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2023-06-30-accounts

Approved 23/3/24

Registered number 1240103 Charity number 275206

Institute of Corrosion

(A company limited by guarantee)

Report and Financial Statements

30 June 2023

Approved 23/3/24

Institute of Corrosion Report and accounts Contents

Page
Company information 1
Trustees' report 2
Independent Examiner's report 8
Statement of Financial Activities (including Income and Expenditure Account) 9
Balance sheet 10
Notes to the accounts 11

Approved 23/3/24

Institute of Corrosion Company Information

The Trustees, who also act as Directors for the purpose of the Companies Act 2006, present their Report and Unaudited Accounts for the year ended 30 June 2023, prepared in accordance with the Statement of Recommended Practice SORP 2019 Accounting for Charities (FRS 102).

Trustees/Directors

Trustees/Directors
President S Tate
Vice President Y Gao
Honorary Secretary J Lomas
Immediate Past President B Hedges
Non voting member
Treasurer I G Winning (George)
Members of Council (Ex-Officio)
Chair PDTC D Horrocks
Chair PAC P Lambert
Chair TAC L Fullalove
Chair CED N Smart
Chair CSD D Burkle
Chair Young ICorr J McGladdery
Technical Editor CM S Khan
Chair Aberdeen Branch M Ejaz
Chair London Branch I G Winning (George)
Chair Midlands Branch B Whittaker
Chair North West Branch G Brown
Chair North East Branch M Fletcher
Chair Yorkshire Branch R Green

Ordinary Members of Council (Elected and co-opted)

J Fletcher D Harvey K Harold B Peters R Edwards B Wyatt D Harrop I G Winning (George)

Accountants Hickeson Boyce 68a High Street Stony Stratford Milton Keynes MK11 1AQ

Bankers

National Westminster Bank 27 High Street Leighton Buzzard Bedfordshire LU7 1DX

Registered office

Corrosion House 5 St Peters Gardens Marefair Northampton NN1 1SX

Company registration number 1240103

Charity registration number 275206

1

Approved 23/3/24

Institute of Corrosion Registered number: 1240103 Trustees' report for the year 1st July 2022 to 30th June 2023

Structure, Governance and Management

Governing Documents

The Institute of Corrosion ("the Institute") is a charitable company, limited by guarantee, incorporated on 12 January 1976 as the Institution of Corrosion Science and Technology and registered as a charity on 15 March 1978. The company was established under a Memorandum of Association, most recently amended at the AGM on 19th November 2020, which delineates the objects and powers of the charitable company, and is governed under its Articles of Association, most recently amended at the AGM on 19th November 2020.

In the event of the company being wound up, each Member undertakes to contribute to the assets of the company an amount not exceeding £5 to meet the debts and liabilities of the company.

Organisational Structure

The President, who acts as the Chief Executive of the Institute, reports to the Trustees, who form the Management Committee. In turn, the Trustees report to Council, who are the ultimate governing body of the Institute and who meet at intervals not exceeding 7 months. Membership of Council comprises the Trustees and nominated representatives from the standing committees, branches and divisions of the Institute and up to 12 elected individual members of the Institute.

Recruitment and Appointment of Trustees

The Directors of the Institute are also Trustees for the purposes of charity law and, under the Articles of Association, act as the Executive Management Committee. The President is elected for a 2-year term at the Annual General Meeting (AGM); normally the Vice-President shall be a candidate for election as President while the retiring President is the candidate for Immediate Past-President, unless other arrangements are necessary. Other Trustees are elected annually at the AGM and existing (non-Presidential) Trustees may stand for re-election.

Trustees, as members of the Management Committee, are required to have a broad skills base and suitable persons are drawn from industry, private consultancy and academia. Trustee vacancies are generally filled by approaching individuals who are thought to offer particular skills and/or who are able to maintain the balance of skills available to the Management Committee. Vacancies for all positions are also sought generally from the membership through a notice in the Institute's publication "Corrosion Management" and on the website of the Institute at the same time that the notice for the AGM is promulgated.

