**REGISTERED COMPANY NUMBER: 01959979 (England and Wales) REGISTERED CHARITY NUMBER: 327121** ## **REPORT OF THE TRUSTEES AND** **UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** ## **FOR** **ENGINEERING INTEGRITY SOCIETY (A COMPANY LIMITED BY GUARANTEE)** **ENGINEERING INTEGRITY SOCIETY** ## **CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** |||**Page**|| |---|---|---|---| |**Report of the Trustees**|1|to|3| |**Independent Examiner's Report**||4|| |**Statement of Financial Activities**||5|| |**Balance Sheet**|6|to|7| |**Notes to the Financial Statements**|8|to|12| |**Detailed Statement of Financial Activities**|13|to|14| **ENGINEERING INTEGRITY SOCIETY** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022** The trustees present their report with the financial statements of the charity for the year ended 31 March 2022. The trustees have adopted the provisions of 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 (FRS 102) (effective 1 January 2019). ## **OBJECTIVES AND ACTIVITIES** ## **Objectives and aims** The charity's objective and principal activity is to provide a forum for engineers, technicians and materials specialists to discuss and assess technological developments and their practical application to measurement techniques and structural integrity and noise, vibration and human characteristics of components, sub assemblies and complete products. ## **Public benefit** The trustees have complied with the duty in section 4 of the 2006 Charities Act to have due regard to guidance published by the Charity Commission. The Society provides a forum for the interchange of ideas and information for practising engineers and engineering researchers, as well as a journal containing technical papers, topical discussion pieces and news, and regular events. ## **ACHIEVEMENT AND PERFORMANCE** ## **Summary of Main Achievements During The Year** The past year has been a great success for the EIS as we return to a full programme of activities, albeit in a rather different mix compared with the pre-CoVid era. The Society's financial position is recorded in detail in this Annual Report. We are pleased to report that we have returned a surplus of almost £10,000 and increased our total funds to £158,825. Our income is in two distinct streams with almost equal contributions from Corporate Membership fees and from the Instrumentation, Analysis and Testing Exhibition at Silverstone. Having lost Corporate Members in the 2020/21 financial year, we are pleased that we have gained seven new members this year, including one returning Corporate Member, and lost 1 through a merger giving us a total of 49 companies. We are extremely grateful for the support that the Corporate Members give to the EIS. We ran the Instrumentation, Analysis and Testing Exhibition at Silverstone in September 2021, a change from our usual March time, and our first live event in two years. Although attendance was down around 20% on previous years, there was a high level of satisfaction from exhibitors. Many commented that they were pleasantly surprised by the turn out and the numbers had exceeded their expectations. For many exhibitors and visitors this was the first exhibition they had attended since the start of the pandemic and there was a good atmosphere in the exhibition hall. Upon reflecting on the feedback from the exhibitors we have decided to bring the event forward in the calendar and run it in May 2022. The EIS did not run any other live events this year but organised a programme of ten free webinars. These have evolved from our Young Engineers initiative and now attract a wide range of engineers. We shall continue to offer these free webinars in the future as part of diversified portfolio of online and physical events. Our financial resilience, backed by our capital reserves, has enabled us to maintain the society's charitable activities through this the year. As well as the free webinars, we ran a photography competition with prizes provided by several Corporate Members. The competition was a success and has generated a stock of images for the Society's use. The EIS continues to support the University of Wolverhampton student motor racing activities and we are delighted to receive their reports for our Journal. The Journal is thriving under the new Editor and we published two issues this year, as well as three Newsletters and a stream of emails and social media content. Our strategy to maintain significant reserves and control overheads and operating costs has served us well and we go into the 2022/23 financial year in a strong position. We are exploring ways of generating income from virtual events and plan an increasing programme of paid to attend physical meetings. We are also organising our next international conference, Fatigue 2024, to be held in Jesus College, Cambridge in June 2024. In