Annual report 2016–17 Our year 07 Trustees’ and strategic report 69 Financial statements 75
2016 –17
3 Annual repor t 2016 –17 41 Leaders of the future
Chair’s foreword Doctoral scheme CEO’s foreword Turing doctoral students Turing enrichment students Data science will Data science masterclasses Part 01 Internships 07 Our year 09 Research 51 Shaping the public conversation change the world. Open for business What is data science? Faculty Fellows Turing Lectures Early career researchers Data debates Software Engineers and Data Scientists Video library Scientific Advisory Board Workshops, seminars and events Visiting Researchers Interest groups: — Data ethics 63 Looking ahead — Blockchain Research projects: Afterword from Alan Wilson — Artificial intelligence for data analytics — Co-designing algorithms Part 02 and computer architecture 69 Trustees’ and strategic report — Security in the cloud — Better data for better decisions Part 03 75 Financial statements 31 Collaboration
Strategic partners — Lloyd’s Register Foundation — Intel — UK defence and security — HSBC Partnerships and collaboration — British Library — Microsoft — Data Study Groups — Winton Labs — Office for National Statistics Chair’s foreword CEO’s foreword
It has been a landmark year for We operate in a time of political uncertainty. I joined the Institute as a Faculty Fellow We already have the beginnings The Alan Turing Institute. The Institute has an opportunity to make in July of last year and from the 1 October, of programmes in the first four of these, a real difference to post-Brexit Britain. I have been privileged to be the CEO. we are actively developing the other We have moved from start-up to full Through our applied research we will I watched the physical creation of the two and we will develop new themes operations and are already generating make a substantive contribution to the Institute in my early months and from — including those that are cross-cutting impact, thanks to the efforts of our UK economy and generate new services, October, a considerable, almost such as data ethics. excellent faculty of academics, our products and jobs. Our world-class instantaneous, research base has been business team and the support of our research will keep the UK at the forefront established through our Faculty Fellows, I think we can be proud of what we founding members and partners. of data science and will act as a magnet Research Fellows, Software Engineers have achieved in a start-up year and for international talent. We will train and doctoral students. There is a buzz my thanks go to the Board, the business We have been fortunate to attract great the next generation of data science about the place that has enabled us team, the connected research community talent to work with us and I am extremely leaders. In a global economy tackling to launch research projects and interest and our partners for getting us to this grateful to Andrew Blake for leading the the impact of artificial intelligence, groups and to establish programmes point. We relish the chance to rise to Institute through its start-up and to Alan we will provide a trusted voice on new with our four strategic partners. We have the challenges that lie ahead. Wilson, who joined us as CEO in October data-driven technologies. built new partnerships, for example with 2016 and to all our executive and academic the British Library, Microsoft and the Office colleagues. I would also like to thank I look forward to working with the for National Statistics and many others my Board colleagues, who have been remarkable team at the Institute to build are the subject of active conversations. unstinting in the time they have given on the foundations established so far Alan Wilson/ to the Institute and in particular Julie and to make 2017/18 another year of We have developed a new strategic plan Institute CEO Maxton, Executive Director of the Royal great achievement. which provides the basis for expanding Society and Wendy Tan White, General our fellowships, our universities’ network Partner at Entrepreneur First, who joined and our research funding base. Within our Board of Trustees in November 2016. this, our research strategy is critical. Its further development is an exciting Investment in artificial intelligence and Howard Covington/ challenge. We are combining a wide range data science research will be critical to Institute Chair of disciplinary contributions to data science national prosperity for the foreseeable into a new multidisciplinary coalition. future. The last decade saw the world wake We are functioning from end-to-end: from up to the power and value of its data and data wrangling through developing and this decade is focused on developing the deploying a rich data analytics toolkit right algorithms to help data owners to in a range of applications domains. organise, understand and exploit it. We can make potentially game-changing contributions along this spectrum: making This cannot be achieved without richer and bigger data sets available for powerful analytical tools, privacy- analysis; developing algorithms and models preserving technology, enhanced which will tackle challenges such as high computer processing and appropriate dimensionality; and making transformative considerations of ethics, fairness discoveries in domains such as data- and transparency. These are all areas centric engineering, computing technology, in which the Institute has formidable defence and security, finance, cities expertise and we intend to use this and health. knowledge to have a transformative effect on the UK economic and scientific landscape.
Howard is a graduate His second career is in He is vice-chair Sir Alan Wilson FBA His research field He has a particular interest of St John’s College, promoting mathematical of ClientEarth, an FAcSS FRS is CEO of The covers many aspects of in interdisciplinarity and Cambridge. He has a double sciences and action to environmental law Alan Turing Institute and mathematical modelling published Knowledge first in theoretical physics reduce climate change. firm, and an adviser Professor of Urban and of cities and the use of power in 2010; he writes and a distinction in to Preventable Surprises, Regional Systems in the these models in planning. the quaestio blog: quaestio. post-graduate maths. He has been a trustee a think-tank. He has Centre for Advanced His models have been blogweb.casa.ucl.ac.uk of the Science Museum, written on the response Spatial Analysis at University widely used in areas such and was knighted in 2001. His first career was in is chair of the Isaac Newton of the investment industry College London. He is as transport planning, the City as an investment Institute for Mathematical to climate change for Chair of the Home Office demography and banker and asset manager. Sciences, the UK’s national the Wall Street Journal, Science Advisory Council. economic modelling. He became a director maths research institute the Financial Times of SG Warburg and then at Cambridge, and is and Nature. He is a Cambridge He has published over European chief executive the inaugural chair of Mathematics graduate 200 papers and his recent of Wasserstein Perella, The Alan Turing Institute. and began his research books include The science a U.S. investment bank. career in elementary of cities and regions (2012), He co-founded New Star particle physics at the his five volumeUrban Asset Management and Rutherford Laboratory. modelling (2012, edited), was its chief executive Explorations in urban and until it was sold to He turned to the social regional dynamics (2015, Henderson in 2009. sciences, working on cities, with Joel Dearden), Global In 2014, he cofounded with posts in Oxford and dynamics (2016, edited) Greenrock Homes, London before becoming and Geo-mathematical a property developer. Professor of Urban modelling (2016, edited). and Regional Geography in Leeds in 1970.
4 The Alan Turing Institute Annual report 2016–17 5 The Alan Turing Institute is the national Our research institute for data science, headquartered The Alan Turing Institute is interested at the British Library. in research which tackles the big challenges in data science with lasting Five founding universities — Cambridge, effects for science, the economy Part 01 Edinburgh, Oxford, UCL and Warwick — and the world we live in. and the UK Engineering and Physical Sciences Research Council created The We apply our data science research Alan Turing Institute in 2015 in order to to real-world problems, working with answer a national need for investment partners in industry, government Our year in data science research. and the third sector.
Our mission Our mission is to make great leaps in data science research in order to change the world for the better.
Research excellence is the foundation of the Institute: the sharpest minds from the data science community investigating the hardest questions. We work with integrity and dedication.
Our researchers collaborate across disciplines to generate impact, both through theoretical development and application to real-world problems. We are fueled by the desire to innovate and add value.
Data science will change the world. We are pioneers; training the next generation of data science leaders, shaping the public conversation, and pushing the boundaries of this new science for the public good.
6 The Alan Turing Institute Annual report 2016–17 7 Research
8 The Alan Turing Institute Annual report 2016–17/ Our year 9 We have had an exceptional first year of research at The Alan Turing Institute. We published our strategic priority areas for research, spanning financial services, health and well-being, urban analytics, defence and security, technology and engineering.
We recruited more than 150 talented researchers from our five founding universities and beyond. And six months into our first academic year, collaborations and projects are being formed around some key challenges in data science.
Andrew Blake/ Research Director
Professor Andrew Blake Before joining Microsoft Andrew Blake/ is Research Director Andrew trained in Research Director at The Alan Turing mathematics and electrical Institute. Prior to joining engineering in Cambridge the Institute in 2015, England, and studied for Professor Blake held the a doctorate in artificial position of Microsoft intelligence in Edinburgh. Distinguished Scientist and Laboratory Director He was an academic of Microsoft Research for 18 years, latterly on Cambridge, England. the faculty at the University of Oxford, where he He joined Microsoft in was a pioneer in the 1999 as a Senior Researcher development of the theory to found the Computer and algorithms that can Vision group. In 2008 make it possible for he became a Deputy computers to behave Managing Director at as seeing machines. the lab, before assuming the directorship in 2010.
10 The Alan Turing Institute Annual report 2016–17/ Our year 11 150+ 5000+ We have kick-started More than 5000 a vibrant research community researchers through at The Alan Turing Institute, our doors for workshops, with more than 150 researchers seminars and events. working together to advance the world-changing potential of data science. 7 7 world-leading experts in data science and its applications appointed to our Scientific Advisory Board.
16 4 14 23 12 16 full-time Research 4 talented Research 14 of the best and brightest 23 doctoral students 12 interest groups created Fellows recruited to run Software Engineers doctoral students selected spending a year at the to advance collaboration. 3-5 year research projects transforming our research from 250+ applicants Turing as part of our unique at the Turing. into high quality software. to undertake their full enrichment programme. PhD at the Turing.
93 8 93 senior computer scientists, Eight leading data scientists statisticians, mathematicians from around the world hosted and social scientists from as Visiting Researchers. our five founding universities joined the Institute part-time as Faculty Fellows.
12 The Alan Turing Institute Annual report 2016–17/ Our year 13 Open for business Faculty Fellows One of the most exciting research In October 2016 we opened our new, More than 90 senior mathematicians, custom-built Turing research space computer scientists, statisticians challenges for me is to find out how in the British Library. and social scientists joined the Turing community in 2016. much of data science we can automate. Comprised of open collaborative spaces, with bespoke areas for quiet study, A major focus in 2016/17 has been My Short Talk in October introduced the Institute headquarters has become building a framework for the Fellows a buzzing centre of activity. to collaborate and connect with one my work on the Automatic Statistician, another, to cut across disciplinary To mark the opening of the space and boundaries and to bring together some the principles of which have become the start of our first ever academic term, of the greatest minds in the data science we held a welcome event for researchers, community to spark new ideas. part of a major new collaborative partners and the business team. Opening speeches were given by Howard Covington, In our busy first term, more than 70 research project at the Turing. Institute Chair, Sir Mark Walport, the Fellows delivered ‘Short Talks’ on their government’s Chief Scientific Advisor research areas and collaborative and Douglas Flint, Chairman of HSBC. interests at the Institute.
Zoubin Ghahramani/ Faculty Fellow These Short Talks are available on YouTube and provide a valuable resource for Turing researchers and the broader academic community.
