Trustees' Report & Accounts 2003-2004

Trustees Report & Accounts 2003-2004
he Royal Society of Edinburgh is Scotlands national academy and premier learned society, founded by Royal Charter in 1783 for the advancement of learning and useful knowledge. Today, in continuing to represent all branches of learning, with over 1,200 Fellows and Honorary and Corresponding Fellows drawn from Science, Engineering & Medicine, Arts & Letters, the Professions, Technology, Industry and Commerce, the Society embodies the spirit of the Scottish Enlightenment which shaped its original Charter. In this it provides an important Scottish forum for broadly-based interdisciplinary, as well as more specialised, activities to promote scholarship. Each year the Society enhances its position in Scotland by electing men and women of accomplishment to its Fellowship. The Society is a wholly independent charitable body governed by a Council of Fellows elected annually by the Fellowship. It is funded in part by Government grant-in-aid through the Scottish Executive Enterprise and Lifelong Learning Department and by increasing levels of additional support from private and other charitable sources, which enable it to promote an expanded range of activities.
The Society undertakes a diverse range of activities for the benefit of the people of Scotland and will continue to: G Award Research Fellowships, Scholarships and Prizes to promote learning in Scotland G Promote the dissemination of scientific knowledge by publishing learned journals G Organise interdisciplinary meetings and specialist symposia G Promote and support activities aimed at increasing the public understanding of science, engineering and technology G Reinforce its links with industry and commerce in Scotland and work to encourage closer relationships between that sector and academia G Develop a range of activities which will increase its links with young people G Provide an independent forum in Scotland for the informed discussion and consideration of matters affecting the well-being of the nation G Advise Government and other bodies on relevant policy issues affecting Scotland G Develop new initiatives in line with its Charter, within Europe and elsewhere, as well as in Scotland
COUNCIL OF THE SOCIETY 1999-2000

The Trustees are the Council Members elected during the financial year
President Sir William STEWART Vice-Presidents Sir James ARMOUR CBE Professor R J DONOVAN The Rt Hon Lord ROSS PC General Secretary Professor P N WILSON CBE Treasurer Sir Laurence HUNTER CBE Curator Professor M D MCLEOD Fellowship Secretary Professor J D M H LAVER CBE Programme Convener Professor J S BECK Research Awards Convener Professor J R COGGINS International Committee Convener Principal A MILLER CBE Youth Programme Convener Dr L S D GLASSER MBE
Secretaries to Meetings
Mr I R GUILD CBE Professor A C WALKER Councillors Professor D J BREEZE Professor J C BROWN Dr C H DONALDSON Professor C P DOWNES Professor C M DUFFUS Professor A R FORRESTER OBE Professor R A KENNEDY Professor C A LODDER Professor R G L MCCRONE CB Professor M PEAKER Sir Lewis ROBERTSON CBE Executive Secretary Dr W DUNCAN The Society is registered in Scotland as Scottish Charity No. SCO00470 Inland Revenue Claim Board Reference CR 18102
Contents
Council of the Society 2003-04 ........................................................... 2 Trustees Report ................................................................................... 3
Auditors Report ................................................................................ 10
Accounts Statement of Financial Activities (incorporating Income and Expenditure account)................ 11 Balance Sheet ........................................................................ 12 Cash Flow Statement .............................................................. 13 Notes to the Financial Statements ..................................... 14 28
COUNCIL OF THE SOCIETY 2003 2004

The Trustees are the Council Members elected during the financial year
President Lord SUTHERLAND of HOUNDWOOD KT Young Peoples Programme Convener Professor C A TICKLE Secretaries to Meetings Professor C M DUFFUS Professor D J BREEZE Councillors Professor R ASHER (from November 2003) Mr E BROWN CBE (from November 2003) Mr E CUNNINGHAM CBE Professor T DURRANI (from November 2003) Professor C KUO (until October 2003) Professor E B LANE Sir Alan LANGLANDS Professor J F MCCLELLAND CBE (until October 2003) Professor R G M MORRIS Dr W S NIMMO Professor P F SHARP Professor I H STEVENSON (until October 2003) Dr I P SWORD CBE Lord WILSON of TILLYORN KT GCMG Executive Secretary Dr W DUNCAN 22-26 George Street, Edinburgh EH2 2PQ
Vice-Presidents Sir David CARTER (until October 2003) Professor A C WALKER Professor R G L MCCRONE CB Professor J COGGINS (from November 2003) General Secretary Professor A MILLER CBE Treasurer Sir Laurence HUNTER CBE Curator Dr B E MOON Fellowship Secretary Professor C C BIRD CBE Research Awards Convener Professor D H SAXON International Committee Convener Professor R M MACKIE CBE Programme Convener Professor J S BECK (until October 2003) Professor I H STEVENSON (from November 2003)
The Society is registered in Scotland as Scottish Charity No. SCO00470
Inland Revenue Claim Board Reference CR 18102
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The Council of the Society as Trustees of the Society present their report for the financial year ended 31 March 2004. make up a proportion of the targeted return for the year subject to no more than 2% of capital value being drawn out of capital. This has not yet been drawn down. The income targets for the year have been met and the total return values have outperformed the average charity index and the UK market. Representatives of the Investment Committee meet annually with the investment managers to discuss their compliance with the constraints set by the Committee and risk environment. In the year under review no compliance issues arose which required to be reported to the Committee.
Statement of Councils responsibilities

Under the Laws of the Society, the Council has the responsibility to manage all matters concerning the affairs of the Society. The Treasurer, a member of the Council, has a duty under the Laws of the Society to present to the Fellows at the Statutory Meeting the Accounts for the preceding financial year to 31 March. Under Charities legislation, the Council is required to prepare accounts for each financial year which give a true and fair view of the state of affairs of the Society at 31 March and of its financial activities during the year then ended. In preparing these accounts, the Council should
G
Operating policies - grant making

The RSE makes grants to individuals in higher education institutions in support of research activities in the categories of postdoctoral research Fellowships, support research Fellowships, post graduate studentships, undergraduate vacation scholarships and Enterprise fellowships. Each of these categories is specifically funded from various sources including the RSEs restricted funds. The basis of eligibility and selection varies according to the detailed scheme regulations, which are published on the RSEs Web site (www.royalsoced.org.uk). Grants are also made in support of research activities of Fellows of the RSE including support for travel connected with research or scholarship, small scale specialist meetings, to assist research visitors to Scotland to undertake collaborative research work with a Fellow, to assist a visiting lecturer to come to Scotland to assist research collaboration between two institutions in Scotland or between universities and industry and to assist in the publication of books written by Fellows. These grants are funded by the RSE designated Grants Fund. The Grants Committee is responsible for making awards in accordance with the detailed rules set out by the Council of the Society for the disbursement of the Grants fund.
Details of committee membership are to be found in the Societys annual directory and on its website.
select suitable accounting policies and apply them consistently make judgements and estimates that are reasonable and prudent ensure that the recommendations of the Statement of Recommended Practice (Accounting by Charities) have been followed prepare the accounts on a going concern basis unless it is inappropriate to assume the Society will continue its activities.
The Council has a responsibility for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Society and which enable it to comply with the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 and the Charities Accounts (Scotland) Regulations 1992. It has general responsibility for taking such steps as are reasonably open to it to safeguard the assets of the charity and to prevent and detect fraud and other irregularities.
Investment powers and policy

The Council has power under the Laws to control the investment of the Funds of the Society. The management of the investments is carried out by Speirs & Jeffrey & Co on a discretionary basis. The objectives set by the Council of the RSE are first to stabilise a sufficient level of income to meet the target set annually by Council and thereafter to invest for capital growth potential. The Council has delegated the detailed monitoring of performance to the Investment Committee, which makes comparisons against a composite benchmark reflecting the mix of assets held and the WM Median index. As a consequence of the restriction being placed on the total return available from the portfolio by the high income requirement, the Council has agreed in principle to realise part of the overall capital gain to
Reserves policy and funds

The Society holds a number of restricted funds resulting from bequests for particular purposes, details of which are set out in note 2c) to the financial statements. The Council has also created designated funds, where the Society has set aside sums from its unrestricted funds, the purposes of which are set out in note 2b) to the financial statements. The General Fund represents the balance of unrestricted funds arising from past operating results, which are not invested in fixed assets or designated for a specific purpose. As a result of a review of the level and purpose of each of the Designated funds, the Council has created a new Designated fund, the Programme Fund, by 3
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transfer from the Grants fund and the Development Appeal fund. This Fund, which will also be increased by any legacies which are received for general purposes, is intended to act as a funder of last resort for meetings activities and events which could not otherwise be funded but that would be consistent with the Societys objectives. The Council has examined the requirement for free reserves, and concluded that whilst the present level of reserves gives adequate working capital for core costs that it would be desirable to have a General Fund reserve in the range of three to six months expenditure on central costs. They have also concluded that the Society should maintain a . Development fund to give flexibility to respond to new initiatives on a timely basis without the need for specific fundraising.
Risk management
The Treasurers Committee remit includes examining the major risks faced by the Society and formalising, and extending where necessary, existing systems established to monitor and control these risks to mitigate any impact that they may have on the Society. The Council believes that the existing systems and the structure of decision taking and reporting through Business Committee and Council continues to provide assurance that risks are carefully managed.
Review of the year

