2022-12-31-accounts

Whitworth Scholarship's Fund Trustee Board's Report and Annual Accounts For the Year Ended 31 December 2022 Reglstered Charlty No.. 313756

Whitworth Scholarship's Fund Contents Forthe year ended 31 December 2022 Page Legal and Administrative Information Trustees. Annual Report induding Statement ol Trustees. Responsibilities Independent Auditors, Report 8-10 Statement of Financial Activities Balance Sheet 12 statement of Cash Flows 13 Notes to the Financial Statements 14-19

Whitworth Scholarship's Fund Legal and Administrative Information For the year ended 31 December 2022 Nam•: Vvhitworth Scholarships Fund Charity Number.. 313756 Trustee.. The Institution of Mech8nical Engineers 1 Birdcage Walk, Westminster London SW1 H 9JJ Chlef Executlve Offlcer: All￿ Bunn Administrator= IMechE Prizes & Awards ASK House Northgate Avenue Bury St Edrnunds Suffolk IP32 688 Bankars: CAF Bank Ltd PO Box289 Kings Hill West Malling Kent ME194TA Auditor: BDO LLP 55 Baker Street, London W1U7EU Investment Manager= B18ckrock Investrnent Management IUKI Lirnited 33 King William Street London EC4R 9AS Governing Instruments.. Deed ofTtust belween SirJ05eph Whitworth and the Secretary of State for Education dated 23 September 1868 Charity Comfflissioners for England and W81es Scheme dated 11 December 2001

Whitworth Scholarship's Fund Trustee's Report Fortheyear ended 31 December 2022 TheTru$tee presents its report along with the financial statements ofthe 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 ISORPI A￿o￿ntIng and Reporting by Charities Issued in 2019. Govemance and Management The Whitworth Scholarship's Fund was established in 1868 under a deed of covenant and trust between Sir Joseph Whilworth. a leading manufacturer of ma¢hine tools. and the then President of the Committee of Council on Education. The Fund is now governed under the terms of a Scheme made bythe Charity Commission for England and Wales dated 11 Decernber 2001. The objects ofthe Fund, as stated in the Scherne, ale to protllote 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 preferen￿ for mechanical engineering, at any establishment approved by the trustee". and Prizes for solutions to real problems encountered in the workplace by engineers followng acuedited programme of work-based training. Objective and Activities Under the terms of the Scheme dated 11 December 2001, the Institution of Mechanic81 Engineers IIMechEI SLJcceeded the Secretary of State for Education and Skills 8S 501e trustee of the Fund. The IMechE administers the Fund assisted by the IMechE whi￿Orth Awards Panel. which advises IhelMechE in making decisions on the awaids. Membership of the Panel includes iepresentatives from the Whitworth Society. UKRI. academia and the engineering professions. Panel mernbers are not remunerated but may claim reasonable travel 8nd subsistence expenses. General costs of administering the Fund are borne by the IMechE but costs incurred in selection of scholars are reimbursed out of votes of Parfiament. Value of Seholarships The awards are flexible to recognise the many study modes. The Whilworth Scholarship award supporting Undergraduatelmsc students was valued at £9,000 p.a. full-time and typically £3,000 p.a. part-tirne. The Senior Scholarship supporting Postgraduate research was valued at £15,000 p.a. The Whitr4orth Awards Panel, in the first part 012022. sought applications for the Awards, with 24 applications received foi the Vvhitworth Scholarship Awards. Sixteen candidat85 were called for interviews at 1 Birdcage Walk, of which 14 awards were made13 full time and 11 part-time study).