Zoubin Ghahramani presents ‘The Automatic Statistician’
Sir Mark Walport speaking The journey from a Prime Minister’s at the Institute welcome event in October 2016. Council for Science and Technology letter about algorithms, to a functioning research institute, has happened at a fantastic speed. There is no question that the power of big data is going to change things in extraordinary ways, and I look forward to seeing The Alan Turing Institute leading the way in these changes.
Sir Mark Walport/ Government Chief Scientific Advisor
14 The Alan Turing Institute Annual report 2016–17/ Our year 15 Office build
Days to complete 15 4
Sq. ft. refurbishment 18 ,126
Workstations installed 14 3
Lockers 103
Meeting rooms 8
16 The Alan Turing Institute Annual report 2016–17/ Our year 17 Early career researchers Software Engineers and Data Scientists During our first academic year, 16 Translation of research into applications researchers have joined the Institute as is a high priority for the Institute. We have Research Fellows. These early career assembled a team of Software Engineers researchers are undertaking projects in and Data Scientists for this purpose. This data science at the Institute for 3-5 years. team plays a crucial role in turning the results of the Institute’s research into These projects complement our strategic software that can be used to drive jobs, priorities and support the Institute’s services and create real-world applications. overall mission. They collaborate directly with researchers, The Research Fellows were selected from helping to translate prototypes into over 500 applicants through an intensive applications and advising on software peer-reviewing system and an interview development techniques such as version programme at the Institute. They specialise control, testing and deployment. in subjects ranging from machine learning to 3D modelling and the ethics of algorithms. In the Institute’s first year of operations, All work full-time at the Institute’s the team implemented a pair of novel headquarters in the British Library and network comparison algorithms developed benefit from opportunities for collaboration by Turing researchers as a package for R, with Faculty Fellows, students and one of the most widely used programming Visiting Researchers. languages for data analysis. The algorithms were made available as an open, robust and easy to use R package, enabling a wide range of data analysts outside academia to easily use them in their own work.
The engineers are also playing a critical role in the development of our ‘Artificial intelligence for data analytics’ research project, through supplying a repository of challenge datasets to test the new algorithms.
We expect to grow the team over the coming year and to attract key translational talent to work at the Institute.
What I find exciting is the chance Dong Nguyen/ The Turing is one of the few places Research Fellow to bridge the divide between theoretical in the world that enables early career advances in data science and real-world researchers to carry out independent problems. These days, that bridge is research. Furthermore, the unique, often built out of software. It’s a privilege interdisciplinary nature of the Institute both to be able to step back and think makes it the perfect place to carry carefully about particular problems, out my research agenda, in which and to use software to turn today’s hard, I have a basis in computer science research-level problems into the routine but work closely with social scientists solutions of tomorrow. and linguists. I have also gained more experience in advising students, James Geddes/ Research organising academic events, Software Engineer and applying for research funds, which are a valuable preparation for next steps in my career.
Dong Nguyen/ Research Fellow
18 The Alan Turing Institute Annual report 2016–17/ Our year 19 Research online Research online
Interest groups Research projects
12 13
0 1. Data Ethics Group 07. Natural language 0 1. Co-designing algorithms 09. Predictive monitoring processing and computer architecture of gas turbine engines 02. Topology and geometry for data 08. Data science 02. The Gamma: 10. Statistical methods for for mental health democratising data science instrumented infrastructure 03. Low-dimensional structure in data 09. Data and inequality 03. Counterfactual fairness 1 1. Coupled human and natural critical ecosystems 04. Bitcoin, blockchain 10. High dimensional statistics 04. Text as social and distributed and cultural data 12. Cancer pre-diagnostic ledger technologies 1 1. Fairness, analytics with AI transparency, privacy 05. Making things simple 05. Sampling algorithms before learning them 13. Machine learning for data analytics 12. Working group in disaster management on probabilistic 06. Artificial intelligence 06. Social data science numerical methods for data analytics
07. Security in the cloud
08. Bayesian analysis of single cell sequencing data Research publications
41
20 The Alan Turing Institute Annual report 2016–17/ Our year 21 Scientific Advisory Board Visiting Researchers We have appointed seven world experts The Alan Turing Institute’s visiting in data science and its applications researcher programme was launched to our Scientific Advisory Board. in October 2016.
Cynthia Dwork/ Chair In our first academic year, we held two Harvard open calls for Visiting Researchers from organisations around the world to come Sinan Aral and work with us on a short-term basis, MIT Sloan School of Management to spearhead innovation in specific areas of research, and to enhance Robert Devereux international collaboration. Department for Work and Pensions, UK Government From over 60 applications, eight Visiting Researchers were selected and they Mike Lynch have collectively spent 170 weeks at the Invoke Capital and Council Institute collaborating with researchers for Science and Technology on subjects ranging from machine learning tools and privacy, to systems and platforms Michael Kearns and understanding human behaviour. University of Pennsylvania A further six Visiting Researchers were Stéphane Mallat recruited to work in small groups at the École Polytechnique Institute, with groups looking at subjects including algorithms, statistical theory, Bin Yu and distributed systems. University of California, Berkeley
Drawn from a diverse range of specialisms from privacy, machine learning and engineering to macroeconomics and entrepreneurship, the members of the Board will advise on our scientific programme and ensure the Turing’s research remains internationally cutting edge.
Cynthia Dwork delivering a Turing Lecture in December 2016
Data-driven technologies are provoking a number of hard questions in science, with potentially huge impact for society and the economy on a global scale. The Institute is positioned to play a key leadership role in driving research in this area.
Cynthia Dwork/ Chair of the Institute’s Scientific Advisory Board
22 The Alan Turing Institute Annual report 2016–17/ Our year 23 I have been a part-time Visiting Researcher at The Alan Turing Institute during my sabbatical from Leigh University in the U.S. The main benefit for me has been the ability to expand the group of people I get to meet and professionally interact with, and to attend presentations of a variety of topics that I otherwise would be far less likely to encounter. As a direct result of my placement at the Institute I have developed a new collaboration with a Faculty Fellow and we hope to publish a joint paper as a result.
Katya Scheinberg/ Visiting Researcher from Leigh University, U.S.
24 The Alan Turing Institute Annual report 2016–17/ Our year 25 Interest groups The special issue contained 15 articles Blockchain The workshop allowed participants The interest groups established at the on subjects including privacy, smart cities Blockchain technologies have the potential to explore some of the basic principles Turing in its first year showcase the and health data, which together have been to influence many aspects of life, from of how blockchain works, but more exciting concentrations of expertise accessed more than 17,500 times since future currencies, delivery of government importantly to anticipate the social, in our research community. their publication in November 2016, making services and supply chains. technical and economic opportunities it among the most successful publications that distributed ledger technologies Made up of interdisciplinary researchers, of the year for the journal. In response to growing interest in this may offer. the groups collaborate on topics ranging disruptive new technology from the Turing from social data science to low and high The Turing also organised two workshops community, industry, government and An Insight Report, penned by Turing- dimensional statistics and deep learning. on the ethics of biomedical data, the beyond, we have convened researchers Lloyd’s Register Foundation researcher proceedings of which are forthcoming at the Institute to work with industry Gary Pogson will be published in 2017 and in a special issue of Philosophy & to explore it further. will share the findings of this workshop. Data ethics Technology, guest edited by Research Understanding the legal, ethical and Fellow Brent Mittelstadt. More than 70 academics, policy-makers societal implications of data is an and industry experts attended a day-long important role for the Turing. The ethical expertise concentrated in the ‘Cryptocurrencies and beyond’ workshop Data Ethics Group complements a wider at the Institute in November 2016 to scope In January 2017 we announced the group of researchers in the Institute potential research directions and debate membership of our Data Ethics Group, exploring issues of fairness, transparency the real-world implications of a blockchain- chaired by Luciano Floridi, Faculty Fellow and privacy in data science. This interest driven economy. and an internationally recognised expert group, led by Faculty Fellow Adrian Weller, in the ethics of data science. includes experts in machine learning, Expert speakers from the Home Office, security, causal inference and algorithm Department of Work and Pensions and Made up of academics specialising design. The group aims to develop new the Bank of England took part and the in ethics, social science, law, policy-making technical approaches to managing these associated videos from the event have and data and algorithms, the Data Ethics ethical challenges, and to inform been watched more than 2,000 times Group will drive the Institute’s research a broader discussion. on YouTube. agenda in this area and work across the organisation to provide advice and In February 2017, in partnership with the guidance on ethical best practice in Lloyd’s Register Foundation, we hosted data science. a workshop exploring engineering applications of blockchain technologies. Research generated by a Turing workshop examining the ethical impact of data science was the basis of a themed issue of Philosophical Transactions of the Royal Society edited by Faculty Fellows Luciano Floridi and Mariarosaria Taddeo.
The researchers in our interest There is keen interest in blockchain group come from a range of technologies from Turing researchers backgrounds — machine learning, with backgrounds in statistics, security, natural language processing, systems, social science and algorithms, maths, psychology, psychiatry, and we’ve worked with people from neuroscience, statistics, human Lloyd’s Register, British Standards computer interfaces. We hope to Institute, and the Cabinet Office. Over work together to kick-start one the next year, we will release a report or more projects using data for on blockchains, and run a project mental health, leading to suitable on distributed ledgers for digital clinical interventions which could rights management. improve diagnosis, monitoring and clinical outcomes for a number Graham Cormode/ University Liaison of mental health conditions. Director for Warwick and convenor of the Bitcoin, Blockchain and Distributed Maria Liakata/ Faculty Fellow Ledger interest group and convenor of the interest group in Data Science for Mental Health
26 The Alan Turing Institute Annual report 2016–17/ Our year 27 Research projects Co-designing algorithms Security in the cloud Better data for better decisions Six months into our first academic year, and computer architecture Much of today’s data is stored In collaboration with the Office for National projects are emerging and Turing research In this project in partnership with Intel, and processed in the cloud. However, Statistics Data Science Campus, Turing is already making an impact. Turing researchers are working to co- the cloud may not always meet the researchers are investigating whether design computer hardware and software stringent technical, legal and regulatory online data can be used to develop quicker Artificial intelligence for data analytics in order to suit the needs of data science requirements required to manage measurements of changes in the economy In this project Turing researchers are algorithms. The research, once complete, sensitive information. This project and society. The project aims to generate drawing on new advances in artificial will dramatically improve the speed of aims to create a new secure big data new indicators to support decision making intelligence and machine learning to data-driven computing tasks and will platform that enables data sharing across a range of policy domains and develop systems that help to automate provide Intel with the tools to build the without compromising data privacy, will contribute towards the development each stage of the data analytics process. next generation of computer processers with a potentially transformative effect of the next generation of data scientists and high performance systems. for sectors such as health, financial within government. The resulting technology has the potential services and crime. to revolutionise the speed and efficiency with which data can be transformed into useful knowledge.
