INGORPORATED fy3 3AILoQ CuiouE The Institute of Automotive Engineer Assessors Financial Statements For 31 December 2021 A Company Limited by Guarantee and not having a Share Capital Company registration Number.. 0350568 Charity Number: 273452
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee Financial Statements Year ended 31 December 2021 Conlents Pag• Memters of the council and professional adviser5 Council's annual report {incorporats'ng the directors report) Independent audrtors, port Statement of financial activitSes 13 Ststement of financial position 14 Accounting policies 15 Notes to the financial statements 18
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee Members of the Coun¢ll and Professional Advisers Year ended 31 December 2021 The Members of the Councll Presidenl and ChaimHn D Power Past president PresKlent Elect A Simpson D Punter Members C Jones L Minton P Roath G Hunt M Wells J Dangerfield D Beime C Robins P Briggs C Aplin Officern Finance Officer Company Secretsry G Hunt A Calms Company Numbèr 0350568 Charlty Number 273452 Regl8ter8d Offl Pennyroyal Court Station Road Tring HP23 5QY Audltors G P Financial Management Ltd 8 The Okl Yard Lodge Fam) Business Centre Wolverton Road Castlelhorpe Milton Keynes MK19 7ES Bankern Lloyds TSB 22 Conduit Street Lichfield Staffordshire S136JS
The Institute of Automotive Engineer Assessors A Company Limitsd By Guarantee Tho Councll's Annual Report (Incorporatlng the Dlrèct¢)TS' Report) Yoar ended 31 DK&mber 2021 The Council members, who are also Directors for the purposes of the Companies Act, psent their report and the financial statements of the charity for the year ended 31 December 2021. Ob ectlvos & actlvltl88 Prlnclpal actlvlty The activity of the Institute continues to be thal of a professional association, the main object of which Is to promote and develop for the public benefit the science of the design, manufacture and related lechnology of motor vehicles and the s¢ien¢e of pair of, and risks arising from. the use of road vehicles and to further Publ edu¢alion therein. To this end, the Instslute designs and sets a syllabus for students to study and prepare for the Inslilute's written examinabons. The Institute encourage and approve Education Institutes and private Organisations to offer the Instrtute exams and a distance leaming package Is available with tutor guidance for indivalS. The Institute also organises a practi¢al competence assessment and during since late 2017 the revised Ctsje of Practice for disposal of motor vehicle salvage named the Insbtute as a arnIng body whorn operates asse88ed outcomé tests'ng of vehicle damage assessors wishing to be endorsed for calegorising salvage. Aims and obJectlve8 During 2021, we conts'nued to be faced with challenges arising from Ihe Global Covid-19 Pandemi¢ and the restrictions on meeting and the movement of people that arose. The 'M of the Trustees remained as ever lo ensure that the Institute continues to provide relevant and coherent membership and education standards that support the Members and complemented the industries where they work. The ongolng focus of the Council was to promote the Education Standards and Qualifications for membership and continue to align these to membership grades all while adhering to the rèlevant restrictions and govemmenl guidelines. The main area of development in 2021 was the continued use of technology to allow access to leaming material for professional qu81iffications. training and CPD for all members and students where éver they are located. The ongoing legal review of the govemance documents was also a substantial activity in 2021, reviewing the govemance of the insts.tule to both fvture proof the Institute and allow for the govemanee to work in a nKre agile manner lo meet the needs of a rapidly changing industry. IAEA continue lo be committed to providing the motor vehKle repair industy, insurance industry. legal profession, motor vehicle salvage operators and members of the publi¢ who require a reliable high quality professional assessment service wrth independent infomialion and guidance. Compliance to the Institute rules and requirnents in the use of the Institute logo and the use of post-nominal letters continued to be pursued ngorousty to ensu the confidence of all concemed. The Trustees have had due regard to the Charity's Commission's guidanca on public benefit in exercising their powers or dutses. Achlevements and rfornian¢e Educatlon, Tralning and Benchmarklng The Council through education group continues to work on updabng the education syllabus, supwrt to students and availability of the exams. Accessibility and ffjcognItn in the market being the priority. The Institute have been aclNely promong the benefits of Institute membership to organisations and industry bodies where possible and endeavours to continue to raise its profile within the industy.
