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2023-03-31-accounts

Charity registration number 1147203

Company registration number 07807250 (England and Wales)

ENGINEERS IN BUSINESS FELLOWSHIP

ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

ENGINEERS IN BUSINESS FELLOWSHIP

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Ms I Akpofure
Mr M P Astell
Mr S J Bonini
Mr D A M Falzani
Mr H Shah
Mr N Thomas
Mr H von Spreckelsen
Ms M Ogunsulire
Secretary Mrs C M Breeze
Charity number 1147203
Company number 07807250
Registered office Azets
Ventura Park Road
Tamworth
B78 3HL
Auditor Azets Audit Services
Ruthlyn House
90 Lincoln Road
Peterborough
Cambridgeshire
United Kingdom
PE1 2SP

ENGINEERS IN BUSINESS FELLOWSHIP

CONTENTS

Page
Trustees' report 1 - 5
Statement of trustees' responsibilities 6
Independent auditor's report 7 - 9
Statement of financial activities 10
Summary income and expenditure account 11
Balance sheet 12
Statement of cash flows 13
Notes to the financial statements 14 - 25

ENGINEERS IN BUSINESS FELLOWSHIP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The Trustees present their annual report and financial statements for the year ended 31 March 2023.

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 education 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.

Our programme expanded this year in both size and engagement. We added seven new universities, which brings our total to 39 partner universities. Participation in business competitions increased by 40% over last year, with 8,172 students taking part. More than 325,000 students, graduates and postgraduates received EIBF messages - an uplift of 11% over the previous year.

The Engineers in Business Champion of Champions Final gives us the chance to design and run our own competition and this was held in October with 17 universities sending 28 impressive entries. There were two competition categories: ‘Big Ideas’, an opportunity for participants to express their vision and personal potential through a combination of technology and business, and the more traditional category of ‘Start Ups’. The event was held at the Royal Academy of Engineering in London and over 200 university partners, friends and family attended the competition at the Royal Academy or watched online. Ten finalist university teams, comprising engineering graduates and postgraduates, pitched their business innovations in the hope of winning a share of the £15,000 prize fund. Publicity before and after the event reached a cumulative audience of over 27 million. This included students considering engineering as a course of study, those already studying engineering and also practising 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 2023

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 entrepreneurial engineers in the RAEng’s Enterprise Hub, EIBF participated in two further extremely exciting and innovative initiatives:

SMF Trustee Henning von Spreckelsen was elected to be a Fellow of the Royal Academy of Engineering in September 2022. This was a great honour which recognized Henning’s contribution to engineering and engineering education. It is hoped that more SMFs will be elected to the RAEng Fellowship in the coming years.

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

To ensure the continuity of the SMF Vision into the future, we asked all SMFs to step up and contribute to the scholarships to be awarded in 2023 – we hoped to raise £100,000 to fund two of the ten scholarships. The SMF Step Challenge culminated in a Giving Week, 22-28 March 2023. We exceeded our target and raised £119,000. We are aiming to foster an enduring culture of giving and will be holding another SMF Step Challenge Campaign next year.

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.

This year we held a mix of in-person and online events, which attracted a large and diverse group of SMFs from around the world. Additionally, with more in-person business competitions being held at our partner universities this year, we were pleased to be able to provide SMFs to judge and award prizes at the EIBF-sponsored competitions:

April 2022

May 2022

June 2022:

ENGINEERS IN BUSINESS FELLOWSHIP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

September 2022

October 2022

December 2022

Financial review

The Charity ended the year with a surplus of income over expenditure of £249,421 and Net Assets at the end of the year were £2,465,553. The large surplus is due to additional income from donations received from the Step Challenge Campaign and the award of eight scholarships rather than 10 in 2022/23.

The Scholarship expendable endowment fund amounts to £2,113,052 as at 31 March 2023, and is being built to support the educational objectives of the charity in the 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 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 in AAA rated UK High Street banks and an investment 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

The Charity’s activities have, as anticipated and hoped, rebounded after the restrictions imposed by the Covid pandemic. Attendance at the 2022 Annual Dinner and other events has recovered to pre-pandemic levels. As was the case in 2021/22, our operating income is largely from the Gatsby Charitable Foundation so the COVID-19 situation did not materially affect our income.

