Annual Report 2019–2020
RSE Overview Inspire Engage Provide Expertise Promote RSE into the Future Accounts
Contents
Annual Report
5 President’s Foreword
6 Chief Executive’s Foreword
7 Aims and Objectives
8 Achievements and Performance
10 Inspire
21 Engage
27 Provide Expertise
31 Promote
35 RSE into the Future
38 RSE Prizes and Medallists 2019–2020
41 RSE New Fellows 2020
RSE Accounts
42 Corporate Governance and Management
43 Financial Review
45 Structure, Governance and Management
49 Statement of Council’s Responsibilities
50 Independent Auditor’s Report to the Council of the Royal Society of Edinburgh
52 Financial Statements
82 Legal and Administrative Information
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President’s Foreword
I am delighted to introduce the Royal Society of Edinburgh’s Annual Report for 2019/20. As Scotland’s National Academy we are here for all of Scotland and this year has seen the start of some important initiatives to raise the visibility and extend the reach of RSE in different ways. It has been an exciting year as we have delivered a wide-ranging programme in pursuit of our mission ‘knowledge made useful’, enhancing our impact and reach both nationally and internationally. Our priorities are to inspire young talent, engage the public on key contemporary issues, provide expertise to policy makers and influencers and promote Scotland’s Professor Dame Anne Glover FRS FRSE interest overseas. Through delivering to President these priorities over the past year, we have: strengthened Scotland’s research 14th September 2020 capacity and leadership; created new innovative links between research and industry; influenced public policy; raised Scotland’s profile in the world; and enabled This breadth of knowledge and expertise the public’s contribution to debates on represents a huge asset for Scotland and issues of national and global significance. I am grateful to all the Fellows who have, These achievements are possible freely and generously, contributed to the due to the diverse knowledge and RSE’s work over the course of the past year. expertise of our Fellowship, which is As you will see in the following pages, we drawn from the worlds of science, the have delivered much to be proud of over arts, business and public service. the past year, as the RSE continues to play its part in the life of the nation. We are ambitious to do more and establish the RSE firmly at the heart of modern Scotland.
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Chief Executive’s Foreword
Welcome to the 2019/20 Annual Report of the Royal Society of Edinburgh, Scotland’s National Academy. This has been an exciting year as we have sought to deliver our mission of knowledge made useful in new and different ways to better connect with a wider range of people. Our work on public engagement is central to this ambition with the past year seeing a number of firsts, including our first-ever summer programme, Curious. Running alongside the Edinburgh Fringe, Curious created new opportunities to engage with leading scientists and researchers on a range of topics covering Dr Rebekah Widdowfield FRSA everything from forensic science to Chief Executive phrenology, memory to menstruation. 14th September 2020 Visitors to our home in Edinburgh were also able to see our first touring exhibition. Featuring 26 fellows, our Women in Science in Scotland exhibition aims to raise the to individuals, society and the economy. profile of female scientists and show Firstly, an in-house survey of former that science is a career choice open to awardees highlighted the impact of these anyone from any background with multiple awards in helping develop research careers, possibilities to make a difference. A version support collaboration and leverage funding of the exhibition at Edinburgh Airport into Scotland. Secondly, an independent attracted significant positive attention, evaluation of our Enterprise Fellowships helping celebrate Scotland and its scientific programme, which supports emerging expertise; while a portable version moved entrepreneurs, highlighted the significant around the country, from Belladrum benefit the scheme has brought to the to Borders College, Glasgow Women’s economy and society, with over 200 new Library to the Scottish Seabird Centre. businesses created addressing a whole range The expertise within the Fellowship underpins of challenges from disease prevention and the RSE’s work, no more so than in our policy treatment to environmental sustainability. work. This past year, along with providing The survey of research awardees also advice papers on a breadth of issues such as demonstrated the importance of the RSE in immigration and the creation of the Scottish supporting international engagement and National Investment Bank, we concluded partnerships. The RSE is part of a family of a two-year inquiry into Scotland’s Energy national academies across the world and Future. Drawing on a range of evidence over the past year we have supported 37 and discussions, the report highlighted international meetings, helping promote the challenge of developing energy policy Scotland and its research base overseas and in the context of often-competing needs: facilitating long-term relationships between addressing climate change; ensuring Scotland and international partners. affordability; providing energy security; and Partnership and collaboration are key supporting social and economic well-being features of the RSE’s work. Over the past – the so-called energy quadrilemma. year, we have benefitted immensely from As an organisation, underpinned by evidence the input of many friends and colleagues and expertise, we are keen to understand the and I would like to conclude by thanking our impact of our work and this year saw two Fellows, funders and partner organisations important pieces of work which provided for their ongoing support in helping us deliver evidence of the difference RSE is making our mission of knowledge made useful.
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Aims and Objectives
RSE: Knowledge Made Useful The RSE, Scotland’s National Academy, was established in 1783 for ‘the advancement of learning and useful knowledge’. Our contemporary mission remains the same – the deployment of knowledge for public good: knowledge that contributes to the social and economic wellbeing of Scotland and its people and the nation’s wider contribution to the global community. We deliver on this mission through our strategic objectives and impacts to:
Inspire Engage Provide Promote Expertise
Inspire and support Engage on key Provide expertise Promote Scotland’s Scotland’s most contemporary to ensure that interests and promising young issues by providing Scotland’s policy reputation on the talent across an impartial forum makers and global stage. the research, for public debate influencers have business and public and discussion. access to the best Raise Scotland’s sectors, in order national, and indeed profile and to create value Enhance the public’s global, expertise. strengthen its for the economy contribution to connections and society. and engagement Inform and influence with the world. with contemporary public policy. Enhance research national and capacity and global scientific, leadership in cultural and Scotland. economic issues. Strengthen Scotland’s cross- sector connections and its ability to realise benefits from its research and innovation.
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Achievements and Performance
The Royal Society of Edinburgh (RSE), In this 2019–2020 Annual Report, we Scotland’s National Academy, was share examples of how we have made established in 1783 for ‘the advancement knowledge useful across Scotland of learning and useful knowledge’. Today, and internationally over the past 12 our mission remains the same – the months. You will read how we have: use of knowledge for public good. • strengthened Scotland’s research We are passionate about making sure capacity and leadership knowledge improves society’s economic • created new innovative links and social wellbeing, supports Scotland’s between research and industry people and increases our shared contribution to the wider, global community. • influenced public policy In 2020, we describe our mission as • raised Scotland’s profile in the world “knowledge made useful”. This is our core • enabled the public’s contribution driver. It shapes everything that we do. to debates on issues of national We organise our knowledge-based and global significance. work under four objectives: Our achievements are supported via core 1. Inspire and support Scotland’s funding from the Scottish Funding Council most promising young talent across (SFC). We are also underpinned by other the research, business and public sources including our own income. sectors, in order to create value The RSE’s 1,600+ Fellows volunteer their for the economy and society time and expertise across a substantial 2. Engage on key contemporary issues breadth of knowledge and experience by providing an impartial forum for from academia, business and public public debate and discussion sector, contributing between £1m and £1.5m a year in free support for the RSE’s 3. Provide expertise to ensure that public benefit activities. Their significant Scotland’s policy makers and contribution supports us in delivering its influencers have access to the best mission of “knowledge made useful”. national, and indeed global, expertise We hope you enjoy learning more on the 4. Promote Scotland’s interests and following pages, and if you’re reading this reputation on the global stage. online, clicking on links to see and hear podcasts from key speakers in the report. Thank you for sharing our passion for “knowledge made useful”!
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Lauren Leisk, RSE Unlocking Ambition Enterprise Fellow and Founder of Fodilicious; an innovative food business, providing allergen-free, vegan, FODMAP- friendly snacks.
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Inspire and Inspire
support Every year, the RSE inspires researchers and entrepreneurs. We provide support, guidance, networks and mentoring to help people reach Scotland’s their goals. We achieve this via research grants, by enabling translation of research most promising into businesses, and by supporting the Young Academy of Scotland (YAS). These three leading-edge programmes bring to life our young talent commitment to “knowledge made useful”, improving economies and livelihoods. across the The following few pages give you an overview of how we inspire talented people research, for the wider good. Please also click on the short podcasts to learn a bit more from the business and researchers and entrepreneurs themselves. RSE Research Programmes public sectors, Our competitive Research Awards Programme creates research capacity and leadership, supporting Scotland to be at the in order to forefront of new research challenges and opportunities. The variety of Fellowships, create value for Grants and Scholarships enables the RSE to mobilise Scotland’s rich research base for the economy public good at home and internationally. In 2019–2020, the RSE awarded eight Sabbatical Grants to early-career and society. researchers. These cover a breadth of subjects ensuring delivery to societal needs and science breakthroughs: • understanding anxiety in autism disorder • ultrafast imaging of the online neural control of movements • reducing the burden of multi-drug- resistant infections faced by the NHS • addressing emerging problems associated with wastewater microplastics as vectors for potent drugs • understanding and mitigating the security risks of thermal imaging • developing comprehensive risk analysis of space exploration through Monte Carlo method for detecting orbital collisions • animal agriculture in contemporary India • moving towards carbonless engines.
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Creating resilience to fire
International exchange of ideas is central to the RSE’s core mission. Those who are Impacts: in the early stages of exploration can learn face-to-face from researchers who are • the creation of a Fire Resilience more advanced. “Early-career researcher” Assessment Framework for Martina Manes, a third-year PhD student educational buildings at the University of Edinburgh, benefitted • the Framework supports Prepare, from the John Moyes Lessells Scholarship. Respond, Absorb and Recover She was able to travel to the University of from potential/actual fire incidents Queensland (UQ), Australia, to work with world-leading researchers in fire resilience. • on-going collaboration between University of Edinburgh and The RSE’s support enabled Martina to work UQ Fire Group to develop new for three months with Dr David Lange and his international breakthroughs UQ Fire Group. Dr Lange is one of the most in fire safety engineering. influential international experts in structural fire safety engineering and resilience. His team has world-leading knowledge in fire risk assessment of timber, bamboo, concrete and facades of various materials.
“As an ECR, I have strengthened the depth of my analysis, plus have created a Fire Resilience Framework that’s been applied to educational buildings. I’ve created new collaborations internationally, supervised a UQ Master’s student, and am bringing back new knowledge to Scotland. It was wonderful being part of the UQ Fire Group family, and this experience has helped me grow professionally and personally.”
Martina Manes University of Edinburgh
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Supporting art for conflict recovery
The RSE is helping Dr Oscar Odena from the University of Glasgow to work Impacts: with researchers in Mexico, Colombia and Brazil. Together they’re exploring The international team is the role of performing arts for peace developing the capacity of early- education in conflict settings. career researchers (ECRs) who are co-creating performing arts Through the RSE’s Arts and Humanities together with victims/displaced Research Network Grant, the group people in conflict settings. are now able to work together across their international borders for two years. They are looking at: Outcome: The team is developing a framework for others to use. This • how performing arts are already will help organisers and practitioners being used in conflict settings to see how to use performing arts • peoples’ stories of performing in conflict and conflict recovery. arts for peace in conflict in Colombia, Mexico and Brazil • what more could be done, based on newly-created practical learning and experiences.
First “The Arts of Inclusion” (TAI) Workshop held in Bogota, 28-29 July, 2019
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The RSE’s Personal Research Fellowships The Enterprise Fellowship Award offers a create opportunities for exceptional tailored, equity-free support package of: researchers to build their research • funding and training worth up to £90,000, careers, becoming leaders in their area. including a one-year academic salary For example, in 2019–2020, the RSE supported leading researchers to: • tailored, cutting-edge business training • shape future health programmes • mentoring from RSE’s network of by improving understanding of how partners in the business community health outcomes vary between different geographic areas • up to £10,000 business support funding • apply new knowledge on embryonic • membership of the RSE Entrepreneurs’ development to clinical infertility studies. Club, with access to networking events. The RSE is building new research, collaboration and knowledge exchange “I think the Enterprise Fellowship has in Scotland’s Arts and Humanities. In compressed a few years of learning into 2019–2020, we awarded 12 Grants, 12 Workshop Grants and seven Network just one, and massively accelerated the Grants, as well as providing further on- pace at which I’m able to grow and scale the going support for Networks that received their awards in 2018–2019. The RSE is business… The programme has delivered directly generating new understanding the most value out of anything that I have and impact from researchers’ work on: been involved with since the inception of • ending period poverty in Scotland the business. It’s been a real privilege.”
• black families’ fight for freedom in Paul McGinley the USA and Canada (1732–1936) Founder and CEO Pyramid WiFi, Enterprise Fellow 2019/20 • Scotland’s global engagement with human rights issues and how they Our impact might be embedded within Scotland’s In 2019, the RSE commissioned BiGGAR approach to foreign affairs. Economics to evaluate the Enterprise RSE Enterprise Fellowships Fellowships, who found that the Programme: Now in their 23rd year, the RSE’s Enterprise • added almost £170m to annual Fellowships have been leading the way in global gross value added (GVA), enabling science and technology researchers including £77 million in Scotland to become world-class entrepreneurs • led to the creation of more than by commercialising their research. 3,000 jobs, nearly half (1,395) Through cutting-edge business development of which are in Scotland and training, these entrepreneurs have been developing innovative new enterprises since • helped establish over 200 businesses 1997, significantly benefiting Scotland’s • delivered an impressive return economy and society. They have created on investment (ROI): for every £1 highly-skilled jobs, bringing international investment, the programme generated talent and investment to Scotland. They almost £10 for UK economy and have also provided solutions to local, £6 for Scottish economy national and global challenges in health, environment and energy. Their impact has • created more sustainable businesses: been felt not only in Scotland, but also in over 81% of Enterprise Fellows’ universities across the UK and internationally. businesses are still operating beyond five years, compared with average In 2019–2020, the RSE funded 11 Enterprise survival rate for start-ups and spin- Fellowships, hosted by ten Higher Education outs of 45% reaching their fifth year Institutions (HEIs) across the UK. These new Enterprise Fellows will be supported to • encouraged ‘serial entrepreneurs’, develop their businesses to a point where with 25% of Enterprise Fellows they can start them up or spin them out. founding more than one business.
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In the space race: shooting for the stars
Steve Greenland, Director and Founder The Enterprise Fellowship enabled Steve to: Craft Prospect Ltd. Scottish Enterprise- • accelerate the expansion funded RSE Enterprise Fellow 2019–20 of his company Host Institution: University of Strathclyde • create jobs, growing his team from Cheaper access to space - or “NewSpace” 3.5 to 12 full-time employees - is the next big frontier. Private aerospace • increase the number of partnerships, companies are developing innovative research and development technologies to create opportunities within collaborations, and paid contracts this growing, new market of engineering. • double the company’s The RSE’s Enterprise Fellowships are also turnover in 12 months. in the space race. Steve Greenland used his Fellowship opportunity to develop his space Craft Prospect was then awarded £1M in- engineering company “Craft Prospect”. kind support from the UK Space Agency. This meant Steve could provide a satellite Steve identified a niche: taking new platform to demonstrate cybersecurity and emerging technologies (such as services to major telecommunications nanosatellites, satellites with direct alerts providers, including British Telecom. and direction-controlled cameras, and/ or high-resolution imagery cameras), then delivering them into the space environment for use in missions and delivery of services from space. “I do not believe the business would be where we are without the Enterprise Fellowship support. It has allowed me to present our business proposition clearly and build a sustainable enterprise into the future.”
Steve Greenland Director and Founder Craft Prospect Ltd.
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Unlocking Ambition Enterprise Fellowships Building on the success of the Enterprise Fellowships, in 2019–2020 the RSE — with support from the Scottish Government — supported early-stage entrepreneurs across Scotland for one year, to unlock their ambition and establish new businesses with high-growth potential. The entrepreneurs succeeded in bringing benefits to Scotland’s economy, through: • forming start-up companies • developing products via market research • creating scalable business models • generating prototypes before product launch • identifying new commercial markets.
“None of the company’s achievements, or the plans we now have, would have been possible without the support provided by the RSE Unlocking Ambition Enterprise Fellowship. It has truly been game-changing.”
Thomas Farrugia CEO of Beta Bugs
Through delivering this exciting one- year programme, the RSE played its part in delivering the “Nation with Ambition” goal. In just 12 months through the scheme, we attracted individual talent and business start-ups to Scotland, helping to ensure that Scotland is a hub for world-class entrepreneurship. The Unlocking Ambition Fellows received: • £25,000–50,000 maintenance grant • up to £20,000 business support funding • tailored, cutting-edge business training • a dedicated mentor • hosting status at a Scottish University or Research Institute • free Membership of Entrepreneurial Scotland (plus business mentoring) • free Membership of Scotland House • access to the GlobalScot network and the Scottish Investment Bank • membership of the RSE’s Entrepreneurs’ Club, with access to business networking opportunities.
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Our impact The RSE’s Unlocking Ambition Fellows are improving people’s wellbeing in Scotland and internationally, including through: • a web-based physiotherapy platform for remote monitoring and delivery of personalised physiotherapy programmes for people with long- term or palliative care conditions • a digital companion to support carers of people living with dementia • insect breeding to create high- performance genetics for the insects-as- feed industry, supporting our ability to support the world’s growing population. Unlocking Ambition Fellows are also creating employment and investment for the Scottish economy. Through this fast-track programme, in one year alone, these Fellows: • employed 50+ people • secured 2,700+ customers, contracts and users • negotiated 16 investment deals • won 19 award nominations • appointed 37 new board members.
