Whitworth Scholarship's Fund
Trustee Board's Report and Annual Accounts For the Year Ended 31 December 2021
Registered Charity No: 313756
Whitworth Scholarship's Fund
Contents For the year ended 31 December 2021
| Page | |
|---|---|
| Legal and Administrative Information | 3 |
| Trustees' Annual Report including | 4 - 7 |
| Statement of Trustees' Responsibilities | |
| Independent Auditors' Report | 8 - 10 |
| Statement of Financial Activities | 11 |
| Balance Sheet | 12 |
| Statement of Cash Flows | 13 |
| Notes to the Financial Statements | 14 - 20 |
2
Whitworth Scholarship's Fund
Legal and Administrative Information For the year ended 31 December 2021
Name: Whitworth Scholarships Fund Charity Number: 313756 Trustee: The Institution of Mechanical Engineers 1 Birdcage Walk, Westminster London SW1H 9JJ Chief Executive Officer: Alice Bunn Administrator: IMechE Prizes & Awards ASK House Northgate Avenue Bury St Edmunds Suffolk IP32 6BB Bankers: CAF Bank Ltd PO Box 289 Kings Hill West Malling Kent ME19 4TA Auditor: BDO LLP 55 Baker Street, London W1U 7EU Investment Manager: Blackrock Investment Management (UK) Limited 33 King William Street London EC4R 9AS Governing Instruments: Deed of Trust between Sir Joseph Whitworth and the Secretary of State for Education dated 23 September 1868 Charity Commissioners for England and Wales Scheme dated 11 December 2001
3
Whitworth Scholarship's Fund
Trustee's Report For the year ended 31 December 2021
The Trustee presents its report along with the financial statements of the Fund for the year ended 31 December 2021. The financial statements have been prepared in accordance with the accounting policies set out below and comply with the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in 2019.
Governance and Management
The Whitworth Scholarship's Fund was established in 1868 under a deed of covenant and trust between Sir Joseph Whitworth, a leading manufacturer of machine tools, and the then President of the Committee of Council on Education. The Fund is now governed under the terms of a Scheme made by the Charity Commission for England and Wales dated 11 December 2001.
The objects of the Fund, as stated in the Scheme, are to promote education in all engineering disciplines with a preference for mechanical engineering through the award of:
-
Scholarships to suitably qualified applicants to enable them to study engineering, with a preference for mechanical engineering, at any establishment approved by the trustee; and
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Prizes for solutions to real problems encountered in the workplace by engineers following accredited programme of work-based training.
Objective and Activities
Under the terms of the Scheme dated 11 December 2001, the Institution of Mechanical Engineers (IMechE) succeeded the Secretary of State for Education and Skills as sole trustee of the Fund.
The IMechE administers the Fund assisted by the IMechE Whitworth Awards Panel, which advises the IMechE in making decisions on the awards. Membership of the Panel includes representatives from the Whitworth Society, UKRI, academia and the engineering professions. Panel members are not remunerated but may claim reasonable travel and subsistence expenses.
General costs of administering the Fund are borne by the IMechE but costs incurred in selection of scholars are reimbursed.
Value of Scholarships
The level of award is determined partly by the demand for scholarships and partly by the performance of the Fund's investment portfolios.
The Whitworth Scholarship award supporting Undergraduate/MSc Scholarship was valued at £9,000 p.a. full-time, £3,500 p.a. part-time. The Senior Scholarship supporting Postgraduate research was valued at £15,000 p.a.
The Whitworth Awards Panel in the first part of 2021 sought applications for the Awards, with 27 applications received for the Whitworth Scholarship Awards. 22 candidates were called for interview, which were held virtually, via Microsoft Teams and 12 awards were made (5 for full-time study and 7 for part-time study).
4
Whitworth Scholarship's Fund
Trustee's Report (continued) For the year ended 31 December 2021
Value of Scholarships (continued)
A total of 2 applications were received for the Whitworth Senior Scholarship Awards for Postgraduate engineering research, leading to a PhD or EngD. No candidates were called for a virtual interview.
