Reglstered number: 00606601 Charity number: 244812 The Institute of Quarrylng Trustees, Report and Financial Statements For the Year Ended 31 December 2021 rfJDAINS ACCOUNTANTS
The Institute of Quarrying IA Company Llmited by Guarantee) Contsnts Page Reforencg.and Administrative Detalls of the Company, Its Twsteos and Advisers Trustee8' Report Tru5tges' Responslbllltles Statement Independent Audltors, Roport on the Flnanclal Statement8 statement of Flnanclal A¢tiviti05 3-12 13 14-17 18 Balance Sheet 19 Statemènt of Cash Flows 20 Not88 to the Flnanclal Statements 21-45
The Institute of Quarrylng IA Company Limited by Guarantee) Reference and Admlnlstrative Details of the Company¥ its Trustees and Advisor5 For the Year Ended 31 December 2021 Trustees M Riley, President VG Russell. Chairman 8 Williams, Deputy Chairman D Bagshaw R Allinglon P Williamson PFVV Cottrell BM Uphill MR Dobson HK Bailey (appointed 14 September 2021) TJ Corcoran {appoinled 14 September 20211 PK Redmond (resigned 14 September 20211 K Gough (resigned 14 September 2021} Company regl8tered number 006C6601 Charity reglsterBd number 244812 Reglslered offlce McPherson House 8a Regan Way Chetwynd Business Park Chilwell Nottinghamshire NG9 6RZ Company secretary JE ThoTne Independent audltors Dains LLP Statutory Auditor 2 Etruria Office Village Forge Lane Stoke on Trent Staffordshlre ST15RQ Page 1
The Institute of Quarrylng IA Company Limited by Guaranteg) Reference and Admlnlstratlve Detalls of the Company, Its Trustees and Advi$èr6 {contlnuedl For the Year Ended 31 Oecernber 2021 Bankern Lloyds Bank PIC Parliament Street Nottingham NG13DA Sollcltors Harvey Ingram Shakespeares LLP 20 New Walk Leicester LE16TX Investmènt Advlsors Investec Wealth and Inve51menl Beech House 61 Napier Street Sheffield S118FIA Page 2
The Institute of Quarrying (A Company Llmited by Guarantee) Trustees, Report For the Year Ended 31 December 2021 The Trustees present their annual report together with the audited flnancial statements of The Insts'tule of Quarrying for the year 1 January 2021 to 31 December 2021. The Trustees confirm that the annual report and financial statements of the company compty with the current statutory requirements, the requirements of the company's governing document and the provision of Accounting and Reporting Ch8rilie8.' Statement of Recommended Practice applicable lo charities preparing their accounts in accofdance with the Financial Reporting Standard appli¢able in the UK and Republic of Ireland issued in Octobef 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland {FRS 1021, the Charities Act 2011, the Companles Act 2006 and UK Generally Accepted Accounting Practice. SinGe the Company qualifies as small under sectlon 382 of the Companies Act 20CE, the Strategic Report required of medium and large companies under the Compani8s Act 2006 (Strategic Report and Directors. Report) Regulations 2013 has been omitted. Objectlves and a¢tlvltlo8 a. PollGigs and objgctivgs The Institute of Quarrying has charitable status and is a Gompany limited by guarantee. Its primary objective is 'To advance the science. practice and professionalism of quarrying throLtgh education, training and the encouragement of progressive improvements in standards of business, technical and environmental P8rformance'. In setting objectives and planning for activitie5, the Trustees have given due ¢onsideration to general guidancg published by the Charity Commission relating to public benefit, including the guidanGe 'Publlc benefit.. running a charity IPB21'. During 2021 the Institute continued lo deliver its five-year str8tegy incorporaÉing four strategic pillars lo support achieving rts charitable purpose. As part of its Strategy the Institute PTogre5sed negotiations with the National Stone Centre INSCI with the objective to align the Iwo organisalions and move the Institute to the NSC site based at Wirksworth in Derbyshire. b. Strategles for achlevlng oblectlveg The slr8tegy has four plllars., Be the global leader for StadardS in the mineral extraclives, profession Drive innovation and operational best practice Support the industry in driving he2tthy, sustainable workplaces Promote the positive impact of the industry and profession c. M¢mborship engaggmgnt and growth The Insts'lute seeks to grow its membership through new members Joining and retaining its existing membership base. As such the Inslilule sets targets and monitors performanGe for rnember retention and recruitment. The objective for the Institute in line with its charitsble purpose 15 to have an engaged and growing membership globalw. The primary route to membership retention is through member engagement and services. The Institute's regional Branch structure delivers regular even15 across the UK lo support members in developing and maintaining their technical knowledge, Through the Covid pandemic the ability to hold physical events was more limited, many events were held online lo conts'nue lo engage and support members. Page 3
The Institute of Quarrylng (A Company Limited by Guarantee) Trustees. Report l¢ontinued} For the Year Ended 31 Decombgr 2021 Objectlve8 and actlvltle81contlnuedl d. Tralnlng and edu¢atlon delivered The organisalion has developed and deliveied a number of courses which are delivered in the UK and Internationally in conjunction with its partnership with the University of Derby Gent for Mineral Products. The courses cover core areas of knowledge and skills with relatlon to the minerals extractive processes. The Institute remains committed to SUPPDrting the development of knovAedge and skills in key areas including Health and Safety. o. A¢tlvltl¢$ for a¢hieving obje¢tivos Through Industry relevant education. training programmes, good practic8 guldanoe materlals, oonferences and Branch technical events, the Inslrtule supports members in developlng quarrylng professionals, ski115 and competence lo enable them to.. make on-going improvements in the way that the essential raw malerfals whl¢h underpin our society are won from the ground, processed and delivered lo the market ensure the health, safety and welfare of the worlrforce an¢J site visitors Is accorded the highest Pfiority operate extractive siles in line with the best international standards for the prolettlon of the environment ensure members are mindful of their social responsibilities and the need to be good neighbour5 in the communities in which they operate l. Voluntee The Institute relies heavily on its volunteer nehyork lo support ils activities. from the B08rd of Trustees and Council through lo regional Branch commillees. The Branch committees provide a varied range of technical evenings and events lo enable members to access relevant Continuing Professional Development ICPD) supporting their development of knowledge and skills. The Branches also provide a valuable w2y for members to netsvork. Members also provide theii technical knowledge and experience in supporting the development of information, technical books. guidance and training ¢ourses enabling the Institute lo dellver Gurrent and relevant support to ils members and the wider industry. g. Flnanclal perfomwn¢o Financial performance is outlined in the report below and shows the day to day operational performanGe of the organisation alongside the performance in relats'on to projects. A¢hiovernonts and pgrfomiance Main achievements of the Company 2021 was a challengin9 year for the Institute with the conb'nuation of the Covid-19 pandemic which fundamentally changed the operational and volunteer activities planned for 2021. The Institute operated in line with the government regulations ané gLtidance throughout the year. This meant the closing ol the offices al Nottingham with stsff working remotely Irom home throughut rnost of the year and into 2022. As part of the work lo align with the NSC a formal project groL+P wa5 established with a project manager to support the development of plans for the Institute. The project covered areas of acb'vity including: Page 4
The Instltute of Quarrying IA Company Limited by Guarantee) Trusteos. Report Icontlnuodl For the Ygar Ended 31 December 2021 Achlevements and performance (contlnued) Governance - through developing an agreement with the NSC trustee5 to transfer control of the NSC to the Institute within the bounds of both partles Articles of Assoclalion. Relocation the practic81 development of plans for migrating the Institutes office and team to temporary accommodation at the NSC sile. This also in¢orpofftted the renting out of the Chitwell offices in Nottingham, The establishment of a strategy and plan to delSver a centre of excellence via a new buildingls} al the NSC site to house the NSC museum, visitor centre and cafè but lo also include capacity for a multifunctional space for events conferences, training and eéu¢ation for both members, industry and the public. . Kgy perfonnance indicators Th8 key performanc8 indicators for the 2021 period related to five key areas of operation,. OperalK)nal financial stability Membership recruitment and retention Membership services Delivery of education and training Delivery of projects lo support the ongoing development of the Institutes, capability to deliver ServIS to ils members and the industy The h'nancial report outlines the performance for th& year and highlights that a surplus of £69,649 was made for 2021. This was mainly due to a downturn in investment income and lower income from higher education courses. The membership numbers lor 2021 remained broadly flat in line with previous years. Retention figures were strong at 91.7'/0 and new members were in line with target. although target had been set at a lower rate considering the uncertainty around th8 pandemic. New membership services were delivered during 2021 as planned and detailed in the report below. The Inslitules. education programmes were delivered broadly in line with expectations both in Ihe UK and inlernats'onally. The Institute has also continued lo discuss with the Presidents, from the affiliated nats'onal institutes and Branches on collaborating lo deliver the Presidents, fund project and disCUS5ions around international activity. With the impa¢t of the pandemic the inlernabonal Presidents, agreed lo suspend the payments for 2021 and lo review again in 2022. Page 5