Whitworth Scholarship's Fund Trustee's Report (continued) For theyear ended 31 December 2022 Value of Scholarships Icontsnuedl A total ol four applications were received for the Whitworth Senior Scholarship Awards for Postgraduate engineering research. leading to a PhD or EngD and four c8ndid8tes were c8lled for interview. Two Whitworth Senior Scholarship Awards were awarded lor 2022. supporting PhD research in 1 PhD in Investigation of non*quilibrium phenomena during giant planet entry at the University of Queensland. Australia and 2 in Agri-Food Robotics at the University of Cambridge. Fifteen award holders cornpleled their degree courses and were elected Whitworth Scholars Six graduated with Iirst-class honours, and nine with an Msc with Distinction. Afurther ten were elected to Whitworth Scholar with the option of deferring election to undertake a master's degree. The 39th Whitworth Awaids Ceremony, tslebrab.ng the achievements of Award Holders and Scholars from 2022, was held on Friday. 9th March 2022. The Ceremony was officiated by Dr Alice Bunn OBE. Chief Execub"ve- IMechE. Professor Kail Dearn. Wh Sch. Vvh Ssch Chaii ofthe Whitworth Aw3rds Panel. intrOdU￿d the Whitworth Scholarship Awards. President Philip Peel presented the ￿rtifiCateS and medals with Chris Sidney Wh Sch. President ol the Vvhitworth Society, who also addressed the meeting. Achlevements and Performance During the period wvered by this report £270,74512021. £278.1921 was Paid to scholarship students and administration, and 2245 12021.. £1901 in bank charges. Income from the investment portfolios and bank deposits amounted to £236.729 12021 £208,025) resulting in net expenditure before gains on investment assets of £33.771 Inel expenditure 2021.. £70.1671. As a result ol movement in the Stock Market the closing values of the Pertn3nent EndowThent Fund decreased to £3,985,97412021." £4.198.16718nd the closing value ol the Unrestricted Fund decreased to £2,717,722 12021.. £2,890,773) as a result of a decrease in the net gains on investsllent 85sets. Investment Pollcy All the Fund's income is generated from Investments and bank deposits. The investments olthe Fund are held in the form of Common Investment Funds that are suitable for a Fund of this nature. The Perrnanent Endowrnent Fund represents the original donation tnade by Sil Joseph Whitworth to provid8 Income to pay for scholarships. The Unrestricted Fund represents accumulations of unspent income that has accrued during the long history ol the Trust", most of this income has been reinvested to generate an addib.onal Sour￿ of income to fund scholarships. The Fund reviews the performan￿ of the investrnents 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.. 1. A diversity of investments will be held. 2. Investment policy will be appropriate to the needs of the Fund. 3. Appropriately authorised investment managers will be employed. 4. Appropriately authoii5ed norninees may be employed to hold individual stocks and 5hare&

Whitworth Scholarship's Fund Trustee's Report (continued) For theyear ended 31 December 2022 Rlsk Management The IMechE has ieviewed the rnajor risks to which the FLJnd is exposed. The principal risks facing th Fund are those related to the income and finances of the Fund. Covid-19 and Brexit had sorne impaclon the investment valuation volatility," the IMechE has taken steps a5 far as possible to Tnitigate exposure to those risks by keeping the Investment Policy under review. including the rnix of investrnents held and monitoring expendituie. Reserves policy Uniestricted reserves at 31 Decernber 2022 were £2,717.722 12021 £2,890.7731. IMechE h8s decided to set a target of utilising all the available Income lor scholarships provided candidates of sufficient merit be found. The Trust Fund also has a permanent endowment fund.. its year end balall￿ was £3,985.974 12021. £4,198,167). The Trustee has a policy which requires that the level of free reserves should reflect at least six rnonths of charitable spend. This policy is deemend appropriate for the rep)rted financial period. Publi¢ Benefit The IMechE confirms that they have referred to the guidanTr contained in the Charrty Cornmission's general guidanceon public benefit when reviewing the Fund's aims and objectives and in planning future activities 8nd setting the grant making poliw for the ye81. Future developments The Whitworth Awards Panel constantly reviews the scheme and at present have agreed not to make any change5 for 2023. Recrultment and appolntment 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 Assoaate Members, through an annual elects.on process as detailed in the Royal Chart81 and By-laws of the Institution.