28 The Alan Turing Institute Annual report 2016–17/ Our year 29 Collaboration
30 The Alan Turing Institute Annual report 2016–17/ Our year 31 The Institute is a place where I am guaranteed to meet interesting researchers I wouldn’t readily encounter at my own university.
It’s a real opportunity to make new connections and collaborate in an open and cross-disciplinary environment.
Jon Crowcroft/ Faculty Fellow
32 The Alan Turing Institute Annual report 2016–17/ Our year 33 Strategic partners Lloyd’s Register Foundation Intel UK Government defence and security HSBC The Alan Turing Institute has collaboration It has been a pivotal year for the Our Strategic Partnership with Intel The Institute launched its partnership The global financial bank HSBC is the at its heart: researchers from a range partnership between The Alan Turing has hit major milestones in 2016/17. with the UK Government Defence and latest strategic partner for the Institute. of disciplines working with partners in Institute and the Lloyd’s Register Security sector, signing an agreement industry, government and the third sector Foundation, who pledged £10 million Computational statistician Anthony Lee to work with GCHQ and the Ministry The multi-million pound partnership under a shared goal to advance research to support a programme in data-centric was appointed as Strategic Programme of Defence — including the Defence was announced in October 2016 and in data science. engineering in 2015. Director, responsible for ensuring the Science and Technology Laboratory aims to help economists, researchers, collaborative programme meets its goal (Dstl) and Joint Forces Command policymakers and businesses to better Leading statistician Mark Girolami was to shape the future of computation — in 2017. understand the UK economy and its appointed to lead the programme, and for data science. interconnection with global markets. together he and the Foundation have This agreement follows a year of launched research, education, training Intel has set up a dedicated team at intensive knowledge exchange and In its first six months, Turing researchers and standards activities to drive forward the Institute’s facilities at the University research scoping activities with Turing and HSBC economists are scoping their ambitious goals. of Edinburgh. They work on algorithm- researchers to determine the most potential research activities and building architecture co-design, which promises fruitful areas of collaboration. data-sharing capability and the next year The programme has identified three to dramatically increase the speed and promises to be a pivotal year as we map scientific grand challenges: efficiency of data-driven computing tasks, Early areas of interest for the partnership our research agenda. — how to ensure the resilience of complex and will provide Intel with feedback include creating intelligent data systems, infrastructure systems such as cities, to build the next generation of high- securing cyber-space and enhancing data railways, industrial plants, ships, road performance computing and artificial privacy and trust. networks and supply chains. intelligence systems. — how to monitor the safety of complex Driving the research and collaboration engineering systems, such as aircraft These co-design insights are applied in will be Mark Briers, appointed as Strategic engines and vehicle electrical systems, a project on natural language processing, Programme Director for defence and to anticipate malfunctions and avoid to accelerate the recurrent neural networks. security at the Institute in March 2017. high-impact safety failures. Projects are also developing in the life — how to use data-driven techniques sciences, for example to apply machine to design systems for optimal longevity, learning techniques for applications in performance and safety. digital pathology, thus enabling new advances in diagnostic medicine. A team of seven academics have been appointed as Group Leaders to drive As well as conducting research, research projects in these challenges, the partnership is also looking to help and industry collaborations are already train a new generation of data scientists underway with Siemens, Shell, National through the Institute’s doctoral programme, Grid, Thames Water and many others. ensuring students are equipped with the latest data science techniques, tools and methodologies.
Data-centric engineering will greatly It has been fantastic working with Collaborating with leading experts As the first financial sector partner for enhance our ability to understand The Alan Turing Institute to scale data from diverse academic and industrial the Institute, we are excited about the and improve the safety of engineered science solutions in major computing backgrounds is the key to solving the prospect of working with the Institute’s systems. Analytics will create value from environments, and we look forward difficult data science challenges that world leading scientists using big data a wide range of data, informing not only to building on the exciting research the UK’s defence and security analytics to better understand asset and machine performance but programme already underway. agencies face. economic trends. linking these to the physical, economic, social, and human environments in Together, we aim to shape the future The Defence and Security Research Though early days, we have discussed which they sit. of computation for data science. Programme at The Alan Turing Institute the potential of research into a range will play a key part in delivering the next of issues, from the effect of the rise The future value of big data will only Karl Solchenbach/ Intel’s Director generation of data science technologies of the gig economy through to analysing be realised if there is organisational for Data Center Pathfinding Europe based on advances in computer science, factors impacting trade corridors and and cultural change, accompanied machine learning and mathematics. how quickly business and government by appropriate analytical tools, skills needs to adapt to changes. and practices. Such change requires GCHQ/ Director General leadership, and we look forward to of Technology Douglas Flint/ HSBC Chairman working with Mark Girolami and The Alan Turing Institute in developing the first generation of ‘data-centric engineers’.
Ruth Boumphrey/ Director of Research at Lloyd’s Register Foundation
34 The Alan Turing Institute Annual report 2016–17/ Our year 35 Partnerships and collaborations Microsoft Data study groups Winton Labs In October 2016 the Institute was awarded In December 2016, the Institute hosted In December 2017, the Institute British Library $5 million worth of Microsoft Azure cloud a successful data study group, funded collaborated with Winton, a data-driven Over the past year the Institute has been computing credits to support its research by the Lloyd’s Register Foundation with the global investment firm, to offer expert working with the British Library to explore into data science. support of six industry partners — Airbus, advice to five AI or data science start- how to use data science to manage the National Grid, Siemens, Shell, Sygenta ups taking part in the Winton Labs Library’s vast digital assets, and open The collaboration with Microsoft has meant and Tata Steel. accelerator programme. up access to its collections. that Turing researchers can undertake more ambitious, large-scale data analytics During the event, 65 researchers from Throughout the programme Faculty Early projects in development include: and machine learning quickly and easily 12 universities applied their knowledge Fellows acted as mentors for the five data-driven libraries, blending digital using the Azure cloud platform. to real-world data science problems and companies, offering technical advice humanities and computational social industry data sets provided by the partners. building on their own academic and science, and heritage data. Institute Through the collaboration with Microsoft, industry experience and connections and British Library researchers have also the Institute is also helping to shape the The challenges included how to predict in the field. been working together to develop web future of cloud computing capabilities, oil and water flow through pipelines using archives as research resources. helping to test its limits and learn the acoustic signals (Shell), determining the Since the completion of the project, kind of resources data scientists need. fuel gas value for an industrial gas turbine Winton Labs recorded marked growth (Siemens) and real time balancing of for each of the five companies — including Kenji Takeda, Director of the Azure for electricity transmission and distribution attracting new business and making Research programme at Microsoft, has networks (National Grid). The results of international trading connections. been embedded in the Turing to develop the data study group work will be used collaborative research opportunities by the companies to inform how they and assist with Azure training for run their business. researchers and students. Industry participants in the 2016 data study group including National Grid, Shell and Siemens have all gone on to supply data science problems for the Turing’s 2017 summer internship scheme. Three further data study groups are planned for 2017.
The bold, cloud-first approach at the Turing is helping to inform both UK and international policy-makers and funding agencies on how cloud computing can transform research around the world.
Key projects in social science, computer vision and machine translation are now benefiting from access to cloud computing infrastructure and we are looking forward to an exhilarating year ahead as we continue to ramp up our collaboration.
Kenji Takeda/ Director of Azure for Research at Microsoft
36 The Alan Turing Institute Annual report 2016–17/ Our year 37 The data study group is a fantastic way to tackle problems together through training and exchanging knowledge and information, and a great way to build connections in the community.
Iris Fermin/ Participant in the data study group from Tata Steel
38 The Alan Turing Institute Annual report 2016–17/ Our year 39 Office for National Statistics In the coming year joint work with the In December 2016 the Institute signed ONS will focus initially on using new an agreement to work with the Office forms of data to understand the economy, for National Statistics (ONS). building on the Institute’s partnership with HSBC and further developing Leaders of The agreement, which is an important the use of social media data to improve part of the Institute’s growing commitment survey-based analyses of the movement to developing data science capacity of people. across the public sector, aims to develop joint research in data science, work the future collaboratively and share knowledge and resources between the organisations.
The agreement was kick-started through a scoping workshop held in January 2017, which brought data scientists from the newly-launched ONS Data Science Campus and Faculty Fellows together to scope shared research interests and potential areas for collaboration.
The UK's National Statistician, John Pullinger, delivering a Turing Lecture in December 2016.
40 The Alan Turing Institute Annual report 2016–17/ Our year 41 The Institute has a crucial role to play Doctoral scheme Turing doctoral students Turing enrichment students in ensuring the UK has the right skills The Institute’s doctoral scheme was The calibre of recruits and range of projects 23 students are taking part in an to meet the demands of our data- launched in 2016 with a call for students among the Turing’s inaugural doctoral enrichment year at The Alan Turing driven economy. in our five founding universities to apply student cohort is impressive, with projects Institute. Typically they are two years into to undertake their PhD in subjects related looking at social media, deep learning, their PhD at a UK university, and come A significant focus for the past year has to data science at the Institute. retail analytics and cryptography. to the Turing to broaden their skills and been bringing early career researchers network, and start new collaborations. into the Institute and strengthening their As well as offering a typical 3.5-year All the students work in the interdisciplinary data science skills. studentship scheme, in an initiative unique environment in the Institute headquarters By the end of the enrichment placement, to the Turing, enrichment placements and are able to network with Fellows students will have enhanced their research were also offered. An enrichment doctoral and build relationships with other early background, broadened their experience student spends one year at the Institute career researchers, for example through and acquired new knowledge and data working on their existing PhD, but also networking events with PhD students science skills. engages in training activities to enhance at the British Library and the Francis their data science skills and capitalise on Crick Institute. the opportunity to build new collaborations.
The demand for places in the Turing’s first academic year was exceptional, with more than 250 students from around the world applying to study with us.
From an impressive set of applicants, researchers selected 37 students — 14 doctoral and 23 enrichment — each supervised by a researcher from one of our five founding universities.
Chanuki Seresinhe/ As a researcher working on the ethics It has been fantastic to be based Turing enrichment student and politics of data science, I always at The Alan Turing Institute this year, talk about the need for more multi- which will make it very difficult to leave disciplinary research. The Turing when the year ends. What makes being embodies that. The lectures, informal here special is having ready access talks, seminars, masterclasses, and to many bright minds, being able to have many cups of coffee provide unique stimulating conversations over lunch, moments for researchers, from and having someone at hand to talk different fields, to come together over any tricky problem that needs and collectively shape the field of data solving. I am thrilled to be involved science, in a way that is mindful of the at the beginning of something I believe ethical conundrums of our information is going to have a positive impact society and conducive to innovation. on our society. Being a doctoral student here enriches my PhD experience tremendously. Chanuki Seresinhe/ Turing enrichment student Corinne Cath/ Turing doctoral student
42 The Alan Turing Institute Annual report 2016–17/ Our year 43 The enrichment scheme at the Turing has been intellectually refreshing and stimulating. While I find the daily interaction with Turing researchers the most valuable experience, I have also greatly benefited from weekly reading groups, seminars, masterclasses and meet-ups. The Turing space has been designed to be collaborative and everyone is approachable and keen to talk about their research. There is always an opportunity to find someone to collaborate with in terms of learning about a new topic or tackling a new research question.
