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2025-03-31-accounts

OFFICIAL

THE QUEEN ELIZABETH PRIZE FOR ENGINEERING FOUNDATION

REPORT AND ACCOUNTS 1 April 2024 TO 31 March 2025

Charity Number: 1147743

Company Number : 8077332

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CONTENTS

1. INTRODUCTION 3
2. REPORT OF THE TRUSTEES 6
3. STATEMENT OF TRUSTEES' RESPONSIBILITIES 18
4. INDEPENDENT AUDITOR’S REPORT 19
5. STATEMENT OF FINANCIAL ACTIVITIES 24
6. BALANCE SHEET 25
7. NOTES TO THE ACCOUNTS 26

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1. INTRODUCTION

The Queen Elizabeth Prize for Engineering Foundation (“QEPrize” or “the Foundation”) is dedicated to championing bold, groundbreaking innovation in engineering that helps humanity survive and thrive. By celebrating engineering visionaries and inspiring creative minds, we are working to secure the future of engineering for a better world.

Promoting excellence in engineering, the annual prize of £500,000 salutes engineering’s leading figures - individuals or those working together as a team - with the added purpose of inspiring young people to consider engineering as a career and encouraging existing engineers to help push the boundaries of innovation.

Our planet and humanity face increasingly significant and complex challenges. Diverse, multifaceted, and continually evolving, engineering helps develop solutions to those challenges - making the world we live in a better, more equitable, sustainable place.

Engineering has a living impact on people right around the globe; from medicines delivered to the body with precision by nano-scale devices, and the world’s biggest and greenest buildings, to the pinpoint accuracy of surgical robots, the world wide web, and ever-more sustainable energy sources.

Our 2025 QEPrize Laureates are Bill Dally, Fei-Fei Li, Geoffrey Hinton, Jensen Huang, John Hopfield, Yann LeCun and Yoshua Bengio, recognised for their seminal contributions to the advancement of Modern Machine Learning, a foundational component driving progress in artificial intelligence (AI).

The collective efforts of these engineering innovators have been pivotal in advancing the three core pillars of Modern Machine Learning: advanced algorithms, high-performance hardware, and highquality datasets. It is the combination of these interrelated breakthroughs that underpins the widespread adoption and application of AI systems. The seamless integration of these contributions has enabled the development of powerful AI systems that are revolutionising industries, transforming daily life, and reshaping how we live and work - all made possible by the pioneering vision of this year’s Laureates.

Our new Laureates are the latest to join the outstanding group of engineers who have been awarded the Queen Elizabeth Prize for Engineering:

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FOREWORD – LORD VALLANCE OF BALHAM

Chair, Queen Elizabeth Prize for Engineering Foundation

The Queen Elizabeth Prize for Engineering (QEPrize) celebrates the power of engineering to change the world. It shines a spotlight on pioneering engineers whose innovations tackle global challenges and improve lives, while also inspiring the next generation to see engineering as a dynamic and rewarding career.

This year marks my first as Chair of the Queen Elizabeth Prize for Engineering Foundation, and it was a great privilege to announce our latest QEPrize Laureates. Their groundbreaking work in Modern Machine Learning is already reshaping industries, and redefining how we live and work. It’s an exciting time, and we stand on the edge of even greater possibilities driven by this transformative technology.

Our commitment to public engagement continues to grow. The Engineers gallery, housed in London’s iconic Science Museum, is approaching a major milestone: its one millionth visitor. Through this, and through initiatives like the QEPrize Ambassador Network and the global Create the Trophy competition, we are reaching new audiences and showing young people around the world the incredible impact of engineering.

The QEPrize not only honours remarkable engineering achievements but also fuels the ideas and innovations of tomorrow. The work of our Laureates, our Ambassadors, and the whole profession serves as a powerful reminder of engineering’s global influence and its vital role in building a better future for all.

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2. REPORT OF THE TRUSTEES

2.1 REFERENCE AND ADMINISTRATIVE DETAILS FOR THE CHARITY, ITS TRUSTEES AND ADVISORS

The Queen Elizabeth Prize for Engineering Foundation is a charitable company, registered as a charity with the Charity Commission with charity number: 1147743 and registered as a company with Companies House as company number 8077332.

The principal office of the QEPrize is 3 Carlton House Terrace, London SW1Y 5DG.

