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2020-12-31-accounts

Incorporated by Royal Charter Charity Registration No. 1145678 Royal Charter No. RC000851

ANNUAL REPORT AND ACCOUNTS

of the Council of the Institution of Engineering Designers 1 January 2020 to 31 December 2020

Incorporated by Royal Charter Charity Registration No. 1145678 Royal Charter No. RC000851

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT AND UNAUDITED ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2020

THE INSTITUTION OF ENGINEERING DESIGNERS

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees at as 31 December 2020 Eurlng C LedsomeBEng MEng CEng FBIS FIMechE FIED MCMI MDS
(Chair)2, 4
Dr T M B Humphries-SmithBSc PGDip MPhil EdD CEng CTPD
MIED(PCh) FHEA FRSA (Immediate Past Chair)2
P K R BatemanEngTech MIED (Vice Chair)
D T H CastleIEng RCADMan FIED MBCS CITP (Vice Chair)2, 3
N PhelpsIEng MIED MIET (Vice Chair)2, 3
S J BenfieldCEng CEnv CTPD FIED(PCh) MAPM2, 3, 4
T N ChannellMEng CEng MIED
D FarrellBSc(Hons) MTech CEng CTPD FIED
M LynchBSc(Hons) MSc CEng MIED
Dr E PeiBA(Hons) MSc PhD CTPD CEng MIED
A PennBSc(Hons) MSc CTPD MIED
J RobertsMEng CEng MIED
Dr P J SewellBEng(Hons) PGCert PhD MIMechE FHEA CEng MIED1, 2
Dr G A L TizzardBSc MPhil DIC PhD MIEEE CEng MIED FHEA1, 2
I TreacyBA MSc IEng MIED MIET
Eurlng S P VaitkeviciusBEng(Hons) MSc CEng FIED
Dr B WatsonMDes(Hons) PhD LCGI CEng CEnv CTPD FIED
R YuenMEng CEng MIED MICE
Trustee & Honorary Treasurer A T A KeeganCEng FIED(PCh)2, 3
1Education and Training Committee
2Membership Accreditation Board
3Membership Committee
4Editorial Committee
Secretary Mrs E K MeyrickBSc(Hons) FRSA
Charity number 1145678
Principal address Courtleigh
Westbury Leigh
Westbury
Wiltshire
BA13 3TA
Independent Examiner Martin Gurney FCA
Haines Watts
Old Station House, Station Approach
Newport Street
Swindon
Wiltshire
SN1 3DU

THE INSTITUTION OF ENGINEERING DESIGNERS

LEGAL AND ADMINISTRATIVE INFORMATION

Bankers Lloyds Bank
37 Market Place
Warminster
Wiltshire
BA12 9BD
Solicitors Thrings LLP
6 Drakes Meadow
Penny Lane
Swindon
Wiltshire
SN3 3LL
Accountants Haines Watts
Old Station House
Station Approach
Newport Street
Swindon
Wiltshire
SN1 3DU

THE INSTITUTION OF ENGINEERING DESIGNERS

CONTENTS

Page
Report 1 – 8
Statement of Responsibilities 9
Independent Examiner's report 10
Statement of Financial Activities 11
Balance Sheet 12
Notes to the accounts 13 - 24

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT

FOR THE YEAR ENDED 31 DECEMBER 2020

The trustees present their report and the financial statements for the year ended 31 December 2020.

The accounts comply with the Charities Act 2011, the charity's governing document and the 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).

Structure, governance and management

a. Constitution

The charity is controlled by its governing document, the Royal Charter, By-laws and Regulations.

The trustees who served during the year were:

