View
216
Download
0
Embed Size (px)
Citation preview
8/6/2019 Trustees Report & Accounts April 2009 March 2010
1/40
Trustees Report & Accounts
April 2009 March 2010
8/6/2019 Trustees Report & Accounts April 2009 March 2010
2/40
In fulfillingourRoyal Charterfor the advancement of learning
anduseful knowledge,theSociety contributes to thesocial, cultural andeconomicwellbeingofScotland.
8/6/2019 Trustees Report & Accounts April 2009 March 2010
3/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
Contents
Council of the RSE 2009 10 2
Trustees Annual Report
Structure, governance and management 3
Objectives and activities 4
Achievements in the year 5
Financial review and policies 9
Future plans 11
Independent Auditors Report to the Council of The Royal Society of Edinburgh 12
Accounts
Group statement of financial activities(incorporating the income and expenditure account) 13
Group balance sheet 14
RSE balance sheet 15
RSE statement of financial activities(incorporating the income and expenditure account) 16
Group cash flow statement 17
Notes to the financial statements 18
1
8/6/2019 Trustees Report & Accounts April 2009 March 2010
4/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
The Trustees are the Council Members elected during the financial year(1 April 2009 to 31 March 2010)
Council
Until 5 October 2009 From 5 October 2009
President Lord WILSON of TILLYORN KT GCMG Lord WILSON of TILLYORN KT GCMG
Vice-Presidents Lord PATEL of DUNKELD Professor J D BEGGS CBE
Professor T S DURRANI OBE Professor T S DURRANI OBE
Professor Sir Tom McKILLOP Mr J F McCLELLAND CBE
Professor H L MacQUEEN Professor H L MacQUEEN
General Secretary Professor G S BOULTON OBE Professor G S BOULTON OBE
Treasurer Mr E BROWN CBE Mr E BROWN CBE
Fellowship Secretary Professor P H HOLMES OBE Professor P H HOLMES OBE
Councillors Sir John ARBUTHNOTT Sir John ARBUTHNOTT
Professor S BLACK OBE Professor A DOMINICZAK OBE
Dr I G HALLIDAY CBE Dr I G HALLIDAY CBE
Professor A McMAHON Professor S L MANNING
Professor C WHATLEY Professor R C CRAIG OBE
Executive BoardUntil 5 October 2009 From 5 October 2009
General Secretary and Chair Professor G S BOULTON OBE Professor G S BOULTON OBE
Treasurer Mr E BROWN CBE Mr E BROWN CBE
Curator Professor J D MACMILLAN Professor J D MACMILLAN
Research Awards Convener Professor Alan MILLER Professor Alan MILLER
International Convener Sir David EDWARD PC KCMG Sir David EDWARD PC KCMG
Programme Convener Professor D S INGRAM OBE Professor J S RICHARDSON
Young Peoples Programme Convener Professor M BOWNES OBE Professor M BOWNES OBE
Chair of RSE Scotland Foundation Professor Andrew MILLER CBE Professor J R COGGINS OBE
Education Committee Professor S A BROWN OBE
Chief Executive Dr W DUNCAN Dr W DUNCAN
Director of Finance Miss K F M ELLIS Miss K F M ELLIS
2
8/6/2019 Trustees Report & Accounts April 2009 March 2010
5/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
Structure, governance and managementThe RSE Council, chaired by the President, comprisesthirteen Trustees, including four Vice-Presidents, the GeneralSecretary, the Treasurer, the Fellowship Secretary and fiveordinary members. Subject to annual re-election, Councilmembers serve for three years, except for the GeneralSecretary and Treasurer, who may serve for up to four years.
All are unpaid.
The Council is responsible for the strategic direction andpolicies of the RSE, and normally meets quarterly.
An Executive Board has delegated responsibility from theCouncil for delivery of the RSEs activities. It is chaired by
the General Secretary, and has as its elected members,the Treasurer, the Convenors of the main operationalcommittees and the Curator, as well as the Chair of theRSE Scotland Foundation and senior executive staff.
The Executive Board normally meets quarterly andreports to the Council.
The Council members and the office-bearers serving on theExecutive Board are all elected annually by the Fellowship ina postal ballot. New members of Council and the ExecutiveBoard are given an extensive induction through discussionswith the Chief Executive and senior staff.
Reporting to the Council through the Executive Board
are operational committees, including the EducationCommittee, International Committee, various Research
Awards Committees, the Meetings Committee and theYoung Peoples Committee. These Committees largely,but not exclusively, comprise Fellows of the RSE and areconcerned with the operational delivery of the RSEsvaried activities. All Fellows are actively encouraged toparticipate in the RSEs activities.
Two other charitable trusts founded by and closelyconnected to the RSE, the BP Research Fellowship
Trust (the BP Trust) and the RSE Scotland Foundation(the Foundation), are included in the consolidated accounts.
The Foundation plays a leading role in the RSEs public
outreach activities and manages the premises in GeorgeStreet. Its Trustees are appointed for three years bythe RSE Council.
Following a transfer of assets in 2009, the Foundation is alsoresponsible for managing the programme of activities insupport of research in Scotland, funded by the CaledonianResearch Fund.
The BP Trust was created following a donation of 2min 1988 from BP to support a scheme of post-doctoralresearch fellowships in specified subjects and which areawarded at the sole discretion of the RSE. The RSEPresident, General Secretary and Treasurer are the BP
Trustees, ex officiis.
Statement of Councils responsibilities
Under charities legislation applicable in Scotland, the Councilis required to prepare accounts for each financial year thatgive a true and fair view of the RSEs financial activities duringthe year and of its financial position at the end of the year.
The Council is responsible for preparing the annual reportand the financial statements in accordance with applicableLaw and United Kingdom Generally Accepted AccountingPractice (UK GAAP).
In preparing accounts giving a true and fair view, the Councilshould follow best practice and:
select suitable accounting policies and apply themconsistently;
make judgements and estimates that are reasonableand prudent;
state whether applicable accounting standards andstatements of recommended practice have been followed,subject to any departures disclosed and explained in theaccounts; and
prepare the accounts on a going concern basis unlessit is inappropriate to presume that the RSE will continuein operation.
The Council is responsible for keeping accounting records
which disclose with reasonable accuracy the financialposition of the RSE and which enable it to ensure that theaccounts comply with the Charities and Trustee Investment(Scotland) Act 2005, the Charities Accounts (Scotland)Regulations 2006 and the RSEs own Laws. It is alsoresponsible for safeguarding the assets of the RSE andhence for taking reasonable steps for the prevention anddetection of fraud and other irregularities.
Risk managementThe Audit and Risk Committee, operating on a joint basiswith the Foundation and the BP Trust, reports directly to theCouncil, the Foundation and the BP Trust. Its Chair, who
cannot be a Trustee or other Office Bearer of the RSE, isinvited to attend Council meetings as an observer. Its remitincludes keeping under review the effectiveness of internalcontrol and risk management systems of the RSE and itsconnected charities. The Council believes that the existingsystems and the structure of decision taking and reportingthrough senior staff, the Executive Board and the Councilcontinues to provide assurance that risks are properlyassessed and carefully managed.
3
8/6/2019 Trustees Report & Accounts April 2009 March 2010
6/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010Objectives and Activities
Mission and Role
In keeping with its Royal Charter, the mission of the RSE isto provide public benefit through the continued advancementof learning and useful knowledge. To fulfil this, it promoteslearning and puts the multidisciplinary expertise of its Fellowsto work for the good of Scotland and its people. Its role is to:
promote and recognise excellence in, and its applicationto, all areas of learning
be a source of independent and expert advice onmatters affecting the wellbeing of Scotland and itspeople
advance public discussion on matters of nationaland international importance
The difference the RSE aims to makeAll of the Societys activities aim to contribute to the followingpublic benefit outcomes:
increasing the number of world-class science andculture researchers working in Scotland
increasing Scotlands research and developmentconnections internationally
improving connections between business and academia
increasing the number of people in Scotlandwho adopt science as a career
enhancing the publics appreciation and understandingof science and culture issues
informing and influencing public policy decisions
Strategic Priorities
The Society seeks to make a difference through itsprogrammes of Core Public Benefit, Fellowship andSupport services. Overarching these are the followingstrategic priorities:
developing partnerships and connections with others
providing independent advice on major issues affectingpublic policy
developing arts and humanities activities and theirinterface with science
broadening public engagement diversifying funding sources
OverviewThis section describes the main achievements of RSE, theFoundation and the BP Trust, reflecting the fact that theFinancial Statements are presented on a consolidated basis.
Their Core Public Benefit programme activities are describedin more detail on pages 511, according to the outcomes towhich they contribute.
