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
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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
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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.
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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). Under charities Secretary and has as its members, the Treasurer, the legislation applicable in Scotland, the Council is required to Convener of the RSE Scotland Foundation, one Trustee prepare accounts for each financial year that give a true (other than the President) chosen by the Council, the Chief and fair view of the state of affairs of the RSE itself and of Executive and up to three other members of the senior staff its consolidated connected charities and of the incoming chosen by the Chief Executive. All are entitled to vote. The resources and application of resources of the RSE itself and Executive Committee has power to co-opt other relevant of its consolidated connected charities for that period. In members, but they are not entitled to vote. preparing these financial statements, the Council is required to: The Audit & Risk Committee (see Risk Management), • select suitable accounting policies and apply them Fellowship Committee, Investment Committee and Prizes consistently; & Medals Committee report directly to Council. • observe the methods and principles of the Charities The operational committees include the Education SORP; Committee, the International Committee, the Business • make judgements and estimates that are reasonable Innovation Forum, various Research and Enterprise Awards and prudent; Committees, the Meetings Committee and the Young People’s Committee. These Committees largely, but not • state whether applicable accounting standards have exclusively, comprise Fellows of the RSE and are concerned been followed, subject to any departures disclosed with the operational delivery of the RSE’s varied activities. All and explained in the financial statements; and Fellows are actively encouraged to participate in the RSE’s • prepare the financial statements on a going-concern activities. basis, unless it is inappropriate to presume that the RSE Three other charities founded by and closely connected to will continue in operation. the RSE, the BP Research Fellowship Trust (the BP Trust), The Council is responsible for keeping accounting records that the RSE Scotland Foundation (the Foundation), and The RSE Scotland SCIO (the SCIO), are included in the consolidated disclose, with reasonable accuracy at any time, the financial financial statements. position of the RSE and which enable it to ensure that the financial statements comply with the Charities and Trustee The BP Trust was created following a donation of £2m in Investment (Scotland) Act 2005, the Charities Accounts 1988 from BP to support a scheme of post-doctoral research (Scotland) Regulations 2006 (as amended) and RSE’s own fellowships in specified subjects and which are awarded at Laws. It is also responsible for safeguarding the assets of the the sole discretion of the RSE. The RSE President, General RSE and, hence, for taking reasonable steps for the prevention Secretary and Treasurer are the BP Trustees, ex officiis . and detection of fraud and other irregularities. The Foundation plays a leading role in the RSE’s public The Council is also responsible for the maintenance and outreach activities and manages the premises in Edinburgh. integrity of the charity and financial information included on the Five of the Trustees of the Foundation are appointed ex-officio RSE’s website. Legislation in the United Kingdom governing of positions held on RSE Council and a minimum of four nominated Trustees are appointed for a three-year term by the preparation and dissemination of financial statements may the RSE Council. Following a transfer of assets in 2009, the differ from legislation in other jurisdictions. Foundation is also responsible for managing the programme of activities in support of research in Scotland, funded by the Caledonian Research Fund. The RSE Scotland SCIO (the SCIO), was incorporated in June 2012. Its purposes are: (a) the advancement of education; (b) the advancement of the arts, heritage, culture or science; and (c) the advancement of citizenship or community development.
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Risk management The performance of the RSE and its connected charities The Audit and Risk Committee, operating on a joint basis in the year, as compared to the output targets set in the with the Foundation, the SCIO and the BP Trust, reports Operational Plan, is reported to the Executive Committee, directly to the Council and the Trustees of the Foundation, the and thereafter to RSE Council and to the Trustees of the SCIO and the BP Trust. Its Chair, who cannot be a Trustee or other connected bodies These reports have again shown other Office Bearer of the RSE, is invited to attend Council that the majority (>95%) of the targets were reached or meetings as an observer. Its remit includes keeping under exceeded. In many areas, additional targets, not in the review the effectiveness of internal control and risk initial Operational Plan, were also delivered. management systems of the RSE and its connected The core public benefit programme activities are described charities. The Council believes that the existing systems and in more detail below, according to the outcomes to which the structure of decision taking and reporting through senior they contribute. staff, the Executive Committee and the Council continue to provide assurance that risks are assessed and carefully 1 Enhancing the capacity of world-class managed. science and culture researchers working in Scotland Objectives and Activities RSE Research Awards continued to support some of the The RSE vision is to continue to build a dynamic and most outstanding young scientists and innovators working relevant National Academy for Scotland, through a in Scotland today. The Research Fellowships Awards Fellowship of proven excellence that is unique in its breadth Programme successfully enhances the capacity of world- across the Sciences, Arts & Humanities and Commerce, class science and culture researchers working in Scotland; and to serve as an independent source of public inspiration, and increases Scotland’s research and development engagement and expertise in Scotland and beyond. connections internationally. The objectives, as set out in the RSE Strategic Framework The following awards in science were made during the year: 2012 – 2015 , are: • Scottish Government Personal Research Fellowships: Inspiration five awards from 54 applicants • To stimulate, support and reward excellence in learning • CRF Personal Research Fellowship: one award from and research in Scotland and the translation of new 11 applicants knowledge to business, wealth creation and economic • CRF European Visiting Research Fellowships: 13 in Arts, and social well-being Humanities and Social Sciences • To support the development of emerging Scottish talent • Cormack awards: one Undergraduate Prize, one that will be central to the future leadership and vitality of Postgraduate Prize and six Vacation Research Scottish society Scholarships, plus two small research grants Engagement • John Moyes Lessells Scholarship: seven travel grants. • To communicate with a wide audience, including The recipients of these awards have contributed to useful internationally, providing an important window on the knowledge in many areas – some highlights include: world for Scotland and being a conduit for relationships with other organisations on matters of national importance • Improving the public’s understanding of risk and uncertainty associated with the geological storage of • To enhance the public profile of Scottish intellectual CO 2 achievement • Developing a potential method for risk stratification of Expertise metastatic renal cancer patients • To provide independent and authoritative advice on • Forming “molecule-based magnets” for potential use in matters affecting the wellbeing of Scotland and its applications such as information storage and quantum people, and to initiate and lead public discussion on these computing and magnetic refrigeration matters • Studying methods of arsenic removal from contaminated • To share, with others, knowledge and information on ground water in Bangladesh. matters of scientific, economic, social and cultural importance Also funded by Scottish Government grant, the Arts & Humanities programme supported the award of: Achievements in the year • eight Research Workshops, from 32 applications This section describes the achievements of RSE, the • 13 Small Research Grants, from 34 applications, Foundation, the SCIO and the BP Trust, reflecting the and fact that the financial statements are presented on a • eight Research Networks, from 25 applications. consolidated basis for this group of connected charities. 6 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
Reports from previous recipients illustrated impact in a All of the activities of the CRF are administered on behalf of diverse range of subjects including terrorism law, Russian the Foundation by the RSE, except the administration of the railways in World War 1, Cartography in Jamaica and postgraduate scholarship scheme, which remains with the Scotland and the collections of the Hunterian Museum. The Carnegie Trust for the Universities of Scotland. workshops, networks and small grants supported resulted in a pleasing number of new collaborations, further grants, BP Research Fellowship Trust publications and features on television and in newspapers. The BP Research Fellowship is awarded in alternate years. The International Bilateral exchange schemes support The 2014 award went to Dr Olof Johannson of the School researcher exchanges that lead to collaborative projects of Chemistry, University of Edinburgh. There were also two and result in further research funding from other sources. continuing BP Research Fellows in post. This programme seeks to increase Scotland’s research and development connections internationally; and increase 2 Strengthening connections amongst the number of world-class science and culture researchers academia, business, the public and working in Scotland. It helps create conditions for talented the voluntary sectors people to visit and work in Scotland; and supports Scotland's reputation as a distinctive global identity and a centre of The Enterprise Fellowship schemes run by the RSE are research excellence. designed to encourage commercialisation of technology- based business ideas from academic institutions into spin-out During the year, 21 Bilateral Exchange Scheme grants were companies. This activity helps create sustainable companies awarded; which amounted to 69 person weeks of researcher with high-value jobs and contributes to the economy in the support (for visits between Scotland and over 20 universities long term. The RSE administers three Enterprise Fellowship and institutions worldwide). These short visits are often the Schemes, funded separately by Scottish Enterprise (SE), the first step in building collaborations that lead to successful Science and Technology Facilities Council (STFC) and the major funding applications in the UK and Europe. Biotechnology and Biological Sciences Research Council International joint project awards are currently run over two (BBSRC). years with the National Natural Science Foundation of China During the year, a new agreement between the RSE and and seek to develop strong international collaborations in BBSRC secured funding of up to £0.81m to appoint up specific topic areas. One such project on Energy to 12 Enterprise Fellows over the next three years, with a Management reported that: ‘China benefitted from the possibility of extension to five years. expertise built up in Scotland in the area of wave testing and energy and Scotland benefitted by gaining access to a wider The first appointments were made under Phase IV of the expertise in numerical modelling’ . This year, six awards were RS E/SE Enterprise Fellowship programme agreed in 2013, made to support Marine Science, with a focus on diversity. with five fellows taking up post in April 2014 and seven in October 2014. One of these was funded on a shared basis Caledonian Research Fund (CRF) with STFC. A further four appointments were made to commence in April 2015, and the funding of one of these is On 11 March 2009, the Foundation received a transfer of to be shared with BBSRC. assets from the Caledonian Research Foundation. Under the transfer agreement, the Trustees agreed firstly to honour the Three appointments were made in Spring 2014 under the existing financial commitments of the CRF in support of existing agreement with BBSRC, taking up post in October scientific research, and thereafter to apply the assets at their 2014. There was also an STF C-funded Enterprise Fellow in discretion, with the proviso that they should have regard to the October 2014 cohort, which brought the total number of the existing activities of the CRF, but that this should not Enterprise Fellows in post during the year to sixteen. place any restrictions on the purposes for which the assets The key criteria for these awards are: may be used. All payments have been made in respect of appointments in place at the transfer date and the balance • Effectiveness of technology – what is it and does it work? of the fund is now unrestricted at the discretion of the • Market potential – what problem is it providing a solution Foundation Trustees. for? Trustees of the Foundation have been considering how best • Commercialisation – what is the business model and how to apply the fund, whilst ensuring a balance between the will the technology be commercialised, costs of the schemes and the income earned from the • Success in business – does the applicant have the drive investment portfolio. In the meantime, the existing awards and ambition to succeed? activities have continued. One postdoctoral Fellowship and two postgraduate studentships were awarded during the year.
