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2020-12-31-accounts

European Society of Endocrinology

Company Limited by Guarantee

FINANCIAL STATEMENTS

31 December 2020

Company Registration Number: 05540866

Charity number: 1123492

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS

YEAR ENDED 31 December 2020

CONTENTS PAGE
Reference and administrative details 1
Trustees Annual Report 2
Independent Auditor's report to the Members 22
Statement of Financial Activities (incorporating the
income and expenditure account) 27
Balance sheet 28
Statement of cash flows 29
Notes to the financial statements 30

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE REFERENCE AND ADMINISTRATIVE DETAILS

Registered charity name European Society of Endocrinology Charity registration number 1123492 Company registration number 05540866 Registered office Redwood House Brotherswood Court, Great Park Road Almondsbury Business Park Bradley Stoke Bristol BS32 4QW Senior Management Team Helen Gregson – Chief Executive Officer Dirk De Rijdt – Director of Strategic Partnerships

THE TRUSTEES

The trustees who served the charitable company during the period and up to the date of this report were as follows:

ere as follows:
Professor F Beuschlein
Professor M Christ-Crain (elected 26 May 2020)
Professor A Giustina
Professor S Glasberg
Professor R Granata
Professor B Kos-Kudła
Professor D Macut (elected 26 May 2020)
Professor M Marazuela
Professor R Peeters
Professor M Reincke
Professor C Schalin-Jantti (retired 26 May 2020)
Professor O Yildiz (retired 26 May 2020)
Secretary Divinerule Limited
Auditor Moore Kingston Smith LLP
Chartered Accountants
Statutory Auditor
Devonshire House, 60 Goswell Road
London EC1M 7AD
Solicitors Royds LLP
London, EC4V 5HF
Investment managers Charles Stanley & Co
55 Bishopsgate, London, EC2N 3AS

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT - YEAR ENDED 31 DECEMBER 2020

The trustees have pleasure in presenting their report and the financial statements of the charity for the year ended 31 December 2020.

INTRODUCTION

Endocrine disorders are very common, and it is likely that over half of the population will suffer from one at some point in their lives. For example, about a third of women and almost twenty percent of men over the age of 50 will have an osteoporotic fracture at some point in their lifetime. One in ten women of reproductive age have polycystic ovary syndrome and a similar proportion of women over 65 have mild hypothyroidism. Diabetes is a public health issue estimated to affect 6.4% (285 million) people worldwide in 2010 and forecast to rise to 7.7% (438 million) in 2030. Type-2 accounts for more than 90% of all patients with diabetes. People with diabetes have an up to fivefold increased risk of cardiovascular disease compared with those without diabetes.

In addition, there are a large number of rarer endocrine conditions, including for example Cushing’s disease, acromegaly, multiple endocrine neoplasia and congenital adrenal hyperplasia.

ESE’s vision is to shape the future of endocrinology to improve science, knowledge and health, and to have a real impact on healthcare and treatment of these conditions. Our mission is to advance endocrinology. We unite, support and represent our specialty, promoting collaboration and best practice, and enable our community to develop and share the best knowledge in endocrine science and medicine.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

OBJECTIVES AND ACTIVITIES

The European Society of Endocrinology (“the Society” or “ESE”) is a charity and a company limited by guarantee. The charitable objects of ESE are to promote for the public benefit, research, education, and clinical practice in endocrinology by the organisation of conferences, training courses and publications, by raising public awareness, liaison with national and international legislators, and by any other appropriate means. Its members are scientists, physicians and students with an involvement in endocrinology. The Society’s beneficiaries are its members, students, endocrine patients, and the general public. The trustees have considered the Charity Commission requirement in respect of Public Benefit including “Public Benefit: Running a Charity” (PB2). In their view the charity meets, in full, the criteria to satisfy the test.

The Society provides a range of public benefits aimed at providing educational and research support to these groups and these benefits are detailed in this report and include:

⋅

Conferences, training courses and other meetings

The Society runs an annual congress called the European Congress of Endocrinology, which typically attracts around 3500-4000 delegates, comprising basic scientists, clinicians, and nurses from throughout Europe and beyond. At this congress, details of current research and clinical practice are presented, with the aim of improving scientific research, patient care and clinical practice for the public benefit. The abstracts from the congress are available free of charge on the website. ESE takes full financial responsibility for the congress, and this requires the maintenance of a reserve to support any years in which the meeting may not be successful.

ESE also runs regular postgraduate educational courses aimed at both basic scientists and clinicians and clinical update courses aimed at young and senior endocrinologists. In addition, ESE provides financial support and endorsement for other meetings, in collaboration with other organisations.

⋅

Journal

The Society owns the European Journal of Endocrinology , a respected clinical and translational peerreviewed publication. The journal publishes original research papers, reviews, and case reports within all areas of endocrinology, thus improving public education. This journal is purchased by institutions and individuals around the world and is available in print and electronic formats. The journal has a separate reserve policy, which is detailed later in the report. Free online access to all papers is available to all ESE current members.

The Society has three other official journals, Journal of Endocrinology , Journal of Molecular Endocrinology and Endocrine-Related Cancer . These journals are also purchased by institutions and individuals around the world and are available in print and electronic formats. Submitted papers that have been accepted are published online within twenty-four hours of acceptance as Accepted Preprints.

The abstracts of all material published are available to the public free of charge on the website, as is the full text of review and commentary articles, of all articles published more than 12 months ago, and of articles for which an Open Access fee has been paid. There is free online access to everyone to clinical guidelines and reviews published in the journals.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

The Society also co-owns Endocrine Connections , which is an Open Access journal offering authors the highest possible visibility for their work and stimulating cross-discipline collaboration. Endocrine Connections publishes original quality research in all areas of endocrinology, with a focus on papers that have relevance to its related and intersecting disciplines and the wider biomedical community. The journal considers basic, translational, and clinical studies.

The Society also endorses Endocrinology, Diabetes and Metabolism Case Reports (EDMCR), which is an online only, open-access information resource designed to further both medical education and clinical practice by publishing and linking together case reports on common and rare conditions in all areas of clinical endocrinology, diabetes and metabolism. EDMCR is owned by Bioscientifica.

⋅ Communications and Marketing

The Society runs an active website (www.ese-hormones.org). The website includes worldwide events in endocrinology and related areas; adverts for current grants; an online membership directory, which facilitates cross-boundary research collaboration and the sharing of good practice in patient care, thus providing public benefit; news stories (for members and non-members) related to endocrinology and related areas.

ESE also has the website ESE on Demand (www.eseondemand.org) which publishes the content from the European Congress of Endocrinology and disseminates it free of charge to all ESE members and ECE congress delegates. (Prior to 2019, ESE On Demand was named ECE On Demand).

The ESE Media Office continues to handle press enquiries throughout the year, as well as identifying key research at the annual congress for press publication. This aims to raise the profile of endocrinology with the public. ESE also runs social media via Facebook, Twitter and Linkedin channels to ESE members and the general public with additional opportunities to find out about its work.