The highlights of the successful year and which are detailedin the report include:
Award of a further six Scottish GovernmentPersonal Research Fellowships, each of up to fiveyears length, also eligible for the Marie Curie COFUNDtravel funding awarded in 2008. There are now a totalof 14 Personal Research Fellows in post
The second year of the Phase III scheme ofEnterprise Fellowships resulting in 10 awards,including four to be held in 201011, from twenty-eightapplications received
Friends of the Society initiative initially with eightcorporate partners of the RSE
A series of 12 discussions and talks as partof the Edinburgh International Festival on the themeofThe Enlightenment
Launch of the independent Inquiry entitledFacingup toClimate Change in October 2009, commencingwith the gathering of evidence throughout Scotland
Visit of HRH The Duke of Edinburgh in August 2009to present the 2009 Royal Medals and theIEEE/Wolfson/ James Clerk Maxwell Award
Significant growth in the RSEs internationalactivities, including a visit in October 2009 from thenew US Ambassador to Britain as part of his first visit toScotland, and an increase in the number of internationalexchanges
Launch of the Business Innovation Forum inJanuary 2010 in the presence of Cabinet Secretary forFinance and Sustainable Growth, John Swinney
Celtic Cossack Connections project (supportedthrough our arts and humanities programme) resultedin public performances, in both Russia and Scotland,of the original version of Prokofievs opera War andPeace, attended by 7,000 people
A two-day programme of film, theatre and debateabout nuclear weapons, centred on Michael Frayns playCopenhagen
Performance MonitoringThe performance of the RSE and its connected charities,compared to the output targets set in the Operational Plan,is reported quarterly to the Executive Board, and to Counciland to the Trustees of the other connected bodies. As inprevious years, the overwhelming majority (>95%) of thetargets were reached or exceeded; those that were not,arose either through external factors or not being able tosecure or apply the necessary resources.
4
8/6/2019 Trustees Report & Accounts April 2009 March 2010
7/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010Achievements in the year
1 Increasing the number of world-class scienceand culture researchers working in Scotland
RSE Research Awards continued to support some of themost outstanding young scientists and innovators workingin Scotland today. The Research Fellowships AwardsProgramme seeks to enhance the capacity of world-classscience and culture researchers working in Scotland; andincrease Scotlands research and development connectionsinternationally. It creates conditions that attract those withoutstanding potential conducive to becoming researchleaders, to establish their careers in Scotland and makelong-term contributions to the Science, Technology,Engineering and Mathematics base and its application inScotland. All played their part in advancing the social andeconomic wellbeing of Scotland. It is only through valuable
partnerships with key bodies such as BP, the Lloyds TSBFoundation for Scotland and the Scottish Governmentthat we were able to provide these awards and we offerour sincere thanks to each of these partners, for theircontinuing support.
A Reception to announce the following awards made duringthe year, was held in September 2009 at the Royal Societyof Edinburgh:
one BP Personal Research Fellowship
six new Personal Research Fellowships, awardedfrom 65 applicants and started during the year
three new Support Research Fellowships, awarded
from 13 applicants nine Scottish Enterprise Enterprise Fellowships awarded
in calendar year 2009 and commencing in the financialyear
eight BBSRC Enterprise Fellowships
one Science & Technology Facilities Council EnterpriseFellowship
one Lloyds TSB Foundation for Scotland PersonalResearch Fellowship
eight CRF European Visiting Research Fellowshipsin Arts, Humanities & Social Sciences
ten Arts & Humanities Small Grants
five Arts & Humanities Research Workshops Cormack awards: one Undergraduate Prize, one
Postgraduate Prize and three Vacation ResearchScholarships plus one Piazzi Smyth Vacation Scholarship
six Lessells Travel Scholarships
The Scottish Government-funded Personal ResearchFellowship scheme offers six, five-year fellowships per yearand is the largest fellowship scheme administered by the RSEfor postdoctoral researchers. More than 84% of the ResearchFellows supported by RSE remain in research in Scotland and30% of them now hold professorships. They have alsolevered benefits for Scottish research. Since 2003, 4.6m ofgovernment grant supported fellowships has generated more
than 40m of further research funding. Through the RSEsrecent successful application to the Marie Curie COFUNDscheme under the EU Framework Programme 7, the RSE hasbeen awarded 0.9 million over four years to internationaliseits existing Research Fellowships and encourage greaterinternational mobility of researchers.
The Royal Medals of the Royal Society of Edinburgh areits most prestigious award, recognising outstandingresearch excellence and scholarship. The 2009 medalswere awarded, with the approval of Her Majesty TheQueen, to Sir James Mirrlees FBA HonFRSE, for hisoutstanding contribution to economic theory which hashad a global impact on economic development; ProfessorWilson Sibbett CBE FRS FRSE, for his outstandingcontribution to physics in Scotland and Scottish science,through his Chairmanship of the Scottish Science AdvisoryCommittee; and to Professor Karen Vousden CBE FRSFRSE, for her outstanding contribution to cancer research.
The Medals were presented by HRH The Duke ofEdinburgh at a ceremony at the Royal Society of Edinburgh.His Royal Highness also presented the IEEE / RSE /James
Clerk Maxwell Award to Professor AlbertoSangiovanni-Vicentelli FIEEE for his pioneeringinnovation and leadership in Electronic Design Automation.
2 Increasing Scotlands research and developmentconnections internationally
This programme seeks to increase Scotlands research anddevelopment connections internationally; and increase thenumber of world-class science and culture researchersworking in Scotland. It helps create conditions for talentedpeople to live, learn, visit, work and remain in Scotland;and supports Scotlands reputation as a distinctive globalidentity, an independent-minded and responsible nation athome and abroad and confident of its place in the world.
Since 2003, Scottish Government funding has supportedthe establishment of formal Memoranda of Understanding(MoUs) between the RSE and 11 overseas sister National
Academies, and also supported the development andmaintenance of relationships and activities with otheroverseas Academies. The programme comprises theBilateral and Open exchange schemes and also jointresearch projects, which run over two years betweenScottish and overseas Institutes (currently the NationalNatural Science Foundation of China (NSFC)), supportinglonger-term collaborations and levering further funding.
During the year, 50 Bilateral and 34 Open Exchange
Scheme grants were awarded, which amounted to 229.5person weeks of researcher support for visits betweenScotland and over 20 countries worldwide. Six new jointprojects with the NSFC were awarded for two years fromSpring 2010 in the area of Life Sciences and 11 existing
joint projects in management science, engineering andpublic policy, and biological sciences were supported intheir first and second years. Funding was also awardedfor a collaboration between the University of Stirling andthe Institute of Automation, The Chinese Academy ofSciences, to support a Scotland China Higher EducationResearch Partnership for PhD Studies in the area of
Telecommunications and Information Technologies.
In partnership with the American Consulate in Edinburgh, alecture was given in October by the new US Ambassador tothe UK, Louis B Susman, on his first official visit to Scotland,in which he praised the independent and adventurousspirit of Scotland and discussed the challenges facing theUS and Scotland.
5
8/6/2019 Trustees Report & Accounts April 2009 March 2010
8/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010Achievements in the year
3 Improving connections between business
and academiaThe Enterprise Fellowship schemes are run by the RSE to
encourage commercialisation of technology-based business
ideas from academic institutions into spin-out companies.
This activity helps create sustainable companies with
high-value jobs and contributes to the economy in the long
term. The RSE administers three Enterprise Fellowship
Schemes, funded separately by Scottish Enterprise (SE),
the Science and Technology Facilities Council (STFC,
formerly PPARC) and the Biotechnology and Biological
Sciences Research Council (BBSRC).
The RSE/SE Enterprise Fellowships programme, whichaims to appoint 60 Fellowships over the next five years
has appointed 21 over the first two years. The third roundtook place in Spring 2009 and six Fellows were appointedand took up post in October 2009. The fourth round tookplace in Autumn 2009 and four Fellows were appointedwho took up post in Spring 2010.
Both of the Research Council schemes operate on a UK-wide basis and encourage the commercialisation of researchpreviously funded by BBSRC and STFC. The BBSRCscheme attracted an encouraging number of applicationsand, following a rigorous selection process, two BBSRCEnterprise Fellows took up post in April 2009, with anothersix taking up post in October 2009. One STFC EnterpriseFellowship awarded in June 2009 began in October 2009.
RSE Business Innovation Forum
In response to the Scottish Governments Science Strategy and its
Innovation Framework, the Society has also created a high level
Business Innovation Forum. Its remit includes trying to improve
research & development activity by Scotlands businesses. Its
findings will be presented to Scottish Ministers and be more widely
disseminated and discussed at events with others.
The Business Innovation Forum comprises 10 seniorbusiness people and academics. A reception to launch theForum was held in January 2010 in the Scottish Parliamentand was hosted by the Convener of the Cross-Party Groupon Science and Technology, with a keynote speech by the
Scottish Governments Cabinet Secretary for Finance andSustainable Growth. Over 100 people from government,parliament, business and academia attended this receptionthat also showcased some of the successful innovation andenterprise awards that the RSE has made in recent years.
Friends of the Society
The RSE has invited a number of chosen organisations tobecome Friends of the Society, with the aim of bringingbusiness and academia closer together. As well asparticipating in the launch of the Business Innovation Forum,key executives from these corporate partners have met withthe President and other office bearers, giving an opportunity
for wide-ranging discussions of topics of concern tobusiness. In 2009 10, the Friends of the Society were
Aegon UK, BP, Lloyds Banking Group, Royal Bank ofScotland, Scottish Enterprise, Scottish Power, Shell UKand the Wood Group.
