2020-12-31-accounts - The Benevolent Fund Of The Institution Of Mechanical Engineers

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Report of the Trustees					1-15
Independent Auditors	Report to	the Members	of	the	16-19
Benevolent Fund ofthe	Institution	of Mechanical		Engineers
Statement of Financial	Activities				20
Balance Sheet					21
Statement of Cash Flows					22
Accounting Policies					23-25
Notes to the accounts					26-30

VALUE	ASSET	INVESTMENT		BENCHMARK
29.8%	Equities	M&G Charifund		FTSE All Share Index
36.2%	Equities	M&G Global Dividend	Fund	FTSE All Share Index
14.4%	Equities	Fidelity Institutional	Funds	FTSE All Share Index
10.4%	Multi Asset	Cazenove Charity Multi Asset		FTSE All Share Index
		Fund
6.5'yo	Property	Charities Property Fund		HSBC PUT Index
2.7%%uo	Equities	COIF Investment Fund		FTSE All Share Index
0.5%	Cash	COIF Deposit Fund		London Interbank Rate
0.0%	Bonds	COIF Fixed Interest	Fund	WM Co. UK Bonds

Trustees	Trustees				Committees	Committees	TS Mtgs Attended	Notes
Chair (part year)			Brian Cooke		1,2,3,6		2	Retired as Trustee/Chair	17July 2020
Chair (part year)			Bruce Dagley		1,3,7		4	Elected Chair 17Ju/y 2020
Deputy	Chair		Anne Woodbridge		1,2,6		4
Deputy	Chair		Christian Young		1,7		4
Treasurer			Andrew Rowland		1,3		2	Elected Trustee/Treasurer	17Ju/y 2020
Trustee			Tony Frater		1,7		4
Trustee			Nicole Rinaldi		1,4		4
Trustee			Sarah Templey		1,2,9		4
Trustee			Chris Taylor		1,2		4
Trustee			Christine Clark		1,3,7		4
Trustee			John Cornforth		1,6,8		4
Trustee			Chirantan Shukla		1,3		3
Trustee			Farah Baksh		1,5		2	Elected Trustee 17July	2020
Chief Executive		&	Anni Broadhead		1,2,3,4,5
Company Secretary
Key to	Committees
1	Member	of the	Grants Committee
2	Member	ofthe	Personnel Committee
3	Member	ofthe	Finance Committee
4	Lead on	Communications
5	Lead on	IMechE relations
6	Member	ofthe	New Application		Panel
7	Member	ofthe	Student ik Apprenticeship			Panel
8	Member	ofthe	Office Decision	Panel
9	Lead on	General Data Protection			Regulations

				Total	Total	Total	Total
				(Unnmtricted)	(Unrestricted)	(Unrestricted)	(Unnmtricted)
				GeneralFunds	Designated	Funtls	Funds
			a 0Z	2020	Funds 2020	2020	2019
				f	f.
Income and Endowments	from:
Denstions snd Legacies
Donations, bequests			1	288,368		288,368	294,751
investments
Interest 6dividends			2	901,425		901,425	1,001,249
Total				1,189,793		1,189,793	1,296,000
Expenditure on:
Raising funds				7,242		7,242	7,274
Charitable acliviTiss			3	698,0a)		698,036	655,277
Total				705,278		705,278	662,551
Net gains/(losses) on investment		assets	9	(506,436)		(506,438)	3,741,555
Nef income /(expenditure)				(21,921)		(21,921)	4,375,004
Transfers			14	(8,000,000)	8,000,000
Net movement in funds				(8,021,921)	8,000,000	(21,921)	4,375,004
Reconcigsgon offunds:
Total funds brought forward			14	31,169,920
Total funds carried forward

			Total	Total
			Funds	Funds
			2020	2019
		Notes	6	8
Fixed Assets
Tangible assets			1,322	2,907
Investments:-
Stock Market Investments			30,137,262	30,306,756
Total fixed assets			30,138,584	30,309,663
Current Assets
Debtors		12	54,934	62,384
Cash at bank and in	hand	11	83,776	61,311
Loans (due after more than one year)		10	1,003,277	861,708
Total current assets			1,141,987	985,403
Liabilities
Creditors: - amounts	falling due within one year	13	132,572	125,146
			132,572	125,146
Afet cunent assets			1,009,415	860,257
Totai assets less current liabilities			31,147,999	31,169,920
The funds ofthe charity:
Unrestricted funds			23,147,999	31,169,920
Designated funds			8,000,000
			31 147999	31 169923

		Notes	2020	2019
			F
Cash flows from operating Net cash used in operating	activities: activities		~842,018	~236.120
Cash flows from investing	activities:
Dividends and interest from investments			569,223	282,527
Bank interest received			77	122
Purchase oftangible fixed	assets
Purchase of Investments				(265,000)
Proceeds from sale ofinvestments			5,284	215,000
Change in cash held by investment manager			(10,101)	(50,360)
Net cash provided by investing activities			664483	182280
Changein cash and cash equivalents in the reporting			22,465	(53,831)
Cash and cash equivalents	at the beginning ofthe reporting	period	61,311	115,142
Cash and cash equivalents	at the end ofthe reporting		83,776	61,311

				5
Net (expenditure)/income	forthe reporting	period	(21,921)	4,375,004
Adjustments for:
Dividends, interest from	investments		(901,425)	(1,001,249)
Depreciation charges			1,585	1,585
Decrease / (increase) in	debtors		(134,119)	51,449
Increase / (decrease) in	creditors		7,426	78,646
Gains / (losses) on investments			506,436	(3,741,555)
Net Cash used in operating activities			(542,018)	(236,120)