Rodrigo Mendoza-Smith/ Turing enrichment student
Rodrigo Mendoza-Smith/ Turing enrichment student
44 The Alan Turing Institute Annual report 2016–17/ Our year 45 46 The Alan Turing Institute Annual report 2016–17/ Our year 47 An estimated 1.2 million new technical and digitally skilled people are needed by 2022 to satisfy future skills needs.
Government Digital Strategy 2017
48 The Alan Turing Institute Annual report 2016–17/ Our year 49 Data science masterclasses Internships Data science is an emerging new In the summer of 2016, the Institute academic discipline, requiring early was home to 12 doctoral students taking career researchers to have a sound part in a summer internship programme. understanding of many different skills. Shaping the Working across five projects ranging In order to address the breadth of skills from comparing brain scan data to required in data science, in Autumn 2016 analysing the results of a major citizen the Institute launched its data science science project, the interns spent eight masterclasses: a series of talks given weeks working intensively at the Institute, public conversation by researchers from our five founding enabling them to network with Faculty universities and experts in other partner Fellows and gain valuable experience organisations, designed to give Turing of working with industry datasets. doctoral students the essential building blocks for their first year as data scientists In one project the interns analysed the and to enhance the existing skills of data from over 9,000 UK participants in enrichment students. Over the course of the ‘Cloudy with a chance of pain’ project, 26 masterclasses delivered in the Institute’s who entered their daily symptoms into first academic year, doctoral students have a smartphone app which linked up with been taught core skills in programming, hourly weather data from the Met Office. statistics and machine learning modelling, as well as classes in ethics and privacy The data analysis undertaken by the and entrepreneurship. Turing interns contributed to scientific findings indicating a link between weather In order to share this valuable content conditions — specifically rain and lack more widely, the masterclasses are live of sunshine — and chronic pain. streamed on YouTube and are hosted online as a learning tool for the wider In June 2017, 21 students from data science community. universities across the UK will join the summer internship programme to work To date the videos have been watched on nine industry-led challenges from more than 3,700 times. major global companies including Shell, Siemens and National Grid.
Cloudy finished with 13,256 participants and over five million symptoms. Without our exceptionally hard working interns we wouldn’t even have started to understand this complex dataset, and their analysis continues to be very valuable as the project advances.
Katie Druce/ from the University of Manchester, who worked on the project at The Alan Turing Institute in Summer 2016.
50 The Alan Turing Institute Annual report 2016–17/ Our year 51 We are at the same place that biology was post Crick, Watson and Franklin. This is a new science that is going to shape the world that we see, able to create new services, discoveries, potentialities.
Anthony Finkelstein/ Chief Scientific Advisor for National Security to HM Government
52 The Alan Turing Institute Annual report 2016–17/ Our year 53 Data science is an emerging new discipline Turing Lectures already having a major impact on society, In 2016/17 the Institute hosted 13 economy, science and our way of life. Turing Lectures, in which an invited expert speaker from academia, industry or third An essential part of the Institute’s role sector presented the big issues, trends is leading the public conversation around and problems in their area of data science. data science, bringing together the best minds to ask the hardest questions and The events regularly attract an audience providing a platform for debate, discussion of 150-200 attendees and are live-streamed and new ideas. to audiences around the world.
Between September 2016 and January What is data science? 2017 Turing Lectures were themed around To coincide with the launch of the Institute‘s data science in government, featuring first academic year in October 2016, speakers ranging from Sir Mark Walport we created a short film asking Turing on AI and public services, Dame Julia researchers from different disciplines — Slingo on big data and the Met Office, including software engineers, statisticians, Chief Scientific Advisor Philip Blythe on social scientists, mathematicians and transport data and Chief Scientific Advisor machine learners — plus partners including Anthony Finkelstein on data science HSBC, to define ‘data science’ for and national security. a public audience. In summer 2016 we hosted two visiting The resulting film has been viewed more Turing lecturers; Ralf Herbrich who than 2,500 times and is a valuable tool presented an overview of real-world to introduce the concept of data science problems at Amazon and Andrea Bertozzi to a public audience. from UCLA, paired with Faculty Fellow Mark Girolami, who delivered lectures on the intersection of mathematics, statistics and computation.
The final Turing Lecture in the 2016/17 period was given by DeepMind scientist Thore Graepel, who delivered a talk on multi-agent learning in artificial intelligence to a sell-out audience of more than Turing lecturers Thore 250 attendees. Graepal (Deepmind) and Mihaela van der Schaar (Faculty Fellow).
Data debates James Geddes/ In collaboration with the British Library, Research Software Engineer, in the 'What the Arts and Humanities Research Council is data science?' film. and the Economic and Social Research Council, the Institute has developed a series of ‘data debate’ events which aim to de-mystify the complex technologies and algorithms which drive many of our day-to-day interactions for a public- facing audience.
The first data debate featured Faculty Fellow Helen Margetts taking part in a panel debate on the use of social media in industry and society.
Two further data debates are planned for 2017/18.
54 The Alan Turing Institute Annual report 2016–17/ Our year 55 Total number of events Over 5,000 people have come through our door forlectures,workshops and seminars in the past 120 year and our talks have been viewed more than 38,000 times online. Attended 5,147
Event Total number of events Attended
Turing Lectures 13 1,277
Workshops 46 1,955
Seminars 17 875
Other events 44 1,040
Total 120 5,147
56 The Alan Turing Institute Annual report 2016–17/ Our year 57 Workshops, seminars and events In addition to hosting research-led Over the past year the Institute hosted over workshops, the Turing has been a platform 100 workshops, seminars and other events, for frequent visiting speakers, with more reaching more than 3,800 attendees from than 15 invited speakers, often from industry our five founding universities and the wider or international, giving talks open to Turing data science community. researchers and the wider community.
Workshop highlights include a joint Highlights from 2016/17 include a talk from session with the British Heart Foundation the co-founder and chief scientist at Magic to explore opportunities for data science Pony Technology Zehan Wang, about their in cardiovascular research and a two-day artificial intelligence technology, and Nuria workshop on optimal experimental design Oliver, the first Director of Research in Data and inverse problems as applied to earth, Science at Vodafone, discussing modelling environmental, material and biomedical human behaviour from mobile data. sciences, in partnership with the Turing- Lloyd’s Register Foundation data-centric engineering programme.
58 The Alan Turing Institute Annual report 2016–17/ Our year 59 Video library The channel has over 900 subscribers, The Alan Turing Institute is committed and the Turing video library has attracted to sharing its academic expertise with more than 38,000 views, chiefly drawn the world. from the UK and US.
Since October 2016 we have live streamed The Institute continues to add an average or recorded more than 100 Turing talks via 5-10 new videos a month, and will continue our YouTube Channel, and the talks have growing this important resource for the become a growing resource for the benefit of data scientists worldwide. academic community.
YouTube video stats Top 5 videos/ by watch time Top 5 videos/ by views Top views/ by country
Total number of videos Stéphane Mallat Mark Girolami United Kingdom 1 April 2016–31 March 2017 High-dimensional learning and Probabilistic numerical 103 deep neural networks computation: a new concept? 24,665 mins 2,877 views 43%
Number of views USA Luciano Floridi Stéphane Mallat 38,551 Ethics in the age of information High-dimensional learning and deep neural networks 24,054 mins 16% Total watch time 2,769 views Germany 283,024 mins Mark Girolami Probabilistic numerical What is data science? computation: a new concept? 4.2% Number of subscribers 2,435 views 954 20,667 mins Canada Luciano Floridi Thore Graepel Ethics in the age of information People watching live 3% The role of multi-agent learning in artificial intelligence research 2,053 views 2,478 views at DeepMind France
58,188 mins 13,565 mins Sarah Meiklejohn, UCL Centrally banked cryptocurrencies 3% Mike West 1,689 views People watching later Structured dynamic graphical models 36,073 views & scaling multivariate time series 224,836 mins 9,129 mins
60 The Alan Turing Institute Annual report 2016–17/ Our year 61 Policy The Institute contributed to the Royal In the short time the Turing has been Society and British Academy project on fully operational, we have worked with data governance, which will publish its policy-makers and participated in the findings in 2017. public debate around how data affects Looking ahead our economy and society. In addition, the Institute has engaged in discussions with several government In March 2017 the publication of a paper departments and is starting to establish by Turing researchers recommending more formal joint working. In addition a stronger legal framework to manage to the strategic partnership with the algorithmic transparency in the upcoming UK defence and security sector and general data protection regulations collaboration with the Office for National provoked considerable media and Statistics, the Institute will start a joint policy interest. project with Defra in 2017 and aims to develop further joint projects with other departments over the coming year.
Sandra Wachter/ The aim of my paper was to start Research Fellow an open and public discussion about algorithmic transparency, fairness, and accountability. Following the publication, numerous conversations between policy-makers were provoked, and the Commons Science and Technology Committee launched an inquiry into the subject.
With its blend of synergies and expertise, the Turing is in a unique position to provide the interdisciplinary approach which is crucial for building responsible innovation, and this is an excellent first step to shaping the algorithmic society we want to live in.
Sandra Wachter/ Research Fellow and lead author of the paper Why a right to explanation of automated decision-making does not exist in the general data protection regulation
62 The Alan Turing Institute Annual report 2016–17/ Our year 63 The Institute’s first year has left us in an exceptional place to move forward. The next phase is to innovate and to grow.
Alan Wilson/ Institute CEO
64 The Alan Turing Institute Annual report 2016–17/ Our year 65 2017/18 will be a pivotal year The Turing research community We will develop our contribution for the Institute. will work together to refine our to building data science skills for the broad strategic priority areas into UK and enhance our doctoral scheme In June 2017 we will host the scientific challenges: exemplars to ensure the next generation of data first visit of our Scientific Advisory of how the Institute will tackle science leaders meets the needs Board, which will help us to shape big problems in society, economy, of the UK’s industrial ambitions. our research programme and test the world we live in. our ambitions against a group The Institute’s first year has left us in of international experts. We will add new research themes, an exceptional place to move forward. assessing where our data science The next phase is to innovate and to In early 2018 we will have the first could have the most impact on the grow. We look forward to rising to opportunity to present how we have economy, society and the world the challenge. met the benefits outlined in the we live in based on national need. Institute’s original brief back to our Alan Wilson/ government funders, the Engineering Recognising our role as a national Institute CEO and Physical Sciences Research institute, we will develop plans Council, at the mid-way point through to enable more universities to join our initial funding period. the Institute’s network. In response to the strong demand from industry to work with us, we will also devise new ways in which companies can access Turing talent and resources.