ENGINEERS IN BUSINESS FELLOWSHIP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

Plans for future periods

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:

We will continue to expand our Business Competition from 39 universities to many more. We will hold our Champion of Champions Coaching Day and Competition Final for the students who participated in the business competitions in October 2023 in London at the Royal Academy of Engineering with a live audience. This year we changed the format of the Coaching Day and Competition Final to a two-day event that was effective and successful. It led to significant increases in venue hire costs and travel and subsistence costs (to cover travel and accommodation for participants). Due to the success of the new format, which was well-received, the Trustees have decided to retain this arrangement in future.

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. We aim to foster an enduring culture of giving and will hold another SMF Step Challenge Campaign in 2024.

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.

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 (Resigned 11 May 2023) Mr S J Bonini Mr D A M Falzani Mr H Shah Mr N Thomas Mr H von Spreckelsen Ms M Ogunsulire

ENGINEERS IN BUSINESS FELLOWSHIP

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

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.

Members 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.

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' report was approved by the Board of Trustees.

Ms M Ogunsulire

Trustee

2 October 2023

ENGINEERS IN BUSINESS FELLOWSHIP

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 MARCH 2023

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 2023 which comprise the statement of financial activities, the summary income and expenditure account, the balance sheet, the statement of cash flows and 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 Financial Reporting Standard 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.

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:

ENGINEERS IN BUSINESS FELLOWSHIP

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

Responsibilities of Trustees

As explained more fully in the statement of trustees' responsibilities, 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: https:// www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 non-compliance. 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.

ENGINEERS IN BUSINESS FELLOWSHIP

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

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 auditor's 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

Chartered Accountants Statutory Auditor

10 October 2023

Ruthlyn House 90 Lincoln Road Peterborough Cambridgeshire PE1 2SP

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 section 1212 of the Companies Act 2006.

ENGINEERS IN BUSINESS FELLOWSHIP

STATEMENT OF FINANCIAL ACTIVITIES

FOR THE YEAR ENDED 31 MARCH 2023

Unrestricted
Restricted Endowment
funds
funds
funds
2023
2023
2023
Notes
£
£
£
Income from:
Donations and legacies
3
180,000
890,436
5,269
Charitable activities
4
14,258
-
-
Investments
5
-
48
4,064
Total income and endowments
194,258
890,484
9,333
Expenditure on:
Charitable activities
6
180,546
672,954
-
Net gains/(losses) on investments
11
-
-
8,846
Net movement in funds
13,712
217,530
18,179
Fund balances at 1 April 2022
54,343
66,916
2,094,873
Fund balances at 31 March 2023
68,055
284,446
2,113,052		 Total Unrestricted
Restricted Endowment
funds
funds
funds
2023
2022
2022
2022
£
£
£
£
1,075,705
185,000
780,000
8,476
14,258
10,557
-
-
4,112
-
18
1,903
1,094,075
195,557
780,018
10,379
853,500
197,088
700,659
-
8,846
-
-
-
249,421
(1,531)
79,359
10,379
2,216,132
55,874
(12,443)
2,084,494
2,465,553
54,343
66,916
2,094,873		 Total
2022
£
973,476
10,557
1,921
985,954
897,747
-
88,207
2,127,925
2,216,132

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 2023

All income funds
2023
£
Gross income
1,084,742
Total expenditure from income funds
853,500
Net income for the year
231,242		 2022
£
975,575
897,747
77,828