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Achievements in the year (continued) • Health & Wellbeing RSE Business Innovation Forum • Computing in Schools • Arts, Humanities and Society Through a joint working group with Scottish Financial Enterprise and the Institute of Chartered Accountants of Over the past year, the working groups have continued to Scotland, the Forum undertook a project to examine the progress their aims for public benefit. Examples of their financing of emerging high-potential companies. The report, activities are set out below. The Supply of Growth Capital for Emerging High Potential Since launching in August 2013, the Research the Companies in Scotland, was published in June 2014. Follow- Headlines blog has published 158 posts and had 74,608 up activities, including meetings with policymakers, have views. There were 50,357 views of blog pieces between 1st been ongoing. The Forum has also been examining April 2014 and 31st March 2015 and 94 blog pieces were Entrepreneurial Education and will be reporting on this shortly. published during that period. Last year saw the development of ten ‘top tips’ on How to Research the Headlines . These Building partnerships posts aim to help the public, regardless of their experience with research, to get closer to the latest research reported in The Learned Societies Group on Scottish Science Education, the media. Building upon this, a schools competition Rewrite facilitated by the RSE, published the findings of research the Headlines was devised and successfully piloted in a work it had commissioned into the resourcing of science in primary school in October 2014. Scotland in November 2014. Representatives of the Group met with MSPs and participated in an evidence session in Building upon the success of the Numeracy Counts video January 2015, convened by the Scottish Parliament’s resource launched last year, the Excellence in Education Education and Culture Committee, to discuss the findings. group has been gathering case studies to complement the Curriculum for Excellence areas of ‘Sciences’ and The Group also published the results of survey work it ‘Technologies’. The group released an advice paper on undertook on schools and science teachers’ responses to interdisciplinarity in secondary teaching Making Stronger the Curriculum for Excellence and National Qualification Links: Inter-Disciplinary Learning in Scottish Schools , in reforms, The Reforms in Scottish Schools’ Science Education, October 2014. and responded to the General Teaching Council for Scotland consultation on Professional Update for teachers. With partner organisations across Scotland, the Excellence in Education group has also been running a campaign on social In partnership with the David Hume Institute, three seminars media, asking all Scots to share a piece of advice to young were held to consider the role of universities: – two on people to help lift their aspirations and achieve their hopes A sustainable funding model for Universities and one and goals. Images of the advice have been shared on Twitter on Internationalisation of Scotland’s Universities . and Facebook, using the hashtag: #AspirationalAdvice. In collaboration with not-for-profit organisation Lambda 3 Enhancing the RSE Young Academy of Jam, and thanks to a grant from the Royal Academy of Scotland’s capacity to contribute to Engineering, the Computing in Schools group was able the future of Scotland to run the FIRST LEGO League (FLL) in Scotland. The FLL engages young people with computing and engineering skills The Young Academy recruited a further 43 members in 2014 by providing school groups with the opportunity to learn how through an open and publicly-accessible application process to programme Lego robots to complete a variety of tasks. supported by the Trustees of the SCIO. In August, the new members attended an induction day at the RSE. The Arts, Humanities and Society group held an Arts and Humanities in the Parliament event at Holyrood in October The activities of the Young Academy, making informed 2014. This featured a panel debate with invited speakers and contributions on matters affecting the wellbeing of Scotland an exhibition of inspiring collaborative projects, where Arts & and its people, are coordinated through the SCIO, and are Humanities researchers and practitioners have worked with undertaken by a series of Working Groups. The current areas communities, public bodies, NGOs and charities, and with are as follows, including two new groups established this year other disciplines and professions, to help address societal • International Links challenges and deliver public benefit. • Northeast Working Group The group also held a successful workshop, Building a Career • Open Data beyond Academia, in May 2014 for PhD students, with invited • Excellence in Education external speakers, on the application of research skills outwith academia for public benefit. • Research the Headlines • Industry
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4 Enhancing the public’s contribution Two Conferences: to and understanding of science, • Computation in Finance and Insurance, post-Napier economic and cultural issues • CUSP 2014: The Geoscience Context for Europe's Urban (i) Events Sustainability – Lessons from Glasgow and beyond RSE@Dumfries & Galloway Public Lecture: The multidisciplinary programme of events aimed at a wide variety of audiences comprised: Should I Vote? Yes or No? Eleven Lectures RSE@Borders: two Public Lectures • Artist and Model: a Drawing Demonstration and Lecture on • What Made the Borders? the Structure of the Human Musculature • Banditry to Books • “There and back ...and there again" Translational/Reverse Talk Science@Irvine Bay: four Public Lectures Translational Medicine • Brainwaves: An Interview with Jocelyn Bell Burnell • The Cultures of Apes and Other Animals • Does What We Eat Matter? • Minerals and Microbes – Geomicrobiology and • The Rise and Rise of Video Games Bioremediation • The Cultures of the Apes • A la Recherche du Temps Perdu: The Past in Literature from Scott to Proust (ii) Schools • Cancer Genomes for Cancer Care The schools programme continues to use RSE Fellows and • Confucius Institute for Scotland's Business Lecture: China: other experts to share their knowledge and understanding of Opportunities, Challenges, Risks science and culture with pupils, with a particular focus on enthusing those already “engaged”, and reaching those pupils • Presidential Address: Reflections on the Public Health who are not in close proximity to Scottish Universities and Service and its Future Science Centres, and who therefore have more limited • Education Policy and Scottish Autonomy: the End of a opportunity to participate and meet with experts. Common British Tradition? The programme comprised: • Liberal Democracy and the Challenge of Authoritarian Capitalism 39 Science Master Classes for S1 and S2 science subjects, • Eating disorders in Scotland: How will we manage? hosted at five Universities, attended by 249 students from 78 schools Four Annual Lectures: 30 Schools Talks, where the content was agreed with • RSE Christmas Lecture: Meet the Frackers: A Geological teachers in line with their curriculum, attended by 2,760 Perspective on UK Shale Gas students from 36 schools • SUPA/Robert Cormack Bequest Meeting: Further Talk Science@Irvine Bay: 49 Schools Talks Adventures of the Curiosity Rover in Gale Crater, Mars attended by 3,277 students • MacCormick European Lecture: Diversity and RSE@Dumfries & Galloway: twelve Schools Talks Interdependence in Science and Europe: Centuries of attended by 995 students Enrichment and Struggle • Edinburgh Lecture Series: Challenges and Opportunities in RSE@Borders: one Schools Talk attended by 50 students Future Cities RSE Discussion Forum , supported by the Darwin Trust of Three Joint Lectures in partnership with the following Edinburgh – Fashioning Science organizations: (iii) International events • Edinburgh International Festival: A conversation about The RS E–NSFC Workshop James Plays The RSE and the National Natural Science Foundation of • RS E/ RAEng Joint Annual Lecture: Light, Energy and the China (NSFC) have a formal agreement, established to Internet support research collaborations between Scotland and • SCR R/ Society of Biology Peter Wilson Lecture: Feeding China. Under the terms of this agreement, the RSE and the future: can we do it sustainably? NSFC organised a workshop in Edinburgh in October 2014 Four Discussion Forums in the area of Marine Science with a focus on Biodiversity . • Invasive Species – Friends or Foes? A delegation of seven leading marine scientists attended from China to meet with their Scottish counterparts, present their • Sir Walter Scott's Legacy and the new Science of Reading work and explore future opportunities for collaboration • The Future of Particle Physics and CERN between the participants from Scotland and China. A visit • Enlightening the Constitutional Debate: Further Powers for to the Sea Mammal Research Unit in St Andrews was also Scotland. What does the draft legislation mean in practice? arranged as part of the workshop.
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Achievements in the year (continued) submission to the Smith Commission, mainly focusing on research funding, and an event in March 2015, Further RS E–CASS Workshop Powers for Scotland; what does the draft legislation mean The RSE took a delegation to China in May 2014 for the first in practice? joint workshop to be held with the Chinese Academy of RSE Inquiry Digital Participation Social Sciences (CASS). The workshop, held in Beijing The report of the Inquiry Spreading the Benefits of Digital addressed the topics of Urbanization – Smart Cities, Participation was launched in April 2014. Dissemination has Sustainable development and Reform of the public sector . continued throughout the year, including events that have RS E–MOST Workshop brought together policy makers, stakeholders and the public The Royal Society of Edinburgh and the Ministry of Science across Scotland. This included working in partnership with and Technology, Taiwan held a joint workshop on the topic of SCVO in delivering a series of DigiScotFest events, feeding Sensors and Imaging and their Applications including Medical findings and recommendations of the report into discussions Areas . The purpose of the visit was to explore opportunities on the next steps towards increasing digital participation in for exchanging ideas on sensors and imaging and their Scotland. applications, and to identify areas for collaboration between RSE Education Committee scientists in both countries. The visit included a two-day The RSE has engaged with the Scottish Government on its seminar at the RSE for academics and practitioners, as well proposals for commissioning the Organisation for Economic as a site visit to laboratories at the University of Edinburgh. Co-operation and Development (OECD) to review the National Academies meeting Curriculum for Excellence and has collated materials relating Representatives of six overseas and three UK National to the development and implementation of Curriculum for Academies met immediately following the Glasgow 2014 Excellence which have been submitted to the OECD Commonwealth Games to discuss The future of National reviewers. Academies and their roles , sharing experience of working Under a joint project which began in 2011, the RSE and with Government, young academies and identifying potential the British Computer Society have developed a suite of opportunities for collaboration. teaching and learning resources that exemplify and support Franc o–Scottish Science Seminar Series Computing Science aspects of the Curriculum for Excellence In partnership with the French Embassy in London, a seminar in Scotland, primarily secondary school years S1 to S4 entitled Towards Repair in Multiple Sclerosis was held, (broadly ages 1 1–15). A further resource to support the followed by a public lecture by Professor Charles ffrench- Software Design & Development Unit of the National Constant and Professor Catherine Lubetzki: Multiple Computing Science Qualifications in Scotland is being Sclerosis: has research got us to the end of the beginning or developed. the beginning of the end? The series consists of events run for early-career scientists to explore and publicly present areas of science where both Scotland and France have 6 Recognising Excellence strengths and to stimulate Franc o–Scottish collaboration. (i) The Fellowship Programme The RSE’s Fellowship includes men and women from all parts 5 Informing and influencing public of Scotland, the UK and overseas, and encompasses the full policy decisions range of disciplines, including science, engineering, social Key outputs of the RSE’s Policy Advice Unit were five briefing sciences, arts, humanities, law, education, business and papers; 12 Advice papers, six to the Scottish Parliament industry. an d/or the Scottish Government, on a range of topics In March 2015, the RSE announced the election of eight new including pre-legislative scrutiny of the draft Scotland clauses Corresponding Fellows, three Honorary Fellows and 45 new 2015, higher education governance and community Fellows. This followed the scrutiny in 2014 of 217 candidates empowerment. through a four-stage committee process, culminating in the A Science and the Parliament event was held in partnership postal ballot in December to the entire Fellowship. The with the Royal Society of Chemistry, focusing on Science addition of new Fellows in 2015 brought the numbers Education in Scotland. in the Fellowship up to 1606 – 70 Honorary Fellows; 73 Corresponding Fellows; 1463 Fellows. Enlightening the Constitutional Debate The discipline balance of the Fellowship can be broadly As the culmination of the series of events held to promote represented by four cognate sectors. In the Fellowship informed discussion of issues surrounding the constitution, (excluding Honorary & Corresponding) the current balance of an event was held in April 2014 to launch a book drawing these sectors is: together all the reports. It was made freely available in hard copy and as an e-book. Follow-up work included a 10 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
• 35% Life Sciences Medicine and her breadth of expertise in this field and in data analysis, zoonotic disease and public and animal health in the • 35% Physical Engineering and Informatic Sciences developing world. • 21% Arts, Humanities, and Social Sciences RSE/Makdougall Brisbane Medal: Dr Stefan Hild, Reader • 9% Business, Public Service and Public Engagement in Experimental Physics, School of Physics and Astronomy, The RSE holds an Induction Day each year for the new University of Glasgow, for his outstanding research work in Fellows. This provides an opportunity for new Fellows to physics and his international profile in this field. meet with members of Council, the Executive Committee and RSE staff, and to be formally admitted to the Society. Reaching out There were also events primarily for Fellows, including the 7 Fellows’ Summer Reception, the Royal Medals Award (i) International relations Ceremony, and the Annual Statutory Meeting. Since 2003, Scottish Government funding has supported (ii) Prizes the establishment of Memoranda of Understanding (MoUs) The Royal Medals of the Royal Society of Edinburgh are its (13) and informal agreements (8) between the RSE and most prestigious award, recognising outstanding research overseas sister Academies, supporting the development and excellence and scholarship. The 2014 Medals were awarded, maintenance of relationships and activities. The relationships with the approval of Her Majesty The Queen, to Professor Sir act as a catalyst for other international engagement. Thomas Kibble and Professor Richard Morris. Connected Scotland The IEE E/RS E/ Wolfson James Clerk Maxwell Award for The RSE is one of eight partners in Connected Scotland, a 2014 was awarded to Professor Sir David Payne, Director of grouping of higher education institutions, government and the Optoelectronics Centre, University of Southampton, for its agencies and British Council Scotland. It aims to draw ground-breaking contributions to optical fibre technologies together the knowledge, expertise, networks and resources and their application to optical communications. of each of the partners, to develop collaborative ventures in RSE Prizes support of the Scottish Higher Education sector international activities in teaching, research and knowledge exchange. RSE and Edinburgh Beltane launched the RSE Prizes for One of the current priority countries identified by Connected Public Engagement in 2011, with the aim of recognising Scotland is China. and rewarding the advancement of high-quality public engagement with research. The prizes are now established International visits to China awards of the RSE and are supported by a donation from A delegation, led by Sir John Arbuthnott, visited Beijing in the James Weir Foundation. The Senior Prize for 2014 was May 2014. The main purpose of the visit was to explore awarded to Professor Andrew Whiten, Wardlaw Professor opportunities for strengthening Scotlan d–China research of Psychology, University of St Andrews, and the Young collaboration and to follow up on discussions that took Innovator Award for an emerging talent to Dr Kevin O’Dell, place during an earlier visit about the integration of Senior Lecturer, Institute of Biomedical and Life Sciences, academia, business and policy, with the aim to support University of Glasgow. economic growth and innovation in Scotland and China. In Spring 2015 the following RSE prizes were awarded: Meetings took place with Presidents and other highly influential scientific and research leaders from key RS E/Sir James Black Prize: Professor Iain McInnes FRSE organisations including: the National Natural Science FMedSci, Muirhead Professor of Medicine and Director of the Foundation of China (NSFC); the Chinese Academy of Institute of Infection, Immunity and Inflammation. Sciences (CAS); the Chinese Academy of Social Sciences RS E/ Lord Kelvin Prize: Professor Jason Reese FREng, (CASS); and the Chinese Academy of Engineering (CAE). FRSE, FIMechE, FInstP, Regius Professor of Engineering Whilst in Beijing, Sir John and Professor Tariq Durrani (Vice- and Deputy Head and Director of Research, School of President International) were also able to participate in the Engineering, University of Edinburgh, for his outstanding annual meeting of the Global Research Council, a voluntary contribution to the field of Engineering, both within the UK organisation comprising the heads of government research and internationally, and for his commitment to the public funding organisations from seventy countries, aimed at engagement of science. finding paths to greater international research collaboration. RS E/Adam Smith Prize: Lord Smith of Kelvin, House of Following on from this, Professor Sir David Wallace (Deputy Lords, for his business leadership and his outstanding President) and Professor Tariq Durrani (Vice-President contribution to public service through his Chairmanship of the International) led a delegation of leading representatives from Glasgow Commonwealth Games 2014. three of the eight Scottish Innovation Centres to Beijing in RSE/Patrick Neill Medal: Dr Tiziana Lembo, University of December 2014. The main purpose of the visit was to hold a Glasgow Research Fellow, Institute of Biodiversity, Animal high-level forum in joint partnership with the National Natural Health and Comparative Medicine, University of Glasgow, Science Foundation of China (NSFC) and the Chinese for her outstanding research work in the field of Veterinary Academy of Sciences (CAS).