The Institute of Quarying IA Company Limited by Guarantee) Trustoe5' Report (continued} Forthe Year Ended 31 December 2021 A¢hl¢vements and performance (continued) b. Membership Servlce8 The Institute is committed to supporting members in developing and maintaining their skills anrj knowledge throughout their working lives. To complement the formal educational and training available, the Institute provides a range of services lo support members in sharing and accessing information in order to maintain their cpo. 2021 continued lo s8e challenges in delivering activities for members.. the In8titule continued to wort( wllh Branches lo deliver online technical events enabling members to engage in a range of subjeGts throughout the year. Many were recorded and made available online for member use on an ongoing basls. The Institute also worked in partnership with the IAT lo deliver a virtual su51ainability conference in October to support members of k)olh professions in malnlalning their knowledge in this critical area. With the easing of restrictions in the second half of 2021 the Inslilule was able lo hold ils Fellows lunch and student award Ceremony in October, agalll in partnershlp with the IAT. The Institute retained ils professional affiliab'on registration with the Engineering Council after the five year review look place in December. Branches The IQ Branches provKle 8 range of technical evenlngs, semlnars, sfjte visits and Safety days covering a wde range of topics to support members in gaining relevant CPD. The Branch meetings also provide members with the opportunily tQ Share best praGtice and discuss their experience5. The Branch events were severely affected by the pandemic, in some cases the IQ staff worked with Branch committees to deliver technical event conlenl in an online format covering key subje¢ts such as health and safety and technical updates on a range of issues. Quarry Management 'Quarry Management, has been the official monthly Joumal of The In51rtute of Quarrying for many years. It provides timely, relevant and tOPlC81 coverage of all the key issues, developments and advances in the aggregates sector. 11 is provided to all members as part of their subscription package and is also available on a subscription basis. In parlner$hip with QMJ Publishing Ltd. the magazine's publishers, a mobile phorse and tablet 'app' has been developed lo allow members and Other subscribers to read the journal in electronic format. Throughout the pandern the magazine continued to be produced in hard copy and sent to members lo ensure they received one of the key member benefts. Tgchnical Handbooks and guidance The Inslitule's range of handbooks for se in both educatlon and industry 1$ comprtsed of six hard copy volumes-.- Environmental Management Heakh & Safely Law in Quarries Crushirsg and Screening Asphalt Production Sand & Gravel Production Use of Explosives in Quarries Page 6
The In$tltute of Quarrying IA Company Limited by Guarantee) Trustoes, Report {continuedl Forthe Ygar Endod 31 December 2021 Achlevement5 and performance (contlnued) The Environmental Management book revision began In 2021 with the aim lo deliver revised elements during 2022. In addition. the Use of Explosives in Quarries book revision was also initiated wlh the updated version scheduled for publication in 2022. Woik continued to revlse and update the Good Practice Guide for Handling Soils In Mlneral Workings ahead of ils launch in early 2022. This work was carried out in partnership with Natural England and the We15h Government, along with stakeholders from Industy. Webslte The Institute runs an extensive website which offers a range of information for public view. Apart from se¢tlon$ about the Insbtute itseW, the website also Sncludes infomiation on= Meetings, conferences and events News and topical issues Feeds and links lo social media, provldlng up40-date comment on industry 18sueg Education and training Courses Case stL*dies on career paths within the industry and link5 to other industy sources Useful information about quarying and use of minerals in society c. Educatlon The Institute belSeves education and training is a life-long process starting with initial qualifuts'ons gained at school, college or university and following to vocational training and development through attendance at conferences. seminars, training courses, competence assessment schemes, workshops, technical meetings, sile visits and the updating of knowledge by reading the Inslitule's journals, technical and management papers and textbooks. Acadgmlc QualSficatlon8 The Institute has a partnershlp agreemont with the University of Derby for the dellvery of distance learning courses fiom Apprenticeship level 3 and foundation degrees through to fLtII honours degree. The courses provide clear academi¢ pathways to support individuals in gaining core te¢hni¢al knowledge whilst maintaining employment within the industry. This flexibility enables learners lo apply their learnin9 in real world situations. This approach has proven to deliver the skills and knowledge that are crhical to operators within the sector. Page 7
The Institute of Quarrylng A Company Limited by Guaranto91 Tru8tee8' Report (contlnuedl For the Year Ended 31 De¢ember 2021 Achlevements and perfomiance {contlnued} d. Standardg Setting Stsndard$ and gu(dance The Institute plays an active role in supporting Minerals Products Qualifications Council {MPQCI, the standards selling organisalion, for the manufacturing and process industries. This organisation is tasked with promoting the improvement of skills within its footprint at all levels and is supported by Industry, trade as$ocialions, professional bodies and trade unions. In 2021, the Institute continued in its role as Chair of the Quarries National Joint Advisory Committee IQNJACI. QNJAC is committed lo making the Industry a safer place, achieved through the raising of training, standards and competence. In essence, providing essential health & safety guidance to quarries. The Institute is also an integral member of the Strategic Forum in Health and Safety for the Mineral Products sector. Work continued to support Ihe health & safety 8genda wSth the ¢ontlnued push out of the ellminating entrapment campaign started in 2019. Work was also undertaken to start supporting the next CaMpan around pedestrian and workplace interfaces.. promoting resources from other bodies. and through QNJAC. developing a new self audit tod. During 2021 the Institute also contsnued its Professional Standards Committee (PSC} which is made up of volunteers from the membership and wider industry. The purpose of the committee is lo review the membership criteria and education pathways ensuring they meet the needs of the profession both in the short and long term. The committee has also reviewed the approach and process for members recording CPD. Contlnulng Profe881onal Developmenl Fellows, Members and Te¢hnl¢al Members of the Institute are required lo undertake a minimum of 30 hours of valid CPD each year.. a policy which is enforced by the Institute through random Sampling. All other membefs are strongly encouraged to lake part in the CPD programme, which is the recording of identified training and development needs as part of the process of lifelong learning. Certificates of Achievement are awarded once 100, 500, 750. 1,OIXJ, 1500 & 2000 hours of audited CPD aclivty have been logged. . Investment pollcy and performance Ouring the year, the investments made a realised profit on sales amounting to £97,426 and an unreallsed prof on the v81ue of investments amoullting 10 £212,403. Flnan¢ial rnvlow The Institute has primary income streams.. from membership subscftptions and from education and training activities. These are supplemented by income from investments. The year proved very challenging due to the Covid pandemic, and the Institute made a surplus of £69,649 after gains on investments. Membership income was broadly in line with expectation and previous perfomiance. Income from education was loweF than in previous years due to several factors. Fewer learners were on the Centre for Mineral Products courses during the year due lo the impael of Covid on recruitment. The funding level for the Level five Higher apprenticeship was also signrficantly reduced by government which impacted on the fees received by the Institute compared to previous years under its licence agreement. Page 8
