ANNUAL REPORT2013

REPORT OF THE BOARD OF TRUSTEES

Annual report.indd 1 02/05/2014 11:09

2014

Annual Report

20142

THE CHARTERED INSTITUTE OF PLUMBING & HEATING ENGINEERINGREPORT OF THE TRUSTEESFOR THE YEAR ENDING 31ST DECEMBER 2013

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing documentThe Chartered Institute of Plumbing & Heating Engineering is a company incorporated by Royal Charter, granted on 12th February 2008. It is a registered charity, obtaining charitable status on 16th June 2008. The Institute is governed by its Royal Charter and Bye-laws.

Recruitment and appointment of new TrusteesApplications for Trusteeship are sought by advertisement.

Induction and training of new TrusteesAfter appointment an induction is arranged for new Trustees. Trustees serve up to a three year period and may be re-elected for a further three year period. The Trustees meet at least four times a year to review the strategy and performance and to set the operating plans and budgets.

Organisational structureThere are committees covering membership and professional standards and technical services. A Chief Executive is appointed by the Trustees to manage the day-to-day operations of the Institute.

Related partiesThe Institute is the registered owner of 100% of the issued capital of Plumbing Promotions Limited, which has been incorporated to carry out commercial activities relating to the promotion of exhibitions and similar activities. The Institute is also the registered owner of 100% of the issued share capital of GreenPlumb Limited and SafePlumb Limited, both of which have remained dormant since their respective incorporation. The ownership of the above companies was transferred to The Chartered Institute of Plumbing & Heating Engineering on 1st July 2008.

Risk managementThe Trustees have introduced a formal risk management process to assess business risks and implement risk management strategies. The Trustees are pleased to report that the charity’s internal fi nancial controls, in particular, conform to guidelines issued by the Charity Commission. The Trustees are fully cognisant of their responsibility to evaluate and manage business risk which they classifi ed as:

a. Governance and Managementb. Operational Risksc. Financial Riskd. Environmental and External Factorse. Compliancef. Other Risks not classifi able under the above headings.

The Executive team discuss and rate business risks as they are identifi ed. On-going monitoring and updates on risk management is undertaken through reports provided by the Chief Executive Offi cer.

OBJECTIVES AND ACTIVITIES

Mission statement and objectivesThe Mission of the CIPHE is to operate as an independent technical and professional focal point, and be a catalyst for the plumbing and heating industry by providing technical and professional standards, expertise, education and technical innovation to the operatives within its scope.

The Vision of the CIPHE is to create technical excellence through which the public will receive the benefi t of a protected environment and enhanced sustainability together with improved safety and health through the provision of correctly installed, commissioned, maintained and decommissioned plumbing and heating systems.

Strategic PlanThe CIPHE’s core objectives are outlined in our Strategic Plan, which defi nes the main purpose of the organisation and our strategic objectives. It provides a framework for prioritising work and a focus for staff and volunteers alike to ensure that all of our activities support our core purpose and objectives. During 2013 and following consultation with members, the defi nition of ‘Plumbing and Heating’ was revised and posted to the website. In maintaining the development of its ongoing strategy, the Board instigated a long-term evaluation of challenges and opportunities spanning the next twenty years.

The Trustees present their report with the fi nancial statements of the charity for the year ending 31st December 2013. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) ‘Accounting and Reporting by Charities’ issued in March 2005.

REFERENCE AND ADMINISTRATIVE DETAILS

Registered Company numberRC000822 (England and Wales)

Registered Charity number1124517

Registered offi ce64 Station LaneHornchurchEssex RM12 6NB

TrusteesProf. R. CartwrightJ.H. Mayfi eld – Honorary TreasurerM. Rooze L. Gold C. Stainer A. G. Kite – re-appointed 22.6.13L. Davies – ceased 22.6.13R. Berry – appointed 22.6.13

Honorary Company SecretaryM. Rooze

PresidentsR. Berry CompCIPHE – ceased 22.6.13Dr. S. Ingle IEng FCIPHE RP – appointed 22.6.13

AuditorsCBHC LLPChartered AccountantsRiverside House, 1 - 5 Como StreetRomfordEssex RM7 7DN

SolicitorsPenningtons Solicitors LLPda Vinci House,Basing ViewBasingstokeHampshire RG21 4EQ