66 The Alan Turing Institute Annual report 2016–17/ Our year 67 Part 02 Trustees’ and strategic report
68 The Alan Turing Institute Annual report 2016–17/ Our year 69 Legal and administrative information Key management personnel Structure, governance and management The Trustees present their annual The Charity is registered and is a Company Limited by Guarantee Alan Wilson Our legal structure report together with the consolidated governed by its Articles of Association Chief Executive Officer The Alan Turing Institute was founded dated 26 March 2015. in March 2015 as a registered charity financial statements for the charity Jonathan Atkins (1162533) and Company Limited by Company Number: 09512457 Chief Operating Officer Guarantee (09512457). and its subsidiary for the year ended Charity Number: 1162533 Andrew Blake The Institute is governed by its Articles 31 March 2017. Research Director of Association that were adopted on incorporation on 26 March 2015. The Directors/Trustees Donna Brown Articles of Association establish the The subscribers/directors of the charitable Director of Academic Engagement governance of the Institute as the The financial statements comply company (the Charity) are its Trustees responsibility of the Board of Trustees for the purposes of charitable law and Ian Carter who are Directors of the company with the Charities Act 2011, throughout this report are collectively Head of IT and are its Trustees for the purposes referred to as the Trustees. The Trustees of charitable law. the Companies Act 2006, and the serving during the year and since Emma Cook the year end were as follows: Head of Finance Statement of Recommended Practice Purpose of the charity and main activities Helen Davies The charitable object of the Institute, (SORP) applicable to charities preparing Trustees Head of Academic Programmes as set in its Articles of Association, is the furtherance of education for the public their accounts in accordance with Howard Covington/ Chair James Geddes benefit particularly through research, Acting Head of Research knowledge exchange and public the Financial Reporting Standard John Aston Software Engineering engagement, in the field of data science. The Institute has power to do anything applicable in the UK (FRS102) which Anthony Finkelstein Nicolas Guernion which is calculated to further its objects Resigned: 1 February 2017 Director of Partnerships or is conducive or incidental to doing so. became effective in January 2015. In particular the Institute’s ambition is to: Peter Grindrod Sophie McIvor — produce world-class research Head of Communications in the foundations of data science; Timothy Jones — have a transformative impact on the Resigned: 31 July 2016 Clare Randall way that data and algorithms are used Head of HR and Operations in the economy, in government and Richard Kenway in society; and Registered office — educate and train data scientists. Julie Maxton The British Library Appointed: 16 November 2016 96 Euston Road The Trustees confirm that they have paid London, NW1 2DB due regard to the Public Benefit Guidance Wendy Tan-White published by the Charity Commission, Appointed: 16 November 2016 including the guidance ‘public benefit: Auditors running a charity (PB2), in shaping their Pam Thomas Kingston Smith LLP aims and objectives for the year and Appointed: 5 September 2016 Chartered Accountants in planning their future activities. Devonshire House Neil Viner 60 Goswell Road London, EC1M 7AD Related parties Patrick Wolfe The Institute’s Founder Members are Appointed: 11 May 2017 Bankers the Engineering and Physical Sciences Barclays Research Council (“EPSRC”) and the Leicester Universities of Cambridge, Edinburgh, Leicestershire, LE87 2BB Oxford, University College London and Warwick. The Founder Members have Solicitors entered into a Joint Venture Agreement CMS Cameron McKenna which establishes the basis on which Nabarro Olswang LLP funding will be made available to 90 High Holborn the Institute. London, WC1V 6XX The Institute has a wholly owned subsidiary, Turing Innovations Limited (company registration number 10015591) which exists to manage trading activity. Any surplus funds generated by this subsidiary will be transferred to the Institute as gift-aid.
70 The Alan Turing Institute Annual report 2016–17/ Trustees’ and strategic report 71 Board composition and responsibilities Chief Executive Officer is responsible for setting pay is the market rate taking Additionally, Trustees are invited to Currently, to cover any shortfall in grants Charity Commission’s Statement of The Institute is governed by its Board of for appointing senior managers. The senior into account industry standards. and encouraged to attend short training and to maintain the viability of the Institute, Recommended Practice 2015 (SORP). Trustees who are also its Directors. The management team is also responsible sessions to familiarise themselves with these reserves are set at the equivalent Board of Trustees has been established for implementing the strategy and policies Scientific Advisory Board/This is an their duties as Trustees of the Institute. of 3 to 6 months of operating costs. in accordance with the terms of the Joint agreed with Trustees and reporting independent group made up of experts The most recent training session on Investment policy Venture Agreement between the six on its performance to the Board. in academia, industry and government Trustees duties was led by Olswang As of 31 March 2017, the general The investment policy is, at this stage, Founder Members (“Founder”), dated drawn from organisations around the world. LLP and took place on 26 November 2016. unrestricted funds amounted to £5.5m. confined to the management of short term 30 March 2015. This group provides strategic advice to The session covered the following areas The Engineering and Physical Sciences liquid funds. The investment principle is Committees the Institute’s Board of Trustees and the of Trustees duties: Research Council (EPSRC) has awarded to achieve the secure investment of excess The Board composition is determined The Institute is supported by a range Chief Executive Officer on its scientific — Trustees duties arising under company a grant of £42 million to enable the Institute cash resources of a short-term nature. as follows: of committees, whose members include research programme. law as Directors of the Institute to carry out its charitable objectives. This — each Founder may appoint one Trustee Trustees, the Chief Executive Officer, — compliance with the Institute’s grant is split between operating resource Assets are protected by investing with — founders may, by a unanimous representatives from the Founder Members Strategic Partners Board/ This group Articles of Association of £22 million and capital of £20 million. approved counterparties. Investments decision, select and appoint an and other individuals with appropriate advises the Board of Trustees on the — directors conduct duties The grant may not be used for any other are risk averse and non-speculative, and independent Trustee who acts as expertise. The following committees content and translation of research — conflicts of interests purpose without the prior written consent the Institute places no income reliance Chair of the Board and may from time report directly to the Board of Trustees: generated at the Institute and collaborates — the Charity Commission of EPSRC. The first drawdown notice on interest earned. to time remove and replace such across the Institute and its partners to in respect of this grant was issued independent Trustee by Audit Committee/ This committee reviews identify new opportunities. in December 2015 and the grant expires a unanimous decision of the Founders. the effectiveness of the Institute’s internal Equality and diversity on 31 March 2022. Drawdowns have Grant making policy — the appointed Trustees may appoint control framework and risk management The Trustees will set up other committees It is the Institute’s policy to provide been made in accordance with the A proposed grant making policy is due for further independent Trustees such that, process and compliance with reporting as necessary to provide assistance with equal opportunities to job applicants and agreed payment schedule through the review by the Board of Trustees, however so far as possible, the total number of requirements. It monitors the terms of their Board’s duties. employees. The Institute recognises that fiscal year. The annual budget is prepared some fundamental principles have been Trustees on the Board at any particular appointment and the work of the external everyone should be treated with respect in consultation with EPSRC and sets established and adopted by the Institute. time will be an odd number. auditors and receives and reviews audit and dignity and that a working environment out the amount of the grant to be paid — the Trustees appointed by the Founders reports. It monitors the full external audit Recruitment and appointment must be provided which is free of any form to the Institute in the next financial year, These are as follows: must always form a majority of the Board process and resulting financial statements, of Trustees of discrimination, harassment, bullying and the payment profile for that financial — the Institute will award grants that and may from time to time remove and including overseeing the terms of The Nomination Committee undertakes or victimisation. In addition, the Institute’s year, with the intention that the profiled are in line with the charitable aims replace independent Trustees. appointment of the external auditors. an open recruitment process, recommends site at the British Library provides access payments over the financial year will of the organisation. new candidates for appointment when arrangements in order to allow unrestricted accord with the Institute’s cash flow — the Institute intends to assess grants Biographies of all Trustees are available Commercial Development Board/This necessary, and ensures appropriate employment of individuals who have requirement. bi-annually to ensure compliance with at turing.ac.uk/people/leadership/ group provides assistance to the Chief recruitment and succession plans are in special access needs. the terms of the grant. Executive Officer and the Board of Trustees place for non-Founder appointed Trustees. As at 31 March 2017, the Institute holds in building engagement with industry, The Institute is committed to the effective £3.3m of restricted reserves. This is The Institute expects to assess the Organisational management and charitable foundations and individuals in On appointment, each Trustee completes implementation of this policy and will after allowance has been made in respect progress of each grant within three responsibilities of the board furtherance of the objects of the Institute. a declaration of interests form which is held not condone any form of discrimination, of future years’ commitments to current months of the end of the grant period. The Institute has a clear organisation within a register of interests and updated whether engaged by employees or researcher grant awards amounting structure, with documented lines of Nomination Committee/ This committee annually. Their related party transactions by outside third parties who interact to £4.9m. authority and responsibility for control. is responsible for all aspects of the are disclosed in greater detail at note 23 to with the organisation. Risk management appointment of new non-Founder Trustees the financial statements later in this report. Significant risks to which the Institute is The Board of Trustees are responsible to the Board of Trustees. It also has All conflicts are actively managed through Remuneration policy exposed are reported formally to the Audit for setting the aims and direction of the responsibility for monitoring boardroom early identification of potential areas of Financial review The Institute is committed to ensuring Committee and the Board of Trustees via Institute. Trustees set the strategy, diversity and makes recommendations conflict and appropriate action taken The Institute is funded through grants a proper balance between paying staff the Institute’s risk register. establish funding policies, approve the on appointments within the Audit and where necessary. from its founding members and strategic (and others who work for the Institute) annual budget and expenditure targets Remuneration Committees in consultation partnerships. Income of £15.7m has been fairly to attract and retain the best people The Institute has a formal attitude to risk and monitor actual and forecast financial with the chairs of those committees. received during the year. Expenditure for the job with the careful financial management via a framework captured results. The Trustees also develop and Trustee induction and training of £13.3m has been incurred in the year. management of our charity funds. The within the business to support the agree the overall strategy and policies Programme Committee/ This committee