The Institution of Engineering and Technology Benevolent Fund
Annual Report and Financial Statements for the year ended 30 June 2022
**----- Start of picture text -----**
oO
Oo Oo
Oo Oo O
O Oo
Oo
**----- End of picture text -----**
Charity No: 208925
Company Registration No: 00441284
Registered Office:
Unit A, 82 James Carter Road, Mildenhall Industrial Estate, Suffolk, IP28 7DE, United Kingdom
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
42 43 45 46
2
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
3
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
4
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
5
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
6
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
7
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
• • • • • • • • • • • • • • • • •
8
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
• • • • • • • • • •
9
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
10
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
11
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
12
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
13
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
14
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
15
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
16
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
17
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
18
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
19
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
20
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
21
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
22
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
23
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
24
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
-
-
-
25
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
-
-
-
-
-
-
-
26
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
27
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
28
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
29
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
30
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
31
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
32
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
33
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
-
-
34
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
35
The Institution of Engineering and Technology Benevolent Fund (Foothold) Annual Report For the year ended 30 June 2022
## **13 March 2023**
36
Independent auditor’s report to the members of The Institution of Engineering and Technology Benevolent Fund
## Opinion
We have audited the financial statements of The Institution of Engineering and Technology Benevolent Fund (the ‘charitable company’) for the year ended 30 June 2022 which comprise the statement of financial activities, balance sheet, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
## In our opinion, the financial statements:
- Give a true and fair view of the state of the charitable company’s affairs as at 30 June 2022 and of its incoming resources and application of resources, including its income and expenditure for the year then ended
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- Have been prepared in accordance with the requirements of the Companies Act 2006
## 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 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. 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 Institution of Engineering and Technology Benevolent Fund'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.
37
Independent auditor’s report to the members of The Institution of Engineering and Technology Benevolent Fund
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 trustees’ 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, 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.
## Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- The information given in the trustees’ annual report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- The trustees’ annual report, has been prepared in accordance with applicable legal requirements.
## Matters on which we are required to report by exception
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 misstatements in the trustees’ annual 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:
- Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- The financial statements are not in agreement with the accounting records and returns; or
- Certain disclosures of trustees’ remuneration specified by law are not made; or
- We have not received all the information and explanations we require for our audit; or
38
Independent auditor’s report to the members of The Institution of Engineering and Technology Benevolent Fund
- The directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the trustees’ annual report and from the requirement to prepare a strategic report.
## Responsibilities of trustees
As explained more fully in the statement of trustees’ responsibilities set out in the trustees’ annual report, 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
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.
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 are set out below.
## Capability of the audit in detecting irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We enquired of management, which included obtaining and reviewing supporting documentation, concerning the charity’s policies and procedures relating to:
39
Independent auditor’s report to the members of The Institution of Engineering and Technology Benevolent Fund
- Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- The internal controls established to mitigate risks related to fraud or noncompliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
- We obtained an understanding of the legal and regulatory framework that the charity operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the charity from our professional and sector experience.
- We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
-
- We reviewed any reports made to regulators.
- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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
40
Independent auditor’s report to the members of The Institution of Engineering and Technology Benevolent Fund
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.