11 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
Achievements in the year (continued) Financial review and policies Investment powers and policy This was entitled: NSF C– RS E– CAS New Paradigms for Future Collaboration in Science and Innovation and it focused The management of the investment funds of the RSE, the on areas closely aligned with the Scottish Innovation Centres: Foundation and the BP Trust is carried out by Speirs & Jeffrey the Stratified Medicine Scotland Innovation Centre (SM S– IC), & Co on a discretionary basis. The objectives set by the Council the Innovation Centre for Sensor and Imaging Systems are to ensure a sufficient level of income to meet the target set (CENSIS), and the Industrial Biotechnology Innovation Centre annually by the Council, and to invest for real capital growth (IBioIC). over the long term. The Council has delegated the detailed (ii) Communications monitoring of performance to an Investment Committee, which includes at least one ordinary member of Council and two Four issues of ReSourcE , the RSE newsletter, were experienced investment professionals, and which makes published and distributed to the Fellowship and around comparisons against a composite benchmark reflecting the 3,000 others, including business leaders, journalists, mix of assets held and the WM Charities Income Constrained research institutes, schools, MPs, MSPs and interested Index. individuals. Fellows also received a monthly e-bulletin, which enabled The performance of the portfolios in the year was as follows: them to keep up to date with and, if appropriate, Income Actual Total Benchmark disseminate information on the RSE and its work. In Target income return addition, seven public e-bulletins were sent out during the £’000 £’000 % % year to advertise various events and schools activities. Science Scotland continues to increase people’s awareness RSE 350 372 4.6 8.1 of cutting-edge science and technology activities in BP Trust 130 130 4.4 8.1 Scotland. Two issues of Science Scotland were published in the year, in hard copy and on the Science Scotland Foundation 350 361 4.1 8.1 website: Marine Science – Making Waves ; and an issue on the Scottish Innovation Centres which was also The Investment Committee meets twice annually with the translated into Mandarin in support of the visit of the investment managers to discuss their compliance with the delegation to China. constraints set by the Committee and risk environment. In the year under review, no compliance issues arose which iii) Journals required to be reported to the Committee. Although the The RSE, through the Foundation, publishes two journals: income return was very satisfactory, the total return in the Earth and Environmental Science Transactions of the Royal year to March 2015 did not meet the composite benchmark Society of Edinburgh and Proceedings A: Mathematics . of 8.1% total return. The annualised performance over three They are distributed worldwide, to the Americas, Europe, and five years continued to be in excess of the benchmark Australasia, the Middle East, Africa and Asia, and the peer for those periods. review process draws on an international bank of referees and editors. Six issues of Proceedings A were published Operating policies – grant making during the 201 4–15 year. Four issues of Transactions were The RSE makes grants to individuals in higher education published. institutions in support of research activities in the categories The digital versions of the RSE’s archive journals – of postdoctoral Research Fellowships, Support Research Transactions (178 5 –1979), Transactions: Earth Sciences Fellowships, Postgraduate Studentships, Undergraduate (198 0– 2000), Proceedings (183 2–1940), Proceedings A Vacation Scholarships, Enterprise Fellowships and international (1941–1999) and Proceedings B (1941 –1996) continue to exchange grants. Each of these categories is specifically be marketed for sale to the public by Cambridge University funded from various sources, including the RSE’s restricted Press. The RSE’s highly regarded journal archive is thus funds. The basis of eligibility and selection varies according to more easily accessible to a world-wide audience, and the detailed scheme regulations, which are published on the generates useful additional income. RSE’s website (www.royalsoced.org.uk). Grants are also made (iv) Friends of the Society in support of research activities of Fellows of the RSE, including support for travel connected with research or In 2009 the RSE launched a corporate engagement initiative scholarship, small-scale specialist meetings, to assist research entitled Friends of the Society with the aim of strengthening visitors to Scotland to undertake collaborative research work relations with the Scottish business sector. A number of with a Fellow, to assist a visiting lecturer to come to Scotland, prominent organisations continue to support the project, to assist research collaboration between two institutions in which provides the Friends with an opportunity to find out more about the RSE and the important work we carry out.
12 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
Scotland or between universities and industry, and to assist in the Income and Expenditure publication of books written by Fellows. These grants are funded Total incoming resources by the RSE’s designated Grants Fund. The Grants Committee is responsible for making awards in accordance with the detailed Total incoming resources were £5.33m (2014 – £4.95m), an rules set out by the Council for the disbursement of the Grants increase of 7.7% overall compared with the previous year, Fund. including an uplift of 10% in Government grant-in-aid provided through the Scottish Funding Council. Reserves policy and funds Voluntary income was 25% lower than last year, which included legacies of £150,000. This reduction was partially The RSE holds a number of restricted funds resulting from offset by an increase in rental income, from the letting of the bequests for particular purposes, details of which are set out third floor of the building. Investment income decreased by in note 2 to the financial statements. The Council has created 6%, partly due to lower interest receivable on cash balances. designated funds, from its unrestricted funds, the purposes Incoming resources from charitable activities increased by 14% of which are also set out in note 2 to the financial statements. to £3.92m. The General Fund represents the balance of unrestricted funds arising from past operations. The Council has examined the The major reason for this increase was the pattern and requirement to hold unrestricted funds, and concluded that, numbers of Enterprise fellow appointments following the whilst the present level of reserves gives adequate working renewal of the Scottish Enterprise contract in 2013. Income capital for core costs, it is desirable to have a General Fund from the three Enterprise Fellowships schemes was 36% up reserve in the range of six months’ expenditure on central on the previous year. costs, or approximately £888,000. The current fund balance Resources expended is £543,000 and, as resource becomes available, steps will be taken to replenish the Fund. The Council has also reviewed Total expenditure increased by 10% (£0.5m), as a result of the purposes and amounts of each of the designated funds, increased expenditure on charitable activities. which comprise allocations for specific purposes of sums Cost of generating funds (note 6) includes the cost of the that had been donated in prior periods, together with the Fellowship office, the costs of building management in respect New Enlightenment Fund and the Capital Asset Reserve. Two of income from letting of surplus space, as well as fundraising new designations have been made during the year. The first costs, both direct and management time in securing funding. of these reinstates a Building Fund to provide support for Grants payable increased by 15%, including £227,000 non-routine maintenance and development of the buildings additional expenditure on Enterprise Fellowships arising in George Street. Secondly, the Council has earmarked funds from additional appointments. Expenditure on developing to build a Staff Development Fund. The intention is to use relationships internationally was 10% up on the previous year, this to provide flexibility in staffing structure and remuneration, reflecting the variety of activities and visits during the year, including pensions. It is also the Council’s intention to both incoming and outgoing. Other categories of expenditure strengthen the RSE’s financial independence by using major remained broadly stable. donations and legacies to build the New Enlightenment Fund Governance costs, which have remained at a similar level to fund as an endowment to be used for both income and capital previous years, represent less than 3% of total recurring projects. income. Result for the year Transfers between funds shown in the Statement of Financial The surplus for the year was £84,000, including a final Activities comprise the recurring transfers from the Capital payment of a legacy from Dr Gethin Lewis of £10,000 and Asset Reserve of a total of £101,000 to match the depreciation other non-recurring items. The underlying operational outcome of buildings and the capital repayment of the for the year was a deficit of £33,000, compared with a deficit of loan to the Foundation; and a transfer on consolidation from £58,000 in the previous year. the Foundation restricted fund balance to the General Fund, equivalent to the net inter-entity income received in the RSE. Investment gains and losses comprised £92,000 realised in In addition, transfers have been made this year to re-establish the year and £1,000 unrealised losses at the year end. The a Building Fund to support non-routine maintenance and net movement on funds for the year after the FRS17 actuarial development of the building and to set up a Staff Development adjustment of £237,000 on the pension provision was a deficit Fund to provide flexibility in staffing structure and remuneration, of £61,000. including pensions. These transfers were made after reviewing the amounts included in the Grants Fund and the New Enlightenment Fund. The Building Fund represents the balance of amounts previously contributed to appeals in support of development of the buildings. The amount previously set aside as a Programme Fund has been returned to the General Fund.
13 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
Balance Sheet Approval of the Report Consolidated net assets remain stable, having decreased from At the time of approving this report: £27.4m to £27.3m. • so far as each Trustee is aware, there is no relevant audit Net current assets increased from £1.49m to £1.58m. Debtors information of which the Auditors are unaware; and have decreased by £0.09m, as last year included a legacy of • each Trustee has taken all the steps that they ought to £100,000, but creditors have also decreased, mainly reflecting have taken as a Trustee to make themselves aware of any the timing of payment of funding for research awards. relevant audit information and to establish that the Auditors Total funds decreased by £0.06m, but the movement would are aware of that information. have been positive except for the FRS17 pension adjustment. In the three prior years, the net pension position calculated by the actuary for accounts purposes was an asset, which was not recognised, because it was unlikely that such an asset could be realised. At 31 March 2015, the calculation produced a net liability of £214,000, and provision has been made for Signed on behalf of the Council this amount. Gerald Wilson CB Treasurer Future plans 7 September 2015 As the current Strategic Framework reaches its end date in 2015, the Council has been working to refresh the plans for the next five years. The outcome of this review will determine the detail of objectives for the period.