Eurlng C Ledsome BEng MEng CEng FBIS FIMechE FIED MCMI MDS (Chair) Dr T M B Humphries-Smith BSc PGDip MPhil EdD CEng CTPD MIED(PCh) FHEA FRSA (Immediate Past Chair) P K R Bateman EngTech MIED (Vice-Chair/Councillor) D T H Castle IEng RCADMan FIED MBCS CITP (Vice Chair/Councillor) N Phelps IEng MIED MIET (Vice Chair/Councillor) S J Benfield CEng CEnv CTPD FIED(PCh) (Councillor) Eurlng Dr L M Buck BSc(Hons) MA PhD CEng CTPD (Resigned as Councillor 11 July 2020) FIED FHEA FRSA (Councillor) T N Channell MEng CEng MIED (Councillor) D Farrell BSc(Hons) MTech CEng CTPD FIED (Councillor) A T A Keegan CEng FIED(PCh) (Honorary Treasurer/Councillor) M Lynch BSc(Hons) MSc CEng MIED (Appointed as Councillor 11 July 2020) Dr E Pei BA(Hons) MSc PhD CTPD CEng MIED (Appointed as Councillor 20 April 2020) A Penn BSc(Hons) MSc CTPD MIED (Appointed as Councillor 11 July 2020) J Roberts MEng CEng MIED (Appointed as Councillor 11 July 2020) Dr P J Sewell BEng(Hons) PGCert PhD MIMechE FHEA CEng MIED (Councillor) Dr G A L Tizzard BSc MPhil DIC PhD MIEEE CEng MIED FHEA (Councillor) I Treacy BA MSc IEng MIED MIET (Councillor) Eurlng S P Vaitkevicius BEng(Hons) MSc CEng FIED (Councillor) Dr B Watson MDes(Hons) PhD LCGI CEng CEnv CTPD FIED (Councillor) Dr K Winning BEng(Hons) MEng MSc PhD CEng (Resigned as Councillor 11 July 2020) FIMechE CEnv FIED CGeog FRGS (Councillor)

R Yuen MEng CEng MIED MICE (Councillor)

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

b. Method of appointment or election of Trustees

The Officers of Council - Chair and Vice Chairs - are elected annually by the Council. An election to Council is held annually in which up to one third of Council are obliged to stand down. They may be re-nominated by Council. Any three Corporate Members may also nominate a qualifying Corporate Member. A postal ballot of all Corporate Members is held where the total number of nominations exceeds the number of vacancies.

The appointment of officers and election of Council is governed by By-laws 40 to 46 of the Institution's governing document. The Honorary Treasurer shall be elected to the post annually by Council.

c. Policies adopted for the induction and training of Trustees

New members of Council are inducted with the appropriate NCVO guidelines.

d. Organisational structure and decision making

Organisation and Structure

To ensure the efficient use of the elected Councillors a Board and Committee structure is in place which involves the commitment of as many of the elected Councillors as possible in the ongoing affairs of the Institution. A small permanent staff headed by the Secretary is employed by Council to deal with the day-to-day administration of the membership, Engineering Council registration matters, the publication of the Institution's journal Engineering Designer, financial matters and the administration and organisation of its course and conference activities.

Events since the end of the period

Information relating to events since the end of the period is given in the notes to the financial statements.

Staff

As the financial year closed the Institution employed three full-time and three part-time members of staff, including the Secretary. Mr David Osborne - Accounts Officer, Mrs Linda Parry – Membership Officer, Mrs Nadine Pearce - PA to the Secretary, Mrs Jo Winslow - Education and Training Officer and Mrs Denise Watson - Administrative Assistant, continue to give the Institution invaluable service.

The Secretary's remuneration is set at annual review by the Trustees.

Wider network

At present the Institution does not consider itself to be part of a wider network.

Engineering Council/EngineeringUK

The Institution's relationships with the Engineering Council and EngineeringUK remain the most important of all its relationships with other charities and organisations. The Institution continues to work closely with both bodies, Mr Neil Phelps represents the Group B college on the Engineering Council Board and other members of Council represented the IED as Liaison Officers and on the Engineering Council's Quality Assurance Committee (QAC).

The Design Society

The Design Society is an international body dedicated to promoting the best in design practice and education. The Institution has co-operated with the Society in the past and the two bodies again came together to collaborate during 2020 as partners in the very successful Engineering and Product Design Education Conference, a virtual event hosted by VIA University College, Herning, Denmark.

The Royal Academy of Engineering

The IED continues to work to the Diversity Concordat, with a view to working towards encouraging membership from a wider range of backgrounds. The Secretary also sits on the ‘Professional Engineering Committee' administered by the Academy. In addition, members of the IED contributed to reports drawn up by the Academy during the year.