Bankers Barclays Bank PLCKnightsbridge Business CentrePO Box 32014London NW1 2ZG

Annual report.indd 2 02/05/2014 11:09

Annual Report

2014 3

ACHIEVEMENT AND PERFORMANCE

Public Safety & HealthPublic benefi t is derived in part from all the signifi cant activities but most particularly in raising the safety, health and environmental aspects of plumbing and heating engineering in the perception of the public. The activities carried out by the CIPHE during the year in pursuit of its objectives were as follows:

WaterSafeThe CIPHE is a founder Director of WaterSafe which unites the seven existing Approved Contractors’ Schemes under one umbrella brand. The other partners comprise: The Water Industry Approved Plumbers’ Scheme (WIAPS), Association of Plumbing and Heating Contractors (APHC), Scottish and Northern Ireland Plumbing Employers’ Federation (SNIPEF), Anglian Water’s A Plus, Thames Water’s TAPS and Severn Trent’s WaterMark scheme. The CIPHE was well represented at the public launch on 8th October, which included presentations from the CEO and Colin Stainer. The CEO also headed up a successful radio campaign with TV consumer champion Alice Beer, during which16 live and recorded interviews were carried out, reaching 149 radio stations.

Register of PlumbersThe Register was established in 1886 by the Worshipful Company of Plumbers to help protect public health and safety and to promote the competence and conduct of good plumbers.

In 1909 the Company handed over day-to-day management of its Register to the National Council for the Registration of Plumbers which, in 1953, was renamed the Registered Plumbers Association.

When the Association amalgamated with the Institute of Plumbing in 1970, the Worshipful Company relinquished the Register and award of the designation “Registered Plumber” to the new Institute.

The Register of Plumbers is kept in the Membership Department and is available for inspection by any member of the public during offi ce hours.

Register of Heating ProfessionalsSince its launch in January 2010, 562 members have been entered on to the Register of Heating Professionals.

Registration AuthorityInvestigation Panel The Panel have investigated in excess of 85 complaints from the public, with 8 cases proceeding to the Disciplinary Committee.

Disciplinary CommitteeThe Committee have discussed 8 complaints from members of the public since January. Six members have been removed for failing to adhere to the Code of Professional Standards.

Policy & Position StatementsCopies of two policy & position statements (PPS) were produced and distributed to Government offi cials and industry organisations during the year. The paper covering the CIPHE’s views on the Green Deal was passed to DECC and referred to during a meeting the CEO attended with representatives of the Construction Industry Council. The Board remains sceptical about this Government initiative which has failed to attract suffi cient consumer support. With regards to the Education PPS, the CIPHE, through its Education & Training Group, recommends a minimum level 3 NVQ qualifi cation for the plumbing industry, which is akin to the agreement in Scotland.

Gas Safety WeekDuring September the CIPHE added its support once again to the GAS SAFETY week. In raising awareness of gas safety in the home, the theme ‘Take care, be Gas Safe’ was promoted.

Use Water WiselyFor the past few years the strap line ‘Use water wisely, save water safely’ has featured on the cover of most editions of p&he journal. While there have been a few articles explicitly dealing with the topic, it has been used more as a focus for articles and topics, rather than a specifi c campaign. Although the strap line will cease to be used in 2014, the issues of saving water in sensible and safe ways will continue through various articles, presentations and publications. In the past there have been pressures put on people to use so little water, that lifestyles had to change to an extent that safe use was being compromised. For example, where ultra low-fl ow taps were specifi ed for kitchen sink and basin taps, people would carry saucepans and kettles to a bath to obtain unrestricted fl ows to fi ll their containers quickly. Revisions to the water requirements of the Code for Sustainable Homes eventually enabled higher fl ows to be specifi ed for kitchen taps, which resulted in water effi cient use, without having to carry water containers excessive distances. A common water saving issue that still continues to impact safety is the indiscriminate fi tting of tap outlet aeration and fl ow limiting fi ttings. Such fi ttings often reduce the protective air-gap for a basin, increasing the possibility of backfl ow and subsequent mains contamination. No water saving device or practice should lead to contravention of the Water Fittings Regulations or Byelaws.

The aims of the CIPHE were reviewed in 2012 and summarised in the above graphic:

Annual report.indd 3 02/05/2014 11:28

201420144

Bathroom Manufacturer’s Association Water Effi ciency Labelling SchemeThe CIPHE accepted an invitation from the BMA in support of its Water Effi ciency Labelling scheme. The scheme will use the existing Water Label, which follows a similar approach to the Energy Effi ciency Label found on white goods, such as fridges and freezers. The label will be used on all bathroom fi ttings on sale – currently, the label is not used widely and is being promoted by manufacturers and merchants. This means the label will be added to a much broader range of products. The data on water use will also be added at point-of-sale and on web sites over the next 12 months, so that information is readily available to consumers.

