Registered number 1240103 Charity number 275206
Institute of Corrosion
(A company limited by guarantee)
Report and Financial Statements
30 June 2024
Institute of Corrosion Report and accounts Contents
| Page | |
|---|---|
| Company information | 1 |
| Trustees' report | 2 |
| Independent Examiner's report | 9 |
| Statement of Financial Activities (including Income and Expenditure Account) | 10 |
| Balance sheet | 11 |
| Notes to the accounts | 12 |
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 202 4 , 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
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Institute of Corrosion Registered number: 1240103 Trustees' report for the year 1st July 202 3 to 30th June 202 4
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 and normally every 3 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. Except in exceptional circumstances e.g. health reasons, the 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 and Trustee Team that is intended to cover:
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. Obligations on Trustees in Law and as members of the Management Committee
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. Memorandum and Articles of Association of the Institute
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. The current financial position as set out in the latest published accounts; and
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. Future plans and objectives of the Institute
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Institute of Corrosion Registered number: 1240103 Trustees' report for the year 1st July 202 3 to 30th June 202 4
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. Independent Audits by License Bodies – Engineering and Science Councils and Quality Management Auditors help to reinforce processes and assessments. External risks to funding, most recently seen during the recent Covid-19 Pandemic 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 excluding reclaimable VAT and above that amount via both the President and Treasurer.
Finances
The year saw a substantial increase in income to £827k (vs £411k 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 £588k (vs £359k) resulting in a surplus of £244k (vs £53k). Our managed investment portfolio increased by £11k (vs an increase of £2k in previous year) so the net surplus is £250k (vs £53k). These figures include a payment from Correx to cover its share of operating costs and that is now set-up for monthly instalments. The Trustees are encouraged by the fact that the impact of changes on how training is provided, now increasingly directly instead of via Training Partners, has increased the turnover and resultant surplus. The Trustees have monthly virtual meetings to review the situation on an on-going basis with Training Scheme Managers maintaining their own records and also reporting monthly.
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 2025, the Institute aims to become an EC Licensee holder and to offer CEng status directly (currently this via SOE – Society of Operations Engineers), delayed from 2024 due to operational reasons within EC.
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 typically costs the UK around 3-4% of GDP per annum (equivalent to the annual education budget), is recognised nationally and internationally as a major economic and environmental cost that is unsustainable at its current level. Specific industry corrosion impacts and costs vary with their specific infrastructure and degree of environmental exposure, e.g. highways, rail and manufacturing. 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 (specifically via formal training and education and government engagement).
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Institute of Corrosion Registered number: 1240103 Trustees' report for the year 1st July 202 3 to 30th June 202 4
Achievements and Performance
The 2023/2024 financial year has been full of activity and great progress in our expanded training operations and the formation of 2 new Institute Branches at Grangemouth in Central Scotland and Wales and South-West Branch based in Port Talbot Nr. Swansea under the Chair of President – Stephen Tate.
Branch meetings were held both in-person and virtually and were well attended. Between 50-60 Technical Presentations related to Corrosion Prevention are now provided publicly to ICorr members and their guests annually, along with specific full-day Corrosion Awareness Events held in Aberdeen and elsewhere.
In April 2023 the annual Corrosion Engineering Division (CED) working day was held as an in- person meeting with 35 attendees for the full day at the National Physical laboratory in London (NPL). Our Newcastle Sustainability Conference held jointly in June 2023 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 increasing overseas membership to whom we are looking to further support soon through local overseas based branches. Another benefit of virtual meetings has been the reduced impact on the environment, as it reduces our carbon footprint as we travel less but it is not possible to conduct all Institute activities virtually.
During June 2023, we were successfully audited for our current CEng scheme via SOE and also discussed with the Engineering Council at that time, about our intention to proceed with CEng Direct in 2024-2025 financial year.
In September 2023 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 at which the UR Evans award was presented to Professor Nick Birbilis by the ICorr President – Stephen Tate.
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 2023/2024 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): As above Paul McIntyre award:Dr Roger Francis: presented at CED Event of April 2023 H. G. Cole Award:Trevor Osborne: presented at the November 2023 AGM Lionel Shreir award:James Rafferty (University of Manchester): monetary award given to the best student presenter at the annual Corrosion Science Symposium.
Following on from our Digital Management Strategy initiated some 4 years previously, our social media presence now has approaching 20,000 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 Facebook, 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 1st Phase – the website-based course booking is now active and arrangements for other improvements are being progressed. A key component of this is the move to largely paperless’ systems at our Northampton HQ.
