ROYAL SOCIETY
OF CHEMISTRY
11
Trustees,
report
!Iri
2023
Vi
IY4 il Ul"
Financial review
Financial statements
CONTENTS
Pg-3 Pg-5 Pg-6 Pg-8 Pg-11 Pg-16
Pg-23 Pg-25
## Contents
## Why chemistry matters
|Contents
||||
|---|---|---|---|
|Why chemistry maters|3|Building and supporting our communities|16|
|Our charter and purpose|3|Building a strong membership community|16|
|We want to see a world where...|4|Recognising and supporting professional scientists|17|
|We will we get there by...|4|Prizes celebrating cutting-edge science and teamwork|18|
|Our community|5|Connecting our community|19|
|Our members|5|Celebrating reassociation to Horizon Europe|20|
|Our progress|6|Change Makers: supporting deep tech chemistry|21|
|Publishing|8|Chemists’ Community Fund|23|
|||The CCF in numbers|24|
|The road to an Open Access future|8|||
|Bridging the gap to Open Access|9|Chemistry for everyone|25|
|||Vision for science culture|25|
|ResearchGate partnership for greater reach|9|New resources to support disabled scientists|26|
|New, improved digital platform for RSC eBooks|10|£677k to tackle chemistry’s diversity problem|27|
|Metrics for impact|10|50 Chemistry Camps and 40,000 teachers trained across India|28|
|Making our science greener and more sustainable|11|Broadening Horizons – second cohort joins expanded programme|29|
|Tackling PFAS in waterways|11|Setting a benchmark for science teacher support|29|
|Designing the new UN science policy panel on chemicals|12|More teachers than ever accessing high-quality resources|30|
|Revolutionising the $125bn PLF industry|13|Challenging potentially damaging Welsh education policy|30|
|Sounding the alarm on indoor air quality|14|Financial review|31|
|Campaigns and collaborations|15|Financial statements|61|
Royal Society of Chemistry | Trustees’ report and financial statements 2023
2
Financial review
Financial statements
CONTENTS
Pg-6
Pg-9
Pg-20 Pg-22 Pg-25
Pg-27
Pg-4
Pg-17
Pg-5
## Why chemistry matters
Chemistry is the science of change. It helps us explore the world around us, and to design and make new medicines, fuels, advanced materials and so much more. Society uses these to protect and improve our health, to make life more sustainable, and uncountable other benefits. Chemistry also informs laws and regulations that keep us safe from harm, and shines light on where there’s more work to do. And it inspires wonder in people of all ages: the joy of understanding together how and why the elements of our world interact.
Our charitable work supports the entire chemical science community: scientists, technicians, teachers, students, entrepreneurs, and so many more people who use their understanding of and passion for chemistry to make the world a better place.
## **Our charter and purpose**
Our Royal Charter, first granted in 1848 by Queen Victoria, states that the object for which we are constituted is “the general advancement of chemical science and its application and for that purpose:
- to foster and encourage the growth and application of such science by the dissemination of chemical knowledge;
- to establish, uphold and advance the standards of qualification, competence and conduct of those who practise chemistry as a profession;
- to serve the public interest by acting in an advisory, consultative or representative capacity in matters relating to the science and practice of chemistry; and
- to advance the aims and objectives of members of the Society so far as they relate to the advancement of the science or practice of chemistry.”
Our modernised reflection of this in our strategy from 2021:
_we are here to help the chemical science community make the world a better place._
Royal Society of Chemistry | Trustees’ report and financial statements 2023
3
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Why chemistry matters
## **We want to see a world where...**
- chemical scientists have adapted, innovated and succeeded
- the culture in science is inclusive and enabling of everybody
- science infrastructure, funding, policy and regulation enables chemical scientists to drive forward new research and innovation
- people worldwide recognise, trust and understand the value of the chemical sciences
## **We will we get there by...**
- delivering impactful, accessible content in our journals, books and data products, and an excellent customer experience
- growing and supporting our membership to reflect the diversity of the chemical sciences
- communities to offer an excellent chemistry education to all, driving greater diversity and improving skills in the chemical sciences
- increasing the diversity of people choosing and fulfilling their potential in the chemical sciences for a truly inclusive community
- using our voice and influence to lead and facilitate positive change across the chemical sciences
Royal Society of Chemistry | Trustees’ report and financial statements 2023
4
Financial review Financial statements
CONTENTS
Pg-6 Pg-8
Pg-11 Pg-16 Pg-23 Pg-25
Pg-3
Pg-5
## Our community
We proudly include a broad and diverse set of people who draw on chemical knowledge, skills, experience and passion to make the world a better place, including people of all ages and backgrounds, across sectors and disciplines, all around the world.
The people that make up our global community have varied backgrounds, experiences and roles. Research and development scientists, entrepreneurs, innovators, manufacturers, analysts, teachers, technicians, parents, students, librarians, policy makers, funders and regulators all play their part in advancing the chemical sciences.
To help them do that, we are evolving and growing our networks and communities, to welcome even more people into our diverse, global and passionate membership. We’re offering more grants, professional development and volunteering opportunities than ever before, and connecting them with like-minded people to collectively help make the world a better place.
## Our members
Members are the core of our community, and the heart and soul of the Royal Society of Chemistry. We rely on them to collectively use their knowledge, skills, experience and passion to lead activities aligned with our strategy – whether that’s in publishing, education, professional standards, or strong public advocacy.
