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2021-12-31-accounts

European Society of Endocrinology Company Limited by Guarantee

FINANCIAL STATEMENTS 31 December 2021

Company Registration Number: 05540866

Charity number: 1123492

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

FINANCIAL STATEMENTS

YEAR ENDED 31 December 2021

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:

Professor J Bertherat (elected 26 May 2021) Professor F Beuschlein (retired 26 May 2021) Professor P Chanson (elected 26 May 2021) Professor M Christ-Crain Professor M Fassnacht (elected 26 May 2021) Professor A Giustina (retired 26 May 2021) Professor S Glasberg Professor R Granata Professor B Kos-Kudła (retired 26 May 2021) Professor D Macut Professor M Marazuela Professor R Peeters Professor M Reincke 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 2021

The trustees have pleasure in presenting their report and the financial statements of the charity for the year ended 31 December 2021.

INTRODUCTION

Endocrine disorders are very common, and it is likely that more than three-quarters of the population will need an endocrinologist at some point in their life. For example, there are more than 50,000 new cases of thyroid cancer each year and over 400 rare diseases are related to the endocrine system. Diabetes is a public health issue estimated to affect 422 million people in 2014 worldwide. Type-2 accounts for more than 95% of all patients with diabetes. Between 2000 and 2016, there was a 5% increase in premature mortality from diabetes. In 2019 diabetes was the ninth leading cause of death with an estimated 1.5 million deaths directly caused by diabetes.

The rarer endocrine conditions include 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 to registered delegates and free of charge after one year to all ESE members. (Prior to 2019, ESE On Demand was named ECE On Demand). The website also contains on-demand content from the other educational courses which are available for registered delegates).

The ESE Media Office handles 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 nine 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:

In addition, in 2021, the Transatlantic Alliance Award was launched and the inaugural presentation will be at ECE 2022. The Transatlantic Alliance Award is a joint initiative with the Endocrine Society and recognises an international leader who has made significant advancements in endocrinology research through work and collaboration in both the US and Europe.

Grants

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 IN 2021

ESE has a strategic plan with goals and targets clearly identified. Due to the COVID-19 pandemic the original targets and priorities for both 2020 and 2021 had to be reassessed and the ESE activities adapted to the situation, including pivoting the majority of its meetings and events to the digital environment. In November 2021, the first in-person meeting since 2019 was held in France (EuroPit).

The ESE Team continued to expand to facilitate the expansion of ESE activities, including the recruitment of two new permanent positions of Scientific Programmes Project Manager and Event Manager.

2021 marks the end of the current 5-year strategic period. During the second half of 2021, the Executive Committee developed the strategy for 2022-2026.

Some of the achievements and performance during 2021 are noted below:

Goal 1: To be at the centre of the endocrine community in Europe, acknowledged as the reference point for endocrine science, knowledge and health

Also at the 2021 AGM, a new Patient Advocacy Group (PAG) Membership was approved and launched in November 2021. There were 17 applications received and these were approved in February 2022. This new membership group recognises the importance of the patient advocacy groups and that they are an essential partner in ESE’s ambition to provide the best possible care to patients with endocrine diseases. ESE will work together with and support the patient advocacy groups in their ambitions towards developing information resources, providing access to up-to-date medical information and insights and by including the patient voices in policy and advocacy strategies.

For Ordinary membership, the number of members as at the time of the 2021 AGM was 5009 (compared to 4443 at the time of the 2020 AGM), which was the highest ever recorded. The membership represented 116 countries.

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

The number of Corporate Members for 2021 stood at 16, with some movement of different organisations joining and leaving. For 2021, there were 4 Premium Corporate Members, 9 Corporate Members and 3 Supporters (for 2020, 5 Premium, 10 Corporate and 3 Supporters).

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

Journals: ESE advances endocrinology by publishing exceptional science whilst helping endocrinologists to progress their individual careers through publication and collaboration. Our publications help endocrinologists learn the skills they need to publish, as well as offering excellent outlets for their work through our journals, guidelines, and abstracts.

