP

Publishing Inc

IOP Enterprises

Limited (Dormant)

Turpion-Moscow

Limited

IOP Annual Report 2020: Trustees' Annual Report 23

Risk management

The Executive Team is responsible for ensuring

that proper arrangements are in place for

adequate risk management and control.

The Audit & Risk Committee provides an

assurance role to Council on these matters

andhas a remit to:

• review and help identify major areas

ofrisk for the IOP and the Group and

toensure processes exist to manage

risk in these areas;

• give oversight to risk management and

internal audit;

• bring to the attention of Council any areas of

high risk and/or any anomalies brought

tolight through the audit process;

• review the risk registers and the plans and

processes in place to manage and mitigate

major risks;

• from time to time investigate certain

processes or risks in more detail; and

• review the procedures for handling allegations

from whistle-blowers and act

asthe ultimate destination forwhistle-blowers

who are not satisfied bythe response through

the normal channels.

The IOP maintains a register of signicant risks

and maintains systems to control and manage

them. The Audit & Risk Committee reviews the

risk register along with the plans and processes

in place to manage and mitigate major risks.

TheCouncil then receives reports from the

Audit& Risk Committee.

During the period of the pandemic, theCouncil

and its relevant Committees (Audit & Risk and

Resources) have received reports from the

Group Chief Executive Ofcer on the impact

ofthepandemic on the IOP and the wider Group,

its staff, cashows and ve-year cash plan,

and contractual liabilities. ‘Reasonable Best

Case’ and ‘Reasonable Worst Case’ scenario

planning has been undertaken to assess

potential impacts on forecast risk envelopes.

Thetrusteesare satised that, whilst th

pandemic has inevitably had, andwillhave,

animpact on its activities andnancial

resources, the IOP remains in a strong

nancial position.

Specifically, Council and the Executive,

supported by the IOP’s COVID-19

Management Team, continue to maintain a

key focus on ensuring:

• the safety and wellbeing of the staff

team and also that all key roles remain

staffed, with a number of additional staff

support measures having been introduced

in the period including working from

home DSE assessments, the provision

of equipment to staff working from home

where needed including chairs, desks and

monitors, and anenhanced Employee

AssistanceProgramme;

• that at all times contractual liability

is mitigated, especially in relation to

outstanding contracts for conferences,

meetings and events;

• that at all times the IOP remains within

agreed reserves limits for the investment

portfolio and continues to hold a strong

covenant for the dened benet pension

scheme; and

• that impacts on Gift Aid income and future

cash ows are monitored on a regular basis.

It is not considered that a change to the reserves

policy is required.

Brexit, and the endof the t

ransition period,

hasposed, and will continue to pose, challenges

to the physics and wider science community.

However, whilst the situation continues to be

monitored closely, particularly the impact on

the international operations of its publishing

businesses, Brexit is not considered a signicant

risk to the IOP itself, or its programmes of work

across the Group.

In assessing the key risks identied below, the

impacts of the COVID-19 pandemic and Brexit

have been fully taken into account.

IOP Annual Report 2020: Trustees' Annual Report 24

Risk Description Risk Consequence Controls, Action, Mitigation

A model of open access mandate

is imposed in a manner which is

nancially unsustainable for learned

society publishers.

This would threaten the role

and viability of learned society

publishers including IOP’s own

publishingbusiness.

Established IOP position; continued

IOPP OA innovation; collaborations (and

shared positions) with other UK society/

academy publishers; collaborations

and joint statements with other national

physical societies; and representations

toUKpolicymakers/funders.

The IOP is unable to achieve funding

requirements to deliver its strategy

andoperational business.

The IOP would be unable to support

its full strategy as there would be

apotential funding shortfall.

Regular review of performance

offunding pipeline against target

and review of range of funders and

suitability of income; fundraising

programme in place focusing

on individual giving, trusts and

foundations, competitive contracts

andlegacies; investments restructured

to generate more of an annual income

and growth from reserves; and launch

oftheChallenge Fund to support

strategy delivery.

There is a material IT security

breach orcritical IT system failure

(includingbreachof digital

systems).

Loss or corruption of data,

unavailability of business critical

applications, reputational damage,

contractual breach, legal/regulatory

nes, system restoration costs,

productivity loss.

Firewall in place with anti-virus,

anti-malware and spam lters; daily

backups at co-location andrestoration

tests for files and systems; internet,

email andpassword policies;

segregated network for staff and

public; regularnetwork audits;

specialist staff appointed; and

internal audits undertaken.

There is a signicant reduction in

thevalue of savings and investments.

IOP would need to take funds from

operational budgets in order to

meet the reserves policy and the

commitments to the DB Pension

recovery plan.

Use of specialist investment

advisers;

investment approach regularly

reviewed; and risk-based diversified

investment approachadopted.

There

is a loss/corruption

ofemployee/member

other

rsonal data or other breach

of data protection laws.

Signicant regulatory ne,

reputationaldamage.

Training of all staff undertaken;

organisational policies and procedures

in place; internal audit completed;

internal staff expertise; strong IT

controls implemented including

rewalls, anti-virus, anti-malware

and spam lters; and regular network

auditsand automatic network

monitoringapplied.

There are changes to accounting

policy which removes or replaces

theGiftAidmodel.

Adverse impact on revenues.

Manage through reserves policy

dnancial modelling.

IOP Annual Report 2020: Trustees' Annual Report 25

Our commitment to Equality, Diversity

and

Inclusion

Integrity and openness are at the heart of

everything that we do. We believe rmly in

equality of opportunity for all, confronting

barriers to inclusiveness and participation

wherever we encounter them. These core

values are an expression of what we believe

in and how we behave as an organisation.

Ourprogrammes are founded on the principles

of Equality, Diversity and Inclusion (EDI), from

our organisational values and strategy, to our

work in schools, with the public and in our policy

initiatives. From the Council and the senior

leadership through the organisation, there is

a deep-seated commitment to ensuring our

physics community reects the wider diversity

we see in society andthe signicant value that

brings to physics and to the workplace.

Our EDI focus continues to grow and develop,

and has gone from strength to strength, covering

a range of strands including but not limited to

gender equality, sexual orientation, disability,

ethnicity and socio-economic background.

The IOP was amongst the rst signatories of

the Royal Academy of Engineering Diversity

Concordat andthe Science Council Declaration

on Diversity, Equality and Inclusion and we

continue to take a visible role in delivering on

our commitments. We have delivered projects

and publications that continue to lead the

way in spreading good practice and making

asignicant contribution to the body of research

available to the STEM community. We recognise

that we need to continue to work to remove

barriers to participation in any of our activities

and that we ensure the principles of EDI are

embedded within them. We build partnerships

to work with colleagues, members, and the wider

physics community to ensure that all that we

deliver is truly inclusive.

We keep all of this under regular review and

evaluate how we implement our diversity

initiatives through our member-led Diversity

andInclusion Committee. We are also

committed to demonstrating best practice,

sharing our experiences, and that we undergo

the same scrutiny and standards that we would

expect of others through programmes such

as Project Juno. Project Juno is our gender

equality awards scheme that recognises physics

partments and organisations that can

demonstrate action taken to address gender

equality in physics. Our internal Equality and

Diversity Action Group has begun the process

ofsubmitting the IOP to the Juno principles,

withthe target of becoming recognised as

aJuno Champion by the end of our strategy.

Environmental Responsibility

The IOP recognises its environmental

responsibilities and commitment to reducing

environmental damage locally, nationally and

globally. We are focused on four main areas of

compliance: waste and energy reduction;

personal responsibility; the role of physics to

provide solutions; and meeting emission targets.

We are also raising awareness of how

activities and choices of individuals and

other organisations carry an impact to the

environment. We advise and support what they

might consider doing to mitigate this impact.

Wewant to lead the way and highlight what

physics can do to help make buildings more

efcient. Data captured on our own energy

usage is shared through our education partners

to help future planning and development in this

eld. We work with our stakeholder organisations

to inuence positive environmental change and

support organisations which are proactively

being sustainable.

Our Environmental Statement can be foundhere.

IOP Annual Report 2020: Trustees' Annual Report 26

IOP Lower

Lower

Middle

Upper

Middle

Upper

Across

allquartiles

Female

Mean £13.72 £18.47 £22.02 £30.47 £20.42

Median £13.74 £18.46 £21.97 £27.07 £20.35

Number of staff 29 28 30 20 107

Male

Mean £14.68 £18.74 £22.31 £ 35.74 £24.56

Median £14.83 £18.83 £22.28 £28.76 £21.75

Number of staff 13 14 11 21 59

Pay gap

Mean 6.52% 1.45% 1.32% 14.75% 16.86%

Median 7.34% 1.99% 1.42% 5.89% 6.45%

Percentage of

female employees

69% 67% 73% 49% 64%

Percentage of

male employees

31% 33% 27% 51% 36%

Gender Pay Gap Reporting

The IOP has made a commitment to addressing

diversity within the physics community and

werecognise that the success of our work

relieson our ability to recruit, nurture and

retaintherichest mix of talent.

There are a number of internal mechanisms the

IOP uses to support the achievement of balance

in the workforce. All jobs are evaluated through

a bias-free non-gender inuenced job evaluation

process by a group of trained in-house assessors.

The IOP does not have a statutory re

quirement

to report on gender pay but, as part of

its commitment to gender equality, it has

undertaken the assessment. The average hourly

rate in April 2020 was 16.86% lower for women

based on mean hourly earnings and 6.45% lower

based on median hourly earnings.

The median pay gap for full-time employees

in the UK is 7.4% (Ofce for National

Statistics, 2020).

We recognise that further steps are needed to

address this gap.

Actions already implemented to address the

previously seen imbalance in the recruitment

across grades include:

• strengthening the recruitment process to more

consistently use structured interviews

• standardising advertised salaries

• anonymising applications received through

our recruitment systems

• briefing agencies for a more diverse

candidate

pool.

Our priority action areas for 2021 are:

• completing the review of recruitment policy

and practice and rolling out the use of

competencies for selection

• broadening out the existing pay and reward

policy for Executive pay to staff pay to ensure

there are clear, fair and transparent processes

or setting and increasing salaries

• a review of flexible working.

IOP Annual Report 2020: Trustees' Annual Report 27

Anti-Slavery and Human Trafcking

The IOP is committed to prohibiting modern

slavery and human trafcking in any part of its

business, including in all supply chains. The IOP

has a diverse supply chain, including suppliers of

IT, print and editorial services, ofce equipment,

catering services, building services, temporary

recruitment services, and accommodation and

venue facilities.