**Our President, Prof Gill Reid, looks back at 2023**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
5
Financial review
Financial statements
CONTENTS
Pg-6 Pg-9 Pg-17 Pg-20 Pg-22 Pg-25 Pg-27
Pg-4
Pg-5
## Our progress
**In helping the chemical science community make the world a better place**
Through sustained, collective effort, the chemical science community is making a difference to people and the planet. And we’re here to help. Throughout this document, we report on how the climate crisis and societal inequalities are shaping the decisions and actions we take.
## **A message from our CEO**
In celebrating a personal milestone – 30 years of working for the Royal Society of Chemistry – I have been reflecting on the changes in the organisation I have seen and led in that time. I am keenly aware of our dual responsibilities: serving our charter objectives today and transforming ourselves so that we can continue to do so tomorrow.
I am proud to say that, for both of these points, we are actively addressing them, and I am confident in our success in each.
Four years into our strategy we have focused on transformation and growth, inclusion and diversity, and sustainability, all in line with our stated priorities for education, membership, publishing, and voice and influence. We are celebrating growth in core strategic areas: our highestever membership figures, our highest engagement with the
teaching community, and a steadily growing proportion of research articles published open access, taking us further towards our intention to transition to 100% open access by 2028.
We have also built and exercised our influence for the benefit of chemistry and society. Our focus on sustainability supports our community’s greener future – driving enormous investment and collaboration from global industry and governments to tackling unsustainable polymers in liquid formulations (PLFs), as well as shaping UK research grant criteria through our sustainable laboratories programme, and playing a leading role in the approval and design of the United Nations science policy panel on chemicals and waste. And through considerable investment into our inclusion and diversity programmes – such as the perennially oversubscribed Broadening Horizons initiative to support industry experience and mentorship for minoritised ethnic students – we are making visible and valuable progress in making chemistry truly for everyone.
We monitor and report on all of these broad streams of work on a quarterly basis within our governance framework, and take future-looking decisions with confidence with reference to our refreshed approach to risk and assurance.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
6
Financial review
Financial statements
CONTENTS
Pg-6 Pg-9 Pg-17 Pg-20 Pg-22 Pg-25
Pg-27
Pg-4
Pg-5
## Our progress
Since launching our 2021-2025 strategy we have focused on our priorities for transformation and growth. This has included investment in technology to support the transition to open access and increasing our focus on customer experience along with digital and data capabilities. Our digital transformation programme has enabled a forwardlooking assessment of capabilities we will need to continue our transformation through 2026-2030, and the trustees and executive team are developing an updated strategy to enable this.
Underpinning all of this is a need to ensure our long-term financial resilience and the need to prioritise how we balance our income with our expenditure. To remain relevant and sustainable, like every organisation, we need to keep evolving in response to external factors, including economic and geopolitical uncertainty, with more rapid cycles of change and adaptation.
The core premise of our work is to support our community, inspire the next generation of chemical scientists and share knowledge, and for this we need a business model that supports all our work.
Diversifying where our income comes from and managing our resources and our costs are extremely important.
Over the next two years we will take a renewed approach to our estates strategy, following the successful lease negotiations for Burlington House, with a clear focus on our medium-long-term financial plans. We will be delivering our core programmes of work to ensure the long-term success of our publishing business, including our transition to open access, and continued support for our community. This includes securing strong and reliable future revenues streams, balanced with responsible financial management of our resources, in line with our purpose, vision and values.
Achieving a healthy balance between income and expenditure will make sure that the RSC is still confidently able to support and advance the chemical sciences for many years to come.
**Helen Pain** , CEO, Royal Society of Chemistry
Royal Society of Chemistry | Trustees’ report and financial statements 2023
7
Financial review
Financial statements
CONTENTS
Pg-6
Pg-9
Pg-17 Pg-20
Pg-22
Pg-25
Pg-4
Pg-5
Pg-27
## Publishing
## **The road to an Open Access future**
In 2022 we announced our intention to transition all our fully RSC-owned journals to Open Access by 2028. That journey has continued in 2023, with a number of agreements and partnerships, supporting our community around the world.
The growth of transformative agreements within the North America region includes multiple read and publish deals in the USA and new country deals in Mexico and Canada. This acceleration has been on the back of the US Government’s Open Access mandate by 2026 and our own personal Open Access commitments. The number of deals has grown rapidly within the region every year since our first deal with Massachusetts Institute of Technology, signed in 2018, with 28 new deals signed in 2023.
We also announced a new Read & Publish agreement with CzechELib consortium, a department of the Czech Republic’s National Library of Technology. The three-year agreement will provide CzechELib member institutions access to view and publish in the complete portfolio of Royal Society of Chemistry journals, both hybrid and gold OA, without any limits.