14 award holders successfully completed their degree courses and 8 graduated with first-class honours, 6 with a distinction MSc (Hons). 2 Senior Scholarship Award holders successfully completed their research degree and were elected "Whitworth Senior Scholar".
The 37th and 38th Whitworth Awards Ceremony, celebrating the achievements of Award Holders and Scholars from 2020 and 2021, was held on Friday 18th March 2022. The Ceremony was officiated by Joanne Horton, Director of Membership - IMechE. Professor Karl Dearn, Chair of the Whitworth Awards Panel, introduced the Whitworth Scholarship Awards. Past President Terry Spall (2020 winners) and President Peter Flinn (2021 winners) presented the certificates and medals with Laura Gilbert, President of the Whitworth Society, who also addressed the meeting.
Achievements and Performance
During the period covered by this report £278,192 (2020: £229,838) was paid to scholarship students and for prize administration, including £190 (2020: £88) in bank charges and £4,120 (2020: £4,000) for audit fees. Income from the investment portfolios and bank deposits amounted to £208,025 (2020: £193,283) resulting in net expenditure before gains on investment assets of £70,167 (net expenditure 2020: £36,555). As a result of movement in the stock market the closing values of the Permanent Endowment Fund increased to £4,198,167 (2020: £3,853,353). The closing value of the Unrestricted Fund increased to £2,890,773 (2020: £2,709,875) due to the increase in net gains on investment assets.
Investment Policy
are held in the form of Common Investment Funds that are suitable for a Fund of this nature. The Permanent Endowment Fund represents the original donation made by Sir Joseph Whitworth to provide income to pay for scholarships. The Unrestricted Fund represents accumulations of unspent income that has accrued during the long history of the Trust; most of this income has been reinvested to generate an additional source of income to fund scholarships.
The Fund reviews the performance of the investments on a quarterly basis and aims to formally meet the investment manager at least once a year. The Trustee has established an investment policy which takes social, environmental and ethical considerations into account and includes the following principles:
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A diversity of investments will be held.
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Investment policy will be appropriate to the needs of the Fund.
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Appropriately authorised investment managers will be employed.
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Appropriately authorised nominees may be employed to hold individual stocks and shares.
5
Whitworth Scholarship's Fund
Trustee's Report (continued) For the year ended 31 December 2021
Risk Management
The IMechE has reviewed the major risks to which the Fund is exposed. The principal risks facing the Fund are those related to the income and finances of the Fund. Covid-19 and Brexit had some impact on the investment valuation volatility; the IMechE has taken steps as far as possible to mitigate exposure to those risks by keeping the Investment Policy under review, including the mix of investments held and monitoring expenditure.
Reserves policy
Unrestricted reserves at 31 December 2021 were £2,890,773 (2020: £2,709,875). IMechE has decided to set a target of utilising all the available income for scholarships provided candidates of sufficient merit can be found. The Trust Fund also has a permanent endowment fund; its year-end balance was £4,198,167 (2020: £3,853,353).
The Trustee has a policy which requires that the level of free reserves should reflect at least six months of charitable spend. The impact of Covid-19 has been taken into consideration and this policy is deemed appropriate for the reported financial period. Independently of the Covid-19 impact, a review is currently underway to consider how to reflect the impact of risks in the free reserves target in a more dynamic and responsive way. The presentation of a revised policy to the Trustee for consideration has been deferred to 2022.
Public Benefit
The IMechE confirms that they have referred to the guidance contained in the Charity general guidance on public benefit when reviewing the aims and objectives and in planning future activities and setting the grant making policy for the year.
Future developments
The Whitworth Awards Panel constantly reviews the scheme and at present have agreed not to make any changes for 2022.
Recruitment and appointment of the Trustees
The Trust Deed states that the Institution of Mechanical Engineers is the Trustee of the Scheme. The Institution of Mechanical Engineers is governed by a Trustee Board comprising of members of the Institution elected to office by Corporate and Associate Members, through an annual election process as detailed in the Royal Charter and By-laws of the Institution.