summary, the EIS has had a successful year, increasing our reserves by 6.4%, and offering a good range of activities to benefit our community. The Trustees wish to maintain this position and continue to increase the numbers of engineers who engage with the Society as members, delegates and presenters. Page 1 **ENGINEERING INTEGRITY SOCIETY** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022** ## **FINANCIAL REVIEW** ## **Financial position** The Society's financial position is recorded in detail in this Annual Report. It is gratifying to record that we have returned another surplus of almost £10,000 and increased our total funds to £158,8255. An amount of £24,618 has been carried forward to the new financial year as deferred income. This comprises credits for the planned exhibition in 2022. Our capital reserves have allowed us to maintain the society's charitable activities through this difficult period. In summary, our current income and reserves are sufficient to maintain our planned activities. It is the Trustees' intention to maintain this position whilst growing the numbers of engineers who engage with the Society as members, delegates and presenters. ## **Reserves policy** The Trustees have ensured that all cash reserves, apart from those required for the day to day operation of the company, are held in an interest bearing account, and that the company aims to have a free reserve to cover costs associated with any future events. Our financial strategy of building reserves provides the Society with the resilience to promote engineering to young people and support them in their professional development during the politically and financially uncertain times ahead. ## **STRUCTURE, GOVERNANCE AND MANAGEMENT** ## **Governing document** The charity is controlled by its governing document, a deed of trust, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. ## **Recruitment and appointment of new trustees** Directors are a subset of Trustees. Trustees are all members of the council and their nomination must be approved by council members. They must be nominated and seconded by the membership. ## **REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number** 01959979 (England and Wales) ## **Registered Charity number** 327121 ## **Registered office** c/o Hollis and Co 35 Wilkinson Street Sheffield S10 2GB Page 2 **ENGINEERING INTEGRITY SOCIETY** ## **REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2022** ## **Trustees** E R Cawte R J Hobson (Vice Chair) N W Thornton G Hemmings (Treasurer) Dr J R Yates (Chair) N J Richardson Dr P Bailey Professor M Bache D Ensor D Fish Professor P Irving Dr S Jeffs J Joy Dr A O'Neill P Roberts R Wood T Margereson S Payne K Vickers J Shenton (appointed 1/12/21) All elected Council members of the Society are trustees of the Society. Of the trustees, the following are also directors of the charity for the purposes of the Companies Act 2006:- J R Yates R J Hobson G Hemmings E R Cawte N W Thornton N J Richardson P Bailey ## **Company Secretary** N J Richardson ## **Independent Examiner** Hollis and Co Limited Chartered Accountants 35 Wilkinson Street Sheffield South Yorkshire S10 2GB This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies. Approved by order of the board of trustees on 30 August 2022 and signed on its behalf by: Dr J R Yates (Chair) - Trustee Page 3 ## **INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF ENGINEERING INTEGRITY SOCIETY** ## **Independent examiner's report to the trustees of Engineering Integrity Society ('the Company')** I report to the charity trustees on my examination of the accounts of the Company for the year ended 31 March 2022. ## **Responsibilities and basis of report** As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act'). Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145(5) (b) of the 2011 Act. ## **Independent examiner's statement** I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe: 1. accounting records were not kept in respect of the Company as required by section 386 of the 2006 Act; or 2. the accounts do not accord with those records; or 3. the accounts do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or 4. the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached. Peter Hollis ICAEW Hollis and Co Limited Chartered Accountants 35 Wilkinson Street Sheffield South Yorkshire S10 2GB 26 September 2022 Page 4 **ENGINEERING INTEGRITY SOCIETY** ## **STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022** |Unrestricted
fund
Notes
£
**INCOME AND ENDOWMENTS FROM**
**Charitable activities**
Conferences
41,618
Membership
20,907
Investment income
2
192
Other income
2,627
**Total**
65,344
**EXPENDITURE ON**
**Charitable activities**
Conferences
26,197
Other
29,549
**Total**
55,746
**NET INCOME**
9,598
**RECONCILIATION OF FUNDS**
**Total funds brought forward**
149,227
