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2021-12-31-accounts

REGISTERED COMPANY NUMBER: 00969051 (England and Wales) REGISTERED CHARITY NUMBER: 260666

REPORT OF THE TRUSTEES AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

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

Page
Report of the Trustees 1 to 27
Report of the Independent Auditors 28 to 31
Statement of Financial Activities 32
Statement of Financial Position 33 to 34
Statement of Cash Flows 35
Notes to the Statement of Cash Flows 36
Notes to the Financial Statements 37 to 47
Detailed Statement of Financial Activities 48 to 49

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 December 2021. The trustees have adopted the provisions of 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).

BINDT Mission and Mission Scope

This is encapsulated in BINDT’s ‘charitable objects’, which are listed in the BINDT Articles of Association, the principal one of which is:

To promote the advancement of the science and practice of non-destructive testing, condition monitoring, diagnostic engineering and all other associated materials and quality testing disciplines.

What is immediately clear from the mission is that BINDT is relatively unconstrained: the mission goes beyond the engineering discipline of NDT and does not apply only to the UK.

Regarding engineering disciplines, BINDT has taken a position whereat it sees NDT, CM and Structural Health Monitoring (SHM), or perhaps ‘Health Monitoring’ per se, as three sides of the same thing.

In other words, whereas BINDT aims to provide a ‘platform for leadership’ and to provide ‘education and professional development’ products and services to its stakeholders, those stakeholders primarily (but not exclusively) identify themselves with the engineering disciplines of NDT, CM and SHM. Therefore, the term ‘NDT’ should generally be taken to mean ‘NDT, CM, SHM, diagnostic engineering and all other associated materials and quality testing disciplines’.

Regarding internationality, at the time of writing, over 50% of BINDT’s income is derived from products and services provided overseas, or to people or organisations based overseas, either directly or through BINDT’s partners such as Authorised Qualification Bodies (AQBs).

Public Benefit

As a UK Registered Charity, BINDT must demonstrably provide a benefit to the public: again, not constrained to UK-based public.

The benefits to the public can be summarised as follows:

Facilitating the education and professional development of people in NDT results in:

BINDT Propositions and Capabilities

BINDT’s ‘structure for growth’, implemented in 2015, is based around BINDT’s 12 propositions and capabilities and is summarised in BINDT’s Bye-law No.2. The 12 propositions and capabilities are as follows (noting that the 8 propositions through which products and services are provided to customers are italicised ):

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These can be considered to be the 12 things at which BINDT aims to be world class.

Increasingly, BINDT products and services should and will be delivered in bundles. For example, a person undertaking one of the Non-Destructive Testing apprenticeship schemes may engage with all of the following BINDT propositions during the process:

BINDT’s Value Proposition

The reasons, based on a survey of members, that people and organisations choose to engage with BINDT can be summarised as follows:

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▪ Books.

o For organisations, this includes exhibitions.

The above list outlines the value of engaging with BINDT through its Membership proposition, which can be considered a proxy for the value of engaging with any one or combination of BINDT’s propositions.

It is perhaps worth articulating the high-level value proposition for any individual or organisation engaging with BINDT in any way. That is:

BINDT’s Vision

Broadly, BINDT aspires to:

The means to these ends include:

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BINDT Structure, Governance and Management

BINDT is structured around its 12 propositions and capabilities, thereby putting the beneficiaries (the public, BINDT Members and other stakeholders) at the heart of the structure.

The secretariat is organised around four operating departments (Publishing, Media & Marketing; Conferences and Events; Certification; Membership and Registration) supported by a number of ‘overhead’ functions such as accounts, facilities management, quality control, etc. (See Figure 1). It is led by a Chief Executive Officer and a group of senior staff, known collectively as the Staff Executive, who have responsibility for the day-today running of the Institute.

Operations and execution of the strategic plan are overseen by committees of volunteers/members.

The Staff Executive and the oversight committees report to a Council of volunteer/member Trustees/Directors. Council has overall responsibility for the governance, leadership and management of the Institute.

BINDT’s Council also has a number of additional specific committees that report to it such as the Governance Advisory Committee.

New members of Council (i.e. new trustees) undergo an induction process to brief them on their legal responsibilities, etc.

The Institute is controlled by its governing document, its Articles of Association, and a series of bye-laws. BINDT is a limited company, as well as a UK-registered charity, limited by guarantee as defined by the Companies Act 2006.

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Figure 1. The Institute's eight propositions showing committee oversight

More information can be found on BINDT’s web site at: http://www.bindt.org/about-us/Institute-Organisation

Appointment of trustees/directors

Extract from Articles of Association (Rev 10 September 2020)

  1. The Institute may by ordinary resolution:

  2. (1) appoint a person who is willing to be a director; and

  3. (2) determine the rotation in which any additional directors are to retire.

  4. Not less than three calendar months prior to the Annual General Meeting in each year the Institute’s Council shall send to each member entitled to vote a list of Directors who are due to retire at the end of the year and who are eligible or ineligible (as the case may be) for re-election together with a list of other members eligible to be appointed a director, if any, nominated by them for election to the Institute’s Council (Board of Directors).

  5. After the issue of the Council's list referred to in paragraph 32 and not later than three weeks after such notification, any three members who are entitled to vote at all Ordinary Meetings, Annual General Meetings and Extraordinary General Meetings of the Institute may nominate any other duly qualified person ‐ ‐

to fill any such vacancy other than that of President, President Elect, Vice President, Hon Treasurer or Hon Secretary who shall be nominated by the Council only, by delivering such nomination in writing to the Council together with the written consent of the nominee to accept office if elected.

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34.

Arrangements for setting pay and remuneration of key management personnel

Extract from Bye-Law No. 2 (Rev 16 September 2019)

  1. Finance Committee and Establishment Review Panel (ERP)

  2. 1.1 The composition of the Finance Committee shall be:

President President-Elect Immediate Past-President Honorary Secretary Honorary Treasurer Institute CEO

Head of Finance & Planning (non-voting) PA to the CEO (minute secretary – non-voting)

Representative from Institute’s Accountants (non-voting)

The members of the Finance Committee, excluding the representative from the Institute’s Accountant, also form the Establishment Review Panel (ERP) which has responsibility for reviewing and agreeing any and all material changes in:

1.5.4 Institute’s premises and/or facilities

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Note: In the event where discussions are about the CEO or are in some way materially connected to the CEO, the CEO will leave the meeting until such time as the discussions have been concluded.

The CEO conducts regular performance reviews of the Heads of Departments and senior staff that comprise the Staff Executive:

Head of Events & Awards Head of Finance & Planning Head of Membership & Registration Head of Publishing, Media & Marketing Certification Manager Technical Manager (Senior Technical Engineer)

The reviews are based on an established Performance and Talent Management protocol. The CEO makes salary recommendations to ERP based on the results of these reviews.

Business 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.

The trustees have a risk management strategy, which comprises:

Diversity and Inclusion

A Diversity and Inclusion Advisory Group provides guidance to BINDT Council and other committees on how to fulfil BINDT’s commitment under the Royal Academy of Engineering’s Engineering Diversity Concordat to which BINDT is a signatory.

BINDT has strengthened its links with various bodies, networks and initiatives including the Royal Academy of Engineering, The Engineering Council, the WISE Campaign, the Women’s Engineering Society. STEMNET and InterEngineering. Although BINDT is a relatively small Professional Engineering Institute (PEI), it is participating in relevant initiatives alongside the largest PEIs.

Through various media, BINDT continues to influence its stakeholders to adopt BINDT’s position that NDT, Condition Monitoring (CM) and Structural Health Monitoring (SHM) – or Health Monitoring per se – are three sides of the same thing, which is an element of BINDT’s diversity and inclusion practice.

In recent years, the BINDT membership proposition has been adapted so as to become more inclusive to help ensure that a diversity and inclusion mind-set will prevail in all that we do, including NDT Apprenticeships, Engineering Council Registration, the work of the Practitioner Committee and awards and recognition, to name just a few examples.

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Marketing and public relations

The marketing team continues to work to promote the Institute, and NDT, CM and SHM in general, in a number of ways. In particular, the team provides appropriate support, and aims to apply consistency of format and message, to all areas of the Institute’s business and endeavours to solicit and implement ideas and requirements from the various committees.