Overview
The Society has continued to thrive, thereby serving the interests of a wider community in Scotland, delivering the RSEs Royal Charter for the advancement of learning and useful knowledge in a twenty first century context. It has maintained and developed new strategic partnerships because working together with key public and private bodies, it can contribute more to the social, cultural and economic wellbeing of Scotland and beyond. The year to 31 March 2004 has seen changes: the staff structure has been reorganised; a revised Corporate Plan and a related management plan have been developed; and the governance structures and management of the Society have been looked at afresh. It has been an extremely dynamic and productive year in which the Societys resources in time, expertise and funding have been carefully managed, and put to good effect. each with defined targets. The outcomes depend on on the efforts of the Society staff and the Fellowship, all with their own expertise and skills. Fellows and staff are pivotal to the delivery process and achievements against targets will also be the subject of regular monitoring. All Fellows and staff have had the opportunity to contribute to the content and presentation of the Corporate Plan. Staff have also participated in the setting of the operational agenda in the associated Management Plan.
Research Awards, Excellence and Enterprise

The Society continues to recognise, celebrate and promote excellence. The invaluable relationships with key funding partners, which enable us to award over 1.5 million annually, continued to grow due to the outstanding calibre of awardees and prize winners. In the period 2003-2004 the Society awarded fifteen Enterprise Fellowships, funded by Scottish Enterprise and one PPARC Enterprise Fellowship, one BP Fellowship, one Lloyds TSB Foundation for Scotland Personal Fellowship and two Lloyds TSB Foundation for Scotland PhD Studentships. With additional funding from the Scottish Executive now in place, the Society was able to award a larger number of Personal and Support Fellowships this year, awarding five Personal Fellowships and three Support Fellowships. Six Cormack Vacation Scholarships, seven Lessells Travel Scholarships, six CRF European Visiting Research Fellowships (four from Scotland to Europe and two from Europe to Scotland) and three Wellcome Trust Research Workshops were also awarded. As the result of an important new partnership with the Gannochy Trust, the Society was delighted to present the inaugural Gannochy Trust Innovation Award of the Royal Society of Edinburgh to Dr Barbara Spruce, Department of Surgery and Molecular Oncology, University of Dundee for her innovative technology for the treatment of cancer. This award was presented by Sir James Black OM, FRS, Hon FRSE, at a ceremony held in Scone Palace on 21 June 2003.
The Corporate Plan

In 2001 the Society produced its first Corporate Plan, which set a wide range of activity and programme targets through which the Society could make an effective contribution to a Scotland facing the challenges of devolution. It was intended to review and develop the 2001 Plan after some experience had been built up and this has now been successfully completed. In order to provide further public benefit consistent with its Royal Charter, the Society has set three strategic objectives for 2004-2007. These are: - to continue to deliver its existing range of core activities, thereby maintaining existing arrangements with funders and partners; - to prioritise selected action areas and, where necessary, seek the resources needed for development; and - to encourage wider Fellowship and public participation, and better integration in the delivery of Society programmes. These strategic objectives will be achieved through a broad range of specific activities and programmes, 4
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Individuals who have made outstanding achievements in their field which have been of benefit to people in Scotland and abroad continued to set the standard for the prizes awarded by the Society. HRH The Duke of Edinburgh honoured the Society greatly by presenting the Royal Medals at a ceremony held in the Societys rooms on 27 October 2003, to Professor Sir Paul Nurse FRS HonFRSE, for his outstanding contribution to genetics research, to Sir Michael Atiyah OM, FRS, HonFRSE, for his profound and beneficial effect on the development of mathematics and science in the UK and Europe, and to Lord MacKay of Clashfern PC, KT, QC, FRSE, for his outstanding contributions to Scots Law and his international reputation both in law and public service. The CRF Prize Lectureship in Biological Sciences was awarded to Professor Joan Steitz of Yale University, USA. The Bruce Preller Prize Lectureship was awarded to Sir Keith ONions FRS, Professor of the physics and chemistry of minerals, Department of Earth Sciences, University of Oxford and the new Director General of the Research Councils. The Henry Duncan Prize Lectureship was awarded to Professor Duncan Macmillan, Professor of the History of Scottish Art, University of Edinburgh. Academy of Music & Drama; Scotland and the Media A Question of Trust a spirited conference which brought media managers, journalists, politicians, and other key stakeholders together; and Scotlands Drug Problem, a highly regarded conference in which a national and international perspective was applied to policies including legalisation.
Links with Young People

It has again been a busy year which has seen expansion for the ever-popular programme of activities for young people held throughout Scotland: A Discussion Forum (Supported by the Darwin Trust of Edinburgh and the Rowett Research Institute) on Scotlands Obesity Epidemic took place at the Rowett Research Institute, Aberdeen in June 2003. Senior school students heard the facts from the experts and held group discussions as to how society should proceed. A week-long, non residential Summer Camp based at and in conjunction with the University of Edinburgh on the theme of Science in Our World was held in July 2003. It included talks, workshops and educational trips. Talk Science lectures (previously known as Schools Lectures), which aim to enthuse secondary school pupils about science, engineering and technology, were held at Culloden Academy, Brechin High School, Grangemouth High School, Inverurie Academy, James-Watt College (Greenock and Kilwinning Campuses), Preston Lodge High School, Torrie Academy, Springburn Academy, Stranraer Academy, Thurso High School, Tobermory High School and Wick High School. The RSE Roadshow was held on the Isle of Skye, as part of National Science Week in March 2004. Startup Science Masterclasses at the University of St Andrews (2 series), University of Dundee (2 series), University of Glasgow (2 series), Heriot Watt University (2 series) and Satrosphere/University of Aberdeen have continued to be very popular and often over-subscribed. The long-running primary Maths Masterclasses were held; at Kirkliston Primary School, Glasgow High School and the University of Dundee. The Physics Masterclasses, run in conjunction with the University of Glasgow, were held successfully in August/September 2003. The 2003 Christmas Lecture, Black Holes and White Rabbits was given by Professor John Brown, FRSE, Astronomer Royal for Scotland at Inverness Royal Academy on 8 December 2003. Professor Browns accompanying public lecture in Inverness also received a warm reception from a sizeable audience. Young Peoples awards were presented for the first time to those who have made an extraordinary voluntary contribution to the Young Peoples Events. In August 2003 these were presented to: Dr Lesley Glasser MBE FRSE, Satrosphere; Dr Martin Hendry, University of Glasgow; Ms Heather Reid, BBC 5
Events
The Society organised a wide range of public events, involving a spectrum of speakers, of interest both to the specialist and the general public, offering a neutral platform for debate on matters of national and international importance. Attendance has continued to rise with full houses a regular occurrence. Feedback has on the whole been positive from audiences consisting of Fellows and non-Fellows including members of the public across the age range, individuals from business, academia, politics, the media, private and public bodies Examples of successful events held during the year include: Do we approve of a Jury System for Complicated Trials? - a debate-style event between The Rt Hon Lord Penrose, Senator of the College of Justice in Scotland and Professor Gerry Maher, Commissioner of the Scottish Law Commission; The Cause of Eating Disorders: the Individual, the Culture, or Both? by Dr Chris P. Freeman, Consultant Psychiatrist, Royal Edinburgh Hospital and Dr Harry R. Millar, Consultant Psychiatrist, Eating Disorder Service, Royal Cornhill Hospital, and Electricity Supply in the New Century, Dr Malcolm Kennedy, CBE, FRSE, Former Chairman, PB Power and of The Institution of Electrical Engineers. Other notable events included: A joint two-part conference with the British Academy: England and Scotland in Union from 1603 - Anglo-Scottish Relations Past, Present and Future (one held in London at the British Academy, one in Edinburgh); The Value of the Performing Arts - An illustrated Lecture, Professor John Wallace, OBE, FRSE, Principal, The Royal Scottish
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Scotland; Mrs Monica Lacey, University of Dundee and Dr Bruce Sinclair, University of St Andrews. of innovation in Scotland, from the perspectives of different sizes and backgrounds of organisation.
Policy, Evidence, Advice & Comment

