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2021-12-31-accounts

REPORT OF THE TRUSTEES AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

FOR

INSTITUTE OF CAST METALS ENGINEERS

INSTITUTE OF CAST METALS ENGINEERS

CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

Page
Company Information 1
Report of the Trustees 2
Report of the Independent Auditors 5
Statement of Financial Activities 8
Statement of Financial Position 9
Statement of Changes in Equity 10
Notes to the Financial Statements 11
Trading and Profit and Loss Account 21

INSTITUTE OF CAST METALS ENGINEERS

COMPANY INFORMATION FOR THE YEAR ENDED 31ST DECEMBER 2021

TRUSTEES: Principal Officers
Mr L Jenkins
 National President
Mr R Bell
 Senior Vice President
Mr M J Dudley Junior Vice President -appointed 15/5/21
Mr T Stevenson Honorary Treasurer
Mr S Hill
 Immediate past President
Mr T Ayre
 Past President
Elected Members
Mr S Alexander
Mr A Bennett
Mr K Collins
Mr J Coughtrie
Mr D Douglas
Mr A Evans
Mrs L Postle
Mr A Sartorius
Mr I Shergold – resigned 10/3/21
Mr M Sutton
REGISTERED OFFICE: National Foundry Training Centre
ECMS
Tipton Road
Tipton
West Midlands
DY4 7UW
REGISTERED COMPANY NUMBER: RC000244

REGISTERED NUMBER:
 00250380
AUDITORS: Fields
2nd Floor
Landchard House
Victoria Street
West Bromwich
West Midlands
B70 8ER
BANKERS: Lloyds TSB
134 New Street
Birmingham
West Midlands
B2 4QZ
INVESTMENT MANAGERS: Baillie Gifford & Co
Carlton Square
1 Greenside Row
Edinburgh
EH1 3AN

Page 1

INSTITUTE OF CAST METALS ENGINEERS

REPORT OF THE TRUSTEES (INCORPORATING THE DIRECTORS REPORT) FOR THE YEAR ENDED 31ST DECEMBER 2021

The Trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report in accordance with the small company regime, Section 419(2) of the Companies Act 2006, with the financial statements of the charity for the year ended 31st December 2021. The trustees have adopted the provisions of Accounting and reporting by Charities: Statement of Recommended Practice (SORP) applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).

OBJECTIVES AND ACTIVITIES

The objectives of the charity are to:-

-Stimulate science and technology in the cast metals and allied industries.

-Promote learning and education in the cast metals and allied industries.

-Confer professional qualifications up to the level of Chartered Engineer through its Membership Committee.

The charity is now an Affiliate of the Engineering Council to achieve these objectives. It also promotes lectures, webinars and seminars to members.

During 2021 the Institute of Cast Metals Engineers has continued its goal of becoming a recognised End Point Assessment Organisation (EPAO) for the level 3 apprenticeship standard ST0566. This will enable the ICME quality team to end point assess apprentices who have been trained in the standard for Casting, Foundry and Patternmaking.

During 2021 some branches were fortunate to be able to host some technical events, but most branch and national events unfortunately were cancelled. Some regional branches continued to offer a wide range of technical webinars, enabling members, and those from the wider industry, to meet (albeit virtually) and network with like-minded people/ plus a number of national webinars were held and recordings of these have been made available to members. Gratitude is expressed to all those that have hosted and continue to host and organise events on behalf of the Institute.

The Foundry Trade Journal is a publication that is provided to members as part of their subscription.

Public benefit

In shaping our objectives for the year and planning our activities, the trustees have considered the Charity Commissions guidance on public benefit, in particular, the trustees consider how specific projects will contribute to their objectives.

ACHIEVEMENT AND PERFORMANCE

Charitable activities

The Institute of Cast Metals Engineers has continued to focus on preparing to be one of the lead providers of End Point Assessments for the foundry, casting and patternmaking industries apprenticeship programme. The Investment/Finance & General Purposes committee continues to support and signpost training requirements in the sector. Furthermore, some of the regional branches have held various technical webinars throughout the year enabling the Institute to continue to bring its members together during these challenging times.