Trustee Induction and Training

Most Trustees will already be familiar with the operation of the Institute from prior service in a local or regional branch, division or committee. However, after their appointment new Trustees are given a brief familiarisation session by the President that is intended to cover:

2

Approved 23/3/24

Institute of Corrosion Registered number: 1240103 Trustees' report for the year 1st July 2022 to 30th June 2023

Risk Management

The Trustees have conducted a review of the major risks to which the Institute is exposed. A risk register has been established and is updated at least annually and, where appropriate, systems or procedures have been established to mitigate such risks and provision made in long term plans. External risks to funding have led to the development of a strategic plan which allows for the diversification of income generation by trading activities through the Institute's subsidiary Correx Ltd. Internal control risks are minimised by the implementation of procedures for authorisation of all major transactions and projects by referral to Council. Approval for payment of all incoming supplier invoices and officer expenses is via the President, up to a value of £5k including VAT and above that amount via both the President and Treasurer.

Finances

The year saw an increase in income to £411k (vs £354k in previous year). This was offset due to rising running costs as well as investment in new training programmes but which saw expenses increase slightly overall to £359k (vs £346k) resulting in a surplus of £52k (vs £8k). Our managed investment portfolio increased by £2k (vs a loss of £7k in previous year) so the net surplus is £54k (vs £2k). These figures include a payment from Correx to cover its share of operating costs and that is now set-up for monthly instalments. In the next financial year, we have made provision for additional student support in the form of student bursaries (up to £25k per year via the University of Manchester and up to £5k per year in support internships at various UK universities, as selected by our YICorr committee). The Trustees are encouraged by the fact that the impact of the pandemic and the global economic downturn on the finances of the Institute appears to have been quite limited and that recovery is now strong particularly on the training front. The Trustees have monthly virtual meetings to review the situation on an on-going basis.

Related Parties

The Institute manages coordination of UK activities in corrosion through the UK Corrosion Network, a group comprising members of the Institute of Corrosion and the Institute of Materials, Minerals and Mining (IoM³). Its regional branches also work in the UK with AFBE, BINDT, EI, IMechE, SPE and TWI. The Institute is also a member of the European Federation of Corrosion (EFC) and the World Corrosion Organisation (WCO) and participates actively within these umbrella organisations. The Institute is an associate member of the Engineering Council (EC) and founder member of the Licensed Charter Awarding Body of the Science Council. The Institute has strong relationships with other professional societies throughout the world. During 2024, the Institute aims to become an EC Licensee holder and to offer CEng status directly (currently this via SOE – Society of Operations Engineers).

Aims and Objectives

The Institute, as a Learned Society, has been serving the corrosion science, technology and engineering management and economic needs of individuals, academia and industry in various guises since 1959. Corrosion and materials degradation, which costs the UK around 3-4% of GDP per annum, is recognised nationally and internationally as a major economic and environmental cost that is unsustainable at its current level. The Institute was formed with the objective of serving the needs of stakeholders connected with corrosion engineering, science and technology. The principal aim of the Institute, in support of this objective, is to advance the understanding of the science, technology and engineering practice of corrosion control, and to facilitate the exchange of information and ideas for the public benefit (via formal training and education).

3

Approved 23/3/24

Institute of Corrosion Registered number: 1240103 Trustees' report for the year 1st July 2022 to 30th June 2023

Achievements and Performance

The 2022/2023 financial year has been full of activity and great progress in our expanded training operations.

As we emerged formally from Covid-19 restrictions in March 2023, we began to see more in-person meetings as well as joint in person and online events. Branch meetings were held both in-person and virtually and were well attended. In April 2023 the annual Corrosion Engineering Division (CED) working day was held as an in person only meeting with 35 attendees for the full day. Our Newcastle Sustainability Conference held jointly in June with the North of England Institute of Mining and Mechanical Engineers (NEIMME) attracted over 60 in-person attendees.

Virtual options provide a way for members who are not able to attend in person to connect with us – which is very important, especially for our overseas membership. Another benefit of virtual meetings is the reduced impact on the environment as it reduces our carbon footprint as we travel less.

During June, we were successfully audited for our CEng scheme via SOE and also discussed with the Engineering Council about our intention to proceed with CEng Direct in 2024.

In September we held the Corrosion Science Symposium annual event of the Corrosion Science Division of the Institute which was well attended. It was held jointly with the Royal Society of Chemistry's Electrochem conference at the University of Bristol.

