2022 SCI® ANNUAL REPORT & ACCOUNTS 


























## The SCI ® Community 





w h e r e  s c i e n c e  m e e t s  b u s i n e s s 



































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REPORTS Reference and administrative information ................................... 5 Trustees’ report.............................. 6 Independent auditor’s report ........ 18 ACCOUNTS Consolidated statement of financial activities ................... 23 Balance sheets ............................. 24 Consolidated statement of cash flows ............................... 25 Principal accounting policies ........ 26 Notes to the accounts .................. 30 

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2022 SCI[®] ANNUAL REPORT & 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 REPORTS 


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## W H E R E  S C I E N C E  M E E T S  B U S I N E S S 

## REFERENCE & ADMINISTRATIVE INFORMATION 

## **TRUSTEES** 

Mr H Swan (Chairman) Ms C Frankish (Honorary Treasurer) Dr D Allen Dr B Alston Ms L Bruce-Gardyne Dr N Challoner Dr C Crowhurst Dr G Fowler Dr J Hague Prof R Jones Dr G Mackey Dr S Malik Dr K Matthews Dr J Parker Dr J Sheridan Dr S Skerratt Prof J Sweeney Dr A Walker Prof A Waterhouse Dr T Wood **CHIEF EXECUTIVE OFFICER** Ms S E Todd 

No. **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 

## **PRINCIPAL OFFICE** 

## **SOLICITORS** 

14-15 Belgrave Square London SW1X 8PS 

Stone King LLP 16 St John’s Lane London EC1M 4BS 

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R E P O R T S A C C O U N T S 

## W H E R E  S C I E N C E  M E E T S  B U S I N E S S 

## TRUSTEES’ REPORT 

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 2022. The accounts have been prepared in accordance with the accounting policies set out on pages 26 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). 

## **OBJECTIVES & ACTIVITIES** 

SCI[®] was established in 1881 by forward thinking scientists, inventors and entrepreneurs to help support and accelerate the rate of adoption of chemistry and related science into industry for the benefit of society. During its 142 years SCI[®] ’s community has developed a multitude of new products and processes across 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 industry with academia, government and other key stakeholders to come together to solve some of the biggest global challenges facing society, whether that is developing scientific solutions to Climate Change or Health and Wellbeing issues. By harnessing its unique networks novel solutions are developed, new entrepreneurial businesses are supported, and ideas are developed into reality. 

SCI[®] ’s is a unique community, being multidisciplinary, bringing together people from different disciplines, businesses and backgrounds. A wide range of industry sectors are represented, including agrifood, energy and materials, pharmaceutical and consumer products. Members range from C suite and Heads of R&D and Innovation to marketing and business development professionals, patent lawyers and a wide range of scientists and engineers. Academics include chemists, biochemists, biologists, horticulturalists, environmental scientists, digital scientists and engineers. 

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. 

**SCI[®] ’s current strategy has focussed on SCI[®] committing to:** 


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1. 2. 3. 4.<br>Re c ognising &<br>Accelerating  Supporting the  Public<br>Rewarding Excellence<br>Innovation  Next Generation Outreach<br>in Innovation<br>Helping to promote and  Providing valuable  Recognising  Engaging the pubic<br>support the acceleration of  resources for members  individuals or  in the benefits of<br>emerging technologies into  including gaining new  teams who show  the application of<br>industry for the benefit  knowledge, personal  leadership in  science via events,<br>of society through the  development and  innovation or  publications, C&I<br>translation of knowledge via  training, and  who excel in  Magazine, SCIBlog,<br>conferences, publications and  support to build  the application  and the SCITalks Public<br>by building communities. new networks. of science. Lecture Programme.<br> ANNUAL REPORT & ACCOUNTS 2022<br>**----- End of picture text -----**<br>


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## **CHARITABLE PURPOSE** 

**As a charity SCI[®] is focussed on its charitable purpose and delivering impact for society. Our community is working to provide scientific solutions to the most difficult challenges facing society today. These range across Climate Change, Sustainability and Health and Wellbeing.** 

## ADDRESSING CLIMATE CHANGE 

SCI[®] ’s communities continue to work on addressing the energy transition, developing new forms of energy, new materials and recycling technologies. SCI[®] continues to publish cutting edge translational research in these areas and run conferences showcasing emerging technologies. 

## ADDRESSING HEALTH & WELLBEING 

SCI[®] ’s communities work on addressing a range of societal challenges across new therapies and treatments to address cancer and other major diseases. Health and sustainability of agriculture and food production is a key thematic area, as is new sustainable materials for consumer products, the everyday products we use every day. Throughout the year SCI[®] published emerging research that could be applied in these areas and ran a range of conferences and events addressing how emerging technologies are being adopted by industry. 

## CONVENING COLLABORATIONS 

Collaboration is a key underpin to accelerating scientific innovation and this was seen very clearly with the rapid development of the covid vaccines. One of SCI[®] ’s roles is to convene communities across multidisciplinary boundaries so that ideas can be developed, and new alliances formed to work together to solve societal challenges. 

Over the last 5 years SCI[®] has connected up over 900 companies with 500 Universities to help accelerate science out of the lab and into industrial products for society. 

## INVESTING IN THE NEXT GENERATION 

SCI[®] continues to have a strong focus on supporting and developing early and mid-career members. Activities are aimed at educating and developing this critical group of future scientists, inventors and entrepreneurs. Events covered a wide range of technology areas as well as functional areas covered in various training programmes, such as developing and managing a commercial intellectual property portfolio. During the year all programmes, such as the Mentoring Programme, continued to operate. 

## PUBLIC OUTREACH 

The SCITalks public lecture programme ran throughout 2022. The programme is an important part of SCI[®] ’s outreach programme, helping to educate and engage the public on the importance of science and industry for society. 

Talks given ranged from developing solutions to climate change, such as ‘Why we ignore climate change, and what we can do about it’ and ‘Agrifood science in a time of climate change’ to improving education around the science 


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R E P O R T S 

A C C O U N T S 

of everyday products, such as ‘A Century of Ingredients: The Chemistry Behind Beauty & Personal Care Products’. 

## DIVERSITY 

SCI[®] ’s charitable purpose is built on diversity – fostering collaboration, working with others with diverse backgrounds and experiences and supporting others for a common purpose are at the heart of the organisation’s Purpose. SCI[®] strives to ensure that these values are operating in action within the organisation. Over recent years we have sought to encourage a broadening of the age range of members within the organisation and encouraged gender diversity. The age demographic has moved over recent years as shown below and the representation of females in the Society has increased from 26.6% in 2016 to over 30% in 2022, with strong representation in the student member group, where 

50% are female. The widening of age ranges is shown in Figure 2. The Society supports the Daphne Jackson Trust and funds scholarships to assist those who are seeking to come back into the workplace. It has sought broader representation across its governance committees, including the Board of Trustees, and has recently elected its first female Honorary Treasurer. We will continue to focus on recognising and valuing diversity, and on making SCI[®] a welcoming environment for all. 

## CONTRIBUTIONS FROM VOLUNTEERS 

The Society continues to run a wide range of activities thanks to the incredible contribution of the many members and volunteers who support SCI[®] . We continue to recognise their important contribution and are grateful for their vision and passion, giving their time and expertise to the charity. 


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100%<br>26.6%<br>30%<br>80%<br>60%<br>40%<br>20%<br>Female<br>0% Male<br>2016 2022<br>FIGURE 1: Gender split<br>**----- End of picture text -----**<br>



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100%<br>80%<br>60% 18-25<br>26-35<br>40% 36-45<br>46-55<br>20%<br>56-65<br>0% 66+<br>2016 2022<br>**----- End of picture text -----**<br>


**FIGURE 2: Age demographic period 2016-2022** 





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50% of SCI [®] ’s award recipients were female and 50% male.<br>**----- End of picture text -----**<br>


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## **YEAR IN REVIEW** 

**2022 has been a transitional year as the organisation has emerged from the covid pandemic, with income across all areas growing throughout the year. Membership has continued to grow, publications have recovered, and conferences are stabilising back into a mix of in-person and online events.** 

## MEMBERSHIP 

Membership numbers have continued their steady growth, with year on year increases seen over the last 6 years resulting in a continued growth in membership income. 