The Society produces a tri-annual newsletter, which ensures that members are informed about the Society’s latest activities. The newsletters are available free online and advertise grants and awards and educational opportunities such as the training courses and congresses, as well as current Society activities and broader information about endocrinology. An additional supplement to the newsletter, ESE Insight, has the aim of delivering additional in-depth content which would be of interest to the ESE membership. ESE also sends daily and monthly emails to the membership and people who have signed up on the website regarding endocrine and ESE news.

⋅ Guidelines

ESE provides guidelines for endocrinologists in order to improve patient care. Since March 2014, ESE has published eight clinical practice guidelines and they typically produce an Altmetric Attention Score in the top 5% of all output, with the exception of the ESE Clinical Practice Guideline for long-term follow-up of patients operated on for a phaeochromocytoma or a paraganglioma which is in the top 25%. The Altmetric Attention Score can be used to show the attention and influence of a publication beyond citation levels. More information is available at https://www.esehormones.org/publications/guidelines/about-our-guidelines/.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

⋅ Awards

The Society recognises world-leading scientists and clinicians through the presentation of our prestigious awards, which are presented during the annual European Congress of Endocrinology where they are also invited to present one of the plenary lectures. These awards include:

The Society awards a number of grants to ESE members as follows:

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

ACHIEVEMENTS AND PERFORMANCE

ESE has a strategic plan with goals and targets clearly identified. During the COVID-19 pandemic the original targets and priorities for 2020 had to be reassessed and the ESE activities adapted to the situation, including pivoting all its meetings and events to the digital environment. In addition, ESE developed significant resources in relation to COVID-19 and endocrine diseases to continue delivering services to its members who were supporting their patients and developing new care pathways in this challenging period.

Full resources are available on the ESE website and include:

Some of the achievements and performance during 2020 are noted below:

Due to the unprecedented times, the Executive Committee decided to delay lapsing of those members who had not paid their membership fee for the 2020 year. Membership growth was seen in the second half of the year alongside the organisation of the digital congress e-ECE 2020 (5-9 September). At the time of e-ECE there were a total of 5166 members from 110 countries.

Through the ESE Affiliated Society Membership, there are 66 members (53 national societies and 13 specialty societies), and there are six Associate members.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

The number of Corporate Members for 2020 stood at 18, with some movement of different organisations joining and leaving. For 2020, there were 5 Premium Corporate Members, 10 Corporate Members and 3 Supporters (for 2019, 3 Premium, 10 Corporate and 1 Supporter).

One of the main measures of success of journals is the impact factor, a measure of how often an article is cited by other authors. The latest impact factors are (the previous year in brackets):

The impact factor for the European Journal of Endocrinology is the highest-ever and we are extremely proud of the dedication and commitment of the Editorial Board in achieving this.

In 2020 ESE embarked on a tender process for its journal publisher in order to ensure that the supplier was the best fit for the future and provided good market value for this substantial contract. The contract with ESE’s current publisher is due to finish at the end of 2021. The aim is to conclude the tender process by mid-2021.

ESE’s focus and activity in the area of Policy and Advocacy has significantly grown in 2020 and the key objectives include:

There have been several achievements in this area, including:

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

objectives with the aim of promoting endocrine health, addressing endocrine disease and improving patient care.

In addition to these the new activities in Policy and Advocacy, ESE continues to have a serviced office in Brussels (opened in 2019) and has continued to input into the Alliance for Biomedical Research in Europe (Biomed Alliance) and the European Medicines Agency (EMA).

In 2018, ESE undertook a major project entitled ‘Mapping Endocrinology in Europe’ to provide information about endocrinologists throughout Europe, their demographics, their challenges, their way of working. The launch of the White Paper has been delayed but will be launched in the first half of 2021.

The ESE Rare Disease Committee, alongside ENDO-ERN, have engaged in an initiative to collect data concerning specific groups of patients with rare endocrine conditions, who are also affected by COVID-19. We believe this is a global unmet need and requires swift, concerted and coordinated action.

The European Registries for Rare Endocrine Conditions (EuRRECa) project, supported by both ENDO-ERN and ESE, has developed an e-reporting tool (e-REC) which has been fully operational for over a year within a robust governance and ethical framework and which does not require individual patient consent. The platform is open to all centres across the world to report a new confirmed or suspected case of COVID-19 in a patient with an existing endocrine or metabolic bone condition.

⋅ Goal 2: To provide continuous endocrine related education and training provision for all career stages in clinical practice and basic research

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

⋅ Goal 3: To foster early-career basic and clinical endocrinologists, creating a dynamic community which will inspire them to become endocrinologists and remain in endocrinology

ESE continues to develop its offering to early-career endocrinologists in a variety of ways, including involvement in the majority of ESE Committees, supporting a dedicated session at the annual congress, and offering grants and awards.

EYES Newsletter

The EYES dedicated newsletter, which was first developed in 2018 for the EYES community, is now also available to the early-career membership categories of ESE and is mailed directly to them. The EYES newsletter is also available on the ESE website.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

⋅ Goal 4: To continue to run the leading European endocrine congress, ensuring it is kept current, attractive across the Focus Areas, and viewed as the ‘must attend’ event for endocrinologists across Europe

The approach to the European Congress of Endocrinology had to change dramatically due to the COVID-19 pandemic, which came at a point when everything was in place for the May congress. The arrangements made for the meeting in Prague in May had to be changed, and there were financial repercussions from this reorganisation; however, this was minimised as much as possible through careful venue and hotel negotiations; and negotiations with the congress organiser.

The congress was reorganised into a digital meeting e-ECE 2020 which took place 5-9 September 2020, which was a five-day three-channel programme across eight Focus Areas plus COVID19 content. The meeting was hosted on the ESE on Demand platform.

4675 attendees from 110 countries attended with over 1765 abstracts submitted; going digital proved to be a benefit in terms of reaching the endocrine community across the globe. Sessions were included for all different audiences and strong support was delivered by the industry partners. 98% of those who attended agreed that they would attend the meeting again.

⋅ Goal 5: To ensure that ESE is financially sustainable through excellent management of commercial partnerships and a clear business development strategy

The expanding industry engagement reflects ongoing development of new diagnostic and therapeutic approaches in the care of patients with endocrine disorders, and the increase in the number of our Corporate Members shows a positive ongoing industry engagement in the area of endocrinology and with ESE’s activities. Despite the pandemic, our Corporate Members pledged their continued full support with the need to turn our events digital.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

Programme, however, not all activities could be progressed as originally planned due the pandemic. This programme has been developed to strengthen ESE’s support and facilitation of the Calcium and Bone endocrinology community. This program is supported by Takeda (formally Shire).

