47-58 Bastwick Street, London EC1V 3PS, United Kingdom T +44 (0)20 7235 4535 E benfund@istructe.org www.istructe.org
## **Benevolent Fund**
## **Report and Financial Statements**
for the year ended 31 December 2021
A company limited by guarantee No. 3087463 Registered with the Charity Commission for England and Wales No. 1049171 Regulated by the Financial Conduct Authority FRN 718626
## **Benevolent Fund**
## TRUSTEE-DIRECTORS 2021
J M Allen BSc(Hons) CEng FIStructE MICE Chairman I G Hill BEng(Hons) CEng FIStructE MICE F J McGlade BSc CEng FIStructE MICE J D Parsons BSc(Hons) CEng FIStructE MICE Vice-Chairman Dr J M Roberts FREng BEng(Hons) PhD CEng FIStructE FICE M F Ryland BSc(Hons) CEng FIStructE MICE N Westwood BSc(Eng) CEng MIStructE FConsE N C Wheeler BSc(Hons) CEng MIStructE MICE
## ADVISORY COUNCIL 2021
N Ball BSc CEng MIStructE MICE Bedfordshire & Adjoining Counties Regional Group _Vacancy_ Devon & Cornwall Regional Group B Hipwell BEng(Hons) CEng MIStructE FConsE East Anglian Regional Group J M Allen BSc(Hons) CEng FIStructE MICE East Midlands Regional Group I G Hill BEng(Hons) CEng FIStructE MICE Lancashire & Cheshire Regional Group A K Strong CEng FIStructE MICE MCIArb FIHT MCMI Midland Counties Regional Group C Higgins CEng MIStructE Northern Counties Regional Group F J McGlade BSc CEng FIStructE MICE Northern Ireland Regional Group M F Ryland BSc(Hons) CEng FIStructE MICE North Thames Regional Group Mr J G Dunny BEng Tech IEng, AMIStructE, MIEI Republic of Ireland Group A Massie BSc(Eng) CEng MIStructE ACIArb Scottish Regional Group Mr J W Bunce DIC, CEng, FIStructE, FRINA South Eastern Regional Group N J Groves BSc(Hons) MSc CEng MIStructE MCMI Southern Regional Group N Westwood BSc(Eng) CEng MIStructE FConsE Surrey Regional Group L M P Chong BSc(Hons) MSc CEng Peng FIStructE MICE MCIHT Thames Valley Regional Group J D Parsons BSc(Hons) CEng FIStructE MICE Wales Regional Group S B Holmes CEng MIStructE Western Counties Regional Group N C Wheeler BSc(Hons) CEng MIStructE MICE Yorkshire Regional Group
1
## **Benevolent Fund**
## SECRETARY
Dr K MacDonald Bsc(Hons) PhD CSci CChem MRSC
## BENEFITS CONSULTANT
C Pedroza, 53 Ryde Road, Brighton BN2 3EG
## INDEPENDENT EXAMINER
Haysmacintyre LLP, 10 Queen Street Place, London EC4R 1AG
## BANKERS
National Westminster Bank plc, Victoria (A) Branch, PO Box 1357, 169 Victoria Street, London SW1E 5NA
## INVESTMENT MANAGERS
W H Ireland Ltd, 24 Martin Lane, London EC4R 0DR
## SOLICITORS
Withers LLP, 16 Old Bailey, London EC4M 7EG
2
## **Benevolent Fund**
## DIRECTORS AND TRUSTEES’ REPORT
## 31 DECEMBER 2021
## 1 INTRODUCTION
The Trustee-Directors present their report and the financial statements of the Institution of Structural Engineers Benevolent Fund for the year ended 31 December 2021. The accounts which are attached to this report comply with current statutory requirements, the requirements of the Benevolent Fund’s articles of association, and with the requirements of ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102 – Second Edition)’.
## 2 REFERENCE AND ADMINISTRATIVE INFORMATION
The Institution of Structural Engineers Benevolent Fund is constituted as a company limited by guarantee incorporated in England & Wales under registered number 3087463 and is governed by its articles of association.
The Benevolent Fund is registered with the Charity Commission for England & Wales, under registered number 1049171 and is regulated by the Financial Conduct Authority under FRN 718626.
The registered office of the Benevolent Fund is 47-58 Bastwick Street, London EC1V 3PS.
The names of the Trustee-Directors who served during the period are set out on page 1; all remained in office at the date of the approval of this report. No material contracts subsisted during the period in which any Trustee-Director had an interest.
The names of the Secretary and of the principal professional advisers to the Benevolent Fund are set out on page 2.