“The RSE Unlocking Ambition Enterprise Fellowship has allowed Fodilicious to grow massively over the past year. Without the support of the programme, we would not be where we are today.”
Lauren Leisk Founder and CEO of Fodilicious
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Improving quality of life for carers
Pooja Jain, Director and Founder, “Comparing where the company was CogniHealth. Unlocking Ambition Enterprise Fellow 2018–19 when I began the Unlocking Ambition Host Institution: Edinburgh Innovations Enterprise Fellowship to where we Ltd. at the University of Edinburgh are today, what we have achieved is Every three seconds, someone in the world massive! The company would not develops dementia. By 2050 the number have survived without it – both the of people with dementia is expected to exceed 130 million. There is currently expertise and financial support – we no cure for dementia; however, those would be lost without it! It helped with the disease can still live a good life. CogniHealth’s mission is to improve the grow the team; it used to be just me lives of people affected with dementia. and now we have a team of three Pooja used her Unlocking Ambition full-time employees. It also helped Enterprise Fellowship to develop her me grow personally, and gave me company and launch its app CogniCare. This is a digital companion that supports the skills required to run a business.” families and friends who are carers of Pooja Jain people with dementia, enabling them to Director and Founder, CogniHealth access the best quality of life possible. CogniCare uses machine learning to create personalised support that Impacts: reduces the financial, physical and • as a digital companion app, psychological burden of the disease. CogniCare transforms the way carers look after people with dementia at home • CogniCare provides holistic and personalised support which did not previously exist • in 12 months, CogniCare has grown its user base by five times to engage 1,000+ carers across the world, having been launched on the App store and as a skill on Amazon Alexa • the prestige of the RSE award has led to acceptance onto multiple programmes, including: RBS Accelerator; Wayra UK; University of Edinburgh AI & Blockchain Accelerator; and Nesta Healthier Lives Data Fund.
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Mentoring for confidence
A new YAS Scheme was launched in 2019– 2020 whereby YAS members mentored 15 undergraduate students, bringing great benefits to both students and mentors. The Scheme is in collaboration with the Robertson Trust, as part of the Trust’s “Journey to Success” programme for students from disadvantaged backgrounds. The mentoring relationship gives support for: • developing CVs • building confidence • thinking through future career choices • accessing a new network of contacts.
Benefits to students: “Having a mentor has really allowed me to see past the present time. It’s made me prepare and have contingencies in place. It’s allowed me to look further in terms of my career, networks and legacy and has really broadened my perspective of what I think I’ll be able to achieve while in university and afterwards.”
Dorcas Baah a third-year Law student at the University of Edinburgh
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Young Academy of Scotland (YAS) The RSE supports the Young Academy of Scotland (YAS) to drive change within Scotland and internationally. Benefits to mentors: YAS is committed to addressing social issues The experience of and informing public debate, making sure mentoring has been they listen to those who are marginalised. To support this commitment, YAS’ 120 hugely rewarding and members are diverse, aged from mid-20s to has motivated me to early 40s, coming from all areas of business, seek out more similar third sector, public life and academia. opportunities. When I To structure their work and maximise impact, YAS created and published their first met my mentee new Strategic Plan in 2019–2020. This I wasn’t sure what I contains five key “Grand Challenges”. The following three Challenges show the would have to offer, breadth of YAS’ work in the past year: as he already seemed Ending health inequalities: in collaboration very focused and with the University of Edinburgh, YAS self-motivated; I was launched a new HOPE website: “Healthy, Optimal Periods for Everyone”. This is a therefore both moved resource to educate and tackle social taboos. and humbled several It is for people who menstruate, their families, months later when, clinicians, employers and policy makers. in a presentation at Zero carbon by 2045: in preparing for climate change in Scotland’s marginalised reception for mentors communities, YAS held an international and mentees, he workshop to begin a programme of work. described how much Increasing Scotland’s positive role in the world: a joint lecture series between Cara our chats had helped Scotland (the Council for At-Risk Academics), him clarify his career YAS and the RSE has been established. plans… The mentoring The first lecture was on the topic of Human Rights during the Scottish Enlightenment. experience has given me the opportunity to share things I often take for granted — my knowledge of what’s needed to progress in academia, and my network of professional contacts — with a young person to whom these can make a real difference.”
YAS member Dr Kitty Meeks Research Fellow, Computing Science, University of Glasgow
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Disagreeing responsibly
In 2019–2020, YAS started to develop YAS members developed the Charter through: their Charter for Responsible Debate. • a first workshop to develop YAS members want to be clear about an initial version how we can disagree with each other while also creating common ground. • events to discuss and refine the charter, at: Festival of Politics; Edinburgh The YAS Charter has nine principles. Festival Fringe; and Millenifest Using the headings “Informed, Respectful and Inclusive”, the Charter: • a public consultation. • encourages people to rethink what In 2020–2021, the priority is to finalise the it means to be ‘right’ or ‘wrong’ principles and encourage the Charter’s adoption as widely as possible. • aims to build consensus among a wide group of people from different backgrounds, experiences, “It is succinct and encapsulates abilities, and knowledge. the approach that is necessary if we are to work together… We all need to sign up to the Charter and keep it in mind at all discussions and decision-making groups.”
Public consultation respondent
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Engage on key Engage
contemporary The RSE’s engagement with wider society is central to our mission of “knowledge made useful”. We achieve issues by this across Scotland through: • creating opportunities for all providing an members of the public to learn from world-leading experts in science, impartial forum economy, arts and culture • inspiring school students, particularly for public in Science, Technology, Engineering and Mathematics (STEM) subjects debate and • supporting discussion and shared learning on issues of national discussion. and international importance • providing a safe space for debate on challenging subjects. Our reach: In 2019–20, we reached community groups, families, adults and school-aged children through a mix of interactive science events, informative family days, talks and debates on important current issues, and taking part in Scottish festivals. We were “on the road” from Edinburgh to Elgin and Aberdeen to Annan, with 92% of our activities held outside Scotland’s central belt. Our expertise: the RSE’s 1,600+ Fellows come from a wide range of backgrounds. This means we can cover a broad spread of subjects, often in one event, for example: from philosophy of science to weather forecasting; and from the ancient world to the science behind Star Wars’ famous light sabres.
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Our activities with school-aged children Scotland’s children are inspired by our work in schools. We help them to see science and arts brought to life and talk first-hand with world-leading researchers. Schoolchildren see new career possibilities that they may not have previously considered as being “for them”. In 2019–2020, we were busy: • in schools across Dumfries and Galloway, including Glenluce, Castle Douglas, Moffat, Canonbie and Annan, as part of our RSE @ The Holywood Trust School Talks • at Festivals, including Inverness Science Festival, an annual festival organised by the University of Highlands and Islands • delivering weekend science masterclasses to 200 young people at the universities of Aberdeen, Dundee and Glasgow. Our activities with the wider public We bring the public closer to science, research and expert knowledge on key contemporary issues. People mix with RSE Fellows through a variety of events across Scotland, including: • a Fascinating Futures family day • a ‘Bella Boffinarium’ science area in the Belladrum family music and arts festival • an Edinburgh Science Festival discussion panel on “Being a Woman in Science: Changed Times?”, plus activities to inspire girls and young women.
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2019–2020 RSE public engagement in figures:
Schools: 3,000+ school -aged children
47 school talks across Scotland
Public: 73 interactive activities 9,000 people, including: 589 for Doors Open Day at RSE in Edinburgh
800 for a two- day programme at Belladrum family music and arts festival
1,400 at our Curious summer programme
69%
69% of those that joined our public engagement activities told us they want to engage further or know more about the RSE
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Being
In August 2019, the RSE launched its own unique summer events programme: Curious, joining in with Edinburgh’s Festival buzz. We hosted an exciting, energy-filled mix of performances, workshops, exhibits and talks. Number of Number of Number of events: 77 speakers: 34 people who RSE Fellows were joined by specialist input (19 female / came to from: Edinburgh Skeptics; Edinburgh College; 15 male) events: 1,369 and The Royal Conservatoire of Scotland. People of all ages were enticed into the RSE’s building with a wide range of topics including: Impacts: • Science of gin • 1,369 people had first-hand • Investigating the paranormal access to world-leading • Fake news researchers and artists, through • Murder, maggots and MRI small Tea & Talk conversations, • Phrenology larger events and exhibitions • Macramé periodic table • “Knowledge made useful” was • At risk academic refugees brought to life for the public across the arts, sciences, • Blackbox: conversations business and social studies. from the flight deck • Tackling taboo: menstrual misery.
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Confronting mortal remains… in Dumfries and Galloway
As Scotland’s National Academy, the People in Dumfries and Galloway: RSE is committed to making knowledge useful across the country. In Spring • accessed cutting-edge 2019, almost 200 people joined world- research on their doorstep leading expert in forensic science, • debated face-to-face with a Professor Dame Sue Black, in Dumfries world-leading forensic science and Galloway at an RSE-hosted event. researcher and PhD students RSE Fellow Sue Black is no stranger to • were inspired by a leading travelling in the service of forensic science female scientist (the use of scientific techniques in the detection of crime). Sue has investigated • learned new facts, including fatal outcomes of war and natural disaster how forensic science works in Kosovo and Thailand. Her expertise is also plus novel scientific criminal crucial to many high-profile criminal cases. investigation techniques Sue shared how forensic science works, • met innovative young researchers including the use of bones and vein- and saw new career possibilities. patterns in investigations. She also talked about “facing death daily” – in her laboratory and out in the field. Sue has written an autobiography All That Remains; and she shared with the audience, young and old, the very personal challenges of writing about death and dying, and of committing her life to paper. Those who came to the event were also treated to a showcase of forensic anthropology activities from University of Dundee PhD students, including how to: identify human and non-human bones; estimate sex, age and trauma from skeletons; and use biometrics.
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Women scientists as world-leading role models
In April 2019, following our 2018 Report inspired by Scotland’s women scientists as on Tapping all our Talents, we launched they left from, or arrived in, the capital city. our Women in Science in Scotland We also created a digital version of exhibition at the RSE in Edinburgh, the exhibition to increase national and featuring photographic portraits of 26 international access and provide a learning of our Fellows. Our aims were to: resource to inspire more people: • raise the visibility of women in www.womeninscienceinscotland.com science who are either working in, or have a connection to, Scotland Recognition: we were delighted when our exhibition was shortlisted for a Chartered • highlight their different careers plus the Institute of Public Relations (CIPR) networks that science can unlock; and “Excellence in STEM” Award 2020. • inspire young women to consider Science, Technology, Engineering and Mathematics (STEM) as a career. The exhibition was on display until the end of 2019. It then moved to the Mitchell Library The RSE’s exhibition in numbers: in Glasgow. • Exhibition at the RSE: Women in Science in Scotland led to so much 14,200 visitors interest that we produced a portable version • Exhibition at Mitchell which travelled around Scotland. It has been Library: 22,000 visitors used at the Festival of Politics at the Scottish Parliament, Glasgow Women’s Library, • Travelling exhibition: 5,000 visitors Borders College, the Scottish Seabird Centre • RSE digital channel reach: and in the central offices of the Royal Bank of 60,000 audience Scotland. Due to demand, a second portable • Edinburgh Airport: version was commissioned in early 2020. 3M+ passengers We were really pleased when a version of the • Social media and visitors books: exhibition was installed at Edinburgh Airport hundreds of positive comments. in December 2019. Social media was buzzing with very positive feedback as people were © Ian Georgeson Photography © Ian Georgeson
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Provide Provide Expertise
Expertise The RSE plays a key role in making sure that Scotland’s policy makers to ensure that have access to the best expertise. We draw on our 1,600+ Fellows, who regularly and freely give their independent, Scotland’s up-to-date expertise from their diverse backgrounds across business, practice policy makers and academia. We capture their expertise through hosting wide-ranging debates on contemporary issues of national and influencers importance to policy and society. We also distil knowledge into papers and have access reports, which we then use as evidence at committees and meetings with Members of the Scottish and UK Parliaments to the best (MSPs and MPs), plus civil servants within Scottish and UK Governments. national, and We are driven by making knowledge useful. We translate complex ideas, evidence indeed global, and perspectives into clear messages that inform and shape policy for the good expertise. of the Scottish economy and society. RSE’s policy impact and engagement The RSE’s policy work combines quick turnaround responses to urgent policy questions with longer-term engagement on larger, national shifts in policies or resources. Both approaches rely on the RSE’s expertise and evidence being mobilised either rapidly or in a sustained way over time. In 2019–2020, our expert, reactive advice, responses to consultations and Policy Advice Papers included: • Post-Brexit: design of UK funding schemes for international research, road-testing environmental governance options for Scotland, exploring Immigration Policy and Structural Funds • UK’s intergovernmental relations, Common UK Frameworks, and UK Internal Market • Artificial Intelligence (AI) and data • Scotland’s Curriculum for Excellence • Economic Impact of Scotland’s Universities and Colleges, and the value of international students to Scotland’s educational institutes • Future of Primary Care.
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Shaping Scotland’s energy future
In June 2019, the RSE published the conclusions of its two-year Energy Inquiry: Impacts: Scotland’s Energy Future. The report looked at how Scotland’s energy supply and demand • we provided Scottish Government system could function within the bigger and Members of the Scottish picture of climate change. We explored moral Parliament (MSPs) with in-depth and environmental responsibilities, as well critical information and context, as Scotland’s energy needs and options. through our Report and by engaging across political parties As a National Academy with a history of giving objective guidance, our priority is to • our Report’s recommendations sift through evidence and bring varied voices were debated by Ministers, to the table. We also consider social justice industry and academics at aspects of Scotland’s future energy use. a party conference event with 100+ attendees • the issues in our Energy Report underpinned the Scottish “We welcome the Royal Parliament Economy, Energy and Fair Work Committee’s Society of Edinburgh’s own Energy Inquiry. detailed contribution to what is a complex but vitally important policy area.”
Paul Wheelhouse MSP Scottish Government Minister for Energy, Connectivity and the Islands
Becky Lunn speaking at the Energy Inquiry
28 RSE Annual Report 2019–2020 RSE Overview Inspire Engage Provide Expertise Promote RSE into the Future Accounts
On-going engagement during 2019– 2020: Our breadth of policy coverage on longer-term issues this year included: Energy; Scottish Science, Technology, Engineering and Mathematics (STEM); interdisciplinary learning (IDL); the Scottish National Investment Bank; “This RSE’s report is timely and Artificial Intelligence (AI). and welcome, identifying We continued to support Scotland’s STEM Learned Societies’ Group (LSG) with a as it does a number of debate on recruiting and retaining STEM important questions for teachers. We are establishing an IDL online practitioner forum, led by teachers, to share the future of the energy experiences and resources, supported by our sector in Scotland.” Advice Paper and Conference outcomes.
Dr Jamie Stewart Finally, the RSE has long recommended Energy Spokesperson for that Scotland should have a national AI Citizens Advice Scotland strategy. We were therefore delighted when Kate Forbes MSP, Cabinet Secretary for Finance, launched the Scottish Government’s plans for Scotland’s AI Strategy at the RSE in September 2019. We look forward to continuing to contribute to the nation’s strategic plans.
RSE Annual Report 2019–2020 29 RSE Overview Inspire Engage Provide Expertise Promote RSE into the Future Accounts © The Scottish Parliament Scottish © The
Advising Scotland’s newest bank
In 2017, the Scottish National Investment “The RSE was integral to Bank was announced by the Scottish Government. The Bank’s mission is to the Scottish Parliament’s support Scotland’s shift to “net zero” Economy, Energy and Fair Work carbon emissions. In 2019/2020, the Committee’s scrutiny of the Scottish Parliament passed the Bill that brought the new Bank into Scottish Law. Scottish National Investment For the past three years, the RSE has Bank (Scotland) Bill. The been giving policy advice on the new RSE gave evidence twice to Scottish Bank. In 2019–2020, we: the Committee, and briefed • presented written and verbal evidence to the Scottish Parliament’s Economy, MSPs individually, so helping Energy and Fair Work Committee to focus the Committee’s • hosted evidence-meetings with Members work on the simplifying of the of the Scottish Parliament (MSPs) Bank’s Strategic Missions and • wrote a briefing paper for all MSPs concerns over the proposed which they used during Bill debates running costs of the Bank.” • hosted a meeting involving the Cabinet Secretary for the economy, Scottish Dean Lockhart MSP, Shadow Cabinet Secretary Government officials and other key for Economy and Finance stakeholders to support the development of the Bank’s Strategic Framework.
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Promote Promote
Scotland’s The RSE’s mission of “knowledge made useful” is brought to life across the globe through our showcasing of Scotland’s interests and research, working with 26 other national academies, and collaborating with reputation individuals and groups worldwide. Over the past year, we have welcomed on the global international visitors and experts, with Scotland’s researchers also being hosted by national academies and universities stage. overseas. Together we have delivered workshops, debates and projects, focusing particularly on those that lead to longer-term, innovative relationships. In 2019–2020, the RSE: • organised, hosted and supported more than 27 international meetings • enabled input from, and networking between, 195 international and 150 of Scotland’s stakeholders • supported RSE Fellows to give 600 hours of their expertise on a voluntary basis • raised awareness of world-class research and innovation from Scotland • informed the Commonwealth Academies Statement on Climate Change, Biodiversity and Sustainable Energy. Our shared activities focus on creating opportunities for: individual or community development; a more resilient economy; and protecting Scotland’s environment for future populations. As a National Academy, we achieve these outcomes mainly through using research methods and evidence to address shared national and international challenges.