The Institute sponsors a number of prestigious international awards, which are made on an annual basis to recognise excellence in corrosion science and engineering. For our 2022/2023 awards we had many deserving candidates for the awards committee to choose from and the final winners were:

UR Evans award: Professor Nick Birbilis, (Deakin University, Australia). Paul McIntyre award: Dr Roger Francis: H. G. Cole Award: Trevor Osborne

Lionel Shreir award: James Rafferty (University of Manchester)

Our social media presence now has well over 15,000 followers on its branch and national LinkedIn sites. We have partnered with a professional writer for our social media articles (blogs) to ensure we maximise the opportunity to engage and educate our followers effectively. The Institute also now operates Instagram and Twitter (X) accounts.

As a result of feedback from many of our members we have begun a multi-year project to update our website based course booking system, certifications systems and members database.

The Registration Agreement with the Society of Operations Engineers (SOE) enables our professional members to apply via SOE for registration as CEng, IEng or EngTech. The agreement has been working well historically but was always seen as an interim measure and is now considered to have run its course. The Institute now intends to move towards being a direct EC Licensee holder to enhance membership retention. We shall continue to regularly encourage professional members with lesser qualifications to apply for registration as Engineering Technicians and Incorporated Engineers.

In January 2022 our biennial YEP - Young Engineer Programme was launched and for the first time it was based successfully in Aberdeen and run by the Aberdeen Branch of the Institute. The 2022 winning group attended the Association for Materials Protection and Performance (AMPP) conference in Denver with the national President in March 2023. Our Young ICorr committee have been tasked with organising our future YEP programmes.

4

Approved 23/3/24

Institute of Corrosion Registered number: 1240103 Trustees' report for the year 1st July 2022 to 30th June 2023

Membership and Membership Services

Professional Membership applications are handled by the Professional Assessment Committee (PAC) of the Institute. We encourage existing individual members to consider upgrading from Individual Membership to the Professional grades of Technician, Member and Fellow and from the Professional grades to Chartered Engineer and Chartered Scientist. Total membership as of June 2023 remained at around 1500 members. This number includes our free student membership of 181 (vs 216), a slight decrease from the previous year.

Included in the above numbers were 246 (vs 264) members from sustaining companies, also a small decrease considered to be related to the current economic climate.

There were also 24 sustaining companies at gold level (including three staff as Institute affiliates) and also 87 sustaining companies (including two staff as Institute affiliates) at ordinary level at the end of the financial year 2022/2023 along with 15 local branch sponsors for Aberdeen (including two staff nominees eligible to attend corrosion awareness training and its technical meetings), so overall very encouraging in terms of national support.

The corporate membership category was launched in early 2021 and we now have four companies as corporate members contributing 25 members to the above total. Two more companies have agreed to sign up in the latter half of 2023.

Training Courses

Our training courses have again been a highlight of the year. The Institute's two main training providers, IMechE AR and Corrodere/MPI, offer the Institute’s courses around the world. Income from training continues to grow, particularly from distance learning courses. Improvements and additions to the Institute’s portfolio of training courses are on-going, with continued investment that is expected to generate returns over the coming years. There has been a move away from the use of volunteers in this area, with a more professional approach to the development, review and implementation of new courses. This process is overseen by the by the respective governing boards and the Trustees who review course investments where required.

All of our Cathodic Protection (CP) courses are compliant with ISO-15257 and have been very popular. They are delivered directly by the Institute at the CP training centre at the offices of Freyssinet (a leading civil and structural engineering specialist) in Telford and also now at IMechE Sheffield.

In the world of surface treatment new PFP Cementitious, Insulation and Coating Inspector Level 2 courses have been developed alongside Hot Dip Galvanising Level 2 training. PFP Cementitious Level 3 is also being progressed. Online offerings are increasingly being developed also.

The new Microbially Influenced Corrosion (MIC) course has been approved and implemented as a combination of HQ lead and in company training. New courses for Corrosion Under Insulation (CUI), Refinery Corrosion Control and Boiler Corrosion are under development for 2023/2024 roll-out.

Overseas corrosion training opportunities continue to be explored subject to suitable commercial agreements being put in place.

