· I Ri] The Royal Institution Science Lives Here Trustees' Report and Financial Statements For the year ended 30 September 2019 rD:l The Royal Institution ~ Science Lives Here Contents CHARITY INFORMATION 1 TRUSTEES' REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2019 2 INTRODUCTION 2 PURPOSE 2 OBJECTIVES ........................................................................................•.......... 3 CHARITABLE ACTIVITIES AND ACHIEVEMENTS 3 VOLUNTEERS AND DONATED SERVICES 6 FINANCIAL REVIEW 7 PRICING POLICY ~ 7 INVESTMENT POWERS AND POLICY 7 RESERVES POLICY 7 PLANS FOR FUTURE PERIODS 7 STRUCTURE, GOVERNANCE AND MANAGEMENT 8 GOVERNING DOCUMENTS 8 ORGANISATION 8 ApPOINTMENT OF TRUSTEES 8 TRUSTEE INDUCTION AND TRAINING 8 RELATED PARTIES 9 FUNDRAISING APPROACH AND STANDARDS 9 RISK MANAGEMENT 10 MAJOR RISKS 10 TRUSTEES' RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS 10 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF THE ROYAL INSTITUTION OF GREAT BRITAIN 11 CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER 2019 13 BALANCE SHEET AS AT 30 SEPTEMBER 2019 14 CONSOLIDATED AND CHARITY CASH FLOW STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER2019 15 NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 30 SEPTEMBER 2019 16 Page O of 36 rñ'il T~e Roy~l Institution ~ SCience Lives Here Charity Information Audit & Risk Committee: Charity registration number: Mrs Sarika Patel - Chair and Trustee - resigned December 227938 2019 Mr Andrew Gregson - elected Trustee April 2019, resigned Principal office: January 2020 21 Albemarle Street, London, W1S 4BS Mr Nick Hills Mr Renata Lulia - appointed February 2019 Websites: Ms Siobhan Peters - resigned December 2019 http://www.rigb.org/ Mr Cristopher Potter - appointed February 2019 hht: I/venue.rigb.org/ Mr Simon Robinson - resigned December 2018 http://richannel.org/ Nominations Committee: Patron: Ms Louise Terry - Chair and Trustee - resigned October 2019 HRH The Prince of Wales KG KT GCB AK QSO ADC Mr Richard Sykes - Trustee Mr Christopher Adams President: Ms Lucinda Hunt - Trustee - resigned December 2019 HRH The Duke of Kent Ms Janet Larsen Mr David Phillips Honorary Vice President: Sir John Ritblat Director: Dr Shaun Fitzgerald FREng- resigned December 2019 Current Trustees who served during the entire financial Ms Lucinda Hunt BSc ARCS PGCE - appointed Interim Director year: 13 January 2020 Sir Richard Sykes - Chair Ms Louise Terry - Deputy Chair - resigned October 2019 Auditor: Dr Sophie Forgan RSM UK Audit LLP Mr Simon Godwin 25 Farringdon Street, London, EC4A4AB Dr Yike Guo - resigned January 2020 Lord Julian Hunt Bankers: Mr John Krumins HSBC Bank pic Mrs Sarika Patel - resigned December 2019 79 Piccadilly, London, WlJ 8EU Prof Alison Woollard Investment advisors: Trustees who served during part of the financial year HSBC Global Asset Management (UK) Limited, 8 Cork were: Street, London W1S 3U Dr Fergus Boyd - retired April 2019 Mr Andrew Gregson - elected April 2019, resigned January Solicitors: 2020 Farrer & Co Sir Roland Jackson - elected April 2019 66 Lincoln's Inn Fields, London, WC2A 3LH Ms Lucinda Hunt - appointed September 2019, resigned December 2019 Field Fisher Waterhouse LLP Mr Christopher Potter - appointed September 2019 5 Vine Street, London, EC3N2P X Mr Geoff Potter - retired April 2019 CMS Cameron McKenna Nabarro Olswang LLP Finance Committee: Cannon Place, 78 Cannon Street, London, EC4N6AF Mr John Krumins - Chair and Trustee Mr Simon Godwin - Trustee Mr Stuart Bridges Mr Robert Farago Mr Chris Lowe Ms Clare Robinson - appointed February 2019 Page I of 36 rn:J The Royal Institution ~ Science Lives Here Trustees' Report for the year ended Commission in June 2019. In September 2019, the Ri , ." , l actively replenished funds, consistent with this plan, by 30 Septe_mber 2019 " £143k. Trustees also resolved in September 2019 to set aside The Ri is pleased to report significant £222k of unrestricted investment funds to create an Operating Reserve. growth in targeted audiences, a surplus The Charity Commission, after their visit in March 2019 and on unrestricted funds (for the fourth clarification of various matters, advised in October 2019 that they are" .. satisfied that the RI no longer requ ires any consecutive year). special oversight from the Commission and our current engagement can therefore now end." Throughout 2019 the Ri Leadership has worked with staff and Trustees to implement our strategy, This outlines our vision and The Ri has remained free of debt since repayment in 2015 and mission consistent with our founding prospectus and is based has sufficient cash resources to maintain its current core on six key objectives that are our prime areas of focus. Please operations. Implementation of the new five-year strategy