Significant improvements to the CSP’s balance sheet highlight underlying volatility
Membership growth was the primary driver of the CSP’s financial performance in 2022, as an increase to 63,803 members (2021: 63,107) led to income of £21.2m, up £1.5m on 2021. The CSP returned a surplus before tax of £2.4m, with high inflation contributing to costs of £19m, up £1m on the previous year.
Council has been looking to generate a surplus each year in order to improve the CSP’s net asset position (everything the CSP owns less everything we owe). The CSP’s net assets were valued at £19.3m at 31 December 2022, up from a net liability of £0.8m at the end of 2021. The improvement is mostly caused by a £22m reduction in the CSP’s pension valuation to a £7.7m liability.
This remains a highly volatile part of the CSP’s balance sheet. In 2022 the CSP agreed an updated recovery plan over 12 years in order to ensure the CSP is able to meet this long term liability as it falls due.
Council has been focussed on improving the CSP’s organisational sustainability in all areas, with a financial strategy committed to improving the CSP’s reserve position and making best use of our assets.
Reserves are critical to any organisation to enable it to weather economic uncertainty, innovate, and manage organisational risks.
The value of the CSP’s Bedford Row estate declined by £1.8m to £7.6m as the commercial property market in London experienced uncertainties brought about by a combination of economic and societal factors. Bedford Row is currently on the market for sale as the CSP has downsized to more modern premises and staff have a continued focus on supporting our members wherever they work.
Income and expenditure account for the year ended 31 December 2022
2022 £000 | 2021* £000 | |
| Income for services and products | 21,150 | 19,659 |
| Investment income | 335 | 100 |
| Income from furlough | 0 | 90 |
| Operating expenses | (17,553) | |
| Pension finance charge | (539) | (482) |
| Payments to associated charities | - | - |
| Operating surplus | 2,444 | 1,814 |
Income where has it all come from?
2022 £000 | 2021* £000 | |
| Subscriptions | 20,189 | 18,880 |
| Income from journals | 427 | 502 |
| Income for educational purposes | 89 | 159 |
| Events | 0 | 87 |
| Miscellaneous including grants | 445 | 31 |
| Total income | 21,150 | 19,659 |
Expenditure what has it all cost?
| Area of activity | 2022 £000 | 2021* £000 |
| Practice and Development | 4,857 | 4,750 |
| Employment Relations & Union Services | 2,998 | 2,640 |
| Journals | 1,017 | 910 |
| Strategy, Policy and Engagement | 4,224 | 3,270 |
| Events | 176 | 241 |
| Administration and Finance** | 5,769 | 6,224 |
| Total expenditure | 19,041 | 18,035 |
Balance sheet as at 31 December 2022
2022 £000 | 2021* £000 | |
| Fixed assets | ||
| Tangible and intangible assets*** | 7,937 | 9,773 |
| Investments | 19,590 | 19,479 |
| Current assets | ||
| Debtors and prepayments | 871 | 1,905 |
| Cash at bank and in hand | 931 | 1,332 |
| Creditors: amounts falling due within one year | (2,258) | (3,482) |
| Net current assets | (456) | (245) |
| Total assets less current liabilities | 27,071 | 26,007 |
| Defined benefit pension scheme liability | (7,729) | (29,832) |
| Net assets excluding pension liability | 29,803 | 26,960 |
| Defined benefit pension scheme liability | (29,832) | (37,176) |
| Net assets/(deficit) including pension liability | 19,342 | (825) |
* 2021 restated accounts
** Also includes HR, governance, business rates, insurance, depreciation and costs associated with the pension scheme
*** Includes the CSP’s owned office building with a market value of £7.6m at 31 December 2022
Number of subscribers: 1
Log in to comment and read comments that have been added