4 Increasing the number of people in Scotlandwho adopt science as a career
The schools programme aims to enthuse school pupils acrossScotland with science and culture by using RSE Fellowsand other experts in the field to share their knowledge andunderstanding with pupils, with a particular focus on nurturingthose already engaged in science and culture, and pupils whoare not in close proximity to Scottish Universities and ScienceCentres, and who therefore have more limited opportunity toparticipate and meet with the experts.
The activities this year were held throughout the length andbreadth of Scotland and comprised 69 events 62 wereplanned. 3,022 school pupils attended 2,600 had beenforecast to attend. These were:
Two all-day Discussion Forums, Darwin 200 for S5 and
S6 students from 12 schools in East Kilbride andEdinburgh, with associated material distributed to allschools in Scotland via GLOW and the final Report.
Christmas Lecture Adapting to Climate Change oneadult and one schools lecture in Fort William.
32 interactive Start-up Science Masterclasses in universityvenues around Scotland for S1 and S2 pupils.
RSE@Schools 15 talks and one workshop on appliedscience and technology for S3, S5 and S6 pupils.
Languages in Scotlandevent (jointly with the Internationalprogramme) held at Oban High School. A public eventand two schools workshops.
SET Summer Camp 14 workshops.
Following the success last year of the RSE@ programme pilot Arbroath, it was decided to take this outreach programmeto Dumfries & Galloway in 2010 11. Plans were made andfunding sought and obtained during the year.
5 Enhancing the publics appreciation and
understanding of science and culture issues
(i) Events
The RSE planned and organised the delivery and promotionof a multidisciplinary programme of events aimed at a wide
variety of audiences. 37 events were attended by 5,667people the targets were 35 events attended by 5,000.More than 75% of the participants were first-time attendees.
four Conferences covering Science and Society topics
33 Lectures and Discussion Forums, including 12 lecturesas part of the Edinburgh International Festival
6
8/6/2019 Trustees Report & Accounts April 2009 March 2010
9/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010Achievements in the year
Thirty-three Public Lectures and discussion forums
were attended by 5,207 people comprising:
Lectures
Meet Danny Airborne Initiative public lecture
MacCormick European Lecture: Todays EU:all passion spent
Science, drama and politics: The life of Sir Joseph Rotblat,nuclear physicist and peace campaigner
Gunning Victoria Jubilee Prize Lecture: Ripples from thedark side of the universe the search for gravitationalwaves
Malaria, Mosquitoes and Models
The Financial Sector after the Credit Crunch
Edinburgh International Book Festival Lecture:The Enlightenment the international influence
and impact of Scotland and the Scots
Henry Dryerre Prize Lecture: Making Eyes: lessonsfrom failed miracles
Believing in Change: Darwin, Lincoln, Obama
Edinburgh Lecture Series: Inching Towards Peace:A New International Humanitarian Order
Henslows legacy, Darwins Inheritance
Credit Crunch and Recession; What have we Learnt?
BP Prize Lecture: The Apocryphal Gospels Then
and NowEnvironmental Choices Lecture: The technology-policychallenges to address climate change and biodiversity loss
ECRR Peter Wilson Lecture: Energy
David Anderson Berry Medal Lecture: The importanceof being red
RAEng/ RSE Joint Lecture The simplicity and complexityof wind an engineers tale
Twelve Lectures as part of Edinburgh InternationalFestival 2009 The Enlightenment an 18th CenturyRevolution of thought
Visual Art and the Enlightenment
Scotland Exports the Enlightenment
Islam and the Enlightenment
The Ages of Optimism and Pessimism:Utopian and Dystopian Ideas
Science and Tolerance
Music and the Enlightenment:Classical and Vernacular Traditions
On the Dark Side: Witchcraft and the Theatre
Science and the Enlightenment
The Face of the Enlightenment
Moral Universals and Moral Progress:
The New Science of Good and EvilThe Enlightenment and the Academies
Political Economy: Adam Smith and Others
Discussion Forums
The Higgs boson: what, why, how?
Science, drama and politics: Copenhagen
Science, drama and politics: Operation Epsilon readingsfrom the Farm Hall transcripts
Science, drama and politics: The drama of nuclear physics
Four conferences were attended by 460 people:
Drugs of the Future for the Elderly.Personalised Medicines for the over-65s
Scottish Aquaculture A sustainable future, in partnershipwith Scottish Aquaculture Research Forum
Stem cells as therapy. Where have we been; where arewe now and where are we going (and how fast?) the CRFBiomedical Conference
Darwin and Lincoln on Race and Society, in partnershipwith the Institute for Advanced Studies, University ofEdinburgh
(ii) Communications
The RSE website provided information for the public andfor Fellows. Improvements are planned in 2010 to facilitateinteraction with the new computer database and updatethe design and ease of use. 35 written summary reports ofactivities in the public events and schools programme wereposted on the RSE website soon after the events had takenplace. 11 audio recordings of events were also madeavailable on the website. A printed report of the Darwin 200,Schools Discussion Forum was distributed to 279 schools.
Media briefings and press releases were provided for mostmajor events and launches, and there was appreciablemedia coverage of many of the activities in the RSEprogramme.
Four issues ofReSourcE, the RSE newsletter werepublished and distributed to the Fellowship and around2,000 others, including business leaders, journalists,research institutes, schools, MPs, MSPs and interestedindividuals.
Fellows also received a monthly e-bulletin, which enabledthem to keep up to date with and, where appropriate,disseminate information on the RSE and its work. Inaddition, four public e-bulletins were sent out during theyear via the Work with us website, to advertise variousevents and schools activities.
The eighth issue ofScience Scotland(on Life Science) waspublished in December 2009. Science Scotland aims topromote the excellence of Scottish research, particularly toan overseas audience, and the publication was distributedacross the UK and worldwide to more than 2,500 peopleand available on the Science Scotlandwebsite. TheScience Scotlandwebsite is being accessed by peoplein 70 countries and had 8,000 unique visitors last year.
7
8/6/2019 Trustees Report & Accounts April 2009 March 2010
10/40
8
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010Achievements in the year
(iii) Journals
The RSE, through the Foundation, publishes two journals Earthand Environmental Science Transactions of the Royal Societyof Edinburgh and Proceedings A: Mathematics. Copies of thejournals are sent to 350 University Libraries, Academies andInstitutions world wide, as part of the Societys exchangeprogramme. The journals are highly regarded by academics aspublication vehicles for their research, and they both maintaineda respectably high impact factor in comparison with similarjournals in their fields.
Six issues ofProceedings A were published during the2009/10 year. Three issues of Transactions were published.
The Society signed a contract with Cambridge UniversityPress in 2009 for the digitisation of the RSEs journal archive
comprising Transactions 17851979; Transactions:Earth Sciences 1980 2000; Proceedings 18321940;Proceedings A: Mathematics 19411999; and ProceedingsB: Biological Sciences 19411994. It is hoped that thevolumes will be available online by the end of 2010, thusmaking the Societys highly regarded journal archive moreeasily accessible to a world-wide audience.
6 Informing and influencing public policy decisions
Key outputs of the RSEs Policy Advice unit were four briefingpapers on Scottish Parliament debates covering climatechange, energy, and influenza; 19 consultation responses,11 to the Scottish Parliament and/or the Scottish Government,seven to Westminster and one to the EU, on a range of topicsincluding: the Marine (Scotland) Bill; the Alcohol (Scotland) Bill;the Climate Change (Scotland) Act; the Scottish SentencingCouncil; and the Public Services Reform Act.
Oral evidence to Scottish Parliamentary Committees wasprovided on a range of subjects, including: the CriminalJustice and Licensing Bill; Future Reform of the EU Budget;the Treaty of Lisbon Inquiry; the Alcohol Bill; and the EfficientDelivery of Public Services. RSE Fellows also providedwitness evidence to the UK Parliamentary Committee onsetting Science and Technology Research Funding Priorities.
RSE Inquiry, Facing Up to Climate Change
In October 2009 the RSE launched a major inquiry, Facing up
to Climate Change. The Inquiry Committee is headed byclimate scientist Professor David Sugden, Professor ofGeography from the School of Geosciences at the Universityof Edinburgh and a world leader in ice sheets and globalclimate change. The RSE Inquiry seeks to raise awareness ofthe challenges ahead, both from global warming and from amove to a low carbon economy and identify how individuals,communities and industries can turn these challenges into apositive opportunity. During the year the Inquiry commencedgathering evidence and plans to report in early 2011.
Liaison with the Scottish Parliament, Westminsterand the European Parliament
The RSE continued to engage with politicians and policy
makers in all of the Parliaments of relevance to Scotland, onsubjects within the expertise of the Fellowship. Each PolicyAdvice Paper produced by the RSE was distributed to thosepolicy makers with a close interest in the subject, and whereappropriate, face-to-face briefings were arranged. The RSEalso offered expert witnesses to Parliamentary Committees.
The submissions made by the RSE on climate change wereinfluential in encouraging MSPs to set the challengingemission reduction targets in the Climate Change (Scotland)
Act. MSPs were receiving many recommendations over thisAct, but the intervention of the RSE from the work of anexpert team of scientists was significant in advising theScottish Parliament that an ambitious programme of emissionreductions was both achievable and recommended on thelatest scientific analysis.