Our Anti-Slavery and Human Trafficking Policy

reflects a commitment to acting ethically and

with integrity in all business relationships, and to

implement and enforce effective systems and

controls to prohibit slavery and human trafficking

in supply chains and business.To ensure that all

companies in the supply chain comply with all

obligations on anti-slavery and human

trafficking, all relevant suppliers are issued with,

and agree to comply with, the Anti-Slavery

and Human Trafficking Policy, and appropriate

obligations are included in contracts with

them. Those obligations allow the IOP to

secure assurances that those suppliers have

appropriate measures in place in relation to their

own business and supply chains, and commit to

complying with all relevant legislation and codes

of practice.

Anti-Bribery and Corruption

We support and have an ongoing commitment

to carrying out our business fairly, honestly and

openly. We maintain policies and procedures

to prevent bribery and would take disciplinary

action against any member of staff who

engaged in bribery. We also maintain

whistleblowing procedures for staff toreport any

allegations of wrongdoing.

IOP Publishing Lower Lower Middle Upper Middle Upper

Across

allquartiles

Female

Mean £11.45 £14.92 £19.14 £32.85

£17.97

Median £11.61 £14.72 £18.79 £29.57 £15.73

Number of staff 54 49 45 30 178

Male

Mean £12.05 £14.66 £19.70 £33.72 £21.37

Median £12.22 £14.31 £19.82 £28.63 £19.02

Number of staff 31 37 41 54 163

Pay Gap

Mean 4.98% -1.77% 2.84% 2.58% 15.91%

Median 4.99% -2.87% 5.20% -3.28% 17.30%

Percentage of

femaleemployees

64% 57% 52% 35% 52%

Percentage of

maleemployees

36% 43% 48% 65% 48%

Within the IOP Group there is a statutory

requirement for IOP Publishing Limited to make

a gender pay gap declaration. In IOP Publishing,

women’s mean hourly wage was 15.91% lower

than men’s while women’s median hourly wage

was 17.30% lower than men’s.

IOP Annual Report 2020: Trustees' Annual Report 28

Statement of Trustees’ Responsibilities

Members of Council (who are the trustees

of the IOP) are responsible for preparing the

Trustees’ Annual Report and the Financial

Statements in accordance with applicable

lawand United Kingdom Accounting Standards

(United Kingdom Generally Accepted

AccountingPractice).

The law applicable to charities in England and

Wales and in Scotland requires the trustees to

prepare nancial statements for each nancial

year which give a true and fair view of the state

of affairs of the charity and the Group, and of the

incoming resources and application of resources

of the charity and the Group for that period.

In preparing these nancial statements,

thetrustees are required to:

• select suitable accounting policies

andthenapply them consistently;

• observe the methods and principles

intheCharities SORP;

• make judgments and estimates that

arereasonable and prudent;

• state whether applicable accounting

standards, comprising FRS 102, have been

followed, subject to any material departures

disclosed and explained in the nancial

statements; and

• prepare the nancial statements on the

going concern basis unless it is inappropriate

to presume that the charity will continue

inbusiness.

The trustees are responsible for keeping

proper accounting records that disclose with

reasonable accuracy at any time the nancial

position of the charity and enable them to

ensure that the nancial statements comply

with the Charities Act 2011 and the Charity

(Accounts and Reports) Regulations 2008.

They are also responsible for safeguarding the

assets of the charity and the Group, and hence

for taking reasonable steps for the prevention

anddetection of fraud and other irregularities.

The trustees are responsible for the

maintenance and integrity of the charity and

nancial information included on the charity’s

website. Legislation in the United Kingdom

governing the preparation and dissemination

ofnancial statements may differ from

legislation in other jurisdictions.

IOP Annual Report 2020:Trustees' Annual Report 30

Financial Review

Financial Statements

The nancial statements for the year ended

31December 2020 are set out on pages 37

to69. They were prepared applying accounting

policies in accordance with UK Generally

Accepted Accounting Practice, and comply

with the Statement of Recommended Practice,

Accounting and Reporting by Charities SORP

(FRS 102).

Financial Review

Some 91% (2019: 90%) of the group’s incoming

resources are generated from the activities of

its trading subsidiary, IOP Publishing Limited.

In2020 78% of the IOP’s income was generated

from gift aid from its publishing subsidiaries

(2019: 64%). This gift aid income is shown

within income from scientific publications in the

charity's Statement of Financial Activities. Other

sources of income include income from

members either as membership fees or for

additional services and grants from government

and other grant-awarding bodies.

Total incoming resources in the year for the

group increased by £2.1m to £76.7m (2019:

£74.6m). Income from scientific publications

increased by £5.4m on 2019 to £69.7m, with

astrong year for IOP Publishing Limited despite

the challenges presented by the COVID-19

pandemic. Income from other charitable

activities dropped by £2.4m to £5.0m primarily

due toa vastly reduced conference programme

in2020 dueto the restrictions implemented

due tothepandemic.

Further commentary on the activities of IOP

Publishing Limited is shown below.

Total resources expended have decreased

intheyear, due to savings made on travel costs

and the reduction in costs on conferences.

Totalexpenditure for the group was £66.8m

(2019: £68.3m), a decrease of £1.5m or 2%.

Further details are included in the Consolidated

Statement of Financial Activities on page 37.

The IOP’s balance sheet is included on page 39.

The IOP considers incoming resources, Gift Aid

remitted from its subsidiaries and expenditure

tobe key performance indicators.

Debtors have decreased from £17.7m to

£16.6mat 31 December 2020, primarily

duetothe decrease in debtors within IOP

Publishing Limited. During the year, all billing was

brought in-house which resulted in the earlier

invoicing and receipt of cash from customers

incomparison to prior years.

Deferred revenue remains a key balance and has

increased by £2.1m to £15.8m (2019:

£13.7m), driven by the earlier invoicing in

comparison to prior years. Deferred membership

renewals for 2020 have fallen slightly within the

IOP compared to 2019 due to the change to a

one-time start date for membership renewals.

The cash and short-term investment position

remains strong, with an increase from

£19.1m at31 December 2019 to £28.6m

at31December 2020 representing a healthy

cash balance considering the investment the IOP

has made in the new building in Dublin this year.

Further details on capital additions are given

innote 15. The value of investments has

increased by £1.2m to £23.0m at 31 December

2020 and the IOP’s portfolio has performed well

through the market reactions to global events.

Purchases of fixed assets made during the year

totalled £4.5m including the purchase ofthe

IOP’s new building in central Dublin.

Wecontinue to use our operating surplus,

alongside careful cash management, to meet the

ongoing liabilities of the IOP.

The IOP’s defined benefit pension deficit

increased by £7.6m to £10.9m (2019:

£3.3m), as growth in the liabilities of the

InstituteofPhysics Retirement Benefit Plan

(1975) of£18.9m exceeded the growth in the

present value of assets of £11.3m due to the

impact ofcorporate bond yields during 2020.

IOP Annual Report 2020: Trustees' Annual Report 31

The scheme published its triennial revaluation

of31 December 2019 during the year.

Thetriennial valuation, updated to the end

of 2020, showed a decit of £7.5m due

toa difference inthe methodology used.

Adecitelimination plan was agreed with

thescheme’s trustees. Further details are

given innote 23 of the financial statements. The

trustees have concluded that the Group

isagoing concern and these nancial

statements have therefore been prepared

onthat basis. The strong performance

ofthe Group in 2020 and the positive net asset

position at the end of2020 support

thetrustees’ conclusion.

IOP Publishing Limited (IOP Publishing)

In a challenging year that has been dominated

by the COVID-19 pandemic, IOP Publishing

generated turnover for 2020 of £70.4m

(2019:£64.9m) which reects an 8.5%

increase on 2019driven by growth across the

different business areas. The current year gross

prot margin has increased to 92.5% (2019:

91.5%) with an improved operating margin

for the current year of 29.5% (2019: 25.9%).

TheCOVID-19 pandemic has imposed signicant

restrictions on both national and international

travel, which has resulted in signicant cost

savings that have contributed to the improved

operating margin in 2020. IOP Publishing pays

all of its taxable profits for the reporting period to

the IOP under the gift aid scheme.

As mentioned above, all billing was brought

in-house during the year, which resulted in

the earlier invoicing and receipt of cash from

customers in comparison to prior years.

Reserves and investment

The Charter and Bylaws confer power on the IOP

to maintain income reserves. Council reviews

atleast annually both the IOP’s continuing need

for reserves and their appropriate level.

Thereserves policy set out below is based on,

and isconsistent with, guidelines on the subject

issued by the Charity Commission.

The strategic reasons for the IOP to retain

reserves, rather than simply spend all of

its income as it arises, are, as stated in

itsInvestment Policy:

• to be able to make short and medium-term

expenditure commitments without the

riskofshort-term uctuations in income

forcing reduction in, or cancellation of,

planned activity;

• to reduce the level of dependence on income

from publishing; and

• in the event of a material and sustained fall

in income from other sources, to provide

sufcient reserves to enable the IOP to make

the changes in its organisation and activities

necessary to respond to this in an orderly

and planned way.

The overall investment objectives of the IOP

are to achieve a minimum net total return of

12 month LIBOR (London Interbank Offered

Rate) +3.5%, after payment of fees over rolling

three-year periods, using a diversied strategic

asset allocation approach to minimise the risk

for this level of return.

During the year the investment portfolio held

by the IOP generated an unrealised gain to the

group of £1.2m (2019: gain of £1.2m). The IOP

actively manages its investment portfolio.

After a review in 2014, Council has considered

the level of reserves appropriate to meet the

above purposes and has determined that

total free reserves should ideally be of the

order of one and a half to two years of planned

expenditure, excluding projects funded by

external grants or fees (on the basis that fee

based activities such as conferences would

not continue if no attendees were attracted).

Free reserves are the carrying balance of the

additional sums set aside from the operational

surplus of the group each year as an investment

of cash in a balanced portfolio of assets

balancing risk and reward in accordance with

the requirements of the IOP.

IOP Annual Report 2020: Trustees' Annual Report 32

The required level of r

eserves on

31December2020 based on the current

long-term plan, as modied by the 2021 budget,

isbetween approximately £18.5m–£24.6m

(2019: £17.3m–£23.1m). The current level

of free reserves as represented by the IOP’s

investments is £23.0m (£20.3m unrestricted,

£2.7m restricted) (2019: £21.8m (£19.1m

unrestricted, £2.7m restricted)), which

is deemed appropriate given the IOP’s

commitments over the following 12 months.

The balances on the individual funds of the IOP

at 31 December 2020 are considered adequate

to meet their respective commitments.

Ethical Investment Policy

The IOP is a charity established with the

objective of promoting the advancement and

dissemination of a knowledge of and education

in the science of physics, pure and applied.

