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2022-12-31-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 2022 to 31 December 2022

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 2022

THE INSTITUTION OF ENGINEERING DESIGNERS

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees at as 31 December 2022 D T H CastleIEng RCADMan FIED MBCS CITP (Chair)2, 3
Eurlng C LedsomeBEng MEng CEng FBIS FIMechE FIED(PCh) MCMI
MDS (Immediate Past Chair)2, 4
D FarrellBSc(Hons) MTech CEng CTPD FIED (Vice Chair)
Dr B WatsonMDes(Hons) PhD LCGI CEng CEnv CTPD FIED (Vice Chair)
S J BenfieldCEng CEnv CTPD FIED(PCh) MAPM2, 3, 4, 5
Professor Kay BondBEng PhD CEng MIMechE MIED
T N ChannellMEng CEng MIED
J Harrison-FurseBA(Hons) EngTech MIED
M LynchBSc(Hons) MSc CEng MIED5
Dr E PeiBA(Hons) MSc PhD CTPD CEng CEnv FIED
A PennBSc(Hons) MSc CTPD MIED3, 5
N PhelpsIEng MIED MIET2, 3
J RobertsMEng CEng MIED5
Professor P J SewellBEng(Hons) PGCert PhD MIMechE FHEA CEng
FIED1, 2
E TarrantBSc(Hons) STEM EngTech RCP MIED
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
R YuenMEng CEng FIED MICE MAPM
Trustee & Honorary Treasurer A T A KeeganCEng FIED(PCh)2
1Education and Training Committee
2Membership Accreditation Board
3Membership Committee
4Editorial Committee
5Inclusion, Equity and Diversity 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 2022

The trustees present their report and the financial statements for the year ended 31 December 2022.

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 (Immediate Past Chair) Dr T M B Humphries-Smith BSc PGDip MPhil EdD CEng (Resigned as Councillor 9 July 2022) CTPD MIED(PCh) FHEA FRSA (Immediate Past Chair/Councillor) P K R Bateman EngTech MIED (Vice Chair) (Resigned as Councillor 9 July 2022) Professor Kay Bond BEng PhD CEng MIMechE MIED (Co-opted 1 December 2022) (Councillor D T H Castle IEng RCADMan FIED MBCS CITP (Chair) N Phelps IEng MIED MIET (Councillor) (Resigned as Vice Chair 9 July 2022) S J Benfield CEng CEnv CTPD FIED(PCh) (Councillor) T N Channell MEng CEng MIED (Councillor) D Farrell BSc(Hons) MTech CEng CTPD FIED (Vice Chair) J Harrison-Furse BA(Hons) EngTech MIED (Councillor) (Co-opted 1 December 2022) A T A Keegan CEng FIED(PCh) (Honorary Treasurer/Councillor) M Lynch BSc(Hons) MSc CEng MIED (Councillor) Dr E Pei BA(Hons) MSc PhD CTPD CEng CEnv FIED (Councillor) A Penn BSc(Hons) MSc CTPD MIED (Councillor) J Roberts MEng CEng MIED (Councillor) Professor P J Sewell BEng(Hons) PGCert PhD MIMechE FHEA CEng FIED (Councillor) E Tarrant BSc(Hons) STEM EngTech RCP MIED (Co-opted 1 December 2022) (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 (Vice Chair)

R Yuen MEng CEng FIED MICE MAPM (Councillor)

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

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 magazine 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 2022 as partners in the very successful Engineering and Product Design Education Conference, hosted by London South Bank University.

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 and the Academy’s National Engineering Policy Centre. In addition, members of the IED contributed to reports drawn up by the Academy during the year and the Secretary continued to Chair the EECG (Engineering Ethics Coordination Group), an ongoing project overseeing the implementation of the recommendations of a report into ethics in engineering.

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

The Society for the Environment

The Institution has a licence to award Chartered Environmentalist (CEnv) and Registered Environmental Practitioner (REnvP) status to suitably qualified and experienced members. 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 and on the website www.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. A new five-year strategy was launched at the end of 2022.

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 2022

The following projects were progressed:

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 2022 was to continue to provide membership and registration services and support to IED members. The development and delivery of a new website, magazine and wider communications plus the delivery of online assessments and course accreditations and the confirmation of the Project IED initiative were all achieved.

Membership

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

Dec 2022 Dec 2021
Fellows 162 161
Members 1,273 1,334
Students(includingOU) 2,401 2,346
Affiliates 16 20
Total 3,852 3,861

Efforts are being made to attract more Member grade professionals to replace those coming to the end of their careers but numbers remain fairly constant overall.