The Institute of Quarylng {A Company Limited by Guarantee) Trustees. Report Icontlnued) Forthe Year Endad 31 Docember 2021 Prlnclpal r18k8 and uncertalntleg The Trustees have reviewed the principle risks for the Institute and have highlighted the following concerns.. ExposuTe to market volatilty Listed investments At 31 December 2021, the Institute had reseNes of £2,719,766 invested in a number of publicly quoted funds. The Trustees recognise that such values can fall as well as rise during the year. For this reason the Trustees ensure that risks are oontrolled by a wide spread of investments in different asset classes with adequate reserves being retained to provide flnancial stability during limes when investment values have fallen. bl Unllsted investment QMJ Group Ltd was founded in 1924 by the Institute, which retains a 29.550kn stake in the company, currently valued at £572,786. The organisations historically shared both office accommodation and staff and QMJ has provided a significant proportion of the Institute's inGome over previous decades. The Trustees accept that profits in the publishing business will fluctuate at dSfferent points in the economic cycle and adequ8te reserves are therefore retained In olher fomis of Investment lo counter the effect of periodic reductions In dividend income. 2. Membershlp subscrSption income As subscriptions are often paid by the employer on behalf of an individual member, membership lo the Insb'tule 15 heavily reliant on the sUPPOrt of the major companies within the industry. Should the support of one or more of those companies be withdrawn for any reason, then the membership and subsequent subscription income would be reduced. Thus, the Trustees consider it appropriate to hold reserves against this eventuality. Education and Iraining income Revenue from the courses run in partnership with the University of Derby realised £158,458 in 2021 and represented the largest Single income stream for the Instrtute. The direct deltvery of IQ training in the UK and overseas represented the IQ fuffilling Its remit to support the progression of development of individuals within the industy. 2021 saw training in a range of locations globally including the Middle East and Europe. b. Material Investments pollcy The principles governing de¢ision$ about investm8nts for the Institute are in accordance with the fequiremenl$ of the Trustees Act 2000. The s¢heme assets are held in trust by the Trustees. The investment powers of the Trustees are set out in clause 3F of the Memorandum of Associab'on and the powers granted thereby are wide. The inanagemenl of the assets is performed by Investec Wealth & Investment Limrted. The Trustees have established an investment policy for the Institute's funds and wlhin that policy have make specific provlsion for environmental and ethical considerations. The Trustees do not restrict their investment manager by imposing social, environmental or ethical considerations to be taken into account in the selection, retention and realisation of Inveslmenls. However, the Trustees have made their views on making socially responsible investments known lo the investment managers. The fund managers exercise, at their discretion, any vofjng rights attaching to the scheme's investments. Page 9
The Institute of Quarrying IA Company Limited by Guarantee) Trustees. Report Icontinuedl For the Year Ended 31 December 2021 c. Reserves policy The unrestricted reserves held 8131 December 2021 amounted tp £3,735,576, whih includes designated funds of £151,OOD in respect of the revaluatlon of investment propety, an Increase of £53,616. Income generated from unrestricted reserves are needed to cover administration and support costs and to provide funds which Can be designated lo specific proje¢ts The amount of rgslricled reserves held at 31 December 2021 amounted to £191,069, an Increase of £16,033. The total reserves hekl at the year-end was £3,926,645. As a result of the review into the principal risks and uncertainties, the Truslees consider the reseNes lo be adequate lo produce a revenLte stieam lo maintain its ability to carry out ils ststed objectives. Depletion of the overall level of resetves would jeopardise the income stream 8nd threaten the ability of the Institute to fulfil ils aims 8nd the Trustees will continue to revlew its policy in the context of the circumstances affeclng the Institute. d. Golng ¢onGern The Trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concem basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies. structure, govemance and management a. Constltution The Instllule of Quarrying is governed by its Memorandum as passed by a special resolution dated 9 October 2003 and Articles of Association as passed by special resolution dated 8th December 2015. The principal object of the Company is 'lo advance the science, practice and professionalism of quarrying through education, training and the encouragement of progressive improvements in standards ol business, technical and environmental performance,. In 2021 the Board of Trustees amended the Articles of Association to Increase the number of co-opted members on the Board to three as part of Its work wSth the NSC. The Revision5 were presented al the AGM in September of 2021 for voting by members and were unanimously aGcepled al the meeting. b. Methods of appolntment or electlon of Trusteos Trustees are elecleLI lo the Board as set out in the Articles of Association and on the basis Of the experience and the contribution the individuals are able lo make to the work of the Institute. Many are in senior management positions in large businesses and a high proportion of the Trustees also have experience of working on local Branch committees. ¢. Poli¢iè$ adoptod for the induction and training of Trustoes On being elected, all Trustees are issued with a detailed guKlance note setting out the duties and responsibilities of a trustee of a registered chaTity. Page 10
The Institute of Quarrying (A Company Limited by Guarantee} TrustO8s' Report Icontinuedl Forthe Year Ended 31 December 2021 Structure, govemance and management {continuedl d. Pay pollcy for key management personnel The InslitLrte's Trustees are responsible for the remuneration of the Chsef Executive and other senior members of staff. ¢. Organlsational structure and decision making The Board of Trustees normally meets quarterly lo review the aims and objectives of the Instite, to review the results of the company and to discuss key strategies and plans for the ongoing and future directiorb of the company. The Council of represenlatwes supports the work of the Board of Trustees. The Council is comprised of member representatives and those interested in the activities of the Institute to express views and opinions on mallers of poIiGy, activities. strategy and professional and other matters with which the Insts'tute is involved. Day lo day management of the Institute's affairs is delegated lo the Chief Executive, who is a paid member of staff and not a Trustee of the Institute. The Trustees meets regularly with the Chief Executive and with other members of staff from time to time in order to apply sound governance lo the Instilule's affairs and ensure that its policies, strategies and legal and ethbcal duties are being discharged in aG¢ordanGe wth Its orders. f. Related party relatlon$hlps No member of the Board of Trustees held any interest in the funds of the charity- During the year. related paty transactions occurred with.. QMJ Publishing Limited, a company in which The Institute of Quarrying has a material interest g. Trnstees, Ind8mnltle8 The Trustees have assessed the major risks to which the Institute is exposed, ifi particular those related lo the operations and finanGes of the Company, and are satisfied that Systems and procedures are in place to miligale the exposure lo the major risks. In 2020, the Board eslablishe(l a Finance, Audit and Risk Committee, comprising of three members of the Board to have oversight of the organisalional risks and investrnent strategies. P8ge11
