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2020-12-31-accounts

Charity Registration No. 1095190

Company Registration No. 04539916 (England and Wales)

EUROPEAN ORTHODONTIC SOCIETY

(a company limited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

EUROPEAN ORTHODONTIC SOCIETY

LEGAL AND ADMINISTRATIVE INFORMATION

Trustees Professor D Bister Professor C Katsaros Professor F McDonald Professor C Laspos Professor B Kahl-Nieke Professor O Sorel Professor V Vandeveska-Radunovic Dr A Puigdollers Dr I Marek Professor P Pirttiniemi Professor D Halazonetis Professor P Crismani (Appointed 30 June 2020) Dr De Franco (Appointed 2 November 2020) Dr M Disse (Appointed 12 July 2021) Professor P Fudalej Dr F E Geoghegan Secretary Professor D Bister Charity number 1095190 Company number 04539916 Registered office Flat 20 49 Hallam Street London W1W 6JN Independent auditors Gerald Edelman 73 Cornhill London EC3V 3QQ Bankers Santander UK Plc 2 Triton Square Regents Place London NW1 3AN Investment advisors J. M. Finn & Co 4 Coleman Street London EC2R 5TA

EUROPEAN ORTHODONTIC SOCIETY

CONTENTS

Page
Trustees' report 1 - 9
Statement of Trustees' responsibilities 10
Independent auditor's report 11 - 14
Statement of financial activities 15
Balance sheet 16
Statement of cash flows 17
Notes to the financial statements 18 - 31

EUROPEAN ORTHODONTIC SOCIETY

TRUSTEES' REPORT (INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees present their annual report and consolidated accounts for the year ended 31 December 2020.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accounts and comply with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (updated January 2019)”

Objectives and activities

The principal object of the Society is to advance all aspects of orthodontics and its relations with the collateral arts and sciences for the public benefit. In particular focus is made on the following:

The Trustees confirm that, in their opinion, they have complied with their duty to have due regard to the guidance on public benefit issued by the Charity Commission, in planning the activities and strategy of the Society as well as in the exercise of their powers and responsibilities as detailed in the governing document and under charity law.

The EOS has a number of key charitable objectives including:

The EOS continues to fulfil these key charitable objectives, through the Annual Congress and the following:

Annual Congress

The Annual Congress is a key tool through which the objectives of the charity are achieved especially as to education and collaboration. This enables members to be provided with a higher level of specialisation and skill resulting in more efficient and beneficial patient treatment thus meeting the public benefit requirement. However, the world pandemic of COVID-19 impacted on the Hamburg congress in 2020 , which was cancelled, and will also impact the planned Cyprus congress in 2021.

The 96 th EOS congress with the residing President, Bärbel Kahl-Nieke, was due to be held in Hamburg in June 2020. A full programme had been designed and allocated following the meeting of the scientific committee and Council in February 2020. Over 700 abstracts had been submitted for consideration by the scientific committee together with the structure of the topic sessions and keynote lectures as well as the appointment of the Sheldon Friel lecturer.

EUROPEAN ORTHODONTIC SOCIETY

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

However, following the development of the pandemic with its impact on international travel, consideration was given to cancelling the Congress based on ensuring the safety of the delegates, lecturers and sponsors. A meeting of the EOS council, in line with normal governance of the Society, was held via Zoom to consider all possible solutions. Without any positive alternative strategy, that did not put delegates at risk, the decision was made to cancel the congress. Following discussions with the trustees it was decided to cancel the Congress on 30 th March 2020 before major contractual enforcement was in place. This had an impact on the Society and the financial situation.

This led to significant discussions with the congress organisers for the Hamburg conference. Unfortunately, the congress organisers (MCI Berlin) did not react in a supportive way and despite attempts t o recover the charitable funds already received by the m this was unsuccessful . Thus a decision was taken by the Board to place the subsidiary company into voluntary liquidation after taking appropriate professional advice both in the UK and in Germany.

As the pandemic developed discussions occurred at Board level as to the model to be applied as to future congresses including the Cyprus congress in 2021 . In August 2020 it became apparent that the pandemic was more disruptive than initially thought and the risks for the charity of running a ‘standard’ congress in 2021 were too high with a significant depletion of delegates attending impacting on the funds available for public benefit. On 20 th August 2020, following extensive discussions with trustees and congress organisers, the Cyprus Congress was postponed until 2022 and all future Presidents and officers of the Society should remain in office for a further year.

Whilst the charity continued to support the European Journal of Orthodontics (see later) with its continued increase in impact factor, the provision of education and networking to the members was considered by the trustees especially in light of the changing profile of future congresses.

A professional congress organising company (TFI) was identified that had previously been successfully involved in the organisation of the 2018 Congress in Edinburgh. In discussion with the company and executive members, a possible structure for educational development and networking programme was devised and put to the trustees in October 2020. The trustees unanimously accepted that we should move to a change in the way the Society provides its public benefits opting for a blended approach with both face to face congresses, with reduced venue bookings, and online elements for those unable to travel.

In addition, with the absence of a congress in 2020 and 2021, the new restructuring has resulted in a design of quarterly specialised webinars only targeting specific aspects of professional development required. This involved three speakers providing ‘state of the art’ lectures available online for members and non-members to view followed by a roundtable discussion with all three speakers. Participants to the speaker’s lectures could submit questions in advance or during a roundtable discussion. The first of these has taken place and the feedback and statistics are being reviewed.