Readership across all publications continues to grow, in particular in the digital media area, with increases of +35% on C&I and +23% of the online news. 

## CONFERENCES 

During the year all existing corporate partners continued their support for SCI[®] and renewed their memberships and we were delighted to welcome Givaudan, Innospec and Evotec as new partners during the year. SCI[®] ’s community of start-up and Small to Medium Enterprises (SMEs) also continues to grow with around 300 companies being active in the organisation. 

Throughout the year a number of regular SCI[®] conferences resumed, with 55 events being held during the year, across a range of topics covering our Societal Challenge areas of Climate Change, Health and Wellbeing and Sustainability. Delegate numbers held up but were down on 2021, reflecting the mix of conferences held. 

## PROPERTY 

SCI[®] now represents organisations with revenues in excess of $400 Billion, with research and development investments amounting to around $20 Billion per annum globally. 

The membership continues to grow in diversity. Members range from early career to mid-career and C-suite, over 30% are female and the average age of members is 47. 

Income from property has seen an increase as both longterm rentals and short-term room hire started to recover post covid. Two new tenancy agreements were put in place and rental of the conference facilities increased, although not recovering to pre-covid levels. 

## Property income increased by 62% from 2021. 

## **We are the largest R&D focussed community – with over $30bn invested in R&D globally.** 

## PUBLICATIONS 

The global pandemic significantly disrupted scientific research, and this translated into some income decline in publications income. During the year some income recovered although the picture was not consistent across SCI[®] ’s publishing portfolio. Competition is increasing, in particular as the market move to open access continues to accelerate. 

## AWARDS: RECOGNISING EXCELLENCE IN INNOVATION 

SCI[®] runs an extensive international Awards Programme, promoting and recognising excellence in innovation and industry. Scholarships and awards are presented to early and mid-career scientists from academia and industry, to support their personal development or to fund research. During the year over 120 awards were presented, including scholarships, fellowships and prizes to recipients in organisations across 5 countries. This was an increase on 2021 (90 awards). 50% of award recipients were female and 50% male. 

During 2022 one of the senior medals, the Lister Medal, was awarded to Sir Patrick Vallance, Chief Scientist to the UK Government, for his leadership during the covid pandemic. The Medal was awarded at the Royal Society of Edinburgh. 

## **FUTURE PLANS** 

## SCI[®] STRATEGY 

SCI[®] is in the process of developing a new strategy that will delivery our charitable objectives into the future. The previous strategic period of SCI[®] 2016 to 2021 focussed on developing the important underpins to accelerating innovation, such as establishing a strong membership base, ensuring a healthy govern- 

ance structure and investing in new capabilities such as the digital assets. The new strategy will build on this base and will be focussed on how we can accelerate developments across our identified societal challenge areas of Climate Change, Sustainability and Health and Wellbeing. 

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R E P O R T S A C C O U N T S 

## **GOVERNANCE, STRUCTURE & 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” or “BoT”). 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 in Table 1. 

## EXECUTIVE 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 and the delivery of the strategy and the day-to-day management of SCI[®] . The Chief Executive delegates to the line managers. Staff work to an operational plan and budget agreed with the Board, with progress reported to the trustees on a regular basis. The management and staff work within a framework of delegated authority. 

## GOVERNANCE STRUCTURE AND MANAGEMENT 

The SCI[®] is governed by the Board of Trustees, supported by governance committees, to provide advice and support to the Board and the CEO on aspects of the Society. Authority is delegated to the Chief Executive and her team to manage the strategy and operations of the Society. 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. 


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BOARD OF TRUSTEES TABLE 1<br>TRUSTEE APPOINTED/RESIGNED<br>Mr H Swan (Chair)<br>Ms C Frankish<br>Appointed July 2022<br>(Honorary Treasurer)<br>Dr D Allen<br>Dr B Alston<br>Mr D Birkett Resigned July 2022<br>Dr N Challoner<br>Dr C Crowhurst<br>Dr G Fowler<br>Dr J Hague<br>Prof R Jones<br>Dr G Mackey Appointed July 2022<br>Dr S Malik Appointed July 2022<br>Dr K Matthews<br>Dr J Parker Appointed July 2022<br>Dr J Sheridan Appointed July 2022<br>Prof J Mordue-Luntz Resigned July 2022<br>Prof J Sweeney<br>Prof K C Thompson Resigned July 2022<br>Dr A Walker<br>Prof A Waterhouse Appointed July 2022<br>Dr D Witty Resigned July 2022<br>Ms L Bruce-Gardyne<br>Dr S Skerratt<br>Dr T Wood<br>**----- End of picture text -----**<br>


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Trustees 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. 

Members are elected to governance committees via an annual election process. Co-opted positions are used to attract trustees with skills and talent to complement the trustees elected by the membership of the Society. Trustees are not remunerated for their services to the charity. 

SCI[®] pursues an overall policy of transparency and clear 

communication. Minutes are taken at all meetings and actions documented. SCI[®] communicates with its community through a range of publications, such as C&I, electronic newsletters, via the website and social media. 

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

## **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. 

## _**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 advises the Board and the Chief Executive on ways and means of enhancing the value of SCI[®] membership from the members’ perspective. 

## _**Careers Committee (CC)**_ 

The Careers Committee advises on services and initiatives to support careers members of SCI[®] . CC also manages the College of Scholars and oversees key awards. 

## _**Senior Appointments and Remuneration Committee (SARC)**_ 

SARC’s role is to appoint the Chief Executive and to approve overall pay increases for staff. 

## _**Nominations Committee (NC)**_ 

## _**Publications Committee (PC)**_ 

The Publications Committee is responsible for advising the Board on SCI[®] publishing activities and strategies. 

The Nominations Committee, chaired by the SCI[®] President, has the remit to oversee and strengthen the process of appointment or election of members to governance positions. 


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R E P O R T S 

A C C O U N T S 

## **FINANCIAL REVIEW** 

## RESULTS FOR THE YEAR 

Total income for the year amounted to £2,921k (2021 – £2,593k). The principal funding sources were: publications £1,745k (2021 – £1,681k), conferences £188k (2021 – £165k), investment income £235k (2020 – £225k), income from letting and licensing of premises £424k (2021 – £261k), commercial trading operations £116k (2021 – £24k); and member subscriptions of £197k (2021 – £163k). 

Total expenditure for the year amounted to £3,234k (2021 – £2,960k) due primarily to the resumption of the conference programme. Of the expenditure incurred in the year, £3,073k (2021 – £2,867k) representing 95% (2021 – 97%) 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 £161k (2021 – £93k) was in respect of trading activities, letting and hiring of premises and investment management. 

The net expenditure for the year before investment gains and losses was therefore £313k (2021 – net expenditure of £367k). 

After accounting for the net changes generated on the revaluation and disposal of listed investments of £1,213k (2021 – gains of £896k), the charity’s overall funds decreased by £1,526 (2021- increased by £529k). 

The Society’s wholly owned trading subsidiary, SCI[®] Business Limited, reported a profit before Gift Aid donations of £42k (2021 – £1k). The profit earned was payable to the parent charity under Gift Aid in order to assist in meeting its objectives. 

## **Total income for the year amounted to £2,921k** 


## **SCI[®] ’s TOTAL INCOME 2022** 

1,745k **Publications** 424k **Letting and licensing premises** 235k **Investments** 188k **Conferences** 197k **Member subscriptions** 116k **Commercial trading operations** 16k **Other** 

## 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 has conducted an initial 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. 

