1 false false false false false false true false false false false false true true No description of principal activity 2022-08-01 Sage Accounts Production Advanced 2023 - FRS102_2023_Charity xbrli:pure xbrli:shares iso4217:GBP SC000358 2022-08-01 2023-07-31 SC000358 2023-07-31 SC000358 2022-07-31 SC000358 2021-08-01 2022-07-31 SC000358 2022-07-31 SC000358 2021-07-31 SC000358 core:FurnitureFittings 2022-08-01 2023-07-31 SC000358 bus:LeadAgentIfApplicable 2022-08-01 2023-07-31 SC000358 char:Trustee1 2022-08-01 2023-07-31 SC000358 char:Trustee2 2022-08-01 2023-07-31 SC000358 char:Trustee3 2022-08-01 2023-07-31 SC000358 char:Trustee4 2022-08-01 2023-07-31 SC000358 char:Trustee5 2022-08-01 2023-07-31 SC000358 char:Trustee6 2022-08-01 2023-07-31 SC000358 char:Trustee7 2022-08-01 2023-07-31 SC000358 char:Trustee9 2022-08-01 2023-07-31 SC000358 char:Trustee10 2022-08-01 2023-07-31 SC000358 char:Trustee11 2022-08-01 2023-07-31 SC000358 char:Trustee12 2022-08-01 2023-07-31 SC000358 char:Trustee13 2022-08-01 2023-07-31 SC000358 char:Trustee14 2022-08-01 2023-07-31 SC000358 char:Trustee15 2022-08-01 2023-07-31 SC000358 char:Trustee16 2022-08-01 2023-07-31 SC000358 char:Trustee17 2022-08-01 2023-07-31 SC000358 char:Trustee18 2022-08-01 2023-07-31 SC000358 char:Trustee19 2022-08-01 2023-07-31 SC000358 char:Trustee20 2022-08-01 2023-07-31 SC000358 bus:CompanySecretary1 2022-08-01 2023-07-31 SC000358 char:Trustee5 2023-07-31 SC000358 char:Trustee7 2023-07-31 SC000358 char:Trustee9 2023-07-31 SC000358 char:Trustee15 2023-07-31 SC000358 char:Trustee17 2023-07-31 SC000358 char:TotalUnrestrictedFunds 2022-07-31 SC000358 char:TotalRestrictedIncomeFunds 2022-07-31 SC000358 char:TotalUnrestrictedFunds 2023-07-31 SC000358 char:TotalRestrictedIncomeFunds 2023-07-31 SC000358 char:TotalRestrictedIncomeFunds 2022-07-31 SC000358 char:TotalUnrestrictedFunds 2022-07-31 SC000358 char:TotalUnrestrictedFunds 2022-08-01 2023-07-31 SC000358 char:TotalRestrictedIncomeFunds 2022-08-01 2023-07-31 SC000358 char:TotalUnrestrictedFunds 2021-08-01 2022-07-31 SC000358 char:TotalRestrictedIncomeFunds 2021-08-01 2022-07-31 SC000358 core:WithinOneYear 2023-07-31 SC000358 core:WithinOneYear 2022-07-31 SC000358 core:FurnitureFittings 2022-07-31 SC000358 core:FurnitureFittings 2023-07-31 SC000358 core:FurnitureFittings 2022-07-31 SC000358 bus:SmallEntities 2022-08-01 2023-07-31 SC000358 bus:AuditExemptWithAccountantsReport 2022-08-01 2023-07-31 SC000358 bus:SmallCompaniesRegimeForAccounts 2022-08-01 2023-07-31 SC000358 bus:PrivateLimitedCompanyLtd 2022-08-01 2023-07-31 SC000358 bus:FullAccounts 2022-08-01 2023-07-31 SC000358 core:ComputerEquipment 2022-08-01 2023-07-31 SC000358 core:ComputerEquipment 2022-07-31
COMPANY REGISTRATION NUMBER: SC000358
CHARITY REGISTRATION NUMBER: SC011583
The Institution of Engineers in Scotland
Company Limited by Guarantee
Unaudited Financial Statements
31 July 2023
The Institution of Engineers in Scotland
Company Limited by Guarantee
Financial Statements
Year ended 31 July 2023
Page
Trustees' annual report (incorporating the director's report)
1
Independent examiner's report to the trustees
10
Statement of financial activities (including income and expenditure account)
12
Statement of financial position
13
Notes to the financial statements
14
The Institution of Engineers in Scotland
Company Limited by Guarantee
Trustees' Annual Report (Incorporating the Director's Report)
Year ended 31 July 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 31 July 2023 .