Whitworth Scholarship's Fund statement of Trustee's Responsibilities Forthe year ended 31 December 2022 Statement of Trustee's responslbllltles In respect of the Trustee's annual report anil the flnanclal ststements The Trustee is responsible for preparing the Trustee's Annual Report and the finanrial statements in accordance with applicable law and regulations. Charity law requires the Trustee to prepare fin8nci8151alements foi each financial year in a¢¢ordan¢e with United Kingdom Generally Accepted Accounting Practi￿ Iunited Kingdom Accounting Standards and applicable lawl. Under charity law the Trustee must not approve the financial statements unless they are satisfied thatthey give a true and fair view of the state of affairs of the charity and olthe incoming resourcesand application of resources. including the income and expenditure. of the Fund for that period. In preparing these financial statements, generally accepted accounting practiTr ￿tailS that the Trustee.. select suitable accounting policies and then apply them consistently., make Judgements and estim8te5 th8t are reasonable and piudent, state whether appli￿ble UK Accounting Standards have been followed. subject to any material departures disdosed and explained in the financial statements". and prepare the financial ststernents on the going conoein b3s15 unless il is in8ppropri8le to presume that the Fund will conts.nue in business. The Trustee is required to act in accordance with the trust deed of the Fund. within the framework ol trust law. The Tiustee is iespon5ible for keeping adequate accounting record5 that are sufficient to show and explain the charity's transactionsand disclose with reasonable accuracy at any timethe financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. Theyare also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevents.on and detection of fraud and other irregularities. Financial statements are published on the charity's website in accordance with legislation in the United Kingdom governing th8 preparation and dissemination of financial staternents, which rnay vary from legislation in otherjurisdictions. The rnaintenance and integrity of the charity's website is the responsibility of the Trustee. The TIu5tee's iespon5ibility also extends to the ongoing integrity of the financial statetnents contained therein. The Trustee's Report was approved by the Trustee Board of the Institution of Mechanical Engineers on 26 April 2023 and w8s signed on ils beha￿ by.. Trustee Philip Peel Tru5te8 Clive Hlcknian

Whitworth Scholarship's Fund Independent Auditor's Report to the Trustees of Whitworth Scholarship's Fund For the year ended 31 December 2022 Oplnlon on the financlal statements In our opinion. the financi815t8ternents". give 8 tiue and f8irview ofthe state ofthe Ch3rty's 8ff3irs 85 at 31 December 2022 and of the Ch3rity'5 incorning resources and applicats'on ol resources for the year then ended.. have been properly prepared in accordan￿ with United ￿ngdoM Generally Accepted Accounting Practice,. and have been prepared In accordance wrth the requirement5 of the Charities Act 2011. We have audited the financial statements of Whitworth Scho18rship's Fund I'the Charity I for the year ended 31 December 2022 which comprise the Statement of Financial Adivib"es. the Balance Sheet. the Statementof Cash Flows, and notes to the financial staternents. induding 8 summary ol significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financi81 Reporting Standard 102 The Finanoal Reporting Standard applicable in the UK ènd Republic of Irelènd Iunited Kingdom Generally Accepted Accounting Pradi￿1. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) IISAS IUKII and applicable law. Our iesponsibilities undei those stand8rds 8re fvrther described in the Auditor's responsibilities forthe audit olthe financial statements section of our ￿pOrt. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We remain independent ol the Charity in accordanTr with the ethical requirements relevant to our audit ol the financial statements In the UK. including the FRC'S Ethical Standard, and we have fvlfilled our other ethitrAI responsibilities in accordance wth these requirements. Conclusions related to going concem In auditing the financial staternents. we have concluded that the Ttustees. use of the going concern basis of accounting in the preparation ol 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 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 ol this report. other inforniation The Trustees are responsibleforthe otherinformth"on. The other inlomiation comprises the information included in the Trustee's 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 other4Mse explicitly stated in our ieport. we do not express any form of assurance Conclusion thereon. Our responsibility is to read the other information and. in doing so, consider thether 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 inconsistenaes or apparent material misstatements, we are required to determine whether there is a m8terial mi5Statement In the fin8nc181 st8tement5 thern5elves. If. based on the work we have perfoitned, 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 whlch we are requlred to report by exceptlon We have nothing to report in respect of the following matters in rdation to whiGh the Charities IAccounts and Reports) Regulations 2008 requires us to report to you il, in our opinion., the inlonnation given in the Trustees, Report for the financial year for whid) the financial statements are prepared is inconsistent in any rnateiial respect with the financial statements." or adequate accounting records have not been kept or the financial 5tatement5 are not in agreetnent with the accounting records and returns, or we have not re￿iVed all the information and explanations we require for our audit.

