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2022-12-31-accounts

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 2022

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

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.

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

BENEFITS CONSULTANT

C Pedroza, 53 Ryde Road, Brighton BN2 3EG

TRUSTEE-DIRECTORS 2022

J M Allen BSc(Hons) CEng FIStructE MICE Chair I G Hill BEng(Hons) CEng FIStructE MICE F J McGlade BSc CEng FIStructE MICE J D Parsons BSc(Hons) CEng FIStructE MICE Vice-Chair 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 2022

Vacancy

Vacancy

B Hipwell BEng(Hons) CEng MIStructE FConsE J M Allen BSc(Hons) CEng FIStructE MICE

Bedfordshire & Adjoining Counties Regional Group Devon & Cornwall Regional Group East Anglian Regional Group East Midlands Regional Group

1

Benevolent Fund

I G Hill BEng(Hons) CEng FIStructE MICE

Vacancy

C Higgins CEng MIStructE F J McGlade BSc CEng FIStructE MICE M F Ryland BSc(Hons) CEng FIStructE MICE Mr J G Dunny BEng Tech IEng, AMIStructE, MIEI A Massie BSc(Eng) CEng MIStructE ACIArb Mr J W Bunce DIC, CEng, FIStructE, FRINA N J Groves BSc(Hons) MSc CEng MIStructE MCMI N Westwood BSc(Eng) CEng MIStructE FConsE L M P Chong BSc(Hons) MSc CEng Peng FIStructE MICE MCIHT J D Parsons BSc(Hons) CEng FIStructE MICE S B Holmes CEng MIStructE N C Wheeler BSc(Hons) CEng MIStructE MICE T S F Lok BSc(Hons) PhD CEng PEng FIStructE

Lancashire & Cheshire Regional Group Midland Counties Regional Group Northern Counties Regional Group Northern Ireland Regional Group North Thames Regional Group Republic of Ireland Group Scottish Regional Group South Eastern Regional Group Southern Regional Group Surrey Regional Group Thames Valley Regional Group Wales Regional Group Western Counties Regional Group Yorkshire Regional Group Singapore Regional Group

SECRETARY

Dr K MacDonald Bsc(Hons) PhD CSci CChem MRSC

2

Benevolent Fund

DIRECTORS AND TRUSTEES’ REPORT 31 DECEMBER 2022

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 2022. 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 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 1.

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 TrusteeDirectors. 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 TrusteeDirectors (although the Chair, either singularly or 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.

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 19 of the Institutions 32 UK and international regional groups. The names of the Advisory Council members are given on pages 1 and 2. As well as contacting applicants and beneficiaries and attending meetings of the Trustee-Directors, the Advisory Council members also 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.

3

Benevolent Fund

DIRECTORS AND TRUSTEES’ REPORT (CONTINUED)

Sub-committees

The articles of association authorise the Trustee-Directors to appoint sub-committees. The only subcommittee appointed in 2022 was the Investments Sub-Committee, comprising Mr J M Allen, Mr J D Parsons and Mr I G Hill.

Relationships with other organisations

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.

In 2020 the Benevolent Fund entered into a partnership agreement with Anxiety UK whereby members/former members and dependents can quickly access support for anxiety and anxiety related depression from clinical therapists.

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 long-term 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. 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.

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.

4

Benevolent Fund

DIRECTORS AND TRUSTEES’ REPORT (CONTINUED)

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 2022 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 £82,918 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 18. 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 Trustee-Directors in their assessment of need: the Trustee-Directors are grateful to those who undertake this important and sensitive role.

Many members of the Institution 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 regular 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. In preparing these financial statements, the Trustee-Directors are required to:

5

Benevolent Fund

DIRECTORS AND TRUSTEES’ REPORT (CONTINUED)

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 £58,324 (2021: £41,317) and investment income of £52,524 (2021: £32,412), a total of £110,848 (2021: £73,729). Grants made, including support costs, totalled £77,760 (2021: £128,560) and cost of raising funds with support costs were £27,085 (2021: £23,454), realising an operational surplus of £6,003 (2021: an operational deficit of £78,285). The value of the Benevolent Fund at the year-end was £1,821,898 (2021: £1,976,492). This mainly comprised investments held to generate income for the payment of grants.

The investment portfolio is made up of approximately 70% of shares in equities, with UK equities accounting for half, and the remainder is spread over a range of American, Japanese, Emerging Market, Global and European sectors. The main change from 2021 is the increase in the number of entities in which the fund holds investments. The number of entities in which the Fund holds more than 5% in value of the total portfolio has dropped from eight at 31[st] December 2021 to one at 31[st] December 2022. 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[st] December 2022 the market value of the investments stood at £1,760,334, made up of listed investments of £1,706,930 and cash deposits of £53,404. £219,291 below their historical cost of £1,979,625 (2021: £141,029 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.

