The Chartered Quality Institute Annual Report 2014Registered Charity No: 259678 Registered Address: 2nd Floor North,

Chancery Exchange, 10 Furnival Street, London, EC4A 1ABwww.thecqi.org

02 | Chair’s message

04 | Changing the profession

06 | CQI & IRCA membership

08 | Learning & development

10 | Corporate & Company

12 | Community – branches & SIGs

13 | Community – top events

14 | World Quality Day

15 | IRCA Japan

16 | The big picture

18 | Messaging, influencing & marketing

20 | Quality World

22 | Standards

23 | Roadshows

24 | Our people

25 | How we operate

26 | Trustees’ report

34 | Independent auditor’s report

36 | Consolidated statement of financial activities

37 | Balance sheet

38 | Notes to the financial statements

48 | Board of Trustees & Advisory Council

49 | Senior executive staff

50 | CQI branches & boards 2014–2015

| Annual Report 2014 | 01 || 02 | Annual Report 2014 |

Contents

Chair’s message | Annual Report 2014 | 03 || 02 | Annual Report 2014 | Chair’s message

I can scarcely believe that it is a year since I wrote the last introduction to our Annual Report and it is even harder to believe that it is approaching a year since I became Chair of the CQI Board of Trustees. It has been a pivotal year.

The work of the Professional Policy Panel has now led to the development of a completely new competency definition and career path for quality professionals. I’m using the CQI’s new Competency Framework (see page 4) in my own company and I’m finding the framework of ‘leadership, governance, assurance and improvement’ really powerful when describing what quality professionals offer an organisation. This clearly resonated with business people in general, as indicated by our steadily growing base of corporate members. What we now need to focus on is building the portfolio of learning and development collateral that brings it all to life for CQI and IRCA members, and their companies.

During the past year I’ve been fortunate to have been able to spend more time on CQI activities outside of the Board of Trustees and Advisory Council. From branch and regional events, to the SIGs, activities celebrating World Quality Day 2014, and what must have been the best quality conference ever, they’ve all been thought-provoking and fun. And none would have been possible without the efforts of hundreds of committed CQI members. So, in the next 12 months, why not try an additional way of getting involved – if not at an actual event then perhaps through our online media?

2014 was a great year but there’s still a huge amount of work to do in putting quality at the heart of every organisation, such that we can all put quality problems behind us. I need the support of every one of you in making this a reality.

Estelle Clark, Chair of the Board of Trustees

Chair’s messageEstelle Clark

Estelle Clark at Lloyd’s Register, London | Photo: Chris Renton

Changing the profession | Annual Report 2014 | 05 |

In 2014 the CQI reached the first milestone in its flagship project, the launch of the CQI Competency Framework, which was designed to redefine the value, scope and role of the quality profession. The framework was driven by the CQI’s Professional Policy Panel and was the result of engagement with employers, the CQI Advisory Council, Branches and Special Interest Groups.

The Competency Framework in actionThe Competency Framework aims to demonstrate professional standards and will culminate in the release of a Competency Assessment Tool. The tool will be used to evaluate competence and priorities for the development of quality professionals in an organisation.

The framework is focused on three areas of interest – governance, assurance and improvement, and two levels of deployment – context and leadership.

Six questions correspond with the areas of interest:• Is management intent defined? • Is management intent fit

for purpose?• Is management effectively

implemented?• Does it produce the

desired outcomes?• Is there a commitment to

continuous improvement and redefining management intent?

• Is there a culture of objective evaluation?

The benefits of the frameworkCQI Head of Profession David Armstrong spoke of the positive effect the framework is having on the CQI and the profession: “The framework has succeeded in creating a visible common truth about scope and responsibility. There is now a clear articulation of the value of the quality profession for employers and society at large.

“Individuals and organisations can consider what they are good at on the product service delivery level and organisational level. Employers can use the framework to establish competency requirements and developmental programmes for staff, and individual members are able to review their own competence and plan ongoing development. The framework provides a basis for the CQI to improve its membership and CPD services.”

| 04 | Annual Report 2014 | Changing the profession

Changing the professionDavid Armstrong

What our members say

“ I am pleased the CQI Competency Framework seems to be lifting the sights of the quality profession to a level where the way of thinking is more important than tools or knowledge. We can all think in terms of governance, assurance and improvement at whatever level we operate, in whatever context we find ourselves.” Kevin Brown, MCQI CQP, Director and Principle Consultant at Q factorial Ltd

“ Implementing the framework, on a personal level, has given me a more structured approach for facing complex issues. It has also provided a platform for continual personal development in quality. The framework has highlighted opportunities to demonstrate exemplary performance in a particular specialism, without losing focus on other areas, and has provided an opportunity to deliver more context, clarity and innovative solutions to complex scenarios on a much wider scale.” Alan Ovens, PCQI, Procurement Assurance and Governance Specialist at PA Consulting Group David Armstrong

Photo: Chris Renton

In 2014 we made a number of changes to our membership offering, the most crucial being to our grade structure.

In order to align our offering with the Competency Framework and build the membership of the future, we streamlined the grade process by removing six obsolete grades. This was a vital move as it means our grade offering now better reflects the modern profession and how people’s careers evolve. Our work on our membership offering in 2014 laid the foundations for activity in 2015, including an individual membership review and a membership benefits review – for both CQI and IRCA.

For more information on CQI membership and what it includes, visit: thecqi.org/membership

For more information on how to become an IRCA auditor, and a full list of our grades and criteria, please visit: irca.org/en-gb/registration

Members have their say on ISO 9001:2015As part of our Category A liaison status with ISO Technical Committee 176 and its subcommittees, the CQI has to engage with its members on the development of important standard revisions.

In 2014 we achieved this in a number of ways. Not only did we deliver face-to-face briefings and release detailed reports on ISO 9001, but voluntary CQI representatives were instrumental in the standard’s development.

This year was the first time our members have been able to make a constructive difference to, and even influence, the quality management standard.

The CQI conducted a survey about the draft international standard (DIS) of ISO 9001:2014, to engage with members on the development of the standard in order to present feedback to the technical committee.

Speaking to Quality World in November, Mark Braham, MCQI CQP, CQI ISO 9001 Standards Panel Team Leader for ISO/TC176/WG24, said: “I would like to thank every CQI member who passionately contributed to this survey, and the CQI team and branch volunteers for supporting and arranging the seminars.

“The CQI Standards Panel helped to organise and sift through the comments, working tirelessly in their own time to ensure members’ comments were heard and that the CQI is seen as a key player in this significant change to ISO 9000 and ISO 9001.

“It’s still shocking how much quality professional opinons and beliefs vary – even with the world’s most popular international standard, ISO 9001:2008.”

ISO/TC176/WG24 is the Working Group for the Technical Committee, which supports work on the revision.

| 06 | Annual Report 2014 | Membership Membership | Annual Report 2014 | 07 |

MembershipCQI & IRCA

said IRCA registration had influenced who they have hired

registered with IRCA to gain professional recognition as a competent auditor

registered with IRCA to gain access to resources, such as technical reports and articles

said IRCA registration helped them gain work

75%

81%30%75%

Our Net Promoter Score* (NPS) moved from -17 in 2013 to +10 in 2014

total register growth

new certifications

1551,290-17 to +10

CQI Membership Survey 2014

Completed by 1,202 respondents, the survey was an opportunity for members to share their opinions

on the value of CQI membership and how we can improve.

The key findings were:

IRCA Membership Survey 2014

Completed by 1,440 respondents, the survey was a chance for IRCA to find out what its members’ needs are and to make sure that, as an organisation, we are developing in order to support

them. The key findings were:

are likely to recommend CQI membership to others

joined the CQI to evidence their professional credibility

rated the CQI for its technical knowledge and support

rated Quality World as the biggest benefit of membership

247

633458805

* Management tool that measures the willingness of members to recommend membership to others, and is therefore used to gauge overall satisfaction and loyalty.

IRCA growth by numbers

2014 was a great year for IRCA, with steady growth in

registers, new certifications and our Net Promoter Score. Here are the highlights

for the year:

IRCA Training OrganisationsIt was a year of new business for IRCA Training Organisations (TOs). 2014 saw the launch of the new IRCA Approved CPD Scheme, which was piloted by three TOs. The scheme offers TOs the opportunity to have a wide range of courses recognised by IRCA. By the end of the year we had reached 34 approved courses.

In addition to the new scheme, IRCA forged some key strategic relationships. Sanofi, a global integrated healthcare leader, came to IRCA because it needed recognition and credibility for its HSE Internal Auditor course. With an IRCA recognised auditor training course, Sanofi’s auditors can now register as OH&S or EMS Internal Auditors.

2014 also saw the MAA (the Military Aviation Authority – a part of the Ministry of Defence responsible for regulating air safety across defence) approach IRCA for recognition and credibility for two of its courses and assessors.

One course was Audit and Evaluation Skills, which is the equivalent to the IRCA Internal Auditor course. The other was the MAA Audit Practitioner Course (MAPC), which is equivalent to an Auditor/Lead Auditor course.

The MAA and IRCA are working towards the MAA Audit Practitioner Course (MAPC) becoming its first course approved in 2015. These courses will fulfil the training requirement for their personnel registering as IRCA members. These partnerships demonstrated a demand from industry to achieve public recognition for their staff’s training competence, in addition to ensuring high standards of training to meet their organisation’s needs.

| 08 | Annual Report 2014 | Learning & development Learning & development | Annual Report 2014 | 09 |

Learning & developmentTraining and Education

Facts and figuresTOs in 2014

105 total number of TOs in 2014

347certified courses

60,335 course delegates

7,180 courses presented

120+ countries where courses have been delivered

43 new courses

3 new courses in Japan

13 New TOs applied for IRCA Approval

12 TOs Approved on the new CPD scheme, with a total of 34 courses between them

EducationIt was a record-breaking year for CQI Education, with unit registrations reaching the 1,000-mark in June. That success was also reflected in the annual increase from 2013, with a 25% rise in unit registrations between 2013 and 2014.

The Certificate in Quality Management Level 3 continued to be our most popular qualification – witnessing a 35% increase in student enrolments compared to 2013, with more than 80 graduates in 2014.

Almost 90% of the respondents were satisfied or very satisfied with the CQI assignments in terms of usefulness and level of difficulty.

