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2022-06-30-accounts

CLEVELAND SCIENTIFIC INSTITUTION (A company limited by guarantee)

101[st] Report and Financial Statements

Year ended 30th June 2022

Company Registration No: 191037 Charity Registration No: 250599

1

CLEVELAND SCIENTIFIC INSTITUTION (A company limited by guarantee)

101[st] Report and Financial Statements

Year ended 30th June 2022

CONTENTS

Report of the Management Committee 3-11
Independent Examiner’s Report 12
Statement of fnancial activities 13
Balance sheet 14
Notes forming part of the fnancial statements 15-17

2

CLEVELAND SCIENTIFIC INSTITUTION

101[st] ANNUAL REPORT

REFERENCE & ADMINISTRATIVE INFORMATION

The Council has pleasure in submitting its 101[st] Annual Report to the members of the Institution covering the year to 30th June 2022.

COUNCIL (Directors and Trustees)

President

J McGinnis

Vice President

J Rout

Representatives of the Member Societies

Cleveland Institution of Engineers

S M Parker A Kirk V Ludlow M Lewis J Rout A McGlynn

Chartered Quality Institute A McGlynn Energy Institute Insurance Institute of Middlesbrough C N Heslop Institute of Measurement and Control J Noon Institute of Physics A C Brabbs Institution of Chemical Engineers A P Northey Institution of Civil Engineers S J Kellerman Institution of Engineering and Technology D Young Institution of Mechanical Engineering T B Bradley Royal Society of Chemistry L Elliott Teesside University N Dawood Welding Institute D Atkinson.

Ex Officio (Past Presidents)

A C Tickner G Fletcher D A Mills K A Bell

S J Kellerman S A Taylor A P Northey R M North G Jones C R Howard P W Shelton

Appointed in Accordance with the Articles of Association

W Suthers

3

CLEVELAND SCIENTIFIC INSTITUTION

101[st] ANNUAL REPORT (Continued)

OFFICERS AND ADVISERS

Honorary Treasurer

W Suthers

c/o School of Computing, Engineering and Digital Technologies Teesside University Middlesbrough TS1 3BA

Honorary Secretary

W Suthers

c/o School of Computing, Engineering and Digital Technologies Teesside University Middlesbrough TS1 3BA

Bankers

Virgin Money Linthorpe Road Middlesbrough TS1 1RF

Independent Examiner

Jonathan Gresham, FCCA Azets

New Garth House, Upper Garth Gardens Guisborough TS14 6HA

Stockbrokers

Redmayne Bentley LLP Church House, College Square, Stokesley Middlesbrough TS9 5DN

Company Registration Number: 191037 Charity Registration Number: 250599

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CLEVELAND SCIENTIFIC INSTITUTION

101[st] ANNUAL REPORT (Continued)

MEMBER SOCIETIES

Cleveland Institution of Engineers

Chartered Quality Institute

Materials Processing Institute Eston Road, Grangetown, Middlesbrough, TS6 6US

Chancery Exchange, 10 Furnival St, London EC4A 1AB

Energy Institute

61 New Cavendish Street London,W1G 7AR

Insurance Institute of Middlesbrough

Tim Allen Acklam Middlesbrough TS5 8RP

18 Stotfield Walk

Institute of Measurement and Control

Mike Vowell, 26 Pentland Avenue, Redcar, TS10 4HD

Institute of Physics

Alex Brabbs 76 Portland Place London, W1B 1NT

Institution of Civil Engineers

Room 208 Drummond Building School of Civil Engineering and Geosciences Newcastle University Claremont Road Newcastle upon Tyne NE1 7RU

Institution of Chemical Engineers

Institution of Engineering and Technology

Institution of Mechanical Engineers

Membership Department, Davis Building, Rugby, CV21 3HQ

David Young, 52 Rushmere, Marton, Middlesbrough, TS8 9XL

28 The Poplars Wolviston Stockton on Tees TS22 5LY

Royal Society of Chemistry

Membership Department, Thomas Graham House, Science Park, Milton Road, Cambridge, CB4 0WF

Teesside University Technologies

School of Computing, Engineering & Digital

Teesside University Middlesbrough, TS1 3BA

Welding Institute

Don Atkinson Aurora Court, Barton Road Riverside Park Middlesbrough TS2 1RY

Applications for membership of any of the above should be made to the address shown.

