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2023-12-31-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 2023

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 2023

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 48
Detailed Statement of Financial Activities 49 to 50

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

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 2023. 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).

OBJECTIVES AND ACTIVITIES

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:

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

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):

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:

o For individuals, this includes:

▪ Use of logo on stationery. 

  - Identification as part of a well-respected cohort.

  - Access to BINDT recognition and rewards.

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▪ Legal helpline.

o For individuals, this includes: ▪ Insight, NDT News, IJCM and Condition Monitor. ▪ Yearbook and Branch Booklet. ▪ Conferences, symposia, seminars, workshops. ▪ Members' area on website. ▪ Branch meetings. o For organisations, this includes: ▪ Exhibitions. ▪ Entry in the Yearbook.

▪ Participation in the governance of BINDT.

▪ Participation in the work of BINDT (committees/work groups). ▪ Personal professional development arising from participation.

▪ Influence the governance of BINDT

▪ Influence the work of BINDT. ▪ Outlet for 'Thought Leadership' - improve standing in the marketplace.

• Discounts:

▪ Conferences. ▪ 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:

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The means to these ends include:

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-to-day 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 website 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).

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  1. 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.

34.

(1) The directors may appoint a person who is willing to be a director to fill any vacancy arising. (2) A director appointed by a resolution of the other directors must retire at the next annual general meeting and must not be taken into account in determining the directors who are to retire by rotation.

  1. When a person is elected by a branch of the Institute at the branch AGM to represent that branch on the Council, the elected representative shall, if they are not already a director, automatically be appointed a director of the Institute for the duration of their period of office representing the branch. A director appointed in this way becomes a full voting member of Council. Such representatives are to be elected in accordance with the Institute's Bye-Laws in force from time to time. It is, however, not compulsory for a branch AGM to include the election of a representative to Council.

  2. When a person is elected chair of any one of the 5 committees identified below at 36(i)-(v), the committee chair shall, if they are not already a director, automatically be appointed a director of the Institute for the duration of their chairmanship of the committee. A director appointed in this way becomes a full voting member of Council. Such chairpersons are to be elected by their committee in accordance with the secret ballot method as outlined in the Institute's Bye-Laws in force from time to time.

The selected committees for the purpose of this article 36 are as follows:

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)

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)

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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:

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

The 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 (RAEng) Engineering Diversity Concordat, to which BINDT is a signatory.

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Based on the findings from the 2021 RAEng Progression Framework assessment and recommended best practice, the group have been focusing on developing a Diversity and Inclusion strategy. This will provide a clear action plan of what BINDT will be working on over the next 3 years, with an aim of helping to further embed D&I across all areas of the organisation and providing clear communication to the BINDT community (members, employees and volunteers) and NDT community at large of the steps BINDT are taking to progress D&I with our industry.

Planned activities for 2024:

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 attends 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.

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

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Programmes and relevant information were also shared through the BINDT Events App.

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For 2024, the marketing team's priorities will be to:

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.

This year, the MQ&E committee meetings have been as successful as ever. Meeting have been well attended and new committee members have joined, which has been really good for discussions. The meetings have been continuing to be conducted online, which works well because everyone can review documents and membership applications before the meeting starts. The committee has decided to keep having online meetings, except for the AGM, where they might meet in person if this is agreed beforehand. The BINDT staff have been working really hard, as always, to make sure the meetings go smoothly. Without them, the meetings wouldn't be as successful or concise. Due to the success of these meetings, membership applications are getting processed quickly and applicants are getting feedback on their applications in timely manner.

Membership numbers have held steady over the past year. The increase in membership numbers which was attributed to the non-fee-paying Affiliate grade has now settled. It is now the aim of the committee to identify strategies to try and convert the Affiliate members into full paying members.

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 It was agreed that Condition Monitoring will be incorporated into the NDT apprenticeships when they are reviewed. The Level 6 NDT Engineer does currently incorporate CM modules in the degree programmes, so no change is required with this apprenticeship scheme. The scheme is to be retitled Non-Destructive Technologies to better recognise CM and NDT.

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Due to the delay in gaining OFQUAL recognition, BINDT was only able to conduct 7 end-point assessments in 2023: 1 NDT Engineering Technician apprentice, 4 NDT Engineer apprentices and 2 NDT Operator apprentice. All end-point assessments were carried out remotely.

The ECWG continued its excellent work in managing the professional engineering registration processes for BINDT members. Although Professional Review Interviews (PRIs) continue to be held remotely, the number of trained assessors is sufficient to allow BINDT to facilitate interviews at various locations with timely availability over the next two years. There is a likelihood that more will be needed thereafter but, 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 continues to grow and is becoming more diverse.

In February 2023 the Engineering Council carried out the five-yearly review of BINDT's registration activities. One non-conformance and several small improvement actions were raised and BINDT's licence was renewed. The Engineering Council will be arranging a follow-up review meeting to determine that we have addressed the issues raised but, at the time of writing, this meeting has not taken place.

The Institute for Apprentices & Technical Education is conducting a review of all apprenticeships and will be making some changes. A sub-group of the EPD Committee continues to have regular meetings with IfATE and progress is ongoing.

Towards the end of 2023, BINDT successfully achieved OFQUAL recognition of the NDT Engineer and NDT Operator apprenticeship schemes. Recognition of the NDT Engineering Technician apprenticeship was granted subject to 'Special Conditions' which have since been closed. BINDT is therefore now able to conduct EPAs again for all three apprenticeship schemes.