is refer to Objectives, below, for more details. underway but progress depends on securing additional funds for new projects. With our ability to connect science, culture and society at all levels, from primary education to advanced study and research, IIntroduction the Ri has a global role to play in supporting the public to participate in evidence-based discussions and solving many of The Trustees are pleased to present their report and the the significant challenges the world now faces. consolidated financial statements of the Royal Institution of Great Britain (also referred to as the 'Ri' or the 'Institution' or We have achieved significant growth in the audiences we 'the Charity') and its subsidiary, RIGB Limited, for the year interact with through our programmes: ended 30 September 2019. Digital subscribers growing 185,000 people / 42% and views growing 6.3m /42% in the last year. The Financial Statements comply with the Charities Act 2011 Masterclass participants growing 5% to 6,500 in the year. and the Statement of RecommendedPra ctice - Accounting and The CHRISTMASLECTUR ES viewing audience grew 30% Reporting by Charities - (SORP2015) . The Financial Statements over the previous year. have been prepared to give a 'true and fair' view and have Science in Schools impacting 7,500/ 15% more students departed from the charities (Accounts and Reports) Regulations at 15% more schools than in the previous year. 2008 only to the extent required to provide such a 'true and fair' view. This departure has involved following the Statement of In December 2019, Dr Shaun Fitzgerald resigned as Director to RecommendedPractice for Charities preparing their accounts in pursue other interests. After considering options, the Board accordance with the Financial Reporting Standard applicable in appointed Ms Lucinda Hunt as Interim Ri Director for a period of the UK and Republic of Ireland (FRS 102) issued on 16 July 12 months, from 13 January 2020, whilst the Directors and 2014, which this charity is now required to comply with, rather Board consider future Ri structure and key roles and appoints than the Statement of RecommendedPractice effective from 1 people to the roles defined. This will best enable the Ri to deliver April 2005 which has since been withdrawn. its 2020 business plan and identify the structure and roles critical to delivering the Ri strategy in the future. It is expected IPurpose the search and appointment of new staff will take up to 12 months. Ms Hunt resigned as a Trustee on 18 December 2019. Page 2 of the founding Prospectus of the Ri states 'To point out the causes which impede this (scientific) progress, and to invite During this financial year, the Ri has both made significant the public to join in effectively removing them.' Ri staff and progress on its charitable objectives as well as consolidating the Trustees have remained aligned with this original purpose in previous three years strengthened financial performance and its developing a new vision and mission that are relevant for long-term financial sustainability. today's public audiences. The Ri vision is for: 'A world where The Ri has produced a financial surplus on unrestricted funds for everyone is inspired to think more deeply about science and its the year of £4k before replenishment (compared to a £100k place in our lives'. It encapsulates the need for everyone to think surplus in 2017/18). This represents the fourth consecutive year critically, question, challenge and bring a diversity of viewpoints of surpluses on unrestricted funds and is the result of sustained on science and its integral position in culture and society. The core operating performance (the £100k 2017/18 result was also Ri believes that this rich discussion will enhance the valuable from core operating activity). contribution that science is able to make to our lives. Total Funds have declined £9k for the year (increased £ 135k in Over the coming years the Ri's mission will, therefore, be to 2017/18) as funds were used to deliver our core programmes. create opportunities for everyone to discover, discuss and critically examine science and how it shapes the world around Three significant developments in the 2019 year evidence the us. The Ri will do so by building on its heritage and success in improving financial strength of the Ri: creative and innovative ways. Trustees resolved in June 2018 to plan to replenish Endowments and Restricted funds misused in 2008/09 from 1 October 2018. This plan was agreed with the Charity Page 2 of 36 r;;:J The Royal Institution ~ Science Lives Here H_Hm w H mH· H HI Objectives • 12 editions of "Fiction Lab", our science book club. ~---------------------- Highlights of the programme included: The six key objectives set out in the new strategy