REGISTERED COMPANY NUMBER:
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REGISTERED CHARITY NUMBER:
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REPORT OF THE TRUSTEES AND |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018 |
FOR |
ENGINEERING INTEGRITY SOCIETY |
(A COMPANY LIMITED BY GUARANTEE) |
REGISTERED COMPANY NUMBER:
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REGISTERED CHARITY NUMBER:
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REPORT OF THE TRUSTEES AND |
UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2018 |
FOR |
ENGINEERING INTEGRITY SOCIETY |
(A COMPANY LIMITED BY GUARANTEE) |
ENGINEERING INTEGRITY SOCIETY |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2018 |
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Page |
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Report of the Trustees | 1 to 4 |
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Independent Examiner's Report | 5 |
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Statement of Financial Activities | 6 |
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Balance Sheet | 7 to 8 |
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Notes to the Financial Statements | 9 to 13 |
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ENGINEERING INTEGRITY SOCIETY |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2018 |
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 2018. 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 2015). |
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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. |
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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. |
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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. |
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ENGINEERING INTEGRITY SOCIETY |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2018 |
ACHIEVEMENT AND PERFORMANCE |
Summary of Main Achievements During The Year |
The Society has had another successful year with the return of our international conference to add to our range of well |
attended events, a strengthened financial position and further growth in the corporate membership to 53 companies. The |
Fatigue 2017 conference and the Instrumentation, Analysis and Testing Exhibition at Silverstone Race Circuit were our |
two major events and these were supplemented by the one day open seminars and the Young Engineers seminars. We |
also published two issues of the journal Engineering Integrity and two Newsletters as well as making greater use of |
social media to promote our activities. |
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The Instrumentation, Analysis and Testing Exhibition at Silverstone Race Circuit in March 2018 was filled with 70 |
trade stands, with some new companies in attendance. During the event, the Society ran three forums: Seeing the 'wood |
for the trees'; Making sense of analysis classification tools: how good is CAE modelling vs test?; and A comparison of |
input and output of signals using different systems. Visitor numbers were down slightly on last year and so were net |
proceeds at a little over £17000. The exhibition is a key event in the calendar for the Society and there are plans to |
refresh it and broaden its scope for 2019. |
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Two open seminars were run successfully; in September was the Servo Hydraulics & Testing to achieve Accurate, |
Meaningful & Economic Results event hosted by Star Hydraulics. We returned in October for the Visualising Strain |
meeting. Both attracted good audiences and made a useful contribution to our finances. |
We also ran three Young Engineers events; the first was in May courtesy of ASDEC/Horiba MIRA. The second was a |
visit to Star Hydraulics in July and the third was hosted by JCB in January. These are free to attend and have been |
highly successful. We are delighted that two of the young engineers have joined the committee of the Durability and |
Fatigue Group. |
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The Society had its usual stand at the Advanced Engineering Show at the NEC in November and we provided two |
forums as part of our provision for professional and public benefit. Dr Peter Bailey of Instron gave a presentation on |
The need for consistent testing: connecting industry and standardisation with reality! David Ensor spoke on the topic of |
Warranty 3 years, life 10 years, production is in 1 year; how do you test? Once again, these were well received and we |
met many old and new friends on the stand. |
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We were delighted by the success of the Fatigue 2017 conference which we held in Downing College Cambridge in |
July. It was 10 years since we last ran an international technical conference and it was a big commitment by the Society |
in both financial and organisation terms. In the end we had over 60 technical papers and over 100 delegates for each of |
the three days. In addition to a surplus of over £27000, we generated a great deal of interest in the EIS, and recruited |
three new members to the D+FG committee. We also made two awards to young presenters in the Peter Watson Prize |
competition. We were extremely grateful for the support of our Corporate Members who sponsored the event, provided |
stands in the exhibition area and contributed to the technical presentations and discussions. Plans are underway for the |
next conference in the series, to be held in 2020 in Downing College Cambridge. |
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We can continue with our charitable aims by running relevant and popular events whilst keeping our overheads low. |
However, to do this we are dependent on the support and goodwill of our members to give their time and share their |
expertise. The key to a successful and sustainable future for the EIS is in attracting and retaining new members to our |
Groups. The Young Engineers initiative is proving to be an effective way of doing this, but we do need to work at |
bringing new people and new ideas into the Society. |
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It is the Trustees intention to maintain the long term viability of the EIS by retaining sufficient capital reserves to sustain |
it through difficult economic conditions, grow an active and diverse membership and provide high quality technical |
events in topics that are relevant to the engineering profession. |
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ENGINEERING INTEGRITY SOCIETY |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2018 |
FINANCIAL REVIEW |
Financial position |
As a result of the international conference and the exhibition, the financial position of the EIS has strengthened again. |
The total income from activities in the year 1 April 2017 to 31 March 2018 was £96,132 and total expenditure was |
£77,943. Much of the expenditure, £47,720, was associated with the conference and is offset by deferred income in the |
previous financial year as well as the conference income received in this period, £75,362. The net surplus from our |
activities in this period was £18,181. This has allowed us to increase our reserves and the net worth of the Society now |
stands at £126,539. |
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Income from corporate membership is up 6.9% to £20,200, whilst the personal membership income is down to £490 |
from £790. Journal costs have risen substantially to £3244 from £502 as a consequence of three factors. We have been |