Trustees :

Lord Vallance of Balham (Chair) Yewande Akinola Professor John Hennessy Baroness Hunter of Auchenreoch Dr Robert Langer

Sir John Lazar (Ex-Officio, President of the Royal Academy of Engineering, from September 2024) Professor Sir Jim McDonald (Deputy Chair, appointed December 2024) Dame Anne Richards

The professional advisers to the QEPrize are as follows:

Legal advisers : Macfarlanes LLP, 20 Cursitor Street, London EC4A 1LT

Bankers: National Westminster Bank Plc, 250 Bishopsgate, London EC2M 4AA

Auditor : BDO LLP, 55 Baker Street, London W1U 7EU

Investment Advisers: Rathbones Investment Management, 30 Gresham Street, London EC2V 7QN

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2.2 STRUCTURE, GOVERNANCE AND MANAGEMENT

The Queen Elizabeth Prize for Engineering Foundation is governed by the Articles of Association for a private company limited by guarantee. These were agreed by trustees on 21 May 2012 and amended by trustees on 19 September 2024. The sole member of the charitable company is the Royal Academy of Engineering.

The board of trustees of the charitable company consists of at least two (and no more than ten) nominated trustees, who are appointed by ordinary resolution or by a decision of the trustees, and one Ex-Officio trustee who is holder of the office of the President of the Royal Academy of Engineering. All material decisions in relation to the Foundation are taken by the trustees.

Funding, in the form of donations, for the Foundation has been received from the following engineering companies: BAE Systems plc, BG Group, BP plc, GlaxoSmithKline, Hitachi Ltd., Jaguar Land Rover, National Grid, Nissan Motor Company, Shell UK Ltd, Siemens UK, Sony Corporation, Tata Consultancy Services, Tata Steel Europe and Toshiba.

The current donor companies have, together, given donations of £27 million since the start of the Foundation. The QEPrize funds are managed by the trustees of the Foundation.

Day to day management of the Foundation is the responsibility of the CEO and the Associate Director who meet regularly. Strategy is set by the Trustee Board and implemented by the executive.

2.3 OBJECTIVES AND ACTIVITIES FOR THE PUBLIC BENEFIT

2.3.1 Objectives

The objects of the Queen Elizabeth Prize for Engineering Foundation are, for the benefit of the public:

In determining the objectives of the Foundation and in planning its activities, the trustees have given due consideration to the Charity Commission's guidance on public benefit.

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The strategic objectives of the Foundation are to:

To achieve these objectives the Foundation employs the following strategies:

Delivering Impact

The world needs more engineers, from all backgrounds, to address some of our greatest challenges. We believe one of the most effective ways we can increase the number and diversity of people within our profession is to raise the profiles of engineers and engineering globally, to help young people find role models they recognise, and to help world leaders discover innovations and innovators they can celebrate and work with and learn from.

The QEPrize does just this. We bring together global communities:

Already, the QEPrize has:

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Delivering Impact - theory of change

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2.4 STRATEGIC REPORT

2.4.1 Achievements to 31 March 2025

The 2025 Queen Elizabeth Prize for Engineering Laureates

In an event held at the Science Museum, in the presence of Her Royal Highness The Princess Royal and over 250 invited guests, Lord Vallance announced that the 2025 Queen Elizabeth Prize for Engineering would be awarded to seven engineers responsible for seminal contributions to the advancement of Modern Machine Learning, a foundational component driving progress in artificial intelligence (AI).

Together, the work of Bill Dally, Fei-Fei Li, Geoffrey Hinton, Jensen Huang, John Hopfield, Yann LeCun and Yoshua Bengio has been pivotal in advancing the three core pillars of Modern Machine Learning: advanced algorithms, high-performance hardware, and high-quality datasets. It is the combination of these interrelated breakthroughs that underpins the widespread adoption and application of AI systems.

From revolutionising healthcare diagnostics to enabling self-driving cars, their work highlights the transformative potential of AI in shaping a better future. The 2025 QEPrize honours their ingenuity and vision, recognising their profound impact on engineering and society as a whole.