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

The Society for the Environment

The Institution has a licence to award Chartered Environmentalist (CEnv) status to suitably qualified and experienced members and continued to develop and implement assessment procedures during 2020. The Secretary and a volunteer member continue to serve on the Council and Registration Authority of the Society.

e. Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. Key risks include: loss of licences from Engineering Council and Society for the Environment, loss of key members of staff, loss of tenants at Courtleigh, lack of income from sponsors, seminars or registrations, fire or flood. These and other risks are included on a risk register, with mitigation, actions, response and responsibilities allocated accordingly.

Objectives and activities

a. Policies and objectives

Mission Statement

We work to inspire, develop and promote professionals working in engineering and product design. Setting standards and competencies for our members who advance and progress society by providing technical products and solutions.

Objects

The main objects of the Institution are to:

We review our aims, objectives and activities each year. This review looks at what we achieved and the outcomes of our work in the previous 12 months. The review looks at the success of each key activity and the benefits they have brought to those groups of people we are set up to help. We have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.

Notes:

  1. The remaining supporting objects are printed in the Royal Charter of the Institution, a copy of which is available on request from the Institution's Headquarters tel: +44 (0) 1373 822801, email ied@ied.org.uk.

b. Strategies for achieving objectives

Strategy

The Institution's Strategy Document is updated on an annual basis following review by the Council. This document provides the basis from which the objectives in the Mission Statement are developed for the furtherance of the Institution.

Risk review

The Council has conducted its own review of the major risks to which the charity is exposed and systems have been established to mitigate those risks. Significant external risks to income have led to the development of a strategic plan.

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

c. Activities for achieving objectives Significant activities

Due to the global Covid-19 pandemic, many of the Institution’s projects were delayed whilst working practices, communications and IT were all updated to allow staff and volunteers to carry out their roles in a Covid-secure manner.

However, the following progress has been made:

d. Volunteers

Other than trustees, assessors and committee members the Institution does not rely on volunteers.

Achievements and performance

a. Review of activities General Progress

Objectives

The main objective for 2020 was to promote the suite of registration grades available to professional designers, with a view to increasing membership applications. New promotional materials have been developed and all new members are encouraged to pursue the appropriate grade and type of registration after initial assessment by the Membership Committee.

Membership

The fluctuations in membership over the period covered by this report are as follows:

Dec 2020 Dec 2019
Fellows 166 170
Members 1,403 1,489
Students(includingOU) 4,904 4,112
Affiliates 21 30
Total 6,494 5,801

Membership numbers have increased during the year, mainly due to an increase in sign-up by students from accredited courses. Efforts are being made to attract more Member grade professionals to replace those coming to the end of their careers.

Continuing Professional Development

The 'MyCareerPath' CPD scheme run by the Engineering Council has been available to IED Members since 2013 with all new members encouraged to enrol. The competencies for MIED, CEnv, CTPD and RProdDes have been uploaded to the system. The Engineering Council have introduced mandatory CPD monitoring for all PEIs. The IED developed a monitoring and feedback process to meet this requirement which was further refined in 2020. 10% of registrants were randomly sampled and asked to provide up-to-date CPD records for the previous 12 months, of these 10% were reviewed by the Membership Committee and feedback given to responders.

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Publications

A further six issues of Engineering Designer were published during the period covered by the report. Once again the policy has been to publish as many articles written by members as possible covering a wide range of subjects. In addition to automatic circulation to its members the journal remains available by subscription and is circulated free-of-charge to a number of educational establishments. The journal is available electronically to all members including those who live internationally and non-paying students.

Charitable activities

Due to the Covid-19 pandemic, many of the IED’s activities have been put on hold for the year. However, the following still took place:

The IED works with a number of other bodies to further the promotion and development of Engineering and Design:

Other Activities

The Institution either ran or participated in the following events during the year:

Awards and Prizes

The Institution continued to run the IED Prize aimed at accredited Degree and HNC/D graduates. Eighteen Individual Prizes were awarded during the year. In each case the nominated student/graduate had to show that he or she had attained outstanding results on their chosen course, with particular reference to the design related subjects within the course. The awards take the form of an engraved glass coaster. Prizes were also awarded to three best students as judged by IED members of the Malta Branch, with the winning student writing an article for the IED journal.

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

The Institution's annual awards have been presented remotely, the winners being:

The Institution's most prestigious design award, the Gerald Frewer Memorial Trophy was awarded to Professor Tim Coole for his work in the promotion of science, engineering and design, via his role at Buckinghamshire New University.

