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2020-12-31-accounts

Society of Chemical Industry Annual Report and Accounts

31 December 2020

Charity Registration Number 206883

CONTENTS

REPORTS

REFERENCE AND ADMINISTRATIVE INFORMATION ...........................................3 TRUSTEES’ REPORT ....................................4 INDEPENDENT AUDITOR’S REPORT ............16 ACCOUNTS CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ..............................21 BALANCE SHEETS ......................................22 CONSOLIDATED STATEMENT OF CASH FLOWS ............................................23 PRINCIPAL ACCOUNTING POLICIES ............24 NOTES TO THE ACCOUNTS .........................30

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REFERENCE AND ADMINISTRATIVE INFORMATION

Trustees Dr A D Baylis (Chairman) Dr G Fowler (Honorary Treasurer) Mr D Birkett Ms L Bruce-Gardyne Dr C Crowhurst Dr M Harrison Dr R Harrison Mr M Heijbroek Prof R Jones Prof J Mordue-Luntz Dr J Ramakers Prof J Sweeney Prof K C Thompson Dr A Walker Dr D Witty Dr T Wood Chief Executive Officer Ms S E Todd Principal office 14-15 Belgrave Square London SW1X 8PS Charity registration number 206883 Auditor Buzzacott LLP 130 Wood Street London EC2V 6DL Investment manager Quilter Cheviot Investment Management 1 Kingsway London WC2B 6AN Bankers HSBC Bank plc The Peak 333 Vauxhall Bridge Road London SW1V 1EJ Solicitors Stone King LLP 16 St John’s Lane London EC1M 4BS

SCI ANNUAL REPORT AND ACCOUNTS 3

The trustees present their statutory report together with the audited accounts of the Society of Chemical Industry (“SCI” or “the Society”) for the year ended 31 December 2020. The accounts have been prepared in accordance with the accounting policies set out on pages 24 to 29 of the attached accounts and comply with the charity’s governing document, the Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

GOVERNANCE, STRUCTURE AND MANAGEMENT

Constitution

The Society of Chemical Industry was founded in 1881 and incorporated by Royal Charter in 1907. A copy of the Royal Charter, By-laws and Rules which governs the charity’s activities may be obtained on request from the principal office at 14-15 Belgrave Square, London, SW1X 8PS or viewed on our website, www.soci.org. SCI registered itself with the Charity Commission in 1962 (Charity Registration No 206883).

Board of Trustees

Overall responsibility for the affairs of the charity lies with its Board of Trustees (“the Board”). The following trustees were in office throughout the period of report and up to the date of approval of the annual report and accounts, except where shown:

TRUSTEE APPOINTED/RESIGNED Dr A D Baylis (Chairman) Mr D Birkett Mrs D Brown Resigned October 2020 Ms L Bruce-Gardyne Dr C Crowhurst Dr G Fowler (Honorary Treasurer) Dr M Harrison Dr R Harrison Mr M Heijbroek Prof J Mordue-Luntz Dr J Ramakers Prof J Sweeney Prof K C Thompson Dr A Walker Co-opted February 2020 Dr D Witty Dr T Wood

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GOVERNANCE, STRUCTURE AND MANAGEMENT

Governance Structure

SCI is governed by the Board of Trustees, supported by standing and sub committees, to provide advice and support to BoT on aspects of the Society. Authority is delegated to the Chief Executive and her team to manage the operations of the Society.

SCI runs a process of rolling review of its governance and continues to implement changes, supported by its professional advisors, designed to strengthen the organisation. During 2020 a number of changes were introduced – specifically a new Nominations Committee and a new Presidents Council.

Presidents Council

During 2020 a new Presidents Council, comprising of senior stakeholders of the Society, was launched. The new Council, chaired by the SCI President, acts as an advisory body to the Board of Trustees and the Chief Executive on strategic and governance matters.

Diversity

During 2020 the Board of Trustees reviewed and revised its Diversity Policy, restating its commitment to ensuring SCI is a diverse and welcoming Society. Diversity is essential for effective innovation and the core values of respecting, valuing and including others, remain at the heart of SCI.

Appointment of trustees and standing committee members

Elections to the Board of Trustees and the other governance committees are held each year to ensure the succession management of governance and compliance with stated periods of office. This process is directed by the Board of Trustees and managed by the Chief Executive. In addition to elected positions on the Board, co-opted positions are used to attract trustees with skills and talent to complement the trustees elected by the membership of the Society.

Induction and training of those charged with governance

Trustees and others involved in SCI’s governance are kept up-to-date with best practice standards and developments in governance through the Chief Executive and the Society’s professional advisors. SCI seeks to comply with the Charity Governance Code for the voluntary and community sector.

New trustees and those taking office on Standing Committees are made aware of the responsibilities of trustees and office bearers under the Charities Act 2011 and under the Society’s governing documents.

SCI ANNUAL REPORT AND ACCOUNTS 5

GOVERNANCE, STRUCTURE AND MANAGEMENT

Standing Committees and Sub-Committees

The Board is supported by one Standing Committee and five Sub-Committees, which advise on specific aspects of SCI’s work. The Chairs of each are also members of the Board of Trustees. The Board of Trustees meets at least four times a year and the Standing and Sub-Committees meet as often as needed, although not less than twice a year.

Finance and Investments Advisory Committee (FIAC)

FIAC is a Standing Committee and advises the Board on all financial matters relating to the Society including investments, investment policy issues, reserves policy, budgets (annual and project related), IT policy and property.

Membership Committee (MC)

The Membership Committee is a Sub-Committee of the Board of Trustees. It is responsible for advising on the needs and interests of SCI’s members. Its overall aim is to advise the Board and the Chief Executive on ways and means of enhancing the value of SCI membership from the members’ perspective.

The Publications Committee (PC)

The Publications Committee (PC) is a Sub-Committee of the Board. PC comprises of the editors-in chief of SCI’s scientific journals with some elected members. PC is responsible for advising the Board on SCI publishing activities and strategies, the strategic development of the existing portfolio and the development of new publication products. PC, together with the Chief Executive, works with publishing advisors and partners to identify and appraise publishing opportunities and threats, to ensure that editorial policies are aligned with SCI’s policies and strategy.

Early Careers Committee (ECC)

ECC is a Board Sub-Committee and advises on services and initiatives to support early career members of SCI and to oversee early career related awards. ECC also manages the College of Scholars and overseas key awards.

Senior Appointments and Remuneration Committee (SARC)

The purpose of SARC (a Board Sub-Committee) is to appoint and review the Chief Executive’s remuneration package and to approve overall pay increases for SCI staff. For annual pay awards SARC receives input from the Chief Executive (CEO) and takes into account evidence of wage increases from the Office for National Statistics and other independent surveys. It is mindful of the financial performance of the Society during the year and the budget allowance for the following year.

Nominations Committee (NC)

In 2020 a new sub-committee, the Nominations Committee, was formed by the Board of Trustees. This committee, chaired by the SCI President, has the remit to oversee and strengthen the process of appointment or election of new trustees.

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GOVERNANCE, STRUCTURE AND MANAGEMENT

Organisation and Management

The Chief Executive is responsible to the Board for the efficient conduct of SCI’s affairs in accordance with the Royal Charter, By-Laws and Rules.

The delivery of the strategy and the day-to-day management of SCI is delegated to the Chief Executive, and then further delegated to the line managers. Staff work to an agreed operational plan, targets and budget agreed with the Board at the beginning of the year and report progress to the trustees on a regular and formal basis. The management and staff work within a framework of delegated authority.

SCI pursues an overall policy of transparency and clear communication. Minutes are taken at all governance meetings and actions are recorded.

SCI communicates with its membership and other audiences through the SCI member news pages in Chemistry & Industry magazine, via its website, www.soci.org , and through electronic newsletters and emails that promote its conference programme and other membership activities. SCI has a blog, SCIBlog, and also has presence in social media, such as LinkedIn, Facebook and Twitter.