The Distinguished teacher lecture series, that were due to take place in Sofia, Bulgaria and Barcelona, Spain to support postgraduates, was delivered online on the 5 th February 2021 as the first webinar provided by the charity. This lecture was provided free of charge for all postgraduates. The subject was ‘Autotransplantation of developing teeth’ and was delivered by Ewa Czochrowska of Poland. The statistics for this lecture were 459 attendees from 35 countries. In addition, 250 ‘Continuing Professional Development’ certificates were provided following the appropriate feedback. The numbers attending were higher than previous face to face lectures. A further lecture by the next appointed Distinguished Teacher, Björn Ludwig of Germany, is planned for later in 2021.

P reviously identified keynote speakers for Hamburg, the Sheldon Friel lecturer, chairman of the Hamburg scientific committee and President for 2020 were approached to publish aspects of what would have been provided if the Hamburg congress had occurred. A special edition of the EJO containing articles from the cancelled meeting was published with the October 2020 issue.

EUROPEAN ORTHODONTIC SOCIETY

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The preliminary considerations of the new format, as a consequence of cancellation of the congress and postponement of the subsequent congresses together with the financial pressures, indicate that (a) access online provides education to all members of the society and non-members (b) the provision of online education limits the need for members to travel supporting a ‘greener’ environment and (c) there is a need for face to face congress budgets to be restructured and redefined.

European Journal of Orthodontics (EJO)

The EJO continues to be a major source of education for orthodontists worldwide. During 2020, 544 original articles were submitted to the EJO (Original articles 424, Randomized Controlled Trials, 45, Systematic reviews 63, Commentaries 2, Letters to the Editor 6, Book reviews 4). According to the 2018 Journal Citation Reports® (Thomson Reuters, 2016), the impact factor of the EJO increased to 1.84. In the category of Dentistry, Oral Surgery & Medicine the EJO has remained in the 2nd quartile of journals and ranks 35th out of 91. The Journal Impact Factor percentile (JIF percentile) was 60.0. This significant achievement ensures that high quality research publications are readily available for orthodontists to read worldwide.

Free online access to the EJO for not-for-profit institutes was available either directly through Oxford University Press, or through initiatives with INASP or WHO (HINARI). Discounted rates continued to be given to a number of middle-income countries. The number of eligible institutions fluctuates year-on-year as some countries leave the scheme while others join (eligibility is based predominantly on the World Bank Rankings and the Human Development Index). Such access increases access to the orthodontic literature in countries which may not otherwise be able to provide this opportunity. At present upwards of 7,000 educational institutions can access the journal, often provided as part of a library package of journals. There are currently 103 eligible countries in the reduced cost initiative – 61 of which have free access and 42 a significantly reduced rate. All articles are available to the public, with nominal payment, 12 months after publication. This also includes archived articles back to 1979.

European Board of Orthodontists (EBO)

The objectives of the EBO are to enhance the standards of orthodontic treatment throughout Europe and worldwide to encourage the spirit of self-improvement among colleagues who are recognized specialists in orthodontics. There are presently 140 EBO members in Europe, the Middle East and Asia.

Despite the COVID-19 pandemic and cancellation of the 2020 EOS Congress in Hamburg, an online EBO examination was held in June 2020. Full EBO membership was awarded to Daniela Garbo, Manuela Maltoni, Andrea Scarpa and Carlos Suarez Martinez. Provisional EBO membership was awarded to Angela Manfredonia and Erfan Salloum.

This year the 2021 the EBO examination will be held completely online. The candidates have been asked to submit their cases digitally via a secure link and an oral examination was held on the 12th June 2021. This year, 25 candidates will be evaluated, 17 for full membership and eight for provisional membership.

Liaison with other Societies

The close co-operation that exists with other Societies has continued. Representative of the European Federation of Orthodontic Specialists Association (EFOSA) attended the meetings of the EOS and Dirk Bister represented the EOS at the EFOSA meetings. Representatives of the American Association of Orthodontists were present at the Congress in France and were provided with a booth to promote their Society. This arrangement was reciprocated at their meeting. Rooms were also provided without charge for EFOSA and the European Postgraduates Students Orthodontic Society. Dirk Bister, the EOS representative, attended the meetings of the Platform for Better Oral Health in Europe.

EUROPEAN ORTHODONTIC SOCIETY

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

Teaching and Education

With the cancellation of the congress the Network of Erasmus Based European Orthodontic Programmes (NEBEOP) had to rapidly restructure the education support to schools. This included a plan of lectures not provided within the normal timetable by teaching establishments but involved subjects which were highly specialised in scientific methodology and delivered by experts in each respective area.

The topics include (the B number and topic refer to the new development of an international curriculum):

02-03-2021; Dr. Morten Laursen, Title: Clinical biomechanics

06-04-2021; Prof. Theodore Eliades, Title: How is the stress applied on tooth crown transformed into strain of the periodontal tissues?

04-05-2021; Prof. Hans-Peter Bantleon, Title: Friction and binding:

01-06-2021; Prof. Inger Kjær, Title: Pathological tooth eruption- different etiologies result in different treatments:

06-07-2021; Prof. Vaska Vandevska-Radunovic, Title: Orthodontic relapse: a biological perspective.

07-09-2021; Prof. Alejandro Iglesias-Linares, Title: Genetics and root resorption in orthodontics. Erasmus courses: C7 Iatrogenic aspects of orthodontic treatment.

05-10-2021 – Prof. Stavros Kiliaridis, Title: Muscular diseases and orthodontic consequences.

02-11-2021; Prof. Costanza Meazzini, Title: HFM: diagnosis and long-term follow-up of treated and nontreated patients.