6
Whitworth Scholarship's Fund
Statement of Trustee's Responsibilities For the year ended 31 December 2021
Statement of Trustee's responsibilities in respect of the Trustee's annual report and the financial statements
The Trustee is responsible for preparing the Trustee's Annual Report and the financial statements in accordance with applicable law and regulations.
Charity law requires the Trustee 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 Trustee 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 charity and of the incoming resources and application of resources, including the income and expenditure, of the Fund for that period.
In preparing these financial statements, generally accepted accounting practice entails that the Trustee:
select suitable accounting policies and then apply them consistently;
make judgements and 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; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Fund will continue in business.
The Trustee is required to act in accordance with the trust deed of the Fund, within the framework of trust law. The Trustee is responsible for keeping adequate accounting records that are sufficient to show and explain the 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.
Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the website is the responsibility of the Trustee. The Trustee's responsibility also extends to the ongoing integrity of the financial statements contained therein.
The Trustee's Report was approved by the Trustee Board of the Institution of Mechanical Engineers on 4 May 2021 and was signed on its behalf by:
Trustee Philip Peel
Trustee Peter Flinn
7
Independent auditors' report to the Trustees of Whitworth Scholarship's Fund For the year ended 31 December 2021
Opinion on the financial statements
In our opinion, the financial statements:
-
give a true and fair view of the state of the affairs as at 31 December 2021 and of its incoming resources and application of resources for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Charities Act 2011.
We have audited the financial statements of Whitworth Scholarship's Fund for the year ended 31 December 2021 which comprise the statement of financial activities for the year ended 31 December 2021, the balance sheet, the statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable ilities 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 Charity in accordance with the ethical requirements relevant to our audit of the responsibilities in accordance with these requirements.
Conclusions related to going concern
In auditing the financial statements, we have concluded that the 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 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 Trustee with respect to going concern are described in the relevant sections of this report.
Other information
The Trustee is responsible for the other information. The other information comprises the information included in the Trustee Report other than the financial statements and our report thereon. The other information comprises: Report. 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 or a material misstatement of the other information. 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.
8
Independent auditors' report to the Trustees of Whitworth Scholarship's Fund (continued) For the year ended 31 December 2021
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 Act 2011 requires us to report to you if, in our opinion;
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the information contained in the financial statements is inconsistent in any material respect with the Trust
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adequate accounting records have not been kept; or
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the 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.
Responsibilities of the Trustee
As explained more fully in the Statement of Responsibilities, the Trustee is 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 Trustee determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Trustee is responsible for assessing the 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 Trustee either intends to liquidate the Charity or to cease operations, or have no realistic alternative but to do so.
responsibilities for the audit of the financial statements
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.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are cludes 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.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance 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:
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Enquiry with management, staff and advisors in tax and compliance functions and Those Charged with Governance regarding known or suspected instances of non-compliance with laws and regulation and fraud;
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Enquiry of management and Those Charged with Governance around actual and potential litigation and claims;
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Reviewing minutes of meetings of Those Charged with Governance;
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Assessing the design and operating effectiveness of controls and procedures relevant to the preparation of the financial statements and the detection and prevention of irregularities and fraud;
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· Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
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Identifying and testing the appropriateness of journal entries and other adjustments, with particular focus on unusual account combinations and postings by unexpected users or senior management;
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· Challenging the assumptions and judgements made by management for key estimates, in particular the valuation of investments; and
9
Independent auditors’ report to the Trustees of Whitworth Scholarship’s Fund (continued) For the year ended 31 December 2021
- Incorporating unpredictability into our testing approach through amending the nature and extent of audit procedures.
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 noncompliance 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.
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: https://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 4 May 2022 04 May 2022
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).