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In addition to delivering such opportunities through our many partnerships, we fund individuals and groups to carry out international research. An assessment of those who received our international research awards in 2019–2020 shows the following percentages: • 95% established or developed collaborations • 54% carried out research through international partnerships (rather than just in their own countries) • 42% combined international work with working across disciplines (so crossing multiple boundaries) • 90% created wider international partnership opportunities after receiving the initial research award • 28% secured almost £4M further research funding for in-country and international partnership research.
Group photograph of symposium participants, 6th Scotland- Norway Waves Symposium (Waves & Marine Hydrodynamics), Royal Society of Edinburgh, 8 – 10 May 2019
Target partner- Countries Stakeholders: country: represented: 3 Fellows Norway Norway, Germany, involved and Canada, USA, approx. 8 Australia, hours each Netherlands
Total Number of Funding: participants: Fellows and Time 65% funded by 60+ Commitment: RSE and DNVA, 4 FRSEs and 35% external approx. 35 sources funding hours each
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Supporting sustainable seas
Our oceans are a vital resource for our planet. Scotland has over 10,000 miles of coastline; Impacts: Norway more than 63,000 miles. It is no surprise then that the health of the oceans • new joint research programmes remains a key priority for these two countries, between Scottish and Norwegian driving world-leading research within the Universities with significant Arctic Region. The RSE has therefore been new research funding secured investing to support research into Waves and • new training opportunities Marine Hydrodynamics with the Norwegian for Norwegian and Scottish Academy of Science and Letters (DNVA). graduate students Waves and Marine Hydrodynamics • new industry-relevant research helps us to: research issues identified • understand the effects of in Norway and Scotland waves and ocean currents • improved communication • track changes in the Arctic currents of research findings with and how these affect our climate, industrial (offshore) sector ecology, fisheries, aquaculture • water waves research in Scotland (farming of fish such as in the and Norway strengthened ocean), coastal communities and and showcased, making offshore renewable energy global collaboration easier • understand, monitor and react • new research from Scotland/ to changes from natural causes Norway shaping strategic and human activity, and develop marine research programmes sustainable solutions. in both countries. In May 2019, the RSE hosted a joint RSE/ DNVA symposium. All Scottish and Norwegian researchers in the fields of Water Waves and the Marine Environment were invited. Over three days, 30 lectures described recent research — from theory to the laboratory to the seas. Leading international experts also joined to share this feast of oceanic learning — from England, the Netherlands, Germany, Canada, the United States and Australia.
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Seeing the world through other people’s eyes
The RSE’s international work covers many research fields. Most recently, we Impact: have strengthened our collaborations in the Humanities and Social Sciences. Hermeneutics research creates One exciting example is our strategic ways to understand and interpret partnership with the University of Chinese biblical texts. The new joint institute Academy of Social Sciences (UCASS). will help us become more aware of how we make sense of information, Our partnership helped explore links with including the assumptions we make the newly-formed CASS University as and the processes we follow. We one of a number of new RSE-supported can apply this awareness across international networks. This link focuses on society by using a new common hermeneutics, and provides the opportunity language to make sense of each for Scottish Higher Education Institutes to other’s perspectives. This will help connect around this important area of study. us to change our behaviour and In April 2019, two days of delegation visits attitudes, reflect on why we hold and business meetings were held at the certain opinions and think through Universities of Glasgow (UoG) and Edinburgh how we’re connected with our (UoE) led by two RSE Fellows, Professors environment for future generations. Natascha Gentz and David Jaspar. The RSE: • achieved agreement to co-establish a hermeneutics research institute in Scotland between UoE and UCASS • successfully arranged start-up meetings Target partner- Stakeholders: FRSE country: 2 International contribution: that have established partnerships for China and 4 Scottish 3 Fellows future Scottish exchange programmes involved and approx. 8 • encouraged initial inward investment hours each to Scotland to jointly fund the new research institute, research projects and exchanges.
“The RSE enabled a promising visit by an institution (UCASS) which is prestigious, expands quickly, and is keen to invest substantially in internationalisation.”
Dr Anselm Heinrich International Dean, College of Arts, University of Glasgow
Signing of agreement between the University of Edinburgh and the University of Chinese Academy of Social Sciences, Abden House (Edinburgh), 26 April 2019
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The previous pages have highlighted a RSE into few of the RSE’s achievements, activities and impacts for the year 2019–2020. Our extensive programme of Inspiring, Engaging, the Future Providing Expertise and Promoting Scotland would not be possible without an internal programme which underpins and enables our successful public-facing work and helps us build towards a resilient future. Our priorities for 2019–2020 were: being more strategic; communicating better; engaging differently; and diversifying the RSE’s Fellowship. We briefly describe how we have approached each of these, before looking at how we will build for 2020–2021 and beyond. 1.Taking a more strategic approach The RSE is a small organisation with a broad remit, delivering a wide-ranging programme of activity. We must therefore focus our resources so that we can continue to make a unique contribution based on our strengths, while delivering impact for public good. To support this, we have undertaken three significant reviews: • Research Awards: we assessed the effectiveness and reach of our current £1.7 million awards programme, and gaps in the research funding landscape. We used this to develop a revised programme of awards to support research capacity and leadership and the effective application of research for greater impact • Enterprise Fellowship Programme: building on an independent evaluation, we began work on the future strategy, governance and resourcing of the programme • Governance: we continued work on organisational governance with the aim of increasing effectiveness and efficiency.
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2. Better communicating our work We continue to improve and modernise our external communications; for example, through: • revamping our magazine, ReSourcE to increase its appeal • reviewing our digital and social media audiences to help us engage and channel our digital content across multiple channels (e.g., Twitter, Facebook, the RSE website) • increasing our marketing of events using a more professional approach • delivering our first public exhibition, Women in Science in Scotland, with a portable pop-up version that has moved around Scotland, along with a digital version with short videos. 3. Engaging differently It is important for us to reach more people and move beyond what might be considered our “typical” audiences. We have therefore started to review our Young People’s Programme to improve its “pull”, plus trial activities in different places using a variety of new approaches, such as: • the Belladrum Festival near Inverness • our first summer programme, Curious, during August - a mix of workshops, exhibitions, shows and ‘tea and talks’ which allowed us to share expertise in informal settings. 4. Diversifying our Fellowship Our 1,600+ Fellows volunteer their time to support the RSE’s mission of “knowledge made useful”. We wish to increase the diversity of the Fellowship so that it reflects more closely the richness of Scotland’s population and talent. A number of changes have been made over the past year to support that objective, including: revising election criteria; simplifying nomination forms; and outreach activity to identify a broader base of candidates.
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The RSE’s priorities for 2020–2021 Implications of Covid-19 We remain ambitious to enhance the Impact on the RSE’s operations: the impact of our work. Key to delivering Covid-19 outbreak has had a significant that ambition will be implementing impact on the operation of the RSE that will the findings of the reviews and continue throughout the coming year and changes outlined above, including: potentially beyond. At the time of writing (June 2020) most of the team are working • finalising and implementing the new from home and as an organisation we Research Awards Programme have adapted to doing things in the digital • finalising and delivering the new rather than physical space. While we have Enterprise Fellowship Strategy and had to cancel some of our bigger planned seeking additional funding to put the events, we have accelerated existing plans scheme onto a sustainable footing to move to, and test out, more digital ways of working, including running more events • taking forward recommendations online and developing more digital content. from the governance review At present, while we do not see an imminent • continuing to develop a more inclusive return to the building – which has been approach to our public engagement closed since March 23rd – work is in hand to • continuing to take steps to consider how many colleagues could work diversify the RSE’s Fellowship. safely in the building and what measures we In addition to these strategic commitments, would need to put in place to enable them to we will also take forward two priority do so safely, as well as considering what we operational priorities: the redevelopment of might offer as a socially-distancing venue. our website for more effective engagement; The pandemic has also had an impact on and implementation of a new customer RSE finances, with a reduction in income relationship management (CRM) system. from venue hire and investments. A re- budgeting exercise has been undertaken to 2020–2021 will also see us begin take account of those implications, which two new pieces of strategic work: indicated that those losses can be absorbed. • the development of a regional strategy, The RSE’s offering as Scotland’s National which directly underpins our role as Academy: the RSE has a key role to play in Scotland’s National Academy. We supporting Scotland’s move towards post- are thinking through how we might crisis recovery from Covid-19. The RSE is well strengthen our engagement for placed to help identify and address some the whole of Scotland, enhancing of the immediate policy implications and our relevance and impact challenges arising from Covid-19, drawing • beginning the process for on our breadth of expertise, independence developing our next Strategic of purpose and strong convening power. We Framework 2021–2026, including will lead and support thinking and discussion discussions with Fellows, funders, around some of the bigger questions the stakeholders and the wider public. pandemic raises, including around the response, the structure of the economy and the kind of society we wish to see. To ensure we deliver on this commitment, we have established a Post-Covid-19 Futures Commission made up of leading practitioners and thinkers from across society, who will inform and guide the RSE’s work, bringing benefits to Scotland’s economy and society.
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RSE Prizes and Medallists 2019–2020 In 2019–2020, the RSE awarded its prestigious medals to eminent scientists and researchers in recognition of their contributions and achievements in their selected fields of study.
The RSE Lord Kelvin Medal and Sir Walter Scott Medal are presented to exceptional individuals who have demonstrated lifelong dedication and made outstanding contributions to their area of research, business or public service.
The RSE Lord Kelvin Medal: Sir Walter Scott Medal: Professor David Manlove (University Professor Kathryn Rudy (University of St of Glasgow) received his medal for his Andrews) was awarded her medal for her outstanding contribution to computing outstanding contribution to art history. science. Professor Manlove has enabled Professor Rudy’s capacity for lateral a significant increase in living kidney thinking has meant she has been able to transplants, thereby improving public examine a large corpus of manuscripts in health, through pioneering work in ways unexplored by previous scholars. matching algorithms and software. “None of this work has taken place in a vacuum “Whilst being very honoured and proud to have and I so grateful to everyone who has nurtured been selected for this, to me, it is recognition my work: funders, librarians, cataloguers, not just of my work, but of all the people who editors, publishers, the University of St Andrews have worked with me on algorithms for kidney for its generous leave enabling me to hike, think exchange. This includes colleagues at the and write of course my friends, colleagues University of Glasgow who have worked with me and students in Scotland and beyond”. since 2007, as well as the excellent team at NHS Professor Kathryn Rudy FRSE Blood and Transplant who are directly involved School of Art History, University of St Andrews with the UK Living Kidney Sharing Scheme.”
Professor David Manlove Professor of Algorithms and Complexity, School of Computing Science, University of Glasgow
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The Sir Thomas Makdougall Brisbane Medal and RSE Dr Patrick Neill Medal are for early-career researchers and business leaders for their outstanding contribution to their field of research or business.
Sir Thomas Makdougall Brisbane Medal: RSE Dr Patrick Neill Medal: Dr Martin Lavery (University of Glasgow) the joint recipients of this medal are Dr was awarded his medal for his outstanding Joe Marsh (University of Edinburgh) contribution to photonics, working on a for his outstanding research in human diverse range of ongoing experiments genetics, which is key to the success of including free-space optical communications personalised and precision medicine; and and underwater optical communications. Dr Ferry Melchels (Heriot-Watt University) for his outstanding contribution to the field “It was a fantastic surprise to receive this of biomaterials and tissue engineering. honour. The RSE Sir Thomas Makdougall Brisbane Medal is an incredibly prestigious “It’s a great honour for me to receive award and I’m very grateful to the committee the Patrick Neill Medal – it’s a reflection for their recognition of my work.” of the fantastic research environment provided by the MRC Human Genetics Dr Martin Lavery University of Glasgow Unit and the University of Edinburgh that has allowed me to do this research”.
Dr Joe Marsh University of Edinburgh
“I’m honoured to receive this prestigious Medal. It not only celebrates my research career thus far, but also acknowledges the importance of the young field of biofabrication for the life sciences”.
Dr. Ferry Melchels Associate Professor, Heriot-Watt University
RSE Annual Report 2019–2020 39 40 RSEAnnualReport 2019–2020 RSE Overview Inspire confirms to me yet again whatanacademic powerhouse Scotlandisandhowproud we Engage “My congratulations to the medallists, who “My congratulationsto themedallists, who should bethatsuchanimpressive poolof talent choosesto baseitsresearch here”. are all uniquely pushing the boundaries are alluniquelypushingtheboundaries of knowledge and expertise. This list Thislist of knowledgeandexpertise. Professor DameAnneGlover, RSE President, stated: Provide Expertise Edinburgh International ScienceFestival. the reach and internationalreputation ofthe Science Festival), forhisworkinexpanding Dr SimonGageOBE(Edinburgh International was awarded to: The RSESeniorPublicEngagementPrize science inafunandinteractive way. of hercontributionto communicating (University ofDundee)inrecognition Dr SengaRobertson-Albertyn Engagement wasawarded to: The RSEInnovator’s Prize forPublic Promote
RSE into theFuture
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© Steve Vaccariello RSE Overview Inspire Engage Provide Expertise Promote RSE into the Future Accounts
RSE New Fellows 2020
Honorary: Professor Robert Frost FBA Professor Miratul Muqit Mr Alan Cumming OBE Burnett Fletcher Professor of History, Professor of Experimental Neurology, Actor, Producer, Singer, Author and University of Aberdeen University of Dundee
© Steve Vaccariello Barnes © Tom Activist Professor Sebastian Geiger Professor Scott Murray MBE Professor Niall Ferguson Energi Simulation Chair and Director of Emeritus Professor of Primary Palliative Milbank Family Senior Fellow, Hoover the Institute of GeoEnergy Engineering, Care, University of Edinburgh Institution, Stanford University Heriot-Watt University Professor Francisc Mutapi FAAS, FZAS Corresponding: Professor Ian Gilbert Professor of Global Health Infection and Head, Division of Biological Chemistry Immunity, University of Edinburgh Professor David Bates and Drug Discovery, and Professor Chief of the Division of General Internal Dr Sandy Nairn of Medicinal Chemistry, University of Investment Partner and CEO/Chairman, Medicine, Brigham and Women’s Dundee Hospital, Boston MA Edinburgh Partners Professor Thomas Gillingwater Mr Neil Oliver Professor Joan Cordiner FREng Chair of Anatomy, University of Professor of Process Engineering and Historian, Broadcaster, Writer and Edinburgh External Engagement, University of Archaeologist Sheffield Professor Rebecca Goss FRSC Ms Francesca Osowska OBE Professor of Organic Chemistry, Professor Alan Cowman FRS Chief Executive, Scottish Natural University of St Andrews Deputy Director - Science, The Walter and Heritage Eliza Hall Institute of Medical Research Professor Bruce Guthrie Professor Beatrice Pelloni Professor of General Practice, Professor Tom Curran FRS Professor of Mathematics and Head of University of Edinburgh Executive Director and Chief Scientific School, Heriot-Watt University Officer, Children’s Research Institute Dr Katie Hampson Professor José Penadés Casanova Professor Malik Dahlan Wellcome Senior Research Fellow, Director of the MRC Centre for Principal and Chief Lawyer, Institution University of Glasgow Molecular Bacteriology and Infection Quraysh for Law & Policy Dr David Hare and Chair of Microbiology, Imperial College London Dr Mwapatsa Mipando Independent Non-Executive Director Principal of the College of Medicine, Professor Ailsa Henderson Professor Aidan Robson University of Malawi Professor of Political Science and Head Professor of Particle Physics, University of Glasgow Dr Viswanathan Mohan of Politics & International Relations, Director, Madras Diabetes Research University of Edinburgh Professor Alexandra Rowe Foundation Mr Dominic Hill Professor of Molecular Medicine, University of Edinburgh Professor Mari Ostendorf Artistic Director, Citizens Theatre Dr Alison Sheridan FBA Professor of Electrical & Computer Professor Mark Huxham © Lorne Gill (SNH) Engineering, University of Washington Professor of Teaching and Research Emerita Principal Archaeological Research Curator, National Museums Fellow: in Environmental Biology, Edinburgh Napier University of Scotland Professor Lynn Abrams FBA Professor Ralf Kaiser FInstP Professor Chris Soulsby Professor of Modern History, Professor of Hydrology, University of University of Glasgow Professor of Physics, University of Glasgow Aberdeen Professor Rosalind Allen Professor Chris Speed Professor of Biological Physics, Dr Deborah Keith Chair, James Hutton Ltd. Chair of Design Informatics, University of Edinburgh University of Edinburgh Mr Fergus Linehan Professor Annie Anderson The Right Honourable Colin Professor of Public Health Nutrition, Festival Director & Chief Executive, Edinburgh International Festival Sutherland University of Dundee Lord President and Lord Justice Professor Keith Bell Professor Margaret Lucas General of Scotland Director, Centre for Medical & Industrial Scottish Power Professor of Smart Professor Stephen Tierney Ultrasonics, University of Glasgow Grids, University of Strathclyde Professor of Constitutional Theory, Professor David Borchers Professor Rory McCrimmon University of Edinburgh Dean, School of Medicine, University of Professor of Statistics, University of St Professor Lesley Torrance Dundee Andrews Professor of Virology, University of St Ms Christine Borland Sir Iain McMillan CBE Andrews Member, Competition Appeal Tribunal Artist Professor Pieter van West Mr Melfort Campbell OBE Professor Nasar Meer FAcSS Director of the International Centre Director, Imes Group Limited Professor of Sociology, for Aquaculture Research and The Right Honourable Lord University of Edinburgh Development, University of Aberdeen Menzies Campbell of Pittenweem Dr Lindsay Montgomery CBE Professor Nicholas Watson CH, CBE, PC, QC Visiting Professor, School of Law, Chair of Disability Research and Chancellor, University of St Andrews University of Strathclyde Director of Centre for Disability Professor David Crossman Professor Jill Morrison Research, University of Glasgow Dean of Faculty of Medicine, Clerk of Senate and Vice-Principal, Professor Nick Weston University of St Andrews University of Glasgow General Manager, Renishaw Plc Professor Simon Dobson Dr Joe Morrow CBE Mr Andrew Wilson Professor of Computer Science, President, Mental Health Tribunal for Founding Partner, Charlotte Street University of St Andrews Scotland Partners Professor Penny Fielding Professor Simon Mudd Ms Talat Yaqoob Grierson Professor of English Literature, Professor of Earth Surface Processes, Independent Consultant and University of Edinburgh University of Edinburgh Researcher