Whitworth Scholarship's Fund Independent Auditor's Report to the Trustees of Whitworth Scholarship's Fund Icontinued) For the year ended 31 December 2022 Responsibilities of Trustees As explained more fully in the Statement of Trustee's responsibilities. 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 Intemal 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 preparing the fin8ncial statements. the Trustees are responsible for assessing the Charty's ability to ¢￿tinUe as a going concem. disdosing. as applicable. matters related to going Corn￿[n and using the going concern basis of accounting unkss the Tiustees either intend to liquidate the Charity or to ￿se operations, or h8ve no realistic alternative but to do so. Auditor's responsibilities for the audot of the financlal statements We have been 8PPOlnted 8$ auditor under section 144 of the Charities Aot 2011 and report in accordance wth the Acts and ￿levant regulations made or having effect thereunder. Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from materi81 misstatement. thether 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 accordan￿ with ISAS IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material Il, 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 wa8 capable of detecting irregularities, including fraud Irregularities, induding fr8ud. are instances of non-cornplian￿ with laws and regulations. We design prO￿dureS in line with our responsibilities, outlined above, to detect Material misstatements in ￿Spect ol irregularities, including fraud. The extent to which our prO￿dureS are capable of detecting Irr￿Ul8￿tIe$, including fraud is detailed below". Non-complian￿ with laws and regulations Based on.. Our understanding of the Chaity 8nd the sector in which it oper3t85", Discussion with rnanagemenl and those charged with governance., Obtaining and understanding of the ch81ity'5 policie5 and procedur85 regarding cornpliance wth18WS and reQU￿tiOnS The Charity is also subject to laws and regulations where the consequence ol non-compliance COU￿ have a material effect on the amount or disclosures In the financial statements, for example through the Imposition ol fines or litigations. We identified such laws and regulations to be the Charities Act in the UK, UK GAAP and UK tax18gislation. Our prO￿dureS In respect ol the above Included. Review ol minutes ol meeting of those charged with governance for any InStan￿S ol non-compliance wth laws and iegulation5, Review of correspondence wrth regulatory and tsx authorities lor any instsnces of nor)-compliance th laws and regulations, Review of financial statement disdosures and agreeing to supporting dcumentation., Fraud We assessed the susceptibility of the financi81 statements to material rnisstatement, including fraud. Our risk assessment prO￿duleS Included". Enquiry ￿rith management and those charged wth governance regarding any known or suspected instanTrs of fraud". Obtaining an understanding of the Charity's poliues and prctedures relating to.. Detecting and responding to the iisks of fraud, and Internal controls established to mitigate risks related to fraud.

Whitworth Scholarship's Fund Independent Auditor's Report to the Trustees of Whitworth Scholarship's Fund Icontinued) For the year ended 31 December 2022 Review of minLrtes ol meeting ol those charged wth governance for any known or suspected instanTrs of fraud". Discussion amongst the engagement team as to how and where fraud might wcur in the financial staternents". Performing analytical procedures to identify any unusual or unexpected relationships that may inditrate risks of material misstaternent due to fraud". Based on our iisk assessment, we considered the areas most susTrptible to fiaud to be through management override ol controls and improper revenue reccyjnition. Our prO￿dureS in respect of the above included. Testing a sample of journal entries throughout the year. ¥vhich met a defined risk criteria, by agreeing to supporting documentation., Assessing 51gnificant estimates m8de by m8n8gement for bias. incjuding the v8lu8b.on of investments. Incorporating unpredictability into our tesb.ng approach through amending the nature and extent of audit prC￿edures', Reviewing performance re13ted p8yments tnade to st8ff. with p8rtsculai challenge as to whether individuals re￿Iving such payments were able to Influen￿ the metrics used to detennine amounts to be paid, We also communicated relevant identified laws and regulations and potential traud risks to all engagernent team members and remained alert to any indicats.ons of fraud or non-complian￿ with laws and ￿ulationS throughout the audit Our audit prooedures were designed to respond to risks of material misstatement in the financi31 ststements. recognising that the risk ol not detecting a material misstatement due to fraud is higher than the risk ol not detecting one resulting from eiror. 85 fraud may involve deliberate Con￿alment by. for example, forgery. misrepresentations or through collusion. There are inherent limitations in the audit prO￿dureS performed and the further removed non-complianTr wth laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware ol Vt. A further description of our responsibilit￿$ for the audit ol the financial statements is located at the Financial Reporting Council's I"FRC's"I website at htt s".Ilwww frc.or .ukl8uditoisies onsibilities. This description forms part of our auditor's report. Use of our report This report is made sdely 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'5 ttustees those matters we ale required to state to them in an auditor's report and lor no other purpose. To the fullest extent permitted by law. we do not acTrpt or assume responsibility to anyone otherthan the Chaiity and the Charity s ttU5tees a5 a body. for our audit work, for this report, or for the opinions we have formed. Do¢uSlqfi•d by.. g)0 LU) 73D8818FE9AC4C9 BDO LLP. statutory auditor London, UK 28 April 2023 BDO LLP is eligible lorappointment as auditor olthe charity by virtue of its eligibility for appointment as 8uditor of a company under section 1212 of the Companies Act 2(X)6. BDO LLP is a limited liability pathership registered in England and Wales Iwith registered number OC3051271. 10