**TOTAL FUNDS CARRIED FORWARD**
158,825|Restricted
fund
£
-
-
-
-
-
-
-
-
-
-
-|2022
Total
funds
£
41,618
20,907
192
2,627
65,344
26,197
29,549
55,746
9,598
149,227
158,825|2021
Total
funds
£
45,509
21,275
142
1,871| |---|---|---|---| ||||68,797| ||||38,201
20,682| ||||58,883| ||||9,914
139,313| ||||149,227| The notes form part of these financial statements Page 5 ## **ENGINEERING INTEGRITY SOCIETY** ## **BALANCE SHEET 31 MARCH 2022** |Unrestricted
fund
Notes
£
**FIXED ASSETS**
Tangible assets
7
1,208
**CURRENT ASSETS**
Debtors
8
11,210
Cash at bank
181,610
192,820
**CREDITORS**
Amounts falling due within one year
9
(35,203)
**NET CURRENT ASSETS**
157,617
**TOTAL ASSETS LESS CURRENT**
**LIABILITIES**
158,825
**NET ASSETS**
158,825
**FUNDS**
10
Unrestricted funds
**TOTAL FUNDS**|Restricted
fund
£
-
-
-
-
-
-
-
-|2022
Total
funds
£
1,208
11,210
181,610
192,820
(35,203)
157,617
158,825
158,825
158,825
158,825|2021
Total
funds
£
1,532
11,424
185,041
196,465
(48,770)
147,695
149,227
149,227
149,227
149,227| |---|---|---|---| The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022. The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 in accordance with Section 476 of the Companies Act 2006. The trustees acknowledge their responsibilities for - (a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and - (b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company. The notes form part of these financial statements Page 6 continued... **ENGINEERING INTEGRITY SOCIETY** ## **BALANCE SHEET - continued 31 MARCH 2022** These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial statements were approved by the Board of Trustees and authorised for issue on 30 August 2022 and were signed on its behalf by: J R Yates (Chair) - Trustee G Hemmings (Treasurer) - Trustee The notes form part of these financial statements Page 7 **ENGINEERING INTEGRITY SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022** ## **1. ACCOUNTING POLICIES** ## **Basis of preparing the financial statements** The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) '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 (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. ## **Income** All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. ## **Expenditure** Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources. ## **Allocation and apportionment of costs** Expenditure on management and administration of the charity includes all expenditure not directly related to the charitable activity and related activities. This includes cost of office services, audit and professional fees. ## **Tangible fixed assets** Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. Office equipment - 20% on cost Computer equipment - 25% on cost ## **Taxation** The charity is exempt from corporation tax on its charitable activities. ## **Fund accounting** Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. ## **2. INVESTMENT INCOME** ||2022|2021| |---|---|---| ||£|£| |Interest receivable|192|142| continued... Page 8 **ENGINEERING INTEGRITY SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022** ## **3. NET INCOME/(EXPENDITURE)** Net income/(expenditure) is stated after charging/(crediting): ||2022|2021| |---|---|---| ||£|£| |Depreciation - owned assets|464|433| ## **4. TRUSTEES' REMUNERATION AND BENEFITS** There were no trustees' remuneration or other benefits for the year ended 31 March 2022 nor for the year ended 31 March 2021. ## **Trustees' expenses** Expenses totalling £413.80 (2021 £nil) were reimbursed to officers of the Society during the year. These officers comprise trustees and committee members who have retired from active employment but remain active as committee members. ## **5. STAFF COSTS** The Society does not employ any staff. An individual under a contract for services, the costs of which were as follows, managed administration on a day to day basis: 2021 2021 £ £ Marketing and Event Services costs for the year 30,295 24,929 (including administration and conference costs) ## **6. INDEMNITY INSURANCE** The Society has taken out insurance to indemnify officers and trustees against any potential neglect or default for an annual limit of £500,000, including costs and expenses, which is renewed on a rolling basis each year on 9 June. ## **7. TANGIBLE FIXED ASSETS** |**TANGIBLE FIXED ASSETS**|||| |---|---|---|---| ||Office|Computer|| ||equipment|equipment|Totals| ||£|£|£| |**COST**|||| |At 1 April 2021|506|3,767|4,273| |Additions|140|-|140| |At 31 March 2022|646|3,767|4,413| |**DEPRECIATION**|||| |At 1 April 2021|378|2,363|2,741| |Charge for year|96|368|464| |At 31 March 2022|474|2,731|3,205| |**NET BOOK VALUE**|||| |At 31 March 2022|172|1,036|1,208| |At 31 March 2021|128|1,404|1,532| continued... Page 9 **ENGINEERING INTEGRITY SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022** |**8.**
**DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade debtors
Other debtors
Expense debtor
Accrued event income
VAT
**9.**
**CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR**
Trade creditors
VAT
Sales credits
Accrued expenses
Deferred income
**10.**
**MOVEMENT IN FUNDS**
At 1/4/21
£
**Unrestricted funds**
General fund
149,227
**TOTAL FUNDS**
149,227
Net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
65,344
**TOTAL FUNDS**
65,344|2022
2021
£
£
8,103
6,925
3,107
105
-
1,745
-
552
-
2,097
11,210
11,424
2022
2021
£
£
5,379
5,562
2,489
-
-
7,369
2,717
17,198
24,618
18,641
35,203
48,770
Net
movement
At
in funds
31/3/22
£
£
9,598
158,825
9,598
158,825
Resources
Movement
expended
in funds
£
£
(55,746)
9,598
(55,746)
9,598| |---|---| continued... Page 10 **ENGINEERING INTEGRITY SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022** ## **10. MOVEMENT IN FUNDS - continued** ## **Comparatives for movement in funds** |At 1/4/20
£
**Unrestricted funds**
General fund
139,313
**TOTAL FUNDS**
139,313
Comparative net movement in funds, included in the above are as follows:
Incoming
resources
£
**Unrestricted funds**
General fund
68,797
**TOTAL FUNDS**
68,797|Net
movement
At
in funds
31/3/21
£
£
9,914
149,227
9,914
149,227
Resources
Movement
expended
in funds
£
£
(58,883)
9,914
(58,883)
9,914|At
31/3/21
£
149,227|At
31/3/21
£
149,227| |---|---|---|---| |||149,227|| ||||9,914| A current year 12 months and prior year 12 months combined position is as follows: |**Unrestricted funds**
General fund
**TOTAL FUNDS**|At 1/4/20
£
139,313
139,313|Net
movement
in funds
£
19,512
19,512|At
31/3/22
£
158,825| |---|---|---|---| ||||158,825| A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows: ||Incoming|Resources|Movement| |---|---|---|---| ||resources|expended|in funds| ||£|£|£| |**Unrestricted funds**|||| |General fund|134,141|(114,629)|19,512| |**TOTAL FUNDS**|134,141|(114,629)|19,512| continued... Page 11 **ENGINEERING INTEGRITY SOCIETY** ## **NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2022** ## **11. RELATED PARTY DISCLOSURES** There were no related party transactions for the year ended 31 March 2022. ## **12. CONFERENCES AND EXHIBITIONS** |Title|Gross
Income|Expenses
Net Income|Expenses
Net Income| |---|---|---|---| ||£|£|£| |Webinar: Importance of Mechanical
Material
10.06.2021|0.00|236.50|(236.50)| ||||| |Webinar: Basics of Transducers
29.06.2021|0.00|99.00|(99.00)| ||||| |Webinar: Introduction to Accelerometers
09.07.2021|0.00|192.50|(192.50)| ||||| |Webinar: Performance of Electric Vehicles
20.07.2021|0.00|38.50|(38.50)| ||||| |Exhibition 2021
14.09.2021|41,218.37|22,371.37|18,847.00| ||||| |Webinar: Model based system testing
22.09.2021|0.00|137.50|(137.50)| ||||| |Webinar series: Renewables
11-12.2021|0.00|572.00|(572.00)| ||||| |Webinar Strain Gauges
19.01.2022|0.00|143.00|(143.00)| ||||| |Young Engineers Seminars||170.50|(170.50)| ||||| |Advanced Engineering NEC Show||1,647.64|(1,647.64)| ||||| |Photography Competition|400.00|526.50|(126.50)| ||||| ||41,618.37|26,135.01|15,483.36| Page 12 **ENGINEERING INTEGRITY SOCIETY** ## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022** |**DETAILED STATEMENT OF FINANCIAL ACTIVITIES**
**FOR THE YEAR ENDED 31 MARCH 2022**||| |---|---|---| ||2022|2021| ||£|£| |**INCOME AND ENDOWMENTS**||| |**Investment income**||| |Interest receivable|192|142| |**Charitable activities**||| |Conference income|41,618|45,509| |Corporate membership|20,363|20,700| |Personal membership|544|575| ||62,525|66,784| |**Other income**||| |Fraud debt repayment|755|-| |Publishers Licensing Service|1,872|1,846| |Bank compensation|-|25| ||2,627|1,871| |**Total incoming resources**|65,344|68,797| |**EXPENDITURE**||| |**Charitable activities**||| |Conference costs|26,135|32,237| |Bad debts|(4,256)|629| |EIS Journal|4,249|3,777| |DC Working Group|-|297| |Cancelled events|69|610| ||26,197|37,550| |**Other**||| |Insurance|3,544|2,716| |Telephone and data line|487|650| |Postage and stationery|132|114| |Marketing|2,870|2,939| |Miscellaneous expenses|4,932|3,919| |Computer consumables|137|161| |Bank charges|44|(245)| |iZettle costs|134|359| |Depreciation of tangible fixed assets|462|434| ||12,742|11,047| |**Support costs**||| |**Finance**||| |Bank charges|43|255| This page does not form part of the statutory financial statements Page 13 **ENGINEERING INTEGRITY SOCIETY** ## **DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2022** |**DETAILED STATEMENT OF FINANCIAL ACTIVITIES**
**FOR THE YEAR ENDED 31 MARCH 2022**||| |---|---|---| ||2022|2021| ||£|£| |**Finance**||| |**Governance costs**||| |Accountancy fees|3,950|2,570| |Marketing and Events Manager|12,549|6,703| |Council/committee meetings|265|758| ||16,764|10,031| |Total resources expended|55,746|58,883| |**Net income**|9,598|9,914| This page does not form part of the statutory financial statements Page 14