World Plumbing CouncilDuring the Triennial meeting of the World Plumbing Council, the CEO was elected to its Executive Board for a three year term and has also accepted the role of Chairman of the Research & Development Committee. His appointment aligns well with the World Plumbing Council’s mission which is to promote the role of plumbing in improving public health and safeguarding the environment, by uniting the world plumbing industry, for the benefi t of all.

Lord Mayor’s ShowIn partnership with the Worshipful Company of Plumbers (WCP) the CIPHE supported a fl oat in November’s Lord Mayor’s Show. Alderman Fiona Woolf CBE, the new Lord Mayor of the City of London, is an Assistant to the Court of the WCP. More than 150 groups from all over the world took part in one of the oldest street processions, travelling more than three miles between Bank and Aldwych to mark the inauguration of the new Lord Mayor and was witnessed by half a million spectators.

RESEARCH & TECHNICAL

Technical CommitteeThe Technical Committee is chaired by Dr. Celia Way and met three times this year. One of the outputs from the TC has been the formation of the LUNA project group. This includes representatives from the Technical Committee. The aim is to review the current methods of hot and cold water supply pipe sizing and, through appropriate fi eld measurements and analysis, develop a new sizing methodology that will result in more effi cient water systems.

Safe Water GroupThis year the Group issued its fi rst publications. The Technical Awareness Paper (TAP) series includes TAP 2 – How to take care of hot and cold water supply systems in unoccupied homes and TAP 3 – Position Statement on withdrawal of copper as a biocide for water supply systems. Work has continued on developing a replacement for the existing ‘Legionnaire’s Disease : Good Practice Guide for Plumbers’ and other documents to help members and the public.

European ProjectsALERT – This project, to develop a portable, real time asbestos detector for tradespersons, concluded in August 2013. The three year project was very successful in meeting the various technical milestones, together with the fi eld trials using the prototype detectors.

EAGLE - This project, to produce a website that can provide users with an independent evaluation of their roofs for solar, has now completed its second year and all the project milestones. Its integrated website is now ready for user trials which will take place during 2014. However, the loss of a major Spanish partner has created many administrative problems that have impacted on all the partners and necessitating a revision to the description of work.

SmartHeat – This project, to develop a retrofi table, modular, renewable heating system, ended in the summer and was considered to be successful by the EC. The results of the belated fi eld trials will be posted on the SmartHeat website as they become available.

NanoFlex – The project, designed to prove the concept of Phase Change Material (PCM) heat storage for renewable energy sources with sophisticated controls for retrofi tting in existing buildings ended in October. A delay in producing the prototype totally recyclable pipe, reduced the input that CIPHE could have in disseminating the results.

Technical LiteratureThe p&he journal received regular input from the CIPHE Technical Department and other external authors. In addition, there has been a new series of publications launched on the website for free download by members. The Technical Awareness Paper (TAP) series started with TAP 1 – Carbon Monoxide Alarms, produced in association with the Council of Gas Detection and Environmental Monitoring (CoGDEM). Other TAPs are reported under the Safe Water Group.

Consultation document responsesDuring the year, the CIPHE responded on the following consultation documents :

Future of Apprenticeships, Richard Review (Part 2), Domestic Fire Safety (Wales) Measure 2011, Environment Agency – River Basin Consultation, DEFRA Future Management of Private Water Supply Pipes, IGEM-UP-10-ED 4, IGEM-UP-19-ED 4, Asbestos ACOPs, WRAS National Enforcement Policy, Apprenticeships’ Funding for England, Sustainable Homes – Licensees and Assessors, and IGEM-UP-5-ED 2.

Annual Report

Annual report.indd 4 02/05/2014 11:29

2014 5

EDUCATION & TRAINING

CPD/CPD accreditationThe CIPHE provides members with Continuing Professional Development articles in p&he journals and these articles continue to grow in popularity. The CIPHE also accredits training courses.

Education & Training GroupThe Education & Training Group continues to promote greater standards in education through a review of the National Occupational Standards, consultation documents on the future of apprenticeships and through direct dialogue with awarding bodies. The CIPHE publishes the ETM magazine which is sent direct to colleges and training centres and is available electronically on the CIPHE website. Co-operation with researchers investigating ‘Rogue Trainers’ has sadly notresulted in national exposure yet, mainly due to legal implications. The CIPHE continues to support career pathways for those wishing to advance beyond level 3 NVQ up to degree level.