The trustees delegate the responsibility of

managing the investment portfolio and ensuring

compliance with the objectives of the Investment

Policy to the Group Chief Executive Officer,

Group Chief Financial Officer and Honorary

Treasurer. Those persons then despatch this

duty with the support of IOP’s professional

advisors and the committee responsible for

finance and investment. They are guided by the

Investment Policy which is reviewed at the

commencement of each new strategic planning

period, typically five years.

ndependent Auditors

All of the current trustees have taken all of the

steps necessary to make themselves aware of

any information needed by the charity’s auditors

for the purpose of their audit and to establish

that the auditors are aware of that information.

The trustees are not aware of any relevant audit

information of which the auditors are unaware.

By order of Council

Brian Fulton

Professor Brian Fulton FInstP CPhys

Honorary Secretary

21 May 2021

David Delpy

Professor David Delpy CBE FRS FREng

FMedSci FInstP CPhys

Honorary Treasurer

21 May 2021

IOP Annual Report 2020 33

Independent auditors’

report to the trustees of

theInstituteof Physics

Report on the audit of the nancialstatements

Opinion

In our opinion, the Institute of Physics’ group

nancial statements and parent charity nancial

statements (the “nancial statements”):

• give a true and fair view of the state of the

group’s and of the parent charity’s affairs

as at 31 December 2020 and of the group’s

and parent charity’s incoming resources and

application of resources, and of the group’s

cash ows, for the year then ended;

• have been properly prepared in accordance

with United Kingdom Generally Accepted

Accounting Practice (United Kingdom

Accounting Standards, comprising FRS 102

“The Financial Reporting Standard applicable

in the UK and Republic of Ireland”, and

applicable law); and

• have been prepared in accordance with the

requirements of the Charities Act 2011 and

Regulation 15 of The Charities (Accounts

andReports) Regulations 2008).

We have audited the nancial statements,

included within the Annual Report (the

“AnnualReport”), which comprise: thegroup

and parent charity Balance Sheets as at

31December2020; the Consolidated

Statement of Financial Activities incorporating

a consolidated income and expenditure

account, the Charity Statement of Financial

Activities incorporating an income and

expenditure account for the year then ended,

theConsolidated Statement of Cash Flows

for the year then ended; and the notes to the

nancial statements which include asummary

ofthe signicant accounting policies.

Basis for opinion

We conducted our audit in accordance

with International Standards on Auditing

(UK) (“ISAs(UK)”) and applicable law. Our

responsibilities under ISAs (UK) are further

described in the Auditors’ responsibilities for

theaudit of the nancial statements section

ofour report. Webelieve that the audit evidence

we have obtained is sufcient and appropriate

to providea basis for our opinion.

Independence

We remained independent of the group in

accordance with the ethical requirements

that are relevant to our audit of the nancial

statements in the UK, which includes the FRC’s

Ethical Standard and we have fullled our other

ethical responsibilities in accordance with

theserequirements.

Conclusions relating to going concern

Based on the work we have performed,

wehavenot identied any material uncertainties

relating to events or conditions that, individually

orcollectively, may cast signicant doubt on

thegroup and parent charity’s ability to continue

asa going concern for a period of atleast

twelvemonths from the date on which the

nancial statements are authorised for issue.

In auditing the nancial statements, we have

concluded that the trustees’ use of the going

concern basis of accounting in the preparation

of the nancial statements is appropriate.

IOP Annual Report 2020 34

Independent auditors’ report to the trustees of theInstituteof Physics (continued)

However, because not all future events or

conditions can be predicted, this conclusion

isnot a guarantee as to the group’s and parent

charity’s ability to continue as a going concern.

Our responsibilities and the responsibilities of

the trustees with respect to going concern are

described in the relevant sections of this report.

Reporting on other information

The other information comprises all of the

information in the Annual Report other than the

nancial statements and our auditors’ report

thereon. The trustees are responsible for the

other information. Our opinion on the nancial

statements does not cover the other information

and, accordingly, we do not express an audit

opinion or any form of assurance thereon.

In connection with our audit of the nancial

statements, our responsibility is to read the

other information and, in doing so, consider

whether the other information is materially

inconsistent with the nancial statements or our

knowledge obtained in the audit, or otherwise

appears to be materially misstated. If we

identify an apparent material inconsistency

or material misstatement, we are required to

perform procedures to conclude whether there

is a material misstatement of the nancial

statements or a material misstatement of the

other information. If, based on the work we have

performed, we conclude that there is a material

misstatement of this other information, we are

required to report that fact. We have nothing to

report based on these responsibilities.

Based on the responsibilities described above

and our work undertaken in the course of the

audit, ISAs (UK) require us also to report certain

opinions and matters as described below.

Trustees’ Report

Under the Charities Act 2011 we are required

toreport to you if, in our opinion the information

given in the Trustees’ Annual Report is

inconsistent in any material respect with the

nancial statements. We have no exceptions

toreport arising from this responsibility.

Responsibilities for the nancial

statements and the audit

Responsibilities of the

trustees for the

nancial statements

As explained more fully in the Statement of

Trustees’ Responsibilities, the trustees are

responsible for the preparation of the nancial

statements in accordance with the applicable

framework and for being satised that they

give a true and fair view. The trustees are

also responsible for such internal control

asthey determine is necessary to enable the

preparation of nancial statements that are

freefrom material misstatement, whether

duetofraud or error.

In preparing the nancial statements,

thetrustees are responsible for assessing the

group’s and parent charity’s ability to continue

as a going concern, disclosing as applicable,

matters related to going concern and using

thegoing concern basis of accounting unless

thetrustees either intend to liquidate the group

and parent charity or to cease operations, or

have norealistic alternative but to do so.

Auditors’ responsibilities for the audit of the

nancial statements

We are eligible to act and have been appointed

as auditors under section 144 of the Charities

Act 2011 and report in accordance with the

Actand relevant regulations made or having

effect thereunder.

Our objectives are to obtain reasonable

assurance about whether the nancial

statements as a whole are free from material

misstatement, whether due to fraud or error,

and to issue an auditors’ report that includes

our opinion. Reasonable assurance is a high

level of assurance, but is not a guarantee that

an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement

when itexists. Misstatements can arise from

fraud orerror and are considered material

if,individually or in the aggregate, they

could reasonably be expected to inuence

the economic decisions of users taken

onthebasisof these nancial statements.

IOP Annual Report 2020 35

Independent auditors’ report to the trustees of theInstituteof Physics (continued)

Irregularities, including fraud,

are instances

of non-compliance with laws and regulations.

We design procedures in line with our

responsibilities, outlined above, to detect

material misstatements in respect of

irregularities, including fraud. The extent to

which our procedures are capable of detecting

irregularities, including fraud, is detailed below.

Based on our understanding of the group and

parent charity/industry, we identied that the

principal risks of non-compliance with laws and

regulations related to nancial reporting and

related charities legislation and tax legislation,

and we considered the extent to which

non-compliance might have a material effect

onthe nancial statements. We also considered

those laws and regulations that have a direct

impact on the nancial statements such as the

Charities Act 2011 and Regulation 15 of The

Charities (Accounts and Reports) Regulations

2008. We evaluated the trustees’ incentives

and opportunities for fraudulent manipulation

of the nancial statements (including the risk

of override of controls), and determined that

the principal risks were related to posting

inappropriate journal entries to increase

revenue or reduce expenditure, and applying

management bias in accounting estimates.

Audit procedures performed included:

• Discussions with management and the

trustees, including consideration of known or

suspected

instances of non-compliance with

laws and regulation and fraud;

• Reviewing relevant meeting minutes

includingthose of the Council and subsidiary

board minutes;

• Evaluation of management’s controls

designed to prevent and detect irregularities,

in particular the whistleblowing policy and

employee code of conduct;

• Challenging assumptions and judgements

made by management in their signicant

accounting estimates, in particular in relation

to the valuation of partner accruals and

the valuation of dened benet pension

liabilities; and

• Identifying and testing journal entries,

inparticular any journal entries posted

withunusual account combinations.

There are inherent limitations in the audit

procedures described above. We are less

likely to become aware of instances of

non-compliance with laws and regulations

that are not closely related to events and

transactions reected in the nancial

statements. Also, the risk of not detecting

amaterial misstatement due to fraud is

higherthan the risk of not detecting one

resulting from error, as fraud may involve

deliberate concealment by, for example,

forgeryor intentional misrepresentations,

orthrough collusion.

A further description of our responsibilities for

the audit of the nancial statements is located

on the Financial Reporting Council’s website at:

www.frc.org.uk/auditorsresponsibilities. This

description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been

prepared for and only for the charity’s trustees

as a body in accordance with section 151 of the

Charities Act 2011 and regulations made under

section 154 of that Act (Part 4 of The Charities

(Accounts and Reports) Regulations 2008) and

for no other purpose. We do not, in giving these

opinions, accept or assume responsibility for any

other purpose or to any other person to whom

this report is shown or into whose hands it may

come save where expressly agreed by our prior

consent in writing.

IOP Annual Report 2020 36

Independent auditors’ report to the trustees of theInstituteof Physics (continued)

Other required reporting

Charities Act 2011 exception reporting

Under the Charities Act 2011 we are required

toreport to you if, in our opinion:

• we have not received all the information

andexplanations we require for our audit; or

• sufcient accounting records have not been

kept by the parent charity; or

• the parent charity nancial statements are

not in agreement with the accounting records

and returns.

have no exceptions to report arising

from thisresponsibility.

PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

Bristol

21 May 2021

IOP Annual Report 2020 37

Consolidated Statement of Financial Activities incorporating a consolidated

incomeandexpenditure account for the year ended 31 December 2020

2020 2020 2020 2019

Note Restricted Unrestricted Total Total

£’000 £’000 £’000 £’000

Income from:

Donations and legacies 3 – 9 9 471

Charitable activities:

Membership – 1,646 1,646 1,723

Programmes 380 2,963 3,343 5,672

Scientic Publications – 69,707 69,707 64,252

Other trading activities – 1,659 1,659 1,980

Investments 6 – 220 220 497

Other – 106 106 –

Total income 3 & 5 380 76,310 76,690 74,595

Expenditure on:

Raising funds – (64) (64) (71)

Charitable activities:

Scientic Publications 7 – (48,895) (48,895) (47,977)

Ecosystem 7 (392) (4,362) (4,754) (5,228)

Productivity 7 – (12) (12) (80)

Campaign 7 – (498) (498) (591)

Public Dialogue 7 – (212) (212) –

Transformation 7 – (154) (154) –

Membership 7 – (643) (643) (3,533)

Business operations 7 (40) (10,359) (10,399) (9,881)

Other – (1,209) (1,209) (911)

Total expenditure 7 (432) (66,408) (66,840) (68,272)

Net gains on investments 17 – 1,154 1,154 1,189

Net (exp endit ur e) / i ncom e (52) 11,056 11,004 7,512

Other recognised (losses) /gains

Actuarial (losses) / gains on dened

benetpension scheme

23 – (8,502) (8,502) 1,104

Exchange difference on retranslation

ofnetassets of subsidiary undertakings

– 45 45 (130)

Net movement in funds (52) 2,599 2,547 8,486

Fund balances brought forward 3,355 61,208 64,563 56,077

Fund balances carried forward 22 3,303 63,807 67,110 64,563

The Statement of Financial Activities includes all gains and losses recognised in the year. All amounts

relate to continuing activities. The notes on pages 41 to 69 form part of these nancial statements.