ENGINEERS IN BUSINESS FELLOWSHIP

BALANCE SHEET

AS AT 31 MARCH 2023

Notes
Fixed assets
Investments
13
Current assets
Debtors
14
Cash at bank and in hand
Creditors: amounts falling due within
one year
15
Net current assets
Total assets less current liabilities
Capital funds
Endowment funds-general
Expendable endowment
16
Income funds
Restricted funds
17
Unrestricted funds		 2023
£
£
1,737,241
-
762,032
762,032
(33,720)
728,312
2,465,553
2,113,052
2,113,052
284,446
68,055
2,465,553		 2022
£
£
1,568,324
246
673,144
673,390
(25,582)
647,808
2,216,132
2,094,873
2,094,873
66,916
54,343
2,216,132		 2022
£
£
1,568,324
246
673,144
673,390
(25,582)
647,808
2,216,132
2,094,873
2,094,873
66,916
54,343
2,216,132
2,216,132
2,094,873
66,916
54,343
2,216,132

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 2023, 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 2 October 2023

Ms M Ogunsulire

Trustee

Company Registration No. 07807250

ENGINEERS IN BUSINESS FELLOWSHIP

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2023

2023
Notes
£
£
Cash flows from operating activities
Cash generated from operations
20
244,847
Investing activities
Purchase of investments
(675,582)
Proceeds from disposal of investments
515,511
Investment income received
4,112
Net cash (used in)/generated from
investing activities
(155,959)
Net cash used in financing activities
-
Net increase in cash and cash equivalents
88,888
Cash and cash equivalents at beginning of year
673,144
Cash and cash equivalents at end of year
762,032		 2022
£
-
452,523
1,921		 £
103,017
454,444
-
557,461
115,683
673,144

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

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, FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the Charities SORP "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 amounts 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 2023

1 Accounting policies

(Continued)

1.5 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement, and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges are allocated on the portion of the asset’s use.

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.

Competition prizes are recognised as expenditure when the competition has taken place.

1.6 Fixed asset investments

Fixed assets investments include bank deposits that are held for the purpose of generating interest and are measured at cost less impairment. Some of those deposits can be accessed in the short term but the portfolio of bank deposits is intended to be held for the long term and therefore treated as fixed asset investments.

Fixed asset investments also include accumulation units held in a Common Investment Fund. These are measured at bid market value at the balance sheet date.

1.7 Cash and cash equivalents

Cash and cash equivalents include cash in hand and deposits held in current accounts. 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.

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting policies

(Continued)

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 payments 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.

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 2023

3 Donations and legacies

Unrestricted **Restricted ** Endowment **Total ** Unrestricted **Restricted ** Endowment Total
funds funds funds funds funds funds
general general
2023 2023 2023 2023 2022 2022 2022 2022
£ £ £ £ £ £ £ £
Donations and gifts 180,000 890,436 5,269 1,075,705 185,000 780,000 8,476 973,476

Donations and gifts include £1,010,000 (2022: £965,000) 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 2023

4 Charitable activities

**Subscriptions ** Dinner fees Total Subscriptions Dinner fees Total
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Sales within charitable
activities 10,688 3,570 14,258 10,557 - 10,557

5 Investments

**Restricted ** Endowment Total **Restricted ** Endowment Total
funds funds funds funds
general general
2023 2023 2023 2022 2022 2022
£ £ £ £ £ £
Interest receivable 48 4,064 4,112 18 1,903 1,921

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

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
2023
£
36,702
50,848
2,229
75,237
3,657
27,641
3,988
930
6,704
51,004
3,688
775
9,994
29,783
13,779
316,959
490,500
18,350
27,691
853,500
180,546
672,954
853,500		 Total
2022
£
39,295
52,626
2,028
97,342
2,330
29,216
3,983
709
494
47,559
2,882
1,753
3,367
5,606
11,500
300,690
549,552
19,647
27,858
897,747
197,088
700,659
897,747

7 Grants payable

Grants administered by The Royal Academy of Engineering:
Scholarships 8 (2022: 9) individuals
EIB Competition prizes		 Total
2023
£
400,000
90,500
490,500		 Total
2022
£
450,000
99,552
549,552

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

8
Support costs
Support
costs
Governance
costs
£
£
Staff costs
18,350
18,351
Audit fees
-
5,544
Accountancy
-
3,796
18,350
27,691
Analysed between
Charitable activities
18,350
27,691		 2023
Support
costs
Governance
costs
£
£
£
36,701
19,647
19,647
5,544
-
5,280
3,796
-
2,931
46,041
19,647
27,858
46,041
19,647
27,858		 2022
£
39,294
5,280
2,931
47,505
47,505

9 Trustees

None of the Trustees (or any persons connected with them) received any remuneration during the year, but three of them were reimbursed a total of £23,077 for expenses (2022 - one was reimbursed £24,483).