5

Approved 23/3/24

Institute of Corrosion Registered number: 1240103 Trustees' report for the year 1st July 2022 to 30th June 2023

Correx Ltd

Correx is an independent company that is wholly owned by the Institute. The primary activity of Correx Ltd is to manage and operate the Industrial Coating Applicator Training Scheme (ICATS). Correx has had another successful year although some training activities and supporting companies have reduced due to the impact of Covid-19. Correx Ltd shares the administration costs of the Institute’s office. It should also be noted that this year no Gift Aided donation was made by Correx Ltd to the Institute although arrangements are expected to be put in place for 2023/2024 financial year.

Future Strategy

The Institute has a strategic vision to enter into partnerships with fellow Institutes and other stakeholders in the corrosion control industry in order to maximise the impact of our objectives and activities while minimising our costs in achieving them. We are continuing to place great emphasis on training and certification and see the on-going review and upgrade of the existing course offerings, particularly in respect of engineering level courses, as a high priority for the Institute going forward. Another key focus is on the recruitment and retention of a younger and more diverse membership, which is overseen by the Membership Development Committee, with university liaison via Young ICorr. The Cathodic Protection Governing Board (CPGB) has been recently reconfigured to include 5 new younger members and the intention is to do the same with the Surface Treatment Governing Board (STGB) during the year 2023/2024.

Principal Funding Sources

The primary source of funds for the Institute is subscription income from Individual, Branch, Corporate, Gold and Ordinary Sustaining Company Members. Additional income arises due to surpluses from branch membership activities, which generally take the form of seminars, conferences and meeting programmes for local members and industry, supported by local company sponsorships. Other significant streams include licence fees (levy’s) from training and certification courses operated by the Institute's course providers, such as IMechE AR and Corrodere/MPI. Correx Ltd, which runs the commercial arm of the Institute, has been able to contribute funds for staffing, IT provision and other running costs. There are also occasional joint promotional events with the Institute.

Investment Policy

The Institute considers that until the unrestricted funds have grown, for the time being, the majority of funds available for investment should be maintained in short term funding vehicles. The cash reserves were split into separate accounts not exceeding £85k in order to secure full protection via the UK government Financial Services Compensation Scheme. With recent interest rate changes, all of the Institute’s bank accounts are currently being reviewed by the Treasurer, so as to receive the best possible interest rates in 2023/2024 financial year.

Following the Council meeting of 3rd February 2021, a proposal to invest up to £100k in a managed, stocks and shares account was accepted unanimously, and a broker engaged (Hambrook Financial Planning). Results of this investment are presented at each Council meeting and fund holdings adjusted as and when necessary. This is a long-term investment (up to 10 years) but we can withdraw all or part of the funds held at any time.

6

Approved 23/3/24

Institute of Corrosion Registered number: 1240103 Trustees' report for the year 1st July 2022 to 30th June 2023

Responsibilities of the Trustees

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the charitable company as at the balance sheet date and of its incoming resources and application of resources, including income and expenditure, for the financial year. In preparing those financial statements, the Management Committee follow best practice and:

The Trustees are responsible for maintaining 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. The Trustees 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.

Members of the Management Committee

Members of the Management Committee, who are Directors for the purpose of company law and Trustees for the purpose of charity law, who served during the year and up to the date of this report are set out in the forward above. In accordance with company law, as the charitable company's directors, we certify that:

The Accounts for the year 2022/2023 have been prepared from the accounting records by Hickeson Boyce and are presented here for discussion and approval at the AGM.

This report was approved by the Management Committee immediately prior to the AGM of 1st November 2023 and signed on its behalf by:

Stephen Tate President

7

Approved 23/3/24

Institute of Corrosion Independent Examiner's Report

Independent Examiner's report to the trustees of Institute of Corrosion

I report to the charity trustees on my examination of the accounts of the company for the year ended 30 June 2023 which are set out on pages 9 to 17.

Responsibilities and basis of report

As the charity trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’).

