Tavistock Institute of Human Relations Annual Report, 1st October 2016 - 30th September 2017.

STRUCTURE AND FINANCE
FINANCIAL RESULTS
FOR THE YEAR 2016-17
The Institute had a challenging financial year which resulted in an operating deficit of £42,913, a
significant drop compared to the previous year (2016: £411,036). The deficit included a payment
of £265,168 for the defined benefit pension scheme. The Professional Development and Human
Relations Journal areas saw increased income, which was offset by lower Project income, as
many projects came to completion and new projects did not commence until the end of the
financial year.
The Institute’s Balance Sheet as at 30th September 2017 showed a decrease in net assets to
£722,426 (2016: £906,339) before any pension liability. This was mainly due to a decrease in
cash held in the bank by the Institute.
Statement of Operating Financial Activities (SOFA) 2017 (£) 2016 (£)
Fixed Assets 27,689 41,348
STRUCTURE AND FINANCE
Income
Expenditure
Current Assets 1,618,418 1,909,527
Liabilities 923,681 1,044,536
Net Assets (excluding pension liability) 722,426 906,339
£2,369,014 £2,411,927
£2,877,119 £2,466,083
Defined Benefit Pension Scheme Liability (4,688,000) (5,348,000)
Total Net Asset (3,965,574) (4,441,661)
Total Charity funds (3,965,574) (4,441,661)
2016-17 2015-16
The overall net movement in funds in the SOFA (below) was positive for the year as a result of
actuarial gains of £519,000 (2016: loss of £1,916,000) from the defined benefit pension scheme.
Statement of Operating Financial Activities (SOFA) 2017 (£) 2016 (£)
Income:
Charitable activities
Investments
Other
2,366,774
2,042
198
2,872,474
4,428
217
During the year the Institute agreed a revised pension recovery plan with the pension trustees
(approved by the pensions regulator), whereby the deficit will be paid within 15 years. The
Institute paid £265,168 in accordance with this plan in March 2017.
The actuarial valuation of the Tavistock Institute of Human Relations Retirements Benefit
Scheme as at 30 September 2017, for the purposes of FRS102 showed a funding deficit of
£4,688,000 (2016: £5,348,000). This improvement to the pension balance sheet was driven
principally by a more favourable discount rate (driven by higher corporate bond yields) and the
updating of the longevity assumptions, in line with the changes the trustees adopted for the
2016 actuarial valuation.
Total income 2,369,014 2,877,119
Expenditure: Charitable activities 2,411,927 2,466,083
Total expenditure 2,411,927 2,466,083
Net income/(expenditure)
before net gains/(losses) on investments
(42,913) 411,036
Actuarial gains / (losses)
on defined benefit pension schemes
519,000 (1,916,000)
Net movement in funds 476,087 (1,504,964)
Total funds brought forward (4,441,661) (2,718,898)
Total funds carried forward (3,965,574) (4,441,661)
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