The Hornsby Cup, given for the best article published in the Institution's journal during the previous year, was awarded to Colin Ledsome for his article ‘Flights of Passage’.

The Chair's Award was presented to Mike Evatt in recognition of his services to ETC for over 20 years.

Three medals of appreciation were awarded:

The Promotion of Design Award is presented to an individual or team for their work in promoting engineering design to a wider audience. The Award for 2020 was presented to Professor Paul Shore for his work in promoting engineering and design to the wider public via the ‘Watch it Made’ educational programme.

The Geoff Kirk Young Members Award is aimed at recognising promising new members starting on a career in engineering design. The 2020 winner was Matt Knight of ITP Energised.

The Kathbert Trophy, awarded to the most promising new member, was awarded to Andrew Robinson.

The Alex Moulton Award is awarded to recognise outstanding innovation. The 2020 award was presented to Team UnLimbited for the work on their 3D printed arm device.

The Founders Award was presented to Tom Channell for outstanding contributions to the work of the IED.

A celebration of the awards is to be held in Autumn 2021, along with the recipients of the 2021 awards.

Branches

The Institution supports thirteen branches across the UK plus three overseas branches in Malta, Hong Kong and Malaysia.

Volunteers

The Institution continues to rely heavily on member volunteers to assist in its activities, particularly in the following areas:

The volunteers have all adapted to remote working and continue to give excellence service.

The membership database contains details of those members who have agreed to undertake interviews of potential and existing members or who act as mentors in respect of the following requirements:

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

There are thirteen volunteers on the Membership Committee and fifteen volunteers on the Education and Training Committee.

b. Investment policy and performance

The trustees are currently satisfied with the investment performance of the assets and at present do not have any plans to expand its portfolio or feel it necessary to dispose of those currently in use.

c. Factors relevant to achieve objectives

The trustees have made a full assessment of the internal and external factors that may affect these financial statements and do not deem any factors material enough to have an impact.

Financial review

a. The statement of financial activities (page 13) shows that for this year there was a deficit of £21,028 (2019: deficit of £54,255).

Total resources expended amounted to £302,708 (2019: £357,020).

b. Reserves

Total reserves amounts to £322,271 (2019: £343,299). General reserves (excluding restricted and endowment funds) stand at £307,021 (2019: £326,392).

It is the IED's policy that unrestricted funds not presently committed or invested in tangible fixed assets should not be designated for specific future expenditure.

Restricted reserves stand at £15,250 (2019: £16,907).

Free reserves (unrestricted reserves not tied up in fixed assets) are currently in deficit. The Trustees have a three-tiered plan to address this situation, with management of expenditure to help minimise the immediate gap, intermediate plans to realise some of the assets that are within Courtleigh and longer-term plans to raise capital for the development of the Institution in the not too distant future.

The financial statements have been prepared on a going concern basis. The timing of receipts of subscription income means that working capital requirements can fluctuate significantly during the year. The Institution has access to both short term (overdraft) and medium-term funding (loans) to address this. It also has longer term (realisation of asset) plans in place.

c. Principal funding

The Institution's principal source of funding is its subscriptions from its members.

Plans for the future

Future developments

The new PR and comms strategy will see significant changes in communications with Members and the wider community during 2021, including a revision of the publication of Engineering Designer .

Project Courtleigh will see phase 1 of the project come to fruition and hopefully lifting of restrictions due to the pandemic will see some normal service regarding IED activities resume.

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Gift Aid

The Institution approached members asking them whether they would be prepared to sign a gift aid declaration so that income tax relief could be claimed on their subscriptions, Benevolent Fund contributions and Education Fund contributions

On behalf of the board of trustees

.............................. Mrs E K Meyrick BSc (Hons) FRSA Secretary

Dated: .........................

THE INSTITUTION OF ENGINEERING DESIGNERS

STATEMENT OF RESPONSIBILITIES

The trustees are responsible for preparing the Report and the accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare accounts 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 year.

In preparing these accounts, the trustees are required to:

The trustees are responsible for keeping sufficient accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the accounts comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. 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.