07-12-2021; Prof. Mauro Farella, Title: Toothless Tale: a bird’s eye view about hypodontia.

04-01-2022; Prof. Yijin Ren, Title: Biofilms in orthodontics.

It is anticipated that the target audience of 400 to 500 postgraduate students will attend. Figures will be reviewed after each Zoom webinar and future target lectures will be identified

The 13th meeting of NEBEOP took place online on the 19h June 2020, and the Network continues to work hard to enhance orthodontic education throughout Europe. The universities of Barcelona and Sheffield have been accepted as full members, making 29 full members and 20 provisional members; altogether approximately 50 members. There are approximately 130 orthodontic programmes in Europe. Research that was undertaken by members of NEBEOP identified 168 programmes and at the end of the study had received 100 responses of which 38 of the 100 said they were NEBEOP members. Of those, two-thirds were active and one-third provisional. Only full members can use the NEBEOP logo or make reference to NEBEOP membership in letters or advertising. Two applications for provisional membership has been received and were approved by NEBEOP Board: Université de Strasbourg. France and Università degli Studi di Firenze, Italy.

T he University of Murcia, Spain will probably also be a new member. Some schools were required to apply for renewal as they were coming to the end of their seven year term and site visits would be required. Two schools will be re-evaluated this year.

In addition, an area specific to professional education of teachers (similar to university teacher training) is being developed.

The 14 th European Orthodontic Teachers’ Forum was held on the 23 rd June 2021 online. The title is: Adults learning in blended learning environments

Speaker: Prof Dr. Jan Elen (Faculty of Psychology and Educational Sciences, KU Leuven, Leuven, Belgium)

EUROPEAN ORTHODONTIC SOCIETY

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

In a first part some essential characteristics of learning processes will be highlighted. The contribution will discuss the potential of blended learning environments for adult learners

The second part will be entitled ‘Start to blend and teach: a practice format from the master in Family Medicine’.

Speaker: Prof. Dr. Birgitte Schoenmaekers. This presentation will focus is on blended learning and teaching in a complex learning environment.

The EOS also continues with NEBEOP as a sister company to protect the reserves of the charity in case a university challenges the recognition process offered by NEBEOP.

Grants

Seven eligible applications for consideration were received in 2020. All applications were sent for external refereeing and were then considered by the members of the Grants Committee [Lorenzo Franchi (Italy), Thomas Präger (Switzerland), Maria Ransjö (Sweden), Bart Vande Vannet (France), and Susan Cunningham (UK)]. All members scored the applications which were then ranked based on the scores received. A teleconference was then held in May 2020 at which Dirk Bister (UK), who will be the chair of the research committee from June 2020, was in attendance.

A decision was made to fund four grants:

Theodore Eliades, Anna Iliadi , Despina Koletsi, Marc Schätzle, George Eliades (University of Zurich, Switzerland) ‘Assessment of BPA release and surface alterations of orthodontic aligners in the presence of resin composite attachments: An in vitro study’ [£20,000].

Anna Westerlund, Maria Ransjö (University of Gothenburg, Sweden) ‘Molecular mechanisms in tooth eruption and impaction’ [£17,850].

Malin Vesterbacka, Marie Pegelow, Tülay Lindberg, Agneta Karsten (Karolinska Institutet, Stockholm, Sweden) ‘Van der Woude syndrome – craniofacial development, wound healing and the relation to expressed genes and proteins in oral epithelial tissue’ [£20,000].

Edwin Ongkosuwito, Hans Von den Hoff (Radboud University Medical Center Nijmegen, The Netherlands) ‘FGF-receptor 2 mutation and craniofacial development in zebrafish’ [£20,000].

EOS Membership

There are currently 3586 members (including 723 postgraduate students) of the EOS from 85 different countries.

All the activities undertaken by the EOS, including the awarding of grants, the Distinguished Teacher Lectures, the Annual Congress, publication of the EJO, the EBO examination, the activities of the Teachers’ Forum and NEBEOP, all aim to improve the education of postgraduates and orthodontists and those interested in orthodontics, thus resulting in improved advice to the public and patients and, overall, enhanced patient care.

The Society, through the professional advice provided, continues to restructure to protect the charity and the members’ subscriptions from adverse world events. It is clear that no future insurance policies can be provided to fully protect the charitable funds and that the legal frameworks within European companies are too complex to robustly protect the charity. As a consequence, the future administrative structure of the society and its congress will be managed within a safe legal framework. Currently, this appears to be the United Kingdom. TFI, registered in the United Kingdom, at present currently fulfils the criteria and no trustee has a current conflict of interest.

EUROPEAN ORTHODONTIC SOCIETY

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

Investment performance

A gain on disposal and revaluation of quoted investments accrued in the year of £198,982 (201 9 £ 225,839 ). The Trustees consider that investment performance over the medium and long term has been satisfactory in meeting the targets initially set . The Trustees consult with the investment managers on a regular basis to review the portfolios held with special attention given to the equity portfolio to ensure that the return in terms of capital growth meet the targets actually set. As detailed in prior years the portfolio is now split into four different funds.

The investments in the 'Houston Memorial Reserve Fund' and the 'Awards and Distinction Fund' are invested to provide a sustained level of income as detailed in note 2 2 to the accounts . Over the medium and long term, t hese stocks have performed satisfactorily as their capital value was increased whilst maintaining the income stream.

The investment in the 'Development and Research Fund' is made with a target of achieving a balance of income and capital growth. Upon establishing this fund the Trustees agreed that a realistic projected overall return in the medium to long term was a rate of 5% per annum. Since the inception of this target the projected return has been exceeded.

