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 2023
FOR
ENGINEERING INTEGRITY SOCIETY (A COMPANY LIMITED BY GUARANTEE)
ENGINEERING INTEGRITY SOCIETY
CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023
| 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 2023
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the year ended 31 March 2023. 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 EIS has continued to re-establish its activities in the post Covid19 period with the re-introduction of seminars and preparations for the international conference to augment the existing webinar programme and exhibition event. The Society's financial position is recorded in detail in this Annual Report where we state a net expenditure of £3458 and total funds of £155,367 at the year end. As in the previous year, our income arises almost entirely from Corporate Membership fees and from the Instrumentation, Analysis and Testing Exhibition at Silverstone. We have enjoyed a modest increase in Corporate Membership fees and are pleased that the Exhibition returned a good surplus.
The Instrumentation, Analysis and Testing Exhibition at Silverstone moved to May 2022 and we were pleased that attendance was up almost 50% on the previous year, with a high level of satisfaction from both delegates and exhibitors. The net income from the Exhibition was lower than in 2021 due to a reduction in the number of exhibitors, which was attributed to a reluctance by some companies to attend events. The venue and organisational costs, whilst lower than the previous year, were a larger proportion of the income received.
We were delighted to run a seminar at Catesby Tunnel in Northamptonshire; it was our first event at this venue and was well received by the attendees. The EIS also organised five webinars, as well as the Young Engineers events and we attended the NEC Advanced Engineering Show in November where we supplied a speaker.
Our charitable activities have continued through the year with free webinars, sponsorship of the University of Wolverhampton student motor racing activities, our Journal, newsletters and social media communications, and the Peter Watson Prize. The Peter Watson Prize was held at Kilworth House in November and was very successful with record number of 16 entries, and successfully raised our profile with the next generation of engineers.
The Society closely monitors its structures, plans and financial commitments and has appointed three new Directors, Dave Fish, Alex O'Neill and Jamie Shenton, to strengthen the team and ensure long term stability. We continue to maintain significant reserves, and to control overheads and operating costs so that we are resilient to future economic challenges, whilst being able to deliver our programme of events and activities. Our financial strength has allowed us to commit resources to organising our international conference, Fatigue 2024, and we look forward to a successful event in June 2024.
In summary, the EIS has had a successful year of meeting its charitable aims and building its event portfolio, with a strong commitment to increased activity in 2023/24 and beyond.
FINANCIAL REVIEW
Financial position
The Society's financial position is recorded in detail in this Annual Report An amount of £26,665 has been carried forward to the new financial year as deferred income. This comprises credits for the planned exhibition in 2023. 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.
Page 1
ENGINEERING INTEGRITY SOCIETY
REPORT OF THE TRUSTEES FOR THE YEAR ENDED 31 MARCH 2023
FINANCIAL REVIEW
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 2023
Trustees
E R Cawte R J Hobson (resigned 14/11/22) 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 (resigned 8/8/22) Dr S Jeffs J Joy Dr A O'Neill P Roberts R Wood T Margereson S Payne K Vickers J Shenton M Cockrill (appointed 11/11/22) Dr H Cockings (appointed 6/7/22)
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 - resigned 14.11.2022 G Hemmings E R Cawte N W Thornton N J Richardson P Bailey A T O'Neill - appointed 23.06.2022 D G Fish - appointed 08.07.2022 J Shenton - appointed 14.11.2022
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 29 June 2023 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 2023.
