Trustees' Report & Accounts
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Trustees Report & Accounts April 2014 – March 2015 Inspiration I Engagement I Expertise ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015 Contents Council of the RSE 2014 –15 2 Legal and Administrative Information 3 Trustees’ Annual Report Overview 4 Structure, governance and management 4 Objectives and activities 6 Achievements in the year 6 –12 Financial review and policies 12 Future plans 14 Independent Auditors’ Report to the Council of The Royal Society of Edinburgh 15 Accounts Group statement of financial activities (incorporating the income and expenditure account) 16 Group balance sheet 17 RSE balance sheet 18 RSE statement of financial activities (incorporating the income and expenditure account) 19 Group cash flow statement 20 Notes to the financial statements 21 –40 1 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015 The Royal Society of Edinburgh is registered in Scotland as Scottish Charity No. SC000470 The Trustees are the Council Members elected during the financial year (1 April 2014 to 31 March 2015) Council Until 13 October 2014 From 13 October 2014 President Sir John ARBUTHNOTT Dame Jocelyn BELL BURNELL DBE Vice-Presidents Professor A DOMINICZAK OBE Professor N E HAITES OBE Professor G D CAIE Professor J W WALLACE CBE Mr I C RITCHIE CBE Mr I C RITCHIE CBE Sir David WALLACE CBE Sir David WALLACE CBE Professor T S DURRANI OBE Professor T S DURRANI OBE General Secretary Professor A ALEXANDER OBE Professor A ALEXANDER OBE* Treasurer Mr G R WILSON CB Mr G R WILSON CB* Fellowship Secretary Professor A MILLER Professor J M C CONNELL Councillors Professor D A CANTRELL CBE Professor D A CANTRELL CBE Professor R J CORMACK Professor R J CORMACK Professor B E CRAWFORD OBE Professor B E CRAWFORD OBE Sir Muir RUSSELL KCB Sir Muir RUSSELL KCB Professor Dame Joan STRINGER DBE Professor Dame Joan STRINGER DBE* Officers and Staff Until 13 October 2014 From 13 October 2014 Curator Dr I G BROWN Dr I G BROWN Research Awards Convener Professor S P BEAUMONT OBE Professor S P BEAUMONT OBE International Convener Professor T S DURRANI OBE Professor T S DURRANI OBE Programme Convener Sir Andrew CUBIE CBE Sir Andrew CUBIE CBE Young People’s Programme Convener Dr C R D VAN DER KUYL Dr C R D VAN DER KUYL Chair of RSE Scotland Foundation Professor D A RITCHIE CBE Professor D A RITCHIE CBE* Education Committee Convener Professor S A BROWN OBE Professor S A BROWN OBE Chair of RSE Scotland SCI0 Professor P H HOLMES OBE Professor P H HOLMES OBE Chief Executive Dr W DUNCAN Dr W DUNCAN* Director of Finance Miss K F M ELLIS Miss K F M ELLIS* Director of Corporate Services Mr G HERBERT Mr G HERBERT* Director of Communications and Business Development Mr G ADAM Mr G ADAM* * Member of Executive Committee from 13 October 2014 2 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015 Legal and Administrative Information Auditors Baker Tilly UK LLP First Floor, Quay 2 139 Fountainbridge Edinburgh Bankers Bank of Scotland plc 38 St Andrew Square Edinburgh Stockbrokers /Investment Advisers Speirs & Jeffrey & Co Ltd George House 50 George Square Glasgow Solicitors Shepherd & Wedderburn WS 1 Exchange Crescent Conference Square Edinburgh Further information about the activities of the Royal Society of Edinburgh and additional copies of this Trustees' Report may be obtained from: Dr W Duncan Chief Executive The Royal Society of Edinburgh 22 – 26 George Street Edinburgh EH2 2PQ 3 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015 Overview • Continuing support for the Young Academy of Scotland and its nine Working Groups. The RSE is Scotland’s National Academy. It has made a major contribution to Scottish society since 1783 through The group result for the year on page 13 of a surplus of Fellows, such as Adam Smith, Walter Scott, James Clerk £84,000 again includes several unplanned items – a further Maxwell, James Black and Peter Higgs, whose payment re sales from the digitised historical jounals of achievements resonate internationally. It is unique in Britain £66,000, a surplus in restricted funds arising from the and distinctive internationally in the breadth of its Fellowship, continued impact of early resignation of CRF research fellows which ranges across the sciences, medicine, engineering, amounting to £33,000 and the final payment of a legacy from the social sciences, arts, humanities, business and public Dr Gethin Lewis of £10,000. Contributions from Fellows to the service. Its purpose is to promote excellence across the New Enlightenment Fund added a further £8,000. whole range of human understanding and the use of that understanding in the betterment of the national and The underlying financial outcome for the year from operations international society of which it is part. was thus a deficit of £33,000, an improvement on the previous year and on the expected budget deficit. This resulted from In recent years, the activities of the RSE have both savings in