Leadwork Conservation GroupThe offi cial launch of the Group took place on 15th May at the House of Lords. Baroness Sharp of Guildford hosted the event and the CEO spoke about the need for training the next generation of lead specialists. It is worrying that leadwork has been dropped from the curriculum for plumbing students. This was one way of encouraging youngsters to learn traditional skills that could progress to a career as a lead specialist. The Leadwork Conservation Network Group will liaise with recognised conservation groups, industry organisations and government departments, with the aim to set a professional conservation standard. A CPD training programme for architects, surveyors, conservation offi cers, specifi ers and practitioners engaged with the plumbing and leadwork industry, will be launched during 2014.

Worshipful Company of Plumbers The CIPHE has maintained its support of the Worshipful Company of Plumbers which established the Register of Plumbers in 1886 and transferred it to the CIPHE in 1970. In addition to serving on its Technical Committee, the WCP’s awards and bursaries are promoted to CIPHE students. The current Master, Nick Gale, was National President of the CIPHE in 1997/98 and was a representative of the Review Committee in 2011/2012.

Professional Standards InspectorsThe Institute currently has 17 trained Professional Standards Inspectors (PSIs) who regularly undergo training to establish themselves with Institute procedures and industry regulations, etc. The PSIs assist both the Investigation Panel with regards to complaints and the Election & Enrolment Committee with regard to non-standard membership assessments.

MEMBERSHIP & PROMOTION

Membership and Engineering CouncilThe total paid up membership as at 31st December 2013 was 8166. 621 applications for membership had been received throughout the year. This fi gure included 556 new applications, 42 transfer applications and 23 reinstatements.

During 2013, a total of 43 new applicants were registered at EngTech level.As at the end of 2013, the Institute had 961 Engineering Technicians and 108

Incorporated Engineers.

Master Plumber Certifi cateThe World Plumbing Council (WPC) has accepted an invitation to become the fourth supporter of the Master Plumber Certifi cate programme. In the future the symbol of the WPC will appear on Certifi cates with those of City & Guilds (C&G), the Worshipful Company of Plumbers (WCP) and the CIPHE. The latter two, as founding members, will act as scrutineers on behalf of the WPC.

In February, Tallow Chandlers Hall hosted Master Certifi cate awards for construction liveries during which the Sherriff of London presented a number of certifi cates across the construction sector. There are now 170 Master Plumber Certifi cate holders, 9 Journeymen and 8 Apprentices.

Press and Public RelationsOn behalf of the Institute, Aspire Editorial PR issued 31 press releases and uploaded 52 blogs during 2013. Press releases were sent out to trade, local and national press as well as radio stations. If the Institute had paid for the coverage that it received in 2013 it would have cost a total of £54,437.25. Social Media attention for the Institute is steadily growing. In 2013 Facebook ‘likes’ increased from 78 to 275 and Twitter followers grew from 1,764 to 3,100. The Institute benefi ted from nearly four hours air-time on various radio stations.

Engineering Diversity ConcordatIn September the CIPHE signed up to the Engineering Diversity Concordat committing to address the gender, ethnicity and disability gap affecting the engineering profession. Over twenty other professional engineering institutions have pledged their allegiance to attract, recruit and retain people from increasingly diverse backgrounds into professional membership and registration.

Annual Report

Annual report.indd 5 02/05/2014 11:30

201420146

Analysis of those working across professional engineering shows that women make up 51% of the UK population but only 8% of the engineering workforce. As regards ethnicity, while 20% of UK resident graduate engineers are from black and minority ethnic backgrounds, they represent only 6% of the engineering workforce. These fi gures indicate the potential to address the skills gap of the UK’s industrial sector, which is expected to need 1.28 million science, engineering and technology professionals and technicians by 2020.

Branch Network Group & Website statsThe Branch and Network Group held a number of meetings during 2013 and conducted surveys and questionnaires to assist with the development of a specifi cation for the online network for members. A technical specifi cation was completed in 2013 which will be used to develop the online network for members in 2014.

The CIPHE website had 125,596 visits during 2013. The average visitor viewed three pages, spending approximately 2 minutes and 30 seconds on the website.

Annual General MeetingThe AGM was held on Saturday 22nd June in Cardiff. Dr. Steve Ingle was elected as National President and Kevin McCallister as Vice-President. Tony Kite was re-elected as a Corporate Member to serve on the Board of Trustees for the next 3 years.