A member of the marketing team continues to attend the meetings of all main committees, and those of a number of sub-committees, working groups and advisory groups, to provide marketing support directly, allowing for effective planning and resourcing. Oversight of the marketing strategy and activities undertaken is the responsibility of Council.

As a direct result of the continuing restrictions in place during the COVID-19 pandemic, some planned marketing activities were temporarily interrupted, for example due to the cancellation of physical events. However, the team continued to successfully deliver its digital activities and worldwide engagement through its various channels was seen to increase.

The vacancy for a Marketing & PR Assistant was filled during 2021 and a period of training for the new member of staff was undertaken.

Some of the highlights of the year’s marketing and PR activities include:

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Education, Professional Development, Membership and Engineers/Technicians Registration

The Institute's activities in these important areas are overseen by the Membership, Qualification and Education Committee (MQ&E) and its subsidiaries: the Engineering Council Working Group (ECWG) and the Education and Professional Development Committee (E&PD) and these are responsible for all membership and Engineering Council registration matters as well as education, CPD, liaison with Engineering Council and accreditation of training.

The coronavirus pandemic and the associated lockdown and social distancing measures have again had a direct impact on the way in which committee meetings were held. All meetings, which historically have been held on a face-to-face basis, were now continued to be held remotely using online video meeting software. This was continuing to be implemented with great success – a direct result of the hard work carried out by the BINDT staff to coordinate. As such, all meetings were well attended by committee members and the meetings proved to be very efficient. It was of great importance that these meetings continued, to ensure that member applications and all current topics were discussed and to ensure that all members receive the continued support if the Institute.

Numbers of the non-fee grade of Affiliate Members continued to grow, albeit not as fast as in the year following its introduction, while full-paying voting membership grade numbers have maintained in 2021, with an expectation that number will increase again in the forthcoming years. Various strategies to convert Affiliate grade to grades with full paying membership and voting status are being discussed.

The E&PD committee has achieved a remarkable amount over the last few years, with the development of NDT Operator, NDT Engineering Technician and NDT Engineer Apprenticeships, all of which are now well established, with over 160 people enrolled, mainly on the Operator and EngTech schemes. It was agreed that Condition Monitoring will be incorporated into the NDT apprenticeships when they are reviewed; this is ongoing and will be implemented as soon as all the terms are finalised. The Level 6 NDT Engineer does currently incorporate CM modules in the degree programmes, so no change is required with this apprenticeship scheme.

BINDT conducted 22 end-point assessments in 2021: 16 NDT Engineering Technician apprentices, 5 NDT Engineer apprentices and 1 NDT Operator apprentice. All end-point assessments were carried out remotely.

BINDT assisted with the end-point assessments of apprentices on the Institute of Corrosion (ICorr) scheme. The second group of Industrial Coating Inspector Apprenticeships were completed in July 2021.

BINDT is still involved with the Nuclear Welding Inspection Technician (NWIT) apprenticeships and will be involved in the EPAs for the 2022 cohort. BINDT is also advising the University of Northampton (UoN) team on the EPA requirements for the Level 6 apprenticeship schemes that they are now running fully under the rule change. The MSc course is progressing with a new course leader at the UoN, Professor Chris Holt.

The ECWG continued its excellent work in managing the professional engineering registration processes for BINDT members. The number of trained Professional Review Interview (PRI) assessors is sufficient to allow BINDT to facilitate interviews at various locations with timely availability over the next two years, and it has been identified that there is a likelihood that that more will be needed thereafter. However, given the robust process in place to attract and train assessors and interviewers, this is not predicted to be an issue, which is a great credit to the efforts put in by ECWG, which in itself is growing and becoming more diverse. Due to the pandemic, PRIs continued to be held remotely, which led to an increase in the number of interviews conducted.

The Institute for Apprentices & Technical Education advised that it would be conducting a review of all apprenticeships and will be making some changes. Considerable work will be needed to update courses and it may take up to one year to complete the review, with some of the proposed changes assessed by some quarters as being quite detrimental to the apprenticeship programmes. Ensuring that BINDT achieves the best possible outcome will take substantial negotiations in the coming year. Additionally, the decision to move from a system where many organisations deliver external quality assessment (EQA) of end-point assessments to one where two organisations deliver EQA (Ofqual or, for integrated higher and degree apprenticeships, the Office for Students (OfS)) proved to be a challenge for BINDT and a solution remains to be found.

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The Continuing Professional Development (CPD) activities recording facility developed by MQ&E and adopted in 2018 is now embedded into the BINDT website as ‘My Continuing Professional Development’, allowing BINDT members to upload details of CPD activities along with supporting documents. Several members have volunteered to join the CPD monitoring scheme and submissions are periodically reviewed by members of the MQ&E committee. With CPD now mandatory to meet Engineering Council requirements, the system provides an excellent facility for personnel to record their CPD to maintain registration.

Certification (NDT and CM)

The Certification Management Committee (CMC) comprises individual volunteers from representative industry sectors and Institute staff members. Its role is to assist the Institute’s Certification Services Department (CSD) to ensure the impartiality of its certification activities and to counteract any tendency to allow commercial or other considerations to prevent the consistent provision of certification activities. The CMC conducts its affairs in an open and transparent culture considering certificate holders’ perspectives and aims to ensure available certification meets the specific requirements relevant to end-user requirements.

BINDT and the Certification Task Group (CTG) provided the community of AQBs/ATOs with health and safety guidance once the global pandemic lockdowns started to relax in Q3 2020. A video presentation was produced on the measures being introduced to mitigate the spread of the coronavirus in the training and examination environment and this was distributed and made available for download from the PCN news website. In Q3 BINDT saw a gradual increase in the number of examinations being held which gave PCN holders the opportunity to revalidate their certification.

BINDT continues to provide the option to extend certification only where the following individual circumstances apply:

The following summary gives an overview of the achievements made during 2021 set against the work involved recovering from the COVID-19 pandemic:

A slight increase in PCN NDT certificate holders was recorded at the start of 2021: 21,051 (20,983 in 2020) holding a slightly higher number of qualifications: 46,867 (46,726 in 20209). Accompanying NDT certification, the Condition Monitoring sector has remained stable: 1880 PCN certificate holders (1877 in 2020) possessing 2176 CM qualifications (2164 in 2020).

Complementing personal certification, 43 NDT ATOs (43 in 2020) and 18 CM ATOs (21 in 2020) organisations held Approved Training Organisation approval along with 21 AQB organisations (22 in 2020) holding Authorised Qualifying Body approval. In addition, eight organisations (seven in 2020) held a BINDT certified Quality Management System (QMS), there were 14 BINDT approved Inside Agencies or Outside Agencies (15 in 2020) and four BINDT-approved companies under RIS2701 (6 in 2020) for the rail industry.

With reference to PCN Aerospace, the UK regulator the CAA (Civil Aviation Authority) has accepted the recently reviewed PCN Aero scheme within CAP747, GR23 for use on all G registered aircraft maintained within the UK. EASA has not indicated it is unwilling to accept PCN Aerospace as an alternative, acceptable means of compliance and is insistent that certification that meets the requirements of EN 4179 would be the only accepted means. The CAA has been approached to petition EASA over this decision, however, and as yet, negotiations have not taken place due to other ongoing Brexit discussions.

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Since Brexit, EASA and the EU Forum have confirmed that the UK NANDTB continue to be a member of the EU forum, however, the German CAA have taken the decision not to recognise approvals issued by the UK NANDTB. This has been raised with the EU forum and EASA who confirm that although the UK approvals are recognised, Germany are using their sovereign right to reject UK approvals, a decision over which EASA has no control.

In addition, and with regard to ongoing Industry Sector Method Working Group (ISWG) development, great progress has been made for the inclusion of testing wrought manufactured plate under the umbrella of ISO 9712 in the form of ‘Limited Certification’ and out from under the shadow of ISO 20807, which industry employers were much less familiar with.

With regard to the modularisation of radiography training and examinations, the Certification Services Department (CSD) now believes that, following development work, the framework structure is robust and is transferable to other NDT methods. The next priority project is Product Technology; BINDT will be implementing a pre-requisite online course for initial PCN candidates and those who require recertification to ensure they have a sound knowledge and awareness of product technology. ISO 9712:2021 has seen an increase in training hours/days required, therefore this course will complement the main method course to allow ATOs to keep the classroom training hours/days to a minimum.