## 3 ORGANISATIONAL STRUCTURE, GOVERNANCE AND MANAGEMENT
## Constitution
The Benevolent Fund was established in 1936 as an unincorporated association and in 1941 it obtained registration as a friendly society. With the agreement of its members, as well as the relevant statutory authorities, on 2 August 1995 it was incorporated as a company limited by guarantee and on 13 September 1995 it was reregistered as a charity. The Benevolent Fund’s governing document is its articles of association (which were amended by special resolution on 19 July 2018), under which the Trustee-Directors have made rules for the management of the Benevolent Fund.
## Trustee-Directors
The Benevolent Fund’s articles of association provide that there shall be at least three Trustee-Directors. Trustee-Directors are appointed, for three-year terms, at general meetings of the Benevolent Fund, although the Trustee-Directors themselves may also make appointments for one year. Subject to the Benevolent Fund’s articles of association, all decisions are taken by the Trustee-Directors (although the Chairman, with one other Trustee-Director, has limited delegated power to approve emergency grants). On appointment, each Trustee-Director receives an information pack, which, in addition to details about the Benevolent Fund, contains information relating to the roles of trustee and company director; this pack is updated as required.
3
## **Benevolent Fund**
## DIRECTORS AND TRUSTEES’ REPORT (CONTINUED)
## Advisory Council
The articles of association provide for there to be an Advisory Council of representatives of regional groups of the Institution of Structural Engineers: this Council has been established, comprising delegates from 18 of the UK/Republic of Ireland regional groups. The names of the Advisory Council members are given on page 1. As well as visiting applicants and beneficiaries and attending meetings of the Trustee-Directors, the Advisory Council members also contact widows/widowers of members and other potential beneficiaries, undertake local publicity on behalf of the Benevolent Fund and encourage contributions. Neither the Advisory Council members, nor the Trustee-Directors or anyone else acting on behalf of the Benevolent Fund (other than the principal advisers), receives any payment apart from out-of-pocket expenses.
## Sub-committees
The articles of association authorise the Trustee-Directors to appoint sub-committees. The only subcommittee appointed in 2021 was the Investments Sub-Committee, comprising Mr J M Allen, Mr J D Parsons and Mr I G Hill.
## Relationships with other organisations
The Benevolent Fund is deemed a connected charity to the Institution of Structural Engineers as its objects are to provide benefit to members of the Institution, and to former members and dependants of members, who are in need (See Section 4) and as it benefits from administrative services provided by the Institution. The affairs of the Benevolent Fund are conducted from the Institution’s offices and the secretariat is provided by the Institution.
Wherever possible, the Benevolent Fund co-operates with other charities in relation to applicants and beneficiaries. The list of grants on page 22 shows joint beneficiaries of the Institution of Structural Engineers and the Institution of Civil Engineers Benevolent Funds. The Benevolent Fund is a member of the Association of Charitable Organisations.
## Risk
The Trustee-Directors oversee an ongoing assessment of the major risks to which the Benevolent Fund is exposed, in particular those relating to its operations and finances, and are satisfied that systems are in place to manage the Benevolent Fund’s exposure to those risks. The most significant risk is the longterm fall in the value of the Benevolent Fund’s investments, but these are kept under constant review by the Investment Managers and are monitored by the Investments Sub-Committee regularly. Further information pertaining to the impact of the Covid-19 pandemic on the Fund’s income/investments, expenditure and cash flow may be found under Section 5 Financial Review. Another risk is the unexpected loss of the Secretary, a comprehensive procedural manual is regularly updated for use by the Secretary and any alternative support cover should the Secretary not be able, for any reason, to meet the responsibilities of the role.
## 4 OBJECTS, ACTIVITIES AND ACHIEVEMENTS
## Objects
The Benevolent Fund's objects are the prevention or relief of poverty or financial hardship of, and the relief of sickness and the preservation of health among, current or former members of the Institution and their dependents or former dependents, including, but not limited to, the provision of financial assistance, support, education and practical advice.
The fulfilment of these objects is clearly of public benefit.
4
## **Benevolent Fund**
## DIRECTORS AND TRUSTEES’ REPORT (CONTINUED)
## Vision
The vision of the Benevolent Fund is to enable the Institution of Structural Engineers to care for its members, former members and their dependants, in time of need.
## Public Benefit
The Trustee-Directors are satisfied that the aims of the Fund are carried out wholly in pursuit of its charitable aims. Members and non-Institution members benefit from receiving financial assistance in times of need.