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022. 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.

Publications

A further four 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 magazine remains available by subscription and is circulated free-of-charge to a number of educational establishments. The publication is available electronically to all members including those who live internationally and non-paying students. In addition to the four printed copies there were also 12 monthly publications, available online to members and the wider public.

Charitable activities

The following activities 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:

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Awards and Prizes

The Institution continued to run the IED Prize aimed at accredited Degree and HNC/D graduates. Twenty-three 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 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 Chris McMahon for his work in supporting and promoting engineering design, practice and education.

The Hornsby Cup, given for the best article published in the Institution's magazine during the previous year, was awarded to Toby Clarke for his article ‘Virtual Reality’ which appeared in the January 2021 issue.

The Chair's Award was presented to Dr Chris Dowlen for his work on the revision of the standards for Project Design registration.

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 2022 was presented to Dr Shini Somara, for her work in promotion of design via TV, radio, podcasts and books.

The Geoff Kirk Young Members Award is aimed at recognising promising new members starting on a career in engineering design. The 2022 winner was Laura Read.

The Kathbert Trophy, awarded to the most promising new member, was also awarded to Laura Read.

The Alex Moulton Award is awarded to recognise outstanding innovation. The 2022 award was presented to Brompton Bicycle Ltd for their work on the T-frame titanium folding bicycle.

The Founders Award was presented to Pete Lomas in recognition of his service as President of Council.

The Hills Millennium Award was made to Mark Rober.

A celebration of the awards was held at the National Space Centre in Leicester on 9 July, with full details in the October issue of Engineering Designer .

Branches

The Institution supports thirteen branches across the UK plus one overseas branches in Malta.

Volunteers

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

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

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:

There are twelve volunteers on the Membership Committee and twenty-two 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 11) shows that for this year there was a surplus of £12,922 (2021: £45,082).

Total resources expended amounted to £270,895 (2021: £276,369).

b. Reserves

Total reserves amounts to £380,275 (2021: £367,353). General reserves (excluding restricted and endowment funds) stand at £369,509 (2021: £353,463).

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 £10,766 (2021: £13,890).

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.

THE INSTITUTION OF ENGINEERING DESIGNERS

REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Plans for the future

Future developments

The revised strategy will come into force in January 2022 and will lead a number of changes including:

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 2022, 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 2022

Unrestricted
Restricted
funds
funds
Notes
£
£
Incoming resources from generated funds
Donations and legacies
2
237,076
-
Activities for generating funds
3
32,719
-
Investment income
4
182
-
269,977
-
Incoming resources from charitable activities
5
13,930
-
Total incoming resources
283,907
-
Resources expended
6
Costs of generating funds
Costs of generating donations and legacies
150,605
-
Net incoming resources available
133,302
-
Charitable activities
Other costs
117,256
-
Benevolent Fund
-
3,124
Total charitable expenditure
117,256
-
Total resources expended
267,861
3,124
Net income/(expenditure) for the year
16,046
(3,124)
Transfer of funds
17
-
-
Net movement in funds
16,046
(3,124)
Fund balances at 1 January
353,463
13,890
Fund balances at 31 December
369,509
10,766		 Total
2022
£
237,076
32,719
182
269,977
13,930
283,907
150,605
133,302
117,256
3,124
120,380
270,895
12,922
-
12,922
367,353
380,275		 Total
2021
£
278,544
31,982
-
310,526
10,925
321,451
151,263
170,188
123,746
1,360
125,106
276,369
45,082
-
45,082
322,271
367,353

THE INSTITUTION OF ENGINEERING DESIGNERS

BALANCE SHEET

AS AT 31 DECEMBER 2022

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		 2022
£
£
498,179
5,486
8,544
26,908
40,938
(158,842)
(117,904)
380,275
10,766
369,509
380,275		 2021
£
£
498,179
5,486
10,951
27,446
43,883
(174,709)
(130,826)
367,353
13,890
353,463
367,353		 2021
£
£
498,179
5,486
10,951
27,446
43,883
(174,709)
(130,826)
367,353
13,890
353,463
367,353
367,353
13,890
353,463
367,353

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 2022

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 magazine 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 nil Plant and machinery at varying rates on cost