We are presently retaining a printed bi-monthly corrosion journal – ‘Corrosion Management’ which most members still favour at this point in time.
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Institute of Corrosion Registered number: 1240103 Trustees' report for the year 1st July 202 3 to 30th June 202 4
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 during Q2 2025 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 and leadership programme in Denver with the ICorr National President – Stephen Tate in March 2023. Our Young ICorr (YICorr) committee for those under 35 years of age, have been tasked with organising our future YEP programmes to best suit our membership profile/distribution.
Head Office Re-organisation
During the 2023/2024 Financial Year, President – Stephen Tate instigated a re-organisation of the ICorr Head Office Team, so as to better serve the Institute membership going forwards. A new ICorr Lead Administrator and a new Administrative Assistant were recruited and trained, commencing June 2024. This necessitated some temporary disruption and additional costs during onboarding processes which are now completed with the new permanent staff proving very beneficial, to both Correx and ICorr activities and their respective members.
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 but increased again throughout 2024 post Covid, to its present level of 229 student members.
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 23 sustaining companies at gold level (including three staff as Institute affiliates) and also 92 (up from 87) sustaining companies (including two staff as Institute affiliates) at ordinary level at the end of the financial year 2023/2024 along with 17 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 eight companies at this level, up from four companies previously as corporate members, contributing 40 members to the total ICorr membership. Two companies have upgraded from sustaining to corporate level.
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Institute of Corrosion Registered number: 1240103 Trustees' report for the year 1st July 202 3 to 30th June 202 4
Training Courses
Our training courses have again been a highlight of the year, especially from our now ICorr Direct Cathodic Protection courses. The Institute's two main training providers, IMechE AR and Corrodere/MPI, offer the Institute’s courses around the world and increasingly in China. Income from training continues to grow, particularly from distance learning courses in Inspection topics. 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 (as scheme managers particularly) 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. Quality Auditing is provided independently to ICorr via LRQA.
All of our Cathodic Protection (CP) courses are compliant with ISO-15257 and have been very popular of late with demand being driven by government agencies/bodies such as HSE and National Highways/Network Rail. They are delivered directly by the Institute at the CP training centres, at the offices of Freyssinet (a leading civil and structural engineering specialist) in Telford and also now at Argyll Ruanne 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 but this is not a suitable option for all course types, many of which still require a practical component.
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 and Stainless Steels Corrosion have also been developed and rolled out in 2023/2024.
Overseas corrosion training opportunities continue to be explored subject to suitable commercial agreements being put in place and this is expected to be activated from 2025 onwards, as our new Overseas branches are established.
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. Correx Ltd shares the administration costs of the Institute’s office. It should also be noted that during the year 2022/2023, no Gift Aided donation was made by Correx Ltd to the Institute, although arrangements were 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 our more advanced engineering level courses, as a high priority for the Institute going forward and towards a greater proportion of CEng and CSci members.
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Institute of Corrosion Registered number: 1240103 Trustees' report for the year 1st July 202 3 to 30th June 202 4
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 (for members under 35yrs of age). The Cathodic Protection Governing Board (CPGB) has been recently reconfigured to include 5 new younger members and the intention of the President is to do the same with the Surface Treatment Governing Board (STGB) during the year 2024/2025. Development of a new Engineering Training Governing Board (ETGB) also moved forward during 2023/2024 and is expected to become active early in the 2024/2025 financial year.
During the forthcoming 2024/2025 financial year, it is planned to expand the Institutes operations significantly into Overseas markets, particularly India, the Far East and Middle East, areas that contribute increasingly to ICorr’s activities. It has been noted that two-thirds of new Institute Membership applications now come from Overseas locations.
Within the 2024/2025 financial year, we shall also lay the foundations for our joint participation with IOM3 at the EUROCORR 2026 conference, the most significant European corrosion event, this time occurring in Dublin.
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 and Divisional activities such as CED/Global Corrosion Awareness Day, which generally take the form of seminars, conferences and meeting programmes for local members and industry, supported by local company sponsorships and exhibitors. Other significant streams include licence fees (levy’s) from training and certification courses operated by the Institute's course providers, such as Argyll Ruane and Corrodere.
Correx Ltd, which runs the commercial arm of the Institute and ICATS – Industrial Coating Applicator Scheme, has been able to contribute funds for staffing, IT provision and other running costs. There are also occasional joint promotional events with the Institute of Corrosion.
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 including Savings Accounts are currently being reviewed by the Treasurer, so as to receive the best possible interest rates in 2024/2025 financial year. New signatories are being put in place for all accounts under enhanced procedures.