The expertise of the RSEs multi-disciplinary Fellowship was harnessed to provide authoritative advice in response to 24 public consultations including: - CAP Reform: Opportunities for Scotland. Scottish Executive Environment and Rural Affairs Department - Inquiry into Renewable Energy in Scotland. Scottish Parliament Enterprise and Culture Committee - The Future of Higher Education. Department for Education and Skills. - The Scottish Human Rights Commission. The Scottish Executive Justice Department. In response to concerns expressed within and outwith the Fellowship about the plight of the Scottish Fishing Industry, the Council instigated an independent inquiry into how a sustainable future could be achieved for this important national industry. Independently funded and chaired by the distinguished biologist, Professor Sir David Smith, FRS, FRSE with Vice Chairman, Professor Gavin McCrone, CB, FRSE, this major report was launched in March 2004, after almost a full year spent considering the many issues involved. The expert inquiry concluded that a secure and sustainable future for the Scottish Fishing Industry is achievable, but not without a long-term view being taken and important changes being made both to policy and management. The report made 35 key recommendations covering the operation of the Common Fisheries Policy, the science of fish stock assessment and the management of fisheries policy. It also outlined measures to help the industry and the fishery dependent communities. It was widely welcomed. The Scottish Parliament Science Information Scheme was set up collaboratively by the RSE, The Scottish Parliament, The Royal Society of Chemistry, in association with The Institute of Physics and The University of Edinburgh. This innovative scheme, which was created to help Members of the Scottish Parliament to have access to reliable, rapid and impartial information on science, engineering and technology-related issues in order to support parliamentary work, has dealt with a number of queries from MSPs including: alternatives to fishmeal for feeding farmed salmon; wind farms; effectiveness of ventilation to extract toxins in tobacco smoke and Broadband coverage in Scotland. The Society also participated in the following Foresight/Commercialisation forums: - Scottish Executive Foresight Forum, developing a mechanism for examining future thinking between the ITIs, SSAC and DTI. -Scottish Executive National Innovation Systems working group undertaking a case study examination 6
International Activities
The Societys growing programme of international activities has attracted much positive attention during the year, with the result that the Society is increasingly being approached to participate in major projects, both within the UK and overseas. After a slow start, mainly due to travel restrictions to Asia, applications to the International Exchange Programme, launched in early 2003, are steadily increasing. Funding for the following visits has been granted: four weeks to/from China under the bilateral agreement with the Chinese Academy of Sciences; nine weeks to/from Poland under the bilateral agreement with the Polish Academy of Sciences; five weeks to/from Taiwan under the bilateral agreement with the National Science Council; and 19 weeks under the Open Programme. A Stem Cell Discussion Forum was held on 15 October 2003 in Brussels. A full report of this successful event, which has stimulated new ongoing national and international collaboration, is available from the International Office, and from the RSE website. A Voyages of Discovery programme was developed with Universities Scotland and Scottish Development International. This showcased Scotlands research excellence and capabilities in a range of disciplines to senior business executives, with the aim of creating stronger research links, and has completed its pilot stage. Two successful tours were run in November 2003 and January 2004 on the respective themes of Energy and Life Sciences. The Society hosted an EU Framework 6 meeting with the UK Research Office to discuss the implications of consent agreements and intellectual property rights within consortia involved in EU Framework 6 research projects. The RSE and the Chinese Academy of Science, with which there is a Memorandum of Understanding, organised a two-day seminar in Beijing in March 2004, entitled: Sino-Scottish Science: Sharing Ideas. It was followed by visits to key institutes to identify areas where there was potential mutual benefit in developing bilateral collaboration. The Chinese Academy of Sciences were among the Societys distinguished overseas guests, when a delegation led by its Vice-President visited in August 2003. The President of the French Academy of Sciences delivered a lecture entitled European Science in Difficulty at the Annual Statutory Meeting - October 2003. Other international visitors included: The Chinese Academy of Forestry - November 2003; The President of the Royal Irish Academy - December 2003; Senior Management from the Technical University of Lodz, - January 2004; the Polish Minister for Europe (and
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subsequently nominated European Commissioner), Professor Danuta Hbner - to deliver a lecture entitled New Europe: World Views - January 2004; and the Royal Swedish Academy of Sciences - March 2004. The National Science Council of Taiwan (Taipei Representative Office in the UK) met RSE delegates in Edinburgh in September 2003 and March 2004. Science Scotland is an electronic and print publication created by the Society, in partnership with the Scottish Executive, British Council Scotland and Scottish Development International, which features the best of science and technology in Scotland, with the objective of raising awareness in an international audience. The first issue of Science Scotland was launched at the annual meeting of the American Association for the Advancement of Science, held in Seattle in February 2004. The Future of the Scottish Fishing Industry: Inquiry Report (ISBN 0 902 198 09 2) Value of the Post-Mortem Examination: Report of an RSE Conference (ISBN 0 902 198 78 5)
Fellowship
In March 2004 the Society elected 55 Ordinary Fellows, eight Corresponding Fellows and three Honorary Fellows. The average age at election of the Ordinary Fellows was 49 (last year it was 53). Nine of the Ordinary Fellows were female. At September 2004 the Fellowship comprises 71 Honorary Fellows, 24 Corresponding Fellows and 1278 Ordinary Fellows. The discipline balance of the Fellowship remains the same as last year - 34% of the Ordinary Fellowship represent disciplines in the Life Sciences, 38% in Physical, Engineering and Informatic Sciences, 19% in Arts and Humanities and 9% in Economics, Business and Administration. The majority (77.6%) of Ordinary Fellows are resident in Scotland, 17.4% in England, 4.8% overseas and 0.2% either in Wales or Ireland.
Publications
The Society published the following titles during the year. ReSourcE (formerly called RSE News) - issues were published in April 2003, October 2003 and January 2004. (ISSN 1473-7841); The Fellows Directory 2004, December 2003 (ISSN 1476-4334); Review 2003 (review of Session 2001-2002), Spring 2003 (ISSN 1476-4342); Annual Review 2003, September 2003 (ISSN 1742-1810); and the Trustees Report 2003, September 2003. Transactions - volumes 93.3, 93.4 and 94.1 and Proceedings A - volumes 133.2 to 133.6 and volume 134.1 were also published. The following publications reporting RSE events were produced and are available from the Society: -Diet and Obesity: Report of Young Peoples Discussion Forum (ISBN 0 902 198 83 1) -I, Cyborg: the 2003 RSE/Royal Academy of Engineering Joint Lecture (ISBN 0 902 198 68 8) Scotlands Drug Problem: Report of an RSE Conference (ISBN 0 902 198 73 4)) Stem Cell Research Opportunities and Challenges: Report of Discussion Forum (ISBN 0 902 198 88 2) The A-Z of Oral Cancer: An Holistic Route: Report of Oral Health Workshop (ISBN 0 902 198 63 7)
Staffing Matters
We were pleased to welcome the following to the staff team: - Ms Christel Baudere, Personnel Assistant - Ms Emma Faragher, Education Assistant - Ms Jean Finlayson, International Assistant - Mrs Rebecca Gibson, Receptionist/Telephonist
- Mr Gary Johnstone, Accounts Assistant - Mrs Sheila Stuart, Administration Assistant The following members of staff left during the year. - Miss Cathy Crawford, Receptionist/Telephonist, - Mrs Elizabeth Bigelow, Receptionist/Telephonist - Mrs Sharon Jesson, PA to President and General Secretary - Mr Colin Nelson, Facilities Assistant Sandra McDougall, latterly Special Projects Manager and formerly Programme Manager, retired after 29 years service, in June 2003. A well-attended reception was held to mark her service to the Society.
Financial review
After the difficult financial circumstances of the last two or three years, it is pleasing to be able to report a successful outcome in my last year as Treasurer. The result is in line with the expectation set out last year, which was for a balanced budget and a contribution to the rebuilding of the General Fund.
Result for the year

The overall result at the net incoming resources, or revenue, level was a surplus of 59,000, with the General Fund result contributing 18,000 of this sum. The realised surplus for the year after including realised gains on investments rose to 19,000 in the General Fund and 94,000 overall. This improvement from last year is significant and reflects both increased funding levels and the recovery of the investment portfolio, following its realignment last year.
The year 2003/2004: Income and Expenditure Total incoming resources

