## **REPORT OF THE DIRECTORS AND** 

**FINANCIAL STATEMENTS** 

**FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## **FOR** 

**INSTITUTE OF CAST METALS ENGINEERS** 



**INSTITUTE OF CAST METALS ENGINEERS** 

## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022** 

||**Page**|
|---|---|
|**Company Information**|1|
|**Report of the Directors**|2|
|**Report of the Independent Auditors**|6|
|**Income Statement**|10|
|**Balance Sheet**|11|
|**Statement of Changes in Equity**|12|
|**Notes to the Financial Statements**|13|
|**Trading and Profit and Loss Account**|23|





## **INSTITUTE OF CAST METALS ENGINEERS** 

**COMPANY INFORMATION FOR THE YEAR ENDED 31ST DECEMBER 2022** 

**TRUSTEES: Principal Officers** R Bell President L Jenkins Immediate Past President T Stevenson Honorary Treasurer M J Dudley Senior Vice President A Evans Junior Vice President **Elected Members** T Ayre L M Postle S Alexander A Sartorious M Sutton S Hill A Bennett D J Douglas T Carannante **REGISTERED OFFICE:** National Foundry Training Centre ECMS Tipton Road Tipton West Midlands DY4 7UW **REGISTERED NUMBER:** 00250380 **AUDITORS:** Fields 2nd Floor Landchard House Victoria Street West Bromwich West Midlands B70 8ER **BANKERS:** Lloyds Bank 134 New Street Birmingham West Midlands B2 4QZ 

Page 1 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **REPORT OF THE TRUSTEES (INCORPORATING THE DIRECTORS REPORT) FOR THE YEAR ENDED 31ST DECEMBER 2022** 

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 2022. 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). 

## **PRINCIPAL ACTIVITY** 

The principal activity of the company in the year under review was that of bringing together people from all sectors and levels, to offer help and advice, networking opportunities, technical information and professional development opportunities, in order to help the institutes members to make most of their careers. 

## **DIRECTORS** 

The directors shown below have held office during the whole of the period from 1st January 2022 to the date of this report. S Hill R Bell L Jenkins T Stevenson T Ayre L M Postle S Alexander A Sartorious M Sutton A Evans A Bennett D J Douglas M J Dudley **Other changes in directors holding office are as follows:** K Collins - resigned 21st May 2022 J Coughtrie - resigned 21st May 2022 T Carannante - appointed 21st May 2022 

## **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 2022 the Institute of Cast Metals Engineers became a recognised End Point Assessment Organisation (EPAO) for the level 3 apprenticeship standard ST0566.  ICME is now able to end point assess apprentices who have completed the standard for Casting, Foundry and Patternmaking. 

A number of short technical courses were also offered, in addition to leadership and management courses and it is planned that this activity will grow during 2023. 

By engaging with employers from the sector and contributing to some secretariat costs, ICME has also supported the development of a new level 3 apprentice standard in toolmaking and tool and die maintenance. 

The Foundry Trade Journal is a technical and news publication for the global industry that is provided to Members as part of their subscription. 

Some of the regional ICME branches had few foundries in their region to support activities, and were struggling to organise events, so there was some reorganisation into a smaller number of regional branches during 2022.  A number of regional events were held, some with on-line access, on a range of technical topics, enabling members, and individuals from the wider industry, to meet and network with like-minded people. Recordings of some were also made available to members. Dinners and social events also took place and the officers are mindful of the need to ensure that events are held around the UK.  The trustees are grateful to all those who have organised events, hosted meetings and made presentations to our members and the wider casting industry community on behalf of the Institute. 

Page 2 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **REPORT OF THE TRUSTEES (INCORPORATING THE DIRECTORS REPORT) FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## **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 is now able to offer End Point Assessment of apprentices for the foundry, casting and patternmaking industries apprenticeship programme. 

The Members Handbook has been updated and will be available to new and existing members through the members area of the ICME website, which has also been refreshed. 

