Royal Academy
of Engineering
//
IJ
Annual Report
and Accounts
202212023
## Contents
## **Who are we?**
## **A charity**
We deliver public benefit from engineering excellence and technology innovation.
## **A National Academy**
We provide progressive leadership for engineering and technology, and independent expert advice to government, in the UK and beyond.
## **A Fellowship**
We bring together an unrivalled community of leading business people, entrepreneurs, innovators and academics from every part of engineering and technology.
Our **vision** is engineering in the service of society.
Our charitable **mission** is to deliver public benefit through engineering excellence and technology innovation.
We have outstanding convening power nationally and internationally.
We understand how to make systems and innovations make a positive difference to society.
We are trusted for our independence and professional excellence.
## **Values**
In everything we do, we are guided by our five values:
**Progressive leadership** – embodying the courage, commitment and ambition to drive positive change for engineering and society.
**Diversity and inclusion** – creating cultures in which everyone can thrive and diverse perspectives enrich our collective performance.
**Excellence everywhere** – bringing evidence, expertise, integrity and a passion for continuous improvement to everything we do.
**Collaboration first** – prioritising collaboration and building partnerships to improve outcomes.
**Creativity and innovation** – solving problems and generating opportunities through creative thinking and innovation.
|||Foreword|2|
|---|---|---|
|||How we deliver impact|4|
|||Building a sustainable society…|6|
|||…and an inclusive economy|7|
|||Our impact nationally…|8|
|||…and internationally|9|
|||Talent and diversity|10|
|||Innovation|14|
|||Policy and engagement|18|
|||People and operations|22|
|||Future plans|26|
|||Report of Trustee Board|28|
||Recipients of Academy grants|32|
|||Royal Academy of Engineering (parent charity of group)||
||structure, governance and management|35|
|||Auditor’s report|38|
|||Consolidated statement of financial activities|41|
|||Balance sheets|42|
|||Consolidated statement of cash flows|43|
|||Notes to the accounts|44|
|||Legal and administrative information|60|
|||Partners, supporters and donors|61|
## **Royal Academy of Engineering Incorporated by Royal Charter**
## **HRH The Prince Philip Duke of Edinburgh KG KT OM GBE**
Founding Senior Fellow
## **HRH The Princess Royal KG KT GCVO QSO**
Royal Fellow
## **HRH The Duke of Kent KG GCMG GCVO**
Royal Fellow
**Professor Sir Jim McDonald FREng FRSE** President
## **Key contacts**
Fellowship: membership@raeng.org.uk | 020 7766 0600 Events: events@raeng.org.uk Awards: awards@raeng.org.uk Awardee Excellence Community: awardees@raeng.org.uk
**Front cover photo:** © Shutterstock
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Royal Academy of Engineering
**FOREWORD**
## Foreword
The year covered by this review encompassed an extraordinary number of events of historic significance. Everyone connected to the Academy was, of course, deeply saddened to learn of the passing of Queen Elizabeth II, who maintained a keen interest in engineering and technology throughout her life, giving her name to the Queen Elizabeth Prize for Engineering and awarding the inaugural Prize to the inventors of the internet and the World Wide Web.
From the change in monarch for the first time in 70 years, to the ongoing Russian invasion of Ukraine, which has had significant impacts on supply chains, the economy and energy security as well as a devastating human cost, and the political turmoil in Westminster that saw the UK led by three Prime Ministers in 12 months, these events will be remembered for many years. In the midst of all of this change, the tireless commitment and contributions of our Fellows, staff, partners and wider community have been invaluable constants, which enabled us to make significant progress despite the disruption.
In 2022/23, we also reached the halfway point in our current strategy period. Our overarching goal is to harness the power of engineering to build a sustainable society and inclusive economy that works for everyone. We continued to deliver on this in three ways: by influencing policy and public perceptions; fostering talent and diversity; and promoting innovation. While the Academy’s activities have a broad span, all of our work reflects these three priorities.
You can read in this review how, for example, our policy work to put engineering and systems thinking at the heart of decision-making continues to bear fruit. One research study from the National Engineering Policy Centre found that infection control measures could save up to £23 billion during future pandemics. This
led the government’s then Chief Scientific Adviser, Sir Patrick Vallance HonFREng FRS, to thank the Academy for providing evidence that could help shape future pandemic preparedness activities. A separate report examined the role of hydrogen in net zero energy systems and called on the UK government to act swiftly to avoid falling behind international competitors. Our complementary activity to shape public perceptions of engineering saw 2022’s National Engineering Day deliver its biggest impact to date, with extensive media coverage and videos featuring engineers from the _Great British Bake Off_ , and almost 75 million potential Twitter impressions.
Our public engagement efforts work hand in hand with our talent and diversity programmes to try to address the profession’s significant skills and diversity shortfall, including by inspiring the next generation of engineers. In the last year, we celebrated 10 years of Connecting STEM Teachers (CST), which helps teachers to engage more students with science, technology, engineering and maths (STEM). Over the past decade, CST has sought to engage potential future engineers and change how these subjects are taught and perceived.
Our innovation activities also reached some important milestones this year. We carried out a mid-term review of our flagship Chairs in Emerging Technologies programme, which found that our investment has helped researchers raise significant additional funding and develop collaborations that span the globe. Activities also began to mark the Enterprise Hub’s 10[th] anniversary, which has now supported over 350 of the brightest engineering and technology entrepreneurs.
Recognising and supporting the different ways in which engineering innovation contributes to local economies is an important part of how the Academy advances an inclusive economy. Our strategy set out a specific ambition to increase our regional engagement and we are especially proud of our progress in this area. We launched a new Enterprise Hub in Wales and laid the foundations to establish another in Scotland. We embarked on a new Northern Ireland Engineering Education Programme, and the latest round of our Regional Talent Engines programme helped engineers seeking to bring original concepts to market in Northern England and Northern Ireland.
Further afield, our international collaborations included a new multi-stakeholder partnership, launched together with the United Nations High Level Climate Champions,
to end the open burning of waste in Africa by 2040. International networks are vital to our ability to have impact on complex global challenges, and we have been proactive in extending these to our UK awardees. For the first time this year 10 Academy deep-tech innovators travelled to the US as part of our EXPLORE programme, to foster connections with global leaders and investors in their sectors.
We have taken steps this year to deepen engagement with the Fellowship, including to improve Fellows’ digital experience of the Academy, on which work continues. We have also invested in creating more opportunities for engagement with our awardees, by establishing the Awardee Excellence Community, to deepen awardees’ involvement with the work of the Academy and their connections with each other and with the Fellowship, while ensuring our thinking reflects the full diversity of future as well as current engineering leaders.
Throughout this wide-ranging and ambitious work, one vital theme remained consistent: the involvement, expertise and guidance of the Academy’s Fellows. None of the progress described in this review would happen without the generosity and commitment of our Fellows and partners. In these momentous times – and in the face of momentous challenges ranging from climate change to public health, security, emerging technologies and more – it is our community that enables us to deliver, whether that’s by reviewing applications, mentoring awardees, connecting us to local and international ecosystems, shaping our policy advice, speaking at our events, or championing public engagement activities.
We hope this review successfully demonstrates our gratitude to our entire community for making our work possible. It is down to you that we can keep moving, step by step, towards the sustainable society and inclusive economy our future demands. Thank you.
## **Professor Sir Jim McDonald FREng FRSE**
President, Royal Academy of Engineering **Dr Hayaatun Sillem CBE** CEO, Royal Academy of Engineering CEO, Queen Elizabeth Prize for Engineering Foundation
**Images from a selection of Academy events across the year, including the 2022 Awards Dinner, Heritage Society Lunch and the 2022 New Fellows Dinner**
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## How we deliver impact
**Harnessing the power of engineering to build a sustainable society and an inclusive economy that works for everyone**
## **INPUTS**
**----- Start of picture text -----**
Expertise and leadership from Academy staff, Fellows, awardees, and industrial and institutional partners.
Funding from government, industry and other partners.
Consultation with and applications from engineers and innovators.
International and regional partnerships and networks.
OUTPUTS
Talented researchers, Engineering and
innovators and technology research Policymakers accessing
entrepreneurs with outputs with high potential engineering expertise and
enhanced skills, careers for commercialisation and systems thinking.
and connections. societal benefits. Engineers engaging with the
More diverse skills and More innovative, resilient public on how innovation
inclusive cultures in and investment-ready can enhance their lives.
engineering research and engineering businesses.
business.
OUTCOMES
Greater UK and global
innovation capacity, and
novel engineering solutions,
to support a more sustainable Policymakers equipped to
A world-leading, highly and resilient future. make more effective policies,
skilled, truly inclusive Engineering jobs and services including on net zero.
engineering workforce across the UK that make the
Wider recognition of the value
across the UK. nation more productive, secure,
of engineering.
healthier and competitive.
Greater investment into
UK engineering and
innovation.
IMPACT
Faster progress towards net zero and a sustainable world.
Engineering and technology better harnessed to address global and societal challenges.
More balanced and inclusive economic opportunity across the UK.
UK more competitive and productive.
ALENT AND DIVERSIT INNOVATION LICYAND ENGAGEME
T Y O N
P T
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## Building a sustainable society…
**----- Start of picture text -----**
Our Major Project Award
for Sustainability was
awarded to the world’s
longest subsea connector
between the UK and
Norway , which allows
renewable energy to flow
between the two countries for
the first time, reducing carbon
emissions by an estimated
23 million tonnes in the
UK alone by 2030
Through Engineering X,
we launched a multi-
stakeholder partnership
Enterprise Hub
to end the open burning
member Notpla – which
of waste in Africa by
has created a
2040 , save lives and prevent
biodegradable alternative
pollution, by bringing
to plastic made from
together engineers, cities and
seaweed and plants – won
African governments
the Earthshot Prize, for its
innovative solution to
‘build a waste-free
world’
We advised the
government on
hydrogen’s critical role in
a net zero energy system ,
urging policymakers to
capture the opportunities
it presents and scale up its
The Queen Elizabeth Prize
production to avoid
for Engineering was awarded
falling behind
to Professor Martin Green,
international
Professor Andrew Blakers,
competitors
Dr Aihua Wang and Dr Jianhua
Zhao for transforming the
efficiency of solar cells and
dramatically reducing costs ,
making solar the cheapest
source of electricity in most
countries
**----- End of picture text -----**
## …and an inclusive economy
**----- Start of picture text -----**
We awarded
31 students who are
women with Amazon
Future Engineer bursaries
to support them while
studying for a computer
We launched a pilot science or related
equality, diversity and degree at a UK
inclusion (EDI) platform
university
that provides startups and
scaleups with access to
tailored training, resources,
case studies and policy
templates , to help them
create workplace cultures
in which everyone can
thrive
We presented the
MacRobert Award – the UK’s
longest running and most
prestigious award for UK
engineering innovation – to
Quanta Dialysis Technologies
for its compact dialysis
machine that enables kidney
failure patients to treat
themselves at home ,
relieving pressure
on hospitals
In its first year, the
Regional Talent Engines
programme awarded
Our research, published
£380,000 in funding to
on National Engineering
innovators in Northern
Day, found that the
Ireland, Northwest England,
engineering economy plays
Northeast England, and
an important role right
across the UK , with hotspots Yorkshire and Humber ,
supporting 19 startups that
of engineering in Mid Ulster,
have collectively attracted
West Cumbria, Flintshire and
more than £3 million in
Wrexham, West Lothian,
follow-on funding
and Aberdeen and
Aberdeenshire
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## Our impact nationally…
## We launched a **Northern Ireland**
**Engineering Education Programme**
to encourage more young people in the region, particularly young women and those from socially disadvantaged backgrounds and other underrepresented groups, to progress towards careers as engineers or engineering technicians
In partnership with WMG at the University of Warwick, we worked with 25 schools and colleges in the West Midlands through the **Lord Bhattacharyya Engineering Education**
**programme** , to encourage more young people, particularly those from underrepresented groups, to progress into engineering and technician roles
Undergraduate Elis Thomas became the first recipient of a £15,000 Panasonic Trust higher education bursary, as part of the **Welsh Valleys Engineering Project** , helping him to study engineering at Cardiff University
Our **Chairs in Emerging Technologies programme** supports 40 global research visionaries at 17 universities, from Glasgow and Edinburgh to Newcastle, Nottingham, South Wales and Southampton, to develop emerging technology areas that have potential to deliver economic and social benefit to the UK. Research areas include battery technologies, implantable medical devices, personal assistive robots, resilient ocean engineering, and sustainable chemical and materials manufacturing
More than 300 leaders from industry, academia, government, media, and policy attended our **Awards Dinner** , and saw awards given for robotic skin, miniature AI sensors, a new imaging technique for healthcare or radiation mapping, new battery solutions, a tool for identifying antibiotic resistance, concrete decarbonisation, and much more
## …and internationally
We’ve **formed an alliance with seven national engineering**
**Engineering X** ’s global review of the engineering response to COVID-19, which called for action by policymakers, business and academic leaders worldwide, was presented to senior delegates from 30 countries during the annual conference of the International Council of Academies of Engineering and Technological Sciences in Versailles. The report was covered by 194 news outlets in 37 countries and on the National Preparedness Commission website
The **LIF Global programme** delivered 349 hours of training and 1,226 hours of mentoring to 70 innovators from 10 countries – Barbados, Brazil, Colombia, India, Indonesia, Malaysia, Mexico, Peru, Romania and Thailand – resulting in 46 new IP registrations, 18 new UK partnerships, creation of 54 jobs, and over $2 million in funds raised
**academies in Europe** through Euro-CASE to develop policy advice on sustainable strategies for critical raw materials
We awarded the **Africa Prize for Engineering Innovation** to Norah Magero – the first Kenyan and second woman to win the award. It was awarded for Vaccibox, a small, mobile, solar-powered fridge that safely stores and transports medicines
We launched a **new framework for collaboration with China on net zero** , alongside a workshop to strengthen UK–China partnership on offshore wind
Five life sciences innovators built their networks, increased their visibility and accessed new opportunities in Massachusetts, while five AI and machine learning specialists did the same in San Francisco as part of the **Enterprise Hub’s EXPLORE deep-tech**
**programme**
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**TALENT AND DIVERSITY**
## Talent and diversity
In the face of complex, evolving and interconnected global challenges, we need more engineers and technicians than ever, with a wider range of skills and a more diverse range of perspectives.
**Our MSc in Motorsport Scholarship Programme aims to help more people from Black and mixed Black ethnic backgrounds study a motorsport-related subject**
Engineers can and must be influential agents of change as we strive to build a more sustainable society, providing leadership both within and beyond the UK.
## **FUELLING MOTORSPORT SCHOLARSHIPS FOR BLACK STUDENTS**
Thanks to generous funding from The Ignite Partnership, in 2022 we launched the MSc Motorsport Scholarship Programme to support individuals from Black and mixed Black ethnic backgrounds to study for a master’s degree related to motorsport.
To respond to this need, the Academy’s strategic goals include helping to increase the diversity, quality and quantity of engineers in the UK and internationally, and promoting a truly inclusive engineering workforce that sets the highest standards of technical excellence, ethics and professionalism.
The Ignite Partnership was created by Sir Lewis Hamilton HonFREng and the Mercedes-AMG PETRONAS F1 Team to increase diversity and inclusion in motorsport. Through the programme, the Academy will select an annual cohort of at least five final-year undergraduate students in 2023/24 and 2024/25 and provide wide-ranging support for their studies. The programme is a direct response to recommendations made by the Hamilton Commission report, _Accelerating Change: Improving Representation of Black People in UK Motorsport_ , which was co-chaired by Sir Lewis and our CEO Dr Hayaatun Sillem CBE. The Board of Commissioners also included our Honorary
In 2022/23, our work to foster talent and diversity sought to increase the number of people from underrepresented backgrounds entering the profession, including women, those from Black, Asian and minority ethnic backgrounds, LGBTQ+ people, and those with disabilities or who are neurodiverse; as well as efforts to better connect emerging engineering leaders to Academy networks to support their ongoing development.
Fellows Dr Nike Folayan HonFREng and Dr Anne-Marie Imafidon HonFREng.
Scholarship applications opened for the first time in December 2022, and the successful students will receive £25,000 funding to cover tuition, as well as living costs. The programme also includes additional support such as networking events and motorsport experiences. Our objective is for 90% of scholarship awardees to be working in engineering roles – with the majority in motorsport – within two years of completing their MSc.
“More than ever we must focus on how we can use action to change motorsport for the better and this is an exciting next step.”
Sir Lewis Hamilton HonFREng
## **LAUNCHING OUR AWARDEE EXCELLENCE COMMUNITY**
After our 2020/21 governance review recommended creating a unified network to bring together the Academy’s awardees, in July 2022 we launched the Awardee Excellence Community. It unites 3,000 current and past awardees and prize winners from across our UK and international programmes.
Our goal is to build a powerful, vibrant, connected, and diverse community of exceptional engineers, who support and inspire each other, and who work with the Academy to change the world for the better. The community aims to connect and harness the talent, passion and expertise of awardees, who will have the opportunity to meet, learn from and support each other, keep up with our latest news, and shape the Academy’s work. A member of the community will also join the Academy’s Trustee Board.
The initial response has been positive. Over 600 awardees responded to a survey about the community shortly after it was launched, with nine out of ten people saying they were interested in participating. The chance to network and guide the Academy’s work were seen as the most valuable aspects. Soon after we launched the community, a group of awardees came together in discussions to help inform our long-term vision to 2040. We also hosted a series of Academy CAFÉ (Connecting Awardees/Fostering Engagement) online events, on issues such as influencing policy and politics, as this exciting new community continued to take shape.
We continue to support our alumni in other ways. Together with the Academy of Medical Sciences, British Academy, Learned Society of Wales, Royal Irish Academy, Royal Society of Edinburgh, and the Royal Society, in June we supported the launch of the UK Young Academy – the first UK-wide network connecting exceptional early-career researchers, innovators, clinicians, professionals, academics, and entrepreneurs. Dr Fiona Walport, a Research Fellow at Imperial College London and a former Academy awardee, read about the UK Young Academy in our newsletter and was encouraged to apply by her mentor – also an Academy Fellow. She said: “I feel privileged and excited to join the first cohort of the UK Young Academy … I have no doubt that my Royal Academy of Engineering Advanced Leadership Award propelled my early career, and I am forever grateful for the experiences that I was able to have.”
Our Access Mentoring scheme is also working to increase the diversity of our grant applicants and awardees. It provides additional support to research programme applicants from groups that are persistently underrepresented within UK engineering. All Academy awardees receive mentoring from an Academy Fellow after receiving an award, but Access Mentoring enables people to access support while they are applying. It’s a powerful way to improve diversity in the talent pipeline.