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee The Councll's Annual Report {Incorporatlng the Dlreetors, Reporti Year ended 31 De¢¢rnber 2021 The investmenl in digital platf0M continues to allow us to be agile in delivenng examinats'ons lo both exists'ng students and new candidates, removing barriers to enty such as physical distance frorn exam centres. The education working group continue lo explore the lechnology required deliver the practlC81 examinations and -a¢credrtaIiOnS through digital platfoms. Use of the online assessment plattomi is being extended to include revision support and this will be fijrther expanded in 2022. The institute conbnues to make use of the technology developed and implemented during the pandemic to deliver CPD on the websrte and other online channels. lIst embracing the advances in technology made in the delivery of CPD online. Council are keen lo retum to face lo face engagement with members when possible. However where it can be accommodated there will be a hybrid approach to make the resources as accessible as possible to all members. The number of members using the CPO datsbase, MyCareerPath continues to grow steadily. The platform allows members to upload and track their CPD and to create and download reports lo evidence the work they completed if necessary. There is also a facility to audit adherence lo membership CDP requirements which will be an aa for focus in the coming years. The Insty'tute ¢onb'nues lo provide the independent validabon of thè IMI Vehicle Damage Assessments (VDAI 8enchmarks. The IAEAIIMI strategy document has been subject lo a thorough review in collaboration with the IMI to ensure the validation process deliver¥ the desired outcomes lo the highest standards. In line with the drive to use technolcgy for efficiency, several parts of the process hove been automated. This work with the IMI dernStrate$ the Institute's standing in the Sector. The Appropriatety Qualified Person (AQP) eompetency assessment moved onto the new assessment sothvare and is now available using remote inv1gilat)n which allows for more frequent availability of assessments. The invigilated assessments are still available through the approved exam ¢enlres, the remote invigilation provides more options for the candidates when kIng their asses$menL Publlc Relatlon8 and Morketlng A conference and 90th year anniversary evident is scheduw for Saturday 171h September 2022. After the 2020 decrsion to suspend all lonal meeb.ngs in line with govemment guidelines and best practice. the regions are being supported ty natal online CPD events with the facility for a informal breakout session for each region. This fomiat vms very successful with gojd attendance and feedback from members. Followng Ihe recent $tri"0nS of physical events, it is hoped that the ions will be back coordinatsng their own events soon. It is the intentson that these physical events will continue to be supplemented by duital events going forward due to their popularity. Council members have been activety raising the profile of the Insbtute with a range of bodies, A number of key events We identrfied for attendan¢e in 2022 to raise the profile and awareness of the inslitute, These included. . Attending the Frx Auto conference on the 2nd and 3rd ol March . Attending the BIBA conference on 11th and 12th May b continued swnsorship of the VDA Bodyshop Award During 2021 worf( continued io trademark the institute natre and logo to protect the intellectual property rights of the Institute and prolect the reputation in the induslry. This wll also enable inappropriate use of the name nr logo lo be more vigorously pursued. wor.ng with the Solicitors this w(Yk will be completed earfy in 2022.
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee The Councll's Annual Roport (Incorporating the Dlrectors, Report) Year ondod 31 December 2021 Flnanclal rnvlew Results for tho year The principal source of income lo the chartty conkn'nues to be member subscriptions, supplemented by its education activittes and that generated from the provision of advefts'sing space within the members bi-monthly joumal, as indicated below there has been a shrft in the income for 2021. The Council closely monrtor the lnsts.tute finances to ensure there is continued sustainability- The result of our activities, the surplus for the year 2021 arrthinled to £5,338 12020.. deficit £17,437}. All activities relate to unresth.cted hjnds. A long-tem objective for the Insb'lute has been the consolidation of the financial base. building on the achievements of previous years and lo prepare for any possible decline in membership and other income due to the trUduring within the automotive 8rsd insurance sectors. th AQP Re-accreditalion due to be required latter in the year 2022 shoukl start to see an Incr&asè in income from this aa. Reseryos pollcy The Council has r8viewed the chanty's requireménts for reserves taking acnt of the identified risk8 to the organisation. The policy has been reviewed by the ¢ouncil and in the existing economi¢ climate il was agreed a policy should be adopted whereby the unrestricted fvnds of the charity should represent a minimum of tsvo years of its annual expendtlure to support working capital requirements such that in the event of a significant fall in its current inwme levels andlor membership; thereby, the Instslute could continue to support the membership. The Council does not anticipate a significant change in the company's charitable activities for the forthcorning year and consequenlty considers that the profile of expenditure in the past tsvo years is reasonable gUe to assessing the charity's requirements. On trtat basis il Is considered the charity should have a target reserve level of befyveen £475,CN)0 and £525,000. The current level ol free reserves amounts to £642,867 lexcluding fixed assets) 12020.. £634,816}, which is ab)ve thls prescribed limit. However, as the Institutes membership has decreased. it was considered fortunate that additional reserves were held last year lo both offset any drop in income and to allow us to continually invest in inth'ab"ves to increase membership in other geographies and deliver igh quality services lo members. This has been acknowledged by the Council and the ongoing Business Revwi will consider the changing structu$ in the automotive sector and the position of the Institute. Oue to the continued uncertainty surrounding the re¢overy following the Covid-19 pandemic, the more recent war in Ukraine and high levels of inflation. and rec¢yJnising the recessionary pressures that the remedial actions such as increasing of interest rates F)ose lo the wider economy, Council deem it appropriate to tread earefvlly as we naVate these uncertain ts'mes. Council will consider augmenting tho service arrangements to members and ihe resources of the Institute to assist in maintaining a salisfaclory level of reseNes. There is a contsnuing expectation that due lo the addItnal resource required for the updab'ng of our infrastructure. implications of the slow recovery of the global economy post pandemic, our selVeS should remain higher than target levels. Couneil will continue to exercise sound jUdgemt and prudence when considering additional expenditure.