The Trustee-Directors have regard to guidance on public benefit published by the Charity Commission, when exercising their powers and duties and where such guidance is relevant. The Trustees have considered the Charity Commission’s general guidance on public benefit and have taken it into account when reviewing the Funds’ aims and objectives and in planning its future activities.
## Activities and achievements
The Benevolent Fund’s principal activity during the year was the administration of funds held for
charitable purposes.
There is no geographical restriction relating to beneficiaries, and the Benevolent Fund assists members
and their dependants both within and beyond the United Kingdom.
The Trustee-Director’s objective for 2021 was to assist between 15 and 30 Institution members, former members and their dependents. During the year the Benevolent Fund helped 20 individuals and distributed £115,836 in grants which enabled them to meet day to day living expenses or specific items of expenditure. A summary of grants paid is given on page 22. Whenever possible, a representative of the Benevolent Fund visits or makes contact with an applicant to establish a personal link with the Benevolent Fund and to make an independent appraisal of the circumstances to guide the TrusteeDirectors in their assessment of need: the Trustee-Directors are grateful to those who undertake this important and sensitive role.
Many members of the Institution, and some firms, support the Benevolent Fund by regular contributions. Some considerately remember the Benevolent Fund in their will. Regional Groups of the Institution also support the Benevolent Fund through fund-raising at events. The Trustee-Directors are most grateful for the generous support of the Benevolent Fund by all concerned.
The Trustee-Directors have formulated a strategic plan, and policies and procedures for the administration of the Benevolent Fund and its assets and for grant-making. These are kept under review.
## 5 FINANCIAL REVIEW
## Trustee-Directors’ responsibilities
The Trustee-Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Trustee-Directors to prepare financial statements for each financial year. In accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), under company law the Trustee-Directors must not approve the financial statements unless they are satisfied that they 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.
5
## **Benevolent Fund**
## DIRECTORS AND TRUSTEES’ REPORT (CONTINUED)
In preparing these financial statements, the Trustee-Directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK 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 business.
The Trustee-Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and 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 Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
This Trustee-Directors’ report has been prepared in accordance with the provisions applicable to
companies entitled to the small companies’ exemption.
Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity's website is the responsibility of the Trustee-Directors. The Trustees-Directors’ responsibility also extends to the ongoing integrity of the financial statements contained therein.
## Independent Examiners
All of the Trustee-Directors as at the date of this report have taken all the steps that they ought to have taken to make themselves aware of any relevant information and to establish that the Independent Examiners are aware of that information. The Trustee-Directors are not aware of any relevant information of which the charity’s Independent Examiners are unaware.
## Review of the year
The Benevolent Fund’s income in the period comprised donations and legacies of £41,317 (2020: £39,001) and investment income of £32,412 (2020: £34,932), a total of £73,729 (2020: £73,933). The overall income was in line with 2020. Grants made, including support costs, totalled £128,560 (2020: £140,886) and cost of raising funds with support costs were £23,454 (2020: £24,007), realising an operational deficit of £78,285 (2020: an operational deficit of £90,960). The value of the Benevolent Fund at the year-end was £1,976,492 (2020: £1,654,463). This mainly comprised investments held to generate income for the payment of grants.
Due to the uncertainty caused by the Covid-19 pandemic, the Trustee-Directors have reviewed the resilience of the Benevolent Fund to continue to fulfil is charitable objects and to meet its targets over the next 12 months. Four key measures have been assessed to determine the Fund’s ability to continue as a “going concern” namely, the value of investments, income, expenditure, and cash flow. Based on a reforecast of the likely activity in each of these areas the Trustee-Directors are satisfied that the Fund continues to meet the ‘going concern’ definition.
6
## **Benevolent Fund**
## DIRECTORS AND TRUSTEES’ REPORT (CONTINUED)
During the year, the investment portfolio has changed/diversified away from travel industries, with increased investment in pharmaceuticals. The investment portfolio continues to be made up of approximately 33% of shares in the banking and financial sectors whereby it should be easier to convert these to cash. A more detailed assessment of the situation is given below with its likely impact.
## Investment policy and performance
As the majority of the Benevolent Fund’s investments are in listed securities, their market value (which is the figure used in the balance sheet) varies according to stock market conditions. At 31 December 2021 the market value of the investments stood at £1,977,953, made up of listed investments of £1,822,319 and cash deposits of £155,634. £141,029 below their historical cost of £2,188,982 (2020: £675,616 below historical cost). Based on the investment value and cash deposits there remains sufficient liquidity within the portfolio to fund additional demands on resources should they be required in the next 12 months. The Trustee-Directors remain confident that the Fund’s Investment Policy remains appropriate to fulfil its objective of long-term growth.
