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2021-03-31-accounts

Charity Registration No. 1147203

Company Registration No. 07807250 (England and Wales)

ENGINEERS IN BUSINESS FELLOWSHIP ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

ENGINEERS IN BUSINESS FELLOWSHIP

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Ms I Akpofure Mr M P Astell Mr G A Bazire Mr S J Bonini Mr D A M Falzani Mr H Shah Mr N Thomas Mr H von Spreckelsen Ms M Ogunsulire (Appointed 2 November 2020) Secretary Mrs C M Breeze Charity number 1147203 Company number 07807250 Registered office Azets Ventura Park Road Tamworth B78 3HL Auditor Azets Audit Services Ventura House Ventura Park Road Tamworth Staffordshire United Kingdom B78 3HL

ENGINEERS IN BUSINESS FELLOWSHIP

CONTENTS

Page
Trustees' report 1 - 6
Statement of trustees' responsibilities 7
Independent auditor's report 8 - 10
Statement of financial activities 11
Summary income and expenditure account 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 27

ENGINEERS IN BUSINESS FELLOWSHIP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2021

The Trustees present their report and financial statements for the year ended 31 March 2021.

The financial statements have been prepared in accordance with the accounting policies set out in note 1 to the financial statements and comply with the Charity's Memorandum and Articles of Association , the Companies Act 2006 and "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) (effective 1 January 2019)".

Objectives and activities

The charitable objectives are:

To advance education and training for the public benefit, in particular but not exclusively by:

(a) promoting continuing business education for those in the engineering profession to develop their skills in innovation, better management and governance;

(b) creating and operating a charitable fund for the support of their continuing education; and by

(c) developing a network of engineers who are, or who have been, engaged in such education in order to identify and illustrate its merits for the public benefit.

The Trustees have paid due regard to guidance issued by the Charity Commission in deciding what activities the Charity should undertake.

Achievements and performance

To support charitable objective (a) promoting continuing business education for those in the engineering profession to develop their skills in innovation, better management and governance:

Sponsoring business competitions at universities has been an effective way for us to engage with young engineering students and engineers. The sponsorship is run in association with leading universities and colleges, leveraging existing competitions or elective modules and existing arrangements within higher and further educational institutions, such as those between engineering departments and affiliated business schools. The competitions encourage young engineers to get involved in business innovation and develop a passion for entrepreneurship at an early stage.

Many of our university partners told us that it has been difficult to reach and engage with students during lockdown. Despite this, 90% of our partner universities were able to hold their competitions. We currently work with 32 universities and hope to expand this number when university education returns to normal. However, we are pleased to report that, notwithstanding the adversity, participation has still been high with 147,198 students receiving EIBF messages and 4,142 students participating in competitions, 3,014 of whom were students studying engineering, computer science and biomedicine.

As well as receiving cash prizes, and possibly being far more valuable, the winning team members are offered ongoing guidance and support from SMF mentors. The EIBF Champion of Champions Final was held in October and 27 universities offered competitors. The online event was broadcast live and over 300 viewers from around the world tuned in. Ten university teams comprising engineering graduates and postgraduates pitched their business innovations in the hope of winning a share of the £10,000 EIB Champions prize fund. Publicity before and after the event reached an audience of 7.2 million. This group included students considering engineering as a course of study, those already studying engineering and engineers, some and engineers, some of whom may be future candidates for Sainsbury Management Fellows’ Scholarships.

ENGINEERS IN BUSINESS FELLOWSHIP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Our partnership with the Royal Academy of Engineering continues and allows us to interact with the brightest and best young engineers. In addition to mentoring Engineering Leaders Scholarship winners, EIBF participated in the following events:

To support charitable objective (b) creating and operating a charitable fund for the support of their (those in the engineering profession) continuing education:

Sainsbury Management Fellows donated £122,000 in FY2020/2021. With interest, Gift Aid and subsequent matching, £262,000 has been added to the Endowment in the past year. The Endowment now stands at £2.1M, a significant step towards our target of £10M, although some way from providing the funds necessary to maintain the Sainsbury Management Fellowship Scheme. Thus far 15% of Sainsbury Management Fellows have contributed; we hope that many more SMFs will step forward to donate over the next few years. Tax efficient giving arrangements have been established for Fellows living in the USA, Belgium, France and Switzerland and more countries will be added as required.