Key management personnel

The trustees consider that they, together with the Chief Executive, comprise the key management personnel of the charity in charge of directing and running the operations of the charity. Trustees are not remunerated for their services to the charity. The remuneration of the Chief Executive is determined through the Senior Appointments and Remuneration Committee. Benefits provided to the staff include a defined contribution pension scheme, BUPA cover and paid holidays in excess of the legal entitlement.

Trading subsidiary

SCI owns and controls the operations of a wholly owned subsidiary company, SCI Business Limited (Company Registration Number 02994541). It undertakes trading activities, which are ancillary to, but not part of, SCI’s core activities, and donates the annual profits to SCI in the form of a Gift Aid donation. The activities undertaken by SCI Business Limited cover other trading activities within SCI’s expertise that do not conflict with SCI’s charitable objectives, such as advertising and meeting room hire.

The accounts accompanying the annual report are consolidated and incorporate the financial results and year end position of both SCI and its wholly owned subsidiary.

SCI ANNUAL REPORT AND ACCOUNTS 7

GOVERNANCE, STRUCTURE AND MANAGEMENT

OBJECTIVES AND ACTIVITIES

SCI was established in 1881 by forward thinking scientists, inventors and entrepreneurs to help support and accelerate the commercialisation of chemistry and related sciences, into industry for the benefit of society. During its 140 years SCI’s community has developed a multitude of new products and processes in a wide range of industry sectors, from new medicines to new materials, bringing extensive benefits to society.

Operating as an international membership organisation, SCI connects scientists, industry, government and other key stakeholders to come together to solve some of the biggest global challenges facing society, from Global Health issues to delivering solutions to Net Zero. By harnessing its unique networks novel solutions are developed, new entrepreneurial businesses are supported and knowledge is shared across boundaries.

SCI’s is a unique multidisciplinary organisation, bringing together people from different disciplines, businesses and backgrounds, and from a wide range of sectors including agrifood, energy, environment, health and wellbeing and materials. Members include a wide range of scientists, engineers and business people (senior executives, R&D managers, marketers, IP professionals) from a wide range of science-based industries.

SCI’s current strategy has focussed on SCI committing to:

In formulating the Society’s aims and in planning the work of the charity, the trustees confirm that they have had due regard to the general guidance published by the Charity Commission on public benefit.

The strategy will be reviewed over the next 12 months.

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ACHIEVEMENTS AND PERFORMANCE

2020 has been a challenging year for all. The global COVID pandemic presented significant challenges for SCI although the operations proved resilient. The Society had to adapt quickly to a new environment and many of its activities were reshaped, with most activities moved quickly to online operations. During the year the executive focused on maintaining operations with a strong focus on cash management. Although income was negatively impacted expenditure was managed and the overall performance resulted in a small surplus, despite the extremely difficult operating environment.

Despite the COVID pandemic membership numbers continue to grow, with increases in all membership categories, apart from life members. Overall, membership numbers increased by a healthy 10% in 2020. During the year all existing corporate partners continued their support for SCI with renewed membership, and SCI was delighted to welcome a further three corporate partners during the year; Unilever, Syngenta and Scott Bader.

Accelerating Innovation

PUBLICATIONS

Despite disruption to research throughout 2020 income from publications remained strong reflecting the importance of the journals, with a minimal decrease of 2.4% in 2020 compared to 2019. The publications operations ran without disruption throughout 2020, including the publication and distribution of C&I, the Society’s globally renowned magazine.

SCI continues to invest in growing its digital media capabilities to both support the existing publications portfolio and to expand SCI’s presence via existing and new digital platforms. Sharing knowledge and building networks through the use of digital platforms remains a focus for SCI.

CONFERENCES

SCI runs an extensive conference programme, with many events being an important vehicle for showcasing and progressing emerging technologies. Conferences are run across the range of areas covered by SCI, such as advancements in the areas of agrifood, materials, health and wellbeing and energy and environment.

At the start of the COVID crisis SCI made the decision to move as many conferences online, but with major scientific conferences postponed to 2021 or 2022. In addition the scientific conferences run were opened up to all parties, in an effort to support SCI’s scientific community, many of whom were involved in the development of the vaccines and critical equipment such as PPE.

Through the year conference income decreased (by 83.8%) from the previous year, but the delegate numbers grew considerably (by 110%).

COMMUNITIES

New communities were launched in emerging tech areas such as Sustainable Materials, Battery Materials and AI, Data and Digitalisation. These communities bring together organisations and academia working on developing and commercialising new technologies in critical areas such as electric vehicles, new forms of energy such as hydrogen and sustainability.

SCI ANNUAL REPORT AND ACCOUNTS 9

ACHIEVEMENTS AND PERFORMANCE Investing in the Next Generation intellectual property. Mentoring Programme, continued to operate effectively online.

SCI continues to have a strong focus on supporting and developing early and mid career STEM students. Activities are aimed at educating and developing this critical group of future inventors and leaders. Events covered a wide range of technology areas as well as functional areas such as developing and managing intellectual property.

During the year several key events were postponed due to the COVID pandemic but others, such as the Mentoring Programme, continued to operate effectively online.

In addition to the early career activities the Mid-Careers Group ran a number of successful events online. This group, focussed on supporting and developing mid-career professionals, is developing a programme of activities designed to help support the leaders of the future.

Recognising Excellence in Innovation

SCI runs an extensive international Awards Programme, promoting and recognising excellence in innovation and industry. Excellence in leadership is recognised through the awarding of SCI Medals and through the Memorial Lectures. Excellence in research is recognised through a wide range of scholarships, awards, and prizes given to early and mid career scientists from academia and industry, to help support their personal development or to fund research.

COVID impacted on the awards programme during 2020, with many awards restricted, however over 70 scholarships, fellowships and prizes were awarded during the year. Three SCI Scholarships and one new Daphne Jackson Fellowship, in partnership with the Daphne Jackson Trust, were awarded.

In addition, three major medals were also awarded as follows:

Public Outreach

During 2020 a new online public lecture programme, SCITalks, was launched. This programme proved to be very popular, attracting audiences from around the world with talks ranging from ‘The Quest for Effective Dementia Treatment’, to ‘Combatting Antimicrobial Resistance’ and ‘Big Bangs and Black Holes – frontiers of space science. ’

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FUTURE PLANS

The worldwide outbreak of the coronavirus pandemic (Covid-19) has caused extensive disruptions to organisations globally with major implications for operations as well finances. Trustees acknowledge and recognise the potential impact of the Covid-19 pandemic on the future operations of the Society, its beneficiaries, partners and stakeholders and on the wider society.

Key areas of the charity’s operations that have been impacted include:

SCI Strategy

As a result of changing landscape SCI has initiated a strategic review, starting in 2021, to assess and develop the strategy for the new post COVID world.

It is anticipated that the current programme of SCI activities, such as the dissemination of knowledge and facilitating innovation through conferences, publications and early career programmes, will continue to grow and develop, however these may take new forms into the future. In addition, opportunities by providing further digital products and services, to supplement existing product offerings will be reviewed.

SCI will continue to focus on developing its membership through individual members, its successful corporate partners programme and by supporting innovative SMEs and academics.

Publishing activities will continue to change as the marketplace is changing with the moves to open access models. SCI is supportive of approaches designed to accelerate the dissemination of knowledge and continues to work with key stakeholders to find new models that will support not for profit scholarly publishing into the future.

The review of governance structures, focused on ensuring that SCI has the structure fit for future needs will continue. Significant changes have already been implemented and the establishing of the Presidents Council in 2020 is an exciting step forward.