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

Independent examiner's statement

Since the company’s gross income exceeded £250,000 your examiner must be a member of a body listed in section 145 of the 2011 Act. I confirm that I am qualified to undertake the examination because I a member of the Association of Chartered Certified Accountants

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

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

  2. the accounts do not accord with those records; or

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

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

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

68a High Street Stony Stratford Milton Keynes MK11 1AQ

N Boyce FCCA Hickeson Boyce Chartered Certified Accountants

Date: 28/3/2024

8

Approved 23/3/24

Institute of Corrosion Statement of Financial Activities (including Income and Expenditure Account) for the year ended 30 June 2023

Notes
Income and endowments from:
Donations and legacies
2
Other trading activities
3
Investments
4
Charitable activities
5
Total income and endowments
Expenditure on:
Raising funds
Charitable activities
Total expenditure
6
Net gains/(losses) on investments
10
Net Income/(expenditure)
Transfers Between Funds
Net movement in Funds
Reconciliation of funds:
Total funds brought forward
15/16
Total funds carried forward
14
Unrestricted
Restricted
Total
Funds
Funds
2023
151,982
15,000
166,982
31,926
-
31,926
2,403
-
2,403
209,212
-
209,212
395,523
15,000
410,523
57,351
478
57,829
289,601
11,784
301,385
346,952
12,262
359,214
2,301
-
2,301
50,872
2,738
53,610
-
-
-
50,872
2,738
53,610
608,408
518,531
1,126,939
659,280
521,269
1,180,549
Total
2022
157,365
18,144
326
178,410
354,245
93,928
251,751
345,679
(6,960)
1,606
-
1,606
1,125,333
1,126,939

9

Approved 23/3/24

Balance Sheet as at 30 June 2023

Notes 2023 2022
£ £
Fixed assets
Tangible assets 9 624,002 625,014
Intangible assets 9 22,398 25,998
Investments 10 96,775 94,474
743,175 745,486
Current assets
Debtors 11 178,050 121,817
Cash at bank and in hand 350,016 348,185
528,066 470,002
Creditors: amounts falling due
within one year 12 (90,692) (88,549)
Net current assets 437,374 381,453
Net assets 1,180,549 1,126,939
Charity funds
Accumulated fund 15 659,280 608,408
Restricted funds 16 521,269 518,531
1,180,549 1,126,939

The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006 and that members have not required the company to obtain an audit in accordance with section 476 of the Act.

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

The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.

S Tate President Approved by the Trustees on 23 March 2024

10

Approved 23/3/24

Institute of Corrosion Notes to the Accounts for the year ended 30 June 2023

1 Accounting policies

General information and basis of preparation

The charity constitutes a public benefit entity as defined by Financial Reporting Standard 102 (FRS 102). The accounts have been prepared under the historical cost convention as modified by the revaluation of freehold land and buildings. In preparing the financial statements the Charity follows best practice as laid down in the Statement of Recommended Practice Accounting and Reporting by Charities SORP 2019 FRS 102 and the Charities Act 2011.

Going Concern

The accounts have been prepared on the going concern basis as the directors consider this basis to be appropriate, having reviewed the forecasts for twelve months from the date of signing these accounts. The directors are confident that the Institute will be able to meet its liabilities as they fall due during the next twelve months.

Depreciation

Depreciation is calculated to write off the cost or re-valued amount less the estimated residual value of tangible fixed assets on a straight line basis over their estimated useful lives as follows.

Office Equipment 20% Computer Equipment 33.30% Fixtures and Fittings 20%

Assets acquired for less than £500 are not capitalised unless they relate directly to business operations.

Land is not depreciated. Buildings are depreciated if their residual value is considered to be less than cost.

Amortisation

Amortisation is calculated to write off the cost or re-valued amount less the estimated residual value of intangible fixed assets on a straight line basis over their estimated useful lives as follows .

Website 25% Trademarks and other intellectual property 10%

Investments

Investments are valued at the lower of cost or net realisable value. Other investments include charity approved investments which are valued at market value with any gains or deficits being shown in the Statement Of Financial Activities.

Subscriptions

Individual and sustaining membership subscription income is accounted for on a receipts basis, unless it relates to a future period in which case it is deferred. All other income is accounted for on an accruals basis. Deferred subscription income in the current year amounted to £30,985 (2022 - £37,743) and £37,743 (2022 - £37,642) was released from the previous year.

Pensions

The company operates a defined contribution pension scheme. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the scheme.

11

Approved 23/3/24

Institute of Corrosion Notes to the Accounts for the year ended 30 June 2023

Expenditure Recognition

Expenditure is recognised in the period in which it was incurred and is allocated to the particular activity to which it relates or apportioned in a ratio considered appropriate by the Charity.