ENGINEERS IN BUSINESS FELLOWSHIP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

To support charitable objective (c) developing a network of engineers who are, or who have been, engaged in such education in order to identify and illustrate its merits for the public benefit:

SMFs now live in all parts of the world and are involved in many different economic sectors. We continue to engage with our members through regular general newsletter updates via email. Traffic to our website from potential scholarship applicants and corporate donors continues to build, enhanced by interviews with our latest SMF scholarship awardees. These interviews and other promotional messages are pushed out through social media as well to reach the largest target audiences. The majority of SMFs live in the United Kingdom and there is a “critical mass” that regularly attends networking events which include invited guests from industry, government and education. However, due to COVID 19 it was regrettable but necessary that we cancel our Annual Dinner in May and again in November. All activities which could go forward were conducted online. In these circumstances, we were pleased to attract a large and diverse group of SMFs from around the world. In addition, several SMFs volunteered to judge and award prizes at EIBF-sponsored online business competitions:

In February 2021 George Fowkes and Simon Fowles took part in the judging process at Kingston’s virtual Bright Ideas Competition and Cathy Breeze awarded the prizes to very grateful students.

Scholarships and Grants

Eleven scholarships totalling £550,000 were awarded.

The awardees included ten men and one woman. The business school destinations include: Harvard (1), MIT (2), INSEAD (2), Imperial (2), Stanford (1) and LBS (3).

ENGINEERS IN BUSINESS FELLOWSHIP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Financial review

The charity is largely dependent on income donated from its supporters, giving rise to such income of £878,581. Of this, £165,000 was unrestricted, £550,000 restricted and £163,581 in respect of the endowment funds. Overall income exceeded expenditure in the year by £22,112, increasing total reserves at the year end to £2,127,925

The Scholarship expendable endowment fund amounts to £2,084,494 as at 31 March 2021, and is being built to support the educational objectives of the charity long term.

Reserves policy

It is the policy of the charity that unrestricted funds which have not been designated for a specific use should be maintained at a level equivalent to between three and six month’s operational expenditure. The trustees consider that reserves at this level will ensure that, in the event of a significant drop in funding, they will be able to continue the charity’s current activities while consideration is given to ways in which additional funds may be raised.

The charity has a 2-3 year funding plan with Gatsby for unrestricted funds that is paid on an annual basis at the beginning of each financial year. We anticipate being able to continue maintaining this minimum level of unrestricted funds, in line with our policy.

Investments

The endowment funds are held in cash, in interest bearing deposit accounts and 12 month term deposits split between three AAA rated UK High Street banks. The trustees are in the process of reviewing the charity's investment policy following the building up of the endowment fund.

Risks

The Trustees has assessed the major risks to which the Charity is exposed, and are satisfied that systems are in place to mitigate exposure to the major risks.

COVID-19

COVID-19 had an effect on the activities and results for 2020/21, though this has been limited. Since our operating income is largely from the Gatsby Charitable Foundation, the C-19 situation did not materially affect our income. The key charitable aims have continued through the use of virtual rather than in-person activities, with the core programmes of awarding of scholarships and the Business Competition largely unaffected.

Although COVID-19 restrictions continue into the 2021/22 year, there is negligible pandemic-related threat to the continuation of EIBF as a going concern.

Future Plans

To support charitable objective (a) promoting continuing business education for those in the engineering profession to develop their skills in innovation, better management and governance:

When Covid 19 restrictions are fully lifted, we hope to expand our Business Competition from 32 universities to many more. We will hold our Champion of Champions Final for the students who participated in the business competitions in October 2021, albeit in an online format.

Our activities to promote business education to young engineers will continue with the Royal Academy of Engineering. These include mentoring, helping to develop the Enterprise Hub and selecting and teaching the Engineering Leadership Scholarship Winners who are the UK’s top undergraduate engineering students.