Our qualifications proved so popular in 2014 that in order to meet the increased demand for unit registrations we appointed five new examiners. In October, we hosted an examiners’ workshop for the new and existing examiners, designed to enable them to understand the requirements of our assessment process.

Education Manager Tayana Sana said: “It was a successful year for CQI qualifications – we saw a 25% increase in the number of exam and assignment registrations. We also showed we practice what we preach – working hard to improve quality assurance of our processes to ensure the highest standards are met at all times.”

Ofqual monitoringThe CQI awarding body had its first Ofqual monitoring visit in February 2014, which was a success. In order to maintain our Ofqual recognition as a national awarding body, the annual statement of compliance was submitted in July 2014.

The CQI awarding body was also audited by an external auditor

in December 2014 to ensure our readiness for an Ofqual statement of compliance in 2015.

The education centres’ monitoring process was reviewed and strengthened to ensure our learning providers comply with the set criteria. We also conducted monitoring visits with a number of our providers and will continue the visits in 2015.

Examiners brush up on their skills: The CQI Examiners’ Workshop was held on October 17 at the CQI’s offices in London. This was a great opportunity for the CQI’s existing and new examiners to refresh their knowledge and learn more about the assessment processes that support the delivery and award of CQI qualifications. From left to right: Andy Armitage (Principal Examiner), Paul Dobie (Principal Examiner), Tayana Sana (CQI Education Manager), David Bance (Principal Examiner), Helen Soulou (Principal Examiner), Sanjay Bhasin (Principal Examiner), Paul Browning (Principal Examiner), Elizabeth Shaw-Rowlands (Chief Examiner), and Jack Booth-Cole (CQI Education Officer).

655

864 811

1,083

1,200

600

1,000

400

800

200

0

Unit registrations 2013/2014

January 2013 January 2014June 2013 June 2014

Facts and figuresCQI Training by numbers

supervisory workshops completed for Crossrail, plus the fourth CQI/Crossrail training programme

delegates attended CQI public training courses in 2014 (up from 274 in 2013)

organisations received in-house training, from a variety of sectors including construction, environment, healthcare, telecommunications and aerospace

CQI/Costain training programme launched

1020

1

512

| 10 | Annual Report 2014 | Corporate & Company Corporate & Company | Annual Report 2014 | 11 |

What the Corporate Members say

Jason Arkell, Amec Forster Wheeler’s Head of Business Improvement and Quality Management: “It’s an excellent achievement to receive this accreditation. We’re committed to continuous improvement and look forward to building a relationship with the CQI in order to bring new ideas and initiatives to the company. We’ve already begun by using the CQI’s Competency Framework to ensure the progression of our people.”

Grant McPherson, Director Jaguar Land Rover Quality: “CQI Corporate Membership accreditation underpins our commitment to quality and reinforces our focus on putting the customer first in everything we do.”

Phil Parker, FCQI, Senior Manager – International Quality Operations at Jaguar Land Rover: “This is a positive step for our quality community and an opportunity for our people to develop and receive formal recognition for their achievements.”

Corporate & Company

For more information on the CQI’s current Corporate Partners visit: thecqi.org/membership/corporate-partners

2014 was an important year because many new organisations joined as Company Members and the CQI surpassed its income target. Work began on the transition from Company Members to Corporate Partners. The change is designed to better reflect the collaborative relationship with corporate partners. To achieve this, we aimed to partner with organisations that share our beliefs and vision for the CQI and profession. The new scheme will launch in January 2015.

First Corporate round-tableThe CQI’s Corporate Members took part in their first round-table event, on September 10 2014. With 18 attendees, the event was held at the historic Lloyd’s Register building and hosted by CQI Chair Estelle Clark.

The aim of the event was to facilitate communication and networking opportunities between leaders in quality from a cross section of different industries. At the same time, members were updated on the CQI’s vision and revisions to our products and services.

The event was the first in a regular series and brought together senior quality figures from a range of sectors, including defence and rail. Corporate Members were able to share best practice and benchmark quality activity.

£74,172 income achieved

The target was £61,000

£80,000

£70,000

£60,000

Welcoming new Corporate Members New Corporate Members joined the CQI in 2014

Facts and figures

CQI Chief Executive Simon Feary (centre) presents the team at Jaguar

Land Rover with a Corporate Member certificate

BAE Systems Australia

Thales (UK)

BAE Systems Programmes & Support

Amec Foster Wheeler PLC Jaguar Land Rover Ltd

Bombardier Transportation UK Ltd

Lockheed Martin UK Ampthill

| 12 | Annual Report 2014 | Community – Branches & SIGs Community – Top events | Annual Report 2014 | 13 |

With a comprehensive branch network in the UK, plus an overseas branch in Hong Kong, our members remain at the heart of what we do. 2014 was a great year for networking, with CQI branches holding more than 100 events, covering topics from ‘Business Improvement’ to ‘What makes a great customer experience?’.

Our branch events are crucial because they give our members the opportunity to hear about the latest developments in the industry and share best practice with their peers. Here are some of the highlights from 2014:

CQI Hong Kong taps into intellectual property eventThe CQI’s Hong Kong branch supported a major event about intellectual property (IP), which was attended by an estimated 1,600 people. HK Trade Development Council and HK SAR Government teamed up to host the Business of Intellectual Property Asia Forum, an event that discussed the latest developments in the IP world and explored business collaboration opportunities. Chair of the Hong Kong branch, Leslie Lee, MCQI CQP, said: “As quality professionals, we need to understand what the latest developments that will affect businesses are.”

CQI Manchester tour the National Cycling CentreThe CQI’s Greater Manchester branch visited the National Cycling Centre in February to learn how quality and innovation are managed

in a racing environment. Led by tour guide John Slinger, 27 members were taken on a tour of the facilities and given an insight into the heritage of the fastest track in the world. Treasurer of the Greater Manchester branch, Victor Williams, MCQI CQP, said: “It was a very successful event. Members got to witness first-hand the innovations, culture of quality, fitness for purpose and excellence of service at the facility, not only for the present day but for future development.”

CQI Special Interest Groups share their expertiseOur Special Interest Groups (SIGs) held a variety of events and seminars throughout the year in a continued effort to drive forward quality within specialised areas of interest.

The CQI’s Construction SIG teamed up with BSI to hold an event highlighting the importance of effective collaboration within the industry. An estimated 100 people attended to discuss the latest on the BS 11000 standard.

The CQI’s Defence Industry Group held an exclusive event to discuss the importance of the quality professional to organisations. Experts from BAE Systems, Oakland Consulting and other organisations, discussed how the industry could spread the message that quality is not just a small fraction of the business – it is the business. With 145 attendees, the exclusive event was regarded as a huge success.

NGN take a new direction Natalie Shoemark-Dyer (pictured above), MCQI CQP, was appointed as the new Chair of the CQI’s Next Generation Network (NGN). Natalie works for Arqiva as Mobile Infrastructure Project Programme Quality Controller – Mobile and Fixed Networks. She has brought a wealth of knowledge to her role as Chair and her appointment is an indication of the direction the NGN will be taking in 2015.

Natalie said: “It is important people know what the profession is and how it’s a fantastic way to learn about business.

“I’m planning to work with the team to develop an NGN mentoring programme and we will target the next generation at the source – schools, colleges and universities. The NGN can play a pivotal role in shaping the future of the profession.”

The NGN’s Vice Chair, Hannah Murfet, PCQI, was appointed to the role of young quality professional on the CQI Advisory Council. She is the first ‘Next Generation’ representative to join the council.

CQI Leadership Conference 2014The 2014 CQI Leadership Conference saw quality professionals come together to have their say on the topic of the day – ‘Leadership: doing the right things right’.

The annual conference (the third of its kind) was held at the King’s Fund, London, and attracted 144 attendees, firmly placing quality on the 2014 agenda. CQI Chief Executive Simon Feary opened the event, stating: “Quality professionals must act like leaders, talk like leaders and think like leaders.”

The conference featured speakers from some of the world’s largest organisations, including Jo Moran (top right), Head of Customer Service at Marks and Spencer, Mike Forde (bottom right), Former Director of Football Operations at Chelsea FC, Anthony Hilton, Financial Editor at The Evening Standard, and John Oakland, Chairman of Oakland Consulting. The speakers covered some of the biggest issues facing the industry, such as risk and reputation, repositioning the quality profession, scouting for success and enhancing the customer experience.

The keynote speeches were complemented by engaging breakout sessions on ISO 9001:2015, the essential characteristics of a good change-leader, and supply chains. Tim Coulthard, CQI Head of Communications and Marketing, chaired the event. Talking about the day, he said: “It was great to hear so

many stories and ideas on effective leadership, from a range of different industries.” For more reaction to the conference, watch our video: http://goo.gl/DMB9eU

International Convention of Students’ Quality CirclesChildren from around the world inspired the quality profession by showcasing their work at the International Convention of Students’ Quality Circles. It was the 17th annual convention of its kind but the first to be hosted in the UK – previously having been held in Bangladesh, Sri Lanka, Nepal, Mauritius and India, where it was launched in the early 1990s.

More than 300 students, aged 10 to 15, gathered at Kingston University, London, to take part in workshops and competitions that demonstrated their understanding of the quality circles movement.

CQI Chief Executive Simon Feary and CQI Fellow David Hutchins opened the event, before students took part in various challenges, ranging from creating colourful posters and slogans, to debates on whether the central

function of education is to empower future citizens. Every challenge was judged by a panel of experts, including representatives from the quality profession, the CQI, academia and media, using strict criteria to assess work – such as the use of quality tools and understanding of the theme.

The convention included a special presentation where Simon Feary awarded Dr Jagdish Gandhi with Honorary Fellowship of the CQI for his work in introducing student quality circles in India.

Talking about the event and his award, Dr Jagdish said: “Thank you so much for this prestigious award for which I am truly grateful. Thank you to the CQI for taking part in this wonderful convention. It has been a landmark event and has helped to inspire a generation.”