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£2,921k<br>**----- End of picture text -----**<br>



**In 2022, SCI[®] income  was £2,921k** 


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ISSUE  01   |   JANUARY 2023<br>EVOLUTIONDISORDERULTRASOUND ROUTE TO HIGH ENTROPY MATERIALS DEVELOPING LACTOSE INTOLERANCE MORE RESEARCH APPLICATIONS<br>ARE WE<br>READY FOR<br>A MAJOR<br>EVENT?<br>£1,745k<br>In 2022 total publication<br>revenue was £1,745k.<br>**----- End of picture text -----**<br>



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£313k<br>£367k<br>2022 2021<br>**----- End of picture text -----**<br>


**The net expenditure for the year before investment gains and losses was £313k.** 



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£3,234k<br>**----- End of picture text -----**<br>


**2022 total expenditure amounted to £3,234k was spent on charitable activities.** 



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£540k<br>**----- End of picture text -----**<br>


**In 2022 total revenue income from lettings and room hire was £540k.** 


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+£529k<br>£1.53M<br>2021<br>2022<br>The charity’s overall funds<br>decreased by £1.53M.<br>**----- End of picture text -----**<br>


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R E P O R T S 

A C C O U N T S 

## 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. 

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 and Audit 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 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. 

£7,178k **The market value of investments at 31 December 2022 was £7,178k.** 

£235k **Income from listed investments during the year amounted to £235k.** 

£1,213k **The net losses on the listed investments in 2022 were £1,213k.** 

-12.1% **The total return on the portfolio for the year to 31 December 2022 was -12.1%.** 

£4,219k **At the year end, the balance of the separate designated fund was £4,219k.** 

The market value of investments at 31 December 2022 was £7,178k compared with £8,433k at 31 December 2021. 

Income from listed investments during the year amounted to £235k (2021 – £225k) representing an income yield of approximately 2.78% (2021 – 2.86%). The net losses on the listed investments in 2022 were £1,213k (2021 – gains of £896k). The total return on the portfolio for the year to 31 December 2021 was -12.1% compared with the benchmark return of -10.2% as per the published ARC Steady Growth Charity Index (2021: 14.2% vs 12.3%). 

£2,195k 

**At 31 December 2022, funds totalling £2,195k comprised restricted funds that must be applied in accordance with the wishes of the donor.** 

Surplus cash is held in deposit accounts with the Society’s bankers, HSBC. 

## 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 £4,219k (2021 – £4,385k). 

At 31 December 2022, funds totalling £2,195k (2021 – £2,417k) comprised restricted funds that must be applied in accordance with the wishes of the donor. 

**14 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



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: 

- Funds being employed to invest in the infra- 

- 1. structure of SCI[®] , specifically in 2022 around internal maintenance and a continued programme of systems development. Capital expenditure outlay of £270k is budgeted for 2023. 

- A prudent fiscal policy should be adopted in 

- 2. order to ensure funds are not unduly depleted during a period where additional investment is required. 

- The members have a consensus to ensure the 

- 3. Society preserves the value of its capital in line with the long-term rate of inflation. In July 2008 FIAC agreed to maintain a minimum level of free reserves (i.e. unrestricted general funds which are freely available for application towards the general charitable objectives of the charity) at £6 million. The RPI inflation adjusted value in 2022 is £9.9 million based on an inflation rate of 66.4% over the past twelve and a half years. 

- A significant proportion of the Society’s net 

- 4. assets are represented by listed investments. Such assets are subject to fluctuations in market value due to the inherent 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. As such, the reserve requirement needs to take account of an element of unpredictability. 

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 16 December 2019 and remained dormant to 31 December 2022. 

## 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. 

## _European expansion_ 

At 31 December 2022, the charity held free reserves totalling £6.5m (2021 – £7.6m). While the actual level of free reserves is below the desired level, the trustees are satisfied with the level of free reserves, 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 now planned for this year. 

## GOING CONCERN 

There is a reasonable expectation that the Society of Chemical Industry has adequate resources to continue in 

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R E P O R T S 

A C C O U N T S 

## _**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 2022 are investments, which amounted to £132k. 

## _**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 2022 are investments, which amounted to £16k. 

## **The Rideal Trust is jointly administered by SCI[®] and the Royal Society of Chemistry.** 

## RISK MANAGEMENT 

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

- select suitable accounting policies and then apply them consistently; 

- observe the methods and principles in 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 UK and Republic of Ireland (FRS 102); 



**----- Start of picture text -----**<br>
Sir Eric Keightley Rideal Credit: NPC, by Hills & Saunders, Creative Commons<br>**----- End of picture text -----**<br>




**16 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



- make judgements and estimates that are reasonable and prudent; 

- state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts; and 

- prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue in operation. The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the accounts comply with the 

Charities Act 2011, applicable Charity (Accounts and Reports) Regulations and the provisions of the charity and the group’s constitution. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. 

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: 24 May 2023_ 

**Chloe Frankish** 




**SCI[®] ANNUAL REPORT & ACCOUNTS 2022 | 17** 



R E P O R T S 

A C C O U N T S 

## W H E R E  S C I E N C E  M E E T S  B U S I N E S S 

## INDEPENDENT AUDITOR’S REPORT 

_Independent auditor’s report to the members and trustees of Society of Chemical Industry_ 

## OPINION 

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 2022 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:_ 

- give a true and fair view of the state of the group’s and of the parent charity’s affairs as at 31 December 2022 and of their income and expenditure for the year then ended; 

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and 

- have been prepared in accordance with the requirements of the Charities Act 2011. 

## **We conducted our audit in** 

## **accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.** 

## 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 require- 

ments. 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. 

## 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. 

**18 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



## 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: 

- the information given in the trustees’ report is inconsistent in any material respect with the accounts; or 

- sufficient accounting records have not been kept by the parent charity; or 

- the parent charity accounts are not in agreement with the accounting records and returns; or 

- we have not received all the information and explanations we require for our audit. 

## 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. 

## 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. 


**SCI[®] ANNUAL REPORT & ACCOUNTS 2022 | 19** 



R E P O R T S 

A C C O U N T S 

## _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: 

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; 

- We identified the laws and regulations applicable to the charity through discussions with key management and from our knowledge and experience of the charity sector; 

- We focused on specific laws and regulations which we considered may have a direct material effect on the accounts or the activities of the charity. These included but were not limited to the Charities Act 2011, Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable to the United Kingdom and Republic of Ireland (FRS 102) (effective 1 January 2019); and 

- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of key management and review of minutes of trustees’ meetings. 

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

- Making enquiries of key management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and 

- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. 

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

- Performed analytical procedures to identify any unusual or unexpected relationships; 

- Assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and 

- Investigated the rationale behind significant or unusual transactions. 

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

- Agreeing accounts disclosures to underlying supporting documentation; 

- Reading the minutes of meetings of trustees; and 

- Enquiring of as to actual and potential litigation and claims. 



**20 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



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 non-compliance. 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. 