As part of the commitment to training and upskilling, the ICME Council has set up a new Education, Training and Professional Development Committee to oversee work to increase the training offer for individuals in the industry and also to work on a programme of promotion of STEM and careers in casting to address the on-going skills issues in the casting and foundry industry. 

## **Membership Promotion and Apprentices** 

23 new members were recruited to ICME during 2022.  As part of its commitment to support young apprentices, technicians and their companies, ICME continues to offer free membership to apprentices. 

## **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. 

## **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 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 amounting to £65.7k and training income amounting to £73.7k for the year to the 31st December 2022. There was also income of £7.4k 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 2022 would be sufficient reserves held. This policy is reviewed each year by the Trustees. 

At the year end the charity held reserves totalling £468,758 made up as follows: restricted reserves £17,195 and unrestricted reserves £451,763. The trustees consider the level of reserves currently held to be of a sufficient level to support the charity moving forward. 

Page 3 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **REPORT OF THE TRUSTEES (INCORPORATING THE DIRECTORS REPORT) FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## **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 now offers additional technical short courses, a diploma in casting and various leadership and management courses. 

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 around 18 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 branch representatives and elected members, meet on a regular basis to give support. 

## **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 is 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. 

Page 4 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **REPORT OF THE TRUSTEES (INCORPORATING THE DIRECTORS REPORT) FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## **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: 

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in the Charities SORP 2019 (FRS 102) 

- make judgements and accounting estimates that are reasonable and prudent; 

- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. 

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 Business Advisors Ltd, 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:  M J Dudley Date:  24[th] June 2023 

Page 5 



## **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 'company') for the year ended 31st December 2022 which comprise the Income Statement, Balance Sheet, 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). 

In our opinion the financial statements: 

- give a true and fair view of the state of the company's affairs as at 31st December 2022 and of its loss for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Companies Act 2006. 

## **Basis for opinion** 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report.  We are independent of the 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 directors' 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 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 directors with respect to going concern are described in the relevant sections of this report. 

## **Other information** 

The directors are responsible for the other information. The other information comprises the information in the Report of the Directors 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.  We have nothing to report in this regard. 

## **Opinions on other matters prescribed by the Companies Act 2006** 

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

- the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and 

- the Report of the Directors has been prepared in accordance with applicable legal requirements. 

Page 6 



## **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 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: 

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 

- the financial statements are not in agreement with the accounting records and returns; or 

- certain disclosures of directors' remuneration specified by law are not made; or 

- we have not received all the information and explanations we require for our audit; or 

- the directors were not entitled to prepare the financial statements in accordance with the small companies’ regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. 

## **Responsibilities of directors** 

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors 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 directors determine 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 directors are responsible for assessing the 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. 

Page 7 



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

## **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 are capable of detecting irregularities, including fraud is detailed below: 

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. 

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. 

Page 8 



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

## **Use of our report** 

This report is made solely to the 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 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 company and the 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 Business Advisors 2nd Floor Landchard House Victoria Street West Bromwich West Midlands B70 8ER 