CommunityCommunityTop eventsBranches & SIGs

| 14 | Annual Report 2014 | World Quality Day IRCA Japan | Annual Report 2014 | 15 |

On 13 November 2014 businesses around the world took part in World Quality Day to celebrate the contribution quality professionals make to organisations. With events spanning seven continents, the day was a huge success, with thousands of participants and more than 400 tweets sent using the CQI’s Twitter hashtag, #WQD14. This year’s theme, ‘Building a quality world together’, focused on how quality management can protect reputation, save money and drive innovation. We celebrated in many ways…

The Loxham WebinarMore than 300 people watched our live webinar, ‘A quality career: it’s in your hands’. The webinar addressed the CQI’s Competency Framework and the challenges facing quality professionals in the workplace – from those new to the industry, to seasoned professionals alike.

The panel (pictured below) consisted of David Armstrong, CQI Head of Profession; Dave Riley, CQI Advisory Council member; and Amanda Pinkney, Anglian Water’s Deputy Quality Manager. Tim Coulthard, CQI Head of Communications and Marketing, chaired the event. Watch it on demand in the members’ section of the website: members.thecqi.org

Event: Houses of Parliament This year the CQI’s annual parliamentary reception, organised by the CQI’s North London branch, looked at the future of British business. With 105 attendees, the event demonstrated ways organisations could capitalise on the tools of quality management in order to ensure their success. MP for Harrow East, Bob Blackman, opened the event, while CQI Chair Estelle Clark chaired the discussion. There were keynote talks from Professor of Quality Management Jiju Anthony, Crossrail Technical Director and CQI President Chris Sexton, and Senior Manager – International Quality Operations at Jaguar Land Rover Phil Parker. All talks were well received, with interaction from the audience.

The CQI Pledge Wall In order to extend our reach to new audiences we launched our first ‘Pledge Wall’ (pictured above). We invited quality professionals and

organisations from all over the world to showcase their commitment to quality by making a pledge. They varied from promising to reduce waste by 10% to improving customer engagement, and organisations such as Crossrail, Gael Ltd and Nestlé Australia took part. In total, 157 pledges were made and people are still visiting the wall to make pledges today. Make your pledge: thecqi.org/Pledge-Wall

The CQI takes the message globalCQI Chief Executive Simon Feary attended the launch of China’s World Quality Month to hear how the country is taking on the West by focusing on quality instead of price. He heard how the country plans to boost its economy starting with three key objectives – replacing ‘China speed’ with ‘China quality’, changing from ‘Made in China’ to ‘Created in China’, and moving from ‘China product’ to ‘China brand’. Simon said: “If China is able to leverage quality within its

IRCA Japan Forum 2014On 6 July IRCA hosted its 13th annual Japan Forum, with more than 300 delegates from around the world. The forum focused on the future of auditing and the skills auditors will need in the coming years. Simon Feary presented as a keynote speaker on ‘Quality: a matter of life or death’, which looked at top management’s understanding of quality and its importance to business.

He underlined the consequences of not understanding quality, such as financial and reputational damage. Simon presented the need for quality practitioners to sell their profession better, and the CQI and IRCA vision to reposition quality and the quality profession.

Abdullah M Al-Guwaifli, from Aramco Asia Japan, spoke about the value of supply chain audits, asking: “What are the expectations and requirements of quality management systems and quality assurance? And how can we overcome the challenges and meet the expectations of the energy industry?” There was also a speaker from Canon, Akihiko Aoki, who explained how Canon used stratified training on effective quality management system (QMS)operation and its values, as well as how he made improvements to the existing QMS through the revision of documents and internal audits based on product quality assurance.

Delegates also heard from David Horlock (BSI Asian Pacific), who presented on supply

chain management, and Yoshito Hirabayashi, who spoke on how to benefit from the 2015 revisions to ISO 9001 and ISO 14001.

Last but not least, the day finished with an update on those major standards revisions from IRCA’s Richard Green. His insight into how the revisions will affect audits was well received.

economy, in the same way that Japan did to its manufacturing post-war, then we’re about to witness something very interesting.”

Read Simon’s blog post about China’s World Quality Month: http://goo.gl/ptFw7M

IRCA deliver keynote speechesIRCA Head of Technical Services Richard Green also delivered a keynote speech about the CQI’s Competency Framework to oil company Saudi Aramco.

The organisation’s senior personnel and its inspection agencies from South East Asia also took part in an afternoon workshop, aimed at enhancing their working relationship. Richard said: “Feedback indicated that the event was very well received, with 100% commitment from Saudi Aramco and its inspection agencies to working together. We identified key issues in the relationship, prioritised corrective action and produced a draft implementation plan.”

World Quality Day IRCA Japan

Facts and figuresIRCA Japan by numbers

workshops hosted by IRCA Japan, attracting more than 140 auditors in total

new OEAs in Japan in 2014 (Organisations Employing Auditors)

delegates attended the IRCA Japan Forum 2014 (approximately)

In May 2014 the office took over responsibility from the UK for certification of members in Japan

96

300

2014

| 16 | Annual Report 2014 | The big picture The big picture | Annual Report 2014 | 17 |

France’s high-speed train network off the railsIn December’s Quality World Paul Inglesis, MCQI CQP, Senior Quality Engineer at Morgan Sindall, commented on the investigation into France’s TGV trains (pictured right). A new generation of trains were discovered to be too wide for 1,300 stations. Paul said: “There are certain deviations from the initial plans/criteria for such a service, causing significant drops in TGV’s profitability in recent years. One of the most fundamental aspects of quality management is to have clear requirements and objectives. In order to build a sustainable service there has to be a clear, robust and concise strategy in place that will finally meet or exceed customers’ expectations, while benefiting the economy and providing opportunities for growth.”

Honda pledges to reform quality David Hutchins, FCQI CQP, Principal of David Hutchins International Quality College, gave his analysis of Honda’s recall of faulty airbags in its Fit model (which was recalled five times in 12 months) in the December issue of Quality World: “Honda has two conflicting goals: to be the first to bring a revolutionary

design to market, and to carry out reliability tests to ensure quality and safety. However, with competition being manic, they’re putting products into the market before they’re fully proven. I foresee a radical switch in the emphasis of TQM in the next few years, with more emphasis on quality function deployment, the Kano model, reliability engineering and prediction, and analysis tools.”

The big pictureThe Communications team

relaunched the ‘News’ section in Quality World to give members the

opportunity to share their expertise and perspective

on the big issues

Mix-and-match parts put implant safety in the spotlightIn the November issue of Quality World Hannah Murfet, PCQI, Vice Chair of the CQI Next Generation Network, gave her views on design faults in hip replacements that put patients at risk of serious disabilities: “The current medical device directive 93/42/EEC serves

to regulate manufacturers wishing to sell to Europe, and since the PIP scandal new measures have been proposed. But why regulate the manufacturer and not the physician? Regulations ensure the manufacturer’s quality and regulatory professionals continue to implement measures, but without change, physicians may continue to go off-label.”

Former Honda President

Takanobu Ito

Crisis as doctors turn away millions of patientsIn the September issue of Quality World Tim O’Hanlon, FCQI CQP, Partner at GE Healthcare, Finnamore, commented on NHS failings: “The quality profession can provide insight into patterns of demand – designing services based on the voice of the patient – and use data to expose causes of system waste. We can also challenge the use of non-value adding targets that result in form-filling and less time to see patients, while also offering techniques that help evolve the way care is designed – with a strong focus on prevention rather detection and correction.”

| 18 | Annual Report 2014 | Messaging, influencing & marketing Messaging, influencing & marketing | Annual Report 2014 | 19 |

We made some significant changes to our communications activity in 2014, in order to provide members with the latest information on our direction for the profession. The CQI’s Chief Executive, Simon Feary, set the agenda by outlining his vision for the modern quality professional in his article – ‘The need for change’ (Quality World, April 2014).

Simon explained how catastrophic quality failures are routinely harming society and how we, as a profession, must respond to the challenge. He said: “We know why failure occurs and, equally, we know what makes and sustains excellent quality. We must lead organisations in speeding up the pace of change while de-risking the agenda. In short, we need to create a world where the CQI’s strapline, ‘Quality at the heart of every organisation’, is not just an aspiration but a reality.”

In order to support our members during this transition we created a range of new resources:

The Quality Professional: Driving Organisational ExcellenceTo help drive the CQI’s new vision we published The Quality Professional: Driving Organisational Excellence (pictured above). This publication supported the launch of the CQI Competency Framework, outlining what competencies quality professionals need and how they must change to remain relevant.

The publication featured as an insert in the July 2014 issue of Quality World and as a downloadable PDF on the CQI website. It is the result of two years’ investigation and consultation with quality leaders, practitoners and industry, led by the CQI’s Professional Policy Panel. Download it at: thecqi.org/competency-framework

The New Quality Professional ChallengeIn November 2014 we launched The New Quality Profession Challenge (pictured above), a publication exclusively available to members, which examined the challenges and opportunities facing the quality profession. Using industry analysis and research, it set out the case for change in the way the profession behaves and is viewed by stakeholders – particularly senior business figures.

The publication was written with insight and research from the CQI Professional Policy Panel, CQI Advisory Council, CQI branches, CQI Special Interest Groups and senior business leaders. It was a success, with more than 1,790 people downloading it in PDF format from our website. Download your copy at: thecqi.org/newqpc

New IRCA productsIn order to keep IRCA members well informed on the latest industry news, we updated our digital communications. In May 2014 we launched The IRCA Blog as another way to engage with members, as well as sparking the interest of non-members. We have been using the platform as a way to share information on who we are and what we do, as well as promoting the value auditors add to businesses.

In October 2014 we launched a new monthly newsletter for members entitled ‘Members’ Update’, that featured the latest IRCA news and learning opportunities. This was an important piece of work as it helped reinforce the idea of IRCA as a community, as well as being a tool to spread our key messages. We also redesigned our auditing newsletter, INform, to make it more user-friendly and accessible for our members.

In November 2014, we blogged about an IRCA workshop in Japan that set out the proposed changes to ISO 9001:2015 and it was our most popular post of the year. You can read The IRCA Blog at: blog.irca.org

IRCA In-DepthAdopting the process approach to the way in which quality management systems are audited may, at first sight, may seem to be an overwhelming task for any auditor.

To help our members we released a special report, IRCA In-Depth: The Process Approach to Management Systems Auditing (pictured above), that looked at process-based auditing and what it means for the industry.

The publication was available to all IRCA members as a downloadable PDF and was another way of showing our commitment to tackling the big industry topics.