There is a tailored induction programme A surplus of £2.5m has been transferred Remuneration Committee oversees identification and effective management related to research, knowledge and public supports the Chief Executive Officer for new Trustees that includes a programme to reserves and will be used to fund the overall remuneration of staff and of risk across the Institute. The senior engagement, in the field of data science. in the preparation and subsequent of meetings with the Chief ExecutiveOfficer, research and Institute costs during specifically key management. management team is responsible for execution of the Institute’s scientific senior management team and other 2017/8 and beyond. managing and reporting risk in accordance Trustees meet formally as a Board with and innovation strategy, as envisaged in Trustees. New Trustees are provided with The Remuneration Committee assumes with the Institute’s risk management the senior management team six times the Joint Venture Agreement. It supports a Trustee information pack which includes The most significant event affecting the responsibilities of remuneration policy and standards. a year, plus at least one away day, and the institute with research and training initial information about the Institute and finances within the year was the launch within the Institute. Formal consideration undertake further meetings as and when programmes and reports appropriately its work, a copy of the previous year’s of the Institute’s academic year in October of remuneration matters takes place As is common in similar organisations needed. The senior management team to the Institute’s stakeholders. annual report and accounts, a copy of the with significant new grants being awarded annually, usually at the committee’s and as recent events have demonstrated, also provide Trustees with regular reports Institute’s Articles of Association, a copy to the Founder Universities to secure March/April meeting; however, they may the Institute faces many risks and on the Institute’s financial position, Remuneration Committee/ This of the Joint Venture Agreement, information the Institute’s initial community also be considered at other meetings uncertainties. For example, economic current activity, organisational news and committee advises the Board of Trustees about their powers as Trustees of the of researchers. if ad hoc issues arise during the year. The instability or political change could impact significant issues affecting the Institute. and oversees the preparation of policies Institute and a copy of the Charity committee does not have full delegated the funding of research at the Institute and procedures in respect of salaries, Commission’s guidance ‘The Essential authority to approve all matters relating or reduce the Institute’s ability to find In October 2016, the Founders gave their emoluments and conditions of service. Trustee: What you need to Know’. Reserves policy to remuneration and any recommendation additional strategic partners and/or unanimous approval to appoint an interim In line with these approved policies and The Institute reviews its reserves policy or decision must be ratified by the Board achieve financial sustainability. The Chief Executive Officer, Sir Alan Wilson. procedures, the committee approves each year, taking account of its planned prior to implementation. Institute may become the victim of the total remuneration package for the activities and the financial requirements a cyber-attack. It may not achieve its The senior management team, led by Chair of the Institute, the Chief Executive for the forthcoming period. The Trustees The Institute discloses all payments ambition of becoming a national Institute. the Chief Executive Officer is responsible Officer, the Research Director and those believe that the charity should have access to Trustees and the number of staff It may not be able to deliver its research for the day-to-day management of the senior staff reporting directly to the to reserves appropriate to the scale, with a total remuneration of £60,000 challenges effectively. Institute’s operations and activities. The Chief Executive Officer. The criterion complexity and risk profile of the Institute. and above in accordance with the
72 The Alan Turing Institute Annual report 2016–17/ Trustees’ and strategic report 73 The Board of Trustees seeks to ensure The Trustees are responsible for keeping Signatory that these risks are mitigated, so far adequate accounting records that are The Trustees’ annual report is approved as reasonably possible, by actions taken sufficient to show and explain the Institute’s by the Trustees of the charity. The strategic by the Institute’s senior management transactions, disclose with reasonable report, which forms part of the annual team. This mitigation includes prudent accuracy at any time the financial position report, is approved by the Trustees in their Part 03 financial management of the Institute of the Institute and enable them to ensure capacity as directors in company law such that it can react to changes in external that the financial statements comply with of the charity. funding in an agile, controlled manner; the Companies Act 2006. They are also robust security processes both physical responsible for safeguarding the assets and virtual; plans to engage the wider of the Institute and hence for taking Financial statements academic and public communities in reasonable steps for the prevention and the work of the Institute; and instigating detection of fraud and other irregularities. collaborative feedback that will enable The Trustees are responsible for the impact to be measured and subsequent maintenance and integrity of the corporate direction of travel to be amended and financial information included on Howard Covington/ if necessary. the Institute’s website. Legislation in Chair the UK governing the preparation and 21 June 2017 dissemination of financial statements may Trustees’ responsibilities statement differ from legislation in other jurisdictions. The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable Disclosure of information to the auditor law and regulations. The Trustees who held office at the date of approval of this Trustees’ report confirm Company law requires the Trustees that, so far as they are each aware, there to prepare financial statements for each is no relevant audit information of which financial year. Under that law the Trustees the Institute’s auditor is unaware; and each have elected to prepare the financial Trustee has taken all the steps that they statements in accordance with United ought to have taken as a Trustee to make Kingdom Accounting Standards (United themselves aware of any relevant information Kingdom Generally Accepted Accounting and to establish that the Institute’s auditor Practice, GAAP) including FRS 102 ‘The is aware of that information. Financial Reporting Standard Applicable in the UK and Ireland’. Under company law Kingston Smith were appointed as auditors the Trustees must not approve the financial by the Board in March 2016 and have been statements unless they are satisfied that reappointed for another term. they give a true and fair view of the state of affairs of the charitable company and the result for that year.
In preparing these financial statements, the Trustees are required to: — select suitable accounting policies and then apply them consistently; — comply with applicable accounting standards, including FRS 102, subject to any material departures disclosed and explained in the financial statements; — state whether a Statement of Recommended Practice (SORP) applies and has been followed, subject to any material departures which are explained in the financial statements; — make judgements and estimates that are reasonable and prudent; — prepare the financial statements on a going concern basis unless it is inappropriate to presume that the charitable company will continue in business.
74 The Alan Turing Institute Annual report 2016–17/ Trustees’ and strategic report 75 Consolidated financial statements Scope of the audit of Matters on which we are required for the year ended 31 March 2017. the financial statements to report by exception An audit involves obtaining evidence In the light of the knowledge and The Charity is registered and is about the amounts and disclosures in the understanding of the company and its a company limited by guarantee financial statements sufficient to give environment obtained in the course of governed by its Articles of Association reasonable assurance that the financial the audit, we have not identified material dated 26 March 2015. statements are free from material misstatements in the strategic report misstatement, whether caused by fraud or the Trustees’ annual report. Company Number: 09512457 or error. This includes an assessment Charity Number: 1162533 of: whether the accounting policies are We have nothing to report in respect appropriate to the charitable company’s of the following matters where the We have audited the financial statements circumstances and have been consistently Companies Act 2006 requires us to of The Alan Turing Institute for the year applied and adequately disclosed; the report to you if, in our opinion: ended 31 March 2017 which comprise reasonableness of significant accounting — adequate accounting records have the Group Statement of Financial estimates made by the Trustees; and not been kept or returns adequate Activities, the Group Summary Income the overall presentation of the financial for our audit have not been received and Expenditure Account, the Group and statements. In addition we read all the from branches not visited by us; or Parent Charitable Company Balance Sheet, financial and non-financial information — the financial statements are not the Group Statement of Cash Flows and in the Trustees’ annual report to identify in agreement with the accounting the related notes. The financial reporting material inconsistencies with the audited records and returns; or framework that has been applied in their financial statements and to identify any — certain disclosures of Trustees' preparation is applicable law and United information that is apparently materially remunerations specified by law Kingdom Accounting Standards (United incorrect based on, or materially are not made; or Kingdom Generally Accepted Accounting inconsistent with, the knowledge acquired — we have not received all the Practice) including FRS 102 ‘The Financial by us in the course of performing the audit. information and explanations Reporting Standard Applicable in the If we become aware ofany apparent material we require for our audit. UK and Ireland’. misstatements or inconsistencies we consider the implications for our report. This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 Part 16 of Opinion on the financial statements the Companies Act 2006. Our audit work In our opinion the financial statements: has been undertaken so that we might — give a true and fair view of the state state to the charitable company’s members of the group’s and the parent charitable Shivani Kothari/ those matters we are required to state to company’s affairs as at 31 March 2017 for and on behalf of them in an auditor’s report and for no other and of the group’s incoming resources Kingston Smith LLP purpose. To the fullest extent permitted and application of resources, including Statutory Auditor by law, we do not accept or assume its income and expenditure, for the 21 June 2017 responsibility to any party other than year then ended; the charitable company and charitable — have been properly prepared company’s members as a body, for our in accordance with United Kingdom Devonshire House audit work, for this report, or for the Generally Accepted Accounting 60 Goswell Road opinions we have formed. Practice applicable to Smaller London, EC1M 7AD Entities; and — have been properly prepared Respective responsibilities in accordance with the requirements of Trustees and auditors of the Companies Act 2006. As explained more fully in the Trustees’ responsibilities statement (set out on page 74) the Trustees (who are also the directors Opinion on other matters prescribed of the charitable company for the purposes by the Companies Act of company law) are responsible for the In our opinion, based on the work preparation of the financial statements undertaken in the course of the audit: and for being satisfied that they give a true — the information given in the strategic and fair view. Our responsibility is to audit report and the Trustees’ annual report and express an opinion on the financial for the financial year for which the statements in accordance with applicable financial statements are prepared law and International Standards on is consistent with the financial Auditing (UK and Ireland). Those standards statements; and require us to comply with the Auditing — the strategic report and the Trustees’ Practices Board’s (APB’s) Ethical annual report have been prepared Standards for Auditors. in accordance with applicable legal requirements.