RSE Education Committee
The RSE supported an Education Committee whosemembers contributed to the development of policy in relationto education in a number of ways, most specifically in relationto improving science education in schools. Members of thisCommittee were active members at the School Science
Summit and senior members engaged with the CabinetSecretary for Education & Lifelong Learning as well as withsenior officials from the same Directorate.
In partnership with the Royal Society of Chemistry, the RSEundertook a Chemistry exemplification project to supportCurriculum for Excellence implementation. This involved therecruitment of an enthusiastic chemistry teacher who hasbeen developing materials for use in the classroom. This isdue to conclude in late summer 2010 and the output will bemade available to teachers across Scotland.
The Fellowship Programme
The Societys Fellowship includes men and women from allparts of Scotland, the UK and overseas, and encompassesthe full range of disciplines, including science, engineering,social sciences, arts, humanities, law, education, businessand industry.
In March 2010, the Society announced the election of fivenew Corresponding Fellows, two Honorary fellows and 40new Ordinary Fellows. This followed the scrutiny in 2009 of182 candidates through a four-stage committee process,culminating in the postal ballot in December to the entireFellowship. The addition of new Fellows in 2010 brought thenumbers in the Fellowship up to 1527 65 Honorary Fellows;57 Corresponding Fellows and 1405 Ordinary Fellows.
The discipline balance of the Fellowship can be broadlyrepresented by four cognate sectors. In the OrdinaryFellowship the current balance of these sectors is 36.1%(Life Sciences Sector A), 36.6% (Physical, Engineeringand Informatic Sciences Sector B), 18.8% (Humanitiesand Creative Arts Sector C) and 8.5% (Social Sciences,Education and Public Service Sector D).
The Society holds an Induction Day each year for the newFellows. This provides an opportunity for new Fellows tomeet with members of Council, the Executive Board andRSE staff, and to be formally admitted to the Society.
There were also events primarily for Fellows, including the
New Fellows Admission Ceremony and Induction, the RoyalMedals Award Ceremony and the Annual Statutory Meeting.The Fellows Dining Club met four times in April, June,September and December.
8/6/2019 Trustees Report & Accounts April 2009 March 2010
11/40
9
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010RSE Scotland Foundation
In addition to the publication of the RSE Journals, the
Foundation successfully facilitated the dissemination of usefulknowledge through letting the conference facilities in George
Street. Income from this activity was higher than the previous
year. The Foundation was also responsible for letting surplus
space to tenants; rooms were occupied by Universities
Scotland, the Institute of Conservation (ICON) and Lakeland
Ltd. The income generated from these rentals supported
public benefit programmes.
Caledonian Research Fund (CRF)
On 11 March 2009 the Foundation received a transfer of
assets from the Caledonian Research Foundation. At the time
of the transfer the existing schemes of the CRF comprised:
Research Fellowships for younger academic staff
carrying out advanced work in the biomedical sciences
of Scottish higher education institutes.
European Visiting Fellowships to enable scholars of the
Arts and Letters from continental Europe to spend short
periods working in Scotland and vice-versa.
Postgraduate Scholarships for students undertaking
research leading to a PhD degree in Scotland.
An annual International Conference on aspects
of the biomedical sciences.
Under the transfer agreement the Trustees agreed to honour
the existing financial commitments of the CRF in support of
scientific research, and thereafter to apply the assets at their
discretion, with the proviso that they should have regard tothe existing activities of the CRF, but that this should not
place any restrictions on the purposes for which the assets
may be used.
The Trustees have determined that they intend to continue all
the existing schemes, but to take steps to bring into balance
the costs of the schemes and the income earned from the
investment portfolio.
Accordingly, in addition to the five postdoctoral research
fellows and six postgraduate students already holding
positions which conclude between July 2010 and
September 2011, one postdoctoral Fellowship and one
postgraduate studentship have been awarded during the
year. Other commitments made comprised three grants forEuropean Visiting Research Fellowships totalling 9,500 and
a Conference entitled Diabetes and obesity: getting to the
heart of the matter planned as a joint event with the
Academy of Medical Sciences.
All of the activities of the CRF are administered on behalf of
the Foundation by the RSE, except the administration of the
postgraduate Scholarship scheme which remains with the
Carnegie Trust for the Universities of Scotland.
Scottish Bioinformatics Forum
In January 2008, the Scottish Bioinformatics Forum (SBF)
began operating under the governance of the Foundation.
The SBF is funded by the Scottish Funding Council andScottish Enterprise, and has the objective of establishing
Scotland as a globally-recognised and leading location for
conducting cutting-edge bioinformatics research and
sustainable commercial activity. SBF performs an important
role in promoting bioinformatics as a key enabling technology
in Life Science research and development. Activities include
promoting training and knowledge transfer of bioinformatics
skills, including facilitating multi-centre collaborations,
industry and academic joint ventures, partnering, knowledgetransfer, and bioinformatics training.
During the year 2009, SBF held 17 events all aimed attraining and knowledge exchange, in various locationsacross Scotland. The flagship event was a successfulsummer school which attracted participants worldwide.
The two networks: the Next Generation SequencingNetwork and the Scottish Biosystems Modelling Networkwhich were created over two years ago, have been veryactive with new ventures and a regular increase in newattendees. SBF has also maintained a good relationshipwith the European Bioinformatics Institute, resulting inanother two very popular workshops and another
successful three-day workshop for the third year with thePrince Felipe Research Centre in Valencia, Spain.
BP Research Fellowship Trust
After discussion with BP, the Trustees of the BP Trustdecided at their annual meeting to improve theattractiveness and value of the postdoctoral fellowship byextending the duration to a maximum of five years. Thefellowship would be awarded in alternate years and in theintervening years a Hutton prize would be awarded forachievement in the physical sciences. Trevor Garlick,Director & VP Renewal at BP in Dyce, Aberdeen becamethe BP Observer to the Selection Panel for the postdoctoralfellowships. The contribution and support by BP for the BP
Research Fellowship is strongly valued by the RSE.
Financial Review and Policies
Investment powers and policy
The management of the investment funds of the RSE,the Foundation and the BP Research Fellowship Trust iscarried out by Speirs & Jeffrey Ltd on a discretionary basis.
The objectives set by the Council are first to ensurea sufficient level of income to meet the target set annuallyby the Council, and thereafter to invest for capital growth.
The Council has delegated the detailed monitoring ofperformance to an Investment Committee, which includesat least one ordinary member of Council and two
investment advisers and which makes comparisons againsta composite benchmark reflecting the mix of assets heldand the WM Charities Income Constrained Index.
The performance of the portfolios was as follows:
Income Actual Total BenchmarkTarget income return
3 years to 31 March 2010
000 000 % %
RSE 211 196 4.0 1.7
BP Trust 125 131 2.4 1.7
Foundation 315 305 * 1.7
* figure for CRF not available
The Investment Committee meets twice annually with theinvestment managers to discuss their compliance with thepolicies set by the Committee and the risk environment. Inthe year under review, no compliance issues arose whichrequired to be reported to the Committee.
8/6/2019 Trustees Report & Accounts April 2009 March 2010
12/40
Operating policies grant making
The RSE makes grants to individuals in highereducation institutions in support of research activitiesin the categories of postdoctoral Research Fellowships,Support Research Fellowships, Post-graduateStudentships, undergraduate Vacation Scholarships,Enterprise Fellowships and international exchange grants.Each of these categories is specifically funded from varioussources, including the RSEs restricted funds. The basisof eligibility and selection varies according to the detailedscheme regulations, which are published on the RSEswebsite (www.royalsoced.org.uk). Grants are also made insupport of research activities of Fellows of the RSE, includingsupport for travel connected with research or scholarship,small scale specialist meetings, to assist research visitors toScotland to undertake collaborative research work with a
Fellow, to assist a visiting lecturer to come to Scotland, toassist research collaboration between two institutions inScotland or between universities and industry and to assist inthe publication of books written by Fellows. These grants arefunded by the RSEs designated Grants Fund. The GrantsCommittee is responsible for making awards in accordancewith the detailed rules set out by the Council of the RSE forthe disbursement of the Grants Fund.
Reserves policy and funds
The RSE holds a number of restricted funds resulting frombequests for particular purposes, details of which are setout in note 2 to the financial statements. The Council has
created designated funds, from its unrestricted funds, thepurposes of which are also set out in note 2 to the financialstatements. The General Fund represents the balance ofunrestricted funds arising from past operations. The Councilhas examined the requirement to hold unrestricted funds,and concluded that, whilst the present level of reservesgives adequate working capital for core costs, it would bedesirable to increase the General Fund reserve from sixmonths expenditure on central costs towards nine monthsexpenditure, or approximately 1.12 million. The current fundbalance is 762,000, before deduction of the FRS17pension reserve. The Council has also reviewed thepurposes and amounts of each of the designated funds andagreed that in future the designated funds should comprise
allocations for specific purposes of those sums that hadbeen donated, rather than generated from past surpluses,together with the Capital Asset Reserve.