Download it from the website, in the Members’ Resources section, at: members.irca.org

Messaging, influencing& marketing

Snapshot of our digital communications

493,134People visited the CQI website

356,980 People visited the IRCA website

1,360Average number of people who

visited the CQI website daily

5,600Number of people who visited the CQI website to access resources

on World Quality Day

916Average page views per month for The CQI Blog

487Average page views per month for The IRCA Blog

Social media highlights

LinkedIn followers

Increase in Twitter followers

8,800

629

10,650

1,579

1,039

May Secrets and liesMike Betts, from the City of London Police, talked about BS 10500 – the anti-bribery management system. We also reported on the success of the CQI’s Leadership Conference 2014, and the third part of our Leadership series asked readers to start ‘speaking the language of the board’. In the ‘My Story’ interview we introduced readers to David Armstrong, the CQI’s new Head of Profession. .

June All eyes on the ballQW embraced World Cup fever by taking a look at the manufacturing processes behind the tournament’s football. Our Formula 1 feature proved so popular that CQI branches around the UK demanded visits from the authors, Peter Grossi and Richard Smith. Elsewhere, the CQI’s Deming SIG explained why a ‘total customer experience’ is the key to business success.

July Printing the futureWe visited BAE Systems to look at how it’s using the 3D printing within the manufacturing process for parts, and the benefits in terms of quality. Our Leadership article focused on the four vital factors that make quality part of an organisation’s DNA. And EC Harris revealed the secrets behind a ‘flawless delivery’ construction programme for Lloyds Banking Group.

September Roma the engineerCover star Roma Agrawal spoke about the engineering challenges behind London’s tallest skyscraper, The Shard. CQI Fellow Sharon Shutler took a fascinating look at the dark side of supply chains and the need for quality professionals to address corporate social responsibility. We met the quality team at Anglian Water, to understand the challenges of driving cultural change in the lab.

Quality World | Annual Report 2014 | 21 || 20 | Annual Report 2014 | Quality World

January The Leadership IssueThe first issue of 2014 was a sign of things to come. We featured a report from Mark Braham about CQI members influencing the revision to ISO 9001. January also included the first in our special Leadership series, focusing on the changing landscape for quality professionals. Elsewhere, former Chelsea FC Director Mike Forde explored high-performance environments while drinks giant Coca-Cola revealed its operating requirements policy. We also looked at the challenges for leaders using Lean Six Sigma.

FebruaryBlood SportQW went inside the world of professional cycling to see how ISO 9001 certification was playing a part in rebuilding the sport’s reputation following the Lance Armstrong scandal. We asked if Deming’s 14 Points are still relevant to modern businesses and our ‘March of Progress’ article brought readers a vision of the future, with a design that reflected on quality professionals through the ages. It challenged readers to suggest what the quality professional of the future will look like.

March Beautiful, practical, sustainableQuality World took an environmental focus when we visited WWF’s UK headquarters, billed as ‘the eco office of the future’. Jo Moran, Head of Customer Service at Marks & Spencer, shared her insights into leadership and customer excellence. And the second part of the Leadership series underlined the need to take a holistic view if quality professionals are to help organisations achieve improvements in business performance.

April All changeCQI member Lionel Abbey was our cover star, revealing the quality culture on the London Underground. And on the theme of change, Chief Executive Simon Feary set out the CQI’s vision for the modern quality professional – the start of our strategy to modernise the profession. Elsewhere, we spoke to Wrightbus about the quality manufacturing behind London’s new Routemaster bus and IRCA’s Salary Survey results showed the employment conditions for auditors around the world.

October Change takes rootOur Leadership series by Oakland Consulting switched the focus to making change happen, looking at the practical tools available to quality professionals. And David Armstrong introduced the CQI’s new Competency Framework, with a focus on governance and its relevance in today’s world.

November The measure of successMetrology Manager Ian Wilcox reinforced the value of measurement to business and outlined the opportunities for the profession to engage with his mission at Coventry University. David Armstrong continued his series, explaining the Assurance part of the Competency Framework.

December Breaking the mouldThe final part of the Leadership series challenged readers to ask if they were doing enough to tackle modern challenges. David Armstrong focused on the improvement part of the Competency Framework, while Lord Sebastian Coe spoke to us about delivering the London Olympics.

Quality World magazineOur industry-leading magazine

brought members some fantastic interviews and articles in 2014. Here are some of the highlights

What our members say

“ I enjoy reading Quality World – there is always something that is of relevance and appropriate.”

“ I want to compliment the CQI on the Competency Framework insert that was included in the July issue of QW. It’s the best thing for the profession that I’ve seen in a long time.”

“ Quality World magazine has greatly improved since its revamp. I find it an informative and interesting read.”

| 22 | Annual Report 2014 | Standards ISO 9001 roadshows | Annual Report 2014 | 23 |

2014 was a big year for the standards world, with revisions underway to three of the most popular and influential standards – ISO 9001, ISO 14001 and BH OHSAS 18001. We recognised that these changes would have a profound impact on management system auditors, system implementers and business leaders, and produced a host of detailed reports, webinars and workshops for our members, analysing the changes.

CQI reports on standard revisionsThe CQI’s DIS 14001: What’s new? report analysed the environmental standard’s draft international standard (DIS) in detail, while our BH OHSAS 18001: Moving to ISO 45001 report provided a comprehensive analysis of the new ISO 45001 Committee Draft (CD) – the occupational health and safety (OH&S) management system standard. These reports were well received, with each downloaded by more than 1,000 members.

Our DIS 9001:2014 report was produced to help our members better understand the proposed changes to the quality management system (QMS) standard.

Supported by Ideagen, our independent report examined the contents of the DIS and translated each clause into plain English, as well as outlining the implications of the changes for both QMS auditors and quality professionals. The report was a huge success, with more than 5,000 downloads.

We hosted ISO 9001 and ISO 14001 webinarsMore than 500 people watched the CQI and IRCA ISO 14001:2015 webinar. The webinar outlined the main changes to the environmental standard, including the significance of Annex SL and practical examples of how the revision could affect our members. We also launched our first ISO 9001 webinar – ISO 9001 – the story so far. Watched live by 1,248 people, it explained in detail the revision timeline for the quality management system standard, the drivers for change and how the revision will affect auditors and quality professionals.

Sponsored by EQMS and Qualsys, a leading quality management solution for auditing professionals, it was a huge success. The webinars and reports can be downloaded from the CQI and IRCA websites.

Global workshopsSpreading the message about the importance of these standard revisions is a key part of the CQI’s strategic aim to influence and promote quality. We delivered sell-out workshops across the Far East – Tokyo, Yokohama, Seoul and Singapore – on DIS 9001:2015.

In Hong Kong we spoke about risk-based audits in the engineering and construction industries, and we delivered an ISO 9001 workshop in Beijing at the invitation of the China Certification and Accreditation Association (CCAA). The CCAA were hosting a week of quality events, sponsored by the Chinese government, involving the great and the good of the quality world.

Extending our reachWe expanded our influence in the standards world even further by participating in the development of the new ISO 45001 standard and ISO 27000 series of security standards. While the work is very much ongoing, we believe that if you want to shape the look and feel of management system standards then you need to be at the heart of the process.

In February IRCA attended the launch of the ISO 55001 asset management system standard at The Royal College of Surgeons in London. While IRCA doesn’t currently operate an asset management auditor registration scheme, we are continuing to monitor the uptake of ISO 55001 by the global management system standards community.

ISO 9001 transitionIn anticipation of the standard revision to ISO 9001, the CQI travelled around the UK to host a series of engaging roadshows. Spanning 24 branches, the free briefings discussed the potential impact of the new standard, while also serving to gather vital feedback from our members as to their views on the proposed amendments.

Burning issues such as the revision’s timeline, the importance of Annex SL, the drivers for change, and the implications for auditors and quality professionals were discussed in detail.

Expert line-upLed by Secretary and UK Delegate for ISO/TC176/SC2/WG24 and Chair of the CQI Standards Panel, Colin MacNee (top), our roadshow speakers included Mark Braham (second from top), Quality Assurance Manager at the AA, Nina Abbassi (second from bottom), Managing Director of

Abbassi Ltd, and Richard Green (bottom), CQI Head of Technical Services. Attendees benefited from informative talks delivered by those at the very heart of the development process.

Talking about how the roadshows demonstrated thought leadership by the CQI, Richard said: “While the CQI and IRCA have always messaged to members that the introduction of Annex SL-based standards would have a significant impact on everyone operating in the management system standards arena, this was not a view universally shared at the time our roadshows were being delivered. Even large certification bodies were proclaiming ‘business as usual’.

“However, as time has progressed, their thinking has been revised. Today, the consensus is that the forthcoming changes will have a material impact on the existing behaviours of, and relationships between, management system implementers, business leaders and management system auditors.”

For more reaction and insight, visit thecqi.org/isovideo

Standards Roadshows

Facts and figuresmembers attendedthe ISO roadshow

hours of CPD in total

1,1002,750

Repositioning the quality professionalIt was crucial that we tested the theory behind our new publication, The Quality Profession: Driving Organisational Excellence, with members as well as business and industry. So we hit the road to introduce it to our branch members, from West Scotland to Wessex, via Northern Ireland.

Would they see how their work related to the model? Would they be prepared to promote the model to their board and colleagues?

David Armstrong, Head of Profession, and Vincent Desmond, Executive Director Membership, visited more than 20 branches and met more than 500 members on their travels.

The support and encouragement received during the roadshow provided our mandate to ensure that the new Competency Framework forms the basis of our membership proposition, assessment tool, career guidance, and learning and development.

How we operate | Annual Report 2014 | 25 || 24 | Annual Report 2014 | Our people

Creating excellence in performance is a vital part of the CQI’s strategy. In 2014 we developed our seven Behaviours for Success, with the aim of creating a shared understanding of who we are as an organisation and uniting our two brands (CQI and IRCA). The behaviours apply equally to all roles in the CQI, regardless of seniority, and show a commitment to support and challenge others in demonstrating the behaviours.

Defining the behavioursThe Behaviours for Success focus on collaboration, communication, respect, improvement, ownership, the bigger picture and leadership. These behaviours underpin everything we do at the CQI, including our recruitment process, staff inductions and performance development reviews. The content of the Behaviours for Success is based on the results of the staff survey and takes into account the strategic aim of excellence in the CQI’s performance.