PCN on-line examinations continue to be implemented in an ongoing phased approach. The next phase is to roll this out to at least one additional UK AQB for NDT and one CM ATO. Functionality of the database has been improved to allow CM exams and NDT AECs (overseas) to use the online system. In association with the PCN on-line examinations, development is progressing in streamlining the PCN administration processes through better IT systems, including the implementation of e-certificates, which was successfully introduced in June 2021.

The deadline for compliance to UK PESR (Pressure Equipment (Safety) Regulations) is fast approaching. EU individuals had until 31 December 2021, to gain compliance with the UK PESR after which their EU RTPO PED compliant certification would not be accepted for the UK market. However, on 24 August 2021, the UK Government announced that it would be extending this deadline until 01 January 2023, meaning that EU RTPO PED-compliant certification would be accepted in the UK until this point. BINDT is currently working with EU certification bodies on a conformity project to offer a solution.

Along with managing certification issues, the day-to-day activities of developing new certification documentation, internal and external auditing and administration tasks continued against the background of working from home, in order to ensure that NDT certification remains in place and valid. The continuing success of the scheme is a remarkable achievement and true testament to the dedication and professionalism of the CSD team which, again, is gratefully acknowledged by the CMC members.

CSD objectives for 2022 are to work towards transitioning and improving the PCN scheme against ISO 9712:2021 with improved training and qualification processes whilst at the same time continue in futureproofing certification into the 2020s. The CMC membership will support the CSD in achieving these goals for the benefit of all.

Technical & Industrial

The Technical and Industrial Department offers technical support and industrial experience to the Certification Services Department of the Institute in particular and also to the Institute as a whole. It also takes responsibility for the development of online examinations and several other projects related to the development of new training and certification schemes.

Some examples of these projects, with work in progress during 2021, are as follows: Plant Engineer, Radiography, Radiation Safety, Eddy Current, Ultrasonics, Guided waves, Composites, Aerospace – a new PCN Aerospace document is scheduled to be launched early in 2022.

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John Moody, Senior Technical Engineer, continues to coordinate the development of BINDT's apprenticeship schemes in conjunction with the Education & Professional Development Committee. There are significant ongoing issues with the external QA provision of the schemes as BINDT is not approved under the OFQUAL option and is one of the schemes currently directly managed by the Institute for Apprenticeships. The review of the existing standards has commenced but the approval to conduct EPAs has taken a higher priority.

The development of the MSc programme in conjunction with the University of Northampton has been put on hold due to low numbers and the different approach adopted by the new head of the programme. There is a significant project relating to the introduction of necessary revisions to the PCN scheme based around the revision of the core standard ISO 9712 and the changes to training duration .

NDT Events

2021 was again a challenging year for the Conferences and Events team due to the Covid 19 pandemic, with all events moved to an on-line virtual webinar platform.

In January the Events Department supported a one-day workshop on ‘Reliability of NDT’ and in the evening of the same day a Burns supper in conjunction with the Scottish Branch. Both events were held virtually, as were the annual aerospace event and the conference on Condition Monitoring, and all events were wellattended, a pleasing result that also applied to Branch meetings held over the period.

The annual NDT conference was once again held as a webinar event and, like the year before was a huge success, with all presenters giving live presentations, and a showcase of papers from RCNDE proved to be extremely popular, including a plenary. The conference had a full five-day programme of papers and excellent attendance each day. The NDT exhibitors had their own sessions comprising 10-minute live demonstrations or presentations, with a dozen companies taking part.

Delivering the 2021 conference and events programme was less of a challenge than in 2020 but still a great achievement for the team; the feedback was excellent and encouraged more events to be given on-line in such difficult times.

BINDT hopes to conduct in-person events in 2022. Useful lessons were learnt from the pandemic and certain features such as virtual elements will be considered for future events.

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A full listing of the events is in the table below:

Event Date Venue
Reliability of NDT webinar and
24th January, 2021		 Virtual Webinar
virtual burns supper evening
Aerospace Workshop 20thApril, 2021 Virtual Webinar
Aerospace Event 21st– 22ndApril, 2021 Virtual Webinar
Aerospace Event Exhibition 21stApril, 2021 Virtual Webinar
CM Conference 14th- 18thJune 2021 Virtual Webinar
CM Exhibition 14th- 16thJune 2021 Virtual Webinar
NDT Conference 6th- 10thSeptember 2021
Virtual Webinar
NDT 2021 Exhibition 6th- 8thSeptember 2021 Virtual Webinar
Marine Composites Inspection
Originally planned for
Royal National		 Lifeboat Institution
Workshop: ‘Sea’ what you are
October
2021;
(RNLI), Poole
missing… rescheduled to 2022
Workshop on structural integrity,
Originally planned for
MTC, Coventry
NDT and CM requirements for
October
2021;
Industry 4.0 rescheduled to 2022
BINDT/RCNDE/CIRIA Workshop
Originally planned for
Institution
of		 Civil Engineers
on NDT Requirements for Road
November
2021;
London
and Rail Civil Structures rescheduled to 2022

NDT Publications

The Institute's NDT publications continued to be received well in 2021, both those delivered electronically and in hard-copy format.

Insight continues to be well supported by researchers and academics. Overall there were slightly fewer technical papers being submitted to Insight in 2021 along with a small decline in the number submissions from the UK, with papers from China continuing to be the largest source of material submitted. The standard of reviewing also remained rigorous, with accepted papers continuing to undergo a thorough assessment and fewer papers being rejected.

The number of online downloads increased, while member and pay-per-view access to articles and citations all remained steady. However, subscription income showed a small decline in 2021.

Advertising income for Insight increased in 2021, with a number of new advertisers agreeing contracts throughout the year.

NDT News saw a small decline in advertising support in 2021, but maintained its high editorial standards and the publication continues to be the main vehicle for communication with the practitioners of NDT and related disciplines and the excellent contributions from its regular columnists is appreciated, including the reports from BINDT’s Branches.

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The BINDT Yearbook was further developed with expanded sections and additional content. This continues to be extremely well received and also had good support from both existing and new advertisers in 2021.

The NDT 2021 Webinar Week, which replaced the Annual Conference in 2021, made full use of the BINDT Events app very successfully.

Despite the challenges brought about by the pandemic and the need for remote working, each publication continued to be produced on time and to the highest production standards.

The Publishing, Media and Marketing Department continued to produce numerous other documents, leaflets, brochures and publications in support of all of BINDT’s propositions and, notably, in support of the promotion of membership, professional engineering registration and NDT apprenticeships.

Condition Monitoring (CM) Events and Publications

The 2021 CM conference was held as a virtual event and achieved the aim of reaching the international audience who could not travel due to pandemic restrictions. Attendee feedback was good. This was the first year we have mixed practitioner and academic papers in all sessions and led to a good level of engagement. This format will be repeated for the live event CM2022 in the London Hotel in June. However, financially it was under break-even due to the higher than anticipated costs associated with setting up the on-line technologies and producing the proceedings.

No shows by speakers continues to be an issue and plans are in review for 2022 to ensure registration fees are received before the papers go into the proceedings.

The 2022 exhibition space is being taken up and it is encouraging that the exhibitors are supportive and the face-to-face conference is welcomed by all. We do not yet know the impact of the invasion of Ukraine on the attendance by our Russian colleagues, who regularly chair sessions and provide several speakers.

Conference Chairman Len Gelman is working with the team at MFPT in the USA, to jointly promote each others’ conferences with closer cooperation. Sadly, with international travel still being difficult, we cannot anticipate attendance beyond the regular exhibitors.

The CMTC committee recognises the dedication and effort put into the conference by the conference organising and marketing teams, particularly in managing the arrangements with the hotel venue in moving our event from 2020 to 2022 without loss to BINDT.

Throughout the pandemic, CMTC have maintained a full schedule of working group and special interest group meetings. Moving to Zoom has encouraged more frequent and shorter calls and has been particularly effective in generating the syllabus for the CM General PCN.