Fleur Holden (Senior statutory auditor)
17 March 2023
for and on behalf of Sayer Vincent LLP, Statutory Auditor
Invicta House, 108-114 Golden Lane, LONDON, EC1Y 0TL
41
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
Statement of financial activities (incorporating an income and expenditure account)
For the year ended 30 June 2022
|Note
Income from:
3
3
Employment advice and support
3
3
4
Reconciliation of funds:
15
Investment income
Total income
Expenditure on:
Events and sundry income
Donations
Legacies
Raising funds
Total expenditure
Charitable activities
Advice and guidance
Financial Support
Transfers between funds
Net movement in funds
Total funds brought forward (as restated)
Net
(expenditure)
/
income
before
net
(losses)/gains on investments
Total funds brought forward
Net (losses)/gains on investments
Net (expenditure)/income for the year
Total funds carried forward|Unrestricted
General
Fund
£
588,377
263,191
461
409,813|Restricted
Speirs Fund
£
-
-
-
91,660|Speirs
Permanent
Endowment
£
-
-
-
120,230|
2022
Total
£
588,377
263,191
461
621,703|Unrestricted
General
Fund
£
548,795
180,874
343
383,133|Restricted
Speirs Fund
£
-
-
-
78,444|Speirs
Permanent
Endowment
£
-
-
-
105,726|
2021 Total
£
548,795
180,874
343
567,303|
|---|---|---|---|---|---|---|---|---|
||1,261,842|91,660|120,230|1,473,732|1,113,145|78,444|105,726|1,297,315|
||243,629
114,554
33,436
1,893,635|19,395
-
156,953|24,975
-
-|287,999
114,554
33,436
2,050,588|205,056
219,307
161,011
2,135,354|16,879
-
-
158,690|21,413
-
-
-|243,349
219,307
161,011
2,294,044|
||2,285,253|176,348|24,975|2,486,576|2,720,728|175,569|21,413|2,917,711|
||(1,023,411)
(1,151,257)|(84,688)
(282,220)|95,255
(354,738)|(1,012,844)
(1,788,215)|(1,607,583)
2,759,286|(97,125)
581,766|84,313
762,105|(1,620,396)
4,103,157|
||(2,174,669)
-|(366,907)
114,257|(259,483)
(114,257)|(2,801,059)
-|1,151,703
-|484,641
103,717|846,418
(103,717)|2,482,761
-|
||(2,174,669)
17,946,412|(252,650)
3,833,313|(373,740)
5,084,147|(2,801,059)
26,863,872|1,151,703
16,794,709|588,358
3,244,955|742,701
4,341,446|2,482,761
24,381,110|
||17,946,412|3,833,313|5,084,147|26,863,871|16,794,709|3,244,955|4,341,446|24,381,110|
||15,771,743|3,580,663|4,710,407|24,062,813|17,946,412|3,833,313|5,084,147|26,863,871|
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Notes 15 to the financial statements.
42
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
## Balance sheet
|Balance sheet|||||
|---|---|---|---|---|
|As at 30 June 2022|||Company no. 00441284||
|Note
Fixed assets:
9
10
11
Current assets:
12
Liabilities:
13
14
15a
15a
15a
Total unrestricted funds
Investments
Cash at bank and in hand
Tangible assets
Debtors
Repayable grants
Restricted income funds
Unrestricted income funds:
Designated funds
Revaluation reserve
Endowment
The funds of the charity:
Creditors: amounts falling due within one year
Net current assets
Total net assets
Creditors: amounts falling due after one year
Total assets less current liabilities
General funds
Total charity funds|£
568,125
165,039|2022
£
10,880
23,565,726
279,558|£
256,584
277,630|2021
£
20,471
26,506,342
359,784|
|||23,856,164
251,649||26,886,597
37,275|
||733,164
481,515||534,214
496,939||
||13,890,084
1,239,377
642,282||15,180,728
2,670,647
95,037||
|||24,107,813
45,000||26,923,872
60,000|
|||24,062,813||26,863,872|
|||3,580,662
4,710,407
15,771,743||3,833,313
5,084,147
17,946,412|
||||||
|||24,062,813||26,863,872|
Approved by the trustees on 13 March 2023 and signed on their behalf by
Dr D Byrne OBE BSc MBA PhD CEng HonFIET Chairman
43
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
## Statement of cash flows
|For the year ended 30 June 2022|||||
|---|---|---|---|---|
|Note
17
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year
Cash flows from operating activities
Net cash provided by investing activities
Net cash used in operating activities
Cash flows from investing activities:
Dividends and interest from investments
Proceeds from sale of investments
Purchase of investments
(Increase)/Decrease in cash held for investment by
investment managers|£
£
(1,886,695)
621,703
5,228,113
(3,676,076)
(399,636)
1,774,104
(112,591)
277,630
165,039
2022||£
£
(2,407,998)
567,303
9,503,391
(8,485,092)
814,959
2,400,561
(7,437)
285,067
277,630
2021||
||||||
|||(112,591)
277,630||(7,437)
285,067|
|||165,039||277,630|
44
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
Notes to the financial statements
## For the year ended 30 June 2022
## 1 Accounting policies
## a) Statutory information
The Institution of Engineering and Technology Benevolent Fund is a charitable company limited by guarantee and is incorporated in the United Kingdom.