SCI : Celebrating 140 Years in 2021

SCI was established in 1881 by forward thinking scientists, inventors and entrepreneurs intent on working tougher to solve some of the biggest challenges of their day. In 2021 SCI enters into its 140[th] year - still focussed on the original charitable objectives, supporting the acceleration of the development and implementation of scientific solutions the global societal challenges of today.

SCI ANNUAL REPORT AND ACCOUNTS 11

FINANCIAL REVIEW

Results for the year

A summary of the year’s results is provided on page 21 of the attached accounts.

Total income for the year amounted to £2,873k (2019 – £3,556k). The principal funding sources were: publications £1,943k (2019 – £1,991k), conferences £89k (2019 – £549k), investment income £191k (2019 – £171k), income from letting and licensing of premises £342k (2019 – £514k), commercial trading operations £66k (2019 – £178k); and member subscriptions of £152k (2019 – £146k). We also received £79k of grant income via the Coronavirus Job Retention Scheme.

Total expenditure for the year amounted to £3,121k (2019 – £3,704k), £3,033k (2019 – £3,442k) of the expenditure incurred in the year, representing 97% (2019 – 93%) of the total expenditure incurred, was spent on charitable activities, which includes directly attributable costs, project costs and overhead costs supporting core charitable objectives.

Other expenditure incurred of £88k (2019 – £262k) was on trading activities, on letting and hiring of premises and on investment management.

The net expenditure for the year before investment gains and losses was therefore £248k (2019 – net expenditure of £148k).

After accounting for the net gains generated on the revaluation and disposal of listed investments totalling £395k (2019 – gains of £580k), the charity’s overall funds increased by £147k (2019 – increased by £432k).

The Society’s wholly owned trading subsidiary, SCI Business Limited, reported a profit before Gift Aid donations of £39k (2019 – £43k). The profit earned was payable to the parent charity under Gift Aid in order to assist in meeting its objectives.

Fundraising

The Society does not currently engage in traditional forms of fundraising activity such as collections or appeals, and as such, the trustees do not consider it necessary at the moment for the Society to adopt any particular code of practice in this area. However the Society plans to undertake a scoping exercise in the area of fundraising, incorporating process, procedure, governance and compliance. No complaints have been received by the Society in relation to fundraising.

Investment Policy and Performance

All funds of the Society not immediately required to be used or applied for the ordinary purposes of, or in carrying out the objects of, the Society and any property held by the Society, subject to the terms of any trust, may be invested by the Board of Trustees on behalf of the Society in any permitted investment.

The Board may appoint and terminate the appointment of investment managers upon such terms and conditions as they may from time to time determine, except that no person should be appointed as investment manager unless authorised for this purpose in accordance with the Financial Services Act 2010 or any statutory modification thereof or replacement thereof.

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FINANCIAL REVIEW

Under delegated authority from the Board of Trustees, administration of the funds of the Society, subject to the overall authority of the Board, are overseen by the Finance & Investments Advisory Committee (“FIAC”). FIAC members take advice on the investment portfolio and performance from an independent advisor, Quilter Cheviot Investment Management, who are also responsible for the management of the charity’s investments. They assist the Committee to review the investment policy, asset reallocation and risk level. The principal custodian of investment securities is Bank of New York Mellon. The Committee reviewed SCI’s investment policy in late 2018. The overall policy is for a broadly moderate risk appetite, with balanced expectations of income and gains.

Surplus cash is held in deposit accounts with the Society’s bankers, HSBC. The market value of investments at 31 December 2020 was £7,578k compared with £7,433k at 31 December 2019.

Income from listed investments during the year amounted to £166k (2019 – £163k) representing an income yield of approximately 2.46% (2019 – 2.4%). The net gains on the listed investments in 2019 were £348k (2019 – gains of £580k). The total return on the portfolio for the year to 31 December 2020 was 7.9% compared with the benchmark return of 3.5% as per the published ARC Steady Growth Charity Index (2019: 10.9% vs 15.6%).

Reserves policy and financial position

Part of the charity’s net assets is represented by the net book value of SCI’s interest in its tangible fixed assets. The availability of these assets is essential to the day-to-day work of the charity and as such, the value of these assets cannot be regarded as funds that would be realisable with ease, in order to meet future contingencies. As such, an amount equal to the net book value of the tangible fixed assets has been separated from the charity’s general funds and held as a separate designated fund. At the year end, the balance on this fund was £4,419k (2019 – £4,601k).

At 31 December 2020, funds totalling £2,247k (2019 – £2,177k) comprised restricted funds that must be applied in accordance with the wishes of the donor.

FIAC has considered SCI’s free reserves requirements and advised on the same to the charity’s Board. Free reserves comprise the general funds of the Society, excluding designated and restricted funds. When setting the reserves policy, FIAC and the Board have given consideration to the following:

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FINANCIAL REVIEW Going concern

At 31 December 2020, the charity held free reserves totalling £7.24m (2019 – £6.98m). While the actual level of free reserves is below the desired level, the trustees are satisfied with the progress of the increase in free reserves over recent years, taking into account the significant investment in the infrastructure in 2019 and the disruption associated with the COVID pandemic. A review of the reserves is planned for 2021.

There is a reasonable expectation that the Society of Chemical Industry has adequate resources to continue in operational existence for the foreseeable future. The trustees believe that there are no material uncertainties that call into doubt the charity’s ability to continue operating as a going concern. In making this decision, the trustees have taken into consideration the risks and uncertainties arising from the Coronavirus pandemic and conclude that the charity can sustain its operations for a period of at least twelve months from date of signing these accounts. Consequently, the financial statements have therefore been prepared on the basis that the charity remains a going concern.

Related entities

During 2019 SCI established two Dutch legal entities to support and promote SCI’s activities in Europe post Brexit. SCI Europe B.V. (registration no. 860729813) and Stichting SCI Europe (860729795) were both registered on 16th December 2019 and remained dormant to 31 December 2020.

Funds held as Custodian Trustee

The Society acts as Custodian Trustee for the SCI Benevolent Fund and Rideal Trust. The financial results of these two charities are consolidated into SCI’s accounts and full accounts for the trust funds are produced in note 22 in compliance with Charity Commission guidelines.

SCI Benevolent Fund

The object of SCI’s Benevolent Fund is to provide financial relief to persons who are or have been members of the Society and to their spouses, children and dependents and to the widows/widowers, children and dependents of deceased members. The assets as at 31 December 2020 are investments, which amounted to £131k.

The Rideal Trust

The object of the Rideal Trust is the general advancement of chemical science and, in particular, branches relating to chemisorption, colloid science, interface science, catalysis and related topics. The Trust is jointly administered by SCI and the Royal Society of Chemistry. The activities of the Trust directly support the overall object of the Society which is to advance the science of applied chemistry and related sciences for the public benefit by providing information, granting bursaries, awards etc. The assets as at 31 December 2020 are investments, which amounted to £18k.

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FINANCIAL REVIEW

RISK MANAGEMENT

The trustees pursue a system of risk management through FIAC, the Executive, and the Board of Trustees. A Risk Register is in place and this is regularly reviewed throughout the year by the Executive, FIAC and BoT.

The trustees regularly review the high-level risks to which the charity is exposed, in particular those related to the operations and finances of the charity, and are satisfied that systems are in place to mitigate exposure to the major risks.

The main risks to the Society continue to be market related – in particular from the potential impact of open access on publishing income and the potential volatility in the investment earnings. The potential loss of income from publishing is managed by having programmes in place to deliver income growth and appropriate agreements with the publishing partner. The investments are reviewed by FIAC regularly against benchmarks to determine the effectiveness of the investment strategy, which can then be modified if required.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

The trustees are responsible for preparing the trustees’ report and accounts in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare accounts for each financial year which give a true and fair view of the state of affairs of the charity and the group and of the income and expenditure of the charity and the group for that period. In preparing these accounts, the trustees are required to:

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

Approved by the trustees and signed on their behalf by:

Honorary Treasurer

Approved by the Board of Trustees on: 19 May 2021

SCI ANNUAL REPORT AND ACCOUNTS

15

FINANCIAL REVIEW Opinion

Independent auditor’s report to the members and trustees of Society of Chemical Industry

We have audited the accounts of Society of Chemical Industry (the ‘parent charity’) including its subsidiary (collectively the ‘group’) for the year ended 31 December 2019 which comprise the group statement of financial activities, group and parent charity balance sheets, group statement of cash flows, the principal accounting policies and notes to the accounts. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the accounts:

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 accounts section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the accounts in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the accounts, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the accounts is appropriate.