The vibration monitoring, lubrication analysis, acoustic emission, ultrasonic and thermography working groups have been working on the question bank to ensure ISO alignment of the BINDT PCN courses and with the move to on-line examinations. The move to online examinations is welcomed by the working groups and is seen as a very positive move; most would also like on-line training as an option, to enable PCN to compete with the other popular training and qualification schemes, particularly in IRT.

2021 saw the first year of four planned meetings, with both general and special interest groups coming under the joint committee of NDTTC and CMTC. Having a defined focus in 2021 has had some positive results, and the Terahertz group has been particularly welcomed within the CM community. Whilst others like SHM have struggled to get traction, but there is a new initiative for review in the latest five-year plan.

With respect to CM Publications, the Condition Monitor international newsletter has been on-line only from 2019 and still maintains high-quality papers and articles. It is a credit to BINDT and is available and of interest to all members of both CM and NDT. New and past conference papers are also published in Condition Monitor , raising it from the newsletter style inherited many years ago to a serious publication. The ease of access and overlapping interest of the joint committee special interest groups should increase the uptake.

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The INSIGHT journal continues to run CM technical papers and saw a great improvement throughout 2020 as papers from the past CM conferences are used in alternate months. The CMTC committee thank and acknowledge the support from BINDT publications, the CMTC and working group membership, in providing and refereeing these papers.

The new textbook: ‘An introduction to Condition Monitoring and Diagnostic Technology’ has been published and is available at a very reasonable £60 for members. This valuable addition to the CM series of publications should become an essential textbook. An effort was started in 2021 to reach out to the relevant universities to recommend this as students start their careers and look to take their PCN level 1. As the universities revert to live students, we anticipate increased sales in 2022.

Due to government changes in 2021, the CM apprenticeship schemes will follow on from the existing CM schemes, rather than start new schemes; this is a faster track than CM attempting to create their own. At present, the wording for the Operator and Technician standards have been modified to include both CM and NDT. The Engineer standard has not been changed as this was originally written to include the NDT degree programme at Northampton University, which already includes a substantial amount of CM. Further development of the revised scheme is on-going.

Awards and Recognition

It is very important to BINDT to recognise the contribution of those working in NDT, condition monitoring and its associated science and technologies. Under the guidance of the Croxson committee, a comprehensive reward and recognition structure has been put in place over the years, resulting the awards listed in the table below. The updates for 2021 are as follows.

Due to continuing Covid-19 restrictions it was not possible to recognise our award winners as usual at the CM and NDT conferences, so BINDT held its awards ceremony online for the second year running; this was as part of the webinar week in September 2021. Whilst not the same, it was very important to recognise the achievement of the award winners, those who have been a member for over 50 years, Honorary Fellows and Members and out-turned NDT Apprentices. The ceremony was well attended and received.

An award in memory and recognition of the late Gail Long, one of first women to be working in NDT, was launched and awarded to two winners in 2021. It recognises the contribution of women at an early stage of their career in NDT/CM and aims to raise the profile of women in NDT/CM and in engineering.

Peter Wallace was awarded the Lifetime Achievement Award for his continued contribution for over 50 years to BINDT and our industry and as Chair of the Benevolent Fund.

The Croxson Committee completed a review of the criteria of all awards to ensure they are as diverse and inclusive as possible to encourage nominations from across NDT, CM and the wider community. The revised awards will be launched in 2022.

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

The current Institute awards are as below:

Award Purpose
Lifetime Achievement
Award		 To recognise the valuable and extensive contribution to the British
Institute of NDT and the wider NDT/CM community by an individual who
has spent most of his/her career in NDT/CM and who has been an
active member of the Institute for an extensive period of time.
Personal Contribution
Award		 To recognise a valuable and extensive personal contribution to the
British Institute of NDT and the wider NDT/CM community by an
individual who has been an active member of the Institute for an
extensive period of time, in which they have contributed and influenced
the wellbeing of the Institute.
The Roy Sharpe Prize For a significant contribution through research and development in any
branch of NDT to the benefit of industry or society.
The Anne Birt Award For a significant contribution to technology innovation, technology
transfer or technology strategy in the field of NDT.
The Nemet Award For an outstanding contribution to the practice of NDT (by an individual).
The Hugh MacColl
Award		 For a distinguished contribution by an individual to the teaching or
training of NDT or CM. Nomination required. This should show the
contribution to the teaching or training of NDT or CM.
Aerospace Award To recognise significant contributions to the NDT/CM community within
the aerospace sector.
The John Grimwade
Medal		 For the best paper published in BINDT’s NDT Journal ‘_Insight’_in the
preceding year.
The Ron Halmshaw
Award		 For the best paper on radiography published in_Insight_in the preceding
year.
The BINDT Annual
NDT Conference Paper
Award		 An informal award presented at the end of the NDT Annual Conference
for the best paper published in the conference Proceedings.
The William Gardner
Award		 For the best paper in the Proceedings of the NDT Annual Conference
by a student or person in the early stages (first five years) of their
career.
Practitioner Award To recognise outstanding achievement in the learning, sharing or
execution of NDT or CM practice by a BINDT member.
The Tony Lager Award For meritorious service to an Institute Branch by an individual.
Branch Service Award For an outstanding contribution to Branches.
The T H Cole Award For the Institute Branch with the best percentage increase in
membership during the preceding year.

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

The Jim Cottier Travel
Scholarship		 To aid the professional development of a young BINDT member by
attending an overseas conference.
Annual NDT
Conference Travel and
Attendance Award /
Annual CM
Conference Travel and
Attendance Award
(One per conference)		 To encourage attendance at the BINDT Annual Conferences by
contributors from foreign nations.
The COMADIT Prize For a significant contribution through research and development in any
branch of condition monitoring to the benefit of industry or society.
CM Innovation Award For a significant contribution to technology innovation, technology
transfer or technology strategy in the field of CM.
The Len Gelman
Award		 For the best paper in the Proceedings of the CM Annual Conference by
a student or person in the early stages (first five years) of their career.
The Roger Lyon
Apprentice of the Year
Award		 In recognition of the outstanding achievement of a NDT Apprentice who
has successfully completed their end-point assessment through BINDT.
The Gail Long Early
Career Women
Engineer of the Year		 To recognise the contribution to NDT/CM or the wider engineering
community of women in their early career.

IT developments

BINDT's IT strategy is based on the fundamental premise of alignment of IT capability with business requirements, thus ensuring that the investment in IT creates maximum value.

The concept revolves around a series of ‘service centres’, each having its own administrators inputting and updating data. Data is transferred to a central 'Hub' where it is used to provide information on members, customers and stakeholders. The Hub exchanges information with the service centres as appropriate. Some of the service centres are already established - the PCN and membership databases feature user-friendly interfaces for administrators to manage the appropriate data in a robust and upgradeable architecture that can interface with the Hub.

The IT plan continues to be developed and enhanced as the development progresses. The overall objective is to enhance productivity and provide tools that will allow staff to work more efficiently while also providing the required data for Customer Relationship Management (CRM) and useful Management Information (MI).

During 2021, a significant amount of progress was made in developing the plan to develop the processes involving the transactions that take place between the certification services and accounts departments, with the aim of streamlining these processes, reducing paper and increasing efficiencies. This work will continue in 2022.

2021 also saw the acquisition and implementation of a Digital Rights Management (DRM) system that facilitates the secure delivery of e-certificates to PCN certificate holders. The software is also used for distribution of other publications, including the ‘HOIS’ documents available from the BINDT bookstore.

Website

In order to maintain its position as a high-performing organisation, BINDT recognises the need to continually improve its website and digital platforms.

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

Due to budgetary constraints, development of the BINDT website in 2021 was restricted to essential maintenance and enhancements. However, some further development of the My Career and CPD sections of the site were implemented in the light of the growing importance of Continuing Professional Development (CPD) in the careers of members and stakeholders.

By the end of 2021, users had uploaded nearly 4000 entries to the system and the growing popularity of the tool demonstrates its appeal to members.

The Institute continues to devise plans to provide online professional development tools for managing a user's Initial Professional Development (IPD), Continuing Professional Development (CPD) and professional registration application; and to provide guidance and support to enable members to undertake planned and structured IPD and CPD. For example, the ability for PCN certificate holders to record CPD points for certification renewal, linked to PCN’s CP16 or 17, is an on-going strategic aim.