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 below (the previous year in brackets):

The impact factor for the European Journal of Endocrinology , Journal of Molecular Endocrinology and Endocrine Connections are the highest ever and we are extremely proud of the dedication and commitment of the Editorial Boards in achieving this.

In 2021, following the completion of a tender process for its journal publisher of the European Journal of Endocrinology , there will be a change in publisher from 1 January 2023. The transition to the new supplier will take place during 2022. The new publisher from 2023 is Oxford University Press. ESE would like to thank Bioscientifica, its current publisher, for its excellent support in the development of the European Journal of Endocrinology , and its role in bringing it to its current leading position.

In May 2021, the White Paper ‘Hormones in European Health Policies: How endocrinologists can contribute towards a healthier Europe’ was launched. The White Paper introduces the policy makers to areas where increased attention to endocrine aspects of health and disease can benefit health policy making. The White Paper was the subject of a webinar, with the participation of members of the European Commission as well as members of the European Parliament.

In addition, the EU Commissioner Stella Kyriakides addressed the audience at the Opening Ceremony of e-ECE 2021, where close to 4000 health care professionals were online, on the endocrine health perspectives in the European health policies.

ESE provided comments to the provisions included in the European Beating Cancer Plan, and also provided additional perspectives towards members of the European Parliament ahead of the introduction of the plan to the EU Commissioner. Specific aspects related to the prevention of certain cancers by focussing on the rising rates of obesity and the exposure to endocrine disruptors as risk factors to develop these specific cancers were highlighted. This also resulted in the inclusion of such specific concerns in the final report from the BECA committee, published by the MEP Véronique Trillet Lenoir in early 2022.

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

ESE has joined several consultation processes, including those related to the European Health Data Space, and interacted through its membership of the Biomedical Alliance for Research in Europe with the incoming In Vitro Devices Regulation, addressing key issues around the transition from the existing framework towards the future one.

In the area of the Green Deal and the Chemicals Strategy for Sustainability the ESE Expert group on Endocrine Disruption provided input to several consultations, and organised, together with the European Society for Paediatric Endocrinology (ESPE), a symposium as part of the 3rd Annual Forum on Endocrine Disruptors, organised by the European Commission in September 2021. This symposium was dedicated to the impact of endocrine disruption across the lifetime.

ESE is committed to provide the European Institutions with the expert knowledge and advice addressing the different areas of health policy making where the endocrine (hormonal) perspective needs to be considered. This has also been evidenced by the COVID-19 crisis, where patients with endocrine and metabolic diseases, particularly obesity and diabetes, have been particularly vulnerable, at risk of being hospitalised, and been subject of increased mortality.

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

Digital events in 2021 included:

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

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

Summer 2022, and the first steps toward the next new guideline on postmenopausal hormone therapy, to be published 2023.

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

Due to the ongoing pandemic, the 2021 congress was held in a digital format, with e-ECE 2021 being held on22-26 May 2021. It was a six-channel programme across the eight Focus Areas. The meeting was hosted on the ESE on Demand platform.

3453 attendees from 104 countries attended with 1388 abstracts submitted; the digital meeting 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.

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

Despite the ongoing pandemic, our Corporate Members continue with their support when turning our events digital. The business development team continued to work on expanding the portfolio of products and services on offer and also working to maintain and increase the number of partners (Corporate Members, Sponsors).

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

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

FINANCIAL REVIEW

Due to the ongoing pandemic, the originally approved budget was updated in the main areas of activity, e.g., the ECE 2021 in-person budget was updated to reflect a digital meeting and elements of other physical attendance at meetings were reduced. Expenses were reduced where possible; revenue was also forecast to reduce. The Finance Committee and Executive Committee reviewed all elements of the finances to ensure that ESE was as secure as possible under the circumstances of the ongoing pandemic. Due to careful management by the trustees and good performance of the congress, publications and investments there was a positive net movement in funds for the year to 31 December 2021 showing an increase of €1.548M from the previous year.

