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COMPANY REGISTRATION NUMBER: 02830671
CHARITY REGISTRATION NUMBER: 1023003
Sheffield Metallurgical and Engineering Association
Company Limited by Guarantee
Unaudited Financial Statements
30 June 2023
Sheffield Metallurgical and Engineering Association
Company Limited by Guarantee
Financial Statements
Year ended 30 June 2023
Pages
Trustees' annual report (incorporating the director's report)
1 to 3
Independent examiner's report to the trustees
4
Statement of financial activities (including income and expenditure account)
5
Statement of financial position
6
Notes to the financial statements
7 to 12
Sheffield Metallurgical and Engineering Association
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 30 June 2023
The trustees, who are also the directors for the purposes of company law, present their report and the unaudited financial statements of the charity for the year ended 30 June 2023 .
Reference and administrative details
Registered charity name
Sheffield Metallurgical and Engineering Association
Charity registration number
1023003
Company registration number
02830671
Principal office and registered
1 The Lawns
office
Sheffield
S11 9FL
England
The trustees
Dr K A Ridal
(Resigned 28 October 2022)
A P Backhouse
(Resigned 27 February 2024)
P Madin
(Resigned 27 February 2024)
M A Tomlinson
A Kirton-Vaughan
Dr C Mann
(Appointed 27 February 2024)
Dr P C Morgan
(Appointed 27 February 2024)
Dr N G Needham
(Appointed 27 February 2024)
R Ruddlestone
(Appointed 27 February 2024)
Company secretary
M A Tomlinson
Independent examiner
P Middleton
Structure, governance and management
Governing document
SMEA Limited is a charitable company limited by guarantee. It was incorporated with Memorandum and Articles of Association, on 22nd June 1993. The organisation also registered as a charity on 23rd June 1993.
The company has no share capital. The guarantee of each member is limited to £1.
Appointment of management committee
The directors of the company are also charity trustees for the purposes of charity law and under the company's Articles are known as members of the Management Committee.
Risk management
The trustees actively review the major risks which the charity faces on a regular basis and believe that maintaining reserves at current levels, combined with an annual review of the controls over key financial systems, will provide sufficient resources in the event of adverse conditions. The trustees have also examined other operational and business risks faced by the charity and confirm that they have established systems to mitigate the significant risks.
Related parties
The charity has one wholly owned trading subsidiary, SMEA Events Limited, a company incorporated in the UK. The trading activity principally relates to the organisation of conferences, lectures and other fundraising events. The results for the year of the trading subsidiary are incorporated into the consolidated statements of financial activities.
Objectives and activities
The principal objectives of the charity are to educate and instruct the public by the provision and furtherance of the study of metallurgical, engineering and allied industries in Sheffield and neighbouring areas within South Yorkshire and North East Derbyshire and generally to promote and develop all aspects of the science, technology and use of metals and the practice of metallurgy and to advance education, research and learning in these subjects.
Achievements and performance
The 2022-23 Lecture Programme returned to predominantly an in-person format however the option for people to join online continued. A series of 7 online lectures were given and attendances returned to ~85% of pre-COVID levels. Topics covering battery materials, advanced forging and forming, the circular economy of steel, natural materials and sustainable combustion systems for energy intensive industries.
The format was similar to recent years. The Lecture Programme was supplemented with an online Quiz Night and IOM3 Young Persons Lecture Competition local heat. Social and fundraising events returned to include Members Dinner, Works Visit, Guest Night. The Annual Dinner at the Cutlers' Hall also returned but attendance was poor at around half of pre-COVID levels. A major re-launch of this event in 2023 is planned.
SMEA continued to support Sheffield Museums Industrial Trust. Educational initiatives included awarding Student Prizes and the early careers focused Professional Development Fund.
Income from the Association's investment portfolio remained strong, but capital reduced due to global economic conditions resulting from the war in Ukraine and high inflation. A close working relationship has continued with Investec Wealth Management.
Financial review
The results for the year are shown in the subsequent pages of the financial statements. The trustees consider the financial position to be satisfactory.