Date: 27[th] June 2023 

Page 9 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31ST DECEMBER 2022** 

|<br>Unrestricted<br>Restricted<br>Notes<br>fund<br>fund<br>£<br>£<br>**INCOME AND ENDOWMENTS FROM**<br>**Donation**<br>5<br>11,880<br>13,646<br>**Charitable activities**<br>Core<br>6<br>65,745<br>-<br>Publications<br>6<br>26<br>-<br>Training Services<br>6<br>73,751<br>-<br>Grants<br>6<br>-<br>-<br>Other income<br>6<br>4,813<br>-<br>**Investment income**<br>7<br>7,109<br>330<br>**Total Income**<br>163,324<br>13,976<br>**EXPENDITURE ON**<br>**Charitable activities**<br>Core<br>8<br>223,095<br>22,033<br>Training Services<br>8<br>29,392<br>-<br>**Total expenditure**<br>252,487<br>22,033<br>**Net gains/(losses) on investments**<br>(56,895)<br>(7,674)<br>**NET EXPENDITURE**<br>(146,058)<br>(15,731)<br>**RECONCILIATION OF FUNDS**<br>**Total funds brought forward**<br>597,621<br>32,926<br>**TOTAL FUNDS CARRIED FORWARD**<br>451,563<br>17,195|2022<br>Total<br>funds<br>£<br>25,526<br>65,745<br>26<br>73,751<br>-<br>4,813<br>7,439<br>177,300<br>245,128<br>29,392<br>274,520<br>(64,569)<br>(161,789)<br>630,547<br>468,758|2021<br>Total<br>funds<br>£<br>900<br>65,646<br>179<br>-<br>1,091<br>4,336<br>10,684<br>82,836<br>205,241<br>-<br>205,241<br>57,408<br>(64,997)<br>695,544<br>630,547|
|---|---|---|



The notes form part of these financial statements 

Page 10 



## **INSTITUTE OF CAST METALS ENGINEERS (REGISTERED NUMBER: 00250380)** 

## **STATEMENT OF FINANCIAL POSITION 31ST DECEMBER 2022** 

|<br>**Unrestricted**<br>**Restricted**<br>Notes<br> **fund**<br>**fund**<br>£<br>**£**<br>**FIXED ASSETS**<br>Intangible assets<br>10<br>**13,500**<br>**-**<br>Tangible assets<br>11<br>**7,673**<br>**-**<br>Investments<br>12<br>**404,461**<br>**11,266**<br>**425,634**<br>**11,266**<br>**CURRENT ASSETS**<br>Stocks<br>**27**<br>**2,744**<br>Debtors<br>13<br>**110,700**<br>-<br>Cash at bank and in hand<br>14<br>**2,103**<br>**9,539**<br>**112,830**<br>**12,283**<br>**CREDITORS**<br>Amounts falling due within one year<br>15<br>**(58,705)**<br>-<br>**NET CURRENT ASSETS**<br>**54,125**<br>**12,283**<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>**479,759**<br>**23,549**<br>**ACCRUALS AND DEFERRED INCOME**<br>17<br>**(28,196)**<br>**(6,354)**<br>**NET ASSETS**<br>**451,563**<br>**17,195**<br>**FUNDS**<br>18<br>Unrestricted funds<br>Restricted funds|**2022**<br>**Total**<br>**funds**<br>**£**<br>**13,500**<br>**7,673**<br>**415,727**<br>**436,900**<br>**2,771**<br>**110,700**<br>**11,642**<br>**125,113**<br>**(58,705)**<br>**66,408**<br>**503,308**<br>**(34,550)**<br>**468,758**<br>**451,563**<br>**17,195**<br>**468,758**|2021<br>Total<br>funds<br>£<br>-<br>3,295<br>507,664<br>510,959<br>3,108<br>128,236<br>20,060<br>151,404<br>(31,816)|
|---|---|---|
|||119,588<br>630,547<br>-<br>**630,547**<br>597,621<br>32,926<br>630,547|



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 24[th] June 2023 and were signed by: 

M J Dudley Trustee 

The notes form part of these financial statements 

Page 11 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **STATEMENT OF CHANGES IN EQUITY** 

## **FOR THE YEAR ENDED 31ST DECEMBER 2022** 

|**Balance at 1st January 2021**<br>**Changes in equity**<br>Total comprehensive income<br>**Balance at 31st December 2021**<br>**Changes in equity**<br>Total comprehensive income<br>**Balance at 31st December 2022**|**Retained**<br>**earnings**<br>**£**<br>662,285<br>(64,664)<br>597,621<br>(146,058)<br>451,563|<br>**Restricted**<br> <br>**fund**<br>**£**<br>26,983<br>(583)<br>26,400<br>(14,068)<br>12,332|**John**<br> <br>**Campbell**<br>**award**<br>**£**<br>6,276<br>250<br>6,526<br>(1,663)<br>4,863|<br>**Total**<br>**equity**<br>**£**<br>695,544<br>(64,997)<br>630,547<br>(161,789)<br>468,758|
|---|---|---|---|---|



The notes form part of these financial statements 

Page 12 



**INSTITUTE OF CAST METALS ENGINEERS** 

## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## 1. **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. 