The major income streams for ESE were from individual and corporate memberships, corporate sponsorship of activities, from the European Journal of Endocrinology and from the ESE Advocacy Representation Scheme. A substantial surplus was also made from congress activities.

The major items of expenditure were from support of the various activities, including the congress, grants and awards, policy and advocacy, 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 2021 is an operating surplus of €981,919. There has been a gain on investments of €566,229 and overall, as stated above, the organisational value of ESE has risen by €1.548M.

The ESE trustees are aware that at the end of 2021 significant funds are being held above the reserves and have taken this into account when reviewing the strategy for future years. Investment in specified projects is planned, including a major data integration project. 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 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

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

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 £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)

Principal funding sources

The European Society of Endocrinology raises its funds mainly through income from its congress, the European Journal of Endocrinology , individual and corporate membership subscriptions and the ESE Advocacy Representative Scheme. 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.

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 2021 for the following activities: overall corporate membership for general support of the Society and its administration; support of meetings such as the ESE postgraduate courses, Clinical Update meetings and themed meetings (EuroPit); 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 Hypoparathyroidism, Aggressive Pituitary Tumours, and Adult Growth Hormone Deficiency (AGHD); support of awards; and support of the White Paper.

(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.

(3) The continuing 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

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

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 €1.520M 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 2021. Also using calculations based on the summary above, the Trustees of ESE consider that the reserve for general ESE activity should be €2.138M. The total of the two reserves is €3.658M and the current total unrestricted income fund as shown in the audited accounts is €6.198M excluding the restricted funds. There is therefore a surplus above the reserve requirement of €2.540M. As described previously, although project investment is planned to utilise a proportion of these funds, the financial situation will be evaluated on an ongoing basis 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)

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

PLANS FOR FUTURE PERIODS

Following a full strategic review, the major goals for 2022-2026 are:

To Unite and Represent the European endocrine community and be acknowledged as the reference point for endocrine health and science

To Support our members in education, clinical practice and research

To further Advance the science and clinical care of endocrinology

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

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.

The Society had thirteen committees in total and an open process for nominations for these was introduced in 2022. The committees report to the Executive Committee through their chairs. 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:

In addition to the Committees, a Policy and Advocacy Task Force was established in 2020.

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

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

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. Finally, ESE joined the European Cancer Organisation in 2021. 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).

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.

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

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 AUDITOR

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: 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 17 May 2022 and signed on its behalf by:

Professor M Reincke Professor D Macut President 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 2021

Opinion

We have audited the financial statements of European Society of Endocrinology (‘the company’) for the year ended 31 December 2021 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 2021

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 page 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: 14 December 2022

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 2021

Unrestricted
Funds		 Restricted
Funds		 Total
Funds
2021		 Total
Funds
2020
Note € € € €
INCOME AND ENDOWMENTS
FROM:
Charitable activities 6 3,060,899 - 3,060,899 2,219,279
Other trading activities 4 301,015 418,487 719,502 462,533
Investments 5 53,584 - 53,584 50,102
────── ────── ────── ──────
TOTAL INCOME 3,415,498 418,487 3,833,985 2,731,914
────── ────── ────── ──────
EXPENDITURE ON:
Raising funds 26,747 - 26,747 24,265
Publicity and awareness 8 147,100 - 147,100 110,740
Charitable activities 9 2,380,529 297,690 2,678,219 2,624,824
────── ────── ────── ──────
TOTAL EXPENDITURE 2,554,376 297,690 2,852,066 2,759,829
────── ────── ────── ──────
NET INCOME/(EXPENDITURE) 861,122 120,797 981,919 (27,915)
BEFORE INVESTMENT
GAINS/(LOSSES)
Gains on investment assets
15		 566,229 - 566,229 79,258
────── ────── ────── ──────
NET INCOME FOR THE YEAR 11 1,427,351 120,797 1,548,148 51,343
────── ────── ────── ──────
INTERFUND TRANSFER 18 - - - -
────── ────── ────── ──────
NET MOVEMENT IN FUNDS FOR 1,427,351 120,797 1,548,148 51,343
THE YEAR
RECONCILIATION OF FUNDS
Total funds brought forward 4,771,141 57,672 4,828,813 4,777,470
────── ────── ────── ──────
TOTAL FUNDS CARRIED 6,198,492 178,469 6,376,961 4,828,813
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 2021