THE INSTITUTION OF ENGINEERING DESIGNERS

INDEPENDENT EXAMINER'S REPORT

TO THE TRUSTEES OF THE INSTITUTION OF ENGINEERING DESIGNERS

I report on the accounts of the charity for the year ended 31 December 2020, which are set out on pages 10 to 24.

Respective responsibilities of trustees and examiner

The charity's trustees are responsible for the preparation of the accounts. The charity's trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. The charity’s gross income exceeded £250,000 and I am qualified to undertake the examination being a qualified member of the ICAEW.

Basis of independent examiner's report

My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the statement below.

Independent examiner's statement

In connection with my examination, no matter has come to my attention:

......................... Martin Gurney FCA Haines Watts Old Station House Station Approach Newport Street Swindon Wiltshire SN1 3DU

Dated: .........................

THE INSTITUTION OF ENGINEERING DESIGNERS

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted
Restricted
funds
funds
Notes
£
£
Incoming resources from generated funds
Donations and legacies
2
247,651
-
Activities for generating funds
3
26,735
-
Investment income
4
-
-
274,386
-
Incoming resources from charitable activities
5
7,294
-
Total incoming resources
281,680
-
Resources expended
6
Costs of generating funds
Costs of generating donations and legacies
146,501
-
Net incoming resources available
135,179
-
Charitable activities
Other costs
154,550
-
Benevolent Fund
-
1,657
Total charitable expenditure
154,550
1,657
Total resources expended
301,051
1,657
Net income/(expenditure) for the year
(19,371)
(1,657)
Transfer of funds
17
-
-
Net movement in funds
(19,371)
(1,657)
Fund balances at 1 January
326,392
16,907
Fund balances at 31 December
307,021
15,250		 Total
2020
£
247,651
26,735
-
274,386
7,294
281,680
146,501
135,179
154,550
1,657
156,207
302,708
(21,028)
-
(21,028)
343,299
322,271		 Total
2019
£
256,907
27,968
20
284,895
17,870
302,765
182,542
120,223
172,938
1,540
174,478
357,020
(54,255)
-
(54,255)
397,554
343,299

THE INSTITUTION OF ENGINEERING DESIGNERS

BALANCE SHEET

AS AT 31 DECEMBER 2020

Notes
Fixed assets
Tangible assets
14
Current assets
Stocks
Debtors
15
Cash at bank and in hand
Creditors: amounts falling due within one
year
16
Net current (liabilities)/assets
Total assets less current liabilities
Income funds
Restricted funds
17
Unrestricted funds		 2020
£
5,486
5,219
25,304
36,009
(195,625)		 £
481,887
(159,616)
322,271
15,250
307,021
322,271		 2019
£
£
484,766
5,486
16,254
27,287
49,027
(190,494)
(141,467)
343,299
16,907
326,392
343,299		 2019
£
£
484,766
5,486
16,254
27,287
49,027
(190,494)
(141,467)
343,299
16,907
326,392
343,299
343,299
16,907
326,392
343,299

The accounts were approved by the Trustees on .........................

.............................. Mrs E K Meyrick BSc (Hons) FRSA

Secretary

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

1.1 Basis of preparation

The Institution of Engineering Designers is a registered charity in England / Wales established under Royal Charter. The address of the registered office is given in the charity information at the start of these financial statements. The nature of the charity’s operations and principal activities are set out in the Trustees Report.

The charity constitutes a public benefit entity as defined by FRS 102. 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 1A) issued on 16 July 2014 (as updated through Update Bulletin 1 published on 2 February 2016), the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charites Act 2011 and UK Generally Accepted Practice as it applies from 1 January 2015.

The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the charity and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The financial statements have been prepared on a going concern basis. The timing of receipts of subscription income means that working capital requirements can fluctuate significantly during the year. The Institute has access to both short term (overdraft) and medium term funding (loans) to address this. It also has longer term (realisation of asset) plans in place. Accordingly the financial statements have been prepared on the going concern basis.

1.2 Incoming resources

Subscription income from members is accounted for in the period to which it relates. The institution also receives advertising income in respect of its journal and rental income in respect of its freehold property. These are accounted for on a receivable basis.

All incoming resources are included in the Statement of Financial Activities when the charity has entitlement to the funds, certainty of receipt and the amount can be measured with sufficient reliability.