**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.** 

_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: 26 October 2023 


**SCI[®] ANNUAL REPORT & ACCOUNTS 2022 | 21** 



2022 SCI[®] ANNUAL REPORT & 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 ACCOUNTS 

**22 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



## W H E R E  S C I E N C E  M E E T S  B U S I N E S S 

## CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES 

**Year to 31 December 2022** 

|||**Unrestricted**|**Restricted**|**2022**|Unrestricted|Restricted|2021|
|---|---|---|---|---|---|---|---|
|||**funds**|**funds**|**Total funds**|funds|funds|Total funds|
|||**£’000**|**£’000**|**£’000**|£’000|£’000|£’000|
|**Income from:**||||||||
|Charitable activities|2|**2,130**|**—**|**2,130**|2,009|—|2,009|
|Other trading activities|3|**540**|**—**|**540**|285|—|285|
|Investments|4|**179**|**56**|**235**|172|53|225|
|Grant income (CJRS)||—|—|**—**|22|—|22|
|Other income||**16**|**—**|**16**|52|—|52|
|**Total income**||**2,865**|**56**|**2,921**|2,540|53|2,593|
|**Expenditure**||||||||
|Raising funds|5|**161**|**—**|**161**|93|—|93|
|Charitable activities|6|**3,086**|**(13)**|**3,073**|2,758|109|2,867|
|**Total expenditure**||**3,247**|**(13)**|**3,234**|2,851|109|2,960|
|**Net (expenditure) income**||||||||
|**before gains and losses on**||||||||
|**investments and transfers**||**(382)**|**69**|**(313)**|(311)|(56)|(367)|
|Transfers||**—**|**—**|**—**|(14)|14|—|
|**Net (expenditure) income**||||||||
|**before gains and losses on**||||||||
|**investments**||**(382)**|**69**|**(313)**|(325)|(42)|(367)|
|Net (losses) gains on the||||||||
|revaluation and disposal of||||||||
|listed investments|13|**(922)**|**(291)**|**(1,213)**|684|212|896|
|**Net (expenditure) income and**||||||||
|**net movement in funds**|10|**(1,304)**|**(222)**|**(1,526)**|359|170|529|
|**Reconciliation of funds:**||||||||
|Fund balances brought forward||||||||
|at 1 January||**12,021**|**2,417**|**14,438**|11,662|2,247|13,909|
|Fund balances carried forward||||||||
|at 31 December||**10,717**|**2,195**|**12,912**|12,021|2,417|14,438|



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. 

**SCI[®] ANNUAL REPORT & ACCOUNTS 2022 | 23** 



R E P O R T S A C C O U N T S 

## W H E R E  S C I E N C E  M E E T S  B U S I N E S S 

## BALANCE SHEETS 

## **31 December 2022** 

||**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|
|---|---|---|---|---|
|Notes|||||
|**Fixed assets**<br>Tangible assets<br>12<br>Investments<br>13<br>**Current assets**<br>Debtors<br>14<br>Cash at bank and in hand<br>**Creditors**: amounts falling due<br>within one year<br>15<br>**Net current assets**<br>**Total assets less current liabilities**<br>**Creditors**: amounts falling due<br>after more than one year<br>16<br>**Total net assets**<br>**The funds of the group and charity:**<br>Unrestricted funds<br>Designated funds<br>17<br>General funds|||||
||**4,219**|4,385|**4,219**|4,385|
||**7,178**|8,433|**7,178**|8,433|
||**11,397**|12,818|**11,397**|12,818|
||||||
||**1,135**|928|**1,226**|935|
||**1,240**|1,458|**1,133**|1,435|
||**2,375**|2,386|**2,359**|2,370|
||||||
||**(681)**|(662)|**(665)**|(646)|
||**1,694**|1,724|**1,694**|1,724|
||**13,091**<br>14,542<br>**13,091**<br>14,542||||
||||||
||**(179)**<br>(104)<br>**(179)**<br>(104)||||
||**12,912**|14,438|**12,912**|14,438|
||||||
||||||
||**4,219**|4,385|**4,219**|4,385|
||**6,498**|7,636|**6,498**|7,636|
||**10,717**|12,021|**10,717**|12,021|
|Restricted funds<br>18|**2,195**|2,417|**2,195**|2,417|
||**12,912**|14,438|**12,912**|14,438|



Approved by the trustees and signed on their behalf by: 


## **Honorary Treasurer** 

_Approved by the Board of Trustees on: 24 May 2023_ 

**24 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



W H E R E  S C I E N C E  M E E T S  B U S I N E S S 

## CONSOLIDATED STATEMENT OF CASH FLOWS 

**Year to 31 December 2022** 

|Notes|**2022**<br>**£’000**<br>2021<br>£’000|**2022**<br>**£’000**<br>2021<br>£’000|
|---|---|---|
||||
|**Cash flows from operating activities:**<br>Net cash (used in) operating activities<br>A<br>**Cash flows from investing activities:**<br>Investment income<br>Purchase of tangible fixed assets<br>Proceeds from the disposal of investments<br>Purchase of investments<br>**Net cash provided by (used in) investing activities**<br>**Change in cash and cash equivalents in the year**<br>**Cash and cash equivalents at 1 January**<br>B<br>**Cash and cash equivalents at 31 December**<br>B|||
||**(387)**<br>(438)||
||||
||||
||**235**<br>225||
||**(182)**<br>(283)||
||**1,090**<br>1,047||
||**(1,050)**<br>(1,105)||
||**93**<br>(116)||
||||
||**(294)**<br>(554)||
||**1,531**<br>2,085||
||**1,238**<br>1,531||



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

## **A Reconciliation of net income to net cash (used in) operating activities** 

||**2022**<br>**£’000**<br>2021<br>£’000|**2022**<br>**£’000**<br>2021<br>£’000|
|---|---|---|
||||
||||
|**Net (expenditure) income (as per the statement of financial activities)**<br>**Adjustments for:**<br>Depreciation charge<br>Loss on the disposal of fixed assets<br>Losses (gains) on investments<br>Investment income<br>(Increase) in debtors<br>Increase (decrease) in creditors<br>**Net cash (used in) operating activities**|**(1,526)**<br>529||
||||
||**348**<br>316||
||—<br>1||
||**1,214**<br>(896)||
||**(235)**<br>(225)||
||**(208)**<br>(3)||
||**20**<br>(160)||
||**(387)**<br>(438)||



## **B Analysis of changes in net debt** 

||**2022**<br>**£’000**<br>2021<br>£’000|
|---|---|
|||
|Cash at bank and in hand<br>Cash held by investment managers<br>**Total cash and cash equivalents**|**1,240**<br>1,458<br>**(2)**<br>73<br>**1,238**<br>1,531|



**SCI[®] ANNUAL REPORT & ACCOUNTS 2022 | 25** 



R E P O R T S 

A C C O U N T S 

## W H E R E  S C I E N C E  M E E T S  B U S I N E S S 

## PRINCIPAL ACCOUNTING POLICIES 

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 2022 with comparative information in respect of the year to 31 December 2021. 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. 

## 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: 

- the estimates of the useful economic lives of tangible fixed assets used to determine the annual depreciation charge; 

- the assumptions adopted by the trustees and management in determining the value of any designations required from the charity’s general unrestricted funds; 

- the basis on which support costs have been allocated across expenditure headings; and 

- assessing future income and expenditure flows for the purpose of assessing going concern (see below). 

## 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. 

## 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 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 2023, 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. 

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. 

## 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. 

**26 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



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. 

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. 

## **Life membership can be purchased based on 10 years standing and aged 60 or over on a sliding scale.** 

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. 


**SCI[®] ANNUAL REPORT & ACCOUNTS 2022 | 27** 



R E P O R T S 

A C C O U N T S 

## 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: 

- Expenditure on raising funds includes all expenditure associated with raising funds for the charity and the group. This includes the fees payable to the investment manager in connection with the management of the charity’s listed investments, the costs in connection with the management and upkeep of the charity’s premises, and other direct costs associated with the charity’s other trading activities. 

- Expenditure on charitable activities comprises expenditure in support of the charity and the group’s primary charitable purposes as described in the trustees’ report. This includes the costs associated with the servicing of members, costs in connection with hosting events and conferences for the Society’s beneficiaries, costs associated with the production of publications, grants and awards to individuals for endeavour in the fields of science, engineering and technology as well as bursaries and scholarships. 

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). 

## 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: 

_**Long leasehold property**_ by equal instalments over the life of the lease _**Leasehold improvements**_ ten to twenty years on cost _**Furniture, IT & other equipment**_ three to five years on cost 


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 

**28 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



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. 