Membership Promotion and Apprentices

As part of its commitment to support young apprentices, Technicians and their companies, ICME continues to offer free membership to apprentices. 59 new members were recruited to ICME in 2021.

FINANCIAL REVIEW

Accounts and financial position

The attached financial statements comply with current statutory requirements, the charity's governing document, and the FRS 102 SORP (Statement of Recommended Practice for Accounting and Reporting by Charities) 2019.

The Statement of Financial Activities summarises the income sources and main areas of expenditure. Opportunities to control costs and raise income are actively sought by Investment/Finance and General Purposes committee. The council continues to investigate opportunities to work with other like-minded organisations to ensure that the Institute continues to meet its aims and objectives for the benefit of the castings industry.

Page 2

INSTITUTE OF CAST METALS ENGINEERS

REPORT OF THE TRUSTEES (INCORPORATING THE DIRECTORS REPORT) FOR THE YEAR ENDED 31ST DECEMBER 2021

Principal funding sources

The investment powers are unrestricted but are managed under the advice of an Investment Advisory Committee reporting to the Council. Baillie Gifford & Co. is employed as the investment adviser. Capital withdrawals are made to either acquire or to give additional support in times of financial uncertainty.

The Institute's principal source of funding is membership subscriptions (£65K) for the year to the 31st December 2021. There was also income of £10.6K from investment returns.

Investment policy and objectives

The investment policy has been to continue to invest in any stocks and bonds considered by the investment managers to form a sound basis for stable long-term growth and reasonable income. The overall purpose of the investment is to facilitate additional income resources for the Charity. The target for the split of the current holding remains at 10% invested in bonds and 90% invested in equities and at the year end this was 15% and 85% respectively.

Reserves policy

The Charity holds reserves to support the long-term learning and educational needs of the sector and will continue to hold these reserves to allow it to generate income to meet these objectives. The Trustees estimate 6 months expenditure, being £110K at 31[st] December 2021 would be sufficient reserves held. This policy is reviewed each year by the Trustees.

At the year end the charity held reserves totalling £630,547 made up as follows, restricted reserves £32,926 and unrestricted reserves £597,621. The trustees consider the level of reserves currently held to be of a sufficient level to support the charity moving forward.

FUTURE PLANS

The aim of the Institute is to continue to support and develop educational opportunities for those in the industry. The industry continues to have a particular need for training and education provision for new apprentices and graduates entering this sector. ICME has gained approval as an End Point Assessment Organisation with Ofqual, providing an EPA service for apprentices completing their Level 3 Metal Casting, Foundry and Patternmaking and plans to offer additional leadership and management courses as well as technical programmes.

It is recognised that the Institute’s finances are underpinned by the Investment portfolio and, with limited direct sources of income available, a project is underway to see how the Institute can be re-shaped to ensure future financial viability.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Charity is an Institute incorporated by Royal Charter, without share capital. It operates under the name of Institute of Cast Metals Engineers and constitutes a limited company which is limited by Guarantee, as defined by the Companies Act 2006.

The Institute of Cast Metals Engineers is a UK professional engineering Institution founded in 1904 as the ‘British Foundrymen’s Association’. It was granted Royal Charter on the 25[th] November 1921. On the 11[th] October 2000 it changed its name to the Institute of Cast Metals Engineers. The Institute is registered as a charity under the Charities Act 1960, number 250380.

Recruitment and appointment of new trustees

The Trustees are elected by Council, on one-, two-, or three-year terms: these are the Branch Representatives and the Elected Members. Other trustees are the office bearers of the Institute, namely the President, the Senior Vice President, the Junior Vice President and the Honorary Treasurer. The trustees are elected to Council in accordance with the Institute Charter and By-Laws. It is the Council who is the Governing Body of the Institute.