The IDslltul• of Con¥>Any Lhnltgd ty Guarante0) Tfustegs. Report (contlnued) F¢rlhfr Year Endgd 31 Decembor2021 Plans for futjwè Poriots In Ilne wllh the strategie plllaTr. a roadmap has beon d8wdloFd to support th9 progress dEthng 2020 and th8 ye8rs b8yond. Tha activitla8 for 8ach pllar are ouminad befow: Be the global leader In slandards forthe mlnerdl extraclk)n professlon 8s18bll8h IQ S8 as the fX)mpelence and capabllity benchmark for profes5ionaly promote sthemes recogn181ng corprrfats cornmftment to best praolt¢e and commltrnent to rnalntalnlng CPD creato dedicated support pathwa for profes8lonal$ entwing Ihg IrKlusty la standards. member8hlp and educalon ¥8 rec4)gnised ty all empwern Promote the p111¥0 impact of the industyThl professlc pmmots tho IQ, industy and careers avallabl8 to 5UPPOrt securfrKJ new tafgnt promots 8Th1 celebrat8 the knTrJvallve work of m8mbeTS In tsvdgping th8 industy SUprtIng the Industy in drfving healthy. sustainablg W0p1a work vilth othor8 to 8UPPOrt prfortty industy initiabves such as QNJAC ond the Mlngrd8 Strategic Forum $upp(xt members In developlng core comtAtsndes In Health and Safety support membgrs in devejoplng skllls and capability to delfver a sustaln8ble Industy support members to devdop skil& and capabllty in deltvering positlve envlronmental syJtcomes Drive innovallon and Operati(01 best practi share leadlng technical procos5 innovation 1h members support members wEth rolovant CPD opp)rbJnifi8 collaborote with pathers kn dev8lopltYJ teadlng research prolects Alongside the works agalnsl Ihe plllars. the project to align with tho NSC 8$ d&talJed prevlously fomi a core element of the Institute's work over Ihe next five lo 10 year period ag tt seek8 lo eslablish th8 stle as a Gentre of excellenGe. Dlsclogurn of Inforniallon 10 audho Eath ofth• pa( who are Trusteos at thg tima when thls TTU8te88' Report ts apwoved has confinngd that so far as that TN$tee 1$ aware. there 18 no relevant audlt of vthlch the charltys audltors a unawarn, and Ihat Trustee has tsken all th8 St8ps that twght to hav8 b89n as a Trust09 in order to i* aware of any rolev8nt8LMIEt Inforynatlon and to establtsh that the ¢harftrf8 alItr)r8 are aware of that infoTmaliDn. Audllors The audIto, Dalns LLP. havg Indicated their willin9nesS to continue in Offe. The deslgnated TNstees wlll propose 8 molion reappDinUng the audltOTS at a meeting of the Truste8s. Approved by order oflhe member8 ofth8 board of Trustees and siwed on their bghafby. V G Russo11 Chaimian Oate:
Tho Institulo of Quarrying (A Company Llmltsd by Guarantso) statemont of Trustoes. rMponslbHRIqs For Ih•Y•ar Ended 31 Decombor 2021 Th8 Trustees (who are abo the dlr8Ctor8 of the Company for tho purposes of company lawl 8re r8spon8lble for pr6parfng tho Trustees, Report and tha flnancial statsmonts In accoidancg wth appllcable law and Unyted Klngdom AOuntIng Standards (UnSted Klngdom Genor Accepted Acwuntlng Praclice Cornpany law roquim5 the Tnlee8 to prepare finan¢io1 stalements for each Ilnandal Yr. Undar ¢ompany law. th8 Trustoos must not approve thg financial statements unless they are satt5fied that they giv8 a true and falr view of fhe sf8te of affalrs of the Company and of its Incoming rJOUr¢95 and applcallon ofresources. Indudlng its incom8 and expendtlum. forthat period. In preparlng these llngndal statemants. Ihe Twstses aro requlrod lo.. 8elad sultablg aUntY wlith and then appty*frrn con8iskntI obser¥e tha methots and prlndpl8s oflh8 Charttles SORP (FRS 102>," mBke ludgm8nts 8nd atxounllng e3llmatets that ara reasonabl8 and wudentr. Stato wh8thor applicablè UK AuntIng Standards {FRS 102> have been foNowed. Bubiect to any material d8pathre8 dlsdosBd and explalned In Ihe financial statements- prepare the financlal statements M tha gok)g concem ba818 unl8ss it 15 InapFW1ri8te to presw that th8 Companywill conttnue In bu8ine¥& The Trust888 are responslble for ke8plng adequate accounllng records that org sufflclent to show and exklaln Ihg CoMpanS transactions and disclose wth reasonable arxuracy at any tlme the financial posilk)n of the Company and enabfg them to ensure that Ihe flnanclal statements CoMY with the Companies Act 2006. They are afso responsible for safeguarding the assets of the Company and hence for tsktng reasonablo 8teps for Iha prevontion and do140 of fraud and olher Irregul8rllle8. Approved by order ofthe mambers ofthe board ofTrustee6 and ¢)n Its b¢tAlf by. V G Ryssoll Chairman &/? PaAg 13
The Institute of Quarrying IA Company Limited by Guarantee) Independent Auditors. Report to the Trustees of The Institute of Quarrylng Oplnion We have audited the linancpl statemenls of The Institute of auairying {Ihe 'charilable company,) for the year ended 31 December 2021 whi¢h Gomprise the Statement of Financial Activities, the Balance Sheet, the Statement of Cash Fbows and the related notes. including a summary of significant accounting policies. The financial reporting Iramework that has been applied in their preparation is applicable law and unit TrQngdom A¢¢ounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Pra¢li¢el. In our opinion the financial statements.. give a true and fair view of the stale of the charitable company's affairs as at 31 December 2021 and of its incoming resour¢e$ 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 Accounb'ng Practice., and have been prepared in a¢cordan¢e wlth the requirements tsf the Companies Act 2006. Basls for oplnion We conducted our audit in accordance th Intern8tion81 Stsndards on Altdits'ng {UKI IISAS IUK)} and applicable law. Our responsibilities under those standards are further described in the Auditors, 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 lo our audit of the financial statements in the United Kingdom, including the Financi81 Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in aOrdanCe with these requirements. We believe that the audit evidence we have obtained is Sufficient and appropdate to provide a basis for our opinion. Conclusions relating to golng concgin In auditing the financial stalemenls, 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 maleiial uncertainties relating to events or conditions that, indivldually or Collectively, may cast significant doubt on the charitable company's ability to continue as a going conrn for a period of al least e1ve months from when the financial statements are authortsed lor issue. Our responsibilities and the responsibilities of the Trustees with respect to going concern are descrlbed In the relevant sections of this report. Page 14
The Instltute of Quarrylng IA Company Limited by Guarantee) Independont Audltor8' Report to the Trustees of The Institute of Quarrying leontinued) Oth9r information The other infomiation comprises the infomiats'on included in the Annual Report other than the flnancial statements and our Auditors, Report Ihereon. The Trustees are responsible for the other information contained wrthin the Annual Report. Our opinion on the financial statements does not Gover 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 infomation is materially inconsistent with the financial ststements 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 delemine whether this gives rise lo 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 infomiation, we are required to report that fact. We have nothing to port in this regard. Oplnlon on other matter6 prescribed by the Companleg Act 2006 In our opinion. based on the wort( undertaken in the course of the audit.. the information given in the Trustees, Report for the financial year for vthich the financial statements are prepared is consistent with the financial statements. the Trustees, Report has been prepared in accoTdance with applicable legal requirements. Matter5 on whlch w9 are roqulrgd to roport by oxceptlon In the light of our knowledge and understanding of the chadtable company and ils environment obtained in the course of tho audit, we have not identified material misstatements in the Trustees, Report. We have nothing to report in respect of the following matters in relation lo which Companies Act 2006 requires us lo report to you if, in our opinion., adequate accounting records have not been kept, or retums adequate for our audit have not been reiVed from branches not visited by us.. or the financial slalements are not in agreement with the accounting records 2nd retums., or certain disclosures of Trustees, remuneration specified by law are not made., or we have not received all the information and explanatnS we require for our auditr, or the Trustees were not enlitlÈd to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemption5 in preparing the Trustees, Report and from the requlremenl to prepa a Strategic Report. Rosponslbllltles of trustees As explained more fully in the Trustees, Responsibilities Statement. the Trustees Iwho are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for Sltch internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from mater1 misstatement, whether due to fraL*d or eiror. In preparing the financial statemen15, the Trustees are responsible for assessing the charitable companls ability lo conts'nue as a going concern, disclosing, as applicable. matters related to going ¢on¢ern and using the going concern basi5 of aGcounling unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no reali5tlG alternative bul to do so. Pag815