_“We are excited to have this chance to support university researchers in publishing open access with RSC. This both extends the reach of the research that is being done on campus, and also helps our researchers comply with open access requirements for projects that receive federal funding.”_
**MOLLY BEISLER, DIRECTOR OF COLLECTIONS AND DISCOVERY, UNIVERSITY OF NEVADA, RENO**
_“CSU Libraries is excited to continue supporting sustainable publishing models with our latest open access agreement with the Royal Society of Chemistry. By engaging in transformative agreements, we hope to accelerate the transition to fully open access publishing, which promotes open knowledge sharing and equity in scholarly publishing.’_
**KHALEEDAH THOMAS, COPYRIGHT AND SCHOLARLY COMMUNICATION LIBRARIAN, COLORADO STATE UNIVERSITY**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
8
Financial review
Financial statements
CONTENTS
Pg-6 Pg-9
Pg-20
Pg-22
Pg-25
Pg-27
Pg-4
Pg-17
Pg-5
## Publishing
## **Bridging the gap to Open Access**
2023 saw successful negotiations with the German consortium TIB, resulting in their first truly transformative Open Access agreement, which delivers shared goals of equity for 77 German institutions, a community approach and universal OA for authors.
Beginning in 2024, the four-year agreement bridges the gap to 2028 when the Royal Society of Chemistry plans to transition all its fully RSC-owned journals to Open Access. The RSC Platinum consortia model in Germany is a new community Open Access model, co-designed by the RSC and TIB, enabling participation from all academic and research institutions, including non-publishing institutions.
## **ResearchGate partnership for greater reach**
In support of making our research available to the widest possible audience, we signed a new partnership with ResearchGate that expands the reach of our open access (OA) portfolio. The new agreement will see RSC journals benefit from an enhanced presence on ResearchGate’s new offering, ‘Journal Home’.
ResearchGate is a professional network for researchers, with chemistry specialists being one of their largest audiences. Both parties believe that this collaboration has the potential to accelerate growth in both readership of, and submissions, for our OA journals.
_“We know that ResearchGate is one of the most used platforms within academia and so we hope that by making the OA content in our new OA journals available directly on ResearchGate that this will facilitate ease of access to this content across the globe._
_“We look forward to seeing the usage data from ResearchGate and anticipate that we will reach a broader network of researchers – not only chemists – through this partnership.”_
**SARA BOSSHART, HEAD OF OPEN ACCESS, ROYAL SOCIETY OF CHEMISTRY**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
9
Financial review
Financial statements
CONTENTS
Pg-9
Pg-20
Pg-22
Pg-25
Pg-27
Pg-4
Pg-17
**----- Start of picture text -----**
Pg-5
**----- End of picture text -----**
Pg-6
## Publishing
## **New, improved digital platform for RSC eBooks**
In 2023 we unveiled a new publishing platform for eBooks that will enhance users’ digital experience.
The new platform was created by Silverchair, the leading independent platform partner for scholarly and professional publishers. The platform will undergo continuous improvements based on customer feedback, including a new portal for librarians. The introduction resulted from months of collaboration and testing, includes a number of improvements from its predecessor and will change the way researchers interact with our eBooks.
## **Metrics for impact**
Our focus remains on helping the chemical science community make a positive impact. We want to show you the bigger picture so researchers can fully understand how we support them. The metrics we track emphasise the volume, reach and quality of their content, and how we are committed to building trust with the community we serve.
We publish thousands of articles every year so that we can highlight the very best science has to offer. We elevate this impactful and inspiring research in our journal portfolio, which is always growing to meet the needs of our community. None of this is possible without our diverse author and reviewer network who contribute to our transparent publication process – something we know is vital for the future of publishing.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
10
Financial review
Financial statements
CONTENTS
Pg-6
Pg-9
Pg-20
Pg-22
Pg-25
Pg-27
Pg-4
Pg-17
Pg-5
## Making our science greener and more sustainable
Chemical scientists have a vital and central role to play in reducing the environmental and health impacts of chemicals in daily life, while also making sure society continues to reap the benefits of new technologies. Throughout 2023 we continued our efforts to support the chemistry community to make its processes and outputs greener and safer – as well as high profile campaigns to directly influence decision-makers in the UK and around the world.
The campaign launched to an initial flurry of high profile media coverage including the BBC, Guardian, Times and Daily Mail, as well as a steady drip of coverage thereafter. Our community also sent hundreds of letters to MPs highlighting our calls, and we worked with parliamentarians across the UK nations to secure several parliamentary questions, prompting government responses and putting further pressure on decision-makers.
## **Tackling PFAS in waterways**
Per- and polyfluoroalkyl substances, or PFAS, are just one class of so-called “forever chemicals” that persist in waterways, soil and animals. They confer useful properties on products like non-stick cookware and waterproof clothing, but mounting evidence links them to a range of human health concerns including cancer.
We worked with our member community experts and came to the conclusion that UK safety limits for PFAS in water are not stringent enough. In a new campaign in October we called for the UK government to reduce allowable caps on PFAS in water, create a national inventory for PFAS reporting and impose and enforce stricter industrial regulation.
## **Our PFAS campaign >**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
11
**Financial review**
**Financial statements**
**CONTENTS**
**Pg-6**
**Pg-9**
**Pg-20**
**Pg-22**
**Pg-25**
**Pg-27**
**Pg-4**
**Pg-17**
**Pg-5**
## Making our science greener and more sustainable
## **Designing the new UN science policy panel on chemicals**
After years of advocacy from the RSC and other organisations, the UN approved a new science-policy panel to address the growing and critical global issue of chemicals, waste and the prevention of pollution. In 2023 we have played a significant role in the early design stages of that panel, ensuring a global diversity of independent scientists is strongly represented.