JB Wilkinson Merit Shield Centenary AwardTo mark 100 years of the JB Wilkinson Merit Shield Award, the Newcastle and District Branch of the CIPHE organised a Centenary Dinner in October, which some 150 people attended. The evening was a fi tting tribute to John Bell Wilkinson who was renowned for his high standards of workmanship and his commitment to the training of apprentice plumbers. The Shield was presented to New College Durham and to the winning student Craig Milburn.

FINANCIAL REVIEW

Reserves policyThe Trustees regularly review the reserves of the charity to meet its fi nancial commitments and achieve its objectives. They consider that the charity had suffi cient reserves to operate for the next 12 months and into the foreseeable future.

The prime objective of the reserves policy of the Trustees is to maintain the real value of any investments of the CIPHE over the long-term by investing in a mixed portfolio, comprising, where appropriate, equities, fi xed income and cash. In particular, the Development Fund is invested with due regard to potential calls on the fund as identifi ed in the business plan.

Investment policy and objectivesThe Institute has the power to make any investment which the Trustees see fi t.

THANKS

The Institute is indebted to those of its members and others who freely gave their time and expertise for the benefi t of the CIPHE, in many different capacities in the UK and overseas. The Institute would like to thank its Industrial Associates for the support given to CIPHE projects and events, including technical presentations that take place at Branch meetings.

The Board of Trustees would like to pay tribute to all the staff for their hard work, continued loyalty and dedication and would also like to thank the Presidents who have served over the period of this report.

STATEMENT OF TRUSTEES RESPONSIBILITIES

The Trustees are responsible for preparing the fi nancial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

The Trustees are required to prepare fi nancial statements for each fi nancial year which give a true and fair view of the state of affairs of the Charity and of the incoming resources and application of resources, including the income and expenditure of the Charity for that period. In preparing those fi nancial statements, the Trustees are required to :- select suitable accounting policies and then apply them consistently;- observe the methods and principles in the Charity SORP;- make judgements and estimates that are reasonable and prudent;- prepare the fi 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 which disclose with reasonable accuracy at any time, the fi nancial position of the Charity, to enable them to ensure that the fi nancial statements comply with the requirements. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the Trustees are aware, there is no relevant information of which the Charity’s auditors are unaware, and each Trustee has taken all the steps that they ought to have taken as a Trustee, in order to make them aware of any audit information and to establish that the charitable company’s auditors are aware of that information.

Annual Report

Annual report.indd 6 02/05/2014 11:32

2014 7

AUDITORS

The auditors, CBHC LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD OF TRUSTEES:

By order of the Board of TrusteesMichael Rooze, Honorary Company Secretary

Date: 4th March 2014

SUMMARY STATEMENT OF FINANCIAL ACTIVITIESFOR THE PERIOD ENDED 31 DECEMBER 2013

2013£

2012£

Incoming Resources

Educational Magazines & Directory 53,219 63,116

Maintaining Professional Standards & Awareness 784,952 816,751

Other Income 52,302 36,087

890,473 915,954

Resources Expended

Costs of Generating Other Income 5,663 3,885

Charitable Activities 749,146 718,570

Governance Costs 46,541 45,431

801,350 767,886

Net Incoming/(Outgoing) Resources 89,123 148,068

Total Funds Brought Forward 589,347 441,279

Total Funds Carried Forward 678,470 589,347

2013£

2012£

Fixed Assets 82,759 91,542

Current Assets

Stock 8,632 10,002

Debtors 41,756 32,223

Cash at Bank 1,008,998 842,112

1,059,386 884,337

Creditors due within one year (463,675) (177,611)

Net Current Assets less Current Liabilities 678,470 798,268

Creditors due after more than one year - (208,921)

Total Net Assets 678,470 589,347

Funds 678,470 589,347

SUMMARY OF BALANCE SHEET AS AT 31 DECEMBER 2013

Annual Report

Annual report.indd 7 02/05/2014 11:33

The Chartered Institute of Plumbing and Heating Engineering64 Station Lane, Hornchurch, Essex, RM12 6NB

Email: info@ciphe.org.ukWebsite: www.ciphe.org.uk

“Public benefi t is derived in part from all the signifi cant

activities but most particularly in raising the safety, health and environmental aspects

of plumbing and heating engineering in the perception

of the public.”

Annual report.indd 8 02/05/2014 11:33