Reference and administrative details
Registered charity name
The Institution of Engineers in Scotland
Charity registration number
SC011583
Company registration number
SC000358
Principal office and registered
Scottish Engineering Suite
office
105 West George Street
Glasgow
G2 1QL
The trustees
Mr R Philbrick - President
Mr G Fletcher - Vice President
Dr A Pearson - Secretary
Mr D M Westmore - Treasurer
Ms K R Dinardo
Prof I A MacLeod
(Died 5 June 2023)
Dr G G T Masterton OBE
Mr R Harley
(Retired 21 April 2023)
Ms P Pappas
(Retired 21 April 2023)
Dr C Marsh
Prof I Arbon
Mr G Bibby
Mr G Colville
Prof E Oterkus
Prof T Buggy
(Retired 21 April 2023)
Mr P Sweeney
Mr J Hayden
(Retired 21 April 2023)
Dr M Robb
Prof Z Yu
Mr R Horrell
Mr M Barr
Mr R Murphy
(Appointed 1 April 2023)
Dr A Heikal
(Appointed 1 April 2023)
Company secretary
Dr A Pearson
Independent examiner
Andrew B Wilson
Mercantile Chambers
53 Bothwell Street
Glasgow
G2 6TB
Bankers
Bank of Scotland
235 Sauchiehall Street
Glasgow
G2 3EY
Structure, governance and management
The Institution of Engineers in Scotland is constituted as a company limited by guarantee and recognised as a charity by the Office of Scottish Charities Regulator and HM Revenue and Customs. The company is governed by its Council who sets overall objectives and policies as well as overseeing and controlling activities. Day to day management of the company is delegated by the Council to an Executive committee. The governing documents of the company are contained within a memorandum and articles of of association. The memorandum and articles of association contain provision for the appointment of 15 members of council. Vacancies on the Council are filled by election of members at the Annual General Meeting.
The company has one wholly owned dormant subsidiary company, The Institution of Engineers and Shipbuilders in Scotland Limited.
Objectives and activities
For members and, other engineers and those who aspire to be engineers: we organise activities and events that members enjoy and from which they benefit. We educate and stimulate engineers through our multidisciplinary approach, and we promote engineering as a career.
For society and the environment: we emphasise the principle that engineering methodology should be used for solving complex problems. We encourage greater understanding of how engineering can help to resolve issues facing society and the environment, and we share the excitement and inspiration of engineering with all sectors of society.
Our Activities
Our evening talks offer a broad selection of topics and speakers from across the engineering spectrum. The talks are suitable for all levels within the engineering profession and for individuals with an interest and curiosity about engineering matters. Attendance at lectures provides recognised CPD.
Each year we publish a journal that includes papers and articles that discuss important issues from across the engineering sector.
We promote engineering to the public through the Scottish Engineering Hall of Fame, which showcases the lives of engineers who have made important contributions to Engineering. We also promote engineering as a career through our profeng.org website, a one-stop resource for aspiring engineers. We organise talks at schools and our Education fund supports a range of initiatives that relate to engineering.
We publish strategy reports that summarise important issues in relation to engineering and society.
Our annual James Watt Dinner, when we announce the inductees to the Scottish Engineering Hall of Fame, is one of the highlights of the engineering community in Scotland.
Achievements and performance
Lecture Programme
Tuesday 20th September 2022
Presidential Address
Making Machines Matters: learning what you don't know!
Dick Philbrick
Tuesday 11th October 2022
Scotland in Space
Mick O'Connor
Tuesday 8th November 2022
The Rankine Bicentenary Lecture
Green Ammonia as a Global Reserve Fuel - Making the end of Oil and Gas Dr Mike Mason
Tuesday 6th December 2022
Joint meeting with RINA
How do we de-carbonise shipping?