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee The Councll's Annual Report {Incorporatlng the Dlreclors, Report} Year•nded 31 December 2021 Council will contlnue to use reserves above the target levels to invest in educational resources for both existing and new members as well as promotion of the institute in line with our aims and objectives. Council will exercise prudence in investing reserves and endeavour to balance this with Close monitoring of the recovery on both the domesti¢ and wider global econoMs. Investment powers In Case the Insbtute shall tske or hold any propety vthich may be subject to any trusts the Instytule shall only deal with or invest the same in such manner as allowed by law, having regard lo such trusts. Plans for tho fu Medlum and long tènn strategy In 2021 the Council continued to refine the Stratégic Revlv4V and make recommendats'ons for the rolling 5 year plan. The Institutes IT infrastructure (membership database and websilel underwent significant development in 2020 and provides the institute with the capability to develop educations support and communications wth both student members and qu81ified members. This development work pul the institute In a strong position to 0Fe during the continued restn'cts'ons on face lo face events in 2021. The Council in reviewing the Institute's 5 year plan. have agreed that the educational material and processes require further ongoing review and update to maintain our high standards. The education working group a continuing lo undertake a fvndamentsl review of the leaming materials and syllabus to explore the possibility of modulansing the leaming malenal$ and the adoption of online re- accreditations for pract1 exams. This revw is ongoing and a priority for 2022 Council invested In otta[ exam capabilty and CPO events which was rolled out in 2020 and continued to be a valuable resource in 2021. This will be continued durin9 2022 and may requlre fvrther resource. it may be necessary to engage external SourceS lo assist in this, and this is lo be funded from the excess free reserves refer to in the above reserves policy. Council continued to support the decision to not hold physical regional events unts'l such time as the safety of speakers, members and guests is F#)ssible. Wrth this in min¢J plans were started to hold an event lo celebrate the 90th annwersary of the institute in the latter half of 2022. The 90th celebrations are planned to take place In September 2022 and will include both a confeonce and awards dlnner. This is likely to be the first physical event the inslrtute has hosted for three years and is planned to offer both CPD actsvty and also celebrate the achievements of members and the institute over the last go years. Council have acknowledged the a¢ce$sibilrty provhd by delNerlng events online and the demand for a hybThd approach going forward, this will be included in any plans for CPO activity that had traditional been delivered at physical events across the regions. This may require inve5trnenl in resources in the future lo ensure we deliver professional contenl, making the content available to all members across drfferent platforms is a priority. The engagement with OfQual regarding recogntlion as an awarding body continues and we have reached out to case officer to open lines of communi¢ab"on in anticipation of completion of the legal review of the governance d(UMentIon The pur5uII of this obJe¢ts've and the recognition that it will bring will enhance the member qualifications and status and will help attract new members both domestically and intemationalty. The need to pursue this objective has has been reinforced in recent discussions wth potential intematibnal reg9. The overall objectives will be to continue to provide an Institute that benefits the membership. achieves the principal objects. provides a clear public benefft and remains strongly independent.
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee The Councll's Annual Report Ilncorporatlng the Dirn¢tors' Roport) Year ended 31 December 2021 tructure ovemanc• and mana emen Govemlng documonl and constitution The company IgiStration number 03505681. which is limrted by guarantee and has no share capital, is govemed by ils Memorandum and Articles of Asso¢kqtion. It is a registered charity under the Charrty Commission {charity registration number 2734521. Nothing contained within the Memorandum of Association shall be deerd to aulhorise the Institute to engage in any trading activities on a commercial scale. The objects of the Institute shall not extend lo the fwotiation of relaon$ beeen Wofkers and employers or organisalions of workers and organisations of employers. The income and propety of the Institute. whence so ever derived shall be applled solely towards the promotion of the objects of thè Institute and rFO proportion thewf shall be paid or transferred directly or indirectly by way of dividend, bonus or otherwise howsoever by way of profit, to the members of the Instilule. Organlsatlon The organlsallon is governed ty a Coun¢ll of up to thirteen Corporate Members elected by the membershlp and a Council Appointed Finance Officer,. there is an Executsve lo progress matters approved by Council. The are three Groups, appointed by Council to provide policy guidance. Regions operate throughout the UK and Eire., each having their own elected oiTicers and committee. who must ensure that their local affairs meet the requirements of the Institute Memorandum of Association and Code of Conduct. The Insb'lute periodicalty awards grants to those Regions that submit valid claims of expenditure in relation to its activits'es in profflon of its charitable objects. Recrultment and appolntmont of Trust••8 TNstees are nominated for appointment to the Councll annually by Corporat8 Members. Nomlnaled candidates are then formally elected al the Annual General Meeting. R18k managemonl The Council is responsible for the management of the business risks faced by the charity. Business sks are identified, assessed and controls established throughout the year and discussed al the Council meetings. A risk reglster has been in operation since 2017, this register is updated on an ongoing basis and is reviewed by Council at each meeb'ng to ensure that there a adequate control processes lo manage risk. The recovery post Covid-19 Pandemic is Still a very present and real risk at the time of authoring this report. Council continue to hold more frequent wrtual meetings lo review and assess e0Very of both the vehicle damage assessment industy and implications on the income of ¢hantable organisalions. The pandemic has enforced business closures and changed working pattemsllocation with an increase in working remotely. The pandemic has, without doubt. had an effect on the work practices of members. many people are now worknng from home on a pemanent basis. The economic environment has been impacted by the pandemic, supply chain delays and in the UK also by the end of the Brexit Iransitlon penod. these factors are inffuencing the cost of motor claims and claims inflation is forclng insurers lo look for efficiencies in their process. The Institutes membership largely provides services relating to vehicle collision damage and damage repair and the impact of claims inflation on these roles is undear.