Organisational structure

The Charity has two part-time staff and over thirty volunteers who occupy positions at both regional and national level. A combination of regional officers and national officers constitutes the council who ratify all decisions at meetings held three times a year. The members of staff have day-to-day responsibility within strict operating rules and the Finance and general Purposes Committee, (F&GP), consisting of the national officers plus two elected members, meet on a regular basis to give support.

Page 3

INSTITUTE OF CAST METALS ENGINEERS

REPORT OF THE TRUSTEES (INCORPORATING THE DIRECTORS REPORT) FOR THE YEAR ENDED 31ST DECEMBER 2021

Risk management

The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error. Risks, both operational and financial, are regularly reviewed by the Council, the F&GP and the Investment Advisory Committee. The major risks to which the charity are exposed, as identified by the trustees, have been reviewed and systems established to manage those risks.

Pam Murrell, alongside the Cast Metals Federation team, overseas the day to day running of the Institute, via a support contract. Amy Worrallo is the End-point Assessment Quality Manager and Kate Brown provides administrative support for the day-to-day bookkeeping.

REFERENCE AND ADMINISTRATIVE DETAILS

Reference and administrative details are given on page 1

STATEMENT OF TRUSTTES’ RESPONSIBILITIES

The Trustees, who are also directors of The Institute of Cast Metals Engineers for the purposes of company law, are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and regulations.

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the trustees are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each trustee has taken all the steps that ought to have taken as trustees in order to make aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Going concern

Trustees have a reasonable expectation that the company will continue in operational existence for the foreseeable future (12 months after signing this report) and have therefore, used the going concern basis in preparing the financial statements.

AUDITORS

The auditors, Fields, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

Trustee: Trevor Stevenson Date: 9[th] May 2022

Page 4

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF INSTITUTE OF CAST METALS ENGINEERS

Opinion

We have audited the financial statements of Institute of Cast Metals Engineers (the 'charitable company') for the year ended 31st December 2021 which comprise the Statement of Financial Activities, the Statement of Financial position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 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 charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The trustees are responsible for the other information. The other information comprises the information in the Report of the Trustees but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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:

Page 5

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF INSTITUTE OF CAST METALS ENGINEERS

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 Report of the Directors.

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

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities set out on page four, 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.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures can detect irregularities, including fraud is detailed below:

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, was as follows:

-the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

-we identified laws and regulations applicable to the company, including through discussions with the directors

-we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements, including Companies Act 2006, tax legislation and data protection, anti-bribery, anti-money laundering, employment, environmental and health and safety legislation;

-we assessed the extent of compliance with laws and regulations identified above through making enquiries of management, inspecting correspondence and other company records; and

-identified laws and regulations which were communicated within the audit team regularly and the team remained alert to instance of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

-making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

-considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

Page 6

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF INSTITUTE OF CAST METALS ENGINEERS

To address the risk of fraud through management bias and override of controls, we:

-tested nominal ledger entries to identify unusual transactions;

-assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

-agreeing financial statement disclosures to underlying supporting documentation;

-reading the minutes of meetings of those charged with governance;

-enquiring of management as to actual and potential litigation and claims;

There are inherent limitations in our audit procedures described above. The more removed those laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Stella Louise Broomhall (Senior Statutory Auditor) for and on behalf of Fields 2nd Floor Landchard House Victoria Street West Bromwich West Midlands B70 8ER

Date: 12[th] May 2022

Page 7

INSTITUTE OF CAST METALS ENGINEERS

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31ST DECEMBER 2021


Unrestricted
Restricted
Notes
fund
fund
£
£
INCOME AND ENDOWMENTS FROM
Donations
4
900
-
Charitable activities
Core
5
65,646
-
Publications
5
179
-
Training Services
5
-
-
Grants
5
1,091
-
Other income
5
4,336
-
Investment income
6
10,496
188
Total Income
82,648
188
EXPENDITURE ON
Charitable activities
Core
7
204,789
452
Training Services
7
-
-
Total expenditure
204,789
452
Net gains/(losses) on investments
57,477
(69)
NET EXPENDITURE
(64,664)
(333)
RECONCILIATION OF FUNDS
Total funds brought forward
662,285
33,259
TOTAL FUNDS CARRIED FORWARD
597,621
32,926		 2021
Total
funds
£
900
65,646
179
-
1,091
4,336
10,684
82,836
205,241
-
205,241
57,408
(64,997)
695,544
630,547		 2020
Total
funds
£
150
62,658
-
462
2,313
4,836
14,386
84,805
223,116
14
223,130
48,274
(90,051)
785,595
695,544