## 2. **ACCOUNTING POLICIES** 

## **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** 

Income is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 

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 accrual’s 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. 

## **Intangible assets** 

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

Amortisation on the Database is charged on a straight-line basis over a period of five years commencing 1[st] January 2023 when the database came into use. 

continued... 

Page 13 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## 2. **ACCOUNTING POLICIES - continued** 

## **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. 

Computer equipment 33% on cost. Fixtures & Fittings 20% on cost. Casting Die included within Fixtures & fittings 10% on cost but written down to nil. 

## **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 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. 

## **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. 

## **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 3. 

## **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. 

continued... 

Page 14 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## 3. **EMPLOYEES AND DIRECTORS** 

The average number of employees during the year was 2 (2021 - 3). 

|Wages and salaries<br>Social security costs<br>Other pension costs|**2022**<br>**£**<br>**39,636**<br>**-**<br>**3,211**<br>**42,847**|2021<br>£<br>74,417<br>1,423<br>5,308|
|---|---|---|
|||81,148|



No employees received emoluments more than £60,000. Employer contributions amounted to £3,211 (2021:£5,308), and the balance outstanding at the year-end is £263 (2021:nil). 

## 4. **OPERATING LOSS** 

The operating loss is stated after charging: 

|Depreciation - owned assets<br>Operating lease costs<br>Auditors’ remuneration:<br>Non-Audit financial services|**2022**<br>**£**<br>**2,693**<br>**2,192**<br>**5,000**<br>**14,282**|2021<br>£<br>441<br>2,192<br>5,000<br>11,528|
|---|---|---|



## 5. **DONATIONS** 

|Sponsorship<br>**INCOME FROM CHARITABLE ACTIVITIES**<br>Activity<br>Membership subscriptions<br>Core<br>Publications<br>Core<br>Grant income<br>Core<br>Training services<br>Training activities<br>End point assessments<br>Training activities<br>Miscellaneous income<br>Core<br>**INVESTMENT INCOME**<br>Quoted securities||
|---|---|
|||



## 6. **INCOME FROM CHARITABLE ACTIVITIES** 

## 7. **INVESTMENT INCOME** 

Quoted securities 

continued... 

Page 15 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## 8. **CHARITABLE ACTIVITIES COSTS** 

|Direct costs<br>Support costs<br>(See page 23)<br>(note 9)<br>£<br>£<br>Core<br>210,616<br>63,904<br>9.<br>**SUPPORT COSTS**<br>Support costs, included in the above, are as follows:<br>**2022**<br>**£**<br>Bank charges<br>**2,432**<br>Governance costs<br>**7,704**<br>Bad debts<br>**53,768**<br>**63,904**|Totals<br>£<br>274,520|Totals<br>£<br>274,520|
|---|---|---|
|||2021<br>£<br>2,547<br>6,003<br>-|
|||8,550|



Included within governance costs are audit fees amounting to £5,000 (2021: £5,000). Bad debts includes a loan amount of £50,000 considered not recoverable. 

## 10. **INTANGIBLE FIXED ASSETS** 

|**INTANGIBLE FIXED ASSETS**||
|---|---|
||**Other**|
||**intangible**|
||**assets**|
||**£**|
|**COST**||
|At 1st January 2022|**73,808**|
|Additions|**13,500**|
|At 31st December 2022|**87,308**|
|**AMORTISATION**||
|At 1st January 2022||
|and 31st December 2022|**73,808**|
|**NET BOOK VALUE**||
|At 31st December 2022|**13,500**|
|At 31st December 2021|-|



continued... 