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. By the end of 2023 users had uploaded nearly 6000 entries. The CPD website tool is now used extensively by members and, 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.

The following summary gives an overview of the achievements made during 2023 set against the work involved:

A slight decrease in PCN NDT certificate holders was recorded at the start of 2023: 20,659 (20,711 in 2022) holding 46,493 qualifications: (46,767 in 2022). Accompanying NDT certification, the Condition Monitoring sector has remained stable: 1391 PCN certificate holders (1695 in 2022) possessing 1521 CM qualifications (1930 in 2022). Certification figures are on a gradual increase overall.

Complementing personal certification, there were 57 organisations holding Approved Training Organisation approval covering both NDT and CM schemes, along with 21 AQB organisations holding Authorised Qualifying Body approval.

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In addition, eight organisations were holding BINDT-certified Quality Management System (QMS) compliance, and there were 15 BINDT-approved Inside Agencies or Outside Agencies and 4 BINDT-approved companies under RIS-2701 for the rail industry.

With reference to PCN Aerospace, the UK regulator, the CAA (Civil Aviation Authority) continues to accept the BINDT PCN Aerospace scheme in its current form and as such the scheme continues to be recognised within CAA document CAP747 (Mandatory Requirements for Airworthiness) and Generic Requirement number 23 - Personnel Certification for Non-Destructive Testing of Aircraft, Engines, Components and Materials, for use on all G registered aircraft maintained within the UK. However, the CAA plans to replace GR23 in its current form with a revised format, but as yet the UK Aviation sector has not had sight of the revised format. The UK NANDTB recognises the PCN/AERO scheme as satisfying the qualification requirements of EN4179 for personnel subject to EC regulation 2042/2003.

EASA has not yet indicated that it is willing to accept PCN Aerospace as an alternative, acceptable means of compliance and confirms that NDT carried out within the aerospace sector meets the requirements of EN 4179. This requirement has further been confirmed within the first release of EASA User Guide (UG.CAO.0161-001 Foreign Part-145 approvals - NDT qualification) which has led to the rise of a two-tier requirements system, in that organisations who are outside of the European Union must comply with UG.CAO.0161-001 whilst those within the EU do not. EASA have been approached to provide further guidance on the user guide's intent, and further for recognition of the PCN Aerospace Certification scheme within the document. As yet, no response has been received from BINDT's request for a meeting. The UK NANDT B continue to support PCN Aerospace running in parallel with second party EN 4179 based certification.

Several other issues have materialised since the supposed completion of 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 at one stage took the decision not to recognise approvals issued by organisations under UK NANDTB oversight. Discussions remain ongoing with the chair of the UK Board, European forum and EASA who confirm that although UK approvals are recognised, Germany may exercise their sovereign right to reject UK approvals, a decision over which EASA has no control. The Certification Services Department (CSD) and Technical & Industrial Department (TID) continues to prioritise the revision of the PCN scheme since the release of ISO 9712:2022. CSD/TID continues to develop the modularisation of method schemes, training and examinations in line with ISO 9712:2022, industry requirement and further the development to the framework structure which includes the Product Technology project; 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. This course will complement the main method course and allow ATOs to keep the classroom training hours/days manageable for industry.

CSD/TID plans to hold certification workshops for its network of AQBs, in the UK and India to update on the progress of the scheme revision. The project continues to progress well for implementation in July 2024.

PCN on-line examinations continue to be implemented in an ongoing phased approach. The next phase is to roll this out to at least 1 additional UK AQB for NDT and one CM ATO. Functionality of the database has been improved to allow CM exams and NDT examination centres (UK & overseas) to use the online system.

CSD is progressing in streamlining the PCN administration processes with continually developing new IT systems and a full revision of the PCN scheme (in line with ISO 9712:2022), a major project that includes industry representation and input.

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With regard to compliance to UK PESR (Pressure Equipment (Safety) Regulations). Initially, 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. Announcements on 1 August 2023 stated that the Government intends to introduce legislation to extend recognition of certain goods that meet EU requirements (including the CE marking), indefinitely, beyond 2024 for many products. When that legislation is passed, certain goods that meet EU requirements will be able to be placed on the GB market.

Along with managing all aspects of accredited certification, the day-to-day activities of developing new certification schemes, internal and external auditing and administration tasks continue along with large projects currently under development, to ensure that NDT & CM certification remain 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/TID teams which, again, is gratefully acknowledged by the CMC members.

CSD objectives for 2024 are to finalise and implement significant improvements and compliance of the PCN scheme against ISO 9712:2022, improve training and qualification processes, improve customer satisfaction and internal IT systems, whilst at the same time continue to future-proof certification as per industry requirements and input. The CMC membership will support the CSD/TID 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 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 and review of new and existing training and certification schemes.

Some examples of these projects, with work progressed during 2022 and in some cases continuing through 2023, are as follows:

The technical team continue to support NDT News and third party publications with relevant articles and continue to attend conferences as required, often presenting at these events.

NDT Events

In January, the Institute's Conferences and Events team supported the Scottish Branch in hosting a workshop, exhibition and Burns Supper with the theme 'NDT solutions for renewable energy', hosted in Glasgow at the Lynnhurst hotel.

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March saw the BINDT Workshop 2023: 'NDT of composites through life', held at the Royal National Lifeboat Institution (RNLI), Poole. Topics covered in the two-day event included design, raw materials, NDT at concept, manufacture, installation, inspection validation, standards, training, in-service inspection and repair, additive manufacture, end-of-life and re-use/recycling. A commercial session for exhibitors ran alongside the workshop on Wednesday 22 March 2023, showcasing the latest products, innovations and technology available to industry with regard to the testing and inspection of composites and advanced materials.