EUROPEAN SOCIETY OF ENDOCRINOLOGY
COMPANY LIMITED BY GUARANTEE
BALANCE SHEET
As at 31 DECEMBER 2021
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		 2021
€
1,393,562
1,786,633
3,180,195
(950,690)		 €
11,609
2,538
4,133,309
2,229,505
6,376,961
6,376,961
══════
178,469
4,409,492
1,789,000
6,376,961
══════		 2020
€
25,377
1,589
3,509,626
1,399,964
1,047,962
2,447,926
(1,155,705)		 2020
€
25,377
1,589
3,509,626
1,399,964
1,047,962
1,292,221
4,828,813
4,828,813
══════
57,672
2,982,141
1,789,000
4,828,813
══════

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 17 May 2022 and are signed on their behalf by:

Professor M Reincke President

Professor D Macut 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 2021

2021 2020
€ €
Cash flows from operating activities 745,398 (55,699)
Cash flows from investing activities
Investment income 53,584 50,102
Purchase of investments (842,243) (119,869)
Proceeds of sale of investments 807,224 35,973
Purchase of tangible assets (2,857) -
Net cash used in investing activities 15,708 (33,794)
Change in cash in the year 761,107 (89,493)
Cash and cash equivalents at the beginning of the year 1,135,635 1,225,129
Cash and cash equivalents at the end of the year 1,896,742 1,135,636
══════ ══════
RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOWS FROM OPERATING ACTIVITIES
2021 2020
€ €
Net income / (expenditure) for the period 1,548,148 51,343
Investment income (53,584) (50,102)
(Gains)/Losses on investments (566,229) (79,256)
(Increase)/Decrease in debtors 6,402 319,716
(Decrease)/Increase in creditors (205,105) (312,388)
Depreciation of tangible assets 13,768 13,769
Amortisation of intangible fixed assets 1,908 1,219
─────── ───────
Net cash provided by/(used in) operating activities 745,398 (55,699)
═════ ═════
Analysis of cash and cash equivalents
Cash in hand 1,786,633 1,047,962
Cash held in investments 110,109 87,674
─────── ───────
1,896,742 1,135,636
══════ ══════

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

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 is the cancellation of the in-person European Congress of Endocrinology, which was due to take place in May 2021. This has been replaced by a digital meeting within the same timeframe. 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. For 2022 this is planned as a hybrid event with both physical and virtual attendance.

The budgets and forecasts were substantially reviewed for 2022, and relevant cost-savings implemented as a result of holding additional digital rather than in-person meetings and educational activities. Extensive work has taken place to ensure that in 2022 and 2023 ESE is well positioned to run the European Congress of Endocrinology in a hybrid format – with attention however contractually with suppliers and supporters if this needs to be changed to a virtual 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 if necessary and operations continue as normal with staff working from home or from the office, 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 2021

2. ACCOUNTING POLICIES (continued)

As at 31 March 2022 the value of the long-term investment portfolio held with Charles Stanley is at €4,023,198 – a total return of 5.38%. This compared to a value of €3,509,626 as at 31 December 2021, 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 2021

2. ACCOUNTING POLICIES (continued)

2.5 Employee Benefits

The cost of short-term employee benefits is 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.

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 2021

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.

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 2021

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 2021

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 2021 Funds Funds 2020
€ € € € € €
Sponsorships
and grants 301,015 418,487 719,502 255,956 206,577 462,533
═════ ═════ ═════ ═════ ═════ ═════
5. INVESTMENT INCOME
Unrestricted Total Funds Total Funds
Funds 2021 2020
€ € €
Income from non-UK listed investments 53,584 53,584 50,102
═════ ═════ ═════

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

6. INCOME FROM CHARITABLE ACTIVITIES

INCOME FROM CHARITABLE ACTIVITIES
Unrestricted Total Funds Total Funds
Funds 2021 2020
€ € €
Congress income 1,644,253 1,644,253 1,067,640
Publications income 819,566 819,566 531,015
Membership subscriptions (including Corporate
members) 501,111 501,111 505,353
Rebates and commissions 21,165 21,165 23,381
Annual Meetings and Events 74,804 74,804 91,890
──────── ──────── ─────────
3,060,899 3,060,899 2,219,279
══════ ══════ ══════

All funds received in 2020 were unrestricted.