To support charitable objective (b) creating and operating a charitable fund for the support of their (those in the engineering profession) continuing education:

We will continue to approach our members for their support and suggest ways in which they can become involved.

ENGINEERS IN BUSINESS FELLOWSHIP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

To support charitable objective (c) developing a network of engineers who are, or who have been, engaged in such education in order to identify and illustrate its merits for the public benefit:

We are now focussing our efforts on Sainsbury Management Fellowship Award Winners as soon as they have been awarded their scholarships (as opposed to when they graduate from business school). This early adoption has helped to encourage participation and expansion of our networking activities.

Social media has become increasingly important in publicising the achievements both corporate and entrepreneurial of the SMF network.

The SMF Investor Group met online in January 2021 and was attended by 24 SMFs. The group shared knowledge, skills and opportunities. The SMF Investor Group members are now networking amongst themselves in the current Covid 19 environment. An SMF Energy/ Sustainable Development Group meeting has been planned for June 2021.

Structure, governance and management

The Charity is a company limited by guarantee , having no share capital. The Charity was incorporated in England and Wales on 12 October 2011 and registered with the Charity Commission on 11 May 2012.

Engineers in Business Fellowship (EIBF) is also known as The Sainsbury Management Fellows' Society (SMFS) or The Sainsbury Management Fellowship (SMF).

The Trustees, who are also the directors for the purpose of company law, and who served during the year and up to the date of signature of the financial statements were:

Ms I Akpofure Mr M P Astell Mr G A Bazire Mr S J Bonini Mr D A M Falzani Mr H Shah Mr N Thomas Mr H von Spreckelsen Mr D M Weston (Resigned 2 November 2020) Mr P Dolan (Deceased 10 April 2020) Ms M Ogunsulire (Appointed 2 November 2020)

All Trustees, with the exception of Mr N Thomas, are recruited from members of Engineers in Business Fellowship and have each received a Sainsbury Management Fellowship Award, which helped them study for a MBA at a leading international business school. The awards began in 1987 and are administered by the Royal Academy of Engineering.

None of the Trustees has any beneficial interest in the company.

M embers of the company guarantee to contribute £1 in the event of a winding up.

Engineers in Business Fellowship is governed by a Board of 9 Trustees who are committed to the objects of the Charity. Board member expertise includes, finance, accounting, management, marketing and information technology.

The Trustees receive no remuneration.

ENGINEERS IN BUSINESS FELLOWSHIP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

The trustees' r eport was approved by the Board of Trustees.

Mr G A Bazire

Trustee Dated: 31 October 2021

ENGINEERS IN BUSINESS FELLOWSHIP

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2021

The Trustees, who are also the directors of Engineers in Business Fellowship for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company Law requires the Trustees to prepare financial statements 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, including the income and expenditure, of the charitable company for that year.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that 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.

ENGINEERS IN BUSINESS FELLOWSHIP

INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF ENGINEERS IN BUSINESS FELLOWSHIP

Opinion

We have audited the financial statements of Engineers in Business Fellowship (the ‘Charity’) for the year ended 31 March 2021 which comprise the statement of financial activities, the summary income and expenditure account, the balance sheet, the statement of cash flows and the notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) .

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

ENGINEERS IN BUSINESS FELLOWSHIP

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ENGINEERS IN BUSINESS FELLOWSHIP

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the s tatement of trustees' r esponsibilities, the Trustees, who are also the directors of the Charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: http s :// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

ENGINEERS IN BUSINESS FELLOWSHIP

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF ENGINEERS IN BUSINESS FELLOWSHIP

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Mark Jackson FCA DChA (Senior Statutory Auditor)
for and on behalf of Azets Audit Services 1 November 2021
Chartered Accountants
Statutory Auditor Ventura House
Ventura Park Road
Tamworth
Staffordshire
B78 3HL

Azets Audit Services is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under of section 1212 of the Companies Act 2006.