The Institute of Quarrying A Company Limited by Guarantee) Independent Audltors. Report to the Trustees ol The Institute of Quatrying l¢onlinued) Audltors. respon8lbllltles for the audlt of the flnanclal 8tatements Our objectives are to obtain reasonable assuran about whether the financial statements as a whole are free fiom material misstatement, whether due lo fraud or error, and to issue an Auditors, Report that includes our opinion. Reasonable assurance Is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS (UK) will always delect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if. individualty 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 wth laws and regulations. We design procedures in line with our responsibililies, outlined above, to detect material misstatements in spect of Irregularllies, including fraud. The extent to which our procedures a ¢apable of detetsting IrgUIaTIties, Includlng fraud is detailed below. Our approach to identifying and assessing the risk5 of material misstatement in respect of irregularities. including fraud and non-compliance with laws and regulab'orss. was as follows.. the senior statutory auditor ensured that the engagement team collectivety had the appropriate competence, ¢ap2bilities and skills to identlfy or recognise non-compliance with applicable laws and regulations., we identified the laws and regulations applicable to the charitsble company through discussions with directors and other management, and from our commercial knowledge and experience of the sector.. we focused on specific laws and wulalions which we considered may have a direct material effect on the financial statements or the operations of the charitable company. inclLtding the financial reporting legislation. Companies A¢t 2006, Charities Act 2011, taxation legislation, anti-bribery, employment, and environmental and health and safety legislation., we assessed Ihe extent of Compliance with the laws and regulations identifled above through making enqUrIeS of management and Inspecllng legal correspondence., and identified laws and regulations were communicated within the audrt team regulady and the team remained alert lo inslan¢e$ of non-¢omplian¢e throughout the audit. We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an underslanciing ol how fraud might occur. by.. making enquiries of management as to where they considered there was suscepkn'bility to fraud, their knowledge of actual, suspected and alleged fraud- and considerin9 the internal controls in place lo mitigate risks of fraud and non-compliance with laws and regulatlons. To address the risk of fraud through management bias and override of controls, we.. perfomied analytical procedures to identify any unusual or unexpected relats'onships.. losled journal entries lo identify unusual Iransaclions., assessed whether judgements and assumptions made in determining the accounting estimates are indicative of potential bias., and investigatad the rationale behind significant or unusual transactions. Irs response to the risk of irregularities and non-compliance wrth law8 and regulations, we designed procedures which included, bul were not limited lo.. agreeing financial statement disclosures to ursderlying supporting documentation., reading the minutes of meetings of those charged with governance., enquiring of mariagernenl as to actual and potential litigation and claims,. and reviewing correspondence with HMRC. relevant regulators and the charitable company's legal advisors. Pago 16
The Institute of Quarrylng {A Company Limited by Guarantee) Independent Audltors, Report to the Tru8tee8 of The In8titute of Quarrylng Icontlnuedl Because of the inherent limitations of an adIt, there is a risk that we will llot detect all irregularllies, including those leading lo a material misstatement in the financial statements or non-compliance wth 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 concealmenL forgery, eollusion, omission or misrepreserstats'on. A fvrther descripb'on of our responsibilities for the audit of the financial statemenls is lo¢aled on the Financial Reporting Council's website al.. www.frc.or .uklauditorsres onsibilities. This descript forms part of our Audllors, Report. Use ofour report This report is made solely to the charllable 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 stale to the charitable company's members those matters we are required lo stale to them in an Auditors, Report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and its rnembe, as a body, for our audit work, for this port, or for the opinions we have formed. Slmon Hawklns (Senior Statutory Audltor) for and on behalf of Dalns LLP Slalutory Auditor Chartered Accountants 2 Etruria Office Village Forge Lane Stoke on Trent Staffordshire ST1 5RQ Date.. Page 17
The Institute of Quarrylng IA Company Limited by Guaranteel Statsment of financTral activities (incorporating income and gxpenditure account For tho Yoar Endod 31 December 2021 Unre5trictod funds 2021 Restricted funds 2021 Total funds 2021 Total funds 2020 Note Income from: Charitable activities Other trading activib'es Inveslmonts 243.007 323,926 41,403 243,007 323,926 44,011 344,992 329,274 51.432 2,608 Total Income 608.336 2,608 610,944 725.698 Expenditure on: Raising lunds Charitable activities 30,763 969,489 872 1,000 31,635 970,489 28,903 796.803 Total expènditurg 1,000,252 1,872 1,002,124 825,706 Net gainsl{lossesl on investments Ngt movement In funds beforg other recognlsed galns 294,532 15,297 309,829 {273,919} (97.384) 16,033 181,351) {373,9271 Other recognised gains: Gain5 on revaluation of fixed assets 151,000 151,000 Net movement In fund8 53,616 16,033 69,649 1373,927) Reconclllatlon of funds: Total funds brotjght foward Net movement in funds 3,681,960 53,616 175,036 16,033 3,856,996 69,649 4,230,923 1373,927) Total funds carried forward 3,735,576 191,069 3,928,645 3.856,996 The Statement of Financial Activities inclLtdes all gains and losses recognised in the year. The notes on pages 2110 45 form part of these financial stalements. Page 18
Th• Institulo of Quffjlng (A Company Umligd by Guarantw} Balance Sheet AB at 31 December 21rI1 Roglstorod Ilumb8r. IJ0fj060111 2021 2020 Flxed a868ts Intanglbie a59eis Tangibla assets Investments Investment pvoperty 12 13 15 14 8,406 3292.552 475.000 364.572 3.087.435 177S958 3,452.007 Stocks Debtors Ca8h at bank and k) hand 18 17 19.882 75N25 2K347 13,541 72.327 621,083 706.951 credtt0. knjunts falllng due wilhln one 18 (239.96n 1301.962) 150.687 404.989 Total assgts loss Gurront Ilabllhles 3.926,645 3.856.996 Total n•t aBsets 19A645 3.856,996 Charltyfunds Restrtcted funds 191.069 4n5,576 175,036 3.881.960 20 Totsl funds 3.926,845 3.856.996 The Tru8186s acknowlgdg• thok responslbiltttas for complykng wilh the requlremants of the Acl wlih wpect to acwunIin rocorfs and preparatEon of Ilnanclal statemts. Th& thancial statements havo been prepared In accordan with the w0SklS appllcabla to enllues 8ubleot to th6 gmal companle8 reglm&. The ffn8ncl81 ststents were approved and authorised forlgsue bylhtr Tru¥to8s and slgned on thetr behalf ty. V G Ru$vll Chalrman Date: Th& not88 on pag88 21 to 45 port ofthes8 ftnanclal statements.
The Instltute of Quarrylng IA Company Limited by Guarantee) Statement of Cash Flows For th8 Year Ended 31 December 2021 2024 2020 Cash flow$ from operatSng activities Nel cash used in operating acbvilies 1471,377) {29,6671 Cash tlows from investlng actlvltles Dividends, inlerests and rents from investrnents Proceeds from the sale of tangible fixerj assets Purchase of tangible fixed assets Proceeds from sale of investments Purchase of investments 44,01rf 51,432 10,000 13,082) {6,9031 276,118 861.607 1171,406Tr 1786,0341 Net cash providod by investing activities 145,641 130,102 Change In cash and c#$h oquivalents in the yeaT Cash and cash eguivalents at the beginning of the year {325,7361 621,083 100,435 520.648 Cash and cash equlvalents at the ond of the year 295,347 621,083 The notes on pages 21 to 45 form part of these financlal statements Page 20
The Institute of Quarrying (A Company Llmited by Guarantee) Note8 to the Flnan¢lal Statements For the Year Ended 31 Decèmber 2021 Ac¢ountlng policie5 1.1 Ba818 of preparation of financlal statements The charity constitutes a public benefit entity as defined by FRS 102. The financial slatemefits have been prepared in accordance with Accounting and Reporting by Charities.. Stslement of Recotnmended Practice applicable lo charitres preparing IheSr accounts in accordance with tho Financial Reporling Standard applicable in the UK and Republic of Ireland issued in October 2019, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland IFRS 1021. the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Accounts'ng Practice. The financial statements are prepared on a going concern basis under the historical cost convention, modified to include certain items al fair value. The ftnancial statements are presented In sterling whiGh 15 the functional CUTrency of the charity and rounded lo the nearest £. The significant accountiny policie5 applied in the preparation of these financial slatemgnts are sel out below. These policies have been ¢onsistenlly applied lo all years presented unless otherwise staled. 1.2 Going ¢on¢orn The trustees have a reasonable exp8Ctation that the company ha$ 8dequats re$our¢es to continue in operational existence for the foFeseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. 1.3 Income All income is recognised once the Company has entillement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Grants are included in the Statement of Financial Activities on a receivable basis. Income tax recoverable in relatson to investment income is recognised at the time the investment Income is receivable. Page 21