The registered office address is Napier House, 24 High Holborn, London, WC1V 6AZ.
## b) Basis of preparation
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) - (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
- c) Public benefit entity
The charitable company meets the definition of a public benefit entity under FRS 102.
- d) Going concern
The trustees has considered key risks and consider that there are no material uncertainties about the charitable company's ability to continue as a going concern.
The trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
- e) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
For legacies, entitlement is taken as the earlier of the date on which either: the Charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.
## f) Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Charity; this is normally upon notification of the interest paid or payable by the bank.
- g) Investment income and dividends
Investment income is included when receivable.
45
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
Notes to the financial statements
## For the year ended 30 June 2022
- 1 Accounting policies (continued)
## h) Fund accounting
- The assets managed by the charitable company are divided between two funds, the General Fund and the Speirs Fund. The Speirs Fund is further sub divided into two funds: Speirs Restricted Fund and Speirs Permanent Endowment Fund.
- The General Fund is an unrestricted fund, which receives funds, which are expendable at the discretion of the trustees in furtherance of the objects of the group.
- The Speirs Fund has a broader remit than the General Fund in terms of who it can assist and it will be used primarily in the area of care, assistance for the disabled and promoting independence where possible and assistance for carers.
Transfers may take place from the General Fund to the Speirs Fund but not vice versa in accordance with the Charity Commission scheme.
- Designated Funds represents the value of unrestricted non current assets (fixed assets, investments and repayable grants) which are not freely available as reserves for the charity.
- The Revaluation Reserve represents the accumulated unrealised gains made on the Charity’s unrestricted investment portfolio.
## i) Expenditure and irrecoverable VAT
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds relate to the costs incurred by the charitable company in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose.
- Expenditure on charitable activities includes the costs undertaken to further the purposes of the charity and their associated support costs.
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
- j) Grants payable
Grants paid comprise amounts paid to individuals needing financial assistance.
The full costs of grants are included in the statement of financial activities in the year in which they are approved and communicated to the recipient. If grants that are approved during the year have not been paid, in part or in full, by the end of the year, any unpaid amounts are included, as creditors in the balance sheet.
## k) Allocation of support costs
Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned on the following basis which are an estimate, based on staff time, of the amount attributable to each activity.
Administration and support costs and governance costs have been allocated on the proportion of time spent. These costs have then been reallocated to charitable activities and raising funds on the proportion of direct expenditure under each activity.
Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.
## l) Operating leases
Rental charges are charged on a straight line basis over the term of the lease.
46
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
Notes to the financial statements
## For the year ended 30 June 2022
- 1 Accounting policies (continued)
## m) Tangible fixed assets
Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
- Furniture and fittings
- Leasehold improvements
10% straight line 10% straight line
## n) Repayable grants
These are loans that have been made as part of our charitable activities and are included in the accounts at cost less any impairments and amounts repaid. An annual impairment review is undertaken and any impairment identified is charged to resources expended on charitable activities.
Outstanding grants are accounted for as assets of Foothold, and in some cases may be repaid after more than one year from the balance sheet date.
## o) Listed investments
Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. Any change in fair value will be recognised in the statement of financial activities and any excess of fair value over the historic cost of the investments will be shown as a revaluation reserve in the balance sheet. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The Charity does not acquire put options, derivatives or other complex financial instruments.
## p) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
## q) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## r) Creditors and provisions
Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
## s) Financial instruments
With the exception of the listed investments described above the charity 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.
47
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
Notes to the financial statements
## For the year ended 30 June 2022
## 1 Accounting policies (continued)
## t) Pensions
The charity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Charity in an independently administered fund. The pension cost charge represents contributions payable under the scheme by the Charity to the fund.