Other income is recognised in the period in which it is receivable and to the extent the goods have been provided or on completion of the service.

1.3 Resources expended

Expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated on a basis consistent with the use of the resource.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

1.4 Tangible fixed assets and depreciation

Tangible fixed assets other than freehold land are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Freehold land is not depreciated Freehold buildings Plant and machinery

nil at varying rates on cost

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2020

Tangible fixed assets and depreciation (continued)

The accounting policy for the depreciation of land and buildings has been changed during the prior year. No depreciation is provided on land and buildings with an estimated useful life in excess of 50 years as the entity has a policy of maintaining the property in good condition therefore prolonging its useful life and any depreciation involved would not be material. Due to this policy, the building maintains a residual disposal value at least equal to its book value.

1.5 Leasing and hire purchase commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

1.6 Stock

Stock is valued at the lower of cost and selling price less net realisable value.

1.7 Pensions

The charity operates a defined contributions pension scheme. Contributions are charged in the accounts as they become payable in accordance with the rules of the scheme.

1.8 Funds

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes.

1.9 Debtors

Trade and other debtors are recognised at the settlement amounts due. Prepayments are valued at the amounts prepaid.

2.0 Creditors

Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount.

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

2 Donations and legacies

Unrestricted
Restricted
funds
funds
£
£
Donations and gifts
20,723
-
Subscriptions and membership income (see below)
226,928
-
247,651
-
Subscriptions and membership income receivable
Unrestricted funds:
Subscription and fee income from members
Members joining fees
Accreditation fees
3
Activities for generating funds
Activities for generating funds (rent, journal advertising etc)
Net Activities for generating funds
4
Investment income
Bank interest		 Total
2020
£
20,723
226,928
247,651
2020
£
215,075
8,513
223,588
3,340
226,928
2020
£
26,735
26,735
2020
£
-		 Total
2019
£
20,246
236,661
256,907
2019
£
206,575
13,530
220,105
16,556
236,661
2019
£
27,968
27,968
2019
£
20

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

5 Incoming resources from charitable activities

Seminar and course income
6
Total resources expended
Costs of generating funds
Costs of generating donations and legacies (note 7)		 2020
2019
£
£
7,294
17,870
2020
2019
£
£
146,501
182,542

Included in costs of generating funds are Project Courtleigh costs which have increased and are as shown in note 11.

Charitable activities

Other costs
Activities undertaken directly (note 8)
Grant funding of activities
Support costs (note 11 – investment, governance, education & journal)
Total
Benevolent Funds
Costs		 2020
£
69,457
643
84,450
154,550
1,657
156,207
302,708		 2019
£
71,439
591
100,908
172,938
1,540
174,478
357,020

Included in support costs are payments to the Independent Examiner of £3,000 (2019: £3,000).

Also Included in support costs are Project Courtleigh costs which have increased and are as shown in note 11.

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

7
Costs of generating donations and legacies (see note 6)
Other costs comprise:
Councillor expenses
Secretariat expenses
New members expenses
Branch expenses reimbursed
Marketing & promotions
Exhibitions costs
AGM/EGM expenses
(Increase)/decrease in stock
Support costs (note 11 – including Project Courtleigh)
Project Courtleigh costs have increased and are as shown in note 11
8
Activities undertaken directly (see note 6)
Other costs relating to IED comprise:
Journal publishing costs
Postage re-allocated to journal publishing
University accreditation costs
9
Grants payable
IED		 2020
£
726
1,172
1,545
68
5,000
-
200
-
137,790
146,501
2020
£
61,500
7,893
64
69,457
2020
£
643		 2019
£
3,411
5,753
3,140
174
-
229
3,617
1,582
164,636
182,542
2019
£
60,517
6,248
4,674
71,439
2019
£
591

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

10 Support costs (see note 11 for detail)

Support costs (see note 11 for detail)
Administration (including Project Courtleigh)
Staff costs
Depreciation		 IED
Benevolent
Fund
£
£
89,378
-
129,983
-
2,879
-
222,240
-		 Total
2020
£
89,378
129,983
2,879
222,240		 Total
2019
£
131,811
129,868
3,865
265,544