Result for the year
The deficit of consolidated net incoming resources for theyear was 62,000, compared to the 39,000 underlyingsurplus, excluding non-recurring items, achieved last year.
The main reason was the use of capital to support ongoingexpenditure previously committed in the CRF and plannedexpenditure on computer systems taken from theDevelopment Fund.
Offsetting this were investment gains, comprising 0.34mrealised in the year and 2.87m unrealised at the year end.
The net movement on funds for the year after the FRS17actuarial adjustment was 2.54m.
Income and Expenditure
Total incoming resources
Total incoming resources were 5.29 m (2009 6.76m).On a like-for-like basis, excluding the major legacy in 2009(2.16m), total income increased by 15%. The increasearose mainly from increases in income received fromcharitable activities, of which the increase in funding for theEnterprise Fellowships and Scottish Government ResearchFellowships was the largest contribution.
Voluntary income (note 4) of 0.43m includes a final transferto the Foundations CRF fund from the winding up of theCaledonian Research Foundation and the first contributionsfrom the Friends of the Society corporate partnersof the RSE.
Incoming resources from charitable activities of 3.94m
increased by 16% from the 2008-09 level of 3.38m. Theincreases for research funded by the Scottish Governmentand in all the Enterprise Fellowship schemes were offset bydecreases as a result of the conclusion of a series of grantsfrom Lloyds TSB Foundation for Scotland and the Gannochy
Trust Innovation Award not being awarded in 2009.
Resources expended
Total resources expended increased by 15% (0.70m). Thisreflects the increased expenditure on grant-giving charitableactivities. Governance and costs of generating funds weresimilar to previous years.
Cost of generating funds (note 6) includes the cost of theFellowship office, the costs of building management as wellas fundraising costs, both direct and management time insecuring funding.
Overall, expenditure on charitable activities has increasedby 0.68m. Grants payable in support of research andinnovation made up the major part of this increase, risingfrom 2.67m to 3.64m. This reflected the increase inEnterprise Fellowships, both those funded by ScottishEnterprise and by the Research Councils, and the increasednumber of Scottish Government Research Fellowsappointed. Expenditure on international researchconnections and influencing public policy also increased,the latter due to an increase in staff resource. In 2009,expenditure included 0.21m on the James Clerk Maxwellstatue and this, and a small decrease in expenditure onpublic engagement, offset the other increases.
Governance costs, which have remained at a similar levelto previous years, represent around 2.9% of total income.
Transfers between funds shown in the Statement of FinancialActivities comprise the recurring transfer from the CapitalAsset Reserve of a total of 101,000 to match thedepreciation of buildings and the capital repayment of theloan to the Foundation; and a transfer on consolidation fromthe Foundation restricted fund balance to the General Fund,to reflect the actual RSE General Fund balance.
10
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
8/6/2019 Trustees Report & Accounts April 2009 March 2010
13/40
8/6/2019 Trustees Report & Accounts April 2009 March 2010
14/40
Independent Auditors Report to theTrustees of the Royal Society of Edinburgh
We have audited the financial statements of The Royal Society of
Edinburgh (RSE) for the year ended 31 March 2010 which
comprise the group statement of financial activities, the charity
statement of financial activities, the group balance sheet, the
charity balance sheet, the cashflow statement and the related
notes. These financial statements have been prepared in
accordance with the accounting policies set out therein.
This report is made solely to the charitys Trustees, as a body, inaccordance with section 44 (1)(c) of the Charities and Trustee
Investment (Scotland) Act 2005 and regulation 10 of the Charities
Accounts (Scotland) Regulations 2006 and the Laws of the RSE.
Our audit work has been undertaken so that we might state to
the charitys Trustees those matters we are required to state to
them in an auditors report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume
responsibility to anyone other than the charity and its Trustees as
a body, for our audit work, for this report, or for the opinions we
have formed.
Respective responsibilities of trustees and auditors
The Trustees responsibilities for preparing the Trustees Annual
Report and the financial statements in accordance with
applicable law and United Kingdom Accounting Standards
(United Kingdom Generally Accepted Accounting Practice) are
set out in the Statement of Trustees Responsibilities.
We have been appointed as auditors under section 44(1)(c) of the
Charities and Trustee Investment (Scotland) Act 2005 and report
in accordance with regulations made under that Act. Our
responsibility is to audit the financial statements in accordance
with relevant legal and regulatory requirements and International
Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial
statements give a true and fair view and are properly prepared inaccordance with the Charities and Trustee Investment (Scotland)
Act 2005 and regulation 8 of the Charities Accounts (Scotland)
Regulations 2006.
We also report to you if, in our opinion, the information given in
the Trustees Annual Report is not consistent with the financial
statements, if the charity has not kept proper accounting records,
if the charitys financial statements are not in agreement with
these accounting records, or if we have not received all the
information and explanations we require for our audit.
We read the Trustees Annual Report and consider the
implications for our report if we become aware of any apparent
misstatements within it.
Basis of audit opinion
We conducted our audit in accordance with International
Standards on Auditing (UK and Ireland) issued by the Auditing
Practices Board. An audit includes examination, on a test basis,
of evidence relevant to the amounts and disclosures in the
financial statements. It also includes an assessment of the
significant estimates and judgments made by the Trustees in
the preparation of the financial statements and of whether the
accounting policies are appropriate to the charitys
circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary inorder to provide us with sufficient evidence to give reasonable
assurance that the financial statements are free from material
misstatement, whether caused by fraud or other irregularity or
error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial
statements.
Opinion
In our opinion:
the financial statements give a true and fair view, in accordance
with United Kingdom Generally Accepted Accounting Practice,
of the state of the groups and the charitys affairs as at 31March 2010 and of the groups and charitys incoming
resources and application of resources for the year then
ended; and
the financial statements have been properly prepared in
accordance with the Charities and Trustee Investment
(Scotland) Act 2005, regulation 8 of the Charities Accounts
(Scotland) Regulations 2006 and the Laws of the RSE.
Henderson LoggieChartered Accountants and Statutory Auditors
(Eligible to act as an auditorin terms of section 1212 of the Companies Act 2006).
12
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
8/6/2019 Trustees Report & Accounts April 2009 March 2010
15/40
Group statement of financial activities(incorporating the income & expenditure account)
for year ended 31 March 2010
Note General Fund Designated Funds Restricted income Restricted funds 2010 Total 2009 Total
Income
Voluntary income 4 231,577 202,234433,811 2,615,665
Activities for generating income 4 258,362 258,362 256,030
Investment income 4 32,568 131,439 499,681 663,688 503,826
Incoming resources from generated funds 264,145 131,439 960,277 1,355,861 3,375,521
Incoming resources
from charitable activities 5 60,474 3,562,354 314,428 3,937,256 3,388,119
Total incoming resources 324,619 131,439 3,562,354 1,274,7055,293,117 6,763,640
Expenditure
Cost of generating funds 6 (188,083) (9,468) (70,387) (267,938) (252,372)
Charitable activities 6 (201,057) (104,807) (3,562,354) (1,065,190) (4,933,408) (4,245,512)
Governance 6 (114,751) (39,438) (154,189) (157,946)
Total resources expended (503,891) (114,275) (3,562,354) (1,175,015)(5,355,535) (4,655,830)
Net (outgoing)/incoming resources
before transfers (179,272) 17,164 99,690 (62,418) 2,107,810
Transfers between funds 197,824 (101,818) (96,006)
Other recognised gains/(losses)
Gains/(losses) on investment assets
Realised gains/(losses) 1,562 83,093 256,974 341,629 (101,176)
Unrealised gains/(losses) 10,848 576,923 2,285,521 2,873,292 (1,345,064)
Actuarial losses on
Lothian Pension Fund (607,000) (607,000) (212,000)
Net movement in funds (576,038) 575,362 2,546,179 2,545,503 449,570
Transfer of assets from the CRF 4 6,290,710
Net movement in funds after
transfer of assets (576,038) 575,362 2,546,179 2,545,503 6,740,280
Balance brought
forward at 1 April 2009 923,552 6,911,644 10,774,886 18,610,082 11,869,802
Balance carried forward at31 March 2010 347,514 7,487,006 13,321,065 21,155,585 18,610,082
13
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
8/6/2019 Trustees Report & Accounts April 2009 March 2010
16/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
Group balance sheetat 31 March 2010
Note 2010 2010 2009 2009
Fixed assets
Tangible fixed assets 14 3,880,489 3,984,587
Fixed asset investments
Investments at market value 15 16,083,212 12,884,518
19,963,701 16,869,105
Current assets
Debtors 16 770,792 462,559