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee The Councll'8 Annual Report (In¢ofj)oratlng thè Dlrector8' Report) Year ended 31 December 2021 To assess the level of impact that claims inflation may have on the industy which employs or uses the seNices of the instttute members, we have factored in multiple nariO$ regarding rnembership levels into our rolling 5 year business plan. This scenario pL4nning helps Council assess the possible effects in the medium to long temi. Further to the effects on current MeMbs. the intske of new students at Technical University Dublin ITUDI have not recovered to the numbers befo Ihe pandemic wth the delivery of support remaining online in 2021. Continued investrnent in the development of digital plattom)s for the delivery of leaming materials and examinations is helping to mitigate any reduth.on in edUcatn activity and open the qualification pathways to intemab'onal students in 2022. Benevolent Fund Members of the Instrtvte may volunlarity donate an additional payment wtth their annual subscrfptions into The Insb'tute of AulorTh)tive Engineer Assessors Benevolent Fund. This fvnd is 8 registed charity {regislrabon number 10651021, established by a Declarats'on of Trust. The purpose of the Fund is the relief of povety amongst past and present members of the Institute of Automotive Engineer Assessors or their dependanls. The Benevolent Fund Trustees a appointed separately lo Council members and have delegated the adminislration of the Fund to the Inslrtute. The assets and liabilitles of the fund are cOnsequenY not recorded wrthin the financial statements of the Institute. At 31 December 2021 the fund had accumulated reserves of £71.681 {2020'. £70.122). Reforenco and admlnlstratlon Legal 8tatU8 The company's registered name Is The Insts'tule of AutorTh)ttve Engineer Assessors. Its company registration number is 03505S68 and its chanty registration number is 273452. The address of the registered office and the names of TrusteesiDireclors are listed on page 1 of this reFQrt. The Councll mèmbern The Council members who served the Charity durfng the period are listed on page 1. Council members are appointed in accordance with the Company's Memorandum and ArtleS of Association. The Company is limited by guarantee and no councfl rrber has a beneficial interest in the capital of the charllable company. All Council members are directors of the Company. Statement of Councll's Re8ponslbllltles The trustees, who are also the directors for the purposes of company law. are responsible for prepanng the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounbng Standards (Unrted Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare financial statements for each financial period that give a true and fair view of the state of affairs of the Chantab rnPany and of the incoming sOUrceS and application of resources. including the income and expenditure, of the chantable company for that period. In preparing those finanaal staternents, the truslees are required to.. select suitable accounb'ng Oicies and then appty them con5iStenUy- compty wrth applicable accounting standards, including FRS 102, subject to any material departures disclosed and explained in the ffinanaal slalemenls,. state whether a Statement of Recommended Practice (SORP) applies and has been followed, subject to any malerial departures which are explained in the financial statements make judgements and estimates that are reasonab and prudenL" prepare the ffinaneial statements on a going coneem basis unless it is inappropriate to presume that the charitable company will continue in business.
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee The Councll's Annual Report Ilncorporating the Dlroctors, Report) Year ended 31 December 2021 The trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any lime the flnancial position of the charitable company and to enable them to ensu 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 tor the prevention and detection of fraud and other irgUIanties. 8tatoment of dl$¢losure of Infofmatlon to audltors We. the trustees of the company who held office at the date of approval of these Financial Statements as set out above each confimi, so far as we are aware. that: there is no relevant audit Infonr1on ofwhich the company's audrtors are unaware. and we have taken all the steps that we ought to have taken as directors in order lo make ourselves aware of any relevant audrt infomwtion and to establish that the company's auditors are aware of that informatn. Small company prov181on8 This report has been prepared in accordance wilh the special provisions for small companies under Part 15 of the Companies Act 20C6. Registered office.. Pennyroyal Court Station Road Tring HP23 SQY Sned by order of Ihe trustees A Calms Company Secretary Approved by the trustees on .