Total incoming resources of 2.9m have increased by 19% or 0.46m over last year. The increase has come from both donations and grants and support for our charitable activities. The increase in Donations and grants of 15% or 0.15m includes 125,000 of new money for international activities from the Scottish Executive and a donation from the Gannochy Trust for
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the prestige Gannochy Trust Innovation Award. These new sources are offset by the expected lower level of Appeal receipts from Fellows, although a pleasing stream of annual donations is continuing. The support of charitable activities has increased by 19% or 0.27m. The majority of the increase comes from increased support for research and enterprise awards. Income for the latter has almost doubled as the appointment of a further fifteen Scottish Enterprise Fellows during the year flowed through to income and expenditure. Close to half the total expected numbers of appointments have now been made in this very successful scheme, which commenced in 2002 and is scheduled to run until 2007-08. In addition there continues to be a steady flow of PPARC Enterprise Fellows. The income from Scottish Executive for post doctoral Research Fellowships has also risen in line with a rise in the number of postholders to be funded. Income for other activities has shown some decreases, not due to a fall in general activity levels but due to the impact of some one off projects in 2002-03. Investment income has held up well at 92,000, despite the final removal of the transitional tax relief on dividends. The total of this category is boosted by interest received on cash, which is mainly held in the designated funds, and interest of 30,000 received on the loan to the RSE Scotland Foundation. White, who has been seconded on a part-time basis from the British Council. Management and Administration costs have decreased by about 6,000 or 3% overall, but this is mainly due to a lower spend on PR & publicity, as compared to the previous year. The management component of this category has increased by 5,000 or 6%, in line with the overall increase in central costs of 5.8%. It is pleasing to note that some elements of central costs have decreased as a result of careful management, offsetting the rise in salary cost as a result of increased staffing. Worth noting are the 10,000 reduction in professional fees as a result of the transfer of the investment management to Speirs & Jeffrey and a 20% reduction in audit fees obtained by the change in auditors from KPMG to Henderson Loggie. As is explained in the policy on reserves on page 3, the Council undertook a review of the level and purpose of all the Designated Funds. The transfers shown in the Statement of Financial Activities represent the release from the Capital Asset Reserve of a total of 101,000 to match the write down of buildings and the capital repayment of the loan to the Foundation, of which 47,000 is passed to General Fund, net of a transfer of 8,000 to the Staff Development Fund.
Balance Sheet
Net assets have recovered somewhat from the decline last year, being up 4.7% overall to a total of 7.0m; the major reason being the 15% increase from 1.73m to 1.98m in the investment portfolio. The loan to the RSE Scotland Foundation continues to decrease annually by 47,000, the amount of the capital repayment, despite the partial waiver of interest payments, required to assist the Foundation to recover from its deficit of net assets. As can be seen from note 23, continuing progress is being made in this direction. Net current assets have increased by 41% to 551,000. Of the total cash balance, 591,000 is allocated to Designated funds, the major part of which is the cumulative receipts from the Appeal; a further 209,000 relates to restricted income; cash is favourably affected where restricted income is received in advance of the committed expenditure. In this case a deferred income balance is held in creditors - this has increased by 81,000 this year. The net assets are allocated to the funds they support as set out in note 20. As the General Fund balance is much improved, it now has a proportionate share of the investment portfolio as well as the share of the current assets and liabilities. In addition the extent to which the General Fund is funded by cash balances held in the Designated Funds is much reduced.
Resources expended
As would be expected from the increase in income, the total resources expended have increased by 17% or 0.41m from last year. This mainly reflects the increase in support for research and Enterprise awards discussed above. Expenditure categorised as Cost of Generating funds has decreased this year by 75,000, as the formal and very successful first phase of fundraising came to a close. In the present economic climate there has been little activity in the second phase, corporate fundraising, and this is shown by the decline in expenditure. This heading does not include the costs of ongoing negotiation with, claims from and reconciliations for funders of continuing activities. These costs are regarded as support costs for the activities concerned. Grants payable of 1.76m have increased by 34% or 0.45m. This includes the costs of the first Gannochy Trust Innovation Award as well as the disbursement of the increased funding for research and enterprise awards. Expenditure on Activities has increased by 5%, mainly in the area of international activities where, with funding from Scottish Executive and in partnership with the British Council, the Society has established a substantial programme of activity. This is co-ordinated by Michael
Fundraising
As mentioned above, the second phase of fundraising, aimed largely at the corporate sector, has not yet got
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properly under way, due to the continuing uncertainties in the industrial and commercial worlds. It is hoped that in the coming year a positive start will be made in identifying possible sources of support and additional finance for new development. In the longer term, success in fundraising will be essential to enabling the Society to achieve its strategic intentions in the new Corporate Plan. will be required. It is necessary to underline the fact that without supplementary funding support, progress towards these new targets may be very limited. This is my final Report as Treasurer. Looking back over the last five years, I am delighted at the progress that has been made by the Society in achieving a more active and indeed proactive - role, both in Scotland and further afield, particularly in international relationships. Finance has been a key factor in enabling these developments, and I am very conscious of, and grateful for, the contributions of Fellows in the Appeal; not only for the intrinsic benefits these bring, but also as they have encouraged greater support from the Scottish Executive and other donors and supporters of mutually beneficial activities. But my biggest debt is to Kate Ellis and William Duncan for their unfailing support and excellent advice on the financial and administrative management of the Society. My thanks go to them in particular.
Conclusion and future prospects

After two or three years of real difficulty, my hope that we would turn the corner in 2003-2004 has been fulfilled. While still maintaining an expanded programme of activities, the Society has achieved a modest surplus, the investment portfolio has continued its recovery, the re-building of the General Fund has begun, and initial provision has been made to establish a new (designated) Programme Fund to support some events and meetings activities that are desirable but require internal financial support to make them happen. These are very welcome developments, which are due in part to additional funding from a variety of sources, including the first phase of the Appeal, but also to improved housekeeping in the form of tight financial management, budgeting and planning. Hopefully, the procedures now in place will continue to deliver benefits, though there is a continuing need for prudence in expenditure plans and for a watchful eye on staffing and administrative costs. Experience suggests that the unexpected will surely happen at some point, and it is for this reason that the General Fund needs to be re-built towards the target level of 3-6 months expenditure on central costs. This has to be seen as a medium term objective but it is important that we continue to make progress towards it, as a key feature of our risk-management policy. The next phase of the Societys Corporate Plan has now been prepared and in the current year is being implemented successfully. To a large extent, the intention is to consolidate the growth in activity over the last five years, which is consistent with the present financial situation. But there are some new aims also, and if these are to be delivered in full, additional funding
Signed on behalf of the Council
Laurence C Hunter
Sir Laurence Hunter CBE Treasurer September 2004
Andrew Miller
Professor Andrew Miller CBE General Secretary September 2004
INDEPENDENT AUDITORS REPORT TO THE COUNCIL OF THE SOCIETY

We have audited the financial statements on pages 11 to 28. These accounts have been prepared under the historical cost convention as modified to include the revaluation of investments and in accordance with the Statement of Recommended Practice: Accounting by Charities and applicable accounting standards. This report is made solely to the Societys Trustees, as a body, in accordance with regulation 7 of The Charities Accounts (Scotland) Regulations 1992. Our audit work has been undertaken so that we might state to the Societys Trustees those matters we are required to state to them in an auditors report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Society and the Societys Trustees as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of Council and Auditors The Council is responsible for preparing the Trustees Report and, as described above, the financial statements in accordance with the Laws of the Society, relevant United Kingdom legislation and accounting standards. Our responsibilities, as independent auditors, are established in the United Kingdom by statute, the Auditing Practices Board and by our professions ethical guidance. We report to you our opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Laws of the Society, the Law Reform (Miscellaneous Provisions)(Scotland) Act 1990 and the Charities Accounts (Scotland) Regulations 1992. We also report to you if, in our opinion, the Trustees Report is not consistent with the financial statements, if the Society has not kept proper accounting records, if we have not received all the information and explanations we require for our audit, or if information specified by The Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 and The Charities Accounts (Scotland) Regulations 1992 is not disclosed. We are not required to consider whether any statement in the Trustees Annual Report concerning the major risks to which the charity is exposed covers all existing risks and controls, or to form an opinion on the effectiveness of the charitys risk management and control procedures. We read other information contained in the Trustees Annual Report and consider whether it is consistent with the audited financial statements. We consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the financial statements. Our responsibilities do not extend to any other information. Basis of audit opinion We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgments made by the Trustees in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Societys circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements. Opinion In our opinion the financial statements give a true and fair view of the state of the Societys affairs as at 31 March 2004 and of its incoming resources and application of resources including its income and expenditure for the year then ended and have been properly prepared in accordance with the Laws of the Society, The Law Reform (Miscellaneous Provisions) (Scotland) Act 1990 and the Charities Accounts (Scotland) Regulations 1992.
Henderson Loggie Chartered Accountants Registered Auditor Edinburgh September 2004
10
STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 MARCH 2004
Note No. General Fund Designated Funds Restricted Funds 2004 Total 2003 Total
Incoming resources Donations , grants and similar incoming resourcess Activities in furtherance of the Societys objectives Investment income Total incoming resources Resources Expended Cost of generating funds Charitable expenditure: Grants payable Activities in furtherance of the Societys objectives Buildings, management and administration Total resources expended Net incoming resources before Transfers Gains/(losses) on investment assets Realised gains Realised losses
4 5 6
706,333 73,437 46,264 826,034
56,558 49,716 106,274
315,604 1,590,238 58,552 1,964,394
1,078,495
933,881
1,663,675 1,394,109 154,532 112,558 2,896,702 2,440,548
7 8 9 10
9,119 13,872 571,467 213,502 807,960 18,074x
22,117 38,138 9,719 69,974 36,300
1,726,785 232,894 1,959,679 4,715v
9,119
84,257
1,762,774 1,310,936 842,499 223,221 801,603 229,404
2,837,613 2,426,200 59,089 14,348d
1,649 (118) 1,531
13,206 (942) 12,264d 48,564d (38,713) 77,219 87,070 5,677,421 5,764,491
23,040 (1,642) 21,398 26,113 134,728 160,841 1,053,213 1,214,054
37,895 29,308 (2,702) (380,496) 35,193 (351,188) 94,282 (336,840) 221,590 (163,988) 315,872 (500,828) 6,731,776 7,232,604 7,047,648 6,731,776
Realised Surplus/(deficit) for the year Transfers between funds 18 Unrealised gains /(losses) Net Movement in Funds Balance brought forward at 1 April 2003 Balance carried forward at 31 March 2004
19,605. 38,713 9,643. 67,961. 1,142 69,103
11
BALANCE SHEET AT 31 MARCH 2004

Note No. Fixed Assets Tangible fixed assets Fixed Asset Investment Investments at market value Historical Cost :1,862,114. (2003-1,816,974)) Loan to RSE Scotland Foundation Current Assets RSE Scotland Foundation current account Debtors Cash at bank and in hand Money Market and other term deposits - designated funds - General fund 15 -) 86,588) 74,259) 591,045q 208,955q 960,847q Current Liabilities Creditors : Amounts falling due within one year Net Current Assets Net Assets Funds General Fund Designated Funds Restricted Funds 17 18 19 20 Approved by the Council on 20 September 2004 63,125q 73,000q 118,326q 464,945q 36,185 755,581q 13 14a 2,475,829 1,989,023 2,531,269 1,732,239 2004 2003
14b
2,031,560 6,496,412
2,078,368 6,341,876
16
(409,611) 551,236 7,047,648 69,103 5,764,491 1,214,054 7,047,648
(365,681)q 389,900 6,731,776 1,142 5,677,421 1,053,213 6,731,776
Laurence C Hunter Sir Laurence Hunter, CBE Treasurer
12
CASH FLOW STATEMENT YEAR ENDED 31 MARCH 2004