Since launching in 2021, 108 applicants have received Access Mentoring, and the feedback has been positive. One mentee said: “For someone with my disability, Access Mentoring was invaluable. I don’t think I could have done the application without the help.”
## **ENGAGING THE NEXT GENERATION OF ENGINEERS**
Inspiring future engineers needs to begin in school classrooms. But engineering is not a distinct school subject and many educators have limited opportunities to learn about its potential. For 10 years, our Connecting STEM Teachers (CST) programme confronted this challenge, by creating a national support network for teachers across all STEM subjects. The network helps teachers gain the knowledge and confidence to engage more students from more backgrounds with STEM. In June 2022, we celebrated CST’s impact with over 125 students and teachers at an anniversary event, held at Prince Philip House.
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**TALENT AND DIVERSITY**
**TALENT AND DIVERSITY**
**Students from Colyton Grammar School in Devon, who were winners of our Sustainable Futures Innovation Challenge, announced at CST’s anniversary event, with their idea for a reusable, edible, plastic-free container**
Many organisations have collaborated with the Academy to increase the impact of CST over the years, including EngineeringUK and STEM Learning. We are grateful to our partners – our strategic partner Shell, Amazon and the estate of the late Mr John Gozzard – and in July 2022 celebrated our ongoing relationship with Boeing, which has now donated £500,000 to CST. Boeing awarded the Academy further funding for 2022/23 that helped to improve STEM learning for up to 145,000 students. Sir Martin Donnelly, President of Boeing Europe and Managing Director of Boeing UK and Europe, said: “Equipping future skilled engineers is the golden thread that will guarantee the sustainable future of aviation. Boeing is thrilled that our donations are enthusing a future generation of STEM experts and engaging teachers and students across the country in the opportunities these subjects can bring.”
In spring 2022, we launched a pilot initiative to encourage more young people in Northern Ireland, particularly young women and people from underrepresented groups and disadvantaged backgrounds, to progress towards professional engineering roles. Funded by the Department for the Economy in Northern Ireland, we support a network of 52 schools and colleges with grants, peer-to-peer support, links with industry, and more so that young people can continue into further and higher education.
In July 2022, our Welsh Valleys Engineering Project (WVEP) expanded to include all 54 schools in Blaenau Gwent and Merthyr Tydfil. WVEP encourages students to take up STEM subjects post-16 by enriching the curriculum and building links with local STEM employers to bring real-world engineering practice into schools.
Over the past five years, WVEP has delivered over 25,000 STEM learning opportunities. In 2022, Welsh Economy Minister Vaughan Gething MS called the project an ‘integral part’ of the government’s efforts to enable the South Wales Valleys to become a globally recognised centre for technology.
Then in March 2023, 80 Year 12 students took part in a unique ‘Build a dome in a day’ engineering workshop in the nave at Holy Sepulchre, Holborn Viaduct – inner London’s largest parish church, supported by funding from our Ingenious programme. As part of a series of events to mark the 300[th] anniversary of Sir Christopher Wren’s death, the students built a replica of the famous St Paul’s Cathedral Dome, alongside trainee engineers. The students’ efforts captured the attention of BBC London, featuring on the evening news. It was another way to inspire the next generation of engineers, bringing students with a passion for design and technology closer to one of the masterpieces of structural engineering.
## **ENHANCING DIGITAL SKILLS**
The engineers of 2030 and beyond must have the right skills for our increasingly digitised world, and a central part of our policy work is aiming to address this. In June 2022, we took on a leadership role in the Digital Skills Council, created following the launch of the government’s UK Digital Strategy. The council brings together the government and leaders from industry, the public sector and academia to address the current and future demand for digital skills.
The council is co-chaired by Phil Smith CBE FREng, Chair of our Education and Skills Committee, who was already co-chairing the then Department for Digital, Culture, Media and Sport’s Digital Skills Partnership. Academy CEO Dr Hayaatun Sillem is also a member and our Head of Education and Skills Policy, Juliet Upton, acts both as Secretariat and provides policy advice. In its first year of operation, the council has built strong stakeholder relationships to ensure that it works in partnership to amplify ongoing work. Activities so far include co-funding a roadmap with FutureDotNow for collective action to build basic digital capability in working-age adults; commissioning a study on the perception of tech subjects and careers, in particular to understand why fewer women choose digital courses and careers; and identifying how best to incentivise SMEs to offer more and higher quality digital apprenticeships both to young people and those in work seeking to re-skill.
## **IN FOCUS**
**Loughborough University students use the Inclusive Engineering Excellence Hub, created with support and funding from our Diversity Impact Programme** © Phil Wilson, Photographer for Loughborough University Creative and Print Services
## **THE DIVERSITY IMPACT PROGRAMME**
“Sheryl Williams, Professor in Technology Enhanced Learning, Laura Justham, Senior Lecturer in Machine Learning, and I have led a programme of activities to generate interest – from encouraging students to become Inclusive Engineering Hub ambassadors and EDI Champions, to organising engineering, professional skills and self-care activities, which comprise hands-on and inspirational demonstrations covering everything from bioreactors and robotics to programming and workshops.
Our Diversity Impact Programme aims to inspire change in university engineering departments, so all students can succeed and the unique perspectives and experiences of engineers from diverse backgrounds can enhance the profession. Through the programme, which is funded by the Department for Science, Innovation and Technology, we provide grant funding of up to £100,000 for new projects in engineering departments that address unequal outcomes experienced by students from underrepresented groups.
“The biggest benefit of working with the Academy is the support and the acceleration this can have on an initial vision. It stems from the openness and flexibility of working with the Academy’s programme officer and team, because everyone has a genuine interest in the development of our work to make a positive difference and drive positive change for engineering and society. It is a partnership and the values of the Academy centre on progressive leadership, diversity and inclusion, excellence, collaboration, creativity, and innovation.”
Loughborough University was one of 19 institutions we supported in 2022/23. It used the funding to help co-create an Inclusive Engineering Excellence Hub with students, taking an intersectional approach to build inclusive learning environments, enhance opportunities for students from all backgrounds, and ensure every student feels welcomed and valued.
“Our newly refurbished space comprises accessible study and activity zones peer-led by student ambassadors, a kitchen and relaxed area to create a common room-feel that also supports students affected by the cost-of-living crisis with dignity, and a support zone for daily drop-in access to support services, such as our careers network and student success coaching.
**Dr Elizabeth Ratcliffe** , Senior Lecturer in Biological Engineering, and Director of Equity, Diversity and Inclusion for the School of Aeronautical, Automotive, Chemical and Materials Engineering, Loughborough University
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**INNOVATION**
## Innovation
Engineering innovation and enterprise have the power to improve productivity, competitiveness, public health, safety and security, while also delivering economic and social value for people from all parts of the UK.
**A piece of fabric with the Royal Academy of Engineering logo is levitated using sound waves at our annual Research Forum, demonstrating the work of Professor Sriram Subramanian’s team at UCL. Professor Subramanian is a Chair in Emerging Technology, researching interactive technologies using metamaterials**
A key focus of the Academy’s strategy is on fostering a bigger, more resilient and more diverse network of engineering innovators, with the connections, insights, commercial awareness and leadership skills to turn ideas into reality. We do this in a wide range of ways, including supporting entrepreneurs directly, driving a more favourable policy environment, investing in groundbreaking research, and bringing innovators from academia and industry closer together.
- lead major research, translation and innovation programmes around key emerging technologies
- build world-leading centres of excellence in strategically important technologies, supporting their commercialisation and adoption
- build and maintain a strong network of industrial and other partners to facilitate technology commercialisation and the creation of significant UK economic and social benefit.
In early 2023, we carried out our first mid-term review to evaluate the chairs who received awards in 2018. The nine site visits across the country – in Glasgow, Edinburgh, York, Oxford, Bristol, and London – assessed progress against original objectives and milestones, and the pathways to impact for the emerging technology. They showed that the awards have helped: raise £95 million in additional funding; support 236 team members; create 12 spinout companies;
## **INVESTING IN RESEARCH**
Since 2018, the Academy has invested £94 million into the Chairs in Emerging Technologies (CiET) programme, supporting 40 global research visionaries over 10 years. Funded by the UK Department for Science, Innovation and Technology, the programme provides long-term support to enable researchers to advance innovative technologies in a strategic way. The chairs are asked to:
license 12 patents and grant nine; and foster 111 UK collaborations and 76 international collaborations.
We continued to announce new awards, with four new awardees in December 2022 and two more in February 2023. Each received £2.5 million for research focused on areas including the next generation of quantum sensors, an emerging platform for electronics and optoelectronics, and exploiting the circular economy for sustainable cellulose photonic pigments.
We play an important role in stimulating collaboration and mobility between industry and academia. In 2022/23, we supported partnerships between 22 universities and 34 industrial partners through 24 Industrial Fellowships and 10 Research Chair/Senior Research Fellowships, 18 of which were collaborations with SMEs.
The projects covered a range of research areas from developing advanced technological solutions to relieve overstretched health services and advancing the digital security of nuclear facilities and critical national infrastructures, to improving the sustainability of food production and computing systems’ energy efficiency. Other projects focused on achieving carbon capture and storage at scale, reducing waste in high-value manufacturing, improving future aircraft design, and unlocking quantum computing’s full potential.
One of the rounds of Industrial Fellowships was themed: seven talented engineering researchers received awards for projects that addressed a sustainable zero-carbon-energy future. Other projects addressed a wide range of engineering challenges including human–robot cooperation, better batteries and bigger wind turbines.
Additionally, the UK Intelligence Community Postdoctoral Research Fellowships, which are offered by the Government Office for Science and administered by the Academy, provide a vital link between academia and the intelligence community. Each awardee receives funding for at least two years of their project and mentorship from an Academy Fellow, as well as an advisor from the intelligence community. Focusing on areas of unclassified basic research, the fellowships support cutting-edge work that can assist the intelligence, security and defence communities.
Intelligence Community awards made in 2022 supported development of new technologies to
improve the cybersecurity of neural networks, address the increasingly complex demands of deception analysis, and deliver future 6G wireless systems, as well as the use of autonomous robot swarms for underground excavation. Awardees are also invited to attend the Intelligence Community Academic Research Symposium to exchange ideas and engage with fellow experts from diverse scientific backgrounds. Previous awardees have been also invited by the Australian Office of National Intelligence to attend the National Intelligence Community Research Symposium in Canberra to network and develop collaborations.
## **FOSTERING INNOVATION, INTERNATIONALLY**
In 2022, our Leaders in Innovation Fellowships (LIF) programme brought together 70 emerging innovation leaders from 10 countries – in Asia, the Caribbean, Europe, and Latin America – for six months of bespoke training and mentoring. A comprehensive commercialisation training programme was delivered in partnership with Shine – a consortium of partners including the University of Suffolk, ChangeSchool and Mowgli Mentoring that delivers entrepreneurship and mentoring programmes in 40 countries.
Over the course of the programme, innovators received a total of 1,226 hours of mentoring (an average of 18 hours per innovator over five months), and 94% of innovators and mentors said that they will continue their relationship beyond the programme – a strong testament to the connections they’ve built.
While it is still early days, all the innovators derived significant benefit from their time in the UK, whether this was through business meetings, access to subject matter experts, external speakers and trainers, or from meeting each other. During the residential, and through visiting and experiencing different ecosystems, the participants made many connections in the UK.
“For me, the most important thing was having the opportunity to meet people and make some connections within the local ecosystem, to foresee some opportunities of business development with our LIFers, and we were able to build a community, which for me is really good.”
LIF Global 2022 participant
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**INNOVATION**
**INNOVATION**
**Innovators at a Leaders in Innovation Fellowships in-country event in Colombia meet a vertical agricultural farmer in the suburbs of Medellin**
## **INSPIRING NEW THINKING AND GROWTH ACROSS THE UK**
Our Enterprise Hub celebrates its 10[th] anniversary in 2023. Over the past decade, the Academy has supported over 350 of the brightest engineering and technology entrepreneurs through the Hub, including with over £11 million of grants, mentoring from Academy Fellows, training, and lifetime membership of an unparalleled network of like-minded innovators. Hub member startups have gone on to raise over £1.3 billion in additional funding. Set up in 2020, Enterprise Hub Northern Ireland has continued to expand and provide specialist training, events and opportunities for peer-to-peer networking throughout 2022/23.
In 2022 we launched Enterprise Hub Wales to help continue this growth and support the research and enterprise ecosystem across the country. Based in Swansea, Enterprise Hub Wales will build on the work
done by Swansea and Cardiff universities, fostering startups, scaleups and deep-tech innovation, supporting job creation, and collaborating with organisations across Wales. Professor Gareth Davies, Principal Investigator and Chair of the AgorIP Project, said: “The Royal Academy of Engineering has already contributed significantly to high-potential companies established in Wales, and the new Hub provides a powerful endorsement and further boost to this work.” We also secured funding in 2022 to develop Enterprise Hub Scotland, which is due to open in Glasgow in summer 2023.
## **PUBLISHING GUIDANCE FOR SPINOUT ENTREPRENEURS**
Our 2022 _Spotlight on Spinouts_ report, published in April, analysed the universities, local authorities, sectors, and investors supporting spinouts across the UK (with a spinout defined as a startup that builds on an idea developed at a university or research institute). It showed the enormous potential of spinouts, with 1,130 active in the UK in 2021 and a record £2.54 billion generated in equity investment – almost double the previous year. Less positively, however, the report also showed the stark lack of diversity among directors and founders of UK spinouts – with 86% having allmale founders and 92% having all-male directors.
Our new _Entrepreneur’s Handbook_ , published in August 2022, is designed to support more academics from every background to understand and navigate the challenges of building a spinout. It covers a wide range of advice, from forming a business idea to securing investment, with sections on negotiating with universities, business planning, market research, and growing companies. It also includes numerous insights from Enterprise Hub members, entrepreneurs, technology transfer officers, and investors to help explain the motivations and potential behaviours of stakeholders with diverse objectives. Commenting on the advice in the handbook, Enterprise Hub member Florence Gschwend, Co-Founder and CTO of spinout company Lixea, said: “After receiving amazing support from the Enterprise Hub to develop my own business, which provided me with mentoring and other opportunities that I needed to start my venture, I know that the _Entrepreneur’s Handbook_ will provide an invaluable reference for those looking to spinout.”
## **IN FOCUS**
**The first cohort of the EXPLORE mission in Boston, Massachusetts, with Dr Katerina Spranger in the centre**
## **EXPLORE**
EXPLORE is an exclusive programme for Academy alumni, run through the Enterprise Hub, that supports the UK’s most promising engineering entrepreneurs working in deep tech. In each cohort, up to five Hub members are given bespoke support, based on their needs and the sector they work in, and embark on an international mission packed with meetings, insights, and networking opportunities. The aim is to help innovators navigate the challenges of being a deep-tech founder, while increasing their visibility, connections and exposure to investment in new ecosystems.
The support includes £25,000 of grant funding, guidance from industry experts on subjects such as capital, talent and intellectual property, expert-led training, mentoring and coaching, and a five-day international mission to connect with prestigious deep-tech leaders and investors.
Our first cohort brought together deep-tech founders focused on life sciences. They travelled to Massachusetts in April 2022 for their international
mission. In February 2023, the second cohort – all specialists in artificial intelligence and machine learning – travelled to California to immerse themselves in San Francisco’s renowned deep-tech ecosystem. Dr Katerina Spranger, CEO and Founder of Oxford Heartbeat, was a member of the first cohort.
“Through an Enterprise Fellowship, the Academy was among the first supporters of Oxford Heartbeat – invaluable during those early days. The programme not only provided essential courses, mentorship, and a stipend, but more importantly, it granted access to an amazing network of individuals who shared the same values and belief that engineering has the power to change the world. As a female founder, for me this recognition and support were particularly empowering and encouraging.
“The EXPLORE programme came at the perfect time for us as we were looking to expand into the US market. The preparatory sessions offered a comprehensive overview of all the factors involved in such a move. The week-long mission to Boston itself was impressive, filled with impactful events and networking opportunities with senior leaders in the Massachusetts medtech ecosystem … we established invaluable connections and gained a clear plan of action for our US expansion journey. We received an invitation to join the US accelerator programme in Boston, where we fully immersed ourselves in the entrepreneurial ecosystem for several months. This experience proved invaluable, expanding our network and providing opportunities for technology pilots and other promising avenues of growth.
“Currently, we are diligently working towards obtaining FDA approval for our first neurovascular product, a pivotal milestone that will enable us to launch our innovative solution in one of the most crucial healthcare markets. These remarkable developments, made possible through the EXPLORE programme, have positioned us for future success and exponential growth.”
**Dr Katerina Spranger** , CEO and Founder, Oxford Heartbeat
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**POLICY AND ENGAGEMENT**
## Policy and engagement
To help drive prosperity and increase progress towards a sustainable, inclusive future, engineering expertise should be at the heart of decision-making – across government, within communities and internationally.
_**Great British Bake Off**_ **engineers (L–R) Andrew Smyth, Dr Giuseppe Dell’Anno and Dr Rahul Mandal with the working clock cake that they baked for National Engineering Day in 2022**
Engineering uses problem-solving, creativity and systems thinking to make things that work and make things work better, meaning engineers can play a valuable role in the face of global challenges – from securing a green energy transition to improving preparedness for pandemics. Guided by our strategy for 2020–25, the Academy strives to ensure engineering expertise is easily accessible to policymakers across all government departments, and engages with wider society to advocate for engineering and raise awareness of its relevance and impact.
organisations, covering the breadth and depth of our profession. Since its launch in 2019, the NEPC’s partners have provided rapid policy advice on a wide range of urgent issues, along with deep insight on long-term challenges.
In 2022, the NEPC launched a new five-year strategy, outlining four priorities to guide its work until 2027. These are to:
- deploy engineering insights
- promote engineering and its role in policy
- develop an inclusive and forward-looking partnership
In 2022/23, this work ranged from leading the debate on low-carbon hydrogen to broadening public perceptions of what engineering looks like by collaborating with _Great British Bake Off_ contestants to engineer an edible, working clock cake.
- extend its networks beyond engineering.
These priorities were in evidence throughout the year, including in the publication of new research into infection control in indoor environments. Commissioned by Sir Patrick Vallance HonFREng FRS FMedSci, the government’s then Chief Scientific Adviser, and entitled _Infection-resilient environments: time for a major upgrade_ , the NEPC study showed that infection control measures could save up to £23 billion
## **GUIDING POLICY DEVELOPMENT**
Led by the Academy, the National Engineering Policy Centre (NEPC) is a partnership of 42 professional
## **INFECTION RESILIENT ENVIRONMENTS: PROGRESS SO FAR**
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MARCH 2021 JULY 2021 AUTUMN 2021 FEBRUARY 2022 JUNE 2022 MARCH 2023
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|---|---|---|---|---|---|
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opportunities from low-carbon hydrogen, how its supply can be scaled up and, crucially, the risks and uncertainties that need to be managed if it is to fulfil its potential in a net zero energy system.
a year during future pandemics. Its authors called on ministers to seize the opportunity to mandate longterm improvements now in commercial, public and residential buildings. Upon publication, Sir Patrick Vallance commented: “I would like to thank the Royal Academy of Engineering and the National Engineering Policy Centre for this independent report which provides government with important evidence and insight to consider as we learn lessons from COVID-19 and ensure we are prepared for the future.”