Net Debt Note
	31/12/2019	Cashflows	31/12/2020
Cash	61,311	22,465	83,776
	61,311	22,465	83,776

1	Incoming Resources						2020	2019
	Donations &Gift Aid Reclaim						285,453	292,848
	JP Dudin Bequest						2,915	1,903
							288368	294751
2	Investment Income						2020	2019
							E
	Dividends &loan stock interest-				UK	investments	901,348	1,001,127
	Bank Interest						77	122
							901425	1001249
3	Charitable Activities						2020	2019
							6	r.
	Grants for the relief of poverty						346,514	297,354
	Allocation from support costs			(note 4)			351522	357923
							698036	655277
	All grants were made to	individuals.				During the year there	were 417beneficiaries (2019:500).
4	Support Cost						2020	2019
	Training Volunteers						2,188	5,837
	Staff Costs						238,746	200,194
	Grants committee expenses						23	1,506
	Visiting beneficiaries						915	4,358
	Publications						1,044	985
	Printing &Stationery						1,734	1,578
	Postage &telephone						2,663	2,298
	Communications &database						29,261	35,168
	Depreciation						1,585	1,585
	Extranet for use by Volunteers						204	2,153
	Accommodation charges						25,806	25,806
	Accounting &Computer	Services					25,524	25,524
	Travel &subsistence						362	530
	Bank charges						1,375	1,679
	Subscriptions to professional			bodies			2,020	2,732
	Sundry						1,899	417
	Loan write off							22,694
	Allocation from governance		costs (note 5)				16,173	22 870
							351 522	357 923

Other: governance	Other: governance	costs	2020f	2019
Audit fee (current year inc VAT)			9,920	9,540
Legal Fees			1,776	1,933
Committee	expenses		2,502	9,518
Compliance	costs &	insurance	1,975	1,888
			16173	22 879

Audit fee (current year inc VAT) Legal Fees Committee expenses Compliance costs &insurance	9,920 1,776 2,502 1,975 16173	9,540 1,933 9,518 1,888 22 879
No payments have been made to the auditor ortheir associates	in respect ofnon-audit	work during the
year.
Staff Staffcosts comprise:-	2020f	2019f
Salaries and other emoluments	194,180	164,712
Social security costs	18,845	15,947
Other pension costs	24,666	16,612
Training	1,055	2,923
	238 746	259 164
Those earning over f60,000 in the year are:
	2020	2019
f60,001tof70,000
f70,001tof80,000

Trustee Board							2020f	2019f
Travel and subsistence		expenses			paid		2 5D2	9518
							No.	No.
Number ofmembers	who		claimed				8	12
No member ofthe Committee				received any remuneration		in respect ofservices to the Fund		for the year.
Fixed Assets - Furniture			and	Office Equipment			2020	2019
Cost
At 1 January							43,052	43,052
Additions
At 31 December							43,052	43,052
Depreciation
A(1 January							40,145	38,560
Amount provided							1,585	1,585
At 31 December							41,730	40,145
Net BookValue at 31		December 2020 and 31 December				2019	1 322	2 967

	Investments (at market value)			2020	2019
					6
	J P Dudin income account				1,283
	M&G Chari Fund Accumulation	Units		8,930,862	10,711,979
	M&G Global Dividend Fund Accumulation		Units	10,864,626	9,842,408
	Fidelity Fund Shares			4,314,304	3,812,607
	Cazanove Charity Multi Asset Fund Income Units			3,117,705	3,032,214
	Charity Property Fund Income Units			1,952,738	2,004,412
	CCLA COIF Charities Investment	Fund Income Units		814,483	765,523
	CCLA COIF Fixed Interest Fund	Units			3,887
	Total			29994718	DD 174313
	All investments are listed UK securities.
				2020	2019
				Capital	Capital
	Movements of investments			6	5
	Market value at 1 January			30,174,313	25,664,159
	Purchases and accumulations			332,125	1,502,051
	Disposal proceeds Net investment gain/(loss)			(5,284) ~506.436	(733,452) 3,741,555
				29,994,718	30,174,313
	Cash with investment manager			142,544	132,443
	Market value at 31 December			30,137,262	30,306,756
	Historic costs at 31 December			19,400,980	19,074,139
	Unrealised investment gains at 31 December			10736282	11 232 617
10	Loans			2020	2019
				6	6
	Brought forward 1stJanuary			861,708	792,523
	Additions			165,465	96,449
	Repayments Written off			(23,896)	(4,570) ~22.594
	Gamed forward 31stDecember			1 DD3 277	861 7DD

	Repayments Written off Gamed forward 31stDecember	Repayments Written off Gamed forward 31stDecember				1	(23,896) DD3 277 ~2	(4,570) 2.594 861 7DD
	These loans are interest free and		are repayable	to the Benevolent		Fund	from the estate ofthe
	beneficiaries in more	than one year. The amount		ofprovided	unsecured		loans in 2020 was 5126,020
	(2019:E110,020).
	Analysis ofChanges	in Cash	2020			Cash flow		2019
			5				6
	Cash at bank and in hand		83,776				22,465	61,311
	Cash with investment see note 9	manager-	142,544				10,101	132,443
			226320				32 666	193754
12	Other Debtors						2020	2019
							6
	Amounts due from the Institution		of Mechanical	Engineers			7,651	1,286
	Other debtors						47,283	61,098
							54,934	62,384

						2020
Land	and	Buildings
		Payments	in	less	than one year	22,712
		Payments	in	one	to five years	10,410
						22,122