“Engineers are builders of the future. And engineering is the art and science of turning imagination into reality, solving challenges once thought impossible, and uplifting the human condition. I am deeply honoured to receive the Queen Elizabeth Prize for Engineering and to be recognised among the pioneers whose work has shaped the world we live in today.” Jensen Huang, 2025 QEPrize Laureate

“I am deeply honoured to receive the Queen Elizabeth Prize for Engineering, especially in such esteemed company alongside my fellow honourees. My life’s work has been dedicated to the imperative of ensuring the development of the most impactful technology of our generation benefits humanity, and my hope is that this recognition will drive further awareness of the need continue to keep human values at the centre of AI’s development.” Fei-Fei Li, 2025 QEPrize Laureate

Media Coverage Throughout the Cycle

The 2025 QEPrize announcement garnered significant media coverage across the UK and further afield. Broadcast highlights included a full feature package for Sky News, while Lord Vallance and Laureates were interviewed by The Times and The Guardian. News of the Laureates’ success returned over 200 pieces of organic coverage, in over 20 international markets spanning four continents.

2025 Create The Trophy Competition

“ This competition is an opportunity for young people to get a taster or a feeler of what engineering really is about because they have a client, they’ve got a brief that they need to respond to and then they have the opportunity to design something in a really thoughtful way and maybe even get it produced at the end .”

Roma Agrawal MBE, Create the Trophy Competition Judge

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The 2025 Create the Trophy Competition received hundreds of entries from 24 countries around the world. The winning design, submitted by Prerak Bothra, was chosen by the judges for its considered structure, which they felt really communicated clearly the essence of engineering and the fact that it was the Queen Elizabeth Prize for Engineering trophy.

Prerak is a 24-year-old design student from India. His design was inspired by the core values of the QEPrize, innovation, global impact and excellence. The central core symbolises balance, stability and unity, while also echoing the QEPrize logo’s three horizontal lines. Prerak aims to capture the prestige, innovation and the transformative power of engineering with his trophy design. As someone deeply curious about how design and engineering can shape the world, he believes the Create the Trophy Competition “ offers an incredible opportunity to showcase my skills and ideas on a global stage ”.

The judges also highly commended Ramya Krishnamoorthy’s design for its novel way of using form and geometry. Ramya, who is 14 and from the UK, wanted her design to evoke the image of growing plants, representing the continuous learning and growth mindset essential for engineers to become outstanding innovators. She entered the competition because she viewed it as “ a fantastic opportunity to further explore the world of design and engineering .”

Public Engagement

Engineers Gallery at the Science Museum

Our Engineers gallery, delivered in partnership with the Science Museum, continues to go from strength to strength.

Since opening in June 2023 the gallery, which celebrates the engineering community and showcases a wide variety of key innovations through the global lens of the Queen Elizabeth Prize for Engineering, has welcomed almost one million visitors.

Research shows young people’s knowledge of engineering is low, and what they do know is often influenced by stereotypes and misinformation (Educational Pathways into Engineering, Engineering UK 2020). By connecting audiences with people from a wide range of backgrounds who have created and pursued innovation, this new gallery provides a much-needed entry to a subject many feel disconnected from, and opens young people’s eyes to the possibilities it affords.

Engineers continues to be the most popular gallery at the Science Museum with the Foundation’s key target audience – KS3 and KS4 students.

Over the coming years Engineers will play a key role in delivering the Foundation’s objective to inspire the next generation.

QEPrize in Copenhagen

The QEPrize began 2025 with an event in Copenhagen celebrating the work of the 2024 Laureates, Henrik Stiesdal and Andrew Garrad.

Lord Vallance welcomed delegates, including the UK Ambassador to Denmark, to the event, and he was joined by Denmark’s Climate Minister, Lars Aagaard.

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Organised in conjunction with the Danish Academy of Technical Sciences, the event focussed on exploring the role to be played by wind energy in helping both the UK and Denmark meet Net Zero targets. Over 100 delegates heard keynote addresses from both Laureates, as well as two panel discussions examining some of the technical and commercial challenges facing the industry.

The QEPrize Ambassador Network

The QEPrize Ambassador Network unites early-career engineers from diverse fields worldwide, aiming to inspire the next generation to pursue engineering careers. QEPrize Ambassadors can be found in more than twenty countries, working in almost 100 companies and academic institutions and engaged in a wide variety of engineering disciplines.

The Network empowers young engineers by developing transferable skills, offering opportunities to learn from industry leaders, and providing a platform for international collaboration. Through dynamic events, including practical projects, volunteering initiatives, and workshops, the Network helps showcase the best of engineering, excites the public about the profession, and inspires younger generations to tackle future challenges.

