**Company registration number    06440198** 

## **PSI-K** 

**(A company limited by guarantee)** 

## **REPORT AND UNAUDITED FINANCIAL STATEMENTS** 

**YEAR ENDED 31 DECEMBER 2022** 



**PSI-K CONTENTS PAGE YEAR ENDED 31 DECEMBER 2022** 

||**Page**|
|---|---|
|Legal and Administrative Information|1|
|Report of the Chairman|2|
|Report of the Trustees|4|
|Independent Examiner’s Report|8|
|Statement of Financial Activities|9|
|Balance Sheet|10|
|Notes to the Financial Statements|11 - 16|





## **PSI-K LEGAL AND ADMINISTRATIVE INFORMATION YEAR ENDED 31 DECEMBER 2022** 

Psi-k is a company limited by guarantee and a registered charity governed by its Memorandum and Articles of Association dated 29 November 2007. 

Company registration number: 06440198 

Charity registration number: 1126308 

## **DIRECTORS AND TRUSTEES** 

The directors of the company are its Trustees for the purpose of Charity Law and throughout this report are collectively referred to as the Trustees. The Trustees who served during the period and to the date of this report are set on page 4. 

## **SECRETARY** 

Damian Jones 

## **REGISTERED AND PRINCIPAL OFFICE** 

Stfc Scitech Daresbury Daresbury Warrington Cheshire WA4 4AD 

## **ACCOUNTANTS & INDEPENDENT EXAMINERS** 

RSM UK Tax and Accounting Limited Chartered Accountants 5[th] Floor One City Place Queens Road Chester CH1 3BQ 

## **BANKERS** 

HSBC Bank Plc 11 Stamford New Road Altrincham Cheshire WA14 1BW 

Page 1 



**PSI-K REPORT OF THE CHAIRMAN YEAR ENDED 31 DECEMBER 2022** 

2022 was a resurgent year for Psi-k with the twice-postponed Psi-k Conference proving to be an outstanding success. This was the sixth general conference for the worldwide Psi-k community, following previous successful events held in San Sebastian (2015), Berlin (2010), and Schwäbisch Gmünd (2005, 2000, 1996). The 2022 Conference was a fully in-person event held over 3.5 days (22–25 August) at the SwissTech Convention Centre at the École Polytechnique Fédérale de Lausanne (EPFL) in Switzerland.  It attracted 1,269 registered participants, exceeding all expectations, as the opportunity for the community to gather in person after a two-year hiatus caused by the Covid-19 pandemic proved to be extremely attractive. The participants included 461 PhD students, 301 postdocs and 374 established academics or senior researchers along with 40 from industry. 21.5% of participants were female. Over 80% of the participants were based at institutions in Europe, owing to the travel restrictions still in place at the time. The scientific programme included six plenary lectures, 38 symposia (with 372 talks) and 715 posters. 

The plenary lectures were delivered by Lucia Reining, Nicola Spaldin, Feliciano Giustino, Francesco Mauri, Angelos Michaelides and Gábor Csányi. Overall poster prizes were awarded to Jennifer Coulter (Harvard), Chengcheng Xiao (Imperial College London), Niamh O’Neill (Cambridge) and Divya Suman (EPFL). An important addition to the programme for 2022 was a session organised by and for early career researchers, whose involvement in Psi-k is crucial for its future – this was led by Joseph Prentice (Oxford), Michele Kotiuga (EPFL) and Valerio Vitale (Trieste). A gala social event was held on the evening of 24 August in the centre of Lausanne. A comprehensive survey was sent to all participants and the responses were overwhelmingly positive – further details can be found at the Conference web site: https://www.psik2022.net. Psi-k gratefully acknowledges the support from its sponsors for this event but especial thanks are due to Nicola Marzari, Conference Chair, and Patrick Mayor, Principal Organiser, for their hard work and dedication to ensuring the success of the Conference both scientifically and practically. 

In addition to the Conference, Psi-k sponsored a further 19 workshops, summer schools and hands-on tutorials, details of which can be found at https://psi-k.net/psi-k-workshops-2022/. 

One Psi-k highlight was published in March on “Non-linear response of solids and nanostructures: a realtime prospective” by Claudio Attaccalite, Davide Sangalli and Myrta Grüning. This can be found at https://psi-k.net/highlights/, together with all those published from 1994 onwards. We are always keen and happy to showcase work that combines breadth and depth and is relevant to the Psi-k community; any suggested contributions can be discussed with leon.petit@stfc.ac.uk. We have established informal agreements with npj Computational Materials and IOP Electronic Structure that provide opportunities for the open-access publication of approved Psi-k highlights. 