FINANCIAL REVIEW

Due to the pandemic, the originally approved budget underwent significant review by the Finance Committee and Executive Committee to ensure that the finances of ESE were as secure as possible under the difficult circumstances. Expenses were significantly cut due to the reduction in travel expenses; revenue was also significantly reduced. Due to careful management by the trustees, there was a positive net movement in funds for the year to 31 December 2020 showing an increase of €51,343 from the previous year.

The major income streams for ESE were from individual and corporate memberships, corporate sponsorship of activities, and from the European Journal of Endocrinology. A surplus was also made from congress activities; however, this was partially offset by the impact of the cancellation of the inperson congress in May. For the congress activity (for both the cancelled in-person ECE 2020 and the digital e-ECE 2020), this resulted in a net surplus of approximately €146k.

The major items of expenditure were from support of the various activities, including the congress, grants and awards, the newsletter and website, and the European Journal of Endocrinology. In addition, ESE had overheads of which the most significant items related to running its secretariat services for both outsourced and inhouse staff.

The outcome from 2020 is an operating deficit of (€27,915). There has been a gain on investments of €79,258 and overall, as stated above, the organisational value of ESE has risen by €51,343.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

The ESE trustees are aware that at the end of 2020 significant funds are being held above the reserves and will take this into account when reviewing the strategy and investment in activities for future years. However, a relatively careful approach will be necessary due to the continuing uncertainty in relation to the pandemic and to ensure ESE’s financial stability.

Going concern statement

The directors have assessed whether the use of going concern is appropriate i.e., whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of the charity to continue as a going concern.

The directors have made this assessment in respect of a period of one year from the date of approval of the financial statements. In making this assessment the directors have considered the impact of COVID-19 and, as set out in ‘2.2 Preparation of the accounts on a going concern basis’, whilst there is a potential significant impact particularly with regards to face-to-face events, which from a financial standpoint has most impact with regards to the annual congress, the majority of events are being developed with the potential to be digital or hybrid, which plan for revenue from both industry and registration fees. Annual budgets have been revised taking this into account with prudent figures for both income and expenditure. In addition, the European Society of Endocrinology holds significant reserves and has liquid assets in form of investments which are readily available to convert into cash.

On this basis, the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future (12 months after the date of this report) and have, therefore, used the going concern basis in preparing these financial statements.

⋅ Principal risks and uncertainties

The trustees are aware that the charity may be exposed to various risks which include financial risks, risks to the Society’s reputation, risk of breaching charitable trust or other legal requirements and risk of professional liability. The trustees have compiled a risk register to ensure measures are put in place to handle these risks. In addition, ESE has insurance in place for professional indemnity (up to for £2M aggregate), employer’s liability, and travel for employees.

Risks include:

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

there are a high proportion of funds being held in investments (approximately 66%); this is subject to review by the Finance Committee.

Principal funding sources

The European Society of Endocrinology raises its funds mainly through income from its congress, the European Journal of Endocrinology and individual and corporate membership subscriptions. The Society also receives some pharmaceutical support through receipt of grants for certain activities. Through this revenue ESE supports the objectives outlined on page 3.

⋅ Reserves Policy

The EJE reserve policy is stated below and is ring-fenced for EJE activity only; the reserve policy for the other activities excluding the journal is also detailed below.

EJE Reserve Policy

The Society shall maintain a designated reserve fund for the purposes of developing and supporting the European Journal of Endocrinology . The reserve fund shall be derived from the investments and annual surpluses of the European Journal of Endocrinology agreed to be made available for this purpose provided that the Society shall have no obligation to add further funds. The ESE Executive Committee shall use its best endeavours to ensure that the reserve fund equals the aggregate of two years’ expenditure for the publication of the journal based on the most recent actual expenditure of the journal after allowing for inflation calculated in accordance with the Retail Price Index as varied from time to time. The assets, liabilities and activities of the European Journal of Endocrinology are held in a designated fund. At each year-end the reserve for this fund is recalculated and adjusted accordingly.

− ESE Reserve Policy excluding EJE

The reserve policy takes into consideration the major risks that could face the ESE. These are: (1) The potential withdrawal of funding from corporate supporters, for whatever reason, e.g., changes in regulations causing restriction on funding. Corporate funding was provided in 2020 for the following activities: overall corporate membership for general support of the Society and its administration; support of the ESE postgraduate courses; partial support of the newsletter through support of the newsletter supplement, ESE Insight; support of the ESE Cushing’s patient registry, ERCUSYN; support of a grant funded projects in the area of parathyroid; and support of a Clinical Update on Acromegaly which was originally planned to be an in-person event but was pivoted to digital due to the pandemic.

(2) The reduction in size of the ESE annual congress for any reason, e.g., lasting effects from the pandemic reducing delegate numbers; or removal of industry support, which would result in a reduction of income from the annual congress. This would result in a significant potential reduction in overall income to the Society that year, and a smaller reduction in expenditure, resulting in a potential deficit for that year; an Act of God resulting in a major reduction in delegate and company participation in the annual congress, or cancellation.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

(3) The impact on ESE of non-congress related activities in relation to COVID-19 pandemic, e.g., in relation to reduction in the possibility of holding other face-to-face events; in relation to reduction of industry funding within other ESE activities; in relation to a reduction in membership revenue.

This reserve policy is designed to allow the ESE to continue running its activities for a two-year period, after which the projects would be re-evaluated depending on the level of success in generating new revenue streams. Allowing for a two-year period of financial difficulty would also help to minimise the risk of compromising the objectives and core activities of ESE. A reduction in the scale of activities has been assumed, but not large-scale cancellation of projects.

− Conclusion

Using calculations based on the summary above, the Trustees of ESE consider that the required level of readily useable reserves should be €1.414m for EJE and that there is sufficient currently in reserve to support this. These figures are calculated using the rate of exchange on 31 December 2020. Also using calculations based on the summary above, the Trustees of ESE consider that the reserve for general ESE activity should be €1.785 m. The total of the two reserves is €3.199m and the current total unrestricted income fund as shown in the audited accounts is €4.771m excluding the restricted funds. There is therefore a surplus above the reserve requirement of €1.572m. As described previously, a cautious approach will be taking to utilizing these funds due to the current uncertainties that remain due to the pandemic.

Designated/Restricted Funds

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. Restricted funds are monies raised for, or their use restricted to specific purposes, or funding contributions subject to donor-imposed conditions.

The designated fund is in relation to the development and support of the European Journal of Endocrinology.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

Timing of the expenditure is in relation to the project milestones. This project has now finished, and the financial reconciliation can now be completed.

PLANS FOR FUTURE PERIODS

ESE has adapted its original 2021 goals due to the pandemic. The aim is to continue to deliver value to our members and to take the benefits from the pandemic into the future period. In the second part of 2021 ESE will develop its strategy and approach for the 2022 period onwards.

Other specific activities and focus are planned as follows:

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

Mapping Project. To continue discussions with Patient Advocacy Groups and finalise plans to launch a Patient Advocacy Groups Membership scheme.