As debate about the development of AI and its impacts on society intensifies, the NEPC set out the conditions needed for safe and ethical use of autonomous systems. While not all AI operates autonomously, autonomous systems do rely on AI. We set out examples of AI-enabled systems in healthcare alongside the particular considerations relating to their safe and trustworthy use in health settings. This work was shared ahead of a collaborative workshop with the Academy of Medical Sciences on the adoption of AI in healthcare involving clinicians, researchers, regulators and patients. The NEPC has also called for attention to be given to cross-cutting regulations for autonomous systems that apply across sectors, on important issues including transparency and failsafe.
In September, the NEPC published _The role of hydrogen in a net zero energy system_ . The report examined the sustainability of hydrogen for major applications across the economy, including industry, power, transport, and heat and buildings. It called on the UK government to act swiftly to scale-up lowcarbon hydrogen production to avoid falling behind international competitors. At a time when there is a lot of attention on hydrogen, this report provided a balanced and objective assessment of the key
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**POLICY AND ENGAGEMENT**
**POLICY AND ENGAGEMENT**
## **CHAMPIONING SYSTEMS THINKING WITH OUR POLICY FELLOWS**
In 2022 the Academy selected 19 exceptional policymakers to become policy fellows. They work across the public sector in a wide variety of roles, but share one goal: to understand engineering thinking and apply it to their policy challenges.
Throughout the year, policy fellows championed systems thinking in policy, reaching 800 policy professionals through a series of knowledge-sharing events produced with the government’s Policy Profession Unit. These covered truly diverse topics. For example, diplomat Chris Thomson explored how systems thinking can be applied to both River Clyde regeneration and diplomacy in Washington DC, while Eleanor Brown from the Department for Environment, Food and Rural Affairs (Defra) proposed taking a systems approach to the question of how to eradicate bovine tuberculosis.
We also connected the 19 new policy fellows with 181 engineering experts from across industry and academia, and piloted peer-to-peer groups to build collaboration around topics of interest. As Dame Clare Moriarty DCB, Chief Executive of Citizens Advice and former Permanent Secretary for both Defra and the Department for Exiting the EU, said in 2022: “The Policy Fellowship shatters the myth that ‘engineering is for engineers’.” Gareth Lavan, policy fellow and Policy Lead for Climate Education and Sustainability Leadership at the Department for Education, added: “My time as a policy fellow has been instrumental in allowing me to progress my policy challenge. To the uninitiated (as I was!), the term ‘systems thinking’ does, prima facie, conjure up pictures of cold logic models – but the opposite is actually true: rigorous systems thinking demands that the user and their needs be put at the heart of policymaking.”
## **REACHING MILLIONS ON NATIONAL ENGINEERING DAY**
National Engineering Day is a central part of our ongoing _This is Engineering_ campaign to inspire young people to consider a career in engineering. Held in early November and with a new name in 2022, it once again brought significant numbers of people closer to our work, with a focus this year on how engineering improves lives.
There was widespread media interest throughout the day, including Zoe Ball talking about the day on her BBC Radio 2 breakfast show and Steph McGovern dedicating a whole slot to it on her Channel 4 Show _Steph’s Packed Lunch_ . National Engineering Day videos were watched over 200,000 times, related social media posts achieved over 77 million potential impressions across social media – almost double the number for 2021 – and National Engineering Day trended at #3 on Twitter. Engineering champions from Tim Peake to Danica Patrick, the world’s most successful female racing driver, shared National Engineering Day content online.
Much of the interest was created by three former stars of the _Great British Bake Off_ – who also happen to be engineers – teaming up to create a unique, edible clock cake. We had challenged them to make a bake celebrating engineers and they responded in style, creating a classic antique clock with a mahoganyeffect chocolate veneer. A timely and very tasty way to make the point that we need more engineers to address current and future challenges!
“People always jokingly ask me why engineers do so well at Bake Off. There’s no way of knowing for sure. But we do know that engineers are used to thinking creatively and tackling problems, small and large, on a daily basis. This gives them the tools needed to create a great bake and avoid the dreaded soggy bottom!”
Dr Giuseppe Dell’Anno, contestant and engineer
Events to mark the day included a parliamentary reception, hosted by Lord Mair and attended by an audience of over 70 parliamentarians, industry partners, Academy representatives and _This is Engineering_ campaign representatives. Academy CEO Dr Hayaatun Sillem CBE raised further awareness by speaking at the WIRED Impact conference about diversity and inclusion, the role of engineering in sustainable development and the need to support entrepreneurs from underrepresented backgrounds. Numerous other organisations got yet more people talking about engineering – from Amazon creating an Engineering Heroes booklist to Transport for London displaying National Engineering Day-themed posters.
## **IN FOCUS**
**Workers at the Dandora dumpsite in Nairobi, Kenya, where open burning of waste has a significant impact on human health***
through new technology, infrastructure, funding and behaviour change campaigns.
## **ENGINEERING X AND THE OPEN BURNING OF WASTE**
Engineering X is an international collaboration that brings together some of the world’s leading problem-solvers to develop practical, sustainable and accessible solutions to the most pressing engineering, safety and sustainability challenges. In 2022/23, a key focus of the project’s Safer End of Engineered Life programme was the open burning of waste in Africa.
Dr Andriannah Mbandi is the Waste Lead for the UNHLCC. She believes the collaboration with Engineering X is critical to create awareness, momentum and a path to solving this challenge:
“From the first moments, our team knew that partnership was the only way to end an unsafe practice that has been going on for centuries. By bringing together NGOs and civil society, alongside public and private sector entities – including those informal groups that currently handle waste, often by burning – we’ve already made excellent progress. Together, we’ve bought the issue to the front of minds everywhere in major global and regional forums, including the African Ministerial Conference on Environment, and the 26[th] and 27[th] UN Climate Change Conferences.”
Currently, only 11% of waste from Africa’s urban areas goes to managed landfills, with the rest dumped and burned. This dramatically impacts human health, as poor air quality is linked to 1.2 million premature deaths annually in Africa. The black carbon emissions also contribute to climate change, with an impact up to 5,000 times greater than CO2 and of a scale equivalent to 2–10% of global CO2 equivalent emissions: potentially double the impact of aviation but attracting a fraction of the finance.
Professor Desta Mebratu of Stellenbosch University, who led the Engineering X project until the end of 2022, added: “It’s quite tremendous to see this level of support from stakeholders right across Africa. We have momentum, we have goodwill and – with the backing of Engineering X – we have the resources to help bring people and organisations together to work towards ending this practice and prevent more impact on health, safety and the environment.”
In August 2021, Engineering X partnered with the United Nations High Level Climate Champions (UNHLCC) team, launching a multi-stakeholder partnership at COP27 in November 2022 to end the open burning of waste in Africa by 2040. The partnership will help mobilise African governments to implement a landmark resolution, agreed in September 2022, to improve waste management
***Images used were taken by Sam Barker as part of Lloyd’s Register Foundation’s Impact Review 2022. Engineering X is a collaboration between Lloyd’s Register Foundation and the Royal Academy of Engineering.**
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**PEOPLE AND OPERATIONS**
## People and operations
In order to deliver on the ambitions in our strategy and to create the best experience for everyone connected to the Academy, we are working intensively to improve our operational capability and our capacity to attract, retain and engage excellent staff.
**Academy staff members from the Engineering X team at the Lloyd’s Register Foundation Safer World Conference**
In December 2022, we launched our new People Strategy, which supports the Academy’s overarching strategy. Our focus is on having aligned, healthy, fulfilled and highly engaged employees, with the skills, knowledge, behaviours and values to succeed, always supported by talented leaders. The People Strategy comprises three central strands:
- People excellence – ensuring our systems, processes, policies and procedures are inclusive, progressive, accessible, simple and transparent.
Our staff team continues to grow, rising from 162 employees in April 2022 to 184 in March 2023, and we now have an increasing number of staff who are based regionally. We have added capacity to our HR team to enable a culture where our people can deliver the Academy’s charitable objectives and thrive while doing so.
- A talent management review – focused on how we support development, progression, recruitment, reward and recognition.
- Employee voice and engagement – focused on creating routes to provide feedback, raise concerns, understand the lived of experiences of employees across the Academy, and develop effective communication, including from the Senior Leadership Team (SLT).
We have also increased our capacity in the analysis team to enable greater focus on more effective and appropriate use of qualitative and quantitative analysis. The function supports all teams in two
Our programmes function has expanded and we’ve appointed our first Head of Grants Processes, who is working with our Programme Managers Group and supporting processes on grant giving and management across the Academy. Our policy directorate has also restructured, with engineering policy advice focusing on three critical areas for engineering: climate and sustainability; health and resilience; and digital and physical infrastructure.
main areas: monitoring and evaluation (M&E) and policy and projects (P&P). Building in an analysis or evaluation stage in project or policy design will help to better understand the project or policy’s impact, make a better case for the projects and policies we implement, and strengthen policy recommendations. We’ve also added new roles to aid engagement with our communities, including our first Fellowship Engagement and Events Manager and a Digital Community Manager, who works across Fellowship and the Awardee Excellence Community.
Reflecting these changes, towards the end of 2022, our SLT was restructured and a new Executive Leadership Team (ELT) created, alongside a number of new Associate Director roles. As the Academy grows, it is important that our structure adapts to reflect this growth and that complexity is reduced.
We successfully launched our first internal audit function, which has already added value with recommendations and follow up that has built on our values and appetite for continuous improvement.
## **REDUCING OUR CARBON FOOTPRINT**
to 2019 to 2020 was extensive: 91%. The emissions from the building were also 22% reduced from the previous year. We are now collecting data for following years to offer comparisons, improve our data quality score, reduce our footprint, and include more data into our measurements going forward. We’ve also been working with Company of Cooks, Prince Philip House’s in-house caterers, to reduce food waste at Academy events and the Academy’s SLT all committed to sustainability resolutions at the beginning of 2023.
Our Environmental Sustainability Action Group continues to ensure that the Academy improves its environmental performance. Following our first carbon benchmarking exercise with Planet Mark, which offers certification based on leading international standards, to establish a carbon baseline for the financial year 2019 to 2020, we worked with them again to do the same for 2020 to 2021. With much of that year spent in lockdown and no international travel, the reduction when compared
## **TOTAL CARBON EMISSIONS 2020 TO 2021**
**118.6 TOTAL EMISSIONS EQUIVALENT TO 0.9** tCO2e total emissions 105 flights from London to New York tCO2e per employee
**BUILDINGS TRAVEL WASTE WATER PROCUREMENT HOMEWORKING** 117.5 tCO2e 0.0 tCO2e 0.2 tCO2e 0.7 tCO2e 90.2 tCO2e Used enough Travelled **0** Produced waste **22** litres per **226** sheets of Used enough electricity to times around that weighs employee per paper used per energy to power power **67** UK the world the same as **1** day day **27** UK homes for homes for one London bus one year year **tCO2e – metric tonnes of carbon dioxide equivalent**
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**PEOPLE AND OPERATIONS**
**PEOPLE AND OPERATIONS**
## **NEW DIGITAL PRESENCE**
In summer 2022, we launched our new website, fulfilling an objective in our 2020–25 strategy to better engage with our identified audiences. The new site continues to be developed to provide an improved digital experience for Fellows, applicants, awardees, policymakers and other audiences, by making information easier to find, and by better showcasing the impact of our activities and highlighting upcoming events and opportunities. This includes pages loading much faster, better functionality and a more modern design, aligned to the Academy’s brand.
**----- Start of picture text -----**
AGE
8% 8%
23%
30.5%
30.5%
50 – 54
55 – 59
60 – 64
65 – 69
70 – 74
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GENDER
38%
62%
Man
Woman
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## **A FELLOWSHIP FIT FOR THE FUTURE**
Our Fellowship represents an unrivalled community of leading businesspeople, entrepreneurs, innovators and academics from every part of engineering and technology. Over the past year, Fellows have volunteered an estimated 22,500 hours to support the next generation of engineers and address societal challenges.
Our Fellows elected in 2022 reflect the Academy’s ongoing Fellowship Fit for the Future initiative, with 57% of those elected from underrepresented groups. The initiative is driving more nominations of outstanding engineers from underrepresented groups ahead of our 50[th] anniversary in 2026. It sees the Academy striving for increased representation from women, disabled and LGBTQ+ engineers, those from minority ethnic backgrounds, non-traditional education pathways and emerging industries, and those who have achieved excellence at an earlier career stage than normal.
The Academy’s Trustee Board is also committed to forming a Board that is fit for the future, defined as a body that represents the full breadth and diversity of engineering excellence, as well as the skills and experiences needed to provide effective leadership for the Academy. To help achieve this, one of the main responsibilities of the Academy’s Nominations
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ETHNICITY RELIGION
Committee is to actively seek and encourage people
from different groups to stand for election. The Board is 11% 11%
guided by the values of the Academy to create a culture
in which everyone can thrive and diverse perspectives
11% 11%
enrich its collective performance.
In support of this commitment, the Trustee Board has
agreed to publish its own diversity data.
78% 78%
Any other ethnic group – Arab Christian
Mixed/Multiple ethnic groups – Muslim
Asian and white No religion
White – English/Welsh/Scottish/
Northern Irish/British
The figures for age and gender represent all members of the Trustee Board. The figures for ethnicity and religion
only represent Trustee Board members who submitted their diversity data. Of those who submitted data,
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The figures for age and gender represent all members of the Trustee Board. The figures for ethnicity and religion only represent Trustee Board members who submitted their diversity data. Of those who submitted data, all respondents declared that they had no disability when asked and all respondents stated that they were heterosexual when asked.
**Academy Fellows at the 2022 New Fellows briefing at Prince Philip House on 11 November**
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**FUTURE PLANS**
## Future plans
As set out in our five-year strategy, the Academy’s overarching goal is to **harness the power of engineering to build a sustainable society and an inclusive economy that works for everyone** .
In keeping with our values, many of these goals will be delivered through collaboration with key partners around the world and will deliver against our four impacts:
- Faster progress towards net zero and a sustainable world.
- Engineering and technology better harnessed to address global and societal challenges.
- More balanced and inclusive economic opportunity across the UK.
- UK more competitive and productive.
We have made progress in implementing the strategy over the last three years but there is still much to do.
## **TALENT AND DIVERSITY**
In 2023–25, we will support talented researchers, innovators and entrepreneurs by:
- enhancing the connections of all our talented awardees and building their links to the whole Academy through our Awardee Excellence Community
- helping highly talented engineering and technology researchers through our research programmes to pursue their vision, build their capabilities and produce research outputs with high potential for commercialisation and societal benefit
- continuing to support the progression of highly talented engineers through our higher education programmes
- offering support for enhancing the skills and connections of engineering and technology
entrepreneurs through our Enterprise Hub, Leaders in Innovation Fellowships (LIF) programme and Africa Prize for Engineering Innovation
- building the capacity of organisations in emerging economies to support talented engineers, primarily through facilitating global partnerships, including through our Higher Education Partnerships in Sub-Saharan Africa (HEP SSA) and Engineering X programmes
· reviewing applications while meeting all quality and timeliness standards through our Global Talent Visa endorsement programme.
In 2023–25, we will deliver more diverse skills and inclusive cultures in engineering research and business by:
• supporting internal diversity and inclusion activity across all Academy teams with a single coherent action plan
- supporting development of progressive leadership across the engineering community, including through our new EDI toolkit platform for startups, scaleups and SMEs
- promoting engineering to all individuals and supporting their progression into engineering, particularly through our bursary programmes supporting those from underrepresented backgrounds and our regional education programmes
- increasing transition rates of engineering students from Black, Asian and minority ethnic backgrounds and low socio-economic backgrounds through our Graduate Engineering Engagement Programme
· ending the Connecting STEM Teachers programme, and subject to funding, developing the _This is Engineering_ : School Engagement Programme, which will be smaller in scale, operate within the Regional Talent Engine areas, and specifically target schools and colleges in areas of low social mobility. Our education policy activity will increase through the NEPC.
All these activities will help us make progress towards our outcome of a world-leading, truly inclusive and influential engineering workforce.
## **INNOVATION**
In 2023–25, we will deliver engineering and technology research outputs with high potential for commercialisation and social benefit by:
· continuing to deliver high-quality, long-term partnerships between industry and academia through our industrial partnership research programmes
- supporting 10-year programmes to advance novel technologies of high societal and economic benefit to the UK through our Chairs in Emerging Technologies
· holding Frontiers symposia to bring together researchers and innovators from around the world to build their networks and supporting seed grants for new collaborations as well as continuing projects
· exploring further partnerships with government national security and resilience organisations to support applied research programmes focusing on the UK population’s safety and prosperity.
In 2023–25, we will deliver more innovative, resilient and investment-ready engineering businesses by:
- celebrating the Enterprise Hub’s 10[th] anniversary in 2023, building on successes to date in helping engineering entrepreneurs build their capabilities to make their businesses more innovative and investment ready
- building our position as leading experts in the UK and internationally for engineering and tech entrepreneurs, innovators and policymakers looking to support innovative businesses encouraging a sustainable society and an inclusive economy, through partnership between the Hub and our innovation policy work
- continuing to promote engineering enterprise in emerging economies as a critical means of addressing Sustainable Development Goals through the Africa Prize for Engineering Innovation in its 10[th] anniversary year and the LIF programme.
All these activities will help us support more innovative engineering solutions for a more sustainable and resilient future, engineering jobs that make the UK more productive, secure, healthier, safer and more competitive, and greater investment into UK innovation.
## **POLICY AND ENGAGEMENT**
In 2023–25, we will harness the insights of engineers across the Fellowship and broader engineering community to deliver engagement, capacity building and policy advice with real-world impact by:
- ensuring that policymakers are equipped to make more effective policies, including on net zero, health and resilience, and digital infrastructures
- positioning the Academy and profession as a thought leader and convener at the centre of delivering a more competitive, productive and inclusive UK economy, and an influential voice in the debate about securing UK Strategic Advantage through science and technology
- supporting engineers’ engagement with the public on how innovation can contribute to their lives, through our Technology Pathways and Meaningful Innovation programme
- providing necessary engineering leadership around complex systemic global challenges through Engineering X, to improve health, quality of life and sustainability, particularly in low-income countries
- bringing ideas, expertise, data, and challenge from relationships built through our international programme partnerships together with the work of the NEPC, to address the need for a global presence able to bring engineering expertise to bear on shared international challenges.