All these activities are supported by the generous donations of groups worldwide – 38 groups or institutions from 12 countries contributed to the charity in 2022. Anyone (individuals, groups, organisations, companies) who would like to contribute can contact p.haynes@imperial.ac.uk and PSIK_ADMIN@stfc.ac.uk. 

The Working Groups were last reorganised in 2017, and remain instrumental in coordinating the scientific programme. The 16 Working Groups are organised by three main themes, each overseen by a Trustee: 

- A. Physical formalisms – Silke Biermann (École Polytechnique, Paris) 

- B. Algorithms, software and data – Arash Mostofi (Imperial College London) 

- C. Applications to real materials and materials design – Igor Abrikosov (Linköpings Universitet) 

Further information about the Working Groups can be found at https://psi-k.net/groups/. At the Conference it was announced that a further review of the Working Groups would take place, and a meeting of Trustees and current Working Group Leaders was held after the end of the Conference to discuss the feedback from the community. 

These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 2 



**PSI-K REPORT OF THE CHAIRMAN (Continued) YEAR ENDED 31 DECEMBER 2022** 

In 2022 the two-step submission process for workshop proposals continued, whereby a first deadline at the end of July is used for outline proposals, which are light-touch submissions to be evaluated by the Working Groups and Trustees in order to coordinate and streamline all activities. Outline proposals are either encouraged to submit a full proposal by the end of October, rejected right away, or advised to merge with other efforts on similar themes to avoid duplication. The Psi-k/CECAM Research Conference has a separate application track, and any proposals not selected but deemed of sufficient quality can directly apply as a full proposal: partly as a result of the Conference there was no Psi-k/CECAM Research Conference in 2022. 

The Board of Trustees met five times in 2021, all by teleconference: on 17 February, 21 April, 23 June, 15 September and 1 November. Minutes of meetings are recorded, circulated, and kept for internal use. The Trustees (https://psi-k.net/admin/https://psi-k.net/admin/), plus 19 Working Group leaders (https://psik.net/groups/) and members of the Scientific Advisory Committee (https://psi-k.net/scientific-advisorycommittee/) attended the Annual Meeting on 25 November, where all activities are finalised for the following year (in this case, from April 2023 to March 2024). The third online community meeting was held on 9 December and advertised to the whole Psi-k mailing list. This included a review of the Conference as well as items about encouraging the involvement of early career researchers and feedback on the Working Groups. 

The generous contribution of time from all the groups above is essential to the wellbeing of the Charity, but particular thanks must go to our Operations Manager Damian Jones (STFC Daresbury Laboratory, UK) for coordinating all the administration; and to Risto Nieminen who stepped down as a Trustee at the end of 2022 having been involved from the earliest days of the Network. 


Peter Haynes - Psi-K Chair 

20/09/23 Date:  …………… 

These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 3 



**PSI-K REPORT OF THE TRUSTEES YEAR ENDED 31 DECEMBER 2022** 

The Trustees present their annual report and unaudited financial Statements for the year ended 31 December 2022. 

**Trustees** 

The Trustees who served during the period and to the date of this report were: Igor Abrikosov Silke Biermann Stefan Blügel Claudia Draxl +Martin Friak Peter Haynes (Chair) Nicola Marzari +Angelos Michaelides Elisa Molinari Arash Mostofi *Risto Nieminem Lucia Reining 

The Trustee whose name is starred (*) resigned following the Annual Meeting on 26 November 2021, and at this same meeting the Trustees whose names are indicated by a plus (+) were elected. 

## **Structure, governance and management** 

The organisation is governed by its Memorandum and Articles of Association and is a registered company limited by guarantee. 

Psi-k is a Europe-based, worldwide network of researchers working on the advancement of first-principles computational materials science. Its mission is to develop fundamental theory, algorithms, and computer codes in order to understand, predict, and design materials properties and functions. Theoretical condensed matter physics, quantum chemistry, thermodynamics, and statistical mechanics form its scientific core. Applications encompass inorganic, organic and bio-materials, and cover a whole range of diverse scientific, engineering, and industrial endeavours. Key activities of Psi-k are the organisation of conferences, workshops, tutorials and training schools as well as the dissemination of scientific thinking in society. 

Psi-k has a minimum of three Trustees, but there is no maximum. On the date of this report there were eleven Trustees. 

Psi-k has a Chair, and a Scientific Advisory Committee (SAC) of about 80 members, which is headed by the Chair of Psi-k. In addition all Trustees are also SAC members. 