The notes form part of these financial statements Page 8

INSTITUTE OF CAST METALS ENGINEERS (REGISTERED NUMBER: 00250380)

STATEMENT OF FINANCIAL POSITION 31ST DECEMBER 2021


Unrestricted
Restricted
Notes
fund
fund
£
£
FIXED ASSETS
Intangible assets
9
-
-
Tangible assets
10
3,295
-
Investments
11
481,248
26,416
484,543
26,416
CURRENT ASSETS
Stocks
12
27
3,081
Debtors
13
128,236
-
Cash at bank and in hand
14
16,631
3,429
144,894
6,510
CREDITORS
Amounts falling due within one year
15
(31,816)
-
NET CURRENT ASSETS
113,078
6,510
TOTAL ASSETS LESS CURRENT
LIABILITIES
597,621
32,926
FUNDS
16
Unrestricted funds
Restricted funds		 2021
Total
funds
£
-
3,295
507,664
510,959
3,108
128,236
20,060
151,404
(31,816)
119,588
630,547
597,621
32,926
630,547		 2020
Total
funds
£
-
978
564,373
565,351
2,446
147,548
12,180
162,174
(31,981)
130,193
695,544
662,285
33,259
695,544

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Charities SORP (FRS 102).

The financial statements were approved by the Board of Trustees on 9[th] May 2022 and were signed by:

Trustee – Lee Jenkins FICME – National President

Trustee – Trevor Stevenson FICME – Honorary Treasurer

The notes form part of these financial statements Page 9

INSTITUTE OF CAST METALS ENGINEERS

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31ST DECEMBER 2021


Retained

Earnings

£
Balance at 1st January 2020
753,107

Changes in equity
Total comprehensive income
(90,822)
Balance at 31st December 2020
662,285
Changes in equity
Total comprehensive income
(64,664)
Balance at 31st December 2021
597,621		 Prize &
John
Medal
Campbell

fund
award
£
£
26,442
6,046
541
230
26,983
6,276
(583)
250
26,400
6,526		 Total
equity
£
785,595
(90,051)
695,544
(64,997)
630,547

The notes form part of these financial statements Page 10

INSTITUTE OF CAST METALS ENGINEERS

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

1. ACCOUNTING POLICIES

Statutory information

The Institute of Cast Metals Engineers is a private charity, limited by guarantee, registered in England and Wales. The charity’s registered number and registered office can be found on the Company Information page.

Basis of preparing the financial statements

The charity constitutes a public benefit entity as defined by FRS102. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting 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 (FRS 102), the Companies Act 2006 and UK Generally Accepted Accounting Practice.

The financial statements are prepared on a going concern basis under the historical cost convention with the exception of investments which are included at market value, as modified by the revaluation of certain assets. The financial statements are prepared in pounds sterling which is the functional currency of the charity and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Incoming resources

All income including membership subscriptions is recognised in the Statement of financial Activities once the charity has entitlement to the funds, any performance conditions attached have been met, it is probable that the income will be received, and the amount can be measured reliably.

Income from grants is recognised on an accruals basis and are recognised in income in the period the related costs are incurred by the entity for which the grant is intended to compensate.

Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis.

Costs of charitable activities comprise all costs incurred in pursuit of the charitable objects of the charity.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of the charity such as the cost of board meetings, statutory compliance and costs linked to the strategic management of the charity.

Financial instruments

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand.