Following the success of the 2022 Aerospace Event in Bristol, BINDT's Aerospace Group continued with its Aerospace Event in April 2023 at the Technology & Innovation Centre, University of Strathclyde. The event focused on the latest in technology developments in the aerospace sector and the application of inspection technologies, with a focus on Robotics and Automation. A two-day exhibition ran alongside the event, with over 16 exhibitors, showcasing the latest products, innovations and technology available to the industry today. Feedback was very positive in regard to this event.

The BINDT Annual British Conference on NDT (NDT 2023) celebrated the event's 60th anniversary and was held in Northampton. Celebrations to mark the occasion were organised throughout the event and a Showcase Day featured on the final day. A key theme part of the Showcase Day was to demonstrate the contrast between old NDT and cutting-edge inspection technologies, which included the demo of old instrumentation from manufacturers and a museum collection, through to a live demonstration of drones running over an obstacle course to give an idea of the challenges of drone deployment for inspection methods. The Thursday also included an Apprenticeship Awards Dinner, Paper Prize Giving and a Q&A session with the CEO of the British Institute of NDT, David Gilbert.

NDT 2023 was co-located with CM2023, the Nineteenth International Conference on Condition Monitoring and Asset Management and allowed delegates to customise their experience by visiting both events under one roof. The conference is organised by BINDT in close partnership with the International Society for Condition Monitoring (ISCM) and the US Society for Machinery Failure Prevention Technology (MFPT). This combination of organisational effort creates one of the largest events of its kind at a truly international level.

Overall, the NDT/CM 2023 event was very successful with over 320 paying attendees each day plus 45-50 walk-ins, alongside 180 attendees on the showcase day, which may be a feature that future "NDT/CM Conference" events will carry forward with differing themes each year.

2023 was the first complete year of delivering industry events in the traditional face-to-face format. The conference and events programme represents a great achievement for the team, particularly when viewed against a background of increasing pressure to deliver value for money, whilst competing with other subsidised events run in attractive overseas locations. It is appropriate to recognise the stakeholder inputs into the events this year, all the background activities, negotiations, debates and compromises required to make them a success.

A full and exciting programme of events is now being planned for 2024, featuring workshops, conferences and exhibitions.

Publications

The Institute's NDT and CM publications continued to be received well in 2023, both those delivered electronically and in hard-copy format. Concerns regarding the website have abated with the impending phased upgrade agreed.

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Insight continues to be well supported by researchers and academics. Paper submissions are holding up and the flow is managed through the review process so that authors are not kept waiting. There has been a call out for more reviewers, particularly for AI and Machine Learning papers, with some positive responses. Work is in progress for adding key words for new papers to garner further academic reach. The Editorial Panel for Insight is happy to welcome people who will take an active role in contributing to the journal, with ideas, papers, contacting potential authors, peer reviews, etc, as it is important to ensure a balance of knowledge and expertise. Papers were received from 12 different countries, with China continuing to be the largest source of material submitted in 2023. The number of submissions from the UK remained stable. The standard of reviewing also remained rigorous, with accepted papers continuing to undergo a thorough assessment and fewer papers being rejected. The valuable contribution of Insight's Honorary Technical Editors and reviewers is acknowledged.

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 2023.

Advertising income for Insight fell slightly in 2023, though overall still showed a favourable variance against budget.

NDT News saw an increase in advertising support in 2023. The publication maintained its high editorial standards and continues to be the main vehicle for communication with the practitioners of NDT and related disciplines. Regular features are well supported, though fewer Branch meeting reports are being received. The excellent contributions from its regular columnists are appreciated, including the reports from BINDT's Branches. It is notable that John Moody's column has been taken over by Patrick Boulton. March 2023 saw the launch of a new column, "In Focus", focusing on the work of BINDT's Committees, Special Interest Groups, User Groups, Sector Groups, Working Groups, etc.

The BINDT Yearbook was further developed with expanded sections, additional content and a more detailed explanation of the BINDT committee structure. This continues to be extremely well received and had good support from both existing and new advertisers.

Condition Monitor has utilised papers from the CM conference as feature articles.

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.

Other publications such as the MAQ Protocol Report are progressing. Reports on the 2022 Aerospace Workshop on Technique Validation and Standards and the 2022 Industry 4.0 Workshop have been published on the BINDT website and publicised through social media. Some work in progress continues on a series of Electrical CM guides and Civil Engineering Workshop report.

Each publication continued to be produced on time and to the highest production standards.

The NDT/CM 2023 Joint Conference and all other BINDT events made full use of the BINDT Events app very successfully.

Condition Monitoring (CM) Events and Publications

The Technical Axis Review: This was completed and Bye-law changes ratified at the BINDT AGM in September 2023. The NDT Technical Committee, the CM Technical Committee, and the SHM Special Interest Group all became Sub-Committees under the new BINDT Technical Committee formed from the Joint NDT/SHM/CM Working Group.

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This new arrangement gives the CMSC Chair & CMSC Vice-Chair membership of the BINDT Technical Committee. The chair and vice-chair of the BINDT Technical Committee are taken from the chairs of the Sub-Committees and will periodically rotate. The Technical Committee Chair and vice-chair are also both appointments to BINDT Council.