Learning the behaviours for success Staff took part in seven workshops led by trainer JJ Lynch over a period of five months, to explore and embed the behaviours. The workshops began in August and raised awareness of the behaviours in practice. The detailed sessions focused on the importance of each action, with useful tools and tips for applying the Behaviours for Success in the workplace. As a result we have fostered a culture of better communication, while also supporting career development.

In 2014 the CQI developed its first Operational Framework and Business Management System. This was a significant development, ensuring that intent is clear and measuring how intent is delivered. Stakeholders, requirements, and CQI activities and responsibilities were analysed, and the Senior Management Team (SMT) was amended to better respond to the activity of both brands – the CQI and IRCA.

The Operational Framework The first step in measuring clear intent was the establishment of the Operational Framework, which was driven by a need to promote clarity and govern how the CQI operates, while matching intent to the CQI’s services.

The framework defines who we are as an organisation and outlines management strategy, including how to manage different people.

The Operational Framework was created in response to our stakeholder requirements and the preferred culture and values of our Senior Management Team, the Board of Trustees and the Advisory Council. It discusses the context in which the CQI operates,

including our heritage in providing products and services, and the sectors we are involved in. It also addresses our mission, vision and values, which greatly impact how we operate.

All stakeholders were analysed and our key responsibilities were defined to allow us to deliver the requirements of our stakeholders. Understanding these responsibilities guarantees we can identify and respond to key activities.

The next step was to allocate activities to roles within the CQI, so each individual could respond according to their own abilities and expertise. Key roles were defined and a management strategy was outlined, establishing a preferred design for the organisation.

The final step in creating the Operational Framework was to establish and embed review mechanisms to confirm compliance with the requirements and expectations of our stakeholders.

The new Business Management System In order to ensure clear intent we created the Business Management System (BMS) – a portfolio of policies and processes that illustrates how to align the organisation with the requirements established in the Operational Framework. The BMS (pictured above) is a centrally controlled system for all documents and details what the CQI does and how we function at three levels – as an organisation, as a team and as an individual within the organisation.

Establishing the BMS provides a reference point for all operations. It has created process expertise across the organisation and has made sure we have control over our documentation system. Through implementing activities such as these, we can ensure we are observing best practice.

Our people How we operateBehaviours for Success Clear intent

“ I was privileged to be involved with the Behaviours for Success programme as the lead trainer. The behaviours underpin the working culture in CQI – taking a pride in doing the little things other organisations don’t value as much, and doing them well” JJ Lynch, Managing Director of traning company Leading Edge Learderhip

An illustration of the Behaviours for Success

Screenshot of the BMS 2014

Annual Report 2014 | Annual Report 2014 | 029 |

The Trustees’ Report

| 28 | Annual Report 2014 | Trustees’ report Trustees’ report | Annual Report 2014 | 29 |

Trustees’ reportThe Board of Trustees of the Chartered Quality Institute (the Institute) presents its annual report for the year to 31 December 2014 together with audited financial statements for the year.

Reference and administrative detailsThe Chartered Quality Institute, also known as the CQI, is a registered charity (No. 259678). The Institute was granted a Royal Charter on 23 November 2006. Its registered office is as shown on the front cover of the Annual Report. The current Trustees, and any past Trustees who served during the year, are listed on page 48, together with the names of the senior executive staff and the external advisers of the charity.

Structure, governance and managementThe Institute is governed in accordance with its Royal Charter and bye-laws. The Board of Trustees (the Board) is responsible for the overall governance of the Institute. Trustees are either elected or co-opted and the total number of trustees may not

exceed 20. Up to 17 trustees are elected directly by the Advisory Council through the Nominating Committee and three may be co-opted directly by the Board to address particular competence requirements. The Board, Advisory Council and Nominating Committee all operate according to their own terms of reference, and according to codes of conduct. The Institute has developed an induction programme that all new Trustees are required to complete to ensure that they are briefed on the Institute’s objectives, strategy and activities. Trustees are encouraged to attend training sessions to develop their knowledge and skills.

The Institute operates through effective partnership between the Board, the Advisory Council and the Executive. The Board meets at least four times a year to review strategy and operations, to monitor investment performance, to approve and monitor operating plans and budgets, and to monitor statutory compliance.

The Advisory Council elects the Board and provides advice on request. It also acts as an ideas

creation body for the Institute and as the ultimate guardian of integrity and ethics. The Nominating Committee is charged with monitoring membership of the Board and Advisory Council and ensuring that each is properly and effectively constituted. The Board delegates specific powers in connection with the management and administration of the Institute. These powers are articulated in the authorisation policy and exercise of these powers is monitored through regular reporting to the Board.

Advisory panelsThe charity has a number of sub–committees spanning its varied stakeholders. These are: the Professional Policy Panel, the Education and Skills Panel, the Standards Panel, the Editorial Advisory Panel, the Regional Operations Panel and the IRCA Advisory Panel. All panels fall within the managerial remit of the CQI Executive team, who report to the board on their activities.

The Governance Working Group (GWG) is responsible for advising the Board on governance and

ensuring investments are managed in accordance with the investment policy and the oversight of the annual financial audit. Effective partnership between Trustees and the Executive continues to contribute significantly to the success of the institute.

Risk managementThe Board has delegated responsibility to the Governance Working Group for ensuring strategic, financial and operational risks are identified, assessed and managed effectively. The Institute operates a formal risk management process in line with the risk management policy approved by the Board. The Executive manages an opportunities and risk register and this activity is overseen by the Governance Working Group, which reviews risks and actions taken to mitigate risks and exploit opportunities on a quarterly basis and reports to the Board.

Group structureThe charity has the following wholly owned subsidiaries:

IRCA Japan Kabushiki Kaisha is a legal entity registered in Japan and whose principal activity is to promote the CQI’s auditor certification services offered in Japan through its International Register of Certificated Auditors (IRCA) division.

Japan represents the CQI’s biggest single market for auditor certification and the CQI, through the IRCA Japan subsidiary, has achieved notable successes both in attracting business and in influencing the quality infrastructure and government.

CQI Services Limited, company registration number 4572473. The company’s principal activities are procuring advertising revenue.

Objectives and principal activities of the CQIThe Trustees have given due regard to the Charity Commission’s guidance on public benefit when considering the CQI’s objectives and activities. The objectives of the Institute as stated in the Royal Charter are “to benefit the public by advancing education in, knowledge of and the practice of quality in industry, commerce, the public sector and the voluntary sectors”.

The Trustees have interpreted these, in broad terms, in the following manner. The CQI exists to help make business better and to promote the quality management approach, based on governance, assurance and improvement, which delivers the following benefits for organisations:• Improved customer satisfaction• Reduced costs• Improved profitability• Continual improvement• Innovation• Identification and management

of risk• Corporate care and responsibility.

The Institute recognises that these business outcomes are best generated through using competent quality professionals. These professionals are the Institute’s members and to that purpose the Institute’s charitable expenditure is focused on the following principal activities:• Promoting the benefits of the

quality management approach to all organisational sectors

• Maintaining the Body of Quality Knowledge

• Maintaining a leadership and skills framework for the profession

• Sharing quality knowledge and resources

• Providing qualifications and training

• Assessing and recognising quality competence.

Achievements and performanceThe CQI’s vision is “quality at the heart of every organisation”. This vision is to be achieved through the delivery of our three strategic themes: raising the profile of quality and of the CQI, supporting and developing the profession, and by ourselves becoming an excellent organisation.

Theme one Raising the profile of quality and of the CQIThe Institute’s objective is to build greater understanding of the role and value of quality and quality professionals, and in doing so, to raise awareness of the CQI as the chartered body representing the profession.

New publications New monthly email newsletters were launched for IRCA members: Members’ Update, featuring news and promoting new learning opportunities, and IRCA InDepth, featuring CPD and knowledge pages.

World Quality Day This was celebrated across all seven continents. Our key messages for World Quality Day 2014 were: quality professionals are an essential part of the organisation – not a barrier to delivering projects. To deliver quality products and services, senior management must understand that quality standards are the foundation of their long-term strategy; neglecting quality could seriously damage your brand’s reputation and quality management impacts everyone in the organisation.

For the first time the annual Loxham Lecture was hosted as a live webinar. A total of 885 people registered to watch and viewers submitted questions to the panel via email.

Trustees’ report

A new feature for 2014 was the launch of the CQI Pledge Wall, attracting 144 pledges as people committed to quality-orientated goals for the year.

Social mediaThe CQI grew its Twitter and LinkedIn followers across our CQI, IRCA and Quality World accounts.

ISO 9001:2015As a holder of Category A Liaison status with ISO Technical Committee 176, the CQI’s Standards Panel ensured that the CQI’s membership voice was heard in the development of the draft version of ISO 9001:2015, developed during 2014.

CQI special interest groups The CQI has eight special interest groups with more than 3,500 members. A focus for 2014 was the development of the Next Generation Network for young quality professionals.

Theme two supporting and developing the profession The Chartered Quality Professional and CQImembershipAs the body providing recognition for qualified quality professionals, the CQI exists to demonstrate their value to employers as well as the benefits to society more widely, in support of the Institute’s charitable aims.

Setting the standards for the quality profession – our flagship project to redfine the value, scope and role of the quality profession, reached its first milestone with the launch of the CQI Quality Professional Competency Framework.

The framework, driven by the CQI’s Professional Policy Panel was

the result of engagement with employers, the CQI Advisory Council, branches and special interest groups.

The framework provides the following benefits:• A clear articulation of the value of

the quality profession for employers and society at large

• A framework for employers to use when establishing competence requirements and development programmes for staff

• A framework for individual members to review their own competence and plan ongoing development

• A basis for the CQI to improve its membership, qualification and CPD services.

CQI membership reviewAs part of the Institute’s focus on professional standards, a review of the CQI membership system was completed and changes were agreed by the Board of Trustees in consultation with the Advisory Council. The proposed changes are designed to cater for the full scope of the quality profession, as implied by the CQI vision and Competency Framework for the profession, and support an aspirational career path and progression.