The Institute of Quarrying IA Company Limited by Guaranteel Notes to the Financial Statements For the Year Ended 31 December 2021 Accountlng pollcl¢8 l¢ontlnued) 1.4 Exponditure Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third paty. il is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each actwily are made up of the lolal of direct costs and shared costs, including support costs involved in undertaking each ?clivity. Direct costs attfibutable lo a single activity are allocated directly to that aGtivity. Shared Gosts which contribute lo rnore than one artivity and support costs which are not attributable to a sirsgle activity are apportioned between those aclivikn'es on a basis consistent with the use of resources. Central staff cost5 are allocated on the basis of lime spent, and depreGiation charggs allocated on the portion of the as5el's use. Support costs are those costs incurred directly in support of expenditure on the objects of th@ Company and include project management carried OL1 at Headquarters. Governance costs are thosg incurred in connection with administr8tion of the Company and compliance with conslitulional and statutory requirements. Expenditure on raising funds includes all expenditure incurred by the Company to raise funds for its charitable purposes and includes costs of all fundraising acb'vilies events and non-charitable trading. Expenditure on charitable activities is Incurred on directly undertaking the activities which further the Company's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 1.5 Research and development Research and development Is wrltten off In the year in which it Is incuNed. 1.6 Interest recoivablo Interest on funds held on deposit 15 included when receivable and the amount can be measLred reliabty by the Company., this is normally upon notification of the interest paid or payable by the institution wlh whom the funds are deposited. 1.7 Taxatlon The Company Is con8ldered to P288 the tests set out in P8ragraph 1 Schedule 6 of the Finance Act 2010 and therefore11 meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Company is potentially exempt from taxallon in respect of income or capital gains reiVed within categories covered by Chapter 3 Part 11 of the Corporab'on Tax Act 2010 or Se¢lion 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitsble purposes. Page 22
The Instktute of Quarying IA Company Limited by Guarantee) Notes to the Flnancial Statements For thè Yèar Ended 31 Dècember 2021 Accounting poliGios {continugd} 1.8 Intanglble assets and amortlsatlon Intangible assets are initially recognised al cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amorlisalion and any accumulated impairment losses. Amorb'sation is provided on intangible assets at rate5 calculated to write off the cost of each asset on a straighl-line basis over ils expected useful life. Amortisation is provided on the following basis.. CompLSter sofLware 33 % slraight line 1.9 Tonglble fixed a$s8ts and depreciation Tangible fixed assets are initially recognised at cost. After recognition, under the cost model. tangible lixed assets are measured at cost less accumulated depreciab'on and any accumulated impairment losses. All costs incurred lo bring a tangible fixed asset into ils intended working condition should be included in the measurement of cost. At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amoltnt of the asset is determined lo be the hlgher of its falr value less costs lo sell and its value in use. An impairment loss is recognised where the earylng amount exceeds the recoverable amount. DeprecIaOn is charged so as lo allctale the cost of tangible frxed assets less their residual value over thelr estirnaled useful lives. Depreciation is provKled on the followsng bases.. Freehold property 2% straight Line Motor vehicles 25Yo slraighl Line Office furniture and equlpment 100/0 slraighl Line Computer equipment 33Yo straight Line Page 23
The Institute of Quarying IA Company Limited by Guarantee) Notes to thg Financial Statements Forthe Year Ended 31 December 2021 Accounting pollcies Icontinued) 1.10 Investments Fixed asset investments are a form of financial instrument and are initially recognised at their Iran58Ction ¢05t and subsequently measured al fair value al the Balance Sheet date, unless the value annot be measured reliably in which case it is measured al cost less impairment. Investment gains and 105se5, whether realised or unrealised, are combined and presented as 'GainsllLossesl on investments, in th8 Statement of Financial Activities. Listed investments are valued al market vallte at the balan sheet date. The unlisted investment is valued at the higher of len limes the average of the net cash dividends received over the previous 4 years, excluding any unusual dividends or 29.55°/o of the net assets of QMJ Group Limited. Investment Property Investment Property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured al fair value at the reporttng date. Changes in fair value are recognised in the Statement of Financial Activities. 1.11 stocks Stocks are valued al the lower of cost and nel realisable value after making due allowance for obsolete and slow-movlng stocks. Cost includes Èll dlrect costs and an appropriate proportion of flxed and variable overheads. 1.12 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due. 1.13 Cash at bank and In hand Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturlty of three months or less from the dale of aGquisilion or opening of the deposit or similar aGcounL 1.14 Llabllltlos and provlslons Liabilities are recognised when there is an obligation at the Balance Sheet dale a8 a result of a past event, tt is probable that a transfer of economic benefit will required in Setdement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Company anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services il must provide. Provisions are measured at the best estimate of the amounts requlred lo settle the obligatlon. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted al the pre-tax discount rale that reflects the risks specific to the liabllity. The unwinding of the discount is reGognised in the Statement of Financial Activities as a finance cost. Page 24
The Institute of Quarrylng (A Company Limited by Guarantee) Notes to the Financlal Statemènts For the Year Endgd 31 December 2021 AGGounting policies {continuedl 1.15 Financial Instruments The Company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments a initially rQgnised al transaction value and subsequently measured al their settlement value with the exception of bank loans which are subsequently measured al amortised cost using the effective interest method. 1.16 Operating leases as105sge Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the lease term. 1.17 Operatlng leases as lessor Rental income received from investment properties are charged to the Statement of Financial A¢tivities over the agreed contract period. 1.18 Pensions The Company operates a defined contribution pension scheme and the pension charge represents the amounts payable by the Company to the fltnd in respect of the year. 1.19 Fund accountlng General funds are unreslrlcted funds which are available for use at the discretlon of the Trustees In furtherance of the general obleelives of the Company and which have not been deslgnated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Company for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and Ltse of each restricted fund is Set out in the notes to the financial statements. Investment income, gain8 and losses are allocated to the appropriate fvnd. Page 25
The Institute of Quarrylng IA Company Limited by Guarantee) Notes to the Financial Statements For tho Year Ended 31 Oecember 2021 Critical accounting estimates and areas of Judgment Estimates and judgments are continually evaluated and are based on histor*cal experience and otheF factors, including expe¢lations of future events that are believed lo be reasonable under the circumstances. Critical accounting estimates and assumptions.. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumption5 that have a significant risk of causing a material adjustment to the carrying amoLtnts of assets and liabilities within the next financial year are discijssed below. Critical areas of judgment.. Valuatlon of Unllstod Invgstmonts The unlisted investment is valued al the higher of ten times the average of the net cash dividends received over the previous 4 years, excluding any unusual dividends or 29.55'fi of the net assets of QMJ Group Limited. Valuatlon of Investment Property The investment propety v8lLte has been arrived al on the basis of a valuation carried out by Savills UK Limited, an estate agency and will be reviewed annually by the Trustees. Bad and doubtful debts The Trustees have estimated a bad and doubtfvl debt provision on the basis of Ihelr judgment that trade debtors are not recoverable or uncertain. Income from charitable actlvltles Unrestrfcted fund8 2021 Total funds 2021 Quarry degree, diploma and other course fees Blended traininglonline CPD Conferences and events Other charitable activities stock sales 198.080 23,947 6,473 250 14,257 198,080 23,947 6,473 250 14,257 243.007 243,007 Page 26
The Institute of Quarrying IA Company Limited by Guarantee) Notes to the Flnanclal Statements For the Year Ended 31 De¢ember 2021 Income from ¢harltsble a¢tlvltlas l¢ontlnuod) Unrostrlcted funds 2020 Total funds 2020 Quarry dege, dlploma and other course fee5 Blended traininglonline CPD Stock sales 292,563 29,706 22,723 292,563 29,706 22,723 344,992 344,992 Mgmber subscTiPtlons and entrance faes UnrostriGtgd fund5 2021 Total funds 2021 UK Members 323.926 323,926 Unr88trlcted funds 2020 Totsl funds 2020 UK Members 329,274 329,274 Investment Incomo Unrestrlcted Re8trlcted funds lunds 2021 2021 Total funds 2021 Income from listed investments Bank interest 41.370 33 2.607 43,977 41,403 2,608 44,011 Page 27