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Corporate Officers and Senior Staff
Governance and Curator Professor Christopher Hall Management Research Awards Convener Professor Charles Withers Programme Convener The Royal Society of Edinburgh is an educational charity, registered Professor Mary Bownes OBE in Scotland as Scottish Charity Young People’s Programme Convener No. SC000470. The Trustees are Professor Stuart Monro OBE the Council Members elected Chair of RSE Scotland Foundation during the Financial Year (1 Professor Gordon Masterton OBE April 2019 to 31 March 2020). Education Committee Convener Dr Keir Bloomer Chair of RSE Scotland SCIO Professor Ineke De Moortel Council Chief Executive Dr Rebekah Widdowfield Director of Development President Mr Gordon Adam (retired 22.08.19) Professor Dame Anne Glover DBE Director of Programmes Vice-Presidents Mr Graeme Herbert (retired 31.10.19) Professor David Bell CBE Professor Sarah Skerratt (appointed 03.02.20) Professor Andrew Porter Director of Finance Professor Marcel Jaspars Mr Rob Conner (resigned 20.12.19) Professor Mandy MacLean MBE Mr Gordon Laidlaw (interim appointed 17.02.20) Professor Maggie Cusack Audit and Risk Management Committee General Secretary Convener Dr Alison Elliot CBE Sir Sandy Crombie Treasurer Members Dr John Brown CBE Professor Marcel Jaspars (VP) Fellowship Secretary Professor Andrew Porter (VP) Mr James Boyle Professor David Bell OBE (VP) Councillors Dr John Brown CBE Professor Jill Belch OBE Professor Mandy MacLean MBE (VP) Professor Julian Jones OBE Mr Rob Conner (resigned 20.12.19) Professor Sir Mark Jones Mr Gordon Laidlaw (interim appointed 17.02.20) Professor Rebecca Lunn MBE Professor Petra Wend
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Result for the year Financial The Group statement of financial activities records the net movement in funds for the Review year as a £3.24m reduction, as compared to a £2.66m increase in 2019. This principally arose due to the reduction in the value of the investment portfolios at the end of the year as financial markets reacted to the impact of the Covid-19 pandemic. The prior year also benefitted from a £3.08m gain on the initial valuation of investment property. The operating result for the year was a deficit of £232k, compared to a surplus of £79k in 2019, with part of this reduction being a pensions’ £160k charge for the “McCloud ruling” and “Guaranteed Minimum Pension” adjustments. In 2019, as part of a review of Governance, the Trustees agreed that the original rationale for the RSE Scotland SCIO was out of date and that the SCIO be closed, with all activities transferring into the RSE. As at the year end, the SCIO was wound up and remaining reserves, £33k, were transferred as a donation to the RSE. Income and Expenditure
Income by Source Income
Scottish Funding Council - research funding 42.19% Total income was £5.7m — this was Dividends and interest 16.85% down £1.4m on the prior year. Public sector bodies 15.92% Donations and smaller legacies of £438k, Scottish Funding Council - other 5.90% including Fellows’ subscriptions and Fellows 4.55% donations from Friends of the Society, Rental income 4.31% increased from the prior £298k following the Charitable trusts 3.54% £148K transfer from the USA of the capital Conference facilities 3.40% balance held in the John M Lessells Trust. Journal publications 2.78% Both investment income and property rental Individuals 0.22% income remained at levels similar to 2019. Companies 0.21% Income from charitable activities, which Legacies 0.11% includes the Government grant and funding from Scottish Enterprise and UK Research Expenditure Councils, decreased to £4.04m from £5.54m. Income for the Unlocking Ambition Research & Prizes 31.88% Enterprise Fellowship programme funded Enterprise & Innovation 24.28% by the Scottish Government fell £717k as Public Engagement 12.86% the programme ended during the year and Costs of raising funds 10.73% Scottish Enterprise (Enterprise Fellows) Policy 9.33% funding fell by £249k. Venue income fell by Events & Conference Hire 4.16% £193k, although this was offset by a reduction International 4.07% in costs as client billing for catering moved RSE Young Academy of Scotland 1.78% from the RSE to the catering company. Publications 0.64% Expenditure Development 0.27% Total expenditure fell from £7.0m to £5.9m. Costs in the area of Enterprise and Innovation fell £726k in line with reductions in funding and fell £116k in International Relations.
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In line with the Strategic Framework At a Group level, the RSE’s Balance Sheet development aim of extending outreach contains unrestricted reserves of £15.3m and impact, the expenditure on policy, as at the year end. Going forward, Covid-19 events and outreach, both in Scotland and is expected to adversely impact the RSE’s internationally, increased during the year. financial position; however, with this level of unrestricted reserves there is flexibility Support costs of charitable activities included within that amount to offset pandemic- planned expenditure on staff and buildings related reductions in income and support maintenance and improvements, the latter the preparation of these accounts on a funded by reserves from previous years. going-concern basis. The organisation’s Costs of raising funds increased from Budget for 2020/21 was revised to take £514k to £635k, largely in the area of account of emerging pandemic impacts building management costs. This category on investment returns and trading income, of expenditure comprises investment and while projections will have to be management fees; the cost of the Fellowship regularly updated, the process showed office and support of membership activities; the financial impact could be sustained. the costs of building management in The calculated FRS102 pension liability of respect of income from letting of surplus £1,236,000 at 31 March 2019 decreased space; and fundraising costs including by £422,000 to £814,000. Favourable management time in securing funding. movements in the calculation of scheme Investment Asset gains and losses liabilities more than offset the reduction included in net income largely reflect the in asset valuations seen at the end of the significant reduction in the performance year. The FRS102 accounts valuations, of the UK equity market at the end of which reflect market conditions at a the year, with an unrealised loss on point in time, can fluctuate materially and investments of £3.5m (2019 — £19k gain). changes in liabilities may be reversed. Transfers between funds shown in the The FRS102 reported outcome for the Statement of Financial Activities comprise RSE’s membership of the Lothian Pension the recurring transfers from the Capital Asset Fund showed a net asset position of unrestricted reserve of a total of £102k to £101,000 compared to a net liability of match the depreciation of buildings and £193,000 in 2019. However, as this asset the capital repayment of the loan to the is not recoverable as a refund or through Foundation; and a transfer on consolidation reduced contributions, these accounts from the Foundation restricted fund balance reflect a break-even funding position for to the General Fund, equivalent to the net FRS102 purposes, showing a decrease inter-entity income received in the RSE. In in liability of £193,000 since 2019. addition, £598k in respect of the Dryerre For the Universities Superannuation Fund was transferred out of restricted to Scheme (USS) the calculated FRS102 unrestricted funds in the year, following a liability decreased, from £1,043,000 review of the original terms of the Fund. to £814,000. The main changes in the Balance sheet calculations, other than asset values, are the actuarial assumptions, principally the Consolidated net assets have decreased by discount rate applied to the liabilities. £3.2m, principally due to the reductions in The FRS102 liabilities are accounting market value of investments at year end. estimates and actual liabilities would only Fixed assets, including the property in George be realised if the RSE left either of the Street, amounted to £5.8m, the decrease on defined benefit schemes. The basis of the prior year being in the main due to the calculation differs from the potential cash £265k reduction in revaluation of investment cost that would arise if the liabilities were properties required by FRS102. At year end, crystallised. It is possible that the USS liability investments were valued at £21.3m, of may crystallise in the foreseeable future, which £19.1m related to restricted funds or as the active membership of the scheme designated funds, such as the BP Research has reduced. The Trustees have previously Fund, the Development Fund and the obtained estimates of the potential exit Pension Reserve Fund. Net current assets liabilities and plans remain in place to build a remained relatively unchanged at £2.1m. pension reserve equivalent to these amounts.
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The RSE Council Structure, The RSE Council, chaired by the President, comprises fourteen Trustees, including five Governance and Vice-Presidents, the General Secretary, the Treasurer, the Fellowship Secretary and five Councillors. Subject to nomination and annual Management re-election by the Fellowship, Council members serve for three years; except for the General Secretary and Treasurer, who may serve for up to four years. All positions are unpaid. The Council is responsible for the strategic direction and policies of the RSE, and normally meets quarterly. In addition to the fourteen members of Council, there are five elected Office bearers who are not Trustees of the RSE: the Education Convener, the Programme Convener, the Research Awards Convener, the Young People’s Programme Convener and the Curator. With the exception of the Curator, these Office bearers are conveners of operational committees. Any or all of the Office bearers are able to attend meetings of Council, when there is business at Council relevant to their responsibilities. The Council members and the Office bearers are all elected annually by the Fellowship in a postal ballot. New members of Council and the Office bearers are given an extensive induction through briefing notes and discussions with the Chief Executive and senior staff. Governance Review The RSE commenced a governance review in late 2018 which reported in June 2019. Amongst the recommendations were that a new Finance and Resources Committee be established covering RSE finances, investment, HR policies and staff remuneration. The Review also recommended establishing a Nominations Committee covering recruitment of trustees, policies and processes for recruitment of committee members and supporting committee effectiveness. The Review also recommended closing or mothballing the SCIO, closing or mothballing the Foundation and establishing a trading subsidiary to deal with all trading activity, income generation and estate management. Work is underway to take forward the recommendations of the Governance Review as agreed by Council and taking into account any required changes to RSE laws and consultation with the Fellowship. As of 31st March 2020, the SCIO was closed and all activities, including those of the Young Academy of Scotland, were transferred to the RSE.
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Operational Committees The SCIO utilises the broad intellectual resources and talents of the Fellowship of The operational committees include the the RSE and related bodies, as appropriate, Education Committee, the International Committee, the Economy and Enterprise to enhance the intellectual and cultural Committee and various Research and advancement of Scotland. The SCIO currently Enterprise Awards Committees. The oversees the development of the RSE Young Meetings Committee and the Young People’s Academy of Scotland. Its Trustees are Committee have been meeting jointly as appointed by RSE Council and serve for up the Public Engagement Group. These to three years in the first instance and may Committees largely, but not exclusively, serve for a further three years thereafter. comprise Fellows of the RSE and support Related Parties the operational delivery of the RSE’s varied activities. All Fellows are actively encouraged Material transactions with related parties to participate in the RSE’s activities. are disclosed in the notes to these financial statements. The RSE’s policy is for Trustees, Two other charities founded by and closely staff and advisers to declare their interest connected to the RSE, the RSE Scotland and exempt themselves from all relevant Foundation (a charitable trust and Scottish discussions and decisions which may Charity SC024636) (the Foundation), and involve a transaction with a related party, or The RSE Scotland SCIO (Scottish Charity in which they may have a conflict of interest. SC043194) (the SCIO), are included in the consolidated financial statements. Risk Management The Foundation supports the RSE’s public The Audit and Risk Committee, operating outreach activities and manages the on a joint basis with the Foundation and premises in Edinburgh. Five of the Trustees the SCIO, reports directly to the Council of the Foundation are appointed ex-officio and the Trustees of the Foundation, of positions held on RSE Council and a and the SCIO. Its Chair, who cannot be a minimum of four nominated Trustees are Trustee or other Office bearer of the RSE, appointed for a three-year term by the RSE is invited to attend Council meetings as Council. Following a transfer of assets in an observer. Its remit includes keeping 2009, the Foundation is also responsible for under review the effectiveness of internal managing the programme of activities in control and risk management systems support of research in Scotland, funded by of the RSE and its connected charities. the Caledonian Research Fund. The SCIO was incorporated in June 2012. Its purposes The Council believes that the existing are: a) the advancement of education; b) systems and the structure of decision making the advancement of the arts, heritage, and reporting through the senior team to culture or science; c) the advancement of Council continue to provide assurance that citizenship or community development. risks are assessed and carefully managed.
Description of risk Action to manage Engage with stakeholders on funding continuity. Continue to develop the RSE’s fundraising Loss of funding capability and capacity. Continue to monitor developments that change risk factors for funding and operations. Risk that pensions costs and liabilities will Continue to monitor pensions liabilities become unaffordable annually. Continuing to update defences. Risk of Cyber attack or breach of IT All staff using IT equipment involved in security ongoing cybersecurity training. Business Continuity Plan tested in 19/20 Business Continuity for ongoing review.
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Going Concern Operating Policies – Grant Making The Trustees have considered the Group’s The RSE makes grants to individuals in reserves and secured and expected income, higher education institutions in support and assessed the possible financial impact of research activities in the categories of effect of Covid-19 on the RSE. The Group Personal Research Fellowships, Sabbatical has significant unrestricted reserves, Research Grants, Arts & Humanities Grants, access to cash deposits and relatively Postgraduate Travel Scholarship, PhD liquid investment portfolios, which give Studentships, Undergraduate Vacation flexibility to the Group to absorb the impact Scholarships, Enterprise Fellowships and of possible reductions in income over the international exchange grants. Each of these next 12 months. The Trustees consider categories is specifically funded from various that it is appropriate to prepare the financial sources, including the RSE’s restricted funds. statements on a going-concern basis. The basis of eligibility and selection varies according to the detailed scheme regulations, Policies which are published on the RSE’s website Investment powers and policy (www.rse.org.uk). Grants are also made in support of research activities of Fellows The investment management arrangements of the RSE, including support for travel were reviewed in April 2016 and since 1 July connected with research or scholarship, 2016, the management of the investment small-scale specialist meetings, to assist funds of the RSE and the Foundation has research visitors to Scotland to undertake been carried out by Rathbones and Cornelian collaborative research work with a Fellow, to Asset Management. Each manages half assist a visiting lecturer to come to Scotland, of the portfolio on a discretionary basis. to assist research collaboration between two institutions in Scotland or between The objectives set by the Council are to universities and industry, and to assist in the ensure a sufficient level of income to meet publication of books written by Fellows. The the target set annually by the Council, and Grants Committee is responsible for making to invest for real capital growth over the these awards to Fellows and members of long term. The Council has delegated the the Young Academy in accordance with the detailed monitoring of performance to an scheme’s regulations agreed by Council. Investment Committee, which includes at least one ordinary member of Council and Reserves Policy and Funds two experienced investment professionals, The total funds at 31 March 2020 and which makes comparisons against a are as follows: composite benchmark reflecting the mix of assets held. The performance of the £’000 portfolios in the year was as follows: Total funds 28,625 Income Actual Total Less: Restricted 13,327 target income return Less: Designated £’000 £’000 % Capital Asset reserve 2,878 RSE 540 586 (11)% Building Fund 2,263 Revaluation Reserve 2,818 Foundation 360 372 (11)% Pension Reserve Fund 1,109 BP Research Fund 3,114 Young Academy Fund 33 The income return was satisfactory and the Development Fund 2,456 comparison with benchmark was positive for Net available funds- 627 both managers. The Investment Committee comprising: meets twice annually with the investment General Fund Balance 627 managers to discuss their compliance with the constraints set by the Committee The RSE holds a number of restricted and the risk environment. In the year under funds resulting from bequests for particular review, no compliance issues arose which purposes, details of which are set out in required to be reported to the Committee. Note 2 to the financial statements.
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The Council has allocated designated Pay Policy funds, within its unrestricted funds, the The Trustees and the senior management purposes of which are also set out in Note team, comprising the Chief Executive, Director 2 to the financial statements. The Capital of Finance and Corporate Services, Director Asset Reserve represents the buildings held of Development and Director of Programmes, as tangible fixed assets. Other amounts are the key management personnel. No designated for future spending comprise the Trustees receive remuneration; details of Building Fund for non-routine maintenance the reimbursement of Trustees expenses and development of the George Street are in Note 23 to the financial statements. buildings; the BP Fund for research and All staff are joint employees of the RSE, the innovation; the Pension Reserve Fund against Foundation and the RSE Scotland SCIO. future defined benefit pension liabilities; and the Development Fund to support the Their terms and conditions of employment delivery of the RSE Strategic Framework. are set by a Staffing Committee, chaired by the General Secretary, and including The General Fund represents the the Treasurer and a Vice-President and balance of unrestricted funds. an external adviser. The pay of all staff It is the Council’s present intention is reviewed annually by the RSE Staffing to strengthen the RSE’s financial Committee, taking account of inflation independence by using major donations and the level of awards in other relevant and legacies to build the Development sectors and benchmarked on a biennial Fund as an endowment to be used for basis against similar organisations. Where both income and capital projects. this shows a pay level compared to the benchmark that is outside the tolerance set The Council considers that it would be by the Staffing Committee, adjustments desirable to have a General Fund reserve may be made, subject to affordability. in the range of three months’ expenditure on support costs, or approximately £0.6m, which is reflected in the General Fund balance of £627k at the end of the year.