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. This has so far performed extremely and is on target to meet its goals.
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Institute of Corrosion Registered number: 1240103 Trustees' report for the year 1st July 202 3 to 30th June 202 4
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:
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1 Select suitable accounting policies and then apply them consistently.
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2 Make judgements and estimates that are reasonable and prudent; and
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3 Prepare the financial statements on a going concern basis unless it is inappropriate to assume that the company will continue on that basis.
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:
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1 So far as we are aware, there is no relevant information of which the company's accountants are unaware; other than outstanding savings account statements that are linked to change of bank signatories with retiring Council members and their replacements and are in the process of being completed.
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2 As Directors we have taken all the steps that we ought to have taken in order to make ourselves aware of any relevant accounts information and to establish that the charity's accountants are aware of that information.
The Accounts for the year 2023/2024 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 13th November 202 4 and signed on its behalf by:
Stephen Tate President
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 2024 which are set out on pages 10 to 18.
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:
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accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or
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the accounts do not accord with those records; or
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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
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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: 26/03/2025
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Institute of Corrosion
Statement of Financial Activities (including Income and Expenditure Account) for the year ended 30 June 2024
| 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 2024 195,905 - 195,905 25,394 - 25,394 6,723 - 6,723 599,059 - 599,059 827,081 - 827,081 59,177 - 59,177 529,128 - 529,128 588,305 - 588,305 11,138 - 11,138 249,914 - 249,914 - - - 249,914 - 249,914 659,280 521,269 1,180,549 909,194 521,269 1,430,463 |
Total 2023 166,982 31,926 2,403 209,212 |
|---|---|---|
| 410,523 | ||
| 57,829 301,385 |
||
| 359,214 | ||
| 2,301 | ||
| 53,610 - |
||
| 53,610 1,126,939 |
||
| 1,180,549 |
10
Balance Sheet as at 30 June 2024
| Notes | 2024 | 2023 | |||
|---|---|---|---|---|---|
| £ | £ | ||||
| Fixed assets | |||||
| Tangible assets | 9 | 622,420 | 624,002 | ||
| Intangible assets | 9 | 18,798 | 22,398 | ||
| Investments | 10 | 107,912 | 96,775 | ||
| 749,130 | 743,175 | ||||
| Current assets | |||||
| Debtors | 11 | 213,434 | 178,050 | ||
| Cash at bank and in hand | 606,495 | 350,016 | |||
| 819,929 | 528,066 | ||||
| Creditors: amounts falling due | |||||
| within one year | 12 | (138,596) | (90,692) | ||
| Net current assets | 681,333 | 437,374 | |||
| Net assets | 1,430,463 | 1,180,549 | |||
| Charity funds | |||||
| Accumulated fund | 15 | 909,194 | 659,280 | ||
| Restricted funds | 16 | 521,269 | 521,269 | ||
| 1,430,463 | 1,180,549 |
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
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Institute of Corrosion Notes to the Accounts for the year ended 30 June 2024
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 £22,952 (2023 - £30,985) and £30,985 2023 - £37,743) 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.
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Institute of Corrosion Notes to the Accounts for the year ended 30 June 2024
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 |
2024 £ 81,742 52,758 140 134,640 2,469 137,109 58,796 - 195,905 |
2023 £ 92,521 56,386 280 |
|---|---|---|
| 149,187 2,795 |
||
| 151,982 - 15,000 |
||
| 166,982 |
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 |
2024 £ 25,356 - 38 - - 25,394 2024 £ 6,723 2024 £ - 3,096 595,963 599,059 |
2023 £ 19,721 12,100 105 - - |
|---|---|---|
| 31,926 | ||
| 2023 £ 2,403 |
||
| 2023 £ - 6,096 203,116 |
||
| 209,212 |
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Institute of Corrosion
Notes to the Accounts for the year ended 30 June 2024
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 2024 2023 generating raising charitable costs Total Total voluntary and activities income trading £ £ £ £ £ £ 14,566 4,330 20,078 394 39,368 29,589 1,917 570 2,643 52 5,182 6,726 8,920 2,652 12,295 241 24,108 18,898 |
|---|---|
| 25,403 7,552 35,016 687 68,658 55,213 - - - 17,226 17,226 16,128 - 2,885 - 30,320 33,205 10,967 - - - 2,100 2,100 3,200 556 8,343 1,669 556 11,124 15,704 - - 25,000 17,213 42,213 14,604 - 5,737 - 1,946 7,683 4,151 - - - 28,323 28,323 24,154 - (400) - 75,201 74,801 82,683 - 9,101 - 21,473 30,574 34,235 - - - - - - - - 8,556 263,842 272,398 98,175 |
|
| 25,959 33,218 70,241 458,887 588,305 359,214 |
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 |
2024 £ 25,959 33,218 |
|---|---|
| 59,177 | |
| 70,241 458,887 |
|
| 529,128 |
14
Institute of Corrosion Notes to the Accounts for the year ended 30 June 2024
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 |
2024 £ 1,582 3,600 1,825 11,750 2024 2 |
2023 £ 3,126 3,600 1,825 11,750 |
|---|---|---|
| 2023 2 |
8 Staff Costs and Numbers
During the year no employees received emoluments in excess of £60,000. The total pension contributions amounted to £2,811 (2023 - £3,408).