Whitworth Scholarship's Fund
Statement of Financial Activities For the year ended 31 December 2021
| Notes Income and endowments from: Investments Interest & dividends 1 Bank interest & other income Total Expenditure on: Charitable activities Scholarships 13 Total Net (expenditure) before gains/(losses) on investment assets Net gains/(losses) on investment assets 5 Net (expenditure)/income Net movement in funds Reconciliation of funds Total funds brought forward 9 Total funds carried forward 9 |
Unrestricted Funds £ 208,015 10 208,025 (278,192) (278,192) (70,167) 251,065 180,898 180,898 2,709,875 2,890,773 |
Endowment Funds £ - - - - - - 344,814 344,814 344,814 3,853,353 4,198,167 |
2021 Total £ 208,015 10 208,025 (278,192) (278,192) (70,167) 595,879 525,712 525,712 6,563,228 7,088,940 |
Restated 2020 Total £ 193,186 97 |
|---|---|---|---|---|
| 193,283 | ||||
| (229,838) | ||||
| (229,838) | ||||
| (36,555) (402,545) (439,100) |
||||
| (439,100) 7,002,328 6,563,228 |
The Fund has no recognised gains or losses for the year other than as detailed above.
The net movements in the funds for the year arise from the continuing activities.
The notes on pages 15-20 form part of these accounts.
Summary of Financial Activities for the year ended 31 December 2020
| Summary of Financial Activities for the year ended 31 December 2020 |
|||
|---|---|---|---|
| Notes Total income Total expenditure 13 Net gains on investment assets 5 Net movement in funds: Total funds brought forward 9 Total funds carried forward: 9 |
Restated 2020 Unrestricted Funds £ 193,283 (229,838) (169,108) (205,663) 2,915,538 2,709,875 |
2020 Endowment Funds £ - - (233,437) (233,437) 4,086,790 3,853,353 |
Restated 2020 Total £ 193,283 (229,838) (402,545) |
| (439,100) 7,002,328 6,563,228 |
11
Whitworth Scholarship's Fund
Balance Sheet
For the year ended 31 December 2021
| Note Fixed assets: Investments 5 Current assets: Debtors 6 Cash at bank and in hand Total current assets Liabilities: Creditors: Amounts falling due within one year 7 Net current assets Total net assets The funds of the charity: Endowment funds 8 Unrestricted funds 8 Total charity funds |
2021 £ 7,140,453 55,731 83,065 138,796 (190,309) (51,513) 7,088,940 4,198,167 2,890,773 7,088,940 |
Restated 2020 £ 6,544,574 |
|---|---|---|
| 55,732 120,422 |
||
| 176,154 | ||
| (157,500) | ||
| 18,654 | ||
| 6,563,228 | ||
| 3,853,353 2,709,875 6,563,228 |
The financial statements on pages 15-20 were approved by the Trustee Board of the Institution of Mechanical Engineers on 4 May 2022 and were signed on its behalf by:
Trustee Philip Peel
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Trustee
Peter Flinn
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Charity Registration Number: 313756
12
Whitworth Scholarship's Fund
Statement of Cash Flows For the year ended 31 December 2021
| Cash flows from operating activities: Net cash used in operating activities Cash flows from investing activities Dividends, interest from investments Net cash provided by investing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalent at the beginning of reporting period Cash and cash equivalent at end of reporting period Reconciliation of net income to net cash flow from operating activities Net income as per the statement Adjustments for: Dividends, interest from investments (Gains)/losses on investments Decrease/(increase) in debtors Increase in creditors Net cash used in operating activities Balance Analysis of Net Funds 01.01.2021 £ Cash awaiting investment - Cash at bank and in hand 120,422 |
2021 £ (245,382) 208,025 208,025 (37,357) 120,422 83,065 2021 £ 525,712 (208,025) (595,879) 1 32,809 (245,382) Cash flows £ - (37,357) |
2020 £ (250,620) |
|---|---|---|
| 193,283 193,283 |
||
| (57,337) 177,759 |
||
| 120,422 Restated 2020 £ (439,100) |
||
| (193,283) 402,545 (42,282) 21,500 |
||
| (250,620) | ||
| Balance 31.12.2021 £ - 83,065 |
13
Whitworth Scholarship's Fund
Notes to the Financial Statements For the year ended 31 December 2021
Accounting Policies
The Fund is registered with the Charity Commission (registered number: 313756), domiciled in the UK and is a public benefit entity. The address of the registered office is 1 Birdcage Walk, London, SW1H 9JJ. The following accounting policies have been applied consistently in dealing with items which are considered financial statements.