In February, we participated in the first in-person meeting of the United Nations Environment Program (UNEP) Open Ended Working Group 1 (OEWG1), held in Bangkok. We also responded to key UN consultations in the intersessional
period over the summer, attended the UN’s International Convention on Chemicals Management in September, and played a leading role in OEWG2 in Nairobi in December, as a UNEP-accredited organisation providing scientific expertise, ideas and strategic input on the design and operation of the panel.
Our written statements were informed by discussions with our newly formed ‘RSC Engagement Group on the SPP’ bringing together RSC with other chemical society representatives from around the international community. We supplied connections with our Pan Africa Chemistry Network to ensure scientists from the Global South are directly involved and contributing to the work of the panel from 2025 and beyond.
Financial review
Financial statements
CONTENTS
Pg-6
Pg-9
Pg-17 Pg-20 Pg-22 Pg-25
Pg-27
Pg-4
Pg-5
## Making our science greener and more sustainable
## **Revolutionising the $125bn PLF industry**
Millions of everyday household products contain polymers in liquid formulations (PLFs) - but 36 million tonnes’ worth are made but not recovered every year. To tackle this unsustainable problem, we convened a cross-sector task force in 2021 - including global chemical leaders like Unilever, BASF and Walgreens Boots Alliance - and in 2023 we . published our roadmap for sustainable polymers in liquid formulations
The roadmap provides a blueprint for the industry-wide change needed to make PLFs more sustainable and sets a mission for global industry to develop biodegradable PLFs and advance circular economy infrastructure for these chemicals by 2030, which will set a course for the transition of the $125 billion sector to become sustainable by 2040. A launch event in July in Burlington House, London, included a pair of panel discussions for invited guests and online viewers, broadcast live on YouTube and LinkedIn.
- _“As the global population grows, demand for PLFs will only increase – and our industry needs to take the transition to a sustainable PLFs ecosystem seriously. This means moving away from fossil to biobased feedstocks and creating a circular economy to minimise waste and maximise reuse and recycling._
- _“This is of course something that no industry body or organisation can tackle in isolation, and as such, the RSC’s task force provides a strategic platform that allows us to work with our industry peers to generate solutions that we can all benefit from, while reducing our collective impact on the planet.”_
**Watch The PLFs Revolution panel discussion hosted by Dr Adam Rutherford >**
## **TONY HESLOP, SENIOR SUSTAINABILITY MANAGER, BASF**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
13
Financial review
Financial statements
CONTENTS
Pg-6
Pg-9
Pg-17 Pg-20 Pg-22 Pg-25 Pg-27
Pg-4
Pg-5
## Making our science greener and more sustainable
## **Sounding the alarm on indoor air quality**
There is growing evidence that indoor air pollution has significant short and long-term health impacts but, while outdoor air pollution has been studied extensively, indoor air quality is not yet as well understood.
Informed by experts from three of our specialist Subject Communities, we published in November our Indoor Air Quality report, which identifies the priority research areas for indoor air quality, and the opportunities for innovation in this area. Among the key findings are a need to establish reliable measurement approaches, datasets and models, and a need for stable long-term funding for research and monitoring.
Alongside the report, we created a range of materials to explore the issue further, including a special indoor air quality episode of our podcast _Brought to you by chemistry_ and an explainer summarising the issues. Sharing the explainer with policymakers and parliamentary contacts led to parliamentary questions about the government’s approach to monitoring indoor air quality.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
14
Financial review
Financial statements
CONTENTS
Pg-6
Pg-9
Pg-17 Pg-20 Pg-22
Pg-25 Pg-27
Pg-4
Pg-5
## Making our science greener and more sustainable
## **Campaigns and collaborations**
Following UK government announcements of changes to net zero policy, we joined forces with many cross-industry professional bodies to issue a statement, also published in the Times newspaper. The letter highlighted the concerns of the signatories – representing hundreds of thousands of professional members globally – that the announced policy changes called into question the government’s commitment to delivering the UK’s net-zero and adaptation targets.
Following the previous year’s Sustainable laboratories initiative, in September we launched our Sustainable Laboratories Grants. Aimed at accelerating the chemical sciences community’s journey to environmentally sustainable research and innovation, the £10,000 grants are available to anyone around the world whose application addresses the core aims of the scheme. The first round of recipients will be announced in Spring 2024.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
15
Financial review Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Building and supporting our communities
## **Building a strong membership community**
In everything we do, we rely on our global community of people associated with the chemical sciences – scientists, researchers, technicians, teachers, students and so many more. They generously give their time, knowledge and passion to underpin every service and initiative we offer – and in return, we support their careers, research, professional development and their continued participation in our community.
A significant proportion of our membership number increases came from student members, which at 15,262 is also the highest number of student members in our history. Overall, we admitted 10,842 new members in 2023.
Our decision-making governance boards mainly comprise elected members of our community – we were pleased this year to see the highest-ever number of people standing for election to vacancies on boards and committees in 2023.