working on a major design which will be launched in September 2018 and this has cost £1300; income from advertising |
has fallen by £300 this year; and we have incurred additional production costs by publishing larger editions requiring |
more work by the Managing Editor. The Journal is an important part of our contribution to the engineering community |
and the costs are fully justified within the scale of our turnover. |
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Our financial strength has allowed us to extend our charitable activities and we have increased the number of free events |
that we run, we offer reduced fees to students at all our events, we sponsored the young engineers in the University of |
Wolverhampton Formula Student team in 2017 and shall continue to do that in 2018, and we have enhanced the Peter |
Watson Prize. |
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We are in a position where we can cover all our current financial commitments. In addition plans are in place for |
several future events to generate sufficient income to meet ongoing financial obligations. |
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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. The society plans to hold another international three day conference in 2020, and substantial reserves |
are necessary to cover the potential financial risk. |
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The balance in our HSBC accounts exceeded the £85,000 limit of the Financial Services Compensation Scheme during |
the year. As a result, the Directors took the decision to transfer £25,000 to our Nationwide Deposit Account, bringing |
that to just over £50,000. |
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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. |
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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. |
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Recruitment and appointment of new trustees |
Directors and Trustees are appointed from senior members of the Council and their nomination must be approved by |
Council members. |
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REFERENCE AND ADMINISTRATIVE DETAILS |
Registered Company number |
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Registered Charity number |
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Registered office |
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ENGINEERING INTEGRITY SOCIETY |
REPORT OF THE TRUSTEES |
FOR THE YEAR ENDED 31 MARCH 2018 |
REFERENCE AND ADMINISTRATIVE DETAILS |
Principal address |
17 Harrier Close |
Cottesmore |
Rutland |
LE15 7BT |
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Trustees |
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Company Secretary |
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Independent examiner |
Hollis and Co Limited |
Chartered Accountants |
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Sheffield |
South Yorkshire |
S10 2GB |
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This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating |
to small companies. |
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Approved by order of the board of
trustees
on
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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 2018 . |
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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'). |
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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. |
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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: |
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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)]. |
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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 |
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PETER HOLLIS |
ICAEW |
Hollis and Co Limited |
Chartered Accountants |
35 Wilkinson Street |
Sheffield |
South Yorkshire |
S10 2GB |
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6 July 2018 |
ENGINEERING INTEGRITY SOCIETY |
STATEMENT OF FINANCIAL ACTIVITIES |
(INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) |
FOR THE YEAR ENDED 31 MARCH 2018 |
Period |
1.4.15 |
Year ended | to |
31.3.18 | 31.3.17 |
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Unrestricted
fund |
Total
funds |
Notes | £ | £ |
INCOME AND ENDOWMENTS FROM |
Other trading activities | 2 |
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Investment income | 3 |
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Other income |
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Total |
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EXPENDITURE ON |
Raising funds |
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Other |
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Total |
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NET INCOME |
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RECONCILIATION OF FUNDS |
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Total funds brought forward |
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TOTAL FUNDS CARRIED FORWARD |
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108,350 |
CONTINUING OPERATIONS |
All income and expenditure has arisen from continuing activities. |
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ENGINEERING INTEGRITY SOCIETY |
BALANCE SHEET |
AT 31 MARCH 2018 |
2018 | 2017 |
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Unrestricted
fund |
Total
funds |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
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CURRENT ASSETS |
Debtors | 9 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 10 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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NET ASSETS |
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FUNDS | 11 |
Unrestricted funds | 126,539 | 108,350 |
TOTAL FUNDS |
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108,350 |
ENGINEERING INTEGRITY SOCIETY |
BALANCE SHEET - CONTINUED |
AT 31 MARCH 2018 |
The charitable company is entitled to exemption from audit under |
Section 477 of the Companies Act 2006 for the year ended 31 March 2018. |
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The members have not required the company to obtain an audit of its financial statements for the year ended |
31 March 2018 in accordance with Section 476 of the Companies Act 2006. |
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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. |
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These financial statements have been prepared in accordance with the |
special provisions of Part 15 of the Companies Act 2006 relating to |
charitable small companies. |
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The financial statements were approved by
the Board of
Trustees
on
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ENGINEERING INTEGRITY SOCIETY |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2018 |
1. | ACCOUNTING POLICIES |
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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 2015)', |
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. |
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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. |
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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. |
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Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful |
life. |
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Office equipment |
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Computer equipment |
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Taxation |
The charity is exempt from corporation tax on its charitable activities. |
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Fund accounting |
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees. |
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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. |
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2. | OTHER TRADING ACTIVITIES |
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Period |
1.4.15 |
Year ended | to |
31.3.18 | 31.3.17 |
£ | £ |
Conference income |
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Corporate membership | 20,200 | 18,894 |
Personal membership | 410 | 790 |
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ENGINEERING INTEGRITY SOCIETY |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2018 |
3. | INVESTMENT INCOME |
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Period |
1.4.15 |
Year ended | to |
31.3.18 | 31.3.17 |
£ | £ |
Interest receivable | 32 | 53 |
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4. | NET INCOME/(EXPENDITURE) |
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Net income/(expenditure) is stated after charging/(crediting): |
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Period |
1.4.15 |
Year ended | to |
31.3.18 | 31.3.17 |
£ | £ |
Depreciation - owned assets |
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Deficit on disposal of fixed asset |
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5. | TRUSTEES' REMUNERATION AND BENEFITS |
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There were no trustees' remuneration or other benefits for the year ended 31 March 2018 nor for the period |
ended 31 March 2017 . |
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Trustees' expenses |
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Expenses totalling £1,710 (2017 £919) 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. |
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6. | STAFF COSTS |
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The Society does not employ any staff. |
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An individual under a contract for services, the costs of which were as follows, managed administration on a day |
to day basis: |
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2018 2017 |
£ £ |
Secretariat costs for the year 25,662 23,954 |
(including administration and conference costs) |
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7. | INDEMNITY INSURANCE |
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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. |
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ENGINEERING INTEGRITY SOCIETY |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2018 |
8. | TANGIBLE FIXED ASSETS |
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Office
equipment |
Computer
equipment |
Totals |
£ | £ | £ |
COST |
At 1 April 2017 |
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Additions |
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Disposals |
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At 31 March 2018 |
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DEPRECIATION |
At 1 April 2017 |
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Charge for year |
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Eliminated on disposal |
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( |
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( |
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At 31 March 2018 |
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NET BOOK VALUE |
At 31 March 2018 |
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At 31 March 2017 |
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9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
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2018 | 2017 |
£ | £ |
Trade debtors |
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Other debtors |
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VAT |
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10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
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2018 | 2017 |
£ | £ |
Trade creditors |
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VAT | - | 2,778 |
Accrued expenses |
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Deferred income | 19,354 | 55,059 |
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11. | MOVEMENT IN FUNDS |
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At 1.4.17 |
Net movement
in funds |
At 31.3.18 |
£ | £ | £ |
Unrestricted funds |
General fund | 108,350 | 18,189 | 126,539 |
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TOTAL FUNDS |
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18,189 | 126,539 |
ENGINEERING INTEGRITY SOCIETY |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2018 |
11. | MOVEMENT IN FUNDS - continued |
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Net movement in funds, included in the above are as follows: |
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Incoming
resources |
Resources
expended |
Movement in
funds |
£ | £ | £ |
Unrestricted funds |
General fund | 96,132 | (77,943 | ) | 18,189 |
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TOTAL FUNDS |
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( |
) | 18,189 |
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Comparatives for movement in funds |
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At 1.4.15 |
Net movement
in funds |
At 31.3.17 |
£ | £ | £ |
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Unrestricted Funds |
General fund | 83,169 | 25,181 | 108,350 |
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TOTAL FUNDS | 83,169 | 25,181 | 108,350 |
Comparative net movement in funds, included in the above are as follows: |
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Incoming
resources |
Resources
expended |
Movement in
funds |
£ | £ | £ |
Unrestricted funds |
General fund | 69,445 | (44,264 | ) | 25,181 |
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TOTAL FUNDS | 69,445 | (44,264 | ) | 25,181 |
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12. | RELATED PARTY DISCLOSURES |
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There were no related party transactions for the year ended 31 March 2018. |
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ENGINEERING INTEGRITY SOCIETY |
NOTES TO THE FINANCIAL STATEMENTS - CONTINUED |
FOR THE YEAR ENDED 31 MARCH 2018 |
13. | CONFERENCES AND EXHIBITIONS |
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Title |
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Gross
Income |
Expenses |
Net Income |
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Fatigue 2017 | July | 72,632.85 | 45,658.28 | 26,974.57 |
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Visualising Strain | 5/10/17 | 475.00 | 169.03 | 305.97 |
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Hydraulics Seminar | 14/9/17 | 2,254.00 | 335.85 | 1,918.15 |
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Young Engineers Seminars | 0 | 1,242.50 | (1,242.50 | ) |
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Accelerometers | cancelled | 0 | 313.95 | (313.95 | ) |
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TOTAL | 75,361.85 | 47,719.61 | 27,642.24 |
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