Trustees’ Report and Financial Statements For the year ended 31 March 2010 02 Trustees’ Report and Financial Statements Trustees’ Report and Financial Statements 03 Trustees’ Report and Financial Statements Auditors Registered charity No 207043 Other members of the Council Contents PKF (UK) LLP Professor David Barford b Trustees Chartered Accountants and Registered Auditors Professor David Baulcombe a Trustees’ Report 03 The Trustees of the Society are the Members Farringdon Place Sir Michael Berry Independent Auditors’ Report of its Council duly elected by its Fellows. 20 Farringdon Road Professor Richard Catlow b to the Council of the Royal Society 12 London EC1M 3AP Ten of the 21 members of Council retire each Dame Kay Davies DBE a Audit Committee Report to the year in line with its Royal Charter. Dame Ann Dowling DBE Solicitors Council of the Royal Society on Professor Jeffery Errington a Needham & James LLP President the Financial Statements 13 Professor Alastair Fitter Needham & James House Lord Rees of Ludlow OM Kt Dr Matthew Freeman b Consolidated Statement of Bridgeway Treasurer and Vice-President Sir Richard Friend Financial Activities 14 Stratford upon Avon Warwickshire Sir Peter Williams CBE Professor Brian Greenwood CBE b CV37 6YY b Consolidated Balance Sheet 16 Physical Secretary and Vice-President Professor Andrew Hopper CBE Bankers Dame Louise Johnson DBE b Consolidated Cash Flow Statement 17 Sir Martin Taylor a Barclays Bank plc a Professor John Pethica b Sir John Kingman Accounting Policies 18 Level 28 Dr Tim Palmer a 1 Churchill Place Biological Secretary and Vice-President b Notes to the Financial Statements 20 Professor John Pyle London E14 5HP Dame Jean Thomas DBE Professor Carol Robinson a Parliamentary Grant-in-Aid 35 Mr Philip Ruffles CBEb Investment Managers Foreign Secretary and Vice-President Professor Bernard Silverman Rathbone Investment Management Ltd Professor Lorna Casselton Sir John Sulston a 159 New Bond Street Vice-Presidents Professor Andrew Thomson a London W1S 2UD Dame Nancy Rothwell DBE b Professor Fiona Watt a Internal Auditors Sir Christopher Llewellyn Smith b Professor Semir Zeki b haysmacintyre Fairfax House Changes The above served as Members of Council 15 Fulwood Place throughout the year unless indicated as below. London WC1V 6AY a Member until 30 November 2009 b Member since 30 November 2009 Executive Secretary Mr Stephen Cox CVO Registered Address 6–9 Carlton House Terrace London SW1Y 5AG royalsociety.org 04 Trustees’ Report and Financial Statements Trustees’ Report Trustees’ Report Trustees’ Report and Financial Statements 05 The Royal Society of London for Improving Natural Knowledge, commonly known as the Royal Society, is an independent self-governing scientific academy founded in 1660 incorporated by Royal Charter and is a Registered Charity. This report and the financial statements attached are presented in the format required by the Statement of Recommended Practice – Accounting and Reporting by Charities (revised 2005). Trustees’ Report Council is advised by a wide range of committees, the Risk assessment Structure, Governance membership of which and their subcommittees is not always The major risks to which the Society is exposed, as identified and Management confined to Fellows. The Board, comprising the President, by Council, have been reviewed and systems have been honorary officers and the Executive Secretary, makes established to mitigate those risks. As the governing body Organisation recommendations to Council on policy management. Council is ultimately responsible that proper arrangements The Royal Society is governed by a Council of 21 Fellows, are in place for adequate and effective risk management and The Audit Committee reports direct to Council, reviews the who are also its trustees for charity purposes, including control. The active management of risk is delegated, in the audited financial statements and recommends their approval five honorary officers: President, Treasurer, two Secretaries first instance, to the Board which reports directly to Council. to Council, enquires into the Treasurer’s stewardship of (one drawn from the physical sciences and mathematics, Council puts reliance upon Audit Committee to assess the Society assets, reviews reports from the external and internal and the other from the life sciences) and a Foreign Secretary. risk management and control and governance arrangements auditors, monitors management response thereto and The Royal Charter requires that 10 of the 21 members of within the Society and advise Council on the effectiveness implementation of agreed recommendations. Council retire each year. of such arrangements. The Audit Committee has actively Fellowship reviewed the major operational and business risks, both