a) Basis of preparation
The financial statements have been prepared to give a true and fair view and have departed from the charities (Accounts and Reports) Regulation 2008 only to the extend required to give a true and fair view. The Financial Statements have been prepared in accordance with the Charities SORP. FRS102 The Financial Reporting standard applicable in the UK and Republic ofIreland, and applicable UK charity law.
This departure has involved following Accounting and Reporting by Charities: Statement of recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) effective 1 January 2019 rather than the Accounting and Reporting by Charities: Statement of recommended Practice effective from 1 April 2005 which has since been withdrawn.
The financial statements have been prepared on the historical cost basis of accounting, modified to incorporate the revaluation of investments. The financial statements are prepared in sterling, which is functional currency of the Fund. Monetary amounts in these financial statements are rounded to the nearest pound.
b) Going Concern
The financial statements have been prepared on a going concern basis. The financial statements do not include any adjustments that would result from the charity not being able to continue for the next 12 months. The Fund has a strong balance sheet and has access to £6.5m of available investments which could be utilised to cover expenditure if required. Therefore, there are no material uncertainties about the Fund's ability continue as a going concern.
c) Income
Investment income is earned from holding assets for investment purposes and includes dividends and bank interest that are presented gross on a receivable basis.
d) Expenditure
Scholarship awards are recognized on an academic year basis with any sums due at the year-end in respect of the spring and summer terms being accrued. General expenditure is recognised in the period to which it relates.
Members of the Whitworth Award Panel, who are responsible for selecting Scholars, provide their time free of charge.
e) Investments
Investments consist of common investment funds administered by an investment manager and are valued at the year end at the bid price. It is the Fund's policy to keep valuations up to date such that when investments are sold there is no gain or loss arising relating to previous years. As a result the Statement of Financial Activities does not distinguish between the valuation adjustments relating to sales and those relating to continued holdings as they are together treated as changes in the value of the investment portfolio throughout the year.
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Whitworth Scholarship's Fund
Notes to the Financial Statements (continued) For the year ended 31 December 2021
Accounting Policies (continued)
e) Investments (continued)
All investment management charges are included in the bid price of units. We are unable to identify investment manager fees separately and so these fees are not disclosed in the Statement of Financial Activities.
f) Grant commitments
Scholarships are awarded for the period of study, usually three years, with payments made on a termly basis.
Expenditure is not accrued beyond each academic year as future payments are subject to a performance review by the Whitworth Panel, which therefore has discretion to terminate the funding agreement in case the performance related conditions are not met.
Multi-year grants that do not meet the recognition criteria are disclosed as contingent liabilities in the notes to the financial statements.
g) Financial assets
The Fund has elected to apply the provisions of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instruments Issues" of FRS102 to all its financial instruments.
Financial assets are recognised in the Fund's statement of financial position when the Fund becomes party to the contractual provisions of the instrument.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
h) Critical accounting estimates and judgements
In the application of the accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. The estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
i) Fund Accounting
Endowment Funds are permanently endowed assets, which provide unrestricted income to the Fund. Unrestricted Funds are applied according to the scheme governing the Fund.
15
Whitworth Scholarship's Fund
Notes to the Financial Statements (continued) For the year ended 31 December 2021
- 1 Investment Income
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||||||||
|---|---|---|---|---|---|---|
|2021|2020|
|£|£|
|Dividends|receivable|from|investment|funds|208,015|193,186|
----- End of picture text -----
All investment income arises from the investments detailed in note 5 below.
2 Taxation
Whitworth Scholarship's Fund is considered to pass the tests set out in paragraph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable trust for UK Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable trust for UK income tax purposes. Accordingly the Fund is potentially exempt from taxation in respect of income or capital gains received within categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
3 Trustee's Remuneration and Expenses
The Trustee neither received nor waived any remuneration or expenses during the period (2020 - Nil).