Page 16 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## 11. **TANGIBLE FIXED ASSETS** 

|**COST**<br>At 1st January 2022<br>Additions<br>Disposals<br>At 31st December 2022<br>**DEPRECIATION**<br>At 1st January 2022<br>Charge for year<br>Eliminated on disposal<br>At 31st December 2022<br>**NET BOOK VALUE**<br>At 31st December 2022<br>At 31st December 2021<br>**FIXED ASSET INVESTMENTS**<br>Investments (neither listed nor unlisted) were as follows:<br>Prize & medal fund investment<br>BG fund B investments|**2022**<br>**£**<br>**11,266**<br>**404,461**<br>**415,727**|**Fixtures**<br>**and**<br>**fittings**<br>**£**<br>**63,699**<br>**7,071**<br>**(53,632)**<br>**17,138**<br>**60,404**<br>**2,693**<br>**(53,632)**<br>**9,465**<br>**7,673**<br>3,295<br>2021<br>£<br>26,416<br>481,248<br>507,664|
|---|---|---|



## 12. **FIXED ASSET INVESTMENTS** 

continued... 

Page 17 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## 12. **FIXED ASSET INVESTMENTS - continued** 

|**MARKET VALUE**<br>At 1st January 2022<br>Additions<br>Disposals<br>Revaluation<br>At 31st December 2022<br>**NET BOOK VALUE**<br>At 31st December 2022<br>At 31st December 2021<br>There were no investment assets outside the UK<br>Investments (neither listed or unlisted) were as follows:<br>Managed unit trust fund<br>13.<br>**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>Trade debtors<br>Other debtors<br>Prepayments and accrued income<br>Within other debtors a loan amount of £50,000 has been written off as irrecoverable.<br>14.<br>**CASH AT BANK AND IN HAND**<br>Bank current account<br>Training Bank account<br>Coat of Arms<br>Currency floats<br>Paypal<br>Young foundrymen account<br>Petty cash|**Listed**<br>**investments**<br>**£**<br>**481,248**<br>**7,108**<br>**(27,000)**<br>**(56,895)**<br>**404,461**<br>**404,461**<br>**481,248**<br>**2022**<br>2021<br>**£**<br>£<br>**11,266**<br>26,416<br>**2022**<br>2021<br>**£**<br>£<br>**43,581**<br>9,416<br>**61,890**<br>113,017<br>**5,229**<br>5,803<br>**110,700**<br>128,236<br>**2022**<br>2021<br>**£**<br>£<br>**10,839**<br>19,096<br>**249**<br>430<br>**165**<br>165<br>**161**<br>161<br>**163**<br>143<br>**57**<br>57<br>**8**<br>8<br>**11,642**<br>20,060|
|---|---|
|||



continued... 

Page 18 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## 14. **CASH AT BANK AND IN HAND - continued** 

|**General**<br>**Restricted**<br>**fund**<br>**fund**<br>**£**<br>**£**<br>Cash in hand<br>**8**<br>**-**<br>Cash at bank<br>**2,095**<br>**9,539**<br>**2,103**<br>**9,539**<br>15.<br>**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**<br>Trade creditors<br>Tax and social security<br>Other creditors<br>Accruals and deferred income<br>16.<br>**LEASING AGREEMENTS**<br>Minimum lease payments under non-cancellable operating leases fall due as follows:<br>Within one year<br>Between one and five years<br>During the year two thirds of the operating lease payments were recharged out as income.<br>17.<br>**ACCRUALS AND DEFERRED INCOME**<br>Deferred income|**2022**<br>**Total**<br>**funds**<br>**£**<br>**8**<br>**11,634**<br>**11,642**||2021<br>Total<br>funds<br>£<br>8<br>20,052|
|---|---|---|---|
||||20,060|
||**2022**<br>**£**<br>**30,927**<br>**5,260**<br>**3,278**<br>**19,240**<br>**58,705**<br>**2022**<br>**£**<br>**6,578**<br>**-**<br>**6,578**<br>**2022**<br>**£**<br>**34,550**|2021<br>£<br>7,290<br>7,443<br>3,477<br>13,606||
|||31,816||
|||2021<br>£<br>6,578<br>6,578||
|||13,156||
|||2021<br>£<br>-||