Whitworth Scholarship's Fund Statement of Financial Activities For the year ended 31 December 2022 UnroStrlct8d Endowm8nt Funds Funds 2022 Totsl 2021 Totsl Incorne and endowments from.. ltrJve$tments Interest & drrfidends 236,729 236,729 208,015 Bank intere8t & other Income 245 245 10 Totsl 236,974 236.974 208.025 Expenditure on.. Charitable activities Scholar8hip8 1270,7451 270.745 1270.7451 278,192 1278,1921 Totsl Nel lexpÈnditurel before gainsloossesl on investment 8S$Èts 1270,7451 133,7711 33,7711 170,1671 Nel gainslllossè$l on investmÈnl a$$ets Net lexpenditureyincome 139,280 212,193 351,473 595,879 1173,0511 1385,2441 525,712 Net movement in funds 1173,0511 1385.2441 525.712 Reconciliation of lunds Total funds brouym fotward Totsl fund8 carrlod forward 2.890,773 4,198.167 7,088.940 8,563.228 2,717,722 3,985.974 8,703.696 7,088.940 The Fund has no recognised gains or losses forthe year othèr than as de18iled above. The net movements in the Fund's f￿r￿S for the year arise frorn the Fund'5 continuing activities. The notes on pages 1419 form part ofthese accounts. Summary of Financial Activitie5 For tho yoar ènded 31 Docombor 2021 2021 2021 Unr88trfjctsd Endowm8nt Fund$ Funds 2021 Totsl Totsl incom8 208.025 208,025 Totsl 8xpondlturo Nel gains on investrnent asse15 1278.1921 1278.1921 251.065 344.814 595.879 Net movernent in funds.. 180.898 344.814 525.712 Total funds brought forward Total fund$ carried forward.. 2 709.875 3 853.353 6 563.228 2.890.773 4,198.167 7,088.940

Whitworth Scholarship's Fund Balance Sheet Forthe year ended 31 December 2022 2022 2021 Note Fixod a550ts- Inv￿MentS 6,788,980 7,140,453 Current assets.. Debtors Gash at bank and in hand 59,754 39,014 98,768 55.731 89.065 138.796 TotalCu￿￿1 assels Credilor5'. Arnountsfalling duewilhin one year NetCUnEnt&ssels 1184,0521 185,2841 6.703,696 1190.3091 151.5131 7.088.940 Total netasset5 Thofunds ofth8 ch8rlty'. Endowment fund8 Unreslricled funds Total charity lunds 3,985,974 2,717,722 6.703,696 4.198,167 2.890.773 7.088.940 Thesefinancial 51alements including note5 on pages 14-19wereapproved bythe Trustee Board of the Institution of Mechanical Engineer5 on 26 April 2023 and were signed on its behaw by." Trustee Phlllp P801 Trustee Cllve Hlckman Ch8ri1y Registration Number '. 313756

Whitworth Scholarship's Fund Statement of Cash Flows Forthe year ended 31 December 2022 2022 2021 Cash flow5 from operating 4¢tNitie$'. Nelcash usedin operating4VCtivities 1277,0021 1245,3821 Cash flows from Inw8tlng actlvOtIos DividÈnd$ and interest from inveslments 232.951 232,951 208,025 208,025 Net Cash provided by In￿ting activyties Chany8inc8shandc8shequiv&lenlsin lh8 r8portingp81iod Cash&ndc&sh eouivalent81 the b&ginningofreportillgP&lFofl C8shandtrash8quival8nt8t8ncloftsportiffVP6riod 144,0511 83.065 39,014 137.3571 120,422 83,065 R8¢onclllatlon of net lThcomoto net cash flow from oporatlng actlvltles 2022 2021 Net incornellexpenditurel as perthe SOFA 1385.2441 525,712 Adjustmènts for.. Dividenlls and interest frorn investrnents IGain8lllosses on Investmnt8 Increaselldecreasel in debtors excluding dividends re￿1¥able IDecre4sellincrease in creditors N8tcash used In operating actlvltlvs 1236.9741 351.473 1208,0251 595,8791 16.2571 1277.0021 32,809 1245,3821 Balance Cash flows Balance Analysis of Net Funds 1 Jan 2022 31 DÈC 2022 Cash at bank and in hand 83,065 144.0511 39,014