Establishment

The ‘establishment’ is the term used to describe three important aspects of the Institute: the premises from which it operates, the facilities it uses in order to carry out its business and, perhaps most importantly, the people it employs.

All matters pertaining to the establishment, including material changes to the staff costs (headcount, pay increases, bonus payments, etc.) are governed by a committee called the Establishment Review Panel, which comprises the Institute’s Senior Officers (President, President-Elect, Immediate Past President, Honorary Secretary and Honorary Treasurer).

During 2021 the ground-floor tenants at Midsummer House (MSH) renewed their tenancy for a further four years and BMW began the work on constructing a vehicle ramp to the rear of the warehouse, a project agreed as part of the original purchase agreement of MSH.

Financial

For another year, the continuing background of uncertainty caused by Brexit, and the Covid-19 pandemic meant that the budget for 2021 was again set to be conservative.

As the year began, recruitment for replacement staff continued to be on hold, with tasks being shared out to existing staff where they could be. It is worth pointing out that this was helped by the willingness and flexibility of the staff. Consequently, the reduced income was more than offset by the careful cost control and the yearend reserves were higher than budgeted and in excess of the upper limit for liquid reserves.

A budget has been set for 2022 which is again cautious in terms of revenue, given the uncertain industry context. Included in the budget is continued investment in IT infrastructure as this is an important element of 2022 business activity and will ensure an efficient operation of the executive for the future.

The Business Model Advisory group – BMAG, continued to review quarterly outcomes and map these onto a developed business model/forecasting tool. This enabled the group to review best, worst and likely case scenarios, which are shared with council at strategy related meetings. This financial background is then reflected on the actions we are able to take as a mission-focused social enterprise and not a commercial undertaking.

A robust contingency plan has been agreed to deal with any future sharp decline in business volume (i.e., revenue) or any unexpected but significant and necessary expenditure.

Overall, despite the significant challenges in recent years, BINDT formally continues very much to be deemed to be a going concern and the long-term financial and the strategic health of the Institute is very good.

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

Reserves Policy

The reserves policy, and the reserves themselves, exist to support BINDT’s mission as defined at the beginning of this report. Therefore, it is the policy of BINDT not to accumulate large amounts of reserves that are not supporting that mission.

At the time of writing, the BINDT reserves policy is defined by ‘Action Trigger Levels’ and ‘Action Awareness Bands’ which relate specifically to the level of liquid reserves, which is tracked and forecast by BINDT’s Finance Committee on a quarterly basis.

The bands/trigger levels are as follows:

The rationale for the upper and lower trigger levels is as follows:

The lower trigger level is set at £700k since, at the time of writing, that sum corresponds approximately to the fixed/residual cost of running the Institute for 6 months (including paying staff salaries) if there was no income whatsoever.

The upper trigger level is set at £1m since, at the time of writing, the historical fluctuation in the current account balance demonstrates that the absolute worst case is £300k. Therefore, having an Action Trigger Level bandwidth of £300k should avoid the situation where liquid reserves peak above the upper and dip below the lower trigger levels due to normal fluctuations.

The Action Awareness Bands simply split this bandwidth in half, which is logical.

It should be borne in mind that BINDT has significant fixed assets in addition to its liquid reserves.

Investment objectives and performance

Objectives

The wealth planning objectives for BINDT are:

Risk Profile

BINDT’s risk profiling assessment identifies BINDT’s natural tolerance to risk as Balanced. The assessment is not intended to lead to a definitive outcome, but rather to provide a useful starting point on which further discussions can be based.

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

When recommending a suitable risk category, in addition to natural preference for risk, we have also considered the following:

Capacity for Loss

The largest likely decline identified in the expected returns table is within acceptable parameters in terms of capacity for loss for the following reasons:

Tolerance for Loss

Having assessed the expected returns and losses, it has been agreed that, as a Balanced investor, BINDT has a tolerance for loss of up to 12.00% over an annual period.

Risk

It has been identified that, whilst returns can never be guaranteed, the expected returns of the recommended Balanced strategy should meet the set objectives. As such, a Balanced risk profile continues to remain suitable and in best interests of the Charity in order to help meet objectives.

Knowledge and Experience

BINDT has a strong knowledge and understanding of the principles of investing. It also has strong experience of investments and the associated fluctuations in value.

This can be evidenced with reference to BINDT’s 25-year-plus investment history, investing in managed funds and other collective investments.

Performance indicates Balanced strategy meets the set objectives.

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

NDT Leadership Forum

At the Institute's Strategy Retreat in 2018 and 2019, the need was identified for BINDT to become more involved strategically in the industry, including the redrafting of the 'Landscape Report' to the KTN and InnovateUK, capturing requirements from various industry sectors.

The Board of the Research Centre for NDE (RCNDE) also ran a workshop where this need for better strategic leadership of NDT became clear, covering more sectors than RCNDE can cover and working on transitioning NDT technologies and influencing design engineers about design for inspection and the benefits that improved NDT can bring.

Professor Robert Smith, Director of the UK Research Centre for NDE (RCNDE) and Past President of BINDT, initiated the development and establishment of an effective and long-term leadership forum, outside of specific institutions, that can:

BINDT has set up an Advisory Group on Strategic NDT Leadership to support the establishment of the Forum, including identifying a Founding Chair and supporting the Chair during the initial work to establish the Forum. In the initial phase, the NDT Leadership Forum will be accountable to BINDT’s Advisory Group on Strategic NDT Leadership but this will be reviewed after an appropriate period. In January 2021 it was announced that the BINDT Advisory Group on Strategic NDT Leadership had appointed Mark Dowell as founding Chair of the NDT Leadership Forum.

Summary of the year just ended (2021)

The year began with the formal end of the Brexit transition period. Around a week earlier, a 'bare-bones' trade deal had been announced but, as a result of the decision by the EU to reject the UK's request for broad recognition of conformity assessments that would allow UK-based notified bodies to certify products to EU standards, new and renewal PCN certificates issued after 31 December 2020 could no longer be used by personnel to carry out non-destructive tests on permanent joints for pressure equipment in categories III and IV in accordance with section 3.1.3 of schedule 2 under the European Pressure Equipment Directive (PED). Fortunately, the arrangements the Institute put in place with WQ-iC Ltd, a Recognised Third-Party Organisation and Notified Body based in Dublin, Ireland, addressed the issue successfully and ensure that PCN certificate holders may continue to serve the EU market.

Financially, the cost saving measures put in place more than addressed the downturn in income and the Institute had, at the end of 2021, a better financial position than anticipated, although some of the desired activities and development projects had, once again, to be postponed.

During the pandemic, BINDT had, like many other organisations, adopted and implemented new services or ways of working. Measures included only opening the offices on certain days, health and safety measures to help to protect employees and customers and a new telephone system to enhance customer service while facilitating a flexible approach to working. The provision of electronic certificates for PCN certificate holders was also introduced, with the obvious savings in time, costs and paper.

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

At the beginning of the year it had been hoped that things would soon ‘return to normal’, but of course this did not happen, and was only gradually starting to be visible by the end of the year. Therefore, most of the Institute’s planned meetings and events were either postponed or carried out online, with general success. As had been experienced in 2020, the transfer of many topical meetings online by both BINDT and other institutes greatly widened involvement, and this is expected to continue, although obviously with online events the social and networking aspects are greatly diminished.

The traditional west of Scotland January meeting ‘reliability of NDT’ was transferred online and was followed by an on-line ‘Burns night celebration’. Likewise, the aerospace event and the annual condition monitoring (CM) and non-destructive testing (NDT) conferences were converted to online, while other meetings and events were postponed for another year.

Some of the highlights of the year’s marketing and PR activities included:

A series of direct communications and press releases were circulated in relation to the EU Pressure Equipment Directive and its impact on PCN certification.

Promotion of Institute events continued, as did promotion of the NDT apprenticeship schemes, and several editorial articles relating to NDT/CM and BINDT were written in-house and circulated.

Promotion of BINDT books continued and advertising materials and press releases were rolled out for the new title: ‘An Introduction to Condition Monitoring and Diagnostic Technologies’, which was published and launched in January 2021.

The Institute’s internet and social media presence was maintained and promoted and engagement increased through all channels. The Institute now has over 28,000 followers on LinkedIn, over 5300 on Facebook and almost 3000 on Twitter. Over the year, visitor activity on the BINDT website was seen to increase, with over 450,000 visit sessions from over 248,000 users and 1,340,000 page views.