⋅ Goal 2: To provide continuous endocrine related education and training provision for all career stages in clinical practice and basic research

In the meantime, and in order to support our basic science members, a series of webinars will be delivered through a new initiative “Spotlight on Science”. These will be informal online evening masterclass sessions where scientific research topics in endocrinology will be discussed.

⋅ Goal 3: To foster early-career basic and clinical endocrinologists, creating a dynamic community which will inspire them to become endocrinologists and remain in endocrinology

⋅ Goal 4: To continue to run the leading European endocrine congress, ensuring it is kept current, attractive across the Focus Areas, and viewed as the ‘must attend’ event for endocrinologists across Europe

The congress will deliver across six streams over five days, covering all of the eight Focus Areas plus COVID-19. Extensive efforts have been made to successfully market the congress to appeal as broadly and globally as possible.

Recognising the value of the content, a registration fee has been charged for the congress, which is at a lower level for members, early career and nurses and lower income areas of the world.

The aim is to ensure that the European Congress of Endocrinology continues to be viewed as an essential part of the endocrinologists’ annual calendar - whether it is in an in-person or digital environment.

There will be a significant project in 2021 reviewing the options for a hybrid model for the congress in 2022.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

STRUCTURE, GOVERNANCE AND MANAGEMENT

The Society was incorporated on 18 August 2005 and commenced activities on 1 January 2006. The organisation was registered as a charity on 8 April 2008 and these accounts have therefore been audited as a charitable organisation.

Individuals, national endocrine societies in Europe and in countries bordering the Mediterranean Sea, as well as pan-European and international sub-specialist endocrine societies and companies with a focus on endocrinology can be members. The Society values its links with the 53 national endocrine societies and 13 specialist societies that are members, and they also have voting rights, alongside the individual members. Individual membership is open to members of a national medical or scientific society in endocrinology or a related subject. Companies do not have voting rights. In addition, societies outside of Europe can be members as part of the Associate membership scheme.

The Society is governed by the Executive Committee which comprises not less than ten or more than fifteen members and can include up to three ex-officio members. Ex-officio members have no vote and are not directors of the Society. There are currently three ex-officio members and they represent endocrine nurses, ESE Council of Affiliated Societies (ECAS) and the ESE Young Endocrinologists and Scientists (EYES). The Executive Officers Board is made up of the ESE Officers (President, Presidentelect, Treasurer and Secretary) together with the Senior Management Team (Chief Executive Officer and Director of Strategic Partnerships) meet on a regular basis to ensure the effective management of the Society.

All applications for individual membership are formally approved by the ESE Executive Committee. There is also an Honorary membership category, for people with a special distinction in endocrinology or who have performed outstanding service to the Society. These are nominated through and approved by the Executive Committee.

In 2020, and following a review of the committees, in terms of their structure, membership and remit, two new committees were introduced (Membership and Rare Disease). The Society had thirteen committees in total. The committees report to the Executive Committee through their chairman. The committee chairs are appointed by the Executive Committee. Each committee has a remit which has been approved by the Executive Committee. The committees are:

Clinical Committee Congress Committee Education Committee ESE Young Endocrinologists and Scientists Committee (EYES)*

Finance Committee Industry Partnership Board International Liaison Committee Membership Committee Nominations Committee Nurses Committee* Publishing and Communications Committee Rare Disease Committee Science Committee

In addition to the Committees, two task forces were established in 2020: Early-Career Member Task Force and the Policy and Advocacy Task Force.

*The chair is nominated through their Committee and ratified by the Executive Committee. The Chair is an ex-officio member of the Executive Committee.

The ESE Council of Affiliated Societies provides a collaborative network to enhance the visibility of endocrine research, development and education across Europe. ECAS membership comprises 53 national endocrine societies, represented at ECAS meetings typically through their President or Secretary. An ECAS representative is nominated and voted for by the ECAS members and is an exofficio member of the Executive Committee. This representative is responsible for liaising with the ESE Office on ECAS activities and meetings.

The European Society of Endocrinology participates in activities organised through the European Medicines Agency (EMA) and through this the Society is required to publish its funding from pharma and non-pharma sources. This information is available on the ESE website. In addition, and as a member of the Alliance for Biomedical Research in Europe (Biomed Alliance), the European Society of Endocrinology adheres to the Biomed Alliance Code of Conduct. Being a part of these networks helps to ensure that the Society’s operating policies are transparent.

⋅ Recruitment and appointment of new trustees

Any Ordinary Member may nominate one other Ordinary Member for vacant Executive Committee positions. There are four Officers on the Executive Committee, namely the President, President-elect, Secretary and Treasurer. Executive Committee members serve a four-year term, but the Treasurer's and Secretary's positions can be extended for up to two years subject to approval of the General Council. The President-elect position is for two years and then President for a further two years.

New Trustees are provided with an online induction manual which contains information such as, previous meeting minutes, relevant policies, strategic plan and day to day information.

The ESE Committees are supported by the ESE Office in the development of activities and budget preparation (where needed). Proposals are then directed through the Executive Officers Board and then to the Executive Committee for final approval. Where needed, proposals are taken to the General Council for approval. For budget and additional expenditure outside of an approved budget, the CEO and Treasurer have defined financial sign-off limits.

For ESE’s senior level positions there has been a benchmarking exercise before appointment. The CEO remuneration is agreed by the Executive Officers Board and the other staff remuneration is agreed through the CEO and then through the budget process, which is approved by the Trustees. Any changes to salary on an annual basis are made in reference to the Retail Price Index (RPI).

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

⋅ Related Parties

None of our trustees receive remuneration or other benefits from their work with the charity. During the year trustees received reimbursed expenses from fulfilling their duty but no other related party transactions were reported during the year.

⋅ Members Liability

The company is limited by guarantee and, as such, does not have a share capital. In the event of winding up, each member has guaranteed to contribute to a maximum of €10 to meet the liabilities of the company.

POLITICAL DONATIONS

There were no donations made within the period.

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS

The charity trustees (who are also the directors of the European Society for Endocrinology for the purposes of company law) are responsible for preparing the Trustees’ Report and financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires trustees to prepare financial statements for each financial year that give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period.

In preparing the financial statements, the trustees are required to:

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

This report has been prepared in accordance with the special provisions of Part 15 of Companies Act 2006.

STATEMENT AS TO DISCLOSURE TO OUR AUDITORS

In so far as the trustees are aware at the time of approving our trustees’ annual report:

This report has been prepared in accordance with the Statement of Recommended Practice:

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE TRUSTEES ANNUAL REPORT (CONTINUED)

Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

This report was approved by the board of directors and trustees on 14 May 2021 and signed on its behalf by:

Professor A Giustina President

Professor D Macut Treasurer

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EUROPEAN SOCIETY OF ENDOCRINOLOGY YEAR ENDED 31 DECEMBER 2020

Opinion

We have audited the financial statements of European Society of Endocrinology (‘the company’) for the year ended 31 December 2020 which comprise the Statement of Financial Activities, the Balance Sheet, the Cash Flow Statement and notes to the 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 FRS 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 charitable company 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 charitable company'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.

