OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2022-03-31-accounts

Annual Report and Financial Statements 31 March 2022

Registered Charity No: 1185329 Registered Company No: RC000905

Contents

Mission, vision and characteristics 4
Administrative details 5
Report of the Council (including Strategic Report)
Aims and objectives 6
Achievements in the year 2021/22 7
Looking ahead 11
Governance 12
Financial review 16
Statement of Trustees’ responsibilities 18
Independent auditor’s report to the trustees and members 19
of the Academy of Medical Sciences
Consolidated statement of fnancial activities 22
Balance sheets 23
Consolidated statement of cash fows 24
Notes to the fnancial statements 25

Mission, vision and characteristics

The Academy of Medical Sciences is an independent organisation that represents the spectrum of medical science – from basic research through clinical application to healthcare delivery. The Academy’s mission is to help create an open and progressive research sector to improve the health of people everywhere.

We are working to secure a future in which:

Administrative details

Name of charity

Principal address

(and Registered Office) 41 Portland Place London, W1B 1QH

The Academy of Medical Sciences

Registered charity no

1185329

Principal bankers

Registered company no RC000905

Lloyds Bank PLC 8-10 Waterloo Place London, SW1Y 4BE

Auditors

PKF Littlejohn LLP 15 Westferry Circus Canary Wharf London, E14 4HD

Investment fund manager

Sarasin & Partners LLP Juxon House 100 St Paul’s Churchyard London, EC4M 8BU

Our strengths

We are the independent, expert voice of biomedical and health research in the UK. Our strengths are:

Our values

Our elected Fellows are central to our success. It is their unique diversity of talent, collective experience and professionalism that enables the Academy to address complex issues of science and healthcare with expertise and authority. In this way, the Fellowship is a national, public resource of independent and expert advice on medical science and healthcare.

Honorary Officers of the Academy of Medical Sciences

President

Professor Dame Anne Johnson PMedSci Professor of Infectious Disease Epidemiology, University College London

Vice-President (clinical)

Professor Paul Stewart FMedSci Dean of Medicine and Faculty Dean Medicine and Health, University of Leeds

Vice-President (non-clinical)

Professor Michael Malim FRS FMedSci Head, School of Immunology & Microbial Sciences, King’s College London

Vice-President (international)

Professor Tom Solomon CBE FMedSci (from 7 December 2021) Professor of Neurology and Director, NIHR Health Protection Research Unit in Emerging and Zoomotic Infections, University of Liverpool

Professor Frances Brodsky FMedSci (until 7 December 2021) Professor of Cell Biology, University College London

Treasurer

Professor Edward Bullmore FMedSci Professor of Psychiatry, University of Cambridge

Registrar

Professor Dame Jessica Corner FMedSci (from 1 July 2021) Professor of Cancer & Supportive Care and Pro-Vice-Chancellor (Research and Knowledge Exchange) at the University of Nottingham

Ordinary Members of Council

Professor Wiebke Arlt FMedSci Appointed 7 December 2021 Professor Dame Anna Dominiczak FRSE FMedSci Until 7 December 2021 Professor Sadaf Farooqi FMedSci Appointed 7 December 2021 Professor Michael Hanna FMedSci Professor David Lomas FMedSci Until 7 December 2021 Professor Margaret (Mandy) MacLean MBE FRSE FMedSci Professor Patrick Maxwell FMedSci Until 7 December 2021 Professor Neena Modi FMedSci Professor Sir Andrew Pollard FMedSci Appointed 7 December 2021 Professor Eleanor Riley FRSE FMedSci Professor David Webb FMedSci Professor Paula Williamson FMedSci Appointed 7 December 2021

Co-opted members

Dr Peter Bannister Until 7 December 2021 Dr Rebecca Drummond Appointed 7 December 2021 Dr Rina Dutti Appointed 7 December 2021 Dr Rabinder Prinjha FMedSci Re-appointed 7 December 2021 Professor Charlotte Summers Until 7 December 2021 Professor Dame Margaret Whitehead FMedSci Re-appointed 7 December 2021

Principal Employed Officers

Executive Director

Mr Simon Denegri, OBE

Director of Biomedical Grants and Careers Policy Dr Suzanne Candy

Director of Communications

Mr Nick Hillier

Director of Medical Science Policy

Philippa Professor Philippa Saunders FRSE FMedSci (until 1 July 2021) Professor of Reproductive Steroids, University of Edinburgh

Dr Rachel Quinn

Director of Finance and Resources

Mr Aled Bath

4

5

Aims and objectives

Our mission is to advance biomedical and health research and its translation into benefits for society.

Our four key objectives are:

1. Promoting excellence

2. Developing talented researchers

3. Influencing research and policy

4. Engaging patients, the public and professionals

Income and expenditure under the four key objectives for the financial year to 31 March 2022 are shown in the Consolidated Statement of Financial Activities at page 22.

Achievements in the year 2021/22

The following identifies key achievements in the year. Following 2020/21, where responding to the COVID-19 pandemic was our main priority and impacted the delivery of much of our work, during 2021/22 the Academy was able to re-start affected activities and focus on a broader set of priorities, whilst continuing to support the COVID-19 recovery.

Promoting excellence

Developing talented researchers

• The second cohort of the Future Leaders in Innovation, Enterprise and Research (FLIER) programme completed in December 2021 culminating in a virtual celebration event, which also provided opportunities for them to connect with leaders from across life sciences and receive support from AMS staff. This was an opportunity for the FLIER participants to share their leadership journey and cross-sector projects with Academy Fellows, key leaders and supporters of the programme. Participants who were based in academia reported significant success in attracting grant funding from a wide range of sources. Five participants reported securing grant income totalling £35m since joining the programme, 51% of which was secured by FLIER participants as Principal Investigators. We have received a high number of applications for FLIER cohort 3, which will be launched at the end of June 2022. The programme is funded from the BEIS Talent Fund and the Dennis and Mireille Gillings Foundation.

6

7

Influencing research and policy

We also hosted our prestigious FORUM Annual Lecture on Celebrating the UK’s scientific contributions to tackling the pandemic, which convened over 160 participants from across the life sciences sectors for a hybrid event. Despite the difficult economic situation, the vast majority of FORUM members have renewed their membership and two new members have joined. This is testament to the value that partners across the sector place in our FORUM programme of work.

8

9

Looking ahead

Engaging patients, the public and professionals

• We have invested in our conferencing capability so that we can now deliver all our meetings and events in a hybrid format. During 21/22 we converted all our meeting rooms to support video conferencing, which has led to a significant increase in engagement with Fellows and partners. This has resulted in multiple benefits including lowering the cost of our national and international events, reducing the environmental impact, and significantly increasing participation, engagement and inclusivity. Through these investments we have been able to carry out a full programme of events including our International policy workshops that otherwise would have been cancelled as a result of the pandemic. In addition, we have invested in a mobile hybrid meeting solution that will enable us to conduct hybrid meetings nationally and will support our increased regional engagement programme. This development has enabled us to create a full regional engagement programme which includes regional meetings of the Council and Fellows and closer working with regional partners and devolved administrations.

2021/22 was the final year of the Academy’s 2016-2021 Strategic Plan. The new strategy titled ‘Making medical science work for everyone’ will focus on our vision to achieve good health for all supported by the best research and evidence. The new strategy will be launched in summer 2022 and will focus on:

Diversity

A critical over-arching theme for our work in the year ahead this year is on how we can make greater progress in enhancing diversity. In all that we do we will endeavour to promote greater diversity across our Fellowship, community of Early Career Researchers, those who inform our policy work, those we provide a platform to, and among our staff and in our operations.