Debtors and creditors with no stated interest rate and receivable and payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

Loans

Loans made to a third party are interest free and are made to advance charitable purposes. The loan is repayable on demand and is measured at cost, less impairment.

Intangible assets

Amortisation is charged on Publication Titles to the Statement of Financial Activities on a straight-line basis over a period of 10 years which expired in 2013.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Fixtures & fittings 33% on cost 20% on cost 10% on cost

continued...

Page 11

INSTITUTE OF CAST METALS ENGINEERS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

1. ACCOUNTING POLICIES - continued

Government grants

Grants received as a result of the COVID 19 pandemic, in respect of furloughed employees are recognised immediately in profit and loss and are included within other income.

Fund accounting

Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.

Investments

Investments are stated at market value at the balance sheet date. The SOFA includes the net gains and losses arising on revaluations and disposals throughout the year.

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight-line basis over the period of the lease.

Value added tax

The charity is registered for VAT and is partially exempt. All income and expenditure is shown net of VAT where appropriate and disallowed input tax is included within the associated costs.

Going concern

The Trustees believe that there are no material uncertainties related to events or conditions including the impact of COVID-19 that may cast significant doubt on the ability of the charity to continue as a going concern. Accordingly, the trustees consider that it is appropriate for the Financial Statements to be prepared on the Going Concern basis.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

The charity is an exempt charity within the meaning of schedule 3 of the Charities Act 2011 and is considered to pass the tests set out in Paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes.

Pension costs and other post-retirement benefits

The charitable company operates a defined contribution pension scheme. Contributions payable to the charitable company's pension scheme are charged to the Statement of Financial Activities in the period to which they relate. The contributions paid are shown in note 2.

2. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 2.8 (2020 – 3.5).

STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2021
£
74,417
1,423
5,308
81,148		 2020
£
72,963
1,783
6,155
80,901

Total redundancy payments amount to £14,919 (2020: nil) and related to two members of staff.

No employees received emoluments more than £60,000.

Employer pension contributions amounted to £5,308 (2020: £6,155), the outstanding balance at the year-end is £nil (2020: £795).

TRUSTEES REMUNERATION

The trustees neither received nor waived any remuneration during the year (2020: nil).

continued...

Page 12

INSTITUTE OF CAST METALS ENGINEERS

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

3. NET MOVEMENT IN FUNDS

The net movement in funds is stated after charging:

4.

5.

Operating lease costs
Auditors’ remuneration:
In their capacity as auditors
Other financial services
DONATIONS
Sponsorship

INCOME FROM CHARITABLE ACTIVITIES
Activity
Membership subscriptions
Core
Publications
Core
Grant income
Core
Training services
Training activities
Miscellaneous income
Core		 2021
£
2,192
5,000
11,528
2021
£
900
2021
£
65,646
179
1,091
-
4,336
**71,252 **		 2020
£
2,192
4,800
9,520
2020
£
150
2020
£
62,658
-
2,313
462
4,836
70,269

Grant income includes £1,091 (2020: £1,973) Government support provided in response to the COVID-19 outbreak. This support was received via the Coronavirus Job Retention Scheme (CJRS). This government grant provided support for 80% of employees’ payroll costs, who were furloughed during the period the charities operations were required to close.

6. INVESTMENT INCOME

Quoted securities

2021 2020
£ £
10,684 14,386

7. CHARITABLE ACTIVITIES COSTS

Core Direct
costs
£
196,691		 Support
costs
see note
8
£
8,550		 Totals
£
205,241

continued...

Page 13

INSTITUTE OF CAST METALS ENGINEERS

NOTES TO THE FINANCIAL STATEMENTS - continued

FOR THE YEAR ENDED 31ST DECEMBER 2021

8. SUPPORT COSTS

Support costs, included in the above, are as follows:

Bank Charges
Governance costs		 2021
Core
£
2,547
6,003
8,550		 2020
Core
£
2,148
7,441
9,589

Included within governance costs is audit fees amounting to £5,000 (2020: £4,800).