The other fund is the Francesca Miotti fund . Please see note 2 2 for further details.

Financial review

The net incom e for the year amounted to £23 2 , 6 36 (2019 : £ 541,577) which includes a gain on revaluation and disposal of investments amounting to £ 198,982 as described above . The surplus on the publication of the journal was £38,578 (2019 : £43,169). The re was no surplus on its Congress this year due to its cancellation due to Covid.

The Statement of Financial Activities shows that income from all sources amounted to £418,679 (2019 : £1,732,260. The decrease stems primarily from the fact that no income was received on the Congress in the year under review. There was also a de crease in income fr om annual subscriptions of £25,719 due to the Covid effect. The income on the sale of publications issued by the society was £ 16 3,000 (2019 : £166,968). Investment income on listed investments for the year was £ 6 0,589 (2019 : £6 4,451).

Expenditure de creased by the sum of £1,03 1 , 4 97 to the sum of £38 5 , 0 25 (201 9 : £1,4 16,522 ). Research grants and other awards were made of £61,622 (2019 : £52,388). Overall management costs, both direct and indirect increased to £ 1 50,951 ( 2019: £ 1 45,507).

Scrutiny of the balance sheet reveals net assets held by the society of £4,02 5,916 compared to the prior year figure of £ 3, 793,280 representing an increase of £23 2 , 6 36. Cash retained was £ 138,244 (201 9 : £253,685 ) at the balance sheet date. The Trustees hold a leasehold propert y at Hallam Street, London , W1 which is utilised for the purposes of the management and administration of the society. For this reason the property has been included in the accounts at cost as allowed by the Statement of Recommended Practice. The Trustees are of the opinion that the actual market value is substantially in excess of cost. A further property i s also retained at Hallam Street to be held for investment purposes which had a market value of £ 762,000 at the balance sheet date.

EUROPEAN ORTHODONTIC SOCIETY

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

The Trustees have reviewed the ongoing funding requirements with regard to future research grants and other awards to be made by the Society. It has previously been agreed that separate designated funds be established in order that sufficient income should accrue on an annual basis to finance anticipated payments. Three funds have been established as described in note 2 2 in order to fulfill the detailed objectives. The Trustees have reviewed the distribution policy of each fund given their current value and the positive returns that have accrued in recent years. The targeted distribution rate at the inception of each fund was 5% of initial value. The targeted distributions have now been increased to 5% of current fund value. The new targets are detailed in note 2 2 to the accounts. The total of £3, 686,516 (201 9 : £3,438,993 ) was held as designated funds at the balance sheet date.

At 31 December 2020 the Charity had free reserves of £35,064. (2019 : £45,447). This total excludes funds designated for other purposes and fixed assets. The aim is to build such reserves to a position where there is minimum cover of at least three months expenditure. This target was missed in the year under review due to the fact that there was no return forthcoming from the annual Congress.

The charity had a subsidiary which was used for the purposes of the Annual Congress. Through this subsidiary Company (EOS Congress Company Limited) the European Orthodontic Society held its Congress on an annual basis. As a consequence of the COVID-19 pandemic the congress was cancelled. This impacted on all activities associated with the Congress. There were no available insurance policies which could be used to affray the costs associated with cancellation of the event. The financial impact was a loss of £73,841 (see note 13). The subsidiary company is now in liquidation.

The investment portfolio held as at December 2020 had a market value of £ 2, 976,397 aimed at producing income and capital growth to support the Society's charitable activities. The portfolio is invested in UK equities and quoted fixed interest bonds . A review of the overall portfolios at the balance sheet date shows holdings of quoted bonds of 34 % (20 1 9 - 34%) with the bal ance held in equities of 66 % (20 1 9: 66%). Due to the extremely low returns available as fixed interest bonds mature the proceeds have been reinvested into equities where the potential overall return is greater.

The Trustees have assessed the major risks to which the charity is exposed, in particular those related to the operations and finance of the charity, and have developed a risk management strategy which involves the following:

The financial and legal aspects of the cancellation of the Hamburg congress have demonstrated the complex nature of organising Congresses within legal frameworks outside of United Kingdom legislation. A substantial tool in protecting the charity from significant financial detriment has been the formation of a subsidiary company for congress contracting. This was established in 2013 and had worked effectively until 2020.

Plans are being developed to manage future risks ranging from another cancellation in 2021 (due to world events which may or may not be COVID-19 related), delivering the whole congress on-line (the financial model is still to be defined), a blended congress with reduced numbers and supp orted online or a traditional congress. If the latter route is followed the financial model of the congress must now be more robustly structured potentially using only a UK based congress organiser who can liaise with local international contacts, or establishing a financial bond to work with the charity. There is also a plan to offer specialised Continuing Professional Development over the year for all members.

EUROPEAN ORTHODONTIC SOCIETY

TRUSTEES' REPORT (CONTINUED)(INCLUDING DIRECTORS' REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020

Structure, governance and management

The charitable company is limited by guarantee and was established on 18th September 2002. The business of the society was previously carried on via an unincorporated charity. On 29 June 2013 the charitable company adopted new articles of association designed to improve the governance of the charity.