We recognise that our priority must be to continually examine our projects and processes to ensure equality and equity and in 2022/23 we will launch a longer-term EDI strategy.

Strategic priorities 2022 -2032

The strategic priorities that will be published in the new strategy are summarised below.

We will influence policy and practice to improve the lives of patients, public and communities by:

We will support UK biomedical and health research to strengthen its global competitiveness and reputation by:

We will support the next generation of researchers to reach their full potential by:

We will work with our partners to increase the Academy’s impact on global health by:

We will build our resources to ensure our longterm independence and effectiveness by:

10

11

Governance

Structure, governance and management

Royal Charter

Governance

The Academy of Medical Sciences has operated as a registered charity and company limited by guarantee since its incorporation in 1998. It was granted a Royal Charter in June 2019 and on 26 June 2019 Fellows approved in principle the transfer of all the assets and liabilities from the charitable company to the new Royal Charter body. The Academy’s Royal Charter was sealed on 3 September 2019, from which date the new Academy of Medical Sciences Royal Charter body came into being, with Companies House reference RC000905. The Charity Commission entered the new entity onto the Register of Charities on 16 September 2019 with registered charity number 1185329. The assets and liabilities of the Academy as a charitable company were transferred to the new Royal Charter body on 30 November 2019 and from 1 December 2019 all activities previously operated by the charitable company have been managed by the Royal Charter body.

The Academy is governed by a Council of 15 Fellows, which meets five times per year. Members of Council are elected from the Fellowship, with nominees confirmed by a ballot of the Fellowship. Council may co-opt up to 5 additional Fellows to provide a balance of expertise. Fellows elected to Council are amongst the UK’s leading medical scientists and hold senior positions in medical schools, universities, research institutes, industry and the civil service; they are well qualified to provide the Academy with the necessary guidance and leadership to achieve its objectives. Fellows elected to Council hold office for three years before retiring at the Annual General Meeting in December. This year Council also co-opted 2 Emerging Research Leader representatives to reflect the importance of this community to the Academy’s work and influence.

The Council includes six Honorary Officers: President, VicePresident (Clinical), Vice-President (Non-clinical), Vice-President (International), Treasurer and Registrar. The Honorary Officers are elected by Council from nominations received from the Fellowship; they hold office for four or five years, with one (or two) of the six retiring each year.

The Charter body is the sole corporate member of the Academy charitable company effectively establishing the latter as a subsidiary of the Academy Charter body. The previous charitable company was dissolved on 11 May 2021.

The Honorary Officers and Council set the strategic direction of the Academy and oversee the work of the secretariat. Academy activities are selected by Council for the contribution they make towards the Academy’s strategic goals, and are informed by the independent opinion, experience and expertise of the Fellowship. Council is advised by a small number of committees, including the group of Honorary Officers, who meet six times per year. The Finance Committee, chaired by the Treasurer, meets three times a year and is responsible for overseeing all financial aspects of the Academy’s activities on behalf of Council, including liaison with auditors, investment managers and other advisers. A Nominations Committee advises Council on the election of Honorary Officers, Honorary Fellows, Council members and other appointments.

Fellowship

The Academy is one of the five National Academies of the UK and at 31 March 2022 had 1,353 Fellows, who are members of the company. The Academy elects Fellows on the basis of sustained and outstanding contributions to the breadth of medical research, including biomedical, clinical and population sciences, as well as veterinary medicine, dentistry, nursing, medical law, health economics and bioethics. Fellows of the Academy are elected for life and designate themselves with the suffix ‘FMedSci’. New Fellows are admitted to the Academy at a ceremony in June. 50 new Fellows were elected in 2021 from a pool of 384 candidates through a rigorous process of peer review, scrutiny from eight Sectional Committees and final election by Council in April.

Trustee selection, induction and training

One third of Council stand down in December of each year, and new members are elected via a ballot of the Fellowship in October each year. Only Fellows of the Academy may stand for Council, and candidates require nomination by three Fellows. Between one third and one half of the Fellowship votes in the Council ballot, which is conducted electronically by an independent electoral services provider and the results announced to the Fellowship shortly after. New members attend their first Council meeting in February. They are inducted at a dedicated session following the Council meeting and are provided with information relating to their responsibilities as trustees of the charity. This includes a presentation from the Academy’s legal advisers, along with financial information, strategic and annual objectives, and an overview of current activities.

Management and staffing

Day-to-day management of the Academy is delegated to the Executive Director who is supported by a Senior Leadership Team of four Directors responsible for Finance and Resources, Grants and Careers, Medical Science Policy and Communications. At 31 March 2022 the Executive Director lead a permanent staff of 48, with 19 fixed-term posts to support teams with particular needs for additional resource.

Policy for setting remuneration for senior management

The Academy operates a Pay and Reward Policy for all staff that encompasses salary, employee benefits, training and development, job content and promoting work/life balance. Salaries are set within a broad pay band structure at each grade, with minimum and maximum salary levels informed by independent salary benchmarking carried out by a specialist company. Salary progression is based on performance, as monitored during the year and assessed annually against objectives and competencies agreed between the line manager and staff member. The performance of the Senior Leadership Team is monitored via regular one-to-one meetings with the Executive Director (and the Executive Director with the President), assessment against objectives and an annual review process, which is discussed at the annual appraisals. The salary budget for the year ahead including that for the Executive Director, is approved by the Finance Committee at its February meeting. During 2021/22 the Academy completed a review of staff pay and reward and implemented a new set of pay grades and bands.

Volunteers

The Academy is grateful for the valuable contribution to its work that is made voluntarily by both Fellows and non-Fellows. Fellows serve the Academy without compensation in a range of activities: as Honorary Officers (who typically contribute between two and six days a month to Academy business), Council members and committee members, as members of working groups, as speakers and participants in symposia, as providers of evidence for Academy studies, as peer reviewers for grant applications, as mentors to early career researchers, and in many more ways. Fellows also act as Academy representatives on many external bodies.

12

13

Risk management

The Finance Committee advises Council on the risks to which the Academy is exposed. It does this by regularly reviewing all elements of Academy business to ensure that potential risks are identified, and processes implemented to mitigate those risks. The senior management team discusses business risks quarterly and updates the risk register for Finance Committee to review.

The key strategic risk of the Academy continues to be the risk to its reputation; this is managed in a number of ways, including by ensuring that all the Academy’s activities are directed and prioritised as a result of its strategic plan, and not as a result of an individual funder, in order to safeguard its independence. All Academy reports are scrutinised by review groups of Fellows and approved by Council to provide quality assurance. Grant schemes and programmatic activities are monitored and evaluated by staff, panels, Officers and Council to ensure that they are robust, and the quality of research being supported is of a satisfactory quality.

The other key strategic risks relate to:

Public benefit

Council has discussed the implications of the provisions of the Charities Act 2011, which states that all charities must demonstrate that they are established for public benefit and have had due regard to the public benefit guidance issued by the Charity Commission. Council is confident that activities planned under the four key objectives fulfil the Academy’s mission to ensure that advances in medical science are translated into healthcare benefits to the public.