9. INTANGIBLE FIXED ASSETS

INTANGIBLE FIXED ASSETS
Other
intangible
assets
£
COST
At 1st January 2021
and 31st December 2021 73,808
AMORTISATION
At 1st January 2021
and 31st December 2021 73,808
NET BOOK VALUE
At 31st December 2021 -
At 31st December 2020 -

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

10. TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Fixtures
and
fittings
£
COST
At 1st January 2021 60,941
Additions 2,758
At 31st December 2021 63,699
DEPRECIATION
At 1st January 2021 59,963
Charge for year 441
At 31st December 2021 **60,404 **
NET BOOK VALUE
At 31st December 2021 3,295
At 31st December 2020 978

Included within tangible fixed assets are restricted assets with a carrying value of nil (2020: £nil)

11. FIXED ASSET INVESTMENTS

Investments were as follows:
Prize & medal fund investment
BG fund B investments		 2021
£
26,416
481,248
**507,664 **		 2020
£
26,298
538,075
564,373

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

11. FIXED ASSET INVESTMENTS - continued

Additional information as follows:

Additional information as follows:
Listed
investments
MARKET VALUE £
At 1st January 2020 538,075
Additions 9,609
Disposals (124,800)
Revaluation **58,364 **
At 31stDecember 2021 481,248
NET BOOK VALUE
At 31st December 2021 481,248
At 31st December 2020 538,075
There were no investment assets outside the UK.
Investments (neither listed or unlisted) were as follows:
2021 2020
£ £
Managed unit trust fund 26,416 22,298
12. STOCKS
2021 2020
£ £
Stocks 3,108 2,446
13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£ £
Trade debtors 9,416 8,427
Other debtors 113,016 133,805
Prepayments and accrued income **5,804 ** 5,316
128,236 147,548

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

14. CASH AT BANK AND IN HAND

Bank current account
Bank membership account
Coat of Arms
Currency floats
Paypal
Young foundrymen account
Petty cash
General fund
£
Restricted fund
£
Cash in hand
8
-
Current account
16,623
3,429

16,631
3,429		 2021
£
19,096
430
165
161
143
57
8
20,060
2021
Total funds
£
8
20,052

20,060		 2020
£
10,759
685
165
161
345
57
8
12,180
2020
Total funds
£
8
12,172
12,180

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
VAT
Other creditors
Accruals and deferred income		 2021
£
7,290
-
7,443
3,477
13,606
31,816		 2020
£
-
355
7,840
3,859
19,927
31,981

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

16. RESERVES

MOVEMENT IN FUNDS

Net movement
At 1.1.2021
in funds		 At 31.12.2021
Unrestricted funds
General fund 662,285 (64,664) 597,621
Restricted funds
The John Campbell Fund 6,276 250 6,526
Prize & Medal Fund 26,983 (583) 26,400
33,259 (333) 32,926
TOTAL FUNDS 695,544 (64,997) 630,547

Net movement in funds included in the above are as follows:

Incoming Resources Gains and losses Movement in
resources expended funds
£ £ £ £
Unrestricted funds
General fund 82,648 (204,789) 57,477 (64,664)
Restricted funds
The John Campbell fund 48 - 202 250
Prize & Medal fund 140 (452) (271) (583)
188 (452) (69) (333)
82,836 (205,241) 57,408 (64,997)
Comparatives for movement in funds
Net movement
At 1.1.2020
in funds		 At 31.12.2020
Unrestricted funds
General fund 753,107 (90,822) 662,285
Restricted funds
The John Campbell Fund 6,046 230 6,276
Prize & Medal Fund 26,442 541 26,983
32,488 771 33,259
TOTAL FUNDS 785,595 (90,051) 695,544

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

Net movement in funds included in the above are as follows:

Incoming Resources Gains and losses Gains and losses Movement in
resources expended funds
£ £ £ £
Unrestricted funds
General fund 84,485 (222,716)
47,409		 (90,822)
Restricted funds
The John Campbell fund 84 (47) 193 230
Prize & Medal fund 236 (367) 672 541
320 (414) 865 771
84,805 (223,130)
48,274		 (90,051)

Prize & medal Fund

This fund was set up to facilitate the awarding of prizes and medals to members on an annual basis. The fund provides the financing element of this project and ensures that sufficient resources are available to meet the annual demands of the award process.