operational costs and improvement in net property deepened and diversified in contributing to Scotland’s income. economic, social and cultural prosperity. Over the year ended 31 March 2015, we delivered a wide range of public benefit activities, many in partnership with and/or supported £’000 by others with common goals in mind. In delivering these activities, we drew upon the considerable strengths and varied expertise of RSE Fellows across a very wide range Total net incoming resources 84 of disciplines. These Fellows played an active role in Less: maintaining the highest–quality standards of delivery and the value of Fellows’ time, given pro bono , would have Legacy – Dr Lewis (10) amounted to over £1m. Sales of digital archive (66) The highlights of the year included: Surplus of CRF income (33) • Appointing six new postdoctoral research fellows, New Enlightenment fund including five funded by Scottish Government grant-in aid contributions (8) administered through the Scottish Funding Council • Awarding 16 new Enterprise Fellows, 12 under the Phase IV Scottish Enterprise grant and four funded by Deficit on recurring activities (33) Research Councils • A new agreement between RSE and BBSRC securing funding of up to £0.81m to appoint up to 12 Enterprise Structure, Governance and management Fellows over the next three years The RSE Council, chaired by the President, comprises • A delegation to Beijing in May, lead by Sir John fourteen Trustees, including five Vice-Presidents, the General Arbuthnott, to meet key leaders in science and research in Secretary, the Treasurer, the Fellowship Secretary and five the Chinese Academy of Science (CAS) and the National Councillors. Subject to nomination and annual re-election Natural Science Foundation of China (NNSFC) by the Fellowship. Council members serve for three years; • A joint workshop in Beijing in May with the Chinese except for the General Secretary and Treasurer, who may Academy of Social Science addressing issues of serve for up to four years. All are unpaid. urbanization and sustainable development The Council is responsible for the strategic direction and • A high-level forum in Beijing in December between policies of the RSE, and normally meets quarterly. representatives of CAS and NNSFC and three of the eight Scottish Innovation Centres In addition to the fourteen members of Council, there are five elected office-bearers who are not Trustees of the RSE: the • Conclusion and dissemination of the Inquiry report Education Convener, the Programme Convener, the Research Spreading the Benefits of Digital Participation Awards Convener, the Young People’s Programme Convener • Following up on constitutional matters after the and the Curator. With the exception of the Curator, these Referendum with an event reviewing the draft legislation office-bearers are conveners of operational committees. Any implementing the Smith Commission report or all of the office-bearers are able to attend meetings of Council, when there is business at Council relevant to their • Talk Science@Irvine Bay – a series of talks and workshops responsibilities. The Council members and the office-bearers for school pupils (primary and secondary) and the general are all elected annually by the Fellowship in a postal ballot. public, focusing on science, engineering and IT New members of Council and the office-bearers are given an • Launch of the RSE@Scottish Borders programme for extensive induction through briefing notes and discussions schools and the public with the Chief Executive and senior staff. 4 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015 Structure, Governance and management The SCIO utilises the broad intellectual resources and (continued) talents of the Fellowship of the RSE and related bodies as appropriate to enhance the intellectual and cultural In October 2014, the laws of the RSE were amended so that advancement of Scotland. The SCIO currently oversees the delegated responsibility from the Council for delivery of the development of the RSE Young Academy of Scotland. Its RSE’s activities was transferred from the Executive Board to Trustees are appointed by RSE Council and serve for up to a new Executive Committee. three years in the first instance and may serve for a further In the previous governance structure, the Executive Board three years thereafter. was chaired by the General Secretary, and also had as its members, the Treasurer, the Conveners of the main operational committees and the Curator, as well as the Chair Statement of Council’s responsibilities of the RSE Scotland Foundation, a representative of the RSE The Council is responsible for preparing the Annual Report Young Academy and senior executive staff. The Executive and the financial statements in accordance with applicable law Board normally met quarterly and reported to the Council. and United Kingdom Accounting Standards (United Kingdom The new Executive Committee is also chaired by the General Generally Accepted Accounting Practice).