The Board of Trustees meets on average five to six times a year, normally with a combination of face-to-face meetings and teleconference meetings. In 2022 there were five meetings, all by teleconference: on 17 February, 21 April, 23 June, 15 September and 1 November. The Trustees had opportunities to meet in person during and after the Psi-k Conference in Lausanne (22–26 August) and at the Annual Meet26 November (following the Annual Meeting of the SAC). Minutes of meetings are recorded, circulated, and kept for internal use. The Board of Trustees uses these meetings to discuss matters including but not limited to: future strategy, funding and finances, events such as workshops, conferences and summer schools, and relationships with external organisations such as CECAM. 

The day to day running of Psi-k is delegated to the Chair, Peter Haynes, supported by the Operations Manager and Secretary, Damian Jones. 

The SAC meets once a year, normally in November, together with the leaders of the 16 Working Group (https://psi-k.net/groups/). It is chaired by the Chair of Psi-k and its role is to make recommendations to the Board, particularly regarding plans for all activities for the following year (in this case, from April 2023 to March 2024). In 2022 the Annual Meeting was held on 25 November in hybrid mode: in person in Paris and online. 

For the third time, on 9 December 2022, an open community meeting was held online and advertised via the Psi-k mailing list. 

These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 4 



**PSI-K REPORT OF THE TRUSTEES (Continued) YEAR ENDED 31 DECEMBER 2022** 

All Trustees gave their time freely and no Trustee remuneration was paid in the year: expenses paid to Trustees amounted to €nil. Trustees are required to disclose all relevant interests and register them with the Chair. 

Trustees are required to declare any conflicts of interest at each meeting and these are recorded in the minutes. If a vote of the Trustees is required on a matter, a Trustee who has declared a conflict of interest on that matter may not cast a vote. 

## **Risk management** 

The Trustees have considered the major risks to which the charity is exposed and have reviewed those risks and established systems and procedures to manage those risks. 

A significant risk for the Psi-k Charity is reduced financial funding.  Since 2016, Psi-k has been sustained entirely by donations. In 2021 the Trustees agreed that our annual expenditure on community activities is determined by our income from the previous year, and adopted a target for reserves of €200,000. 

## **Objectives and activities** 

Europe has become the leading research area in the world for the application of first-principles computational modelling to materials science and Psi-k aims to maintain and enhance this status. 

“Psi-k research” covers structures, properties and processes in all types of materials at the atomic level and in nanometre-scale structures, studied by ab initio quantum-mechanical computer simulation. A series of working groups represent the views of the community and organise activities to deliver the Psi-k mission. In 2022 these were: 

|<br>2022 these were:|<br>2022 these were:|
|---|---|
|**Theme A: Physical Formalisms**||
|WG A1|Density and density-matrix functional theories|
|WG A2|Perturbative many-body methods|
|WG A3|Non-perturbative many-body methods|
|WG A4|Open and non-equilibrium systems|
|WG A5|Quasi-particle interactions and spectroscopies|
|**Theme B: Algorithms, Software and Data**||
|WG B1|Reduced-scaling methods|
|WG B2|Statistics and configuration sampling|
|WG B3|Bridging length-and time-scales|
|WG B4|Software engineering|
|WG B5|High-throughput screening and data analytics|
|**Theme C: Applications to Real Materials and Materials Design **||
|WG C1|Structural materials|
|WG C2|Functional materials and devices|
|WG C3|Magnetism and spintronics|
|WG C4|Surfaces andinterfaces|
|WG C5|Nanoscale structures (2D, 1D, 0D) and related phenomena|
|WG C6|Molecules, macromolecules and biomolecules|



Psi-k will promote and coordinate collaboration within the European research community by, among others, the following measures: 

- supporting workshops and small conferences on specific topics of active research; 

- supporting summer schools, tutorial courses and other training activities for young and new researchers in the field; 

- organising a large “Psi-k conference” (such as those previously held in 1996, 2000, 2005, 2010 and 2015) every five years, this was the highlight of the year, held 22–25 August 2022 at EPFL in Switzerland; 

- disseminating information about research progress, job opportunities, relevant workshops, conferences and other events, and funding opportunities via the Psi-k website providing a portal and a newsletter available freely to anyone in the world by electronic means. 