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

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

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FINANCIAL REVIEW

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report other than the accounts and our auditor’s report thereon.

Our opinion on the accounts does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the accounts, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the accounts or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the accounts or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the statement of trustees’ responsibilities, the trustees are responsible for the preparation of the accounts 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 accounts that are free from material misstatement, whether due to fraud or error.

In preparing the accounts, the trustees are responsible for assessing the group’s and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the group or the parent charity or to cease operations, or have no realistic alternative but to do so.

SCI ANNUAL REPORT AND ACCOUNTS 17

FINANCIAL REVIEW

Auditor’s responsibilities for the audit of the accounts

Our objectives are to obtain reasonable assurance about whether the accounts 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 accounts.

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.

How the audit was considered capable of detecting irregularities including fraud.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the charity’s accounts to material misstatement, including obtaining an understanding of how fraud might occur, by:

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

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FINANCIAL REVIEW

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of noncompliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of key management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with section 144 of the Charities Act 2011 and with regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Buzzacott LLP Statutory Auditor 130 Wood Street London

EC2V 6DL

Buzzacott LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006 Date : 12 October 2021

SCI ANNUAL REPORT AND ACCOUNTS 19

FINANCIAL STATEMENTS

FINANCIAL REVIEW

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES Year to 31 December 2020

----- Start of picture text -----
2020 2019
Unrestricted Restricted Total Unrestricted Restricted Total
funds funds funds funds funds funds
£’000 £’000 £’000 £’000 £’000 £’000
INCOME FROM:
Donations and legacies 1 — — — 1 2 3
Charitable activities 2 2,184 — 2,184 2,686 — 2,686
Other trading activities 3 408 — 408 692 — 692
Investments 4 146 45 191 132 39 171
Grant income (CJRS) 79 — 79 — — —
Other income 11 — 11 4 — 4
Total income 2,828 45 2,873 3,515 41 3,556
EXPENDITURE
Raising funds 5 88 — 88 262 — 262
Charitable activities 6 2,956 77 3,033 3,386 56 3,442
Total expenditure 3,044 77 3,121 3,648 56 3,704
Net expenditure before gains
and losses on investments and
transfers (216) (32) (248) (133) (15) (148)
Transfers (8) 8 — (15) 15 —
Net expenditure before gains
and losses on investments (224) (24) (248) (148) — (148)
Net gains on the revaluation
and disposal of listed
investments 13 301 94 395 442 138 580
Net income and net
movement in funds 10 77 70 147 294 138 432
RECONCILIATION OF FUNDS:
Fund balances brought
forward
at 1 January 11,585 2,177 13,762 11,291 2,039 13,330
Fund balances carried forward
at 31 December 11,662 2,247 13,909 11,585 2,177 13,762
All of the group’s activities derived from continuing operations during the above two financial periods.
The group has no recognised gains and losses other than those shown in the consolidated statement
of financial activities.
----- End of picture text -----

SCI ANNUAL REPORT AND ACCOUNTS 21

BALANCE SHEETS

Year to 31 December 2020

Notes
Group
2020
£’000		 Group
2019
£’000		 Charity
2020
£’000		 Charity
2019
£’000
FIXED ASSETS
Tangible assets
12
4,419		 4,601 4,419 4,601
Investments
13
7,578		 7,433 7,578 7,433
11,997 12,034 11,997 12,034
CURRENT ASSETS
Debtors
14
925		 1,057 984 1,191
Cash at bank and in hand 1,913 1,492 1,841 1,344
2,838 2,549 2,825 2,535
Creditors: amounts falling due
within oneyear
15
(839)		 (716) (826) (702)
Net current assets 1,999 1,833 1,999 1,833
Total assets less current liabilities 13,996 13,867 13,996 13,867
Creditors: amounts falling due
after more than one year
16
(87)		 (105) (87) (105)
Total net assets
The funds of the group and charity:
Unrestricted funds
13,909 13,762 13,909 13,762
. Designated funds
17
4,419		 4,601 4,419 4,601
. General funds 7,243 6,984 7,243 6,984
11,662 11,585 11,662 11,585
Restricted funds
18
2,247		 2,177 2,247 2,177
13,909 13,762 13,909 13,762

Approved by the trustees and signed on their behalf by:

Honorary Treasurer

Approved by the Board of Trustees on: 19 May 2021

22 SCI ANNUAL REPORT AND ACCOUNTS

CONSOLIDATED STATEMENT OF CASH FLOWS Year to 31 December 2020

Notes 2020
£’000		 2019
£’000
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities
A		 117 (463)
CASH FLOWS FROM INVESTING ACTIVITIES:
Investment income 191 171
Purchase of tangible fixed assets (137) (193)
Proceeds from the disposal of investments 1,332 8,064
Purchase of investments (936) (8,694)
Net cash provided by (used in) investing activities 450 (652)
Change in cash and cash equivalents in the year 567 (1,115)
Cash and cash equivalents at 1 January
B		 1,518 2,633
Cash and cash equivalents at 31 December
B
2,085 1,518

Notes to the statement of cash flows for the year to 31 December:

A Reconciliation of net income to net cash provided by (used in) operating activities

2020
£’000		 2019
£’000
Net income (as per the statement of financial activities) 147 432
ADJUSTMENTS FOR:
Depreciation charge 301 374
Loss on the disposal of fixed assets 18 —
(Gains) on investments (395) (580)
Investment income (191) (171)
Decrease (increase) in debtors 132 (268)
Increase (decrease) in creditors 105 (250)
Net cashprovided by (used in) operating activities 117 (463)

B Analysis of changes in net debt

2020
£’000		 2019
£’000
Cash at bank and in hand 1,913 1,492
Cash held by investment managers 172 26
Total cash and cash equivalents 2,085 1,518

SCI ANNUAL REPORT AND ACCOUNTS 23

PRINCIPAL ACCOUNTING POLICIES

Year to 31 December 2020

The principal accounting policies adopted, judgements and key sources of estimation uncertainty in the preparation of the accounts are laid out below.

Basis of preparation

These accounts have been prepared for the year to 31 December 2020 with comparative information in respect of the year to 31 December 2019. They are presented in sterling and are rounded to the nearest thousand pounds.

The accounts have been prepared under the historical cost convention with items recognised at cost or transaction value unless otherwise stated in the relevant accounting policies below or the notes to these accounts.

The accounts 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 applicable in the United Kingdom and Republic of Ireland (FRS 102) (Charities SORP FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

Basis of consolidation

The consolidated statement of financial activities and group balance sheet consolidate the results of SCI and its wholly owned subsidiary company, SCI Business Limited, groups and applicable trust funds, made up at the balance sheet date. The results are consolidated on a line-by-line basis.

The results of all the groups were fully incorporated into the Society’s accounts with the exception of the Macro Group which is jointly administered with the Royal Society of Chemistry.

The charity is taking advantage of the concession to only provide a consolidated statement of financial activities and income and expenditure account as permitted by the Charities SORP FRS 102. No separate statement of financial activities has been presented for the charity alone as permitted by Section 408 of the Companies Act 2006.

Critical accounting estimates and areas of judgement

Preparation of the accounts requires the trustees and management to make significant judgements and estimates.