7. ANALYSIS OF INCOME BY GEOGRAPHY

2021 2020
€ €
UK 361,827 218,553
Europe 2,504,556 1,885,021
Rest of the World 967,602 628,340
──────── ────────
Total Incoming Resources 3,833,985 2,731,914
══════ ══════

8. PUBLICITY AND AWARENESS

Direct
charitable		 Support Total
Funds		 Direct
charitable		 Support Total
Funds
activities costs 2021 activities costs 2020
€ € € € € €
Communications,
Media and Publicity		 147,100 - 147,100 110,740 - 110,740
═════ ═════ ═════ ═════ ═════ ═════

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

9. COSTS OF CHARITABLE ACTIVITIES BY ACTIVITY TYPE

Direct Support costs Total Funds
charitable 2021
activities
€ € €
Congress costs 933,402 - 933,402
Grants, awards & sponsorships 9(b) 73,104 - 73,104
Membership 243,337 6,022 249,359
Newsletter 77,493 - 77,493
Annual meetings & events 352,538 - 352,538
Publications costs 116,795 - 116,795
Clinical and scientific activities 214,402 15,181 229,583
Staff costs 12 - 299,010 299,010
Office overheads - (28,623) (28,623)
Donation 9(a) - - -
FX losses - (31,069) (31,069)
Governance costs 10 - 406,627 406,627
───────── ───────── ─────────
2,011,071 667,148 2,678,219
═══════ ═══════ ═══════
Direct Support costs Total Funds
charitable 2020
activities
€ € €
Congress and meetings 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
═══════ ═══════ ═══════

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

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

9(a) Donation:

In 2020 and 2021, the congress was held as a digital meeting and therefore there was no local host Society and no donation made.

9(b) Grants, awards and sponsorships :

rants, awards and sponsorships:
2021 2020
€ €
Geoffrey Harris Award 15,058 10,341
ESE Young Investigator Awards 12,848 12,615
EJE Award 54 33
ESE Meeting grants 15,000 (6,476)
Poster Awards 2,439 2,375
ESE Small Meeting grants 2,500 -
Science Grants (7,500) 4,176
Basic Science Meeting Grants 4,500 (2,549)
Short Term Fellowship 1,250 5,000
European Hormone Medal 6,058 5,070
Honorary and Special recognition Awards 164 102
Clinical Endocrinology Award 4,654 4,522
Jens Christiansen Award 6,554 10,065
Award/Grant – Other 9,525 24,100
────── ──────
73,104 69,374
════ ════

10. GOVERNANCE COSTS

Unrestricted Total Funds Total Funds
Funds 2021 2020
€ € €
Audit fees 16,740 16,740 23,765
Legal and professional fees 65,076 65,076 89,107
Costs of trustees' meetings 54,518 54,518 62,086
Office and management 93,833 93,833 115,891
Policy and advocacy 176,460 176,460 121,943
────── ────── ──────
406,627 406,627 412,792
═════ ═════ ═════

All governance costs incurred in 2020 were unrestricted costs.

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

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

This is stated after charging:

This is stated after charging:
2021 2020
€ €
Auditor’s fees: current year 16,740 23,765
Foreign exchange gains/(losses) (31,069) 7,418
════ ════

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		 2021
2020
Number
Number
7
5
2021
2020
€
€
404,289
281,351
37,922
34,545
21,915
17,981
464,126
333,877

During the year, €4,733 of employment costs have been allocated to congress costs (2020: €2,459).

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 2020 financial year.