These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 5 



## **PSI-K REPORT OF THE TRUSTEES (Continued) YEAR ENDED 31 DECEMBER 2022** 

The activities are open to all researchers in the field. Psi-k acts as a vehicle to engaging with the wider scientific community, with industry, European policy makers and trans-European computer centres. It will seek to maintain cooperation with organisations such as the Centre Européen de Calcul Atomique et Moléculaire (CECAM), the European molecular simulation community and its networks and Psi-k’s counterpart research communities on other continents. 

## **Aims and objectives for 2022** 

The highlight of 2022 was the twice-postponed Psi-k Conference, held fully in person at EPFL in Lausanne in August. This was the largest in-person conference held since the pandemic and was extremely successful: further details are provided in the Chair’s report. The other main activities planned during 2022 comprised the scientific programme of workshops, tutorials and summer schools on the electronic structure of complex processes in materials, i.e. the topic of the Psi-k Charity. In view of the Psi-k Conference, no Psi-k/CECAM Research Conference was held in 2022 and no events were funded in the period around the Conference. The programme comprised 20 events in 2022, including the Conference. 

## **Grant making policy** 

The Psi-k Charity does not make grants to other research bodies. 

The Psi-k Charity applies its funding to the organization of workshops, summer schools, hands-on courses and the Psi-k Conference. The Theoretical and Computational Physics Group at STFC Daresbury Laboratory publishes the Psi-k Newsletter and provides administrative support. 

The achievements of every workshop to which Psi-k contributes are monitored in the form of a report which is published on the Psi-k website (http://psi-k.net/). 

## **Key performance indicators** 

In 2022 the Psi-k Charity organised 20 workshops, conferences and training activities. This is less than a normal year but accounted for by the priority given to the large in-person Psi-k Conference. 

## **Financial review 2022 and plan for 2023** 

Member donations in 2022 were slightly up from the previous year with a total of about €123,600 received. The expenses in the 2022 budget included €87,342 for workshops, and €15,000 for the Psi-k Conference leading to total expenses of about €102,342. 

At the year end the net assets compromise the bank balances of €433,267 (2021: €471,443) and debtors of €150,583 (2021: €35,825), which have increased significantly at the year end, in the main due to a €100,000 return of capital contribution post year end, due to the popularity of a seminar held during the year which meant the contribution to costs was not required by PSI-K.  Liabilities include grant creditors & accruals of €168,919 (2021: €168,313). 

Plan for 2023: The Trustees continue to seek new contributors with an aim of increasing annual donations to around €150,000. The amount of €102,745 will be spent on workshops in the coming 2023 seminar season. Any deficit will be covered by the reserves. 

During the year 2022 the Trustees were satisfied that, as far as circumstances permitted, the Charity continued to benefit the public through its activities targeted to achieve its charitable objectives. 

## **Public Benefit** 

The Trustees confirm that they have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing the Trust’s aims and objectives and in planning future activities and setting the grant making policy for the year. 

## **Trustees’ responsibilities** 

The Trustees (who are also Directors of Psi-k for the purposes of company law) are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). 

Company Law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and applications of resources, including the income and expenditure, of the charitable company for that year. 

These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 6 



**PSI-K REPORT OF THE TRUSTEES (Continued) YEAR ENDED 31 DECEMBER 2022** 

In preparing those financial statements, the Trustees are required to: 

- provide statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business; 

- select suitable accounting policies and apply them consistently; 

- observe the methods and principles in the Charitable SORP 

- make judgements and estimates that are reasonable and prudent; 

- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements. 

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

This report has been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities (issued in March 2005) and in accordance with the special provisions applicable to small companies under part 15 of the Companies Act 2006. 

ON BEHALF OF THE BOARD 


Peter Haynes 

Date: 20/09/23 

These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 7 



## **INDEPENDENT EXAMINER’S REPORT TO THE TRUSTEES OF PSI-K** 

I report to the trustees on my examination of the financial statements of PSI-K (“the company”) for the year ended 31 December 2022, which are set out on pages 9 to 16. 

## **Responsibilities and basis of report** 

As the trustees of the company (and also its directors for the purposes of company law) you are responsible for the preparation of the financial statements in accordance with the requirements of the Companies Act 2006 (‘the 2006 Act’). 

Having satisfied myself that the financial statements of the company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination I report in respect of my examination of your charity’s financial statements as carried out under section 145 of the Charities Act 2011 (‘the 2011 Act’). In carrying out my examination I have followed the Directions given by the Charity Commission under section 145 (5)(b) of the 2011 Act. 

An independent examination does not involve gathering all the evidence that would be required in an audit and consequently does not cover all the matters that an auditor considers in giving their opinion on the financial statements. The planning and conduct of an audit goes beyond the limited assurance that an independent examination can provide. Consequently, I express no opinion as to whether the financial statements present a ‘true and fair view’ and my report is limited to those specific matters set out in the independent examiner’s statement. 