The Trustees, who are also the directors for the purpose of company law, and who served during the period from 1 January 2020 were:

Professor D Bister Professor S Cunningham (Resigned 30 June 2020) Professor J Huggare (Resigned 30 June 2020) Professor C Katsaros Professor F McDonald Professor C Laspos Professor B Kahl-Nieke Dr J O'Neill (Resigned 12 July 2021) Professor O Sorel Professor V Vandeveska-Radunovic Dr A Puigdollers Dr I Marek Professor P Pirttiniemi Professor D Halazonetis Professor P Crismani (Appointed 30 June 2020) Professor G De Pauw (Resigned 30 June 2020) Dr De Franco (Appointed 2 November 2020) Dr M Disse (Appointed 12 July 2021) Professor P Fudalej Dr F E Geoghegan (Appointed 25 June 2019)

The council consists of a minimum number of sixteen officers including a President, the immediate Past President, five Presidents Elect, three Past Presidents and the elected officers, a Secretary and a Treasurer. The term of each office varies. Members of the Council are appointed as follows:

a) The Presidents Elect and all of the elected positions are elected by a ballot of the membership. b) At the conclusion of each AGM the President Elect that has served the longest automatically takes up to the office of President. The term of office is one year.

c) Upon the expiry of their term of office the outgoing President automatically succeeds to the office of immediate Past President for a period of one year and the outgoing immediate Past President succeeds to the office of Past President for a period of a further three years.

No member of the Council can serve more than one term in the same office other than the Honorary Secretary

and the Honorary Treasurer.

All Trustees are kept up to date with ongoing developments in charity law and practice with appropriate training courses being considered if appropriate. It is the policy of the Board to provide new Trustees with all relevant information appertaining to the charity and its affairs upon induction in order that they can obtain a sufficient level of knowledge to enable them to perform their roles effectively.

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of the company and guarantee to contribute £10 in the event of a winding up.

EUROPEAN ORTHODONTIC SOCIETY TRUSTEES. REPORT (CONTINUED)(INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 DECEMBER 2020 Policy and long temi ￿annIng deC￿￿OnS regarding the affaits of the Society are made at Council meetings which are attended by all Trustees and take Pla￿ three times a year. Issues are resolved on a majority vole. Each member ofthe Council has one vote except those Trustees who have been co-opted. The management on a day to day basis is controlled by the Executive Counal which meets four or more times a year. Administrative matters are undertaken by slaff based at the London offi(E owned by the Society in Hallam StreeL London W1. Auditor The audttor. Gerald Edelman. is deemed to be reappointed under seclion 487(2) of the Companies Act 2006. Dlsclosuro of infonnation to auditor Each of the TTUStees has Ix)nfirmed that there is no infornBtion of which they are aware whith 19 relevant to the audit, bLrt of whith the audttor is unaware. They have further confirned that Ihey have tsken appropriate steps to identify such relevant infomation and to estsblish that the auditors are aware of such information. The Ttustees report was approv￿1 by the Board and signed on its behaw by.- Professor F McDonald Trustee Dated: 15 September 2021

EUROPEAN ORTHODONTIC SOCIETY

STATEMENT OF TRUSTEES' RESPONSIBILITIES

FOR THE YEAR ENDED 31 DECEMBER 2020

Company law requires the Trustees to prepare accounts for each financial year which give a true and fair view of the charitable company's state of affairs at the end of the year and of its income and expenditure for that period.

In preparing those accounts, the Trustees are required to:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charitable company and to enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

EUROPEAN ORTHODONTIC SOCIETY

INDEPENDENT AUDITOR'S REPORT

TO THE TRUSTEES OF EUROPEAN ORTHODONTIC SOCIETY

Opinion

We have audited the financial statements of European Orthodontic Society (the ‘charity’) for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheet s , the Consolidated Statement of Cash Flows and the notes to the consolidated financial statements , including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

EUROPEAN ORTHODONTIC SOCIETY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF EUROPEAN ORTHODONTIC SOCIETY

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the d irectors ' r eport included within the Trustees' r eport.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of Trustees

As explained more fully in the s tatement of Trustees' r esponsibilities, the Trustees, who are also the directors of the charity for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below .

Our audit procedures were primarily directed towards testing the accounting systems in operation upon which we have based our assessment of the financial statements for the year ended 31 December 2020.

We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.

EUROPEAN ORTHODONTIC SOCIETY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF EUROPEAN ORTHODONTIC SOCIETY

The extent to which the audit was considered capable of detecting irregularities including fraud

We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

Audit response to risks identified Fraud due to management override

To address the risk of fraud through management bias and override of controls, we:

Irregularities and non-compliance with laws and regulations

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but are not limited to:

The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.

Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors of European Orthodontic Society .

EUROPEAN ORTHODONTIC SOCIETY

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE TRUSTEES OF EUROPEAN ORTHODONTIC SOCIETY

Use of our report

This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members 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 charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Hiten Patel FCCA (Senior Statutory Auditor) for and on behalf of Gerald Edelman

15 September 2021

Chartered Accountants Statutory Auditor

73 Cornhill London EC3V 3QQ

EUROPEAN ORTHODONTIC SOCIETY

STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2020

Unrestricted Designated
funds
funds
Notes
£
£
Income from:
Income from c haritable activities
3
343,675
-
Investment income
5
1
75,003
Total income
343,676
75,003
Expenditure on:
Costs of r aising funds
6
467
38,681
Charitable activities
7
284,255
61,622
Total expenditure
284,722
100,303
Net income/(expenditure) before gains and losses on
investments
58,954
(25,300)
Net (loss)/gain on investments
13
(73,841)
272,823
Net income/(expenditure) for the year
(14,887)
247,523
Fund balances at 1 January 2020
354,287
3,438,993
Fund balances at 31 December 2020
339,400
3,686,516		 Total
2020
£
343,675
75,004
418,679
39,148
345,877
385,025
33,654
198,982
232,636
3,793,280
4,025,916		 Total
2019
£
1,646,471
85,789
1,732,260
42,830
1,373,692
1,416,522
315,738
225,839
541,577
3,251,703
3,793,280

The statement of financial activities also complies with the requirements for an income and expenditure account under the Companies Act 2006.