The pension charge in the accounts also relates to employees who are members of the IEE Superannuation and Assurance Scheme, a defined benefit pension scheme. Foothold is unable to identify its share of the underlying assets and liabilities in the scheme on a consistent and reasonable basis to meet the full requirements of the Financial Reporting Standard on Pensions, FRS 102. Therefore Foothold’s contributions to the scheme are accounted for as if the scheme was a defined contribution scheme.
- 2 Detailed comparatives for the statement of financial activities
|Total funds brought forward (as restated)
Total funds brought forward
Total funds carried forward
Transfers between funds
Net (expenditure) /income
Net movement in funds
Net (expenditure)/ income before gains / (losses) on
investments
Income from:
Donations
Expenditure on:
Net (losses) on investments
Advice and guidance
Financial Support
Total expenditure
Legacies
Events and sundry income
Investment income and interest
Total income
Charitable activities expenditure:
Raising funds|Unrestricted
£
480,121
71,505
799
482,905
1,035,330
185,973
414,745
1,848,786
2,449,504
(1,414,174)
(695,807)
(2,109,981)
-
(2,109,981)
18,904,690
18,904,690 -
16,794,709 -
|Speirs Fund
£
-
-
-
84,141
84,141
15,441
-
100,860
116,301
(32,160)
(113,393)
(145,553)
117,931
(27,622)
3,272,577
3,272,577 -
3,244,955 -|Permanent
Endowmen
t
£
-
-
-
116,776
116,776
20,943
-
-
20,943
95,833
(152,280)
(56,447)
(117,931)
(174,378)
4,515,824
4,515,824 -
4,341,446 -|2021
Total
£
480,121
71,505
799
683,822|
|---|---|---|---|---|
|||||1,236,247|
|||||222,357
414,745
1,949,646|
|||||2,586,748|
|||||(1,350,501)
(961,480)|
|||||(2,311,981)
-|
|||||(2,311,981)
26,693,091|
|||||26,693,091
24,381,110|
48
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
## Notes to the financial statements
## For the year ended 30 June 2022
## 3a Analysis of expenditure (current year)
|Staff costs (Note 5)
Staff recruitment and other costs
Investment management fees
Grants payable to individuals
Marketing & publicity
Rent & services
Travelling & meeting costs
Legal & professional fees
Accountancy and audit fees
Depreciation
Other costs
Support costs
Governance costs
Total expenditure 2022
Total expenditure 2021|Raising
funds
£
115,986
0
126,105
-
356
618
-
-
-
-
44,934|
Charitable activities|
Charitable activities||Governance
costs
£
131,919
3,200
-
-
-
-
1,233
16,150
5,390
-
930|Support
costs
£
146,090
1,967
-
-
53,431
277,732
-
-
-
9,591
159,534|2022
Total
£
525,348
5,167
126,105
1,256,747
53,787
278,350
1,398
19,296
5,390
9,591
205,398|2021
Total
£
559,094
13,762
121,563
1,669,713
75,884
275,226
212
29,633
9,130
9,570
153,923|
|---|---|---|---|---|---|---|---|---|
|||~~Welfare,~~
employment/
career, legal, money
and general advice
£
33,559
-
-
35,792
-
-
-
3,146
-
-
-|Employment
beyond
redundancy
£
10,382
-
-
10,779
-
-
-
-
-
-
-|Financial
Assistance
£
87,412
-
-
1,210,176
-
-
165
-
-
-
-|||||
||287,999
-
-|72,497
33,781
8,275|21,161
9,860
2,415|1,297,753
604,704
148,131|158,822
(158,821)|648,345
(648,345)|2,486,577
-
-|2,917,710
-
-|
||287,999|114,554|33,436|2,050,588|-|-|2,486,577|2,917,710|
||243,348|219,307|161,011|2,294,044|-|-|2,917,710||
All Grants are to individuals
49
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
## Notes to the financial statements
## For the year ended 30 June 2022
3b Analysis of expenditure (prior year)
|Staff costs (Note 5)
Staff recruitment and other costs
Investment management fees
Grants payable to individuals
Marketing & publicity
Rent & services
Travelling & meeting costs
Legal & professional fees
Accountancy and audit fees
Depreciation
Other costs
Support costs
Governance costs
Total expenditure 2021|Raising
funds
£
88,839