## CASH AT BANK AND IN HAND 

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. 

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. 

## CUSTODIAN ARRANGEMENTS 

## CREDITORS AND PROVISIONS 

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. 

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. 



## 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. 

## _**Cash at bank –**_ 

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


## 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 

## _**Financial liabilities –**_ 

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


**SCI[®] ANNUAL REPORT & ACCOUNTS 2022 | 29** 



R E P O R T S 

A C C O U N T S 

## W H E R E  S C I E N C E  M E E T S  B U S I N E S S 

## NOTES TO THE ACCOUNTS 

## **1.** 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 

||Unrestricted funds|Unrestricted funds|
|---|---|---|
||**2022**<br>**£’000**<br>2021<br>£’000||
||**2022**<br>**£’000**||
||||
|Conferences<br>Publications|**188**<br>165||
||**1,745**|1,681|
|Members subscriptions|**197**|163|
||**2,130**|2,009|



## 3. 

## INCOME FROM OTHER TRADING ACTIVITIES 

||Unrestricted funds|
|---|---|
||**2022**<br>2021|
||**Total funds**<br>Total funds|
||**£’000**<br>£’000|
|Commercial trading operations<br>Letting and licensing of premises|**116**<br>24|
||**424**<br>261|
||**540**<br>285|



## 4. INCOME FROM INVESTMENTS 

||Unrestricted<br>funds<br>£’000<br>Restricted<br>funds<br>£’000<br>**2022**<br>**Total funds**<br>**£’000**|
|---|---|
|||
|||
|Income from listed investments<br>Interest receivable|178<br>56<br>**234**<br>1 <br>—<br>1|
||**179**<br>**56**<br>**235**|



||_Unrestricted_<br>_funds_<br>_£’000_<br>_Restricted_<br>_funds_<br>_£’000_<br>_2021_<br>_Total funds_<br>_£’000_|
|---|---|
|||
|||
|_Income from listed investments_<br>_Interest receivable_|_172_<br>_53_<br>_225_|
||_—_<br>_—_<br>_—_|
||_172_<br>_53_<br>_225_|



**30 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



## 5. EXPENDITURE ON RAISING FUNDS 

||Unrestricted funds|Unrestricted funds|
|---|---|---|
||**2022**<br>**£’000**<br>2021<br>£’000||
||||
|Commercial trading costs<br>Investment management costs|**127**<br>58||
||**34**|35|
||**161**|93|



## 6. 

## EXPENDITURE ON CHARITABLE ACTIVITIES 

||Unrestricted<br>funds<br>£’000<br>Restricted<br>funds<br>£’000<br>**2022**<br>**Total funds**<br>**£’000**|
|---|---|
|||
|Conferences<br>Direct costs<br>Support costs (note 8)<br>Publications<br>Direct costs<br>Support costs (note 8)<br>Membership activities<br>Direct costs<br>Support costs (note 8)<br>Awards, bursaries and scholarships<br>Grants payable (note 7)<br>Other direct costs<br>Support costs (note 8)|291<br>—<br>**291**<br>247<br>—<br>**247**|
||538<br>—<br>**538**|
||434<br>—<br>**434**<br>309<br>—<br>**309**|
||743<br>—<br>**743**|
||1,063<br>—<br>**1,063**<br>723<br>—<br>**723**|
||1,786<br>—<br>**1,786**|
||—<br>(24)<br>**(24)**<br>4 <br>11<br>**15**<br>15<br>—<br>**15**|
||19<br>(13)<br>**6**|
||**3,086**<br>**(13)**<br>**3,073**|



**SCI[®] ANNUAL REPORT & ACCOUNTS 2022 | 31** 



R E P O R T S A C C O U N T S 

## 6. EXPENDITURE ON CHARITABLE ACTIVITIES (CONTINUED) 

||_Unrestricted_<br>_funds_<br>_£’000_<br>_Restricted_<br>_funds_<br>_£’000_<br>_2021_<br>_Total funds_<br>_£’000_|
|---|---|
|||
|_Conferences_<br>_Direct costs_<br>_Support costs (note 8)_<br>_Publications_<br>_Direct costs_<br>_Support costs (note 8)_<br>_Membership activities_<br>_Direct costs_<br>_Support costs (note 8)_<br>_Awards, bursaries and scholarships_<br>_Grants payable (note 7)_<br>_Other direct costs_<br>_Support costs (note 8)_<br>_2021 Total funds_||
||_163_<br>_—_<br>_163_|
||_184_<br>_—_<br>_184_|
||_347_<br>_—_<br>_347_|
|||
||_305_<br>_—_<br>_305_|
||_225_<br>_—_<br>_225_|
||_530_<br>_—_<br>_530_|
|||
||_1,011_<br>_—_<br>_1,011_|
||_805_<br>_—_<br>_805_|
||_1,816_<br>_—_<br>_1,816_|
|||
||_—_<br>_109_<br>_109_|
||_—_<br>_—_<br>_—_|
||_65_<br>_—_<br>_65_|
||_65_<br>_109_<br>_174_|
||_2,758_<br>_109_<br>_2,867_|



## 7. 

## GRANTS PAYABLE 

||**2022**<br>**£’000**<br>2021<br>£’000|**2022**<br>**£’000**<br>2021<br>£’000|
|---|---|---|
||||
|Awards, bursaries and scholarships to individuals in the year|**31**|109|
|Drop of previous year provisions (awards not claimed)|**(44)**|—|
||**(13)**|109|
||||
|**Grants payable to individuals comprised:**|||
||**2022**<br>**Number**<br>2021<br>Number||
|Awards of £1,000 or more|**13**|13|
|Awards of up to £1,000<br>Total number of grants awarded|**13**|8|
||**26**|21|



Grants which have been agreed internally, but for which no legal or constructive obligation existed at 31 December 2022 and thus not accrued in these accounts totalled £nil (2021 - £nil). 

## 8. SUPPORT COSTS 

|Basis of<br>allocation|Conferences<br>£’000<br>Publications<br>£’000<br>Membership<br>activities<br>£’000<br>Awards,<br>bursaries<br>and<br>scholarships<br>£’000<br>**Total**<br>**2022**<br>**£’000**|Conferences<br>£’000<br>Publications<br>£’000<br>Membership<br>activities<br>£’000<br>Awards,<br>bursaries<br>and<br>scholarships<br>£’000<br>**Total**<br>**2022**<br>**£’000**|
|---|---|---|
|Finance<br>Cost|82<br>123<br>301<br>(3)|**503**|
|IT and Human Resources<br>Head count<br>Executive Office<br>Head count<br>Facilities Management and<br>Shared Premises<br>Floor space and<br>Head count|14<br>16<br>36<br>2<br>**68**<br>46<br>51<br>116<br>5<br>**218**<br>98<br>109<br>246<br>11<br>**464**|**68**|
|||**218**|
|Governance costs (note 9)<br>Cost|7<br>10<br>24<br>—|**41**|
||**247**<br>**309**<br>**723**<br>**15**|**1,294**|



