2023-06-30-accounts

CLEVELAND SCIENTIFIC INSTITUTION (A company limited by guarantee)

102[nd] Report and Financial Statements

Year ended 30th June 2023

Company Registration No: 191037 Charity Registration No: 250599

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CLEVELAND SCIENTIFIC INSTITUTION (A company limited by guarantee)

102[nd] Report and Financial Statements

Year ended 30th June 2023

CONTENTS

Report of the Management Committee	3-11
Independent Examiner’s Report	12
Statement of financial activities	13
Balance sheet	14
Notes forming part of the financial statements	15-18

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CLEVELAND SCIENTIFIC INSTITUTION

102[nd] ANNUAL REPORT

REFERENCE & ADMINISTRATIVE INFORMATION

The Council has pleasure in submitting its 102[nd] Annual Report to the members of the Institution covering the year to 30th June 2023.

COUNCIL (Directors and Trustees)

President	J McGinnis
Vice President	J Rout
Secretary	W Suthers
Representatives of the Member Societies
Cleveland Institution of Engineers	S M Parker
	M Lewis
	J Rout
	A Kirk
Insurance Institute of Middlesbrough	C N Heslop
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	J McGinnis
Teesside University	N Dawood
Chartered Quality Institute
Energy Institute
Institute of Measurement and Control	C Howard
Welding Institute
Ex Officio (Past Presidents)
	A C Tickner
Appointed in Accordance with the Articles of Association	W Suthers

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CLEVELAND SCIENTIFIC INSTITUTION

102[nd] ANNUAL REPORT (Continued)

OFFICERS AND ADVISERS

Honorary Treasurer

W Suthers Orchard House Newton under Roseberry TS9 6QR

Honorary Secretary

W Suthers Orchard House Newton under Roseberry TS9 6QR

Bankers

Virgin Money Linthorpe Road Middlesbrough TS1 1RF

Independent Examiner

Graham Fitzgerald, BA FCA DChA Azets Audit Services Wynyard Park House Wynyard Avenue, Wynyard TS22 5TB

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

102[nd] ANNUAL REPORT (Continued)

MEMBER SOCIETIES

Cleveland Institution of Engineers Materials Processing Institute Eston Road, Grangetown, Middlesbrough, TS6 6US Chartered Quality Institute Chancery Exchange, 10 Furnival St, London EC4A 1AB Energy Institute 61 New Cavendish Street London,W1G 7AR Insurance Institute of Middlesbrough Tim Allen 18 Stotfield Walk Acklam Middlesbrough TS5 8RP 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 2Q8 Drummond Building School of Civil Engineering and Geosciences Newcastle University Claremont Road Newcastle upon Tyne NE1 7RU Institution of Chemical Engineers Membership Department, Davis Building, Rugby, CV21 3HQ Institution of Engineering and Technology David Young, 52 Rushmere, Marton, Middlesbrough, TS8 9XL Institution of Mechanical Engineers 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 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

102[nd] ANNUAL REPORT (Continued)

YEAR ENDED 30th JUNE 2023

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 recently been updated to reflect that the Institution currently is now largely a grant giving body in relation to encouraging people (especially young people) to take up STEM subjects as a career and also to encourage research in those subjects. Membership had been open to members of the then 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 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. 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 try to maintain the current level of its capital base. 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

102[nd] ANNUAL REPORT (Continued)

YEAR ENDED 30th June 2023

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 have to be recorded in the appropriate minutes.

Code of Conduct Policy

The Institution works with affiliated societies and others to seek opportunities to advance STEM. It 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 Members at the Annual General Meeting in November 2016.

Review of the year

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 2022-3 Prestigious Lecture, organised by the Cleveland Institution of Engineers, was entitled “Net Zero”. It was delivered by Dr Chris Beck, the Group Director Clean Growth and Innovation at the Tees Valley Combined Authority. Dr Beck’s thesis was: The Tees Valley has huge ambitions – to become the world’s first Net Zero industrial cluster by 2040. Being home to one of the biggest industrial clusters in Europe, it is an obvious location to lead the UK’s net zero ambitions.

Alfred Clayton Hill and James Winship Jackson Awards

The Cleveland Scientific Institution Alfred Clayton Hill Award is presented to an outstanding final year undergraduate student at 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.

In 2023 the winner of the ACH Prize (worth £600) was Ms L R Davison. The runners up (£50 each) were Mr M Patel, Mr K Davis and Mr P Hawkins.

The James Winship Jackson Presidential Award is awarded 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.