Grants

The Academy’s targeted research funding schemes are offered to a range of aspiring medical researchers. Each of the schemes operate specific eligibility and funding criteria, but all schemes are aimed at supporting those who demonstrate significant potential. The schemes are widely publicised, and a robust selection process is operated; final appointments are made by an expert panel, which may draw on peer reviews by Academy Fellows. Grant holders are required to submit progress reports, which are reviewed by experts in the field.

Subsidiary and related parties

The Academy has a wholly owned subsidiary company, Academy of Medical Sciences Trading Limited, which was incorporated in England and Wales on 25 February 2010 with registered number 07170258. The shareholding of £1,000 in £1 shares is held by the Academy Royal Charter body. A loan of £100,000 secured by a debenture is also held by the Academy Royal Charter Body. The Directors of the trading subsidiary are the Treasurer, the Executive Director of the Academy, the Academy’s Director of Communications and one independent Director. The Finance Committee routinely considers whether the trading company continues to represent a good investment for the Academy at its June meeting.

On 3 December 2019, the Royal Charter body was made the sole corporate member of the Academy charitable company, registered number 03520281, and the company was a subsidiary until 11 May 2021 when it was dissolved. Trading and activity ceased in the charitable company with effect from 1 December 2019.

Relationships with other charities and organisations

The Academy has close connections with a number of organisations with which we co-operate to deliver our charitable objectives, and who generously support our work. Over the course of 2021/22 this included (but was not limited to): UK government Department for Business, Energy & Industrial Strategy (BEIS), Department of Health and Social Care, and the National Institute for Health and Care Research, the Wellcome Trust, Medical Research Council, the Dennis & Mireille Gillings Foundation, Association of Physicians of Great Britain and Ireland, British Heart Foundation, Versus Arthritis, the Health Foundation, Public Health England, the Foulkes Foundation, the Yusuf and Farida Hamied Foundation, the Jean Shanks Foundation, the Lord Leonard and Lady Estelle Wolfson Foundation, Diabetes UK, the Lancet, the Royal Society, the British Academy, Royal Academy of Engineering, along with all the members of the Academy’s FORUM and donors to the Daniel Turnberg Memorial Fund.

The Academy gratefully acknowledges the generosity of the many trusts, companies, Fellows and individuals who have supported our work through pledges, contributions and donations over the last year, including those that are part of the Academy’s FORUM and Helix Group.

14

15

Financial review

The Consolidated Statement of Financial Activities (SOFA) and Balance Sheet, together with the Notes to the Accounts set out on pages 25-39, show the overall financial performance of the Academy group and provide an analysis of the incoming resources and how they were applied in the performance of the Academy’s objectives.

Results for the year

Expenditure

Total expenditure was £14.2 million, a decrease of £0.7 million on the prior year, the majority of which arose under developing talented researchers due to fewer grant awards. Expenditure on engaging public, patients & professionals increased as a result of more activity resuming after a period impacted by COVID-19. Expenditure on influencing research & policy decreased in the year as other activities began to resume following the increased focus on COVID-19 in 2020/21.

The results for the financial year to 31 March 2022 are being reported against the background of the health and economic challenges posed by the global COVID-19 pandemic. During the financial year to 31 March 2022, activity began returning to normal and the finishing position at 31 March 2022 provides a more robust starting point for 2022/23. The Academy’s core funds increased by £1.4 million with a General Fund balance at 31 March 2022 of £2.9 million, and the total of unrestricted funds was £6.8 million representing 43% of the total funds of £15.9 million.

Support costs decreased by 39% to £1.3 million, due principally to an increase in staff working directly on programmes and vacancies during the year.

Increases in activity and programmes following the previous year that was significantly disrupted by COVID-19, resulted in income increasing in 2021/22 by 20.8% to £17.7 million. The overall reduction in expenditure of 4.5% to £14.2 million reflected the timing of expenditure and challenges recruiting staff to fill vacant positions.

Cash and investment management

Investments were valued at £3,655,890 at 31 March 2022 with a £38,994 decrease in market value. The investments were held in the Sarasin Endowments and the Sarasin Income and Reserves Fund, in proportions agreed with the investment managers to fulfil the investment objectives of the four individual portfolios. The Finance Committee confirmed that those objectives were being achieved at their meeting in February 2022.

Funding sources

Total incoming resources for 2021/22 were £17.7 million of which £16.1 million was received from charitable activities, all of which was provided to support specific projects and included as part of restricted income. Restricted income increased by £2.9 million from the previous year, which was principally because of new funding and the timing of programmes and events, many of which have been impacted by the pandemic.

The Academy’s portfolios at Sarasin performed satisfactorily in the calendar year 2021/22 against the background of challenging economic conditions and financial markets.

Several of the Academy’s grant schemes have been funded by consortia of funders that have, in recent years, included the Department of Business and Industrial Strategy (BEIS). In 2021/22 BEIS provided a total of £7.8 million to those schemes, and a further £3.2 million to career programmes, international and UK policy activities. Along with the Department of Health and Social Care and the National Institute for Health and Care Research, the total of government funding for activities in 2021/22 was £11.5 million.

The terms of the Academy’s grant schemes require that substantial cash deposits are received from funders in advance of award rounds and at 31 March 2022 cash on deposit was £8.1 million. The cash management policy, which is reviewed regularly by the Finance Committee, recommends the diversification of deposits with the use of pooled cash deposit funds and the placing of cash on term deposit with selected banks.

Reserves

The Academy’s reserves at 31 March 2022 were £15.86 million an increase of £3.5 million from 31 March 2021. The reserves were made up as follows:

£
Permanent Endowment 1,990,237
Restricted Funds 6,809,186
Unrestricted Funds
Designated Funds 4,121,152
General Fund 2,943,742
Total Funds at 31 March 2022 15,855,317

The Finance Committee reviews the level of reserves regularly to ensure that they are appropriate for the purposes for which they are retained. These purposes are set out in Note 13 to the Accounts on pages 44 and 45.

There was no expenditure on the Designated Development Fund in the year.

Reserves policy

The Finance Committee regularly reviews the level of reserves retained in the General Fund with reference to the income sources and assets of the Academy. At its meeting on 15 June 2022 the Finance Committee approved an uplift to the target level of reserves, in terms of General Fund resources, to a range of £2.0 million to £3.0 million due to the increased costs of the Academy’s operational platform. This level of reserve would allow the Academy to restructure activities to a level that would be appropriate for a reduced amount of General Fund income, in the event of a significant shortfall in core funding. At 31 March 2022 the General Fund was £2.9 million and within the target range.

Unrestricted income for the year was £1.4 million of which £572,979 was generated by the trading subsidiary. This was an increase of 1816% from 2020/21, as a result of COVID-19 restrictions easing. The trading company provided 42% of General Fund income for the year compared with 2% in 2020/21.

16

17

Statement of Trustees’ responsibilities

The Council of trustees (who are also directors of the Academy for Medical Sciences for the purposes of company law) are responsible for preparing the Report of the Council (including the Strategic 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 Group and parent charitable company and of the incoming resources and application of resources, including the income and expenditure of the Group and parent charitable company for that period. In preparing these financial statements the trustees are required to:

The trustees are responsible for keeping adequate 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 for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the Council on 23 June 2022 and signed on its behalf by:

Professor Dame Anne Johnson PMedSci President

Independent auditor’s report to the trustees and members of the Academy of Medical Sciences

We have audited the financial statements of the Academy of Medical Sciences (the ‘parent charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Charitable Company Balance Sheets, the Consolidated and Parent Charitable Company Cash Flow Statements and notes to the financial statements, including 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).