Continued advertising of the four Institute apps resulted in an increase in downloads: the NDT Reference app has now been downloaded by almost 45,000 users, NDT News by over 14,750 users, NDT Events by 2850 users and PCN Verifier by 7550 users, on both Apple and Android devices.

The Institute’s social media activity included participation in various national campaigns, including National Apprenticeships Week, World Engineering Day 2021, International Women’s Day, the Big Engineering Conversation, Tomorrow’s Engineers Week, INWED 2021 and IET Engineering Kids’ Futures.

Outlook for the year just started

While infection rates have remained high, the determination to ‘get on with it’ has generally meant that the move to ‘in person’ or hybrid events has continued.

The Glasgow event was again held online and was well-supported and successful workshop on reliability of NDT was held alongside.

The Institute has already held several in-person events, including the Bristol Aerospace event, which was a great success, as was the Analysis of Art workshop held in Florence, Italy. At the time of writing an Industry 4.0 workshop is being held at the MTC in Coventry and the CM Conference is about to take place in London where it is hoped that there will be significant overseas attendance, despite some travel disruption and Covid restrictions still in place in some regions.

Other events, some postponed from 2021, are coming thick and fast – the NDT and Materials Testing Exhibition is due to be an in-person event in Telford in September, and a ‘Civil structures’ workshop is scheduled for June.

Due to the pandemic, many ‘optional’ projects have been postponed. Meetings are being scheduled to agree the priorities for the changed world.

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

As we enter 2022, BINDT has a sound and solid base and an excellent financial reserves policy that mean it is in a good position to face the challenges that lie ahead.

Last but not least, two important human factors:

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number

00969051 (England and Wales)

Registered Charity number

260666

Registered office

Midsummer House Riverside Way Bedford Road Northampton Northamptonshire NN1 5NX

Trustees

The Trustees at the date of approval of the Report of the Trustees were as follows:-

I Baillie (President), S Baldwin, M Beecroft, J Buckley (Honorary Secretary), C Bull, M Clapham, I Cooper (President-Elect), S Cunningham, B Cutler, R Day, M Dowell (Honorary Treasurer), G Elliott (Vice President), J Farley, C Forrester, S Greenfield, J Hansen (Past President), A Hope, K Kirk (Vice President), J Knowles, M Lugg, S Mills (Vice President), J Needham, A Schofield, R Smith, A Ward, R Watson, D Whittle, D Wylie (Vice President).

The following Trustees were elected during the year:-

M Beecroft, M Lugg, A Schofield, R Smith.

There were no Trustee resignations during the year.

Auditors

DNG Dove Naish LLP, Statutory Auditor Eagle House 28 Billing Road Northampton Northamptonshire NN1 5AJ

Bankers

Lloyds Bank 2 George Row Northampton Northamptonshire NN1 1DJ

Page 25

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

REFERENCE AND ADMINISTRATIVE DETAILS Solicitors

Howes Percival Nene House 4 Rushmills Northampton NN4 7YB

Investment Advisers

Succession Advisory Services Mitchell Court Castle Mound Way Rugby CV23 0UY

Chief Executive Officer

D Gilbert

STATEMENT OF TRUSTEES' RESPONSIBILITIES

The trustees (who are also the directors of The British Institute of Non-Destructive Testing Limited 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 United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

Company law requires the trustees to prepare financial statements for each financial year which 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 those financial statements, the trustees are required to

The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to 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.

In so far as the trustees are aware:

AUDITORS

The auditors, DNG Dove Naish LLP, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2021

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

Approved by order of the board of trustees on .......24 June 2022....... and signed on its behalf by:

................................................................. J Buckley - Trustee

Page 27

REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

Opinion

We have audited the financial statements of The British Institute of Non-Destructive Testing Limited (the 'charitable company') for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and the provisions available for small entities, in the circumstances set out in note 20 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Report of the Independent 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.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

Our responsibilities for the audit of the financial statements

We have been appointed as auditors under Section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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 Independent 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:

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant Taxation legislation.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing meeting minutes, regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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 Independent Auditors.

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REPORT OF THE INDEPENDENT AUDITORS TO THE TRUSTEES OF THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

Use of our report

This report is made solely to the charitable company's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the charitable company's trustees those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's trustees as a body, for our audit work, for this report, or for the opinions we have formed.

for and on behalf of DNG Dove Naish LLP, Statutory Auditor Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 Eagle House 28 Billing Road Northampton Northamptonshire NN1 5AJ Date: 27 June 2022

Page 31

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

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

Notes
INCOME AND ENDOWMENTS FROM
Charitable activities
3
Membership and registration
Certification
Publishing and marketing
Conferences and events
Investment income
2
Total
EXPENDITURE ON
Raising funds
4
Charitable activities
5
Membership and registration
Certification
Publishing and marketing
Conferences and events
European & international affairs
Total
Net gains on investments
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted
funds
£
290,611
2,073,375
108,817
25,555
56,475
2,554,833
7,805
206,605
1,735,015
500,582
98,432
898
2,549,337
65,712
71,208
3,065,925
3,137,133		 Restricted
funds
£
-
-
-
-
-
-
-
900
-
-
-
-
900
-
(900)
11,893
10,993		 2021
Total
funds
£
290,611
2,073,375
108,817
25,555
56,475
2,554,833
7,805
207,505
1,735,015
500,582
98,432
898
2,550,237
65,712
70,308
3,077,818
3,148,126		 2020
Total
funds
£
245,296
1,784,467
94,244
11,907
54,490
2,190,404
6,824
212,239
1,486,280
499,920
90,956
9,619
2,305,838
29,422
(86,012)
3,163,830
3,077,818

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The notes form part of these financial statements

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2021

Notes
FIXED ASSETS
Tangible assets
11
Investments
12
CURRENT ASSETS
Stocks
13
Debtors
14
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT
LIABILITIES
NET ASSETS
FUNDS
17
Unrestricted funds
Restricted funds
TOTAL FUNDS		 Unrestricted
funds
£
1,690,866
604,861
2,295,727
55,309
523,013
711,226
1,289,548
(448,142)
841,406
3,137,133
3,137,133		 Restricted
funds
£
-
-
-
-
-
10,993
10,993
-
10,993
10,993
10,993		 2021
Total
funds
£
1,690,866
604,861
2,295,727
55,309
523,013
722,219
1,300,541
(448,142)
852,399
3,148,126
3,148,126
3,137,133
10,993
3,148,126		 2020
Total
funds
£
1,769,332
546,952
2,316,284
49,794
391,580
659,175
1,100,549
(339,015)
761,534
3,077,818
3,077,818
3,065,925
11,893
3,077,818

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.

The members have not deposited notice, pursuant to Section 476 of the Companies Act 2006 requiring an audit of these financial statements.

The trustees acknowledge their responsibilities for

These financial statements have been audited under the requirements of Section 145 of the Charities Act 2011.

The notes form part of these financial statements

Page 33

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

STATEMENT OF FINANCIAL POSITION - continued 31 DECEMBER 2021

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

The financial statements were approved by the Board of Trustees and authorised for issue on ................24 June 2022................and were signed on its behalf by:

----- Start of picture text -----
.............................................
I Baillie - Trustee
.............................................
M Dowell - Trustee
----- End of picture text -----

The notes form part of these financial statements

Page 34

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Notes
Cash flows from operating activities
Cash generated from operations
1
Net cash provided by operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Sale of fixed asset investments
Interest received
Net cash used in investing activities
Change in cash and cash equivalents
in the reporting period
Cash and cash equivalents at the
beginning of the reporting period
Cash and cash equivalents at the end
of the reporting period		 2021
£
72,906
72,906
(17,665)
7,803
-
(9,862)
63,044
659,175
722,219		 2020
£
74,006
74,006
(34,108)
956
8
(33,144)
40,862
618,313
659,175

Page 35

The notes form part of these financial statements

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

1. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the reporting period (as per the
Statement of Financial Activities)
Adjustments for:
Depreciation charges
Gain on investments
Interest received
(Increase)/decrease in stocks
(Increase)/decrease in debtors
Increase/(decrease) in creditors
Net cash provided by operations
2.
ANALYSIS OF CHANGES IN NET FUNDS		 2021
£
70,308
96,131
(65,712)
-
(5,515)
(131,433)
109,127
72,906		 2020
£
(86,012)
107,289
(29,422)
(8)
50
90,963
(8,854)
74,006
At 1/1/21 Cash flow At 31/12/21
£ £ £
Net cash
Cash at bank and in hand 659,175 63,044 722,219
659,175 63,044 722,219
Total 659,175 63,044 722,219

Page 36

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

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

1. ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared 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 trustees have considered a period of 12 months from the date of approval of these financial statements and have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

The presentation currency of the financial statements is the Pound Sterling (£).

Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the individual accounting policies below.

Income

All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably.

Expenditure

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Allocation and apportionment of costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration on each activity is apportioned on the basis of the proportion of income generated by each activity.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property -
10% on cost and 2% on cost
Presidents chains of office - not provided
Equipment - 33% on cost
Fixtures and fittings - 20% on cost

Fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

Page 37

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

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

1. ACCOUNTING POLICIES - continued

Tangible fixed assets

Depreciation methods, useful lives and residual values are reviewed at each balance sheet date. The selection of these residual values and estimated lives requires the exercise of judgement. The directors are required to assess whether there is an indication of impairment to the carrying value of assets. In making that assessment, judgements are made in estimating value in use. The directors consider that the individual carrying values of assets are supportable by their value in use.

Stocks

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

Taxation

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

Fund accounting

Funds held by the charity are either :-

Unrestricted funds - these are funds which can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds - these are funds that 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs

The charity makes contributions for eligible employees under a Group Personal Pension plan. Contributions payable are charged to the Statement of Financial Activities in the period to which they relate.

Financial instruments

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income under administrative expenses.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Page 38

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

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

1. ACCOUNTING POLICIES - continued

Financial instruments

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Investments

UK quoted investments are included within the accounts at market value. Unquoted investments are included at cost.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Government Grants

Government grant income is recognised as it is receivable, to the extent that the grant has been expended by the end of the financial year. Unspent grants are shown on the Balance Sheet as liabilities.

2. INVESTMENT INCOME

3.

Rental income
Interest receivable
INCOME FROM CHARITABLE ACTIVITIES
Activity
Subscriptions
Membership and registration
IAQP
Membership and registration
End-Point Assessment
Membership and registration
Other income
Membership and registration
Other income
Certification
Certification activities
Certification
Government grants
Certification
Journal advertising income Publishing and marketing
Publications advertising
income
Publishing and marketing
Sale of books and insignia Publishing and marketing
Journal subscriptions
Publishing and marketing
Condition monitor
Publishing and marketing
Conference and seminar
receipts
Conferences and events
Branch income
Conferences and events		 2021
£
56,475
-
56,475
2021
£
218,832
3,795
63,900
4,084
1,986
2,071,389
-
39,437
30,748
27,060
11,280
292
23,415
2,140
2,498,358		 2020
£
54,482
8
54,490
2020
£
217,328
5,438
22,530
-
1,931
1,760,718
21,818
26,464
34,484
16,477
16,809
10
3,705
8,202
2,135,914

Page 39

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

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

4. RAISING FUNDS

Investment management costs

Investment management costs
CHARITABLE ACTIVITIES COSTS
Membership and registration
Certification
Publishing and marketing
Conferences and events
European & international affairs		 Direct
Costs
£
163,580
1,396,072
485,938
94,772
898
2,141,260		 2021
£
7,805
Support
costs (see
note 6)
£
43,925
338,943
14,644
3,660
-
401,172		 2020
£
6,824
Totals
£
207,505
1,735,015
500,582
98,432
898
2,542,432

5. CHARITABLE ACTIVITIES COSTS

Direct costs include admin and project staff costs which have been allocated to activity on the basis of the proportion of income generated by each activity.

6. SUPPORT COSTS

Management
£
Membership and registration
38,466
Certification
301,177
Publishing and marketing
12,823
Conferences and events
3,205
355,671		 Governance
Finance
costs
£
£
3,331
2,128
23,043
14,723
1,111
710
278
177
27,763
17,738		 Totals
£
43,925
338,943
14,644
3,660
401,172

Support costs (including project expenditure) are allocated to activity on the basis of the proportion of income generated by each activity.

7. NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

Auditors' remuneration
Auditors' remuneration for non audit work
Depreciation - owned assets		 2021
£
5,790
11,948
96,131		 2020
£
5,620
13,913
107,289

Page 40

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

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

8. TRUSTEES' REMUNERATION AND BENEFITS

Members of Council are not remunerated.

Trustees' expenses

Four trustees (2020: Five) received expenses to the value of £7,306 (2020: £4,734).

In addition, One Trustee (2020: One) received consultancy income of £2,280 (2020: £1,520) in respect of the Certification department operations review.

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2021
£
1,091,618
105,249
92,246
1,289,113		 2020
£
1,116,779
108,896
90,328
1,316,003

The average monthly number of employees during the year was as follows:

Secretarial and management 2021
35		 2020
37

During the year one member of staff earned remuneration between £70,000 and £80,000.

There were no other staff paid above £60,000.

KEY MANAGEMENT REMUNERATION

Key management are considered to be the Chief Executive Officer and Staff Executive.

Total key management remuneration during the year was £450,227.

10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
Unrestricted
funds
£
INCOME AND ENDOWMENTS FROM
Charitable activities
Membership and registration
245,296
Certification
1,784,467
Publishing and marketing
94,244
Conferences and events
11,907
Investment income
54,490
Total
2,190,404
EXPENDITURE ON
Raising funds
6,824
Restricted
funds
£
-
-
-
-
-
-
-		 Total
funds
£
245,296
1,784,467
94,244
11,907
54,490
2,190,404
6,824

Page 41

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

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

10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES -
Unrestricted
funds
£
Charitable activities
Membership and registration
211,339
Certification
1,486,280
Publishing and marketing
499,920
Conferences and events
90,956
European & international affairs
9,619
Total
2,304,938
Net gains on investments
29,422
NET INCOME/(EXPENDITURE)
(85,112)
RECONCILIATION OF FUNDS
Total funds brought forward
3,151,037
TOTAL FUNDS CARRIED FORWARD
3,065,925
11.
TANGIBLE FIXED ASSETS
Presidents
Freehold
chains of
property
office
Equipment
£
£
£
COST
At 1 January 2021
1,962,482
1,547
515,554
Additions
-
-
17,665
At 31 December 2021
1,962,482
1,547
533,219
DEPRECIATION
At 1 January 2021
258,887
-
458,967
Charge for year
54,700
-
38,042
At 31 December 2021
313,587
-
497,009
NET BOOK VALUE
At 31 December 2021
1,648,895
1,547
36,210
At 31 December 2020
1,703,595
1,547
56,587		 10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES -
Unrestricted
funds
£
Charitable activities
Membership and registration
211,339
Certification
1,486,280
Publishing and marketing
499,920
Conferences and events
90,956
European & international affairs
9,619
Total
2,304,938
Net gains on investments
29,422
NET INCOME/(EXPENDITURE)
(85,112)
RECONCILIATION OF FUNDS
Total funds brought forward
3,151,037
TOTAL FUNDS CARRIED FORWARD
3,065,925
11.
TANGIBLE FIXED ASSETS
Presidents
Freehold
chains of
property
office
Equipment
£
£
£
COST
At 1 January 2021
1,962,482
1,547
515,554
Additions
-
-
17,665
At 31 December 2021
1,962,482
1,547
533,219
DEPRECIATION
At 1 January 2021
258,887
-
458,967
Charge for year
54,700
-
38,042
At 31 December 2021
313,587
-
497,009
NET BOOK VALUE
At 31 December 2021
1,648,895
1,547
36,210
At 31 December 2020
1,703,595
1,547
56,587		 continued
Restricted
funds
£
900
-
-
-
-
900
-
(900)
12,793
11,893
Fixtures
and
fittings
£
97,135
-
97,135
89,532
3,389
92,921
4,214
7,603		 Total
funds
£
212,239
1,486,280
499,920
90,956
9,619
2,305,838
29,422
(86,012)
3,163,830
3,077,818
Totals
£
2,576,718
17,665
2,594,383
807,386
96,131
903,517
1,690,866
1,769,332

Page 42

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

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

12. FIXED ASSET INVESTMENTS

MARKET VALUE
At 1 January 2021
Disposals
Revaluations
At 31 December 2021
NET BOOK VALUE
At 31 December 2021
At 31 December 2020
Analysis of investments between funds
UK equities
Non-UK equities
Shares in group undertakings		 Movement
in market
value of
UK
quoted
investments
£
546,952
(7,803)
65,712
604,861
604,861
546,952
Unrestricted fund
£
604,859
-
2
604,861

Shares in group undertakings

The Institute is the beneficial owner of all the issued share capital of Personnel Certification in NonDestructive Testing Limited (PCN Limited) a company registered in England and Wales. The company did not trade during the year and has no assets or liabilities.