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Statement of Council’s Responsibilities
The Council is responsible for preparing the Accounts (Scotland) Regulations 2006 Annual Report and the financial statements (as amended) and the RSE’s own Laws. in accordance with applicable law and It is also responsible for safeguarding the United Kingdom Accounting Standards assets of the RSE and, hence, for taking (United Kingdom Generally Accepted reasonable steps for the prevention and Accounting Practice). Under charities detection of fraud and other irregularities. legislation applicable in Scotland, the The Council is also responsible for the Council is required to prepare accounts maintenance and integrity of the charity for each financial year that give a true and financial information included on the and fair view of the state of affairs of RSE’s website. Legislation in the United the RSE itself and of its consolidated Kingdom governing the preparation and connected charities and of the incoming dissemination of financial statements may resources and application of resources differ from legislation in other jurisdictions. of the RSE itself and of its consolidated Approval of the Report connected charities for that period. At the time of approving this report: In preparing these financial statements, The Council is required to: • so far as each Trustee is aware, there is no relevant audit information of • select suitable accounting policies which the Auditors are unaware and apply them consistently • each Trustee has taken all the steps • observe the methods and principles that they ought to have taken as a of the Charities SORP Trustee to make themselves aware • make judgements and estimates of any relevant audit information that are reasonable and prudent and to establish that the Auditors are aware of that information. • state whether applicable accounting standards have been followed, subject to any departures disclosed and explained in the financial statements • prepare the financial statements on a going-concern basis, unless it is inappropriate to presume that the RSE will continue in operation. The Council is responsible for keeping accounting records that disclose, with Signed on behalf of the Council reasonable accuracy at any time, the financial Dr John Brown CBE FRSE position of the RSE and which enable it to Treasurer ensure that the financial statements comply with the Charities and Trustee Investment 14th September 2020 (Scotland) Act 2005, the Charities
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Independent Auditor’s Report
Independent Auditor’s Report to the that are relevant to our audit of the financial Council of the Royal Society of Edinburgh statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our Opinion on Financial Statements ethical responsibilities in accordance with We have audited the consolidated financial these requirements. We believe that the audit statements of The Royal Society of evidence we have obtained is sufficient and Edinburgh (the ‘charitable group’) for the appropriate to provide a basis for our opinion. year ended 31 March 2020 which comprise the Group and RSE Statements of Financial Conclusions relating to going concern Activities, the Balance Sheets, the Group We have nothing to report in respect of the Cash Flow Statement and notes to the following matters in relation to which the financial statements, including a summary ISAs (UK) require us to report to you where: of significant accounting policies. The • the Trustees’ use of the going- financial reporting framework that has been concern basis of accounting in applied in their preparation is applicable the preparation of the financial law and United Kingdom Accounting statements is not appropriate; or Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK • the Trustees have not disclosed in the and Republic of Ireland” (United Kingdom financial statements any identified Generally Accepted Accounting Practice). material uncertainties that may cast significant doubt about the charitable In our opinion the financial statements: group’s ability to continue to adopt the • give a true and fair view of the state going-concern basis of accounting of the charitable group’s affairs as at for a period of at least twelve months 31 March 2020 and of its incoming from the date when the financial resources and application of statements are authorised for issue. resources, for the year then ended; Other information • have been properly prepared The other information comprises the in accordance with United information included in the RSE Annual Kingdom Generally Accepted Report other than the financial statements Accounting Practice; and and our auditor’s report thereon. The Trustees • have been prepared in accordance are responsible for the other information. with the requirements of the Charities Our opinion on the financial statements and Trustee Investment (Scotland) does not cover the other information and, Act 2005, and regulations 6 and 8 of we do not express any form of assurance the Charities Accounts (Scotland) conclusion thereon. In connection with Regulations 2006 (as amended). our audit of the financial statements, our responsibility is to read the other information Basis for opinion and, in doing so, consider whether the other We have been appointed as auditor information is materially inconsistent with under section 44(1)(c) of the Charities the financial statements or our knowledge and Trustee Investment (Scotland) Act obtained in the audit or otherwise appears to 2005 and report in accordance with be materially misstated. If we identify such regulations made under that Act. material inconsistencies or apparent material misstatements, we are required to determine We conducted our audit in accordance whether there is a material misstatement with International Standards on Auditing in the financial statements or a material (UK) (ISAs (UK)) and applicable law. Our misstatement of the other information. responsibilities under those standards If, based on the work we have performed, are further described in the Auditor’s we conclude that there is a material responsibilities for the audit of the financial misstatement of this other information, statements section of our report. We are we are required to report that fact. independent of the charitable group in accordance with the ethical requirements We have nothing to report in this regard.
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Matters on which we are required could reasonably be expected to influence to report by exception the economic decisions of users taken on the basis of these financial statements. We have nothing to report in respect of the following matters where A further description of our responsibilities the Charities Accounts (Scotland) for the audit of the financial statements Regulations 2006 (as amended) require is located on the Financial Reporting us to report to you if, in our opinion: Council’s website at http://www.frc.org.uk/ auditors responsibilities. This description • the information given in the financial forms part of our auditor’s report. statements is inconsistent in any material respect with the RSE Annual Report; or Use of our report • proper accounting records This report is made solely to the charitable have not been kept; or group’s trustees, as a body, in accordance with section 44(1)(c) of the Charities and • the financial statements are Trustee Investment (Scotland) Act 2005, not in agreement with the and regulation 10 of the Charities Accounts accounting records; or (Scotland) Regulations 2006 (as amended). • we have not received all the information Our audit work has been undertaken so that and explanations we require for our audit. we might state to the charitable group’s Trustees those matters we are required Responsibilities of trustees to state to them in an auditor’s report and As explained more fully in the Statement for no other purpose. To the fullest extent of Council’s Responsibilities, the Council permitted by law, we do not accept or is responsible for the preparation of the assume responsibility to anyone other than financial statements and for being satisfied the charitable group and its Trustees as that they give a true and fair view, and a body, for our audit work, for this report, for such internal control as the Trustees or for the opinions we have formed. determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charitable group’s ability to continue as a RSM UK Audit LLP going concern, disclosing, as applicable, Statutory Auditor matters related to going concern and using Chartered Accountants the going-concern basis of accounting unless First Floor, Quay 2, the trustees either intend to liquidate the 139 Fountainbridge, charitable group or to cease operations, or Edinburgh. EH3 9QG have no realistic alternative but to do so. (RSM UK AUDIT LLP IS ELIGIBLE TO ACT AS AN Auditor’s responsibilities for the AUDITOR IN TERMS OF SECTION 1212 OF THE COMPANIES ACT 2006) audit of the financial statements EDINBURGH Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
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Group Statement of Financial Activities (INCORPORATING THE INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2020
Note Unrestricted Restricted 2020 Total 2019 Total £ £ £ £
Income Legacies 6,309 - 6,309 82,687 Other donations 268,935 169,194 438,129 297,827 Donations and legacies 4 275,244 169,194 444,438 380,514 Charitable activities 5 39,192 3,998,325 4,037,517 5,544,865 Rental income 6 - 244,843 244,843 255,454 Investment income 6 451,652 506,368 958,020 906,484 Total income 766,088 4,918,730 5,684,818 7,087,317
Expenditure Raising funds 7 (448,171) (186,471) (634,642) (514,288) Charitable activities 7 (1,080,816) (4,201,700) (5,282,516) (6,493,905) Total expenditure (1,528,987) (4,388,171) (5,917,158) (7,008,193) Net operating (deficit)/surplus (762,899) 530,559 (232,340) 79,124
Gains / (losses) on Investment Assets Realised gains on investments 14 23,868 16,139 40,007 217,204 Unrealised (losses)/gains on investments 14 (1,637,867) (1,849,932) (3,487,799) 19,182 Unrealised (losses)/gains on investment property 13(a) (265,000) - (265,000) 3,083,141 Net income / (expenditure) (2,641,898) (1,303,234) (3,945,132) 3,398,651 Transfers between funds 19,20 806,866 (806,866) - -
Other recognised gains / (losses) Actuarial gains/(losses) on defined benefit pension funds 22 705,000 - 705,000 (735,000) Net movement in funds (1,130,032) (2,110,100) (3,240,132) 2,663,651
Reconciliation of funds: Balance brought forward at 1 April 2019 19,20 16,427,368 15,437,523 31,864,891 29,201,240 Balance carried forward at 31 March 2020 19,20 15,297,336 13,327,423 28,624,759 31,864,891
There were no acquired or discontinued activities in the year other than the agreed closure of the RSE Scotland SCIO as at 31 March 2020. The notes on pages 56 to 81 form part of the these financial statements.
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Balance Sheets at 31 March 2020
GROUP GROUP RSE RSE Note 2020 2019 2020 2019 £ £ £ £
Fixed assets Tangible fixed assets 13(a) 5,764,147 6,092,867 4,416,851 4,737,545 Heritage assets 13(b) 46,920 46,920 46,920 46,920 Intangible fixed assets 13(c) 182,548 68,111 182,548 68,111 Investments at fair value 14 21,340,551 24,669,863 12,983,123 14,963,072 Loans Receivable 15 - - 1,235,824 1,282,632 Total fixed assets 27,334,166 30,877,761 18,865,266 21,098,280
Current assets Debtors 16 295,972 168,984 268,647 131,672 Cash at bank and in hand 368,706 291,566 259,725 163,322 Deposits 3,585,882 3,542,923 3,585,882 3,542,923 Total current assets 4,250,560 4,003,473 4,114,254 3,837,917
Current liabilities Creditors: amounts falling due within one year 17 (2,145,967) (1,780,343) (3,628,265) (3,127,167) Net current assets 2,104,593 2,223,130 485,989 710,570 Net assets excluding pension fund 29,438,759 33,100,891 19,351,255 21,809,030 Defined benefit pension schemes liability 22 (814,000) (1,236,000) (814,000) (1,236,000) Net assets after pension fund liability 28,624,759 31,864,891 18,537,255 20,573,030
Funds Restricted Funds 20 13,327,423 15,437,523 3,239,919 4,145,662 Unrestricted Funds Designated Funds 19 14,670,068 16,305,625 14,670,068 16,305,625 General Fund 18 627,268 121,743 627,268 121,743 15,297,336 16,427,368 15,297,336 16,427,368 Total funds 21 28,624,759 31,864,891 18,537,255 20,573,030
The accounts were approved by the Council on 14th September 2020 and signed on its behalf by:
Dr John Brown CBE FRSE Treasurer
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RSE Statement of Financial Activities (INCORPORATING THE INCOME & EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2020
Note Unrestricted Restricted 2020 Total 2019 Total £ £ £ £
Income Donations & Legacies 4 275,244 159,957 435,201 367,056 Charitable activities 5 164,153 3,712,638 3,876,791 5,180,444 Investment income 502,957 134,032 636,989 600,214 Transfer from RSE Scotland SCIO on dissolution 32,972 - 32,972 - Total income 975,326 4,006,627 4,981,953 6,147,714
Expenditure Raising funds 7 (448,171) - (448,171) (396,316) Charitable activities 7 (1,080,816) (3,818,696) (4,899,512) (5,884,091) Total expenditure (1,528,987) (3,818,696) (5,347,683) (6,280,407) Net operating (deficit)/surplus (553,661) 187,931 (365,730) (132,693)
Gains / (losses) on Investment Assets Realised gains on investments 14 23,868 7,336 31,204 190,460 Unrealised (losses)/gains on investments 14 (1,637,867) (503,382) (2,141,249) (62,554) Unrealised (losses)/gains on investment property 13(a) (265,000) - (265,000) 3,083,141 Net income / (expenditure) (2,432,660) (308,115) (2,740,775) 3,078,354 Transfers between funds 19,20 597,628 (597,628) - -
Other recognised gains / (losses) Actuarial gains/(losses) on defined benefit pension funds 22 705,000 - 705,000 (735,000) Net movement in funds (1,130,032) (905,743) (2,035,775) 2,343,354
Reconciliation of funds: Balance brought forward at 1 April 2019 16,427,368 4,145,662 20,573,030 18,229,676 Balance carried forward at 31 March 2020 15,297,336 3,239,919 18,537,255 20,573,030
There were no acquired or discontinued activities in the year. The notes on pages 56 to 81 form part of the these financial statements.
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Group Cashflow Statement FOR THE YEAR ENDED 31 MARCH 2020
Note 2020 2019 £ £
Net Cash generated from operating activities (527,537) 1,423,887 Cash flows from investing activities Interest received 21,497 15,646 Dividends received 936,522 890,838 Purchase of property, plant and equipment (191,901) (98,631) Proceeds from sale of investments 6,314,077 2,795,644 Purchases of investments (6,432,559) (4,166,858) Net cash provided by investing activities 647,636 (563,361)
Cash flows from financing activities Legacies - 6,051 Change in cash in the year 120,099 866,577
Reconciliation of net cash flow to movement in funds Cash at beginning of year 3,834,489 2,967,912 Decrease)/increase in cash in the year 120,099 866,577 Cash at end of year 27 3,954,588 3,834,489
Net income/(expenditure) for the year (as per the statement of financial activities) Net income before transfers (3,945,132) 3,398,651 Losses/(gains) on investments 3,447,792 (236,386) Losses/(gains) on investment property 265,000 (3,083,141) Retirement benefit scheme current service cost 329,000 342,000 Retirement benefit scheme contributions (237,000) (250,000) Retirement benefit scheme finance cost 31,000 11,000 Retirement benefit past service cost 160,000 - Development Fund receipts - (6,051) Dividends receivable (936,521) (890,838) Interest receivable (21,497) (15,646) Depreciation 132,734 131,358 Loss on disposal of fixed assets 8,450 2,175 Decrease/(increase) in debtors (126,988) 1,629,615 (Decrease)/increase in creditors 365,625 391,150 Movement on provision for liabilities - - Net cash inflow/(outflow) from operating activities (527,537) 1,423,887
Reconciliation of net debt Cash at bank and in hand 3,954,588 3,834,489 Debt: due falling in one year - - Debt: due falling after one year - - Net Debt 3,954,588 3,834,489
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Notes to the Financial Statements
1. Accounting Basis Critical accounting estimates and areas of judgement The RSE is a public benefit entity, registered as a Scottish Charity(SC 000470). The Estimates, assumptions and judgement financial statements have been prepared in are necessarily part of the preparation £ sterling, in accordance with Accounting of the financial statements. and Reporting by Charities: Statement of There are no critical estimates or Recommended Practice (Charities SORP assumptions included in the financial (FRS102)) applicable to charities preparing statements. There are no critical judgements their accounts in accordance with the that have been made in applying the Financial Reporting Standard applicable in RSE’s accounting policies that would the UK and the Republic of Ireland (SORP), have a significant effect on the amounts with FRS102, and with the Charities and recognised in the financial statements. Trustee Investment (Scotland) Act 2005 and the Charity Accounts (Scotland) 2. Funds Regulations 2006 (as amended). The RSE’s funds are classified in accordance The financial statements comprise three with the definitions in SORP into Restricted primary financial statements: the statement Funds, where there are restrictions placed by of financial activities, which incorporates a donor as to the use of income or capital; the income and expenditure account, Designated Funds, where the Council has the balance sheet and the statement of set aside sums within its unrestricted cash flows. The financial statements funds for a particular purpose; and the have been prepared under the historical remaining General (unrestricted) Fund. cost accounting rules as modified to The classifications made are as follows: include the revaluation of investments. Going concern General Fund On the basis of the RSE’s reserves and A discretionary fund available to the Council cash position and the secured and to meet the ordinary activities of the Society. expected income for the next twelve Designated unrestricted funds months the Council considers that it is appropriate to prepare the financial Capital Asset Reserve Fund – representing statements on a going-concern basis. the book cost of the buildings at 22–24 George Street and 26 George Street, The Council has also considered the impact together with the 1997 building project of the Covid-19 pandemic on the financial loan to the RSE Scotland Foundation. position and future performance of the RSE. The financial budget was revised Building Fund – a fund to provide support for to take account of impacts on income non-routine maintenance and development streams and the Council was satisfied of the buildings in George Street. that the financial impacts could be more BP Fund – a fund to support research than absorbed by available reserves. and innovation in Scotland, arising Basis of consolidation from the transfer of assets from the BP Research Fellowship Trust. The consolidated financial statements are prepared using acquisition accounting Pension Reserve Fund – to provide for and include the financial statements of the a liability that may arise on eventual exit RSE and of two entities which are under its from the defined benefit pension schemes, control: the RSE Scotland Foundation and USS and Lothian Pension Fund. The the RSE Scotland SCIO. As the objectives Council decided that the reserve should of each of these entities are narrower than be at least equal to the FRS102 deficit those of the RSE, they have been treated each year, and should, over time, build as restricted funds. As at 31 March 2020, to reflect the estimated exit liabilities. the RSE Scotland SCIO was closed and Development Fund – to provide remaining net assets transferred to the RSE. development finance to implement
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Notes to the Financial Statements
the RSE Strategic Framework. Scotland, will be undertaken by the RSE. Restricted Income Fund – income funds 3. Accounting Policies received for a stated purpose for expenditure Income on specifically identified projects. Donations and legacies Restricted funds Subscription income for the subscription Robert Cormack Bequest – to year to October is recognised proportionally promote astronomical knowledge to the period to which it relates. Amounts and research in Scotland. relating to the period from 1 April to 31 Lessells Trust – to fund scholarships October are shown as deferred income. abroad for engineers. Revenue or capital grants from government Auber Bequest – to fund research in and other sources are recognised when Scotland and England by naturalised the RSE becomes entitled to the funds, the British citizens over 60 years of age. amount can be measured reliably, and it is Prizes Fund – to fund various prizes. probable that the income will be received. Fleck Bequest Fund – to promote interest, Donations of a recurring nature from other knowledge and appreciation of science charitable foundations and one-off gifts and its applications throughout Scotland. included in other income are taken to revenue Piazzi Smyth Legacy Fund – to fund when the RSE is entitled to the funds. £33k high altitude astronomical research. was donated by the RSE Scotland SCIO to the RSE at the year end following closure of the Sillitto Fund – to promote interest in SCIO and transfer of its activities to the RSE. physics among young people. Legacy income is recognised when CASS Fund – to fund academic/ there is sufficient evidence to provide industrial liaison. necessary probability that it will Retailing Seminar Fund – to fund a be received, and the value can be programme of seminars on retailing. measured with sufficient reliability. Edinburgh Drug Absorption Foundation Investment income Fund – to fund a series of conferences on the broad theme of Drugs Futures. Interest and dividends are accounted for in the year in which they are received. James Clerk Maxwell Fund – Balance of the funds received to facilitate the commissioning Income for charitable activities and maintenance of the statue of James Income for activities is accounted Clerk Maxwell in George Street. for on an accruals basis. Publication Patrick Meares Fund – a legacy received income receivable in foreign currencies to fund Fellows’ grants: to be applied one is converted into sterling at rates of third in support of visiting lecturers and exchange ruling at the date of receipt. two thirds in support for meetings. Income for research fellowships is Lillian and Herbert Smith Fund – a accounted for in the period in which the bequest from R H Smith to be used RSE becomes entitled to the resources. to support biomedical research. Income received for specific projects and RSE Scotland Foundation – a trust to received in advance of the commencement advance the education of the public in of the project, is deferred. If the project Scotland in science, engineering and were not to proceed as planned, the RSE technology, incorporating assets transferred would not be entitled to retain the funds. For from the Caledonian Research Fund (CRF). performance-related grants, where terms RSE Scotland SCIO – the SCIO was wound or conditions have not been, or may not be, up as at 31st March 2020 and its activities, met, the income is deferred and included including the RSE Young Academy of in the balance sheet as deferred income.