Principal funding sources
The charitable company derives most of its income from listed investments and from its subsidiary company SMEA Events Limited. The whole of the profits of this company are remitted annually to SMEA under the Gift Aid scheme.
Investment policy
The charitable company holds a substantial portfolio of investment assets in the form of UK and overseas equities and funds. Appropriate professional advice is taken on a regular basis and the portfolio is periodically realigned to take account of the recommendations of the charitable company's investment advisors.
Reserves policy
The Management Committee has reviewed the reserves of the charity in line with Charity Commission guidance. This included analysing existing funds, considering possible future funding and taking in the expenditure to which the organisation will be committed. Should it become necessary to wind up the company, the reserves would enable the company to meet its obligations to beneficiaries, suppliers and others.
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
The trustees' annual report was approved on 27 March 2024 and signed on behalf of the board of trustees by:
M A Tomlinson
Charity Secretary
Sheffield Metallurgical and Engineering Association
Company Limited by Guarantee
Independent Examiner's Report to the Trustees of Sheffield Metallurgical and Engineering Association
Year ended 30 June 2023
I report to the trustees on my examination of the financial statements of Sheffield Metallurgical and Engineering Association ('the charity') for the year ended 30 June 2023.
Responsibilities and basis of report
As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements 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 the 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 charity as required by section 386 of the 2006 Act; or
2. the financial statements do not accord with those records; or
3. the financial statements 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 financial statements 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.
P Middleton Independent Examiner
Allen, West and Foster
Chartered Accountants
2 Broomgrove Road
Sheffield
S10 2LR
27 March 2024
Sheffield Metallurgical and Engineering Association
Company Limited by Guarantee
Statement of Financial Activities
(including income and expenditure account)
Year ended 30 June 2023
2023
2022
Unrestricted funds
Total funds
Total funds
Note
£
£
£
Income and endowments
Donations and legacies
5
1,536
1,536
551
Investment income
6
22,228
22,228
19,353
-------
-------
-------
Total income
23,764
23,764
19,904
-------
-------
-------
Expenditure
Expenditure on raising funds:
Costs of raising donations and legacies
7
2,775
2,775
2,956
Expenditure on charitable activities
8,9
14,293
14,293
10,999
-------
-------
-------
Total expenditure
17,068
17,068
13,955
-------
-------
-------
Net losses on investments
11
( 14,157)
( 14,157)
( 113,965)
-------
-------
---------
Net expenditure and net movement in funds
( 7,461)
( 7,461)
( 108,016)
-------
-------
---------
Reconciliation of funds
Total funds brought forward
813,242
813,242
921,258
---------
---------
---------
Total funds carried forward
805,781
805,781
813,242
---------
---------
---------
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
Sheffield Metallurgical and Engineering Association
Company Limited by Guarantee
Statement of Financial Position
30 June 2023
2023
2022
Note
£
£
Fixed assets
Intangible assets
15
500
500
Investments
16
753,849
771,316
---------
---------
754,349
771,816
Current assets
Debtors
18
6,163
2,570
Cash at bank and in hand
47,219
41,100
-------
-------
53,382
43,670
Creditors: amounts falling due within one year
19
1,950
2,244
-------
-------
Net current assets
51,432
41,426
---------
---------
Total assets less current liabilities
805,781
813,242
---------
---------
Net assets
805,781
813,242
---------
---------
Funds of the charity
Unrestricted funds
805,781
813,242
---------
---------
Total charity funds
20
805,781
813,242
---------
---------
For the year ending 30 June 2023 the charity was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.
These financial statements were approved by the board of trustees and authorised for issue on 27 March 2024 , and are signed on behalf of the board by:
A Kirton-Vaughan
Trustee
Sheffield Metallurgical and Engineering Association
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 30 June 2023
1. General information
The charity is a public benefit entity and a private company limited by guarantee, registered in England and Wales and a registered charity in England and Wales. The address of the registered office is 1 The Lawns, Sheffield, S11 9FL, England.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', the 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) (Charities SORP (FRS 102)) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through income or expenditure.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
There are no material uncertainties about the charity's ability to continue as a going concern as there are sufficient cash reserves and unrestricted funds to continue for a period of at least 12 months post the balance sheet date despite the ongoing Covid-19 pandemic.