ENGINEERS IN BUSINESS FELLOWSHIP

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2021

Unrestricted
Restricted Endowment
funds
funds
funds
2021
2021
2021
Notes
£
£
£
Income from:
Donations and legacies
3
165,000
550,000
163,581
Charitable activities
4
15,608
-
-
Investments
5
-
407
11,852
Total income and endowments
180,608
550,407
175,433
Expenditure on:
Charitable activities
6
122,954
761,382
-
Net movement in funds
57,654
(210,975)
175,433
Gross transfers between funds
-
-
-
Net movement in funds
57,654
(210,975)
175,433
Fund balances at 1 April 2020
(1,780)
198,532
1,909,061
Fund balances at 31 March 2021
55,874
(12,443)
2,084,494		 Total Unrestricted
Restricted Endowment
funds
funds
funds
2021
2020
2020
2020
£
£
£
£
878,581
132,000
788,000
317,845
15,608
3,292
-
-
12,259
-
202
11,335
906,448
135,292
788,202
329,180
884,336
162,431
707,600
-
22,112
(30,291)
54,614
358,320
-
(3,152)
(25,988)
29,140
22,112
(30,291)
54,614
358,320
2,105,813
28,511
143,918
1,550,741
2,127,925
(1,780)
198,532
1,909,061		 Total
2020
£
1,237,845
3,292
11,537
1,252,674
870,031
382,643
-
382,643
1,723,170
2,105,813

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

ENGINEERS IN BUSINESS FELLOWSHIP

SUMMARY INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2021

All income funds
2021
£
Gross income
731,015
Transfer to endowment funds
-
Total income in the reporting period
731,015
Total expenditure from income funds
884,336
Net (expenditure)/income for the year
(153,321)		 2020
£
923,494
(29,140)
894,354
870,031
24,323

ENGINEERS IN BUSINESS FELLOWSHIP

BALANCE SHEET

AS AT 31 MARCH 2021

Notes
Fixed assets
Investments
11
Current assets
Debtors
12
Cash at bank and in hand
Creditors: amounts falling due within
one year
13
Net current assets
Total assets less current liabilities
Capital funds
Endowment funds-general
Expendable endowment
14
Income funds
Restricted funds
15
Unrestricted funds		 2021
£
£
2,020,847
234
115,683
115,917
(8,839)
107,078
2,127,925
2,084,494
2,084,494
(12,443)
55,874
2,127,925		 2020
£
£
1,890,742
15,203
223,603
238,806
(23,735)
215,071
2,105,813
1,909,061
1,909,061
198,532
(1,780)
2,105,813

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 31 March 2021, although an audit has been carried out under section 144 of the Charities Act 2011.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements under the requirements of the Companies Act 2006, for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Trustees on 31 October 2021

Mr G A Bazire Trustee

Company Registration No. 07807250

ENGINEERS IN BUSINESS FELLOWSHIP

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

2021 2020
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 18 9,926 365,545
Investing activities
Purchase of investments (130,105) -
Proceeds on disposal of investments - (407,700)
Investment income received 12,259 11,537
Net cash used in investing activities (117,846) (396,163)
Net cash used in financing activities - -
Net decrease in cash and cash equivalents (107,920) (30,618)
Cash and cash equivalents at beginning of year 223,603 254,221
Cash and cash equivalents at end of year 115,683 223,603

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

Charity information

Engineers in Business Fellowship is a private company limited by guarantee incorporated in England and Wales. The registered office is Azets, Ventura Park Road, Tamworth, B78 3HL.

1.1 Accounting convention

The financial statements have been prepared in accordance with the Charity's [governing document], the Companies Act 2006 and "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) (effective 1 January 2019)". The Charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the Charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the Charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds relate to donations made to the charity where the communication between the charity and the donor refers to the donations being held for the long term to generate income for future awards and grants. The trustees believe these funds to be expendable endowment funds and they are currently in the accumulation stage. It is anticipated that when funding for charitable activities is no longer forthcoming from the Gatsby Charitable Foundation, income from the endowment funds will be transferred to restricted funds for grants and awards.