In 2023 the winner of the JWJ Prize was Ms L Chatt. The runners up (£50 each) were Mr S Majid, Mr J Tomlin and Mr S McGuinness.

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Grants

The application for CSI grants is promoted and overseen by a sub-committee of CSI. Appropriate projects are identified that meet the objectives of the Institution. Several projects were identified, and the following grants awarded:-

	£
Grants Awarded
Greenpower Education Trust	1,782
Whitby Rotary Club- Technology Tournament	500
Teesmouth Field Centre	2,720
CIE Prestigious Lecture	198
CIEC	2,150
Linnet	4,000
Lottie Books	500
Rotary Club of Whitby	300
Total for the year	12,150

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.clevelandscientific.org.uk which details the Institution’s function. The website is currently being redeveloped and the Institution’s offer is being marketed directly through flyers to local councils, authorities and schools.

No donations were received during the year.

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CLEVELAND SCIENTIFIC INSTITUTION

102[nd] ANNUAL REPORT (Continued)

YEAR ENDED 30th June 2023

Membership

The number of Member Societies on 30[th] June 2023 was 12.

Membership of the Council

Members of Council are nominated by the member societies. Councillors also can be elected by the Council for their expertise.

During the year:

• A number of Members of Council resigned during the year and hence ceased to be Directors: V Ludlow; A McGlynn; J Noon; L Elliott; D Atkinson; G Fletcher; R M North; D A Mills; G Jones; K A Bell; P W Shelton.

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

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CLEVELAND SCIENTIFIC INSTITUTION

102[nd] ANNUAL REPORT (Continued)

YEAR ENDED 30th June 2023

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:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and 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 assume that the Institution will continue in operation.

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.

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CLEVELAND SCIENTIFIC INSTITUTION

102[nd] ANNUAL REPORT (Continued)

YEAR ENDED 30th June 2023

Financial Matters

Income for the year was £32,163 (2022, £30,628) all of which was from Investments – Interest from Government Securities and Share Dividends. Expenditure for the year totalled £20292 (2022, £28,174), including Grants were £12,150 (2022, £16,395) and Prizes £2,800 (2022, £0).

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 £715,861 (2022, £732,265). The bond which represents the Alfred Clayton Hill Award fund is now a medium-term stock.

This resulted in a total net movement in funds of £5,046, deficit (2022, £41,216, deficit).

The Alfred Clayton Hill Award Funds are consolidated in these accounts to comply with Charity Commission requirements. Separate accounts are provided 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 Award

The Alfred Clayton Hill 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

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

I report to the Trustees on my examination of the financial statements of Cleveland Scientific Institution (the charitable company) for the year ended 30 June 2023.

Responsibilities and basis of report

As the Trustees of the charitable company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (the 2006 Act).

Having satisfied myself that the financial statements of the charitable company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the charitable company’s financial statements carried out under section 145 of the Charities Act 2011 (the 2011 Act). In carrying out my examination I have followed all the applicable Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act.

Independent Examiner’s statement

I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect:

1. accounting records were not kept in respect of the charitable company as required by section 386 of the 2006 Act; or

2. the financial statements do not accord with those records; or

3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or

4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached.

Graham Fitzgerald BA FCA DChA

Azets Audit Services

Wynyard Park House Wynyard Avenue Wynyard TS22 5TB

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CLEVELAND SCIENTIFIC INSTITUTION

STATEMENT OF FINANCIAL ACTIVITIES (including Income and Expenditure Account)

YEAR ENDING 30th JUNE 2023

	Notes	Unrestricted
		Funds	Funds
		2023	2022
		£	£
INCOMING RESOURCES FROM GENERATED FUNDS
Investment income
Returns on investment		32163	30628
		──────	──────
TOTAL INCOMING RESOURCES		32163	30628
		══════	══════
RESOURCES EXPENDED	2
Costs of generating funds
Charitable activities
Direct Expenditure in the furtherance of the	charity’s objects	19532	27454
Governance costs		760	720
		──────	──────
TOTAL RESOURCES EXPENDED		20292	28174
		══════	══════
NET INCOMING RESOURCES	3	11871	2454
Profit/(Loss) on Sale of Investments		-	-
Profit/(Loss) on revaluation of investments	6	(16917)	(43670)
		──────	──────
NET MOVEMENT IN FUNDS		(5046)	(41216)
		══════	══════
Total funds at 1st July 2022 brought forward		765492	806708
		══════	══════
Total funds at 30th June 2023 carried forward		760446	765492
		══════	══════

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 15 to 18 form part of these statements.