Key priorities, of course, remain unchanged: in particular, the need to continue to promote excellence through nominations to the Fellowship and research awards; to ensure we are well placed to make an authoritative and independent contribution to discussion of important public policy issues, notably regarding the Scottish economy and society; and to continue efforts to diversify our sources of funding.
In addition, however, the Council are looking at ways:
• to ensure that the range of expertise represented in the Fellowship is well balanced; • to improve communications within the Fellowship and with the wider community, especially the business community and public authorities, to ensure that the Society’s role and the value of its contribution are better understood; and • to explore ways to develop more fully the revenue- generating potential of the George Street building; for example, by improving the building’s information technology and audio visual facilities and by better managing the use of space. • The work on all these areas will be proceeding in the current year in the context of the planned strategic review. Any initiatives arising from the Council’s reflections, particularly regarding the use of the building, are likely to involve additional expenditure and will, where necessary, be the subject of consultation with the Fellowship.
14 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
Independent Auditors’ Report to Opinion on financial statements the Council of the Royal Society In our opinion the financial statements: of Edinburgh • give a true and fair view of the state of the Group’s and We have audited the financial statements of the Royal the Charity’s affairs as at 31 March 2015 and of the Society of Edinburgh. for the year ended 31 March 2015 Group’s and Charity’s incoming resources and application on pages 16 to 40. The financial reporting framework that of resources, for the year then ended; has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom • have been properly prepared in accordance with United Generally Accepted Accounting Practice). Kingdom Generally Accepted Accounting Practice; and This report is made solely to the Charity’s Trustees, as a • have been prepared in accordance with the requirements body, in accordance with section 44(1)(c) of the Charities of the Charities and Trustee Investment (Scotland) Act and Trustee Investment (Scotland) Act 2005, and 2005, regulation 8 of the Charities Accounts (Scotland) Regulation 10 of the Charities Accounts (Scotland) Regulations 2006 (as amended). Regulations 2006 (as amended). Our audit work has been Matters on which we are required to report undertaken so that we might state to the Charity’s Trustees by exception those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest We have nothing to report in respect of the following extent permitted by law, we do not accept or assume matters where the Charities Accounts (Scotland) responsibility to anyone other than the charity and its Regulations 2006 (as amended) requires us to report Trustees as a body, for our audit work, for this report, or to you if, in our opinion: for the opinions we have formed. • the information given in the Trustees’ Report is not consistent with the financial statements; or Respective responsibilities of Trustees and Auditor • the Charity has not kept proper accounting records; or As explained more fully in the Statement of Council’s responsibilities set out on page 5, the Trustees are • the financial statements are not in agreement with the responsible for the preparation of the financial statements accounting records and returns; or and for being satisfied that they give a true and fair view. • we have not received all the information and explanations We have been appointed Auditors under section 44(1)(c) of we require for our audit. the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with regulations made under that Act. Our responsibility is to audit and express an opinion on Baker Tilly UK Audit LLP the financial statements in accordance with applicable law Statutory Auditor and International Standards on Auditing (UK and Ireland). Chartered Accountants Those standards require us to comply with the Auditing First floor, Quay 2 Practices Board’s (APB’s) Ethical Standards for Auditors. 139 Fountainbridge Edinburgh Scope of the audit of the financial statements EH3 9QG A description of the scope of an audit of financial (Baker Tilly UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006) statements is provided on the Financial Reporting Council’s website at http://www.frc.org.uk/auditscopeukprivate Edinburgh 7 September 2015
15 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
Group statement of financial activities (incorporating the income & expenditure account) for year ended 31 March 2015
Note General Designated Restricted Restricted 2015 Total 2014 Total Fund Funds Income Funds £ £ £ £ £ £
Income Legacies 4 – 10,325 – – 10,325 150,000 Other Voluntary income 4 259,645 9,072 – 24,611 293,328 257,639
Total Voluntary income 259,645 19,397 – 24,611 303,653 407,639 Activities for generating income 4 – – – 242,426 242,426 197,151 Investment income 4 27,658 263,921 – 572,844 864,423 916,409
Incoming resources from generated funds 287,303 283,318 – 839,881 1,410,502 1,521,199 Incoming resources from charitable activities 5 168,244 – 3,356,078 392,416 3,916,738 3,422,068
Total incoming resources 455,547 283,318 3,356,078 1,232,297 5,327,240 4,943,267
Expenditure Cost of generating funds 6 (209,519) (3,515) – (161,442) (374,476) (286,856) Charitable activities 6 (422,498) (96,396) (3,356,078) (862,534) (4,737,506) (4,305,714) Governance 6 (88,764) – – (42,100) (130,864) (150,639)
Total resources expended (720,781) (99,911) (3,356,078) (1,066,076) (5,242,846) (4,743,209)
Net (outgoing )/ incoming resources before transfers (265,234) 183,407 – 166,221 84,394 200,058
Transfers between funds 438,326 (274,032) – (164,294) – –
Other recognised gains/(losses) Gain s/(losses) on investment assets Realised gain s 14 3,561 46,547 – 41,866 91,974 93,234 Unrealised (losses)/gains 14 (220) (2,870) – 2,242 (848) (56,182)
Actuarial losses on Lothian Pension Fund 22 (237,000) – – – (237,000) (19,000)
Net movement in funds (60,567) (46,948) – 46,035 (61,480) 218,110
Balance brought forward at 1 April 2014 604,131 10,639,791 – 16,171,290 27,415,212 27,197,102
Balance carried forward at 31 March 2015 21 543,564 10,592,843 – 16,217,325 27,353,732 27,415,212
There were no acquired or discontinued activities in the year. The notes on pages 21 to 40 form part of these financial statements.
16 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
Group balance sheet at 31 March 2015
Note 2015 2015 2014 2014 £ £ £ £
Fixed assets Tangible fixed assets 13 3,381,308 3,462,154
Fixed asset investments Investments at market value 14 22,604,986 22,513,860
25,986,294 25,976,014
Current assets
Debtors 15 241,867 331,597 Cash at bank and in hand 127,150 296,066 Deposits – Designated funds – – Deposits – Restricted funds 1,041,613 886,095 Deposits – General funds 1,454,182 1,393,399
2,864,812 2,907,157
Current liabilities Creditors: amounts falling due within one year 16 (1,283,374) (1,416,369)
Net current assets 1,581,438 1,490,788
Total assets less current liabilities 27,567,732 27,466,802
Provision for liabilities and charges 17 – (51,590)
Net assets excluding pension fund 27,567,732 27,415,212
Lothian Pension Fund defined benefit scheme liability 22 (214,000) –
Net assets after pension fund liability 27,353,732 27,415,212
Funds
General Fund 18 757,564 604,131 Less: Pension reserve (214,000) –
543,564 604,131 Designated Funds 19 10,592,843 10,639,791 Restricted Funds 20 16,217,325 16,171,290
Total funds 21 27,353,732 27,415,212
The accounts were approved by the Council on 7 September 2015 and signed on its behalf by:
Gerald Wilson, CB Treasurer
17 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
RSE balance sheet at 31 March 2015
Note 2015 2015 2014 2014 £ £ £ £
Fixed assets Tangible fixed assets 13 1,902,533 1,958,627
Fixed asset investments Investments at market value 14(a) 9,790,368 9,730,097 Loan to RSE Scotland Foundation 14(b) 1,516,672 1,563,480
13,209,573 13,252,204
Current assets Debtors 15 164,815 257,907 Cash at bank and in hand 53,403 204,506 Deposits – Designated funds – – Deposits – Restricted funds 1,041,613 886,095 Deposits – General funds 1,454,182 1,393,399
2,714,013 2,741,907
Current liabilities Creditors: amounts falling due within one year 16 (2,298,086) (2,450,987)
Net current assets 415,927 290,920
Total assets less current liabilities 13,625,500 13,543,124
Provision for liabilities and charges 17 – (51,590)
Net assets excluding pension fund 13,625,500 13,491,534
Lothian Pension Fund defined benefit scheme liability 22 (214,000) –
Net assets after pension fund liability 13,411,500 13,491,534
Funds General Fund 18 757,564 604,131 Less: Pension reserve (214,000) –
543,564 604,131 Designated Funds 19 10,592,843 10,639,791 Restricted Funds 20 2,275,093 2,247,612
Total funds 21 13,411,500 13,491,534
The accounts were approved by the Council on 7 September 2015 and signed on its behalf by:
Gerald Wilson, CB Treasurer
18 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
RSE statement of financial activities (incorporating the income & expenditure account) for year ended 31 March 2015
Note General Designated Restricted Restricted 2015 Total 2014 Total Fund Funds income funds £ £ £ £ £ £
Income Voluntary income 4 259,645 19,397 – 9,837 288,879 386,347 Investment income 4 88,324 263,921 – 80,697 432,942 654,596
Incoming resources from generated funds 347,969 283,318 – 90,534 721,821 1,040,943 Incoming resources from charitable activities 5 271,871 – 3,707,480 – 3,979,351 3,411,716
Total incoming resources 619,840 283,318 3,707,480 90,534 4,701,172 4,452,659
Expenditure Cost of generating funds (209,519) (3,515) – – (213,034) (212,732) Charitable activities (422,597) (96,396) (3,707,480) (76,306) (4,302,679) (3,910,122) Governance (88,764) – – – (88,764) (97,420)
Total resources expended 6 (720,780) (99,911) (3,707,480) (76,306) (4,604,477) (4,220,274)
Net incomin g/(outgoing) resources before transfers (100,940) 183,407 – 14,228 96,695 232,385
Transfers between funds 274,032 (274,032) – – – –
Other recognised gain s/(losses) Gain s/(losses) on investment assets Realised gain s 14 3,561 46,547 – 14,124 64,232 52,600 Unrealised (losses )/gain s 14 (220) (2,870) – (871) (3,961) (31,648)
Actuarial (losses) gains on Lothian Pension Fund 22 (237,000) – – – (237,000) (19,000)
Net movement in funds (60,567) (46,948) – 27,481 (80,034) 234,337
Balance brought forward at 1 April 2014 604,131 10,639,791 – 2,247,612 13,491,534 13,257,197
Balance carried forward at 31 March 2015 543,564 10,592,843 – 2,275,093 13,411,500 13,491,534
There were no acquired or discontinued activities in the year. The notes on pages 21 to 40 form part of these financial statements.