We achieved an exciting milestone in 2023: our highest-ever number of members, at 56,383 people. It is a privilege that so many members of the global chemical science community choose to directly support our work and associate themselves with the Royal Society of Chemistry, and we’re grateful to each and every one of them for being with us.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
16
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Building and supporting our communities
## **Recognising and supporting professional scientists**
In 2023 we launched RSC Pathfinder: a professional development platform to help members identify skills gaps, find activities that can support their development, and reflect on their progress. Replacing our legacy platform with this modern and future-proofed online service will make it easier to grow and evolve our offering as needs change over time. It will also link in more closely with both our careers and future digital learning offerings, providing a fully-connected professional development platform for our members.
The number of members holding our professional qualifications grew faster than the previous year, with 157 new Chartered Chemists (23% increase on 2022), 33 new Chartered Scientists (94% increase), 31 new Registered Science Technicians (82% increase) and 73 new Registered Scientists, totalling 429 in that category.
## Discover the new RSC Pathfinder
Our grants programmes directly support our members at every career stage. In 2023, for the first time, more than 1,000 members received an RSC grant to support their research.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
17
Financial review
Financial statements
CONTENTS
Pg-20
Pg-22
Pg-25 Pg-27
Pg-4
Pg-17
Pg-5
Pg-6
Pg-9
## Building and supporting our communities
## **Prizes celebrating cutting-edge science and teamwork**
Recognition is a key part of creating a positive science culture. RSC Prizes recognise individuals, collaborations and teams for their exceptional achievements in advancing the chemical sciences, with categories for early, mid and established career chemists in all aspects of research, inclusion and diversity, industry and innovation and education.
_“We’re delighted to have been recognised for our bismuth-based therapy. We hope it could provide a safer, more cost-effective treatment that can be used in the fight against SARS-CoV-2 and other infections caused by coronavirus in the future.”_
**PROF HONGZHE SUN, CHAIR PROFESSOR, DEPARTMENT OF CHEMISTRY, UNIVERSITY OF HONG KONG**
## **Bismuth cure for COVID-19 WINNER: 2023 DALTON HORIZON PRIZE**
Bismuth cure for COVID-19 is a multidisciplinary team of chemists, microbiologists and clinicians from Hong Kong, working together on the potential of bismuth drugs in the fight against COVID-19.
Bismuth has been associated with medicine for over 200 years. The team pioneered a new understanding of biologically relevant coordination chemistry and new metallomic and analytical methods for mapping bismuth target sites in pathogens. Its formulation therapy is currently in a clinical trial in Hong Kong and could potentially provide an at-home treatment for fighting COVID-19 and other infections by coronavirus in the future.
**Watch Video >**
**----- Start of picture text -----**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
**----- End of picture text -----**
18
Financial review
Financial statements
CONTENTS
Pg-6
Pg-9 Pg-17 Pg-20 Pg-22
Pg-25
Pg-27
Pg-4
Pg-5
## Building and supporting our communities
## **Connecting our community**
Bringing the chemical science community together to share their ideas and spark new collaborations has always been at the core of how the RSC helps to advance science and society. The 2020 coronavirus pandemic turned the events industry on its head, but we used technology and community spirit to continue the vital work of connecting people.
2023 saw a continuation of the trend back towards in-person conferences and events, but many of the benefits of virtual or hybrid events continue to be relevant, such as being inclusive of people who can’t travel, and reducing the potential environmental impacts. In 2023 we ran 184 events with 15,026 delegates, with most offering some kind of hybrid attendance option, and collectively the events programme generated more than a million pounds of revenue, further supporting our charitable work.
We also increased the number of professional interest groups that members can join, facilitating greater engagement across the networks and offering new avenues for members to discover and collaborate with their peers.
We celebrated the renewal of a historic agreement after resigning our joint Memorandum of Understanding (MoU) with the Chemical Society of Japan (CSJ). Dating back to 2010, and this was the second renewal of our formal partnership, and came three years after the previous attempt to renew this collaborative pact was made impossible by the COVID pandemic.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
19
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23 Pg-25
Pg-11
Pg-3
Pg-5
## Building and supporting our communities
## **Celebrating reassociation to Horizon Europe**
Since the UK’s decision to leave the European Union in 2016 we have campaigned, alongside a great many other individuals and organisations, for association to the Horizon Europe Programme. Throughout, member input has guided and given us evidence to support this position.
In April, alongside the Royal Society of Biology (RSB) and Institute of Physics (IoP), we wrote to the UK’s Prime Minister and Chancellor, outlining the benefits of Horizon Europe. We proactively engaged with the Department for Science, Innovation and Technology, facilitating a session at the Heads of Chemistry UK Spring conference and a roundtable with leading scientists invited by the RSC, IoP and RSB.
In September, the UK Government and EU Commission reached an agreement on the UK’s association to Horizon Europe and Copernicus, reinstating access to a €95.5 billion funding programme for research and innovation.
_“Association to Horizon Europe will enable productive chemical sciences collaborations to help us tackle some of the biggest challenges of our time, from improving health to tackling climate change._
_“To make the most of this opportunity, we urge researchers and innovators to apply to the upcoming grant calls – we will be working with others across the sector to encourage applications.”_
## **HELEN PAIN, CEO, ROYAL SOCIETY OF CHEMISTRY.**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
20
Financial review
Financial statements
CONTENTS
Pg-6
Pg-9
Pg-20
Pg-22
Pg-25
Pg-27
Pg-4
Pg-17
Pg-5
## Building and supporting our communities
## **Change Makers: supporting deep tech chemistry**
Innovative, specialist chemistry is at the heart of many worldchanging technologies: we call this deep tech chemistry. A huge proportion of that science is born and nurtured in small and medium enterprises (SMEs), including university spinouts. In 2023, after careful planning and design in consultation with our community, we focused our support for SMEs into a new offering: Change Makers.