Ambassador Case Studies

Engineers Speed Mentoring for Girls, International Women in Engineering Day

Building on the success of the first QEPrize Engineers Speed Mentoring for Girls at the launch of the Engineers gallery at the Science Museum in June 2024, women QEPrize Ambassadors were invited to speed mentor Year 8 girls (12- to 13-years old) in mid-2024. Held in the inspiring Engineers gallery, the speed mentoring was timed to coincide with International Women in Engineering Day 2024 (INWED24) and promoted on QEPrize social media channels to raise the profile of both INWED and the QEPrize.

The event provided a unique opportunity for Year 8 girls from two schools – one with a pupil premium of 38.9% - to meet women engineers, ask them questions about what an engineer actually does and quiz them about their pathways to engineering. Alongside this, the girls also had the opportunity to develop interpersonal skills such as confidence, communication and networking. QEPrize Ambassadors followed up with visits to the schools to speak about engineering as a career to the whole Year 8 cohorts (approximately 200 per school) on International Women in Engineering Day.

“The most interesting thing I learnt about women engineers today was the fact that there were so many different types of engineering and also the fact that they’ve done so many incredible things that I’d never heard about before.”

Year 8 secondary schoolgirl

“Events like this are so important in combatting stereotypes and giving opportunities to people who may have never met an engineer to find out about what engineering is. It’s a huge step to helping young people make informed decisions when choosing their career.” Philippa Jefferis, BAM (QEPrize Ambassador)

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Power Up Book Launch

In line with our mission to highlight engineering’s role in solving global challenges, the QEPrize proudly hosted the launch of Power Up: An Engineer's Adventures into Sustainable Energy by QEPrize Ambassador and chemical engineer Yasmin Ali. The event celebrated Yasmin’s work and her exploration of how engineering can drive sustainable change.

Yasmin’s role as a QEPrize Ambassador exemplifies the broader impact of our outreach initiatives - supporting diverse voices, elevating public engagement with engineering, and inspiring current and future engineers to contribute to solutions that will shape a better tomorrow.

“ This reminds me why I do what I do – I get to talk about the joy of engineering and the difference I can make in the energy sector, the energy transition, and to the climate crisis. It can be easy to forget this bigger picture when I am stuck in the day-to-day. In addition, when I was younger and trying to choose a career, I didn’t know much about engineering. I want to do my best to change that for others, especially girls, by engaging with them and showing them how incredible and varied life in engineering can be. ”

Yasmin Ali, RWE (QEPrize Ambassador)

Engagement with Schools

Throughout the year, the QEPrize continued to build meaningful connections with schools, using the expertise and experiences of our Ambassadors to engage and inspire young people - particularly girls - towards careers in engineering. These efforts are part of our wider mission to showcase the diversity and real-world impact of engineering to the next generation.

At Cranbrook School in Kent, which is committed to encouraging its brightest girls to consider STEM careers, QEPrize Ambassador Dr Mahmoud Wagih delivered a virtual session to Year 7 students (aged 11 - 12). Demonstrating how electronics can “see” and “charge” using electromagnetic waves, he introduced students to everyday applications of wireless technologies. The session sparked enthusiasm and curiosity, with students asking questions about safety, current uses, and the future potential of remote energy transfer.

Similarly, our partnership with Lammas School in East London offered another platform to connect with young minds. Following the 2024 Speed Mentoring event, where students first met QEPrize Ambassador Gunay Shamilova, Gunay was invited to speak at a Year 8 assembly.

Drawing from her own journey, she shared how she became a corrosion engineer, her academic path, and the responsibilities of her current role. Her talk offered students a glimpse into a specialised and often overlooked field, broadening their understanding of the many directions an engineering career can take. Gunay also spoke about the value of these outreach experiences in sharpening her communication skills and in gaining insight into the interests of young learners, key considerations for future engagement.

Together, these case studies highlight the power of real-life stories and relatable role models in motivating young people to explore engineering. They also reflect the core aims of the QEPrize Ambassador programme: to inspire, educate, and empower the engineers of tomorrow.

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2.4.2 Financial Review

The total income for the year was £645,772 (2023/24 £798,497) of which £2,503 (2023/24 £187,602) was donations. The cost of raising funds was £157,099 (2023/24 £188,501). Expenditure on charitable activities was £1,943,937 (2023/24 £2,399,225), including £500,000 (2023/24 £500,000) awarded for the 2025 prize.