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 group’s or parent 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.

Other information

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

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 group and parent 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.

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:

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.

18

19

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the Report of the Council.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the group and parent charitable company 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 group and parent charitable company financial statements, the trustees are responsible for assessing the group and parent 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 group or the parent 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

We have been appointed auditor under the Companies Act 2006 and report in accordance with this Act and relevant regulations made or having effect thereunder.

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

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

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone, other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or noncompliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/ auditorsresponsibilities . This description forms part of our auditor’s report.

20

21

Consolidated statement of financial activities

for the year ended 31 March 2022

Balance sheets

as at 31 March 2022

(Incorporating an income and expenditure account)

----- Start of picture text -----
Other Permanent
General Unrestricted Restricted Endowment Total Total
Fund Funds Funds Funds 2022 2021
Note £ £ £ £ £ £
Income from:
Donations 610,364 - 194,037 - 804,401 1,123,805
Charitable activities - - 16,062,554 - 16,062,554 13,269,179
Trading activities 725,090 - - - 725,090 148,096
Investments 19,102 22,549 17,465 50,461 109,577 125,883
Total income 3 1,354,556 22,549 16,274,056 50,461 17,701,622 14,666,963
Expenditure On:
Raising funds
Cost of Generating Funds 96,517 113 618 - 97,248 238,413
Trading operations 323,765 - - - 323,765 63,707
420,282 113 618 - 421,013 302,120
Charitable activities
Promoting excellence 2,124 1,469 601,762 - 605,355 -
Developing talented researchers 973,946 66,898 10,908,139 (423) 11,948,560 12,708,203
Influencing research & policy 26,191 1,289 661,098 - 688,578 1,865,066
Engaging Public, Patients & Professionals 23,964 1,652 497,895 - 523,511 -
1,026,225 71,308 12,668,894 (423) 13,766,004 14,573,269
Expenditure 4 1,446,507 71,421 12,669,512 (423) 14,187,017 14,875,389
Net income before investment gains/(losses) (91,951) (48,872) 3,604,544 50,884 3,514,605 (208,426)
Gains / (losses) on investments 9 (22,282) (8,878) (4,294) (4,416) (39,870) 446,268
Transfers between funds 14 1,506,046 300,000 (1,806,046) - - -
Net movement in funds 1,391,813 242,250 1,794,204 46,468 3,474,735 237,842
Funds 01 Apr 21 1,542,929 3,878,902 5,014,982 1,943,769 12,380,582 12,142,740
Funds 31 Mar 22 13 2,934,742 4,121,152 6,809,186 1,990,237 15,855,317 12,380,582
----- End of picture text -----

All amounts relate to continuing operations.

There are no recognised gains or losses other than those in the statement of financial activities. The notes on pages 25-39 form part of these financial statements.

----- Start of picture text -----
Group Charity Group Charity
2022 2022 2021 2021
Note £ £ £ £
Fixed assets
Tangible fixed assets 8 3,796,253 3,796,253 4,000,495 4,000,495
Investment property 9b 1,200,000 1,200,000 1,200,000 1,200,000
Investmens 9a 3,655,890 3,656,890 3,694,884 3,695,884
8,652,143 8,653,143 8,895,379 8,896,379
Current assets
Debtors 10 2,982,054 3,028,133 1,934,442 2,051,668
Stock 7,060 - 3,424 -
Cash on deposit 8,090,223 8,090,223 8,217,747 8,217,747
Cash at bank and in hand 761,738 381,963 531,809 339,949
11,841,075 11,500,319 10,687,422 10,609,364
Current liabilities
Creditors: amounts falling due within one year 11 (4,637,901) (4,510,822) (7,202,219) (7,126,055)
Net current assets 7,203,174 6,989,497 3,485,203 3,483,309
- - - -
Creditors: amounts falling due after more than one year
Net assets 15,855,317 15,642,640 12,380,582 12,379,688
Represented by: 13
Permanent endowment funds 1,990,237 1,990,237 1,943,769 1,943,769
Restricted funds 6,809,186 6,809,186 5,014,982 5,014,982
Unrestricted funds:
General fund 2,934,742 2,722,065 1,542,929 1,542,035
Designated funds 4,121,152 4,121,152 3,878,902 3,878,902
Total funds 15,855,317 15,642,640 12,380,582 12,379,688
----- End of picture text -----

Approved by the Council and authorised for issue on 23 June 2022, and signed on its behalf by:

President

Treasurer

Professor Dame Anne Johnson PMedSci

Professor Ed Bullmore FMedSci

The notes on pages 25-39 form part of these financial statements.

22

23

Consolidated statement of cash flows

for the year ended 31 March 2022

----- Start of picture text -----
Group Charity Group Charity
2022 2022 2021 2021
£ £ £ £
Note
Cash from operating activities 27,288 (160,627) 1,165,062 1,180,995
(a)
Cash used in investing activities
Interest from investments 109,577 109,577 125,883 125,883
Purchase of fixed assets (33,584) (33,584) (12,543) (12,543)
- - - -
Proceeds from sale of fixed assets
Proceeds from sale of investments - - - -
Purchase of investments (876) (876) 26,180 26,180
75,117 75,117 139,520 139,520
Cash used in financing activities
Repayment of borrowings - - - -
(Decrease)/Increase in cash in the year 102,405 (85,510) 1,304,582 1,320,516
Cash at the beginning of the year 8,749,556 8,557,696 7,444,975 7,237,181
Cash at the end of the year 8,851,961 8,472,186 8,749,557 8,557,696
Note (a)
Net movement in funds per the statement
of financial activities 3,474,735 3,262,952 237,842 294,258
Depreciation charges 223,571 223,571 257,144 257,144
Loss on sale of fixed assets 14,255 14,255 6,162 6,162
Losses/(gains) on investments 39,870 39,870 (446,268) (446,268)
Dividends & Interest from Investments (109,577) (109,577) (125,883) (125,883)
(Increase)/decrease in Cash in investment Portfolio - - 1 1
Decrease/(increase) in stock (3,636) - 2,025 -
Decrease/(increase) in debtors (1,047,612) (976,465) 691,584 636,944
Increase in creditors (2,564,318) (2,615,233) 542,455 558,637
Net cash provided by operating activities 27,288 (160,627) 1,165,062 1,180,995
----- End of picture text -----

Notes to the financial statements

Donated services are recognised when the benefit to the charity is reasonably quantifiable and measurable. The value placed on these services is the estimated value to the charity of the service received. The value is included in incoming resources and a corresponding amount is shown as expenditure under the relevant charitable activity.

1. Accounting policies

The principal accounting policies applied in the preparation of the financial statements are described below.

a. Basis of preparation of accounts

d. Expenditure

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard for the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP) and the Companies Act 2006.

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, 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 and has been listed under headings that aggregate all the costs related to that activity.

b. Group financial statements

Support costs - where costs cannot be directly attributed, they have been allocated to activities on the basis of the average amount of staff time spent on each activity, except where the terms of restricted funding specifies a particular overhead recovery. Included in support costs are governance costs which are incurred in connection with the administration of the charity and compliance with constitutional and statutory requirements. The costs of Council meetings and the Annual General Meeting, together with related Fellows’ travel costs, are included.