Whitworth Scholarship's Fund Notes to the Financial Statements For the year ended 31 December 2022 Accounting Polici The Fund is registered with the Charity Commission (registered number 3137561. domiciled in the UK and is a publ benefit enlty. The address of the registered off￿e is 1 Birdcage Walk. London, SW1H gJJ. The followng accounting policies have been applied eonsistenly in dealing with items which are consideted material in telation to the Fund'$ financial statements. al Ba515 of preparation The financial siaiemenl$ have prepared lo gwe a truè 8nd fair ￿eW and h8ve departed from thè charities (Accoun18 and Reports) Regu18110n 2008 only lo the e￿end reouired to give 8 true and fair view. The Financial Slalemenls have been prepared in accordance with the Charities SORP. FRS102 The Financial Reporting standard applicable in the UK and Republic oflreland, and ap￿lea￿le UK charity law. This departure has involved folowing Accounting and Reportin9 by Charities.. Slalemenl of recommended Practice applicable lo charities preparing their accounts in accordan￿ Nlh the Finan￿31 Reporting Standard ￿p￿icable in the UK and Republic of Irdand IFRS1021 effectwe 1January 2019 rather than the Accounting and Reporting by Charities Statement of recOtnmer￿ed praCt￿e effective from 1 April 2005 which has Sin￿ been withdravffl. The financial statements have been prepared on the historical c05t basis of accounting, rnodified lo incorporate the revaluation of invesknents. The finanaal statetnents are prepared in steding. yth￿h 1$ functional currency of the Fund. Monetary amounts in these financial statements ate rounded lo the nearest pound. bl Golng Concorn The finanaal statetnenls have been prepated on a going concem basis. The financial statements do not include any 8djusimenis thai would tesult from the charity not being able to continue for the nert 12 tnonths. The Fund has a strong b81ance sheet and has a¢ces8 10 £6.8m of 8vailable investments which tould bÈ ulilised lo cover expenditurè rfrequired. TherÈfore. the￿ are no material uncertainties about Ihè Fund's ability tontinue as a goir ncem. cl Income Investment IncThne is eamedfmmholding 88sets forinveslmenl purposesand indude8divhJend8and bank interest that are presented gross on ¥ r￿1Vable basis. dl Expenditure Schdatship awards are recognised on an ac8dÈmic year ba$1$ ￿th any sum$ duè at the Year-er￿ In res￿¢1 of the spring and summerterms beiw acxrued. General expenditure is recognised in the period lo vrt)Ich it rdales. Members of the Vthitworth Award Panel, who are respon81ble for sdecling Schdars, provide thÈir time free of charge. el Investments Investments consist of common invesltnenl funds adtninistered by an investment manager and ate valued at Ihe yearend ai the bid prits. It Is the Fund's policy to keep valuations up to date such Ihai when invÈsimÈnis are Sold therè 18 no 98in orlos$ ariging relatiny to previou8 yÈars. As 8 re8uII the Statèment of Fin8nci81 AcbvitiÈÈ doès not distinguish betwe8n the valuation adjuslmenl8 r8laling 10 8al8s and those relating lo conlinu8d holding8 as th8y are together Irealed 88 changes in tt)e value of the Investment portfolio tt)roughoul the year. 14