## Income
Income is derived from two principal sources, firstly investments and secondly donations and legacies. Investment income in 2021 was £32,412 representing a decrease of 7% over 2020 levels. Donations and legacies in 2021 were £41,317, 6% higher than the 2020 figure of £39,001.
The Trustee-Directors have reviewed investment income for 2022 and have been assured that the dividend income from the investments will be significantly higher than in 2021. The current estimate is £50,000.
Donation income is unlikely to be significantly affected by Covid-19 and much of the expected donations for 2022 (£22,652) have already been received as at 31 March 2022. Furthermore, donations to the Fund tend to be resilient in times of recession – as evidenced in 2009 and 2010 when the average donation, over the two years remained at £36,424.
## Expenditure
Expenditure mainly represents grants to beneficiaries. The total varies each year, and in 2021 grant expenditure was £128,560, 9% lower than 2020. The support and governance costs included in this figure amounted to £22,553.
No commitment to payments is made beyond a 12-month period and other than the grant, support and governance costs stated above the Fund has no overheads or financial commitments.
## Cash Flow
Cash, cash equivalents and cash held with investment managers at the end of 2021 was £183,074 (see note 13). Combined with the reforecast of income for 2022 of £110,000 and reforecast expenditure of £143,000 there will be a need to release assets in the investment portfolio to the value of circa £40,000. The current value of the Fund’s investment portfolio stands at £1,977,953 and as such the Fund is very well placed to continue its operations against a background of increased expenditure and reduced income.
7
## **Benevolent Fund**
## DIRECTORS AND TRUSTEES’ REPORT (CONTINUED)
## Investment policy and performance
Under the articles of association, the Trustee-Directors have adopted rules governing the investment of funds. The Trustee-Directors have approved a detailed investment policy, in accordance with which the main objective of the portfolio is long-term growth in income and capital; the Benevolent Fund accepts medium risk in this aim. Activity in the portfolio is monitored by the Investments SubCommittee, which receives detailed reports from the investment managers (W H Ireland Ltd), who are represented at its twice-yearly meetings.
## Reserves policy
The Institution of Structural Engineers Benevolent Fund does not seek funding from outside the membership of the Institution of Structural Engineers. Approximately 56% of the Fund’s income came from donations made with Institution subscriptions, one-off donations and bequests.
Legacy income, in particular, is very uncertain. The levels of dividends, interest received, and inflation tend to fluctuate. In order to safeguard the provision of grants to current and future beneficiaries the Trustees have agreed a target for reserves of between £2.25m to £2.7m with the position relative to the target reviewed at each Trustee meeting. As at 31 December 2021 the Fund held reserves of £1.98m, still below target. The fund had free reserves of £154k at 31 December 2021, the remainder of its reserves being investments made for the purposes of generating income to pay grants to beneficiaries. Due to the impact of Covid-19 on the value of shares, the amount of free reserves has weakened. Although not achieved at the end of 2021, the recent valuation and increase in investment performance of the investments suggest that the minimum reserves level of £2.25m is achievable by the end of 2022, although this is not guaranteed as it depends on the performance of the stock market. Based on the recent analysis of the fund’s future financial position, there will be sufficient cash resources available to meet its financial obligations as they fall due.
## Grant-making policies
Under policies adopted by the Trustee-Directors, each case is considered on its merits (that is, there is no scale grant); grants are not made to assist in the professional development of Institution members; and grants are not, normally, made to student members of the Institution, or to dependants or former dependants of Institution members who are either their children aged 21 or over or legally separated or divorced from the member, or for the purpose of funding private health care, or totalling more than £14,000 to any individual beneficiary (£21,000 for a couple, £6,000 for first dependent, £3,000 for second dependent) in any year. Furthermore, payments are not made that would reduce a beneficiary’s entitlement to public funding (each application is reviewed by the Benefits Consultant). If the Benevolent Fund settles debts, it will not normally pay any subsequent debts. Where applicable, the Benevolent Fund pays in respect of a beneficiary a sum to the Institution in respect of their annual subscription and Engineering Council UK fee.
## Fund raising
Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. Although the Benevolent Fund does not undertake widespread fundraising from the general public, the legislation defines fund raising as ‘soliciting or otherwise procuring money or other property for charitable purposes.’ Such amounts are presented in our accounts as ‘Donations and legacies’.
In relation to the above the Trustee-Directors confirm that all solicitations are managed internally, without involvement of commercial participators or professional fund-raisers, or third parties. The day-to-day management of all income generation is delegated to the Secretary and members of the Advisory Council, who are accountable to the Trustee-Directors.