CM Conferences: The CM 2023 conference was co-located with the NDT 2023 60th Anniversary Conference and was held 12 - 14 September at the Northampton Town Centre Hotel. This had good attendance from NDT, CM & SHM delegates and speakers. There were 3 NDT streams and 3 CM Streams on day 1 and day 2. There were 67 exhibitors (mainly NDT with a few CM and SHM stands), and on Day 3 there was a showcase day with a range of interesting historic instrumentation on show, and a drone contest.

The conference included a hosted private tour of Delapré Abbey which was very interesting and well-received by the participants, with a meal and refreshments at the Abbey. The Conference Dinner was well attended and NDT and CM awards made.

The hard work of BINDT Staff in organising the conference and event is acknowledged and thanked, and plaudits to the rest of the BINDT staff, Volunteers, Session Chairs, Presenters, Exhibitors, Equipment & Service Providers and Attendees.

Planning is underway for the next CM conference to be held from 18th to 20th June 2024 at the Milton Hill House Hotel, Abingdon, Oxfordshire.

Meetings : CM SC has maintained a full schedule of sub-committee and working group meetings. The use of Zoom allows members to participate online. It has encouraged more frequent and often shorter meetings.

The vibration monitoring, lubrication analysis, ultrasonic and thermography working groups have been working on their question banks to ensure ISO alignment of the BINDT PCN courses and assist the move to on-line examinations. Online examinations are 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 other popular training and qualification schemes, particularly in VA, IRT and LA.

CM working group statuses in brief are as follows:

EL - Best Practice Guides for Electrical CM have been developed. Three are close to publication.

LA - Focusing on ways to improve participation in conference/workshops. Plans are underway for a LA WG webinar in May 2024.

VA - Updating Cat 3 question bank, incorporating feedback from examinations. A revision of ISO 18436-2 is underway.

IRT - The BINDT IRT Handbooks are being reviewed and updated by group members.

AE - Proposal complete for BSI/ISO review of ISO 18436-6 to expand syllabus details. CMSC re-grandfathered Dr T Holroyd to support the PCN scheme.

US - The BINDT US WG chair has also been appointed convenor of ISO TC108/SC5/WG15 - Ultrasonics CM. ISO 18436-8 was discussed at ISO/TC 108/SC5 meetings in October 2023 and a new ISO work item created to incorporate the BINDT/BSI proposals to expand the syllabus detail. A review of ISO 29821 was also initiated, and a new work item on Calibration of CM Ultrasonic sensors.

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GEN - BINDT PCN CM Gen Scheme draft (CM GEN App G) has been completed and now includes Categories 1 2 & 3. An ISO working draft was also created and was discussed at the ISO/TC 108/SC5 meetings in October 2023 and a new ISO work item created. The BINDT CM GEN WG has already started work on building a question bank for a new PCN scheme.

NDE 4.0 - CMSC & CM WG members participate in BINDT's NDE 4.0 WG. CM members can advise how CM has solved problems and may inspire similar solutions from the NDT and SHM communities and vice versa. NDE 4.0 technologies for CM are already covered within several CM ISO Standards.

CM Publications:

Condition Monitor: Condition Monitor has been issued on-line since 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. Selected CM conference papers are also published in Condition Monitor. The 2-column format also allows printed copies easily to be made available for Conferences/Workshops.

Insight: The INSIGHT journal continues to run CM technical papers and periodically has dedicated CM editions. Both the chair and vice chair of the Technical Committee wrote the Comment Leaders for two editions of Insight in 2023. Insight's Editorial Panel now includes the membership of the BINDT Technical Committee, and the memberships of the NDT, CM & SHM Sub Committees. The CMSC committee thanks and acknowledges the support from BINDT publications, the Technical Committee, Sub-Committees and working group membership, in providing and refereeing these papers.

CM Handbooks: The CM Handbook is selling well and sales increased from 54 in 2022 to 96 in 2023. The other CM Series (IRT Part 1 & IRT Part 2 & VM Handbooks) still sell in smaller numbers.

Apprenticeships: BINDT's Education and Professional Development Committee (EPD) which includes CMSC members, has been working together with The Institute for Apprenticeships and Technical Education (IfATE) to review the current three NDT apprenticeships and to include CM within their syllabuses. The term NDT would become Non-Destructive Technologies and the intention is to modify the Level 2 (NDT Operator) and Level 3 (NDT Technician) standards to allow the inclusion of CM (and potentially include SHM). The Level 6 NDT Engineer Standard was originally developed to include the NDT degree programme at Northampton University, which already included a substantial amount of CM. Further development of the revised scheme is on-going. BINDT has regained approval from OFQUAL to conduct the Apprenticeship End Point Assessments (EPA).

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 in the awards listed in the table below. The updates for 2023 are as follows.

BINDT held its awards ceremony at the annual NDT conference. The ceremony was well attended and received.

John Moody was awarded the Lifetime Achievement Award for his continued contribution to BINDT.

In total 35 awards were presented at the 2023 conference.

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During 2023, new awards were created and will be presented at the 2024 conference. These new awards aimed at encouraging diversity are highlighted in the table below with an *.

Further new awards will be created in 2024.

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 thepreceding 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
earlystages(first fiveyears)of their career.
Practitioner Award To recognise outstanding achievement in the
learning, sharing or execution of NDT or CM
practice bya 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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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

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.
*NDT Operator of the Year Framed certificate, £100 cash
*NDT Engineer Technician of the Year Framed certificate, £100 cash
*NDT Engineer of the Year Framed certificate, £100 cash
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 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 2023, progress was steady 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. The Application Management System was developed, trialled and further enhanced through 2023.

2023 also saw a number of required enhancements to both the PCN and membership databases.