## A decade of supporting ventures
Change Makers was built on the foundation of a decade of work with start-ups and scale-ups in the UK. Read here some of the highlights of the Royal Society of Chemistry’s work.
**600+** Chemistry SMEs supported by the Royal Society of Chemistry
**£7m** Invested in programmes for SMEs by the Royal Society of Chemistry
**£3.5+ bn*** Grants and equity funding raised by SMEs in our community
*Investment figures provided by Beauhurst.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
21
Financial review
Financial statements
CONTENTS
Pg-6
Pg-9
Pg-20
Pg-22
Pg-25
Pg-27
Pg-4
Pg-17
Pg-5
## Building and supporting our communities
Change Makers will support a myriad of deep tech chemistry start-ups tackling major societal and environmental issues. It marks the evolution of the EnterprisePlus programme that supported more than 600 SMEs over a decade. Services available to Change Makers invitees include access to masterclasses and investment pitching events, supported by an ecosystem of individuals committed to driving profound change, as well as a new venture mentoring programme.
The venture mentoring programme unites ambitious entrepreneurs with seasoned professionals who share insights gleaned from their own business experiences. Quarterly matching events help identify perfect partnerships, typically leading to monthly meetings for the next year. Mentors share the benefits of their experience to give the venture’s founders unconflicted advice and fresh perspectives.
_“Through Change Makers, we are trying to do something very specific for deep tech chemistry ventures,”_
**RICHARD HOLLIDAY, MANAGER, ENTREPRENEURSHIP AND ECOSYSTEM CHALLENGES TEAM**
**CASE STUDY: how venture mentoring supercharged one battery start-up’s growth journey.**
Solveteq is a start-up that has developed a new greener and cheaper way of recycling lead-acid batteries. These power sources are used in every single one of the 1.2 billion cars on the roads today. While 99% of these are recycled, the traditional process by which they are salvaged is very polluting – and can be deadly.
**Read the full Solveteq case study here >**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
22
Financial review Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-11
Pg-3
Pg-5
Pg-25
## Chemists’ Community Fund
The Chemists’ Community Fund (CCF) is the benevolent fund of the Royal Society of Chemistry for the benefit of its members.
The ongoing impact of the war in Ukraine, cost-of-living challenges and global inflation have continued to impact RSC members during 2023, with the number of new enquiries increasing on the previous year.
The CCF’s robust financial position means for the second year running its total expenditure has exceeded £1m, allowing it to support even more people. Direct grants or paid-for service referrals were provided to 115 individuals facing financial hardships.
New initiatives include an online chat functionality to improve access to our Wellbeing & Listening services, as part of our holistic approach to support that included legal advice referrals, specialist debt support and online career tools, and the Commonwealth Chemistry Congress Early Career Researcher Travel Grants, for those representing nations with a GDP per capita of less than $30,000.
_“I have always found the RSC approachable and hands-on, enabling me to find a solution and super quick. I really do feel that you (CCF) and the RSC actually care about me and this is super appreciated.”_
**RECIPIENT OF CCF SUPPORT**
**Learn more about the Chemists’ Community Fund >**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
23
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Chemists’ Community Fund
## The CCF in numbers
**£784,341** awarded in grants
**431** new enquiries
**141 1,169** counselling sessions online career tool users **947 196**
**947** live workshop attendees
Wellbeing & Listening Service calls
Royal Society of Chemistry | Trustees’ report and financial statements 2023
24
Financial review Financial statements
CONTENTS
Pg-6
Pg-9 Pg-17 Pg-20 Pg-22
Pg-25
Pg-27
Pg-4
Pg-5
## Chemistry for everyone
For the chemical sciences to prosper, they must attract, develop and retain a diverse range of talented people.
As a professional and membership body, and a leading voice for the chemistry community, we have a responsibility to promote inclusivity and accessibility and thereby improve diversity.
## **Vision for science culture**
Following extensive input from our community we launched our vision for a science culture that supports an open, inclusive and enabling community for the benefit of everyone. We’ve made three initial commitments toward achieving this vision:
- Increase our efforts to share practical resources to support our community in overcoming barriers to improving the culture of the chemical sciences.
- Create space for brave conversations covering areas where our community has identified tensions between the qualities of a positive science culture.
- Further develop support for recognition of leadership, management and supervision aspects of science and innovation roles.
Our vision for a great science culture spans both the quality of the science and the treatment of everyone involved. Our vision identifies five qualities of a positive science culture:
And three foundations of a healthy scientific environment:
- Rigorous
- Safe & supportive
- Ethical & responsible
- Scientific practice
- Open & collaborative
- Participation
- Accessible & inclusive.
• Wellbeing & development.
This is all underpinned by a recognition system that incentivises diverse careers and contributions, including nurturing a positive culture. Our ongoing work on inclusion, diversity and accessibility aligns with and helps to advance our vision, for a great science culture.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
25
Financial review Financial statements
CONTENTS
Pg-6
Pg-9
Pg-17 Pg-20
Pg-22
Pg-25
Pg-27
Pg-4
Pg-5
## Chemistry for everyone
## **New resources to support disabled scientists**
According to our Disability Landscape Report, disabled chemists are underrepresented at every level of both academia and industry, with only 5.5% of academic staff in the chemical sciences being disabled versus 23% of the working population.