The John Campbell Fund

This fund originates from a fellow of the institute who had significant links to the Aluminium sector. It is a specific fund set up to facilitate and finance the awarding of recognition within the Aluminium field.

17. RELATED PARTY DISCLOSURES

During the year membership subscription fees totalling £2,381 (2020: £2,479), which include free subscriptions to the value of £332 (2020: £166), were received from the Trustees of the Charity. This was in accordance with the normal specific membership rates for each individual.

Travel expenses totalling £445 (2020: nil) were paid to a trustee and the balance outstanding at 31[st] December 2021 was £445 (2020: nil).

TCAST LTD

A company in which T Ayre, a Trustee of the charity, is a director and shareholder.

During the year an amount of nil (2020: £1,637) was paid to the related party for a development project and related travel expenses.

Foundry Equipment and Supplies Association Ltd.

A company in which S Hill and Mrs L Postle , trustees of the charity, and A Turner spouse of Mrs L Postle, are directors.

During the year the charity paid membership fees of £250 (2020: £250) to the related party.

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NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2021

17. RELATED PARTY DISCLOSURES-continued

Foundry Trade Journal Ltd

A company in which Ms L Postle, trustee of the charity, is a director and shareholder.

During the year the charity paid £45,000 (2020: £56,925) to Foundry Trade Journal Ltd. These monies were paid in relation to the production and distribution of the Foundry Trade Journal and advertising in the yearbook. This transaction was conducted on an arm's length basis and ratified by all trustees.

World Foundry Organisation Ltd

A company in which Ms L Postle, a trustee of the charity, is Assistant Secretary.

During the year the charity paid £1,725 (2020: £1,725) for membership fees.

18. OPERATING LEASE COMMITMENTS

operating leases follows: -

2021 2020
£ £
Within one year 6,578 6,578
Between two and five years 6,578 13,156

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INSTITUTE OF CAST METALS ENGINEERS

PROFIT AND LOSS ACCOUNT

FOR THE YEAR ENDED 31ST DECEMBER 2021

INCOME AND ENDOWMENTS
Donations and legacies
Sponsorship
Investment income
Quoted securities
Charitable Activities
Membership subscriptions
Publications
Grant
Training Services
Miscellaneous income
EXPENDITURE
Wages
Social Security costs
Pensions
Telephone
Postage and stationery
Professional and consultancy
Engineering council fees
Contribution to branches
Training Services
Establishment expenses
Other office expenses
Cost of publications
Cleefe project costs
EPA development costs
Institute awards
Exhibition and travel
Cost of FTJ journal
Secretarial support costs
Depreciation
Finance
Bank charges
Governance cost
Auditors' remuneration
Council, committee and staff expenses
Bad debts
Total resources expended
Net Expenditure before gains and losses
Realised gains on fixed asset investments
Net Expenditure		 2021
£
£
900
10,684
65,646
179
1,091
-
4,336
71,252
82,836

74,417
1423
5,308
679
5,225
11,563
4,481
(67)
-
13,451
19,306
1,470
-
6,781
843
745
45,000
5,625
441
196,691
2,547
2,547
5,000
1,003
-
6,003
(205,241)
(122,405)
57,408
(64,997)		 2020
£
£
150
14,386
62,658
-
2,313
462
4,836
70,269
84,805
72,963
1,783
6,155
556
3,777
10,155
3,224
1,521
14
12,902
14,840
-
6,525
12,947
562
275
56,925
6,563
1,854
213,541
2,148
2,148
4,800
1,990
651
7,441
(223,130)
(138,325)
48,274
(90,051)

This page does not form part of the statutory financial statements

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