Website

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

Development of the BINDT website up to mid-2023 was restricted to essential maintenance and enhancements. However, with funding now available, in the summer of 2023 a new Digital Services Coordinator was recruited to provide technical support for BINDT's digital services, including apps and other online resources, as well as the website development project, aimed at not only modernising the look and feel of the website but also adding new functionality to enrich and enhance the user and provide help with members' career development.

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REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

By the end of 2023, users had uploaded more than 6000 entries to the online CPD resource, 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 2023 BMW continued work on repurposing the warehouse to the rear of Midsummer House into a temporary showroom while the rebuilding of its Bedford Road showroom takes place. This involved some disruption due to alterations to the configuration of BINDT's boiler room. Towards the end of 2023 BINDT replaced its office lighting with LED lighting resulting in increased energy efficiency, longer lifespan and improved lighting quality.

Financial

For another year, the continuing background of uncertainty caused by Brexit, and the Fall-out from the Covid-19 pandemic meant that the expectations for 2023 were difficult to assess. The only sensible thing to do was again to be prudent in our budgeting.

Consequently, a budget was set for 2023 which was again cautious in terms of revenue and cost control, given the uncertain industry context.

However, given a successful 2022 with an overbudget excess being generated, included in the budget for the first time was an amount of money called 'Designated Funds' in the accounts. This allowed the starting of longer-term investments, in line with the Institute's strategic objectives, of 2 to 3 years knowing the funds for the completion of those projects was on hand. As such we could start work on a very significant, long-term project of upgrading the BINDT website. As reported in 2022, these extra funds also allowed for consideration of the increase of the reserves policy level.

During the year, many of the more long-term investments demonstrated their value by reducing manual workloads on staff. This allowed the backlog in certification, for instance, to be reduced without the need for as many extra staff and also for a reduction in the staff costs on a permanent basis.

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 were shared with Council at strategy related meetings. This financial background was then reflected on the actions agreed 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.

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

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 strategic health of the Institute is very good.

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.

Following review by BMAG, the bands/trigger have increased, with new levels as follows:

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

The lower trigger level is set at £750k 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 2023

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.

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

Performance indicates Balanced strategy meets the set objectives.

NDT Leadership Forum

Following the 2021 appointment of Mark Dowell as the founding Chair of the NDT Leadership Forum but delayed slightly due to the Covid-19 pandemic, the creation of the executive group was completed. With the selection of key players from the various industry types in place, the executive meetings continued through 2023.

Sufficiently briefed deputies were established for executive members and chairs/deputy chairs of most working groups.

The objectives of the executive were confirmed as:

NDT Leadership Forum Theme Working Groups and associated Mission.

Theme Mission
Landscaping To summarise and communicate wider NDT landscape to
government & communities beyond NDT.
Engineering To meet both present and future needs of end users of NDT.
People To ensure and promote competency and appropriateness of NDT
personnel for future industry.
Requirements To capture and publish specific requirements for sectors or materials.
Research To identify and tackle gaps and barriers in the research funnel.
Technology transfer To identify and tackle barriers to technology transfer.

For each of these Theme areas, some specific and clearly defined tasks and outputs were highlighted and completed to ensure that all stakeholders fully understand the route by which those objectives will be achieved. These are:

Scope Example activities (to help define scope) Strategic goals (top-down) Outputs Lead organisation(s) (route for communication) Chair Vice Chair Members

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

Good progress was made and we are particularly happy with the wide variety of industry groupings attracted to contribute. These include user industry sectors as well as R&D, PEIs, Regulators and the NDT industry.

At the end of 2023 it was agreed by council to provide a budget for 2024 for setup costs and establishment to ensure that the functioning of the NDT Leadership Forum was in line with BINDT norms and would continue in event of any changes such as personnel etc.

Summary of the year just ended

Following a successful financial outcome of 2022, BINDT found itself entering 2023 with a sound and solid base and an excellent financial reserves policy that put it in a position to plan to invest in some sorely needed activities and development projects. The outcomes of the Strategy Retreat and Strategic Action Plans developed by committees and staff identified the following key objectives for 2023:

A full and exciting programme of events was planned for 2023, featuring workshops, conferences and exhibitions, starting with a Workshop on NDT Solutions for Renewable Energy in January and ending with the co-located CM 2023 and NDT 2023 conferences, where BINDT celebrated 60 years of NDT conferences.

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

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

BINDT continued to expand activities to promote diversity, inclusion and equality within the Institute staff, membership and engineering in general.

Outlook for the year just started

Following another successful financial outcome for the year 2023, BINDT finds itself in a good position to continue to invest in some sorely needed activities and development projects. The outcomes of the Strategy Retreat and Strategic Action Plans developed by committees and staff have identified the following key objectives for 2024:

A full and exciting programme of events is planned for 2024, featuring workshops, conferences and exhibitions. January 2024 sees a seminar in Glasgow with the theme of Educating the future NDT engineer. In April the BINDT Aerospace Event and workshop will take place at the BAWA Centre in Bristol with the focused theme 'Additive Manufacturing for Aerospace'. The Twentieth International Conference on Condition Monitoring and Asset Management (CM 2024) will take place in June, in Oxford, a two-day event, again organised closely with the ISCM and MFPT. In September the BINDT flagship biennial event, Materials Testing 2024/NDT 2024, will be at The International Centre in Telford. This event is seen as the premier forum for industry speakers, experts and technology providers for quality, NDT, materials testing, condition monitoring and diagnostic technology.