The financial statements include transactions, assets and liabilities of Academy of Medical Sciences Trading Limited, a wholly owned subsidiary company of the Academy of Medical Sciences on a line-by-line basis. Transactions and balances between the Academy and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the Academy’s balance sheet. The subsidiary’s accounts are produced separately as required by the Companies Act 2006 and are summarised at Note 2. No separate Statement of Financial Activities has been presented for the charity alone, as permitted by section 408 of the Companies Act 2006.

Raising funds includes fundraising costs expended in seeking new sources of funding for the Academy; the costs of conferencing and office rentals in the trading company; and expenditure on property to be used to generate income.

c. Income

Grants payable – Clinician Scientist Fellowships, Starter Grants for Clinical Lecturers, Springboard Grants for Biomedical Researchers, Global Challenges Research Fund Networking and Newton Fellowships are charged in the year when the conditions for each award are fulfilled. Grants awarded under the Daniel Turnberg Memorial Fund are treated as payable only when funding is in place.

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

Donations are included in full in the statement of financial activities when receivable.

Trading activities – trading income is recognised when services are delivered and is net of VAT.

e. Tangible fixed assets

Tangible fixed assets are included at cost except for the leasehold premises, which are held at deemed cost (see accounting policy g), and antiques, which are shown at their insurance value. Because of the long-term nature of the antiques, the Academy does not consider it appropriate to charge annual depreciation.

Investment income is recognised on a receivable basis.

Grants are credited to the statement of financial activities when received or receivable, whichever is earlier. Where entitlement to grants receivable is dependent upon fulfilment of conditions within the Academy’s control, the incoming resources are recognised when there is sufficient evidence that conditions will be met. Where there is uncertainty as to whether the Academy can meet such conditions, the incoming resource is deferred. Where amounts are received which relate specifically for use in a future period, they are deferred and recognised in the accounting period to which they relate, where entitlement arises.

The Academy only capitalises individual items of fixed assets costing more than £2,000 and included on the balance sheet. Depreciation is provided on a straight-line basis on tangible fixed assets to write them off over their anticipated useful economic lives at the following annual rates:

Furniture, fixtures, and office equipment 10%

Computer and audio-visual equipment 25%

Computer software 25%

Leasehold premises and refurbishment in equal instalments over the remaining term of the original lease

24

25

f. Investments

Investments are included at market value at the year end. However, the investment in the trading company in the charity only balance sheet is at cost. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year.

g. Mixed used property

As a result of the change in FRS 102 referred to policy 1e, the Academy analysed its use of 41 Portland Place/8 Weymouth Mews to be able to identify any separate element that needed to be accounted for as an investment property. The Academy generates rental income from 41 Portland Place from surplus space it does not use itself. For the space in 41 Portland Place which is leased to Academy of Medical Sciences Trading Limited, the accounting policy choice permitted under SORP paragraph 10.48A has been applied whereby property leased to other entities in the group can be accounted for as operational fixed assets.

The property is also used by third parties for meeting room hire. Due to the nature of this use of the property by third parties, a reliable valuation cannot be reasonably obtained. In addition, the areas of the property which are used by third parties cannot be sold separately (or leased out separately under a finance lease) as this would render them unusable by AMS.

Therefore, in line with SORP section 10.47 the entire property at 41 Portland Place is accounted for as property within tangible fixed assets and held at historic cost less depreciation.

h. Funds

Unrestricted funds comprise a General Fund, held for the general objects of the Academy’s work, and several Designated Funds which have been earmarked by the Council for specific purposes; a Business Fund to support the trading subsidiary, an Asset Fund for the leasehold premises at 41 Portland Place, a Building Repair Fund to provide for the future maintenance of the property and a Development Fund to hold significant unrestricted donations. Restricted funds are funds used for specific purposes as required by the donor. Permanent endowment funds are restricted funds that the donor has stated are to be held as capital.

i. Pension policy

The Academy operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Academy in an independently administered scheme. The pension cost charge represents contributions payable under the scheme by the charity to the fund. The charity has no liability under the scheme other than for the payment of those contributions.

j. VAT

The Academy is registered for VAT and, because of a significant part of its activities being exempt or outside the scope of VAT, is not able to recover all the purchase VAT relating to those activities. An amount of irrecoverable VAT of £181,009 (2021: £138,711) has been included in resources expended and allocated to the relevant cost headings on the basis described at (d) above.

k. Critical accounting estimates and areas of judgement

In preparing financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. The estimates and underlying assumptions are based on historical experience and other factors that are relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis.

The Academy has included 8 Weymouth Mews in the financial statements at fair market value as determined by external valuers.

l. Going concern

The financial impact of COVID-19 has been monitored by the executive and trustees since March 2020 with the review of budget and cashflow forecasts for both the charity and the trading subsidiary. At its meeting of 23 June 2022, the Academy’s Council reviewed the forecasts and agreed that the level of unrestricted reserves held by the Academy was sufficient to be able to manage the uncertainties caused by the COVID-19 crisis, and approved the continued investment in the trading company following a period of unprecedented trading conditions. The period that has been considered in assessing the going concern is greater than 12 months from the date of approval of these financial statements.

The principal accounting policies, as set out above, have all been applied consistently throughout the year and the preceding year.

2. Results of the subsidiary company

The charity has one wholly owned subsidiary company, Academy of Medical Sciences Trading Limited, which was incorporated in England and Wales on 25 February 2010 with registered number 07170258. The details of the investment are given at note 17. A summary of the results for the year and the balance sheet at 31 March 2022 are shown below.

----- Start of picture text -----
2022 2021
£ £
Turnover 572,979 29,903
Costs of sales (307,430) (75,327)
Gross profit 265,549 (45,424)
Administrative expenses (50,144) (21,428)
Operating profit for the year (215,405) (66,852)
Interest receivable - -
Interest payable (3,500) (3,500)
- -
Donation to the charity
Profit/(Loss) for the year 211,905 (70,352)
Tax write-back/(tax) on profit on ordinary activities (181) 13,548
Profit/(Loss) on ordinary activities after taxation 211,724 (56,804)
Balance sheet
Current assets 477,419 198,056
Current liabilities (163,742) (96,103)
Net current assets 313,677 101,953
Loan from the charity (100,000) (100,000)
Net assets 213,677 1,953
Share capital and reserves
Share capital 1,000 1,000
Profit & loss account 212,677 953
Shareholders’ funds 213,677 1,953
----- End of picture text -----

On consolidation these results have been adjusted to eliminate income from meeting room hire to the Academy and the management fee payable to the Academy. The balance is included as income £559,253 and expenditure £323,765 at Notes 3 and 4: Trading subsidiary income and expenditure.

