Trustees report and financial statements 2020

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION THE ROYAL SOCIETY TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 52 SCIENCE SHAPING THE WORLD WE LIVE IN 53 Audit Committee The Audit Committee approves the internal audit programme; reviews internal audit reports, and tracks implementation of any actions arising; approves the external audit plan; discusses the audit and matters arising from it with the external auditors and management; and makes recommendations to Council in relation to the financial statements and associated matters. Committee structure Council The Trustee body under charity law. Council has a system of committees and determines the memberships of committees, which comprise Fellows and many non-Fellows with relevant expertise. Delegations of authority by Council are explicit in the terms of reference of committees. Board A subcommittee of Council comprising the President and the Officers. Board oversees fundraising and considers on behalf of Council matters that require urgent attention and matters, such as international affairs, that span many programmes. Planning and Resources Committee The Planning and Resources Committee monitors financial performance, oversees the Society’s trading activities and the provision of services and recommends the Society’s financial plan and its annual budgets to Council for approval. Remuneration Committee The Remuneration Committee considers pay-related matters, including remuneration of key management personnel. Trading subsidiary boards The Board of Royal Society Trading Limited oversees the activities undertaken by the trading subsidiary, whose primary purpose is to manage the running of operations at Chicheley Hall. The Board of Royal Society (London) Ltd oversees the trading activities processed by the trading subsidiary. Fellowship committees The members of Council, Fellows and Foreign Members are elected by the Fellowship. Council determines the candidates for election on the advice of its Nominations Committee and sectional committees. The sectional committees span the scientific disciplines and a committee to advise on general and honorary candidates whose contributions to science are not primarily in research. Financial, planning and subsidiary committees Committees make recommendations to Council for approval in a range of areas, including financial planning and budgeting, the effectiveness of the Society’s internal control system, external audit and financial statements, pay-related matters and trading activities. Programme committees There are programmes and associated committees in diversity, education, grants, industry and translation, prizes, public engagement, publishing, science policy, and scientific meetings, among others. If they are not themselves members of Council, Chairs of these committees are invited to attend specific Council meetings to present reports. Investment Committee The Society’s Investment Committee advises Council on investment policy, determines investment strategy, and oversees the performance of the Society’s investment managers. The Council members (who are the Trustees of the Society) are responsible for preparing the Trustees’ annual report and the financial statements in accordance with applicable law and regulations. Charity law requires the Council to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under charity law the Council members must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and charity and of the incoming resources and application of resources, including the income and expenditure, of the group for that period. Statement of Trustees’ responsibilities In preparing these financial statements, the Council members are required to: • select suitable accounting policies and then apply them consistently; • make judgements and accounting estimates that are reasonable and prudent; • state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business. The Council members are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Financial statements are published on the charity’s website in accordance with legislation in the UK governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the charity’s website is the responsibility of the Council. The Council's responsibility also extends to the ongoing integrity of the financial statements contained therein. The current Council members, having made enquiries of fellow Council members and the charity’s auditors, confirm that: • so far as they are aware, there is no relevant audit information of which the charity’s auditors are unaware; and • they have taken all reasonable steps they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charity’s auditors are aware of that information. This report was approved by Council on 6 October 2020 and signed on their behalf by: Venki Ramakrishnan President of the Royal Society