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.

6

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 65% of the Fund’s income came from dividends 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[st] December 2022 the Fund held reserves of £1.82m, still below target. The fund had free reserves of £62k at 31[st] December 2022, the remainder of its reserves being investments made for the purposes of generating income to pay grants to beneficiaries. 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.

The Benevolent Fund is not required by any undertaking to be bound to any regulatory scheme and the Trustee-Directors do not consider it necessary to comply with any voluntary code of practice.

7

Benevolent Fund

DIRECTORS AND TRUSTEES’ REPORT (CONTINUED)

No complaints have been received in relation to fundraising activities.

Charity Governance Code

The Trustee-Directors have considered the Charity Governance Code for smaller charities and have in general adopted its principles.

The Trustee-Directors of the Fund and the members of its Advisory Council are drawn from the membership of the Institution of Structural Engineers. Currently the diversity of this group is not as wide, or as representative of the Institution’s membership, as the Trustee-Directors wish, and they intend to take steps to increase its diversity when opportunities are available.

Some Trustee-Directors have served for longer than ten years but having reviewed this it is felt to be appropriate; this will be kept under review.

6 PLANS FOR FUTURE PERIODS

While keeping the Benevolent Fund’s policies, procedures and activities under review, and ensuring that it operates effectively and efficiently, the Trustee-Directors currently have no plans for major long-term change. Whilst the Covid-19 pandemic and global economic crisis has led to changes in income, the number of applications received in 2022 and the number of grants awarded has remained relatively unchanged.

Forecast changes are outlined in Section 5 – Review of the year. The Trustee-Directors will continue to promote the Benevolent Fund to potential beneficiaries, including outside the United Kingdom where some 35% of Institution members are located.

7 APPROVAL

These financial statements have been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

Approved by the Chair, on behalf of the Board.

J M Allen

John Allen Trustee-Director

Date: 11 September 2023

8

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 2022 which are set out on pages 10 to 18.

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: 12/09/23

9

Benevolent Fund

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 DECEMBER 2022

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
2022
2021
£
£
58,324
41,317
52,524
32,412
110,848
73,729
27,085
23,454
77,760
128,560
104,845
152,014
6,003
(78,285)
(160,597)
400,314
(154,594)
322,029
1,976,492
1,654,463
1,821,898
1,976,492		 Total Unrestricted Funds
2022
2021
£
£
58,324
41,317
52,524
32,412
110,848
73,729
27,085
23,454
77,760
128,560
104,845
152,014
6,003
(78,285)
(160,597)
400,314
(154,594)
322,029
1,976,492
1,654,463
1,821,898
1,976,492
73,729
23,454
128,560
152,014
(78,285)
400,314
322,029
1,654,463
1,976,492

All amounts relate to continuing activities.

All recognised gains and losses are included in the Statement of Financial Activities.

10

Benevolent Fund

BALANCE SHEET 31 December 2022 Company number 3087463

Notes
FIXED ASSETS
Investments
9
CURRENT ASSETS
Debtors due within one year
10
Debtors due greater than one year
10
Cash at bank and in hand
CREDITORS
Amounts falling due within one year 11
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
AND NET ASSETS
INCOME FUND
Unrestricted funds:
General fund surpluses and gains		 2022
£
1,760,334
20,912
86,546
19,963
127,421
(65,857)
61,564
1,821,898
1,821,898
1,821,898		 2021
£
1,977,953
21,432
87,670
27,440
136,542
(138,003)
(1,461)
1,976,492
1,976,492
1,976,492

The Trustees have prepared accounts in accordance with section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accounts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for circulation to members of the company.

For the year ending, 31 December 2022, the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors’ responsibilities,

On behalf of the board:

J M Allen

John Allen Trustee - Director

These financial statements were approved by the Board on 11 September 2023 and authorised for issue.

The notes on pages 12 to 18 form part of these financial statements.

11

Benevolent Fund

STATEMENT OF CASH FLOWS AND RELATED NOTES 31 DECEMBER 2022

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
Decrease / (increase) in debtors
(Decrease) / 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		 2022
£
(154,594)
160,597
106,960
(52,524)
1,644
(72,146)
(10,063)
52,524
(1,024,221)
974,283
2,586
(7,477)
27,440
19,963		 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

12

Benevolent Fund

NOTES ON THE FINANCIAL STATEMENTS 31 DECEMBER 2022

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).

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. 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.