**32 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



## 8. SUPPORT COSTS (CONTINUED) 

|_Basis of_<br>_allocation_|_Conferences_<br>_£’000_<br>_Publications_<br>_£’000_<br>_Membership_<br>_activities_<br>_£’000_<br>_Awards,_<br>_bursaries_<br>_and_<br>_scholarships_<br>_£’000_<br>_Total_<br>_2021_<br>_£’000_|_Conferences_<br>_£’000_<br>_Publications_<br>_£’000_<br>_Membership_<br>_activities_<br>_£’000_<br>_Awards,_<br>_bursaries_<br>_and_<br>_scholarships_<br>_£’000_<br>_Total_<br>_2021_<br>_£’000_|_Conferences_<br>_£’000_<br>_Publications_<br>_£’000_<br>_Membership_<br>_activities_<br>_£’000_<br>_Awards,_<br>_bursaries_<br>_and_<br>_scholarships_<br>_£’000_<br>_Total_<br>_2021_<br>_£’000_|_Conferences_<br>_£’000_<br>_Publications_<br>_£’000_<br>_Membership_<br>_activities_<br>_£’000_<br>_Awards,_<br>_bursaries_<br>_and_<br>_scholarships_<br>_£’000_<br>_Total_<br>_2021_<br>_£’000_|_Conferences_<br>_£’000_<br>_Publications_<br>_£’000_<br>_Membership_<br>_activities_<br>_£’000_<br>_Awards,_<br>_bursaries_<br>_and_<br>_scholarships_<br>_£’000_<br>_Total_<br>_2021_<br>_£’000_|
|---|---|---|---|---|---|
|_Finance_<br>_Cost_<br>_IT and Human Resources_<br>_Head count_<br>_Executive Office_<br>_Head count_<br>_Facilities Management and Shared_<br>_Floor space and_|_53_|_99_|_328_|_47_|_527_|
||_12_|_11_|_43_|_1_|_67_|
||_38_|_35_|_133_|_5_|_211_|
|||||||
|_Premises_<br>_head_<br>||||||
|_count_<br>_Governance costs (note 9)_<br>_Cost_|_78_|_74_|_280_|_11_|_443_|
||_3_|_6_|_21_|_1_|_31_|
||_184_|_225_|_805_|_65_|_1,279_|



## 9. 

## GOVERNANCE COSTS 

||Unrestricted funds|
|---|---|
||**2022**<br>**£’000**<br>2021<br>£’000|
|||
|Auditor’s remuneration<br>- current year<br>- prior year<br>Trustees’ expenses<br>Legal and professional fees|**19**<br>**—**<br>16<br>3|
||**7**<br>1|
||**—**<br>11|
||**26**<br>31|



## 10. NET (EXPENDITURE) AND NET MOVEMENT IN FUNDS 

## This is stated after charging: 

||**2022**|2021|
|---|---|---|
||**£’000**|£’000|
|Auditor’s remuneration|||
|- Statutory audit|**19**|19|
|- Other services|**—**|1|
|Depreciation|**348**|316|
|Operating lease rentals|**1**|1|



## 11. STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL 

Staff costs during the year were as follows: 

||**2022**<br>**£’000**<br>2021<br>£’000|
|---|---|
|||
|||
|Wages and salaries<br>Social security costs<br>Other pension costs<br>Other|**1,337**<br>1,252|
||**119**<br>107|
||**95**<br>97|
||**14**<br>12|
||**1,565**<br>1,468|



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: 

**SCI[®] ANNUAL REPORT & ACCOUNTS 2022 | 33** 



R E P O R T S 

A C C O U N T S 

## 11. STAFF COSTS AND REMUNERATION OF KEY MANAGEMENT PERSONNEL (CONTINUED) 

||**2022**<br>**Number**<br>2021<br>Number|
|---|---|
|||
|Conferences support<br>Membership support<br>Publications support<br>Administration and support|**4**<br>4|
||**11**<br>13|
||**5**<br>3|
||**11**<br>10|
||**31**<br>30|



Of the total average monthly number of employees, 23 (2021 - 23) were full time and 8 were part time (2021 - 7). The number of employees whose remuneration was £60,000 or more were as follows: 

|**2022**<br>**Number**<br>2021<br>Number|**2022**<br>**Number**<br>2021<br>Number|
|---|---|
|Between £60,000 - £70,000<br>Between £110,000 - £120,000|**3**<br>2|
||**1**<br>1|
||**4**<br>3|



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 employer’s national insurance and employer pension contributions) and on-costs of the key management personnel for the year was £155,312 (2021 – £164,584). None of the trustees received any remuneration during the year (2021 – £nil). 

## 12. TANGIBLE FIXED ASSETS 

||Long leasehold<br>premises<br>£’000<br>Leasehold<br>improvements<br>£’000<br>Assets in<br>the course<br>of construction<br>£’000<br>Furniture,<br>IT & other<br>equipment<br>£’000<br>**Total**<br>**£’000**|
|---|---|
|||
|||
|**Group and Charity**||
|||
|**Cost**<br>At 1 January 2022<br>Additions<br>Transfers<br>Disposals<br>**At 31 December 2022**<br>**Depreciation**<br>At 1 January 2022<br>Charge for the year<br>Released on disposal<br>**At 31 December 2022**<br>**Net book value**<br>**At 31 December 2022**<br>At 31 December 2021|3,400<br>2,249<br>33<br>1,666<br>**7,348**<br>—<br>129<br>30<br>23<br>**182**<br>—<br>1 <br>(7)<br>6 <br>—<br>—<br>—<br>—<br>(23)<br>**(23)**|
||3,400<br>2,379<br>56<br>1,672<br>**7,507**|
||778<br>962<br>—<br>1,223<br>**2,963**<br>25<br>142<br>—<br>181<br>**348**<br>—<br>—<br>—<br>(23)<br>**(23)**|
||803<br>1,104<br>—<br>1,381<br>**3,288**|
||**2,597**<br>**1,275**<br>**56**<br>**291**<br>**4,219**|
||2,622<br>1,287<br>33<br>443<br>4,385|



**34 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



## 13. INVESTMENTS 

||**2022**<br>**£’000**<br>2021<br>£’000|**2022**<br>**£’000**<br>2021<br>£’000|**2022**<br>**£’000**<br>2021<br>£’000|**2022**<br>**£’000**<br>2021<br>£’000|
|---|---|---|---|---|
|**Group and Charity**|||||
||||||
|**Listed investments at market value**<br>Market value at 1 January<br>Additions at cost<br>Disposal proceeds<br>Realised (losses) gains<br>Disposals at opening book value<br>Unrealised (losses) gains<br>Market value at 31 December<br>**Cash held by investment manager for re-investment**<br>**Historical cost of listed investments**:|||||
||**8,433**||7,406||
||**1,050**||1,105||
||**(1,090)**|||(1,047)|
||**(110)**|||61|
||**(1,200)**|||(986)|
||**(1,103)**||835||
||**7,180**<br>8,360||||
||**(2)**<br>73||||
||**7,178**||8,433||
||**6,764**<br>6,969||||



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

||**2022**<br>**£’000**<br>2021<br>£’000|**2022**<br>**£’000**<br>2021<br>£’000|
|---|---|---|
||||
|Fixed income<br>Equities<br>Alternatives|**1,066**<br>1,040||
||**4,970**|6,119|
||**1,144**|1,201|
||**7,180**|8,360|



At 31 December 2022 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 (2021– 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 2022 are £100 represented in full by the share capital owned by SCI[®] . 