The carrying value of net assets at 31 March 2025 was £24,836,924 (2024 £25,332,059). The value of QEPrize investment portfolio decreased by £581,510 (2024 £836,522 increase) with net investment gain of £960,129 (additions £5,940,693 disposals £7,482,331) and withdrawals of £2,000,000. At 31 March 2025 investments were valued at £24,821,453 (2024 £25,402,963).

The overall investment objectives are to create both income and capital growth such that the real capital value of the portfolio is maintained over the long term, thus allowing the prize to be awarded in perpetuity. The portfolio is managed on a total return basis with a medium risk profile. The QEPrize ensures that portfolio performance is measured against a customised benchmark of UK and global indices and Bank of England base rate. The projected spend rate in delivering the prize is expected to be £2m per annum over the medium term. The investments are maintained with a longterm investment time horizon of over 10 years.

The QEPrize does not invest in organisations which conflict with the charity’s purpose. The Trustees do not wish to invest in companies or funds that derive their income from the sale or manufacture of tobacco products. No initial investment will exceed 10% of the value of the fund. Bonds held will be “BBB” or better classification.

Going Concern

No material uncertainties that may cast significant doubt about the ability of the charity to continue as a going concern have been identified by the Trustees, and therefore, these financial statements have been prepared on a going concern basis.

The Foundation’s senior management team monitor the cash position on a monthly basis by looking at the cash flow forecast for the next twelve months, broken down by month. This forecast, combined with an assessment of the future reserves position, forms the basis of the assessment of going concern. It has been stress tested to reflect several possible scenarios, including using reverse stress testing. In doing so, we have particularly considered the impact of a global economic recession that negatively impacts on the Foundation’s ability to raise further significant funds.

Based on these forecasts, the Trustees believe that the going concern basis of accounting remains appropriate for our accounts.

Over the 2024/25 financial year, the Foundation’s managed investment funds have been maintained at a level that is sufficient to support the awarding of the Queen Elizabeth Prize for Engineering for many more cycles.

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2.4.3 Plans for Future Years

The objectives for the next QEPrize cycle are as follows:

The QEPrize team will work on external events, promoting both the QEPrize and engineering in general at home and internationally.

The development of the QEPrize’s digital platforms and podcast programme will continue, recognising their strategic importance in spreading the Foundation’s messages amongst a global audience.

Appendix:

QEPrize Judges 2024/25

2.4.4 Reserves

Total QEPrize funds at 31 March 2025 decreased by £0.5m to £24.8m due to a net investment gain of £1.0m and a £1.5m net deficit from operating activities. QEPrize investments are held in a managed investment fund to provide long-term real growth, cash and liquidity.

The Trustees have determined that the QEPrize should maintain a level of free reserves between £20-40m. The QEPrize holds free reserves so that it can fund the QEPrize in perpetuity.

Free reserves as at 31 March 2025 were £24.8m, so the QEPrize is operating within the reserves policy set. Of this, £24.8m was held as investments. The difference between free reserves and investments was £0.02m, being the net of cash, short term deposits and current liabilities. Cash at bank and short-term deposits totaled £0.6m.

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2.4.5 Principal Risks and Uncertainties

The three principal risks to the charity, along with the main mitigations and contingencies, are listed below.

Risk Management

The trustees maintain a register of all major risks to which the charitable company is exposed and a list of the systems and procedures in place to manage or mitigate those risks. These are recorded in the form of a risk register. The executive team meets quarterly with trustees to review activity, agree priorities and manage risks. The trustees confirm that the major risk to which the charitable company is exposed is not being self-sustainable for future charitable activities. A shared internal audit function has reviewed various issues including fundraising activity.

Charity Governance Code

The Board of Trustees adopted in full the Charity Governance Code for smaller charities in January 2020.

2.4.6 Remuneration Policy

The QEPrize policy is to pay staff salaries at the market mid-point. Salaries are reviewed in alternate years following a market benchmarking exercise conducted by independent consultancy. The next review will take place in November 2025.

In setting appropriate levels of senior management pay, the QEPrize considered the skills, experience and competencies required for each role, and the remuneration level for those roles in sectors where suitable candidates would be found.

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2.4.7 Auditor

BDO LLP was reappointed auditor during the year.