Cash at bank and in hand 310,904 372,913
Money Market deposits Designated funds 95,864 95,388
Money Market deposits Restricted funds 1,499,620 1,167,068
Money Market deposits General funds 636,180 687,790
3,313,360 2,785,718
Current liabilities
Creditors: amounts falling due within one year 17 (1,316,484) (553,513)
Net current assets 1,996,876 2,232,205
Total assets less current liabilities 21,960,577 19,101,310
Provision for liabilities and charges 18 (389,992) (630,228)
Net assets excluding pension fund 21,570,585 18,471,082
Lothian Pension Fund definedbenefit Scheme (liability) /asset 23 (415,000) 139,000
Net assets after pension fund (liability) /asset 21,155,585 18,610,082
Funds
General Fund 762,514 784,552
Add: Pension reserve (415,000) 139,000
19 347,514 923,552
Designated Funds 20 7,487,006 6,911,644
Restricted Funds 21 13,321,065 10,774,886
Total funds 21,155,585 18,610,082
The accounts were approved by the Council on 6 September 2010 and signed on its behalf by:
Ewan Brown, CBE
Treasurer
14
8/6/2019 Trustees Report & Accounts April 2009 March 2010
17/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
RSE balance sheetat 31 March 2010
Note 2010 2010 2009 2009
Fixed assets
Tangible fixed assets 14 2,171,157 2,228,585
Fixed asset investments
Investments at market value 15(a) 5,242,639 4,214,788
Loan to RSE Scotland Foundation 15(b) 1,750,712 1,797,520
9,164,508 8,240,893
Current assets
Debtors 16 604,866 348,946
Cash at bank and in hand 195,667 224,400
Money Market deposits Designated funds 95,864 95,388
Money Market deposits Restricted funds 1,499,620 1,167,068
Money Market deposits General funds 636,180 687,790
3,032,197 2,523,592
Current liabilitiesCreditors: amounts falling due within one year 17 (1,709,422) (925,467)
Net current assets 1,322,775 1,598,125
Total assets less current liabilities 10,487,283 9,839,018
Provision for liabilities and charges 18 (389,992) (630,228)
Net assets excluding pension fund 10,097,291 9,208,790
Lothian Pension Funddefined benefit scheme (liability)/asset 23 (415,000) 139,000
Net assets after pension fund (liability) /asset 9,682,291 9,347,790
Funds
General Fund 762,514 784,552
Add: Pension reserve (415,000) 139,000
19 347,514 923,552
Designated Funds 20 7,487,006 6,911,644
Restricted Funds 21 1,847,771 1,512,594
Total funds 9,682,291 9,347,790
The accounts were approved by the Council on 6 September 2010 and signed on its behalf by:
Ewan Brown, CBE
Treasurer
15
8/6/2019 Trustees Report & Accounts April 2009 March 2010
18/40
General Fund Designated Funds Restricted income Restricted funds 2010 Total 2009 Total
Income
Voluntary income 231,576 48,966280,542 2,487,761
Investment income 118,907 131,439 63,274 313,620 385,635
Incoming resources from generated funds 350,483 131,439 _ 112,240 594,162 2,873,396
Incoming resources
from charitable activities 70,142 4,052,633 4,122,775 3,399,204
Total incoming resources 420,625 131,439 4,052,633 112,2404,716,937 6,272,600
Expenditure
Cost of generating funds (188,083) (9,468) (197,551) (190,442)
Charitable activities (201,057) (104,807) (4,052,633) (91,687) (4,450,184) (3,815,434)
Governance (114,751) (114,751) (125,410)
Total resources expended (503,891) (114,275) (4,052,633) (91,687)(4,762,486) (4,131,286)
Net incoming/(outgoing) resources
before transfers (83,266) 17,164 20,553 (45,549) 2,141,314
Transfers between funds 101,818 (101,818)
Other recognised gains/(losses)
Gains/(losses) on investment assets
Realised gains/(losses) 1,562 83,093 39,610 124,265 (101,942)
Unrealised gains/(losses) 10,848 576,923 275,014 862,785 (837,223)
Actuarial gains (losses) on
Lothian Pension Fund (607,000) (607,000) (212,000)
Net movement in funds (576,038) 575,362 335,177 334,501 990,149
Balance brought
forward at 1 April 2009 923,552 6,911,644 1,512,594 9,347,790 8,357,641
Balance carried forward at
31 March 2010 347,514 7,487,006 1,847,771 9,682,291 9,347,790
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
RSE statement of financial activities(incorporating the income & expenditure account)
for year ended 31 March 2010
16
8/6/2019 Trustees Report & Accounts April 2009 March 2010
19/40
17
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
Group cash flow statementfor the year ended 31 March 2010
2010 2010 2009 2009
Cash flow statement
Net cash outflow from operating activities (490,497) (364,340)
Returns on investments and servicing of finance:
Interest received 31,429 73,228
Dividends received 632,459 430,598
663,688 503,826
Capital expenditure and financial investment:
Purchase of tangible fixed assets (18,110) (37,328)
Proceeds from sale of investments 4,008,894 2,816,886
Purchases of investments (3,951,866) (2,790,704)
Capital receipt 157 190,560
39,075 179,414
Net cash flow before financing: 212,266 318,900
Appeal receipts 7,143 8,910
Increase in cash in the year 219,409 327,810
Reconciliation of net cash flow to movement in net funds
Increase in cash in the year 219,409 327,810
Net funds at beginning of year 2,323,159 1,995,349
Net funds at end of year (note 27) 2,542,568 2,323,159
Reconciliation of net movement in funds
to net cash outflow from operating activities
Net (outgoing)/ incoming resources before transfers (62,418) 8,398,520
Retirement benefit scheme current service cost 61,000 61,000
Retirement benefit scheme contributions (120,000) (94,000)Retirement benefit scheme finance cost 6,000 (26,000)
Appeal receipts (7,143) (8,910)
Dividends receivable (632,259) (430,598)
Interest receivable (31,429) (73,228)
Depreciation 122,208 120,299
Capital receipt in cash (157) (190,560)
Capital receipt in shares (40,801) (8,253,887)
Increase in debtors (308,233) (244,603)
Increase in creditors 762,971 99,676
Movement on provision for liabilities (240,236) 277,951
Net cash outflow from operating activities (490,497) (364,340)
8/6/2019 Trustees Report & Accounts April 2009 March 2010
20/40
1 Accounting basis
The accounts have been drawn up to
comply with the provisions of the Charities &
Trustee Investment (Scotland) Act 2005 and
the Charities Accounts (Scotland) Regulations
2006, and follow the recommendations of the
Statement of Recommended Practice for
charities (SORP) approved by the Accounting
Standards Board in February 2005 and
applicable accounting standards. Theaccounts have been prepared under the
historical cost accounting rules as modified
to include the revaluation of investments.
The accounts comprise five primary financial
statements: the Group and RSE statement of
financial activities incorporating the income
and expenditure account, the Group and
RSE balance sheet and the Group cash flow
statement.
The consolidated financial statements include
the financial statements of the RSE and
of entities which are under its control: RSE
Scotland Foundation and BP ResearchFellowship Trust. As the objectives of each of
these entities are narrower than those of the
RSE, they have been treated as restricted
funds.
2 Funds
The RSEs funds are classified in accordance
with the definitions in SORP into Restricted
Funds, where there are restrictions placed by
a donor as to the use of income or capital,
Designated Funds where the Society has set
aside sums from its unrestricted funds for a
particular purpose and the General(unrestricted) Fund. The classifications made
are as follows:
General Fund
A discretionary Fund available to the Council
to meet the ordinary activities of the Society.
Designated Funds
Capital Asset Reserve Fund representing
the book cost of the buildings at
22-24 George Street and 26 George Street
together with the building project loan to the
RSE Scotland Foundation.
Development Appeal Fund to provide
development finance to implement the RSE
Strategic Framework.
Programme Fund a fund created to act as
a source of funding for meetings activities.
C H Kemball Fund income from this fund is
used to provide hospitality for distinguished
visitors from other learned societies and
Academies.
Dr James Heggie Fund income from this
fund supports the RSEs activities with
young people.
Grants Fund a fund created by contributions
and legacies from Fellows and used toprovide grants to support research activities
to Fellows.
Restricted Income Fund income funds
received for expenditure on current projects.
Restricted Funds
Robert Cormack Bequest to promote
astronomical knowledge and research
in Scotland.
Lessells Trust to fund scholarships abroad
for engineers.
Auber Bequest to fund research in Scotlandand England by naturalised British citizens
over 60 years of age.
Prizes Fund to fund various prizes.
Dryerre Fund to fund postgraduate
scholarships in medical or veterinary
physiology.
Fleck Bequest Fund to promote interest,
knowledge and appreciation of science and
its applications throughout Scotland.
Piazzi Smyth Legacy Fund to fund high
altitude astronomical research.
Sillitto Fund to promote interest in physics
among young people.
CASS Fund to fund academic / industrial
liaison.
Retailing Seminar Fund to fund a
programme of seminars on retailing.
Edinburgh Drug Absorption Foundation Fund
to fund a series of conferences on the broad
theme of Drugs Futures.
RSE Scotland Foundation a trust to
advance the education of the public inScotland in science, engineering and
technology, incorporating assets transferred
from the CRF. The CRF funds remain
restricted until pre-existing awards and
appointments are concluded.
BP Research Fellowship Trust a trust
to fund postdoctoral research fellowships
in Scotland.
3 Accounting policies
Incoming resources
Voluntary incomeSubscriptions are accounted for on the basis
of the subscription year to October 2010
and include income tax recoverable on the
subscriptions paid under Gift Aid.
Revenue grants are credited to income in
the period in which the RSE becomes entitled
to the resources.