EUROPEAN SOCIETY OF ENDOCRINOLOGY

COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EUROPEAN SOCIETY OF ENDOCRINOLOGY YEAR ENDED 31 DECEMBER 2020

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. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report.

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

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EUROPEAN SOCIETY OF ENDOCRINOLOGY

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on pages 20 and 21, the trustees (who are also the directors of the charitable company for the purposes 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 charitable company’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 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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EUROPEAN SOCIETY OF ENDOCRINOLOGY

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF EUROPEAN SOCIETY OF ENDOCRINOLOGY

or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to any party other than the charitable company and charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Luke Holt (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

Date:

Devonshire House 60 Goswell Road London EC1M 7AD

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 DECEMBER 2020


AR ENDED 31 DECEMBER 2020
Unrestricted
Funds		 Restricted
Funds		 Total
Funds
2020		 Total
Funds
2019
Note € € € €
INCOME AND ENDOWMENTS
FROM:
Charitable activities 6 2,219,279 - 2,219,279 3,688,207
Other trading activities 4 255,956 206,577 462,533 792,869
Investments 5 50,102 - 50,102 55,020
────── ────── ────── ──────
TOTAL INCOME 2,525,337 206,577 2,731,914 4,536,096
────── ────── ────── ──────
EXPENDITURE ON:
Raising funds 24,265 - 24,265 21,421
Publicity and awareness 8 110,740 - 110,740 152,654
Charitable activities 9 2,421,843 202,981 2,624,824 4,287,509
────── ────── ────── ──────
TOTAL EXPENDITURE 2,556,848 202,981 2,759,829 4,461,584
────── ────── ────── ──────
NET (EXPENDITURE)/INCOME (31,511) 3,596 (27,915) 74,512
BEFORE INVESTMENT
GAINS/(LOSSES)
Gains / (Losses) on investment 15 79,258 - 79,258 602,225
assets
────── ────── ────── ──────
NET INCOME/(EXPENDITURE)
FOR THE YEAR		 11 47,747 3,596 51,343 676,737
────── ────── ────── ──────
INTERFUND TRANSFER 18 (4,451) 4,451 - -
────── ────── ────── ──────
NET MOVEMENT IN FUNDS FOR 43,296 8,047 51,343 676,737
THE YEAR
RECONCILIATION OF FUNDS
Total funds brought forward 4,727,845 49,625 4,777,470 4,100,733
────── ────── ────── ──────
TOTAL FUNDS CARRIED 4,771,141 57,672 4,828,813 4,777,470
FORWARD
══════ ══════ ══════ ══════

The Statement of Financial Activities includes all gains and losses recognised in the year. All incoming resources and resources expended derive from continuing activities.

The notes on pages 30 to 45 form part of these financial statements.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE BALANCE SHEET As at 31 DECEMBER 2020

Note
FIXED ASSETS
Intangibles
13
Tangibles
14
Investments
15
CURRENT ASSETS
Debtors
16
Cash at bank
CREDITORS: Amounts falling due within one year
17
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NET ASSETS
FUNDS
Restricted income funds
19
Unrestricted income funds
19
Designated income funds
19
TOTAL FUNDS		 2020
€

1,399,964
1,047,962
2,447,926
(1,155,705)
€
25,377
1,589
3,509,626
1,292,221
4,828,813
4,828,813
══════
57,672
2,982,141
1,789,000
4,828,813
══════		 2019
€
39,146
2,808
3,405,018
1,719,680
1,078,911
2,798,591
(1,468,093)
1,330,498
4,777,470
4,777,470
══════
49,624
2,938,846
1,789,000
4,777,470
══════

These financial statements have been prepared in accordance with the special provisions for small companies under Part 15 of the Companies Act 2006.

These financial statements were approved by the members of the committee on 14 May 2021 and are signed on their behalf by:

Professor A Giustina Professor D Macut President Treasurer

Company Registration Number: 05540866

The notes on pages 30 to 45 form part of these financial statements.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

STATEMENT OF CASH FLOWS YEAR ENDED 31 DECEMBER 2020

ATEMENT OF CASH FLOWS
AR ENDED 31 DECEMBER 2020
2020 2019
€ €
Cash flows from operating activities (55,699) (1,075,375)
Cash flows from investing activities
Investment income 50,102 55,020
Purchase of investments (119,869) (523,571)
Proceeds of sale of investments 35,973 515,438
Purchase of intangible assets - (3,250)
Purchase of tangible assets - (2,271)
Net cash used in investing activities (33,794) 41,366
Change in cash in the year (89,493) (1,034,009)
Cash and cash equivalents at the beginning of the year 1,225,129 2,259,138
Cash and cash equivalents at the end of the year 1,135,636 1,225,129
══════ ══════
RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOWS FROM OPERATING ACTIVITIES
2020 2019
€ €
Net income / (expenditure) for the period 51,343 709,401
Investment income (50,102) (55,020)
(Gains)/Losses on investments (79,256) (602,225)
(Increase)/Decrease in debtors 319,716 (720,522)
(Decrease)/Increase in creditors (312,388) (420,907)
Amortisation of intangible assets 1,219 13,335
Depreciation of tangible assets 13,769 563
─────── ───────
Net cash (used in)/provided by operating activities (55,699) (1,075,375)
═════ ═════
Analysis of cash and cash equivalents
Cash in hand 1,047,962 1,078,910
Cash held in investments 87,674 146,219
─────── ───────
1,135,636 1,225,129
══════ ══════

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

1. CHARITABLE COMPANY INFORMATION

The European Society of Endocrinology is a private limited charitable company limited by guarantee by not having any share capital incorporated and domiciled in England and Wales. The registered office is Redwood House, Brotherswood Court, Great Park Road, Almondsbury Business Park, Bradley Stoke, Bristol, BS32 4QW.

2. ACCOUNTING POLICIES

2.1 Basis of accounting

The financial statements have been prepared under the historical cost convention, as modified by the revaluation of certain fixed assets investments, and in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2015), the Charities Act 2011 and the Companies Act 2006. The company constitutes a public benefit entity as defined by FRS 102.

The financial statements are prepared in Euros which is the functional currency of the charitable company and rounded to the nearest €1.

2.2 Preparation of the accounts on a going concern basis

The European Society of Endocrinology has given due consideration to the effects of the COVID19 outbreak in consideration of the preparation of the accounts on a going concern basis. The major change in 2021 to the planned activity was the cancellation of the in-person European Congress of Endocrinology; this was replaced by a digital meeting within the same timeframe (May 2021). The congress is a major revenue source for ESE and it is budgeted that the digital event will return a similar level of surplus to ESE as the in-person event. The congress for 2022 is being planned as an in-person meeting with a hybrid/digital element for those who cannot attend in-person.