The Institute of Quarrying IA Company Limited by Guarantee) Notes to the Flnanclal Statements For the Year Ended 31 December2021 Investment Income {contlnu8dl Unrestricted Restrlcted funds funds 2020 2020 Total funds 2020 Income from listed investments Bank interest 47,389 173 3,861 51,250 182 47,562 3,870 51,432 Investmont management costs Unrestrictod Restrictod funds funds 2021 2021 Total funds 2021 Investrnenl management fees Overheads Wages and salaries Nation81 insurance Pension Depreciation and loss on sale 12,880 4,062 11,224 1,101 826 670 872 13,752 4,062 11,224 1,101 826 670 30,763 872 31,635 Unrestrlctsd Restrlcted fund5 funds 2020 2020 Total funds 2020 Investment management fees Overheads Wages and salaries Nation21 insurance Pension Depreciation and loss on sale 12,000 3,317 10,361 1,053 702 777 693 12,693 3,317 10,361 1,053 702 777 28,210 693 28,903 Page 28
Tho Institute of Quarrylng {A Company Llmited by Guarantee) Note6 to the Flnan¢ial Statements For tho Year Endod 31 December 2021 Analysls of expenditure on charitable actlvltles Summary by fund type Unrestricted Restricted funds funds 2021 2021 Total funds 2021 Membership and branches Education Institute activities Branch business activities Governance 318,083 234,227 391,372 17,884 7.923 318.083 234,227 391.372 18,884 7,923 1,000 969,489 1,000 970,489 Unr8$trlcted R¢strf¢tod funds funds 2020 2020 Total funds 2020 Membership and branches Education Institute activitles Branch business activities Governance 304,203 211,952 259,161 16,210 4,277 304,203 211,952 259,161 17,210 4,277 1,000 795,803 1,0(10 796,803 Page 29
The Institute of Quarrylng (A Company Limited by Guarantee) Notes to the Financial Statements For thts Year Ended 31 Decomber 2021 Analysis of 9xponditure by activities Actfvitles und8rtakgn directly 2021 Support costs 2021 Total funds 2021 Membership and bFarsches Education Inslitule actNIIts Branch business activities GovernanGe 31,951 19,630 204,094 1,000 286,132 214,597 187,278 17,884 7,923 318,083 234,227 391,372 18,884 7,923 256.675 713.814 970889 Actlvltleg undertaken dlrectly 2020 Support costs 2020 Totsl funds 2020 Membership and branches Education Institute activities Branch business activities Governance 44,861 17,447 103,219 1,000 259,342 194,505 155,942 16,210 4,277 304,203 211,952 259,161 17,210 4,277 166,527 630,276 796,803 Page 30
The InstFtute of Quarrylng IA Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 December 2021 Analysis of expendlture by actlvltlas Icontlnued) Analysls of support Costs Mgmbership and branches 2021 Branch buslness actlvltles 2021 Institute actlvltles 2021 Educatlon 2021 staff costs Depreciation Computer sofhvare OffiGe overheads Cleaning and repairs Printing, postage and slat*onery Sundry costs Legal and professional Marketing and PR Travel and Subsistence Other staff costs Loss on sale assets 210,413 10,720 20,699 6,908 4,776 6,598 2,047 536 157.810 8,040 15,524 5,181 3,582 4,949 1,533 402 13.584 2,197 1,795 131,509 6,700 12,937 4,318 2,985 4.124 1,274 335 11,320 1,831 1,496 8,449 13.151 670 1,294 432 299 412 128 33 1.132 183 150 18,112 2,929 2,394 28e,132 214,597 187,278 17,884 Total funds 2021 Govoman¢e 2021 Staff costs Depreciation and bss on sale Computer softwa Office overheads Cleaning and repairs Printing, postage and stationery Sundry costs Legal and professional Marketing and PR Travel and subsistence other staff costs Loss on sale of assets 512,883 26,130 50,454 16,839 11,642 16,083 4,982 5,406 44,148 10,963 5,835 8,449 4,100 3,823 7,923 713,814 Page 31
The Institute of QuaTrying IA Company Limited by Guarantee) Not¢$ to the Flnanclal Statement8 For th9 Year Ended 31 December 2021 Anatysis of expenditure by actlvltles Icontlnued) Analysis of support costs (continued Membershlp and branches 2020 Branch buslness activlties 2020 Institute activities 2020 Education 2020 Staff costs Depreciation Computer soknre Office overheads Cleanin9 and repairs Printing, postage and stationery Sundry costs Legal and professional Marketing and PR Travel and Subsistence other staff costs 193,851 12,428 22,361 7,042 3,417 4,991 1,726 699 7,061 3,732 2,034 145,388 9,321 16,771 5.281 2,563 3,743 1.294 524 5,296 2,799 1,525 121,158 1,622 13,975 4,401 2,135 3.120 1,078 437 4,413 2,334 1,271 12,116 777 1.398 440 214 312 108 44 441 233 127 259.342 194,505 155,942 16,210 Total funds 2020 Govemance 2020 staff costs Depreciation Computer 50thre Office overheads Cleaning and repairs Printing, postage and stationery Sundry costs Legal and professional Marketing and PR Travel and subsistence Other staff costs 472,511 24,148 54.505 17,164 8,329 12.166 4,206 5,454 17,211 9,625 4,957 3,750 527 4,277 630,276 Page 32
The Institute of Quarrylng IA Cornpany Limited by Guaranteo) Notes to the Flnaneial Statements For thè Year Ended 31 December 2021 Auditors, rernuneration 2021 2020 Fees payable to the Compantys auditor for the audit of the Companls annual accounts 4,000 4,000 10. 8taff ¢osts 2021 2020 Wages and salarie5 Social security costs Contribution to defined conlributior¢ pension schemes 448,962 46,804 30,267 413,094 40.879 30,654 526.033 484,627 The average number of persons employed by the Company during the yeai was as follows.. 2021 2020 No. Administration 10 11 The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was.. 2021 No. 2020 No. In the band £70,001- £80,000 In the band £100,001- £110,000 The total amount of employee benefits (including employer pension contribulionsl received by Trustees and key management personnel for their services was £305,75712020- £312.4691. 11. Trustegs. rgrnuneratlon and exponsgs Dufing the year, no Trustees received any remuneration or other benefits12020- £NILI. During the year ended 31 December 2021, expenses totalling £243 were reimbursed or paid directly to one TrSteel2020 - £NIL to no trusteesl. The nature of these expenses was travel costs. Page 33
The Instttute of Quarying {A Cornpany Limited by Guarantee) Notes to the Flnan¢ial Statements For the Yoar Ended 31 Docomber 2021 12. Intanglblo assets Computor software Cost At l January 2021 53,835 At 31 December 2021 53,835 Amortlsatlon At 1 January 2021 53,835 At 31 December 2021 53,835 Net book value At 31 Dernber202l At 31 Decembgr2020 Page 34
The Institute of Quarrying {A Company Limited by Guafanteel Notes to the Flnanclal Statements Forthe Year Ended 31 December 2021 13. Tanglble fixed assets Offlc8 furnlture and ComputeF equlpment 8quipment Freehold propgrty Total Cost or valuation Al 1 January 2021 Additions Disposals Transfers between classe$ 400,000 140,898 17,599 3,082 558,497 3,082 {128,912) {400,000} 1128,9121 {400,000) At 31 December 2021 1q,986 20,681 32,667 DeprecSatlon Al 1 January 2021 Charge for the year On disposals Transfers beteen classes 68,000 8,000 116,594 13,942 1120.4631 9,331 4,857 193,925 26,799 {120,463) 176,000) (76,000) At 31 December 2021 10,073 14,188 24,261 Not book value At 31 December2021 1,913 8,493 8,406 Al 31 December 2020 332.000 24,304 8,268 364,572 14. Investment property Froohold investment property Valuatlon Transfers been classes 475,000 Al 31 December 2021 475,000 The falr value of the propety at has been arrived at on the basis of a valuation carried out by Savills UK Limited, an estate agency, who are professionally qualified valuers. Page 35
The Institute of Quarrying {A Company Limited by Guarantee) Notes to the Financial Statements Forthe Year Ended 31 December 2021 16. Fixed asset Investments Llsted Unllsted Investments Investments Total Cost or valuatlon At 1 J8nuary2021 Addib'ons Disposals RevaluatSons 2,510.744 171,406 1178,692) 216,308 576,691 3,087,435 171,406 1178,6921 212,403 {3,905) At 31 December2021 2,719,766 572,786 3,292,552 Not book value At 31 December 2021 2,719,766 572,786 3,292,552 At 31 December 2020 2,510,744 576,691 3,087,435 The gain on disposal of fixed assets investments during the year was £g7,426 {2020.' £215.7911. Valuation The unlisted investment consists of 17.730 fully paid shares of £1 each in QMJ Group Limited, company registered in England and Wales, representing 29.55% of the issued shares with voting rights. The unlisted investment is valued at the higher of ten limes the average of the net Gash dividends receiveLI over the previou5 4 year5, excluding any unusual dividenols or 29.55°h of the nel assets of QMJ Group Limited. Dividend5 received of £nil (2020.. £nill have been included in revenue from this investment. 16. Stocks 2021 2020 Ties, medals elc Technical handbooks 8,819 11,063 4,798 8,743 19,882 13,541 Page 36
The Institute of Quarrylng IA Company Limited by Guarantee} Ntstes to the Financial Statements For the Yoar Ended 31 December 2021 17. Debtors 2021 2020 Due within one year Trade debtor$ Other Llebtors Prepayments and aoorLsed income 15,781 37,303 22,341 7,954 6,504 57,869 75,425 72,327 18. Credltors: Amounts falllng due wlthln one year 2021 2020 Trade creditors other taxation and social security Other ¢redltors AccTuals and deferred income 31,152 14,082 23,554 171,179 37,093 10,819 27,366 226,684 239,967 301,962 2021 2020 Deferred income al 1 January Resources deferred during the year Amounts released from previous periods 129,799 62,327 1129,799 74,566 129,799 174,5661 62,327 129,799 Deferred income relates to members subsciiptions and entrance fees paid in advance along wrth income received for courses which have not yel occurred. Page 37