76 The Alan Turing Institute Annual report 2016–17/ Financial statements 77 The Alan Turing Institute The Alan Turing Institute Consolidated statement of financial activities Consolidated statement of financial activities (incorporating an income and expenditure account) (incorporating an income and expenditure account) For the year ended 31 March 2017 For the year ended 31 March 2017
2017 2017 2017 2016 2017 2017 2017 2016 Unrestricted Restricted Total Total Unrestricted Restricted Total Total Note Note funds funds funds funds funds funds funds funds £ £ £ £ £ £ £ £
Income and endowments Expenditure
Donations 2 0 242,562 242,562 86,414 Raising funds 4 172,140 0 172,140 22,402
Investment income Charitable activities 4,686 0 4,686 734 5 4,210,854 8,886,738 13,097,592 1,363,587 Gross interest Education and research
Charitable income 3 8,000,000 7,500,000 15,500,000 7,638,931 Total expenditure 4,382,994 8,886,738 13,269,732 1,385,989 Grant income
Net income/(expenditure) Total income 8,004,686 7,742,562 15,747,248 7,726,079 8 3,621,692 (1,144,176) 2,477,516 6,340,090 for the year before transfers
Transfers between funds 21a 859,000 (859,000) 0 0
Net movement in funds 4,480,692 (2,003,176) 2,477,516 6,340,090
Reconciliation of funds Balance brought forward 1,023,572 5,316,518 6,340,090 0 at 1 April 2016
Balance carried forward 20 5,504,264 3,313,342 8,817,606 6,340,090 at 31 March 2017
78 The Alan Turing Institute Annual report 2016–17/ Financial statements 79 The Alan Turing Institute The Alan Turing Institute Balance sheet — Group and charity Balance sheet — Group and charity At 31 March 2017 At 31 March 2017
Group Group Charity Charity Group Group Charity Charity Note 2017 2016 2017 2016 Note 2017 2016 2017 2016 £ £ £ £ £ £ £ £
Funds Fixed assets
Restricted funds 21 3,313,342 5,316,518 3,147,246 5,316,518 Tangible assets 13 & 14 1,969,660 154,441 1,830,806 154,441 Unrestricted funds 20 5,504,264 1,023,572 5,504,264 1,023,572 — general funds Intangible assets 15 27,242 0 0 0
Total funds 20 8,817,606 6,340,090 8,651,510 6,340,090 Investments 16 0 0 1 1
1,996,902 154,441 1,830,807 154,442 The financial statements of The Alan Turing Institute were approved and authorised for issue by the Board of Trustees on 21 June 2017 and signed on its behalf by: Current assets
Debtors 17 755,621 73,783 589,524 73,783
Cash at bank and in hand 14,101,962 6,447,021 14,101,962 6,447,021
14,857,583 6,520,804 14,691,486 6,520,804 Howard Covington/ Chair 21 June 2017
Creditors Amounts falling due 18 (3,123,982) (335,155) (2,957,886) (335,156) The Alan Turing Institute within more one year Company number — 09512457
Net current assets 11,733,601 6,185,649 11,733,600 6,185,648 The notes on pages 83 to 105 form part of these financial statements.
Creditors Amounts falling due 19 (4,912,897) 0 (4,912,897) 0 in more than one year
Net assets 8,817,606 6,340,090 8,651,510 6,340,090
80 The Alan Turing Institute Annual report 2016–17/ Financial statements 81 The Alan Turing Institute The Alan Turing Institute Consolidated statement of cash flows Notes to the financial statements For the year ended 31 March 2017 For the year ended 31 March 2017
1/ Accounting policies Group financial statements A summary of the principal accounting These financial statements consolidate policies adopted, judgements and the results of the Charity and Turing key sources of estimation uncertainty, Innovations Limited, its wholly owned 2017 2016 is set out below. trading subsidiary on a line by line basis. £ £ A separate Statement of Financial Activities and Income and Expenditure Account Basis of preparation are not presented for the Charity itself Cash flows from The financial statements have been as the Charity has taken advantage operating activities prepared in accordance with the Financial of the exemptions afforded by section Reporting Standard applicable in the 408 of the Companies Act 2006. The UK and Republic of Ireland (FRS 102). net income of the charity was £2,311,420 Net income for the year 2,477,516 6,340,090 The Charitable Company and its subsidiary (2016: £6,340,090). is a public benefit group for the purposes Adjustments for: of FRS 102 and therefore the Charity also prepared its financial statements Income Depreciation of tangible fixed assets 273,082 2,381 in accordance with the Statement All income is recognised when there Interest received (4,686) (734) of Recommended Practice applicable is entitlement to the funds, the receipt to charities preparing their accounts is probable and the amount can be Increase in debtors (681,838) (73,783) in accordance with the Financial measured reliably. Reporting Standard applicable in the Increase in creditors 7,701,724 335,155 UK and Republic of Ireland (The FRS Donations and grants, including grants 102 Charities SORP), the Companies Act in respect of major items of refurbishment, Net cash generated 2006 under the provision of the Large improvements or the purchase of fixed 9,765,798 6,603,110 by operating activities and Medium-sized Companies and Groups assets are recognised in the Statement (Accounts and Reports) Regulations 2008 of Financial Activities when receivable. (SI 2008/410) and the Charities Act 2011. Where income is received in advance of meeting any performance-related Cash flows from The financial statements are prepared conditions there is not unconditional investing activities in sterling, which is the functional currency entitlement to the income and of the charity. Monetary amounts in these its recognition is deferred and included Purchase of tangible fixed assets (2,088,301) (162,222) financial statements are rounded to the in creditors as deferred income until nearest pound. the performance-related conditions are met. Purchase of intangible fixed assets (27,242) 0 Going concern The Trustees have assessed whether the Expenditure Proceeds from sale of fixed assets 0 5,399 use of going concern basis is appropriate Expenditure is included in the Statement and have considered possible events of Financial Activities on an accruals basis, or conditions that might cast significant inclusive of any VAT which cannot Interest received 4,686 734 doubt on the ability of the charitable be recovered. Expenditure is recognised company to continue as a going concern. once there is a legal or constructive Net cash from (2,110,857) (156,089) The Trustees have made this assessment obligation to transfer economic benefit investing activities for a period of at least one year from the to a third party, it is probable that date of the approval of these financial a transfer of economic benefits will be statements. In particular, the Trustees required in settlement and the amount have considered the charitable company’s of the obligation can be measured reliably. forecasts and projections and have taken Change in cash and cash 7,654,941 6,447,021 account of pressures on income. After Grants payable are payments made equivalents in the year making enquiries, the Trustees have to third parties in the furtherance Cash and cash equivalents concluded that there is a reasonable of the charitable objects of the Charity. 6,447,021 0 at beginning of year expectation that the charitable company Unconditional grant offers are accrued has adequate resources to continue once the recipient has been notified Cash and cash equivalents in operational existence for the foreseeable of the grant award and its payment 14,101,962 6,447,021 at end of the year future. The charitable company therefore is probable. Grant awards that are subject continues to adopt the going concern to the recipient fulfilling performance basis in preparing its financial statements. or other conditions are accrued when the recipient has been notified of the grant and either the performance condition is met or any remaining unfulfilled condition attaching to the grant is outside of the control of the Charity.
82 The Alan Turing Institute Annual report 2016–17/ Financial statements 83 (i) Useful economic lives: the annual depreciation Cost of raising funds Cash and cash equivalents charge for property, plant and equipment is sensitive The costs of raising funds consist of direct Cash and cash equivalents include cash to change in the estimated costs of raising funds and an apportionment in hand, deposits held at call with banks, useful economic lives and residual value of assets. of overhead, support and governance costs. other short-term liquid investments with These are reassessed annually and amended original maturities of three months were necessary to reflect or less. current circumstances. Cost of charitable activities Costs of charitable activities include costs directly associated with research activities Financial instruments and an apportionment of overhead, support Basic financial instruments are measured and governance costs. at amortised cost other than investments which are measured at fair value.
Gifts in kind Where goods are provided to the charity Employee benefits as a donation that would normally be The costs of short-term employee purchased from suppliers this contribution benefits are recognised as a liability is included in the financial statements as and an expense. an estimate based on the value of the contribution to the charity. Critical accounting estimates and areas of judgement Tangible fixed assets and depreciation In preparing financial statements it is Depreciation of tangible fixed assets is necessary to make certain judgements, calculated to write off their cost or valuation estimates and assumptions that affect less any residual value over their useful the amounts recognised in the economic lives (i) as follows: financial statements. — leasehold land and buildings/ term of lease — fixtures, fittings and fittings/ 5 years — IT equipment/ 3 to 5 years
Tangible fixed assets costing more than £1,000 are capitalised.
Intangible fixed assets and amortisation Amortisation of intangible fixed assets is calculated to write off their cost or valuation less any residual value over their useful economic lives (i) as follows: — software/ 3 years
Intangible fixed assets costing more than £1,000 are capitalised.
Fund accounting General unrestricted funds are those available for use at the discretion of the Trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes.
84 The Alan Turing Institute Annual report 2016–17/ Financial statements 85 The Alan Turing Institute The Alan Turing Institute Notes to the financial statements Notes to the financial statements For the year ended 31 March 2017 For the year ended 31 March 2017
2/ Donations 3/ Grants received
2017 2017 2017 2016 2017 2017 2017 2016 Unrestricted Restricted Total Total Unrestricted Restricted Total Total £ £ £ £ £ £ £ £
GCHQ 0 166,096 166,096 0 EPSRC 8,000,000 1,250,000 9,250,000 2,750,000
Intel 0 76,466 76,466 0 University of Cambridge 0 1,000,000 1,000,000 750,000
Gift in kind-rent 0 0 0 86,414 University of Edinburgh 0 1,000,000 1,000,000 750,000
0 242,562 242,562 86,414 University of Oxford 0 1,000,000 1,000,000 750,000
University College London 0 1,000,000 1,000,000 750,000 All donations received in 2016 were related to unrestricted funds. University of Warwick 0 1,000,000 1,000,000 750,000
Lloyd’s Register Foundation 0 0 0 1,000,000
HSBC 0 1,000,000 1,000,000 0
Scottish Enterprise 0 250,000 250,000 0
Intel 0 0 0 138,931
8,000,000 7,500,000 15,500,000 7,638,931
86 The Alan Turing Institute Annual report 2016–17/ Financial statements 87 The Alan Turing Institute The Alan Turing Institute Notes to the financial statements Notes to the financial statements For the year ended 31 March 2017 For the year ended 31 March 2017
3/ Grants received 3/ Grants received
2017 2016
Scottish Enterprise University of Cambridge 1% 9.8%
HSBC
6.5% University of Edinburgh University of Cambridge 9.8% 6.5%
University of Oxford University of Edinburgh 9.8% 6.5%
University College London
University of Oxford 9.8% 6.5%
University College London University of Warwick 6.5% 9.8%
University of Warwick 6.5% Lloyd’s Register Foundation 13%
Intel EPSRC 60% 2% EPSRC 36%
88 The Alan Turing Institute Annual report 2016–17/ Financial statements 89 The Alan Turing Institute The Alan Turing Institute Notes to the financial statements Notes to the financial statements For the year ended 31 March 2017 For the year ended 31 March 2017
4/ Cost of raising funds 2016 £
2017 2016 £ £ Grants Other Support costs Total payable direct costs Note 6
Marketing costs 172,140 22,402 Research 0 0 0 0
172,140 22,402 Workshops 0 175,458 1,177,268 1,352,726
Other 0 10,861 0 10,861
5/ Cost of charitable activities 0 186,319 1,177,268 1,363,587
2017 £ Analysis of grants payable 2017 2016 Analysis of institutions £ £ receiving grants Grants payable Other Support costs Total See opposite direct costs Note 6 University of Cambridge 1,254,081 0
Research 6,602,028 1,650,026 4,709,242 12,961,296 University of Edinburgh 1,145,575 0
Workshops 0 136,296 0 136,296 University of Oxford 1,574,471 0
Other 0 0 0 0 University College London 1,429,305 0
6,602,028 1,786,322 4,709,242 13,097,592 University of Warwick 1,198,596 0
For the purposes of these statements, support costs include 6,602,028 0 all costs associated with the administration of the grants.