The budgets and forecasts have been substantially reviewed for 2021 and 2022, and cost-savings implemented as a result of holding a digital rather than in-person meetings and educational activities. Extensive work is taking place to ensure that in 2022 ESE is well positioned to run the European Congress of Endocrinology, either in-person, digitally, or in a hybrid format. Additionally, ESE has diversified revenues due to its publishing portfolio, and has sufficient funds in reserve to support the organisation through a challenging 12-18 month period. As previously stated, a focus on the financial stability of ESE is of paramount importance and will be regularly reviewed by the Finance Committee and ESE Officers.

In terms of operations, ESE is fully set-up for remote working and operations continue as normal with staff working from home, as are our key suppliers and service providers.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

2. ACCOUNTING POLICIES (continued)

As at 31 March 2021 the value of the long-term investment portfolio held with Charles Stanley is at €3,698,473 – a total return of 5.38%. This compared to a value of €3,509,626 as at 31 December 2020, which represented a portfolio return of 8.80%. At the present time there is no requirement to draw down on the investments; however, the trustees are aware of the uncertainty of the market as a financial risk factor. The situation will be reviewed on a regular basis by the Finance Committee.

Taking into account all of the above, therefore, in the assessment of the charitable company’s financial position and plans for the foreseeable future, the Trustees are satisfied that it remains appropriate to prepare the financial statements on a going concern basis and there are no material uncertainties.

2.3 Incoming resources

All income is recognised once the charity has entitlement to the funds, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Donations and grants are accounted for on a receivable basis, where the receipt is probable and can be measured reliably. Where conditions are attached to a grant, the income is recognised when the charity becomes unconditionally entitled to the income.

Publications income, sponsorships, membership subscriptions and investment income are accounted for in the period which they relate on an accruals basis. Income received in advance of an event/specified service is deferred until the criteria for recognition income outlined above is met.

2.4 Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that settlement will be required and the amount of the obligation can be measured reliably.

All expenditure is accounted for on an accruals basis. All expenses including support costs are allocated or apportioned to the applicable expenditure headings.

Support costs represent the indirect costs incurred in providing support for all activities of the charity. Irrecoverable VAT has also been included as a support cost. These have been allocated on the basis of the direct costs of the relevant activity.

Expenditure is charged as a cost net of VAT against the activity for which the expenditure was incurred.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

2. ACCOUNTING POLICIES (continued)

2.5 Employee Benefits

The cost of short-term employee benefits are recognised as a liability and an expense. The cost of any material unused holiday entitlement is recognised in the period in which the employees’ services are received. Termination benefits are recognised as an expense when the charity is demonstrably committed to terminate the employment or to provide termination benefits.

2.6 Pensions

The company operates a defined contribution plan for its employees. A defined contribution pension plan is a pension plan under which the company pays contributions into a separate entity. Once the contributions have been paid, the company has no further payment obligations. The assets of the scheme are held separately from those of the charity in a separately administered fund.

2.6 Pensions (continued)

The contributions are recognised as an expense in the Statement of Financial Activities when they fall due. Amounts not paid are shown as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

2.7 Foreign currencies

The company’s functional currency and presentational currency is the Euro.

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transaction.

At each period end foreign currency monetary items are translated using the closing rate.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Financial Activities.

2.8 Fixed asset investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing market value. Gains and losses arising on disposals and revaluation throughout the year are included in the Statement of Financial Activities.

All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

2. ACCOUNTING POLICIES (continued)

2.9 Intangible Assets

Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Amortisation is calculated, using the straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives, as follows:

5 Years

Residual values and useful economic lives are reviewed at each reporting period and adjusted as necessary taking account of any permanent impairment.

2.10 Tangible Fixed Assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Depreciation is calculated, using the straight-line method, to allocate the depreciable amount of the assets to their residual values over their estimated useful lives, as follows:

Residual values and useful economic lives are reviewed at each reporting period and adjusted as necessary taking account of any permanent impairment.

2.11 Financial instruments

The company 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 company's balance sheet when the company 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.

The charity enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities including trade and other debtors and trade and other creditors. See note 23 for more detail.

2.12 Cash at bank

Cash at bank and in hand includes cash and short term highly liquid investments with a short maturity of three months or less.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

2. ACCOUNTING POLICIES (continued)

2.13 Fund accounting

Unrestricted funds comprise those funds which the trustees are free to use in accordance with the charitable objects.

Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes.

Restricted funds are monies raised for, or their use restricted to specific purposes, or funding contributions subject to donor imposed conditions

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

3. JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Charities 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 revision and future periods where the revision affects both the current and future periods.

The most significant estimates and assumptions which affect the carrying amount of assets and liabilities in the accounts relate to:

4. INCOME FROM OTHER TRADING ACTIVITIES

Unrestricted Restricted Total Funds Unrestricted Unrestricted Restricted Total Funds
Funds Funds 2020 Funds Funds
2019
€ € € € €
€
Sponsorships
and grants 255,956 206,577 462,533 541,487 251,382
762,869
═════ ═════ ═════ ═════ ═════ ═════
INVESTMENT INCOME
Unrestricted Total Funds Total Funds
Funds 2020 2019
€ € €
Income from non-UK listed investments 50,102 50,102 55,020
═════ ═════ ═════

5. INVESTMENT INCOME

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

6. INCOME FROM CHARITABLE ACTIVITIES

----- Start of picture text -----
||||| |---|---|---|---| |Unrestricted|Total Funds|Total Funds| |Funds|2020|2019| |€|€|€| |Congress income|1,067,640|1,067,640|2,730,858| |Publications income|531,015|531,015|491,708| |Membership subscriptions (including Corporate| |members)|505,353|505,353|385,127| |Rebates and commissions|23,381|23,381|80,514| |-| |Annual Meetings and Events|91,890|91,890| |────────|────────|─────────| |2,219,279|2,219,279|3,688,207| |══════|══════|══════|

----- End of picture text -----

All funds received in 2019 were unrestricted.