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CLEVELAND SCIENTIFIC INSTITUTION

101[st] ANNUAL REPORT (Continued)

YEAR ENDED 30th JUNE 2022

About the Institution

The Institution is registered as a Company Limited by Guarantee. In the event of the Institution being wound up, each Member is liable to pay an amount, not exceeding £10 for up to one year after ceasing to be a Member.

The Institution was registered in 1923 as the Cleveland Scientific & Technical Institution and in 1965 changed its name to the Cleveland Scientific Institution. It is governed by Articles of Association and By-Laws adopted in 2015.

Articles of Association and Membership

The Objects have been updated to reflect that the Institution is currently primarily a grant giving body which aims to encourage people (especially young people) to take up STEM subjects as a career and also to encourage research in those subjects. Membership had, in the past, been open to members of subscribing societies. It proved impossible to keep a check on these, so it was decided to make the Societies themselves the members. The remainder of the new Articles reflect the standard ones issued by the Charities Commission.

Objective of the Institution

The objective of the Institution is the advancement of Science, Technology, Engineering and Mathematics and related subjects including their application in education, industry and practice, amongst the public and professionals within the Tees Valley (currently defined as the unitary authorities of Darlington, Stockton on Tees, Hartlepool, Middlesbrough and Redcar and Cleveland and surrounding areas, including Richmond and Whitby).

The Council have considered the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing its aims and objectives in planning its future activities.

The Institution is governed by the Council, which meets regularly. The day-to-day affairs of the Institution are carried out on its behalf by the School of Computing, Engineering and Digital Technologies at Teesside University. Members of the Council assist in specific tasks and serve on various Committees which meet as required and as the Institution requires from time to time.

Powers of Investment and Investment Policy

The Council’s powers of investment are laid out by the Articles of Association. These powers require it to invest the monies of the Institution not immediately required for its purposes in or upon such investments, securities or property as may be thought fit.

Until 2013, there had been no investment policy in operation other than to invest in Government Stock. In order to safeguard the future of the finances of the Institution, a formal policy was drawn up. This states that the Institution should invest in a diverse range of investments. The aim is to provide a growing income stream (to combat inflation) and to maintain the current level of its capital base in real terms. Other than Government Stocks, the investments were initially restricted to Investment Trusts. Recently, as the main holding in Government Stocks have become ‘medium term’ the sale of these and reinvestment of funds has been delegated to the Institution’s broker, Redmayne Bentley. No new investment shall be worth 10% or more of the total value at the time of investment. The full policy is set out on the Institution’s website and is subject to revision through a resolution at the AGM .

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CLEVELAND SCIENTIFIC INSTITUTION

101[st] ANNUAL REPORT (Continued)

YEAR ENDED 30th June 2022

Conflicts of Interest Policy

The Institution is mindful of the need to avoid conflicts of interest and to have a policy to state its position on the matter. Particularly in view of the fact Councillors are nominated by Member Societies, it is required that they identify possible conflicts and go on to prevent this affecting any decision by declaring the interest. Additionally, where decisions could result in benefits to a councillor this must also be declared. The policy goes on to require that any potential or actual conflicts of interest must be recorded in the appropriate minutes.

Code of Conduct Policy

The Institution is always mindful that its Trustees act in a considerate and lawful manner. To this end it has drafted a policy for its Trustees to follow. It states that the Trustees must obey the law and abide by the rules laid down by their Institutes. The Trustees should take an active part in the affairs of the CSI, attend meetings, and take part in debates. They should also accept majority decisions and respect confidentiality of the Institution. The Policy was agreed by Members at the Annual General Meeting in November 2016.

Review of the year

The aim of the Council has been to improve the facilities offered principally through the affiliated societies but also through others. The Institution looks for opportunities to advance the cause of the sciences through providing places and facilities for meetings and promotions by way of supporting lectures, exhibitions and conferences especially where these are aimed at student and scholastic bodies and other organisations supporting young people. It also promotes sciences in schools by way of grants and attempts to ensure that otherwise disadvantaged scholars are the target or included in the projects so supported.

The Prestigious Lecture

The Prestigious Lecture has not taken place since 2018 due to Covid.

Alfred Clayton Hill and James Winship Jackson Awards

These awards were not presented in 2021 but have been reinstated for 2022 under revised criteria, as follows:

The Cleveland Scientific Institution Alfred Clayton Hill Award will be presented to an outstanding final year undergraduate student of Teesside University, who has shown most promise and drive in finding additional STEM-related skills and experience beyond their academic studies, for example through voluntary work, summer placement, extra-curricular activity, etc.