1.4 Income

Income is recognised when the Charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Cash donations are recognised on receipt. Other donations are recognised once the Charity has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

Legacies are recognised on receipt or otherwise if the Charity has been notified of an impending distribution, the amount is known, and receipt is expected. If the amount is not known, the legacy is treated as a contingent asset.

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised on an accruals basis, and classified under the following activity headings:

Charitable activities includes governance, support costs and grants to institutions.

Governance costs are those incurred in connection with administration of the charity and compliance with constitutional and statutory requirements.

Support costs are those functions that assist the work of the charity but do not directly undertake charitable activities.

1.6 Fixed asset investments

Fixed assets investments consist solely of bank deposits that are held for the purpose of generating interest and are measured at cost less impairment.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8 Financial instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Charity's balance sheet when the Charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors and bank loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

1 Accounting policies

(Continued)

Derecognition of financial liabilities

Financial liabilities are derecognised when the Charity’s contractual obligations expire or are discharged or cancelled.

1.9 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the Charity is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10 Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2 Critical accounting estimates and judgements

In the application of the Charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

3 Donations and legacies

Unrestricted Restricted Endowment Total Unrestricted Restricted Endowment Total
funds funds
funds		 funds funds
funds
general general
2021 2021
2021		 2021
2020		 2020
2020		 2020
£ £
£		 £
£		 £
£		 £
Donations and gifts 165,000 550,000
163,581		 878,581
132,000		 788,000
317,845		 1,237,845

Donations and gifts include £715,000 (2020: £1,170,000) received from The Gatsby Charitable Foundation. Mr N Thomas is an employee of The Gatsby Charitable Foundation.

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

4 Charitable activities

Subscriptions
Dinner fees
2021
2021
£
£
Sales within charitable
activities
10,928
4,680
Other income
-
-
10,928
4,680		 Total Subscriptions
Dinner fees
2021
2020
2020
£
£
£
15,608
3,217
60
-
-
15
15,608
3,217
75		 Total
2020
£
3,277
15
3,292

5 Investments

Restricted Endowment Total Restricted Endowment Total
funds
funds		 funds
funds
general general
2021
2021		 2021 2020
2020		 2020
£
£		 £ £
£		 £
Interest receivable 407
11,852		 12,259 202
11,335		 11,537

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

6 Charitable activities

Staff costs
Advertising and marketing
Bank fees
Communications
Other costs
Photography and video
Printing and photocopying
Professional fees
Publications
Scholarship and prize administration
Software and online services
Telephone and internet
Travel and subsistence
Venue hire
Website development
Grant funding of activities (see note 7)
Share of support costs (see note 8)
Share of governance costs (see note 8)
Analysis by fund
Unrestricted funds
Restricted funds		 Total
2021
£
36,501
20,988
213
89,292
1,709
19,358
4,203
6,221
420
43,854
2,325
538
868
3,909
4,434
234,833
608,890
18,250
22,363
884,336
122,954
761,382
884,336		 Total
2020
£
36,241
9,368
2,303
99,976
4,115
23,459
3,124
11,604
1,078
37,607
2,020
1,050
5,381
25,948
4,499
267,773
556,512
18,120
27,626
870,031
162,431
707,600
870,031

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

7 Grants payable

Total
2021
£
Grants administered by The Royal Academy of Engineering:
Scholarships 11 (2020: 10) individuals
550,000
EIB Competition prizes
58,890
608,890
Support costs
Support
costs
Governance
costs
2021
Support
costs
Governance
costs
£
£
£
£
£
Staff costs
18,250
18,250
36,500
18,120
18,120
Audit fees
-
2,400
2,400
-
2,400
Accountancy
-
1,713
1,713
-
7,106
18,250
22,363
40,613
18,120
27,626
Analysed between
Charitable activities
18,250
22,363
40,613
18,120
27,626		 Total
2020
£
500,000
56,512
556,512
2020
£
36,240
2,400
7,106
45,746
45,746

8 Support costs

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration during the year, but two of them were reimbursed a total of £7,752 for expenses (2020 - two were reimbursed £1,826).