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Notes to the Financial Statements
Expenditure Expenditure incurred by the RSE Scotland Foundation in the improvements to 26 Expenditure and support costs George Street is held at cost and is being All expenditure is included on an depreciated on a straight-line basis from accruals basis, having regard to any the date of completion of the refurbishment constructive obligations created by over the period of the lease to the RSE multi-year grant commitments. Scotland Foundation to 30 June 2047. Where directly attributable, expenditure Costs incurred in preparation for is allocated to the relevant activity. redevelopment of the buildings in George Overhead and support costs are allocated Street are included in Fixed Assets as to activities on the basis of direct staff assets in course of construction. costs in each area of activity. Minor equipment up to £500 is Governance costs incurred in connection with the management of RSE assets, charged against revenue in the year organisational administration and of purchase. Computer and audio- compliance with constitutional and visual equipment is depreciated on a statutory requirements are included in straight-line basis over 3–20 years. support costs and allocated to activities. Investment property Cost of raising funds The RSE has ownership of buildings, for The cost of raising funds includes which part of the property is rented out to expenditure incurred in supporting the third parties. In accordance with FRS 102, Fellowship and incurred on fundraising the rented element of the property has and development initiatives, together with been valued by Ryden LLP on a market- fees paid to investment managers. value basis and, as such, the rented Grants payable element of the owned property has been recognised as an investment property. Grants payable are recognised as a liability when the RSE is under an actual Heritage Assets or constructive obligation to make a The historical records of the RSE transfer to a third party. Where grants are from its formation in 1783, including time-related to future periods and are to papers and minute books, are placed be financed by specific grants receivable on deposit with the National Library of in those future periods, they are treated Scotland, where they are catalogued and as liabilities of those periods and not as accessible to the public on request. liabilities at balance sheet date. Such grants are disclosed as future commitments. Portraits, furniture, publications and other Operating leases artefacts held in the George Street premises have been acquired in the ordinary course Rental costs under operating of business over the years prior to 2009 leases are charged on a straight- and have not been capitalised. These items line basis over the lease period. may have intrinsic historical value, but they Tangible fixed assets, are not held principally for their contribution depreciation and repairs to knowledge and culture nor directly in The RSE’s principal assets are its buildings furtherance of the charitable objectives of in George Street, Edinburgh. The cost of the RSE. Reliable estimates of cost or value buildings is depreciated on a straight-line are not available on a basis that would basis assuming a 50-year life. It is the policy justify the costs of establishing them. of the RSE Council tomaintain the buildings to The category of heritage assets shown in a high standard. Any permanent diminutions fixed assets comprises portraits acquired in value are reflected in the statement of since that time at cost and donated assets financial activities. Costs of repairs and at valuations carried out on acquisition. maintenance are charged against revenue. These assets are not depreciated.
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Notes to the Financial Statements
Intangible Assets Creditors This relates to the payments for the Trade and other creditors are measured at software development of a Customer the transaction price payable. Provisions Relations Management package. This asset are recognised when the RSE has a has not, as yet, been amortised. When present obligation as a result of a past the project is completed, the asset will be event that will probably result in the amortised over its useful economic life, transfer of economic benefits and that currently expected to be at least five years. obligation can be estimated reliably. Investments Provisions are measured at the best estimate of the amounts Investments are stated at their fair value at required to settle the obligation. the balance sheet date. Gains and losses on disposal and revaluation of investments Pensions are charged or credited in the statement of financial activities and allocated to funds The RSE participates in two defined benefit in accordance with their proportionate pension schemes, which are externally share of the investment portfolio. funded. The cost of providing pensions as calculated in accordance with FRS102 is Financial Instruments allocated over employees’ working lives The RSE only has financial assets and with the RSE and is included in staff costs. financial liabilities of a kind that qualify The Council decided in 2017 that as basic financial instruments. Basic membership of both schemes will be closed financial instruments are initially recognised to new entrants as soon as practicable. at transaction value and subsequently From 1 April 2017, the membership of measured at their settlement value. Lothian Pension Fund was closed to Financial assets and liabilities are new entrants and a defined contribution recognised when a contractual right or scheme opened for new staff. obligation arises and are stated gross, In the event that the RSE withdrew unless there is a legally enforceable completely from either of these schemes, right to set off the recognised amounts, there would be significant exit liabilities. which is intended to be exercised. The policy adopted is to build a reserve Loans receivable due over one year in a designated fund, in addition to the are stated at fair value, unless they FRS102 pension adjustments, to provide may be regarded as concessionary, for this risk over a period of time. when they are valued at cost. Pension fund assets arising from Debtors valuations under FRS 102 are recognised only to the extent that the asset is Trade and other debtors receivable within recoverable in the foreseeable future. one year are measured at the transaction price receivable, unless there is an Foreign exchange impairment. Provision for impairment Assets and liabilities denominated in is made when there is evidence that the foreign currencies are translated at the rate amounts due will not be collected in of exchange ruling at the balance sheet accordance with the related contract. date, while transactions arising during Prepayments are valued at the amount the year are translated at the spot rate prepaid. Accrued income is measured prevailing when the transaction arises. at the amount recoverable. Exchange gains or losses arising in the year are recognised in the statement of financial activities.
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Notes to the Financial Statements
4. Donations and Legacies
GROUP GROUP RSE RSE Note 2020 2019 2020 2019 £ £ £ £
Contributions from RSE Fellows Admission fees 16,200 16,800 16,200 16,800 Annual subscriptions 228,178 222,940 228,178 222,940 Fellows’ donations 4,298 6,293 4,298 6,293 Income tax recoverable under Gift Aid 6,121 5,000 6,121 5,000 254,797 251,033 254,797 251,033
Other Donations Friends of the RSE - corporate partners 12,000 14,000 12,000 14,000 Legacies - Unrestricted 6,309 - 6,309 - Other Income 2,138 3,460 2,138 3,460 Total unrestricted income 275,244 268,493 275,244 268,493 Legacies- restricted - 82,687 - 82,687 Lessells Trust additional receipt 159,957 15,876 159,957 15,876 Young Academy of Scotland – subscriptions & donations 9,237 13,458 - - Total restricted income 169,194 112,021 159,957 98,563 Total Donations & Legacies 6 444,438 380,514 435,201 367,056
In addition to the donations set out above, the RSE receives donations made specifically in support of activities which are included in activities income (See Note 28(b)).
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Notes to the Financial Statements
5. Incoming Resources from Charitable Activities
GROUP GROUP RSE RSE Note 2020 2019 2020 2019 £ £ £ £
Scottish Government Grant - STEM Research awards 1,127,231 1,245,337 1,127,231 1,245,337 Scottish Government Grant - Arts & Humanities awards 370,575 372,205 370,575 372,205 Scottish Government Grant - International Awards 104,294 202,004 104,294 202,004 Scottish Enterprise - Enterprise Fellowships 463,527 712,260 463,527 712,260 BBSRC Enterprise Fellowships 359,176 278,113 359,176 278,113 NERC Enterprise Fellowships 69 (686) 69 (686) STFC Enterprise Fellowships 71,603 58,481 71,603 58,481 IBioIC Enterprise Fellowships 10,540 - 10,540 - Scottish Government - Unlocking Ambition 335,648 1,052,794 335,648 1,052,794 Charitable Trusts 2,415 7,062 65,092 137,600 Promotion of research and innovation – restricted 2,845,078 3,927,570 2,907,755 4,058,108 Scottish Government grant - Engagement & expertise 604,100 626,703 604,100 626,703 Scottish Government Grant - International activities 192,486 256,751 192,486 256,751 Public Engagement Activities 8,297 5,272 8,297 5,272 International Income - 5,204 - 5,204 Journal Publications 154,908 230,867 - - Conference facilities letting 193,456 386,552 - - Total restricted income 3,998,325 5,438,919 3,712,638 4,952,038 Policy and advice income 14,150 28,691 14,150 28,691 Public Engagement Activities 21,712 68,320 21,712 68,320 Journal publications 3,330 2,030 128,291 131,395 Sundry Income - 6,905 - - Total unrestricted income 39,192 105,946 164,153 228,406 Total Incoming Resources from Charitable Activities 6 4,037,517 5,544,865 3,876,791 5,180,444
Further information relating to grant, donations and receipts and their application is set out in note 29.
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Notes to the Financial Statements
6. Income by Source
Promotion Other Total Donation Research & Charitable Charitable Rental Investment GROUP (Note 4) Activities Activities Activities Income Income Total 2020 £ £ £ £ £ £ £
Fellows 249,408 - - - - - 249,408 Young Academy Members 9,237 - - - 9,237 Individuals 7,527 - 5,159 5,159 - - 12,686 Legacies 6,309 - - - - - 6,309 Companies 12,000 - - - - - 12,000 Charitable Trusts 159,957 2,415 38,999 41,414 - - 201,371 Scottish Government - 1,833,454 900,880 2,734,334 - - 2,734,334 Public Sector Bodies - 904,916 - 904,916 - - 904,916 Journal Publications - - 158,238 158,238 - - 158,238 Conference Facilities - - 193,456 193,456 - - 193,456 Rental Income - - - - 244,843 - 244,843 Dividends & Interest - - - - - 958,020 958,020 Year ended 31 March 2020 444,438 2,740,785 1,296,732 4,037,517 244,843 958,020 5,684,818
GROUP 2019
Fellows 258,198 - - - - - 258,198 Individuals 8,503 - 6,030 6,030 - - 14,533 Legacies 82,687 - - - - - 82,687 Companies 14,000 - 24,885 24,885 - - 38,885 Charitable Trusts 17,126 7,062 73,777 80,839 - - 97,965 Scottish Government - 2,670,336 1,090,458 3,760,794 - - 3,760,794 Public Sector Bodies - 1,048,168 4,700 1,052,868 - - 1,052,868 Journal Publications - - 232,897 232,897 - - 232,897 Conference Facilities - - 386,552 386,552 - - 386,552 Rental Income - - - - 255,454 - 255,454 Dividends & Interest - - - - - 906,484 906,484 Year ended 31 March 2019 380,514 3,725,566 1,819,299 5,544,865 255,454 906,484 7,087,317
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Notes to the Financial Statements
7. Expenditure
Support Support Direct costs Total Direct costs Total costs (Note 11) 2020 costs (Note 11) 2019 GROUP £ £ £ £ £ £
Costs of Generating Funds Fundraising 15,194 191,630 206,824 3,571 180,703 184,274 Membership activities 19,136 196,398 215,534 14,018 172,339 186,357 Building management 54,664 115,087 169,751 5,750 95,648 101,398 Investment fees 42,533 - 42,533 42,259 - 42,259 Total costs of generating funds 131,527 503,115 634,642 65,598 448,690 514,288
Charitable Activities Research and prizes 1,604,799 281,626 1,886,425 1,944,831 280,566 2,225,397 Enterprise and innovation 1,102,770 333,841 1,436,611 1,894,299 224,231 2,118,530 Policy 33,183 518,825 552,008 60,014 449,824 509,838 International 51,729 189,313 241,042 98,612 258,997 357,609 Public Engagement 70,118 690,918 761,036 295,447 730,079 1,025,526 Conferencing Letting 42,456 203,694 246,150 - - - Development 631 15,529 16,160 - - - Publications 37,983 - 37,983 117,923 60,242 178,165 Young Academy of Scotland 12,649 92,452 105,101 16,656 62,184 78,840 Total cost of charitable activities 2,956,318 2,326,198 5,282,516 4,427,782 2,066,123 6,493,905 Total Expenditure - Group 3,087,845 2,829,313 5,917,158 4,493,380 2,514,813 7,008,193
Support Support Direct costs Total Direct costs Total costs (Note 11) 2020 costs (Note 11) 2019 RSE £ £ £ £ £ £
Costs of Generating Funds Fundraising 15,194 191,630 206,824 3,571 180,703 184,274 Membership activities 19,136 196,398 215,534 14,018 172,339 186,357 Building management ------Investment fees 25,813 - 25,813 25,686 - 25,686 Total costs of generating funds 60,143 388,028 448,171 43,275 353,042 396,317
Charitable Activities Research and prizes 1,502,762 279,406 1,782,168 1,861,497 278,437 2,139,934 Enterprise and innovation 1,102,770 333,841 1,436,611 1,890,068 224,231 2,114,299 Policy 33,183 518,825 552,008 60,014 449,824 509,838 International 51,729 189,313 241,042 98,612 258,997 357,609 Events 70,118 690,918 761,036 96,660 516,904 613,564 Conferencing Letting ------Development 630 15,529 16,159 - - - Publications 8,036 - 8,036 41,541 35,122 76,663 Young Academy of Scotland 102,452 - 102,452 72,184 - 72,184 Total cost of charitable activities 2,871,680 2,027,832 4,899,512 4,120,576 1,763,515 5,884,091 Total Expenditure - RSE 2,931,823 2,415,860 5,347,683 4,163,851 2,116,557 6,280,408 Support costs as set out in note 11 have been allocated to activities in proportion to the employment costs in each area of the charity.
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Notes to the Financial Statements
8. Grants Payable
GROUP GROUP RSE RSE Note 2020 2019 2020 2019 £ £ £ £
Promotion of research 9 1,874,692 2,225,397 1,772,654 2,139,934 Enterprise Fellowships 10 1,382,609 2,118,533 1,382,609 2,114,299 3,257,301 4,343,930 3,155,263 4,254,233
9. Research and Prizes
GROUP GROUP RSE RSE 2020 2019 2020 2019 Note £ £ £ £
Promotion of Research Scottish Government STEM Awards 1,035,440 1,106,621 1,035,440 1,106,621 Arts & Humanities Grants 265,920 330,674 265,920 330,674 BP Research Fellowship Trust 31,615 62,056 31,615 62,056 CRF European Fellowships - (404) - (404) CRF Health Happiness and Wellbeing 7,565 24,143 7,565 24,143 CRF Personal Research Research Fellowships 38,067 80,621 38,067 80,621 CRF Post graduate studentships 102,038 83,334 - - Robert Cormack Bequest 5,265 7,680 5,265 7,680 Piazzi Smyth Bequest - - - - John Moyes Lessells Scholarship 14,898 28,236 14,898 28,236 Auber Bequest Awards 11,000 - 11,000 - Henry Dryerre Scholarship - 6,596 - 6,596 Lillian & Herbert Smith Award 10,000 - 10,000 - International Awards 65,785 200,693 65,785 200,693 Prizes & Grant 14,085 10,011 14,085 10,011 Other direct costs 3,123 4,570 3,123 4,570 1,604,801 1,944,831 1,502,763 1,861,497 Support costs 269,891 280,566 269,891 278,437 1,874,692 2,225,397 1,772,654 2,139,934
An analysis of institutions and individuals awards made under this expenditure heading is included in the Society’s Review, obtainable from the address on the back cover. All awards are made to individuals.