2004 Cash flow statement Net cash outflow from operating activities Returns on investments and servicing of finance: Interest received Dividends received Capital expenditure and financial investment: Purchase of tangible fixed assets: Proceeds from sale of investments Purchases of investments Loan to RSE Scotland Foundation (2,730) 2003 (23,835)
58,230 96,388 154,618 (451) 262,552 (262,552) 46,808 46,357
13,794 91,123 104,917 (421) 1,101,180i (1,087,384) 46,808i 60,183i 141,265 182,877 324,142
Net cash flow before financing Financing Appeal receipts Increase in cash in the year
198,245 56,558 254,803
Reconciliation of net cash flow to movement in net funds (note 25) Increase in cash in the year Net funds at beginning of year Net funds at end of year
254,803 619,456 874,259
324,142 295,314 619,456
Reconciliation of net movement in funds to net cash outflow from operating activities Net incoming resources before Transfers Appeal receipts Dividends receivable Interest receivable Depreciation (Increase)/Decrease in debtors (Increase)/ decrease in RSE Scotland Foundation current account Increase in creditors Net cash outflow from operating activities
59,089 (56,558) (92,636) (58,230) 55,890 (17,340) 78,455 28,598 (2,730)
14,348) (182,877) (94,783) (13,455) 56,529) 9,184) (7,062) 194,281) (23,835)
13
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2004

1 Accounting basis The accounts have been drawn up to comply with the provisions of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1990, the Charity Accounts (Scotland) Regulations 1992 and follow the recommendations of the revised Statement of Recommended Practice for charities (SORP) approved by the Accounting Standards Board in October 2000 and applicable accounting standards. The accounts have been prepared under the historical cost accounting rules as modified to include the revaluation of investments. The accounts comprise three primary financial statements: the Statement of Financial Activities, which incorporates the Income and Expenditure Account, the Balance Sheet and the Cash Flow Statement. Funds The Societys funds are classified in accordance with the definitions in the SORP into Restricted funds, where there are restrictions placed by a donor as to the use of income or capital, Designated funds, where the Council of the Society has set aside sums from its unrestricted funds for a particular purpose, and the General (unrestricted) Fund. The classifications made are as follows: a) General Fund a discretionary Fund available to Council to meet the ordinary activities of the Society. b) Designated Funds Staff restructuring fund In July 2000 Council resolved to create a Staff restructuring fund, to be used at its discretion to provide flexibility in staffing arrangements and in developing future operations. Development Appeal Fund an appeal to provide development finance to implement the Societys Corporate plan Capital Asset Reserve Fund representing the book cost of the rooms at 22-24 George Street, and 26 George Street and an allocation in respect of funding of the refurbishment of 26 George Street. Building Maintenance Fund a reserve to support the future maintenance of the fabric of the Rooms. Dr James Heggie Fund income from this fund supports the Societys activities with young people. Grants Fund a fund created by contributions and legacies from Fellows and used to provide grants to support research activities of Fellows. Programme Fund a fund created in 2004 by transfer from the Development Appeal fund and surplus funds in the Grants fund to act as a source of funding for meetings activities. C H Kemball Fund income from this fund is used to provide hospitality for distinguished visitors from other learned societies and academies. c) Restricted Funds Robert Cormack Bequest to promote astronomical knowledge and research in Scotland Lessells Trust to fund scholarships abroad for engineers Auber Bequest to fund research in Scotland and England by naturalised British Citizens over 60 years of age Prizes Fund to fund various prizes Dryerre Fund to fund postgraduate research in medical or veterinary physiology Piazzi Smyth Legacy Fund to fund high altitude astronomical research CASS Fund to fund academic/industrial liaison Retailing Seminar Fund to fund a programme of seminars on retailing Accounting Policies Incoming resources a) Donations grants and similar incoming resources Subscriptions are accounted for on the basis of the subscription year to October 2004 and include income tax recoverable on subscriptions paid under Gift Aid. Revenue grants are credited to income in the period in which the Society becomes entitled to the resources. Donations of a recurring nature from other charitable foundations and one-off gifts and legacies included in other income are taken to revenue in the period to which they relate. b) Incoming resources for charitable activities Incoming resources for activities are accounted for on an accruals basis. Publication income receivable in foreign currencies is converted into sterling at rates of exchange ruling at the date of receipt. c) Investment income Interest and dividends are accounted for gross in the year in which they are receivable, tax deducted being recovered or recoverable from the Inland Revenue. Resources expended d) Expenditure and support costs All resources expended are included on an accruals basis and where directly attributable allocated to the relevant functional category. Central costs, which include support costs, are allocated to categories of resource expended in proportion to staff salaries e) Tangible Fixed Assets, Depreciation and repairs The Societys principal assets are its buildings in George Street, Edinburgh, which are stated at historical cost. Under FRS 15 the Society depreciates the buildings assuming a 50 year life. It is the policy of the Council to maintain the buildings to a high standard and a provision is made for upkeep of the buildings through a designation from General Fund. Any permanent diminutions in value are reflected in the Statement of Financial Activities. Costs of repairs and maintenance are charged against revenue. Minor equipment is written off to Income & Expenditure Account in the year of purchase. Computer and audio-visual equipment is depreciated on a straight-line basis over four years. f) Investments Investments are stated at their market value at the balance sheet date. Gains and losses on disposal and revaluation of investments are charged or credited in the Statement of Financial Activities and allocated to funds in accordance with their proportionate share of the investment portfolio. g) Pensions The Society participates in defined benefit pension schemes which are externally funded. The cost of providing pensions is allocated over employees working lives with the Society and the Foundation and is included in staff costs.
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Note No. 4a Donations, grants and similar incoming resources Fellows subscriptions Scottish Executive Grant - international activities Scottish Executive Grant other activities Scottish Executive Grant re Scottish Science Advisory Committee Gannochy Trust Other grants and donations Gifts in kind - (value of secondment of staff) Appeal receipts 2004 145,741 125,000 369,087 156,224 104,111 58,774 63,000 56,558 1,078,495 4b Subscriptions Contributions from Fellows Admission Fees Annual Subscriptions Income tax recoverable under gift aid 2003 133,422 14,467 328,000 150,000 75,240 49,875 182,877 933,881
4b
24a 4c
13,340 114,638 17,763 145,741
13,200 103,158 17,064 133,422
4c
Other grants and donations Fleck additional receipt Lessells Trust additional receipt Legacy Donations for Foot & Mouth Disease Inquiry Donations for Fishing Disease Inquiry Sales of ties (net) Sales of sundry publications Other income
1,722 9,948 45,321 585 183 1,015 58,774
3,207 12,291 13,563 44,155 285 584 1,155 75,240
In addition to the donations set out above the Society receives donations made specifically in support of meetings which are included in meetings income (see note 24c) 5a Activities in furtherance of charitable objects incoming resources Promotion of research Meetings Educational activities Academic / Industry links International activities 5b 2004 1,560,490 84,884 6,268 3,000 9,033 1,663,675 5b Promotion of research receipts Scottish Executive grant Research fellowships Teaching fellowships British Petroleum Research Fellowships Trust Caledonian Research Foundation Scottish Enterprise PPARC Enterprise Fellowships Lloyds TSB Foundation for Scotland 2003 1,202,183 133,230 41,700 16,996 1,394,109
538,690 25,124 143,909 30,979 591,216 28,332 202,240 1,560,490
476,086 24,059 148,497 27,863 312,830 25,840 187,008 1,202,183
15

Note No. 6 Investment income Dividends (Net) Income tax recoverable on dividend income Interest arising on deposits (Gross) Interest receivable from RSE Scotland Foundation (note 23) 2004 92,636 3,666 27,905 30,325 154,532 2003 94,783 4,319 13,456 112,558
Cost of generating funds Fundraising costs Proportion of central costs (note 11)
2,174 6,945 9,119
51,078 33,179 84,257
8a
Grants payable Promotion of Research Prizes and Grants
8b
1,625,549 137,225 1,762,774
1,273,657 37,279 1,310,936
8b
Promotion of Research Direct Costs : Restricted Funds SEELLD Research Fellowships - Support SEELLD Research Fellowships - Personal SEELLD Teaching Fellowships BP Research Fellowships CRF European Fellowships Enterprise Fellowships (Scottish Enterprise) Enterprise Fellowships (PPARC) Lloyds TSB Foundation for Scotland Fellowships Robert Cormack Bequest John Moyes Lessells Scholarship Auber Bequest Awards Henry Dryerre Scholarship Direct costs : Designated Funds D S McLagan Travel Grant Direct costs : General Funds Library Proportion of central costs (note 11)
99,698 377,203 19,145 496,046 133,039 27,632 510,445 23,291 181,615 3,957 22,810 4,000 11,040 1,413,605 900 1,414,505 363 1,414,868 210,681 1,625,549
77,629 344,920 18,144 440,693 137,172 22,297 285,059 20,090 170,733 6,804 32,249 3,100 1,118,197 1,517 1,119,714 454 1,120,168 153,489 1,273,657
9a
Charitable activities Publications Meetings Educational activities Academic / Industry links Fellowships Office International activities Evidence Advice and Comment Scottish Science Advisory Committee
9b
20,583 240,470 64,988 9,754 48,908 186,304 115,268 156,224 842,499
22,152 282,243 78,815 9,796 45,386 119,103 94,108 150,000 801,603
16