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee Independent Audltors. Report to Ihe Members Year ended 31 Docember 2021 Opinion We have audited the financial statements of The Institute of Automotive Engineer Assessors I'the company'l for the year ended 31 December 2021 whh comprise the Statement of Financial Actsvities {including Income and Expenditure Accounll. the Statement of Financial Position. and notes to the financial statements, including significant accountin9 policies. The financial repo.ng framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 'The Financial Reporting Standard Applicable in the UK and Republic of Ireland, {United Kingdom Generally Accepted Accounknng Practice). In our opinion the financial statements: give a true and fair view of the state of the charitable cgmnpany's affairs as al 31 December 2021 and of its incoming sourceS and applicats'on of resources, including its Income and expenditure. for the year then ended.. have been propedy ppared in accordance with United Kingdom Generally Accepted A¢counting Practice." arKI have been prepared in accordance wilh the requirements of the Companies Act 20c. Ba818 for oplnlon We conducted our audit in accordance with Intemational Stsndards on Auditsng {UKI IISAslUK}l and applicable law. Our responsibilities under those Standards are fjJrther described in the Auditor's Responsibilities for the audit of the financial statemènts sectron of our report. We are independent of the charitable Company in accordance wrth the ethical requirements Ihal are levant lo our audit of thè financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance wth these requirements. We believe that the audit evKlence we have obtained is sufficient and appropriate to provide a basis for our opinion. Coneluslon• relatlng to golng concem In auditing the financial statements. we have concluded that the trustees. use of the going concem basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfomied. we have not identified any material uncertainties relating to events or conditions that, individually or collecbvety, may cast significant doubt on the charitable ¢ompany's ability to ntinUe as a going concem for a period of al least tsvelve months from when the financial ststements a aulhorised for issue. Our responsibil.eS and the responsibilities of the trustees wrth respect to going concem a descrlbod in the relevant sections of this repcyt. Other Infomiatlon The other infonnatn comprises the information included in the trustees annual report, other than the financial statements and our auditorfs report thereon. The truslees a sponSible for the other information. Our opinion on the financial slalements does not cover the other infomiabon and, except to the extent olherwse explrcitiy stated in our pOrt. we do not express any fomi of assurance conclusion thereon. In connection with our audit of the financial ststements. our responsibility is to read the other information and. in doing so. consider whether the other infonnabon is materialty inconsistent with the financial statements or our knovAedge obtained in the course of the audrl or otherwise appears to be materially misststed. If we identsfy such matenal inconsisten¢ies or apparent material misstatements, we are required to detennine whether the is a matenal misstatement in the financial statements or a material misstatement of the other InfOnatiOn. If. based on the work we have performed, we conclude that there is a material misstalemenl of this other infomwtion, we are required lo report that fact. We have nothing to reF(Jrt in this ward.
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee Independent Audltor8' Report to the Membe Year ended 31 DeComr 2021 Opinions on other matters prescribed by the Companles Act 2006 In our opinion. based on the work undertaken in the course of the audit: the infomiation given in the trustees. annual report {incorporaling the directors, report) for th8 financial year for which the financial statements are prepared is consistent with the financial statements.. and the Injstees, annual report has been prepared in awrdance wth applicable legal requirements. Mattera on whlch wo arn requlred to report by ex¢eptlon In the light of the knowledge and understanding of the company and its environment obtained in the course of the audiL we have not identsfied matenal misstatements in the trusteès. annual report. We have nothing lo report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion.. adequate accountsng records have nol been kept, or rern$ adequate for our audit have r*ot been received from branches not visrted by us., or the financial statements are nol in agreement with the accounting COrdS and retums., or certain dlsclosures of trustees, remunerab'on specified by law are not made., or we have nol received 811 the infomation and explanatsons we require for our audit., or the tnjslees were not entitled to prepare the financial statements in accordance with the small companles regime and tske advantage of the small cc#rpanies exemption in preparing the Trustees, Annual Report. R88pon8lbllltS•8 of tru8tee8 As explained more fully in the trustees, responsibilrties statement set out on pages 7 and 8. the trustees {who are also the directors of the charitable company for the purposes of company lawl are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair vlew, and for such intemal control as the trustees detemiine is necessary lo enable the pparatIOn of financ1 statements that are free from material misstatement, whethèr due to fraud or eTror. In preparing the financial statements. the trustees are responslble for assesslng the chantable company's ability to continue as a going concem. disdosing. as applicable, matters lated lo going con¢em and using the going ¢on¢em basis of accounting unless the trustees either intend to liquidate the charitable company or lo cease operations. or have no realisbc altemab've but to do so. AudltoV8 rosponslbllftl88 for Iho audft of the flnanclal Statements Our objectives are to obtain reasonable assurance about whether the finanual statements as a whole are free from material misstatemenl, whether due to fraud or error, and to issue an auditor's report 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) wll always detect a materi81 misstatement when it exists. Misstatements can anse from fraud or error and are Conside material if. individually or in aggregate. they could reasonably be expected to Influen the economic decisions of users taken on the basis of these financial statements. Irwularities, including fraud. are Instan of non-compliance wilh laws and regulab'ons. We design procedures in line wth our responsibilrties, ouvined atKive, to detect material misstatements in respect of irregulanties. including fraud. The extent to which our pn)cedures a Capable of detecting Irregularities. including fraud is detailed bekjw. -10-