19 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
Group cash flow statement for the year ended 31 March 2015
2015 2015 2014 2014 £ £ £ £
Cash flow statement Net cash outflow from operating activities (792,627) (609,047)
Returns on investments and servicing of finance: Interest received 8,239 21,039 Dividends received 856,184 895,370
864,423 916,409 Capital expenditure and financial investment: Purchase of tangible fixed assets (43,808) (18,927) Proceeds from sale of investments 1,965,386 4,159,344 Purchases of investments (1,965,386) (4,753,344)
(43,808) (612,927)
Net cash flow before financing: 27,988 (305,565) New Enlightenment Fund receipts 19,397 67,494
Increase/(Decrease) in cash in the year 47,385 (238,071)
Reconciliation of net cash flow to movement in net funds
Increase/(Decrease) in cash in the year 47,385 (238,071) Net funds at beginning of year 2,575,560 2,813,631
Net funds at end of year (note 27) 2,622,945 2,575,560
Reconciliation of net movement in funds to net cash (outflow)/inflow from operating activities
Net incoming resources before transfers 84,394 200,058 Retirement benefit scheme current service cost 224,000 181,000 Retirement benefit scheme past service cost – – Retirement benefit scheme contributions (184,000) (169,000) Retirement benefit scheme finance cost (63,000) (31,000) New Enlightenment Fund receipts (19,397) (67,494) Dividends receivable (856,184) (895,370) Interest receivable (8,239) (21,039) Depreciation 121,886 114,534 Loss on disposal of fixed assets 2,769 – Decrease/(Increase) in debtors 89,730 (7,599) (Decrease)/Increase in creditors (132,996) 100,907 Movement on provision for liabilities (51,590) (14,044)
Net cash outflow from operating activities (792,627) (609,047)
20 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015 notes to the financial statements
1 Accounting basis Sillitto Fund – to promote interest in physics among young people. The accounts have been drawn up to Designated Funds comply with the provisions of the Charities Capital Asset Reserve Fund – representing CASS Fund – to fund academi c/ industrial & Trustee Investment (Scotland) Act 2005 the book cost of the buildings at liaison. 22–24 George Street and 26 George Street, and the Charities Accounts (Scotland) Retailing Seminar Fund – to fund a together with the building project loan to the Regulations 2006 as amended, and follow programme of seminars on retailing. the recommendations of the Statement of RSE Scotland Foundation. Edinburgh Drug Absorption Foundation Fund Recommended Practice for Charities (SORP) Building Fund – a fund to provide support for – to fund a series of conferences on the broad approved by the Accounting Standards non-routine maintenance and development of theme of ‘Drugs Futures’. Board in February 2005 and applicable the Buildings in George Street. accounting standards. The accounts have RSE Scotland Foundation – a trust to New Enlightenment Fund – to provide been prepared under the historical cost advance the education of the public in development finance to implement the RSE Scotland in science, engineering and accounting rules as modified to include the Strategic Framework. revaluation of investments. The accounts technology, incorporating assets transferred comprise five primary financial statements: Programme Fund – a fund created to act as from the Caledonian Research Fund (CRF). a source of funding for meetings activities. the Group and RSE statement of financial RSE Scotland SCIO – incorporated in activities incorporating the income and During the year, the balance was returned to General Fund. June 2012 with charitable purposes of expenditure account, the Group and RSE the advancement of education; the arts, balance sheet and the Group cash flow Staff Development Fund – to provide flexibility heritage, culture or science; and of citizenship statement. in staffing structures and remuneration. or community development. The SCIO On the basis of the RSE’s reserves and C H Kemball Fund – income from this fund is co-ordinates the development of the RSE cash position and the secured and expected used to provide hospitality for distinguished Young Academy of Scotland. incoming resources for the next twelve visitors from other learned societies and BP Research Fellowship Trust – a trust Academies. months, the Council considers that it is to fund postdoctoral research fellowships appropriate to prepare the financial Dr James Heggie Fund – income from this in Scotland. statements on a going concern basis. fund supports the RSE’s activities with The consolidated financial statements are young people. 3 Accounting policies prepared using acquisition accounting and Grants Fund – a fund created by contributions Incoming resources include the financial statements of the RSE and legacies from Fellows and used to Voluntary income and of entities which are under its control: provide grants to support research activities Subscription income for the subscription year RSE Scotland Foundation, RSE Scotland to Fellows. to October 2014 is recognised proportionally SCIO and BP Research Fellowship Trust. Restricted Income Fund – income funds to the period to which it relates and includes As the objectives of each of these entities received for expenditure on current projects. income tax recoverable on the subscriptions are narrower than those of the RSE, they paid under Gift Aid. Amounts relating to the have been treated as restricted funds. Restricted Funds period from 1 April to 31 October are shown Robert Cormack Bequest – to promote as deferred income. 2 Funds astronomical knowledge and research in Scotland. Revenue grants are credited to income in The RSE’s funds are classified in accordance the period in which the RSE becomes entitled with the definitions in SORP into Restricted Lessells Trust – to fund scholarships abroad to the resources. for engineers. Funds, where there are restrictions placed by Donations of a recurring nature from other a donor as to the use of income or capital; Auber Bequest – to fund research in Scotland charitable foundations and one-off gifts Designated Funds, where the Council has and England by naturalised British citizens included in other income are taken to set aside sums from its unrestricted funds over 60 years of age. revenue in the period to which they relate. for a particular purpose; and the General Prizes Fund – to fund various prizes. Legacy income is recognised when there (unrestricted) Fund. The classifications made Dryerre Fund – to fund postgraduate is sufficient evidence to provide necessary are as follows: scholarships in medical or veterinary certainty that it will be received and the value General Fund physiology. can be measured with sufficient reliability. A discretionary Fund available to the Council Fleck Bequest Fund – to promote interest, Investment income to meet the ordinary activities of the Society. knowledge and appreciation of science and Interest and dividends are accounted for in its applications throughout Scotland. the year in which they are received. Piazzi Smyth Legacy Fund – to fund high Incoming resources for charitable activities altitude astronomical research. Incoming resources for activities are accounted for on an accruals basis.
21 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
Publication income receivable in foreign Operating Leases cost and donated assets at valuations carried currencies is converted into sterling at rates Rental costs under operating leases are out on acquisition. These assets are not of exchange ruling at the date of receipt. charged on a straight line basis over the lease depreciated. period. Incoming resources for research fellowships Investments are accounted for in the period in which the Tangible fixed assets, depreciation RSE becomes entitled to the resources. Investments are stated at their market value and repairs at the balance sheet date. Gains and losses Income received for specific projects, and The RSE’s principal assets are its buildings in on disposal and revaluation of investments received in advance of the commencement George Street, Edinburgh. Under FRS15 the are charged or credited in the statement of of the project, is deferred. If the project were Society depreciates the cost of the buildings financial activities and allocated to funds in not to proceed as planned, the RSE would on a straight line basis assuming a 50-year life. accordance with their proportionate share not be entitled to retain the funds. For It is the policy of the Council to maintain the of the investment portfolio. performance-related grants, where entitlement buildings to a high standard. Any permanent to the incoming resource only arises with the diminutions in value are reflected in the Pensions performance of the specific outputs agreed statement of financial activities. Costs of The RSE participates in defined benefit under the contracts, income is deferred. repairs and maintenance are charged against pension schemes which are externally funded. revenue. The cost of providing pensions is allocated Resources expended Expenditure incurred by the RSE Scotland over employees’ working lives with the RSE Expenditure and support costs Foundation in the improvements to and is included in staff costs. All resources expended are included on 26 George Street is held at cost and is being Pension fund assets arising from valuations an accruals basis, having regard to any depreciated on a straight line basis from the under FRS 17 are recognised only to the constructive obligations created by date of completion of the refurbishment over extent that the asset is recoverable in the multi-year grant commitments. the period of the lease to the RSE Scotland foreseeable future. Where directly attributable, resources Foundation to 30 June 2047. expended are allocated to the relevant Minor equipment up to £500 is charged Foreign exchange functional category. Overhead and support against revenue in the year of purchase. Assets and liabilities denominated in foreign costs are allocated to functional category Computer and audio-visual equipment is currencies are translated at the rate of on the basis of direct staff costs in each depreciated on a straight line basis over exchange ruling at the balance sheet date, area of activity. 3–20 years. while transactions arising during the year are Cost of generating funds translated at the spot rate prevailing when the The cost of generating funds includes Heritage Assets transaction arises. Exchange gains or losses expenditure incurred in supporting the The historical records of the RSE from its arising in the year are recognised in the Fellowship and incurred on fundraising formation in 1783, including papers and statement of financial activities. and development initiatives. minute books, are placed on deposit with the National Library of Scotland, where they are Charitable activities catalogued and accessible to the public on Grants payable are recognised as a liability request. when the RSE is under an actual or constructive obligation to make a transfer to Portraits, furniture, publications and other a third party. Where grants are time related artefacts held in the George Street premises to future periods and are to be financed by have been acquired in the ordinary course of specific grants receivable in those future business over the years prior to 2009 and periods, they are treated as liabilities of those have not been capitalised. These items may periods and not as liabilities at balance sheet have intrinsic historical value, but they are not date. Such grants are disclosed as future held principally for their contribution to commitments. knowledge and culture nor directly in furtherance of the charitable objectives of Governance costs RSE. Reliable estimates of cost or value are Governance costs are those incurred in not available on a basis that would justify the connection with the management of RSE costs of establishing them. The category of assets, organisational administration and other assets in tangible fixed assets compliance with constitutional and statutory comprises portraits acquired since that time at requirements.
22 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015 notes to the financial statements 4 Incoming resources Current year 2015 Voluntary income Activities for Investment Promotion of Other charitable Total 2015 (Note 4a) generating research and activities charitable income innovation activities GROUP £ £ £ £ £ £ £ Fellows 241,877 – – – – – 241,877 Individuals 18,213 – – – 21,218 21,218 39,431 Legacies 10,325 – – – – – 10,325 Companies 22,500 – – – 68,572 68,572 91,072 Charitable Trusts 10,738 – – 7,000 86,980 93,980 104,718 Scottish Government – – – 1,607,878 749,759 2,357,637 2,357,637 Public Sector Bodies – – – 976,051 6,866 982,917 982,917 Journal Publications – – – – 224,958 224,958 224,958 Conference Facilities Letting – – – – 167,456 167,456 167,456 Rental Income – 242,426 – – – – 242,426 Dividends & Interest – – 864,423 – – – 864,423 303,653 242,426 864,423 2,590,929 1,325,809 3,916,738 5,327,240 RSE Fellows 241,877 – – – – – 241,877 Individuals 3,439 – – – 14,017 14,017 17,456 Legacies 10,325 – – – – – 10,325 Companies 22,500 – – – 68,572 68,572 91,072 Charitable Trusts 10,738 – 60,667 358,402 190,606 549,008 620,413 Scottish Government – – – 1,607,878 749,759 2,357,637 2,357,637 Public Sector Bodies – – – 976,051 6,866 982,917 982,917 Other Income – – – – 7,200 7,200 7,200 Dividends & Interest – – 372,275 – – – 372,275 288,879 – 432,942 2,942,331 1,037,020 3,979,351 4,701,172
Voluntary income Activities for Investment Promotion of Other charitable Total 2014 Prior year 2014 (Note 4a) generating research and activities charitable income innovation activities GROUP £ £ £ £ £ £ £ Fellows 188,609 – – – – – 188,609 Individuals 22,543 – – – 10,198 10,198 32,741 Legacies 150,000 – – – – – 150,000 Companies 25,250 – – – 52,538 52,538 77,788 Charitable Trusts 21,237 – – 4,130 118,896 123,026 144,263 Scottish Government – – – 1,545,482 554,518 2,100,000 2,100,000 Public Sector Bodies – – – 673,421 67,456 740,877 740,877 Journal Publications – – – – 252,026 252,026 252,026 Conference Facilities Letting – – – – 143,403 143,403 143,403 Rental Income – 197,151 – – – – 197,151 Dividends & Interest – – 916,409 – – – 916,409 407,639 197,151 916,409 2,223,033 1,199,035 3,422,068 4,943,267 RSE Fellows 188,609 – – – – – 188,609 Individuals 1,251 – – – 8,046 8,046 9,297 Legacies 150,000 – – – – – 150,000 Companies 25,250 – – – 52,538 52,538 77,788 Charitable Trusts 21,237 – 261,520 313,401 196,854 510,255 793,012 Scottish Government – – – 1,545,482 554,518 2,100,000 2,100,000 Public Sector Bodies – – – 673,421 67,456 740,877 740,877 Dividends & Interest – – 393,076 – – – 393,076 386,347 – 654,596 2,532,304 879,412 3,411,716 4,452,659
23 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
4 Incoming resources (continued) 4 a V o l u n t a r y i n c o m e 2015 2014 £ £ Contributions from RSE Fellows Admission fees 12,880 12,600 Annual subscriptions 190,217 78,186 Fellows’ donations 8,172 67,494 Income tax recoverable under Gift Aid 30,608 30,329 241,877 188,609 Lessells Trust additional receipt 9,837 11,237 Legacies 10,325 150,000 Friends of the Society – corporate partners 22,500 25,250 Other income 4,340 11,251 RSE 288,879 386,347 Young Academy of Scotland – subscriptions and donations 14,542 21,200 Other income 232 92
GROUP 303,653 407,639
In addition to the donations set out above, the RSE receives donations made specifically in support of activities which are included in activities income (see note 26(b)).