Donations of a recurring nature from other
charitable foundations and one-off gifts and
legacies included in other income are taken
to revenue in the period to which they relate.
Investment incomeInterest and dividends are accounted for
in the year in which they are receivable.
Incoming resources for charitable activities
Incoming resources for activities are
accounted for on an accruals basis.
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
notes to the financial statements
18
8/6/2019 Trustees Report & Accounts April 2009 March 2010
21/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
notes to the financial statements
19
Publication income receivable in foreign
currencies is converted into sterling at rates
of exchange ruling at the date of receipt.
Incoming resources for research fellowships
are accounted for in the period in which the
RSE becomes entitled to the resources.
Income received for specific projects, and
received in advance of the commencement
of the project, is deferred. If the project were
not to proceed as planned, the RSE would
not be entitled to retain the funds. For
performance-related grants, where entitlement
to the incoming resource only arises with the
performance of the specific outputs agreed
under the contracts, income is deferred.
Resources expended
Expenditure and support costs
All resources expended are included on
an accruals basis, having regard to any
constructive obligations created by
multi-year grant commitments.
Where directly attributable, resources
expended are allocated to the relevant
functional category. Overhead and support
costs are allocated to functional category
on the basis of direct staff costs in each
area of activity.
Cost of generating funds
The cost of generating funds includes
expenditure incurred in supporting the
Fellowship and incurred on fundraising
and development initiatives.
Charitable activities
Grants payable are recognised as a liability
when the RSE is under an actual or
constructive obligation to make a transfer to
a third party. Where grants are time related
to future periods and are to be financed by
specific grants receivable in those future
periods, they are treated as liabilities of those
periods and not as liabilities at balance sheet
date. Such grants are disclosed as future
commitments.
Governance costs
Governance costs are those incurred in
connection with the management of RSE
assets, organisational administration and
compliance with constitutional and statutory
requirements.
Tangible fixed assets, depreciation
and repairs
The RSEs principal assets are its buildings in
George Street, Edinburgh. Under FRS15 the
Society depreciates the buildings assuming
a 50-year life. It is the policy of the Council to
maintain the buildings to a high standard. Any
permanent diminutions in value are reflected in
the statement of financial activities. Costs of
repairs and maintenance are charged against
revenue.
Expenditure incurred by the RSE Scotland
Foundation in the improvements to
26 George Street is being depreciated from the
date of completion of the refurbishment over
the period of the lease to the RSE Scotland
Foundation to 30 June 2047.
Minor equipment is charged against revenue
in the year of purchase. Computer and
audio-visual is depreciated on a straight line
basis over 320 years.
Investments
Investments are stated at their market value
at the balance sheet date. Gains and losses
on disposal and revaluation of investments
are charged or credited in the statement offinancial activities and allocated to funds in
accordance with their proportionate share
of the investment portfolio.
Pensions
The RSE participates in defined benefit
pension schemes which are externally funded.
The cost of providing pensions is allocated
over employees working lives with the RSE
and is included in staff costs.
8/6/2019 Trustees Report & Accounts April 2009 March 2010
22/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
notes to the financial statements4 Incoming resources
Current year 2010 Voluntary income Activities for Investment Promotion of Other charitable Total 2010
generating income research and activitiesinnovation
Fellows 206,940 _ 206,940
Individuals 8,386 8,747 17,133
Legacies
Companies 16,250 33,262 49,512
Charitable trusts 48,966 22,383 52,315 123,664
Scottish Government 1,578,362 679,755 2,258,117
Public sector bodies 1,235,751 12,253 1,248,004
Bank interest 31,429 31,429
Dividends 195,853 195,853
RSE 280,542 227,282 2,836,496 786,332 4,130,652
BP Research Fellowship Trust
-dividends and interest 131,224 131,224
RSE Scotland Foundation
grant re SBF 120,620 120,620
rental income 258,362 258,362
charitable activities 314,428 314,428
dividends and interest 305,182 305,182
401,162 258,362 663,688 2,836,496 1,100,760 5,260,468 Transfer of assets from the CRF 32,649 32,649
433,811 258,362 663,688 2,836,496 1,100,760 5,293,117
Voluntary income Activities for Investment Promotion of Other charitable Total 2009Prior year 2009 generating income research and activities
innovation
Fellows 196,615 196,615
Individuals 45,495 47,746 93,241
Legacies 2,158,734 2,158,734
Companies 30,894 30,894
Charitable trusts 86,918 518,937 182,318 788,173
Scottish Government 1,126,993 645,580 1,772,573
Public sector bodies 471,822 81,893 553,715
Bank interest 73,228 73,228
Dividends 224,197 224,197
RSE 2,487,762 297,425 2,117,752 988,431 5,891,370
BP Research Fellowship Trust
-dividends and interest 152,304 152,304
RSE Scotland Foundation
grant re SBF 127,903 127,903
rental income 256,030 256,030
charitable activities 281,936 281,936 dividends and interest 54,097 54,097
2,615,665 256,030 503,826 2,117,752 1,270,367 6,763,640 Transfer of assets from the CRF 6,290,710 6,290,710
8,906,375 256,030 503,826 2,117,752 1,270,367 13,054,35020
8/6/2019 Trustees Report & Accounts April 2009 March 2010
23/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
notes to the financial statements4 Incoming resources (continued)
4a Voluntary income
21
2010 2009
Contributions fromRSEFellows
Admission fees 11,200 12,320
Annual subscriptions 167,280 160,576
Income tax recoverable under Gift Aid 28,460 23,719
206,940 196,615
Lessells Trust additional receipt 8,008 12,160
Appeal receipts 7,143 8,910
Legacies 2,158,735
Fleck Trust transfer 40,958 Receipts for James Clerk Maxwell Statue 109,580
Friends of the Society corporate partners 16,250
Other income 1,243 1,762
280,542 2,487,762
In addition to the donations set out above, the RSE receives donations made specifically in support of activities which are included in activitiesincome (see note 26(b)).
5 Incoming resources from charitable activities2010 2009
Scottish Government Grant research fellowships 1,456,169 1,050,130
Scottish Government Grant arts & humanities awards 122,193 76,863
Franco-Scottish PhD scholarships 12,000
Caledonian Research Foundation 21,237
Scottish Enterprise 719,598 228,148
BBSRC Enterprise Fellowships 449,060 201,812
STFC Enterprise Fellowships 65,593 29,862
Lloyds TSB Foundation for Scotland 22,383 497,700
Scottish Crucible 1,500
2,836,496 2,117,752
Scottish Government Grant generating & communicating knowledge 372,358 372,161Scottish Government Grant International activities 307,398 273,419
Gannochy Trust 2,607 105,000
Scottish Funding Council 37,316
Meetings 41,457 102,652
Policy and advice income 33,672 73,577
IEEE / RSE / Wolfson James Clerk Maxwell Award 20,776 19,494
Educational activities 7,803 4,597
Sale of sundry publications 261 215
786,332 988,431
RSE Scotland Foundation Journal publications 148,165 134,390RSE Scotland Foundation Conference facilities letting 150,623 147,546RSE Scotland Foundation Science and society 15,640
314,428 281,936
3,937,256 3,388,119
Further information relating to grants, donations and receipts and their application is set out in note 26.
8/6/2019 Trustees Report & Accounts April 2009 March 2010
24/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
notes to the financial statements6 Resources expended
2010 2009
Direct costs Support costs Total 2010 Direct costs Support costs Total 2009
(Note 12) (Note 12)
Costs of generating funds
Fundraising 2,893 106,903 109,796 49,863 34,199 84,062
Fellows subscriptions 78,286 78,286 100,842 100,842
Appeal donations 9,468 9,468 5,538 5,538
2,893 194,657 197,550 49,863 140,579 190,442
RSE Scotland FoundationBuilding management 70,032 70,032 61,592 61,592
BP Research Fellowship TrustInvestment fees 356 356 338 338
Total costs of generating funds 3,249 264,689 267,938 50,201 202,171 252,372
Charitable activities
Enhancing World-Class Research 2,132,356 277,395 2,409,751 1,914,665 276,830 2,191,495
Increasing International Research Connections 193,765 114,980 308,745 178,995 97,437 276,432
Improving Connections Between
Business and Academia 1,126,786 107,858 1,234,644 482,772 95,896 578,668Increasing Numbers Taking Science as a Career 8,865 46,928 55,793 12,757 60,553 73,310
Enhancing Public Appreciationof Science and Culture 128,357 239,151 367,508 165,680 227,887 393,567
Informing and Influencing Public Policy 40,667 179,065 219,732 53,644 125,327 178,971
3,630,796 965,377 4,596,173 2,808,513 883,930 3,692,443
RSE Scotland FoundationJournal Publications 86,602 36,181 122,783 95,594 32,390 127,984
James Clerk Maxwell Statue 1,247 1,247 208,586 208,586
SBF 105,620 15,000 120,620 112,903 15,000 127,903
Conference facilities letting 92,585 92,585 88,596 88,596
193,469 143,766 337,235 417,083 135,986 553,069
Total cost of charitable activities 3,824,265 1,109,143 4,933,408 3,225,596 1,019,916 4,245,512
Governance (note 11)
RSE 6,956 107,795 114,751 6,612 118,798 125,410
RSE Scotland Foundation 3,345 34,897 38,242 3,250 28,041 31,291
BP Research Fellowships Trust 1,196 1,196 1,245 1,245
Total governance costs 11,497 142,692 154,189 11,107 146,839 157,946
Resources expended 3,839,011 1,516,524 5,355,535 3,286,904 1,368,926 4,655,830
Central support costs as set out in note 12 have been allocated to activities in proportion to the employment cost in each area of activity.