8
The Institution of
Structural=ngineers
Benevolent Fund
DIRECTORS AND TRUSTEES. REPORT (CONTINUED
The Benevolent Fund is not tound by any undertaknng to be bound to any regulatory scheme and
the Trustee-Direclors do not consider it necessary to compty with any vduntary of praCte.
No complaints have been received in TekIn to furMlrai&ng &tivilies.
Charlty Governance C(Kle
The Trustee•Directors have consKlered Charity (knemance C(vJe for $ffo118r charities and have
in general adopled its principks.
The Twstee-Direclors of the Fund and the rrembers of rts Advisory Council a drawn from the
Memr$hIp of the Institution of Structural Engineers. Currentty the diversity of this group Is not as
wide, or as representative of the Inskntutn'S meMrshIp. a$ the Trustee-Dir8ctors wish, and they
intend lo take steps to increase its dwersty when opportuni1 am available.
Some Trustee-Directors have served lor longer than ten years but h3ving revrewed this il is felt to be
appropriate", this wlll be kept under reviv*.
PLANS FOR FUTURE PERIODS
ile keeping the Benevolent Fund's policies. prc¢8dur8s and a¢bviiies under review, and ensuring
that it operates effe¢tNeW and efficienty. the Trustee-Direthrs currentty have no plans for major
long-term change. Whilst the Covid-19 pandemic has to changes in Income the numb•r of
applications recewed in 2021 and the number of grants awarded has remained relativety unchan9ed.
Forecast Chare5 are outlined in Secthjn 5- Re¥ of Ihe year. The Trustee-Directors will conttnue
to promote the Benevolent Fund to potsjntial beneficiarie$, including outside the United KJn9dom
where some 35% of Institut members are Ic¢ated.
APPROVAL
Thèse financial ststements have been prepared in accordance with the provisions applicable to
companw entitled to the sffo11 compan, 8xempts'on.
Approved by the Chaimwn. on behalf of the Board.
Allen
Trustee-Director
Dale..
2022
## **Benevolent Fund**
Independent Examiner’s report to the members of The Institution of Structural Engineers Benevolent Fund
I report to the Trustees on my examination of the accounts of The Institution of Structural Engineers Benevolent Fund for the year ended 31 December 2021 which are set out on pages 12 to 21.
## Respective responsibilities of Trustees and examiner
The Trustees are responsible for the preparation of the accounts in accordance with the requirements of the Charities Act 2011 (“the 2011 Act”). The Trustees are satisfied that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and have chosen instead to have an independent examination.
I report in respect of my examination of the Trust’s accounts as carried out under section 44 (1) (c) of the 2005 Act and section 145 of the 2011 Act. In carrying out my examination I have followed the requirements of the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.
## Independent examiner’s statement
I can confirm that I am qualified to undertake the examination because I am a registered member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies.
I have completed my examination. I confirm that no matters have come to my attention giving me cause to believe that in any material respect:
1. accounting records were not kept in respect of the charity as required by section 130 of the 2011 Act; or
2. the accounts do not accord with those records; or
3. the accounts do not comply with the applicable requirements concerning the form and content of accounts set out in the Charities (Accounts and Reports) Regulations 2008 other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination.
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Thomas Wilson, FCA 10 Queen Street Place London EC4R 1AG
Date: 15 September 2022
10
## **Benevolent Fund**
## STATEMENT OF FINANCIAL ACTIVITIES
FOR THE YEAR ENDED 31 DECEMBER 2021
|**Notes**
**Income from:**
Donations and legacies
3
Investment income
4
**Total income**
**Expenditure on:**
**Costs of raising funds**
Fundraising and publicity
**Expenditure on Charitable activities**
Grants
12
**Total expenditure**
Net expenditure before gains and losses on investments
Gains / (losses) on investments
9
Net movement in funds for the year
Total funds brought forward
Total funds carried forward|**Total Unrestricted Funds**
**2021**
**2020**
**£**
**£**
41,317
39,001
32,412
34,932
73,729
73,933
23,454
24,007
128,560
140,886
152,014
164,893
(78,285)
(90,960)
400,314
(1,020,767)
322,029
(1,111,727)
1,654,463
2,766,190
1,976,492
1,654,463|**Total Unrestricted Funds**
**2021**
**2020**
**£**
**£**
41,317
39,001
32,412
34,932
73,729
73,933
23,454
24,007
128,560
140,886
152,014
164,893
(78,285)
(90,960)
400,314
(1,020,767)
322,029
(1,111,727)
1,654,463
2,766,190
1,976,492
1,654,463|
|---|---|---|
|||73,933|
|||24,007
140,886|
|||164,893|
|||(90,960)
(1,020,767)|
|||(1,111,727)
2,766,190|
|||1,654,463|
All amounts relate to continuing activities. All recognised gains and losses are included in the Statement of Financial Activities.