Banding 2021 2020
€90,001 – €100,000 1 1

Pension costs relating to higher paid employees totalled €7,666 in 2021 (2020: €6,511).

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

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 €132,204 (2020: €113,545). 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 and Committee meetings by holding in-person meetings alongside the annual congress where the trustees are already present. Other meetings are held via video conference and, in addition, ESE Committees carry out their businesses where possible by email or phone. In 2021 the trustees’ expenses wholly attributable to committee business was €1,245 (2020: €7,707). The number of trustees who had expenses reimbursed was 2 (2020: 11). ESE paid a premium of €6,099 (2020: €5,902) to its insurers for trustees indemnity insurance.

13. INTANGIBLE FIXED ASSETS

Website
Development Total
Cost € €
At 1 Jan 2021 68,843 68,843
─────── ───────
At 31 Dec 2021 68,843 68,843
═════ ═════
Amortisation
At 1 Jan 2021 43,466 43,466
Charge for the year 13,768 13,768
─────── ───────
At 31 Dec 2021 57,234 57,234
═════ ═════
Net Book Value
At 31 Dec 2021 11,609 11,609
═════ ═════
At 1 Jan 2021 25,377 25,377
═════ ═════

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

14. TANGIBLE FIXED ASSETS

Computer
Equipment
Total
Cost €
€
At 1 Jan 2021 3,993
3,993
Additions 2,857
2,857
───────
───────
At 31 Dec 2021 6,850
6,850
═════
═════
Amortisation
At 1 Jan 2021 2,404
2,404
Charge for the year 1,908
1,908
───────
───────
At 31 Dec 2021 4,312
4,312
═════
═════
Net Book Value
At 31 Dec 2021 2,538
2,538
═════
═════
At 1 Jan 2021 1,589
1,589
═════
═════
15. INVESTMENTS
2021 2020
€ €
Market value at 1 January 2021 3,421,952 3,258,799
Additions at cost 842,243 119,869
Disposal proceeds (807,224) (35,972)
Realised loss on disposal (18,362) (11,322)
Unrealised gain on revaluation 584,591 90,578
──────── ────────
Market value at 31 December 2021 4,023,200 3,421,952
Add cash held in investments 110,109 87,674
──────── ────────
Investments total at 31 December 2021 4,133,309 3,509,626
══════ ══════
Historical cost 3,034,368 3,017,712

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

15. INVESTMENTS (CONTINUED)

Analysis of investments at 31 December 2021 between funds

Total Funds Total Funds
2021 2020
€ €
Listed investments
UK Quoted Shares 1,026,243 660,121
Non-UK Quoted Shares 2,996,957 2,761,831
Cash Balances 110,109 87,674
───────── ─────────
4,133,309 3,509,626
══════ ══════

No investments make up more than 5% of the total holding at 31 December 2021.

16. DEBTORS

DEBTORS
2021 2020
€ €
Trade debtors 249,022 267,891
Other debtors 661,806 743,420
Prepayments 482,734 365,591
VAT - 23,062
──────── ────────
1,393,562 1,399,964
══════ ══════

17. CREDITORS: Amounts falling due within one year

2021 2020
€ €
Trade creditors 117,195 185,964
Other creditors 369,290 378,401
Deferred income 431,492 591,340
Tax and Social Security 32,713 -
──────── ────────
950,690 1,155,705
══════ ═════

Deferred income comprises amounts received in advance in respect of the 2022 Congress €80,592 (2020: €43,025), Corporate Sponsorship €189,400 (2020: €418,198) and Membership Fees of €161,500 (2020: €130,116).