2004 9b Publications Editorial & management costs of journals Less surplus onf journals published by RSE Scotland Foundation Other publications Proportion of central costs (note 11) 17,132 (7,137) 9,995 10,588 20,583 2003 19,290 249 44 19,583 2,569 22,152
The RSE Scotland Foundation became publisher of the Societys journals and Year Book with effect from the 1997 volumes. The Society retains copyright and incurs editorial costs in respect of these publications. The Society has received a donation from the RSE Scotland Foundation equivalent to the Foundations net surplus on publications. 10 Buildings, Management and administration Buildings and Maintenance 22-24 George Street - depreciation 26 George Street - depreciation 22-24 George Street - expenditure from designated funds Management and secretariat Publicity 2004 13,518 22,061 32,949 4,101 72,629 85,074 65,518 223,221 2003 9,238 22,061 32,949 4,457 68,705 79,780 80,919 229,404
11 Central Costs Total Payroll: Less paid by Scottish Science Advisory Committee Less paid by RSE Scotland Foundation Salaries (note 12) Value of secondments Staff training, agency and recruitment costs Total staff costs Other Costs: Establishment expenses (22-24 George St) Establishment expenses (26 George St) Computer and equipment costs Communication, stationery and printing costs Travel and subsistence, hospitality Miscellaneous Professional fees Audit fee Depreciation Total Central Costs
685,796 (62,704) (81,816) 541,276 63,000 17,815 622,091
619,061 (59,347) (90,529) 469,185 49,875 25,610 544,670
31,822 93,743 3,888 43,159 19,318 2,778 8,346 5,795 880 209,729 831,820
23,930 105,545 4,432 55,906 21,683 2,066 18,562 7,344 1,519 240,987 785,657
17

11 Central Costs (Continued) In addition to direct costs incurred, central costs have been apportioned to expenditure on functional activities, as follows: General Fund Cost of generating funds Fundraising Support costs - charitable activities Publications Meetings Educational Activities Academic/Industry links Fellowships Office International links Evidence, advice & comment Promotion of Research Prizes and Grants Management and administration Buildings and Maintenance Management and Secretariat Publicity 6,945 10,588 152,077 27,677 6,945 48,906 83,774 69,946 2,667 3,218 13,518 79,457 50,060 555,778 Designated Funds Restricted Funds 2004 Total 6,945 10,588 161,865 54,321 6,945 48,906 83,774 74,508 210,681 24,635 13,518 85,074 50,060 831,820 2003 Total 33,179 2,569 167,864 48,113 10,474 45,386 62,789 94,403 153,489 15,127 9,238 79,780 63,246 785,657
9,788 26,644
5,362
4,562 208,014 16,055
5,617 37,623 238,419
Total 2004 12 Employees Wages and salaries Social Security Costs Other pension costs (note 21) 566,960 43,415 75,421 685,796
Paid by SSAC (52,907) (4,644) (5,153) (62,704)
Paid by Foundation (67,694) (5,175) (8,947) (81,816)
Paid by Society 446,359 33,596 61,321 541,276
Paid by Society 2003 398,746 24,743 45,696 469,185
The average number of employees of the Society including those employed under joint contracts with the RSE Scotland Foundation during the year was 26(2003 25). Of these two were employed in respect of the Scottish Science Advisory Committee. One member of staff earned over 50,000 per year in respect of duties with the Society.
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22-24 George St. 13 Tangible Fixed Assets Cost At 1 April 2003 Additions Disposals At 31 March 2004 Depreciation At 1 April 2003 Charge for the year At 31 March 2004 Net Book Value At 31 March 2004 At 31 March 2003 Value at 1 April 2003 14a Fixed Asset Investments Managed Funds 350,623 Fixed interest 613,394 UK equities 743,099 Overseas equities (managed funds) 25,124 Cash deposits 1,732,239 26 George St. Equipment Computer Total
1,103,038 1,103,038
1,647,468 1,647,468
68,348 451 68,799
40,036 40,036
2,858,890 451 2,859,341
88,244 22,061 110,305 992,733 1,014,794 Investments made at cost
131,796 32,949 164,745 1,482,723 1,515,672 Proceeds on sale of Investments
67,990 436 68,426 373 358 Gain/(loss) on sale
39,591 445 40,036 445 Revaluation
327,621 55,891 383,512 2,475,829 2,531,269 Market value at 31 March 2004
68,047 175,256 (243,303) -
(40,315) (73,473) (120,521) (28,243) 262,552 -
11,415) (2,702) 23,361) 3,119) 35,193
104,500 (11,400) 128,490 221,590
426,223 593,866 949,685 19,249 1,989,023
The gain on sale of investments measured against their historical cost was 45,140 (2003 deficit 313,187). Investments comprising more than 5% of the portfolio were as follows: Treasury 5 3/4 stock 2009-112,657; Treasury 5% stock, 2012-132,899; Treasury 5 1/2 % loan 2008/12-134,574; Treasury 5% stock 2014-133,185; Murray International Trust-107,088; Scottish Mortgage Trust - 103,700. 2004 14b Loan to RSE Scotland Foundation Due within one year Due after one year 46,808 1,984,752 2,031,560 2003 46,808 2,031,560 2,078,368
The Loan initially bears interest at 4% per annum, capped at the amount of rent received by the Foundation, and is repayable over the period to 30 June 2047, the expiration of the lease of 26 George Street. On 23 June 2003 Council agreed to waive part of the interest payment due for the year ended 31 March 2004 and interest paid was restricted to rental received from the third floor letting. The capital repayment for the year of 46,808 was paid at the end of the financial year as normal.
19

2004 15 Debtors General debtors Stock of ties Prepayments and accrued income Income Tax Recoverable 59,752 2,442 6,630 17,764 86,588 2003 64,262 3,492 5,246 73,000
16 Creditors: Amounts falling due within one year General creditors RSE Scotland Foundation current account Accruals and deferred income University of Glasgow (note 19) Symposia income deferred
60,715 15,330 301,709 17,737 14,120 409,611
102,398 220,991 16,632 25,660 365,681
17 General Fund At 1 April 2003 Net movements in funds for the year from Statement of Financial Activities At 31 March 2004
1,142 67,9610 69,103
73,593) (72,451) 1,142)
20

Capital Asset Reserve Building Staff Development Maintenance Restructuring Appeal Fund Fund Fund Prog. Fund C H Kemball Fund Grants Dr James Fund Heggie Fund Total
18 Designated Funds At 1 April 2002 4,608,834) 155,866) Investment income -) 5,001) Other income Less Direct expenditure RSE admin and staff costs Surplus/(deficit) for the year Transfers between funds Re building depreciation Re loan repayment Re Programme Fund from General Fund (55,010) (46,808) (101,818) 55,010 55,010 8,095 8,095 (33,688) (33,688) 72,737 72,737 -) (39,049) (39,049) (46,808) 8,095 (38,713) 33,255 1,067 275,823 10,090 56,558 -) 14,627) 424,616) 164,400)) 5,677,421 812 23,606) 9,140 49,716 56,558
(4,101) -
(5,617)
(828) -
(16,754) (5,363)
(10,668) (26,643)
(32,351) (37,623)
-)
900)
1,067
61,031)
-)
(16)
1,489)
(28,171)
36,300
Net gains on investment assets Realised -) Unrealised -) At 31 March 2004 4,507,016)
-) 211,776)
42,417
-) 303,166)
72,737)
297 1,872 16,780)
8,627 54,317
3,340 21,030
12,264 77,219 5,764,491)
450,000 160,599)
As described in note 2, the Development Appeal Fund comprises the receipts from the Appeal launched in 2001 to raise funds to finance developments in implementing the Societys Corporate Plan. The Programme Fund is a new fund created by the the Council to provide support for meetings activities.
21

Robert Cormack Bequest 19 Restricted Funds At 1 April 2003 Donations and Grants Income from activities Investment income Less Direct Expenditure RSE Admin and staff Surplus/(deficit) for year 82,841) -8 -8 4,605) (3,957) (1,603) (955) Lessells Trust Auber Bequest Prizes Fund Dryerre Fund Others Restricted Income 25,655 -8 -8 1,426 Total
292,507) 252,742) 9,9480 -8 -8 -8 16,262) 14,051) (22,810) (5,659) (2,259) (4,000) (4,890) 5,161)
54,537) 344,931) -8 -8 -8 -8 3,032) 19,176) -8 (11,040) (1,055) (6,674) 1,977 1,462
- 1,053,213) 305,656 315,604) 1,590,238 1,590,238) 58,552)
(1,600) (1,677,853) (1,721,260) (497) (218,041) (238,419) (671) 4,715
Net gain on investment assets Realised 1,683 Unrealised 10,597 At 31 March 2004 ) 94,166
5,943 37,418 333,609
5,135 32,331 295,369
1,108 6,976
7,008 44,124
521 3,282 28,787
21,398 134,728 1,214,054
64,598 397,525
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 W.S. Bruce Memorial Fund, The Dr D.A. Berry Fund, The Henry Duncan Prize Lecture Fund and The BP Prize Lecture in the Humanities Fund. Others comprise the Piazzi-Smyth Legacy Fund, the Retailing Seminar Fund and the CASS Fund. The Retailing Seminars Fund arises from the donation of the surplus from an earlier series of meetings that publicised research in the retailing sector. The fund is to be used to support meetings in this area. Under the terms of the Lessells Trust the University of Glasgow is entitled to 10% of additional amounts received by the Society from the Trust. The balance included in Creditors at 31 March 2004 represents the total sum apportioned but not yet paid over to the University (note 16).
Unrestricted Funds 20 Analysis of Assets between Funds Fund balances at 31 March 2004 are represented by : Tangible fixed assets Investments Loan to RSE Scotland Foundation Current assets RSE Scotland Foundation current account Deposits Bank overdraft less cash Current liabilities
Designated Funds
Restricted Funds
2004 Total
2003 Total
373) 108,539) - m) 86,588) (15,330) - m) (54,788) (56,279) 69,1031
2,475,456 666,430 2,031,560 - m) - m) 591,045 - m) - m) 5,764,491
- m)) 1,214,054) - m)) - m)) - m)) 208,955) 129,047) (338,002) 1,214,054)
2,475,829) 1,989,023) 2,031,560) 86,588) (15,330) 800,000) 74,259) (394,281) 7,047,648)
2,531,269) 1,732,239) 2,078,368) 73,000) 63,125) 501,130) 118,326) (365,681) 6,731,776)
22