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Notes to the Financial Statements
10. Enterprise and Innovation
GROUP GROUP RSE RSE 2020 2019 2020 2019 Note £ £ £ £
Scottish Enterprise Fellowships 431,395 588,257 431,395 588,257 STFC Fellowships 46,768 54,456 46,768 54,453 NERC Fellowships - (697) - (697) BBSRC Fellowships 312,443 246,708 312,443 246,708 IBioIC Fellowships 23,431 - 23,431 - Scottish Government Unlocking Ambition 88 1,000,049 88 1,000,049 BP Enterprise Fellowships 278,510 1,298 278,510 1,298 Support costs 289,974 224,231 289,974 224,231 1,382,609 2,114,302 1,382,609 2,114,299 Business Innovation Forum - 4,231 - - Support costs - - - - 1,382,609 2,118,533 1,382,609 2,114,299
11. Support Costs
2020 2019 TOTAL Support Governance TOTAL Support Governance GROUP Note £ £ £ £ £ £
Staff costs (including secondments) 12 1,791,315 1,756,403 34,912 1,711,526 1,665,133 46,393 Staff training, agency and recruitment costs 53,729 53,729 - 25,199 25,199 - Other staff costs 53,474 53,474 - 26,633 26,633 - Non-cash pension cost adjustments 283,000 283,000 - 103,000 103,000 - 2,181,518 2,146,606 34,912 1,866,358 1,819,965 46,393
Other Costs Establishment expenses 235,366 229,038 6,328 309,660 298,958 10,702 Computer and equipment costs 84,171 78,886 5,285 44,390 38,431 5,959 Communications, stationery and printing costs 50,645 47,329 3,316 40,674 28,306 12,368 Travel and subsistence, hospitality 8,721 4,278 4,443 23,777 18,231 5,546 Publicity 71,013 66,752 4,261 56,037 50,620 5,417 Miscellaneous 4,057 3,441 616 9,629 5,289 4,340 Professional fees and subscriptions 39,894 7,637 32,257 36,599 8,149 28,450 Audit fee 21,194 - 21,194 19,310 - 19,310 Depreciation 132,734 129,393 3,341 108,379 103,367 5,012 647,795 566,754 81,041 648,455 551,351 97,104 Total Support Costs 2,829,313 2,713,360 115,953 2,514,813 2,371,316 143,497
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Notes to the Financial Statements
11. Support Costs (continued)
2020 2019 TOTAL Support Governance TOTAL Support Governance RSE Note £ £ £ £ £ £
Staff costs (including secondments) 12 1,479,805 1,444,893 34,912 1,444,524 1,398,131 46,393 Staff training, agency and recruitment costs 53,729 53,729 - 25,199 25,199 - Other staff costs 53,474 53,474 - 26,633 26,633 - Non-cash pension cost adjustments 283,000 283,000 - 103,000 103,000 - 1,870,008 1,835,096 34,912 1,599,356 1,552,963 46,393
Other Costs Establishment expenses 210,946 204,618 6,328 262,668 251,966 10,702 Computer and equipment costs 88,082 82,797 5,285 42,146 36,187 5,959 Communications, stationery and printing costs 55,260 51,944 3,316 26,635 14,267 12,368 Travel and subsistence, hospitality 8,270 4,278 3,992 14,371 9,276 5,095 Publicity 71,013 66,752 4,261 56,036 50,619 5,417 Miscellaneous 3,633 3,415 218 9,143 4,803 4,340 Professional fees and subscriptions 39,469 7,212 32,257 36,599 8,149 28,450 Audit fee 13,485 - 13,485 11,862 - 11,862 Depreciation 55,694 52,353 3,341 57,741 52,729 5,012 545,852 473,369 72,483 517,201 427,996 89,205 Total Central Costs 2,415,860 2,308,465 107,395 2,116,557 1,980,959 135,598
Support costs as set out in note 11 have been allocated to activities in proportion to the employment costs in each area of activity as set out in note 7.
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Notes to the Financial Statements
12. Employees
Total Support Funded by Funded by Funded by Payroll costs Foundation SCIO RSE 2020 £ £ £ £ £
Wages and salaries 1,417,245 1,417,245 184,666 57,765 1,174,814 Social security costs 126,002 126,002 26,451 5,230 94,321 Other pension costs 248,068 248,068 22,239 15,159 210,670 1,791,315 1,791,315 233,356 78,154 1,479,805
Total Support Funded by Funded by Funded by Payroll costs Foundation SCIO RSE 2019 £ £ £ £ £
Wages and salaries 1,332,505 1,332,505 166,807 37,294 1,128,404 Social security costs 109,649 109,649 14,951 3,177 91,521 Other pension costs 269,372 269,372 35,338 9,435 224,599 1,711,526 1,711,526 217,096 49,906 1,444,524
The average number of employess of the RSE, included those employed under joint contracts with the RSE Scotland Foundation and the RSE Scotland SCIO was 46 (2019:41). One member of staff earned over £70,000 per year and two others earned over £60,000. During the year, there was a change of directors. Initially three were members of a defined benefit pension scheme. This reduced to one. The total remuneration of the key management personnel (the Chief Executive, the Director of Finance & Corporate Services, the Director of Programmes and the Director of Business Development) was £299,124, including pension contributions of £43,436 (2019: £350,379,including pension contributions of £55,305).
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Notes to the Financial Statements
13(a). Tangible Fixed Assets
Investment 22–26 Property George Within 22– Street 26 George Assets Purchase St Market Leasehold Computer & under Cost Value Improvements Equipment Construction Total GROUP £ £ £ £ £ £
Cost At 1 April 2019 2,180,741 3,425,000 2,136,070 375,109 61,902 8,178,822 Additions - - - 75,964 1,500 77,464 Disposals - - - (79,459) (8,450) (87,909) Transfer ------Revaluation - (265,000) - - - (265,000) At 31 March 2020 2,180,741 3,160,000 2,136,070 371,614 54,952 7,903,377 Depreciation At 1 April 2019 872,297 - 882,908 330,750 - 2,085,955 Disposals - - - (79,459) - (79,459) Charge for the year 55,010 - 44,467 33,257 - 132,734 Transfer ------At 31 March 2020 927,307 - 927,375 284,548 - 2,139,230 Net Book Value At 31 March 2020 1,253,434 3,160,000 1,208,695 87,066 54,952 5,764,147 At 31 March 2019 1,308,444 3,425,000 1,253,162 44,359 61,902 6,092,867
Investment 22–26 Property George Within 22– Street 26 George Assets Purchase St Market Leasehold Computer & under Cost Value Improvements Equipment Construction Total RSE £ £ £ £ £ £
Cost At 1 April 2019 2,180,741 3,425,000 - 95,155 - 5,700,896 Additions ------Disposals ------Transfer ------Revaluation - (265,000) - - - (265,000) At 31 March 2020 2,180,741 3,160,000 - 95,155 - 5,435,896 Depreciation At 1 April 2019 872,297 - - 91,054 - 963,351 Disposals ------Charge for the year 55,010 - - 684 - 55,694 Transfer - - - - - At 31 March 2020 927,307 - - 91,738 - 1,019,045 Net Book Value At 31 March 2020 1,253,434 3,160,000 - 3,417 - 4,416,851 At 31 March 2019 1,308,444 3,425,000 - 4,101 - 4,737,545
The RSE has ownership of buildings, for which part of the property is rented out to third parties. In accordance with FRS102, the rented element of the property has been valued as at 31 March 2020 by Rydens LLP on a market-value basis and as such the rented element of the owned property has been recognised as an investment property. Group Assets in the course of construction represent professional fees paid to date in respect of the planned redevelopment of the premises at George Street.
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Notes to the Financial Statements
13(b). Heritage Fixed Assets
GROUP RSE £ £
Before 2009 7,795 7,795 2013 15,135 15,135 2014 990 990 2016 19,000 19,000 2017 4,000 4,000 At 1 April 2019 46,920 46,920 Additions - - At 31 March 2020 46,920 46,920
13(c). Intangible Assets
GROUP RSE £ £
Cost At 1 April 2019 68,111 68,111 Additions 114,437 114,437 Disposals - - Transfer - - Revaluation - - At 31 March 2020 182,548 182,548 Depreciation At 1 April 2019 - - Disposals - - Charge for the year - - Transfer - - At 31 March 2020 - - Net Book Value As at 31 March 2020 182,548 182,548 As at 31 March 2019 68,111 68,111
The intangible asset relates to the payments for the software development of a customer relations management package. Further capital commitments in relation to this project are detailed in Note 25(b) Financial Commitments - Capital.
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Notes to the Financial Statements
14. Fixed Assets Investments
Investments Proceeds Fair Value Value at 1 Made at on Sale of Realised Unrealised at 31 March April 2019 Cost Investments Gain/(Loss) Gain/(Loss) 2020 £ £ £ £ £ £
Managed Funds 4,774,414 956,688 (929,535) 112,809 (794,411) 4,119,965 Fixed interest 2,904,654 1,272,426 (1,788,652) (32,807) (174,004) 2,181,617 UK equities 6,976,660 1,731,599 (1,256,190) (30,853) (1,172,834) 6,248,382 Cash deposits 307,344 (3,812,711) 3,956,471 (17,945) - 433,159 RSE 14,963,072 148,002 (17,906) 31,204 (2,141,249) 12,983,123 Managed Funds 3,084,591 879,192 (606,573) 73,018 (547,592) 2,882,636 Fixed interest 1,938,768 287,263 (920,691) (18,729) (58,539) 1,228,072 UK equities 4,593,077 988,626 (841,958) (33,909) (740,419) 3,965,417 Cash deposits 90,355 (2,155,081) 2,357,606 (11,577) - 281,303 RSESF Caledonian Research Fund 9,706,791 - (11,616) 8,803 (1,346,550) 8,357,428 GROUP 24,669,863 148,002 (29,522) 40,007 (3,487,799) 21,340,551
The gain on sale of investments measured against their historical cost was £460,028 (2019:Loss £186,353). The historical cost of investments was £22,116,157 (2019: £21,555,593). (RSE£13,624,860; 2019: £13,268,840). There were no investments comprising more than 5% of the market value of the portfolio. All investments are held within the UK.
15. Fixed Assets - Loan Receivable
2020 2019 RSE £ £
Due after one year 1,235,824 1,282,632
16. Current Assets - Debtors
GROUP GROUP RSE RSE 2020 2019 2020 2019 £ £ £ £
General Debtors 256,105 121,304 184,736 43,008 Loan Receivable due within one year - - 46,808 46,808 Prepayments and accrued income 33,745 41,322 30,981 35,498 Income tax recoverable 6,122 6,358 6,122 6,358 295,972 168,984 268,647 131,672
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17. Creditors: Amounts Falling Due Within One Year
GROUP GROUP RSE RSE 2020 2019 2020 2019 £ £ £ £
General creditors 399,391 182,197 347,533 135,375 Research awards payable 851,069 568,171 851,069 568,171 Accruals 144,732 141,082 87,356 68,270 VAT Payable 16,945 32,693 - - Other taxes and social security 30,665 32,862 30,665 32,862 Deferred Income 638,492 705,216 638,492 705,216 Event income deferred 10,000 12,947 10,000 12,947 Advance receipts - Journals 54,673 105,175 - - RSE Scotland Foundation Current Account - - 1,663,150 1,589,986 RSE Scotland SCIO Current Account - - - 14,340 2,145,967 1,780,343 3,628,265 3,127,167
At 1 Received in Recognised in At 31 March April 2019 Year Year 2020 Deferred income and advance receipts analysis £ £ £ £
Scottish Government - 2,703,000 (2,398,684) 304,316 BBSRC Enterprise Fellowships 198,982 349,363 (354,301) 194,044 Unlocking Ambition Fellowships 370,658 38,276 (408,934) - Fellows’ Subscription Income 135,576 209,398 (205,301) 139,673 Young Academy Subscription Income - 459 - 459 705,216 3,300,496 (3,367,220) 638,492 Journal receipts 105,175 104,407 (154,909) 54,673 Event income 12,947 10,000 (12,947) 10,000
18. General Fund
GROUP RSE RSE £ £
At 1 April 2019 121,743 121,743 Net movement in funds for the year from statement of financial activities 505,525 505,525 At 31 March 2020 627,268 627,268
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Notes to the Financial Statements
19. Unrestricted Funds
At At 1 April Investment Other Gains/ 31 March 2019 income income Expenditure (losses) Transfers 2020 GROUP & RSE £ £ £ £ £ £ £
Capital Asset Reserve 2,979,746 - - - - (101,818) 2,877,928 Development Fund 2,894,779 114,073 - (127,208) (426,211) - 2,455,433 Building Fund 2,541,400 100,148 - (4,578) (374,181) - 2,262,789 Pension Reserve Fund 1,245,888 49,096 - (2,244) (183,438) - 1,109,302 BP Research Fund 3,560,671 140,314 - (63,229) (524,253) - 3,113,503 Young Academy Fund - - 32,972 - - - 32,972 Investment Property Revaluation Reserve (Note 13a) 3,083,141 - - - (265,000) - 2,818,141 Designated Funds Total 16,305,625 403,631 32,972 (197,259) (1,773,083) (101,818) 14,670,068 General Fund 121,743 48,021 281,463 (1,331,727) 599,084 908,684 627,268 Total Unrestricted 16,427,368 451,652 314,435 (1,528,986) (1,173,999) 806,866 15,297,336
The transfers represent the release from the Capital Asset Reserve of a total of £101,818 (2019: £101,818) to match the depreciation of the buildings and the amount of capital repayment of the loan to the Foundation. Following a review of the original terms of the Dryerre Fund, it was reclassified from Restricted funds to the General Fund and the amount of £597,628 was transferred to the RSE’s General Fund and is included in the balance of £908,684.
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20. Restricted Funds
At At 1 April Investment Other Gains/ 31 March 2019 income income Expenditure (losses) Transfers 2020 GROUP & RSE £ £ £ £ £ £ £
Robert Cormack Bequest 112,642 4,439 2,414 (7,048) (16,585) - 95,862 Lessells Trust 564,474 22,244 159,957 (23,842) (83,110) - 639,723 Auber Bequest 676,007 26,639 - (21,711) (99,531) - 581,404 Prizes Fund 90,078 3,550 - (1,427) (13,263) - 78,938 Dryerre Fund 597,628 - - - - (597,628) - Fleck Bequest Fund 154,631 6,093 - (7,550) (22,767) - 130,407 Piazzi Smyth Legacy Fund 15,819 623 - (251) (2,329) - 13,862 Sillitto Fund 44,784 1,765 - (1,469) (6,594) - 38,486 Other 41,389 1,631 - (656) (6,094) - 36,270 Edinburgh Drug Absorption Foundation 79,151 561 - - - - 79,712 James Clerk Maxwell Fund 33,168 235 - (2,870) - - 30,533 Patrick Meares Fund 66,625 472 - (5,200) - - 61,897 Lillian & Herbert Smith Funds 1,669,266 65,780 - (36,448) (245,773) - 1,452,825 Restricted Income Fund - - 3,710,224 (3,710,224) - - - RSE 4,145,662 134,032 3,872,595 (3,818,696) (496,046) (597,628) 3,239,919 RSE Scotland Foundation 11,265,476 372,336 530,530 (566,825) (1,337,747) (176,266) 10,087,504 RSE Scotland SCIO 26,385 - 9,237 (2,650) - (32,972) - GROUP 15,437,523 506,368 4,412,362 (4,388,171) (1,833,793) (806,866) 13,327,423
“Prizes Fund” comprises The Keith Fund, The Neill Fund, The Makdougall-Brisbane Fund, The Gunning-Victoria Fund, The James Scott Prize Fund, The Bruce-Preller Lecture Fund, The Dr DA Berry Fund, The Henry Duncan Prize Lecture Fund and The BP Prize Lecture in the Humanities Fund.
“Others” comprises the Retailing Seminars Fund and The CASS Fund (See note 2). The Restricted Income Fund represents restricted income received and expended in the year. The University of Glasgow is entitled to 10% of additional amounts received by the RSE from the Lessells Trust.
RSE Scotland Foundation funds are treated as restricted in the consolidated accounts and comprise the CRF Fund of £9,156,707 (2019: £10,305,775) and the balance of the Foundation General Fund of £430,267 (2019: £959,702).
Following a review of the original terms of the Dryerre Fund, it was reclassified from Restricted funds to the General Fund and the amount of £597,628 was transferred.