Engagement with employers Employers are a key stakeholder for competent quality professionals and therefore key partners in developing and ensuring professional standards are taken up in industry. The CQI welcomed a number of new corporate partners in 2014 including Jaguar Land Rover, Amec Foster Wheeler, Lockheed Martin, Bombardier and BAE Systems. A highlight of 2014 was the launch of the CQI Corporate Directors Round Table. These events bring together senior quality figures from an array of sectors to share best practice,

benchmark quality activity and establish new contacts.

CQI branchesMore than 100 events were held during 2014 across the UK and Hong Kong branches. Our ISO:9001 2015 roadshows visited 26 branches, attracting 1,100 attendees, with most branches achieving their highest attendance for several years.

Membership Individual membership remained static in 2014 with a total of 22,000 members, split between 9,711 CQI members and 12,359 IRCA auditor certifications.

Learning and developmentThe CQI offers students the ability to attain qualifications in quality at 21 certified education centres. For the first time the CQI surpassed 1,000 unit registrations for the June sittings. The CQI Awarding body had its first Ofqual monitoring visit, which was a success.

2014 was another good year for IRCA certified auditor training courses. More than 60,000 auditors attended more than 7,000 courses at IRCA certified training organisations. The IRCA approved CPD scheme was launched during 2014 and 34 courses were approved by the end of its first year.

CQI Training More than 500 delegates attended CQI public courses – an increase of 86% from 2013. Our in-company training programmes tailored to individual companies continued to be successful, with more than 20 organisations received training.

Theme three Becoming an excellent organisationAs an organisation representing quality professionals in the UK,

the CQI has a responsibility to ensure it operates to the highest quality standards. For this reason, and in accordance with its charity status, the CQI complies with the Charity Commission’s guidance document, Hallmarks of an Effective Charity.

To support strategic objectives of improving professional standards and influencing outside the profession, a number of changes were made to staffing within the Executive.

A new post – Head of Profession – was established and the CQI welcomed David Armstrong into the role in 2014. A new operating framework was developed and changes were made to the organisation of the Executive to align the CQI and IRCA respectively. This is designed to provide the following benefits:• To provide efficiency in the

management of membership, and learning and development

• To improve the customer satisfaction by making content and services available for both CQI and IRCA members

• To ensure the CQI reflects one profession.

The framework will form the basis of a single management system to be deployed in 2015.

Investment in the Institute’s IT systems continued during 2014. The Institute’s back-up systems were improved, including moving all critical systems to a secure data centre.

All PCs were refreshed as part of an update of IT equipment ensuring staff have the right equipment to service our members. Work continued on our membership database during the year. The first major update of the system was completed. This fixed a number of small issues and will pave the way for future enhancements.

Financial review and results for the yearThe Institute recorded a small £5k surplus for the year. This compares to £77k in 2013. CQI Membership income rose 11%, although new members continue to be hard to recruit. CQI Education enjoyed another good year with increasing unit registrations. However, CQI training fell short of 2013 figures due to delays in the delivery of a few large in-house training programmes. Publishing income continued its decline, although print advertising steadied. Jobsite income fell short of expectations.

IRCA income fell by almost 13%, mainly due to a one-off change in accounting policy on the recognition IRCA auditor income. IRCA approved training organisations had another good year. The IRCA brand continues to make a significant contribution to the CQI. The results include figures from two wholly owned trading subsidiaries. IRCA Japan KK looks after IRCA auditors in Japan. Results continue to be affected by the weakening of the Yen throughout 2014. The Japanese certification market remains challenging, although the rise in consumption tax in April did not impact auditor income as much as anticipated. CQI Services Limited also continued to post healthy profits; this was gift aided to the Institute. Overall reserves were steady at £2.77m. Net assets include an investment portfolio valued at £1.13m at the year end and cash balances in excess of £1.43m. The Institute has maintained its strong financial position and continues to look to its future with confidence.

Having reviewed the financial position, the Trustees have a reasonable expectation that the Institute has adequate resources to continue its activities for the foreseeable future. Accordingly, they

continue to adopt a going concern basis in preparing the financial statements.

Reserves policyThe CQI has in place a reserve policy. An extract of which follows:The Board has determined that reserves are necessary in order to:• Plan for the expansion of activities,

where those activities require start-up or working capital investment

• Take advantage of opportunities if and when these arise

• Hedge against the effects of adverse operating conditions

• Accommodate income variations inherent in products’ lifecycles.

The Board has also determined that:• The steady-state level of free

reserves be maintained at, or in reasonable proximity to, the equivalent of six months operating costs, which were £2.5m for the year to 31 December 2014.

• The reserves target is to be achieved through surpluses generated from charitable activities, such as through subscriptions from members and auditors, advertising, training, and qualifications and investment income.

• The reserves be maintained in a combination of forms, for example cash on deposit, equities, gilts and bonds.

• This policy is scheduled to be reviewed by the Board at least annually.

Total reserves at the year end totalled £2.77m. Free reserves available for use, excluding designated reserves, were £2.12m. This is below target. The designated funds relate to funds set aside for the investment in IT projects, the replacement of fixed assets, and cash held by the Pharmaceutical Quality Group – a SIG of the CQI .

| 30 | Annual Report 2014 | Trustees’ report Trustees’ report | Annual Report 2014 | 31 |

Investment policy and performanceThe CQI operates a low-risk investment policy designed to maximise return of the charity’s investment funds over the longer term. The policy can be summarised as follows:• The risks associated with the

portfolio (ie cash plus long-term investments) should be low, with a minimum of 30% of the value being invested in instruments that have the lowest risk rating – such as UK government bonds and gilts, or cash on deposit within limits where UK government guarantees apply.

• It is consistent with the provisions as described in the Royal Charter bye-laws, the Institute retains a professional adviser through whom the portfolio is managed.

• The management of the portfolio will be vested in the Governance Working Group.

• This policy is to be reviewed by the Board at least every three years.

The charity does not restrict its fund managers as regards any particular category of investment. The funds were placed in a Common Investment Fund (CIF), the Newton Global Growth and Income Fund for Charities. The return on our managed investments was in line with last year. The value of our investments continued to rise during the year, ending up 6% at £1.13m, while strict monetary control resulted in higher year end cash balance of £1.43m.

EmployeesThe CQI aims to create a supportive work environment that enables staff to be innovative and deliver results. We believe in the importance of all staff sharing the objectives of the organisation and its charitable purpose, and we continually strive to further improve our ability to work effectively together. We operate

on the basis of equal opportunities and merit, and apply this to all our recruitment, training and development opportunities. We encourage open discussions, feedback and suggestions for improvement.

In 2014, an organisation-wide training programme, ‘Behaviours for Success’, was run. The new auto-enrolment pension scheme was implemented and a new intranet was launched.

Objectives for 2015During 2015 the Institute will start work towards our four new strategic goals – excellence in the profession, influence beyond the boundaries of the profession, a global membership community and excellence in the CQI’s performance.

1 Excellence in the professionIn 2015 we will build on the quality profession Competency Framework and deliver, in consultation with members, employers and partners:• New CQI membership criteria

and assessment, including a new student grade.

• A Quality Professional Competency Assessment Guide to support employers in the development of their staff and members in their professional development.

• A revised suite of learning and development products to support career development.

• Our transition policy, and arrangements for quality management system auditors and training providers, to ensure that the changes in ISO 9001 are properly reflected in the IRCA auditor community.

2 Influence beyond the boundaries of the profession

In 2015 we will continue our work with BSI and ISO to ensure that the final version of the new iteration of ISO 9001 reflects the CQI position.

We will establish a framework for stakeholder engagement with a focus on engaging peer professional bodies to establish understanding and effective working relationships between our allied professions.

3 A global membership community

We will be working to attract FTSE 100-calibre organisations as CQI Corporate Partners who will actively promote the CQI governance, assurance and improvement framework, the CQI Competency Framework, and are engaged in the development of the new Competency Assessment Tool. We will improve the communications and content provision to members through the introduction of more in-depth content publications.

4 Excellence in the CQI’s performance

Complete the implementation of our single business management system. Begin the redevelopment of the CQI and IRCA websites to create a more modern platform that will offer more online content and allow members to carry out more online activity, such as renewing their membership and networking with peers.

Statement of trustees’ responsibilities The Trustees 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/Wales requires the Trustees to prepare financial statements for each financial 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 of the charity for that period. In preparing these financial 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 have been followed, subject to any material departures disclosed and explained in the financial statements

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The Trustees are responsible for keeping accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008, the Charities and the provisions of the Royal Charter. They are responsible for safeguarding the assets of the charity and 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 financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Corporate governanceThe bodies associated with the governance of the Institute operate within a coherent framework. Each body has formal terms of reference supported by role descriptions and codes of conduct. Processes are in place to ensure

that performance is monitored, and that appropriate management information is prepared and reviewed regularly by both the Executive management and the Trustees. The systems of internal control are designed to provide reasonable assurance against material misstatement or loss. They include:• A strategic plan and annual budget

approved by the trustees• A trustee assigned to the office of

honorary treasurer• Regular consideration by the

trustees of financial results, variances from budgets and non-financial performance indicators

• Delegation of day-to-day management authority and segregation of duties

• Identification and management of risks.

By order of the Board of Trustees

Estelle ClarkChair, Board of TrusteesDate:

| 32 | Annual Report 2014 | Trustees’ report Trustees’ report | Annual Report 2014 | 33 |

We have audited the financial statements of the Chartered Quality Institute for the year ended 31 December 2014, which comprises of the consolidated Statement of Financial Activities, the charity and group Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charity’s members, as a body, in accordance with Section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the Charity’s Trustees those matters we are required to state to them in an Auditors’ Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditorAs explained more fully in the Trustees’ Responsibilities Statement set out in the Trustees Report, the Trustees are responsible for the preparation of financial statements which give a true and fair view.

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statementsA description of the scope of an audit of financial statements is provided on the Financial Reporting Council’s website at frc.org.uk/auditscopeukprivate.

Opinion on financial statementsIn our opinion the financial statements:• Give a true and fair view of the

state of the charity’s and group’s affairs as at 31 December 2014, and of its incoming resources and application of resources, for the year then ended.

• Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice.

• Have been prepared in accordance with the requirements of the Charities Act 2011.