90 The Alan Turing Institute Annual report 2016–17/ Financial statements 91 The Alan Turing Institute The Alan Turing Institute Notes to the financial statements Notes to the financial statements For the year ended 31 March 2017 For the year ended 31 March 2017
6/ Support costs 7/ Governance costs
2017 2016 2017 2016
£ £ £ £
Travel and subsistence 61,182 35,451 Auditor’s remuneration
Office costs 56,662 10,760 Audit of the financial statements 12,600 10,740
Rent, rates and service charge 907,768 86,414 Other services 3,338 7,440
Repairs and maintenance 25,703 0 Legal and professional fees 101,675 0
Subscriptions 5,499 0 117,613 18,180
Staff costs 2,661,393 715,514
Staff training and entertainment 16,812 6,686 8/ Net income/expenditure
Recruitment 171,472 25,104
Telecommunications 55,970 19,783 Net income is stated 2017 2016 after charging £ £ Computer running costs 116,418 65,144
Depreciation 273,082 2,381 Legal fees 151,370 66,154
Operating lease rentals 633,258 0 Other professional fees 47,865 34,205
Auditor’s remuneration 15,938 18,180 Consultancy 58,118 21,625
Events 127,186 64,462
Depreciation 105,243 0
Insurance 8,882 0
Marketing 32,481 0
Foreign exchange (gain)/loss (23,433) 0
Sundry costs 5,038 7,786
Governance costs (see note 7) 117,613 18,180
4,709,242 1,177,268
92 The Alan Turing Institute Annual report 2016–17/ Financial statements 93 The Alan Turing Institute The Alan Turing Institute Notes to the financial statements Notes to the financial statements For the year ended 31 March 2017 For the year ended 31 March 2017
9/ Total staff costs 10/ Trustees’ payments Howard Covington received remuneration totalling £18,000 (2016: £15,000) during the year for the purpose of being Chair Staff expenses includes the 2017 2016 of the Charity. No other Trustee received following employee costs: £ £ any remuneration or emoluments.
Three Trustees received travelling and Wages and salaries 1,324,212 174,708 accommodation expenses during the year totalling £8,537 (2016: £6,100).
Social security costs 154,105 31,201
Other staff costs: 11/ Employees Contractors 626,636 284,033
Secondments 1,145,338 152,765 The average number of 2017 2016 Re-charged salaries 0 72,807 employees by function were: Number Number
Pension costs 77,917 0 Executive 3.5 4.5 3,328,208 715,514 HR and Finance 5.6 4
Key management personnel The total employee include those involved in benefits of the charity’s Communications and Events 4.7 2 executive decision making key management personnel and are listed on 71. was £1,123,774 (2016: £183,160). Research and Training 7.8 3
IT and Comms 1.4 1.5
Policy 0.9 0
Partnerships 1.5 0 During the year the following number of employees received emoluments 2017 2016 25.4 15 in excess of £60,000:
£70,000 – £79,999 2 0
£80,000 – £89,999 1 0
£110,000 – £119,999 0 1
£140,000 – £149,999 1 0
£220,000 – £229,999 1 0
94 The Alan Turing Institute Annual report 2016–17/ Financial statements 95 The Alan Turing Institute The Alan Turing Institute Notes to the financial statements Notes to the financial statements For the year ended 31 March 2017 For the year ended 31 March 2017
12/ Taxation 14/ Tangible fixed assets — charity The charity is entitled to certain tax exemptions on income and profits from investments and surpluses on any trading Leasehold Equipment activities carried on in furtherance of the Total Cost or valuation improvements and machinery charity’s primary objectives. £ £ £
At 1 April 2016 136,094 20,728 156,822 13/ Tangible fixed assets — group
Additions 1,393,798 555,649 1,949,447
Leasehold Equipment Total At 31 March 2017 1,529,892 576,377 2,106,269 Cost or valuation improvements and machinery £ £ £
At 1 April 2016 136,094 20,728 156,822 Depreciation Additions 1,393,798 694,503 2,088,301
At 1 April 2016 0 2,381 2,381 At 31 March 2017 1,529,892 715,231 2,245,123
Charge for the year 161,438 111,64 4 273,082
At 31 March 2017 161,438 114,025 275,463 Depreciation
At 1 April 2016 0 2,381 2,381 Net book value Charge for the year 161,438 111,64 4 273,082
At 31 March 2017 1,368,454 462,352 1,830,806 At 31 March 2017 161,438 114,025 275,463
At 31 March 2016 136,094 18,347 154,441
Net book value
At 31 March 2017 1,368,454 601,206 1,969,660
At 31 March 2016 136,094 18,347 154,441
96 The Alan Turing Institute Annual report 2016–17/ Financial statements 97 The Alan Turing Institute The Alan Turing Institute Notes to the financial statements Notes to the financial statements For the year ended 31 March 2017 For the year ended 31 March 2017
15/ Intangible fixed assets — group 16/ Investments in subsidiaries
Investment Software Cost in subsidiary Cost or valuation £ £
At 1 April 2016 and 31 March 2017 1 At 1 April 2016 0
Additions 27,242 The investment represents 100% At 31 March 2017 27,242 of the share capital of Turing Innovations Ltd, a company incorporated in England & Wales, company number 10015591.
Amortisation The following is an extract of its results for the year to 31 March 2017:
At 1 April 2016 0
Charge for the year 0 2017 2016 £ £
At 31 March 2017 0 Income 166,096 0
Expenditure 0 0
Net book value Net income 166,096 0
At 31 March 2017 27,242
At 31 March 2016 0 Total assets 332,193 1
Total liabilities (166,096) 0
Net assets 166,097 1
98 The Alan Turing Institute Annual report 2016–17/ Financial statements 99 The Alan Turing Institute The Alan Turing Institute Notes to the financial statements Notes to the financial statements For the year ended 31 March 2017 For the year ended 31 March 2017
17/ Debtors 19/ Creditors: amounts falling due in more than one year
Group Group Charity Charity Group Group Charity Charity 2017 2016 2017 2016 2017 2016 2017 2016 £ £ £ £ £ £ £ £
Trade debtors 675,448 0 509,352 0 Grant creditors 4,912,897 0 4,912,897 0
Prepayments and accrued income 71,500 73,783 71,500 73,783
Other debtors 8,673 0 8,672 0
755,621 73,783 589,524 73,783
Trade Debtors above are measured at amortised cost.
18/ Creditors: amounts falling due within one year
Group Group Charity Charity 2017 2016 2017 2016 £ £ £ £
Trade creditors 359,047 198,126 192,951 198,126
Taxation and social security 70,816 22,463 70,816 22,463
Grant creditors 1,499,942 0 1,499,942 0
Accruals 1,141,546 114,566 1,141,546 114,567
Other creditors 52,631 0 52,631 0
3,123,982 335,155 2,957,886 335,156
100 The Alan Turing Institute Annual report 2016–17/ Financial statements 101 The Alan Turing Institute The Alan Turing Institute Notes to the financial statements Notes to the financial statements For the year ended 31 March 2017 For the year ended 31 March 2017
20/ Analysis of net group 21/ Restricted funds assets between funds
At Balance Income Expenditure Transfers Unrestricted Restricted Total 1 April 2016 31 March 2017 At 31 March 2017 £ £ £ £ £ £ £ £
a. EPSRC capital fund 613,906 1,250,000 (175,452) (859,000) 829,454 Tangible fixed assets 1,748,637 221,023 1,969,660 b. Research fund 3,564,384 5,000,000 (8,474,823) 0 89,561 Intangible fixed assets 0 27,242 27,242 c. Lloyd’s Register Foundation fund 999,297 0 (112,213) 0 887,084 Net current assets 3,755,627 7,977,974 11,733,601 d. HSBC fund 0 1,000,000 (14,405) 0 985,595 Long term creditors 0 (4,912,897) (4,912,897) e. Scottish Enterprise fund 0 250,000 0 0 250,000 5,504,264 3,313,342 8,817,606 f. Intel Corporation fund 138,931 76,466 (98,856) 0 116,541
g. GCHQ — Defence and security fund 0 166,096 (10,989) 0 155,107 At 31 March 2016
5,316,518 7,742,562 (8,886,738) (859,000) 3,313,342 Tangible fixed assets 154,442 0 154,442
Intangible fixed assets 0 0 0 a/ The EPSRC capital e/ The Scottish Enterprise fund was granted by the fund will support the Engineering and Physical expansion of research Sciences Research Council activities in Scotland. Net current assets 869,130 5,316,518 6,185,648 for the purposes of capital expenditure on its premises. f/ The Intel Corporations The transfer to unrestricted fund will finance data funds has been authorised science research and Long term creditors 0 0 0 by the funder to cover its application. office rent costs. g/ The GCHQ fund b/The Research fund will finance the Turing 1,023,572 5,316,518 6,340,090 represents amounts defence and security received from the charity’s research programme. university members that must be directly spent on research activities.
c/ The Lloyd’s Register Foundation fund will finance a research programme that supports data-centric engineering.
d/ The HSBC fund will finance a research programme that supports collaboration in economic data science.
102 The Alan Turing Institute Annual report 2016–17/ Financial statements 103 The Alan Turing Institute The Alan Turing Institute Notes to the financial statements Notes to the financial statements For the year ended 31 March 2017 For the year ended 31 March 2017
22/ Financial commitment 23/ Related parties The re-charged expenditure relates During the year the following transactions to staff time, administration and were undertaken with the members of workshop costs. the charity. The charitable company was committed The Group has taken exemption to making the following total payments 2017 2016 Other than the amounts noted below, under paragraph 33.1A of FRS 102 under non-cancellable operating leases £ £ as at 31 March 2017: no amounts were due or payable at from disclosing transactions with the year end. wholly owned subsidiaries consolidated in these financial statements. Payments due:
Within one year 689,617 0
Grant Grant Year Between 2 and 5 years 2,298,723 0 Re-charged expenditure income end debtor expenditure awarded received (creditor) 2,988,340 0 £ £ £ £
Engineering and Physical 0 9,250,000 71,363 0 Sciences Research Council
University of Cambridge 1,254,081 1,000,000 58,305 (27,224)
University of Edinburgh 1,145,575 1,000,000 94,484 (4,838)
University of Oxford 1,574,471 1,000,000 125,413 239,470
University College London 1,429,305 1,000,000 415,584 45
University of Warwick 1,198,596 1,000,000 102,301 0
6,602,028 14,250,000 867,450 207,453
24/ Company status The charity is a company limited by guarantee. In the event of the charity being wound up, the liability in respect of the guarantee is limited to £1 per member of the charity.
104 The Alan Turing Institute Annual report 2016–17/ Financial statements 105 Design Red&White redandwhitestudio.com
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