## **Independent examiner’s statement** 

I have completed my examination. I confirm that no material matters have come to my attention in connection with the examination giving me reasonable cause to believe that in any material respect: 

1. accounting records were not kept in respect of the company as required by section 386 of the 2006 Act; or 

2. the financial statements do not accord with those records; or 

3. the financial statements do not comply with the accounting requirements of section 396 of the 2006 Act other than any requirement that the financial statements give a ‘true and fair view’ which is not a matter considered as part of an independent examination; or 

4. the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice: Accounting and Reporting by Charities applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Ireland (FRS 102). 

I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the financial statements to be reached. 

## John Guest 

Name: **John Guest** 

Name of applicable listed body: **The Institute of Chartered Accountants in England and Wales** Relevant professional qualification or membership of professional body: **Chartered Accountant** 

ON BEHALF OF RSM UK TAX AND ACCOUNTING LIMITED 

Chartered Accountants 5[th] Floor One City Place Queens Road Chester CH1 3BQ Date:  20/09/23 

Page 8 



## **PSI-K STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDITURE ACCOUNT YEAR ENDED 31 DECEMBER 2022** 

|<br>Notes<br>**INCOMING RESOURCES**<br>Donations and legacies<br>-  Donated services<br>Charitable activities<br>-  Donations from research bodies<br>**TOTAL INCOMING RESOURCES**<br>**RESOURCES EXPENDED**<br>Charitable activities<br>4<br>**TOTAL RESOURCES EXPENDED**<br>**NET INCOMING RESOURCES AND NET**<br>**MOVEMENT IN FUNDS FOR THE YEAR**<br>**RECONCILIATION OF FUNDS**<br>TOTAL FUNDS BROUGHT FORWARD<br>**TOTAL FUNDS CARRIED FORWARD**12|Unrestricted<br>Funds<br>€<br>37,364<br>101,499<br>138,863<br>62,887<br>62,887<br>75,976<br>338,955<br>414,931|Total Funds<br>2022<br>€<br>37,364<br>101,499<br> <br>138,863<br> <br>62,887<br> <br>62,887<br> <br>75,976<br> <br>338,955<br> <br>414,931|Total Funds<br>2021<br>€<br>37,364<br>170,257<br>207,621<br>54,223<br>54,223<br>153,398<br>185,557<br>338,955|
|---|---|---|---|



The statement of financial activities includes all gains and losses recognised in the year. 

All income and expenditure derive from continuing activities and are attributed to unrestricted funds. 

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

These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 9 



**Company registration number    06440198** 

**PSI-K BALANCE SHEET AS AT 31 DECEMBER 2022** 

|Notes<br>**CURRENT ASSETS**<br>Debtors<br>9<br>Cash at bank<br>**CREDITORS:**Amounts falling<br>due within one year<br>10<br>**TOTAL ASSETS LESS CURRENT**<br>**LIABILITIES**<br>**INCOME FUNDS**<br>Unrestricted funds<br>12<br>Restricted funds<br>12<br> <br>**TOTAL CHARITY FUNDS**<br>12<br>|2022<br>€<br>150,583<br>433,267<br>583,850<br>(168,919)<br>414,931<br>414,931<br>-<br>414,931|2021<br>€<br>35,825<br>471,443<br>507,268<br>(168,313)<br>338,955<br>338,955<br>-<br>338,955|
|---|---|---|



For the year ending 31 December 2022 the company was entitled to exemption from audit under Section 477 of the Companies Act 2006 relating to small companies. 

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006. 

The directors acknowledge their responsibilities for: 

- (a) ensuring that the company keeps accounting records which comply with Section 396 of the Companies Act 2006; and 

- (b) preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Section 396 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. 

These financial statements are prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with Charities SORP (FRS102). 

The notes on pages 11 to 17 form part of these financial statements. 

The financial statements were approved by the Trustees and authorised for issue on ………………….. and were 20/09/23 signed on their behalf by: 


Peter Haynes (Chair) 

## **Trustee** 

These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 10 



**PSI-K NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022** 

## 1. **ACCOUNTING POLICIES** 

## **a.** 

## **Basis of preparation** 

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their financial statements in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (Issued October 2019) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. 

The financial statements are prepared in Euro and amounts in these financial statements are rounded to the nearest Euro. 