Panel Conversation
Tuesday 10th January 2023
Joint meeting with IMarEST
Orbital - Helping turn the tide on climate change.
Andrew Scott
Tuesday 14th February 2023
Building Passivhaus schools in Scotland
Jonathan Hines
Tuesday 14th March 2023
Quantum Computing - how to build a REALLY cool computer
Dr Viv Kendon
Tuesday 18th April 2023
Joint meeting with IStructE
Retrofitting buildings
Steve Fernandez
Other Activities
Honorary Members
Prof Ian Ritchie was awarded Honorary Fellowship of the Institution following his induction into the Scottish Engineering Hall of Fame.
Scottish Engineering Hall of Fame
The Scottish Engineering Hall of Fame announcement of 2022 inductees was announced at the James Watt Dinner on Friday 7th October 2022.
Energy Strategy Group
The group continues its efforts to raise the question of electricity generation strategy.
Professional Engineering Group
The group promotes professional engineering as a very worthwhile career for young people. Activities have been curtailed due to the pandemic.
The Education Fund
The Education Fund was able to support the work of:
- Primary Engineer, the organisation that promotes the engineering project work in Primary and Secondary Schools - FemEng
- Student prizes
James Watt Dinner
The annual James Watt Dinner was held on Friday 7th Oct 2022.
First President of the Institution William John Macquorn Rankine
In 2020 a collection was started to cover the cost of re-instating Macquorn Rankine's gravestone which had fallen into disrepair. While the Institution previously replaced the gravestone in the 1950s, unfortunately that stone had fallen and broken into three pieces, downhill from the site of the grave.
Funds were boosted in 2023 by a grant from Glasgow City Council, which then allowed work to proceed to replace the headstone with a new one using the wording from the original. The stone was placed at the grave site in Oct 2023. It is hoped to hold a service of dedication in 2024.
A blue plaque and information board commemorating where Rankine lived for a number of years was given to Haggs Castle Golf Club, the site (and part of the original building of Home Farm) where Rankine lived with his parents for several years.
Membership
The Council continues to investigate increasing the membership numbers which are detailed below.
Publications
The Institution published news bulletins over the last year. The Institution published Vol 161 of the Transactions Journal.
Representation
Mr Graeme Fletcher is the IES representative on the Technical Committee of Lloyd's Register.
Other Bodies
The Institution has been able to offer support for other engineering organisations by publicising events and news on the IES website. The Institution continues to support the work of the Primary Engineer with a donation of £1,500.
Financial review
The results for the year to 31st July 2023 showed that careful management of our expenditure resulted in a break-even position for the period. Council wishes to record their thanks to Rathbones for their management of the funds. The instruction regarding the IES portfolio has been continued unchanged.
Financial Instruments
The company's principal liquid financial assets are its bank balances and investments. The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings assigned by international credit rating agencies. The company does not enter into any derivative financial instruments. The investment portfolio is spread across a range of listed securities.
Risk Management
The Council is advised by its independent financial advisors, Rathbones, who has conducted its own review of the major risks to which the charity is exposed, and systems have been established to mitigate those risks. External risks have been addressed in the strategic plan, which allows for the diversification and development of activities to mitigate the identified risks. Internal risks are minimised by the implementation of procedures for authorisation of all transactions and projects to ensure consistent quality of delivery for all operational aspects of the charitable company. These procedures are periodically reviewed to ensure that they still meet the needs of the charity.
Going Concern
The company has financial resources, both liquid and investments, that can be readily converted to cash. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
Membership Roll
The membership profile is presented in the following table:
2023 2022
Honorary Fellows 17 16
Life Members 2 2
Fellows 159 163
Members 51 42
Associates 15 18
Affiliates 183 176
Retired Fellows 64 76
Total 491 493
Plans for future periods
The Institution intends to continue activities such as:
- providing a high quality lecture programme,
- publishing the annual Journal,
- publishing regular bulletins of news and information,
- promoting to the public the importance of professional engineering in general and multidisciplinary working in particular, - promoting to young people the excellent career opportunities in professional engineering, - providing financial support for educational activities, - giving information and advice on energy matters.