Disclosure exemptions
In line with the Charities SORP (FRS102) Update Bulletin 1, no cash flow statement has been presented for the company.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.
Fund accounting
Unrestricted funds are available for use at the discretion of the trustees to further any of the charity's purposes. Designated funds are unrestricted funds earmarked by the trustees for particular future project or commitment. Restricted funds are subjected to restrictions on their expenditure declared by the donor or through the terms of an appeal, and fall into one of two sub-classes: restricted income funds or endowment funds.
Incoming resources
All incoming resources are included in the statement of financial activities when entitlement has passed to the charity; it is probable that the economic benefits associated with the transaction will flow to the charity and the amount can be reliably measured. The following specific policies are applied to particular categories of income: - income from donations or grants is recognised when there is evidence of entitlement to the gift, receipt is probable and its amount can be measured reliably. - legacy income is recognised when receipt is probable and entitlement is established. - income from donated goods is measured at the fair value of the goods unless this is impractical to measure reliably, in which case the value is derived from the cost to the donor or the estimated resale value. Donated facilities and services are recognised in the accounts when received if the value can be reliably measured. No amounts are included for the contribution of general volunteers. - income from contracts for the supply of services is recognised with the delivery of the contracted service. This is classified as unrestricted funds unless there is a contractual requirement for it to be spent on a particular purpose and returned if unspent, in which case it may be regarded as restricted.
Resources expended
Expenditure is recognised on an accruals basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is classified under headings of the statement of financial activities to which it relates: - expenditure on raising funds includes the costs of all fundraising activities, events, non-charitable trading activities, and the sale of donated goods. - expenditure on charitable activities includes all costs incurred by a charity in undertaking activities that further its charitable aims for the benefit of its beneficiaries, including those support costs and costs relating to the governance of the charity apportioned to charitable activities. - other expenditure includes all expenditure that is neither related to raising funds for the charity nor part of its expenditure on charitable activities.
All costs are allocated to expenditure categories reflecting the use of the resource. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs are apportioned between the activities they contribute to on a reasonable, justifiable and consistent basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.
Investments
Listed fixed assets investments are shown in the balance sheet at current market value. Realised and unrealised gains arising from investments are shown in the statement of financial activities.
Investment in the subsidiary company is stated at cost.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the amount receivable or payable including any related transaction costs, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Current assets and current liabilities are subsequently measured at the cash or other consideration expected to be paid or received and not discounted. Debt instruments are subsequently measured at amortised cost. Where investments in shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in income and expenditure. All other such investments are subsequently measured at cost less impairment. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised under the appropriate heading in the statement of financial activities in which the initial gain was recognised. Any reversals of impairment are recognised immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
4. Limited by guarantee
The company is a company limited by guarantee not having a share capital. Every member of the company undertakes to contribute a sum not exceeding £1 if the company has insufficient assets to discharge its liabilities in the event of winding up.
Accordingly, the company has no share capital and no reconciliation of movements in shareholders' funds has been presented.
5. Donations and legacies
Unrestricted Funds
Total Funds 2023
Unrestricted Funds
Total Funds 2022
£
£
£
£
Donations
Institute of Materials
1,000
1,000
Other donations
10
10
13
13
Subscriptions
Subscriptions
526
526
538
538
------
------
----
----
1,536
1,536
551
551
------
------
----
----
6. Investment income
Unrestricted Funds
Total Funds 2023
Unrestricted Funds
Total Funds 2022
£
£
£
£
Income from listed investments
22,191
22,191
19,352
19,352
Bank interest
37
37
1
1
-------
-------
-------
-------
22,228
22,228
19,353
19,353
-------
-------
-------
-------
The charity has one wholly owned trading subsidiary, SMEA Events Limited, a company incorporated in the UK. The trading activity principally relates to the organisation of conferences, lectures and other fundraising events.