The composition of Council comprises three categories of The Royal Society is a Fellowship of outstanding scientists membership – the President and other officers who hold The Royal Society is a Fellowship of outstanding scientists financial and non-financial, to which the Society is exposed. drawn from all areas of science, engineering and medicine. drawn from all areas of science, engineering and medicine. It is the world’s oldest scientific academy in continuous office for one year but are eligible for re-election annually Connected charities and subsidiary undertakings The Society’s mission is best described as being to expand existence, and has been at the forefront of enquiry and and normally serve for five years, one retiring each year by Council regards The Wolfson Research Professorship of the discovery since its foundation in 1660. the frontiers of knowledge by championing the development rotation; one representative from each of 10 subject area Royal Society to be a Connected Charity of the Royal Society. and use of science, engineering and medicine for the benefit classifications who hold office for one year but are eligible for The charity’s objectives and activities are common to or in of humanity and the good of the planet. Fellows of the re-election for a second year; and members elected to create parallel with, those of the Society and it is administered by Society are elected for life and designate themselves through a balanced and representative Council who also hold office the Society. The principal contact address for the charity is the use of the letters FRS after their names. 44 new Fellows for one year but are eligible for re-election for a second. that of the Society. The Wolfson Research Professorship and eight Foreign Members are elected annually through of the Royal Society supports the Society’s Professorship All members of Council begin and end their tenure on a peer review process that culminates in a vote by existing of that name. Note 25 to the accounts sets out the Council on Anniversary Day, which is 30 November – Fellows. The main criterion for election is scientific excellence. Society’s relationship with its subsidiary undertakings. St. Andrew’s day. Suggestions for membership of Council Fellows are called upon to perform a wide range of tasks for, are invited annually from the Fellowship. The determination and on behalf of, the Society. Many Fellows invest significant Management and staffing of vacancies and nomination of candidates is decided by time and effort, voluntarily, to carry out these tasks in support The Executive Secretary is responsible for the day-to-day Council in accordance with its Standing Orders. Nominees of the cause of science and the Society. management of the Society and its activities, supported are confirmed by ballot of the Fellowship. All members of by five Directors – responsible for Development and Volunteers Council are elected from the Fellowship. Fundraising, Finance and Operations, History of Science, The Society is grateful for the valuable contribution to its Public Affairs and Science Policy – and the senior Fellows elected to Council are amongst the world’s leading work made voluntarily. This includes not only that made management team. In March 2010 the Society had 145 The Kavli Royal Society International Centre provides the scientists and are well-qualified to provide the Society by its Fellows but also many non Fellows who give their staff in post. This year a new Human Resources and Payroll Royal Society with a prestigious residential centre outside with the necessary guidance and leadership to achieve time serving on committees supporting the Society and London for holding internationally significant scientific its objectives. Council holds an annual seminar to ensure Administrator was appointed. conferences and offering opportunities for concentrated its activities, together with many others, too numerous academic reflection. Its focus is on strengthening both UK that its members have a wider understanding of their to specify, who peer review grant applications and attend, The Business Plan and Budget, approved annually by and international science. responsibilities and duties as trustees of a charity. As many participate in and contribute towards it activities. Council, is implemented by eight activity sections, and members of Council serve for only one year, and others for six resource and support sections. The 350th Anniversary two, it is not usually possible to provide extended training. Programme is managed by an additional temporary section and the Enterprise Fund is managed by a Chief Executive Officer. 06 Trustees’ Report and Financial Statements Trustees’ Report Trustees’ Report Trustees’ Report and Financial Statements