7. ANALYSIS OF INCOME BY GEOGRAPHY

----- Start of picture text -----
|||| |---|---|---| |2020|2019| |€|€| |UK|218,553|300,547| |Europe|1,885,021|3,256,132| |Rest of the World|628,340|979,417| |────────|────────| |Total Incoming Resources|2,731,914|4,536,096| |══════|══════|

----- End of picture text -----

8. PUBLICITY AND AWARENESS

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |Direct|Total|Direct|Total| |Support|Support| |charitable|Funds|charitable|Funds| |costs|costs| |activities|2020|activities|2019| |€|€|€|€|€|€| |Communications,| |110,740|-|110,740|159,620|-|159,620| |Media and Publicity| |═════|═════|═════|═════|═════|═════|

----- End of picture text -----

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

9. COSTS OF CHARITABLE ACTIVITIES BY ACTIVITY TYPE

Direct Support costs Total Funds
charitable 2020
activities
€ € €
Congress costs 1,065,463 - 1,065,463
Grants, awards & sponsorships 9(b) 69,374 - 69,374
Membership 224,305 10,055 234,360
Newsletter 63,589 - 63,589
Annual meetings & events 153,987 - 153,987
Publications costs 149,317 - 149,317
Clinical and scientific activities 176,749 35,000 211,749
Staff costs 12 - 239,664 239,664
Office overheads - 17,110 17,110
Donation 9(a) - - -
FX losses - 7,418 7,418
Governance costs 10 - 412,792 412,792
───────── ───────── ─────────
1,902,785 722,039 2,624,824
═══════ ═══════ ═══════
Direct Support costs Total Funds
charitable 2019
activities
€ € €
Congress and meetings costs 2,064,202 - 2,064,202
Grants, awards & sponsorships 9(b) 179,627 - 179,627
Membership 182,821 11,395 194,216
Newsletter 65,731 - 65,731
Annual meetings & events 273,713 - 273,713
Publications costs 102,081 - 102,081
Clinical and scientific activities 403,684 71,248 474,932
Staff costs 12 - 205,602 205,602
Office overheads - 16,720 16,720
Donation 9(a) 167,262 - 167,262
FX losses - 5,980 5,980
Governance costs 10 - 537,443 537,443
───────── ───────── ─────────
3,439,121 848,388 4,287,509
═══════ ═══════ ═══════

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

9. COSTS OF CHARITABLE ACTIVITIES BY ACTIVITY TYPE (CONTINUED)

9(a) Donation:

In 2019, a donation of €167,262 was given to Societe Francaise d'Endocrinologie (French Endocrine Society), as host Society of ECE 2019 held in Lyon.

In 2020, the congress was held as a digital meeting and therefore there was no local host Society.

9(b) Grants, awards and sponsorships :

rants, awards and sponsorships:
2020 2019
€ €
Geoffrey Harris Award 10,341 13,251
ESE Young Investigator Awards 12,615 18,418
EJE Award 33 2,983
ESE Meeting grants (6,476) 43,506
Poster Awards 2,375 2,267
ESE Small Meeting grants - 7,553
Science Grants 4,176 15,000
Basic Science Meeting Grants (2,549) 35,279
Short Term Fellowship 5,000 10,000
European Hormone Medal 5,070 6,257
Honorary and special recognition awards 102 9,081
Clinical Endocrinology Award 4,522 5,580
Jens Christiansen Award 10,065 10,452
Award/Grant - Other 24,100 -
────── ──────
69,374 179,627
════ ════

10. GOVERNANCE COSTS

GOVERNANCE COSTS
Unrestricted Total Funds Total Funds
Funds 2020 2019
€ € €
Audit fees 23,765 23,765 21,705
Legal and professional fees 89,107 89,107 122,564
Costs of trustees' meetings 62,086 62,086 146,919
Office and management 115,891 115,891 130,270
Policy and advocacy 121,943 121,943 115,985
────── ────── ──────
412,792 412,792 537,443
═════ ═════ ═════

All governance costs incurred in 2019 were unrestricted costs.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

11. NET (OUTGOING)/INCOMING RESOURCES FOR THE YEAR

This is stated after charging:

This is stated after charging:
2020 2019
€ €
Auditor’s fees: current year 23,765 18,365
Auditor’s fees: prior year under accrual - 3,340
Foreign exchange losses 7,418 5,980
════ ════

12. STAFF COSTS AND EMOLUMENTS PARTICULARS OF EMPLOYEES

Number of employees

The average monthly number of employees during the year was:

Staff members
Employment costs
Wages and salaries
Social security costs
Other pension costs
Total		 2020
2019
Number
Number
5
4
2020
2019
€
€
281,351
218,734
34,545
28,625
17,981
20,138
333,877
267,497

During the year, €2,459 of employment costs have been allocated to congress costs (2019: €9,164).

There was one employee earning an annual salary of over €70,000 in the current period and falls within the following banding. One employee earned over €70,000 in the 2019 financial year.

Banding 2020 2019
€90,001 – €100,000 1 1

Pension costs relating to higher paid employees totalled €6,511 in 2020 (2019: €6,821).

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

Key management personnel

The key management personnel of the charity comprise the Trustees and the Chief Executive Officer. The total employee benefits of the key management personnel of the charity were €113,545 (2019: €112,969). All pension costs are classified as unrestricted expenditure. The charity also uses consultancy services to support business development and clinical projects.

Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year or previous accounting period.

ESE currently has 10 trustees. ESE makes every attempt to minimise the costs of the Executive Committee meetings, by holding them at training courses or congresses where the trustees are already present. In addition, Committees of ESE carry out their businesses where possible by email, phone or by meeting at a training course or congress where the members are already present. In 2020 the trustees’ expenses wholly attributable to committee business was €562 (2019: €7,707). The number of trustees who had expenses reimbursed was 2 (2019: 11). ESE paid a premium of €6,099 (2019: €5,902) to its insurers for trustees indemnity insurance.

13. INTANGIBLE FIXED ASSETS

INTANGIBLE FIXED ASSETS
Website
Development Total
Cost € €
At 1 Jan 2020 68,843 68,843
─────── ───────
At 31 Dec 2020 68,843 68,843
═════ ═════
Amortisation
At 1 Jan 2020 29,697 29,697
Charge for the year 13,769 13,769
─────── ───────
At 31 Dec 2020 43,466 43,466
═════ ═════
Net Book Value
At 31 Dec 2020 25,377 25,377
═════ ═════
At 1 Jan 2020 39,146 39,146
═════ ═════

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

14. TANGIBLE FIXED ASSETS

14. TANGIBLE FIXED ASSETS
Computer
EquipmentTotal
Cost € €
At 1 Jan 2020 3,993
3,993
─────── ───────
At 31 Dec 2020 3,993
3,993
═════ ═════
Amortisation
At 1 Jan 2020 1,185 1,185
Charge for the year 1,219
1,219
─────── ───────
At 31 Dec 2020 2,404
2,404
═════ ═════
Net Book Value
At 31 Dec 2020 1,589
1,589
═════ ═════
At 1 Jan 2020 2,808
2,808
═════ ═════
15. INVESTMENTS
2020 2019
€ €
Market value at 1 January 2020 3,258,799 2,648,442
Additions at cost 119,869 523,571
Disposal proceeds (35,972) (515,438)
Realised (loss)/gain on disposal
 (11,322) 47,445
Unrealised gain on revaluation 90,578 554,779
──────── ────────
Market value at 31 December 2020 3,421,952 3,258,799
Add cash held in investments 87,674 146,219
──────── ────────
Investments total at 31 December 2020 3,509,626 3,405,018
══════ ══════
Historical cost 3,017,712 2,945,138

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

15. INVESTMENTS (CONTINUED)

Analysis of investments at 31 December 2020 between funds

Total Funds Total Funds
2020 2019
€ €
Listed investments
UK Quoted Shares 660,121 711,883
Non-UK Quoted Shares 2,761,831 2,546,916
Cash Balances 87,674 146,219
───────── ─────────
3,509,626 3,405,018
══════ ══════

No investments make up more than 5% of the total holding at 31 December 2020.