4 Employees
There were no employees in the year ended 31 December 2021 (2020 - Nil).
5 Investments
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|||||||||||
|---|---|---|---|---|---|---|---|---|---|
|Market|Market|
|Value|Cost|Value|Cost|
|31/12/2021|31/12/2021|31/12/2020|31/12/2020|
|£|£|£|£|
|Permanent|Endowment|Fund|
|BLK|Charities|UK|Bond Fund A|Inc|384,337|42,258|412,163|42,258|
|BLK|Charities|UK|Equity|Fund A|Inc|3,813,830|620,455|3,441,190|620,455|
|Fund|Total|4,198,167|662,713|3,853,353|662,713|
|Unrestricted|Fund|Holding|
|BLK|Charities|UK|Bond Fund A|Inc|214,085|127,874|229,585|127,874|
|BLK|Charities|UK|Equity|Fund A|Inc|2,728,202|691,556|2,461,636|691,556|
|Fund|Total|2,942,287|819,430|2,691,221|819,430|
|Total|Investments|7,140,454|1,482,143|6,544,574|1,482,143|
----- End of picture text -----
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Whitworth Scholarship's Fund
Notes to the Financial Statements (continued) For the year ended 31 December 2021
- 5 Investments - continued
| Movement of investments Market value at 1 January Net investment gains Investment manager fees are included within net investment gains and cannot be Market value at 31 December Historic cost at 31 December Unrealised investment gains at 31 December 6 Debtors Dividends receivable 7 Creditors Grants payable Other creditors Total creditors |
2021 £ 6,544,574 595,879 separately identified 7,140,453 (1,482,143) 5,658,310 2021 £ 55,731 2021 £ 169,000 21,309 190,309 |
2020 £ 6,947,120 (402,546) |
|---|---|---|
| 6,544,574 (1,482,143) |
||
| 5,062,431 | ||
| 2020 £ 55,732 |
||
| Restated 2020 £ 157,500 - |
||
| 157,500 |
8 Statement of Funds
| Permanent Endowment Fund Unrestricted Fund Fund Total Permanent Endowment Fund Unrestricted Fund Fund Total |
Restated Balance at 01/01/2021-- £ 3,853,353 2,709,875 6,563,228 Restated 01/01/2020-- £ 4,086,790 2,915,538 7,002,328 |
Movement Net Gain/(Loss) on (expenditure)/ investment income assets £ £ - 344,814 (70,167) 251,065 (70,167) 595,879 £ £ (233,437) (36,555) (169,108) (36,555) (402,545) |
-- Balance at 31/12/2021 £ 4,198,167 2,890,773 |
|---|---|---|---|
| 7,088,940 | |||
| Restated 31/12/2020-- £ 3,853,353 2,709,875 6,563,228 |
The Permanent Endowment Fund provides the permanent capital base in the form of investments.
The Unrestricted Fund represents accumulated income most of which has been invested. The income from these investments and those held in the Permanent Endowment Fund is used to pay the scholarship awards.
17
Whitworth Scholarship's Fund
Notes to the Financial Statements (continued) For the year ended 31 December 2021
9 Analysis of net assets between funds
| Investments Net current assets Total net assets Investments Net current assets Total net assets |
Unrestricted Fund £ 2,942,286 (51,513) 2,890,773 Restated £ 2,691,221 18,654 2,709,875 |
Permanent Endowment Fund £ 4,198,167 - 4,198,167 £ 3,853,353 - 3,853,353 |
Total 2021 £ 7,140,453 (51,513) 7,088,940 Restated 2020 £ 6,544,574 18,654 6,563,228 |
Restated Total 2020 £ 6,544,574 18,654 6,563,228 Restated 2019 £ 6,947,120 55,208 7,002,328 |
|---|---|---|---|---|
10 Ultimate parent
Control of the charity rests with the Institution of Mechanical Engineers (Charity reg.N 206882, domiciled in the UK and is a public benefit entity, registered at 1 Birdcage Walk, London, SW1H 9JJ) as sole Trustee under the terms of a Scheme made by the Charity. The Institution of Mechanical Engineers is an independent professional association, and learned society, that represents mechanical engineers and the engineering profession.