21 Pension Costs a) USS The Society participates in the Universities Superannuation Scheme, a defined benefit pension scheme which is externally funded and contracted out of the State Second Pension (S2P). The assets of the Scheme are held in a separate trustee-administered fund. The fund is valued every three years by a professionally qualified independent actuary using the projected unit method, the rates of contribution payable being determined by the trustee on the advice of the actuaries. In the intervening years the actuaries review the progress of the scheme. It is not possible to identify each institutions share of the underlying assets and liabilities of the scheme and hence contributions to the scheme are accounted for as if it were a defined contribution scheme. The cost recognised within the deficit for the year is equal to the contributions payable to the scheme for the year. The latest actuarial valuation of the scheme was at 31 March 2002. The most significant assumptions, those relating to the rate of return on investments and the rates of increase in salary and pensions, are as follows: Past Service Liabilities 5% 3.7% 2.7% Future Service Liabilities 6% 3.7% 2.7%
Investment return Salary Increase Pension Increase
At the valuation date the market value of the schemes assets was 19,938 million and the value of past service liabilities was 19,776 million leaving a surplus of assets of 162 million. The value of the assets represented 101% of the benefits that had accrued to members, after allowing for expected future increases in earnings. The contribution rate payable by the Society was 14.0% of pensionable salaries. The actuary has confirmed it is appropriate to take the pension charge to be equal to the actual contribution paid in the year. b) Lothian Pension Fund The Society 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 at a cost to ascertain the share of assets and liabilities relating to individual admitted bodies. The assets of the Scheme are held in a separate trustee-administered fund. The fund is valued every three years by a professionally qualified independent actuary using the projected unit method, the rates of contribution payable being determined by the trustee on the advice of the actuaries. In the intervening years the actuaries review the progress of the scheme. The latest actuarial valuation of the scheme was at 31 March 2002. The major assumptions used by the actuary were that, over the long term, the return on the schemes assets would be 6.2% per annum, salary increases would average 4.1% per annum and present and future pensions would increase at a rate of 2.6% per annum. At the valuation date the market value of the schemes assets was 1,792 million and the value of past service liabilities was 1,866 million. The value of the assets represented 96% of the benefits that had accrued to members, after allowing for expected future increases in earnings. The contribution rate payable by the Society was 285% of employees contributions of 6% of pensionable salaries, amounting to 17.1%. The actuary has confirmed that it is appropriate to take the pension charge to be equal to the actual contribution paid during the year. Whilst the Society continues to account for pension costs in accordance with Statement of Standard Accounting Practice 24 Accounting for Pension costs, under FRS 17 Retirement benefits the following transitional disclosures are required: The valuation at 31 March 2002 has been updated by the actuary on an FRS 17 basis at 31 March 2004; the major assumptions used in this valuation were: 2004 2003 Rate of increase in salaries 4.4% 4.0% Rate of increase of pensions in payment 2.9% 2.5% Discount rate 5.5% 5.4% Inflation assumption 2.9% 2.5% The assumptions used by the actuary are the best estimates chosen from a range of possible actuarial assumptions which, due to the timescale covered, may not necessarily be borne out in practice. 23

21 Pension Costs b) Lothian Pension Fund (Continued) Scheme assets The fair value of the scheme assets, which are not intended to be realised in the short term and may be subject to significant change before they are realised, and the present value of the schemes liabilities, which are derived from cash flow projections over long periods and thus inherently uncertain, were: Expected Value at Expected Value at return 31 March 2004 return 31 March 2003 000 000 Equities 7.7% 1,441,947 8.0% 1,029,900 Bonds 5.1% 117,334 4.8% 125,000 Other- Property 6.5% 156,085 6.0% 153,187 Cash 4.0% 124,888 4.0% 37,100 Whole scheme assets 7.2% 1,840,254 7.4% 1,345,100 000 345)) (429)) (84)) 000 99) (308) (109)
Of which RSE share Present value of scheme liabilities Deficit in the scheme Net pension (liability)
The amount of this pension deficit would have a consequential effect on reserves. The movement in the net pension asset/ liability during the year comprised: 000 Deficit at 1 April 2003 (109) Current service cost (49) Employer contributions 60) Net return on assets Expected return on employer assets 18) Interest on pension scheme liabilities (19) (1) Actuarial gains Actual return less expected return on pension assets 48 Experience losses on Scheme liabilities (1) Changes in assumptions underlying present value of scheme liabilities (32) 15 Deficit at 31 March 2004 (84) If FRS 17 had been fully adopted the movements would have been recognised in arriving at net incoming resources other than the actuarial loss which would have been included in unrealised losses. c) Pension Charge The total pension charge for the year was 66,274 (2003 45,696) 22 Transactions with Council members No member of Council received any payments other than reimbursement of expenditure on travel and subsistence costs actually and necessarily incurred in carrying out their duties as Councillors and Officers. The aggregate of such reimbursement amounted to 5,893 (2002 6,401). 23 RSE Scotland Foundation RSE Scotland Foundation is a charitable trust, recognised in Scotland as Scottish charity number SCO24636. It was created in March 1996 with the object of advancing the education of the public in Scotland in science and engineering and in so doing to conserve the scientific and cultural heritage of Scotland. The President, General Secretary, Treasurer, Curator and a Vice President of the Society are ex officiis Trustees of the Foundation, which draws on the resources of the Society in carrying out its objects. The Foundation also has five nominated Trustees. The Foundation became publisher of the Societys journals under a Publications Rights Licence effective from 1 January 1997. The Foundation has also carried out work in support of the Societys involvement in the Scottish Science Trust and the implementation of the Technology Ventures Strategy. On 1 July 1997 the Society 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 Society agreed to make funding of up to 2.3 million available to the Foundation in support of the refurbishment. The agreed terms of the loan are as described in note 14 b. A waiver of interest was agreed for the years ending 2002, 2003 and a partial waiver in 2004 to assist the Foundation in extinguishing its deficit of net assets. 24

23 RSE Scotland Foundation (Continued) At 31 March 2004 the financial position of the RSE Scotland Foundation was as follows: 2004 Net Liabilities Fixed assets Current assets Current liabilities RSE Current Account Loan from Royal Society of Edinburgh Other Creditors over one year:-Loan from Royal Society of Edinburgh Represented by Income and Expenditure Account 2,013,615) 91,853) -) (46,808) (144,537) (1,984,752) 2003 2,061,700) 58,624) (63,125) (46,808) (130,298) (2,031,560)
(70,629)
(151,467)
The Statement of Financial Activities for the year ended 31 March 2004 was as follows: Incoming resources Donations, grants and similar incoming resources Charitable activities Publications Licence fees Conference Facilities letting ( net ) Activities for generating funds Rental and service charges receivable Fundraising event Investment income - bank interest 2004 -) 93,480) 91,400) 63,760) 196,800) -) 216) 445,656) 2003 249) 98,470) 100,417) 74,343) 118,140) 33,146) 479) 425,244)
Cost of generating funds Building management Net incoming resources available for charitable application Charitable expenditure Conference facilities hire Publications Building costs recovered) Donation to RSE Development Appeal fund Management and secretariat Depreciation on leasehold improvements Total Charitable expenditure Total resources expended Net incoming resources and movement in funds for the year Balance brought forward Balance carried forward
52,153)
45,371)
393,503) 53,571) 93,480) 91,400) -) 29,747) 44,467) 312,665) 364,818) 80,838) (151,467) (70,629)
379,773) 46,477) 98,718) 100,417) 33,146) 38,493) 44,446) 361,697) 407,168) 18,076) (169,543) (151,467)
The Council of the Society has confirmed to the Trustees of the Foundation that they will continue to support the Foundation and will not call for the repayment of the current account balance in the foreseeable future.
25