The items in the accounts where these judgements and estimates have been made include:

24 SCI ANNUAL REPORT AND ACCOUNTS

PRINCIPAL ACCOUNTING POLICIES

Assessment of going concern

The trustees have assessed whether the use of the going concern assumption is appropriate in preparing these accounts. The trustees have made this assessment in respect to a period of one year from the date of approval of these accounts.

The total eventual impact of the ongoing global coronavirus pandemic is still unknown. It is therefore not currently possible to evaluate all the potential implications for the charity’s activities, suppliers, beneficiaries and the wider economy. However, the trustees are of the opinion that the charity will have sufficient resources to meet its liabilities as they fall due including sufficient to enable the charity to operate in the exceptional circumstances created by Covid-19.

The most significant areas of judgement that affect items in the accounts are detailed above. With regard to the next accounting period, the year ending 31 December 2021, the most significant areas that affect the carrying value of the assets held by the charity are the level of investment return and the performance of the investment markets.

Income recognition

Income is recognised in the period in which the charity and the group have entitlement to the income, the amount of income can be measured reliably and it is probable that the income will be received. It excludes VAT where charged.

Income is deferred only when the charity and the group has to fulfil conditions before becoming entitled to it or where the donor or funder has specified that the income is to be expended in a future accounting period.

Income comprises donations, legacies, grants, income from charitable activities including conferences and events, publications and membership subscription; income from other trading activities including the letting and licensing of the charity’s premises; and investment income and interest receivable.

Donations are recognised when the charity has confirmation of both the amount and settlement date. In the event of donations pledged but not received, the amount is accrued for where the receipt is considered probable. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Legacies are included in the statement of financial activities when the charity is entitled to the legacy, the executors have established that there are sufficient surplus assets in the estate to pay the legacy, and any conditions attached to the legacy are within the control of the charity.

In accordance with the Charities SORP FRS 102 volunteer time is not recognised.

Grant funding is recognised as and when the work is completed and the grant conditions are fulfilled.

SCI ANNUAL REPORT AND ACCOUNTS 25

PRINCIPAL ACCOUNTING POLICIES

Income from conferences and events are recognised in the financial period in which the conference or event was hosted.

Income from publications and royalties are recognised in the period in which the royalties were accrued or the publications sold.

Annual membership subscriptions are recognised as income on an accruals basis applicable to the membership period, and part of the subscription applicable to the following year is carried forward as deferred income. Life membership can be purchased based on 10 years standing and aged 60 or over on a sliding scale, depending on age. To reflect the costs of providing future membership benefits to such members, a provision is calculated multiplying the annual membership subscription by the estimated number of years that the benefits will be provided for each life member.

Income derived from the letting and licensing of the charity’s premises, is recognised in the period to which the letting or licencing relates. Rent free period income is recognised as a deferred debtor which is written down over the lease period or the lease break clause date, whichever is earlier.

Dividends are recognised once the dividend has been declared and notification has been received of the dividend due.

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.

Expenditure recognition

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity and the group to make a payment to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Irrecoverable input VAT is included in the expenditure. Expenditure comprises direct costs and support costs. All expenses, including support costs, are allocated or apportioned to the applicable expenditure headings. The classification between activities is as follows:

Grants are awarded from various restricted funds by the Early Careers Committee to successful applicants. Each fund has its own particular criteria. They are accounted for in the statement of financial activities in the year in which they are awarded.

Expenditure on charitable activities includes both costs which can be directly attributed to the four key activities as well as an allocation of shared support costs (see below).

26 SCI ANNUAL REPORT AND ACCOUNTS

PRINCIPAL ACCOUNTING POLICIES

Allocation of support and governance costs

Support costs represent indirect charitable expenditure. In order to carry out the primary purposes of the charity and the group it is necessary to provide support in the form of a finance function, IT and human resources function, and facilities management support.

Furthermore, support costs include governance costs. These comprise the costs involving the public accountability of the charity and the group (including audit costs) and costs in respect to its compliance with regulation and good practice.

Support costs including governance costs are allocated to the various categories of charitable expenditure on an appropriate basis such as the number of staff serviced in each area, floor space, or in proportion to direct costs. The basis of allocation is further explained in note 8 to the accounts.

Tangible fixed assets

Tangible fixed assets costing less than £1,000 are not capitalised and are written off in the year of purchase.

Tangible fixed assets which are capitalised are included at cost (including any incidental expenses of acquisition), stated at cost less accumulated depreciation.

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

Assets under the course of construction are not depreciated until the asset is complete and available for use.

The property is subject to an annual impairment review.

Investments

Listed investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

As noted above, the main form of financial risk faced by the charity and the group is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

The Society’s investment in its wholly owned trading subsidiary is included in the charity balance sheet at cost.

Debtors

Debtors are recognised at their settlement amount, less any provision for non-recoverability. Prepayments are valued at the amount prepaid. They have been discounted to the present value of the future cash receipt where such discounting is material.

SCI ANNUAL REPORT AND ACCOUNTS 27

PRINCIPAL ACCOUNTING POLICIES Cash at bank and in hand year is disclosed as a fixed asset investment. Creditors and provisions

Cash at bank and in hand represents such accounts and instruments that are available on demand or have a maturity of less than three months from the date of acquisition. Deposits for more than three months but less than one year have been disclosed as short term deposits. Cash placed on deposit for more than one year is disclosed as a fixed asset investment.

Creditors and provisions are recognised when there is an obligation at the balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Creditors and provisions are recognised at the amount the charity and the group anticipate it will pay to settle the debt. They have been discounted to the present value of the future cash payment where such discounting is material.

Fund accounting

Restricted funds comprise monies raised for, or their use restricted to, a specific purpose, or contributions subject to donor imposed conditions.

Designated funds comprise monies set aside out of unrestricted general funds for specific future purposes or projects.

Unrestricted general funds represent those monies which are freely available for application towards achieving any charitable purpose that falls within the charity’s charitable objectives.

Leased assets

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the statement of financial activities in equal annual amounts over the lease term.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date or if appropriate at the forward contract rate. All differences are taken to income and expenditure through the statement of financial activities.

Taxation

SCI is a UK registered charity and, therefore, is not liable to income tax or corporation tax on income derived from its charitable activities, as it falls within the various exemptions available to registered charities.

SCI Business Limited passes all its taxable profits as Gift Aid to the Society in accordance with an agreed Deed of Covenant.

28 SCI ANNUAL REPORT AND ACCOUNTS

PRINCIPAL ACCOUNTING POLICIES

Custodian arrangements

The Society acts as Custodian Trustee for the SCI Benevolent Fund and Rideal Trust. The financial results of these two charities are consolidated into SCI’s accounts and full accounts for the trust funds are produced in note 22 in compliance with Charity Commission guidelines.

Financial instruments

The charity only holds basic financial instruments as defined in FRS 102. The financial assets and financial liabilities of the charity and their measurement basis are as follows:

Financial assets – other debtors are basic financial instruments and are debt instruments measured at amortised cost. Prepayments are not financial instruments.

Cash at bank – classified as a basic financial instrument and is measured at face value.

Financial liabilities – accruals and other creditors are financial instruments, and are measured at amortised cost.

29

SCI ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS

Year to 31 December 2020

1 INCOME FROM DONATIONS AND LEGACIES

INCOME FROM DONATIONS AND LEGACIES INCOME FROM DONATIONS AND LEGACIES
Unrestricted
funds
£’000
Donations and legacies
—		 Restricted
funds
£’000		 2020
Total
funds
£’000
Donations and legacies — — —
2020 Total funds — — —
Unrestricted
funds
£’000
Donations and legacies
1		 Restricted
funds
£’000		 2019
Total
funds
£’000
Donations and legacies 1 2 3
2019 Total funds 1 2 3

CONTRIBUTIONS FROM VOLUNTEERS

Members of SCI, its trustees, committees and many other volunteers make major practical contributions to SCI’s meetings, publications and other operations as well as to its overall governance. The trustees consider that there is no objective way of putting a financial value of this effort and therefore, in accordance with the guidance provided in the Charities SORP FRS 102, the value of volunteer time is not recognised in these accounts. However, Trustees wish to record their gratitude to these volunteers (and in many cases their employers) for this considerable and essential contribution.