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CLEVELAND SCIENTIFIC INSTITUTION

BALANCE SHEET

AS AT 30th JUNE 2023

			2023		2022
	Notes	£	£	£	£
Fixed assets
Tangible assets	5		-		-
Investments	6		715861		732265
			──────		─────
			715861		732265
Current assets
Cash at bank and in hand		46345		36578
Creditors: amounts falling	due
within one year	7	(1760)		(3351)
		──────		────
Net current assets			44585		33227
			──────		──────
Net assets			760446		765492
			══════		══════
Unrestricted funds
General funds	8		760446		765492
			══════		══════

The company is entitled to the exemption from the audit requirement contained in section 477 of the Companies Act 2006, for the year ended 30 June 2023.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies’ regime.

The financial statements were approved by the Trustees on………………………

………………………… J McGinnis

President

Company registration number 191037

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CLEVELAND SCIENTIFIC INSTITUTION

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th JUNE 2023

1. Accounting policies

(a) Basis of Accounting

The financial statements have been prepared in accordance with the charitable company's governing document, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice 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)". The charitable company is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling, which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

(b) Going Concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

(c) 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.

(d) 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.

(e) 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.

(f) 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.

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CLEVELAND SCIENTIFIC INSTITUTION

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th JUNE 2023

(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.

2. Total resources expended

Basis of Charitable Governance Allocation Activities Costs £ £ Grants paid Direct 12150 - Awards Direct 2800 - Centenary costs Direct - - Insurances Direct 1395 - Administration Direct 2013 - Meeting Costs Direct 1170 - Website Costs Direct 343 - Miscellaneous Costs Direct 13 - Accountancy Direct - 760 Commission & charges Direct (352) - Sponsorship Direct - - Total Resources Expended 19532 760 All of the above expenditure is in respect of unrestricted funds in both periods. 3. Net incoming resources for the year 2023 £ This is stated after charging: Independent Examiner’s remuneration 760	2023 £ 12150 2800 - 1395 2013 1170 343 13 760 (352) - 20292 2022 £ 720	2022 £ 16395 - 1348 1275 3526 - - - 720 4910 -
		28174

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

4. Taxation

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

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CLEVELAND SCIENTIFIC INSTITUTION

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th JUNE 2023

5.	Tangible fixed assets	Furniture &
		Equipment
		£
	Cost
	At 1st July 2022 and 30th June 2023	275
	Depreciation
	At 1st July 2022 and 30th June 2023	(275)
	Net book value	_
	At 30th June 2022 and 30th June 2023	-
		══════
	There were no capital commitments at 30th June	2023 (2022 - £Nil).

6.	Investments	2023	2022
		£	£
	Redmayne Discretionary funds:-
	At 30th June 2022	327916	352147
	Purchased during the year	18879	-
	Sale of Investments during the year	(20551)	-
	Gain/(Loss) Realised during the year	1672	-
	(Decrease)/Increase in investments from change in value	(26466)	(24231)
	──────		──────
	At 30th June 2023	301450	327916
	══════		══════
	Redmayne Execution funds:-
	At 30th June 2022	404093	423532
	Purchased during the year	-	-
	Sale of Investments during the year	-	-
	Gain Realised during the year	-	-
	(Decrease)/Increase in investments from change in value	9548	(19439)
	──────		──────
	At 30th June 2023	413641	404093
	══════		══════
	Cash for Investment	769	256
	══════		══════
	Total Value of Investments at 30th June 2023	715861	732265
	══════		══════
	Historical cost of investments at 30th June 2023	691558	669428
	══════		══════

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CLEVELAND SCIENTIFIC INSTITUTION

NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30th JUNE 2023

7. Creditors: amounts falling due within one year

Creditors: amounts	falling due w	ithin one year	2023		2022
			£		£
Sundry Creditors				-	-
Accruals			1760		3351
			─────		─────
			1760		3351
			═════		═════
Movement in funds	– current year
	At 1st July	Incoming	Outgoing		At 30th June
	2022	Resources	Resources	Revaluations	2023
	£	£	£	£	£
General funds	765492	32163	(20292)	(16917)	760466
	══════	═════	═════	═════	═════
Movement in funds	– prior year
	At 1st July	Incoming	Outgoing		At 30th June
	2021	Resources	Resources	Revaluations	2022
	£	£	£	£	£
General funds	806708	30628	(28174)	(43670)	765492
	══════	═════	═════	═════	═════

8. Movement in funds – current year

9. Movement in funds – prior year

9. Analysis of net assets between funds

All funds are general unrestricted funds as noted in the balance sheet and movement in funds note.

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