In 2023 we launched a new Disability Hub comprising a collection of resources, learnings from those in the chemistry community who have experience of disability, and a series of recommendations for organisations on how they can improve their disability inclusion.
## **£677k to tackle chemistry’s diversity problem**
In 2022 our Missing Elements report found that talented Black chemists leave the profession at every stage of their career path after undergraduate studies. People from Black and minoritised ethnicities are underrepresented at senior levels in industry and academia. Since then we’ve taken action through our new Race & Ethnicity Unit, awarding £677k in Missing Elements Grants Scheme funding to ten British and Irish universities to address racial and ethnic inequalities in the chemical sciences.
Among them is ‘Making Diversity Count: Fixing the Leaky Pipeline’, a collaboration between Queen Mary University of London, Imperial College London and Greenwich University to encourage more minoritised ethnic undergraduate students to advance more into postgraduate study.
_“This project aims to… improve the recruitment, retention and progression of undergraduate students from BAME communities ensuring a ‘pipeline’ of outstanding chemists that will significantly increase the diversity of the chemistry community.”_
**DR TIPPU SHERIFF, QUEEN MARY UNIVERSITY OF LONDON**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
26
Financial review
Financial statements
CONTENTS
Pg-6
Pg-9 Pg-17
Pg-20
Pg-22
Pg-25
Pg-27
Pg-4
Pg-5
## Chemistry for everyone
## **50 Chemistry Camps and 40,000 teachers trained across India**
Since its launch in 2015, the RSC’s Yusuf Hamied Inspirational Science Programme has delivered 50 camps across 20 states in India in 11 regional languages, reaching more than 2,500 students, many from underprivileged backgrounds. The programme has also completed teacher training workshops for over 40,000 teachers.
The 54th Camp, at the Institute of Microbial Technology in Chandigarh, was the first for speech and hearing-impaired students, delivering science with sign language.
_“We need to encourage and motivate the best students to achieve the knowledge and skills they need to go on to study chemistry at university”._
**DR YUSUF HAMIED**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
27
Financial review
Financial statements
CONTENTS
Pg-6
Pg-9
Pg-20
Pg-22
Pg-25 Pg-27
Pg-4
Pg-17
Pg-5
## Chemistry for everyone
## **Broadening Horizons – second cohort joins expanded programme**
July saw the first gathering of 131 young people who form the second cohort of the RSC’s Broadening Horizons in the . Chemical Sciences programme
## **Watch Video >**
The 2023 intake is a big increase on the 78 participants who made up the first cohort, many of whom made the trip to Manchester to share their experiences of the programme - part of our action plan to support chemistry students and graduates from minoritised racial and ethnic backgrounds to pursue careers in chemistry.
The programme provides access to industry expertise and firsthand industrial experience, through a mixture of one-to-one mentoring support with senior leaders in industry and site visits provided by ten partner companies, from some of the most promising SMEs in our sector to the biggest companies in the world.
Participants also benefitted from ring-fenced industry placements with partner companies
_“The first day when we were all together in the RSC’s Burlington House was remarkable. Being in a room full of chemists who looked like me was the best feeling ever. For the first time in my academic career, I realised I did belong in the world of chemistry.”_
## **CARLA ALDINGTON, POST-GRADUATE RESEARCHER, IMPERIAL COLLEGE LONDON**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
28
**Financial review Financial statements**
**CONTENTS**
**Pg-6**
**Pg-9**
**Pg-17 Pg-20 Pg-22 Pg-25**
**Pg-27**
**Pg-4**
**Pg-5**
## Chemistry for everyone
## **Setting a benchmark for science teacher support**
2023 began with the results of the first ever Science Teaching Survey, a joint project with the Institute of Physics and the Royal Society of Biology. It generated more than 3,700 responses from science teachers and technicians, and showed there are shared concerns around understaffing, workload, and an overcrowded curriculum.
The 2022 survey has given us a baseline against which we can measure changes in attitude and experience. The data we gather will help us to prioritise and inform our programmes of support, and how we influence positive change in education.
_“Everyone should have access to an inspiring chemistry education and a pathway into the chemical sciences as a career – that’s not just my belief and a key ambition for the RSC, it’s an indisputable fact.”_
**PRESIDENT, ROYAL SOCIETY OF CHEMISTRY**
**Royal Society of Chemistry | Trustees’ report and fnancial statements 2023**
**29**
Financial review
Financial statements
CONTENTS
Pg-6
Pg-9
Pg-17 Pg-20
Pg-22
Pg-25
Pg-27
Pg-4
Pg-5
## Chemistry for everyone
## **More teachers than ever accessing high-quality resources**
Our online resource Teach Chemistry now has close to 7,000 active members – an increase of more than a thousand during 2023. Resources include practical videos and leadership mentoring, connecting leaders in industry with heads of science and chemistry in UK and Irish schools. More than 4,400 people signed up for Education in Chemistry in print, a 45% increase on the previous year.