In addition, the Institution intends to develop its activities by:
- extending its support for educational activities in general,
- promoting closer ties with other engineering Institutions,
- seeking to extend the membership, especially to younger engineers,
- offer visits to sites of interest to members,
- responding to government requests for consultation,
- raising our public profile.
Responsibilities of the council
The Council (whose members are also the Directors of the Institution of Engineers and Shipbuilders in Scotland for the purposes of company law) is responsible for preparing the Councillors' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Council to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the Council is required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation.
The Council is responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable it to ensure that the financial statements comply with the Companies Act 2006. The Council is also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 17 April 2024 and signed on behalf of the board of trustees by:
Mr R Philbrick - President
Trustee
The Institution of Engineers in Scotland
Company Limited by Guarantee
Independent Examiner's Report to the Trustees of The Institution of Engineers in Scotland
Year ended 31 July 2023
I report to the trustees on my examination of the financial statements of The Institution of Engineers in Scotland ('the charity') for the year ended 31 July 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 Charities and Trustee Investment (Scotland) Act 2005 (‘the 2005 Act’), the Charities Accounts (Scotland) Regulations 2006 (as amended) and the Companies Act 2006 (‘the 2006 Act’). You are satisfied that the accounts of the company are not required by charity or company law to be audited and have chosen instead to have an independent examination.
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 carried out under section 44(1)(c) of the 2005 Act. In carrying out my examination I have followed the requirements of Regulation 11 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Independent examiner's statement
Since the charity is required by company law to prepare its accounts on an accruals basis and is registered as a charity in Scotland your examiner must be a member of a body listed in Regulation 11(2) of the Charities Accounts (Scotland) Regulations 2006 (as amended). I can confirm that I am qualified to undertake the examination because I am a registered member of ICAS which is one of the listed bodies.
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, section 44(1)(a) of the 2005 Act and Regulation 4 of the 2006 Accounts Regulations; or
2. the financial statements do not accord with those records or with the accounting requirements of Regulation 8 of the Charities Accounts (Scotland) Regulations 2006; 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.
Andrew B Wilson Independent Examiner
Mercantile Chambers 53 Bothwell Street Glasgow G2 6TB
19 April 2024
The Institution of Engineers in Scotland
Company Limited by Guarantee
Statement of Financial Activities
(including income and expenditure account)
Year ended 31 July 2023
2023
2022
Unrestricted funds
Restricted funds
Total funds
Total funds
Note
£
£
£
£
Income and endowments
Donations and legacies
5
18,909
1,418
20,327
19,889
Other trading activities
6
18,688
18,688
12,830
Investment income
7
43,300
43,300
42,963
--------
-------
--------
--------
Total income
80,897
1,418
82,315
75,682
--------
-------
--------
--------
Expenditure
Expenditure on charitable activities
8,9
( 72,681)
( 5,223)
( 77,904)
( 72,657)
--------
-------
--------
--------
Total expenditure
( 72,681)
( 5,223)
( 77,904)
( 72,657)
--------
-------
--------
--------
Net losses on investments
11
( 59,788)
( 59,788)
( 10,577)
--------
-------
--------
--------
Net expenditure
( 51,572)
( 3,805)
( 55,377)
( 7,552)
--------
-------
--------
--------
Transfers between funds
(2,990)
2,990
--------
-------
--------
--------
Net movement in funds
( 54,562)
( 815)
( 55,377)
( 7,552)
Reconciliation of funds
Total funds brought forward
1,241,415
67,754
1,309,169
1,316,721
------------
--------
------------
------------
Total funds carried forward
1,186,853
66,939
1,253,792
1,309,169
------------
--------
------------
------------
The statement of financial activities includes all gains and losses recognised in the year.
All income and expenditure derive from continuing activities.
