2023-12-31-accounts

Whitworth Scholarship's Fund

Trustee Board's Report and Annual Accounts For the Year Ended 31 December 2023

Registered Charity No: 313756

Whitworth Scholarship's Fund

Contents

For the year ended 31 December 2023

	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 2023

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
	Natwest Bank
	7 Cornhill,
	Bury Saint Edmunds
	IP33 1BQ
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 September1868
	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 2023

The Trustee presents its report along with the financial statements of the Fund for the year ended 31 December 2023. 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

• 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 out of votes of Parliament.

Value of Scholarships

The awards are flexible to recognise the many study modes. The Whitworth Scholarship award supporting Undergraduate/MSc students was valued at £9,000 p.a. full-time and typically £3,000 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 2023, sought applications for the Awards, with 28 applications received for the Whitworth Scholarship Awards and 3 applications received for the Whitworth Senior Scholarship Awards. 24 candidates were called for interview for the Whitworth Scholarship Awards and 3 candidates for the Whitworth Senior Scholarship Awards, which were held at 1 Birdcage Walk on Wednesday, 16th and Thursday 17[th ] August 2023. Following the interviews 16 new Whitworth Scholarship Award Holders and 3 new Whitworth Senior Scholarship Award Holders were chosen to receive an award.

4

Whitworth Scholarship's Fund

Trustee's Report (continued) For the year ended 31 December 2023

Value of Scholarships (continued)

The 3 Whitworth Senior Scholarship Awards for 2023 were awarded to support PhD research in:

Assured Positioning, Navigation and Timing (PNT) for Remote Robots at Warwick University. Deep Learning Based Methods for Pedestrian-Level Wind Assessment, (part-time) at Cranfield University. Electrical and Electronics Engineering, AI Enabled Control of Distributed Generation at The University of Nottingham.

Eighteen award holders completed their degree courses and were elected “Whitworth Scholars” and 1 Whitworth Senior Scholarship Award Holder completed their PhD in Cycloidal Rotor Systems at The University of Bath and was elected “Whitworth Senior Scholar”. A further 1 was elected to Whitworth Scholar with the option of deferring election to undertake a master's degree.

The 40[th ] Whitworth Awards Ceremony, celebrating the achievements of Award Holders and Scholars from 2023, was held on Thursday 7 December 2023. The Ceremony was officiated by Joanna Horton, IMechE Director – Member Operations. Professor Karl Dearn, Wh Sch, Wh SSch Chair of the Whitworth Awards Panel, introduced the Whitworth Scholarship Awards. Deputy President Dr Clive Hickman OBE presented the certificates and medals with Kevin Urquhart Wh Sch, President of the Whitworth Society, who also addressed the meeting.

Achievements and Performance

During the period covered by this report £308,118 (2022: £270,745) was paid to scholarship students and administration costs which includes a funds management fee of £38,613. Bank interest received was £1,802 (2022: £245). Income from the investment portfolios and bank deposits amounted to £238,670 (2022: £236,729) resulting in net expenditure before loss on investment assets of £67,646 (net expenditure 2022: £33,771). As a result of a positive movement in the Stock Market the closing value of the Permanent Endowment Fund increased to £4,193,856 (2022: £3,985,974) and the closing value of the Unrestricted Fund increased to £2,788,447 (2022: £2,717,722). This was mainly the result of an increase in the net gains on investment assets.

Investment Policy

All the Fund’s income is generated from investments and bank deposits. The investments of the Fund 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:

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 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 2023

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. The year 2023 was a challenging year characterised by higher inflation, geopolitical instability, and market 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 2023 were £2,788,447 (2022: £2,717,722). 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 £4,193,856 (2022: £3,985,974).

The Trustee has a policy which requires that the level of free reserves should reflect at least six months of charitable spend, in addition to longterm multi year scholarship commitment. This amounts to £388k. The reserves at the year end is £2.4m in excess of the required £388k. This policy is deemed appropriate for the reported financial period.