11
The Institution of
Structural=ngineers
Benevolent Fund
BALANCE SHEEr
31 Dgcgmber 2021
Company nurnber 3087463
20x1
FLKED ASSEf8
InvestMts
1.977,953
1643.781
CURRENT ASSETS
Debtors due wthin one year
Debtors dut great8r tha) year
Cash al bank and in h8nd
10
io
21,432
87,670
9,754
91.670
28,395
136,542
CREDITORS
¥xJnts f811iig due thi) (Th
11
1138,OJ31
1119,1381
NET CURRENT ASSETS
(1J611
10,681
TOTAL ASSETS LESS CURRENT UA8ILrriES
AND NEf ASSET8
INCOME FUND
Unro8trlcted funds..
G6n8rd frJnd wjrplubes
1,970.492
1,854,482
Th8 Truste88 hm Wepar arts 7hilh 398 ofthe Corn* 2W6 8ThJ socb
138ofthe Charftt88 Act 2011. These aLunts are in the sFeJ81 ol Pwt15
ofthe compan relabnglo 5m*l ccThpanles and LI)n8d*th6nu2J *>xwntsTequire•J bylho Ccrfnwi88
Act and are ts arculab.on to mombers oftha
tohalfol Ihe board..
n Ajlen
The notes on p&3e$ 14 to 20 knm w1of1l slakrrmts.
12
## **Benevolent Fund**
## **STATEMENT OF CASH FLOWS AND RELATED NOTES 31 DECEMBER 2021**
|**Notes**
**Cash flows from operating activities**
**Net movement in funds for the financial year**
Adjustments for:
Net (gains) / losses recognised in statement of financial activities
Net movement on cash in portfolio 9
Dividend income from fixed and current asset investments 4
(Increase) / decrease in debtors
Increase in creditors
**Net cash used from operating activities**
**Cash flows from investing activities**
Dividends received on fixed and current asset investments 4
Purchase of current asset investments
9
Sale of current asset investments
**Net cash used from investing activities**
**Net decrease in cash and cash equivalents**
Cash and cash equivalents at beginning of year
**Cash and cash equivalents at end of year**|**2021**
**£**
322,029
(400,314)
(135,850)
(32,412)
(7,678)
18,865
**(235,360)**
32,412
(732,726)
934,719
**234,405**
(955)
28,395
**27,440**|**2020**
**£**
(1,111,727)
1,020,767
152,400
(34,932)
25,884
70,026|
|---|---|---|
|||**122,418**|
|||34,932
(378,270)
200,413|
|||**(142,925)**|
|||(20,507)
48,902|
|||**28,395**|
13
## **Benevolent Fund**
## **NOTES ON THE FINANCIAL STATEMENTS 31 DECEMBER 2021**
## **1. ACCOUNTING POLICIES**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) - (Charities SORP (FRS 102 - Second Edition)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
The Institution of Structural Engineers Benevolent Fund meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).
Due to the Covid-19 pandemic the Fund has reviewed its income and expenditure and the impact on cash flow to May 2023. The mix of investments within the investment portfolio changed during the year. The purpose of the change was to improve both the value of the investments and the dividend yield. This has largely been successful as the value of the portfolio has increased, and the income from dividends is predicted to rise in 2022. The Trustee-Directors are satisfied that based on the work done that the preparation of the accounts on a going concern basis is appropriate. This conclusion has been mostly formed based on the high level of liquid funds available compared to the annual spend.
## (a) **Income**
## **Donations, gifts, and legacies**
Donations, gifts, and legacies are included in the financial statements when; the Benevolent Fund has entitlement to the funds, there is a probability that the Benevolent Fund will receive economic benefit, and the monetary value can be measured.
## **Investment income**
Investment income, including any tax recoverable thereon, is included in the financial statements in the year in which it is receivable.
## (b) **Expenditure**
Expenditure is incorporated in the financial statements as incurred, and includes irrecoverable Value Added Tax.
Grants are incorporated when notified to beneficiaries. Any commitments payable at a later date are included in the balance sheet as creditors. Payments comprise grants awarded to members and their families. Any grants which are subsequently repaid are treated as donations.
## **Support costs**
These costs represent the general administration in supporting the operational activities for which the charity is responsible.
## **Governance costs**
These costs include the costs of governance arrangements which relate to the general running of the charity as opposed to the direct management functions inherent in the charitable activities. This includes external audit costs and legal fees.