The James Winship Jackson Presidential Award will be presented to an outstanding final year undergraduate student of Teesside University, who has completed a work placement of at least 12 weeks duration and shown additional initiative while on placement.

8

Centenary Competition

The Institution reached its centenary in 2021, and to mark the occasion a competition was organised for school pupils across the 5 – 18 age range, with cash prizes awarded to the winners and runners-up at each Key Stage, and a shield for the school. Prize winners also received a small shield, and all participants received a certificate.

Prize money was originally £100 winner/£50 runner-up at each of KS 1-5. No KS1 entries were received, and only one from KS5, whereas a large number came from KS2. Accordingly, the £150 available from KS1 and £50 from KS5 were added to the £150 for KS2; the resulting £350 was then split into 5 x £70 prizes, which enabled separate prizes to be awarded to the older and younger ends of the KS2 “spectrum”, and one prize to be reserved for the best entry from Grangetown Primary. Their pupils have special educational needs and would have stood no chance in open competition, but the judges felt that their efforts in submitting 10 entries deserved to be recognised.

The secondary school girls who won also received a book called ‘Overcoming the Odds’ which was about women scientists from different parts of the world. The teachers also received a copy. The books were donated to Leila Elliott by a former colleague. Leila, along with Joe McGinnis, visited the winning schools to present the prizes and certificates.

Grants

The application for CSI grants is promoted and overseen by the Education Support Group. Appropriate projects were identified that meet the objectives of the Institution, namely the advancement of sciences, technology, engineering and mathematics (STEM) as defined in the Articles of Association. Several projects were identified, and the following grants awarded:-

Grants Awarded

Greenpower Education Trust
Whitby Rotary Club - Technology Tournament
Bring It On (NE Exhibition for future engineers)
Children Challenging Industry
3,350
Hydrogen Cars Project
Total for the year
£
5,073
300
5,000
2,672
£16,395

It remains a constant challenge to find worthwhile projects to maintain and develop the Institution’s profile. To this end a website has been set up at www.clevelandscientifc.org.uk which details the Institution’s function.

No donations were received during the year.

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CLEVELAND SCIENTIFIC INSTITUTION

101[st] ANNUAL REPORT (Continued)

YEAR ENDED 30th June 2022

Membership

The number of Member Societies at 30[th] June 2022 was 12.

Membership of the Council

Members of Council are also Directors for the purposes of the Companies Acts and Trustees for the purposes of the Charities Acts. Members of Council are nominated by the member societies. Councillors also can be elected by the Council for their expertise.

During the year:

All the remaining Directors were Directors for the whole of the year.

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CLEVELAND SCIENTIFIC INSTITUTION 101[st] ANNUAL REPORT (Continued)

YEAR ENDED 30th June 2022

Statement of Council’s Responsibilities for Preparing Accounts

The Members of Council (who are also Trustees and Directors of the Cleveland Scientific Institution for the purposes of Charity and Company Law) are responsible for preparing the Council’s Report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice.

Company and Charity law requires the Members of Council to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Institution and of the incoming resources and application of the same, including income and expenditure, of the Institution for that period. In preparing those financial statements the Members of Council are required to:

The Members of the Council are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the Institution 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 Institution and hence for taking reasonable steps for the prevention of fraud and other irregularities.

The present level of funding is adequate to support the continuation of the operation of the Institution for the medium term and the Council considers the financial position of the Institution to be satisfactory.

12

CLEVELAND SCIENTIFIC INSTITUTION

101[st] ANNUAL REPORT (Continued)

YEAR ENDED 30th June 2022

Financial Matters

Income for the year was £30,628 (2021, £32,125) all of which was from Investments, namely Interest from Government Securities and Share Dividends. Expenditure for the year, excluding Grants and Bursaries, was £11,779 (2021, £6,311) this looks like a large increase but results from the previous year being low due to Covid. Grants were £16,395 (2021, £17,234).

The remaining Treasury Stock, 4 ¼% 2032 were sold during the year by our broker RedmayneBentley who continue to further diversify our portfolio. The value of the Institution’s investments declined during the year in line with changes in the FT100 index and significant uncertainty in the UK economy. The investments were valued at £732,265 (2021, £775,934). The bond which represents the Alfred Clayton Hill fund, still classed as long-term stock, fell in value from £31,647 to £26,778 during the year.

