**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:
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
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...
Page 9
**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...
Page 10
**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
Page 13
**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
Page 14