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:• The information given in the

Trustees’ Annual Report is inconsistent in any material respect with the financial statements

• Sufficient accounting records have not been kept

• The financial statements are not in agreement with the accounting records and returns; or

• We have not received all the information and explanations we require for our audit.

haysmacintyre Statutory Auditor

26 Red Lion SquareLondonWC1R 4AG

haysmacintyre is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

| 34 | Annual Report 2014 | Independent auditor’s report Independent auditor’s report | Annual Report 2014 | 35 |

Independent auditor’s report to the Trustees of the Chartered Quality Institute

| 36 | Annual Report 2014 | Consolidated statement of financial activities Balance sheet| Annual Report 2014 | 037 |

Note 2014 2013 £’000 £’000 Incoming resources from generated funds Investment income 3 42 43 Incoming resources from charitable activities Membership Services 1,332 1,199 IRCA 2,857 3,285Training & Education 698 726 Publishing 132 151 Total incoming resources 5,061 5,404 Charitable activities Membership Services 4 1,301 1,118IRCA 4 1,978 2,627 Training & Education 4 666 759 Publishing 4 1,080 878 Governance costs 6 95 98 Total resources expended 5,120 5,480 Net (outgoing) resources before other recognised gains and losses (59) (76) Other recognised gains/(losses) Gains on investments assets 12 64 153 Net movements in funds and net surplus for the year 5 77 Funds brought forward 2,766 2,689 Total unrestricted funds carried forward 18 2,771 2,766

There are no total recognised gains or losses other than those recognised above. All activities are continuing.

Consolidated statement of financial activities for the year ended 31 December 2014

Balance sheet as at 31st December 2014

Group Institute Note 2014 2013 2014 2013 £’000 £’000 £’000 £’000Fixed assetsTangible fixed assets 11 403 839 403 839 Investments 12 1,132 1,068 1,142 1,078 1,535 1,907 1,545 1,917 Current assets Debtors 13 975 914 1,013 759 Cash at bank and in hand 1,423 1,331 1,173 1,170 2,398 2,245 2,186 1,929 Creditors: amounts due within one year Creditors 14 1,162 1,096 1,037 876 Provision 16 – 290 – 290 1,162 1,386 1,037 1,166 Net Current Assets 1,236 859 1,149 763 Net assets 2,771 2,766 2,694 2,680 Total funds: Designated funds 18 654 1,066 654 970General funds 18 2,117 1,700 2,040 1,710 Total unrestricted funds 2,771 2,766 2,694 2,680

These accounts were approved by the Board and authorised for issue on , and were signed on its behalf by:

Estelle Clark, Chair

| 38 | Annual Report 2014 | Notes to the financial statements Notes to the financial statements | Annual Report 2014 | 39 |

1. Accounting policiesAccounting conventionThe financial statements have been prepared under the historical cost convention, which was modified to include the revaluation of investment assets. They have been prepared in accordance with the Charities Act 2011 and comply with the Statement of Recommended Practice: Accounting and Reporting by Charities as revised 2005 (the SORP) and applicable accounting standards.

The particular accounting policies adopted are described below:

Consolidation The group accounts include the results of CQI Services Ltd and the International Register of Certificated Auditors Japan Kabushiki Kaisha (IRCA Japan KK), and have been consolidated on a line by line basis. IRCA Japan KK’s income and expenditure are translated at the average exchange rate for the year, while the balance sheet is translated at the year end rate. No separate statement of financial activities has been prepared for the CQI as a single entity as permitted by the SORP. The gross incoming resources of the Institute for the year were £4.78m (2013 – £4.90m) and its result for the year was a net surplus of £4k (2013 deficit – £93k). Incoming resourcesThe turnover of each department within the Institute is, where applicable, included net of Value Added Tax (VAT). Income is allocated to the period to which it relates, carrying forward that part of the income relating to future accounting periods. Income is recognised in the financial statements on the date that the Institute obtains entitlement to the income. This policy now applies to IRCA auditor fees which had previously been recognised when cash is received. The policy changed from 1 January 2014. Comparatives were not restated due to the database being unable to provide the historical information. Resources expendedExpenditure is accounted for on an accruals basis and includes any VAT that cannot be recovered. A liability is recognised when a legal or constructive commitment is entered into by the Institute and so a liability is created.

Expenditure that can reasonably be directly allocated to specific activities has been included under those cost categories. Support costs that include payroll have been apportioned between cost categories based on average, full-time equivalent staff numbers in each department.

Governance costs are those incurred in connection with compliance with constitutional and statutory requirements. Governance costs include an apportionment of support costs based on an estimate of staff time and resources spent on this activity.

Tangible fixed assetsThe minimum threshold for capitalisation is £1,000. Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life: Improvements to premises – over the term of the lease Office equipment and furniture – 20% straight line Computer equipment and software – 33 1/3% straight line.

Investments Investments are stated at market value at the balance sheet date. The statement of financial activities includes the net gains and losses arising on revaluations and disposals throughout the year. Foreign currenciesForeign currency transactions are recorded at the rate ruling at the transaction date. Monetary assets and liabilities denominated in foreign currencies are retranslated at the exchange rate ruling at balance sheet date. Differences are taken to the income and expenditure account. Leasing and hire purchase commitments Rentals paid under operating leases are charged to the income and expenditure account on a straight line basis over the lease term. The Institute holds no assets under finance leases or hire purchase contracts.

Pensions The Institute makes contributions to a number of personal pension schemes. Contributions are charged to the income and expenditure account as they become payable.

2. Trading activities of subsidiary undertakingsThe Institute has two wholly owned trading subsidiaries. A summary of their trading results is shown below:

CQI Services Limited is incorporated in England and Wales. The principal activity of the company is the provision of training activites and the generation of advertising revenue placed in Quality World and on the website. All profits are gift aided to the charity.

IRCA Japan KK is incorporated in Japan. The principal activity of the company is to provide local marketing and membership services to IRCA for its auditors in Japan. During 2014, the certification of Japanese auditors was transferred to IRCA Japan KK. The income and expenditure of the company has been included under charitable activities of IRCA in the group financial statements.

Notes to the financial statements Notes to the financial statements

| 40 | Annual Report 2014 | Notes to the financial statements Notes to the financial statements | Annual Report 2014 | 41 |

2. Trading activities of subsidiary undertakings (continued) CQI Services Limited IRCA Japan KK Total Total 2014 2014 2014 2013 £’000 £’000 £’000 £’000Summary profit & loss accounts: Turnover 149 476 6,25 1,211 Operating costs (15) (471) (486) (947) Operating profit 134 5 139 264 Interest receivable - - - - Profit on ordinary activities before taxation 134 5 139 264 Taxation - (1) (1) (3) Profit on ordinary activities after taxation 134 4 138 261 Gift aid to parent charity (134) - (134) (258) Retained in subsidiary - 4 4 3 The assets and liabilities of the subsidiaries were: Current assets 116 286 402 500 Current liabilities (106) (200) (306) (404) Total net assets 10 86 96 96 Aggregate share capital and reserves 10 86 96 96

3. Investment income 2014 2013 £’000 £’000 Bank deposit interest 7 7 Dividend income from shares listed on the London Stock Exchange 35 36 Total 42 43 4. Total resources expended Staff costs Other direct Support costs Total Total activity costs Charitable activites 2014 2013 £’000 £’000 £’000 £’000 £’000 Membership Services 437 253 611 1,301 1,118 IRCA 860 325 793 1,978 2,627 Training & Education 129 293 244 666 759 Publishing 395 258 427 1,080 878 Support Costs 689 1,419 (2,108) - - Governance - 62 33 95 98 Total charitable costs 2,510 2,610 - 5,120 5,480

5. Support costs 2014 2013 £’000 £’000Staff Costs 692 617 Building Costs 356 347 Office Costs 32 53Depreciation 499 442Irrecovetable VAT 125 100IT costs 224 172 Other Costs 180 346 2,108 2,077 Allocation to governance costs (33) (34) Total 2,075 2,043

Notes to the financial statements Notes to the financial statements

| 42 | Annual Report 2014 | Notes to the financial statements Notes to the financial statements | Annual Report 2014 | 43 |

6. Governance 2014 2013 £’000 £’000 Meetings and travel expenses 21 29 Audit fees 18 17 Legal and professional 23 18 Allocation of support costs 33 34 Total 95 98 7. Net outgoing resources for the year The net outgoing resources for the year are stated after charging: 2014 2013 £’000 £’000Depreciation 499 442 Operating lease rentals for land and buildings 229 232 Auditor’s remuneraton-external audit 17 16 Auditor’s remuneraton-other services 10 7 8. Staff costs 2014 2013 £’000 £’000Wages and salaries 1,971 1,868 Social security costs 225 220 Pension costs 164 118 Other staff costs 150 171 Total 2,510 2,377 The average weekly number of employees during the year was as follows: 2014 2013Number of employees involved in charitable activities: Membership services 10 10 IRCA 13 17 Training & Education 4 5 Publishing 7 7 Number of employees involved in non-charitable activities Support and Governance 10 8 Total 44 47 The number of employees whose emoluments fell into the following bands were 2014 2013£60,001 – £70,000 4 1 £70,001 – £80,000 1 3 £120,001 – £130,000 - 1£130,001 – £140,000 1 - The Institute made contributions of £93,649 (2013: £72,469) to the money purchase personal pension schemes of six (2013: five) employees whose emoluments exceeded £60,000.

9. Members of the Board No member of the Board received any remuneration in 2014 (2013: £nil). A total of £6,155 (2013: £5,006) was paid to three (2013: two) members of the Board in reimbursement of expenses incurred on Institute business during the year. 10. Taxation The Institute is a registered charity and is, therefore, not subject to corporation tax on its charitable activities. No provision has been made for corporation tax for CQI Services Ltd as the company has made a Gift Aid donation to the parent charity sufficient to extinguish any tax liability. Overseas taxation relates to income tax suffered by IRCA Japan KK on its profits for the year.

2014 2013 £’000 £’000Overseas taxation 1 3 11. Tangible fixed assets Group and Institute Improvements Office equipment Computer Total to premises and furniture equipment software £’000 £’000 £’000 £’000 Cost As at 1 January 2014 192 87 1,286 1,565 Additions in year - 6 57 63 As at 31 December 2014 192 93 1,343 1,628 Depreciation As at 1 January 2013 49 43 634 726 Charge for the year 19 19 461 499 As at 31 December 2014 68 62 1,095 1,225 Net book value As at 31 December 2014 124 31 248 403 As at 31 December 2013 143 44 652 839

Office equipment and furniture includes assets purchased by IRCA Japan KK during the year: at 31 December the net book value was £4,827.