Disclosure of Information to Auditor

In the case of each of the persons who are Trustees of the charitable company at the date when this report was approved:

Approved by the Trustees on the 11th of August 2025 and signed on their behalf by:

……………………………………………………

Chair, Lord Vallance of Balham

……………………………………………………

Sir John Lazar

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3. STATEMENT OF TRUSTEES' RESPONSIBILITIES

The Trustees are responsible for preparing the Annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources, including the income and expenditure, of the charity for that period.

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

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Financial statements are published on the charity’s website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the trustees. The trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.

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4. INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE QUEEN ELIZABETH PRIZE FOR ENGINEERING FOUNDATION

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of The Queen Elizabth Prize for Engineering Foundation (“the Charitable Company”) for the year ended 31 March 2025 which comprise the statement of financial activities (incorporating an income and expenditure account), the balance sheet, and notes to the financial statements, including a summary of 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).

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Charitable Company 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.

Conclusions related 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 Charitable Company'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.

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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 Trustees are responsible for the other information. The other information comprises the information included in the Report and Accounts, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, 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.

Other Companies Act 2006 reporting

In our opinion, based on the work undertaken in the course of the audit:

In the light of the knowledge and understanding of the Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes 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 Charitable Company’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 the Companies Act 2006 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.

Extent to which the audit was 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, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Non-compliance with laws and regulations

Based on:

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we considered the significant laws and regulations to be the applicable accounting framework and relevant Charities Act.

The Charitable Company is also subject to laws and regulations where the consequence of noncompliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be relevant tax legislation, employment law, data protection and fundraising regulations.

Our procedures in respect of the above included:

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

Based on our risk assessment, we considered the area most susceptible to fraud to be management override of controls. Our procedures in respect of the above included testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment

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by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at:

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charitable Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Charitable Company’s members 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 Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Fiona Condron (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor London, UK

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

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REPORT AND ACCOUNTS: FOR THE YEAR ENDED 31 MARCH 2025

5. STATEMENT OF FINANCIAL ACTIVITIES

(INCORPORATING INCOME AND EXPENDITURE ACCOUNT)

----- Start of picture text -----
1 April 24 1 April 23
To 31 March 2025 To 31 March 2024
Notes
Income from
Donations 3 2,503 187,602
Investments 4 643,269 610,895
Total 645,772 798,497
Expenditure on
Raising Funds 5 157,098 188,501
Charitable Activities 6 1,943,937 2,399,225
Total 2,101,035 2,587,726
Net Deficit From Operating Activities (1,455,263) (1,789,229)
Net Investment Gains/(Losses)
Realised Gains/(Losses) on Investments 12 524,970 (137,946)
Unrealised Gains on Investments 12 435,159 2,447,180
Realised and Unrealised Gains on investments 960,129 2,309,234
Net (Losses)/Gains and net movement in funds for the year 8 (495,134) 520,005
Reconciliation of funds
Total Funds Brought Forward 25,332,059 24,812,054
Total Funds Carried Forward 8 24,836,925 25,332,059
----- End of picture text -----

The above funds are unrestricted. There were no other recognised gains and losses other than those stated above. All the above income and expenditure is derived from continuing activities.

The notes on pages 26 to 31 form part of these financial statements.

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6. BALANCE SHEET AT 31 MARCH 2025

Company number: 8077332

----- Start of picture text -----
Notes At 31 March 2025 At 31 March 2024
£
INVESTMENTS 12 24,821,454 25,402,963
CURRENT ASSETS
Debtors 13 18,535 22,041
Short term deposits 257,649 183,862
Cash at bank 293,414 576,504
Total current assets 569,598 782,407
CURRENT LIABILITIES
Creditors 14 554,127 853,311
NET CURRENT ASSETS/(LIABILITIES) 15,471 (70,904)
TOTAL NET ASSETS 24,836,925 25,332,059
The funds of the foundation:
Unrestricted funds 8 24,836,925 25,332,059
Total Charity Funds 24,836,925 25,332,059
----- End of picture text -----

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

Approved by the Trustees and authorised for issue on the 11th of August 2025 and signed on their behalf by:

……………………………………………………

Chair, Lord Vallance of Balham

…………………………………………………… Sir John Lazar

The notes on pages 26 to 31 form part of these financial statements.