13. STOCKS

Finished goods 2021
£
55,309		 2020
£
49,794

Page 43

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

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

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade debtors
Bad debt provision
Other debtors
Prepayments and accrued income
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Social security and other taxes
VAT
Other creditors
Accruals
Deferred income		 2021
£
232,935
(5,000)
(50)
295,128
523,013
2021
£
109,988
36,167
34,864
16,207
83,407
167,509
448,142		 2020
£
220,887
(5,000)
(75)
175,768
391,580
2020
£
70,754
36,947
38,271
18,193
59,695
115,155
339,015

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Deferred income

Balance at
1 January 2021
£
Subscriptions
91,825
Conferences and Events
23,330
Total
115,155		 Balance at 31
Released
Deferred
December 2021
£
£
£
(91,825)
96,165
96,165
(23,330)
71,344
71,344
(115,155)
167,509
167,509

The deferred income relates to subscriptions, conferences and events for the year ended 31 December 2022.

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years		 2021
£
10,186
-
10,186		 2020
£
4,931
186
5,117

Page 44

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

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

16. LEASING AGREEMENTS - continued

OPERATING LEASES - LESSOR

Minimum lease receipts under non- cancellable operating leases fall due as follows:

Within one year
Between one and five years
MOVEMENT IN FUNDS
At 1/1/21
£
Unrestricted funds
General fund
3,065,925
Restricted funds
Croxson Memorial Fund
2,810
BNC for NDT Fund
31
Halmshaw Award Fund
4,210
The Nemet Award
4,842
11,893
TOTAL FUNDS
3,077,818
Net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
2,554,833
(2,549,337)
Restricted funds
Halmshaw Award Fund
-
(350)
The Nemet Award
-
(550)
-
(900)
TOTAL FUNDS
2,554,833
(2,550,237)		 2021
£
47,000
86,167
133,167
Net
movement
in funds
£
71,208
-
-
(350)
(550)
(900)
70,308
Gains and
losses
£
65,712
-
-
-
65,712		 2020
£
39,167
-
39,167
At
31/12/21
£
3,137,133
2,810
31
3,860
4,292
10,993
3,148,126
Movement
in funds
£
71,208
(350)
(550)
(900)
70,308

17. MOVEMENT IN FUNDS

Page 45

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

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

17. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Restricted funds
Croxson Memorial Fund
BNC for NDT Fund
Halmshaw Award Fund
The Nemet Award
TOTAL FUNDS		 At 1/1/20
£
3,151,037
2,810
31
4,560
5,392
12,793
3,163,830		 Net
movement
in funds
£
(85,112)
-
-
(350)
(550)
(900)
(86,012)		 At
31/12/20
£
3,065,925
2,810
31
4,210
4,842
11,893
3,077,818

Comparative net movement in funds, included in the above are as follows:

Unrestricted funds
General fund
Restricted funds
Halmshaw Award Fund
The Nemet Award
TOTAL FUNDS		 Incoming
resources
£
2,190,404
-
-
-
2,190,404		 Resources
expended
£
(2,304,938)
(350)
(550)
(900)
(2,305,838)		 Gains and
losses
£
29,422
-
-
-
29,422		 Movement
in funds
£
(85,112)
(350)
(550)
(900)
(86,012)

The Croxson Memorial Fund is used for organising presentations from prestigious speakers.

The BNC for NDT Fund is now depleted. Previously it funded an annual cross-institutional meeting.

The Halmshaw Award is an annual award to authors of the best paper published in the Institute's journal on any aspect of industrial radiography or radiology.

The Nemet Award recognises examples of outstandingly effective use of NDT, especially those that might encourage small firms to apply NDT methods for the first time.

Page 46

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

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

18. EMPLOYEE BENEFIT OBLIGATIONS

The Institute contributes to a fully insured scheme for employees. The pension cost charge represents contributions payable by the Institute to the scheme and amounted to £92,246 (2020: £90,328).

19. RELATED PARTY DISCLOSURES

Certain Trustees on the Institute are also employees of the following companies:-

Institution of Mechanical Engineers TWI Skills Training UK

The Institute provided services totalling £218,583 to these companies in the year.

Total services provided to the Institute from these companies in the year was £704.

At the year end the Institute was owed £33,987 by these companies.

At the year end the Institute owed £nil to these companies.

All transactions are carried out at arms length on normal commercial terms.

20. FRC ETHICAL STANDARD - PROVISIONS AVAILABLE FOR SMALL ENTITIES

In common with many other businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities, assist with the preparation of the financial statements and to provide payroll services.

21. ULTIMATE CONTROLLING PARTY

The Institute is a company limited by guarantee and does not have a share capital. Its activities are administered by a Council, no member of which receives any remuneration for his or her services.

The Institute is under the ultimate control of its membership.

Page 47

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

INCOME AND ENDOWMENTS
Investment income
Rental income
Interest receivable
Charitable activities
Subscriptions
IAQP
Journal advertising income
Publications advertising income
Sale of books and insignia
Journal subscriptions
Condition monitor
Conference and seminar receipts
End-Point Assessment
Other income
Certification activities
Government grants
Branch income
Total incoming resources
EXPENDITURE
Investment management costs
Investment management costs
Charitable activities
Wages
Social security
Pension costs
Other staff benefits
Journal production costs
Publication costs
Website/electronic publishing
Cost of books and insignia
Conference expenses
Branch costs
European and international affairs
UKAS fees
PCN audit fees
PED Solution project costs
Carried forward		 2021
£
56,475
-
56,475
218,832
3,795
39,437
30,748
27,060
11,280
292
23,415
63,900
6,070
2,071,389
-
2,140
2,498,358
2,554,833
7,805
1,091,618
105,249
92,246
35,658
153,620
110,596
29,589
15,035
14,266
2,860
898
15,092
127,378
84,384
1,878,489		 2020
£
54,482
8
54,490
217,328
5,438
26,464
34,484
16,477
16,809
10
3,705
22,530
1,931
1,760,718
21,818
8,202
2,135,914
2,190,404
6,824
1,116,779
108,896
90,328
36,415
152,579
109,560
29,808
3,438
8,215
7,029
9,619
13,752
111,757
-
1,798,175

Page 48

This page does not form part of the statutory financial statements

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

Charitable activities
Brought forward
Awards
Other certification services
Legal costs
Staff costs
Marketing
Meeting expenses
Staff training
End-Point Assessment costs
Support costs
Management
Telephone
Postage and stationery
Sundry expenses
Computer costs
Bad debts
Premises, facilities and insurance costs
Depreciation
Finance
Bank charges
Governance costs
Auditors' remuneration
Auditors' remuneration for non audit work
Total resources expended
Net income/(expenditure) before gains
and losses
Realised recognised gains and losses
Realised gains/(losses) on fixed asset
investments
Net income/(expenditure)		 2021
£
1,878,489
4,765
219,291
4,258
5,414
3,400
3,666
6,791
15,186
2,141,260
16,882
38,756
17,797
110,736
(1,575)
76,944
96,131
355,671
27,763
5,790
11,948
17,738
2,550,237
4,596
65,712
70,308		 2020
£
1,798,175
4,165
22,947
9,410
4,651
9,862
12,017
3,760
7,161
1,872,148
19,394
48,961
18,810
100,639
(1,419)
90,590
107,289
384,264
23,069
5,620
13,913
19,533
2,305,838
(115,434)
29,422
(86,012)

Page 49

This page does not form part of the statutory financial statements