In 2023–25, we will ensure engineers engage with the public on how innovation can contribute to and enhance their lives by:
- broadening public perceptions of engineering through _This is Engineering_ , and the development of a new champions community and redeveloped website
- upweighting our innovation communications to celebrate both the Enterprise Hub and the Africa Prize’s 10[th] anniversaries
- amplifying engineering’s contribution to sustainability through a revived Engineering Zero campaign.
All these activities will help us make progress towards our outcomes of policymakers equipped to make more effective policies, including on net zero, and greater recognition of the value of engineering.
## **ENABLERS**
In 2023–25 the Academy will achieve its goals by:
- delivering a programme of awardee engagement
- strengthening Fellowship engagement, including technical briefings, regional engagement opportunities and ongoing development of the Fellows area of the website
- developing an impact framework that provides evidence of impact and underpins decision-making and prioritisation
- developing our culture, systems and processes to attract, retain and enable our people to contribute and thrive in meeting the Academy’s objectives
- implementing the Digital Strategy, ensuring that critical digital platforms and central organisational processes are fit for purpose, widely adopted and supported by digital solutions
- developing culture, systems and processes to assure compliance, manage risk and continuously improve, including through the new internal audit programme
- developing new unrestricted revenue sources and increasing revenue from existing trading activities
- securing significant support for the Prince Philip Fund
- increasing long-term sustainable funding streams by growing the number of funders and the number of multi-year gifts as part of the development campaign.
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**REPORT OF TRUSTEE BOARD**
## Report of Trustee Board
## **Financial Review**
## **Group results for the year**
The Academy has produced group accounts for the year, having consolidated its accounts with those of its two subsidiaries: the Queen Elizabeth Prize for Engineering Foundation and RAE Trading Limited. The annual report, incorporating the financial statements for the year ended 31 March 2023, has been prepared in accordance with the Academy’s Royal Charter, and in compliance with Accounting and Reporting by Charities: Statement of Recommended Practice 2019, applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). The Academy meets the definition of public benefit entity under FRS102. These financial statements are prepared under FRS102.
Group income for the year was £57.1 million (2021/22 £48.3 million). During the year, income from grants and other contracts totalled £52.9 million (2021/22 £45.6 million). Donations totalled £2.0 million (2021/22 £0.7 million), of which £0.2 million was to the Queen Elizabeth Prize for Engineering Foundation. Other major sources of income during the year were: investments, subscriptions, events, and facilities hire income at a total of £2.2 million compared to £2.0 million in the previous year.
Group expenditure on charitable activities was £55.9 million (2021/22 £47.5 million): 97% of total resources expended. Of this total, £49.9 million represented charitable activities and grants paid under various programmes and £6.1 million represented the costs of operating those programmes.
The cost of generating funds across the group was £1.6 million: 3% of total resources expended. The cost of generating funds consists of fees paid to investment managers, facilities hire and catering, and the staff costs and expenses associated with fundraising. The Academy is continuing with major fundraising activity aimed at obtaining funds for the enhancement and expansion of the Academy’s programmes to support talent and diversity, innovation, and policy and engagement, as well as central infrastructure.
## **Group asset value**
The carrying value of the group’s net assets was £66.8 million (2021/22 £70.7 million). Investments were valued at £50.1 million, with the Academy holding £25.5 million and the Queen Elizabeth Prize for Engineering Foundation holding £24.6 million.
Tangible fixed assets valued at £25.5 million included the £10.9 million value of the Carlton House Terrace lease and the £12.5 million of leasehold improvements to Prince Philip House. The main liability was a bank loan of £11.5 million, which funded the extension of the Academy’s property lease secured in 2017. The loan also funded part of the lower ground floor extension and settled the previous loan with NatWest.
## **Group fixed assets**
Capital expenditure during the year amounted to £1.5 million, which was on computer systems and equipment, office fixtures and fittings, and leasehold improvement.
## **Reserves policy**
The Academy’s intention is to maintain sufficient reserves to ensure financial resilience and sustainability, including protection against risks identified in the risk register. The reserves policy sets out the target reserves level and the key principles by which the Academy will manage any excesses or deficits compared to the target. The aim is to strike the appropriate balance between ensuring a sustainable financial position and using funds to fulfil the charitable objectives of the Academy and deliver public benefit. The reserves policy is reviewed regularly.
||**Year ended 31 March**|**2023**|**2022**|
|---|---|---|---|
|||**£000**|**£000**|
||Total funds as per group balance sheet|66,819|70,664|
||Exclude:
Restricted funds
Unrestricted funds tied up in
tangible fixed assets
Designated and special funds|35,008
25,487
3,880|38,168
24,628
3,724|
||**Free Reserves**|**2,444**|**4,144**|
## **Free Reserves**
Free Reserves are available to be spent for any purpose that meets the Academy’s charitable objectives. Free Reserves would cover a short-term emergency or longerterm structural change. The reserves policy states that the recommended range for Free Reserves is £3.0 million to £4.5 million. Whenever the Academy’s Free Reserves fall below the recommended range, the intention is to build the level of Free Reserves to be within the recommended range within five years. The decrease in Free Reserves is driven by the decrease in investment value and is not reflective of underlying operational performance. The strategy to bring Free Reserves in line with the recommended range is to grow the value of investments, increase fundraising and ensure the continued improvement in trading subsidiary performance.
## **Royal Academy of Engineering (parent charity of group)**
## **Results for the year**
Total income for the year was £55.6 million (2021/22 £47.2 million). The Academy is grateful to the Department for Business, Energy and Industrial Strategy (BEIS)* for providing the government core grant to support activities aimed primarily at promoting engineering research in the UK. The core grant at £38.4 million (2021/22 £19.7 million) represented 67% of total group incoming resources.
Income from other grants and contracts decreased by 44% to £14.5 million. Included in this amount were grants received from BEIS of £5.2 million from the Global Challenges Research Fund and £1.9 million from the Newton Fund programme.
Expenditure on charitable activities was £54.1 million compared to £46.2 million in the previous year. An analysis based upon the principal objective of each activity shows that, of the total charitable expenditure: 75% was on innovation; 12% on policy and engagement; and 13% on talent and diversity. Employment costs increased from the previous year by 23% to £10.1 million due to additional resources required to deliver the increased scale of programmes.
## **Investments**
The value of the Academy’s investment portfolio decreased over the year by £2.0 million to £25.5 million. Realised and unrealised investment losses during the year were £2.0 million. 70% of the Academy’s investment portfolio is held in global equities and 30% is held in fixed interest bonds and asset backed and alternative investments. Income to the Academy from dividends decreased by 23% during the year to £378,000.
The Academy’s investments are held in a managed investment fund and index funds. The Academy’s investments underperformed versus the composite benchmark by 7%. The composite benchmark for the portfolio was set as 70% FTSE All World and 30% cash plus 2%.
## **Investment policy**
The Academy has adopted the following sustainable principles within its investment policy:
1. The Academy’s assets should be invested in line with its aims.
2. The Academy aims for the best possible financial return from its investments. However, the Academy understands the importance of sustainable investing practices that are compliant with the United Nations Principles of Responsible Investments (UN PRI). The
Trustees believe that the two considerations are not contradictory and that sustainable investing principles should not lead to lower return expectations over the long term.
3. The Academy’s charitable object is the pursuit, encouragement and maintenance of excellence in the whole field of engineering to useful purpose. The Trustees conclude that a blanket exclusionary policy on certain sectors, as followed by many institutional investors, is not appropriate for the Academy.
4. The Academy requires its fund managers to pay appropriate regard to relevant corporate governance, social, ethical, and environmental considerations in the selection, retention and realisation of all fund investments. The Academy requires all investment managers to be signatories to UN PRI.
5. These principles will be reviewed on a regular basis to ensure that they are in-sync with the broader ethical and sustainability policies of the Academy.
The Trustees’ general powers of investment derive from and are restricted by the Trustee Act 2000. These powers are not restricted by the Academy’s Royal Charter, which states that “the Board may invest any monies of the Academy not immediately required for the purposes of the Academy”. The investment objective is to generate a total return of inflation (Consumer Price Index) plus 4% per annum over the long term, after expenses. This will allow the Academy to maintain the real value of the assets, while funding annual expenditure at the level generally not exceeding 4% per annum.
The funds have been invested in a diversified portfolio of assets. The core of the portfolio has been invested in the income and return generating assets. Asset classes include domestic and international equities, fixed income instruments, property, commodities, cash, and any other assets deemed suitable for the Academy.
## **Designated fund**
A strategic development fund of £1.8 million is available to deliver impactful charitable activities over the next five years and/or strengthen the Academy for the longer term and fund non-recurring costs of major projects without impacting annual operating budgets.
## **Capital building fund**
Within restricted and designated funds there is a fund of £2.2 million to cover major capital improvements to Prince Philip House.
The specific uses and needs of the restricted and designated funds held by the Academy are detailed separately in the notes to the accounts referred to above. The Academy’s reserves are available and adequate to fulfil the current obligations of the Academy.
*BEIS was restructured in February 2023 and the Department for Science, Innovation and Technology was created. All funding agreements in place are with BEIS.
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Royal Academy of Engineering
**REPORT OF TRUSTEE BOARD**
**REPORT OF TRUSTEE BOARD**
## **Risk management and appetite**
updates to the Trustee Board. Risk management is supported by the work of the Audit and Risk Committee as well as various operating committees. The Academy’s overall approach to risk is illustrated by the following table:
The Trustees have agreed a risk appetite statement and associated risk management policy. The Audit and Risk Committee reviews the risk register four times a year. The Chair of the Audit and Risk Committee provides
## **Risk appetite table**
|**Risk appetite table**|||||
|---|---|---|---|---|
||Very low|Low|Some|Acceptance|
|Health, safetyand security|3||||
|Safeguarding|3||||
|Compliance andgovernance|3||||
|Dataprotection and cybersecurity|3||||
|Reputation for credibility, integrity,|||||
|andquality|3||||
|Reputation for thought leadership,|||||
|progressive thinking, and campaigning|||3||
|IT infrastructure and development||3|||
|People and culture|||3||
|Environment and sustainability||3|||
|Financial||3|||
|Programme delivery||3|||
|Impact|||3||
|Programme innovation||||3|
_See table below for description of risk appetite classification_
## **Risk appetite classification**
|Verylow|As low as reasonably possible.|
|---|---|
|Low|Preference for safe options that have a low degree of residual risk.|
|Some|Willing to consider all potential options and choose one that is most likely to result|
||in successful delivery, despite thepotential for some degree of risk.|
|Acceptance|Eager to innovate and to choose options offering potentially higher reward, despite|
||greater inherent risk.|
The most significant risks currently faced by the Academy and managing actions are shown in the table below.
|**Academy funding: non-government**
Risk of insufficient funding raised from non-
government sources caused by insufficient or
unsuccessful fundraising attempts leading to threat
to financial sustainability and/or inability to deliver
programmes and activities required for successful
implementation of the strategy.|•
A fundraising cultivation and stewardship programme is in
place.
•
Financial strategy in place that sets out purpose of and
appropriate levels of reserves.
•
Development Advisory Board has been re-established.
•
RAE Trading with AV upgrade.
•
Business Development Group meeting regularly to discuss
commercial opportunities.|
|---|---|
|**Staff resources and capability**
Risk of poor staff retention and inability to hire
high-quality staff caused by competitive market
conditions and/or lack of support, development
opportunities or value proposition leading to the
Academy being unable to deliver its programme of
work at the quality required.|•
External salary benchmarking was carried out for RemCo in
November 2022.
•
Utilising different resourcing models such as freelancers,
inbound and outbound secondments, and contractors.
•
Regular staff surveys to track engagement and highlight
issues.
•
New People Strategy being implemented.
•
Talent management review underway.|
## **Cyber attack**
**Cyber attack** • Up-to-date technology and methodologies including thirdRisk of cyber attacks caused by poor system security party daily monitoring, malware protection, regular patching leading to compromised IT systems and diminished on laptops and servers, and email and web filtering. service delivery. • Encryption on laptops and VPN, and two-factor authentication is required when using Academy laptops and/or other services remotely. • Risks addressed following annual penetration testing. • Specific mitigation solution in place against distributed denial of service attacks. • Business continuity exercise complete. exercise complete. lete.
- Business continuity exercise complete.
## **Investment policy**
## **Queen Elizabeth Prize for Engineering Foundation**
The overall investment objectives are to create both income and capital growth such that the real capital value of the portfolio is maintained over the long term, thus allowing the prize to be awarded in perpetuity. The portfolio is managed on a total return basis with a medium risk profile. The Queen Elizabeth Prize for Engineering Foundation ensures that portfolio performance is measured against a customised benchmark. The investments are maintained with a long-term investment time horizon of over 10 years.
The Queen Elizabeth Prize for Engineering Foundation is governed by the Articles of Association for a private company limited by guarantee. These were agreed by Queen Elizabeth Prize for Engineering Foundation Trustees on 21 May 2012 and amended on 4 March 2013. The sole member of the charitable company is the Royal Academy of Engineering.
The Queen Elizabeth Prize for Engineering Foundation Trustee Board consists of at least two (and no more than six) nominated trustees, who are appointed by ordinary resolution or by a decision of the Queen Elizabeth Prize for Engineering Foundation Trustees and one Ex-Officio Trustee who is holder of the office of the President of the Royal Academy of Engineering. All material decisions in relation to the Foundation are taken by Queen Elizabeth Prize for Engineering Foundation Trustees.
The Queen Elizabeth Prize for Engineering Foundation does not invest in organisations that conflict with the charity’s purpose. The Trustees do not wish to invest in companies or funds that derive their income from the sale or manufacture of tobacco products. No initial investment to exceed 10% of the value of the fund. Bonds held will “BBB” or better classification.
## **Reserves policy**
Queen Elizabeth Prize for Engineering Foundation Trustees consider the level of the Foundation’s reserves as part of their risk assessment review process. These reserves are restricted within the group balance sheet.
Royal Academy of Engineering Trustees meet periodically with Queen Elizabeth Prize for Engineering Foundation Trustees. The Queen Elizabeth Prize for Engineering Foundation Trustees formally report to the Royal Academy of Engineering Trustee Board once per annum.
## **Results for the year**
## **RAE Trading Limited**
Total income for the year was £0.8 million (2021/22 £0.8 million). Expenditure on charitable activities was £2.1 million compared to £0.8 million the previous year. The Queen Elizabeth Prize for Engineering has moved from a biennial to an annual cycle. The Foundation pays a management fee to the Academy for services, which includes staff employed and office space. A CEO is shared across the Royal Academy of Engineering and Queen Elizabeth Prize for Engineering Foundation group entities.
## **Results for the year**
The commercial activity undertaken by the company during the year was the provision of rooms and catering services within Prince Philip House, primarily to corporate customers. Catering services are also provided to the Academy at cost. Revenue for the year was £1.0 million (2021/22 £0.5 million). Operating expenditure, including the cost of providing a service to the Academy, was £0.7 million (2021/22 £0.4 million). The net profit for the year was £136,000 compared to £92,000 in the previous year.
## **Investments**
The value of the Queen Elizabeth Prize for Engineering Foundation investment portfolio decreased by £1.6 million (2022: £0.2 million decrease). Investments were valued at £24.6 million (2021: £26.1 million).
There are no reserves held by RAE Trading Limited as all profit arising is gift aided to the Academy.
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Royal Academy of Engineering
**REPORT OF TRUSTEE BOARD**
**REPORT OF TRUSTEE BOARD**
## **Recipients of Academy grants**
The Academy made over 1,000 grants and awards to organisations and individuals in 2022/23 totalling £31.5 million. The first 25 organisations, in order of total amount of funds paid to recipients, are listed below.
||||**Policy and**|**Talent and**|**Total**|
|---|---|---|---|---|---|
|||**Innovation**|**engagement**|**diversity**|**amount in £**|
|1|Imperial College London|2,757,856|–|15,642|2,773,498|
|2|University College London|2,436,319|11,778|45,600|2,493,697|
|3|University of Glasgow|1,882,981|–|10,037|1,893,018|
|4|University of Oxford|1,555,336|–|10,000|1,565,336|
|5|University of Edinburgh|1,426,804|–|9,750|1,436,554|
|6|University of Bristol|1,177,778|8,127|44,300|1,230,205|
|7|University of Manchester|1,089,375|38,362|6,000|1,133,737|
|8|University of Strathclyde|995,829|–|16,300|1,012,129|
|9|University of Southampton|945,636|–|18,550|964,186|
|10|Heriot-Watt University|910,165|7,061|10,989|928,215|
|11|Newcastle University|842,948|3,800|12,981|859,729|
|12|University of Cambridge|792,433|–|32,000|824,433|
|13|University of Nottingham|623,003|–|425|623,428|
|14|University of Leeds|599,164|–|498|599,662|
|15|King's College London|540,921|–|9,993|550,914|
|16|Queen’s University Belfast|440,465|–|9,520|449,985|
|17|University of Sheffeld|390,137|1,384|11,321|402,842|
|18|University of Warwick|360,556|–|–|360,556|
|19|Loughborough University|340,430|–|13,995|354,425|
|20|University of Liverpool|346,028|5,483|2,000|353,511|
|21|University of Birmingham|304,224|1,679|27,940|333,843|
|22|Aston University|283,911|4,935|40,510|329,356|
|23|University of Exeter|326,532|–|–|326,532|
|24|University of York|314,278|–|2,000|316,278|
|25|University of Bath|210,930|15,000|49,960|275,890|
|**Total**||**21,894,039**|**97,609**|**400,311**|**22,391,959**|
The Academy awarded grants across the UK and internationally. A heatmap of awards made across the UK is shown below by ITL2* region. The map shows only grant funding and does not include other regionally based Academy activities.
* International Territorial Level or ITL is a geocode standard for referencing the subdivisions of countries for statistical purposes
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Royal Academy of Engineering
**REPORT OF TRUSTEE BOARD**
A heatmap of directly related expenditure made across Official Development Assistance (ODA) programmes by country is shown below.
## Royal Academy of Engineering (parent charity of group) structure, governance and management
## **Election to the Trustee Board**
## **Internal control**
Trustee Board members are elected for a term of three years with the exception of the President who is elected for a term of up to five years. With the exception of the President, Trustees are eligible for re-election for a further three-year term. The Trustee election is by a ballot of Fellows each year. The Nominations Committee helps to ensure that there is an appropriate candidate slate for election to the Trustee Board and the associated governance roles.
## **Finance Committee**
The Finance Committee is mandated by and reports to the Trustee Board on the following issues:
- Setting a budget prior to each financial year for approval by the Trustee Board.