PSI-K meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.  The Charity has taken advantage of the provisions in the SORP for Charities applying FRS102 Update Bulletin 1 not to prepare a Statement of Cash Flows. 

## **b. Preparation of the financial statements on a going concern basis** 

The trustees forecast that the charity will continue to be able to pay its liabilities as they fall due for a period of at least 12 months following the date of approving the financial statements. The forecasts take into account transactions that are anticipated to take place in the foreseeable future and indicate that no additional financial resources will be required should the actual performance differ from forecast. On this basis the trustees have concluded that adopting the going concern basis of accounting in preparing the annual financial statements is appropriate. 

## **c. Income recognition** 

Incoming resources represents donations from research bodies in Europe to support the company’s activities, less amounts carried forward to future periods as deferred income; and donated services, which are included based on the hours worked and the appropriate hourly rate.  Income is recognised when the entity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. 

## **d. Donated services** 

Donated services are included within incoming resources with an equivalent amount shown within resources expended, where the benefit to the charity is reasonably quantifiable, measurable and material. The value placed on these resources is the estimated value to the charity of the service received. 

## **e.** 

## **Deferred income** 

Donations received in advance of the period that they relate to, or which are provided specifically for future periods, are carried forward as deferred income. These amounts relate to contributions from research bodies received in advance. 

## **f. Expenditure recognition** 

All expenditure is accounted for on an accruals basis, inclusive of any VAT which cannot be recovered. 

Grants payable are payments made to third parties in the furtherance of the charitable objectives of the Charity.  Grants are accounted for when either the recipient has a reasonable expectation that they will receive a grant and the trustees have agreed to pay the grant without condition, or the recipient has a reasonable expectation that they will receive a grant and any condition attaching to the grant is outside of the control of the Charity. 

Provisions for grants are made when the intention to make a grant has been communicated to the recipient but there is uncertainty about either the timing of the grant or the amount of grant payable. 

Governance costs are related to the governance of the charity, such as the costs of preparing the financial statements and statutory compliance. 

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred. 

These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 11 



## **PSI-K NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022** 

## 1. **ACCOUNTING POLICIES (Continued)** 

## **g. Charitable Funds** 

Restricted funds are to be used for specified purposes as laid down by the donor.  Expenditure which meets these criteria is identified to the fund, together with a fair allocation of management and support costs. 

Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity. 

## **h. Foreign currencies** 

The trustees consider that the functional currency of the charity is the Euro, as most transactions are denominated and are carried out in that currency. 

Assets and liabilities denominated in other currencies are translated into Euros at the rate of exchange ruling at the balance sheet date. Transactions in other currencies are translated into Euros at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the net movement in funds in the Statement of Financial Activities. 

At the balance sheet date the rate of exchange between Sterling and Euro was £1 equals €1.1295 (2021: €1.1893). 

## **i. Financial instruments** 

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

Financial assets and financial liabilities are recognised when the Charity becomes a party to the contractual provisions of the instrument, and are offset only when the Charity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. 

## **j. Basic Financial assets** 

Trade and other debtors (including accrued income) which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. 

## **k. Basic Financial liabilities** 

Financial instruments are classified as liabilities according to the substance of the contractual arrangements entered into. 

Trade and other creditors (including accruals) payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled. 

## **l. Derecognition of financial liabilities** 

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

## 2 **.         CRITICAL ACCOUNTING ESTIMATES AND JUDGMENT** 

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

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

No critical accounting estimates and judgements have been made in preparing these financial statements. 

These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 12 



**PSI-K NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022** 

## 3. **INCOME** 

Donations received from research bodies attributable to overseas markets total 96% (2021: 97%).  All income received in 2022 (and 2021) was unrestricted. 

4. 

## **TOTAL EXPENDITURE** 

|**Charitable Activities**<br>Grants payable<br>Support costs<br>Prize giving awards and donations<br>Exchange losses / (gains)<br>Governance Costs (Note 5)|Grant<br>Funding of<br>Activities<br>€<br>5,860<br>-<br>-<br>-<br>-<br>5,860|Support<br>Costs<br>€<br> - <br>41,886<br>6,500<br>517<br>8,124<br>57,027|Total<br>2022<br>€<br> 5,860<br>41,886<br>6,500<br>517<br>8,124<br>62,887|Total<br>2021<br>€<br>8,077<br>38,223<br>2,000<br>(1,189)<br>7,112|
|---|---|---|---|---|
|||||54,223|



Total expenditure for the year was €62,887, all of which was unrestricted expenditure (2021: €54,223). 