5 I n c o m i n g r e s o u r c e s f r o m c h a r i t a b l e a c t i v it i e s 2015 2014 Group RSE Group RSE £ £ £ £
Scottish Government Grant – research fellowships 1,308,445 1,308,445 1,269,910 1,269,910 Scottish Government Grant – arts & humanities awards 299,433 299,433 275,572 275,572 Marie Curie COFUND 84,850 84,850 20,033 20,033 Scottish Enterprise 595,960 595,960 343,368 343,368 BBSRC Enterprise Fellowships 158,074 158,074 166,064 166,064 STFC Enterprise Fellowships 137,167 137,167 143,956 143,956 Charitable Trusts 7,000 358,402 4,130 313,401
Promotion of research and innovation – restricted income 2,590,929 2,942,331 2,223,033 2,532,304 Scottish Government Grant – Engagement and expertise 366,042 366,042 284,080 284,080 Scottish Government Grant – International activities 378,917 378,917 270,438 270,438 IEE E/ RS E/ Wolfson James Clerk Maxwell Award 15,390 15,390 22,472 22,472 Policy and advice income 4,800 4,800 2,389 2,389
Total restricted income 3,356,078 3,707,480 2,802,412 3,111,683 Policy and advice income 41,592 41,592 103,417 103,417 Meetings 61,962 61,962 53,008 53,008 Wider outreach activities 47,110 47,110 44,082 44,082 International income 5,382 5,382 6,602 6,602 Educational activities 5,000 5,000 5,000 5,000 Other sundry income 7,200 7,200 12,118 12,119 Journal publications 224,958 103,625 252,026 75,805 Conference facilities letting 167,456 – 143,403 – 3,916,738 3,979,351 3,422,068 3,411,716
Further information relating to grants, donations and receipts and their application is set out in note 26.
24 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
6 Resources expended 2015 2014
GROUP Direct costs Support costs Total 2015 Direct costs Support costs Total 2014 (Note 11) (Note 11) £ £ £ £ £ £ Costs of generating funds Fundraising 9,482 101,286 110,768 23,755 90,501 114,256 Fellows’ subscriptions – 102,266 102,266 – 98,476 98,476
9,482 203,552 213,034 23,755 188,977 212,732 Building management 81,383 75,019 156,402 9,053 60,031 69,084 Investment fees 5,040 – 5,040 5,040 – 5,040
Total costs of generating funds 95,905 278,571 374,476 37,848 249,008 286,856
Charitable activities Enhancing World-Class Research (note 8) 2,105,415 202,012 2,307,427 1,933,967 198,138 2,132,105 Strengthening connections among academia, business, public and voluntary sector (note 9) 813,814 134,705 948,519 612,483 113,822 726,305 RSE Young Academy of Scotland 27,349 46,529 73,878 30,879 47,901 78,780 Enhancing public contribution to science, economic and cultural issues 174,744 459,479 634,223 165,575 466,860 632,435 Informing and influencing policy decisions 21,577 309,829 331,406 52,226 263,324 315,550 Recognising excellence 29,226 5,950 35,176 37,335 13,565 50,900 Reaching out 179,492 227,385 406,877 190,581 179,058 369,639
Total cost of charitable activities 3,351,617 1,385,889 4,737,506 3,023,046 1,282,668 4,305,714
Governance (note 10) RSE 9,096 79,668 88,764 8,040 89,380 97,420 RSE Scotland Foundation 3,432 32,884 36,316 3,300 43,960 47,260 RSE Scotland SCIO 3,594 – 3,594 3,799 – 3,799 BP Research Fellowship Trust 2,190 – 2,190 2,160 – 2,160
Total governance costs 18,312 112,552 130,864 17,299 133,340 150,639
Resources expended 3,465,834 1,777,012 5,242,846 3,078,193 1,665,016 4,743,209
Central support costs as set out in note 11 have been allocated to activities in proportion to the employment cost in each area of activity.
25 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
6 Resources expended (Continued) 2015 2014
RSE Direct costs Support costs Total 2015 Direct costs Support costs Total 2014 (Note 11) (Note 11) £ £ £ £ £ £ Costs of generating funds Fundraising 9,482 101,286 110,768 23,755 90,501 114,256 Fellows’ subscriptions – 102,266 102,266 – 98,476 98,476
Total costs of generating funds 9,482 203,552 213,034 23,755 188,977 212,732
Charitable activities Enhancing World-Class Research (note 8) 1,985,860 202,012 2,187,872 1,826,917 198,138 2,025,055 Strengthening connections among academia, 803,661 134,705 938,366 business, public and voluntary sector (note 9) 601,091 113,822 714,913 RSE Young Academy of Scotland 50,122 – 50,122 61,836 24,977 86,813 Enhancing public contribution to science, economic and cultural issues 155,634 323,441 479,075 147,611 376,211 523,822 Informing and influencing policy decisions 21,577 309,829 331,406 52,226 263,324 315,550 Recognising excellence 24,342 5,950 30,292 36,985 13,564 50,549 Reaching out 98,011 187,535 285,546 71,718 121,702 193,420
Total cost of charitable activities 3,139,207 1,163,472 4,302,679 2,798,384 1,111,738 3,910,122
Governance costs (note 10) 9,096 79,668 88,764 8,040 89,380 97,420
Resources expended 3,157,785 1,446,692 4,604,477 2,830,179 1,390,095 4,220,274
Central support costs as set out in note 11 have been allocated to activities in proportion to the employment cost in each area of activity.
7 Grants payable 2015 2014 £ £
Promotion of research (note 8) 2,191,258 2,001,246 International grants (note 8) 116,169 130,859
2,307,427 2,132,105 Prizes and grants 35,176 50,900 Promotion of Innovation (Note 9) 898,272 654,224
3,240,875 2,837,229
26 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015 notes to the financial statements
8 Enhancing World-Class Research 2015 2014 £ £
Promotion of Research Scottish Government Fellowships 1,180,424 1,156,169 Marie Curie COFUND actions 73,341 16,921 Arts & Humanities Workshop Grants 269,301 254,884 BP Research Fellowship Trust 129,216 102,443 CRF European Fellowships 44,341 40,177 CRF Personal Fellowships 138,315 120,197 Lloyds TSB Foundation for Scotland Studentship 6,090 – Robert Cormack Bequest 6,154 6,413 Piazzi Smyth Bequest 870 – John Moyes Lessells Scholarship 25,684 30,143 Auber Bequest Awards – 2,880 Henry Dryerre Scholarship 12,846 – RS E/ IASH Susan Manning Workshop Award 3,000 3,000 Other direct costs 5,394 3,438
1,894,976 1,736,665
Support costs (note 6) 176,727 157,531
2,071,703 1,894,196
International exchange grants 90,884 90,251 Support costs (note 6) 25,285 40,608
116,169 130,859
RSE 2,187,872 2,025,055 RSE Scotland Foundation – CRF Studentships 119,555 107,050
GROUP 2,307,427 2,132,105
An analysis of institutions and individual awards made under this expenditure heading is included in the Society’s Review 2014, obtainable from the address on the back cover. All awards are made to individuals and payable to their institutions.
27 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
9 Strengthening connections between business and academia
2015 2014 £ £
Scottish Enterprise Fellowships 520,216 283,917 STFC Enterprise Fellowships 120,436 127,208 BBSRC Enterprise Fellowships 140,180 142,612
780,832 553,737 Support costs (Note 6) 117,440 100,487
898,272 654,224 Business Innovation Forum 13,523 18,048 Policy partnerships 4,069 18,779 IE E/ RSE /Wolfson James Clerk Maxwell Awaard 15,390 21,919
32,982 58,746 Support costs (Note 6) 17,265 13,335
GROUP 948,519 726,305
10 Governance 2015 2014 £ £
Management and secretariat 116,864 136,639 Audit fee 14,000 14,000 Other professional advice from auditors – –
GROUP 130,864 150,639
2015 2014 £ £
Management and secretariat 80,364 89,380 Audit fee 8,400 8,040
RSE 88,764 97,420
28 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
11 Support costs
2015 2014 GROUP RSE GROUP RSE £ £ £ £
Staff costs (including secondments) (note 12) 1,258,298 1,047,736 1,170,417 996,828 Staff training, agency and recruitment costs 22,290 22,290 29,630 29,630 Other staff costs 16,625 16,625 – – Non-cash pension cost adjustments (FRS 17) (23,000) (23,000) (19,000) (19,000)
1,274,213 1,063,651 1,181,047 1,007,458 Other costs Establishment expenses 192,556 216,565 189,403 213,837 Computer and equipment costs 61,932 7,009 55,944 6,300 Communication, stationery and printing costs 50,351 30,715 49,789 31,300 Travel and subsistence, hospitality 24,471 24,157 24,807 24,724 Publicity 33,416 33,416 31,944 31,844 Miscellaneous 6,247 3,468 3,120 3,120 Professional fees and subscriptions 11,940 10,627 14,428 14,428 Depreciation 121,886 57,084 114,534 57,084
502,799 383,041 483,969 382,637
Total central costs 1,777,012 1,446,692 1,665,016 1,390,095
Support costs have been allocated to activities in proportion to the employment cost in each area of activity as set out in note 6.
12 Employees
2015 Total Secondments RSE Support Funded Funded Funded by RSE Payroll Project costs costs by Foundation by SCIO 2015 £ £ £ £ £ £ £
Wages and salaries 1,018,727 – (29,706) 989,021 144,313 27,933 816,775 Social security costs 75,025 – (1,646) 73,379 9,273 1,877 62,229 Other pension costs 200,946 – (5,048) 195,898 22,379 4,787 168,732
1,294,698 – (36,400) 1,258,298 175,965 34,597 1,047,736
Employees
2014 Total Secondments RSE Support Funded Funded Funded by RSE Payroll Project costs costs by Foundation by SCIO 2014 £ £ £ £ £ £ £
Wages and salaries 940,282 – (21,459) 918,823 122,107 18,805 777,911 Social security costs 65,954 – (999) 64,955 8,480 1,129 55,346 Other pension costs 189,579 – (2,940) 186,639 20,078 2,990 163,571
1,195,815 – (25,398) 1,170,417 150,665 22,924 996,828
The average number of employees of the RSE including those employed under joint contracts with the RSE Scotland Foundation and the RSE Scotland SCIO was 33 (201 4–32). One member of staff earned over £70,000 per year and is a member of a defined benefit pension scheme.
29 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
13 Tangible fixed assets 22 – 24 George Street 26 George Street Computer Other assets Total & equipment Leasehold Purchase Cost Purchase Cost Improvements GROUP £ £ £ £ £ £ Cost At 1 April 2014 1,103,038 1,647,468 2,136,070 363,696 22,930 5,273,202 Additions – – – 42,818 990 43,808 Disposals – – – (87,223) – (87,223)
At 31 March 2015 1,103,038 1,647,468 2,136,070 319,291 23,920 5,229,787
Depreciation At 1 April 2014 330,913 494,239 660,573 325,323 – 1,811,048 Disposals – – – (84,455) – (84,455) Charge for the year 22,061 32,949 44,467 22,409 – 121,886
At 31 March 2015 352,974 527,188 705,040 263,277 – 1,848,479
Net book value At 31 March 2015 750,064 1,120,280 1,431,030 56,014 23,920 3,381,308
At 31 March 2014 772,125 1,153,229 1,475,497 38,373 22,930 3,462,154
RSE £ £ £ £ £ £ Cost At 1 April 2014 1,103,038 1,647,468 – 90,862 22,930 2,864,298 Additions – – – – 990 990
At 31 March 2015 1,103,038 1,647,468 – 90,862 23,920 2,865,288
Depreciation At 1 April 2014 330,913 494,239 – 80,519 905,671 Charge for the year 22,061 32,949 – 2,074 – 57,084
At 31 March 2015 352,974 527,188 – 82,593 – 962,755
Net book value At 31 March 2015 750,064 1,120,280 – 8,269 23,920 1,902,533
At 31 March 2014 772,125 1,153,229 – 10,343 22,930 1,958,627
Additions to other assets comprise a bequest of silver tableware from the estate of Professor R H Smith, at its valuation by Lyon and Turnbull.