IOP Annual Report 2020 38

Charity Statement of Financial Activities incorporating an income and expenditure

account for the year ended 31 December 2020

2020 2020 2020 2019

Note Restricted Unrestricted Total Total

£’000 £’000 £’000 £’000

Income from:

Donations and legacies 3 – 9 9 471

Charitable activities:

Membership – 1,646 1,646 1,723

Programmes 380 2,963 3,343 5,672

Scientic Publications – 21,469 21,469 16,122

Investments – 1,065 1,065 1,343

Other – 106 106 –

Total income 380 27,258 27,638 25,331

Expenditure on:

Raising funds – (64) (64) (71)

Charitable activities:

Ecosystem (392) (4,417) (4,809) (5,228)

Productivity – (12) (12) (80)

Campaign – (498) (498) (591)

Public Dialogue – (212) (212) –

Transformation – (154) (154) –

Membership – (893) (893) (3,533)

Business operations (40) (10,359) (10,399) (9,881)

Other – (1,209) (1,209) (911)

Total expenditure (432) (17,818) (18,250) (20,295)

Net gains on investments 17 – 1,154 1,154 1,189

Net (exp endit ur e) / i ncom e (52) 10,594 10,542 6,225

Other recognised (losses) / gains

Actuarial (losses) / gains on dened

benetpension scheme

23 – (8,502) (8,502) 1,104

Net movement in funds (52) 2,092 2,040 7,329

Fund balances brought forward 3,355 42,799 46,154 38,825

Fund balances carried forward 22 3,303 44,891 48,194 46,154

IOP Annual Report 2020 39

Balance Sheet at 31 December 2020

Note Group Group Charity Charity

2020 2019 2020 2019

£’000 £’000 £’000 £’000

Fixed assets

Intangible assets 14 3,894 3,372 – –

Tangible assets 15 34,885 32,378 34,185 31,429

Investments in subsidiary undertakings 16 – – 3,001 3,001

Investments 17 22,953 21,799 22,953 21,799

61,732 57,549 60,139 56,229

Current assets

Debtors 18 16,577 17,661 1,414 1,302

Cash at bank and in hand 28,637 19,118 579 10,050

45,214 36,779 1,993 11,352

Creditors: amounts falling

due within one year

19 (28,147) (25,637) (2,249) (17, 299)

Net current assets/(liabilities) 17,067 11,142 (256) (5,947)

Provisions for liabilities 21 (806) (806) (806) (806)

Dened Benet Pension scheme decit 23 (10,883) (3,322) (10,883) (3,322)

Net Assets 67,110 64,563 48,194 46,154

Restricted funds

Restricted funds 22 3,303 3,355 3,303 3,355

Unrestricted funds

General fund 22 74,690 64,530 55,774 46,121

Pension reserve 23 (10,883) (3,322) (10,883) (3,322)

Total unrestricted funds 63,807 61,208 44,891 42,799

Total funds 67,110 64,563 48,194 46,154

These financial statements were approved by Council and authorised for issue on

20 May 2021 andweresignedon its behalf by

The notes on pages 41 to 69 form part of these nancial statements.

Jonathan Flint

Mr Jonathan Flint CBE FREng FInstP

resident

21 May 2021

David Delpy

Professor David Delpy CBE FRS FREng

FMedSci FInstP CPhys

Honorary Trea

surer

21 May 2021

IOP Annual Report 2020 40

Consolidated Statement of Cash Flows for the year ended 31 December 2020

2020 2019

£’000 £’000

Cash ows from operating activities

Net income for the year 11,004 7,512

Adjustments for:

Depreciation and amortisation of xed assets and intangible assets 3,435 3,134

Loss on disposal of xed assets 1 41

Gains on investments (1,154) (1,189)

Net interest receivable (8) (13)

Dividend income from xed and current investments (212) (484)

Difference between net pension expense and cash contribution (941) (929)

Decrease / (increase) in trade and other debtors 1,084 (2,481)

Increase in trade and other creditors 2,510 307

Increase in provisions – 23

Net cash provided by operating activities 15,719 5,921

Cash ows from investing activities

Purchases of xed assets and intangible assets (6,465) (2,302)

Interest received 8 13

Dividends received on xed and current asset investments 212 483

Purchase of investments (7,221) (6,966)

Sale of investments 7,221 6,966

Net cash used in investing activities (6,245) (1,806)

Net increase in cash and cash equivalents 9,474 4,115

Cash and cash equivalents at beginning of year 19,118 15,133

Foreign exchange gains / (losses) 45 (130)

Cash and cash equivalents at end of year 28,637 19,118

Cash and cash equivalents comprise:

Cash at bank and in hand 28,637 19,118

28,637 19,118

The notes on pages 41 to 69 form part of these nancial statements.

IOP Annual Report 2020 41

Notes forming part of the

nancial statements for the

year ended 31 December 2020

1. Accounting policies

The Institute of Physics (IOP) is a corporate

body governed by a Royal Charter, which

issupplemented by bylaws and regulations.

It was established in its current form by

RoyalCharter dated 30 September 1970.

The IOP is a charity registered in both England

& Wales (no. 293851) and in Scotland

(no.SC040092). The IOP has also applied

for registration as a charity in the Republic

ofIreland. The members of Council are the

trustees of the Charity. The IOP’s registered

ofce is37Caledonian Road, London N1 9BU.

The Institute of Physics is a Public Benet Entity

under FRS 102. The nancial statements have

been prepared in accordance with applicable

charity law and in accordance with FRS 102

“TheFinancial Reporting Standard applicable

in the United Kingdom and Republic of Ireland”

(“FRS 102”), with Accounting and Reporting by

Charities: Statement of Recommended Practice

applicable to charities preparing their nancial

statements in accordance withFRS102

(effective 1 January 2015) (“Charities SORP FRS

102”), and in accordance with the requirements

of the Charities Act 2011 and Regulation

15 of The Charities (Accounts and Reports)

Regulations 2008.

The nancial statements have been prepared

on the historical cost basis except for the

modication to a fair value basis for certain

investments and nancial instruments as

specied in the accounting policies below.

The preparation of nancial statements

incompliance with FRS 102 requires the use

ofcertain critical accounting estimates. It also

requires the Group’s management to exercise

judgement in applying the Group’s accounting

olicies (see note 2).

Going concern

Trustees continue to monitor the principal

markets in which it operates and they have

prepared forecasts and projections for

thecharity. These projections demonstrate

the charity’s ability to meet its obligations

asthey fall due. The trustees therefore

consider itappropriate to prepare the financial

statements on a going concern basis.

Parent entity disclosure exemptions

In preparing the individual nancial statements

of the IOP advantage has been taken of the

following disclosure exemption available in

FRS 102:

• No cash ow statement has been prepared

for the parent charity; and

• No disclosure has been given for the

aggregate remuneration of the key

management personnel of the parent

charitybecause their remuneration

is included inthetotals for the group

asawhole.

IOP Annual Report 2020 42

1. Accounting policies (continued)

Basis of consolidation

e consolidated nancial statements

incorporate the results of the Institute of

Physics and all its subsidiary undertakings

asat 31 December 2020 using the acquisition

method of accounting. Under this method,

the results of subsidiary undertakings acquired

or disposed of during the year are included

in the consolidated Statement of Financial

Activities from the effective date of acquisition

or up to the effective date of disposal.

All intra-group transactions, balances,

income and expenses are eliminated

in full on consolidation.

The consolidated nancial statements

incorporate the results of business combinations

using the purchase method. In the Balance

Sheet, the acquiree’s identiable assets and

liabilities are initially recognised at their fair

values at the acquisition date. Theresults

of acquired operations are included in the

consolidated Statement of Financial Activities

from the date on which control isgained.

Business combinations

Acquisitions of subsidiaries and businesses

are accounted for using the purchase method.

Thecost of the business combination is

measured at the aggregate of the fair values

atthe date of exchange of assets given,

liabilities incurred or assumed, and equity

instruments issued by the group in exchange

for control ofthe acquiree plus costs directly

attributable tothe business combination.

Anyexcess of the cost of the business

combination over the fair value of the identiable

assets and liabilities isrecognised as goodwill.

Analysis of income and expenditure

2020 marked the first year of the IOP’s new

strategy Unlocking the Future. The analysis of

income and expenditure by fund reects the

programmes of this new strategy, including

membership and business operations (business

as usual activities) and those of the IOP’s

publishing subsidiaries (scientic publications).

Income

Membership income is

recognised when

received and attributed to the nancial years

towhich it relates. Sundry income is recognised

when received. Income from production

ofin-house and external partner journals with

a majority of the income received in advance

isrecognised in line with the fair value of content

delivered. Other income streams include fees

received for publishing articles, ebooks and

advertising recognised upon publication, sales

of access to historic archives recognised upon

invoice, when permanent access is granted

and contract management fees recognised

on invoice.

Gift aid income

The Institute of Physics receives payments

from its subsidiaries under the gift aid scheme.

Gift aid income is recognised income from

scientific publications in thecharity’s Statement

of Financial Activities when the subsidiary has

made an irrevocable commitment to pay the

taxable profits to thecharity. Thecharity

previously had a gift aid covenant in place with

IOP Publishing Limited (IOP Publishing). At the

reporting date there wasnolegal obligation in

place for IOP Publishing tomake this payment.

The payment is, however, expected to be made

within ninemonths of the end of the reporting

date.

Government grants receivable

Grants are accounted for under the accruals

model as permitted by FRS 102. Grants

of arevenue nature are recognised in the

Statement of Financial Activities in the same

period as the related expenditure.

Resources expended

All expenditure is accounted for on an

accruals basis and has been classified under

headings that aggregate all costs related to the

relevant category. Where costs cannot be directly

attributed to particular headings they have

beenallocated to activities on a basis consistent

with use of the resources.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 43

1. Accounting policies (continued)

Support costs are those functions t

hat assist

thework of the charity but do not directly

undertake charitable activities. Support

costs include general management, payroll

administration, information technology,

human resources, nancing and governance

costs. These costs are allocated across the

expenditure on charitable activities. The basis

ofthe cost allocation has been explained

innote8 to the nancial statements.

Intangible xed assets – goodwill

Goodwill represents the excess of the cost

of abusiness combination over the fair value

of the Group’s share of the net identifiable

assets of theacquired subsidiary at the

date of acquisition. Goodwill on acquisition

ofsubsidiaries is included in Intangible assets.