The parent charity’s income and the results for the year are disclosed as follows:

----- Start of picture text -----
2022 2021
£ £
Income 17,142,367 14,663,793
Net movement in funds for the year 3,262,952 (152,010)
----- End of picture text -----

26

27

3. Income from:

----- Start of picture text -----
General Designated Restricted Endowed Total Total
Fund Funds Funds Funds 2022 2021
£ £ £ £ £ £
Donations
Fellows’ subscriptions and contributions 398,472 - - - 398,472 371,922
Department of Health and Social Care - - - - - 478,000
Other donations 211,892 - 115,640 - 327,532 209,740
Donated services - - 78,397 - 78,397 64,143
610,364 - 194,037 - 804,401 1,123,805
Charitable activities
Promoting excellence - - 819,113 - 819,113 -
Developing talented researchers - - 13,386,400 - 13,386,400 12,157,294
Influencing research & policy - - 1,061,916 - 1,061,916 1,111,885
Engaging patients, the public & professionals - - 795,125 - 795,125 -
- - 16,062,554 - 16,062,554 13,269,179
Trading activities
Trading subsidiary income 559,253 - - - 559,253 26,171
Other rental income 165,837 - - - 165,837 121,925
725,090 - - - 725,090 148,096
Investments
Income on investments 15,451 22,549 17,465 50,461 105,926 120,068
Short term deposits 3,651 - - - 3,651 5,815
19,102 22,549 17,465 50,461 109,577 125,883
Total Income 1,354,556 22,549 16,274,056 50,461 17,701,622 14,666,963
----- End of picture text -----

4. Expenditure on:

----- Start of picture text -----
Direct Grant Support Total Total
Costs Funding Costs 2022 2021
£ £ £ £ £
Raising Funds
Fundraising costs 95,248 - 2,000 97,248 238,413
Trading subsidiary expenditure 323,765 - - 323,765 63,707
419,013 - 2,000 421,013 302,120
Charitable activities
Promoting excellence 579,365 - 25,990 605,355 -
Developing talented researchers 1,674,825 9,090,001 1,183,734 11,948,560 12,708,203
Influencing research & policy 665,774 - 22,804 688,578 1,865,066
Engaging patients, the public & professionals 494,279 - 29,232 523,511 -
3,414,243 9,090,001 1,261,760 13,766,004 14,573,269
Total expenditure 3,833,256 9,090,001 1,263,760 14,187,017 14,875,389
----- End of picture text -----

Total expenditure in the year to 31 March 2022 was £14,187,017 (2021: £14,875,389) comprising expenditure under General Funds; £1,446,507 (2021: £1,039,998) Designated Funds; £71,421 (2021: £392,761), Restricted Funds; £12,669,512 (2021: £13,430,080) and Endowed Funds; (£423) (2021: £12,550).

Analysis of support costs

----- Start of picture text -----
Staff &
Cost of Office & Related Governance Total Total
Premises IT Costs Costs Costs 2022 2021
£ £ £ £ £ £
Raising Funds 655 333 633 379 2,000 125,991
Charitable activities
Promoting excellence 8,511 4,322 8,231 4,926 25,990 -
Developing talented researchers 387,651 196,846 374,897 224,340 1,183,734 1,056,273
Influencing research & policy 7,468 3,792 7,222 4,322 22,804 895,593
Engaging patients, the public & professionals 9,573 4,861 9,258 5,540 29,232 -
Total support costs 413,858 210,154 400,241 239,507 1,263,760 2,077,857
----- End of picture text -----

The Academy initially identifies the costs of its support functions. It then identifies those costs which relate to the governance function. The remaining support costs, which include the depreciation charge for the year, together with the governance costs, are allocated based on average staff time, except where the terms of restricted funding specify a particular overhead recovery.

28

29

5. Trustee and employee information

a. Trustee information

None of the Council (trustees) received or waived emoluments in the current or preceding year. During the year 4 Council members (2021: 2) received reimbursed travel expenses of £1,224 (2021: £270).

b. Employee information

----- Start of picture text -----
2022 2021
£ £
Salaries 2,349,315 2,185,325
Employer’s national insurance 260,044 233,588
Employer’s pension contributions 167,264 179,496
Donated staff services 78,397 64,143
2,855,020 2,662,552
----- End of picture text -----

The average number of salaried staff employed during the year was 55.16 (2021: 51.08). The full-time average equivalent for salaried staff during the year was 48 (2021: 49).

The number of employees whose emoluments as defined for taxation purposes amounted to over £60,000 in the year was as follows:

----- Start of picture text -----
2022 2021
£60,001 - £70,000 1 2
£70,001 - £80,000 1 1
£80,001 - £90,000 1 1
£90,001 - £100,000 1 -
£100,001 - £110,000 1 1
----- End of picture text -----

7. Grants payable

The Academy administers seven grant schemes: the Clinician Scientist Fellowship Scheme (CSFS) funded by the Health Foundation; the Starter Grants for Clinical Lecturer Scheme (CLS) funded by the Wellcome Trust, the British Heart Foundation, Arthritis Research UK, the Medical Research Council, Diabetes UK, British Thoracic Society; the Springboard Grants Scheme (SBS) funded by the Wellcome Trust (this also incorporating the Research Talent Fund and Global Challenges Research Fund Springboard scheme, both funded by the Department for Business Energy & Industrial Strategy (BEIS)), British Heart Foundation, Diabetes UK; the Newton Fellowships (NFS) funded by the Newton Fund (BEIS), the Global Challenges Research Fund Networking Scheme (GCRFN) funded by BEIS, the Research Professorship scheme (RST) funded by BEIS and the Daniel Turnberg UK/Middle East Travel Fellowship Scheme (DTMF). Details of the schemes are as follows:

----- Start of picture text -----
Total
CSFS CLS SBS NFS GCRFN RST DTMF 2022
£ £ £ £ £ £ £ £
Grants at 1 April 220,583 285,746 5,542,500 - 443,164 - - 6,491,993
Grants awarded (165,334) 1,228,289 5,312,866 1,034,186 - 2,077,420 71,118 9,558,545
Grants written-back - (138,391) (183,501) (51,813) (85,698) - (9,141) (468,544)
Grant payments during the year (55,249) (961,115) (8,004,843) (982,373) (357,466) (1,453,388) (28,579) (11,843,013)
Grants balance at 31 March - 414,529 2,667,022 - - 624,032 33,398 3,738,981
Developing talented researchers
Grants to institutions (68,816) 1,089,897 5,093,456 982,373 (85,698) 1,453,388 24,257 8,488,857
Grants to individuals (96,518) - 35,910 - - 624,032 37,720 601,144
Total research grants charged in the year (165,334) 1,089,897 5,129,366 982,373 (85,698) 2,077,420 61,977 9,090,001
----- End of picture text -----

Grants payable of £3,738,981 are shown under creditors amounts falling due within one year at note 11 on page 34.

Grants awarded are shown as grant funding expenditure in note 4 on page 29.