EUROPEAN ORTHODONTIC SOCIETY CHARITY BALANCE SHEET ASAT 31 DECEMBER 2020 2020 2019 Flxed assets Tangible assets Investment properbes Investments 14 15 16 307,936 762.000 2,976.397 308,840 596,839 2,847,911 046,333 3,753,590 Current assets Debtors Investments Cash at bank and in hand 18 19 68,678 27,593 88.484 13.745 9,459 244.226 184T55 267.430 Creditors: arnounts falling due within one year 20 {205.172) (227,740) Net current assetsl{liabililies} (20.417) 39,690 Net assets 4.025,916 3.793.280 Income funds un￿StriCted fun Designated funds General unrestricted fvnds 3,686,516 339.400 3,438.993 354.287 4.025.916 3.793.280 The Truslees have prepared a(xounts in accordance section 398 of the Companies Act 2006 and section 138 of the Charities Act 2011. These accxjunts are prepared in accordance with the special provisions of Part 15 of the Companies Act relating to small companies and constitute the annual accounts required by the Companies Act 2006 and are for urujlation to members ofthe company. The financial statements were approved by the Board and aLthorised for issue on 15 September 2021 and were signed on its behalf by: Professor F McDonakl Trustee Company Registration No. 04539916 16-

EUROPEAN ORTHODONTIC SOCIETY

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2020

2020 2019
Notes £ £ £ £
Cash flows from operating activities
Cash generated from operations 25 (191,877) 451,931
Investing activities
Purchase of tangible fixed assets - (3,774)
Purchase of investments (395,998) (886,765)
Proceeds on disposal of investments 397,430 485,556
Investment income 75,004 85,789
Net cash generated from/ (used in)
investing activities 76,436 (319,194)
Net (decrease)/increase in cash and cash
equivalents (115,441) 132,737
Cash and cash equivalents at beginning of year 253,685 120,948
Cash and cash equivalents at end of year 138,244 253,685

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

Company information

European Orthodontic Society is a private company limited by guarantee incorporated in England and Wales. The registered office is Flat 20, 49 Hallam Street, London, W1W 6JN.

1.1 Accounting convention

The accounts have been prepared in accordance with the charity's governing document, the Companies Act 2006 and “Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)” (as amended for accounting periods commencing from 1 January 2019). The charity is a Public Benefit Entity as defined by FRS 102.

The financial statements are prepared in sterling , which is the functional currency of the charity. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

At the time of approving the financial statements, the Trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Charitable funds

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives.

Designated funds comprise funds which have been set aside at the discretion of the Trustees for specific purposes. The purposes and uses of the designated funds are set out in the notes to the financial statements.

1.4 Incoming resources

Income is recognised when the charity is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Subscriptions from members are recognised in the year in which they fall due. The charity invoices for these fees in advance and as such the accounts include a creditor for deferred income. Income receivable regarding the Annual Congress are accounted for on an accruals basis.

Investment income receivable such as dividends is recognised when received. All other investment income is accounted for on an accruals basis.

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.5 Resources expended

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligation committing the charity to the expenditure. All resources expended are accounted for on an accruals basis. Any i rrecoverable VAT is charged to the expense to which it relates.

Costs of raising funds represents the fees incurred in connection with the management of the investment portfolios.

Charitable expenditure relates to grants payable as well as costs of services and activities provided to members of the charity. The latter costs include those incurred directly and those of an indirect nature necessary to support them. Included in charitable expenditure are support and governance costs with the latter including expenses relating to the charity's compliance with regulations and good practice.

1.6 Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Computers 25% reducing balance Fixtures, fittings & equipment 10% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

Long leasehold properties are included in the accounts at cost and are retained by the charity for its own use. No depreciation is provided in respect of long leasehold properties, as their unexpired lease terms exceeds 50 years.

Capitalisation policy

The charity capitalises expenditure of a fixed asset nature only when the cost exceeds £500.

1.7 Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. The surplus or deficit on revaluation is recognised in profit or loss .

1.8 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

1 Accounting policies

(Continued)

1.9 Financial instruments

The charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the charity's balance sheet when the charity becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future p aymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the charity’s contractual obligations expire or are discharged or cancelled.

1.10 Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.11 Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in net income/(expenditure for the period ) .

1.12 Taxation

As a registered charity the Society is exempt from taxation on its activities which fall within the scope of part 10 ITA 2007 and section 256 of the Taxation of Chargeable Gains Act 1992.

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

2 Critical accounting estimates and judgements

In the application of the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3 Income from c haritable activities

Members subscriptions and other fees
Examinations
Annual conference
Publications		 2020
£
170,975
9,700
-
163,000
343,675		 2019
£
196,694
8,400
1,274,679
166,698
1,646,471

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

4 Subsidiary company activities

The charity had a wholly owned subsidiary company known as EOS Congress Company Limited which was incorporated in the United Kingdom and was utilised to hold the activities of the Annual Congress. Any profits generated by the company are paid to the charity under the gift aid scheme.On 6 August 2020 the company ceased trading and entered into administration following the cancellation of the Hamburg Congress due to be held in June 2020 due to the Coranavirus epidemic. A loss arose to the charity as a result of such winding up of £73,841.