Goodwill is carried at cost less accumulated

amortisation and accumulated impairment

losses. Goodwill amortisation is calculated

by applying the straight-line method to its

estimated useful life as follows:

• Goodwill on acquisition of subsidiaries:

5years

Intangible xed assets – software

Internally generated software assets are stated

at cost and depreciated over four years.

Tangible xed assets

Tangible xed assets are stated at cost

orvaluation, net of depreciation and any

provision for impairment.

Assets with a value of less than £500

arenotcapitalised.

Depreciation

Depreciation is provided to write off the cost

orvaluation less the estimated residual value

oftangible xed assets by equal instalments

over their estimated useful economic lives

asfollows:

• Freehold property: 25 years

• Ofce machinery: 4 years

• Fixtures and ttings: 10 years

• Computers: 3–4 years

The value of le

asehold property is amortised

over the remaining periods of the relevant

leases. The IOP holds an operating lease for

Temple Circus, Bristol which currently expires

in 2021.

Valuation of investments

Investments in subsidiaries are measured

at cost less accumulated impairment in the

individual charity nancial statements.

Other investments in listed company shares are

included in the Balance Sheet at the market

value of the individual unitised holdings.

Gains and losses are recognised in prot

orloss, within‘Net income/expenditure’

intheStatement ofFinancial Activities.

Debtors

Trade and other debtors are recognised

at transaction price, less any impairment.

Prepayments are valued at the amount prepaid

net of any trade discounts due.

Liquid resources

For the purposes of the cash ow statement,

liquid resources are dened as current asset

investments, which is cash held in short term

deposit accounts for investment purposes.

These are not considered to be cash because

they are not accessible penalty free within

oneworking day.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 44

1. Accounting policies (continued)

Cash

Cash includes c

ash in hand and deposits

repayable on demand with any qualifying

institution less overdrafts from any qualifying

nancial institution repayable on demand.

Deposits are repayable on demand if they can

be withdrawn at any time without notice and

without penalty, or if a maturity or period of

notice of not more than 24 hours or one working

day has been agreed. Cash includes deposits

denominated in foreign currencies.

Creditors

Short-term trade creditors are measured

atthe transaction price. Other nancial

liabilities are measured initially at amortised

cost and subsequently at amortised cost

less impairment.

Provisions

Provisions are recognised when the group has

a present obligation, legal or constructive, as

a result of a past event, it is probable that the

group will be required to settle the obligation,

and a reliable estimate can be made of the

amount of the obligation.

The group recognises a provision for annual

leave accrued by employees as a result of

services rendered in the current period,

andwhich employees are entitled to carry

forward and use in the following nancial year.

The provision is measured at the undiscounted

salary cost payable for the period of absence

that has been accrued.

The group recognises a provision for the

expected value of dilapidations for costs

relatingto the exit of leasehold premises

whichare notexpected to crystalise before

Q3 2021. Theamount payable will be agreed

through future negotiation at such point that

anexit occurs.

Financial instruments

Financial instruments are classied and

accounted for according to the substance

of the contractual arrangement, as nancial

assets, nancial liabilities or equity instruments.

Anequity instrument is any contract that

evidences a residual interest in an asset

ofthecompany after deducting all of its

liabilities. Financial instruments are measured

at amortised cost or fair value depending

onthenature of the underlying arrangement.

Derivative nancial instruments

Derivative nancial instruments are

recognisedat fair value with any gains

orlossesbeing recognised in prot or loss,

within ‘Net income/expenditure’ in the

Statement ofFinancialActivities.

Fund accounting

General funds are unrestricted funds which are

available for use at the discretion of the trustees

in furtherance of the objectives ofthecharity

and which have not been designated

forotherpurposes.

Restricted funds are funds which are to be used

in accordance with specic restrictions imposed

by the donors.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 45

1. Accounting policies (continued)

Pension costs – Institute of Physics

tirement Benets Plan 1975

The IOP operates the Institute of Physics

Retirement Benets Plan 1975 providing

pension benets based on nal pensionable

pay. This scheme was closed to new members

on 31 December 2001. The assets of the

scheme are held separately from those

ofthegroup in an independently administered

fund. This dened benet scheme is accounted

for inaccordance with FRS 102. The service

cost ofpension provision relating to the year,

together with the cost of any benets relating

to past service if the benets have vested,

ischarged tothe Statement of Financial

Activities. Achargeequal to the increase

inthe present value ofthe scheme liabilities

(because the benefits arecloser to settlement)

and a credit equivalent tothe group’s long-term

expected return onassets (based on the market

value of the scheme assets at the start of the

year), are also included in the Statement of

Financial Activities.

The difference between the market value

ofthe assets of the scheme and the present

value of the accrued pension liabilities is

shown as an asset or liability on the balance

sheet. Anydifferences between the actual

and expected return on assets during the

year are recognised in the Statement of

Financial Activities along with differences

arising fromexperience or assumption

changes. Thedened benet pension expense

recognisedin the Statement of Financial

Activities is allocated toexpenditure on

charitable activities in proportion with the

expenditure onthese activities. The dened

benet pension expenseis recognised in

unrestricted funds.

Pension costs – Institute of Physics Group

Personal Pension Schemes

The group operates two group personal

pensionschemes. They are both dened

contribution pension schemes with assets

heldin the namesof the individual members.

The rst was established from 1 January

002 and is managed by Aviva. This scheme

closed to new members on 31 January 2014.

For those members of staff who aremembers

of this scheme, the IOP contributes

2–18% of basic salary.

The second was established from 1 February 2014

and is managed by Aviva.Forthose members

of staff who choose tojointhe scheme the IOP

contributes 2–12% ofbasic salary.

Contributions to the group’s dened contribution

pension schemes are charged to the Statement

of Financial Activities in the year in which they

become payable.

Foreign currencies

Functional currency and presentation currency

The individual nancial statements of each

group entity are presented in the currency

ofthe primary economic environment in which

theentity operates (the functional currency). The

consolidated financial statements are presented

in Sterling, which is the charity’s andthe group’s

presentation currency.

Transactions and balances

In preparing the nancial statements of the

individual entities, transactions in currencies

other than the functional currency of the

individual entity are recognised at the spot

rate at the dates of the transactions or at

anaverage rate where this rate approximates

the actual rate at the date of the transaction.

Atthe end of each reporting period, monetary

items denominated in foreign currencies are

retranslated at the rates prevailing at that date.

Non-monetary items that are measured in terms

of historical cost inaforeign currency are not

retranslated. Foreign exchange differences that

arise are recognised in prot or loss, within

‘Net income/expenditure’ in the Statement

of Financial Activities.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 46

1. Accounting policies (continued)

Translation of gr

oup companies

For the purpose of presenting consolidated

nancial statements, the assets and liabilities

of the group’s foreign operations are translated

from their functional currency to Sterling using

the exchange rate ruling on the Balance Sheet

date. Income and expenses are translated

using an average rate for the period, unless

exchange rates uctuated signicantly during

that period, in which case the exchange rates

at the dates ofthe transactions are used.

Exchange differences arising on translation

ofgroup companies are recognised within

‘Otherrecognised gains/losses’ in the

Statement of Financial Activities.

Operating leases

Rentals payable under operating leases

arecharged to the Statement of Financial

Activities on a straight-line basis over the

termsof theleases.

Rental income receivable under operating leases

with a third party is recognised in the Statement

of Financial Activities on a straight-line basis

over the terms of the leases.

The group has taken advantage of the

transitional relief available for lease incentives,

such that where a lease commenced before the

date of transition to FRS 102, the remaining

benet of the lease incentive may continue

toberecognised in accordance with previous

UK GAAP.

2. Signicant judgements and estimates

Preparation of the nancial statements

requiresthe Executive Board and Senior

Management Team to make signicant

judgements andestimates.

Signicant estimates

The items in the nancial statements where

signicant estimates have been made include:

Revenue recognition

Income from production of in-house and external

partner journals with a majority of the income

received in advance is recognised in line with

the fair value of content delivered. An estimate

is required in the recognition of revenue where

contracts with customers span multiple years.

Dened benet pension scheme valuation

Valuation of the assets and liabilities of

thegroup dened benet pension scheme

are performed by a professional actuary.

Thisrequires estimates to be made around

therange of assumptions used and the value

used for each assumption.

Partner accruals

Indirect costs of IOP Publishing Limited are

allocated to partners in the calculation of

partner payments. An estimate is required

inthisallocation.

Dilapidations

A provision is included for the value

ofdilapidations for costs relating to the

exitofleasehold premises which are not

expected to crystalise before Q3 2021.

Anestimate is required to determine this

value. The amount payable will be agreed

through future negotiation at such point

thatanexitoccurs.

Signicant judgements

The items in the nancial statements where

signicant judgements have been made are:

Partner agreements

When agreements are entered into with

partners, judgement is required as to whether

the company is acting as the agent or the

principal in the arrangement and therefore

howrevenue should be recognised. The

following factors are taken into consideration

when making this judgement: which party

tothe agreement establishes the sales prices;

which party bears the credit risk on the sale;

and whichparty is responsible for providing

the goods or services to the customer.

Thecontractual terms set out in the agreement

andthe substance of the arrangement

arealsotaken intoconsideration.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 47

Notes forming part of

the nancial statements for the year ended 31 December 2020 (continued)

3. Income: analysis by fund

2020 marked the rst year of the IOP’s new strategy Unlocking the Future. The analysis of income and

expenditure by fund reects the programmes of this new strategy, including membership and business

operations (business as usual activities) and those of the IOP’s publishing subsidiaries (scientific

publications). Please see the Objectives and Activities, Achievements and Performance section of the

Trustees' Annual Report for more information on our ecosystem, productivity and transformation

programmes, aswell as our influencing campaign Limit Less, and the Looking Glass podcast series,

key elements ofour public dialogue programme.