- Appointing and monitoring the performance of independent investment advisers.
-
- Approving authorised signatories and setting limits on delegated financial authorities.
-
## **Induction and training of Trustee Board members**
- Monitoring financial performance against budget. Reviewing the reserves policy annually. Ensuring that accounting rules are followed.
-
-
Following election, Trustees are provided with an information pack comprising the Academy’s Charter, Statutes and Regulations, a Charity Commission publication on the responsibilities of charity trustees and the Academy strategy. Trustee Board members receive a full induction briefing from senior staff and the Academy’s legal advisor and are encouraged to attend recommended external training courses for charity trustees.
-
Detailed management accounts are prepared monthly within 10 working days of the month end and submitted six times a year to the Finance Committee. Summarised accounts are submitted at each Trustee Board meeting.
The Finance Committee meets at least six times during each financial year. Included in the items considered by the Committee during the year were the Academy’s investment strategy and the performance of RAE Trading Limited.
## **Charity Governance Code**
The Trustees have undertaken a review of current Academy practice mapped against the recommended practice of the Charity Governance Code. The vast majority of Academy practices correspond with the recommended practices set out in the Code. A governance review was conducted beginning in 2020/21 and adopted in 2021/22 following an Extraordinary General Meeting.
## **Audit and Risk Committee**
The Audit and Risk Committee is mandated by and reports to the Trustee Board on the following issues:
- The effectiveness and development of the Academy’s risk management policy and processes and compliance with these.
## **Code of Conduct**
A Code of Conduct is in place to cover the conduct • and ethical behaviour expected of Fellows of the Royal Academy of Engineering. Fellows are ambassadors for the Academy and should therefore conduct themselves in a manner that supports the Academy’s aims and that • upholds and enhances the reputation of the Academy and its Fellows. Fellows are expected to follow the Nolan principles of selflessness, integrity, objectivity, • accountability, openness, honesty, and leadership. Fellows who are working for or on behalf of the Academy must act in accordance with Academy policies on conduct and behaviour covering items such as conflicts of interest, • equality, diversity and inclusion, anti-bullying and harassment, and anti-bribery. The Conduct Committee, • chaired by the Vice-President for Committee Coordination, oversees the Code and its implementation.
- The review of the Academy’s main risks and their management, particularly strategic risks and control processes concerns, and assessment of the level of assurance on the controls in place.
- The audit and review of the Academy’s activities, assessing compliance with and effectiveness of controls, policies and processes.
The review of significant projects, programmes and other activities to ensure that suitable contracts are in place and that the financial, operational and risk management is appropriate.
Recommendations on the appointment, reappointment and removal of the external auditors.
The review of the external auditor’s findings and in particular any problems, reservations and observations arising during the audit.
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Royal Academy of Engineering
**STRUCTURE, GOVERNANCE AND MANAGEMENT**
**STRUCTURE, GOVERNANCE AND MANAGEMENT**
The Audit and Risk Committee meets at least four times during each financial year. Included in the items considered by the Committee during the year were the review of the external audit findings, a review of the risk appetite statement, a review of the development programme, and a cybersecurity review.
## **Fundraising statement**
Section 162a of the Charities Act 2011 requires charities to make a statement regarding fundraising activities. Although the Academy does not undertake widespread fundraising from the general public, the legislation defines fundraising as “soliciting or otherwise procuring money or other property for charitable purposes”. Such amounts receivable are presented in the Academy’s accounts as ‘voluntary income’ and include legacies and grants. The day-to-day management of all income generation is delegated to the executive leadership team, who are accountable to the Trustees.
The charity adheres to the Chartered Institute of Fundraising Code of Fundraising Practice, which outlines standards expected of all charitable fundraising organisations in the UK. The Academy has received no complaints in relation to fundraising activities. Its terms of employment require staff to behave reasonably at all times.
## **Grant-making policy**
The grant and award programmes are run by committees or steering groups of Fellows of the Academy, and where appropriate other experts, chosen based on their experience and expertise. Fellows of the Academy offer their time freely; no remuneration was paid in the year beyond the reimbursement of reasonable expenses. There is a policy of strict impartiality and no Fellow may participate in a group/award decision if there is a conflict of interest.
Grant awardees are issued with agreements and progress is monitored and recorded utilising a grant management system.
## **Remuneration policy**
The Academy’s policy is to pay staff salaries at the market mid-point. Salaries are reviewed in alternate years following a market benchmarking exercise conducted by an independent consultancy. The last independent review was undertaken during 2022 to inform the salary review implemented with effect from 1 April 2023.
The remuneration of the Chief Executive and directors is set annually by the Remuneration Committee. In setting appropriate levels of senior management pay, the Remuneration Committee considered the skills, experience and competencies required for each role, and
the remuneration level for those roles in sectors where suitable candidates would be found.
## **Executive leadership team**
Day-to-day management of the Academy is the responsibility of the Chief Executive who, with the directors listed below comprise the executive leadership team, which meets regularly. Strategy is set by the Trustee Board, and implemented by the executive leadership team, with oversight provided by Academy committees.
The executive leadership team who served during the period of the report are as follows:
## Chief Executive | Dr Hayaatun Sillem CBE
Chief Operating Officer | Chris Boyle Executive Director, Programmes | Dr Andrew Clark Director, Policy and International | Dr Nick Starkey Director, Communications and Engagement | Joanna Trigg
## **Trustees’ responsibilities**
The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Charity law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group for that period.
In preparing these financial statements, the Trustees are required to:
• select suitable accounting policies and then apply them consistently
- make judgements and accounting estimates that are reasonable and prudent
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
- • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also
responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Financial statements are published on the charity’s website in accordance with legislation in the UK governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the Trustees. The Trustees’ responsibility also extends to the ongoing integrity of the financial statements contained therein.
Signed on behalf of the Trustee Board on 15 August 2023
**Professor Sir Jim McDonald FREng FRSE** President
**David Eyton CBE FREng** Chair of the Finance Committee
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Royal Academy of Engineering
**AUDITOR’S REPORT**
## Auditor’s report
## **Independent auditor’s report to Trustees of the Royal Academy of Engineering**
## **Opinion on the financial statements**
In our opinion, the financial statements:
- give a true and fair view of the state of the Group’s and of the Parent Charity’s affairs as at 31 March 2023 and of the Group’s incoming resources and application of resources for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
We have audited the financial statements of Royal Academy of Engineering (“the Parent Charity”) and its subsidiaries (“the Group”) for the year ended 31 March 2023 which comprise the consolidated statement of financial activities, the group and charity balance sheets, the consolidated statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
## **Opinion on other matter as required by BEIS grant letters**
In our opinion, in all material respects, the grant payments received from the Department for Business, Energy, and Industrial Strategy (BEIS) have been applied for the purposes set out in the Grant Letters and in accordance with the terms and conditions of the agreements.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## **Independence**
We remain independent of the Group and the Parent Charity in accordance with the ethical requirements relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
## **Conclusions related to going concern**
In auditing the financial statements, we have concluded that the Trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
## We have nothing to report in this regard.
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion;
• the information given in the Trustees’ Report for the financial year for which the financial statements are prepared is inconsistent in any material respect with the financial statements; or
- adequate accounting records have not been kept by the Parent Charity; or
- the Parent Charity financial statements are not in agreement with the accounting records and returns; or
- we have not received all the information and explanations we require for our audit.
statements to be relevant charities acts in the UK and Ireland. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
## **Responsibilities of Trustees**
As explained more fully in the Trustees’ responsibilities • statement, the Trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from • material misstatement, whether due to fraud or error.
In addition, the group and charity are subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. In order to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, we made enquiries of management and those charged with Governance about whether the audited entity is in compliance with such laws and regulations, and we inspected any relevant regulatory and legal correspondence.
In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent Charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent Charity or to cease operations, or have no realistic alternative but to do so.
Our procedures in respect of the above included:
Review of minutes of meeting of those charged with governance for any instances of non-compliance with laws and regulations;
-
## **Auditor’s responsibilities for the audit of the financial statements**
We agreed the financial statement disclosures to applicable legislation;
-
We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.
We determined that the most significant laws and regulations which are directly relevant to specific assertions in the financial statements are those related to the financial reporting framework including but not limited to United Kingdom Generally Accepted Accounting Practice and the Charities Act 2011, Statement of Recommended Practice for Accounting Reporting by Charities (SORP FRS 102);
-
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the • aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
We confirmed from management that there were no serious incidents reported to the Charity Commission in the year under review. We also confirmed that there was no ongoing litigation or claims;
We understood how the charity is complying with those legal and regulatory frameworks that are significant to their activities by making enquiries to management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of minutes.
**Extent to which the audit was capable of detecting irregularities, including fraud** Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
## _Fraud_
We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:
- Enquiry with management and those charged with governance and also considered Audit Committee, regarding any known or suspected instances of fraud; Obtaining an understanding of the Group’s/Charity’s policies and procedures relating to:
-
## _Non-compliance with laws and regulations_
-
- Based on our understanding of the Group and the sector in which it operates; we identified that the principal laws and regulations that directly affect the financial
- Detecting and responding to the risks of fraud; and
- Internal controls established to mitigate risks related to fraud.
Annual Report and Accounts 2022|2023
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Royal Academy of Engineering
**AUDITOR’S REPORT**
## Consolidated statement of financial activities
- Review of minutes of meeting of those charged with governance for any known or suspected instances of fraud;
- Discussion amongst the engagement team as to how and where fraud might occur in the financial statements;
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
Based on our risk assessment, we evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of management override of controls) and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates.
Our procedures in respect of the above included:
- In addressing the risk of fraud through management override of controls; testing the appropriateness of journal entries and other adjustments; testing the application of cut off and revenue recognition, particularly around all revenue streams, and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business;
- Testing a sample of journal entries throughout the year, which met a defined risk criterion, by agreeing to supporting documentation;
- Challenging the assumptions made by management in their significant accounting estimates in particular investment valuation and cash flow forecasts used in going concern assessments; and
A further description of our responsibilities for the audit of the financial statements is located at the Financial Reporting Council’s (“FRC’s”) website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the Charity’s trustees, as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the Charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Charity and the Charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.
BDO LLP, Statutory auditor London, UK
Date: 25 August 2023
BDO LLP is eligible for appointment as auditor of the charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
|**Year ended 31 March 2023**||**Unrestricted**|**Restricted**|**Total**|**Unrestricted**|**Restricted**|**Total**|
|---|---|---|---|---|---|---|---|
||**Notes**|**funds 2023**|**funds 2023**|**31 March**|**funds 2022**|**funds 2022**|**31 March**|
|||||**2023**|||**2022**|
|||**£**|**£**|**£**|**£**|**£**|**£**|
|**Income from:**||||||||
|Charitable activities|2,3,4|–|52,933,947|52,933,947|–|45,639,341|45,639,341|
|Donations and legacies|5|680,187|1,343,167|2,023,354|99,813|559,955|659,768|
|Other tradingactivities|6a|1,146,958|–|1,146,958|924,392|–|924,392|
|Investments|6|352,041|667,935|1,019,976|457,015|593,587|1,050,602|
|**Total income**||**2,179,186**|**54,945,049**|**57,124,235**|**1,481,220**|**46,792,883**|**48,274,103**|
|||||||||
|**Expenditure on:**||||||||
|Raisingfunds||1,424,255|164,962|1,589,217|1,099,835|189,311|1,289,146|
|Charitable activities|7|1,271,231|54,652,816|55,924,047|1,423,251|46,100,598|47,523,849|
|Other|8|100,112|8,763|108,875|29,517|3,675|33,192|
|**Total expenditure**||**2,795,598**|**54,826,541**|**57,622,139**|**2,552,603**|**46,293,584**|**48,846,187**|
|Net (losses)/gains on||||||||
|investment|11|(1,898,624)|(1,448,090)|(3,346,714)|804,854|2,019,879|2,824,733|
|||||||||
|**Net (expenditure) / income**||**(2,515,036)**|**(1,329,582)**|**(3,844,618)**|**(266,529)**|**2,519,178**|**2,252,649**|
|**Transfer between funds**|16|**1,830,301**|**(1,830,301)**|**–**|**677,084**|**(677,084)**|**–**|
|||||||||
|**Net movement in funds**||(684,735)|(3,159,883)|(3,844,618)|410,555|1,842,094|2,252,649|
|**Fund balances brought**||||||||
|**forward 1 April**||32,495,907|38,167,859|70,663,766|32,085,352|36,325,765|68,411,117|
|**Fund balances carried**|16, 17|||||||
|**forward 31 March**||31,811,172|35,007,976|66,819,148|32,495,907|38,167,859|70,663,766|
_All the above results are derived from continuing activities. There are no gains and losses other than those stated above. The notes on pages 44 to 59 form part of these financial statements._
- Performed audit procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
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Royal Academy of Engineering
## Balance sheets
|**At 31 March 2023**
**Notes**|**Group**
**2023**
**2022**
**£**
**£**|**Charity**
**2023**
**2022**
**£**
**£**|
|---|---|---|
|**Tangible fxed assets**
10
**Investments**
11|25,486,605
24,628,325
50,104,356
53,651,386|25,486,605
24,628,325
25,505,010
27,503,846|
|**Total fxed assets**|**75,590,961**
**78,279,711**|**50,991,615**
**52,132,171**|
||||
|**Current assets:**|||
|Debtors
12|9,130,743
8,150,622|9,483,942
8,161,068|
|Stock
13|2,439
3,004|2,439
3,004|
|Short-term deposits|247,041
1,049,046|62,236
117,345|
|Cash at bank|3,806,932
3,647,571|2,585,488
2,531,101|
||**13,187,155**
**12,850,243**|**12,134,105**
**10,812,518**|
||||
|**Liabilities**|||
|Creditors (amounts falling due within one
year)
14a|(10,458,968)
(8,966,188)|(9,662,146)
(8,241,851)|
||||
|**Net current assets**|**2,728,187**
**3,884,055**|**2,471,959**
**2,570,667**|
||||
|Total assets less current liabilities|78,319,148
82,163,766|53,463,574
54,702,838|
||||
|Creditors (amounts falling due beyond
oneyear)
14c|(11,500,000)
(11,500,000)|(11,500,000)
(11,500,000)|
||||
|**Total net assets**|**66,819,148**
**70,663,766**|**41,963,574**
**43,202,838**|
||||
|**The funds of the Group/Charity: **|||
||||
|**Restricted income funds**
16|35,007,976
38,167,859|10,374,183
10,870,683|
||||
|**Unrestricted funds**|||
|Designated fund|3,880,132
3,724,180|3,724,180
3,197,927|
|General fund|27,931,040
28,771,727|27,865,211
29,134,228|
|**Total unrestricted funds**|31,811,172
32,495,907|31,589,391
32,332,155|
|**Total charitable funds**|**66,819,148**
**70,663,766**|**41,963,574**
**43,202,838**|
_The notes on pages 44 to 59 form part of these financial statements._
_These financial statements were approved and authorised for issue by the President and Chair of the Finance Committee under delegated authority from the Trustee Board._
Signed on behalf of the Trustee Board on 15 August 2023
**Professor Sir Jim McDonald FREng FRSE** President
**David Eyton CBE FREng** Chair of the Finance Committee
## Consolidated statement of cash flows
## **Year ended 31 March 2023**
|**Year ended 31 March 2023**|||
|---|---|---|
||**2023**|**2022**|
||**£**|**£**|
|**Cash fows from operating activities:**|||
|Net cash expended byoperatingactivities|(315,081)|(1,795,630)|
|Cash fows from investingactivities:|||
|Dividends, interest and rents from investments|1,019,976|1,050,602|
|Purchase ofproperty,plants and equipment|(1,547,850)|(408,084)|
|Proceeds from the sale of investments|5,995,223|28,901,597|
|Purchase of investments|(5,794,912)|(26,628,384)|
|Net cash (expended)/provided byinvestingactivities|(327,563)|2,915,731|
||||
|Change in cash and cash equivalents in the reporting period|(642,644)|1,120,101|
|Cash and cash equivalents at 1 April|4,696,617|3,576,516|
|**Cash and cash equivalents at 31 March**|**4,053,973**|**4,696,617**|
||||
|**Reconciliation of net (expenditure)/income to net cash fow used in operating**|||
|**activities**|||
|Net (expenditure)/income for the reporting periods (as per the statement of fnancial|||
|activities)|(3,844,618)|2,252,649|
|Net losses/(gains) on investments|3,346,714|(2,824,733)|
|Adjustments for:|||
|Depreciation charges|689,574|615,939|
|Dividends, interest and rents from investments|(1,019,976)|(1,050,602)|
|Decrease in stocks|566|104|
|(Increase)/decrease in debtors|(980,121)|645,036|
|Increase/(decrease) in creditors|1,492,780|(1,434,023)|
|**Net cash expended by operating activities**|**(315,081)**|**(1,795,630)**|
||||
|**Analysis of cash and cash equivalents**|||
|Cash in hand|3,806,932|3,647,571|
|Notice deposits|247,041|1,049,046|
|**Total cash and cash equivalents**|**4,053,973**|**4,696,617**|
_The notes on pages 44 to 59 form part of these financial statements._
## **Analysis of changes in net debt**
|**Analysis of changes in net debt**||||
|---|---|---|---|
||**2023**|**Cash fows**|**2022**|
||**£**|**£**|**£**|
|**Cash and cash equivalents**||||
|Cash in hand|3,806,932|159,361|3,647,571|
|Notice deposits|247,041|(802,005)|1,049,046|
||**4,053,973**|**(642,644)**|**4,696,617**|
|**Borrowings**||||
|Debt due within oneyear|–|–|–|
|Debt due after oneyear|(11,500,000)|–|(11,500,000)|
|**Total funds**|**(7,446,027)**|**(642,644)**|**(6,803,383)**|
_The notes on pages 44 to 59 form part of these financial statements._
Annual Report and Accounts 2022|2023
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Royal Academy of Engineering
**NOTES TO THE ACCOUNTS**
## Notes to the accounts
## **For the year ended 31 March 2023**
## **Note 1 – Accounting policies**
- **(a) Basis of preparation of the**
## **accounts**
The annual report, incorporating the financial statements for the year ended 31 March 2023, has been prepared in accordance with the Academy’s Royal Charter, and in compliance Accounting and Reporting by Charities: Statement of Recommended Practice 2019 applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) – (Charities SORP (FRS102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). The Academy meets the definition of public benefit entity under FRS102.
**(b) Historical cost convention** The financial statements have been prepared under the historical cost convention, as modified for the inclusion of
investment assets at market value.