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

**SCI[®] ANNUAL REPORT & ACCOUNTS 2022 | 35** 



R E P O R T S 

A C C O U N T S 

## 13. INVESTMENTS (CONTINUED) 

||**2022**<br>**£’000**<br>2021<br>£’000|**2022**<br>**£’000**<br>2021<br>£’000|
|---|---|---|
||||
|**Sales**<br>Advertising in Chemistry and Industry<br>Room hire and associated services<br>**Costs (including SCI service charges)**<br>Advertising in Chemistry and Industry<br>Room hire and associated services<br>Accounting and general administration<br>**Profit for the year before Gift Aid**<br>Gift Aid to SCI<br>**Net profit for the year**|||
||**2**|2|
||**114**|22|
||**116**|24|
||||
||**1**|1|
||**63**|15|
||**10**|7|
||**74**|23|
||**42**<br>1||
||**(42)**<br>(1)||
||**—**|—|



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

||**2022**<br>**£’000**<br>2021<br>£’000|
|---|---|
|||
|**Balance sheet**<br>Current assets<br>Current liabilities<br>**Net assets**<br>**Represented by**:<br>Share Capital<br>Profit and loss account|**149**<br>40<br>**(149)**<br>(40)<br>**—**<br>—<br>**—**<br>—<br>**—**<br>—<br>**—**<br>—|



## 14. DEBTORS 

||**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|
|---|---|---|---|---|
||||||
|Trade debtors<br>Amount due from subsidiary undertaking<br>Other debtors|**182**<br>116<br>**141**<br>100||||
||**—**|—|**133**|24|
||**27**|95|**27**|94|
|Prepayments and accrued income|**926**|717|**925**|717|
||**1,135**|928|**1,226**|935|



## 15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 

||**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|
|---|---|---|---|---|
||||||
|Trade creditors<br>Taxes and social security<br>Licensee rent deposits<br>Other creditors<br>Deferred income (see below)|**120**<br>57<br>**118**<br>57||||
||**62**|43|**62**|43|
||**—**|8|**—**|8|
||**223**|327|**209**|311|
||**276**|227|**276**|227|
||**681**|662|**665**|646|



**36 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



## 15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR (CONTINUED) 

## _**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**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|
|---|---|---|---|---|
||||||
|Deferred income at 1 January<br>Amounts released to income|**227**<br>178<br>**227**<br>178||||
||**(202)**|(158)|**(202)**|(158)|
|Cash received in advance during the year<br>Deferred income at 31 December|**251**|207|**251**|207|
||**276**|227|**276**|227|



## 16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 

|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|**Group**<br>**2022**<br>**£’000**<br>Group<br>2021<br>£’000<br>**Charity**<br>**2022**<br>**£’000**<br>Charity<br>2021<br>£’000|
|---|---|---|---|---|
|Licensee rent deposits<br>**131**<br>40<br>**131**<br>40<br>Membership income<br>**23**<br>36<br>**23**<br>36<br>Conference income<br>**—**<br>—<br>**—**<br>—|||||
|||36|**23**|36|
|||—|**—**|—|
|Life composition fees (see below)<br>**25**<br>28<br>**25**<br>28<br>**179**<br>104<br>**179**<br>104|**25**|28|**25**|28|
|||104|**179**|104|



As at 31 December 2022 the charity held a total of £131,214 (2021 - £47,749) 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. 

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. 

||**2022**<br>**£’000**<br>2021<br>£’000|
|---|---|
|||
|||
|At 1 January<br>Decrease in provision<br>At 31 December<br>Amounts falling due within one year<br>Amounts falling due after one year|**31**<br>34|
||**(3)**<br>(3)|
||**28**<br>31|
||**3**<br>3|
||**25**<br>28|
||**28**<br>31|



**SCI[®] ANNUAL REPORT & ACCOUNTS 2022 | 37** 



R E P O R T S A C C O U N T S 

## 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: 

||**2022**<br>**£’000**<br>2021<br>£’000|
|---|---|
|**Group and Charity**||
|**Tangible fixed assets fund**<br>At 1 January<br>Movement during the year<br>**At 31 December**||
||**4,385**<br>4,419|
||**(166)**<br>(34)|
||**4,219**<br>4,385|



The balance on the tangible fixed assets fund at 31 December 2022 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. 

## 18. RESTRICTED FUNDS 

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

||At 1 January<br>2022<br>£’000<br>Income<br>£’000<br>Expenditure<br>£’000<br>Other gains,<br>(losses)<br>& transfers<br>£’000<br>**At 31**<br>**December**<br>**2022**<br>**£’000**|At 1 January<br>2022<br>£’000<br>Income<br>£’000<br>Expenditure<br>£’000<br>Other gains,<br>(losses)<br>& transfers<br>£’000<br>**At 31**<br>**December**<br>**2022**<br>**£’000**|
|---|---|---|
||||
||||
|**Group and charity**|||
||||
|A J Banks<br>Commemoration|410<br>9 <br>(5)<br>(49)<br>122<br>3 <br>(6)<br>(14)|**365**|
|||**105**|
|Leverhulme Prize<br>Messel<br>Seligman<br>Benevolent<br>Rideal Trust<br>S P S Andrew|5 <br>—<br>—<br>(1)<br>**4**<br>120<br>3 <br>(4)<br>(15)<br>**104**<br>87<br>2 <br>(3)<br>(10)<br>**76**<br>146<br>3 <br>—<br>(17)<br>**132**<br>20<br>1 <br>(2)<br>(3)<br>**16**<br>1,456<br>34<br>38<br>(176)<br>**1,352**|**4**|
|||**104**|
|||**76**|
|||**132**|
|||**16**|
|||**1,352**|
|ISEC|51<br>1 <br>(5)<br>(6)|**41**|
||2,417<br>56<br>13<br>(291)|**2,195**|



||_At 1 January_<br>_2021_<br>_£’000_<br>_Income_<br>_£’000_<br>_Expenditure_<br>_£’000_<br>_Other gains &_<br>_(losses)_<br>_£’000_<br>_At 31_<br>_December_<br>_2021_<br>_£’000_|_At 1 January_<br>_2021_<br>_£’000_<br>_Income_<br>_£’000_<br>_Expenditure_<br>_£’000_<br>_Other gains &_<br>_(losses)_<br>_£’000_<br>_At 31_<br>_December_<br>_2021_<br>_£’000_|_At 1 January_<br>_2021_<br>_£’000_<br>_Income_<br>_£’000_<br>_Expenditure_<br>_£’000_<br>_Other gains &_<br>_(losses)_<br>_£’000_<br>_At 31_<br>_December_<br>_2021_<br>_£’000_|_At 1 January_<br>_2021_<br>_£’000_<br>_Income_<br>_£’000_<br>_Expenditure_<br>_£’000_<br>_Other gains &_<br>_(losses)_<br>_£’000_<br>_At 31_<br>_December_<br>_2021_<br>_£’000_|_At 1 January_<br>_2021_<br>_£’000_<br>_Income_<br>_£’000_<br>_Expenditure_<br>_£’000_<br>_Other gains &_<br>_(losses)_<br>_£’000_<br>_At 31_<br>_December_<br>_2021_<br>_£’000_|
|---|---|---|---|---|---|
|||||||
|||||||
|_Group and charity_||||||
|||||||
|_A J Banks_<br>_Commemoration_|_367_|_8_|_—_|_35_|_410_|
||_109_|_3_|_—_|_10_|_122_|
|_Leverhulme Prize_<br>_Messel_<br>_Seligman_<br>_Benevolent_<br>_Rideal Trust_<br>_S P S Andrew_|_4_|_—_|_—_|_1_|_5_|
||_107_|_3_|_(15)_|_25_|_120_|
||_78_|_2_|_—_|_7_|_87_|
||_131_|_3_|_—_|_12_|_146_|
||_18_|_—_|_—_|_2_|_20_|
||_1,387_|_33_|_(94)_|_130_|_1,456_|
|_ISEC_|_46_|_1_|_—_|_4_|_51_|
||_2,247_|_53_|_(109)_|_226_|_2,417_|



**38 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



## 18. RESTRICTED FUNDS (CONTINUED) 

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

The main purpose of each fund is as follows: 

- **A J Banks Fund** – supports research in the manufacture of foodstuffs and dissemination of science. 

- **Commemoration Fund** – supports the advancement of public education in science according to the objectives of SCI[®] . 

- **Leverhulme Prize Fund** – distributes travel bursaries. 

- **Messel Fund** – supports the advancement of scientific research and includes a permanent endowment fund of £97,000. 

- **Seligman Fund** – established for the delivery of any aspect of the food and beverage industries. 

- **Benevolent Fund** – assists current or former members of the Society who may be in financial need. 