2020 2020 2020 2019 2019 2019

Note Restricted Unrestricted Total Restricted Unrestricted Total

£’000 £’000 £’000 £’000 £’000 £’000

Income from:

Donations

andlegacies

– 9 9 400 71 471

Charitable

activities:

Membership – 1,646 1,646 – 1,723 1,723

Programmes 380 2,963 3,343 627 5,045 5,672

Scientic

Publications

– 69,707 69,707 – 64,252 64,252

Other trading

activities

– 1,659 1,659 – 1,980 1,980

Investments 6 – 220 220 – 497 497

Other – 106 106 – – –

Total income 5 380 76,310 76,690 1,027 73,568 74,595

4. Expenditure: analysis by fund

2020 2020 2020 2019 2019 2019

Note Restricted Unrestricted Total Restricted Unrestricted Total

£’000 £’000 £’000 £’000 £’000 £’000

Expenditure on:

Raising funds – (64) (64) – (71) (71)

Charitable

activities:

Scientic

Publications

7 – (48,895) (48,895) – (47, 977) (47,977)

Ecosystem 7 (392) (4,362) (4,754) (515) (4,713) (5,228)

Productivity 7 – (12) (12) – (80) (80)

Campaign 7 – (498) (498) – (591) (591)

Public dialogue 7 – (212) (212) – – –

Transformation 7 – (154) (154) – – –

Membership 7 – (643) (643) – (3,533) (3,533)

Business

operations

7 (40) (10,359) (10,399) – (9,881) (9,881)

Other – (1,209) (1,209) – (911) (911)

Total expenditure (432) (66,408) (66,840) (515) (67,757) (68,272)

IOP Annual Report 2020 48

5. Analysis of incoming resources

By geographical market 2020 2019

£’000 £’000

Europe, Middle East and Africa 27,583 30,891

The Americas 29,780 27,34 8

Asia Pacic 19,327 16,356

Total 76,690 74,595

By class of business 2020 2019

£’000 £’000

Publishing operations 71,366 66,232

Charitable activities 3,343 6,238

Membership income 1,646 1,558

Other 335 567

Total 76,690 74,595

6. Investment income

2020 2019

£’000 £’000

Dividends and interest from listed investments 212 484

Interest from cash and short term investments 8 13

Total 220 497

Group investment income of £220k is lower than the charity’s investment income due to the elimination

of intercompany rent r

echarged in respect of Temple Circus.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 49

7. Analysis of expenditure

2020 marked the first year of the IOP’s new strategy Unlocking the Future. The analysis of expenditure

ects the programmes of this new strategy, including membership and business operations (business

as usual activities) and those of the IOP’s publishing subsidiaries (scientific publications). Please see

the Objectives and Activities, Achievements and Performance section of the Trustees' Annual Report for

more information on our ecosystem, productivity and transformation programmes, as well as our

influencing campaign Limit Less and Looking Glass podcast series, key elements of our public dialogue

programme.

7a. Analysis of expenditure by type

Activities

undertaken

directly

Grant funding

activities

Support costs 2020 2019

£’000 £’000 £’000 £’000 £’000

Raising funds – – 64 64 71

Charitable activities:

Scientic

Publications

48,895 – – 48,895 47,977

Ecosystem 3,642 60 1,052 4,754 5,228

Productivity 5 – 7 12 80

Campaign 205 – 293 498 591

Public dialogue 88 – 124 212 –

Transformation 64 – 90 154 –

Membership 117 – 526 643 3,533

Business operations 1,742 – 8,657 10,399 9,881

Other – – 1,209 1,209 911

Total 54,748 60 12,022 66,840 68,272

Activities undertaken directly are costs directly attributable to the activity. Support costs are those costs

that support the activity. Grant funding represents 107 (2019: 102) STFC grants made to schools to help

them run physics andastronomy related activities.

7b. Analysis of expenditure on business operations

Included within expenditure on charitable activities are costs for business operations amounting

to£10,399k (2019: £9,881k). These are analysed as:

2020 2020 2020 2019

Restricted Unrestricted Total Total

£’000 £’000 £’000 £’000

Awards 17 284 301 413

Support – 2,783 2,783 3,337

Membership – 1,295 1,295 1,295

Technology – 3,049 3,049 2,081

Facilities – 2,070 2,070 1,837

Outreach 23 878 901 918

Total business operations expense 40 10,359 10,399 9,881

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 50

8. Analysis of governance and support costs

Included within expenditure on charitable activities are governance and support costs amounting

to£10,749k (2019: £10,829k). These are analysed as:

Management

Costs

(Directorate

and Staff)

Central Costs

(IT, HR,

Facilities)

Finance Costs 2020 2019

£’000 £’000 £’000 £’000 £’000

Ecosystem 872 180 – 1,052 832

Productivity 6 1 – 7 41

Campaign 243 50 – 293 303

Public dialogue 103 21 – 124 –

Transformation 75 15 – 90 –

Membership 436 90 – 526 1,813

Business operations 5,255 2,854 548 8,657 7,8 40

Total 6,990 3,211 548 10,749 10,829

Auditors fees:

2020 2019

£’000 £’000

Fees payable to the charity’s auditors for the audit of the charity’s annual

nancialstatements

38 35

Fees payable to the charity’s auditors for other services:

The audit of the charity’s subsidiaries pursuant to legislation 84 82

Other services 301 22

Other taxation services 11 43

Total 434 181

Non audit fees include work by PwC’s Inclusion and Diversity practice on the Giving Voice to Inclusion

programme, a central focus of the IOP’s efforts to foster a more representative physics community

looking beyond diversity to inclusion.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 51

9. Staff

2020 2019

£’000 £’000

Wages and salaries 25,375 24,022

Social security costs 2,298 2,166

Pension costs 2,450 2,459

Redundancy and severance costs 244 434

Total 30,367 29,081

The number of employees earning more than £60,000 including bonuses (excluding employer pension

contributions) per year can be analysed in the following bands:

2020 2019

£60,000–£69,999 26 22

£70,000–£79,999 23 16

£80,000–£89,999 11 13

£90,000–£99,999 4 2

£100,000–£109,999 5 2

£110,000–£119,999 1 2

£120,000–£129,999 2 1

£130,000–£139,999 – 1

£140,000–£149,999 1 –

£150,000–£159,999 1 –

£160,000–£169,999 2 2

£170,000 –£179,999* 3 1

£180,000–£189,999 – 1

£190,000–£199,999 – –

£200,000–£209,999 1 –

£210,000–£219,999 – –

£220,000–£229,999 1 –

£230,000–£239,999 – 1

£240,000–£249,999 – 1

£330,000–£339,000 – –

£390,000–£399,999 – 1

£400,000–£410,000 1 –

* This banding includes the remuneration of the Group Chief Executive Ofcer.

The above banding includes 50 (2019: 38) staff for whom retirement benets are accruing under

denedcontribution schemes and 9 (2019: 5) staff for whom retirement benets are accruing

underdened benet schemes. Contributions by the group for the year for the above employees

todened contribution schemes amounted to £482k (2019: £387k). 24 staff included above

(2019:24)are paid in foreign currencies and their earnings are subject to foreign exchange

fluctuationswhen translating from the basecurrency to Sterling.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 52

9. Staff (continued)

Additional information on the total remuneration package of employees earning over £60,000 per year

isshown below.

Institute of Physics – Charity

Salary and

compensation

Bonus and

commission

Non pensionable

allowances and

other benets

mployer pension

ontribution

2020 2019

£60,000–£69,999 – – £5,000–£14,999 4 5

£70,000–£79,999 – – £5,000–£14,999 7 3

£80,000–£89,999 – – £5,000–£14,999 1 –

£100,000–£109,999 – – £5,000–£14,999 2 –

£140,000–£149,999 – – £0–£5,000 1 –

£170,000 –£179,999* – – £30,000–£34,999 1 1

* This banding includes the remuneration of the Group Chief Executive Ofcer.

Institute of Physics – Group

Within the trading subsidiaries of the Institute of Physics group (IOP Enterprises Limited, IOP Publishing

Limited, Turpion Limited, Turpion–Moscow Limited, IOP Publishing Inc., IOP Business Publishing Inc.,

IOPPublishing Consultants (Beijing) Co Limited, IOP Marketing and Promotion Services Private Limited),

some staff, dependant on role, have contractual performance based incentives linked to the subsidiaries

revenue or prot growth. Staff may also receive non pensionable allowances and medical benets

inaddition to employer pension contributions.

UK employer pension contributions are made at a maximum of 18% of pensionable salary.

The average number of employees during the year was:

2020 2019

Charitable work:

Institute of Physics 136 114

Business operations:

IOP Publishing Limited 224 247

IOP Publishing Inc. 32 32

IOP Business Publishing Inc. 2 2

Turpion–Moscow Limited 3 3

IOP Publishing Consultants (Beijing) Co Limited 14 12

IOP Marketing and Promotion Services Private Limited 4 4

Management and administration:

Institute of Physics 35 28

IOP Publishing Limited 135 111

Total 585 553

The number of full-time equivalent employees as at 31 December 2020 was 595 (2019: 547).

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 53

10. Key m

anagement

personnelremuneration

Key management personnel include all

members of Council. The President, honorary

ofcers and members of Council give their

time to the IOP on a voluntary basis and

arepaid no remuneration for this work. They

are reimbursed the actual costs of travel and

subsistence necessarily incurred on the ofcial

business ofthe IOP and/or its subsidiaries.

In the yearto31 December 2020 total expenses

incurred and reimbursed to 14 trustees (2019:

22) were£12k (2019: £32k).

Remunerated key management personnel

include themembers of the IOP’s senior

management team and directors of the

IOP’s subsidiary companies. The Group Chief

Executive Ofcer performs a group role across

all entities within the IOP Group. TheGroup

Chief Executive Ofcer is part of the IOP’s

senior management team which also includes

the Deputy Chief Executive; Chief Financial

Ofcer; the Director of Policy and Public Affairs;

and Chief Executive, IOP Publishing Limited.

All members of the senior management team

areremunerated by the Institute ofPhysics

with the exception of the Chief Executive

ofIOPPublishing Limited.

In addition to the members of the IOP’s

senior management team, remunerated key

management personnel comprise:

IOP Publishing Limited

Commercial Director

Finance Director

Technology Director

Publishing Director

The pay and remuneration of the group senior

management team is set and monitored

on behalf of Council by the Remuneration

Committee. The Committee comprises the

President, President-elect, Honorary Secretary

and Honorary Treasurer, and is supported by

several separately appointed external advisors.

The Committee commissions, each year,

relevantexternal benchmarking information

fromboth the publishing and charity sector

to support its decision-making, and when

necessary takes additional advice from

specialist organisations.

The total compensation paid to key management

personnel for services provided to the group

was £1,732k (2019: £1,743k). This includes all

remuneration, salary, benets, bonuses and

commission, employer’s pension contributions,

employer’s national insurance contributions and

any compensation payments made.

11. Physics World

During the year the IOP contributed £266k

(2019: £266k) to IOP Publishing Limited towards

the cost of copies of Physics World supplied to

members, and £40k (2019: £68k) towards the

cost of copies of Physics Education supplied to

the IOP’s afliated schools programme.

12. Taxation

As a registered charity, the IOP is potentially

exempt from taxation of its income and

gains received within categories covered

by Chapter 3 Part 11 of the Corporation Tax

Act 2010 orSection 256 of the Taxation of

Chargeable GainsAct 1992, to the extent that

such incomeor gains are applied exclusively

tocharitable purposes.

The subsidiary companies make qualifying

donations of taxable prot to the Institute

ofPhysics.