30 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015 notes to the financial statements
14 Fixed asset investments Value at Investments Proceeds on sale Gain / (Loss) Revaluation Market value at 1 April 2014 made at cost of investments 31 March 2015 £ £ £ £ £ £ (a) Fixed asset investments RSE Managed Funds 2,372,986 64,621 (148,521) 2,743 184,127 2,475,956 Fixed interest 1,576,843 – (109,800) 2,526 48,545 1,518,114 UK equities 5,536,870 986,298 (622,783) 58,963 (236,633) 5,722,715 Cash deposits 243,398 (1,050,919) 881,104 – – 73,583
9,730,097 – – 64,232 (3,961) 9,790,368 BP Research Fellowship Trust Managed Funds 836,188 31,326 (50,253) 808 64,586 882,655 Fixed interest 526,503 – (16,787) (308) 13,544 522,952 UK equities 1,929,098 306,211 (220,095) 5,494 (72,034) 1,948,674 Cash deposits 71,719 (337,537) 287,135 – – 21,317
3,363,508 – – 5,994 6,096 3,375,598 RSESF Caledonian Research Fund Managed Funds 2,384,417 83,226 (128,519) 2,349 140,646 2,482,119 Fixed interest 1,504,190 – (56,149) (833) 34,640 1,481,848 UK equities 5,280,501 896,658 (612,479) 20,232 (178,269) 5,406,643 Cash deposits 251,147 (979,884) 797,147 – – 68,410
9,420,255 – – 21,748 (2,983) 9,439,020
GROUP 22,513,860 – – 91,974 (848) 22,604,986 The gain on sale of investments measured against their historical cost was £427,634 ( 2014: £741,382 ) The historical cost of investments was £19,083,688 ( 2014: £18,729,292 ). (RSE £8,542,900, 2014: £8,358,812 ). Investments comprising more than 5% of the market value of the portfolio were: Aberdeen Asia Income Fund. All investments are held within the UK.
(b) Loan by RSE to RSE Scotland Foundation 2015 2014 £ £
Due within one year 46,808 46,808 Due after one year 1,469,864 1,516,672
1,516,672 1,563,480
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.
15 Debtors 2015 2014 GROUP RSE GROUP RSE £ £ £ £
GROUP General debtors 199,296 129,192 291,180 224,618 Prepayments and accrued income 7,162 214 7,908 780 Income Tax Recoverable 35,409 35,409 32,509 32,509
241,867 164,815 331,597 257,907
31 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
16 Creditors: Amounts falling due within one year 2015 2014 GROUP RSE GROUP RSE £ £ £ £
General creditors 174,172 132,620 97,713 66,102 Research awards payable 625,995 625,995 397,953 397,953 Accruals 69,477 20,219 110,491 63,616 VAT payable 49,561 – 43,228 – Other taxes and social security 25,397 25,397 25,168 25,168 Deferred income 196,681 196,681 608,950 608,950 Event income deferred 24,759 24,759 39,304 39,304 Advance receipts – Publications 117,332 – 93,562 –
1,283,374 1,025,671 1,416,369 1,201,093 RSE Scotland Foundation Current Account – 1,254,640 – 1,223,774 RSE Scotland SCIO Current Account – 17,775 – 26,120
1,283,374 2,298,086 1,416,369 2,450,987
Deferred income and advance receipts analysis At 1 April 2014 Received in year Recognised in year Exchange difference At 31 March 2015 £ £ £ £ £
Marie Curie COFUND 394,684 – (345,343) (49,341) – Friends of the Society 3,000 23,750 (22,500) – 4,250 Digital Participation Inquiry 17,135 – (17,135) – – Computing Project 17,953 – (3,708) – 14,245 RSE @ Project 8,671 20,300 (15,126) – 13,845 Talk Science @ Invine Bay 3,880 32,668 (29,048) – 7,500 International Activities 54,167 30,000 (47,004) – 37,163 Subscription income 109,460 196,638 (186,420) – 119,678
608,950 303,356 (664,284) (49,341) 196,881
Journal receipts 93,562 234,775 (220,119) – 93,562
Event income 39,304 19,345 (33,890) – 24,759
17 Provision for liabilities and charges 2015 2014 £ £
Commitments for research fellowships At 1 April 2014 – GROUP & RSE 51,590 65,634 RSE@Scottish Borders (10,000) – Grants paid in the year (6,955) (14,044) Repaid to Lloyds TSB Foundation for Scotland (34,635) – At 31 March 2015 – 51,590
32 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015 notes to the financial statements
18 General Fund £
At 1 April 2014 – GROUP & RSE 604,131
Net movement in funds for the year from statement of financial activities (60,567)
At 31 March 2015 543,564
19 Designated Funds At 1 April 2014 Investment Other income Expenditure Gains /(Losses) Transfers At 31 March 2015 income GROUP & RSE £ £ £ £ £ £ £
Capital Asset Reserve 3,488,836 – – – – (101,818) 3,387,018 New Enlightenment Fund 5,885,924 195,412 19,397 (71,708) 32,338 (564,265) 5,497,098 Building Fund – 21,158 – (381) 3,504 564,265 588,546 Staff Development Fund – 10,661 – (192) 1,764 284,819 297,052 Programme Fund 165,122 6,181 – (111) 1,022 (172,214) – CH Kemball Fund 35,471 1,328 – (3,876) 220 – 33,143 Grants Fund 784,819 18,715 – (16,902) 3,097 (284,819) 504,910 Dr James Heggie Fund 279,619 10,466 – (6,741) 1,732 – 285,076
10,639,791 263,921 19,397 (99,911) 43,677 (274,032) 10,592,843
The transfers represent the release from the Capital Asset Reserve of a total of £101,818 to match the depreciation of buildings and the amount of capital repayment of the loan to the Foundation.
20 Restricted Funds
At 1 April 2014 Investment Other income Expenditure Gains /(Losses) Transfers At 31 March 2015 income £ £ £ £ £ £ £
Robert Cormack Bequest 122,357 4,580 – (10,697) 758 – 116,998 Lessells Trust 537,008 20,100 9,837 (32,476) 3,326 – 537,795 Auber Bequest 581,082 21,750 – (7,349) 3,599 – 599,082 Prizes Fund 82,788 3,099 – (1,741) 513 – 84,659 Dryerre Fund 593,256 22,206 – (20,350) 3,675 – 598,787 Fleck 132,306 4,952 – (1,674) 820 – 136,404 Piazzi Smyth 16,369 613 – (1,077) 101 – 16,006 Sillitto 39,033 1,461 – (494) 242 – 40,242 Others 35,414 1,326 – (448) 219 – 36,511 Edinburgh Drug Absorption Foundation 107,999 610 – – – – 108,609 Restricted Income Fund – – 3,356,078 (3,356,078) – – –
RSE 2,247,612 80,697 3,365,915 (3,432,385) 13,253 – 2,275,093 RSE Scotland Foundation 10,518,533 361,830 635,074 (815,744) 18,765 (164,294) 10,554,164 RSE Scotland SCIO 25,434 – 14,542 (27,350) – – 12,626 BP Research Fellowship Trust 3,379,711 130,317 – (146,676) 12,090 – 3,375,442
GROUP 16,171,290 572,844 4,015,531 (4,422,154) 44,108 (164,294) 16,217,325
33 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
20 Restricted funds (continued) “Prizes Fund” comprises The Keith Fund, The Neill Fund, The Makdougall-Brisbane Fund, The Gunning-Victoria Fund, The James Scott Prize Fund, the Bruce-Preller Lecture Fund, The Dr DA Berry Fund, The Henry Duncan Prize Lecture Fund and The BP Prize Lecture in the Humanities Fund. “Others” comprise the Retailing Seminars Fund and The CASS Fund. The Restricted Income Fund represents restricted income received and expended in the year. Under the terms of the Lessells Trust the University of Glasgow is entitled to 10% of additional amounts received by the RSE from the Trust. The funds of the RSE Scotland Foundation are treated as restricted in respect of the consolidated accounts and comprise the endowment for the upkeep of the James Clerk Maxwell statue of £32,353, the CRF fund of £9,802,952 and the balance of the Foundation general fund of £718,861.
21 Analysis of assets between funds
General Designated Funds Restricted Funds 2015 2014 GROUP £ £ £ £ £
Fund balances at 31 March 2015 are represented by: Tangible fixed assets 32,187 1,870,346 1,478,775 3,381,308 3,462,154 Investments 418,060 7,205,825 14,981,101 22,604,986 22,513,860 Loan to RSE Scotland Foundation – 1,516,672 (1,516,672) – – Current assets 92,448 – 149,419 241,867 331,597 RSE Scotland Foundation current account (1,254,640) – 1,254,640 – – RSE Scotland SCIO current account (17,775) – 17,775 – – Deposits 1,454,182 – 1,041,613 2,495,795 2,279,494 Cash 53,403 – 73,747 127,150 296,066 Current liabilities (20,301) – (1,263,073) (1,283,374) (1,416,369) Provisions for liabilities and charges – – – – (51,590) Pension fund liability (214,000) – – (214,000) –
543,564 10,592,843 16,217,325 27,353,732 27,415,212
General Designated Funds Restricted Funds 2015 2014 RSE £ £ £ £ £
Fund balances at 31 March 2015 are represented by: Tangible fixed assets 32,187 1,870,346 – 1,902,533 1,958,627 Investments 418,060 7,205,825 2,166,483 9,790,368 9,730,097 Loan to RSE Scotland Foundation – 1,516,672 – 1,516,672 1,563,480 Current assets 92,448 – 72,367 164,815 257,907 RSE Scotland Foundation current account (1,254,640) – – (1,254,640) (1,223,774) RSE Scotland SCIO current account (17,775) – – (17,775) (26,120) Deposits 1,454,182 – 1,041,613 2,495,795 2,279,494 Cash 53,403 – – 53,403 204,506 Current liabilities (20,301) – (1,005,370) (1,025,671) (1,201,093) Provisions for liabilities and charges – – – – (51,590) Pension fund liability (214,000) – – (214,000) –
543,564 10,592,843 2,275,093 13,411,500 13,491,534
34 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
22 Pension costs
(a) Universities Superannuation Scheme
The RSE participates in the Universities Superannuation Scheme (USS), a defined benefit pension scheme which is externally funded and contracted out of the State Second Pension (S2P) Scheme. The assets of the scheme are held in a separate trustee-administered fund. The fund is valued every three years by a professionally qualified independent actuary using the projected unit method, the rates of contribution payable being determined by the trustee on the advice of the actuaries. In the intervening years the actuaries review the progress of the scheme.
Because of the mutual nature of the scheme, the scheme's assets are not hypothecated to individual institutions and a scheme-wide contribution rate is set. The RSE is therefore exposed to actuarial risks associated with other institutions' employees and is unable to identify its share of the underlying assets and liabilities of the scheme on a consistent and reasonable basis and therefore, as required by FRS 17 "Retirement benefits", accounts for the scheme as if it were a defined contribution scheme. As a result, the amount charged to the income and expenditure account represents the contributions payable to the scheme in respect of the accounting period.
At 31 March 2015, USS had over 145,000 active members and the RSE had two active members participating in the scheme.
The latest actuarial valuation of the scheme was at 31 March 2011. The most significant assumptions, those relating to the rate of return on investments and the increase in salary and pensions are as follows:
Past service Future service liabilities liabilities
Investment return 6.1 6.1
Salary increase 4.4 4.4
Pension increase 3.4 3.4
At the valuation date the market value of the scheme’s assets was £32,433.5 million and the value of the scheme’s technical provisions was £35,343.7 million on the scheme’s historical funding basis. The value of the assets represented 92% of the benefits that had accrued to members, after allowing for expected future increases in earnings. As part of this valuation, the trustees have determined, after consultation with the employers, a recovery plan to pay off the shortfall by 31 March 2021. Since the previous valuation as at 31 March 2008, there have been a number of changes to the benefits provided by the scheme, although these became effective from October 2011. These include: change to career revalued benefits for new entrants, normal pension age increase to 65, increase in member contributions and cost sharing, in the ratio 65:35 employers to members, of the excess contribution over 23.5%.The contribution rate payable by the RSE in the year was 16.0% of pensionable salaries. The actuary has confirmed that it is appropriate to take the pension charge to be equal to the actual contribution paid during the year. The total pension cost payable to USS in the year was £18,841.