For 2024, the marketing team's priorities are to:

BINDT continues to expand activities to promote diversity, inclusion and equality within the Institute staff, membership and engineering in general. The Diversity and Inclusion Advisory Group's planned activities for 2024 include:

Lastly, the resilience and productivity of all BINDT employees during the year under review are acknowledged with thanks.

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

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 (Past President), S Baldwin, M Beecroft, T Bertenshaw, M Clapham (Vice President), I Cooper (President), S Cunningham (Vice President), R Day, C Douglas, M Dowell (Honorary Treasurer), J M Farley, C Forrester, J Hansen (Honorary Secretary), F Hardie, A Hope, K Kirk, M J F Knowles (Vice President), M Lugg, S Mills, T O'Hare, K Pickup, D Pilarta, B Ravenshear, A Schofield, M A Sim, M C Smith, J Taylor (President-Elect), A Ward, R Watson, D Wylie (Vice President).

The following Trustees were elected after the year end:-

M J F Knowles, C Douglas, M Lugg, T Bertenshaw, D Pilarta, S Cunningham

The following Trustees resigned during the year:-

G Elliott (Vice President), J Needham, D Whittle, C Bull

Auditors

Shaw Gibbs (Audit) Limited Chartered Certified Accountants Statutory Auditor 264 Banbury Road Oxford Oxfordshire OX2 7DY

Bankers

Lloyds Bank 2 George Row Northampton Northamptonshire NN1 1DJ

Solicitors

Howes Percival Nene House 4 Rushmills Northampton NN4 7YB

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 DECEMBER 2023

REFERENCE AND ADMINISTRATIVE DETAILS Investment Advisers

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

Chief Executive Officer

D J 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, Shaw Gibbs (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

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 20 June 2024 and signed on its behalf by:

................................................................ J Hansen - Trustee

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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 2023 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 Shaw Gibbs (Audit) Limited Chartered Certified Accountants Statutory Auditor Eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006 264 Banbury Road Oxford Oxfordshire OX2 7DY

25 June 2024 Date: .............................................

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THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2023

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
General overheads
Total
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD		 Unrestricted Restricted
funds
funds
£
£
266,149
-
3,022,553
-
98,191
-
152,991
-
60,143
-
3,600,027
-
7,774
1
195,517
2,144
2,137,069
-
584,330
-
216,150
-
60,789
-
-
-
3,201,629
2,145
50,473
-
448,871
(2,145)
3,603,574
7,669
4,052,445
5,524		 2023
Total
funds
£
266,149
3,022,553
98,191
152,991
60,143
3,600,027
7,775
197,661
2,137,069
584,330
216,150
60,789
-
3,203,774
50,473
446,726
3,611,243
4,057,969		 2022
Total
funds
£
333,086
2,650,792
107,893
336,975
57,630
3,486,376
7,791
218,016
1,823,123
540,790
382,984
15,942
-
2,988,646
(34,613)
463,117
3,148,126
3,611,243

The notes form part of these financial statements

Page 32

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

STATEMENT OF FINANCIAL POSITION 31 DECEMBER 2023

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 Restricted
funds
funds
£
£
1,627,445
-
605,304
-
2,232,749
-
55,429
-
768,740
-
1,540,818
5,524
2,364,987
5,524
(545,291)
-
1,819,696
5,524
4,052,445
5,524
4,052,445
5,524		 2023
Total
funds
£
1,627,445
605,304
2,232,749
55,429
768,740
1,546,342
2,370,511
(545,291)
1,825,220
4,057,969
4,057,969
4,052,445
5,524
4,057,969		 2022
Total
funds
£
1,641,643
562,603
2,204,246
48,664
669,217
1,150,231
1,868,112
(461,115)
1,406,997
3,611,243
3,611,243
3,603,574
7,669
3,611,243

The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

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

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 2023

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 20 June 2024 and were signed on its behalf by:

............................................. I Cooper - Trustee ............................................. M Dowell - Trustee

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 2023

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		 2023
£
454,952
454,952
(68,794)
7,772
2,181
(58,841)
396,111
1,150,231
1,546,342		 2022
£
458,859
458,859
(38,493)
7,645
1
(30,847)
428,012
722,219
1,150,231

The notes form part of these financial statements

Page 35

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

NOTES TO THE STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income for the reporting period (as per the Statement of
Financial Activities)
Adjustments for:
Depreciation charges
(Gain)/losses on investments
Interest received
(Increase)/decrease in stocks
Increase in debtors
Increase in creditors
Net cash provided by operations		 2023
£
446,726
82,992
(50,473)
(2,181)
(6,765)
(99,523)
84,176
454,952		 2022
£
463,117
87,716
34,613
(1)
6,645
(146,204)
12,973
458,859

2. ANALYSIS OF CHANGES IN NET FUNDS

Net cash
Cash at bank and in hand
Total		 At 1/1/23
£
1,150,231
1,150,231
1,150,231		 Cash flow
£
396,111
396,111
396,111		 At 31/12/23
£
1,546,342
1,546,342
1,546,342

The notes form part of these financial statements

Page 36

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

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 2023

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 2023

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

Rental income
Interest receivable		 2023
£
57,962
2,181
60,143		 2022
£
57,629
1
57,630

3.