Whitworth Scholarship's Fund Notes to the Financial Statements (continuedl For the year ended 31 December 2022 Accounting Polici8s lcontinuodl el Investm8nts l¢ontlnu8dl All inve8tment management ch8rges are Included In the bid price of uniis. Wè arÈ unable lo IdÈnlfy inve8tment manager fee5 separalety and so these fees are not disclosed in the Statement of Finanaal Adivities. Grant COMM￿￿ents Schdatships are awarded for the peri(￿ of study. usually three years. with payments tnade on a terrnty basis. Expenditure is not 8trLmed bèyond each atAdÈmic ye8r 8$ fulure p8yments are subject to a perfomiancè rèview by the Whitworth P8nÈl, véhid) thÈrÈfore has discretion io lerniinale the funding agreemeni in casÈ perform8nce related condiLions are not met. Mulli-year grants that do not meet thÈ rècoynition ￿teria are d18dosed as conlingÈnl Iiaknlitie8 In thÈ notÈs lo the financial 8talements. gl Financial assèts The Fund has elected to appty the provisions of Section 11 Basic Finan￿al Insttuments" and Section 12 Other Finanti81 Instruments Issues" of FRS102 to all ils financial in$irumenis. Finana41 assets are recognised in the Fund'5 Statement of fin8nual position when the Fund bec(Knes party to the conlrdctual provisions of the insttumenl. Interest ts rÈcognised by applying IhÈeffective intere8t rate, exceptforshort-tenr rÈceivableswhÈn the recognition of interest would be immaleri81. The eftethive interesl mdhod Is a method of calculating the amortl8ed cost of debt instrument and ol allocating the Interest income overthe relevanl period. The effective Interest rale is the rale that ex8Ctly di8counl8 eslimaled future c88h reipls through Ihe expected lrfe of the debt Instrument lo the net carrying amount on initsal reeo9nilion. h) Critical accounting èstimatès and judgemènts In the application of the accounting policiÈs, the Trustees are Nuirèd lo make judgements, e8timale$ and assumption8 about the carrying v81ue of assets and Iiabililies that are not readily app8renl from other source8. The eslimales and associated sssumplions are based on historical experience and other factors that are consideEd lo be relevant. The es1im3tes and underlying assumptions are reviewe(l on an ongoing basis. Revisions lo accounting eslimales are recognise(l in the period in which the esbmale is revised. if the revision affects that peri(Kl, or in the period of the revision arKI future periods rfthe re¥￿10￿ affect5 both CLYrent and fLrture periods. Fund Accounting Endowment Funds are perm8nenlty endowed assets. which pro¥￿e unrestrided income 10 the Fund. Unrestricted Funds are applied according to the schetne goveming the Fund. 15

Whitworth Scholarship's Fund Notes to the Financial Statements (continued For the year ended 31 December 2022 Investmènt Income 2022 2021 Di¥idend8 receivable from inveslmenl funds 236,729 208.015 All inve8tment incomè anses from Ihè InveslmÈnl8 detailed in note 5 below. Taxation VthitwJrth Scholarship's Fund 18 (x)n$idered to Pass Ihe tssts set out in par8graph 1 Schedule 6 Finance Act 2010 and therefore it meets the definition of a charitable Irusl for UK Schedule 6 Finance Act 2010 and therefore il meels the definition of a charitable trust for UK income lax purposes. Accordingly the Fund is potentially exempl from laxalion in respecl of Inco￿ or capi181 gains re¢eive(J wlhin categories covered by Part 10 Income Tax Act 2007 or Section 256 of the Taxation of Char9eable Gains Act 1992, to the exlenl that such income or gains are applied exclusively lo charitable purposes. Trnstèo's Remuneiation and Exwn80S The Tm$lee nèither receivèd nor waivèd any rèmuneration or expenses during the ￿riod 12021 Nill. Employees There wete no employees in thè year ended 31 Detsmber 202212021 - Nill. Inv88tsnonts Market Value 3111212022 Markot Valu8 3111212021 C05t 3111212022 C05t 3111212021 P•rmanènt End¢)wmont Fund BLK Charities UK Bond Fund A Inc BLK Ch8rilies UK Equity Fund A Inc 305.318 3,880,656 42,258 620,455 384.337 3,813,830 42,258 620,455 Fund Totsl 3,985.974 662,713 4.198.167 662.713 Unrostrlcted Fund Holdlng BLK Charities UK Bond Fund A Inc BLK Charities UK Equity Fund A Inc 170.070 2,632.936 127,874 691,556 214.085 2,728,202 127.874 691,556 Fund T¢)tal 2.803.006 819,430 2.942.287 819.43D Totsl Inv68tmonts 6,788.980 1.482,143 7.140,454 1.482,143 16