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2022

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 2022

2 Donations and legacies

Unrestricted
Restricted
funds
funds
£
£
Donations and gifts (including Gift Aid)
10,779
-
Subscriptions and membership income (see below)
226,297
-
Exceptional item – Engineering Council fees adjustment
-
-
237,076
-
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, magazine advertising etc)
Net Activities for generating funds
4
Investment income
Bank interest		 Total
2022
£
10,779
226,297
-
237,076
2022
£
204,960
10,577
215,537
10,760
226,297
2022
£
32,719
32,719
2022
£
182		 Total
2021
£
16,526
242,525
19,493
278,544
2021
£
216,149
10,476
226,625
15,900
242,525
2021
£
31,982
31,982
2021
£
-

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Seminar and course income
6
Total resources expended
Costs of generating funds
Costs of generating donations and legacies (note 7)		 2022
2021
£
£
13,930
10,925
2022
2021
£
£
150,605
151,263

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)
Total
Benevolent Funds
Costs		 2022
£
52,248
-
65,008
117,256
3,124
120,380
270,985		 2021
£
56,254
-
67,492
123,746
1,360
125,106
276,369

Included in support costs are payments to the Independent Examiner of £3,000 (2021: £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 2022

7 Costs of generating donations and legacies (see note 6)

Other costs comprise:
Advertising
AGM/EGM expenses
Awards
Branch expenses reimbursed
Councillor expenses
Exhibitions costs
(Increase)/decrease in stock
Marketing & promotions
New members expenses
Secretariat expenses
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:
Magazine publishing costs
Postage re-allocated to magazine publishing
Support costs
University accreditation costs
9
Grants payable
IED		 2022
£
1,677
6,544
1,124
-
127
1,386
-
-
166
600
138,981
150,605
2022
£
30,044
-
30,044
20,172
50,216
2,032
52,248
2022
£
-		 2021
£
520
3,896
-
-
881
-
1,254
-
60
361
144,291
151,263
2021
£
23,211
12,101
35,312
20,942
56,254
-
56,254
2021
£
-

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

10 Support costs (see note 11 for detail)

Support costs (see note 11 for detail)
Administration (including Project Courtleigh)
Staff costs (note 13)
Depreciation		 IED
Benevolent
Fund
£
£
81,821
-
142,340
-
-
-
224,161
-		 Total
2022
£
81,821
142,340
-
224,161		 Total
2021
£
93,176
137,595
1,954
232,735

11 Support Costs – allocation

Description Costs of Investment Governance Educational Magazine
Generating Management Costs Schemes
Voluntary Costs
Income
Percentage 62.00% 0.50% 1.50% 27.00% 9.00%
£ £ £ £ £
Accountancy fees 1,352 11 33 589 195
Bank charges 3,395 27 82 1,479 493
Computer equipment depreciation - - - - -
Computer expenses/IT support 5,570 45 135 2,426 808
Employer’s National Insurance 4,080 33 99 1,777 591
Employer’s pension contributions 1,742 14 42 759 253
Equipment hire - - - - -
Equipment maintenance - - - - -
Fixtures & fitting depreciation - - - - -
Furlough grant - - - - -
General expenses 124 1 3 54 18
Insurance 2,691 22 65 1,172 390
Interest payable 1,197 10 29 521 173
Irrecoverable VAT under Partial (7,549) (61) (183) (3,287) (1,095)
Legal & professional fees 4,034 33 98 1,757 584
Light & heat 11,486 93 278 5,002 1,666
Office refreshments 135 1 3 59 20
Postage 2,365 19 57 1,030 343
Postage re-allocated to magazine - - - - -
Printing & stationery 1,174 9 28 511 172
Project Courtleigh 11,094 89 268 4,831 1,612
Property maintenance 10,511 85 254 4,577 1,526
Rates & water 1,210 10 29 527 176
Staff training 535 4 13 233 78
Subscriptions payable 1,365 11 33 594 198
Telephone 41 - 1 18 6
Wages & salaries 82,429 665 1,994 35,897 11,965
Total 138,981 1,121 3,361 60,526 20,172

Continued on next page

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

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 magazine publishing
Printing & stationery
Project Courtleigh
Property maintenance
Rates & water
Staff training
Subscriptions payable
Telephone
Wages & salaries
Total		 Total
2022
£
2,180
5,476
-
8,984
6,580
2,810
-
-
-
-
200
4,340
1,930
(12,175)
6,506
18,525
218
3,814
-
1,894
17,894
16,953
1,952
863
2,201
66
132,950
224,161		 Total
2021
£
3,391
6,293
1,954
11,688
6,779
2,700
-
143
-
-
918
4,911
1,415
6,238
2,100
12,538
385
17,614
(12,101)
1,486
6,366
25,490
1,464
512
1,330
995
128,116
232,725

12 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year, but were reimbursed a total of £391 for expenses (2021: £687). This included £69 (2021: £nil) in relation to accreditation expenditure, £322 (2021: £nil) for meetings and the remainder £nil (2021: £687) was for other expenditure.