-
121,563
-
1,709
288
-
-
-
-
30,949|Charitable activities|Charitable activities|Charitable activities|Governance
costs
£
108,355
-
-
-
-
-
212
11,675
9,130
-
-|Support
costs
£
189,633
13,762
-
-
74,175
274,938
-
-
-
9,570
122,961|2021
Total
£
559,094
13,762
121,563
1,669,713
75,884
275,226
212
29,633
9,130
9,570
153,923|
|---|---|---|---|---|---|---|---|
|||Welfare,
employment/
career, legal,
money and
general advice
£
63,581
-
-
72,615
-
-
-
17,958
-
-
-|Employment
beyond
redundancy
£
19,180
-
-
92,967
-
-
-
-
-
-
-|Financial
Assistance
£
89,507
-
-
1,504,131
-
-
-
-
-
-
13||||
||243,348
-
-|154,154
54,803
10,350|112,147
41,102
7,762|1,593,651
589,133
111,260|129,372
(129,372)|685,039
(685,039)|2,917,710
-
-|
||243,348|219,307|161,011|2,294,044|-|-|2,917,710|
50
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
## Notes to the financial statements
## For the year ended 30 June 2022
- 4 Net income / (expenditure) for the year
This is stated after charging:
|This is stated after charging:|||
|---|---|---|
||2022|2021|
||£|£|
|Depreciation|9,591|9,570|
|Operating lease rentals:|||
|Property|153,449|119,155|
|Auditor's remuneration (excluding VAT):|||
|Audit|8,700|8,300|
|Other services|2,000|2,000|
- 5 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
Staff costs were as follows:
|Staff costs were as follows:|||
|---|---|---|
||2022|2021|
||£|£|
|Salaries and wages|448,918|484,285|
|Social security costs|46,626|49,099|
|Employer’s contribution to defined contribution pension scheme|18,040|25,710|
|Redundancy costs|11,765|-|
||525,349|559,094|
The Senior Management Team’s employee remuneration including national insurance and pension totalled £225,151 (2021: £219,731). Foothold now operates a defined contribution pension scheme for all permanent staff.
In 2022 one member of staff (2021: 1) received a salary excluding national insurance between £70,000 and £80,000.
Payments under the previous deficit reduction plan continue to be made until March 2027. Following the 2017 triannual review, an agreement was made and Foothold will continue to make additional contributions to reduce the share of the deficit on past service at the previous rate of £1,000 a month, which has been recognised with staff costs. This was fully recognised in 2018.
## 6 Staff numbers
The average number of employees (head count based on number of staff employed) during the year was 14 (2021: 15).
## 7 Related party transactions
No members of the Board of Trustees received any remuneration for the services to Foothold for the year. During the year travel and subsistence cost totalling £1,072 were reimbursed to 6 trustee (2021: £117 to 1 trustees), and £4,131 was incurred by Foothold on behalf of the trustees for meetings, training and recruitment costs (2021: £95). Foothold provides and pays for trustee indemnity cover.
Donations were made by Trustees in the year totalling £419 by 5 trustees, there were donations totalling £260 from 4 trustees in the prior year.
## 8 Taxation
The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
51
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
## Notes to the financial statements
## For the year ended 30 June 2022
## 9 Tangible fixed assets
|Cost
Net book value
At the end of the year
At the end of the year
At the start of the year
Charge for the year
At the start of the year
At the end of the year
Depreciation
At the start of the year
Additions in year|Leasehold
improvements
£
73,973
-|Furniture &
equipment
£
22,660
-|Total
£
96,633
-|
|---|---|---|---|
||73,973|22,660|96,633|
||59,177
7,397|16,985
2,194|76,162
9,591|
||66,574|19,179|85,753|
||7,399|3,481|10,880|
||14,796|5,675|20,471|
All of the above assets are used for charitable purposes.