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Notes to the Financial Statements
21. Analysis of Assets Between Funds
Designated Restricted General Funds Funds 2020 2019 GROUP £ £ £ £ £
Funds balance at 31 March 2020 are represented by: Fixed assets 186,074 4,460,245 1,347,296 5,993,615 6,207,898 Investments 2,281,034 7,634,309 11,425,208 21,340,551 24,669,863 Loan to RSE Scotland Foundation - 1,235,824 (1,235,824) - - Current assets 221,839 - 74,133 295,972 168,984 RSE Scotland Foundation Current Account (938,528) - 938,528 - - RSE Scotland SCIO Current Account - - - - - Deposits - 1,339,690 2,246,192 3,585,882 3,542,923 Cash 259,725 - 108,981 368,706 291,566 Current liabilities (568,876) - (1,577,091) (2,145,967) (1,780,343) Pension fund liability (814,000) - - (814,000) (1,236,000) 627,268 14,670,068 13,327,423 28,624,759 31,864,891
Designated Restricted General Funds Funds 2020 2019 RSE £ £ £ £ £
Fund balances at 31 March 2020 are represented by Fixed assets 186,074 4,460,245 - 4,646,319 4,852,576 Investments 2,281,036 7,634,309 3,067,778 12,983,123 14,963,072 Loan to RSE Scotland Foundation - 1,235,824 - 1,235,824 1,282,632 Current assets 268,647 - - 268,647 131,672 RSE Scotland Foundation current account (938,528) - (724,622) (1,663,150) (1,589,986) RSE Scotland SCIO current account - - - - (14,340) Deposits - 1,339,690 2,246,192 3,585,882 3,542,923 Cash 259,725 - - 259,725 163,322 Current liabilities (615,686) - (1,349,429) (1,965,115) (1,522,841) Pension fund liability (814,000) - - (814,000) (1,236,000) 627,268 14,670,068 3,239,919 18,537,255 20,573,030
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22. Pension Costs (a) Universities Superannuation Scheme
The RSE participates in the University Superannuation Scheme (USS, which is a funded defined benefit arrangement. Under UK pension legislation, the RSE is responsible for funding the Scheme’s benefits and for paying contributions to make up any shortfall between assets and the liabilities of the Scheme. The Scheme’s liabilities are assessed at least every three years by the Scheme’s actuary. It is the RSE’s funding policy to annually contribute an amount agreed between the organisation and the Trustees of the Scheme in accordance with UK legislative requirements if a funding deficit exists. Because of the mutual nature of the Scheme, the Scheme’s assets are not hypothecated to individual institutions and a scheme-wide contribution rate is set. The RSE is therefore exposed to actuarial risks associated with other institutions’ employees. The amount of contributions required depends on the assumptions used by the actuary. The volatility of the Scheme’s liabilities against the assets held impacts on the RSE’s balance sheet.
The last formal actuarial valuation of USS was as at 31 March 2017. At the valuation date the market value of the Scheme’s assets was £60 billion and the value of the Scheme’s technical provisions was £67.5 billion. The value of the assets represents 89% of the benefits that had accrued to members, after allowing for expected future increases in earnings. The 2017 valuation incorporates the effect of the benefit changes due with effect from 1 April 2019.
For the period from 1 April 2019 to 31 March 2034 the Employers’ deficit contributions will amount to 5% p.a. of salaries in addition to the employer’s share of the cost of accrual in the defined benefit section, together with the employer contribution to the defined contribution section and the expenses of the administering the Scheme, including PPF levies.
At 31 March 2020, the RSE had one active member (2019: 2) and nine deferred or pensioner members (2019:8) participating in the scheme. The contribution rate payable by the RSE in the year was on average 21% (2019: 18.0%) of pensionable salaries, amounting to £18,919 (2019: £20,258).
For employers participating in non-segregated multi-employer schemes such as USS, where it is not possible to identify a liability share, FRS102 required employers to record the net present value of any deficit contributions payable in the balance sheet, and an allowance must also be made in the P&L for interest accruing on the deficit over the year. Where it is possible to identify a liability share, a full FRS102 disclosure must be produced. Based on information provided by USS and the following assumptions, an RSE-specific valuation on an FRS102 basis has been prepared that more fully reflects the risk to the RSE of its status as a small employer in the scheme. All monetary figures are shown in £’000s sterling. No assets included in the fair value of plan assets are the entity’s own financial instruments or are properties occupied or used by the entity.
31 March 31 March 2020 2019
Discount rate 2.31% 2.36% Salary increases 2.00% 2.00% Inflation RPI 3.10% 3.63% Inflation CPI 2.60% 3.13%
Male mortality assumptions at 31 March 2020 and 2019 were: 96.5% S1NMA with CMI 2016, 1.8% p.a. long-term improvement. Female mortality assumptions at 31 March 2020 and 2019 were: 101.3% RFV00 with CMI 2016, 1.6% p.a. long- term improvement.
The major categories of USS Scheme assets as a percentage of total plan assets. 2020 2019
Equities 28% 38% Property 4% 4% Bonds 46% 33% Alternatives 18% 22% Other 4% 3% 100% 100%
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Notes to the Financial Statements
22. Pension Costs (continued) The RSE Pension Fund liability arising from the USS scheme at 31 March and the movements of its component parts comprise:
Net Net 2020 (liability)/ 2019 (liability)/ USS Pension Fund asset/ Assets Obligations asset Assets Obligations asset (liability) £ £ £ £ £ £
Fair value of plan assets 1,460 - 1,460 2,092 - 2,092 Present value of liabilities - 2,503 (2,503) - 2,475 (2,475) Opening Position as at 31 March 1,460 2,503 (1,043) 2,092 2,475 (383) Service cost Current service cost - 50 (50) - 29 (29) Net interest Interest income on plan assets 33 - 33 53 - 53 Interest cost on defined benefit obligation - 58 (58) - 63 (63) Total net interest 33 58 (25) 53 63 (10) Total defined benefit cost recognised in Profit or (Loss) 33 108 (75) 53 92 (39) Cashflows Plan participants’ contributions 9 9 - 11 11 - Employer contributions 19 - 19 25 - 25 Benefits paid (143) (143) - (80) (80) - Expected closing position 1,378 2,477 (1,099) 2,101 2,498 (397) Remeasurements Changes in demographic assumptions ------Changes in financial assumptions - (186) 186 - 5 (5) Return on assets excluding amount included in net interest 99 - 99 (641) - (641) 99 (186) 285 (641) 5 (646) Fair value of plan assets 1,477 - 1,477 1,460 - 1,460 Present value of funded liabilities - 2,291 (2,291) - 2,503 (2,503) Closing position as at 31 March 1,477 2,291 (814) 1,460 2,503 (1,043)
(b) Lothian Pension Fund The RSE also participates in the Lothian Pension Fund, a defined benefit pension scheme established under Local Government Pension Fund Regulations. This scheme has determined that it is possible to ascertain the share of assets and liabilities relating to the individual admitted bodies. The assets of the scheme are held in a separate trustee-administered fund. The fund is valued every three years by a professionally qualified actuary using the projected unit method, the rates of contributions payable being determined by the trustee on the advice of the actuaries. In the intervening years the actuaries review the progress of the scheme. As at the latest valuation date of 31 March 2017, the market value of the scheme’s assets was £6,598 million and the value of past service liabilities was £6,743 million. The value of the assets represented 98% of the benefits that had accrued to members, after allowing for expected future increases in earnings. The contribution rate payable by the RSE in 2019–20 was 27.5% (2018–19: 24.3%). The actuary has confirmed that it is appropriate to take the pension charge to be equal to the actual contribution paid during the year, amounting to £210,516 (2019: £221,665).
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22. Pension Costs (continued) The RSE Pension Fund liability arising from the Lothian Pension Fund at 31 March and the movements of its component parts comprise:
Net Net 2020 (liability)/ 2019 (liability)/ Lothian Pension Fund Assets Obligations asset Assets Obligations asset asset/(liability) £ £ £ £ £ £
Fair value of plan assets 6,808 - 6,808 6,037 - 6,037 Present value of liabilities - 7,001 (7,001) - 6,052 (6,052) Opening Position as at 31 March 6,808 7,001 (193) 6,037 6,052 (15) Service cost Current service cost - 439 (439) - 313 (313) Net interest Interest income on plan assets 173 - 173 166 - 166 Interest cost on defined benefit obligation - 179 (179) - 167 (167) Total net interest 173 179 (6) 166 167 (1) Total defined benefit cost recognised in Profit or (Loss) 173 618 (445) 166 480 (314)
Cashflows Plan participants’ contributions 48 48 - 58 58 - Employer contributions 218 - 218 225 - 225 Benefits paid (69) (69) - (81) (81) - Expected closing position 7,178 7,598 (420) 6,405 6,509 (104) Remeasurements Changes in demographic assumptions - - - - - Changes in financial assumptions - (634) 634 - 492 (492) Other experience - (24) 24 - - - Return on assets excluding amounts included in net interest (238) - (238) 403 - 403 (238) (658) 420 403 492 (89) Fair value of plan assets 6,940 - 6,940 6,808 - 6,808 Present value of funded liabilities - 6,940 (6,940) - 7,001 (7,001) Closing position as at 31 March 6,940 6,940 - 6,808 7,001 (193)
Principal actuarial assumptions (expressed as weighted averages) at the year-end were as follows: 2020 2019
Inflation/pension increase rate 1.8% 2.4% Salary increase rate 3.4% 4.1% Discount rate 2.3% 2.5%
The assumptions relating to longevity underlying the pension liabilities at the balance sheet date as based on the Fund’s Vita Curves including an allowance for future improvements in longevity in line with the CMI2016 model with an allowance for smoothing of recent mortality experience and long-term rate of 1.25% p.a.
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Notes to the Financial Statements
22. Pension Costs (continued)
The major categories of LPF scheme assets 31 March 31 March as a percentage of total plan assets: 2020 2019
Equities 36% 38% Bonds 56% 56% Property 4% 4% Cash 4% 2% 100% 100%
(c) Summary of Asset/(Liability) Position
2020 Net 2019 Net (liability)/ (liability)/ USS Pension Fund asset/ Assets Obligations asset Assets Obligations asset (liability) £ £ £ £ £ £
USS Pension Fund 1,477 2,291 (814) 1,460 2,503 (1,043) Lothian Pension Fund 6,940 6,940 - 6,808 7,001 (193) Closing Position as at 31 March 8,417 9,231 (814) 8,268 9,504 (1,236)
(d) Total Pension Charge for the Year
31 March 31 March 2020 2019
Total pension charge for the year, before the FRS102 pension movements 210,670 269,372 210,670 269,372
23. Transactions with Related Parties
(a) Council Members No member of Council received any payments other than reimbursements of expenditure on travel and subsistence costs actually and necessarily incurred in carrying out their duties as Councillors and Officers. The aggregate of such reimbursements, including payments on behalf of six (2019: six) Council members, for UK and international activities amounted to £5,532 (2019: £8,640).
(b) Other related parties The RSE President is Chair of the Carnegie Trust for the Universities of Scotland, which administers postgraduate scholarships on behalf of the Foundation. In 2019–20, the Foundation made payments in support of the studentship scheme amounting to £102,038 (2019: £83,334).
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24. Connected Charities
(a) RSE Scotland Foundation The RSE Scotland Foundation is a charitable trust, recognised in Scotland as Scottish Charity Number SC024636. It was created in March 1996, with the objective of advancing the education of the public in Scotland in science and engineering and in so doing, to conserve the scientific and cultural heritage of Scotland. The President, General Secretary, Treasurer, Curator and a Vice-President of the RSE are ex officiis Trustees of the Foundation, which draws on the resources of the RSE in carrying out its objectives. The Foundation also has five nominated Trustees appointed by the RSE Council. The Foundation became publisher of the RSE’s journals under a Publications Right License effective from 1 January 1997. On 1 July 1997, the RSE granted to the Foundation a 50-year lease over 26 George Street, carrying an obligation to refurbish the building within a three-year period. The Council of the RSE agreed to make a loan of up to £2.3 million available to the Foundation in support of the refurbishment. The agreed terms of the loan are described in note 15(a). The Foundation plays a leading role in the RSE’s public outreach activities and manages the premises in Edinburgh. It also manages the programme of research activities funded by the Caledonian Research Fund.
(b) RSE Scotland SCIO RSE Scotland SCIO was incorporated in June 2012 as Scottish Charity Number SC043194, with charitable purposes of the advancement of educations; the arts, heritage, culture or science; and of citzenship or community development. The SCIO co-ordinated the development of the RSE Young Academy of Scotland. However, on 31 March 2020, the RSE Scotland SCIO ceased to trade and all assets and liabilities, totalling £32,973, were transferred to the Royal Society of Edinburgh on that date. The RSE Young Academy continues to operate under the Royal Society of Edinburgh.
Surplus The summary results for the year and net Income Expenditure /Deficit Net Assets assets in each of the connected charities were: £ £ £ £
RSE Scotland Foundation 1,194,847 (1,035,076) 159,771 10,087,502 RSE Scotland SCIO 111,689 (138,074) (26,385) -
Debtors/ Loan Intragroup transactions recognised Income Expenditure Creditors Account in the RSE comprise: £ £ £ £
RSE Scotland Foundation 238,944 (220,657) (1,661,355) 1,282,632 RSE Scotland SCIO - (97,211) - - All purchases for the SCIO were settled by the RSE on behalf of the connected charity. Cash was transferred between the charities to fund purchases.
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25 (a). Financial Commitments - Operating Leases
Financial commitment in respect of operating leases for printing and copying equipment: 2020 2019
Expires within one year 11,053 15,184 Expires within one to five years 25,103 25,239 36,156 40,423
25 (b). Financial Commitments - Capital A new customer relations management system is being developed. It was due to be implemented in 2019–20 but has been delayed. The planned date of implementation is now November 2020. An initial cost of £68,111 was capitalised in 2018–19, with further costs of £114,437 capitalised in the current year under Intangible Assets (see Note 13(c)). There is a further capital commitment of £197,680 for the project due to be paid in 2020–21.
26. Contingent Liabilities As the RSE has only one active member in the USS scheme it is possible that an exit liability will crystallise in the foreseeable future. The most recent estimate available from USS, valued at February 2020, indicated that, at a scheme buyout funding level of 53%, the estimated liability (“Section 75 debt”) was £1.3m.
27. Analysis of Net Funds
At 31 March 2020 Cash flows 2019
Cash at bank 368,706 77,140 291,566 Deposits – restricted funds 2,246,192 399,815 1,846,377 Deposits – unrestricted funds 1,339,690 (356,856) 1,696,546 3,954,588 120,099 3,834,489
28. Financial Instruments
GROUP GROUP RSE RSE 2020 2019 2020 2019 £ £ £ £
Financial Assets Debt Instruments recognised at amortised cost 262,226 127,663 237,665 96,175 Equity instruments at fair value 21,340,551 24,669,863 12,983,123 14,963,072 21,602,777 24,797,526 13,220,788 15,059,247
Financial Liabilities Debt instruments recognised at amortised cost (1,395,196) (891,450) (2,949,108) (2,376,142) 20,207,581 23,906,076 10,271,680 12,683,105
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29. Supplementary Information: Grants, Donations and Receipts
(a) Scottish Government Grant Income
2020 2019 Note £ £
Research Capacity and Leadership 5 1,602,100 1,819,546 International Connections 5 192,486 256,751 Outreach and Impact 5 604,100 626,703 Grant-in-Aid 2,398,686 2,703,000 Scottish Government - Unlocking Ambition Challenge 5 335,648 1,052,794 2,734,334 3,755,794
The funding for 2019–20 was grant-in-aid under S23 Natural Heritage (Scotland) Act 1985 in support of two programmes of activity: Inspiration, comprising Research Fellowships, Arts & humanities Awards, International grants and relations; and Engagement & Expertise, administered through the Scottish Funding Council. £304,316 from the 2019–20 tranche is carried forward to be spent in 2020–21 (See Note17). A further grant of £335,648 was received from Scottish Government. This was funding towards the new Unlocking Ambition Challenge that completed in 2019–20. At 31 March 2020, the financial commitment in respect of the Personal and Support Fellowships awarded subject to Scottish Government funding in the years 2020–21 and 2021–2022 amounted to £323,141 and £109,239 respectively. These amounts are treated as obligations of future years to be financed by specific funding expected to be made available from the Scottish Government. The amount paid to Universities in respect of the Research Fellowships represented approximately 100% of the cost of employing the Research Fellows.
(b) Other donations in support of activities The RSE gratefully acknowledges all those who make donations in support of activities. The companies, trusts and other bodies which made donations of £1,000 or more in support of acitivites in the year ended 31 March 2020 were as follows:
British Computer Society Academy of Computing Royal Academy of Engineering Gladys Lessells Trust Royal Institiute of Philosophy GM Morrison Charitable Trust Royal Society of Chemistry Holyrood Trust Scottish Cancer Foundation Institute of Physics Scottish Consortium for Rural Research James Weir Foundation Society of Biology John M Lessells Trust SUPA
(c) Friends of the RSE The Friends of the RSE - corporate partners of the RSE, during the year ended 31 March 2020 were as follows:
Aberdeen Standard Investment Canon Medical Research Europe Arup Group Scottish Council for Development and Industry BP plc Shepherd & Wedderburn WS BT plc
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Legal and Administrative Information
Auditors Stockbrokers & Investment Solicitors Advisers RSM UK Audit LLP Shepherd & Wedderburn WS First Floor, Quay 2 Rathbones 1 Exchange Crescent 139 Fountainbridge 50 George Suare Conference Square Edinburgh Glasgow G2 1EH Edinburgh EH3 9QG EH3 8UL
Bankers Bank of Scotland plc Brooks MacDonald (formerly Cornelian Asset Managers Limited) The Mound Hobart House Edinburgh 80 Hanover Street EH1 1YZ Edinburgh EH2 1EL
Further information about the activities of the Royal Society of Edinburgh and additional copies of the Annual Report and Accounts may be obtained from:
The Royal Society of Edinburgh 22–26 George Street Edinburgh EH2 2PQ
82 RSE Annual Report 2019–2020 © The Royal Society of Edinburgh 2020 This publication is available online at www.rse.org.uk The Royal Society of Edinburgh is registered in Scotland as Scottish Charity No. SC000470 The RSE Scotland Foundation is a connected charity, registered in Scotland as Scottish Charity No.SC024636 The RSE Scotland SCIO is a connected charity, registered in Scotland as Scottish Charity No. SC043194 Inland Revenue Claim Board Reference CR 18102 ISSN 2515-737X (print), ISSN 2515-7388 (online)