2 INCOME FROM CHARITABLE ACTIVITIES

INCOME FROM CHARITABLE ACTIVITIES
Unrestricted funds
2020
£’000		 2019
£’000
Conferences 89 549
Publications 1,943 1,991
Members subscriptions 152 146
2,184 2,686

3 INCOME FROM OTHER TRADING ACTIVITIES

INCOME FROM OTHER TRADING ACTIVITIES
Unrestricted funds
2020
Total
funds
£’000		 2019
Total
funds
£’000
Commercial trading operations 66 178
Letting and licensing ofpremises 342 514
408 692

30 SCI ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS Year to 31 December 2020

4 INCOME FROM INVESTMENTS

INCOME FROM INVESTMENTS
Unrestricted
funds
£’000		 Restricted
funds
£’000		 2020
Total
funds
£’000
Income from listed investments 143 45 188
Interest receivable 3 — 3
2020 Total funds 146 45 191
Unrestricted
funds
£’000		 Restricted
funds
£’000		 2019
Total
funds
£’000
Income from listed investments 124 39 163
Interest receivable 8 — 8
2019 Total funds 132 39 171

5 EXPENDITURE ON RAISING FUNDS

EXPENDITURE ON RAISING FUNDS
Unrestricted funds
2020
£’000		 2019
£’000
Commercial trading costs 56 229
Investment management costs 32 33
88 262

6 EXPENDITURE ON CHARITABLE ACTIVITIES

EXPENDITURE ON CHARITABLE ACTIVITIES
Unrestricted
funds
£’000		 Restricted
funds
£’000		 2020
Total
funds
£’000
CONFERENCES
. Direct costs 201 — 201
. Support costs(note 8) 193 — 193
394 — 394
PUBLICATIONS
. Direct costs 341 — 341
. Support costs(note 8) 278 — 278
619 — 619
MEMBERSHIP ACTIVITIES
. Direct costs		 1,101 — 1,101
. Support costs (note 8) 802 — 802
AWARDS, BURSARIES AND SCHOLARSHIPS 1,903 — 1,903
. Grants payable (note 7) — 77 77
. Other direct costs 1 — 1
. Support costs (note 8) 39 — 39
40 77 117
2020 Total funds 2,956 77 3,033

SCI ANNUAL REPORT AND ACCOUNTS 31

NOTES TO THE ACCOUNTS

Year to 31 December 2020

6 EXPENDITURE ON CHARITABLE ACTIVITIES (CONTINUED)

EXPENDITURE ON CHARITABLE ACTIVITIES (CONTINUED)
Unrestricted
funds
£’000
Restricted
funds
£’000		 2019
Total
funds
£’000
CONFERENCES
. Direct costs 587 — 587
. Support costs (note 8) 353 — 353
940 — 940
PUBLICATIONS
. Direct costs 334 — 334
. Support costs (note 8) 280 — 280
614 — 614
MEMBERSHIP ACTIVITIES
. Direct costs 1,025 — 1,025
. Support costs (note 8) 748 — 748
1,773 — 1,773
AWARDS, BURSARIES AND SCHOLARSHIPS
. Grants payable (note 7) — 55 55
. Other direct costs 6 1 7
. Support costs (note 8) 53 — 53
59 56 115
2019 Total funds 3,386 56 3,442

7 GRANTS PAYABLE

GRANTS PAYABLE

2020
£’000
2019
£’000
Awards, bursaries and scholarships to individuals 77 55
GRANTS PAYABLE TO INDIVIDUALS COMPRISED:
2020
Number
2019
Number
Awards of £1,000 or more 3 7
Awards of up to £1,000 7 30
Total number ofgrants awarded 10 37

Grants which have been agreed internally, but for which no legal or constructive obligation existed at 31 December 2020 and thus not accrued in these accounts totalled £nil (2019 - £nil)

32 SCI ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS

Year to 31 December 2020

8 SUPPORT COSTS

Basis of
allocation		 Con-
ferences
£’000		 Publications
£’000		 Member-
ship
activities
£’000		 Awards,
bursaries
and
scholar-
ships
£’000		 Total
2020
£’000
Finance Cost 62 105 337 25 529
IT and Human Resources Head count 13 17 45 1 76
Executive Office Head count 34 44 117 4 199
Facilities Management and Shared
Premises		 Floor space
and head
count		 79 104 276 9 468
Governance costs (note 9) Cost 5 8 27 — 40
2020 Total 193 278 802 39 1,312
Basis of
allocation		 Con-
ferences
£’000		 Publications
£’000		 Member-
ship
activities
£’000		 Awards,
bursaries
and
scholar-
ships
£’000		 Total
2019
£’000
Finance
Cost		 174 100 304 19 597
IT and Human Resources
Head count		 17 17 43 3 80
Executive Office
Head count		 44 45 111 9 209
Facilities Management and Shared
Premises
Floor space
and head
count		 106 111 270 22 509
Governance costs (note 9)
Cost		 12 7 20 — 39
2019 Total 353 280 748 53 1,434

9 GOVERNANCE COSTS

GOVERNANCE COSTS
Unrestricted funds
2020
£’000		 2019
£’000
Auditor’s remuneration 15 14
Trustees expenses 4 15

Legal and professional fees		 21 —
AGM and annual review — 10
40 39

10 NET (EXPENDITURE) AND NET MOVEMENT IN FUNDS THIS IS STATED AFTER CHARGING:

2020
£’000		 2019
£’000
AUDITOR’S REMUNERATION
- Statutory audit 15 14
- Other services 3 5
Depreciation 301 374
Operating lease rentals 2 6

SCI ANNUAL REPORT AND ACCOUNTS 33

NOTES TO THE ACCOUNTS Year to 31 December 2020

11 STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL STAFF COSTS DURING THE YEAR WERE AS FOLLOWS:

STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL
STAFF COSTS DURING THE YEAR WERE AS FOLLOWS:
2020
£’000		 2019
£’000
Wages and salaries 1,410 1,424
Social security costs 119 116
Other pension costs 106 105
Staff restructuring costs 15 —
Other 13 12
1,663 1,657

A salary sacrifice pension scheme was introduced during 2012. Under the scheme staff members can choose to sacrifice part of their gross salary. The amount sacrificed is paid into the individual’s pension plan directly by SCI, together with the associated employer’s national insurance saving.

The average number of employees during the year, analysed by function, was as follows:

2020
Number		 2019
Number
Conferences support 4 5
Membership support 15 12
Publications support 5 5
Administration and support 12 13
36 35

Of the total average monthly number of employees, 29 (2019 - 29) were full time and 7 were part time (2019 - 6).

The number of employees whose remuneration was £60,000 or more were as follows:

2020
Number		 2019
Number
Between £60,000 - £70,000 2 1
Between £70,000 - £80,000 1 —
Between £110,000 - £120,000 1 1
4 2

The key management personnel of the charity in charge of directing and controlling the charity and the group on a day-to-day basis comprise the trustees and the Chief Executive Officer. The total remuneration (including taxable benefits) and on-costs of the key management personnel for the year was £158,335 (2019 – £154,505). None of the trustees received any remuneration during the year (2019 – £nil).