24 Supplementary Information ; grants, donations, receipts a) Scottish Executive Grants Income Enterprise and Lifelong Learning Department Promotion of Research Scottish Science Advisory Committee Activities grant International activities Other departments support for meetings GM Gene Flow Scotland in Sweden 2004 2003
563,813 150,000 369,087 125,000 1,207,900
500,145 150,000 328,000 14,467 2,000 18,096 1,012,708
Allocated to Functional Activities Scottish Science Advisory Committee Meetings office Educational activities Publications office Promotion of research Evidence advice and comment International activities Management and secretariat Buildings - Establishment expenses - Maintenance
Direct Costs 150,000 9,410 496,046 100,607 756,063
Staff and other costs 126,062 27,677 10,588 67,767 69,946 25,000 79,457 31,822 13,518 451,837
2004 Total 150,000 126,062 27,677 19,998 563,813 69,946 125,607 79,457 31,822 13,518 1,207,900
2003 Total 150,000 81,787 40,335 18,623 500,145 94,403 14,467 79,780 23,930 9,238 1,012,708
The Scottish Executive provides grant-in-aid under the powers of S.23 National Heritage (Scotland) Act 1985 to meet the costs of SEELLD Research Fellows, and costs of activities including the cost of maintaining the Societys premises and a share of the Societys staff and other costs. In addition to the cash grants set out above, the Society benefited from a staff secondment from the Scottish Executive, which has been included in the accounts at its value to the Society of 36,750. Expenditure in relation to the Scottish Science Advisory Committee comprised: 2004 b 95,504 15,079 4,302 4,767 6,734 10,918 14,351 4,569 156,224 (7,919) 1,695 150,000 2003 b 92,225 19,689 6,445 8,174 6,214 1,280 4,091 3,963 142,081 7,919 150,000
Chairmans fee, salaries and other staff costs Establishment Office costs Travel and subsistence Committee and working groups PR and publicity Printing Professional services Less balance brought forward Balance carried forward
This includes amounts paid to the Society for use of office space and services.
26

BP Research Fellowship Trust 24 b) Donations Income Promotion of research receipts Transferred to deferred income Meetings Income Caledonian Research Foundation Scottish Lloyds TSB Wellcome Enterprise Foundation for Trust Scotland
143,909 143,909
30,979 26,193 57,172
591,216 591,216
273,750) (71,509) -) 202,241)
3,556 3,556
Costs Promotion of research Conference Workshops RSE administration and staff costs
133,039 10,870 143,909
27,362 17,394 12,416 57,172
510,445 80,771 591,216
181,615) -) -) 20,626) 202,241)
2,567 989 3,556
The BP Research Fellowship Trust supports postdoctoral fellowships in Scottish HEIs. The Trustees of the Trust are the President, General Secretary and Treasurer of the Royal Society of Edinburgh. The Caledonian Research Foundation supports postdoctoral fellowships in biomedical sciences and European visiting fellowships, a prize lecture and an international conference. The Wellcome Trust sponsors a series of research workshops. The Lloyds TSB Foundation for Scotland supports postdoctoral Fellowships, postgraduate studentships and lectures and conferences to fund and disseminate research aimed at improving the quality of life for an ageing population. c) Donations in Support of Meetings The Society gratefully acknowledges all those who make donations in support of meetings. The companies, trusts and other bodies that made donations of 1,000 or more in the year ended 31 March 2004 are as follows: Archibald Campbell & Harley WS The Binks Trust British Neuropathological Society The Darwin Trust Food Standards Agency Scotland Historic Scotland Pathological Society of Great Britain Royal College of Surgeons of Edinburgh Scottish Executive Health Department Sir Walter Gibley Memorial Company Limited
25 Analysis of net funds
Cash at bank Deposits re restricted funds Deposits re designated funds
At 31 March 2004 74,259 208,955 591,045 874,259
Cash flows (44,067) 172,770) 126,100) 254,803)
At 1 April 2003 118,326 36,185 464,945 619,456
27

26 Main Activities Meetings Lectures Symposia/Conferences/Seminars Debates Workshops International activities Exchange visits - bilateral (weeks) Exchange visits - open (weeks) Seminars and discussion forum Voyages of discovery - visits by overseas industrialist Science Scotland international magazine (issues) Visitors from overseas institutions Young Peoples events Science Masterclasses Maths Masterclasses Schools Lectures Christmas Lectures Discussion Forum RSE Roadshow Physics Masterclasses Science Summer Camp Publications (issues) Proceedings A Transactions Directory & Review ReSourcE (RSE News) RSE Fellows Number of Fellows Candidates for Fellowship Research Fellowships and Scholarships Postdoctoral Research Fellows in post Support Research Fellows European Visiting Research Fellows Enterprise Fellows in post Applications for Research Fellowships Studentships appointed Prizes and Grants Royal Medals Prizes awarded Grants awarded Gannochy Trust Award Central Administration Major inquiries Submissions to Government and public agencies External events held at RSE 22-26 George Street 2003/04 Number 22 10 1 3 18 19 3 2 1 9 32 12 13 2 1 1 4 1 6 3 2 3 1385 216 15 5 7 23 119 2 3 3 23 1 1 24 130 2002/03 Number 27 9 2 5 2 20 8 7 2 1 1 4 1 6 4 2 3 1333 249 16 3 6 10 117 4 3 4 19 1 34 175
28
Professional Advisers Architects Hurd Rolland Partnership, 13 Manor Place, Edinburgh Auditors Henderson Loggie 10 Great Stuart Street, Edinburgh Bankers Bank of Scotland plc, 38 St Andrew Square, Edinburgh Stockbrokers/Investment Advisers Speirs & Jeffery & Co Ltd Glasgow Solicitors Shepherd & Wedderburn, WS, Saltire Court, 20 Castle Terrace, Edinburgh
Further information about the activities of the Royal Society of Edinburgh and additional copies of this Trustees Report may be obtained from: Dr W. Duncan Executive Secretary The Royal Society of Edinburgh 22-26 George Street Edinburgh EH2 2PQ Tel: 0131-240 5000 Fax: 0131-240 5024 e-mail: rse@royalsoced.org.uk http://www.royalsoced.org.uk
Printed & bound by: AlphaGraphics 9c South Gyle Crescent South Gyle Industrial Estate Edinburgh EH12 9EB
The Royal Society of Edinburgh 2004
The Royal Society of Edinburgh 22-26 George Street Edinburgh EH2 2PQ

Trustees' Report & Accounts 2003-2004

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Trustees Report & Accounts 2003-2004

COUNCIL OF THE SOCIETY 1999-2000

Auditors Report ................................................................................ 10

COUNCIL OF THE SOCIETY 2003 2004

The Society is registered in Scotland as Scottish Charity No. SCO00470

Inland Revenue Claim Board Reference CR 18102

Statement of Councils responsibilities

Operating policies - grant making

Investment powers and policy

Reserves policy and funds

Review of the year

Research Awards, Excellence and Enterprise

The Corporate Plan

Links with Young People

Policy, Evidence, Advice & Comment

Result for the year

The year 2003/2004: Income and Expenditure Total incoming resources

Conclusion and future prospects

Signed on behalf of the Council

INDEPENDENT AUDITORS REPORT TO THE COUNCIL OF THE SOCIETY

Henderson Loggie Chartered Accountants Registered Auditor Edinburgh September 2004

706,333 73,437 46,264 826,034

56,558 49,716 106,274

315,604 1,590,238 58,552 1,964,394

1,663,675 1,394,109 154,532 112,558 2,896,702 2,440,548

9,119 13,872 571,467 213,502 807,960 18,074x

22,117 38,138 9,719 69,974 36,300

1,726,785 232,894 1,959,679 4,715v

1,762,774 1,310,936 842,499 223,221 801,603 229,404

2,837,613 2,426,200 59,089 14,348d

1,649 (118) 1,531

13,206 (942) 12,264d 48,564d (38,713) 77,219 87,070 5,677,421 5,764,491

23,040 (1,642) 21,398 26,113 134,728 160,841 1,053,213 1,214,054

19,605. 38,713 9,643. 67,961. 1,142 69,103

BALANCE SHEET AT 31 MARCH 2004

(409,611) 551,236 7,047,648 69,103 5,764,491 1,214,054 7,047,648

(365,681)q 389,900 6,731,776 1,142 5,677,421 1,053,213 6,731,776

Laurence C Hunter Sir Laurence Hunter, CBE Treasurer

CASH FLOW STATEMENT YEAR ENDED 31 MARCH 2004

58,230 96,388 154,618 (451) 262,552 (262,552) 46,808 46,357

198,245 56,558 254,803

254,803 619,456 874,259

324,142 295,314 619,456

59,089 (56,558) (92,636) (58,230) 55,890 (17,340) 78,455 28,598 (2,730)

14,348) (182,877) (94,783) (13,455) 56,529) 9,184) (7,062) 194,281) (23,835)

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2004

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2004

13,340 114,638 17,763 145,741

13,200 103,158 17,064 133,422

1,722 9,948 45,321 585 183 1,015 58,774

3,207 12,291 13,563 44,155 285 584 1,155 75,240

538,690 25,124 143,909 30,979 591,216 28,332 202,240 1,560,490

476,086 24,059 148,497 27,863 312,830 25,840 187,008 1,202,183

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2004

2,174 6,945 9,119

51,078 33,179 84,257

Grants payable Promotion of Research Prizes and Grants

1,625,549 137,225 1,762,774

1,273,657 37,279 1,310,936

20,583 240,470 64,988 9,754 48,908 186,304 115,268 156,224 842,499

22,152 282,243 78,815 9,796 45,386 119,103 94,108 150,000 801,603

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2004

685,796 (62,704) (81,816) 541,276 63,000 17,815 622,091