22
8/6/2019 Trustees Report & Accounts April 2009 March 2010
25/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
notes to the financial statements7 Grants payable
23
2010 2009
Promotion of research (note 8) 2,351,920 2,124,730
Prizes and grants 57,831 66,765
Promotion of Innovation (Note 9) 1,234,644 482,772
3,644,396 2,674,267
8 Increasing Numbers of World-Class Researchers
2010 2009
Promotion of Research 2,351,920 2,124,730
Scottish Government Fellowships 1,347,903 975,263
Marie Curie COFUND actions 1,240
Arts & Humanities Workshop Grants 106,428 71,582
Franco-Scottish PhD scholarships 12,000
CRF European Fellowships 21,881 17,364CRF Personal Fellowships 272,654
Lloyds TSB Foundation for Scotland Fellowships 476,925
Robert Cormack Bequest 4,901 4,610
John Moyes Lessells Scholarship 19,166 18,412
Auber Bequest Awards 3,000
Henry Dryerre Scholarship 19,543 19,340
1,795,476 1,596,736
Library 200
RSE 1,795,476 1,596,936
BP Research Fellowship Trust 198,728 171,082
RSE Scotland Foundation CRF 88,615 91,520
2,082,819 1,859,538
Support costs (note 6) 269,101 265,192
Prizes and Grants 49,537 55,127
Support costs (note 6) 8,294 11,638
57,831 66,638
2,409,751 2,191,495
An analysis of institutions and individual awards made under this expenditure heading is included in the Societys Review 2009,obtainable from the address on the back cover.
8/6/2019 Trustees Report & Accounts April 2009 March 2010
26/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
notes to the financial statements9 Increasing connections between business and academia
2010 2009
Scottish Enterprise Fellowships 647,032 187,695
STFC Enterprise Fellowships 57,616 23,625
BRSRC Enterprise Fellowships 414,515 186,452
Gannochy Trust 7,623 85,000
1,126,786 482,772
Support costs (Note 6) 107,858 95,896
1,234,644 578,668
10 Enhancing public appreciation of science and culture
Meetings 79,621 115,308
Publications 48,736 50,372
128,357 165,680
Support costs (Note 6) 239,151 227,887
367,508 393,567
The RSE Scotland Foundation became publisher of the RSEs journals and year book with effect from the 1997 volumes. The RSE retainscopyright and incurs editorial costs in respect of these publications. The RSE has made a donation to the RSE Scotland Foundation equivalentto its net deficit on publications.
11 Governance
2010 2009
Management and secretariat 105,045 116,416
Audit fee 11,497 11,107
Other professional advice from auditors 2,750 2,382
119,292 129,905
RSE Scotland Foundation Management and secretariat 34,897 28,041
154,189 157,946
24
8/6/2019 Trustees Report & Accounts April 2009 March 2010
27/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
notes to the financial statements12 Support costs
25
2010 2009
Salaries (note 13) 1,007,318 914,868
Staff training, agency and recruitment costs 37,522 38,918
Non-cash pension cost adjustments (FRS 17) (53,000) (59,000)
991,840 894,786Other costs
Establishment expenses 191,555 193,476Computer and equipment costs 107,875 29,119
Communication, stationery and printing costs 40,833 59,957
Travel and subsistence, hospitality 28,531
Publicity 18,793 17,923
Miscellaneous 1,209 8,992
Professional fees 13,680 22,543
Depreciation 122,208 120,299
524,684 474,140
Total central costs 1,516,524 1,368,926
Support costs have been allocated to activities in proportion to the employment cost in each area of activity as set out in note 6.
13 EmployeesTotal 2010 Funded Funded by RSE Total
by Foundation 2010 2009
Wages and salaries 806,728 102,954 703,774 741,632
Social security costs 60,591 6,690 53,901 55,701
Other pension costs 139,999 19,103 120,896 117,535
1,007,318 128,747 878,571 914,868
The average number of employees of the RSE including those employed under joint contracts with the RSE Scotland Foundation was 29 (2009:28).
One member of staff earned over 60,000 per year and is a member of a defined benefit pension scheme.
8/6/2019 Trustees Report & Accounts April 2009 March 2010
28/40
8/6/2019 Trustees Report & Accounts April 2009 March 2010
29/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
notes to the financial statements
27
15 Fixed asset investments (continued)
(b) Loan by RSE to RSE Scotland Foundation 2010 2009
Due within one year 46,808 46,808
Due after one year 1,703,904 1,750,712
1,750,712 1,797,520
The loan bears interest at 4% per annum, capped at the amount of rent received by the Foundation and is repayable over the period
to 30 June 2047, the expiration of the lease of 26 George Street.
16 Debtors2010 2009
General debtors 563,664 309,874
Prepayments and accrued income 15,144 14,795
Income tax recoverable 26,058 24,277
RSE 604,866 348,946
RSE Scotland Foundation - Debtors 151,363 82,909
RSE Scotland Foundation - Prepayments 10,228 21,879
BP Research Fellowships Trust 4,335 8,825
Group 770,792 462,559
17 Creditors: Amounts falling due within one year
Group 2010 2009
General creditors 550,887 378,026
Accruals 61,713 69,535
VAT payable 34,131 18,098
University of Glasgow (note 22) 7,612 6,723
Deferred income 510,486 29,165
Event income deferred 47,130 30,000
Advance receipts Publications 104,525 21,966
1,316,484 553,513
Deferred income and advance receipts analysis
At 1 April 2009 Receivedin year Recognisedin year At31 March 2010
Marie Curie COFUND 444,518 444,518
Friends of the Society 24,250 (16,250) 8,000
Climate Change Inquiry 11,209 56,750 (12,485) 55,474
Chemistry Project 17,956 (15,462) 2,494
29,165 525,518 (44,197) 510,486
Journal receipts 21,966 230,724 (148,165) 104,525
Symposia income 30,000 30,744 (13,614) 47,130
8/6/2019 Trustees Report & Accounts April 2009 March 2010
30/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
notes to the financial statements17 Creditors: Amounts falling due within one year (continued)
RSE 2010 2009
General creditors 483,950 367,036
RSE Scotland Foundation current account 660,244 492,543
Deferred income 510,486 29,165
University of Glasgow (note 22) 7,612 6,723
Symposia income deferred 47,130 30,000
1,709,422 925,467
18 Provision for liabilities and charges
Commitments for research fellowships
At 1 April 2009 Group & RSE
New commitments:
Lloyds TSB Foundation for Scotland Research Fellowships
Grants paid in the year (240,236)
At 31 March 2010
The provision represents amounts payable under a constructive obligation in respect of research fellowships due as follows:
2010-11 165,868; 2011-12 111,370; 2012-13 48,899
19 General Fund
At 1 April 2009
Net movement in funds for the year from statement of financial activities (576,038)
At 31 March 2010
28
8/6/2019 Trustees Report & Accounts April 2009 March 2010
31/40
R O Y A L S O C I E T Y O F E D I N B U R G H
Trustees Report&Accounts 20092010
notes to the financial statements
29
20 Designated Funds
At 1 April 2009 Investment Other income Expenditure Gains/ (Losses) Transfers At 31 March 2010
income
Capital Asset Reserve 3,997,926 (101,818) 3,896,108
Development Appeal Fund 2,143,228 95,160 477 (89,099) 479,578 2,629,344
Programme Fund 90,192 4,191 21,122 115,505
CH Kemball Fund 20,300 943 4,754 25,997
Grants Fund 478,376 22,229 (16,530) 112,030 596,105Dr James Heggie Fund 181,622 8,439 (8,646) 42,532 _ 223,947
6,911,644 130,962 477 (114,275) 660,016 (101,818) 7,487,006
The transfers represent the release from the Capital Asset Reserve of a total of 101,818 to match the depreciation of buildings and the amountof capital repayment of the loan to the Foundation.
21 Restricted Funds
At 1 April 2009 Investment Other income Expenditure Gains/ (Losses) Transfers At 31 March 2010
income
Robert Cormack Bequest 89,737 4,170 (5,882) 21,014 109,039
Lessells Trust 364,899 16,956 8,008 (26,087) 85,455 449,231
Auber Bequest 345,357 16,048 (9,550) 80,878 432,733
Prizes Fund 58,940 2,739 (5,568) 13,803 69,914
Dryerre Fund 405,855 18,859 (27,240) 95,046 492,520
Fleck 46,193 2,146 40,958 (876) 10,818 99,239
Piazzi Smyth 11,722 545 (941) 2,745 14,071
Sillitto 34,024 170 (148) 34,046
Others 20,772 965 (394) 4,865 26,208