## 10 Listed investments
|Cash held by investment broker pending
reinvestment
Fair value at the start of the year
Purchases
Sales proceeds
Realised and unrealised gain/(loss)
Fair value at the end of the year|General fund
(Unrestricted)
£
17,471,120
2,279,999
(3,760,838)
(1,151,257)|Speirs Fund
(Restricted)
£
3,808,200
634,695
(610,924)
(282,220)|Speirs
Permanent
Endowment
(Restricted)
£
4,957,176
761,383
(856,351)
(354,738)|£
26,236,496
3,676,076
(5,228,113)
(1,788,215)
2022
Total|
|---|---|---|---|---|
||14,839,023
238,109|3,549,751
229,753|4,507,470
201,620|22,896,244
669,482|
||15,077,132|3,779,504|4,709,090|23,565,726|
## 10b Listed investments (prior year)
|Fair value at the start of the year
Purchases
Fair value at the end of the year
Sales proceeds
Realised and unrealised gain/(loss)
Cash held by investment broker pending
reinvestment|General fund
(Unrestricted)
£
15,954,731
5,535,411
(6,778,308)
2,759,286|Speirs Fund
(Restricted)
£
3,047,120
1,332,606
(1,153,292)
581,766|Speirs
Permanent
Endowment
(Restricted)
£
4,149,787
1,617,075
(1,571,791)
762,105|£
23,151,638
8,485,092
(9,503,391)
4,103,157
2021
Total|
|---|---|---|---|---|
||17,471,120
78,150|3,808,200
62,558|4,957,176
129,138|26,236,496
269,846|
||17,549,270|3,870,758|5,086,314|26,506,342|
52
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
## Notes to the financial statements
## For the year ended 30 June 2022
|For the year ended 30 June 2022|||
|---|---|---|
|11
12
13
Trade creditors
14
Grants payable
Trade debtors
Creditors: amounts falling due within one year
Other creditors
Creditors: amounts falling due after one year
Defined benefit pension scheme
Defined benefit pension scheme
Other debtors
Accrued income & prepayments
Repayments
Accruals
Repayable grants at the end of the year
Repayable grants
Repayable grants at the start of the year
Debtors|2022
Total
£
359,784
(80,226)|2021
Total
£
360,384
(600)|
||279,558|359,784|
||2022
£
21,085
-
547,040|2021
£
12,948
6,416
237,220|
||568,125|256,584|
||2022
£
39,771
47,991
155,961
12,000
225,792|2021
£
151,766
3,793
106,331
12,000
223,049|
||481,515|496,939|
||2022
£
45,000|2021
£
60,000|
||45,000|60,000|
At 30 June 2022 Foothold had future commitments of £60,000 in respect of the pension scheme (2021: £72,000). £12,000 is within current liabilities. Contributions of £1,000 a month will continue to be made until March 2027.
53
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
## Notes to the financial statements
## For the year ended 30 June 2022
## 15a Movements in funds (current year)
|Movements in funds (current year)||||||
|---|---|---|---|---|---|
|Restricted funds
Endowment funds
Total designated funds
Revaluation reserve
General funds
Total unrestricted funds
Total funds
Designated funds:
Fixed assets
Repayable grants
Investments|At 1 July 2021
£
3,833,313
5,084,147
20,471
359,784
14,800,473|Income &
gains
£
91,660
120,230
-
-|
Expenditure &
losses
£
(458,567)
(379,713)
(9,591)
(80,226)
(1,200,827)|Transfers
£
114,257
(114,257)
-
-
-|At 30 June
2022
£
3,580,662
4,710,407
10,880
279,558
13,599,646|
||15,180,728|-|(1,290,644)|-|13,890,084|
||2,670,647
95,037|1,261,842|(1,431,270)
(714,597)|-
-|1,239,377
642,282|
||17,946,412|1,261,842|(3,436,511)|-|15,771,743|
||26,863,872|1,473,732|(4,274,791)|-|24,062,813|
The narrative to explain the purpose of each fund is given at the foot of the note below.