- **Rideal Trust Fund** – is a fund jointly administered with the Royal Society of Chemistry, supporting the advancement of chemical science and colloids in particular. 

- **S P S Andrew Fund** – is a fund for lectures and research into neglected science. 

- **ISEC Fund** – is a restricted fund, relating to conferences on solvent extraction run by the International Committee for Solvent Extraction. 

## 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS 

||General<br>funds<br>£’000<br>Designated<br>funds<br>£’000<br>Restricted<br>funds<br>£’000<br>**2022**<br>**Total**<br>**£’000**<br>—<br>4,219<br>—<br>**4,219**<br>4,983<br>—<br>2,195<br>**7,178**<br>2,375<br>—<br>—<br>**2,375**<br>(681)<br>—<br>—<br>**(681)**<br>(179)<br>—<br>—<br>**(179)**<br>6,498<br>4,219<br>2,195<br>**12,912**<br>General<br>funds<br>£’000<br>Designated<br>funds<br>£’000<br>Restricted<br>funds<br>£’000<br>**2022**<br>**Total**<br>**£’000**<br>**—**<br>**4,219**<br>**—**<br>**4,219**<br>**4,983**<br>**—**<br>**2,195**<br>**7,178**<br>**2,359**<br>**—**<br>**—**<br>**2,359**<br>**(665)**<br>**—**<br>**—**<br>**(665)**<br>**(179)**<br>**—**<br>**—**<br>**(179)**<br>**6,498**<br>**4,219**<br>**2,195**<br>**12,912**<br>_General_<br>_funds_<br>_£’000_<br>_Designated_<br>_funds_<br>_£’000_<br>_Restricted_<br>_funds_<br>_£’000_<br>_2021_<br>_Total_<br>_£’000_<br>_—_<br>_4,385_<br>_—_<br>_4,385_<br>_6,016_<br>_—_<br>_2,417_<br>_8,433_<br>_2,386_<br>_—_<br>_—_<br>_2,386_<br>_(662)_<br>_—_<br>_—_<br>_(662)_<br>_(104)_<br>_—_<br>_—_<br>_(104)_<br>_7,636_<br>_4,385_<br>_2,417_<br>_14,438_|
|---|---|
|||
|**Group**||
|||
|**Fund balances at 31 December 2022 are**<br>**represented by:**<br>Tangible fixed assets<br>Investments<br>Current assets<br>Creditors: amounts falling due within one year<br>Creditors: amounts falling due after more than one year||
|||
|||
|||
|_Group_||
|||
|_Fund balances at 31 December 2021_<br>_are represented by:_<br>_Tangible fixed assets_<br>_Investments_<br>_Current assets_<br>_Creditors: amounts falling due within one year_<br>_Creditors: amounts falling due after more than one year_||
|||
|||
|||
|**Charity**||
|||
|**Fund balances at 31 December 2022 are**<br>**represented by:**<br>Tangible fixed assets<br>Investments<br>Current assets<br>Creditors: amounts falling due within one year<br>Creditors: amounts falling due after more than one year||
|||



**SCI[®] ANNUAL REPORT & ACCOUNTS 2022 | 39** 



R E P O R T S A C C O U N T S 

## 19. ANALYSIS OF NET ASSETS BETWEEN FUNDS (CONTINUED) 

||_General_<br>_funds_<br>_£’000_<br>_Designated_<br>_funds_<br>_£’000_<br>_Restricted_<br>_funds_<br>_£’000_<br>_2021_<br>_Total_<br>_£’000_|_General_<br>_funds_<br>_£’000_<br>_Designated_<br>_funds_<br>_£’000_<br>_Restricted_<br>_funds_<br>_£’000_<br>_2021_<br>_Total_<br>_£’000_|_General_<br>_funds_<br>_£’000_<br>_Designated_<br>_funds_<br>_£’000_<br>_Restricted_<br>_funds_<br>_£’000_<br>_2021_<br>_Total_<br>_£’000_|_General_<br>_funds_<br>_£’000_<br>_Designated_<br>_funds_<br>_£’000_<br>_Restricted_<br>_funds_<br>_£’000_<br>_2021_<br>_Total_<br>_£’000_|
|---|---|---|---|---|
||||||
|_Charity_|||||
||||||
|_Fund balances at 31 December 2021 are_<br>_represented by:_<br>_Tangible fixed assets_<br>_Investments_<br>_Current assets_<br>_Creditors: amounts falling due within one year_<br>_Creditors: amounts falling due after more than one year_|||||
||_—_|_4,385_|_—_|_4,385_|
||_6,016_|_—_|_2,417_|_8,433_|
||_2,370_|_—_|_—_|_2,370_|
||_(646)_|_—_|_—_|_(646)_|
||_(104)_<br>_—_<br>_—_<br>_(104) _||||
||_7,636_|_4,385_|_2,417_|_14,438_|



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: 

||**2022**<br>**£’000**<br>2021<br>£’000|**2022**<br>**£’000**<br>2021<br>£’000|
|---|---|---|
||||
||||
|**Reconciliation of movements in unrealised gains:**<br>Total unrealised gains (losses) at 1 January<br>(Less) add in respect to disposals in the year|**1,390**<br>626<br>**(110)**<br>61||
|||626|
|||61|
|(Less) add gains arising on revaluations in the year<br>Total unrealised gains at 31 December|**(864)**<br>703<br>**416**<br>1,390|703|
|||1,390|



## 20. COMMITMENTS UNDER OPERATING LEASES 

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

|cancellable operating leases as follows:|||
|---|---|---|
||Office equipment||
||**2022**<br>**£’000**<br>2021<br>£’000||
||||
||||
|Within one year|**—**<br>—||
|Within two to five years|**—**<br>**—**|—|
|||**—**|



## 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 eight of them were reimbursed a total of £4,716 in expenses (2021 – one was reimbursed £197) 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. 

**40 | SCI[®] ANNUAL REPORT & ACCOUNTS 2022** 



## 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 2022 amounted to £132,000. 

## _**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 2022 amounted to £16,000. 

## 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|
|---|---|---|---|
|||||
|||||
||**Benevolent Fund**||**Rideal Trust**|
||**2022**<br>**£’000**<br>2021<br>£’000<br>**2022**<br>**£’000**<br>2021<br>£’000|||
|||||
|**Statement of financial activities**<br>Donations<br>Investment income<br>**Total income**<br>Grants and awards<br>Other expenditure<br>**Total expenditure**<br>**Net income**<br>**(Losses) Gains on investments**<br>**Income and movement in funds**<br>**Total funds brought forward**<br>**Total funds carried forward**<br>**Balance sheet**<br>**Investments at market value**||||
||**—**|—|**—**<br>—|
||**3**|3|**1**<br>—|
||**3**|3|**1**<br>—|
||**—**<br>—<br>**(2)**<br>—|||
||**—**|—|**—**<br>—|
||**—**|—|**(2)**<br>—|
||**3**<br>3<br>**(1)**<br>—|||
||**(17)**<br>12<br>**(3)**<br>2|||
||**(14)**<br>15<br>**(4)**<br>2|||
||**146**<br>131<br>**20**<br>18|||
||**132**<br>146<br>**16**<br>20|||
|||||
||**132**<br>146<br>**16**<br>20|||
|**Total net assets**|**132**|146|**16**<br>20|



**SCI[®] ANNUAL REPORT & ACCOUNTS 2022 | 41** 




SCI[®] is a global organisation - connecting science with business. 

Society of Chemical Industry, 14/15 Belgrave Square, SW1X 8PS, London, UK **T:** +44 (0)20 7598 1500 **E:** membership@soci.org www.soci.org 

SCI[®] founded in London 1881 and in New York 1894 | Incorporated by Royal Charter 1907 | Registered as UK Charity 206883 Recognised as a not for profit organisation across the world | SCI[®] is a trademark of Society of Chemical Industry