11 Support Costs – allocation

Description
Costs of
Generating
Voluntary
Income
Investment
Management
Costs
Governance
Costs
Educational
Schemes
Percentage
62.00%
0.50%
1.50%
27.00%
£
£
£
£
Accountancy fees
3,333
27
81
1,452
Bank charges
5,425
44
131
2,363
Computer equipment depreciation
1,785
14
43
777
Computer expenses/IT support
4,618
37
112
2,011
Employer’s National Insurance
3,886
31
94
1,692
Employer’s pension contributions
1,994
16
48
868
Equipment hire
-
-
-
-
Equipment maintenance
520
4
13
226
Furlough grant
(1,719)
(14)
(42)
(749)
Fixtures & fitting depreciation
-
-
-
-
General expenses
267
2
7
117
Insurance
2,132
17
52
928
Interest payable
-
-
-
-
Irrecoverable VAT under Partial
4,999
40
121
2,177
Legal & professional fees
1,246
10
30
543
Light & heat
7,330
59
177
3,192
Office refreshments
112
1
3
49
Postage
7,123
57
172
3,102
Postage re-allocated to journal
(4,894)
(39)
(118)
(2,131)
Printing & stationery
1,308
10
32
570
Project Courtleigh
5,931
48
143
2,583
Property maintenance
12,288
99
297
5,351
Rates & water
1,058
9
26
460
Staff training
-
-
-
-
Subscriptions payable
1,830
15
44
797
Telephone
789
6
19
343
Wages & salaries
76,429
616
1,849
33,283
Total
137,790
1,109
3,334
60,004		 Journal
9.00%
£
483
787
260
670
565
290
-
75
(249)
-
38
309
-
726
181
1,065
15
1,035
(711)
190
861
1,784
153
-
266
115
11,095
20,003

Continued on next page

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

11 Support Costs – total

Description
Accountancy fees
Bank charges
Computer equipment depreciation
Computer expenses/IT support
Employer’s National Insurance
Employer’s pension contributions
Equipment hire
Equipment maintenance
Fixtures & fitting depreciation
Furlough grant
General expenses
Insurance
Interest payable
Irrecoverable VAT under Partial Exemption rules
Legal & professional fees
Light & heat
Office refreshments
Postage
Postage re-allocated to journal publishing
Printing & stationery
Project Courtleigh
Property maintenance
Rates & water
Staff training
Subscriptions payable
Telephone
Wages & salaries
Total		 Total
2020
£
5,376
8,750
2,879
7,448
6,268
3,216
-
838
-
(2,773)
431
3,438
-
8,063
2,010
11,823
180
11,489
(7,893)
2,110
9,566
19,819
1,706
-
2,952
1,272
123,272
222,240		 Total
2019
£
3,774
8,080
2,879
7,637
6,906
1,920
1,712
2,876
986
-
64
3,194
881
11,028
5,182
11,753
242
8,302
(6,248)
3,676
44,328
20,023
1,715
64
1,585
1,943
121,042
265,544

12 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, but were reimbursed a total of £672 for expenses (2019: £3,411). This included £nil (2019: £730) in relation to accreditation expenditure, £23 (2019: £406) for interview expenses and the remainder £649 (2019 £2,275) was for other expenditure.

Trustees loaned a total of £30,000 (2019: £65,000) to the charity during the year as short-term working capital. Loan interest at 2.95% per month was payable on the loans. The loans have been fully repaid during 2021. No other related party transactions took place during the year.

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

13 Employees

Staff Costs
Wages and salaries
Furlough grant
Employer’s National Insurance contributions
Pension costs
There were no employees whose annual remuneration was £60,000 or more.
The average monthly number of employees during the year was 7 (2019: 7).		 2020
£
123,272
(2,773)
6,268
3,216
129,983		 2019
£
121,042
-
6,906
1,920
129,868

14 Tangible fixed assets

Land and
buildings
Computer
Equipment
Fixtures and
Fittings
£
£
£
Cost
At 1 January 2020
518,498
17,699
6,655
Additions
-
-
-
At 31 December 2020
518,498
17,699
6,655
Depreciation
At 1 January 2020
37,742
13,689
6,655
Charge for the year
-
2,879
-
At 31 December 2020
37,742
16,568
6,655
Net book value
At 31 December 2020
480,756
1,131
-
At 31 December 2019
480,756
4,010
-		 Total
£
542,852
542,852
58,086
2,879
60,965
481,887
484,766

Included in land and buildings is freehold land of £165,000 (2019: £165,000).