(c) **Investments**
Investments are shown at market value. Unrealised gains and losses are incorporated within the fund balance and are identified as unrealised. Market value is based on bid prices for listed investments.
14
## **Benevolent Fund**
## **NOTES ON THE FINANCIAL STATEMENTS 31 DECEMBER 2021 (CONTINUED)**
d) **Loans to beneficiaries**
Loans to beneficiaries are recognised and measured at the amount paid, with the carrying amount adjusted in subsequent years to reflect repayments and any impairments.
The Benevolent Fund does not charge interest on its loans to beneficiaries.
## **2. NET INCOME AND NET MOVEMENT IN FUNDS**
The net income and net movement in funds are wholly attributable to the company’s activity of the administration of funds held for charitable purposes and arise mainly within the United Kingdom.
## **3. INCOME FROM DONATIONS AND LEGACIES**
Donations in the year were received from:
|Regional Groups
Tax recovery
Individual donations
**Total**|**2021**
**£**
255
-
41,062
**41,317**|**2020**
**£**
957
1,916
36,128|
|---|---|---|
|||**39,001**|
## **4. INVESTMENT INCOME**
Investment income for the year is derived from:
|Listed investments including government securities|**2021**
**£**
32,412
**32,412**|**2020**
**£**
34,932|
|---|---|---|
|||**34,932**|
## **5. SUPPORT AND GOVERNANCE COSTS**
|**Basis of allocation**
Management & administration
Expenditure ratios
Governance
Expenditure ratios
**Total**|**Fundraising &**
**Publicity**
**Grants**
**Total**
**£**
**£**
**£**
3,424
18,769
22,193
690
3,784
4,474|
|---|---|
||**4,114**
**22,553**
**26,667**|
15
## **Benevolent Fund**
## **NOTES ON THE FINANCIAL STATEMENTS 31 DECEMBER 2021 (CONTINUED)**
## **COMPARATIVE FIGURES FOR 2020**
|||**Fundraising &**|||
|---|---|---|---|---|
||**Basis of allocation**|**Publicity**|**Grants**|**Total**|
|||**£**|**£**|**£**|
|Management & administration|Expenditure ratios|3,820|22,419|26,239|
|Governance|Expenditure ratios|200|1,176|1,376|
|**Total**||**4,020**|**23,595**|**27,615**|
All grants issued are to individuals with links to the Institution of Structural Engineers, and who require financial assistance.
## **6. NET INCOME FOR THE YEAR**
Net income is stated after charging:
|Net income is stated after charging:|||
|---|---|---|
||**2021**|**2020**|
||**£**|**£**|
|Auditors/Independent Examiner’s’ remuneration|1,800|1,200|
## **7. DIRECTORS AND TRUSTEES**
No director received any remuneration during the year (2020 – none).
During the year 9 directors were reimbursed travelling expenses incurred whilst engaged on the business of the charity amounting to £Nil (2020 – 9 directors were reimbursed £176).
The Benevolent Fund does not employ any staff, and there is no Senior Management remuneration.
## **8. RELATED PARTY TRANSACTIONS**
During the year the Fund had the following transactions with the Institution of Structural Engineers.
||**2021**|**2020**|
|---|---|---|
||**£**|**£**|
|**Income**|||
|Charitable donations|40,373|35,875|
|**Expenditure**|||
|Management charge|14,400|14,400|
16
## **Benevolent Fund**
## **NOTES ON THE FINANCIAL STATEMENTS 31 DECEMBER 2021 (CONTINUED)**
## **9. INVESTMENTS**
|Carrying value at the beginning of year
Add: additions to investments at cost
Less: disposals at carrying value
Net gain / (loss) on investments
Gain / (loss) on disposals
Net movement in dividends received from listed companies
Cash movement
**Carrying value at the end of the year**
Investments, all of which are in the UK, are made up of:
Listed
Cash
**Carrying value at the end of the year**
**The historical cost of fixed asset investment is:**|**2021**
**£**
1,643,781
732,726
(872,980)
400,314
(66,869)
5,130
135,850
**1,977,953**
**2021**
**£**
1,822,319
155,634
**1,977,953**
**2,118,982**||**2020**
**£**
2,639,092
378,270
(239,080)
(1,020,767)
47,768
(9,102)
(152,400)|
|---|---|---|---|
||||**1,643,781**|
||||**2020**
**£**
1,629,127
14,654|
||||**1,643,781**|
||||**2,360,369**|
The listed investments and cash deposits were managed on behalf of the company by WH Ireland, on a discretionary basis and include direct investment in listed investments and indirect investment through unit and investment trusts.