Grants to 67 institutions were awarded in the year to a total value of £9,090,001. (2021: £10,160,564 to 54 institutions). The principal institutions benefiting from the grants were:

Pension contributions paid by the Academy relating to higher paid employees as defined above amounted to £32,870 (2021: £54,658)

The total salaries of the Senior Management Team, including pension contributions, was £524,434 (2021: £552,327)

6. Net incoming/(outgoing) resources after charging:

----- Start of picture text -----
2022 2021
£ £
Auditor’s fees:
Audit – charity 13,080 12,700
Audit – trading subsidiary 2,100 1,980
Other services 9,488 2,390
Investment management fees (876) 26,180
Depreciation of tangible fixed assets 187,056 257,144
----- End of picture text -----

----- Start of picture text -----
£
University College London 613,691
King’s College London 582,117
Imperial College London 480,556
University of Oxford 434,660
University of Sussex 346,710
Cardiff University 339,682
University of Birmingham 338,681
University of Glasgow 335,169
University of Newscastle 304,581
University of Nottingham 274,126
----- End of picture text -----

30

31

8. Tangible fixed assets – Group and Charity

----- Start of picture text -----
Furniture,
Leasehold Refurbished fixtures & Computer Computer
Premises Property equipment equipment software Total
£ £ £ £ £ £
Cost
At 1 April 1,983,607 3,974,596 508,650 237,075 22,685 6,726,613
Additions - - 33,584 - - 33,584
Disposals - - (18,057) (17,033) (15,679) (50,769)
At 31 March 1,983,607 3,974,596 524,177 220,042 7,006 6,709,428
Depreciation
At 1 April 750,615 1,503,900 217,260 234,499 19,844 2,726,118
Charge for the year 71,421 143,230 9,277 (795) 438 223,571
Disposals - - (8,782) (14,456) (13,276) (36,514)
At 31 March 822,036 1,647,130 217,755 219,248 7,006 2,913,175
Net book value
31 March 2022 1,161,571 2,327,466 306,422 794 - 3,796,253
31 March 2021 1,232,992 2,470,696 291,389 2,576 2,841 4,000,495
----- End of picture text -----

Leasehold premises represent the value of the leasehold property at 41 Portland Place as transferred to the Academy from the Novartis Foundation on 31 July 2008.

Refurbished property represents the costs of construction and associated professional fees incurred in the refurbishment of 41 Portland Place between 2009 and 2011.

On 22 April 2014, the Academy completed on a new over-riding lease with the immediate landlords QAS Nominees Ltd that extends the current lease term on 41 Portland Place and 8 Weymouth Mews from 2038 to 2137. The rent payable from 6 July 2038 will be at full market rate rather than at the peppercorn rent paid currently. This means that the capital value will expire in July 2038 and depreciation continues to be calculated on the original lease term. 8 Weymouth Mews is treated as an investment property and details of this can be found under 1g.

Included in furniture, fixtures and equipment are antiques that are held as artefacts for the long term and depreciation, which would be immaterial, has not been charged on them. With regular maintenance their initial carrying value should be maintained and no impairment review is considered necessary.

9a. Investments - Group

----- Start of picture text -----
2022 2021
£ £
At 1 April 3,694,884 3,274,797
Additions - -
- -
Disposals
Management fees 876 (26,180)
Increase/(decrease) in market value (39,870) 446,267
3,655,890 3,694,884
Cash held for investment - -
Market Value at 31 March 3,655,890 3,694,884
Cost at 31 March 2,993,521 2,993,521
----- End of picture text -----

Investments to the value of £389,956 representing the Jean Shanks Memorial and the Sackler endowed funds are held in the Sarasin Endowments Fund (formerly the Alpha CIF for Endowments). Investments to the value of £1,383,554 representing the Daniel Turnberg Memorial Fund are split between the Sarasin Endowments Fund and their Income & Reserves Fund (formerly Alpha CIF for Income & Reserves). Balances held in the General Fund and Restricted funds that have been identified by the Finance Committee as suitable for retention in the medium term, are also split across the Sarasin Endowment and Income & Reserves Funds and were valued at £1,882,381 at 31 March 2022.

Investments of £3,656,890 shown in the Charity only balance sheet include an investment in the Academy of Medical Sciences Trading Limited share capital of £1,000 which is valued at cost.

9b. Investment Property – Group and Charity

----- Start of picture text -----
2022 2021
£ £
At 1 April 1,200,000 1,200,000
- -
Transfer from fixed assets
- -
Revaluation of investment property
Fair value at 31 March 1,200,000 1,200,000
----- End of picture text -----

Investment property comprises 8 Weymouth Mews, London. The last valuation was at 31 March 2020 and was reported on the basis of ‘material valuation uncertainty’ as per VPS 3 and VPGA 10 of the RICS Red Book Global Standards. As a result of COVID-19, a higher degree of caution was attached to the valuation than would normally be the case, and the valuers recommended the valuation was kept under frequent review. During 2020/21 the tenant entered into a new 5-year lease, which was on a similar basis to their previous lease and following review the valuation has been kept unchanged.

32

33

10. Debtors

----- Start of picture text -----
Group Charity Group Charity
2022 2022 2021 2021
Amounts falling due within one year: £ £ £ £
Trade debtors 631,774 570,653 118,942 118,942
Provision for doubtful debts (9,529) (9,529) - -
Prepayments 103,698 103,698 49,353 49,353
Accrued income 2,205,407 2,205,407 1,714,419 1,731,619
Other debtors 35,453 35,453 33,078 33,079
VAT receivable 15,251 7,151 18,650 18,247
Amount due from subsidiary - 15,299 - 428
Amount falling due after more than one year:
Loan to subsidiary - 100,000 - 100,000
2,982,054 3,028,133 1,934,442 2,051,668
----- End of picture text -----

12. Deferred Income

----- Start of picture text -----
Group Charity Group Charity
2022 2022 2021 2021
£ £ £ £
Deferred income brought forward 305,589 243,539 375,617 316,912
Less: Amount used in the year (233,232) (202,391) (145,907) (102,235)
Income deferred within the year:
Grants from institutions 170,633 170,633 25,674 25,674
Fellows’ subscriptions 20,527 20,527 3,004 3,004
Rent in advance - - - -
Conferencing deposits 26,236 - 47,017 -
Other - - 184 184
Deferred income carried forward 289,753 232,308 305,589 243,539
----- End of picture text -----

11. Creditors

----- Start of picture text -----
Group Charity Group Charity
2022 2022 2021 2021
Amounts falling due within one year: £ £ £ £
Grants payable 3,738,981 3,738,981 6,491,993 6,491,993
Trade creditors 323,090 255,496 175,111 168,254
Accruals 159,677 157,637 150,872 143,615
Deferred income 289,753 232,308 305,589 243,539
PAYE/NIC Liability 77,588 77,588 67,476 67,476
Other Creditors 48,812 48,812 11,178 11,178
- - - -
Corporation Tax
4,637,901 4,510,822 7,202,219 7,126,055
----- End of picture text -----

34

35

13. Movement on group funds

----- Start of picture text -----
Balance Balance
1 April 21 Income Expenditure Transfers Revaluation 31 March 22
£ £ £ £ £ £
Permanent endowment
The Jean Shanks Memorial Fund 304,498 7,894 69 - 6,168 318,629
The Sackler Fund 95,333 2,631 23 - 2,056 100,043
The Daniel Turnberg Memorial Fund 1,543,938 39,936 331 - (12,640) 1,571,565
Total permanent endowment 1,943,769 50,461 423 - (4,416) 1,990,237
Restricted funds
BEIS funding:
Science budget 46,088 3,199,411 (1,768,747) (1,018,894) - 457,858
Research Talent Fund (188,713) 6,378,847 (5,527,083) (169,994) - 493,057
Newton Fellowships 122,620 1,154,024 (1,076,004) (74,368) - 126,272
Global Challenges Research Fund (435,308) 279,007 69,778 (62,081) - (148,604)
Other funders to grant schemes 1,186,492 4,747,551 (3,813,114) (210,224) - 1,910,706
Project/meeting contributions 28,373 59,702 (52,862) (15,028) - 20,185
Mentoring & career development 1,008,161 438,049 (358,396) (255,457) - 832,357
Medical Research Society 776,572 17,465 145 - (4,294) 789,888
Restricted Asset Fund 2,470,697 - (143,230) - - 2,327,467
Total restricted funds 5,014,982 16,274,056 (12,669,512) (1,806,046) (4,294) 6,809,186
Unrestricted funds
General Fund 1,542,929 1,354,556 (1,446,507) 1,506,046 (22,282) 2,934,742
Designated funds
Business Fund 208,660 - - - - 208,660
Asset Fund 2,485,500 - (71,421) - - 2,414,079
Building Repair Fund 571,697 12,026 - 100,000 (4,735) 678,988
Development Fund 613,045 10,523 - 200,000 (4,143) 819,425
Total designated funds 3,878,902 22,549 (71,421) 300,000 (8,878) 4,121,152
Total unrestricted funds 5,421,831 1,377,105 (1,517,928) - (31,160) 7,055,894
Total funds 12,380,582 17,701,622 (14,187,017) - (39,870) 15,855,317
----- End of picture text -----

Endowment Funds

The Jean Shanks Memorial Fund

This fund is held in perpetuity to fund an annual Jean Shanks Memorial Lecture. Income arising from the investment of the donation is treated as restricted income.