7. Costs of raising donations and legacies
Unrestricted Funds
Total Funds 2023
Unrestricted Funds
Total Funds 2022
£
£
£
£
Costs of raising donations and legacies - Donations
2,775
2,775
2,956
2,956
------
------
------
------
8. Expenditure on charitable activities by fund type
Unrestricted Funds
Total Funds 2023
Unrestricted Funds
Total Funds 2022
£
£
£
£
Support costs
14,293
14,293
10,999
10,999
-------
-------
-------
-------
9. Expenditure on charitable activities by activity type
Support costs
Total funds 2023
Total fund 2022
£
£
£
Governance costs
14,293
14,293
10,999
-------
-------
-------
10. Taxation
The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.
11. Net losses on investments
Unrestricted Funds
Total Funds 2023
Unrestricted Funds
Total Funds 2022
£
£
£
£
Gains/(losses) on listed investments
( 14,157)
( 14,157)
( 113,965)
( 113,965)
-------
-------
---------
---------
12. Independent examination fees
2023
2022
£
£
Fees payable to the independent examiner for:
Independent examination of the financial statements
975
600
----
----
13. Staff costs
There were no employees during the financial year (2022: Nil).
14. Trustee remuneration and expenses
Expenses reimbursed to the treasurer and secretary were £Nil (2022: £Nil).
None of the trustees or any related party received any remuneration (2022: £Nil).
15. Intangible assets
President's badge
£
Cost
At 1 July 2022 and 30 June 2023
500
----
Amortisation
At 1 July 2022 and 30 June 2023
----
Carrying amount
At 30 June 2023
500
----
At 30 June 2022
500
----
16. Investments
Listed investments
Shares in group undertakings
Total
£
£
£
Cost or valuation
At 1 July 2022
771,311
5
771,316
Additions
Disposals
(3,310)
(3,310)
Fair value movements
(14,157)
(14,157)
---------
----
---------
At 30 June 2023
753,844
5
753,849
---------
----
---------
Impairment
At 1 July 2022 and 30 June 2023
----
---------
Carrying amount
At 30 June 2023
753,844
5
753,849
---------
----
---------
At 30 June 2022
771,311
5
771,316
---------
----
---------
All investments shown above are held at valuation.
Financial assets held at fair value
UK listed investments were valued at the year end by Investec Wealth and Investment Limited on the basis of mid-market prices from the appropriate stock exchange and are held by the charity primarily to provide investment return.
17. Investment entities
Subsidiaries and other investments
The company holds 100% of the share capital (consisting of five £1 ordinary shares) of SMEA Events Limited, a company registered in England and Wales, which is solely involved in fund raising for SMEA. This company has net assets at 30 June 2023 of £412 (2022 - £2,748). Where applicable the whole of the profits of this company are remitted to SMEA under the Gift Aid scheme.
18. Debtors
2023
2022
£
£
Amounts owed by group undertakings
511
Other debtors
5,652
2,570
------
------
6,163
2,570
------
------
19. Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
1,269
Accruals and deferred income
1,950
975
------
------
1,950
2,244
------
------
20. Analysis of charitable funds
Unrestricted funds
At 1 July 2022
Income
Expenditure
Gains and losses
At 30 June 2023
£
£
£
£
£
Unrestricted funds
813,242
23,764
(17,068)
(14,157)
805,781
---------
-------
-------
-------
---------
At 1 July 2021
Income
Expenditure
Gains and losses
At 30 June 2022
£
£
£
£
£
Unrestricted funds
921,258
19,904
(13,955)
(113,965)
813,242
---------
-------
-------
---------
---------
21. Analysis of net assets between funds
Unrestricted Funds
Total Funds 2023
£
£
Intangible assets
500
500
Investments
753,849
753,849
Current assets
53,382
53,382
Creditors less than 1 year
(1,950)
(1,950)
---------
---------
Net assets
805,781
805,781
---------
---------
Unrestricted Funds
Total Funds 2022
£
£
Intangible assets
500
500
Investments
771,316
771,316
Current assets
43,670
43,670
Creditors less than 1 year
(2,244)
(2,244)
---------
---------
Net assets
813,242
813,242
---------
---------
22. Related parties
The directors of the company also have control over the company's subsidiary undertaking, SMEA Events Limited. As permitted, transactions with this company have not been disclosed in these financial statements as it is a 100% subsidiary.