(b) Lothian Pension Fund
The RSE also participates in the Lothian Pension Fund, a defined benefit pension scheme established under Local Government Pension Fund Regulations. This scheme has determined that it is possible to ascertain the shares of assets and liabilities relating to individual admitted bodies. The assets of the scheme are held in a separate trustee-administered fund.
The fund is valued every three years by a professionally qualified independent actuary using the projected unit method, the rates of contribution payable being determined by the trustee on the advice of the actuaries. In the intervening years the actuaries review the progress of the scheme.
At the latest valuation date the market value of the scheme’s assets was £4,379 million and the value of past service liabilities was £4,796 million. The value of the assets represented 91.3% of the benefits that had accrued to members, after allowing for expected future increases in earnings. The contribution rate payable by the RSE was: 17.1% plus a fixed amount of £39,300 per annum. The actuary has confirmed that it is appropriate to take the pension charge to be equal to the actual contribution paid during the year.
35 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
22 Pension costs (continued) Pension fund asset / (liability) The RSE pension fund liability at 31 March and the movements of its component parts comprise:
2015 2014 £’000 £’000
Present value of funded liabilities (defined benefit obligation) (4,460) (3,333) Fair value of employer assets 4,246 3,354
Net (liability )/asset 31 March (214) 21
2015 2014
Movement in present value of defined benefit obligation £’000 £’000
At 1 April 3,333 2,908 Current service cost 224 181 Past service costs – – Interest cost 148 134 Contribution by members 55 50 Actuarial losse s 737 153 Benefits paid (37) (93)
At 31 March 4,460 3,333
2015 2014 Movement in fair value of employer assets £’000 £’000
At 1 April 3,354 3,042 Expected return on assets 211 165 Contributions by members 55 50 Contributions by the employer 184 169 Actuarial gain s 479 21 Benefits paid (37) (93)
At 31 March 4,246 3,354
2015 2014 The net expense recognised in the statement of financial activities after FRS17 adjustments was £’000 £’000
Current service cost 224 181 Interest cost 148 134 Expected return on employer assets (211) (165) Past service cost/(gain) – –
161 150
The total amount recognised in the statement of financial activities in respect of actuarial gains and losses is a loss of £237,000 (2014: loss of £19,000).
36 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
22 Pension costs (continued)
The fair value of the employer assets at 31 March and the return on them in the year was: Value Return Value Return 2015 2015 2014 2014 £’000 % £’000 % Equities 2,929 3.3 2,583 6.6 Bonds 722 3.3 302 3.9 Property 340 3.3 268 4.8 Cash 255 3.3 201 3.7
4,246 3,354
Actual return on plan assets 185
The expected rates of return on plan assets are set equal to the discount rate (as per FRS 102 disclosure reuirements). The overall expected rate of return is calculated by weighting the individual rates in accordance with the anticipated balance in the Plan’s investment portfolio.
Principal actuarial assumptions (expressed as weighted averages) at the year end were as follows: 2015 2014 % % Inflation/pension increase rate 2.5 2.8 Salary increase rate 4.4 5.1 Expected return on assets 3.3 6.1 Discount rate 3.3 4.3 The salary increase assumption is 1% per annum until 31 March 2015, reverting to the long term assumption thereafter. The assumptions relating to longevity underlying the pension liabilities at the balance sheet date as based on the Fund’s Vita Curves including an allowance for future improvements in longevity.
The history of the plan for the current and prior 2015 2014 2013 2012 2011 2010 2009 2008 periods is as follows: £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Present value of defined benefit obligation (4,460) (3,333) (2,908) (2,209) (2,087) (2,299) (1,128) (1,145) Fair value of employer assets 4,246 3,354 3,042 2,441 2,174 1,884 1,267 1,437 Surplus/(deficit) (214) 21 134 232 87 (415) 139 292 Experience gains and losses on assets and liabilities have been as follows: 2015 2014 2013 2012 2011 2010 2009 2008 £’000 £’000 £’000 £’000 £’000 £’000 £’000 £’000 Experience gains/(losses) on liabilities (38) 1 1 180 – – 28 – Experience gains/(losses) on assets 479 21 249 (67) (37) 374 (396) (140)
The projected amount to be charged in respect of the Lothian Pension Fund defined benefit scheme in the next financial year is £166,000.
(c) Pension charge The total pension charge for the year, before the FRS17 pension credit, was £200,946 (2014: £192,488) before FRS17 pensions credit.
37 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
23 Transactions with related parties (a) Council members No member of Council received any payments other than reimbursements of expenditure on travel and subsistence costs actually and necessarily incurred in carrying out their duties as Councillors and Officers. The aggregate of such reimbursements to those Council members who charged expenses amounted to £9,953 (2014: £11,487). b) Other related parties The RSE Director of Finance is also a part-time employee of the Carnegie Trust for the Universities of Scotland, which administers postgraduate scholarships on behalf of the Foundation. In 2014 –15 the Foundation made payments in support of the studentship scheme amounting to £119,555 (2014: £107,051).
24 Connected charitable trusts (a) RSE Scotland Foundation The RSE Scotland Foundation is a charitable trust, recognised in Scotland as Scottish charity number SC024636. It was created in March 1996 with the object of advancing the education of the public in Scotland in science and engineering and in so doing to conserve the scientific and cultural heritage of Scotland. The President, General Secretary, Treasurer, Curator and a Vice-President of the RSE are ex officiis Trustees of the Foundation, which draws on the resources of the RSE in carrying out its objects. The Foundation also has five nominated Trustees appointed by the RSE Council. The Foundation became publisher of the RSE’s journals under a Publications Rights License effective from 1 January 1997. On 1 July 1997 the RSE granted to the Foundation a 50-year lease over 26 George Street carrying an obligation to refurbish the building within a three-year period. The Council of the RSE agreed to make a loan of up to £2.3 million available to the Foundation in support of the refurbishment. The agreed terms of the loan are as described in note 14(b). The Foundation plays a leading role in the RSE’s public outreach activities and manages the premises in Edinburgh. It also manages the programme of research activities funded by the Caledonian Research Fund. (b) BP Research Fellowships Trust The BP Research Fellowships Trust is a charitable trust recognised in Scotland as Scottish Charity Number SC008420. It funds a scheme of post doctoral research fellowships administered by the RSE. Its Trustees are the President, General Secretary and Treasurer ex officiis. (c) RSE Scotland SCIO RSE Scotland SCIO – incorporated in June 2012 as Scottish Charity Number SC043194, with charitable purposes of the advancement of education; the arts, heritage, culture or science; and of citizenship or community development. The SCIO co-ordinates the development of the RSE Young Academy of Scotland. As permitted by FRS8, Intragroup transactions have not been disclosed.
Income Expenditure Surplu s/ Deficit Net Assets £ £ £ £
RSE Scotland Foundation 1,156,205 (1,139,334) 16,871 10,554,164 RSE Scotland SCIO 64,664 (77,472) (12,808) 12,626 BP Trust 130,317 (146,676) (16,359) 3,375,442
25 Financial commitments – operating leases The financial commitment at 31 March 2015 in respect of operating leases expiring within two to five years for printing and copying equipment, was £8,808 (2014: within two to five years £8,452) .
38 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
26 Supplementary information: grants, donations and receipts (a) Scottish Government Grants Income 2015 2014 £ £
Science Research Fellowships 1,308,445 1,269,910 Arts and Humanities Award 299,433 275,572 Engagement and Expertise 366,042 284,080 International Grants and Relationships 386,080 270,438 Grant –in-aid 2,310,000 2,100,000
SFC Grant for Liaison with China (amount expended) 42,837 –
2,352,837 2,100,000
The funding for 2014 –15 was grant-in-aid under S23 Natural Heritage (Scotland) Act 1985 in support of two programmes of activity: Inspiration, comprising: Research Fellowships, Arts & Humanities Awards; International grants & relations and Engagement and Expertise, administered through the Scottish Funding Council. A further grant of £30,000 was made by SFC in support of developing relationships in China. This will be expended in 2015 –16. £10,000 was received from Scottish Government in support of the James Clerk Maxwell statue information plaques.
At 31 March 2015 the financial commitment in respect of Personal and Support Fellowships awarded subject to Scottish Government funding in the years, 2015 –16, 201 6–17, 2017 –18, 201 8–19 and 2019 –20 amounted to £1,032,970, £959,200, £929,620, £640,000 and £197,760 respectively. These amounts are treated as obligation of future years to be financed by specific funding expected to be made available from the Scottish Government.
The amount paid to Universities in respect of the Research Fellowships represented approximately 50% of the full economic cost of employing the Research Fellows. The support of the Universities in funding the balance of the cost is essential to the success of the scheme.
(b) Other donations in support of activities
The RSE gratefully acknowledges all those who make donations in support of activities. The companies, trusts and other bodies which made donations of £1,000 or more in support of activities in the year ended 31 March 2015 were as follows:
British Computer Society Royal Academy of Engineering Buccleuch Charitable Foundation Royal Institute of Philosophy Darwin Trust of Edinburgh Royal Scottish Academy of Art & Architecture French Embassy Royal Society of Chemistry Google UK Ltd Scottish Cancer Foundation Holywood Trust Scottish Financial Risk Academy Institute and Faculty of Acturaries Scottish Historical Review Trust Institute of Physics Scottish Natural Heritage Irvine Bay Regeneration Company Society of Biology James Weir Foundation University of Dundee Lord Joicey University of Glasgow M Squared Lasers University of Strathclyde Maxeler Technologies Ltd Wolfson Microelectronics plc NHS Great Glasgow & Clyde, Specialist Childrens Services
39 ROYAL SOCIETY OF EDINBURGH Trust ees’ Re port & Acc ounts 2014 –2015
notes to the financial statements
26 Supplementary information: grants, donations and receipts (continued)
(c) Friends of the Society
The Friends of the Society – corporate partners of the RSE, during the year ended 31 March 2015 were as follows:
Arup Group Shell UK Limited Aggreko Plc Scottish Council for Development and Industry Baillie Gifford Shepherd & Wedderburn BP Plc Tesco Bank Herald & Times Group Toshiba Medical Indigo Vision Turcan Connell Optos Plc
27 Analysis of net fund s At 31 March 2015 Cash flows At 1 April 2014 £ £ £
Cash at bank 127,150 (168,916) 296,066 Deposits – general 1,454,182 60,783 1,393,399 Deposits – designated funds – – – Deposits – restricted funds 1,041,613 155,518 886,095
2,622,945 47,385 2,575,560
40 The Royal Society of Edinburgh is Scotland’s national academy. Founded in 1783, its Fellowship includes some of the best intellectual talent in academia, the professions and business. It facilitates public debate, research programmes, educational projects and strategy formulation. Its strength is its diversity and impartiality. The RSE’s unique multi-disciplinary approach enables it to draw from and link with a broad spectrum of expertise to advance the understanding of globally-important issues. In fu lfilling its Royal Charter for the ‘advancement of learning and useful knowledge ’, the RSE is seeking to contribute to the social, cultural and economic wellbeing of Scotland.
© The Royal Society of Edinburgh 2015 This publication is available online at www.royalsoced.org.uk/1085_TrusteesReportandAccounts.html
The Royal Society of Edinburgh is registered in Scotland as Scottish Charity No. SC000470 The RSE Scotland Foundation is a connected charity, registered in Scotland as Scottish Charity No. SC024636 The RSE Scotland SCIO is a connected charity, registered in Scotland as Scottish Charity No. SC043194 Inland Revenue Claim Board Reference CR 18102
This document is printed on 100% recycled paper Scotland’s National Academy