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IMechE finances.

The outgoing president Tony Roche's statement on the financial position of the Institution is misleading (From Birdcage Walk, Professional Engineering No 4,2019). He is incorrect in stating that the Institution's traditional trading operations "have been in a loss-making position for seven consecutive years of roughly 1m [pounds sterling] per year".

The published independently audited accounts show the net annual income to the Institution from 2011 to 2017 from all of its activities was: +850,000 [pounds sterling], +700,000 [pounds sterling], + 1.4m [pounds sterling], + 1m [pounds sterling], +500,000 [pounds sterling], +1.1m [pounds sterling], -26,000 [pounds sterling] respectively.

During the same period total funds increased from 24m [pounds sterling] to 30m [pounds sterling] whilst +20m [pounds sterling] of capital investments were made including contributions to reduce the pension liability from 6.5m [pounds sterling] to zero, to the Institution's headquarters in London and Sheffield, to establish the Stephenson Innovation Fund and in IT. The commercial acquisitions made both profits and losses in the period, and in 2017 a small net profit of 2,000 [pounds sterling] and in 2018 280,000 [pounds sterling].

The latest accounts under the new trustee board show that the reduction in the reserves and increases in operating losses to which Mr Roche refers are substantially due to a loss of 1.5m [pounds sterling] on investments, its decision to change investment in IT resulting in an exceptional write-off of 1m [pounds sterling], a negative pension fund movement of 1.8m [pounds sterling] and an estimated excess of 2m [pounds sterling] of costs due to the special meeting and its subsequent fall-out.

Stephen Tetlow MBE, Past chief executive of IMechE, Axminster, Devon

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Title Annotation:Reaction: Your Voice
Author:Tetlow, Stephen
Publication:Professional Engineering Magazine
Article Type:Letter to the editor
Date:Jul 1, 2019
Previous Article:Plumbing the depths.

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