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

18. ANALYSIS OF FUNDS 18. ANALYSIS OF FUNDS
Balance at
1 January
2021		 Incoming
resources		 Outgoing
resources		 Gains and
(losses)		 Interfund
transfer		 Balance at
31 December
2021
€ € € € € €
Restricted funds
Novo Nordisk - 75,000 (73,348) - - 1,652
Geoffrey Harris Award
4,909		 - - - - 4,909
Jens Christiansen 9,001 15,000 (6,554) - - 17,447
Award
AGHD 5,167 - (119) - - 5,048
Parathyroid 36,397 103,200 (73,791) - - 65,806
Aggressive Pituitary - - - - - -
Tumours
Clinical Update - 75,000 (40,688) - - 34,312
Acromegaly
EuroPit 2,198 - - - - 2,198
Emergency Cards for
-		 19,000 (4,961) - - 14,039
Hypoparathyroidism
Hypoparathyroidism
-		 71,287 (57,696) - - 13,591
Patient Forum
Policy & Advocacy - 60,000 (40,533) - - 19,467
Unrestricted fund 2,982,141 3,415,498 (2,554,376) - 566,229 4,409,492
Designated fund 1,789,000 - - 566,229 (566,229) 1,789,000
───────── ────────── ─────────────────── ────────── ─────────
4,828,813 3,833,985 (2,852,066) 566,229 -
6,376,961
══════ ═══════ ═══════ ══════ ═══════ ═══════

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

18. ANALYSIS OF FUNDS (Continued)

19. ANALYSIS OF NET ASSETS BETWEEN FUNDS 2021

Intangible Tangible Net current Long term
Fixed assets Fixed Assets assets/ Creditors
Investments (liabilities) Total
€ € € € € €
Restricted fund -
-
-		 178,469 -
178,469
Unrestricted fund 11,609 2,538 2,344,309 2,051,036 -
4,409,492
Designated fund -
-
1,789,000		 -
-
1,789,000
──────── ──────── ───────── ───────── ───────── ─────────
Total Funds 11,609 2,538 4,133,309 2,229,505 - 6,376,961
══════ ══════ ══════ ═══════ ═══════ ═══════

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
══════ ══════ ══════ ═══════ ═══════ ═══════

EUROPEAN SOCIETY OF ENDOCRINOLOGY COMPANY LIMITED BY GUARANTEE

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021

20. RELATED PARTY TRANSACTIONS

During the year the European Society of Endocrinology paid costs of €8,484 in relation to the ESE Foundation (2020: €4,760). 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.

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 2021

Year to Year to
31-Dec-21 31-Dec-20
€ €
Income
Sponsorships and grants 719,502 462,533
Congress income 1,644,253 1,067,640
Annual Meetings and Events 74,804 91,890
Publications income 819,566 531,015
Membership subscriptions (including corporate) 501,111 505,353
Rebates and commissions 21,165 23,381
Investment income 53,584 50,102
────── ──────
3,833,985 2,731,914
Direct costs
Congress costs 933,402 1,065,463
Clinical & Scientific Activities 229,584 211,749
Membership 249,359 234,360
Annual Meetings & Events 352,538 153,987
Communications, Media and Publicity 147,100 110,740
Newsletter 77,493 63,589
Publications costs 116,795 149,317
Meeting Grant 15,000 (6,476)
Basic Science Meeting Grant 4,500 (2,549)
Young Investigator Awards (YI) 12,848 12,615
Geoffrey Harris Award 15,057 10,341
Jens Christiansen Award 6,554 10,065
Short Term Fellowship 1,250 5,000
Small Meeting Grant 2,500 -
European Hormone Medal 6,058 5,070
CET Award 4,654 4,523
Honorary and Special Recognition Awards 164 102
EJE Award 54 33
Poster Awards 2,439 2,375
Science Grant (7,500) 4,176
Award/Grant - Other 9,525 24,100
────── ──────
2,179,374 2,058,580
Gross surplus 1,654,611 673,334
Overheads
Staff costs 299,010 239,664
Office overheads (28,623) 17,110
Foreign exchange (gain) / losses (31,069) 7,418
Audit and other accountancy services 16,740 23,765
Legal and professional fees 65,076 89,107
Costs of trustees' meetings 54,518 62,086
Office and Management 93,833 115,891
Policy and Advocacy 176,460 121,943
Investment Manager Fees 26,747 24,265
────── ──────
672,692 701,249
Operating surplus/(loss) 981,919 (27,915)
Other Investment gains 566,229 79,258
Surplus on ordinary activities 1,548,148 51,343