The Sackler Fund

This fund was donated by The Raymond and Beverly Sackler Foundation to be held in perpetuity to fund an annual lecture and with permission of the Foundation Trustees, the lecture has currently been paused. Income arising from the investment of the donation is treated as restricted income. Income of £23 in the year comprises rebate after settlement of investment manager fees.

The Daniel Turnberg Memorial Fund

The Academy holds funds as sole trustee of the Daniel Turnberg Memorial Fund set up to foster academic interchange between medical and bioscience researchers in and between the UK and countries in the Middle East by award of travel grants.

Restricted Funds

BEIS Funding

The Department of Business Energy & Industrial Strategy (BEIS) provides four grants, disclosed separately as required by the terms of the funding agreements. These are:

Core Funding – National Academies allocation – the Academy received £ 3,199,411 during the year as part of the Science and Research budget to the National Academies. The grant was expended on the Academy’s strategic objectives relating to policy and public dialogue.

Research Talent Fund – During the year, the Academy received £ 5,623,000 of grant funding for Springboard awards, £281,000 towards the FLIER Programme, £160,000 towards career mentoring and £315,000 to the AMS Professorship scheme.

The Newton Fellowships – Details of the grants awarded are shown in note 7 with the Academy’s other grant schemes. During the year £986,000 of grant funding and £168,000 contribution for the running of the scheme was received. Of this, £1,076,000 was expended; £982,373 of which was awarded as grants.

Other Funders to grant schemes – These are organisations, other than BEIS, that fund the Academy’s grant schemes as detailed in note 7.

Mentoring and career development programme – The Wellcome Trust fund our mentoring and career development programme with supplementary funding received from BEIS (as detailed above), the Medical Research Council and the National Institute for Health and Care Research in Wales.

Policy project/meeting contributions – Specific donations to support meetings and other activities. Income received during the year includes £25,000 from the Shanks Foundation.

Medical Research Society – The Medical Research Society merged with the Academy on 31st October 2011 and the monies transferred on merger have been retained by the Academy to fulfil the charitable objectives of the Society.

Restricted Asset Fund – This fund represents the assets that were funded by the Capital Appeal in 2009-11.

Designated Funds

Designated Business Fund

This fund is available to support the trading subsidiary and covers the maximum loan to the company.

Designated Asset Fund

This fund comprises the value of the leasehold premises, antiques, and paintings at 41 Portland Place and 8 Weymouth Mews in July 2008 on merger with the Novartis Foundation, less associated depreciation. The costs of the refurbishment of 8 Weymouth Mews are also included in this fund along with the associated bank loan.

Designated Building Repair Fund

This fund provides for future building repairs and major equipment purchases at 41 Portland Place.

Designated Development Fund

This fund has been set up from significant unrestricted donations and transfers from the General Fund to be used to expand the Academy’s work under its Strategic Plan and to strengthen the operational platform.

Global Challenges Research Fund – BEIS administers the government fund set up to support cutting-edge research that addresses the challenges faced by developing countries.

36

37

14. Transfer between funds

----- Start of picture text -----
General Designated Restricted Restricted
fund funds funds funds Total
£ £ £ £ £
Transfer to building repair fund (100,000) 100,000 - - -
Transfer to Development Fund (200,000) 200,000 - - -
Contribution from Restricted Fund to General Fund 1,806,046 - (1,806,046) - -
1,506,046 300,000 (1,806,046) - -
----- End of picture text -----

Analysis of group net assets - 2021

----- Start of picture text -----
Permanent
General Designated Restricted endowment
funds funds funds funds Total
£ £ £ £ £
Fixed assets 112,269 1,417,529 2,470,697 - 4,000,495
Investments 519,364 1,984,920 613,100 1,777,500 4,894,884
Cash on deposit and at bank (711,781) 476,453 8,646,888 337,996 8,749,626
Other net current liabilities 1,623,077 - (6,715,703) (171,727) (5,264,353)
1,542,929 3,878,902 5,014,982 1,943,769 12,380,582
----- End of picture text -----

15. Analysis of group net assets

----- Start of picture text -----
Permanent
General Designated Restricted endowment
funds funds funds funds Total
£ £ £ £ £
Fixed assets 77,504 1,364,816 2,353,933 - 3,796,253
Investments 497,203 1,976,229 608,950 1,773,508 4,855,890
Cash on deposit and at bank 125,475 780,107 7,729,650 216,729 8,851,961
Other net current liabilities 2,234,560 - (3,883,347) - (1,648,787)
2,934,742 4,121,152 6,809,186 1,990,237 15,855,317
----- End of picture text -----

16. Company status and membership

Academy of Medical Sciences is a registered charity, incorporated by Royal Charter on 3 September 2019. At 31 March 2022 there were 1,353 members.

17. Subsidiary undertakings

At 30 November 2019 the 1,000 £1 shares held by the Academy of Medical Sciences charitable company in Academy of Medical Sciences Trading Limited were transferred to Academy of Medical Sciences as part of the transfer of assets to the new Royal Charter body. Also on that date, the loan facility of £200,000 set out in the loan agreement of 1 April 2010 was transferred to Academy of Medical Sciences by a Deed of Novation. The debenture of 1 April 2020 securing the loan was transferred via a Deed of Assignment to Academy of Medical Sciences on 30 November 2019. At the balance sheet date £100,000 had been drawn down under the facility.

The Academy charitable company was sole trustee of the Daniel Turnberg Memorial Fund until 30 November 2019. With effect from 1 December the new Royal Charter body Academy of Medical Sciences was appointed the sole trustee and the change in appointment was approved by the Charity Commission under a Scheme dated 20 November 2019. The Commission also approved the linking direction so that Daniel Turnberg Memorial Fund, a separate charity, is treated as part of Academy of Medical Sciences for the purposes of registration and accounting under parts 4 and 8 of the Charities Act 2011. The Daniel Turnberg Memorial Fund is shown as a separate endowed fund of the Academy at Note 13 and income arising from the investment of the fund is shown as restricted income in that note.

38

39

The Academy of Medical Sciences 41 Portland Place London W1B 1QH

+44 (0)20 3176 2150 info@acmedsci.ac.uk www.acmedsci.ac.uk

Registered Charity No. 1185329 Incorporated by Royal Charter. Registration No. RC000905