The Institution of Engineers in Scotland
Company Limited by Guarantee
Statement of Financial Position
31 July 2023
2023
2022
Note
£
£
£
Fixed assets
Tangible fixed assets
16
2,682
3,353
Investments
17
1,212,094
1,278,275
------------
------------
1,214,776
1,281,628
Current assets
Debtors
18
5,197
5,182
Cash at bank and in hand
41,277
27,466
--------
--------
46,474
32,648
Creditors: amounts falling due within one year
19
7,458
5,107
--------
--------
Net current assets
39,016
27,541
------------
------------
Total assets less current liabilities
1,253,792
1,309,169
------------
------------
Net assets
1,253,792
1,309,169
------------
------------
Funds of the charity
Restricted funds
66,939
67,754
Unrestricted funds
1,186,853
1,241,415
------------
------------
Total charity funds
21
1,253,792
1,309,169
------------
------------
For the year ending 31 July 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 17 April 2024 , and are signed on behalf of the board by:
Mr R Philbrick - President
Trustee
The Institution of Engineers in Scotland
Company Limited by Guarantee
Notes to the Financial Statements
Year ended 31 July 2023
1. General information
The charity is a public benefit entity and a private company limited by guarantee, registered in Scotland and a registered charity in Scotland. The address of the registered office is Scottish Engineering Suite, 105 West George Street, Glasgow, G2 1QL.
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.
Consolidation
The charity is not required to prepare consolidated accounts in accordance with the Charities Accounts (Scotland) Regulations 2006 (as amended), and has taken advantage of the option not to prepare consolidated financial statements contained in Section 398 of the Companies Act 2006 on the basis that the charity and its subsidiary undertakings comprise a small group.
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. No material judgements were made in the preparation of the accounts presented herein. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are limited to estimations of depreciation and recoverable amounts of tangible fixed assets.
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 accounted for on an accruals basis. All costs have been attributed to one of the functional categories of resources expended in the Statement of Financial Activities (SOFA). The charity is not registered for VAT and accordingly expenditure is shown gross of irrecoverable VAT.
Tangible assets
All fixed assets are initially recorded at cost. Individual fixed assets having a value of less than £500 at the date of acquisition are not capitalised and instead are written off to the Statement of Financial Activities.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures & Fittings
-
20% reducing balance
Equipment
-
20% reducing balance
Investments
Unlisted equity investments are initially recorded at cost, and subsequently measured at fair value. If fair value cannot be reliably measured, assets are measured at cost less impairment.
Listed investments are measured at fair value with changes in fair value being recognised in income or expenditure.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Financial instruments
A financial asset or a financial liability is recognised only when the charity 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. 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 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. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in the statement of financial activities, with the exception of hedging instruments in a designated hedging relationship.
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. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. 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.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
4. Limited by guarantee
The company is limited by Guarantee, as such, on winding up each member's liability is restricted to £10.
5. Donations and legacies
Unrestricted Funds
Restricted Funds
Total Funds 2023
£
£
£
Donations
Donations - Gifts & Bequests
195
118
313
Grants
Glasgow City Council
1,300
1,300
Subscriptions
Member subscriptions
18,714
18,714
--------
-------
--------
18,909
1,418
20,327
--------
-------
--------
Unrestricted Funds
Restricted Funds
Total Funds 2022
£
£
£
Donations
Donations - Gifts & Bequests
235
1,650
1,885
Grants
Glasgow City Council
Subscriptions
Member subscriptions
18,004
18,004
--------
-------
--------
18,239
1,650
19,889
--------
-------
--------
6. Other trading activities
Unrestricted Funds
Total Funds 2023
Unrestricted Funds
Total Funds 2022
£
£
£
£
James Watt Dinner surplus
4,586
4,586
Sale of technical papers
652
652
90
90
Sale of administrative services
13,200
13,200
12,240
12,240
Other income
250
250
500