13

Benevolent Fund

NOTES ON THE FINANCIAL STATEMENTS

31 DECEMBER 2022 (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
Individual donations
Legacies
Total		 2022
£
2,096
32,594
23,634
58,324		 2021
£
255
41,062
-
41,317

4. INVESTMENT INCOME

Investment income for the year is derived from:

Listed investments including government securities
5.
SUPPORT AND GOVERNANCE COSTS
Basis of allocation
Management & administration
Expenditure ratios
Governance
Expenditure ratios
Total		 Fundraising &
Publicity
£
5,139
1,389		 2022
£
52,524
52,524
Grants
£
14,755
3,987		 2021
£
32,412
32,412
Total
£
19,894
5,376
6,528 18,742 25,270

14

Benevolent Fund

NOTES ON THE FINANCIAL STATEMENTS 31 DECEMBER 2022 (CONTINUED)

COMPARATIVE FIGURES FOR 2021

Fundraising &
Basis of allocation Publicity Grants Total
£ £ £
Management & administration Expenditure ratios 3,424 18,769 22,193
Governance Expenditure ratios 690 3,784 4,474
Total 4,114 22,553 26,667

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:

2022 2021
£ £
Independent Examiner’s’ remuneration 1,980 1,800

7. DIRECTORS AND TRUSTEES

No director received any remuneration during the year (2021 – none).

During the year 9 directors were reimbursed travelling expenses incurred whilst engaged on the business of the charity amounting to £Nil (2021 – 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.

2022 2021
£ £
Income
Charitable donations 34,690 40,373
Expenditure
Management charge 15,120 14,400

15

Benevolent Fund

NOTES ON THE FINANCIAL STATEMENTS 31 DECEMBER 2022 (CONTINUED)

9. INVESTMENTS

Carrying value at the beginning of year
Add: additions to investments at cost
Less: disposals at carrying value
Net (loss) / gain on investments
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:		 2022
£
1,977,953
1,024,221
(973,209)
(160,597)
(5,804)
4,730
(106,960)
1,760,334
2022
£
1,706.930
53,404
1,760,334
1,979,625		 2021
£
1,643,781
732,726
(872,980)
400,314
(66,869)
5,131
135,850
1,977,953
2021
£
1,822,319
155,634
1,977,953
2,118,982

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.

Investment Management Fees:

Amounts paid to manage investments 2022
£
17,021
17,021		 2021
£
16,142
16,142

Investment management fees appear in the Statement of Financial Activities under Other Costs

16

Benevolent Fund

NOTES ON THE FINANCIAL STATEMENTS 31 DECEMBER 2022 (CONTINUED)

10. DEBTORS

Amounts due within 1 year:
Other debtors
Amounts due after 1 year:
Secured loans to beneficiaries		 2022
£
20,912
86,546
107,458		 2021
£
21,432
87,670
109,102

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		 2022
£
6,936
15,120
43,801
65,857		 2021
£
13,609
14,400
109,994
138,003

17

Benevolent Fund

NOTES ON THE FINANCIAL STATEMENTS 31 DECEMBER 2022 (CONTINUED)

12. GRANTS 2022

Grants committed to during 2021 and paid during 2022
308
Graduate, aged 73
310
Widow of Fellow, aged 80
312
Member, aged 84, married
342
Widow of Fellow, aged 84
358
Fellow, aged 93, married
362
Fellow, aged 97, married
367
Technician, aged 65, married
369
Fellow, aged 83, married
370
Fellow, aged 76, married
377
Graduate, aged 67, married
379
Former member, aged 80, married
380
Associate-Member, aged 60, married
382
Member, aged 54, married
389
Graduate, aged 41, married with 2 children*
391
Graduate, aged 37
396
Graduate, aged 34, married
397
Member, aged 49
399
Member, aged 66, married with 1 child
401
Member, aged 41
403
Member, aged 38, married with 2 children
Total grants paid during 2022
Grants committed to during 2022 and due to be paid during 2023
Allocated support costs		 £
(35,075)
First assisted
1,520
2010
6,100
2010
2,782
2010
3,337
2014
8,700
2017
3,600
2017
12,073
2018
4,407
2018
8,600
2018
3,650
2019
5,250
2020
912
2022
157
2020
71
2020
3,882
2021
71
2021
6,104
2022
71
2022
6,165
2022
5,466
2022
82,918
11,175
18,742
77,760

*Joint beneficiary of the Institution of Structural Engineers and the Institution of Civil Engineers Benevolent Funds.

13. Analysis of changes in net debt

Cash
Total		 At the 1st
January 2022
£
27,440
27,440
27,440		 Cash flows
£
(7,477)
(7,477)
(7,477)		 Other non-
cash changes
£
-
-
-		 At 31st
December 2022
£
19,963
19,963
19,963

18