The grant funding of activities totalling €5,860 (2021: €8,077) relates to payments made to institutions regarding scientific conferences. 

|Support costs comprise:<br>Bank charges<br>Donated services<br>Other support costs|2022<br>€<br>521<br>37,364<br> <br>4,001<br> <br>41,886<br> <br>|2021<br>€<br>621<br>37,364<br>238<br>38,223|
|---|---|---|



It is estimated that the charity benefited from approximately 636 (2021: 636) hours of donated time provided to assist with the running of the charity. This figure was made up of 477 (2021: 477) hours of donated time received as a contribution in kind from the CCP9 service level agreement, and 159 (2021: 159) hours from the Science and Technology Facilities Council. 

## 5. **GOVERNANCE COSTS** 

|Governance costs are made up of<br>the following:<br>Independent examiners fee<br>Accountancy<br>Corporation tax|Total<br>2022<br>€<br>3,863<br>4,261<br>-<br>8,124|Total<br>2021<br>€<br>3,926<br>2,048<br>1,138<br>7,112|
|---|---|---|



## 6. **STAFF COSTS** 

There were no employees in the year. No employees received employee benefits over €70,000. 

The Trustees were not paid any remuneration and so there is no remuneration paid to key management personnel. No expenses were incurred or reimbursed during the year (2021: Nil). 

These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 13 



**PSI-K NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022** 

## 7. **TAXATION** 

PSI-K is a registered charity and is therefore exempt from tax on its charitable income. 

|8.<br>**GRANTS MADE TO INSTITUTIONS**<br>€<br>Grants awarded in the year were all to institutions and<br>comprised:<br>CECAM, Lausanne<br>13,500<br>EPFL, Switzerland<br>-<br>Aarhus Institute of Advanced Studies (AIAS), Denmark<br>-<br>The Abdus Salam International Centre for Theoretical Physics, Italy<br>-<br>Aachen, Germany<br>-<br>Guidel, France<br>-<br>ICTP Trieste (Italy)<br>16,500<br>Daresbury Laboratory, UK<br>-<br>Stockholm University, Stockholm, Sweden<br>-<br>Leuven, Belgium<br>-<br>Bordeaux, France<br>-<br>Erice (Italy)<br>-<br>University of Warwick UK<br>-<br>Gran Sasso Science Institute, L’Aquila, Italy<br>-<br>Ekaterinburg, Russia<br>-<br>Benasque Center for Science (Benasque, Spain)<br>-<br>Castle Reisensburg near Gunzburg/Germany<br>-<br>Alto University, Helsinki, Finland<br>12,050<br>STFC Rutherford Appleton Laboratory, UK<br>4,000<br>Forschungszentrum Julich, Germany<br>2,500<br>Rome, Italy<br>3,750<br>Ecole Normale Superieure, Paris, France<br>6,000<br>CECAM-ISR, Tel Aviv University, Israel<br>4,000<br>Zaragoza, Spain<br>6,000<br>Berlin, Germany<br>20,000<br>Modena<br>4,500<br>Bangalore, India                                                                                   5,000<br>Orebro, Sweden<br>5,000<br>University of Pavia, Italy<br>5,000<br>Athens, Greece                                                                                     4,000<br>Albert-Ludwigs-Universitat Freiburg, Germany<br>3,600<br>London, UK                                                                                         3,000<br>National Graphene Institute, Manchester UK                                      3,000<br>Paphos, Cyprus                                                                                    5,000<br>Reingberg, Tegernsee, Germany                                                         5,000<br>Les Houches School of Physics, France                                              6,000<br>Total institutional grants<br>137,400<br>Reconciliation of grants payable<br>Grant commitments brought forward<br>Commitments made during the year<br>137,400<br>Physics by the lake additional 2018 grant<br>-<br>Grant commitments for the year<br>137,400<br>Grants cancelled, recovered or refunded<br>(131,540)<br>Grants payable for the year (note 4)<br>Grants paid during the year<br> <br>Grants to be refunded post year end transferred to other debtors (note 9)<br>Grants refunded in the year<br>Grant commitments carried forward|2022<br>€<br> <br> <br> <br> <br> <br> <br> <br> <br> <br> <br>154,034<br> <br> <br> <br>5,860<br>(98,904)<br>100,000<br>-<br>160,990|2021<br>€<br>€<br>4,000<br>3,600<br>4,310<br>10,000<br>3,000<br>4,500<br>5,000<br>4,860<br>9,000<br>12,000<br>3,600<br>4,000<br>3,600<br>8,400<br>7,875<br>12,000<br>3,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>102,745<br>177,516<br>102,745<br>1,000<br>103,745<br>(95,668)<br>8,077<br>(48,359)<br>12,800<br>4,000<br>154,034|2021<br>€<br>€<br>4,000<br>3,600<br>4,310<br>10,000<br>3,000<br>4,500<br>5,000<br>4,860<br>9,000<br>12,000<br>3,600<br>4,000<br>3,600<br>8,400<br>7,875<br>12,000<br>3,000<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>-<br>102,745<br>177,516<br>102,745<br>1,000<br>103,745<br>(95,668)<br>8,077<br>(48,359)<br>12,800<br>4,000<br>154,034|
|---|---|---|---|
||||154,034|