INCOME FROM CHARITABLE ACTIVITIES

Activity
Subscriptions
Membership and registration
IAQP
Membership and registration
End-Point Assessment
Membership and registration
Other income
Certification
Certification activities
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		 2023
£
233,722
-
32,427
2,484
3,020,069
33,006
36,120
19,811
9,097
157
137,920
15,071
3,539,884		 2022
£
218,333
554
114,199
2,167
2,648,625
36,846
37,143
23,150
10,133
621
328,594
8,381
3,428,746

Page 39

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

4. RAISING FUNDS

Investment management costs

Investment management costs 2023
£
7,775		 2022
£
7,791

5. CHARITABLE ACTIVITIES COSTS

Membership and registration
Certification
Publishing and marketing
Conferences and events
European & international affairs		 Direct
Costs
£
166,861
1,777,504
573,061
201,005
60,789
2,779,220		 Support
costs (see
note 6)
£
30,800
359,565
11,269
15,145
-
416,779		 Totals
£
197,661
2,137,069
584,330
216,150
60,789
3,195,999

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

SUPPORT COSTS
Management
£
Membership and registration
26,565
Certification
314,567
Publishing and marketing
9,681
Conferences and events
13,027
363,840		 Governance
Finance
costs
£
£
2,711
1,524
28,793
16,205
1,016
572
1,355
763
33,875
19,064		 Totals
£
30,800
359,565
11,269
15,145
416,779

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		 2023
£
6,816
12,248
82,992		 2022
£
6,370
11,729
87,716

Page 40

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

8. TRUSTEES' REMUNERATION AND BENEFITS

Members of Council are not remunerated.

Trustees' expenses

Five trustees (2022: Six) received expenses to the value of £19,884 (2022: £11,177).

One trustee (2022: Two) received consultancy income of £3,827 (2022: £21,383) in respect of the Certification department operations review.

In addition, Three trustees (2022: Three) received end point assessment income of £1,450 (2022: £13,555) in respect of performing end point assessments.

9. STAFF COSTS

Wages and salaries
Social security costs
Other pension costs		 2023
£
1,296,199
130,466
107,303
1,533,968		 2022
£
1,158,041
117,716
94,864
1,370,621

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

Secretarial and management 2023
37		 2022
36

During the year one member of staff earned remuneration between £60,000 and £70,000, and one other member of staff earned remuneration between £90,000 and £100,000.

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 £490,660 (2022: £480,868).

Page 41

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

10.
COMPARATIVES FOR THE STATEMENT OF FINANCIAL ACTIVITIES
UnrestrictedRestricted
funds
funds
£
£
INCOME AND ENDOWMENTS FROM
Charitable activities
Membership and registration
333,086
-
Certification
2,650,792
-
Publishing and marketing
107,893
-
Conferences and events
336,975
-
Investment income
57,630
-
Total
3,486,376
-
EXPENDITURE ON
Raising funds
7,791
-
Charitable activities
Membership and registration
214,692
3,324
Certification
1,823,123
-
Publishing and marketing
540,790
-
Conferences and events
382,984
-
European & international affairs
15,942
-
Total
2,985,322
3,324
Net gains/(losses) on investments
(34,613)
-
NET INCOME/(EXPENDITURE)
466,441
(3,324)
RECONCILIATION OF FUNDS
Total funds brought forward
3,137,133
10,993
TOTAL FUNDS CARRIED FORWARD
3,603,574
7,669		 Total
funds
£
333,086
2,650,792
107,893
336,975
57,630
3,486,376
7,791
218,016
1,823,123
540,790
382,984
15,942
2,988,646
(34,613)
463,117
3,148,126
3,611,243

Page 42

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

11. TANGIBLE FIXED ASSETS

COST
At 1 January 2023
Additions
At 31 December 2023
DEPRECIATION
At 1 January 2023
Charge for year
At 31 December 2023
NET BOOK VALUE
At 31 December 2023
At 31 December 2022		 Freehold
property
£
1,962,482
4,000
1,966,482
368,287
54,801
423,088
1,543,394
1,594,195		 Presidents

chains of

office
£
1,547
-
1,547
-
-
-
1,547
1,547

Equipment
£
571,712
47,223
618,935
528,404
25,781
554,185
64,750
43,308		 Fixtures
and

fittings
£
97,135
17,571
114,706
94,542
2,410
96,952
17,754
2,593		 Totals
£
2,632,876
68,794
2,701,670
991,233
82,992
1,074,225
1,627,445
1,641,643

12. FIXED ASSET INVESTMENTS

FIXED ASSET INVESTMENTS
Movement
in market
value of
UK
quoted
investments
£
MARKET VALUE
At 1 January 2023 562,603
Disposals (7,772)
Revaluations 50,473
At 31 December 2023 605,304
NET BOOK VALUE
At 31 December 2023 605,304
At 31 December 2022 562,603

Page 43

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

12. FIXED ASSET INVESTMENTS - continued

Analysis of investments between funds

UK equities
Non-UK equities
Shares in group undertakings		 Unrestricted fund
£
562,601
-
2
562,603

Shares in group undertakings

The Institute is the beneficial owner of all the issued share capital of Personnel Certification in Non-Destructive 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
14.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors
Bad debt provision
Other debtors
Prepayments and accrued income		 2023
£
55,429
2023
£
429,709
(5,000)
1,531
342,500
768,740		 2022
£
48,664
2022
£
353,572
(5,000)
(554)
321,199
669,217

Page 44

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Trade creditors
Social security and other taxes
VAT
Other creditors
Accruals
Deferred income		 2023
£
162,128
51,251
63,760
23,732
57,062
187,358
545,291		 2022
£
129,790
41,552
49,402
18,818
98,361
123,192
461,115

Deferred income

Balance at
1 January 2023
£
Subscriptions
93,998
Conferences and Events
6,964
Audits
22,230
Total
123,192		 Released
£
(93,998)
(6,964)
(22,230)
(123,192)		 Balance at 31
Deferred
December 2023
£
£
102,894
102,894
72,446
72,446
12,018
12,018
187,358
187,358

The deferred income represents subscriptions, conferences and events, and audits relating to the year ended 31 December 2023.