## **(c) Consolidation**
The financial statements consolidate the results of the Academy and its own wholly owned subsidiaries, RAE Trading Limited and the Queen Elizabeth Prize for Engineering Foundation, on a line-by-line basis. Transactions and balances between the Academy and its subsidiaries have been eliminated from the consolidated financial statements. Balances between the Academy and the subsidiaries are disclosed in the notes of the Academy’s balance sheet. A separate statement of Financial Activities and Income and Expenditure Account for the Academy has not been presented because the Academy has taken advantage of the exemption afforded by FRS 102.
## **(d) Income**
The specific bases for accounting for income are described below. In general terms, income is accounted for on a receivable
basis, gross of related expenditure. Income is only recognised where there is evidence of entitlement, where it is probable that income will be received and recognised only when income can be measured.
donated professional services and donated facilities are recognised on the basis of the value of the gift to the Academy, which is the amount the Academy would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount in then recognised in expenditure in the period of receipt.
- Grants receivable are recognised when entitlement to the grant is approved and communicated, and also include returned grants that are accounted for on receipt.
## **(f) Expenditure**
Expenditure is recognised on an accruals basis, gross of any related income. Costs are allocated to activities as described below. Indirect costs are apportioned to activities on a basis consistent with the use of the resources.
- Gifts and donations and legacies are included in full in the statement of financial activities when receivable.
- For legacies, entitlement is taken as the earlier of the date on which either: the Academy is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the Academy that a distribution will be made; or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the Academy has been notified to the executor’s intention to make a distribution.
- Costs of raising funds comprise direct costs and expense of staff involved with fundraising, fees paid to investment fund managers, and trading costs.
- Charitable activities – grants. Grants payable are charged in the year in which the commitments to pay the grants are made.
- Charitable activities – other.
reliably and the Academy has Other charitable expenditure been notified to the executor’s includes all direct expenditure, intention to make a distribution. including irrecoverable VAT • Income from sales of goods and staff costs, which is directly or contracts for services is attributable to activities. recognised when the goods and Indirect costs are allocated to services are delivered. each charitable activity based • Investment income is included on the number of staff directly in the Statement of Financial supporting the activity.
- Investment income is included in the Statement of Financial Activities in the year in which it is receivable.
## **(g) Support costs**
Support costs are those functions that assist the work of the Academy and mainly comprise of staff costs and overheads. Support costs, which include irrecoverable VAT, are assigned to the Academy’s charitable objectives in line with the direct expenditure under each heading.
- Other incoming resources consist of subscriptions which are recognised on an accruals basis.
- **(e) Donated services and facilities**
Donated professional services and donated facilities are recognised as income when the Academy has control over the item, any condition associated with the donated item has been met, the receipt of economic benefit from the use by the Academy of the item is probable and that economic benefit can be measured reliably. On receipt,
- **(h) Operating leases**
Rental costs under operating leases are charged to the Statement of Financial Activities evenly over the term of the lease.
- **(i) Tangible fixed assets**
Depreciation is provided on all tangible fixed assets at rates
calculated to write off the cost of **(m) Debtors** each asset over its expected useful life, as follows:
been identified by the Trustees and therefore these accounts have been prepared on a going concern basis.
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
**Office fixtures and fittings** – _over five years._
Royal Academy of Engineering’s senior leadership team monitor the Group and Charity’s cash position on a monthly basis by looking at the cash flow forecast for the next 12 months, broken down by month. This forecast, combined with an assessment of the future reserves position, forms the basis of our assessment of going concern. It has been stress tested to reflect a significant reduction of the Charity’s government funding over and above our key risk assumptions (set out in the report of Trustee Board).
**Computer equipment** – _over three years._
- **Leasehold cost** – _over the term of lease._
- **(n) Stock**
Stock is included at the lower of cost or net realisable value.
**Carlton House Terrace** – _over the term of lease._
- **(o) Cash and cash equivalents at bank**
- **(j) Investments**
Listed investments are included Cash and cash equivalents at in the financial statements at bank includes cash and short market value at the balance sheet term highly liquid investments date. Gains/losses on disposal obtainable within three months. of investments and revaluation **(p) Creditors** of investments are recognised Creditors are recognised where in the year of gain or loss and the Academy has a present are allocated to the funds to obligation resulting from a past which the investments relate. event that will probably result Investments in subsidiaries in the transfer of funds to a are included in the financial third party and the amount due statements at cost.
Creditors are recognised where the Academy has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors are normally recognised at their settlement amount after allowing for any trade discounts due.
Based on these forecasts, and the Group’s net asset position of £66.8 million, which is comprised primarily of cash and investments, we believe that the going concern basis of accounting remains appropriate for our accounts.
- **(k) Pensions**
The Academy operates a defined contribution pension scheme. The assets of the scheme are held separately from those of due. the Academy in independently **(q) Financial instruments** administered funds. The pensions cost charge represents contributions payable to the scheme in the year. The Academy financial instruments. Basic has no liability under the scheme other than the payment of those contributions.
- **(t) Grants payable**
The Academy only has financial Grants payable are recognised assets and financial liabilities when entitlement to the grant of a kind that qualify as basic is approved and communicated, financial instruments. Basic and also include returned grants financial instruments are initially that are accounted for on receipt. recognised at transaction value and subsequently measured at their settlement value with the exception of bank loans, which are subsequently measured at amortised cost using the effective interest method.
- **(l) Funds**
General funds are those that are available for use at the Trustee Board’s discretion in the furtherance of the Academy’s objectives. Designated funds are unrestricted funds set aside for unrestricted purposes and which would otherwise form part of general funds. Details of the nature and purpose of each designated fund are set out in note 16. Restricted funds are funds that are subject to restrictions imposed by donors and are applied in accordance with these restrictions. Details of the nature and purpose of each restricted fund are set out in note 16.
- **(r) Corporation taxation**
The Academy is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objectives.
- **(s) Going concern**
No material uncertainties that may cast significant doubt about the ability of the charity to continue as a going concern have
Annual Report and Accounts 2022|2023
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Royal Academy of Engineering
**NOTES TO THE ACCOUNTS**
**NOTES TO THE ACCOUNTS**
|**Year ended 31 March 2023**|**Unrestricted**|**Restricted**|**Totals**|**Unrestricted**|**Restricted**|**Totals**|
|---|---|---|---|---|---|---|
||**funds**|**funds**|**31 March**|**funds**|**funds**|**31 March**|
||||**2023**|||**2022**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Note 2 – Grants**|||||||
|Government grant|||||||
|(See note 3)|–|38,394,166|38,394,166|–|19,730,182|19,730,182|
|**Note 3 – Governmentgrant**|||||||
|Grant was expended on:|||||||
|Programme expenditure|–|35,526,229|35,526,229|–|18,696,206|18,696,206|
|Cost of managing programmes|–|2,867,937|2,867,937|–|1,033,976|1,033,976|
||**–**|**38,394,166**|**38,394,166**|**–**|**19,730,182**|**19,730,182**|
|**Note 4 – Other grants and**|||||||
|**contracts**|||||||
|Global Challenges Research|||||||
|Fund|–|5,234,222|5,234,222|–|2,974,270|2,974,270|
|Newton Fund|–|1,900,720|1,900,720|–|1,705,680|1,705,680|
|End of engineered life|–|1,270,437|1,270,437|–|500,626|500,626|
|UK Intelligence Community|||||||
|(IC) Postdoctoral Research|||||||
|Fellowships|–|1,268,850|1,268,850|–|2,210,530|2,210,530|
|Engineering skills where they|||||||
|are most needed|–|903,370|903,370|–|816,276|816,276|
|Programme for safer complex|||||||
|industrial and engineered|||||||
|systems|–|898,426|898,426|–|235,223|235,223|
|Global Talent Visas|–|713,575|713,575|–|493,175|493,175|
|Sainsbury Management|||||||
|Fellowships|–|458,417|458,417|–|528,375|528,375|
|Amazon Future Engineer|||||||
|Bursaries|–|445,735|445,735|–|337,500|337,500|
|Leverhulme Fellowships|–|325,643|325,643|–|450,425|450,425|
|1851 Royal Commission|||||||
|Enterprise Fellowships|–|300,000|300,000|–|350,003|350,003|
|ConnectingSTEM Teachers|–|149,528|149,528|–|353,010|353,010|
|Other awards and contracts|–|131,977|131,977|–|182,930|182,930|
|Frontiers IIED|–|122,000|122,000|–|–|–|
|Africa Programmes|–|121,310|121,310|–|–|–|
|Welsh Valleys Bursaries|||||||
|Scheme|–|121,152|121,152|–|107,393|107,393|
|Motorsport MSc Scholarships|–|22,786|22,786|–|–|–|
|Sir Ralph Robins Scholarships|–|50,000|50,000|–|50,000|50,000|
|Engineering Leadership|||||||
|Scheme – Buro Happold|–|39,300|39,300|–|–|–|
|Enterprise Hub|–|38,000|38,000|–|100,902|100,902|
|MacRobert Award|–|20,750|20,750|–|–|–|
|RAEng/EPSRC Research|||||||
|Fellowships|–|3,583|3,583|–|47,349|47,349|
|**Year ended 31 March 2023**|**Unrestricted**|**Restricted**|**Totals**|**Unrestricted**|**Restricted**|**Totals**|
|---|---|---|---|---|---|---|
||**funds**|**funds**|**31 March**|**funds**|**funds**|**31 March**|
||||**2023**|||**2022**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Investment in Research Talent|–|–|–|–|13,304,319|13,304,319|
|Northern Ireland Engineering|||||||
|Education Programme|–|–|–|–|477,000|477,000|
|BEIS Bhattacharrya|–|–|–|–|309,750|309,750|
|Connecting STEM Teachers|||||||
|social mobility pilot|–|–|–|–|300,000|300,000|
|Education studies and support|–|–|–|–|99,600|99,600|
|Africa Prize for Engineering|||||||
|Innovation|–|–|–|–|2,250|2,250|
|EngineeringFE|–|–|–|–|(27,427)|(27,427)|
||–|14,539,781|14,539,781|–|25,909,159|25,909,159|
|_Engineering FE is showing negative_|_income 2021/22 due to the return of_||_funds following_|_the end of the scheme_|||
|**Total charitable activities**|**–**|**52,933,947**|**52,933,947**|**–**|**45,639,341**|**45,639,341**|
|**Note 5 – Donations and**|||||||
|**legacies**|||||||
|Annual Appeal|–|–|–|54,301|–|54,301|
|ERA Foundation Enterprise|||||||
|Fellowships|–|62,500|62,500|–|–|–|
|Wikipedia Project|–|50,000|50,000|–|–|–|
|This is Engineering|–|1,080,667|1,080,667|–|360,000|360,000|
|Prince PhilipFund|680,187|–|680,187|41,736|–|41,736|
|Queen Elizabeth Prize for|||||||
|Engineering|–|150,000|150,000|–|199,955|199,955|
|Legacies|–|–|–|2,811|–|2,811|
|Other|–|–|–|965|–|965|
||**680,187**|**1,343,167**|**2,023,354**|**99,813**|**559,955**|**659,768**|
|_Unrestricted annual appeal and legacies income has been recorded under the Prince Philip Fund in 2022/23_|||||||
|**Note 6 – Investment income**|||||||
|---|---|---|---|---|---|---|
|Dividends and income|||||||
|from equity investments|||||||
|and fxed interest bonds|322,391|664,168|986,559|456,415|593,481|1,049,896|
|Interest on bank deposits|29,650|3,767|33,417|600|106|706|
||**352,041**|**667,935**|**1,019,976**|**457,015**|**593,587**|**1,050,602**|
|**Note 6a – Other trading**|||||||
|**income**|||||||
|Sponsorshipand events|108,980|–|108,980|118,584|–|118,584|
|Subscription income|185,792|–|185,792|355,579|–|355,579|
|Advertising income and|||||||
|merchandising|23,212|–|23,212|16,469|–|16,469|
|Conferencingbusiness|828,974|–|828,974|433,760|–|433,760|
||**1,146,958**|**–**|**1,146,958**|**924,392**|**–**|**924,392**|
Annual Report and Accounts 2022|2023
46
47
Royal Academy of Engineering
**NOTES TO THE ACCOUNTS**
**NOTES TO THE ACCOUNTS**
||**Talent and**|**Innovation**|**Policy and**|**Queen**|**Total**|**Total**|
|---|---|---|---|---|---|---|
||**diversity**||**engagement**|**Elizabeth**|**31 March**|**31 March**|
|||||**Prize for**|**2023**|**2022**|
|||||**Engineering**|||
|||||**Foundation**|||
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Note 7 – Charitable**|||||||
|**expenditure**|||||||
|**Unrestricted**|||||||
|Charitable activities|9,339|–|102,779|–|112,118|59,733|
|Charitablegrants|–|–|–|–|–|91,717|
|Direct salaries|53,326|–|260,902|–|314,228|286,824|
|Support costs|124,183|–|720,702|–|844,885|984,977|
||**186,848**|**–**|**1,084,383**|**–**|**1,271,231**|**1,423,251**|
|**Restricted**|||||||
|Charitable activities|2,576,983|4,567,720|1,423,789|1,265,198|9,833,690|7,151,879|
|Charitablegrants|3,008,021|29,357,043|824,293|–|33,189,357|30,152,283|
|Direct salaries|847,842|2,929,942|2,448,876|186,126|6,412,786|5,121,326|
|Support costs|677,810|3,883,268|494,907|160,998|5,216,983|3,675,110|
||**7,110,656**|**40,737,973**|**5,191,865**|**1,612,322**|**54,652,816**|**46,100,598**|
|**Total charitable**|||||||
|**activities**|**7,297,504**|**40,737,973**|**6,276,248**|**1,612,322**|**55,924,047**|**47,523,849**|
|Total support costs of £6,061,868 are made up of indirect staff|||costs totalling|£1,877,891 and accommodation||costs and|
|overheads totalling £4,183,977|||||||
||||||||
|**2022 Total charitable**|||||||
|**activities**|**6,636,540**|**33,911,008**|**5,867,528**|**1,108,773**||**47,523,849**|
In 2022 £1,423,521 of charitable activities expenditure related to unrestricted funds and £46,100,598 related to restricted funds
||**2023**|**2022**|
|---|---|---|
||**£**|**£**|
|**Note 8 – Other costs**|||
|Auditor’s fees:|||
|– Audit|49,948|33,075|
|– Other services|14,364|117|
|Legal andprofessional fees|44,563|–|
||**108,875**|**33,192**|
|**Note 9 – Staff andpensions costs**|**2023**|**2022**|
|---|---|---|
|Gross salaries|7,711,583|6,177,989|
|Employer's National Insurance less NI Allowance|903,963|680,395|
|Benefts in kind|39,967|34,578|
|Pension charge|764,399|625,725|
|Recruitment costs|256,791|223,395|
|Temporarystaff costs|333,301|233,872|
|Trainingcosts|41,359|65,362|
|Other costs|51,999|147,045|
||**10,103,362**|**8,188,361**|
|Average number of staff in theyear byactivity:|**2023**|**2022**|
|– Engineeringand education|26|20|
|– Programmes and fellowship|61|49|
|– Policyand external affairs|36|29|
|– Executive, development, finance and administration|42|39|
|– Queen Elizabeth Prize for EngineeringFoundation|4|5|
||**169**|**142**|
_No remuneration is paid to the President or members of the Trustee Board of the Academy. Travelling expenses to attend Trustee Board meetings were nil in 2022/23 (2021/22 nil)._
_No ex gratia payments were made in 2022/23 (2021/22 nil)._
|The emoluments of higherpaid staff within the followingscales were:|**2023**|**2022**|
|---|---|---|
|£60,000 – £70,000|7|11|
|£70,001 – £80,000|5|3|
|£80,001 – £90,000|2|1|
|£90,001 – £100,000|3|3|
|£100,001 – £110,000|3|1|
|£110,001 – £120,000|1|1|
|£120,001 – £130,000|–|1|
|£130,001 – £140,000|1|1|
|£190,001 – £200,000|1|1|
_Emoluments include salary, bonuses and benefits in kind but exclude pension scheme contributions. Staff numbers are based on full-time equivalent. The executive leadership team comprises a chief executive, chief operating officer, executive director programmes, and two directors (2021/22 two directors) who manage the day-to-day operations of the charity. Their aggregate remuneration in the year was £730,210 (2021/22 £686,608)._
_Note: There were no resignations and no appointments among the senior management team during the year._
£5,440 was charged to the Academy in relation to operating leases
Annual Report and Accounts 2022|2023
48
49
Royal Academy of Engineering
**NOTES TO THE ACCOUNTS**
**NOTES TO THE ACCOUNTS**
## **Note 9(b) – Pensions**
The Academy operates a defined contribution pension scheme for staff that joined after 1 January 2000 that is compliant with auto-enrolment legislation. The assets of the scheme are held separately from those of the Academy in independently administered funds. The Academy has no liability under the scheme other than the payment of contributions.
|**Note 10**|**Computer systems**
**and equipment**|**Offce fxtures**
**and fttings**|**Leasehold**|**Carlton House**
**Terrace**|**Total**|
|---|---|---|---|---|---|
|||||**improvement**||
||**£**|**£**|**£**|**£**|**£**|
|**Tangible fxed assets**||||||
|**(group and charity)**||||||
|**Cost**||||||
|At 1 April 2022|2,029,385|1,413,543|12,509,790|13,996,607|29,949,325|
|Additions|1,305,251|242,600|–|–|1,547,851|
|**At 31 March 2023**|**3,334,636**|**1,656,143**|**12,509,790**|**13,996,607**|**31,497,176**|
|||||||
|**Depreciation**||||||
|At 1 April 2022|(1,456,024)|(905,884)|(1,559,176)|(1,399,916)|(5,321,000)|
|Charge foryear|(268,556)|(203,862)|(91,257)|(125,896)|(689,571)|
|**At 31 March 2023**|**(1,724,580)**|**(1,109,746)**|**(1,650,433)**|**(1,525,812)**|**(6,010,571)**|
|||||||
|**Net book value**||||||
|**At 31 March 2023**|**1,610,056**|**546,397**|**10,859,357**|**12,470,795**|**25,486,605**|
|At 1 April 2022|573,361|507,659|10,950,614|12,596,691|24,628,325|
_All assets are used for charitable purposes._
## **Medal collections**
- The Sir Denis Rooke Medals Collection is on loan from the family of Sir Denis Rooke OM CBE FRS FREng, who served as Academy President from 1986 to 1991. The collection includes many of the awards Sir Denis received during his distinguished career as a pioneer of the UK’s gas industry.
- The Whittle Medals Collection is on loan from the family of Sir Frank Whittle OM KBE CB FEng FRS, who patented the jet propulsion engine in 1930. The medals relate to his achievements in engineering and celebrate his successes.
- The Warner Medals Collection was a personal gift by Professor Sir Frederick Warner FRS FREng after his death in 2010. The medals relate to his achievements in engineering and celebrate his successes.