16. DEBTORS

DEBTORS
2020 2019
€ €
Trade debtors 267,891 703,788
Other debtors 743,420 645,088
Prepayments 365,591 339,153
VAT 23,062 31,651
──────── ────────
1,399,964 1,719,680
══════ ══════

17. CREDITORS: Amounts falling due within one year

2020 2019
€ €
Trade creditors 185,964 338,226
Other creditors 378,401 388,561
Deferred income 591,340 741,306
──────── ────────
1,155,705 1,468,093
══════ ═════

Deferred income comprises amounts received in advance in respect of the 2021 Congress €43,025 (2019: €458,780), Corporate Sponsorship €418,198 (2019: €212,500) and Membership Fees of €130,116 (2019: €100,000).

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

18. ANALYSIS OF FUNDS

Balance at
1 January
2020		 Incoming
resources		 Outgoing
resources		 Gains and
(losses)		 Interfund
transfer		 Balance at
31 December
2020
€ € € € € €
Restricted funds
Novo Nordisk 6,312 51,914 (62,677) - 4,451
-
Geoffrey Harris Award 1,749 13,500 (10,340) - -
4,909
Jens Christiansen - 10,066 (1,065) - - 9,001
Award
AGHD 5,167 - -
-		 - 5,167
Parathyroid 36,397 8,824 (8,824) - - 36,397
Aggressive Pituitary - 12,568 (12,568) - - -
Tumours
Clinical Update - 103,647 (103,647) - - -
Acromegaly
EuroPit - 6,058 (3,860) - - 2,198
Unrestricted fund 2,938,845 2,525,337 (2,556,848) - 74,807 2,982,141
Designated fund 1,789,000 - - 79,258 (79,258) 1,789,000
───────── ────────── ────────── ───────── ──────────
─────────
4,777,470 2,731,914 (2,759,829) 79,258 -
4,828,813
══════ ═══════ ═══════ ══════ ═══════ ═══════

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

18. ANALYSIS OF FUNDS (Continued)

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS 2020

Intangible Tangible Net current Long term
Fixed assets Fixed Assets assets/ Creditors
Investments (liabilities) Total
€ € € € € €
Restricted fund - - - 57,672 - 57,672
Unrestricted fund 25,377 1,589 1,720,626 1,234,549 - 2,982,141
Designated fund - - 1,789,000 - - 1,789,000
──────── ──────── ───────── ───────── ───────── ─────────
Total Funds 25,377 1,589 3,509,626 1,292,221 - 4,828,813
══════ ══════ ══════ ═══════ ═══════ ═══════
ANALYSIS OF NET ASSETS BETWEEN FUNDS 2019
Intangible
Tangible		 Net current Long term
Fixed assets Fixed Assets assets/ Creditors
Investments (liabilities) Total
€ € € € € €
Restricted fund -
-
-		 49,624
-		 49,624
Unrestricted fund 39,146
2,808
1,616,018
1,280,874
-		 2,938,846
Designated fund -
-
1,789,000
-		 - 1,789,000
────────
────────
─────────		 ───────── ───────── ─────────
Total Funds 39,146
2,808
3,405,018		 1,330,498 - 4,777,470
══════ ══════ ══════ ═══════ ═══════ ═══════

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020

20. RELATED PARTY TRANSACTIONS

During the year the European Society of Endocrinology paid costs of £4,760 in relation to the ESE Foundation. This was included within debtors at the year end. The ESE Foundation’s Board of Directors include the current Chair, Treasurer and Chief Executive of the European Society of Endocrinology.

21. COMPANY LIMITED BY GUARANTEE

The company is limited by guarantee and, as such, does not have a share capital. In the event of winding up, each member has guaranteed to contribute to a maximum of £1 to meet the liabilities of the company.

22. FINANCIAL INSTRUMENTS

2020 2019
€ €
Financial assets measured at fair value 4,560,311 4,483,929
Financial assets measured at amortised costs 1,008,588 1,348,876
──────── ────────
5,568,899 5,832,805
══════ ══════
Financial liabilities measured at amortised costs 564,365 726,787
──────── ────────
564,365 726,787
══════ ═════

Financial assets measured at fair value consists of cash at bank and investments. Financial assets measured at amortised cost consist of trade debtors and other debtors. Financial liabilities measured at amortised cost consist of trade creditors and other creditors.

These pages do not form part of the financial statements

European Society of Endocrinology Company Limited by Guarantee. Detailed income and expenditure account. Year ended 31 December 2020

Year to Year to
31-Dec-20 31-Dec-19
€ €
Income
Sponsorships and grants 462,533 792,869
Congress income 1,067,640 2,730,858
Publications income 531,015 491,708
Membership subscriptions (including corporate) 505,353 385,127
Rebates and commissions 23,381 80,514
Investment income 50,102 55,020
Annual Meetings and Events 91,890 -
────── ──────
2,731,914 4,536,096
Direct costs
Congress costs 1,065,463 2,064,202
Clinical & Scientific Activities 211,749 474,932
Membership 234,360 194,216
Annual Meetings & Events 153,987 273,713
Communications, Media and Publicity 110,740 152,654
Newsletter 63,589 65,731
Publications costs 149,317 102,081
Meeting Grant (6,476) 43,506
Basic Science Meeting Grant (2,549) 35,279
Young Investigator Awards (YI) 12,615 18,418
Geoffrey Harris Award 10,341 13,251
Jens Christiansen Award 10,065 10,452
Short Term Fellowship 5,000 10,000
Small Meeting Grant - 7,553
European Hormone Medal 5,070 6,257
CET Award 4,523 5,580
Honorary and Special Recognition Awards 102 9,081
EJE Award 33 2,983
Poster Awards 2,375 2,267
Science Grant 4,176 15,000
Award/Grant - Other 24,100
────── ──────
2,058,580 3,507,156
Gross surplus 673,334 1,028,940
Overheads
Staff costs 239,664 205,602
Office overheads 17,110 16,720
Donation - 167,262
Foreign exchange (gain) / losses 7,418 5,980
Audit and other accountancy services 23,765 21,705
Legal and professional fees 89,107 122,564
Costs of trustees' meetings 62,086 146,919
Office and Management 115,891 130,270
Policy and Advocacy 121,943 115,985
Investment Manager Fees 24,265 21,421
────── ──────
701,249 954,428
Operating surplus/(loss) (27,915) 74,512
Other Investment gains/(losses) 79,258 602,225
Surplus / (deficit) on ordinary activities 51,343 676,737