These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 14 



## **PSI-K NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022** 

|9.<br>**DEBTORS**<br>Trade debtors<br>Accrued income<br>Other debtors<br>10.<br>**CREDITORS**: Amounts falling due<br>within one year<br>Grant commitments<br>Accruals<br>Deferred income (note 11)<br>11.<br>**DEFERRED INCOME**<br>Deferred income as at 1 January<br>Received in year<br>Released in year<br>Deferred income as at 31 December|2022<br>€<br>40,583<br>10,000<br>100,000<br>150,583<br>2022<br>€<br>160,990<br>7,929<br>-<br>168,919<br>2022<br>€<br>7,000<br>-<br>(7,000)<br>-|2021<br>€<br>23,025<br>-<br>12,800<br>35,825<br>2021<br>€<br>154,034<br>7,279<br>7,000<br>168,313<br>2021<br>€<br>6,000<br>7,000<br>(6,000)<br>7,000|
|---|---|---|



Deferred income comprises contributions from research bodies received pre 31 December 2022 which have been invoiced in advance. 

## 12. **STATEMENT OF FUNDS** 

The movements on the funds of the charity were as follows: 

|**Unrestricted Funds**<br>General Fund<br>**Total Funds**|Balance<br>01.01.22<br>€<br>338,955<br>338,955<br>338,955|Income<br>€<br>138,863<br>138,863<br>138,863|Expenditure<br>€<br>(62,887)<br>(62,887)<br>(62,887)|Transfer<br>€<br>-<br>-<br>-|Balance<br>31.12.22<br>€<br>414,931<br>414,931<br>414,931|
|---|---|---|---|---|---|



These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 15 



## **PSI-K NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2022** 

## 12. **STATEMENT OF FUNDS (continued)** 

The movement on the funds of the charity in 2021 were as follows: 

|**Unrestricted Funds**<br>General Fund<br>**Total Funds**|Balance<br>01.01.21<br>€<br>185,557<br>185,557<br>185,557|Income<br>€<br>207,621<br>207,621<br>207,621|Expenditure<br>€<br>(54,223)<br>(54,223)<br>(54,223)|Transfer<br>€<br>-<br>-<br>-|Balance<br>31.12.21<br>€<br>338,955<br>338,955<br>338,955|
|---|---|---|---|---|---|



All funds for the year ended 31 December 2022 and year ended 31 December 2021 relate to unrestricted reserves. 

## 13. 

## **ANALYSIS OF NET ASSETS BETWEEN FUNDS** 

|Unrestricted<br>Funds<br>€<br>Fund balances at 31 December 2022 are<br>represented by:<br>Current assets<br>583,850<br>Creditors: Amounts falling due within one year<br>(168,919)<br>Total Net Assets                                                                       414,931<br>Unrestricted<br>Funds<br>€<br>Fund balances at 31 December 2021 are<br>represented by:<br>Current assets<br>507,268<br>Creditors: Amounts falling due within one year<br>(168,313)<br>Total Net Assets                                                                       338,955|Total<br>2022<br>€<br>583,850<br>(168,919)<br>414,931<br>Total<br>2021<br>€<br>507,268<br>(168,313)<br>338,955|
|---|---|



## 14. **GUARANTEE COMPANY AND LIABILITY OF MEMBERS** 

Psi-k is a company limited by guarantee and therefore does not have any share capital. 

The liability of members is limited. In the event of the charity being wound up during a member’s period of membership or within one year after ceasing to be a member, an amount not exceeding the sum of £1 may be required from that member towards the payment of the debts and liabilities of the company incurred before membership ceased and the costs of winding up. 

At 31 December 2022, the company had 10 (2021: 10) members. 

## 15. **RELATED PARTY** 

There are deemed to be no related parties of the entity which require reporting during the year. 

These unaudited financial statements have been subjected to independent examination.  See report on page 8. 

Page 16