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REPORT AND ACCOUNTS: FOR THE YEAR ENDED 31 MARCH 2025

7. NOTES TO THE ACCOUNTS

1 ACCOUNTING POLICIES

Basis of Accounting

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) (effective 1 January 2019 (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The preparation of the financial statements in compliance with FRS102 Section 1A Small Entities requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the accounting policies. The following principal accounting policies have been applied:

Exemptions for qualifying entities under FRS 102

As a consolidated cash flow statement is prepared by the company's parent, the company has taken advantage of the exemption provided by FRS102 not to report a separate statement of cash flows.

Going Concern

The Queen Elizabeth Prize for Engineering Foundation derives its income from donations and investment income. Over the 2024/25 financial year, the Foundation’s managed investment funds have been maintained at a sufficient level to support the awarding of the Queen Elizabeth Prize for Engineering for many more cycles. Therefore, the Trustees believe that the Foundation will continue as a going concern for the foreseeable future and continues to adopt the going concern basis in preparing the financial statements.

Income

Expenditure

Expenditure is recognised on an accrual basis. The cost of the QEPrize is recognised in the financial year in which it is awarded. Irrecoverable VAT is charged against the category of expenditure for which it is incurred.

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REPORT AND ACCOUNTS: FOR THE YEAR ENDED 31 MARCH 2025

Support Costs

Support costs are those functions that assist the work of the charity and mainly comprise staff costs and overheads (in the form of a management fee from the ultimate controlling entity, The Royal Academy of Engineering). These costs have been allocated between the costs of raising funds and expenditures on charitable activities.

Investments

The portfolio is stated at bid-market value at the balance sheet date. Any unrealised and realised gain or loss on revaluation is taken to the Statement of Financial Activities.

Financial Instruments

The Foundation only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Cash at Bank

Cash not required for working capital purposes is transferred to the investment portfolio .

Estimates and Judgements

In preparing these financial statements, it has not been necessary for the Trustees to make any significant judgements or estimates.

2 SERVICE CHARGE

The Royal Academy of Engineering levied a service charge of £314,367 (2023/24 £299,398) on The Queen Elizabeth Prize for Engineering Foundation for the year ended 31 March 2025 in respect of the administration costs incurred on behalf of the Foundation.

3 VOLUNTARY INCOME

Year ended
31 March
2025
Year ended
31 March
2024
£
£
Donations received 2,503
187,602
2,503
187,602

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REPORT AND ACCOUNTS: FOR THE YEAR ENDED 31 MARCH 2025

4 INVESTMENT INCOME

----- Start of picture text -----
Year ended Year ended
31 March 31 March
2025 2024
£ £
Investment income 637,358 607,159
Interest 5,911 3,736
643,269 610,895
RAISING FUNDS
Year ended Year ended
31 March 31 March
2025 2024
£ £
Support costs 77,306 85,539
Investment costs 79,792 102,962
157,098 188,501
----- End of picture text -----

5 RAISING FUNDS

Included in support costs are £39,549 (2023/24 £34,193) of staff costs.

6 CHARITABLE ACTIVITIES

----- Start of picture text -----
Year ended Year ended
31 March 31 March
2025 2024
£ £
Prize 500,000 500,000
Prize trophy 30,746 39,934
Award ceremony & events 441,662 666,427
Judging expenses 92,206 125,999
Publicity and communication 243,125 496,347
Support costs 567,858 528,465
Website costs 20,448 3,855
Other 25,027 19,815
Governance costs 22,865 18,383
1,943,937 2,399,225
----- End of picture text -----

Included in support costs are £290,027 (2022/23 £250,285) of staff costs. Support costs are those functions that assist the work of the charity and mainly comprise staff costs and overheads. These costs have been allocated between costs of raising funds and expenditure on charitable activities based on staff time.

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7 STAFF COSTS

----- Start of picture text -----
Year ended Year ended
31 March 31 March
2025 2024
£ £
Wages and salaries 267,405 230,638
Social securities 30,834 26,495
Pension costs 31,384 27,237
Other - 108
329,623 284,478
The emoluments of higher paid staff within the following scales were:
Number Number
£70,001 - £80,000 1 -
£80,001 - £90,000 - 1
£90,001 - £100,000 1 -
----- End of picture text -----

The Royal Academy of Engineering employed five (2023/24 six) staff members who were seconded to the QEPrize Foundation in the year. One of the employees resigned during the year.