Public Benefit

The IMechE confirms that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Fund’s 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 2024.

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 Bylaws of the Institution.

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Whitworth Scholarship's Fund

Statement of Trustee's Responsibilities

For the year ended 31 December 2023

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 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. Theyare 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 United Kingdom 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 ofthe 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 31 July 2024 and was signed on its behalf by:

7

Whitworth Scholarship's Fund

Independent Auditor’s Report to the Trustees of Whitworth Scholarship’s Fund For the year ended 31 December 2023

Opinion on the financial statements

In our opinion, the financial statements:

• give a true and fair view of the state of the Charity’s affairs as at 31 December 2023 and of the Charity’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 Whitworth Scholarship’s Fund (“the Charity”) for the year ended 31 December 2023 which comprise the statement of financial activities, 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 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 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 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, 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 or

• 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.

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Whitworth Scholarship's Fund

Independent Auditor’s Report to the Trustees of Whitworth Scholarship’s Fund (continued) For the year ended 31 December 2023

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 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 preparing the financial statements, the Trustees are responsible for assessing 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 Charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s 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 Acts and relevant regulations made or having effect thereunder.

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.

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:

Non-compliance with laws and regulations

Based on:

• Our understanding of the Charity and the sector in which it operates;

• Discussion with management and those charged with governance;

• Obtaining and understanding of the Charity’s policies and procedures regarding compliance with laws and regulations.

The Charity is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the Charities Act in the UK, UK GAAP and UK tax legislation.

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;

• Review of correspondence with regulatory and tax authorities for any instances of non-compliance with laws and regulations;

• Review of financial statement disclosures and agreeing to supporting documentation.

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 regarding any known or suspected instances of fraud;

• Obtaining an understanding of the Charity’s policies and procedures relating to: ▪ Detecting and responding to the risks of fraud; and

• Internal controls established to mitigate risks related to fraud.

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Whitworth Scholarship's Fund

Independent Auditor’s Report to the Trustees of Whitworth Scholarship’s Fund (continued) For the year ended 31 December 2023

• 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 considered the areas most susceptible to fraud to be through management override of controls and improper revenue recognition.

Our procedures in respect of the above included:

• Testing a sample of journal entries throughout the year, which met a defined risk criteria, by agreeing to supporting documentation;

• Assessing significant estimates made by management for bias, including the valuation of investments;

• Testing a sample of investments and dividend income transactions throughout the year and around the year end to ensure that the recognition is in line with the SORP requirements; and

• Incorporating unpredictability into our testing approach through amending the nature and extent of audit procedures.

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 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 Part 4 of the Charities (Accounts and Reports) Regulations 2008. 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

02 August 2024 31 July 2024

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).

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Whitworth Scholarship's Fund

Statement of Financial Activities For the year ended 31 December 2023

Income and endowments from: Notes Investments Interest & Dividend 1 Bank interest & Other income Total Expenditure on: Charitable activities Scholarships 2 Total Net (expenditure) before gains/(losses) on investment assets Net gains/(losses) on investment assets 6 Net income/(expenditure) Net movement in funds: Reconciliation of funds: Total funds brought forward 9 Total funds carried forward 9		Unrestricted Funds £ 238,670 1,802 240,472 (308,118) (308,118) (67,646)	Endowment Funds £ - - - - - - 207,882 207,882 207,882 3,985,974 4,193,856	2023 Total £ 238,670 1,802 240,472 (308,118) (308,118) (67,646) 346,253 278,607 278,607 6,703,696 6,982,303	2022 Total £ 236,729 245
					236,974
					(270,745)
					(270,745)
					(33,771)
		138,371 70,725 70,725 2,717,722 2,788,447			(351,473)
					(385,244)
					(385,244) 7,088,940
					6,703,696

The Fund has no recognised gains or losses for the year other than as detailed above. The net movements in the Fund’s funds for the year arise from the Fund’s continuing activities. The Notes on pages 14-20 form part of these accounts.