These medal collections are not held on the balance sheet. The Trustees consider that it is not practicable to obtain a valuation, but are satisfied that the value of the medals collections is not material.
## **Note 11 – Investments (group and charity)**
Investments held in the general fund portfolio represent those held by the Royal Academy of Engineering with the objective of generating income for the Academy’s charitable objective while preserving the capital value of the portfolio.
Investments held in the restricted fund portfolio represent those held by the Queen Elizabeth Prize for Engineering Foundation with the objective of generating income for the Foundation’s charitable objective.
||**2023**|**2023**|**2023**|**2023**|**2023**|
|---|---|---|---|---|---|
|||**Designated**||**Restricted**||
||**General fund**|**income funds**|**Total funds**|**fund**|**Total Portfolio**|
||**(Charity)**|**(Charity)**|**(Charity)**|**(Subsidiary)**|**(Group)**|
|Market value at 1 April|25,763,606|1,740,141|27,503,747|26,147,639|53,651,386|
|Add acquisitions at cost|965,718|65,161|1,030,879|4,764,032|5,794,911|
|Less: salesproceeds|(951,445)|(64,236)|(1,015,681)|(4,979,542)|(5,995,223)|
|Net investment losses for theyear|(1,898,624)|(115,411)|(2,014,035)|(1,332,683)|(3,346,718)|
|**Market value at 31 March**|**23,879,255**|**1,625,655**|**25,504,910**|**24,599,446**|**50,104,356**|
_Investments in the general fund (charity) consist of securities listed on global stock markets (70% of portfolio) and fixed interest bonds/diversified assets (30% of portfolio)._
_The designated income funds consist of funds invested in line with the general fund (charity) investment strategy to support the MacRobert Award and funds invested in securities listed on global stock markets to support the Colin Campbell Mitchell Award. Investments in the restricted fund (subsidiary) consist of securities listed on global stock markets (75% of portfolio) and fixed interest bonds/diversified assets (25% of portfolio)._
||**Group**
**2023**
**£**
**2022**
**£**|**Charity**
**2023**
**£**
**2022**
**£**|
|---|---|---|
|**Note 12 – Debtors**|||
|Grants and sponsorshipreceivable|7,416,051
6,654,024|7,416,050
6,654,024|
|Prepayments|201,104
293,739|201,104
293,739|
|Other debtors|1,513,588
1,202,859|1,327,164
967,469|
|Amounts due for subsidiaryundertakings|–
–|539,624
245,836|
||**9,130,743**
**8,150,622**|**9,483,942**
**8,161,068**|
|**Note 13 – Stocks (Group and Charity)**|||
|Publications, Academy ties, presentation plates and
medals|2,439
3,004|2,439
3,004|
Annual Report and Accounts 2022|2023
50
51
Royal Academy of Engineering
**NOTES TO THE ACCOUNTS**
**NOTES TO THE ACCOUNTS**
||**Group**
**2023**
**£**
**2022**
**£**|**Charity**
**2023**
**£**
**2022**
**£**|
|---|---|---|
|**Note 14a – Creditors (amounts falling due within**
**oneyear)**|||
|Committedgrants andprizes|7,631,797
6,920,722|7,631,795
6,920,722|
|Deferred income|646,748
497,387|646,748
497,387|
|Subscriptions in advance|192,471
203,363|192,471
203,363|
|Other creditors|1,738,527
1,344,716|931,750
542,432|
|Amounts due to subsidiaryundertakings|–
–|9,957
77,947|
|Social securityand other costs|249,425
–|249,425
–|
||**10,458,968**
**8,966,188**|**9,662,146**
**8,241,851**|
|**Note 14b – Deferred income**|||
Deferred income comprises of advance funding for the Connecting STEM Teachers programme, Enterprise Fellowships and Research Fellowships.
|Research Fellowships.|||
|---|---|---|
|Balance at 1 April|497,387
598,475|497,387
598,475|
|Amount released to income earned from charitable
activities|(471,958)
(1,172,702)|(471,958)
(1,172,702)|
|Amount deferred inyear|621,319
1,071,614|621,319
1,071,614|
|**Balance as at 31 March**|**646,748**
**497,387**|**646,748**
**497,387**|
|**Note 14c – Creditors (amounts falling beyond oneyear)**|||
|Bank loan*|||
|– Due one to twoyears|–
–|–
–|
|– Due within two to fveyears|11,500,000
11,500,000|11,500,000
11,500,000|
|– Due after fveyears|–
–|–
–|
||**11,500,000**
**11,500,000**|**11,500,000**
**11,500,000**|
|Research Fellowships.|||
|---|---|---|
|Balance at 1 April|497,387
598,475|497,387
598,475|
|Amount released to income earned from charitable
activities|(471,958)
(1,172,702)|(471,958)
(1,172,702)|
|Amount deferred inyear|621,319
1,071,614|621,319
1,071,614|
|**Balance as at 31 March**|**646,748**
**497,387**|**646,748**
**497,387**|
|**Note 14c – Creditors (amounts falling beyond oneyear)**|||
|Bank loan*|||
|– Due one to twoyears|–
–|–
–|
|– Due within two to fveyears|11,500,000
11,500,000|11,500,000
11,500,000|
|– Due after fveyears|–
–|–
–|
||**11,500,000**
**11,500,000**|**11,500,000**
**11,500,000**|
* _The Academy has a secured loan of £11.5 million with Aviva, the capital sum is repayable February 2027, an interest rate of 3.11% fixed being applied. The loan is secured against 3 Carlton House Terrace, which was valued at £30.05 million on 1 December 2022. There is currently a 38% loan-to-value ratio. There is a maximum 45% loan to value ratio set out in the terms of the loan._
|
_of the loan._|||
|---|---|---|
|**Note 15 – Future commitments**|||
|**Total minimum commitments under operating leases**|||
|Rent|||
|not later than oneyear|240,000
240,000|240,000
240,000|
||||
|Equipment|||
|not later than oneyear|–
1,738|–
1,738|
|**Total**|**240,000**
**241,738**|**240,000**
**241,738**|
## **Note 16 – Statement of changes in reserves**
## **Connecting STEM Teachers**
in wide-ranging benefits for both parties.
–
**programme** is building a national network of support for STEM – leaders in secondary schools and is supported by Shell, The Arthur Clements Fund, BAE Systems, Boeing, the estate of the late Mr – John Gozzard, and the Helsington Foundation.
## **(a) Restricted funds**
**Other awards and contracts** are donations and contracts by a number of companies for specific programmes each year. **Global Challenges Research Fund** is part of a £1.5 billion UK government fund to support cutting-edge research that addresses the challenges faced by lower- and middle-income countries (LMICs) through collaborative research and innovation, and research and innovation capacity building within both the UK and LMICs. **UK Intelligence Community (IC) Postdoctoral Research Fellowships** are offered by the Government Office for Science with the Academy acting as academic engagement partner. They support outstanding earlycareer science or engineering researchers to promote unclassified basic research in areas of interest to the intelligence, security and defense community. **Northern Ireland Engineering Education Programme** is working with schools and colleges across Northern Ireland to encourage more young people, particularly young women and those from socially disadvantaged backgrounds and other underrepresented groups, to progress towards careers in engineering.
The Academy’s restricted funds consist of the monies received under grants, corporate donations and contracts to support specific schemes as follows:
- **Department for Business, Energy and Industrial Strategy (BEIS)** – provides a government grant to fund programmes in the areas of engineering research and promoting the public understanding of engineering.
- – **Investment in Research Talent** – recognises the importance of engineering research to the UK. The government has provided the Royal Academy of Engineering with a significant increase in – funding over the next four years to attract the best research talent to the UK and support their work.
- – **End of engineered life** is a programme funded by the – Lloyd’s Register Foundation to improve safety in waste and decommissioning for industrial and engineered systems, delivered through Engineering X. –
**Further Education Fund** is made up of various donations that are used to support the development of new, and the extension of existing, programmes in further education.
**The Enterprise Hub** supports exceptional entrepreneurs with high-potential ideas to build bold – and disruptive enterprises that have a positive impact on society. **Africa Prize for Engineering Innovation** aims to stimulate, celebrate and reward innovation and entrepreneurship in subSaharan Africa.
**Ms Morag Campbell Nelder Legacy** is to be used to fund the Colin Campbell Mitchell Award, which is given to an individual or group of outstanding engineers. – **Newton Fund** schemes promote research and innovation intended to have a direct and longterm impact on the economic development and social welfare of countries participating with the UK in the Newton Fund.
- **Programme for safer complex** research and innovation intended working with schools and **industrial and engineered** to have a direct and longcolleges across Northern Ireland **systems** is a programme funded term impact on the economic to encourage more young by the Lloyd’s Register Foundation, development and social welfare people, particularly young delivered through Engineering X. of countries participating with the women and those from socially
- – **Engineering skills where they** UK in the Newton Fund. disadvantaged backgrounds and **are most needed** is a programme – **The Capital Building Fund** has other underrepresented groups, funded by the Lloyd’s Register been used to create a base for the to progress towards careers in Foundation, delivered through Academy’s enterprise activities engineering. Engineering X. and develop 3 Carlton House – **Amazon Future Engineer**
- – **Gatsby Charitable Foundation** Terrace into a national forum of **Bursaries** is a national bursary supports Sainsbury Management engineering excellence. programme aimed at supporting Fellowships. – **This is Engineering** , previously women A-level and BTEC/OCR
- – **RAEng/EPSRC Research** known as the Engineering Talent (or Scottish equivalent) students **Fellowships** are administered Project, is a multi-year campaign from low-income households who by the Academy and funded to encourage more young wish to study computer science or jointly by the Academy and the people from all backgrounds to related engineering courses at UK Engineering and Physical Sciences consider a career in engineering universities. Research Council. by changing perceptions of the – **Connecting STEM Teachers social**
- – **Leverhulme Trust** supports Senior profession. **mobility pilot** is an evaluated Research Fellowships of one-year – **Enriching Engineering Education** two-year pilot project supporting duration. **Programme** is centred on schools to run action research
- – **Engineering Leaders Scholarships** a combination of two-way projects to identify and tackle assist undergraduate engineering secondments and collaborative problems in their schools that they students to realise their full workshops. These secondments see as barriers that disadvantaged potential and achieve their career and workshops lead to improved groups of young people face in goals. industry-academia links and result accessing STEM education and
Annual Report and Accounts 2022|2023
52
53
Royal Academy of Engineering
**NOTES TO THE ACCOUNTS**
**NOTES TO THE ACCOUNTS**
## **(b) Designated funds**
- continuing onto STEM careers. the UK and around the world to
- – **Shott Scale Up Accelerator** work together on new ways to focuses on leadership skills solve complex global challenges. development and carefully tailored – **Africa Programmes** provide support designed in collaboration funding and training to individuals with industry experts and leading and institutions in Africa in order engineering and technology to strengthen the engineering business leaders. profession and demonstrate
- – **Frontiers** connects and empowers the importance of engineering enthusiastic researchers, in improving quality of life and innovators and practitioners from economic development.
The Strategic Development Fund is used to deliver impactful charitable activities over the next five years and strengthen the Academy for the longer term.
||**Balance at**|**Incoming**|**Resources**|**Transfers**|**Net**|**Balance at**|
|---|---|---|---|---|---|---|
||**1 April**|**resources**|**expended**|**between**|**investment**|**31 March**|
||**2022**|||**funds**|**(losses)**|**2023**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Restricted funds**|||||||
|Government grant|–|38,394,166|(38,394,166)|–|–|–|
|End of engineered life|456,221|1,270,437|(663,215)|–|–|1,063,443|
|Programme for safer complex|||||||
|industrial and engineered systems|476,895|898,426|(253,132)|–|–|1,122,189|
|Engineering skills where they are|||||||
|most needed|546,874|903,370|(977,601)|–|–|472,643|
|Sainsbury Management Fellowships|–|458,417|(458,417)|–|–|–|
|RAEng/EPSRC Research Fellowships|–|3,583|(3,583)|–|–|–|
|Leverhulme Fellowships|–|325,643|(325,643)|–|–|–|
|Engineering Leaders Scholarships|176,846|–|–|–|–|176,846|
|Connecting STEM Teachers|396,897|149,528|(388,121)|–|–|158,304|
|Connecting STEM Teachers social|||||||
|mobility pilot|300,000|–|(48,982)|–|–|251,018|
|Amazon Future Engineer Bursaries|229,973|445,735|(232,777)|–|–|442,931|
|Northern Ireland Engineering|||||||
|Education Programme|477,000|–|(178,335)|–|–|298,665|
|Sir Ralph Robins Scholarships|300,631|50,000|(30,815)|–|–|319,816|
|Welsh Valleys Bursaries Scheme|93,240|121,152|(143,749)|–|–|70,643|
|Engineering FE|299,893|–|(54,640)|–|–|245,253|
|Enterprise Hub|214,721|38,000|(38,000)|–|–|214,721|
|Shott Scale Up Accelerator|840,624|–|(289,990)|–|–|550,634|
|Africa Prize for Engineering|||||||
|Innovation|410,618|–|(132,499)|–|–|278,119|
|Colin Campbell Mitchell Award|400,830|6,305|(18,323)|–|(10,909)|377,903|
|Newton Fund|–|1,900,720|(1,900,720)|–|–|–|
|Capital Building Fund|1,725,820|–|–|(1,547,851)|–|177,969|
|This is Engineering|7,878|1,080,667|(437,281)|–|–|651,264|
||**Balance at**|**Incoming**|**Resources**|**Transfers**|**Net**|**Balance at**|
|---|---|---|---|---|---|---|
||**1 April**|**resources**|**expended**|**between**|**investment**|**31 March**|
||**2022**|||**funds**|**(losses)**|**2023**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Enriching Engineering Education|||||||
|Programme|304,794|–|(73)|–|–|304,721|
|Education studies and support|21,000|–|(21,000)|–|–|–|
|MacRobert Award|1,279,029|39,292|(73,171)|–|(104,498)|1,140,652|
|Other awards and contracts|203,734|131,977|(27,413)|–|–|308,298|
|1851 Royal Commission Enterprise|||||||
|Fellowships|–|300,000|(300,000)|–|–|–|
|Global Challenges Research Fund|90,483|5,234,222|(5,324,705)|–|–|–|
|Global Talent Visas|–|713,575|(713,575)|–|–|–|
|Wikipedia Project|–|50,000|–|–|–|50,000|
|UK Intelligence Community (IC)|||||||
|Postdoctoral Research Fellowships|1,452,932|1,268,850|(1,423,805)|–|–|1,297,977|
|Frontiers IIED|–|122,000|(91,645)|–|–|30,355|
|Africa Programmes|–|121,310|–|–|–|121,310|
|Motorsport MSc Scholarships|–|22,786|(14,014)|–|–|8,772|
|Engineering Leadership Scheme –|||||||
|Buro Happold|–|39,300|(21,344)|–|–|17,956|
|ERA Foundation Enterprise|||||||
|Fellowships|–|62,500|(62,500)|–|–|–|
|Queen Elizabeth Prize for|||||||
|Engineering|27,460,926|793,088|(1,783,307)|(282,450)|(1,332,683)|24,855,574|
|**Total restricted funds**|**38,167,859**|**54,945,049**|**(54,826,541)**|**(1,830,301)**|**(1,448,090)**|**35,007,976**|
|**Designated funds**|||||||
|Strategic Development Fund|2,750,000|–|–|(921,899)|–|1,828,101|
|Capital Building Fund|974,180|–|–|1,077,851|–|2,052,031|
|Ingenia designated fund|–|23,098|(23,098)|–|–|–|
|**Total designated funds**|**3,724,180**|**23,098**|**(23,098)**|**155,952**|–|**3,880,132**|
|**General fund**|**28,771,727**|**2,156,088**|**(2,772,500)**|**1,674,349**|**(1,898,624)**|**27,931,040**|
|**Total funds**|**70,663,766**|**57,124,235**|**(57,622,139)**|–|**(3,346,714)**|**66,819,148**|
_The general fund deficit of £616,412 is the difference between incoming resources of £2,156,088 and resources expended of £2,772,500._
_All other funds, other than the Queen Elizabeth Prize for Engineering, are funds of the parent charity._
_Capital Building Fund transfer relates to fixed asset additions. Queen Elizabeth Prize for Engineering transfer relates to the management fee charged by the charitable parent._
Annual Report and Accounts 2022|2023
54
55
Royal Academy of Engineering
**NOTES TO THE ACCOUNTS**
**NOTES TO THE ACCOUNTS**
||**Balance at**|**Incoming**|**Resources**|**Transfers**|**Net**|**Balance at**|
|---|---|---|---|---|---|---|
||**1 April**|**resources**|**expended**|**between**|**investment**|**31 March**|
||**2021**|||**funds**|**gains**|**2022**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|**Restricted funds**|||||||
|Government grant|–|19,730,182|(19,730,182)|–|–|–|
|Investment in Research Talent|–|13,304,320|(13,304,320)|–|–|–|
|End of engineered life|346,941|500,626|(391,346)|–|–|456,221|
|Programme for safer complex|||||||
|industrial and engineered systems|510,745|199,223|(233,073)|–|–|476,895|
|Engineering skills where they are|||||||
|most needed|236,107|816,276|(505,509)|–|–|546,874|
|BEIS Bhattacharyya|–|309,750|(309,750)|–|–|–|
|Sainsbury Management Fellowships|–|564,375|(564,375)|–|–|–|
|RAEng/EPSRC Research Fellowships|–|47,349|(47,349)|–|–|–|
|Leverhulme Fellowships|–|450,425|(450,425)|–|–|–|
|Engineering Leaders Scholarships|176,846|–|–|–|–|176,846|
|Connecting STEM Teachers|992,701|353,010|(948,814)|–|–|396,897|
|Connecting STEM Teachers social|||||||
|mobility pilot|–|300,000|–|–|–|300,000|
|Amazon Future Engineer Bursaries|–|337,500|(107,527)|–|–|229,973|
|Northern Ireland Engineering|||||||
|Education Programme|–|477,000|–|–|–|477,000|
|Sir Ralph Robins Scholarships|280,631|50,000|(30,000)|–|–|300,631|
|Welsh Valleys Bursaries Scheme|87,471|107,393|(101,624)|–|–|93,240|
|Engineering FE|372,391|(27,427)|(45,071)|–|–|299,893|
|Enterprise Hub|1,214,721|100,902|(100,902)|(1,000,000)|–|214,721|
|Shott Scale Up Accelerator|–|–|(159,376)|1,000,000|–|840,624|
|Africa Prize for Engineering|||||||
|Innovation|552,704|2,250|(144,336)|–|–|410,618|
|Colin Campbell Mitchell Award|371,833|5,011|(20,680)|–|44,666|400,830|
|Newton Fund|–|1,705,680|(1,705,680)|–|–|–|
|Capital Building Fund|2,133,904|–|–|(408,084)|–|1,725,820|
|This is Engineering|13,957|360,000|(366,079)|–|–|7,878|
|Enriching Engineering Education|||||||
|Programme|313,524|–|(8,730)|–|–|304,794|
|MacRobert Award|1,270,100|26,268|(61,207)|–|43,868|1,279,029|
|Other awards and contracts|222,699|182,930|(201,895)|–|–|203,734|
|1851 Royal Commission Enterprise|||||||
|Fellowships|–|350,003|(350,003)|–|–|–|
|Global Challenges Research Fund|–|2,974,270|(2,883,787)|–|–|90,483|
|Tier 1 Visa Applications|–|493,175|(493,175)|–|–|–|
|UK Intelligence Community (IC)|||||||
|Postdoctoral Research Fellowships|847,199|2,210,530|(1,604,797)|–|–|1,452,932|
|Pandemic Response|46,056|–|(46,056)|–|–|–|
||**Balance at**|**Incoming**|**Resources**|**Transfers**|**Net**|**Balance at**|
|---|---|---|---|---|---|---|
||**1 April**|**resources**|**expended**|**between**|**investment**|**31 March**|
||**2021**|||**funds**|**gains**|**2022**|
||**£**|**£**|**£**|**£**|**£**|**£**|
|Queen Elizabeth Prize for|||||||
|Engineering|26,335,235|762,262|(1,298,916)|(269,000)|1,931,345|27,460,926|
|**Total restricted funds**|**36,325,765**|**46,792,883**|**(46,293,584)**|**(677,084)**|**2,019,879**|**38,167,859**|
|**Designated funds**|||||||
|Strategic Development Fund|2,531,831|–|–|218,169|–|2,750,000|
|Capital Building Fund|666,096|–|–|308,084|–|974,180|
|Ingenia designated fund|–|16,336|(16,336)|–|–|–|
|**Total designated funds**|**3,197,927**|**16,336**|**(16,336)**|**526,253**|**–**|**3,724,180**|
|**General fund**|**28,887,425**|**1,464,884**|**(2,536,267)**|**150,831**|**804,854**|**28,771,727**|
|**Total restricted funds**|**68,411,117**|**48,274,103**|**(48,846,187)**|**–**|**2,824,733**|**70,663,766**|
_The general fund deficit of £1,071,383 is the difference between incoming resources of £1,464,884 and resources expended of £2,536,267_
_All other funds, other than the Queen Elizabeth Prize for Engineering, are funds of the parent charity._
_Transfers between funds: a £1 million donation was received 2020/21 for the Enterprise Hub. The donor agreed that his donation should be included within our 50th anniversary fundraising campaign, and for this named donation to be reflected in the title of the programme ‘Shott Scale Up Accelerator’. Capital Building Fund transfer relates to fixed asset additions. Queen Elizabeth Prize for Engineering transfer relates to the management fee charged by the charitable parent._
**Note 17 – Analysis of net assets between funds**
||**Tangible fxed**|**Investments**|**Current assets**|**Liabilities**|
**Total net assets**|
|---|---|---|---|---|---|
||**assets 2023**|**2023**|**2023**|**2023**|**2023**|
||**£**|**£**|**£**|**£**|**£**|
|Restricted funds|25,486,605|26,225,101|3,686,485|(20,390,215)|35,007,976|
|Special and designated funds|–|–|3,880,132|–|3,880,132|
|General funds|–|23,879,255|5,620,538|(1,568,753)|27,931,040|
|**Total funds**|**25,486,605**|**50,104,356**|**13,187,155**|**(21,958,968)**|**66,819,148**|
||**Tangible fxed**|**Investments**|**Current assets**|**Liabilities**|
**Total net assets**|
||**assets 2022**|**2022**|**2022**|**2022**|**2022**|
||**£**|**£**|**£**|**£**|**£**|
|Restricted funds|24,628,325|27,887,781|3,052,427|(17,400,674)|38,167,859|
|Special and designated funds|–|–|3,724,180|–|3,724,180|
|General funds|–|25,763,605|6,073,636|(3,065,514)|28,771,727|
|**Total funds**|**24,628,325**|**53,651,386**|**12,850,243**|**(20,466,188)**|**70,663,766**|
Annual Report and Accounts 2022|2023
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**NOTES TO THE ACCOUNTS**
**NOTES TO THE ACCOUNTS**
## **Note 18 – Subsidiary activities**
The Academy has one wholly owned subsidiary, RAE Trading Limited (registered company number 08038360) and a charitable subsidiary company, the Queen Elizabeth Prize for Engineering Foundation (registered charity number 1147743, registered company number 8077332). RAE Trading Limited was formed in April 2012 and manages a conferencing business at Prince Philip House; all available trading profits are gift-aided to the charity.