Whitworth Scholarship's Fund Notes to the Financial Statements (continued) For the year ended 31 December 2022 Investments- continued 2022 2021 Movement of investments M4Tkel value al 1 January Nel investment gains 7.140,453 1351,4731 6.544,574 595,879 Investment managerfees are included ￿thin net investment gains aThJ cannot be separalety idenlrfied MaTket value al 31 December Historic cost al 31 December 6.788,980 11.482,1431 7.140,453 11,4B2,1431 Unrealised Inve$lmÈnl gain$ 8t 31 DeCem￿r 5,306,837 5.658,310 2022 2021 Di￿dendS retsivable 59,754 55,731 Cr8dltor8 2022 2021 Grant5 payable Other creditors 174,482 9,570 184,052 169,OC 21,309 190.309 Totsl croditors statèmont of Fund$ vemont GairnllLos$l on Invo8tmont a5s8ts Net loxpondlturev income Balance at 0110112022 Balanctr 3111212022 P8mianenl Endowment Fund Unrestricted Fund 4,198,167 2,890.773 1212,1931 1139,2801 3,985,974 2.717,722 133.7711 Fund Total 7,088.940 133.7711 1351,4731 6.703,696 0110112021 3111212021 Pemianenl Endowment Fund Unrestricted Fund 3,853.353 2,709.875 344,814 251,(K5 4.198,167 2.890,773 170.1671 Fund Total 6,563.228 170.1671 595,879 7.088,940 The Penranent EndowmÈnl Fund provides the pèm)anÈnt capital b88e In the fomi of InvÈ$lmenls. The Unrestricted Fun(1 represents accurnul3ted income rnost of which has been invested. The incorne fr(Kn these investments and Ih05e held in Ihe Pemianenl Endowment Fund 15 use(1 lo pay the scholarship award5. 17

Whitworth Scholarship's Fund Notes to the Financial Statements (continued) For the year ended 31 December 2022 Analysis of assets betsveen funds Permanent Endowment Fund Unr68trl¢tod Fund Total 2022 Total 2021 Inve$lmÈnls Nel current assets Totsl net assets 2.803,006 185,2841 2.717,722 3.985,974 6,788.980 185.2841 6,703.696 7,140.453 3.985,974 7,088.940 2021 2020 Investments Nel current assets Total net assets 2,942,286 4,198,167 7,140,453 6,544,574 18.654 6,563,228 2,890,773 4,198,167 7,088,940 io Ultimate parent Control of the charity rests wlh the InstitLrtion of Mechanical Engineers (Charity reg.N 206882. dotnialed in the UK and is a public benefit Èntity, regi8tered 8t 1 Birdcage W81k, London, SVI1H 9JJl as sole TrusteÈ under the lem)s of Scheme made by the Charity. The Institution of Mechanical Engineers is an independent professional assoaation, ar learned society, th81 represents med)anical engineers and the engineering profe8810n. 11 Grant commltmonts These sums have been provisionally approve(l as grants to be made to current schol3rs for completion of their studie5 Because the Trusiee has furthÈr 8Ctions to take on them before releasing for p8ymènt, they h8ve not ￿en recognised in this yea¢s a￿￿￿ts. No discounting h45 been applied to granl commitments due in more than one year on the basis thai it would be imThaiÈri81. 2022 2021 Scholarships due for payment within one year Scholarships due for payment after one year Total scholarship cotnmitments 71.750 349.000 420.750 68.667 382.583 451.250 12 Related parties The Institution of Mechanical Engineers administers the Prizes for Vthitworth Scholarships Trust Fund. 11 incur6 costs relating to venue hire, speakers and catering which 8re recharged lo the Trust Fund. The amourn recharged dunng the year ended 31 December 2022 was £012021.. £0) and the amount due lo the Inslilulion al the year end was £0 12021.. £0). 18

Whitworth Scholarship's Fund Notes to the Financial Statements (continued) For the year ended 31 December 2022 13 Expenditure on ¢haritsble activities 2022 2021 Scho12rship$ Prizes administration Total 219,306 51,439 270,745 262,132 16,060 278.192 Scholarships in both 2022 and 2021 wère awarded 10 the Indi￿dual$. studying Èngineering either part-time orful time, and intend￿1 fortheireducational nee(Is. ThÈtotal amounts incurred in respect of auditfees in 2D22 w&re £9.49DI2021." £4,120). 14 Flnanclal In8trum8nts 2022 2021 Finano81 as5els measured at amortised cost Finano41 liabilities rneasured at amortised cost Financral assets measured al fairvalue 98,768 184,052 6.788,980 138,796 190,309 7.140.453 19