This all resulted in a total deficit (net movement in Funds) of £43,670 (2021, £90,515 surplus).

The Alfred Clayton Hill Scholarship Funds are consolidated in these accounts to comply with Charity Commission requirements. Separate accounts are recorded for management purposes.

The Institution’s accounts are not audited but an Independent Examiner has been appointed to comply with the Charity Commission’s requirements.

Alfred Clayton Hill Scholarship

The Alfred Clayton Hill Scholarship award is governed by the terms of the will of the late Mr Walter Sacker Hill as varied by the Charities Commission in 1992 and is in the gift of the President of the Institution.

Ac knowledgements

The Council also thanks those Members of the Council who gave generously of their time in various individual capacities, on which it is not possible to put a value. In addition, the Council acknowledge the contribution made by Mrs Julie Shelton in her capacity as Administration Secretary and the honorary officers.

This Report has been prepared in accordance with the special provisions in Part 15 of the Companies Act, 2006, relating to small entities.

W Suthers Honorary Secretary

7[th] November 2022

13

INDEPENDENT EXAMINER’S REPORT TO THE COUNCIL OF CLEVELAND SCIENTIFIC INSTITUTION

I report on the accounts of the Institution for the year ended 30th June 2022 set out on pages 11 to 15.

Respective responsibilities of Members of Council and Examiner.

The Members of Council of the Institution, (who are also Trustees of the Institution for the purposes of Charity Law and who are also Directors of the Institution for the purposes of Company Law), are responsible for the preparation of the accounts. The Members of Council consider that an audit is not required for this year under section 144(2) of the Charities Act, 2011, (the 2011 Act) , and that an independent examination is needed.

Having satisfied myself that the Institution is not subject to an audit under Company Law and is eligible for independent examination it is my responsibility to:

Basis of Independent Examiner’s statement

My examination was carried out in accordance with the General Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the Institution and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts and seeking explanations from you as Members of Council concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit, and consequently no opinion is given as to whether the accounts present a “true and fair view” and the report is limited to those matters set out in the statement below.

Independent Examiner’s statement

In connection with my examination, no matter has come to my attention:

have not been met: or

2 to which. In my opinion, attention should have been drawn in order to enable a proper understanding of the Accounts to be reached.

15

Name: Jonathan Gresham

New Garth House Upper Garth Gardens Guisborough TS14 6HA 7[th] November 2022

Institution: ACCA

Date:

CLEVELAND SCIENTIFIC INSTITUTION

STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account) YEAR ENDING 30th JUNE 2022

Notes Unrestricted
Funds Funds
2022 2021
£ £
INCOMING RESOURCES FROM GENERATED FUNDS
Investment income
Returns on investment 30628 32125
────── ──────
TOTAL INCOMING RESOURCES 30628 32125
══════ ══════
RESOURCES EXPENDED
2
Costs of generating funds
Charitable activities
Direct Expenditure in the furtherance of the charity’s objects27454 22865
Governance costs 720
680
────── ──────
TOTAL RESOURCES EXPENDED 28174 23545
══════ ══════
NET INCOMING RESOURCES 3 2454 8580
Proft/(Loss) on Sale of Investments - (5532)
Proft/(Loss) on revaluation of investments (43670) 90515
────── ──────
NET MOVEMENT IN FUNDS (41216) 93563
══════ ══════
Total funds at 1st July 2021 brought forward 806708 713145
══════ ══════
Total funds at 30th June 2022 carried forward 765492 806708
══════ ══════

16

The Statement of Financial Activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities.

The notes on pages 13 to 15 form part of these statements.

17

CLEVELAND SCIENTIFIC INSTITUTION

BALANCE SHEET

AS AT 30th JUNE 2022

----- Start of picture text -----
2022 2021
Notes £ £ £ £
Fixed assets
Tangible assets 5 - -
Investments 6 732265 775934
────── ─────
732265 775934
Current assets
Cash at bank and in hand 36578 31941
Creditors: amounts falling due
within one year 7 (3351) (1167)
────── ────
Net current assets 33227 30774
────── ──────
Net assets 765492 806708
══════ ══════
Unrestricted funds
General funds 8 765492 806708
══════ ══════
----- End of picture text -----

For the year ended 30 June 2022 the company was entitled to exemption under Section 477 of the Companies Act 2006 relating to small companies.