500
--------
--------
--------
--------
18,688
18,688
12,830
12,830
--------
--------
--------
--------
7. Investment income
Unrestricted Funds
Total Funds 2023
Unrestricted Funds
Total Funds 2022
£
£
£
£
Income from listed investments
43,300
43,300
42,963
42,963
--------
--------
--------
--------
8. Expenditure on charitable activities by fund type
Unrestricted Funds
Restricted Funds
Total Funds 2023
£
£
£
Promotion and advancement of engineering as a subject and career
70,761
5,223
75,984
Support costs
1,920
1,920
--------
-------
--------
72,681
5,223
77,904
--------
-------
--------
Unrestricted Funds
Restricted Funds
Total Funds 2022
£
£
£
Promotion and advancement of engineering as a subject and career
66,347
4,450
70,797
Support costs
1,860
1,860
--------
-------
--------
68,207
4,450
72,657
--------
-------
--------
9. Expenditure on charitable activities by activity type
Activities undertaken directly
Grant funding of activities
Support costs
Total funds 2023
Total fund 2022
£
£
£
£
£
Promotion and advancement of engineering as a subject and career
73,434
2,550
75,984
70,797
Governance costs
1,920
1,920
1,860
--------
-------
-------
--------
--------
73,434
2,550
1,920
77,904
72,657
--------
-------
-------
--------
--------
10. Analysis of grants
2023
2022
£
£
Grants to institutions
Grants to institutions
2,250
2,250
Grants to individuals
Grants to individuals
300
2,200
-------
-------
Total grants
2,550
4,450
-------
-------
11. Net losses on investments
Unrestricted Funds
Total Funds 2023
Unrestricted Funds
Total Funds 2022
£
£
£
£
Gains/(losses) on investments
( 59,788)
( 59,788)
( 10,577)
( 10,577)
--------
--------
--------
--------
12. Net expenditure
Net expenditure is stated after charging/(crediting):
2023
2022
£
£
Depreciation of tangible fixed assets
671
838
----
----
13. Independent examination fees
2023
2022
£
£
Fees payable to the independent examiner for:
Independent examination of the financial statements
1,920
1,860
-------
-------
14. Staff costs
The total staff costs and employee benefits for the reporting period are analysed as follows:
2023
2022
£
£
Wages and salaries
31,862
28,510
Employer contributions to pension plans
926
914
--------
--------
32,788
29,424
--------
--------
The average head count of employees during the year was 1 (2022: 1 ). The average number of full-time equivalent employees during the year is analysed as follows:
2023
2022
No.
No.
Number of staff - administrative
1
1
----
----
No employee received employee benefits of more than £60,000 during the year (2022: Nil).
15. Trustee remuneration and expenses
No remuneration or other benefits from employment with the charity or a related entity were received by the trustees in the year or prior year.
16. Tangible fixed assets
Fixtures and fittings
Equipment
Total
£
£
£
Cost
At 1 August 2022
6,549
2,888
9,437
Disposals
( 2,888)
( 2,888)
-------
-------
-------
At 31 July 2023
6,549
6,549
-------
-------
-------
Depreciation
At 1 August 2022
3,196
2,888
6,084
Charge for the year
671
671
Disposals
( 2,888)
( 2,888)
-------
-------
-------
At 31 July 2023
3,867
3,867
-------
-------
-------
Carrying amount
At 31 July 2023
2,682
2,682
-------
-------
-------
At 31 July 2022
3,353
3,353
-------
-------
-------
17. Investments
Listed investments
Shares in group undertakings
Total
£
£
£
Cost or valuation
At 1 August 2022
1,278,273
2
1,278,275
Additions
12,346
12,346
Disposals
(18,917)
(18,917)
Fair value movements
(59,610)
(59,610)
------------
----
------------
At 31 July 2023
1,212,092
2
1,212,094
------------
----
------------
Impairment
At 1 August 2022 and 31 July 2023
----
------------
Carrying amount
At 31 July 2023
1,212,092
2
1,212,094
------------
----
------------
At 31 July 2022
1,278,273
2
1,278,275
------------
----
------------
All investments shown above are held at valuation.
Financial assets held at fair value
Listed Investments
All listed investments are recognised at the stock exchange value at close of trading on the balance sheet date, which is taken to be an appropriate measure of fair value.
Shares in group undertakings
The company owns 100% of the issued share capital of The Institution of Engineers and Shipbuilders in Scotland Limited (SC189633), formerly known as The Institution of Engineers in Scotland Limited, a company registered in Scotland. The Company was dormant throughout the current and preceding year.
18. Debtors
2023
2022
£
£
Prepayments and accrued income
5,197
5,182
-------
-------
19. Creditors: amounts falling due within one year
2023
2022
£
£
Accruals and deferred income
7,458
5,107
-------
-------
20. Pensions and other post retirement benefits
Defined contribution plans
The amount recognised in income or expenditure as an expense in relation to defined contribution plans was £ 926 (2022: £ 914 ).