## 15b Movements in funds (prior year)
|||Income &|Expenditure &||At 30 June|
|---|---|---|---|---|---|
||At 1 July 2020|gains|losses|Transfers|2021|
||£|£|£|£|£|
|Restricted funds|3,244,955|660,210|(175,569)|103,717|3,833,313|
|Endowment funds|4,341,446|867,831|(21,413)|(103,717)|5,084,147|
|Designated funds:||||||
|Fixed assets|30,041|-|(9,570)|-|20,471|
|Repayable grants|360,384|-|-|(600)|359,784|
|Investments|14,669,276|131,197|-|-|14,800,473|
|Total designated funds|15,059,701|131,197|(9,570)|(600)|15,180,728|
|Revaluation reserve|1,285,455|1,385,192|-|-|2,670,647|
|General funds|449,553|2,356,042|(2,711,158)|600|95,037|
|Total unrestricted funds|16,794,710|3,872,431|(2,720,728)|-|17,946,412|
|Total funds|24,381,110|5,400,472|(2,917,710)|-|26,863,872|
## Purposes of restricted funds
The Speirs Fund has a broader remit than the General Fund in terms of who it can assist and it will be used primarily in the area of care, assistance for the disabled and promoting independence where possible and assistance for carers.
## Purposes of endowment funds
The Speirs Fund is further sub divided into two funds: Speirs Restricted Fund and Speirs Permanent Endowment Fund.
Transfers may take place from the General Fund to the Speirs Fund but not vice versa in accordance with the Charity Commission scheme. Also between the permanent endowment and restricted funds for the income.
## Designated Funds
Designated Funds represents the value of unrestricted non current assets (fixed assets, investments and repayable grants) which are not freely available as reserves for the charity.
54
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
## Notes to the financial statements
## For the year ended 30 June 2022
- 16a Analysis of net assets between funds (current year)
|Restricted
£
-
-
3,779,504
(198,842)
-|Endowment
funds
£
-
-
4,709,090
1,317
-|
Designated
funds
£
10,880
279,558
13,599,646
-
-|
Revaluation
reserve
£
-
-
1,239,377
-
-|General funds
£
-
-
238,109
449,174
(45,000)|Total funds
£
10,880
279,558
23,565,726
251,649
(45,000)|
|---|---|---|---|---|---|
## 16b Analysis of net assets between funds (prior year)
|Restricted
£
-
-
3,870,758
(37,445)
-|Endowment
funds
£
-
-
5,086,314
(2,167)
-|
Designated
funds
£
20,471
359,784
14,800,473
-
-|
Revaluation
reserve
£
-
-
2,670,647
-
-|General funds
£
-
-
78,150
76,887
(60,000)|Total funds
£
20,471
359,784
26,506,342
37,275
(60,000)|
|---|---|---|---|---|---|
17 Reconciliation of net income / (expenditure) to net cash flow from operating activities
|Net income/ (expenditure) for the reporting period
(as per the statement of financial activities)
Depreciation charges
Losses /(Gains) on investments
Dividends and interest from investments
Decrease in repayable grants
(Increase) in debtors
(Decrease) in creditors
Net cash (used in) operating activities|2022
£
(2,801,059)
9,591
1,788,215
(621,703)
80,226
(311,541)
(30,424)|2021
£
2,482,762
9,570
(4,103,157)
(567,303)
600
(45,780)
(184,690)|
|---|---|---|
||(1,886,695)|(2,407,998)|
55
The Institution of Engineering and Technology Benevolent Fund (trading as Foothold)
## Notes to the financial statements
## For the year ended 30 June 2022
## 18 Operating lease commitments
The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods
|Two to five years
Less than one year
One to two years|2022
2021
£
£
101,729
128,500
-
101,729
-
-
Property|2022
2021
£
£
101,729
128,500
-
101,729
-
-
Property|
|---|---|---|
||101,729|230,229|
## 19 Legal status of the charity
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.
56