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

10 Employees

The average monthly number of employees during the year was:

Employment costs
Wages and salaries
Social security costs
Other pension costs
The number of employees whose annual remuneration was £60,000 or
more were:
£60,000 - £70,000
Fixed asset investments
Cost or valuation
At 1 April 2020
Additions
At 31 March 2021
Carrying amount
At 31 March 2021
At 31 March 2020		 2021
2020
Number
Number
1
1
2021
2020
£
£
65,836
64,545
3,873
4,717
3,292
3,219
73,001
72,481
2021
2020
Number
Number
1
1
Bank deposits
£
1,890,742
130,105
2,020,847
2,020,847
1,890,742

11 Fixed asset investments

Fixed asset investments consist solely of bank deposits that are held for the purpose of generating interest.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

12
Debtors
Amounts falling due within one year:
Prepayments and accrued income
13
Creditors: amounts falling due within one year
Other taxation and social security
Accruals and deferred income		 2021
£
234
2021
£
2,839
6,000
8,839		 2020
£
15,203
2020
£
842
22,893
23,735

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2021

14 Endowment funds

Endowment funds represent assets which must be held permanently by the Charity. Income arising on the endowment funds can be used in accordance with the objects of the Charity and is included as unrestricted income. Any capital gains or losses arising on the assets form part of the fund.

Balance at
1 April 2019
£
Expendable endowments
Scholarship
endowment fund
1,550,741
1,550,741		 Incoming
resources
£
329,180
329,180		 Movement in funds
Resources
expended
Transfers Revaluations
gains and
losses
£
£
£
-
29,140
-
-
29,140
-		 Balance at
1 April 2020
£
1,909,061
1,909,061		 Incoming
resources
£
175,433
175,433		 Movement in funds
Resources
expended
Transfers Revaluations
gains and
losses
31
£
£
£
-
-
-
-
-
-		 Balance at
March 2021
£
2,084,494
2,084,494

The Endowment Fund has been established to support the perpetual continuation of the SMF Bursary Scheme.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

15 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:

Balance at
1 April 2019

£
Overseas donations
13,266
Scholarship donations
130,652
143,918		 Movement in funds
Incoming
resources
Resources
expended
£
£
-
-
788,202
(707,600)
788,202
(707,600)		 Movement in funds
Transfers
Balance at
1 April 2020
Incoming
resources
Resources
expended
Balance at
31 March 2021
£
£
£
£
£
-
13,266
-
-
13,266
(25,988)
185,266
550,407
(761,382)
(25,709)
(25,988)
198,532
550,407
(761,382)
(12,443)

Overseas donations: The donor has specified that these donations are to be expended outside of the United States. Scholarship donations: Donations to be applied towards the Sainsbury Management Fellowship (SMF) bursary scheme.

The scholarship donations fund was in deficit at the year end with the expenditure being temporarily covered by unrestricted funds. Further scholarship funding will be received in the following financial year to cover the deficit and next year's scholarships.

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

16
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
Endowment
funds
2021
2021
2021
£
£
£
Fund balances at 31 March 2021 are represented
by:
Investments
-
-
2,020,847
Current assets/(liabilities)
55,874
(12,443)
63,647
55,874
(12,443)
2,084,494		 Total Unrestricted
funds
Restricted
funds
Endowment
funds
2021
2020
2020
2020
£
£
£
£
2,020,847
-
-
1,890,742
107,078
(1,780)
198,532
18,319
2,127,925
(1,780)
198,532
1,909,061		 Total
2020
£
1,890,742
215,071
2,105,813

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NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

17 Related party transactions

There were no disclosable related party transactions during the year (2020 - none).

18
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Movements in working capital:
Decrease/(increase) in debtors
(Decrease)/increase in creditors
Cash generated from operations		 2021
£
22,112
(12,259)
14,969
(14,896)
9,926		 2020
£
382,643
(11,537)
(8,042)
2,481
365,545