Notes to the financial statements Notes to the financial statements

| 44 | Annual Report 2014 | Notes to the financial statements Notes to the financial statements | Annual Report 2014 | 45 |

12. Fixed asset investments Group Institute 2014 2013 2014 2013 £’000 £’000 £’000 £’000

Listed investments 1,132 1,068 1,132 1,068 Unlisted investments - - 10 10 Market value as at 31 December 2014 1,132 1,068 1,142 1,078 Analysis of movement: At 1 January 2014 1,068 915 1,078 925 Net gains/(losses) 64 153 64 153 At 31st December 2014 1,132 1,068 1,142 1,078 Listed investments In January 2011 an investment was made in a Common Investment Fund. As at 31 December 2014 fund comprised 43% UK equities, 38% overseas equities, 18% Bonds and 1% cash. Their market value as at 31 December 2014 is shown above. Unlisted invesmtments in subsidiary undertakingsThe Institute holds 100% of the voting capital of CQI Services Ltd, a company registered in England. The share capital of the company comprises 10,000 shares of £1 each. The company’s principle activities are the provision of advertising revenue in the Quality World magazine and the CQI websites, management consultancy referrals, catering and hire of facilities. The Institute holds 100% of the voting share capital of the International Register of Certified Auditors Japan KK, a company registered in Japan. The share capital of the company consists of one Japanese Yen. The company’s principal activity is to provide local marketing, administration and certification services to Japanese auditors. The Institute holds 100% of the voting capital of the following companies which are registered in England. The companies were dormant throughout the period covered by these financial statements and hence have not been consolidated in these financial statements. Share capital ordinary shares of £1 each Authorised IssuedIQA Limited 1,000 1 IRCA Limited 1,000 1 IRCA Europe Limited 1,000 1 CQI Training Limited 1 1 PQG Limited 1,000 1 Quality World Limited 1,000 1

13. Debtors Group Institute 2014 2013 2014 2013 £’000 £’000 £’000 £’000

Trade debtors 312 315 221 41 Amounts owed by Group undertakings - - 179 183 Other debtors 156 92 116 41 Prepayments and accrued income 507 507 497 494 Total 975 914 1,013 759

14. Creditors Group Institute 2014 2013 2014 2013 £’000 £’000 £’000 £’000Trade creditors 87 144 55 80 Other taxes and social security 71 96 54 56 Other creditors 26 16 26 15 Accruals and deferred income 978 840 902 725 Total 1,162 1,096 1,037 876

15. Deferred income Group Institute 2014 2013 2014 2013 £’000 £’000 £’000 £’000At 1 January 600 418 487 418 Amount released to incoming resources (600) (418) (487) (418) Amount deferred in the year 809 600 736 487 At 31 December 809 600 736 487 Included in creditors for the year is a total of £808,991 (2013: £599,676), which relates to deferred income. This is income for 2015 fees raised in October, November and December 2014. This figure consists of £70,611 (2013: £62,100) for examination fees, £347,805 (2013: £243,521) for CQI Membership, £65,268 (2013: £112,855) for CQI Training, £122,020 (2013: £9,573) for IRCA fees from training providers, £48,163 from IRCA OEA fees and £155,124 from IRCA membership fees.

16. Provision Group Institute 2014 2013 2014 2013 £’000 £’000 £’000 £’000Other taxes - 290 - 290

The provision for a potential VAT liability relating the Institute’s Japanese subsidary was written back. Further investigation showed no liability was due.

Notes to the financial statements Notes to the financial statements

| 46 | Annual Report 2014 | Notes to the financial statements Annual Report 2014 | Annual Report 2014 | 049 |

17. Other financial commitments Land and buildings 2014 2013 £’000 £’000Over five years 288 288

Under the terms of the new lease signed in 2011, the Institute has a commitment to make payments of £288,000 per annum until 2021.

18. Analysis of assets between funds All assets and liabilities are held within unrestricted funds. IT Fixed General PQG Project Asset funds Reserve Reserve Reserve Total £’000 £’000 £’000 £’000 £’000Balance at 1 January 2014 1,700 96 131 839 2,766 Movement in funds during the year 417 5 19 (436) 5

Balance at 31 December 2014 2,117 101 150 403 2,771

The PQG reserve is equal to the bank balances held by the Pharmaceutical Quality Group. This special interest group meets the needs of quality professionals within the pharmaceutical industry through regular meetings on quality assurance, good manufacturing practice and ‘hot topics’, and developing guidance on a range of regulatory requirements.

The IT project reserve represents money set aside for information systems projects.

The Fixed Asset Reserve represents the approximate value of tangible assets as these funds are not available for day-to-day operations of the Institute.

Notes to the financial statements

| 48 | Annual Report 2014 | Board of Trustees & Advisory Council Senior executive staff | Annual Report 2014 | 49 |

Position Appointed Current office holder Term of office End of current termChair September 2014 Estelle Clark 3 years September 2017Board member September 2014 Peter Bennett 2 years September 2017Honorary Treasurer September 2012 Tony Harper 3 years September 2015Board member September 2011 Margaret Rooney 3 years ResignedBoard member September 2014 Colin Head 3 years September 2017Board member September 2012 David Watson 3 years September 2015Board member September 2012 Tim O’Hanlon 3 years September 2015Board member September 2012 Ian Mitchell 3 years September 2015Board member September 2014 Amanda McKay 3 years September 2017Board member September 2014 Andy Pitt 3 years September 2017Board member September 2014 David Straker 3 years September 2017

Director General and Chief ExecutiveSimon Feary

Executive Director, MembershipVince Desmond

Executive Director, Finance & ITOtto Balsiger

Position Elected Current office holder Term of office End of current termChair September 2011 Stephen Coles 3 years ResignedChair May 2012 Steve Warwood 3 years May 2015Vice Chair September 2010 Tom Candlish 3 years ResignedVice Chair April 2014 David Riley 3 years September 2017Member September 2012 Louise Boulter 3 years September 2015Member September 2012 Sue Hopson 3 years ResignedMember September 2011 Anthony Thompson 3 years ResignedMember September 2012 Pete Macartney 3 years September 2015Member September 2012 Sharon Shutler 3 years September 2015Member September 2012 Hilary Smith-Milne 3 years September 2015Member September 2013 Brian Cutter 3 years September 2016Member September 2012 Dr. Nigel Croft 3 years September 2015Member September 2014 Tony Brown 3 years September 2017Member September 2012 Richard Allan 3 years September 2015Member September 2012 Stephen Beggan 3 years September 2015Member September 2012 Janette Large 3 years September 2015Member September 2012 Nick Smith 3 years September 2015Member September 2012 Simon Treharne 3 years September 2015Member September 2013 Bob Woodham 3 years September 2016Member September 2013 Ian Lowrie 3 years September 2016Member May 2014 Geoff Cheetham 3 years ResignedMember September 2014 David Hutchins 3 years September 2017Member September 2014 Roxann Dawson 3 years September 2017Member September 2014 Hannah Murfet 3 years September 2017

Bankers External auditors Investment managers Lloyds TSB Bank Plc haysmacintyre Newton Investment Management Ltd Butler Place Branch Chartered Accountants BNY Mellon Centre PO Box 132 26 Red Lion Square 160 Queen Victoria Street Caxton Street, London London London SW1H 0PR WC1R 4AG ECV4 4LA Scottish Widows Bank Plc Solicitors 67 Morrison Street Russell-Cooke LLP Edinburgh 2 Putney Hill EH3 4YJ London, SW15 6AB

Board of Trustees Senior executive staff

Advisory Council Principal professional advisers

| 50 | Annual Report 2014 | CQI branches & boards CQI branches & boards | Annual Report 2014 | 51 |

Eastern RegionChair: vacantSec: vacantRegional representative: vacantTreasurer: G Seymour

Milton Keynes Chair: A ThompsonSec: P Robinson

North LondonChair: T BrownEvents co-cordinator: K Lane

Chiltern Chair: M BlackmoreSec: J Twomey

Greater Peterborough and Cambridge Chair: D O’ConnellEvents co-ordinator: A Pinkney

Midlands RegionChair: M BrahamRegional representative: J AdshedTreasurer: J Adshead

Leicester and CoventryChair: G BeddoeSec: M Thistlethwaite

WolverhamptonChair: M BrahamSec: Vacant

Birmingham Chair: G HoltSec: B Hughes

Derby and NottinghamChair: S Dewsbury

North Eastern RegionChair: B CutterRegional representative: B CutterTreasurer: B Cutter

TeessideChair: T WaltonSec: A McGlynn

Tyne and WearChair: C Hughes

Northern RegionRegional representative: V Williams

CumbriaChair: J SwainSec: G Edmondson

YorkshireChair: H EversonSec: J Mace

Greater ManchesterChair: J DaviesSec: E Parry

ScotlandChair: S ColesRegional representative: C Campbell

West of ScotlandChair: R RivansSec: J Marven

East of ScotlandChair: A Solway

North of ScotlandChair: C Campbell Sec: K Scott

Northern Ireland RegionChair: D McQuadeSec: S TreharneRegional representative: S TreharneTreasurer: D Montgomery

Northern IrelandChair: D McQuadeSec: S Treharne

South Western RegionChair: vacantSec: vacantTreasurer: vacant

AvonChair: A FumpsonSec: D Ramsay

Devon and CornwallChair: R BloomfieldSec: C Ball

GloucesterChair: Paul SnowdonSec: G Martin

WalesChair: D Lewis

WessexChair: D SmithSec: J Skinner

South Eastern RegionChair: H Bell Regional representative: H Bell Treasurer: vacant

KentChair: T Harrington Sec: J Spain

London South WestChair: C FrateSec: M Geoghegan

SouthernChair: J HowellSec: C Valentyne

Thames ValleyChair: R KirbyTreasurer: T Gould

SurreyChair: vacantSec: H Bell

SussexChair: vacantSec: H Bell

Overseas

Hong KongChair: V Chui Sec: J Lee

CQI branches & boards 2014 –15

Registered Charity No: 259678 Registered Address: 2nd Floor North, Chancery Exchange, 10 Furnival Street, London, EC4A 1AB

www.thecqi.org