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee Independent Audltors. Report to the M8mb•rs Yoar ended 31 D•c8mber 2021 The objectives of our audit in respect of fraud, are", to identfy and assess the risks of material misstalemenl of the financial statements due to fraud.. to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks., and io respond appropriately to instances of fraud or Suspected fraud identified during the audrt. However. the primary responsibility for the prevenb'on and detection of fraud rests both management and those charged with govemance of the charitable company. Our approach was as follows.. We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011. the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council We obtained an understanding of how the charitable company Complies with these requirements by discusslons with management and Ihose charged with govemance. We assessed the nsk of material Mitatement of the financial statements, including the risk of material misstatement due lo fraud and how it might occur, by holding discussions with management and those Charged with govemance, and enquiring as lo any kn¢)wn instances of non-compliance or suspected nonvcompliance wrth laws and regulations. We corroborated our enquines through our VIeW of board minutes and the Charity's risk register. We considered the risk of fraud through management override and included a review of any unusual ioumal entries in our audit approach. We also reviewed the charity's procedures for recognition of income and aulhorisation of expenditure and Corroborated thèse controls with 8ample-based testing of source records and analytical review procèdures. There are inherent limitations in the audrt procedures described above. We are less likely lo become aware of instances of nonvcompliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due lo fraud is higher than the nsk of not detecting one resulting from error, as fraud may involve deliberate concealment by. for example, forgery or intentional misrepresentations, or through colluslon. As part of an audrt in accordance with ISAS IUK) we exercise professional judgement and maintain professional scepticism throughout the audit. INe also.. Idenlfy and assess the risks of material misstatement of the financial statements. whether due to fraud or error, design and perfom audil procedures fesp)nsive to those nsks. and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misslalement resulting from fraud is higher than for one resufting from error, as fraud rnay involve collusion, forgery. intentsonal omissions. misrepresentations, or the override of internal control. Obtsin an understanding of intemal control relevant to the audit in order to design audlt pro¢edures that are appropriate in the circumstances. but not for the purposes of expresslng an opinion on the effe¢tiveness of the charitable ccNnpany's intemal control. 11
The Institute of Automotive Engineer Assessors A Company Llmited By Guarantee Independont Audltors, Report to the Members Year endod 31 December 2021 Evaluate the appropriateness of accounting policies used and the reasonableness of accounts'ng estimates and related disclosures made by the trustees. Conclude on the appropriateness of the trustees, use of the going concem basis of accounting and. based on the audit evthn¢e obtsined, whether a matenal uncertainty exists related to events or Conditions that may cast significant doubl on the charitable ¢ompany's ability to continue as a going concem. If we conclude that a material uncertainty exists. we are required lo draw attention in our auditols Frt lo the related disclosures in the financial statements or, if such disclosures are inadequate. lo modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audilorfs report. However, future events or conditions may cause the chanlable company to cease to continue as a going con¢em. Evaluate the overall presentation. stnjcture and contenl of the financial stalemenls, including the disclosu$, and whether the financial statements present the underlying Iransacts'ons and events in a manner that achieves fair presentats"on. We communlcate wtth those charged with govemance regarding. arrhjng other matters, the planned scope and liming of the audit and signifficant audit findings. including any significant deficlenc1&8 in intemal control thal we idenbfy during our audit. U60 of our roport This report Is made solely lo the chantable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that w8 might slate to the company's mernbers those matters we are required lo state lo them in an auditor's report and for no other purpose. To the fijllest extent pemiitted by law, we do not accept or assume responsibility to any party other than the charitable company and chantable company's members as a body. for our audit work, for this reporL or for the opinions we have fomed. There$a-Anne Warren FCA {Senior stalory Auditor) For and on behalf of G P Financial Management Limited Chartered Accountants & Registered Auditors 8 The Old Yard Lodge Farm Business Centre Wolverton Road Casllelhorpe Milton Keynes MK19 7ES 12-
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee Statement of Flnanclal Actlvltles {Includlng Income and Expendlture Accounl) Year ended 31 Decomber 2021 Total Funds {unrostricted) 2021 Total Funds lunrestrictedl 2020 INCOME AND ENDOWMENTS Charltable activltles Members subscriptrons FIEA subscriptions Tuition course and exam fees Salvage code income Conferen¢e in¢ome Fundraising events Other trading actlvltlos Advertising - joumal Inve6tmonts Bank interest received Other Other ¢harilable income 147,756 13.370 12.530 14.820 425 156,983 14,299 13,617 15,390 40 2.019 1,670 117 4,880 195,917 2,768 205,533 TOTAL INCOME EXPENDITURE Ralsing frjnds Charitable activities 2,002 188.577 9,e40 213,330 TOTAL EXPENDITURE 190.579 222.970 NET MOVEMENT IN FUNDS 5.338 117.4371 Totsl funds brought fopward Totsl fund8 earrled forward 646,892 652,230 664,329 646,892 The charity has no recognised gains or lo$$e$ other than the results for the year as set out above. l of the actwities of the charity a classed as continuing. Th• accounting pollcles and notes on pages 15 to 21 fomi part of these financlal 8later,ients. -13-