Cash deposits within the portfolio are held on overnight deposit.
Investments within the portfolio which amount to more than 5% of the total values are:
## **Listed investments**
|2,000 AstraZeneca PLC
45,000 Barclays PLC
67,000 BT Group GBP0.025
6,000 Carnival PLC ORD USD 1.66
16,596 EasyJet ORD GBP 0.27285714
67,000 Fidelity European Trust PLC
10,000 GlaxoSmithKline PLC
170,000 International Consolidated Airlines Group
225,000 Lloyds Banking Group PLC
49,000 NatWest Group PLC
6,000 Prudential PLC
85,733 Rolls-Royce Holdings PLC|**2021**
**£**
173,560
-
113,598
-
-
228,135
160,660
271,660
107,550
110,593
-
105,349
1,271,105|**2020**
**£**
-
98,276
120,347
90,905
141,100
-
-
271,660
163,980
177,457
119,210
117,628|
|---|---|---|
|||1,300,653|
17
## **Benevolent Fund**
**NOTES ON THE FINANCIAL STATEMENTS 31 DECEMBER 2021 (CONTINUED)**
|Other listed investments individually under 5%
Cash
**Investment Management Fees:**
Amounts paid to manage investments|551,214
155,634
**1,977,953**
**2021**
**£**
16,142
**16,142**|328,564
14,654|
|---|---|---|
|||**1,643,781**|
|||**2020**
**£**
16,544|
|||**16,544**|
Investment management fees appear in the Statement of Financial Activities under Other Costs
## **10. DEBTORS**
|**Amounts due within 1 year:**
Other debtors
**Amounts due after 1 year:**
Secured loans to beneficiaries|**2021**
**£**
21,432
87,670
**109,102**|**2020**
**£**
9,754
91,670|
|---|---|---|
|||**101,424**|
The secured loans to beneficiaries were advanced on the security of a fixed charge over freehold property. The loans are repayable when vacant possession of the properties is available. The Benevolent Fund does not charge interest on these loans.
## **11. CREDITORS**
|**Amounts falling due within 1 year:**
Other creditors
Management charge due to Institution of Structural Engineers
Grant creditors – secured|**2021**
**£**
13,609
14,400
109,994
**138,003**|**2020**
**£**
5,769
14,400
98,969|
|---|---|---|
|||**119,138**|
18
## **Benevolent Fund**
## **NOTES ON THE FINANCIAL STATEMENTS**
## **31 DECEMBER 2020 (CONTINUED)**
## **12. GRANTS 2021**
|Grants committed to during 2020 and paid during 2021
308
Graduate, aged 72*
310
Widow of Fellow, aged 79
312
Member, aged 83, married
342
Widow of Fellow, aged 83*
355
Fellow, aged 86, widowed
358
Fellow, aged 92, married
362
Fellow, aged 96, married*
367
Technician, aged 64, married
369
Fellow, aged 82, married
370
Fellow, aged 75, married
371
Former member, aged 46*
377
Graduate, aged 66, married*
379
Former member, aged 79, married
382
Member, aged 53, married
383
Member, aged 64, married*
385
Graduate, aged 40, married with 2 children*
387
Graduate, aged 30
389
Graduate, aged 40, married with 2 children*
391
Graduate, aged 36
392
Graduate, aged 36
396
Graduate, aged 33, married
Total grants paid during 2021
Grants committed to during 2021 and due to be paid during 2022
Allocated support costs|**£**
(44,500)
First assisted
1,600
2010
5,350
2010
4,989
2010
3,162
2014
3,433
2016
7,700
2017
4,000
2017
10,872
2018
8,490
2018
8,600
2018
621
2019
3,550
2019
7,200
2020
15,106
2020
1,200
2020
2,100
2020
172
2020
6,300
2020
7,537
2021
4,500
2021
8,950
2021
115,432
35,075
22,553
128,560|
|---|---|
*Joint beneficiary of the Institution of Structural Engineers and the Institution of Civil Engineers Benevolent Funds.
19
## **Benevolent Fund**
## **NOTES ON THE FINANCIAL STATEMENTS 31 DECEMBER 2021 (CONTINUED)**
## **13. Analysis of changes in net debt**
|Cash
**Total**|**At the 1st**
**January 2021**
**£**
28,395
28,395
**28,395**|**Cash flows**
**£**
(955)
(955)
**(955)**|**Other non-**
**cash changes**
**£**
-
-
**-**|**At 31st**
**December 2021**
**£**
27,440|
|---|---|---|---|---|
|||||27,440|
||||||
|||||**27,440**|
20