15
Debtors
Trade debtors
Other debtors
Prepayments		 2020
£
3,186
1,540
493
5,219		 2019
£
9,315
6,939
-
16,254

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

16
Creditors: amounts falling due within one year
Bank overdraft
Trade creditors
Other creditors
Engineering Council
Loans from Trustees
Bounce-back loan (Coronavirus support)
Other taxes and social security costs
Accruals
Deferred income		 2020
£
32,276
13,877
19,567
44,290
30,000
50,000
2,615
3,000
-
195,625		 2019
£
64,882
3,707
20,050
31,392
65,000
-
2,463
3,000
-
190,494

The bank overdraft is secured by a fixed charge over the freehold property.

17 Restricted funds

The income funds of the charity include restricted funds comprising the following unexpended balances of donations and grants held on trust for specific purposes:

Movement in funds
Balance at 1 Net movement Transfer Balance at 31
January 2020 December 2020
£ £ £ £
Benevolent Fund 16,907 (1,657) - 15,250
16,907 (1,657) - 15,250

Benevolent Fund – funded by donations from members and used to pay direct grants or, where specifically approved by Council, annual subscriptions on behalf of applicant members who otherwise cannot afford to retain their membership.

18 Analysis of net assets between funds

Unrestricted
Restricted
£
£
Fund balances at 31 December 2020 are represented by:
Tangible fixed assets
481,887
-
Current assets
20,759
15,250
Creditors: amounts falling due within one year
(195,625)
-
307,021
15,250		 Total
£
481,887
36,009
(195,625)
322,271

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Detailed Income and Expenditure account
Income
Incoming resources from generated funds
Donations and gifts
Gift Aid
Members joining fees
Sponsorship and commissions (accreditation)
Subscriptions & fee income from members
Activities for generating funds
Journal advertising and non-member subscriptions
Rental income, room hire charges & sundry income
Investment income
Bank and building society interest
Incoming resources from charitable activities
Seminar and course income
Total Income
Expenditure
Costs of generating funds
AGM/EGM expenses
Branch expenses reimbursed
Councillor expenses
Exhibitions costs
(Increase)/decrease in stock
Marketing & promotions
New members expenses
Secretariat expenses		 2020
£
106
20,617
8,513
3,340
214,298
246,874
6,340
20,395
26,735
-
7,294
280,903
200
68
726
-
-
5,000
1,545
1,172
8,083		 2019
£
92
20,154
13,530
16,556
206,575
256,907
4,132
23,836
27,968
20
17,870
302,765
3,617
174
3,411
229
1,582
-
3,140
5,753
17,906

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Detailed Income and Expenditure account
Charitable activities
Journal publishing costs
University accreditation
Grants provided
Other resources expended (restricted)
Benevolent Fund
Support costs
Accountancy fees
Bank charges
Computer equipment depreciation
Computer expenses/IT support
Employer’s National Insurance
Employer’s pension contributions
Equipment hire
Equipment maintenance
Fixtures & fitting depreciation
Furlough grant
General expenses
Insurance
Interest payable
Irrecoverable VAT under Partial Exemption rules
Legal & professional fees
Light & heat
Office refreshments
Postage
Postage re-allocated to journal publishing
Printing & stationery
Project Courtleigh
Property maintenance
Rates & water
Staff training
Subscriptions payable
Telephone
Wages & salaries		 61,500
64
61,564
643
62,207
1,657
1,657
5,376
8,750
2,879
7,448
6,268
3,216
-
838
-
(2,773)
431
3,438
-
8,063
2,010
11,823
180
11,489
(7,893)
2,110
9,566
19,819
1,706
-
2,952
1,272
123,272
222,240		 66,765
4,674
71,439
591
72,030
1,540
1,540
3,774
8,080
2,879
7,637
6,906
1,920
1,712
2,876
986
-
64
3,194
881
11,028
5,182
11,753
242
8,302
(6,248)
3,676
44,328
20,023
1,715
64
1,585
1,943
121,042
265,544

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2020

Detailed Income and Expenditure account(continued)
Total expenditure
Total movement in Funds		 301,931
(21,028)
357,020
(54,255)