13. Irrecoverable VAT

There is a group VAT registration for the Institute

of Physics and its UK subsidiaries. The VAT group

is partly exempt and, because of this, there are

restrictions on the amount of VAT recoverable.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 54

14. Intangible assets

Institute of Physics – Group Software Goodwill on

consolidation

Trademarks Assets in

course of

construction

Total

£’000 £’000 £’000 £’000 £’000

Cost or valuation

At 1 January 2020 10,293 126 180 776 11,375

Additions 1,957 – 37 – 1,994

Transfer from assets in course

of construction

164 – – (164) –

At 31 December 2020 12,414 126 217 612 13,369

Accumulated amortisation

At 1 January 2020 (7,856) (75) (72) – (8,003)

Provision for the year (1,378) (51) (43) – (1,472)

At 31 December 2020 (9,234) (126) (115) – (9,475)

Net book value

At 31 December 2020 3,180 – 102 612 3,894

At 31December 2019 2,437 51 108 776 3,372

Assets in course of construction

Assets in course of construction relate to elements of the implementation of new software systems

which are ongoing. These assets are not being depreciated. These assets will begin to be depreciated

upon being brought into use.

Intangible assets – Charity

The charity does not hold any intangible assets (2019: £nil).

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 55

15. Tangible assets

Institute of Physics – Group Unoccupied

property

Freehold

property

Short

leasehold

property

Fixtures and

ttings

Total

£’000 £’000 £’000 £’000 £’000

Cost

At 1 January 2020 2,617 29,781 2,431 4,191 39,020

Additions 46 4,187 – 238 4,471

Disposals – – – (72) (72)

At 31 December 2020 2,663 33,968 2,431 4,357 43,419

Accumulated depreciation

At 1 January 2020 – (1,396) (2,124) (3,122) (6,642)

Charge for the year – (1,233) (238) (492) (1,963)

Disposals – – – 71 71

At 31 December 2020 – (2,629) (2,362) (3,543) (8,534)

Net book value

At 31 December 2020 2,663 31,339 69 814 34,885

At 31December 2019 2,617 28,385 307 1,069 32,378

Institute of Physics – Charity Unoccupied

property

Freehold

property

Short

leasehold

property

Fixtures and

equipment

Total

£’000 £’000 £’000 £’000 £’000

Cost

At 1 January 2020 2,617 29,781 2,362 222 34,982

Additions 46 4,187 – 41 4,274

At 31 December 2020 2,663 33,968 2,362 263 39,256

Accumulated depreciation

At 1 January 2020 – (1,396) (2,073) (84) (3,553)

Charge for the year – (1,233) (236) (49) (1,518)

At 31 December 2020 – (2,629) (2,309) (133) (5,071)

Net book value

At 31 December 2020 2,663 31,339 53 130 34,185

At 31December 2019 2,617 28,385 289 138 31,429

Included in freehold property is a new property that is not yet in use due to the COVID-19 pandemic.

Theproperty is therefore not yet being depreciated. There was no equivalent property in 2019.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 56

16. Investments in subsidiary undertakings

Institute of Physics – Charity Subsidiary undertakings

£’000

Cost and net book value

At 1 January 2020 and 31 December 2020 3,001

The IOP’s subsidiary undertakings at 31 December 2020 were as follows:

Name Country of

incorporation/

registration

Class of

shares held

Percentage

held

Nature of

business

Year end

Subsidiary undertakings

IOP Publishing Limited UK Ordinary 100% Publishing 31 Dec 2020

IOP Enterprises Limited UK Ordinary 100% Non trading 31 Dec 2020

IOP Educational

PublishingLimited

UK Ordinary

10 0 % * Dormant 31 Dec 2020

IOP Publishing Inc. USA Ordinary 100% Publishing 31 Dec 2020

IOP Business Publishing Inc. USA Ordinary

10 0 % ^ Publishing 31 Dec 2020

IOP Publishing Consultants

(Beijing) Co Limited

China Ordinary

10 0 % * Publishing

consulting

31 Dec 2020

Turpion Limited UK Ordinary

10 0 % * Publishing 31 Dec 2020

Turpion–Moscow Limited Russia Ordinary

10 0 % + Publishing 31 Dec 2020

IOP Marketing and Promotion

Services Private Limited

India Ordinary

10 0 % ¬ Publishing 31 Mar 2021

* The investments in IOP Educational Publishing Limited, IOP Publishing Consultants (Beijing) Co Limited

and Turpion Limited are held directly by IOP Publishing Limited.

^ The investment in IOP Business Publishing Inc. is held directly by IOP Publishing Inc.

+ The investment in Turpion–Moscow Limited is held directly by Turpion Limited.

¬ The investment in IOP Marketing and Promotion Services Private Limited is 0.01% owned by IOP

and99.99% by IOPPublishingLimited.

Address of IOP Publishing Limited is Temple Circus House, Temple Way, Bristol BS1 6HG.

Address of IOP Enterprises Limited is 37 Caledonian Road, London N1 9BU.

Address of IOP Educational Publishing Limited is Temple Circus House, Temple Way, Bristol BS1 6HG.

Address of IOP Publishing Inc. is 190 N. Independence Mall West Suite 601 Philadelphia, PA 19106, USA.

Address of IOP Business Publishing Inc. is 190 N. Independence Mall West Suite 601 Philadelphia, PA

19106, USA.

Address of IOP Publishing Consultants (Beijing) Co Limited is Room 608, Building A, Raycom Info Tech

Park, No.2 Kexueyuan South Road, Beijing China 100190.

Address of Turpion Limited is Temple Circus House, Temple Way, Bristol BS1 6HG.

Address of Turpion–Moscow Limited is MIAN, 8 Gubkina Street, Room 915, Moscow 119991, Russia.

Address of IOP Marketing and Promotion Services Private Limited is SF-6, Golden Enclave, 184 PH Road,

Chennai, India.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 57

16. Investments in subsidiary undertakings (continued)

Details of the net assets, turnover, expenditure and prot for the year of IOP Publishing Limited, IOP

Enterprises Limited, IOP Publishing Inc., IOP Business Publishing Inc., IOP Publishing Consultants

(Beijing) Co Limited, Turpion Limited and IOP Marketing and Promotion Services Private Limited are

asfollows:

Company

number

Net assets/

(liabilities)

Turnover Expenditure Prot

2020 2020 2020 2020

£’000 £’000 £’000 £’000

IOP Publishing Limited 00467514 20,760 70,434 (49,650) 20,784

IOP Enterprises Limited 03471563 4 – – –

IOP Publishing Inc. 26–2659520 1,468 4,251 (3,679) 572

IOP Business Publishing Inc. 26–2301131 (912) 218 (213) 4

IOP Publishing Consultants

(Beijing) Co Limited

No.05292 231 1,078 (1,045) 33

Turpion Limited 02463452 341 1,975 (1,883) 92

IOP Marketing and Promotion

Services Private Limited

U74999TN201

6F TC103739

72 250 (228) 22

17. Investments

Group and charity 2020 2019

£’000 £’000

Market value at beginning of the year 21,799 20,609

Purchases in year 7,221 6,966

Disposal proceeds in year (7,221) (6,966)

Realised gains 27 172

Unrealised gains 1,127 1,018

Market value at end of the year 22,953 21,799

Historical cost 21,739 21,712

No investment management cost was incurred in 2020 or 2019.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 58

17. Investments (continued)

The analysis of investments by class is as follows:

Group and charity 2020 2019

£’000 £’000

Vanguard FTSE Global All Cap Index Fund 9,425 6,961

BNY Mellon Real Return Fund Newton Institutional 6,097 –

CCLA COIF Charities Property Fund 4,468 5,220

Invesco Global Targeted Returns Fund (UK) 2,963 9,618

Market value of investments 22,953 21,799

18. Debtors

Group Group Charity Charity

2020 2019 2020 2019

£’000 £’000 £’000 £’000

Trade debtors 12,364 5,924 4 31

Other debtors 982 1,215 749 683

Prepayments and accrued income 3,231 10,522 661 588

Total 16,577 17,661 1,414 1,302

An impairment loss of £105k (2019: £35k) was recognised in the consolidated Statement of Financial

Activities for the year in respect of bad and doubtful trade debtors. A write back of £71k for 2020 was

recognised in the Charity Statement of Financial Activities for the year in respect of bad and doubtful

trade debtors (2019: impairment loss of £32k).

Included within Other debtors is an amount of £48k (2019: £209k) relating to recoverable Indian

withholding tax that is expected to fall due for payment in greater than one year.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 59

19. Creditors: amounts falling due within one year

Group Group Charity Charity

2020 2019 2020 2019

£’000 £’000 £’000 £’000

Trade creditors 1,973 1,064 515 384

Amounts owed to group undertakings – – 675 14,928

Other creditors 5,736 5,298 119 274

Other taxes and social security 178 334 178 –

Accruals 4,505 5,193 321 823

Deferred income 15,755 13,748 441 890

Total 28,147 25,637 2,249 17,299

Deferred income represents income received in advance:

Group Group Charity Charity

2020 2019 2020 2019

£’000 £’000 £’000 £’000

Journals subscriptions 14,374 12,770 – –

Membership income 191 387 191 387

Other 1,190 591 250 503

Total 15,755 13,748 441 890

Amounts due to group undertakings are interest free and repayable on demand.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 60

20. Financial instruments

The group’s and charity’s nancial instruments may be analysed as follows:

Group Group Charity Charity

2020 2019 2020 2019

£’000 £’000 £’000 £’000

Financial assets

Financial assets measured at

fairvaluethrough prot or loss

22,953 21,799 22,953 21,799

Financial assets measured

atamortisedcost

42,684 34,001 1,626 10,986

Financial liabilities

Financial liabilities measured

atamortised cost

(12,214) (11,555) (1,630) (16,409)

Financial assets measured at fair value through prot or loss comprise xed asset investments

inatrading portfolio of listed company shares.

Financial assets measured at amortised cost comprise trade debtors, other debtors, amounts owed

bygroup undertakings, current asset investments and cash at bank.

Financial liabilities measured at amortised cost comprise trade creditors, other creditors, accruals

andamounts owed to group undertakings.