Shown below is the breakdown of the Annual Congress results held in the year in Nice

Income
Registration and other fees
Exhibition and sponsorship income
Other income
Social events
Expenditure
Exhibition costs
Printing and marketing
Hire of venue and associated costs
Hotel and travel expenses
Catering and entertainment costs
Management and administration
Other conference expenses
Total net income
Investment income
Rental income
Income from listed investments
Bank interest receivable
For the year ended 31 December 2020
For the year ended 31 December 2019		 Total
2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2020
£
14,414
60,589
1
75,004		 Total
2019
£
658,892
551,751
22,967
41,070
1,274,680
65,982
54,874
289,333
29,989
385,451
178,334
26,489
1,030,452
244,228
2019
£
21,032
64,451
306
85,789
85,789

5 Investment income

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

6 Costs of r aising funds

7 Unrestricted Designated
funds
funds
£
£
Fundraising and publicity
Advertising
467
-
Investment property expenses
-
5,608
Fundraising and publicity
467
5,608
Investment manage rs' fees
-
33,073
467
38,681
Charitable activities		 Total
2020
£
467
5,608
6,075
33,073
39,148		 Total
2019
£
-
12,001
12,001
30,829
42,830
Unrestricted
funds
Designated
funds
£
£
Conference costs
-
-
Cost of publications
124,422
-
European Board of Orthodontists exam costs
825
-
Executive meetings
4,457
-
Professional fees
3,600
-
133,304
-
Grant funding of activities (see note 8)
-
61,622
Support costs (including governance costs (see
note 9)
150,951
-
For the year ended 31 December 2020
284,255
61,622
For the year ended 31 December 2019
1,273,075
142,599		 Total
2020
£
-
124,422
825
4,457
3,600
133,304
61,622
150,951
345,877		 Total
2019
£
1,036,775
123,529
9,328
6,165
-
1,175,797
52,388
145,507
1,373,692
1,373,692

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

8
Grants payable
Unrestricted
funds
Designated
funds
£
£
Grants to institutions:
NEBEOP
-
-
Grants to individuals
-
61,622
-
61,622
For the year ended 31 December 2019
9,017
43,371
9
Support costs (including governance costs)
Staff costs
Depreciation
Council meetings
Rent and rates
Insurance
Stationery and printing
Telephone and postage
Computer and website expenses
Light, heat and sundries
Bank and credit card charges
Accountancy
Repairs
Governance costs
Audit fees
Legal and professional
10
Net movement in funds
Net movement in funds is stated after charging/(crediting)
Depreciation of owned tangible fixed assets
Investments revaluation
11
Trustees		 2020
£
-
61,622
61,622
2020
£
67,051
904
2,799
10,719
898
398
16,144
8,331
4,645
5,400
5,946
-
12,853
14,863
150,951
2020
£
904
299,136		 2019
£
3,017
49,371
52,388
52,388
2019
£
67,076
884
11,400
10,125
759
4,770
12,091
8,862
34
9,315
-
4,701
14,128
1,362
145,507
2019
£
885
210,386

None of the Trustees (or any persons connected with them) received any remuneration during the year, 9 (201 9 : 6) of them were reimbursed a total of £7,435 ( 201 9: £20,596) in respect of travelling, hotel and other expenses incurred in connection with the activities of the Society.

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

12 Employees

The average number of employees during the year was:

Administration
Employment costs
Wages and salaries
Social security costs
Other pension costs
There were no employees whose annual remuneration was £60,000 or more.
Net gains/(losses) on investments
Total
2020
£
Revaluation of investments
299,136
Loss on sale of investments
(26,313)
Loss on disposal of unquoted investments
(73,841)
198,982		 2
2020
£
63,714
2,395
942
67,051		 2
2019
£
62,986
3,255
835
67,076
Total
2019
£
210,386
15,453
-
225,839

13 Net gains/(losses) on investments

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

14
Tangible fixed assets
Group and Charity
Long
leasehold
property
Computers
Fixtures,
fittings &
equipment
£
£
£
Cost
At 1 January 2020
302,231
30,000
42,512
At 31 December 2020
302,231
30,000
42,512
Depreciation and impairment
At 1 January 2020
-
28,376
37,527
Depreciation charged in the year
-
406
498
At 31 December 2020
-
28,782
38,025
Carrying amount
At 31 December 2020
302,231
1,218
4,487
At 31 December 2019
302,231
1,624
4,985
All of the tangible fixed assets are retained for use by the charity .
The market value of the leasehold property is far in excess of cost.
15
Investment property
Cost
At 1 January 2020
Revaluation
At 31 December 2020
Carrying value
At 31 December 2020
At 31 December 2019		 Total
£
374,743
374,743
65,903
904
66,807
307,936
308,840
2020
£
596,839
165,161
762,000
762,000
596,839

The fair value of the investment property was based o n market evidence of transaction prices for similar properties at December 2020 .