Directors responsibilities:

These accounts have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006 and with the Financial Reports Standard for smaller entities (effective April 2008).

Approved by the management committee (Council of the Institution) on 7[th] November 2022 and signed on its behalf by:

J McGinnis

President

The notes on pages 13 to 15 form part of these statements

18

CLEVELAND SCIENTIFIC INSTITUTION

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th JUNE 2022

1. Accounting policies

(a) Basis of Accounting

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The Financial Statements have been prepared in accordance with the Financial Reporting Standard for Smaller Entities (effective April 2008), the Companies Act 2006 and in accordance with “Accounting and Reporting by Charities” Statement of Recommended Practice issued in 2005.

(b) Incoming Resources

All incoming resources are included in the SOFA when the Charity is legally entitled to the income and the amount can be quantified with reasonable accuracy for legacies. Entitlement is the earlier of the charity being notified of an impending distribution or the legacy being received.

(c) Resources Expended

Resources expended are recognised in the period in which they are incurred. Resources expended include attributable VAT which cannot be recovered. Resources expended are allocated to the particular activity where the costs relate directly to that activity. However, expenses such as rent or rates and energy are apportioned as to floor space. Administration costs are split equally.

(d) Tangible Fixed Assets and Depreciation

Tangible fixed assets are capitalised and included at cost including any incidental costs of acquisition.

Depreciation is provided at rates calculated to write off the cost of each asset over its expected useful life at the following rate:

Furniture and Equipment

10 years.

(e) Unrestricted Funds

Unrestricted Funds are donations and other incoming resources receivable or generated for the objects of the Charity without further specified purposes and are available as general funds.

(f) Investments

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

19

CLEVELAND SCIENTIFIC INSTITUTION

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th JUNE 2022

2. Total resources expended

Basis of
Charitable
Governance
Allocation
Activities
Costs
£
£
Grants paid
Direct
16395
-
Centenary costs
Direct
1348
-
Insurances
Direct
1275
-
Administration
Direct
3526
-
Meeting Costs
Direct
-
-
Miscellaneous Costs Direct
-
-
Accountancy
Direct
-
720
Commission & charges
Direct
4910
4868
Sponsorship
Direct
-
-
Total Resources Expended
27454
720
3.
Net incoming resources for the year
2022
£
This is stated after charging:
Independent Examiner’s remuneration
720
2022
£
16395
1348
1275
3526
-
-
720
-
-
28174
2021
£
667
2021
£
17234
-
1137
2411
(3135)
13
667
4910
350
23545

No emoluments or reimbursed expenses were paid to members of the management committee.

4. Taxation

The charitable company is exempt from corporation tax on its charitable activities.

5.
Tangible fxed assets
Furniture &
Equipment
£
Cost
At 1st July 2021 and 30th June 2022
275
Depreciation
At 1st July 2021 and 30th June 2022
(275)
Net book value
At 30th June 2021 and 30th June 2022
═══
_
-
═══

20

There were no capital commitments at 30th June 2022 (2021 - £Nil).

CLEVELAND SCIENTIFIC INSTITUTION

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th JUNE 2022

6. Investments 2022 2021
£ £
Stocks under management:-
At 30th June 2021 352147 356137
Purchased during the year - 69841
Sale of Investments during the year - (73725)
Gain/(Loss) Realised during the year - (5532)
(Decrease)/Increase in investments from change in value(24231) 5426
────── ──────
At 30th June 2022 327916 352147
══════ ══════
Investment Trusts:-
At 30th June 2021 423532 338443
Purchased during the year
-
-
Sale of Investments during the year - -
Gain Realised during the year - -
(Decrease)/Increase in investments from change in value(19439) 85089
────── ──────
At 30th June 2022 404093 423532
══════ ══════
Cash for Investment 256 255
══════ ══════
Total Value of Investments at 30th June 2022732265 775934
══════ ══════
Historical cost of investments at 30th June 2022669428 669428
══════ ══════
7. Creditors: amounts falling due within one year2022 2021
£ £
Sundry Creditors - -
Accruals 3351
1167
───── ─────
3351 1167
═════ ═════

8. Movement in funds

21

At 1st July Incoming Outgoing At 30th June At 30th June
2021 **Resources ** ResourcesRevaluations 2022
£ £ £ £ £
General funds 806708 30628 (28174) (43670) 765492
══════ ═════ ═════ ═════ ═════

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