Included in deferred income are course fees totalling £45,000 for an 18-month course expiring in the next financial year and subsequently £19,286 of the total course fees have been deferred as of 31st December 2022. This also includes donations from the Foundry training trust totalling £6,354 which have been deferred as at 31st December 2022 against future expenditure on this project as well as courses invoiced in the year but held in the next financial year totalling £8,910. 

continued... 

Page 19 



**INSTITUTE OF CAST METALS ENGINEERS** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## 18. **RESERVES** 

## **MOVEMENT IN FUNDS** 

||At 1.1.2022 Net movement|At 1.1.2022 Net movement|At 31.12.2022|
|---|---|---|---|
|||in funds||
|**Unrestricted funds**||||
|General fund|597,621|(146,058)|451,563|
|**Restricted funds**||||
|The John Campbell fund|6,526|(1,663)|4,863|
|Prize & Medal fund|26,400|(14,068)|12,332|
|FTT Project|-|-|-|
||32,926|(15,731)|17,195|
|**TOTAL FUNDS**|630,547|(161,789)|468,758|



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

||Incoming|Resources|Gains and|Movement in|Movement in|
|---|---|---|---|---|---|
||resources|expended|losses||funds|
||£|£|£||£|
|**Unrestricted funds**||||||
|General fund|163,324|(252,487)|(56,895)||(146,058)|
|**Restricted funds**||||||
|The John Campbell fund|84|-|(1,747)||(1,663)|
|Prize & Medal fund|246|(8,387)|(5,927)||(14,068)|
|FTT project|13,646|(13,646)|-||-|
||13,976|(22,033)|(7,674)||(15,731)|
||177,300|(274,520)|(64,569)||(161,789)|
|Comparative for movement in funds||||||
|||At 1.1.21|Movement in|At 31.12.21||
||||funds|||
|**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|



continued... 

Page 20 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2022** 

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

||Incoming|Resources|Gains and|Movement in|
|---|---|---|---|---|
||resources|expended|losses|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)|



## **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 efficient resources are available to meet the annual demands of the awards process. 

## **The John Campbell fund** 

The 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. 

## **The Foundry Training Trust** 

This fund was set up to cover the cost of an individual employed to bring in more candidates on training courses run by the Institute in order to generate more income from the running of these courses. 

continued... 

Page 21 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31ST DECEMBER 2022** 

## 19. **DIRECTORS' ADVANCES, CREDITS AND GUARANTEES** 

During the year membership subscription fees totalling £2,516 (2021: £2,381), which include free subscriptions to the value of £166 (2021: £332), were received from the Trustees of the Charity. This was in accordance with the normal specific membership rates for each individual. 

The charity received £348 (2021: nil) from the Trustees of the Charity from ticket sales to the Awards Ceremony held in the year. In addition there were two free tickets totalling £116 available to two trustees of the charity 

Travel expenses totalling £940 (2021: £445) were paid to a trustee and the balance outstanding at 31st December 2022 is £171 (2021: £445). 

## **Foundry Equipment and Supplies Association Ltd** 

A company in which S Hill and Ms 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 (2021: £250) to the related party. 

## **Foundry Trade Journal Ltd** 

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

During the year the charity paid £46,845 (2021: £45,000) 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. 

## **Weir Minerals Europe Ltd** 

A company in which L Jenkins, a trustee of the charity, is a director. 

During the year the charity invoiced the related party, course income totalling £13,770 (2021: nil). 

## **Thomas Dudley Ltd** 

A company in which M J Dudley, a trustee of the charity, is a director. 

During the year the charity invoiced the related party, course fees totalling £10,000 of which £4,286 has been deferred in the financial statements as at 31st December 2022. 