9 Fixed Assets
Intangible Fixed Assets
| Cost At 1 July 2023 Additions Disposals At 30 June 2024 Depreciation At 1 July 2023 Charge for the year On disposals At 30 June 2024 Net book value At 30 June 2024 At 1 July 2023 |
Website Trademarks Other Intellectual Property £ £ £ 14,656 495 35,500 - - - - - - 14,656 495 35,500 14,656 398 13,199 - 49 3,551 - - 14,656 447 16,750 - 48 18,750 - 97 22,301 |
Total £ 50,651 - - |
|---|---|---|
| 50,651 | ||
| 28,253 3,600 - |
||
| 31,853 | ||
| 18,798 | ||
| 22,398 |
15
Institute of Corrosion Notes to the Accounts for the year ended 30 June 2024
Tangible Fixed Assets
| Cost At 1 July 2023 Additions Disposals At 30 June 2024 Depreciation At 1 July 2023 Charge for the year On disposals At 30 June 2024 Net book value At 30 June 2024 At 1 July 2023 |
Land & Buildings Office Equipment Computer Equipment Fixtures & Fittings Total £ £ £ £ £ 619,244 14,242 23,813 32,531 689,830 - - - - - - - - - - |
|---|---|
| 619,244 14,242 23,813 32,531 689,830 |
|
| - 13,531 23,607 28,690 65,828 - 237 206 1,139 1,582 - - - - - |
|
| - 13,768 23,813 29,829 67,410 |
|
| 619,244 474 - 2,702 622,420 |
|
| 619,244 711 206 3,841 624,002 |
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 2023 Additions Revaluation At 30 June 2024 Historical cost At 30 June 2024 At 1 July 2023 |
Shares in Other Investments subsidiary undertakings £ £ 1 96,774 - - - 11,138 |
|---|---|
| 1 107,912 |
|
| 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 2024, the company's capital and reserves amounted to £520,797 (2023 - £509,442), its turnover was £199,116 (2023 - £188,749) and the Profit for the Year amounted to £70,151 (2023 - £44,800).
16
Institute of Corrosion Notes to the Accounts for the year ended 30 June 2024
| 11 Debtors Trade debtors Other debtors Prepayments & accrued income 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 Funding for subsidiary undertaking |
2024 £ 71,929 - 578 140,927 213,434 2024 £ 104,228 1 34,367 138,596 2024 £ - Unrestricted funds £ 237,595 819,929 (138,596) 918,928 |
2023 £ 46,651 41,283 - 90,116 |
|---|---|---|
| 178,050 | ||
| 2023 £ 34,629 10,168 45,895 |
||
| 90,692 | ||
| 2023 £ - |
||
| Restricted funds £ 511,535 - - |
||
| 511,535 |
15 Unrestricted Funds
| Accumulated fund | Balance at Incoming 01/07/2023 £ £ 659,280 827,081 |
Outgoing Transfers Unrealised Balance at gain/(loss) on 30/06/2024 investment £ £ £ £ (588,305) - 11,138 909,194 Movement in Funds |
|---|---|---|
| 659,280 827,081 |
(588,305) - 11,138 909,194 |
17
Institute of Corrosion Notes to the Accounts for the year ended 30 June 2024
16 Restricted Funds
| stricted Funds | ||
|---|---|---|
| Corrosion network group Building endowments Building fund Young engineers fund |
Balance at Incoming 01/07/2023 £ £ 855 - 7,535 - 504,000 - 8,879 - |
Outgoing Transfers Unrealised Balance at gain on 30/06/2024 investment £ £ £ £ - - - 855 - - - 7,535 - - - 504,000 - - - 8,879 Movement in Funds |
| 521,269 - |
- - - 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 £73,598 (2023 £59,137) were charged to Correx Limited, a trading subsidiary.
18