The Institute of Quarrying IA Company Limited by Guarantee) Notes to the FinanGlal Statements For the Year Ended 31 December 2021 19. Flnanclal Instruments 2021 2020 Flnanclal assets Financial assets measured at amortised cost 348,431 635,541 2021 2020 Financlal Ilabllltles Financial liabilities measured at amortised cost 163,558 161,344 Financial assets measured at amorlised cost include cash, trade debtors and other debtors. Financial liablllties measured al amortised cost include trade creditors, other creditors and accruals. Page 38
The Institute of Quarrying IA Company Limited by Guarantee) Notes to the Financlal Statements For the Year Ended 31 December 2021 Statgmgnt offunds Statementoffunds- current year Balance at 31 Gainsl Docombgr (Losses} 2021 Balance at 1 January 2021 Income Expenditurn Unrestrlcted fund8 Designated funds Revaluation reseNe 151,000 151,000 General funds General Funds 3,681,960 608,336 11,000.252) 294,532 3,584.576 Total Unrestrlctsd fund8 3,681,960 608,336 {1,000,2521 445.632 3,735,676 Restri¢tod funds Preston Coles 1S,173 8,639 64,179 29.418 4,377 11,828 10,227 5,564 11,785 13,846 267 151 1289) {251) {542) {1541 (2281 1621 {53) {29) 1264) 137 15,288 ,617 65.185 29,961 4,276 12,046 10,415 5,667 11,814 27,800 78 526 McPherson Nordberg Goodwin Barsby Rushton Bucyris Marston Clugston Eric McNaughl Trust Capital 1,022 237 43 95 185 159 87 193 82 45 100 13,954 175,036 2,608 (1,872) 15,297 191,069 Totsl of funds 3,856,996 610,944 {1,002,124 460,829 3,926,645 Page 39
The Institute of Quarying {A Company Limited by Guarantee) Note8 to the Flnanclal Statements Forthe Year Ended 31 December 2021 20. Statement of funds (contlnued) The spe¢ifi¢ purposes for which the funds aTe lo be applied ar8 a5 follows.. Preston - Best student award.. Diploma Coles - Best student award= Foundation Degree McPherson - Awarded to fund a high profile lecture Nordberg - Awarded for an R&D project or Study Tour on an international basis Goodwin Barsby- Best student- Hons Degree Rushton 8ucyrus - To fund the administration of an annual student award Ransomes & Rapier- Best Higher Apprenti Marslon - Awarded lo the best paper delivered to a branch meeting Clugston - Awarded for an R&D project or Study Tour on a international basis Eric M¢Naughl- Awarded by the Scottish branch to the Scottish branch member with the most marks Trust Capital- Awarded al the discretion of Trustees to students who have made achievements to be celebrated that are not recognised by other specific awards Page 40
The Institute of Quarrying IA Company Limited by Guarantee) Notes to the Flnanclal Statements Forthe Year Ended 31 De¢ember 2021 20. Statoment of fund8 {contlnuedl ststement of fund8 - prlor year Balance at 31 Galnsl De¢ember {Los$es 2020 Balance at l January 2020 Transfer8 Inlout Income Expendlture Unrestricted funds General Funds 4,055,953 721,828 (824.013} (271,8081 3,681,960 Re8trlcted funds Preston Coles MoPherson Nordberg Goodwln 8arsby Rushton BLWIS Ransomes & Rapier Marslon Clugston Eric McNaught Trust Capital 13,977 8,046 59,015 27,000 4,138 10.856 395 224 1,497 12711 1240) 1268) 11221 1222} 1491 1,072 609 4,067 1,857 337 746 15,173 8,639 64,179 29,418 4,377 11,828 (132) 124 275 19 236 129 {2041 1421 1231 12521 132 53 641 349 782 112,624) 9,392 5,109 10,967 26,470 10,227 5.564 11,785 13,846 288 174,970 3,870 {1,693) {2,111) 175,036 Total of funds 4,230,923 725,698 1825,706) 1273.9191 3,856,996 Page 41
The Institute of Quarrying IA Company Limited by Guaranteel Notes to the Financial Staternents For thg Year Ended 31 December 2021 21. Analysls of net assets between funds Analysis of not assots betwegn funds - curront year Unre8trlcted Restrlcted funds funds 2021 2021 Total funds 2021 Tangible fixed assets Fixed asset investments Investment propety Current assets Creditors dlte within one year 8,406 3,117,699 475.000 374.438 1239,9671 8,406 3.292,552 475.000 390,654 1239,9671 174,853 16,216 Total 3,735,576 191,069 3,926,645 Analysis of net assets b•tween funds- prlor year Unrestrlcted R8Strlcted funds fund8 2020 2020 Total funds 2020 Tangible fixed assets Fixed asset investments Current assets Credrtors due within one year 364,572 2.927,649 691,701 1301,9621 364,572 3.087,435 706,951 1301,9621 159,786 15,250 Total 3,681,960 175,036 3,856,996 Page 42
The Institute of Quarrying {A Company Limited by Guarantee) Notes to the Flnanclal Statements For the Year Ended 31 December 2021 22. Reconcillatlon of net movem8nt In funds to net ¢a8h flow from operatlng actlvltles 2021 2020 Nel expenditure for the year las per Statement of FinanGial Activitie5} 181,3511 1373,9271 AdJustm8nts for: Deprecialion charges Amorbsation charge5 {Gains)ILosses on investments Dividends, interest and rents from investments Lossllprofit} on the sale of fixed assets (increase)IDecrease in stocks lincrea5e}IDecrease ir+ (Sebtors (Decreaselllncrease in creditots 26,799 29,569 1,500 273,919 151,432) {6,1441 15,695 42,607 38,546 {309,829) 144,011) 8,449 (6,341) 13,098} {61.9951 Net cash usod in oporating actlvltles 1471,3771 129,6671 23. Anatysls of Gash and Gash Qguivalents 2021 2020 Cash in hand 295,347 621,083 Total ¢a8h and cash equivalents 295,347 621,083 24. Analysls of Change5 In net debt At1 January 2024 Cash flows At31 Decembgr 2021 Cash at bank and in hand 621,083 1325,736) 295,347 621,083 1325,736} 295,347 Page 43
The Institute of Quarrylng IA Company Limited by Guavanteel Notes to the F5nanelal Statements For the Year Ended 31 December 2021 28. Pension Gommitments The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to thg fund and amounted lo £30.26712020.' £30,654). Conlributlons totaling £4,353 12020.. £3,678) were payable to the fund at the balance sheet date and are Included In creditors. 26. Oper4ting1oas0 commitments At 31 December 2021 the Company had commitments to rnake future fninimum lease payments under non-cancellable operating leases as follows.. 2021 2020 Oporating loasgs as algssge Not later than l year Later than 1 year and not later than 5 years 7,270 1.212 7,270 8,482 8,482 15,752 At 31 December 2021 the Company had future minimum lease payments receivable under non- cancellable operating leases for each of the following periods: 2021 2020 Operatlng leases as a la880r Nol later than 1 year Later than 1 year and not laler than 5 years 38,500 77,000 115,500 27. Niembers. Ilablllty Each member of the charitable company undertakes to contribute lo the assets of the company in the event of St belng wound up while helshe is a member, or within one year after helshe ceases lo be a mernbef, such amount as may be required, not exceeding £1 for the debts and liabilities contracted before helshe ceases lo be a member. Page 44
The Ingtltute of Quarrying (A Company Limited by Guarantee) Notes to the Financial Statements For the Year Ended 31 December 2021 28. Related party transactlon8 During the period the Gompany made purchases of £38,546 {2020'. £27,583} and generated income of £nil (2020.. £125} from The QMJ Group Limited, a related company in which The Institute of Quarrying has a material interest. All transactions ocCUrd on an arms length basis. As the period end, a balan of £2,08312020'. £1,743) was due lo The QMJ Group Llmiled, Fund5 held as agent or custodlan tru$t¢o During the year, the company ceiVed £nil {2020'. £nill and paid out £nil 12020.. £1,924) on behaK ol QNJAC. At the bal8nGe sheet date £nil12020.' £nill was held on behalf of QNJAC. During the year, the company received £1.12012020. £nill and paid out £1,12112020'. £2,168) on behalf of the Derbyshire Branch. Al the balance sheet date £112020.. £nil} was held on behalf of the Oerbyshire Branch. During the year, the company received £2,260 {2020.' £2.4001 and paid out £2,260 12020.. £1,730) on behalf of the Devon and Cornwall Branch. At the balance sheet dale £nil12020.' £nill was due from the Oevon and Cornwall Branch. During the year, the company received £nil12020. £4,000) and paid out £nil12020.' £4,000) on behalf of the Lancashire Branch. At the balance sheet date £nil12020: £nill was held on behalf of the Lancashire Branch. Durlng the year, the company received £66012020.. £2,320) and paid out £620 {2020'. £2,8581 on behaLf of the North Wales Branch. At the balance sheet date £257 (2020.. £2171 was held on behalf of the North Wales Branch. During the year, the company received £nil12020.' £nill and paid out £nil 12020." £nil l on behalf of the South Wales Branch. At the balance sheet date £nil12020.' £nill was held on behalf of the South Wales Branch. During the year, the company received £nil 12020.. £nil) and paid out £nil (2020.. £6771 on behalf of the Yorkshire Branch. At the balance sheet date £nil12020'. £nill was held on behalf of the Yorkshire Branch. During the year. the company received £nil12020: £nll) and paid out £nil {2020.' £nill on behalf of the Midlands Branch. At the balance sheet date £417 12020.. £417} was held on behalf of the Midlands Branch. During the year, the company te1ver1 £nil 12020.. £nill and paid out £nil (2020.. £nil} on behalf of the Scottish Branch. At the balance sheet dale £35412020.. £354) was due from the Sco1115h Branch. During the year, the company received £nil {2020.' £500) and paid out £nil12020.- £2,500} on behalf of the London & Home Counties Branch. At the balance sheet date £nll12020.. £nill was due to the London & Home Counties Branch 29. Post balance sheet evonts A merger agreement with the National Stone Centre wa5 signed on the 25 January 2022. Page 45