Trustees report and financial statements 2020

STRATEGIC REPORT GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION THE ROYAL SOCIETY TRUSTEES’ REPORT AND FINANCIAL STATEMENTS 56 SCIENCE SHAPING THE WORLD WE LIVE IN 57 Consolidated statement of financial activities For the year ended 31 March 2020 (incorporating an income and expenditure account) Consolidated and charity balance sheets As at 31 March 2020 Notes Unrestricted funds £’000 Restricted funds £’000 Expendable endowment funds £’000 Permanent endowment funds £’000 2020 Total funds £’000 2019 Total funds £’000 Income and endowments from donations and legacies 1 536 269 – – 805 832 Income from charitable activities Grants for charitable activities 4 992 107,537 – – 108,529 89,246 Trading in furtherance of charitable activities 3 10,905 638 – – 11,543 11,568 11,897 108,175 – – 120,072 100,814 Other trading activities 3 1,975 – – – 1,975 1,924 Income from investments 2 1,249 1,004 1,070 3,528 6,851 8,051 Other income 5 – 76 – – 76 72 Total income 15,657 109,524 1,070 3,528 129,779 111,693 Expenditure on raising funds 6 3,388 413 127 484 4,412 4,254 Expenditure on charitable activities 7 Promoting science and its benefits 72 173 – – 245 276 Supporting and recognising excellence in science 10,845 93,246 – – 104,091 83,772 Providing scientific advice for policy 1,966 2,299 – – 4,265 4,298 Fostering international and global cooperation 905 15,261 – – 16,166 17,367 Education and public engagement 3,108 1,417 – – 4,525 4,753 16,896 112,396 – – 129,292 110,466 Total expenditure 20,284 112,809 127 484 133,704 114,720 Net (expenditure)/income before net gains/ (losses) on investments (4,627) (3,285) 943 3,044 (3,925) (3,027) Net (losses)/gains on investments 18 (2,212) (1,634) (4,645) (15,283) (23,774) 18,264 Net (expenditure)/income for the year (6,839) (4,919) (3,702) (12,239) (27,699) 15,237 Gross transfers between funds 23 2,822 1,218 (735) (3,305) – – Actuarial gains/(losses) on defined benefit pension scheme 25 780 – – – 780 (736) Net movement in funds (3,237) (3,701) (4,437) (15,544) (26,919) 14,501 Total funds brought forward 83,682 40,430 41,426 138,629 304,167 289,666 Total funds carried forward 80,445 36,729 36,989 123,085 277,248 304,167 All of the above results are derived from continuing activities except those from Royal Society Trading Limited, which ceased trading on 23 March 2020. There are no other gains or losses other than those stated above. The income and expenditure in the consolidated statement of financial activities for the Group that relate to the discontinued trading subsidiary were £1.8m (2019: £1.8m) and £2.3m (2019: £2.3m), respectively. The consolidated statement of financial activities is for the Group as a whole. The Charity’s total income for the year was £129.3m (2019: £111.4m). The Charity’s total funds decreased by £27.6m in the year (2019: £14.6m increase). The notes that follow form part of the financial statements. Group Charity Notes 2020 £’000 2019 £’000 2020 £’000 2019 £’000 Fixed assets Tangible assets 15 14,074 13,354 14,074 13,354 Heritage assets 17 49,476 49,416 49,476 49,416 Investments 18 234,075 261,260 234,075 261,260 297,625 324,030 297,625 324,030 Current assets Stocks 40 43 26 20 Debtors receivable within one year 19 3,420 6,508 3,479 7,513 Cash at bank and in hand 4,759 11,408 4,487 10,653 8,219 17,959 7,992 18,186 Creditors: amounts falling due within one year 20 (17,750) (26,101) (17,253) (25,403) Net current liabilities (9,531) (8,142) (9,261) (7,217) Total assets less current liabilities 288,094 315,888 288,364 316,813 Creditors: amounts falling due after more than one year 20 (129) (140) (129) (140) Net assets before pension scheme liability 287,965 315,748 288,235 316,673 Defined benefit pension scheme liability 25 (10,717) (11,581) (10,717) (11,581) Total net assets 277,248 304,167 277,518 305,092 Permanent endowment funds 23 123,085 138,629 123,085 138,629 Expendable endowment funds 23 36,989 41,426 36,989 41,426 Restricted funds 23 36,729 40,430 36,729 40,430 Unrestricted funds Revaluation reserve 23 47,856 47,856 47,856 47,856 Defined benefit pension reserve 23 (10,717) (11,581) (10,717) (11,581) Unrestricted income funds 23 43,306 47,407 43,576 48,332 Total funds 277,248 304,167 277,518 305,092 The financial statements were approved and authorised for issue by Council on 6 October 2020 and signed on its behalf by Professor Andrew Hopper Treasurer