34 SCI ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS

Year to 31 December 2020

12 TANGIBLE FIXED ASSETS

TANGIBLE FIXED ASSETS
Group and Charity Long
leasehold
premises
£’000		 Leasehold
improvements
£’000		 Assets in
the course
of
construction
£’000		 Furniture,
IT & other
equipment
£’000		 Total
£’000
COST
At 1 January 2020 3,400 2,171 17 1,422 7,010
Additions — — 68 69 137
Transfers — — (15) 15 —
Disposals — (71) — (3) (74)
At 31 December 2020 3,400 2,100 70 1,503 7,073
DEPRECIATION
At 1 January 2020		 729 751 — 929 2,409

Charge for the year		 24 132 — 145 301
Released on disposal — (53) — (3) (56)
At 31 December 2020 753 830 — 1,071 2,654
NET BOOK VALUE
At 31 December 2020		 2,647 1,270 70 432 4,419
At 31 December 2019 2,671 1,420 17 493 4,601

At 31 December 2020 the Society was committed to a further £nil in relation to assets in the course of construction that is not accrued in these accounts (31 December 2019 – £nil).

Group and Charity Leasehold
premises
£’000		 Leasehold
improvements
£’000		 Assets in
the course
of
construction
£’000		 Furniture,
IT & other
equipment
£’000		 Total
£’000
COST
At 1 January 2019		 3,400 2,127 341 1,677 7,545

Additions		 — 44 17 132 193
Transfers — — (341) 341 —
Disposals — — — (728) (728)
At 31 December 2019
DEPRECIATION		 3,400 2,171 17 1,422 7,010
At 1 January 2019 704 623 — 1,436 2,763
Charge for the year 25 128 — 221 374

Released on disposal		 — — — (728) (728)
At 31 December 2019
NET BOOK VALUE
At 31 December 2019		 729 751 — 929 2,409
2,671 1,420 17 493 4,601
At 31 December 2018 2,696 1,504 341 241 4,782

SCI ANNUAL REPORT AND ACCOUNTS

35

NOTES TO THE ACCOUNTS

Year to 31 December 2020

13 INVESTMENTS

GROUP AND CHARITY 2020
£’000		 2019
£’000
LISTED INVESTMENTS AT MARKET VALUE
Market value at 1 January 7,407 6,197
Additions at cost 936 8,694
Disposal proceeds (1,332) (8,064)
Realised (losses)gains (39) 359
Disposals at opening book value (1,371) (7,705)
Unrealisedgains 434 221
Market value at 31 December 7,406 7,407
Cash held by investment manager for re-investment 172 26
7,578 7,433
HISTORICAL COST OF LISTED INVESTMENTS: 6,780 7,185

At 31 December, listed investment at market value comprised the following:

2020
£’000		 2019
£’000
Fixed income 1,072 1,138
Equities 5,360 5,219
Alternatives 974 1,050
7,406 7,407

At 31 December 2020 listed investments included no individual holdings deemed material when compared with the overall portfolio valuation (including cash held by the investment manager) as of that date (2019 – no holdings deemed material).

Investment in subsidiary

SCI owns 100% of the share capital of SCI Business Limited, a company incorporated in England and Wales, Company Registration Number 02994541. The investment in the subsidiary is held at cost on the charity’s balance sheet.

The main activities of the company are advertising in SCI’s publications and the hiring of meeting rooms. The company donates all its taxable profits to SCI under the Gift Aid scheme. The net assets of the subsidiary at 31 December 2020 are £100 represented in full by the share capital owned by SCI.

36 SCI ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS Year to 31 December 2020

13 INVESTMENTS (CONTINUED)

A summary of the subsidiary’s financial results for the year is provided below:

INVESTMENTS (CONTINUED)
A summary of the subsidiary’s financial results for the year is provided below:		 INVESTMENTS (CONTINUED)
A summary of the subsidiary’s financial results for the year is provided below:		 INVESTMENTS (CONTINUED)
A summary of the subsidiary’s financial results for the year is provided below:

2020
£’000		 2019
£’000
SALES
Advertising in Chemistry and Industry 2 3
Room hire and associated services 72 173
74 176
COSTS (INCLUDING SCI SERVICE CHARGES)
Advertising in Chemistry and Industry 1 1
Room hire and associated services 26 123
Accounting and general administration 8 9
35 133
Profit for the year before Gift Aid 39 43
Gift Aid to SCI (39)
(43)
Netprofit for theyear — —
A summary of the subsidiary’s financial position as at 31 December is provided below: 2020
£’000		 2019
£’000
BALANCE SHEET
Current assets 82 215
Current liabilities (82) (215)
Net assets — —
REPRESENTED BY:
Share Capital		 — —

Profit and loss account		 — —
— —
DEBTORS Group
2020
£’000		 Group
2019
£’000		 Charity
2020
£’000		 Charity
2019
£’000
Trade debtors 120 192 113 126
Amount due from subsidiary undertaking — — 68 201

Other debtors		 54 90 52 89
Prepayments and accrued income 751 775 751 775
925 1,057 984 1,191

A summary of the subsidiary’s financial position as at 31 December is provided below:

14 DEBTORS

SCI ANNUAL REPORT AND ACCOUNTS 37

NOTES TO THE ACCOUNTS

Year to 31 December 2020

15 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2020
£’000		 Group
2019
£’000		 Charity
2020
£’000		 Charity
2019
£’000
Trade creditors 66 146 66 146
Taxes and social security 289 33 289 33
Other creditors 306 198 293 184
Deferred income (see below) 178 339 178 339
839 716 826 702

Deferred income

Deferred income relates to annual subscriptions received in advance from SCI’s members, income from corporate partner agreements covering two years, rent invoiced in advance, income received in the year for conferences taking place next year and royalties relating to SCI’s journals invoiced in advance. Movements on the deferred income balance during the year were as follows:

Group
2020
£’000		 Group
2019
£’000		 Charity
2020
£’000		 Charity
2019
£’000
Deferred income at 1 January 339 356 339 356
Amounts released to income (322) (349) (322) (349)
Cash received in advance during the year 161 332 161 332
Deferred income at 31 December 178 339 178 339

16 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2020
£’000		 Group
2019
£’000		 Charity
2020
£’000		 Charity
2019
£’000
Licensee rent deposits 29 60 29 60
Membership income — 11 — 11
Conference income 28 — 28 —
Life composition fees (see below) 30 34 30 34
87 105 87 105

As at 31 December 2020 the charity held a total of £86,013 (2019 - £100,567) in eight separate Client Deposit Accounts at HSBC in relation to rent deposits. A deposit is legally required to be paid by each of SCI’s tenants on the commencement of their rental lease and is used as protection against the potential default of rent payment. The deposits are repayable at the end of the relevant lease term.

38 SCI ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS Year to 31 December 2020

16 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR (CONTINUED)

The life composition fees are in respect of income received from members who have opted for life membership of the Society. A life membership payment is released into the accounts as income over a period of nine years.


2020
£’000		 2019
£’000
At 1 January 38 43
Decrease inprovision (4)
(5)
At 31 December 34 38
Amounts falling due within one year 4 4
Amounts falling due after one year 30 34
34 38

17 DESIGNATED FUNDS

The income funds of the charity and the group include the following designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes:

GROUP AND CHARITY 2020
£’000		 2019
£’000
TANGIBLE FIXED ASSETS FUND
At 1 January 4,601 4,782
Movement during theyear (182)
(181)
At 31 December 4,419 4,601

The balance on the tangible fixed assets fund at 31 December 2020 represents the carrying value of SCI’s tangible fixed assets. The availability of these assets (which is primarily the leasehold interest in the property occupied by SCI) is essential to the day-to-day work of the charity and the group and as such, the value of these assets cannot be regarded as funds that would be realisable with ease, in order to meet future contingencies. As such, an amount equal to the net book value of the tangible fixed assets has been separated from the charity and the group’s general funds and held as a separate designated fund.