## **Foundry Training Trust** 

A charity in which A Turner, spouse of a trustee of the charity, is a trustee. During the year the charity received donations from FTT totalling £20,000 of which £6,354 has been treated as deferred income as at 31[st] December 2022. 

Page 22 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **PROFIT AND LOSS ACCOUNT** 

## **FOR THE YEAR ENDED 31ST DECEMBER 2022** 

|**INCOME AND ENDOWMENTS**<br>**Donations and legacies**<br>Sponsorship<br>**Investment income**<br>Quoted securities<br>**Charitable Activities**<br>Membership subscriptions<br>Publications<br>Grant<br>Training Services<br>EPA registrations<br>Miscellaneous income<br>**EXPENDITURE**<br>Wages<br>Social Security costs<br>Pensions<br>Telephone<br>Postage and stationery<br>Professional and consultancy<br>Engineering council fees<br>Contribution to branches<br>Training Services<br>Establishment expenses<br>Other office expenses<br>Cost of publications<br>Donations<br>EPA development costs<br>Institute awards<br>Exhibition and travel<br>Cost of FTJ journal<br>Secretarial support costs<br>Trustees’ expenses<br>Depreciation<br>**Finance**<br>Bank charges<br>**Governance cost**<br>Auditors' remuneration<br>Council, committee and staff expenses<br>Bad debts<br>**Total resources expended**<br>**Net Expenditure before gains and losses**|**2022**<br>**£**<br>**£**<br>**25,526**<br>**7,439**<br>**65,745**<br>**26**<br>**-**<br>**61,151**<br>**12,600**<br>**4,813**<br>**144,335**<br>**177,300**<br>**39,636**<br>**-**<br>**3,211**<br>**710**<br>**7,901**<br>**14,317**<br>**4,535**<br>**1,511**<br>**29,392**<br>**14,441**<br>**13,831**<br>**-**<br>**1,000**<br>**3,760**<br>**8,387**<br>**1,256**<br>**46,845**<br>**16,250**<br>**940**<br>**2,693**<br>**210,616**<br>**2,432**<br>**2,432**<br>**5,000**<br>**2,704**<br>**53,768**<br>**61,472**<br>**(274,520)**<br>**(97,220)**|2021<br>£<br>£<br>900<br>10,684<br>65,646<br>179<br>1,091<br>-<br>4,336<br>71,252<br>82,836<br>74,417<br>1,423<br>5,308<br>679<br>5,225<br>11,563<br>4,481<br>(67)<br>**-**<br>13,451<br>19,306<br>1,470<br>-<br>6,781<br>843<br>745<br>45,000<br>5,625<br>-<br>441<br>196,691<br>2,547<br>2,547<br>5,000<br>1,003<br>-<br>6,003<br>(205,241)<br>(122,405)|
|---|---|---|



This page does not form part of the statutory financial statements 

Page 23 



## **INSTITUTE OF CAST METALS ENGINEERS PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST DECEMBER 2022** 

||**2022**<br>|2021|
|---|---|---|
||**£**|£|
|Brought forward|**(97,220**)|(122,405)|
|Realised (loss)/ gain on fixed asset investments|(**64,569)**|57,408|
|**Net Expenditure**|**(161,789)**|(64,997)|



This page does not form part of the statutory financial statements 

Page 24 



## **INSTITUTE OF CAST METALS ENGINEERS** 

## **NON-MANDATORY NOTES FOR THE YEAR ENDED 31ST DECEMBER 2022** 

The following data screens have been completed by user entry resulting in the relevant notes appearing within the financial statements. However, these are not required in accordance with The Companies, Partnerships and Groups (Accounts and Reports) Regulations 2015. 

DONATIONS INCOME FROM CHARITABLE ACTIVITIES INVESTMENT INCOME CHARITABLE ACTIVITIES COSTS SUPPORT COSTS 

PLEASE CHECK THAT THESE ENTRIES ARE CORRECT.