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:
-
accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
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
-
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
Hollis and Co Limited Chartered Accountants 35 Wilkinson Street Sheffield South Yorkshire S10 2GB
24 July 2023
Page 4
ENGINEERING INTEGRITY SOCIETY
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2023
| Unrestricted fund Notes £ INCOME AND ENDOWMENTS FROM Charitable activities Conferences 35,143 Membership 21,622 Investment income 2 1,343 Other income 1,551 Total 59,659 EXPENDITURE ON Charitable activities Conferences 32,140 Other 30,977 Total 63,117 NET INCOME/(EXPENDITURE) (3,458) RECONCILIATION OF FUNDS Total funds brought forward 158,825 TOTAL FUNDS CARRIED FORWARD 155,367 |
Restricted fund £ - - - - - - - - - - - |
2023 Total funds £ 35,143 21,622 1,343 1,551 59,659 32,140 30,977 63,117 (3,458) 158,825 155,367 |
2022 Total funds £ 41,618 20,907 192 2,627 |
|---|---|---|---|
| 65,344 | |||
| 26,197 29,549 |
|||
| 55,746 | |||
| 9,598 149,227 |
|||
| 158,825 |
The notes form part of these financial statements
Page 5
ENGINEERING INTEGRITY SOCIETY
BALANCE SHEET 31 MARCH 2023
| Unrestricted fund Notes £ FIXED ASSETS Tangible assets 7 1,413 CURRENT ASSETS Debtors 8 6,327 Cash at bank 178,913 185,240 CREDITORS Amounts falling due within one year 9 (31,286) NET CURRENT ASSETS 153,954 TOTAL ASSETS LESS CURRENT LIABILITIES 155,367 NET ASSETS 155,367 FUNDS 10 Unrestricted funds TOTAL FUNDS |
Restricted fund £ - - - - - - - - |
2023 Total funds £ 1,413 6,327 178,913 185,240 (31,286) 153,954 155,367 155,367 155,367 155,367 |
2022 Total funds £ 1,208 11,210 181,610 192,820 (35,203) 157,617 158,825 158,825 158,825 158,825 |
|---|---|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.
The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2023 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 2023
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 29 June 2023 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 2023
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
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Interest receivable | 1,343 | 192 |
continued...
Page 8
ENGINEERING INTEGRITY SOCIETY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
3. NET INCOME/(EXPENDITURE)
Net income/(expenditure) is stated after charging/(crediting):
| 2023 | 2022 | |
|---|---|---|
| £ | £ | |
| Depreciation - owned assets | 639 | 464 |
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the year ended 31 March 2023 nor for the year ended 31 March 2022.
Trustees' expenses
Expenses totalling £107.10 (2022 £413.80) 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:
2023 2022 £ £ 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 2022 | 646 | 3,767 | 4,413 | |
| Additions | 672 | 172 | 844 | |
| At 31 March 2023 | 1,318 | 3,939 | 5,257 | |
| DEPRECIATION | ||||
| At 1 April 2022 | 474 | 2,731 | 3,205 | |
| Charge for year | 228 | 411 | 639 | |
| At 31 March 2023 | 702 | 3,142 | 3,844 | |
| NET BOOK VALUE | ||||
| At 31 March 2023 | 616 | 797 | 1,413 | |
| At 31 March 2022 | 172 | 1,036 | 1,208 |
continued...
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ENGINEERING INTEGRITY SOCIETY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
| 8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade debtors Other debtors 9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Trade creditors VAT Accrued expenses Deferred income 10. MOVEMENT IN FUNDS At 1/4/22 £ Unrestricted funds General fund 158,825 TOTAL FUNDS 158,825 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 59,659 TOTAL FUNDS 59,659 Comparatives for movement in funds At 1/4/21 £ Unrestricted funds General fund 149,227 TOTAL FUNDS 149,227 |
2023 2022 £ £ 2,681 8,103 3,646 3,107 6,327 11,210 2023 2022 £ £ 1,297 5,379 784 2,489 2,540 2,717 26,665 24,618 31,286 35,203 Net movement At in funds 31/3/23 £ £ (3,458) 155,367 (3,458) 155,367 Resources Movement expended in funds £ £ (63,117) (3,458) (63,117) (3,458) Net movement At in funds 31/3/22 £ £ 9,598 158,825 9,598 158,825 |
|---|---|
continued...
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ENGINEERING INTEGRITY SOCIETY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
10. MOVEMENT IN FUNDS - continued
Comparative net movement in funds, included in the above are as follows:
| Incoming | Resources | Movement | |
|---|---|---|---|
| resources | expended | in funds | |
| £ | £ | £ | |
| Unrestricted funds | |||
| General fund | 65,344 | (55,746) | 9,598 |
| TOTAL FUNDS | 65,344 | (55,746) | 9,598 |
A current year 12 months and prior year 12 months combined position is as follows:
| Unrestricted funds General fund TOTAL FUNDS |
At 1/4/21 £ 149,227 149,227 |
Net movement in funds £ 6,140 6,140 |
At 31/3/23 £ 155,367 |
|---|---|---|---|
| 155,367 |
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 | 125,003 | (118,863) | 6,140 |
| TOTAL FUNDS | 125,003 | (118,863) | 6,140 |
11. RELATED PARTY DISCLOSURES
There were no related party transactions for the year ended 31 March 2023.
continued...