Summary of Financial Activities for the year ended 31 December 2022

Notes Total income Total expenditure 2 Net (loss) investment assets 6 Net movement in funds: Total funds brought forward 9 Total funds carried forward: 9	2022 Unrestricted Funds £ 236,974 (270,745) (139,280) (173,051) 2,890,773 2,717,722	2022 Endowment Funds £ - - (212,193) (212,193) 4,198,167 3,985,974	2022 Total £ 236,974 (270,745) (351,473) (385,244) 7,088,940
			6,703,696

The Fund has no recognised gains or losses for the year other than as detailed above.

The net movements in the Fund’s funds for the year arise from the Fund’s continuing activities.The notes on pages 14-20 form part of these accounts.

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Whitworth Scholarship's Fund

Balance Sheet

For the year ended 31 December 2023

		2023	2022
		£	£
	Note
Fixed assets:
Investments	6	6,925,233	6,788,980
Current assets:
Debtors	7	59,714	59,754
Cash at bank and in hand		56,491	39,014
Total current assets		116,205	98,768
Liabilities:
Creditors: Amounts falling due within one year	8	(59,135)	(184,052)
Net current assets(Liabilities)		57,070	(85,284)
Total net assets		6,982,303	6,703,696
The funds of the charity:
Endowment funds	9	4,193,856	3,985,974
Total unrestricted funds	9	2,788,447	2,717,722
Charity funds		6,982,303	6,703,696

These financial statements including notes on pages 14-20 were approved by the Trustee Board of the Institution of Mechanical Engineers on 31 July 2024 and were signed on its behalf by:

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Whitworth Scholarship's Fund

Charity Registration Number : 313756

13

Whitworth Scholarship's Fund

Statement of Cash Flows For the year ended 31 December 2023

Cash flows from operating activities: Net cash used in operating activities Cash flows from investing activities Dividends, interest from investments Sale of investments Purchase of 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 used in operating activities Net income/(loss) as per the statement Adjustments for: Dividends, interest from investments (Gains)/loss on Investments Increase in debtors Increase in creditors Net cash used in operating activities Balance Analysis of Net Funds 01.01.2023 £ Cash at bank and in hand 39,014	2023 £ (432,995) 240,472 210,000 - 450,472 17,477 39,014 56,491 2023 £ 278,607 (240,472) (346,253) 40 (124,917) (432,995) Cash flows £ 17,477	2022 £ (277,002) 232,951 - - 232,951 (44,051) 83,065 39,014 2022 £ (385,244) (236,974) 351,473 - (6,257) (277,002) Balance 31.12.2023 £ 56,491

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Whitworth Scholarship's Fund

Notes to the Financial Statements For the year ended 31 December 2023

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 material in relation to the Fund’s 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 1January 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 £6.9m of available investments which could be utilised to cover expenditure if required. Therefore, there are no material uncertainties about the Fund's ability to continue as a going concern.

c) Income

Investment income is earned from holding assets for investment purposes and includesdividends and bank interest that are presented gross on a receivable basis.

d) Expenditure

Scholarship awards are recognised 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 2023

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.

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Whitworth Scholarship's Fund

Notes to the Financial Statements (continued) For the year ended 31 December 2023

1 Investment Income

Dividends receivable from investment funds	2023 £ 238,670	2022 £ 236,729

All investment income arises from the investments detailed in note 6 below.

2 Expenditure on charitable activities

Scholarships Prizes administration Funds management fee Total	2023 £ 254,781 14,724 38,613 308,118	2022 £ 219,306 11,611 39,828 270,745

Scholarships in both 2023 and 2022 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 2023 were £9,942 (2022: £9,490).

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Whitworth Scholarship's Fund

Notes to the Financial Statements (continued) For the year ended 31 December 2023

3 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.

4 Trustee's Remuneration and Expenses

The Trustee neither received nor waived any remuneration or expenses during the period (2022 - Nil).