11 Grant commitments
These sums have been provisionally approved as grants to be made to current scholars for completion of their studies. Because the Trustee has further actions to take on them before releasing for payment, they have not been recognised on the basis that it would be immaterial.
| Scholarships due for payment within one year Scholarships due for payment after one year Total scholarship commitments |
2021 £ 68,667 382,583 451,250 |
Restated 2020 £ 61,442 386,750 448,192 |
|---|---|---|
The 2020 disclosure has been restated to reflect the grant commitment for completion of studies. Previously, a twoterm commitment was reported. The impact of the restatement is an increase to disclosed grant commitments of £290,692. Further details are provided in Note 15.
12 Related parties
The Institution of Mechanical Engineers administers the Prizes for Whitworth Scholarships Trust Fund. It incurs costs relating to venue hire, speakers and catering which are recharged to the Trust Fund. The amount recharged during the year ended 31 December 2021 was £0 (2020: £0 and the amount due to theInstitution at the year end was £0 (2020: £0))
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Whitworth Scholarship's Fund
Notes to the Financial Statements (continued) For the year ended 31 December 2021
13 Expenditure on charitable activities
| Scholarships Prizes administration Total |
2021 £ 262,132 16,060 278,192 |
Restated 2020 £ 229,750 88 229,838 |
|---|---|---|
Scholarships in both 2020 and 2021 were awarded to the individuals, studying engineering either part-time or fulltime, and intended for their educational needs.
The total amounts incurred in respect of audit fees in 2021 were £4,120 (2020: £4,000).
14 Financial instruments
| 2021 | 2020 | ||
|---|---|---|---|
| £ | £ | ||
| Financial | assets measured at amortised cost | 138,796 | 176,154 |
| Financial | liabilities measured at amortised cost | 190,309 | 157,500 |
| Financial | assets measured at fair value | 7,140,453 | 6,544,574 |
15 Prior period adjustment
Scholarships are awarded for a period of study, usually three years, with a performance review required at the end of each academic year. In prior periods, we have not accrued for scholarships awarded for the academic year not yet paid at year-end. We have restated creditor and fund balances accordingly.
Restatement of creditors
| Restatement of creditors | ||
|---|---|---|
| 2020 | 2019 | |
| £ | £ | |
| Grants payable within one year as previously reported | - | - |
| Grants payable within one year as restated | 157,500 | 136,000 |
| Restatement of funds | Movement | Movement | |||
|---|---|---|---|---|---|
| Net | Gain/(Loss) on | ||||
| Balance at | (expenditure) | investment | Balance at | ||
| 01/01/2020 | /income | assets | 31/12/2020 | ||
| £ | £ | £ | £ | ||
| Unrestricted fund as previously reported | 3,051,538 | (15,055) | (169,108) | 2,867,375 | |
| Unrestricted fund as restated | 2,915,538 | (36,555) | (169,108) | 2,709,875 | |
| Restatement of net assets between funds | Unrestricted | Unrestricted | |||
| Fund | Fund | ||||
| 2020 | 2019 | ||||
| £ | £ | ||||
| Net current assets as previously reported | 176,154 | 191,208 | |||
| Net current assets as restated | 18,654 | 55,208 |
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Whitworth Scholarship's Fund
Notes to the Financial Statements (continued) For the year ended 31 December 2021
15 Prior period adjustment (continued)
Scholarship commitments were previously reported for two terms only. We have established that a commitment exists for the full duration of study at the time of the award. As such, prior period grant commitment balances have been restated.
| Restatement of grant commitments Scholarships due for payment within one year Scholarships due for payment after one year Total scholarship commitments |
Previously reported 2020 £ 157,500 - 157,500 |
Restated 2020 £ 61,442 386,750 448,192 |
|---|---|---|
20