Taxation

The company has charity tax exemption status.

2 Income from donations and legacies

Subscriptions
Individual Members
Sustaining Members
Magazine Income
Elsevier (Corrosion Science)
Gifts & Donations from Subsidiary Undertaking
Other Gifts and Donations
2023
£
92,521
56,386
280
149,187
2,795
151,982
-
15,000
166,982
2022
£
96,597
57,779
210
154,586
2,779
157,365
-
-
157,365
3 Income from other trading activities
Branch fundraising events
Branch sponsorships
Merchandise
Property rental
Other income
4 Income from investments
Bank interest
5 Income from charitable activities
Branch seminar income
Corrosion Management magazine
Training courses
2023
£
19,721
12,100
105
-
-
31,926
2023
£
2,403
2023
£
-
6,096
203,116
209,212
2022
£
13,259
4,750
135
-
-
18,144
2022
£
326
2022
£
-
5,950
172,460
178,410

12

Approved 23/3/24

Institute of Corrosion Notes to the Accounts for the year ended 30 June 2023

6 Expenditure

Admin Fees
Depreciation
Head Office costs
Total Support Costs
Audit, Accountancy, Legal &
other professional services
Council & trustee meetings
Technical secretary services
Business development
Subscriptions and donations
Financial services
Other overheads
Corrosion management
magazine
Branch expenditure
Conferences & symposia
Training courses
Costs of
Fund
Direct Governance
2023
2022
generating
raising
charitable
costs
Total
Total
voluntary
and
activities
income
trading
£
£
£
£
£
£
10,948
3,255
15,090
296
29,589
43,478
2,489
740
3,430
67
6,726
8,180
6,992
2,079
9,638
189
18,898
21,726
20,429
6,074
28,158
552
55,213
73,384
-
-
-
16,128
16,128
18,773
-
1,725
-
9,242
10,967
22,257
-
-
-
3,200
3,200
2,950
785
11,778
2,356
785
15,704
23,114
-
-
-
14,604
14,604
13,656
-
1,552
-
2,599
4,151
4,400
-
-
-
24,154
24,154
22,324
-
(200)
-
82,883
82,683
82,441
-
4,455
-
29,780
34,235
25,925
-
-
-
-
-
-
-
11,231
-
86,944
98,175
56,455
21,214
36,615
30,514
270,871
359,214
345,679

Total support costs are apportioned in proportion to total income.

Analysis of expenditure on raising funds:
Generating voluntary income
Fundraising and trading
Analysis of expenditure on charitable activities:
Direct charitable activites
Governance costs
2023
£
21,214
36,615
57,829
30,514
270,871
301,385

13

Approved 23/3/24

Institute of Corrosion Notes to the Accounts for the year ended 30 June 2023

7 Net Income/(expenditure) for the Year

Net income/(expenditure) for the year is stated after charging:

Depreciation
Amortisation
Independent examiners remuneration:
Independent examination fee
Other services
aff Costs and Numbers
Average number of persons employed by the charity
2023
£
3,126
3,600
1,825
11,750
2023
2
2022
£
4,330
3,850
1,750
11,209
2022
3

8 Staff Costs and Numbers

During the year no employees received emoluments in excess of £60,000. The total pension contributions amounted to £3408 (2022 - £3,243).

9 Fixed Assets

Intangible Fixed Assets

Cost
At 1 July 2022
Additions
Disposals
At 30 June 2023
Depreciation
At 1 July 2022
Charge for the year
On disposals
At 30 June 2023
Net book value
At 30 June 2023
At 1 July 2022
Website
Trademarks
Other
Intellectual
Property
£
£
£
14,656
495
35,500
-
-
-
-
-
-
14,656
495
35,500
14,656
398
9,599
-
49
3,551
-
-
14,656
447
13,150
-
48
22,350
-
97
25,901
Total
£
50,651
-
-
50,651
24,653
3,600
-
28,253
22,398
25,998