Trustees loaned a total of £30,000 (2021: £60,000) 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 outstanding at the year end were £30,000 (2021: £60,000). 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 2022

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 (2021: 7).
14
Tangible fixed assets		 2022
£
132,950
-
6,580
2,810
142,340		 2021
£
128,116
-
6,779
2,700
137,595
Cost
At 1 January 2022
Additions
At 31 December 2022
Depreciation
At 1 January 2022
Charge for the year
At 31 December 2022
Net book value
At 31 December 2022
At 31 December 2021		 Land and
buildings
Computer
Equipment
Fixtures and
Fittings
£
£
£
535,921
18,522
6,655
-
-
-
535,921
18,522
6,655
37,742
18,522
6,655
-
-
-
37,742
18,522
6,655
498,179
-
-
498,179
-
-		 Total
£
561,098
-
561,098
62,919
-
62,919
498,179
498,179

Included in land and buildings is freehold land of £165,000 (2021: £165,000).

15
Debtors
Trade debtors
Other debtors
Prepayments
VAT		 2022
£
4,856
-
-
3,688
8,544		 2021
£
10,951
-
-
-
10,951

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

16 Creditors: amounts falling due within one year

Creditors: amounts falling due within one year
Accruals
Bank overdraft
Bounce-back loan (Coronavirus support)
Deferred income
Engineering Council
Loans from Trustees
Other creditors
Other taxes and social security costs
Trade creditors
VAT		 2022
£
4,071
40,822
-
-
31,081
30,377
17,989
2,452
32,050
-
158,842		 2021
£
21,374
42,852
-
-
29,076
60,000
12,908
3,240
5,156
103
174,709

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 2022 December 2022
£ £ £ £
Benevolent Fund 13,890 (3,124) - 10,766
13,890 (3,124) - 10,766

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 2022 are represented by:
Tangible fixed assets
498,179
-
Current assets
30,172
10,766
Creditors: amounts falling due within one year
(158,842)
-
369,509
10,766		 Total
£
498,179
40,938
(158,842)
380,275

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Detailed Income and Expenditure account
Income
Incoming resources from generated funds
Donations and gifts
Exceptional item – Engineering Council fees adjustment
Gift Aid
Members joining fees
Sponsorship and commissions (accreditation)
Subscriptions & fee income from members
Activities for generating funds
Magazine 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
Advertising & marketing
AGM/EGM expenses
Awards
Branch expenses reimbursed
Councillor expenses
Exhibitions costs
(Increase)/decrease in stock
Marketing & promotions
New members expenses
Secretariat expenses		 2022
£
-
-
10,779
10,577
10,760
204,960
237,076
10,025
22,694
32,719
182
13,930
283,907
1,677
6,544
1,124
-
127
-
-
-
166
600
11,624		 2021
£
30
19,493
16,496
10,476
15,900
216,149
278,544
9,242
22,740
31,982
-
10,925
321,451
520
3,896
-
-
881
-
1,254
-
60
361
6,972

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Detailed Income and Expenditure account
Charitable activities
Magazine 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 magazine publishing
Printing & stationery
Project Courtleigh
Property maintenance
Rates & water
Staff training
Subscriptions payable
Telephone
Wages & salaries		 30,044
2,032
32,076
-
32,076
3,124
3,124
2,180
5,476
-
8,984
6,580
2,810
-
-
-
-
200
4,340
1,930
(12,175)
6,506
18,525
218
3,814
-
1,894
17,894
16,953
1,952
863
2,201
66
132,950
224,161		 35,312
-
35,312
-
35,312
1,360
1,360
3,391
6,293
1,954
11,688
6,779
2,700
-
143
-
-
918
4,911
1,415
6,238
2,100
12,538
385
17,614
(12,101)
1,486
6,366
25,490
1,464
512
1,330
995
128,116
232,725

THE INSTITUTION OF ENGINEERING DESIGNERS

NOTES TO THE ACCOUNTS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Detailed Income and Expenditure account(continued)
Total expenditure
Total movement in Funds		 270,985
12,922		 276,369
45,082