Page 11
ENGINEERING INTEGRITY SOCIETY
NOTES TO THE FINANCIAL STATEMENTS - continued FOR THE YEAR ENDED 31 MARCH 2023
12. CONFERENCES AND EXHIBITIONS
| Title | Gross Income |
Expenses Net Income |
Expenses Net Income |
|---|---|---|---|
| £ | £ £ |
||
| Exhibition: Instrumentation, Analysis and Testing 17.05.2022 |
33,948.49 | 20,216.96 13,731.53 |
|
| Webinar: Uncertainty of Measurement | 59.50 | 462.00 (402.50) |
|
| Seminar: Importance of Repeatable and Reproducible Testing 26.04.2022 |
1,135.00 | 1,415.64 (280.64) |
|
| Advanced Engineering Show NEC 01.11.2022 |
0.00 | 1,904.79 (1,904.79) |
|
| Webinar: Non-contact Vibration Measurement 01.11.2022 |
0.00 | 214.50 (214.50) |
|
| Webinar: How to Crash 01.12.2022 |
0.00 | 55.00 (55.00) |
|
| Webinar: Suspension Analysis and Testing 02.03.2023 |
0.00 | 55.00 (55.00) |
|
| Young Engineers Seminars | 225.50 (225.50) |
||
| Peter Watson Prize 01.10.2022 |
1,295.90 (1,295.90) |
||
| 35,142.99 | 25,845.29 | 9,297.70 |
Page 12
ENGINEERING INTEGRITY SOCIETY
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023
| DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023 |
||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| INCOME AND ENDOWMENTS | ||
| Investment income | ||
| Interest receivable | 1,343 | 192 |
| Charitable activities | ||
| Conference income | 35,143 | 41,618 |
| Corporate membership | 21,375 | 20,363 |
| Personal membership | 247 | 544 |
| 56,765 | 62,525 | |
| Other income | ||
| Fraud debt repayment | - | 755 |
| Publishers Licensing Service | 1,551 | 1,872 |
| 1,551 | 2,627 | |
| Total incoming resources | 59,659 | 65,344 |
| EXPENDITURE | ||
| Charitable activities | ||
| Conference costs | 25,845 | 26,135 |
| Bad debts | (327) | (4,256) |
| EIS Journal | 6,142 | 4,249 |
| Archive storage costs | 480 | - |
| Cancelled events | - | 69 |
| 32,140 | 26,197 | |
| Other | ||
| Insurance | 3,306 | 3,544 |
| Telephone and data line | 411 | 487 |
| Postage and stationery | 257 | 132 |
| Marketing | 3,143 | 2,870 |
| Miscellaneous expenses | 4,988 | 4,932 |
| Computer consumables | 90 | 137 |
| Bank charges | 18 | 44 |
| iZettle costs | 148 | 134 |
| Depreciation of tangible fixed assets | 639 | 462 |
| 13,000 | 12,742 | |
| Support costs | ||
| Finance | ||
| Bank charges | 29 | 43 |
| Governance costs | ||
| Accountancy fees | 3,308 | 3,950 |
| Carried forward | 3,308 | 3,950 |
This page does not form part of the statutory financial statements
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ENGINEERING INTEGRITY SOCIETY
DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023
| DETAILED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2023 |
||
|---|---|---|
| 2023 | 2022 | |
| £ | £ | |
| Governance costs | ||
| Brought forward | 3,308 | 3,950 |
| Marketing and Events Manager | 13,174 | 12,549 |
| Council/committee meetings | 1,359 | 265 |
| Committee member expenses | 107 | - |
| 17,948 | 16,764 | |
| Total resources expended | 63,117 | 55,746 |
| Net (expenditure)/income | (3,458) | 9,598 |
This page does not form part of the statutory financial statements
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