14

Approved 23/3/24

Institute of Corrosion Notes to the Accounts for the year ended 30 June 2023

Tangible Fixed Assets

Cost
At 1 July 2022
Additions
Disposals
At 30 June 2023
Depreciation
At 1 July 2022
Charge for the year
On disposals
At 30 June 2023
Net book value
At 30 June 2023
At 1 July 2022
Land &
Buildings
Office
Equipment
Computer
Equipment
Fixtures & Fittings
Total
£
£
£
£
£
619,244
14,242
23,813
30,417
687,716
-
-
-
2,114
2,114
-
-
-
-
-
619,244
14,242
23,813
32,531
689,830
-
13,294
21,932
27,476
62,702
-
237
1,675
1,214
3,126
-
-
-
-
-
-
13,531
23,607
28,690
65,828
619,244
711
206
3,841
624,002
619,244
948
1,881
2,941
625,014

The bespoke HQ building was professionally valued as at 21 September 2022 at £340,000. However in accordance with the Charities SORP FRS102 effective 1 January 2019 section 12.14, as the building continues to meet its intended service potential then the Trustees consider that its value in use would be better reflected by its replacement cost value rather than the amount for which it could be sold in the market, and therefore no impairment in value is considered to have arisen. Consequently, the land and buildings continue to be shown in the balance sheet at cost.

10 Fixed Asset Investment

Cost/market value
At 1 July 2022
Additions
Revaluation
At 30 June 2023
Historical cost
At 30 June 2023
At 1 July 2022
Shares in Other Investments
subsidiary
undertakings
£
£
1
94,473
-
-
-
2,301
1
96,774
1
100,000
1
100,000

In the opinion of the Directors the aggregate view of the company's investment in subsidiary undertaking is not less than the amount included in the balance sheet.

Company Country of registration Shares held:
or incorporation and number Class %
Correx Limited England and Wales 04673112 Ordinary 100

The company commenced trading in March 2005

As at 30 June 2023, the company's capital and reserves amounted to £509,442 (2022 - £464,642), its turnover was £188,749 (2022 - £177,407) and the Profit for the Year amounted to £44,800 (2022 - £34,240).

15

Approved 23/3/24

Institute of Corrosion Notes to the Accounts for the year ended 30 June 2023

11 Debtors
Trade debtors
Other debtors
Prepayments & accrued income
Funding for subsidiary undertaking
2023
£
46,651
41,283
-
90,116
178,050
2022
£
58,827
5,845
-
57,145
121,817
12 Creditors: amounts falling due within one year
Trade creditors
Other taxes and social security costs
Accruals and deferred income
13 Creditors: amounts falling due after one year
Other creditors
14 Analysis of Net Assets
Fixed assets
Current assets
Other creditors
2023
£
34,629
10,168
45,895
90,692
2023
£
-
Unrestricted funds
£
231,640
518,332
(90,692)
659,280
2022
£
32,027
4,821
51,701
88,549
2022
£
-
Restricted funds
£
511,535
9,734
-
521,269

15 Unrestricted Funds

Accumulated fund Balance at
Incoming
01/07/2022
£
£
608,408
395,523
Outgoing
Transfers
Unrealised
Balance at
gain/(loss) on
30/06/2023
investment

£
£
£
£
(346,952)
-
2,301
659,280
Movement in Funds
608,408
395,523
(346,952)
-
2,301
659,280

16

Approved 23/3/24

Institute of Corrosion Notes to the Accounts for the year ended 30 June 2023

16 Restricted Funds

estricted Funds
Corrosion network group
Building endowments
Building fund
Young engineers fund
Balance at
Incoming
01/07/2022
£
£
855
-
7,535
-
504,000
-
6,141
15,000
Outgoing
Transfers
Unrealised
Balance at
gain on
30/06/2023
investment
£
£
£
£
-
-
-
855
-
-
-
7,535
-
-
-
504,000
(12,262)
-
-
8,879
Movement in Funds
518,531
15,000
(12,262)
-
-
521,269

The Corrosion Network Group formally known as the Corrosion Co-ordination Group was set up in 1997 by way of donations. The grant terms for the Corrosion Network Group are to provide support for a delegate from each of IoM³ and The Institute of Corrosion to attend the EFC Corrosion Conference each year.

Building endowments are made up of donations to the building fund from members.

The building fund includes funds from the Corrosion House sale and £410,000 gift aided from Correx Limited.

The Young Engineers fund is used to support the Young Engineers Program.

17 Related Party Transactions

During the year administration overheads amounting to £59,137 (2022 £63,629) were charged to Correx Limited, a trading subsidiary.

17