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

10 Employees

The average monthly number of employees during the year was:

2023 2022
Number Number
1 1
Employment costs 2023 2022
£ £
Wages and salaries 70,511 67,152
Social security costs (466) 8,079
Other pension costs 3,358 3,358
73,403 78,589
The number of employees whose annual remuneration was £60,000 or more
were:
2023 2022
Number Number
£60,000 - £70,000 1 1
11 Net gains/(losses) on investments
Endowment Total
funds
general
2023 2022
£ £
Revaluation of investments 8,846 -

12 Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxationof Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

13 Fixed asset investments

Bank deposits
Other
investments
£
Cost or valuation
At 1 April 2022
1,568,324
-
Additions
15,582
660,000
Valuation changes
-
8,846
Disposals
(515,511)
-
At 31 March 2023
1,068,395
668,846
Carrying amount
At 31 March 2023
1,068,395
668,846
At 31 March 2022
1,568,324
-
14
Debtors
2023
Amounts falling due within one year:
£
Prepayments and accrued income
-
15
Creditors: amounts falling due within one year
2023
£
Accruals and deferred income
33,720		 Total
£
1,568,324
675,582
8,846
(515,511)
1,737,241
1,737,241
1,568,324
2022
£
246
2022
£
25,582

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

16 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.

Movement
in funds
Balance at
1 April 2021
Incoming
resources
Balance at
1 April 2022
£
£
£
Expendable endowments
Scholarship endowment
fund
2,084,494
10,379
2,094,873
2,084,494
10,379
2,094,873		 Movement in funds
Incoming
resources
Revaluations
gains and
losses
31
£
£
9,333
8,846
9,333
8,846		 Balance at
March 2023
£
2,113,052
2,113,052

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

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:

Balance at
1 April 2021
£
Overseas
donations
13,266
Scholarship
donations
(25,709)
(12,443)		 Movement in funds
Incoming
resources
Resources
expended
Balance at
1 April 2022
£
£
£
-
-
13,266
780,018
(700,659)
53,650
780,018
(700,659)
66,916		 Movement in funds
Incoming
resources
Resources
expended
31
£
£
-
(13,266)
890,484
(659,688)
890,484
(672,954)		 Balance at
March 2023
£
-
284,446
284,446

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 31 March 2021 with the expenditure being temporarily covered by unrestricted funds. Further scholarship funding was received during the year ended 31 March 2022 to cover the deficit.

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18
Analysis of net assets between funds
Unrestricted
funds
Restricted
funds
Endowment
funds
2023
2023
2023
£
£
£
Fund balances at 31 March 2023 are represented
by:
Investments
-
-
1,737,241
Current assets/(liabilities)
68,055
284,446
375,811
68,055
284,446
2,113,052		 Total Unrestricted
funds
Restricted
funds
Endowment
funds
2023
2022
2022
2022
£
£
£
£
1,737,241
-
-
1,568,324
728,312
54,343
66,916
526,549
2,465,553
54,343
66,916
2,094,873		 Total
2022
£
1,568,324
647,808
2,216,132

ENGINEERS IN BUSINESS FELLOWSHIP

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 31 MARCH 2023

19 Related party transactions

There were no disclosable related party transactions during the year (2022 - none).

20
Cash generated from operations
Surplus for the year
Adjustments for:
Investment income recognised in statement of financial activities
Fair value gains and losses on investments
Movements in working capital:
Decrease/(increase) in debtors
Increase in creditors
Cash generated from operations		 2023
£
249,421
(4,112)
(8,846)
246
8,138
244,847		 2022
£
88,207
(1,921)
-
(12)
16,743
103,017