The Institute of Automotive Engineer Assessors A Company Llmited By Guarantee Statement of Flnanclal Posltlon 31 December 2021 2021 2020 Flxed agsets Intangible fixed assets Tangible fixed assets 3.073 3.811 5,237 4,%0 9.597 6,884 Current asset• Debtors Cash at bank and in hand 54,141 629.842 47.026 653.899 683,983 700,925 Cr¢dltOV8.' amounts falllng due wlthln one y•ar Net current assets 38,637 63,630 637,295 646,892 645,346 652.230 Net a8s•ts Unrestrlcted Fund• General fund Designated fund Net ag8et8 10 649,751 2,479 652,230 844,413 2,479 646,892 These financial statements have been prepared in aOrdanCe wth the special provisions for small companies under Part 15 of the Compan$ Act 20C6. These financial statements were approved by the Council on the their behalf by.. and are signed on Slgn81ure Prfrrt Name Member of the Council Company Number. 0350568 Th• accountlng pollcles and noleg on pageg 15 to 21 forni part of these flnanclal statements. 14-
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee Accountlng Pollcles Year ended 31 December 2021 General Informatlon The charity is a private company limited ty guarantee, wi5tered in England and Wales and a registered charity in England and Wales. The address of the registered office is Pennyroyal Court, Station Road, Tring, Hertfordshire HP23 5QY. Statemont of compliance The charity conslilutes a publi¢ benefit entty as defined by FRS 102. These financial statements have been prepared in compliance with FRS 102, The Financial Reporting Standard applieable in the UK and the Republic of Ireland., the Statement of Recommended Practice applicable lo charities preparing their accounts in accordance with the Financial Reporb"ng Standard applicable in the UK and Republic of Ireland IFRS 102) (Charitses SORP {FRS 10211 and the charitS Act 2011. Basis of accountlng The financial 5ts1ements have been prepared on the historical Cost basi8, as modified by the revaluation of certain financial assets and liabilities and investment properties measured al fair value through income or expenditu. The financial statements are prepared in sterling. which is the fvnctional currency of the enlity. Golng concern The Trustee$ have reviewed the charity's I0Casts. particularty in light of the Covid-19 outbreak and the recovery therefrom. 11$1 il is anlicipaled that there may be some reduction lo income streams of the charity in the short lo medium leryn. as outlined in the selVeS policy on pages 4 and 5 of the Trustees report, the charity's current level of free serveS is considered to be sufficient to enable the charity lo ftslfil its obligations and conts'nue its charitable aclivities for the foreseeable future. The Trustees therefore consider that the applicakn'on of the going conrn conpt is appropriate for the preparation of these financi81 slatements. Cash flow statement The Council has tsken advantage of the exemption in the Charitse8 SORP {FRS1021 from including C8sh flow ststemenl in the financial statements on the grounds that the charity is small. Fund aeeounting Unrestn'cted funds Comprise the accumulated surplus or deficit on the incomè and expenditure account. They are aVailaLe for use al the discrets'on of the Council In furtherance of the general objectives of the chanty. Incom• t)onalions are accounted for when received. All other income is accounted for on an accruals basis. The members, subscription period coincides with the ffinancial year of the charity. As a consequence, any subscnplfons receNed in relation lo the following financial year are deferred and recognised in that year. Oeferred subscription balances are Corded in note 9. Reglons The Insb'lute's affiliated regions operating throughout the UK. are recognised as branches of the Institute in these financ1 statements. -15-
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee A¢countlng Pollcles (¢onllnu•d) Year ended 31 Docember 2021 Expondlturo Expenditure Is accounted for on an accruals basis as a liability is incurred. Expenditure on raising funds includes the Costs associated with the annual charitable dinner, together wrth other fijnctions and general PR aCt'e5. Charitable acb'vrtEs expenditure comprises those costs incurred by the charity in th6 delivery of its activitses and services for ils member beneficiaries. This beirKJ the core activity of the charity. it Includes all of the charity's support costs. Other management and administration expenses include those costs associated with meeting the conslilutional and slalutory reqUIrneAts of the charity such as audit fees and costs linked to the strategic management of the charty. Intsnglbl• assets Intangible assets are initially Orded al cos( and are subsequently stated at cost less any accumulated amorts'sation and impaiment losses. Any intangible assets carried at revalued amounts, are reeorded at the fair value al the dale of revaluation, as detemiined by reference to an active market. less any subsequent accumulated amoftisation 8nd subsequent a¢cumulaled Impairmènt losses. Amortlsatlon Amortisation is calculated so as lo write off the cost of an asset, $$ its ests'mated residual value, over the useful lrfe of that asset as follows: 011 leaming platfomi - 33.3% strayht line Tanglble •88ets Tangible assets a initially recorded at CO81. and subsequenty stated at cost less any accumulated depreciation and impairment losses. Depreclatlon DeplatIon is calculated so as to vnite off the Cost ol an asse( less Tts estimated residual value, over the usefvl economic life of that asset as follows- Computer equipffEnt - 25% reduung balance Office blJrnRure & equipment - 15% reducing balance No depre¢iation is provided on the Regalia assets. The Council recognises that this treatment Contravenes Schedule 1 of the Small Companies and Groups {Accounts and Diredors Report) Regulations 2008, but considers that the absence of such a proviSn is immaterial to the reported results and net assets of the charrtable rnpany. -16-