21. Provisions for liabilities

Group Group Charity Charity

2020 2019 2020 2019

£’000 £’000 £’000 £’000

Dilapidations provision 806 806 806 806

Included within provisions is a provision of £806k (2019: £806k) for costs relating to the exit of

leasehold premises which are not expected to crystalise before Q3 2021. The amount payable will

beagreed through future negotiation at such point that an exit occurs.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 61

22. Movement on reserves

Institute of Physics – Group General fund Restricted funds Pension decit Total

£’000 £’000 £’000 £’000

At 1 January 2020 64,530 3,355 (3,322) 64,563

Net income /(expenditure) 10,115 (52) 941 11,004

Exchange adjustments 45 – – 45

Actuarial losses – – (8,502) (8,502)

Balances carried forward

as at 31December 2020

74,690 3,303 (10,883) 67,110

Institute of Physics – Charity General fund Restricted funds Pension decit Total

£’000 £’000 £’000 £’000

At 1 January 2020 46,121 3,355 (3,322) 46,154

Net income /(expenditure) 9,653 (52) 941 10,542

Actuarial losses – – (8,502) (8,502)

Balances carried forward

as at 31 December 2020

55,774 3,303 (10,883) 48,194

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 62

22. Movement on reserves (continued)

Group and charity Prize funds Other funds Total

Restricted funds £’000 £’000 £’000

Balance at 1 January 2020 52 3,303 3,355

Incoming resources – 380 380

Resources expended (2) (430) (432)

Balance at 31 December 2020 50 3,253 3,303

Restricted funds are h

eld by the IOP and were given to the IOP to spend towards specic projects and

purposes. Prize funds are held by the IOP to give out as awards to individuals for theirexceptional

contribution towards physics. Other funds are to be spent on specific projects.

Analysis of Net Assets by Fund

Institute of Physics – Group General fund Restricted funds Pension decit Total

£’000 £’000 £’000 £’000

Intangible Fixed Assets 3,894 – – 3,894

Tangible Fixed Assets 34,885 – – 34,885

Investments 22,953 – – 22,953

Current Assets 41,911 3,303 – 45,214

Current Liabilities (28,147) – – (28,147)

Non-Current Liabilities (806) – (10,883) (11,689)

Balances carried forward 74,690 3,303 (10,883) 67,110

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 63

Notes forming part

of the nancial statements for the year ended 31 December 2020 (continued)

23. Pensions

The Group operates three pension schemes.

Dened benet pension scheme

The Institute of Physics Retirement Benets Plan 1975 was closed to new members on

31 December 2001. The IOP continues to support the scheme for those who were members

ontheeffective date ofclosure.

The Dened Benets scheme is overseen by its own independent Trustee Board and supported by the

scheme actuaries XPS Pensions. The chair is a pension specialist and the trustee group has both employee

and employer representatives on it. The Pension Trustees and the IOP have set out a jointly agreed

Integrated Risk Management strategy which has a target of bringing the scheme rstly out of decit by

2025 and then to self-sufficiency by 2029. The scheme is assessed as having a strong employer covenant.

A group personal pension scheme was established to replace the defined benefit scheme with effect

from 1 January 2002. This scheme closed to new members on 31 January 2014 and a new Group

personal pension scheme was established from 1 February 2014. The IOP has also designated

astakeholder pension scheme in compliance with the Pensions Act 1995.

The most recent FRS 102 valuation of the Institute of Physics Retirement Benets Plan 1975 dated

31 December 2020 showed that the value of the scheme’s assets as at that date was £108,739k

(2019: £97,365k) and that the actuarial value of those assets represented 91% (2019: 96%) of the

benefits that had accrued to members, after allowing for expected future increases in earnings. No

changes to the funding arrangements of the scheme are considered to be required as a result of the most

recent FRS 102 valuation of the scheme.

The scheme published its triennial revaluation of 31 December 2019 in 2020. The triennial valuation,

updated to the end of 2020, showed a deficit of £7.5m due to a difference in methodology.

The principal actuarial assumptions used by the actuary at the Balance Sheet date were:

2020 2019

% %

Discount rate 1.35 2.10

Aggregate long-term expected rate of return on assets (net of expenses)

Ination (RPI) 2.95 3.05

Ination (CPI) 2.30 2.15

Future increases in deferred pensions

Rate of increase in salaries 2.95 3.05

Rate of increase to pensions in payment:

Pre 2001 pension 5.00 5.00

2001–2006 pension 2.95 3.05

Post 2006 pension 2.10 2.05

Mortality assumptions: Years Years

Life expectancy of male aged 65 now 22.3 22.0

Life expectancy of male aged 65 in 20 years 23.6 23.3

Life expectancy of female aged 65 now 24.6 24.0

Life expectancy of female aged 65 in 20 years 26.0 25.5

IOP Annual Report 2020 64

23. Pensions (continued)

Cash commutation:

• 2020: Members take 75% of their max allowable pension commencement lump sumon current terms

• 2019: Members take 75% of their max allowable pension commencement lump sumon current terms

Reconciliation of fair value of plan liabilities:

2020 2019

£’000 £’000

At the beginning of the year 100,687 89,780

Interest cost 2,086 2,576

Remeasurement losses/(gains)

Actuarial losses 19,568 10,348

Benets paid (2,719) (2,017)

At the end of the year 119,622 100,687

Changes in the fair value of plan assets:

2020 2019

£’000 £’000

At the beginning of the year 97,365 84,425

Interest income 2,027 2,437

Remeasurement gains/(losses):

Return on scheme assets excluding interest 11,066 11,452

Contributions by employer 1,000 1,068

Benets paid including expenses (2,719) (2,017)

At the end of the year 108,739 97,365

Actual return on plan assets 13,093 13,889

2020 2019

£’000 £’000

Fair value of plan assets 108,739 97,365

Actuarial value of plan liabilities (119,622) (100,687)

Net pension scheme liability (10,883) (3,322)

Group and charity 2020 2019

£’000 £’000

Pension liability recognised on the balance sheet 10,883 3,322

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 65

23. Pensions (continued)

Amounts recognised in prot or loss are as follows:

Group and charity 2020 2019

£’000 £’000

Net interest cost 59 139

Total 59 139

Analysis of actuarial (loss)/gain recognised within the Statement of Financial Activities

gainsandlossescategory

Group and charity 2020 2019

£’000 £’000

Actual return less interest income included in net interest income 11,066 11,452

Changes in assumptions underlying the present value

of the scheme liabilities

(19,568) (10,348)

Actuarial (loss) /gain on dened benet pension scheme (8,502) 1,104

Composition of plan assets

2020 2019

£’000 £’000

Equities 19,913 18,739

Diversied growth funds 34,052 33,511

Annuities 9,110 8,957

Liability Driven Investment funds 35,839 26,897

Partners Fund 9,930 9,178

Cash (105) 83

Total plan assets 108,739 97,365

Dened contribution pension schemes

The amount recognised in the Statement of Financial Activities as an expense in relation to the group’s

dened contribution pension schemes is £2,258k (2019: £2,220k). There was no outstanding payable

tothe schemes at the year end of 2020 and 2019.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 66

24. Analysis of changes in net funds

2020 2019

£’000 £’000

Decrease in cash and cash equivalents 9,474 4,115

Exchange translation 45 (130)

Movement in net funds in the year 9,519 3,985

Net funds brought forward 19,118 15,133

Net funds carried forward 28,637 19,118

25. Commitments under operating leases

Group

The group has minimum lease payments under non-cancellable operating leases as set out below:

Land and buildings Land and buildings

2020 2019

£’000 £’000

Not later than 1 year 727 1,087

Later than 1 year and not later than 5 years 347 661

Later than 5 years – 21

Total 1,074 1,769

Charity

The charity has minimum lease payments under non-cancellable operating leases as set out below:

Land and buildings Land and buildings

2020 2019

£’000 £’000

Not later than 1 year 564 676

Later than 1 year and not later than 5 years – 133

Total 564 809

The Temple Circus lease, which expires in 2021, is being renegotiated with a view to extension.

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 67

26. Amounts receivable under operating leases

The charity has minimum lease payments receivable under non-cancellable operating leases

as set out below:

Land and buildings Land and buildings

2020 2019

£’000 £’000

Not later than 1 year 704 845

Later than 1 year and not later than 5 years – 167

Total 704 1,012

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 68

27. Related parties

The transactions noted

below are all reported due to the individuals being trustees, directors or key

management personnel. The transactions were entered into by the organisations listed below:

Individual Related

organisation

Role within related

organisation

Description

oftransaction

Amount (£)

Sales by IOPP

Amount (£)

outstanding

at year end

Martin Freer University of

Birmingham

Director of the Birmingham

Energy Institute

Article charges

&subscriptions

63,039 1,860

Tariq Ali Deputy Pro-Vice Chancellor Advertising 3,895 3,480

Brian Fulton University

ofYork

Dean of faculty of

Sciences&member

ofUniversity

Executive Board

Article charges,

ebooks &

subscriptions

62,625

–

Advertising 1,495 –

Jim Al-Khalili University

ofSurrey

Distinguished Chair Article charges

&subscriptions

45,099 51,941

Advertising 295 –

Wendy Flavell University of

Manchester

Vice Dean for Research

in Faculty of Science

and Engineering and

Deputy Headof School

inDepartment of Physics

andAstronomy

Article charges

offsetting

66,149 80,523

Alix Pryde Queen Mary

University

ofLondon

Council Member Article charges 3,192 –

Martin

Hendry

University

ofGlasgow

Head of Physics

andAstronomy

Article charges

&subscriptions

48,842

–

Sheila Rowan Director of Institute for

Gravitational Research

Claudia

Eberlein

Loughborough

University

Dean of Science, Professor

of Theoretical Physics &

Member of Council

Article charges 1,550 –

Tariq Ali Member of the Board –

Industrial Policy Research

Centre UK at University

ofLoug hbor oug h / MT C

Mark Telling Science and

Technology

Facilities

Council (STFC)

Associate Director Article charges 750 –

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

IOP Annual Report 2020 69

27. Related parties (continued)

Individual Related organisation Role within related

organisation

Description of

transaction

Amount (£)

Purchases by IOP

Martin Freer University of

Birmingham

Director of the

Birmingham Energy

Institute

Grants & scholarship

ponsorship

23,844

Tariq Ali Deputy Pro-Vice

Chancellor

Brian Fulton University of York Dean of faculty of

Sciences & member

of University Executive

Board

Conference support &

exhibition costs

19,000

Paul Hardaker Sense about Science Trustee IOP annual

partnership grant –

not involved in any

decision making

related to the Sense

about Science

Partnership Grant

16,100

Claudia Eberlein Loughborough

University

Dean of Science,

Professor of

Theoretical Physics &

Member of Council

Workshop & lecture

programmes

1,583

Tariq Ali Member of the Board–

Industrial Policy

Research Centre

UK at University of

Loughborough/ MTC

Martin Hendry University of Glasgow Head of Physics and

Astronomy

Grants & bursaries 328

Sheila Rowan Director of Institute

for Gravitational

Research

Individual Related organisation Role within related

organisation

Description of

transaction

Amount (£)

Invoiced by IOP

Mark Telling Science and Technology

Facilities Council (STFC)

Associate Director Project Income 20,000

Catering income 487

Notes forming part of the financial statements for the year ended 31 December 2020 (continued)

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The Institute is a charity registered

inEngland and Wales (no. 293851)

and Scotland (no. SC040092).

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