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

16 Fixed asset investments

Movements in fixed asset investments

Equities, funds
& bonds
£
Cost or valuation
At 1 January 2020 2,847,911
Additions 395,998
Valuation changes 133,975
Cash transfer 22,167
Disposals (423,654)
At 31 December 2020 2,976,397
Carrying amount
At 31 December 2020 2,976,397
At 31 December 2019 2,847,911
Investments at fair value comprise:
£
Cash 22,167
Equities 1,969,245
Fixed interest securities 984,985
2,976,397
The historical cost of the investments held at the balance sheet date was: 2,413,158
17 Financial instruments
2020 2019
£ £
Carrying amount of financial assets
Debt instruments measured at amortised cost 68,678 13,745
Instruments measured at fair value through profit
or loss 2,976,397 2,847,911
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities 205,172 227,740

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

18
Debtors
Amounts falling due within one year:
Other debtors
Prepayments and accrued income		 Group
2020
£
5,670
63,008
68,678		 Group
2019
£
6,527
7,218
13,745

19 Current asset investments

Current asset investments
2020 2019
£ £
Cash deposits 27,593 9,459

Current asset investments relate to cash held by independent fund managers for re-investment.

20 Creditors: amounts falling due within one year

Other taxation and social security
Trade creditors
Other creditors
Accruals and deferred income		 2020
£
1,810
2,025
184,576
16,761
205,172		 2019
£
1,639
1,755
209,736
14,610
227,740

21 Share capital

The company has no share capital being limited by guarantee. The members will contribute a maximum of £10 each in the event of liquidation.

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

22 Designated funds

The movements on designated funds during the year was as follows:

Movement in funds Movement in funds Movement in funds
Balance at 1 Incoming Resources Investments Balance at 31 December
January resources expended gains/ 2020
2020 ( losses )
£ £ £ £ £
Houston Memorial 674,509 13,805 (8,615)
37,275		 716,974
Development and
Research 2,186,137 50,612 (80,018)
194,003		 2,350,734
Awards and
Distinction 553,959 9,910 (11,670)
41,597		 593,796
Francesca Miotti
Fund 24,388 676 - (52) 25,012
3,438,993 75,003 (100,303)
272,823		 3,686,516

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

22 Designated funds

(Continued)

The income funds of the charity include the following designated funds which have been set aside out of unrestricted funds by the Trustees for specific purposes.

H ouston Memorial Reserve Fund

T his fund is utilised for the provision of special annual awards to deserving students judged by a panel of the Trustees and presented at the Annual Congress. The targeted distribution as set in prior years include d a scholarship for research of £60,000 paid every three years equivalent to £20,000 per annum. The Trustees have now reviewed these targets in line with current fund value and the positive returns that have accrued in recent years. As a result of this the Trustees have now set new targets for fund distributions going forward which includes scholarship for research of £ 9 0,000 paid every three years equivalent to £ 30 ,000 per annum.

In the year under review the total return of both income and accrued capital gains amounted to a

gain of £51,080 (201 9 : £ 60,49 9).

Development and Research Fund

This fund is utilised to pay grants and scholarships to research students on a discretionary basis as well as funding any new init i atives determined by the Board which enhance the aims and objectives of the Society. The targeted distribution rate as set in prior years was grants from this fund at a minimum of £50,000 per annum. The Trustees have now reviewed these targets in line with current fund value and the positive returns and additional contributions that have accrued in recent years. As a result of this the Trustees have now set new targets for fund distributions going forward at a minimum of £110,000 per annum. In the year under review distributions were restricted due to the ongoing Coronavirus epidemic.

In the year under review the total return of both income and accrued gains amounted to a gain of £ 244,615 (201 9 : £ 115,992 ) which included in the current year a gain on revaluation of investment property of £165,161.

Awards and Distinction Fund

This fund is utilised to pay grants on a discretionary basis to teachers where special merit has been achieved. The target for anticipated expenditure in prior years on this fund was £20,000 per annum which includes the Beni Solow award, the Sheldon Friel Award and the Distinguished Teachers Award. The Trustees have now reviewed these targets in line with current fund value and the positive returns that have accrued in recent years. As a result of this the Trustees have now set new targets for fund distributions going forward which includes a targeted distribution rate of £27,500 per annum.

In the year under review the total return of both income and accrued capital gains amounted to a gain of £ 51,507 (201 9 : £45,082 ).

Francesca Miotti Fund

A legacy of £20,000, which was received in 2016 was bequeathed to the Society in memory of Francesca Miotti, a former director and president-elect . The fund was set up with the guidance that it was to be used to fund research and other grants. In the year under review the total return of both income and accrued capital gains amounted to a gain of £ 624. .

Investm ents

Included in the assets attributable to designated funds are quoted investments of £2, 976,397 (20 19 : £2, 847,911 ) on which there are unrealised gains of £ 563,239 (201 9 : £ 407,202 ). There is also an interest in investment property held with a value of £762,000 which includes an unrealised gain of £165,161. No separate revaluation reserve is included in these accounts regarding such gains.

EUROPEAN ORTHODONTIC SOCIETY

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2020

23
Analysis of net assets between funds
Unrestricted
funds
Designated
funds
£
£
Fund balances at 31 December 2020 are represented by:
Tangible assets
307,936
-
Investment properties
-
762,000
Investments
-
2,976,397
Net current assets
31,464
(51,881)
339,400
3,686,516
24
Related party transactions
There were no disclosable related party transactions during the year (201 9 : none).
25
Cash generated from operations
2020
£
Surplus for the year
236,236
Adjustments for:
Investment income recognised in profit or loss
(75,004)
Loss/(gain) on disposal of investments
26,313
Fair value loss and gain on investments
(299,136)
Depreciation and impairment of tangible fixed assets
904
Movements in working capital:
(Increase)/Decrease in debtors
(55,023)
Increase/(decrease) in creditors
(26,167)
Cash generated from operations
(191,877)		 Total
£
307,936
762,000
2,976,397
(20,417)
4,025,916
2019
£
541,577
(85,789)
(15,453)
(210,386)
885
210,872
10,225
451,931