The senior management team consists of the Associate Director, who manages the day-to-day operations of the charity. Their aggregate remuneration in the year was £95,374 (2023/24 £86,048). There were no resignations and no appointments among the senior management team during the year.

8 FOUNDATION FUNDS UNRESTRICTED

----- Start of picture text -----
2025 2024
£ £
(Deficit)/Surplus for year to 31 March
(495,135) 520,005
2025
General Fund at 1 April 2024 25,332,059 24,812,054
Balance 24,836,924 25,332,059
----- End of picture text -----

9 TRUSTEES’ EXPENSES AND REMUNERATION

No trustee received any reimbursement of expenses (2023/24 – nil). No trustee received any remuneration (2023/24 – nil).

10 CORPORATION TAXATION

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

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11 NET EXPENDITURE FOR THE YEAR

----- Start of picture text -----
2025 2024
£ £
Net expenditure for the year is stated
after charging audit fee for the year 14,706 14,280
12 INVESTMENTS
2025 2024
General Fund General Fund
£ £
Market Value at 1 April 25,402,963 24,566,441
Add Acquisitions at Cost 5,940,693 11,209,591
Less Disposals at Book Value (7,482,330) (12,682,303)
Net Realised Gain/(Loss) on Revaluation at 31 March 524,970 (137,946)
Net Unrealised Gain on Revaluation at 31 March 435,159 2,447,180
24,821,454 25,402,963
----- End of picture text -----

Investments consist of securities listed on global stock markets (65% of portfolio) and fixed interest bonds/diversified assets (35% of portfolio).

13 DEBTORS

----- Start of picture text -----
2025 2024
£ £
Accrued Income 18,535 19,306
Other Debtor - 2,735
18,535 22,041
14 CREDITORS
2025 2024
£ £
Trade Creditors - 8,805
Amounts due to parent company 140 102,880
Accruals 553,987 741,626
554,127 853,311
----- End of picture text -----

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15 ULTIMATE CONTROLLING ENTITY

As its sole member, the trustees of the Queen Elizabeth Prize for Engineering Foundation consider The Royal Academy of Engineering to be the ultimate controlling entity. The Academy is a registered charity No. 293074. The registered office is 3 Carlton House Terrace, St. James’s, London, SW1Y 5DG, UK.

The Royal Academy of Engineering brings together the most successful and talented engineers from across the profession and its fellows for a shared purpose: to advance and promote excellence in engineering for the benefit of society.

The QEPrize accounts have been consolidated within Academy’s accounts and can be obtained - - from Academy’s website (https://www.raeng.org.uk/about us/academy publications).

16 RELATED PARTY TRANSACTIONS

The QEPrize has the following transactions with the controlling party, The Royal Academy of Engineering:

----- Start of picture text -----
Year ended Year ended
31 March 31 March
2025 2024
£ £
Salary recharges 329,623 284,941
Management Fee 314,367 299,398
----- End of picture text -----

No amounts are due or outstanding at year end.

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Appendix I: QEPrize Panel Judges, 2024/25

Name Job title Country
Professor Dame Lynn
Gladden DBE		 Chair of Judges
Shell Professor of Chemical Engineering, University of
Cambridge		 UK
Dr John L Anderson President, National Academy of Engineering USA
Professor Carlos Henrique de
Brito Cruz		 Senior Vice President, Research Networks, Elsevier Brazil
Dr Josephine Cheng Former Vice President, IBM Research USA
Dr Abdigani Diriye Co-Founder & CPO, Bloom Technologies Somalia
Professor Orla Feely President, University College Dublin Ireland
Dr Alan Finkel Former Chief Scientist of Australia Australia
Professor Nick Jennings CBE Vice Chancellor, Loughborough University UK
Professor Teck Seng Low Former CEO, National Research Foundation (NRF) Singapore
Ilya Marotta Deputy Administrator, Panama Canal Authority Panama
Dr Raghunath Mashelkar National Research Professor, Chairman of the National
Innovation Foundation and President of Global Research
Alliance		 India
Professor Tatsuya Okubo Executive Vice President & Professor of Chemical System
Engineering, University of Tokyo		 Japan
Professor Tuula Teeri President, Royal Swedish Academy of Engineering
Sciences		 Sweden
Professor Dr Dr hc Viola
Vogel		 Head of Laboratory of Applied Mechanobiology, ETH
Zurich		 Switzerland

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