RAE Trading Limited and the Queen Elizabeth Prize for Engineering Foundation are registered in the UK and have the same year end date as the charity.
The Academy owns all 100 £1 shares in RAE Trading Limited.
The Queen Elizabeth Prize for Engineering Foundation was formed in May 2012 and advances the education of the public in the subject of engineering by awarding an annual high-profile and internationally recognised prize for engineering. All activities have been consolidated on a line-by-line basis in the statement of financial activities and these results have been adjusted to eliminate income and expenditure relating to conferencing activities to the Academy and the Queen Elizabeth Prize for Engineering, and management fees payable to the Academy.
## **Note 19 – Related party transactions**
The Academy has the following transactions within its subsidiaries during the year:
||**Sales**|**Salary**|**Management**|**Debtors**|**Creditors**|
|---|---|---|---|---|---|
|||**recharges**|**charges**|||
||**£**|**£**|**£**|**£**|**£**|
|Queen Elizabeth Prize for EngineeringFoundation|–|275,115|282,450|107,354|–|
|RAE TradingLimited|217,310|–|214,000|432,270|9,957|
_A member of staff of the Royal Academy of Engineering R Earnshaw is a close family relation of C Earnshaw who is a Trustee of the Royal Academy of Engineering. The staff appointment was made prior to C Earnshaw becoming a Trustee. All employee salaries including that of R Earnshaw are set in line with market benchmarks._
_All transactions in respect of Trustees are provided for in Note 9._
|**At 31 March 2022**|**RAE Trading Ltd**
**2023**
**2022**|**Queen Elizabeth Prize for**
**Engineering Foundation**
**2023**
**2022**|
|---|---|---|
||**£**
**£**|**£**
**£**|
|Total incomingresources|1,046,284
505,779|793,088
762,262|
|Total resources expended|(909,950)
(413,424)|(2,065,757)
(1,567,916)|
||136,333
92,355|(1,272,669)
(805,654)|
|Total investment (losses)/gains|–
–|(1,332,683)
1,931,345|
|Net funds/(defcit) beforegift aid|136,333
92,355|(2,605,352)
1,125,691|
|Gift aid to Royal Academyof Engineering|(136,333)
(92,355)|–
–|
|Retained net (defcit)/funds for theyear|–
–|(2,605,352)
1,125,691|
|The aggregate of the assets, liabilities and funds was:|||
|Assets|687,327
317,033|25,514,751
27,550,402|
|Liabilities|(610,975)
(376,793)|(659,177)
(89,476)|
|**Funds/(defcit)**|**76,352**
**(59,760)**|**24,855,574**
**27,460,926**|
The parent charity’s results for the year are disclosed as follows:
|The parent charity’s results for the year are disclosed as follows:||
|---|---|
||**Academy**
**2023**
**£**
**2022**
**£**|
|Gross income|54,695,246
47,984,118|
|Retained net (deficit)/funds for theyear|(1,655,514)
813,140|
Annual Report and Accounts 2022|2023
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## Legal and administrative information
Professor Jeremy Watson CBE FREng (retired 20 September 2022)
Audit and Risk, Conduct, Membership, Nominations, and Remuneration.
## **Name and registered office**
Professor Stephen Young CBE FREng FRS (retired 20 September 2022)
All Trustee Board members and committee members give their time freely; no remuneration was paid in the year beyond the reimbursement of reasonable expenses. The majority of Academy activities are controlled by committees primarily composed of Fellows. The members of the Trustee Board during the year were:
The Royal Academy of Engineering is a registered charity No. 293074. It is a corporate body governed by Royal Charter. The registered office is Prince Philip House, 3 Carlton House Terrace, London SW1Y 5DG.
## **Chairs of Governance Committees**
## **Audit and Risk**
Chris Earnshaw OBE FREng
## **Bankers**
**Conduct**
Peter Guthrie OBE FREng
## **Officers**
## **Bankers**
**Finance; Investment**
**President**
National Westminster Bank plc Charing Cross, London Branch PO Box 113, Cavell House 2a Charing Cross Road London WC2H 0NN
David Eyton CBE FREng
Professor Sir Jim McDonald FREng FRSE
**Membership** Professor Nilay Shah OBE FREng
## **Vice-Presidents**
**Nominations; Remuneration** Professor Sir Jim McDonald FREng FRSE
Professor Peter Guthrie OBE FREng Vice-President for Committee Coordination
## **Solicitors**
Womble Bond Dickinson
4 More London Riverside London SE1 2AU
Catriona Schmolke FREng Vice-President for Fellowship Engagement
## **Chairs of Operating Committees**
## **Auditor**
## **Members of the Trustee Board at the date the report was approved:**
BDO LLP 55 Baker Street London W1U 7EU
## **Awards**
Professor Bashir Al-Hashimi CBE FREng
Professor Bashir Al-Hashimi CBE FREng
**Education and Skills**
## **Investment managers**
Phil Smith CBE FREng
Waverton Investment Management Limited 16 Babmaes Street London SW1Y 6AH
Jane Atkinson CBE FREng (appointed 20 September 2022) Sir Simon Bollom KBE CB FREng Chris Earnshaw OBE FREng David Eyton CBE FREng (appointed 20 September 2022) Dame Sue Gray DBE CB FREng (appointed 20 September 2022)
## **Engineering Policy Centre**
Professor Nick Jennings CB FREng FRS
## **Enterprise**
Dr John Lazar CBE FREng
## **Trustee Board members**
## **External Affairs**
Rachel Skinner CBE FREng
The Academy’s Trustee Board comprises 13 members elected by and from the Fellowship with the discretion to co-opt up to two additional members. Trustee Board members are the Trustees of the Academy as defined under its status as a registered charity. The Trustee Board meets at least six times a year and is responsible for the governance of the Academy. At these meetings, the Trustee Board will discuss issues of strategy and policy and also matters referred to it by the governance committees for Finance,
## **Diversity and Inclusion**
Dr Carolyn Griffiths FREng
Aleida Rios FREng
Professor Eileen Harkin-Jones OBE FREng
## **International**
Professor Dame Sarah Springman DBE FREng
Professor Ric Parker CBE FREng (appointed 20 September 2022 Professor Nilay Shah OBE FREng
## **Research**
Professor Maire O’Neill OBE FREng
## **Other Trustees who served during the period of the report:**
Dame Judith Hackitt DBE FREng (retired 20 September 2022) Professor John Loughhead CB OBE FREng (retired 20 September 2022)
## Partners, supporters and donors
## **Contributors to Academy programmes**
The Academy acknowledges the generosity of all its supporters who have enabled the continuing growth and development of its programmes and activities. In this financial year, support was received from the following individuals and organisations::
|**Company**|**Programme**|
|---|---|
|Amazon UK|Amazon Future Engineer bursary, This is Engineering|
|Amey|Graduate Engineering Engagement Programme|
|Arup|_Ingenia_|
|Atelier Ten|Graduate Engineering Engagement Programme|
|BAE Systems|T Levels in Engineering and Manufacturing|
|Boeing|Connecting STEM Teachers|
|bp|This is Engineering, Graduate Engineering Engagement Programme|
|chapmanbdsp|Graduate Engineering Engagement Programme|
|DeepMind|Enterprise Hub|
|Fugro|Graduate Engineering Engagement Programme|
|Johnson Matthey|Graduate Engineering Engagement Programme|
|Mathys and Squire|Enterprise Hub|
|MBDA|This is Engineering|
|Mott MacDonald|This is Engineering|
|National Grid (Grid for Good)|Graduate Engineering Engagement Programme|
|Rio Tinto|This is Engineering|
|Rolls-Royce|This is Engineering, Graduate Engineering Engagement Programme|
|Royal Air Force|This is Engineering, Connecting STEM Teachers|
|Shell UK|This is Engineering, Connecting STEM Teachers|
|Two Sigma Investments|Graduate Engineering Engagement Programme|
|Venterra|This is Engineering|
|WSP UK|Graduate Engineering Engagement Programme|
Annual Report and Accounts 2022|2023
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**PARTNERS, SUPPORTERS AND DONORS**
**PARTNERS, SUPPORTERS AND DONORS**
## **Major university partners**
Heriot-Watt University University of Southampton
## **University partners**
Bangor University
University of Cambridge Cranfield University King’s College London University of Edinburgh University of Oxford
## **Community partners**
Afrilabs AstraZeneca
## **In-kind supporters**
Facebook
Google JP Morgan Trustlaw
## **Charitable trusts and foundations**
Blavatnik Family Foundation
David Family Foundation ERA Foundation
Ezrah Charitable Trust Gatsby Charitable Foundation
The Happold Foundation Ignite Partnership International Institute for Environment & Development
Leverhulme Trust
The Panasonic Trust
Lloyd’s Register Foundation Royal Commission for the Exhibition of 1851 Worshipful Company of Engineers
## **Significant donors**
Malcolm Brinded CBE FREng Sir John Parker GBE FREng Ian Shott CBE FREng
With additional thanks to donors who wish to remain anonymous.
## **Major donors**
David Gammon HonFREng Sir Peter Gershon CBE FREng Dr Philip O’Donovan FREng Beacon Capital
With additional thanks to donors who wish to remain anonymous.
## **Bequests**
The late Dr Roger Browne OBE FREng The late Dr Philip Bulson CBE FREng The late Lady Audrey Crossland The late Dr Janet Wolf
## **All other donations including contributors who make regular**
## **donations to the Academy**
Kathleen Atkinson Peter Blair OBE FREng John Bolter FREng Sir Peter Bonfield CBE FREng Professor John Bourne FREng Sir Richard Brook OBE FREng The Baroness Brown of Cambridge DBE FREng FRS Peter Chamberlain FREng Dr Andrew Charles FREng Dr Nikolay Cherkasov Professor Jan Cilliers FREng Professor David Clarke FREng FRS Sir Anthony Cleaver HonFREng Allan Cook CBE FREng Edmund Crowdy VRD FREng Professor David Delpy CBE FREng FRS FMedSci Professor Yulong Ding FREng Nicholas Donofrio FREng John Durston FREng Peter East OBE FREng John Eldridge FREng John Evans OBE JP FREng Professor William Fairney FREng Professor Patrick Farrell FREng Dr John Ferrie CBE FREng Professor Peter Goodhew CBE FREng Professor Peter Grant OBE FREng FRSE Raymond Hall CBE FREng The late Sir David Harrison CBE FREng Richard Haryott FREng
## Charles Holliday FREng
Professor Kirill Horoshenkov FREng Dr Michael Howse CBE FREng Nigel Hughes FREng Thomas Alan Johnston FREng The late Noel Lakin FREng Geoffrey Lomer CBE FREng John Longden FREng Professor Kai Luo FREng Professor Stuart Lyon FREng Dr Asad Madni FREng Professor Geoffrey Maitland CBE FREng
The late Derek Mason, donations from friends and family in his memory Trevor Massey OBE FREng Professor Sir James McDonald FREng FRSE Helen McGahon Dr Robert McKinlay CBE FREng Sir Robin Nicholson FREng FRS Dr Ian Nussey OBE FREng The Reverend Patrick O’Ferrall OBE HonFREng Professor Arthur Olver FREng Professor Sir Keith O’Nions HonFREng FRS Mick Reeve FREng Aleida Rios FREng John Robinson CBE FREng Sir Ian Robinson FREng FRSE Stephen Robinson OBE FREng FRS Professor Elena Rodriguez-Falcon FREng Professor Ian Smith FREng Professor Dame Sarah Springman DBE FREng Air Marshal Sir Colin Terry KBE CB FREng Dr Simon Thomas FREng
Professor Laurence Williams OBE FREng FLSW Professor Lord Robert Winston HonFREng FMedSci Professor Robert Witty FREng Professor John Yates FREng Professor Stephen Young CBE FREng FRS
With additional thanks to donors who wish to remain anonymous.
## **Queen Elizabeth Prize for Engineering**
The Queen Elizabeth Prize for Engineering is run by a charitable company limited by guarantee and called The Queen Elizabeth Prize Foundation, which manages the prize and its funding.
The Queen Elizabeth Prize for Engineering was funded by generous support from the following corporate donors:
BAE Systems bp GSK Hitachi Jaguar Land Rover National Grid Shell UK Siemens UK Sony Tata Consultancy Services Tata Steel Europe Toshiba Nissan Motor Company
The 10[th] anniversary celebrations, including the Engineers gallery at the Science Museum, is funded by generous support from the following donors:
John Browne Charitable Trust Surgo Foundation US Siemens UK Dr Aihua Wang Dr Jianhua Zhao Professor Andrew Blakers
With additional thanks to donors who wish to remain anonymous.
Annual Report and Accounts 2022|2023
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@Technicians Make It Happen
**The Royal Academy of Engineering** is harnessing the power of engineering to build a sustainable society and an inclusive economy that works for everyone.
In collaboration with our Fellows and partners, we’re growing talent and developing skills for the future, driving innovation and building global partnerships, and influencing policy and engaging the public.
Together we’re working to tackle the greatest challenges of our age.
## **What we do**
## **TALENT & DIVERSITY**
**We’re growing talent** by training, supporting, mentoring and funding the most talented and creative researchers, innovators and leaders from across the engineering profession.
**We’re developing skills for the future** by identifying the challenges of an ever-changing world and developing the skills and approaches we need to build a resilient and diverse engineering profession.
## **INNOVATION**
**We’re driving innovation** by investing in some of the country’s most creative and exciting engineering ideas and businesses.
**We’re building global partnerships** that bring the world’s best engineers from industry, entrepreneurship and academia together to collaborate on creative innovations that address the greatest global challenges of our age.
## **POLICY & ENGAGEMENT**
**We’re influencing policy** through the National Engineering Policy Centre – providing independent expert support to policymakers on issues of importance.
**We’re engaging the public** by opening their eyes to the wonders of engineering and inspiring young people to become the next generation of engineers.
Royal Academy of Engineering Prince Philip House
> 3 Carlton House Terrace London SW1Y 5DG
Tel 020 7766 0600 www.raeng.org.uk @RAEngNews
Registered charity number 293074