5 Employees

There were no employees in the year ended 31 December 2023 (2022 - Nil).

6 Investments

Permanent Endowment Fund BLK Charities UK Bond Fund A Inc BLK Charities UK Equity Fund A Inc Fund Total Unrestricted Fund Holding BLK Charities UK Bond Fund A Inc BLK Charities UK Equity Fund A Inc Fund Total Total Investments	Market Value 31/12/202 3 £ 310,364 172,880 3,883,492 4,193,856 2,558,498 2,731,378 6,925,233	Gains & (Losses) 31/12/202 3 268,106 45,006 3,263,037 3,531,143 1,976,244 2,021,250 5,552,393	Disposal 31/12/202 3 - - - - (54,650) (54,650) (54,650)	Cost 31/12/202 3 £ 42,258 127,874 620,455 662,713 636,905 764,779 1,427,492	Market Value 31/12/202 2 £ 305,318 170,070 3,680,656 3,985,974 2,632,936 2,803,006 6,788,980	Cost 31/12/202 2 £ 42,258 620,455
						662,713
						127,874 691,556
						819,430
						1,482,143

17

Whitworth Scholarship's Fund Notes to the Financial Statements (continued) For the year ended 31 December 2023

6	Investments - continued
				2023	2022
				£	£
	Movement of investments
	Market value at 1 January			6,788,980	7,140,453
	Net investment gain/(loss)			346,253	(351,473)
	Investment manager fees are included within net investment		gains and cannot be separately identified
	Market value at 31 December			6,925,233	6,788,980
	Historic cost at 31 December			(1,427,492)	(1,482,143)
	Unrealised investment gains at 31 December			5,497,741	5,306,837
7	Debtors
				2023	2022
				£	£
	Dividends receivable			59,714	59,754
8	Creditors			2023	2022
				£	£
	Grants payable			45,250	150,250
	Other creditors			13,885	33,802
	Total creditors			59,135	184,052
9	Statement of Funds
				Movement
		Balance at	Net	Gain/(Loss)	Balance at
				on
		01/01/2023		Investment	31/12/2023
			(Expenditure)	assets
		£	£	£	£
	Permanent Endowment Fund	3,985,974	-	207,882	4,193,856
	Unrestricted Fund	2,717,722	(67,646)	138,371	2,788,447
	Fund Total	6,703,696	(67,646)	346,253	6,982,303
		01/01/2022			31/12/2022
		£	£	£	£
	Permanent Endowment Fund	4,198,167	-	(212,193)	3,985,974
	Unrestricted Fund	2,890,773	(33,771)	(139,280)	2,717,722
	Fund Total	7,088,940	(33,771)	(351,473)	6,703,696

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.

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Whitworth Scholarship's Fund

Notes to the Financial Statements (continued)

For the year ended 31 December 2023

10 Analysis of Net Assets between Funds

Analysis of Net Assets between Funds
Investments Net current assets Total Net Assets Investments Net current liabilities Total Net Assets	Unrestricted Fund £ 2,731,377 57,070 2,788,447 £ 2,803,006 (85,284) 2,717,722	Permanent Endowment Fund £ 4,193,856 - 4,193,856 £ 3,985,974 - 3,985,974	Total 2023 £ 6,925,233 57,070
			6,982,303
			2022 £ 6,788,980 (85,284)
			6,703,696

11 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.

12 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 in this year’s accounts. No discounting has been applied to grant commitments due in more than one year 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	2023 £ 165,750 234,000 399,750	2022 £ 71,750 349,000
		420,750

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Whitworth Scholarship's Fund

Notes to the Financial Statements (continued)

For the year ended 31 December 2023

13	Financial instruments
		2023	2022
		£	£
	Financial assets measured at amortised cost	116,205	98,768
	Financial liabilities measured at amortised cost	59,135	184,052
	Financial assets measured at fair value	6,925,233	6,788,980

14 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 2023 was nil (2022: nil) and the amount due to the Institution at the year end was nil (2022: nil).

20