39

SCI ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS

Year to 31 December 2020

18 RESTRICTED FUNDS

The income funds of the charity include restricted funds comprising the following to be applied for specific purposes:

specific purposes:
GROUP AND CHARITY At 1
January
2020
£’000		 Income
£’000		 Expenditure
£’000		 Other
gains,
(losses)
& transfers
£’000		 At 31
December
2020
£’000
A J Banks 345 7 — 15 367
Commemoration 103 2 — 4 109
Leverhulme Prize 3 1 — — 4
Messel 107 2 (15) 13 107
Seligman 73 2 — 3 78
Benevolent 123 3 — 5 131
Rideal Trust 17 — — 1 18
S P S Andrew 1,363 27 (62) 59 1,387
ISEC 43 1 — 2 46
2,177 45 (77) 102 2,247
GROUP AND CHARITY At 1
January
2019
£’000		 Income
£’000		 Expenditure
£’000		 Other
gains &
(losses)
£’000		 At 31
December
2019
£’000
A J Banks 320 6 (2) 21 345
Commemoration 95 2 (1) 7 103
Leverhulme Prize 3 — — — 3
Messel 112 2 (29) 22 107
Seligman 71 2 (4) 4 73
Benevolent 113 2 — 8 123
Rideal Trust 17 2 (3) 1 17
S P S Andrew 1,269 24 (17) 87 1,363
ISEC 39 1 — 3 43
2,039 41 (56) 153 2,177

The main purpose of each fund is as follows:

40 SCI ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS Year to 31 December 2020

18 RESTRICTED FUNDS (CONTINUED)

19 ANALYSIS OF NET ASSETS BETWEEN FUNDS

GROUP General
funds
£’000		 Designated
funds
£’000		 Restricted
funds
£’000		 2020
Total
£’000
FUND BALANCES AT 31 DECEMBER 2020 ARE
REPRESENTED BY:
Tangible fixed assets — 4,419 — 4,419
Investments 5,331 — 2,247 7,578
Current assets 2,838 — — 2,838
Creditors: amounts falling due within one year (839) — — (839)
Creditors: amounts falling due after more than one
year (87) — — (87)
7,243 4,419 2,247 13,909
GROUP General
funds
£’000		 Designated
funds
£’000		 Restricted
funds
£’000		 2019
Total
£’000
FUND BALANCES AT 31 DECEMBER 2019 ARE
REPRESENTED BY:
Tangible fixed assets — 4,601 — 4,601
Investments 5,256 — 2,177 7,433
Current assets 2,549 — — 2,549
Creditors: amounts falling due within one year (716) — — (716)
Creditors: amounts falling due after more than one
year (105) — — (105)
6,984 4,601 2,177 13,762

SCI ANNUAL REPORT AND ACCOUNTS

41

NOTES TO THE ACCOUNTS

Year to 31 December 2020

19 ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED)

CHARITY General
funds
£’000		 Designated
funds
£’000		 Restricted
funds
£’000		 2020
Total
£’000
FUND BALANCES AT 31 DECEMBER 2020 ARE
REPRESENTED BY:
Tangible fixed assets — 4,419 — 4,419
Investments 5,331 — 2,247 7,578
Current assets 2,824 — — 2,824
Creditors: amounts falling due within one year (825) — — (825)

Creditors: amounts falling due after more than one
year (87) — — (87)
7,243 4,419 2,247 13,909
CHARITY General
funds
£’000		 Designated
funds
£’000		 Restricted
funds
£’000		 2019
Total
£’000
FUND BALANCES AT 31 DECEMBER 2019 ARE
REPRESENTED BY:
Tangible fixed assets — 4,601 — 4,601
Investments 5,256 — 2,177 7,433
Current assets 2,535 — — 2,535
Creditors: amounts falling due within one year (702) — — (702)

Creditors: amounts falling due after more than one
year (105) — — (105)
6,984 4,601 2,177 13,762

The total unrealised gains as at 31 December included in the above constitute movements on revaluation of the charity’s listed investments. Movements during the year were as follows:

2020
£’000		 2019
£’000
RECONCILIATION OF MOVEMENTS IN UNREALISED GAINS:
Total unrealised gains (losses) at 1 January 221 (188)
Add (less) in respect to disposals in the year 39 (359)

Add gains arising on revaluations in the year		 434 768
Total unrealisedgains at 31 December 434 221

20 COMMITMENTS UNDER OPERATING LEASES

At 31 December the group and charity were committed to total future minimum lease payments under non-cancellable operating leases as follows:

OFFICE EQUIPMENT OFFICE EQUIPMENT
2020
£’000		 2019
£’000
Within one year 1 2
Within two to fiveyears — 1
1 3

42 SCI ANNUAL REPORT AND ACCOUNTS

NOTES TO THE ACCOUNTS Year to 31 December 2020

21 RELATED PARTY TRANSACTIONS

SCI Business Limited is a wholly owned subsidiary of SCI. The subsidiary donates all profits to SCI in the form of a Gift Aid donation (see note 13).

The accounts do not include disclosure of any further transactions between SCI and SCI Business Limited. By virtue of SCI Business Limited being a wholly owned subsidiary undertaking of SCI, SCI is exempt from the requirement to disclose such transactions under section 33.1A of FRS 102.

None of the trustees (or any persons connected with them) received any remuneration during the year, but 12 of them were reimbursed a total of £4,068 in expenses (2019 – 17 were reimbursed £13,856) travel and meeting costs.

All of the trustees are members of the Society and as such, pay an annual membership subscription. The trustees do not benefit from any discounts in the subscription rates set by the Society for all other members.

22 REGISTERED TRUSTEES FUNDS AND JOINT ACCOUNTS

The results of the two charities below are consolidated into SCI’s accounts as restricted funds (see note 18).

SCI Benevolent Fund Registered Charity Number 277329 Rideal Trust Registered Charity Number 271558

SCI Benevolent Fund

The object of SCI’s Benevolent Fund is to provide financial relief to persons who are or have been members of the Society and to their spouses, children and dependents and to the widows/widowers, children and dependents of deceased members. The assets as at 31 December 2020 amounted to £131k.

The Rideal Trust

The object of the Rideal Trust is the general advancement of chemical science and, in particular, branches relating to the chemisorption, colloid science, interface science, catalysis and related topics. The Trust is jointly administered by SCI and the Royal Society of Chemistry. The activities of the Trust directly support the overall object of the Society which is to advance the science of applied chemistry and related sciences for the public benefit by providing information, granting bursaries, awards etc. The assets as at 31 December 2020 amounted to £18k.

SCI ANNUAL REPORT AND ACCOUNTS

43

NOTES TO THE ACCOUNTS

Year to 31 December 2020

22 REGISTERED TRUSTEES FUNDS AND JOINT ACCOUNTS (CONTINUED)

ALL RESOURCES ARE RESTRICTED BY THE TRUST DEEDS ALL RESOURCES ARE RESTRICTED BY THE TRUST DEEDS ALL RESOURCES ARE RESTRICTED BY THE TRUST DEEDS ALL RESOURCES ARE RESTRICTED BY THE TRUST DEEDS
BENEVOLENT FUND RIDEAL TRUST
2020
£’000		 2019
£’000		 2020
£’000		 2019
£’000
STATEMENT OF FINANCIAL ACTIVITIES
Donations — — — 2
Investment income 3 2 — —
Total income 3 2 — 2
Grants and awards — — — (3)
Other expenditure — — — —
Total expenditure — — — (3)
Net income (expenditure) 3 2 — (1)
Gains on investments 5 8 1 1
Income and movement in funds 8 10 1 —
Total funds brought forward 123 113 17 17
Total funds carried forward 131 123 18 17
BALANCE SHEET
Investments at market value 131 123 18 17
Total net assets 131 123 18 17

44 SCI ANNUAL REPORT AND ACCOUNTS

S o c i e t y o f C h e m i c a l I n d u s t r y YEARS A N N I V E R S A R Y 1 8 8 1 2 0 2 1

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