21. Analysis of charitable funds
Unrestricted funds
At 1 Aug 2022
Income
Expenditure
Transfers
Gains and losses
At 31 Jul 2023
£
£
£
£
£
£
General Fund
1,241,415
80,897
(72,681)
(2,990)
(59,788)
1,186,853
------------
--------
--------
-------
--------
------------
At 1 Aug 2021
Income
Expenditure
Transfers
Gains and losses
At 31 Jul 2022
£
£
£
£
£
£
General Fund
1,248,967
74,032
(68,207)
(2,800)
(10,577)
1,241,415
------------
--------
--------
-------
--------
------------
Restricted funds
At 1 Aug 2022
Income
Expenditure
Transfers
Gains and losses
At 31 Jul 2023
£
£
£
£
£
£
Marlow (Scotland) Lecture
15,000
15,000
Hugh Macmillan Memorial
26,000
26,000
W W Marriner
1,000
1,000
Other Special Funds
23,298
23,298
Social Fund
1,576
1,576
Rankine Fund
815
1,418
(2,673)
440
Education Fund
(2,550)
2,550
Energy Strategy Group
65
65
--------
-------
-------
-------
----
--------
67,754
1,418
(5,223)
2,990
66,939
--------
-------
-------
-------
----
--------
At 1 Aug 2021
Income
Expenditure
Transfers
Gains and losses
At 31 Jul 2022
£
£
£
£
£
£
Marlow (Scotland) Lecture
15,000
15,000
Hugh Macmillan Memorial
26,000
26,000
W W Marriner
1,000
1,000
Other Special Funds
23,298
23,298
Social Fund
1,576
1,576
Rankine Fund
815
815
Education Fund
1,650
(4,450)
2,800
Energy Strategy Group
65
65
--------
-------
-------
-------
----
--------
67,754
1,650
(4,450)
2,800
67,754
--------
-------
-------
-------
----
--------
The Marlow (Scotland) Lecture was established to provide funds for a lecture and dinner every second year.
The Hugh Macmillan Memorial was established to provide income to fund a lecture and dinner each year.
The W W Marriner Fund was established to provide funds for a prize.
The above funds together with the Other Special Funds and Social Fund were bestowed upon the Institution a number of years ago and, as such, the income arising from the specific investment of the funds is not separately identifiable. These funds are being treated as permanent endowment funds.
The Rankine Fund was created to raise funds for the reinstatement of the Macquorn Rankine headstone. In addition to donations from members, a grant from Glasgow City Council in the year ended 31st July 2023 has enabled the Institution to complete the refurbishment of the headstone.
The Education Fund consists of funds received for the support of educational activities.
The Energy Strategy Group consists of funds received towards the activites of the group, whose aims are to promote the adoption of a national strategic approach to the generation and distribution of electricity, highlighting the dangers of service interruption if a co-ordinated whole-system approach to management of the electricity infrastructure is not followed.
In general the costs of meeting the specific requirements of the above funds are met through the unrestricted funds.
22. Analysis of net assets between funds
Unrestricted Funds
Restricted Funds
Total Funds 2023
£
£
£
Tangible fixed assets
2,682
2,682
Investments
1,145,220
66,874
1,212,094
Current assets
46,409
65
46,474
Creditors less than 1 year
(7,458)
(7,458)
------------
--------
------------
Net assets
1,186,853
66,939
1,253,792
------------
--------
------------
Unrestricted Funds
Restricted Funds
Total Funds 2022
£
£
£
Tangible fixed assets
3,353
3,353
Investments
1,211,401
66,874
1,278,275
Current assets
31,768
880
32,648
Creditors less than 1 year
(5,107)
(5,107)
------------
--------
------------
Net assets
1,241,415
67,754
1,309,169
------------
--------
------------
23. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2023
2022
£
£
Financial assets measured at fair value through income and expenditure
Financial assets measured at fair value through income and expenditure
1,212,092
1,278,273
------------
------------
24. Related parties
No transactions with related parties were entered into during the year or preceding year that are required to be disclosed.