The Institute of Automotlve Engineer Assessors A Company Limited By Guarantee Aecountlng Pollcles (¢onlln Year ended 31 De¢ember 2021 Financial instrumenls A financial asset or a financial liability is recognised onty when the chanty becomes a paty to the conlraclual provisions of the instrument Basic financial instruments are initialty recognised at the amount receNable or payable including any related transaction costs. Current assets and current liabilities are subsequently measured at thé cash or other consideration expected to be paid or received and nol discounted. Debt Instruments are subsequenvy rneasud at amorts'sed cost. Financi81 assets that are rneasured at cost or amoTtised cost are vieWed for objective evidenc8 of impairment al the end of each reporting date. If the is objeclNe evidence of impaimienl, an impairment loss is reeognised under the appropriate heading in the siatement of financial activities in which the initial gain was cOgnISed. Any reversals of impairment are recognised immediately, lo the exlent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impaiment not pViOUSlY been recognised. Crltlcal aeeountlng e8tlmata8 and area8 of Judgemenl In preparing financial stalemenls rt is necessary lo make certain judgements. eskn'mate8 and assumptions that affect Ihe amounts recognised in the financkql statements. In the view of the trustees in applying the accounting poIleS adopted. no judgements were required that have a signrficanl effect on the amounts recognised in the financial $tslements nor do any eslimales or assumption8 made cary a signfficant risk of material adjustment in thè next financial year. Taxatlon No provislon has been made for taxation as the company's charitable status renders il exempt from UK direct taxation. Llmlted by guarnnt•• The company is limited by guarantee and has no Sha capital The liability of each member in the event of a winding up is Ilmited to £100. The company has obtained the consent of the Registrar of Companies to be exempt from the requirement to use the word "Limited" in its nanE. -17-
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee Notes to the Flnanclal Statements Year ended 31 December 2021 Not movement In fund8 2021 2020 Net movement in lunds is slated after charging". Auditors remuneration Statutory audit services Other assurance services Depreciation Amortisats"on 2,007 2.572 548 2,164 1,815 2,094 591 1.263 Ral6lng fund8 2021 2020 Public latIonS Fundraising events 2,002 9,640 2.002 9,640 Charftsblo aetlvltles 2021 2020 Education and training S81vage code exam and project costs Standards development 8enchmatking verification costs Conference costs Support costs FIEA costs RegionaVbran¢h expenditure Management and administratn costs Audit fees Travel and council members expenses.. 47.895 2.367 6.360 1,975 {8S9} 48,318 8,937 25 70,651 2,007 43,601 3,288 28,491 1,513 1,361 50,854 9.048 855 70.363 1.815 2.181 188,577 213,330 18-
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee Notos to thè Flnanclal Statements {Ctin) Year ended 31 Docombor 2021 Total expendlture Depreclatlon 2021 2020 Other costs 2021 2020 Total 2021 2020 Direct charitsble expendrture Fundraising and publicity Management and administration 2.712 1.854 112.31A 137,137 115,018 138,991 2,002 9.640 2,002 9,640 73.559 74,339 73,559 74.339 1,854 187,867 221.116 190.579 222.970 2.712 Employment coots The charity had no employees during the current or preceding year. The members of the Council received no remunerydtion during the year. Expenses lotalling £1,445 {2020'. £1.7411 were 1mbUl$ed to 312020'.81 Council members. Intanglble flxed 0gth8 Dlgltal Learnlng Platforni Total Co8t8 At 1 January 2021 Addits'ons 6,500 6,500 At 31 D•¢•mb•r 2021 6,500 6,500 Amortlsatlon Al 1 January 2021 Charge for the year At 31 December 2021 1.263 2.164 1,263 2,164 3,427 3,427 Net 8ook Values At 31 December 2021 3,073 3,073 At 31 December 2020 5,237 5,237 -19-
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee Noto8 to thè Flnanclal Statements (c)1u8d) Year ended 31 December 2021 Tanglble flxed assets Computer Office Equlpment Fumiture and Equipment R•galia Total Costs At 1 January 2021 Addibons 21,715 6.111 1.671 29,497 At 31 December 2021 21.715 6,111 1,671 29,497 Deproclatlon At 1 January 2021 Charge for the year Al 31 December 2021 20.266 362 4.872 25.137 548 20,628 5,058 25,685 Net Book Valu•8 At 31 December2021 1,087 1.053 1,671 3,811 At 31 December 2020 1.450 1,239 1,671 4,360 Oebtor4 2021 2020 Trade deblors Other debtors Prepayments and a¢¢rued Income 3.205 11,955 38,981 54.141 240 4,538 42.248 47,026 Credltors". Arnounts falllng due wlthln one year 2021 2020 Trade Creditors Other lax and social securtty Other creditors Subscriptions in advance Ac¢ruals and deferred income 2,281 27,737 3,209 30,147 3,000 978 31.565 3.350 38,637 63,630 Included in other credrtors is £2.632 {2020'. £4781 due to the Institute of Automotive Engineer Assessors Benevolent Fund. which is administered by the charity. The amount represents the net balance of donab'ons receNed by the tharitable company bul not transferred al 31 December 2021 on behalf of that fund.
The Institute of Automotive Engineer Assessors A Company Limited By Guarantee Notes to the Flnanclal Statements (witrnued) Year endod 31 DKofflber 2021 10. Reconclllatlon of movement In total fund8 Unrestrlcted Funds General Deslgnated 2021 2021 Unrestrfeted Funds Genernl Deslgnated 2020 2020 Opening total funds Net inwmelldeficit) for the financial year 644,413 2,479 661,850 2.479 5.338 (17.437) Transfers Total funds Carried forward 649.751 2.479 644.413 2,479 All assets of the charity represent unreslricted funds. The designated fund represents amounts previousty received 88 unrestricted income earmarked for the delivery of learning materials and payment of other Institute fees for the progression of membership of employees of the CoQperative Group. 11. Taxatlon The Institute has charitable status and is therefore exempt from corporatson tsx. 12. Related party transactlons During the period the Company had the following transactions with lated partles. Education and Tralnlng Services.. A Cairns (A VC Training and Consuftancy) 5,070 21