16. LEASING AGREEMENTS

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

Within one year
OPERATING LEASES - LESSOR		 2023
£
10,000		 2022
£
10,000

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

2023 2022
£ £
Within one year 39,167 47,000
Between one and five years - 39,167
39,167 86,167

Page 45

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

17. MOVEMENT IN FUNDS

Net
movement
At 1/1/23
in funds
£
£
Unrestricted funds
General fund
385,931
448,871
Contingency fund
850,000
-
Future projects fund
726,000
-
Property and other fixed assets fund
1,641,643
-
3,603,574
448,871
Restricted funds
Croxson Memorial Fund
2,810
(750)
BNC for NDT Fund
31
-
Halmshaw Award Fund
2,709
(580)
The Nemet Award
2,119
(815)
7,669
(2,145)
TOTAL FUNDS
3,611,243
446,726
Net movement in funds, included in the above are as follows:
Incoming
Resources
resources
expended
£
£
Unrestricted funds
General fund
3,600,027
(3,201,629)
Restricted funds
Croxson Memorial Fund
-
(750)
Halmshaw Award Fund
-
(580)
The Nemet Award
-
(815)
-
(2,145)
TOTAL FUNDS
3,600,027
(3,203,774)		 Transfers

between

funds
£
(303,801)
-
318,000
(14,199)
-
-
-
-
-
-
-

Gains and

losses
£
50,473
-
-
-
-
50,473
At
31/12/23
£
531,001
850,000
1,044,000
1,627,444
4,052,445
2,060
31
2,129
1,304
5,524
4,057,969

Movement
in funds
£
448,871
(750)
(580)
(815)
(2,145)
446,726

Page 46

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

17. MOVEMENT IN FUNDS - continued

Comparatives for movement in funds

Unrestricted funds
General fund
Contingency fund
Future projects fund
Property and other fixed assets fund
Restricted funds
Croxson Memorial Fund
BNC for NDT Fund
Halmshaw Award Fund
The Nemet Award
TOTAL FUNDS		 At 1/1/22
£
3,137,133
-
-
-
3,137,133
2,810
31
3,860
4,292
10,993
3,148,126		 Net
movement

in funds
£
466,441
-
-
-
466,441
-
-
(1,151)
(2,173)
(3,324)
463,117		 Transfers

between

funds
£
(3,217,643)
850,000
726,000
1,641,643
-
-
-
-
-
-
-
At
31/12/22
£
385,931
850,000
726,000
1,641,643
3,603,574
2,810
31
2,709
2,119
7,669
3,611,243

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
£
3,486,376
-
-
-
3,486,376
Resources

expended
£
(2,985,322)
(1,151)
(2,173)
(3,324)
(2,988,646)
Gains and

losses
£
(34,613)
-
-
-
(34,613)
Movement
in funds
£
466,441
(1,151)
(2,173)
(3,324)
463,117

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.

The Contingency fund represents the reserves policy.

Page 47

continued...

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 DECEMBER 2023

17. MOVEMENT IN FUNDS - continued

The Future projects fund represents projects in future years to which the organisation is committed.

The Property and other fixed assets fund represents the amount of reserves tied up in fixed assets.

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 £107,303 (2022: £94,864).

19. RELATED PARTY DISCLOSURES

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

Institution of Mechanical Engineers TWI

Lavender International NDT Ltd

The Institute provided services totalling £749,248 to these companies in the year.

Total services provided to the Institute from these companies in the year was £300.

At the year end the Institute was owed £95,661 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 48

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

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
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
Carried forward		 2023
£
57,962
2,181
60,143
233,722
-
33,006
36,120
19,811
9,097
157
137,920
32,427
2,484
3,020,069
15,071
3,539,884
3,600,027
7,775
1,296,199
130,466
107,303
42,224
146,812
119,168
46,527
8,534
87,798
13,863
60,789
19,475
204,955
2,284,113		 2022
£
57,629
1
57,630
218,333
554
36,846
37,143
23,150
10,133
621
328,594
114,199
2,167
2,648,625
8,381
3,428,746
3,486,376
7,791
1,158,041
117,716
94,864
34,190
150,582
112,561
43,883
15,250
211,792
9,252
15,942
8,525
133,782
2,106,380

This page does not form part of the statutory financial statements

Page 49

THE BRITISH INSTITUTE OF NON-DESTRUCTIVE TESTING LIMITED

DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2023

Charitable activities
Brought forward
PED Solution project costs
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 before gains and losses
Realised recognised gains and losses
Realised gains/(losses) on fixed asset
investments
Net income		 2023
£
2,284,113
4,524
14,932
409,781
14,024
12,618
1,417
21,014
7,582
9,215
2,779,220
23,098
48,987
19,666
143,540
(1,591)
47,148
82,992
363,840
33,875
6,816
12,248
19,064
3,203,774
396,253
50,473
446,726		 2022
£
2,106,380
20,210
16,970
316,787
12,750
27,548
5,576
10,355
8,599
18,194
2,543,369
14,725
40,264
18,640
129,545
(4,425)
100,691
87,716
387,156
32,231
6,370
11,729
18,099
2,988,646
497,730
(34,613)
463,117

This page does not form part of the statutory financial statements

Page 50