## **Challenging potentially damaging Welsh education policy**
When Qualifications Wales (QW) made a late change to plans for the future of Welsh GCSE science, we were quick to highlight the risks to equality baked into their proposals. Reported in print and online across Wales and on BBC News, we pointed out that the decision to move away from a single-route combined science qualification was a “missed opportunity”.
Since that decision in June, RSC representatives have met with Senedd members with a number of member questions raised in the Welsh parliament putting our concerns on the record. We are also part of a STEM education advisory group to the Welsh government and working closely with Qualifications Wales and the examinations board to influence the chemistry content of science qualifications.
“I’m now more confident in my approach to managing others. I’d like to thank the RSC for organising this really invaluable experience!”
**JUDITH SKIMING TEACHER, BROUGHTON HALL**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
30
ROYAL SOCIETY
OF CHEMISTRY
Financial
review
**Financial review**
**Financial statements**
**CONTENTS**
**Pg-** 43 **Pg-5 Pg-6 Pg-** 98 Pg-17Pg-11 Pg-20Pg-16 **Pg-2** 32 **Pg-25**
Pg-27
## Definitions
**Unrestricted** These are funds which are not held for any particular **funds:** charitable purpose. They are split between usable and unusable funds.
**Usable** These are unrestricted funds made up of our general funds, **funds:** funds retained within non-charitable subsidiaries and designated funds.
- **Unusable** These funds are made up of the pension reserve, which **funds:** represents the RSC’s defined benefit pension liabilities as at year end. The pensions reserve is reduced by payments made against the agreed recovery plans in the year.
- **General funds:** These are unrestricted funds representing monies earned primarily from publishing activities, membership subscriptions and investment activity.
- **Free reserves:** The amount of general funds after deducting the balances held within our fixed assets. The portion of ‘available reserves’ freely available to spend and use on any of our charitable activities.
**Funds retained** These are unrestricted funds held by the subsidiaries of the **within non-** RSC and the International subsidiaries of RSC Worldwide. **charitable** They have no charitable purpose and are retained in the **subsidiaries:** subsidiaries to support their continued activities.
**Designated** These are unrestricted funds that have been internally ‘ring **funds:** fenced’ for a specific purpose and consist of earmarked funds, member network funds and various trust and lecture funds.
**Restricted** Represent grants, financial or other gifts bequeathed in a will **income** or trust deed to the RSC with a specific direction as to use. **funds and** These are not available for the general purposes of the charity **endowment** and consist of the Chemists’ Community Fund, various trust **funds:** and lecture funds, restricted grants, Royal Chemistry India Foundation and Friends of the RSC, Inc.
**Intangible and** Assets purchased for long-term use, and not likely to be **tangible fixed** quickly converted into cash. This includes buildings, **assets:** equipment, software and intellectual property.
**Investments:** Funds held by investment managers on our behalf for the purpose of generating income and capital gains over the long-term.
**Cash:** Includes cash held at the bank and short-term highly liquid investments. **Debtors:** Amounts owed from third parties – mostly our customers. **Creditors:** Amounts owed to third parties – mostly our suppliers. **Deferred** Income received / invoiced in advance for journal and membership **income:** subscriptions relating to future years. This is held on the balance sheet and only recognised as income in the year in which the services are provided. **Working** The capital, which is used in our day-to-day operations, calculated **capital:** as current assets (i.e. cash, stock and debtors) less current liabilities (i.e. creditors and deferred income). **Defined** The net deficit on our pension scheme, representing the **benefit** difference between valuations of the pension scheme assets and **pension** liabilities. **liability:**
_**The results shown in the financial review relate to the group activities.**_
Royal Society of Chemistry | Trustees’ report and financial statements 2023
32
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Overview
We undertake a diverse range of activities to fulfil our charitable purpose to advance excellence in the chemical sciences and to help the chemical science community make the world a better place.
We aim to deliver these activities in an effective and sustainable way, striking a balance of income-generating and net-cost services supported by a long-term approach to financial planning, whilst maintaining an appropriate level of reserves.
Throughout the year, we used our designated and restricted funds to provide support for the chemical community, and to invest in our future resilience. This has resulted in an increase in annual expenditure, but this has been partly mitigated by both an increase in our revenues, with all streams remaining stable, and the improved performance of our investment portfolio.
Overall, 2023 is a year in which our finances contributed to our long-term strategic aims, and we finished the year in a financially sound position, well placed to meet future challenges and opportunities.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
33
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Key group activities in 2023
To achieve our goals of supporting the chemical science community and fostering excellence in the field of chemical science, our publishing activities are essential. The majority of our income, or 85.4% (2022: 86.5%) of the total for the year, came from our publishing revenue of £60.5m (2022: £57.1m).
A key priority for the organisation is investing in the continued strength and long-term revenue growth potential of the publishing business as well as expanding other commercial income sources to achieve better revenues and surplus diversification. 2023 saw an increase in publishing spend accordingly to £50.7m (2022: £43.4m).
Overall, despite the increased spend in 2023, our publishing operations generated a net surplus of £9.8m (2022: £13.7m). A portion of this surplus has been invested in the continued development of our publishing products and services, while the majority has been used to fund our other charitable activities and our running costs. Refer to page 8 for more
Membership revenues were stable in 2023 at £4.0m (2022: £4.0m) as we continue to implement our Membership growth strategy. We continued to support the exchange of knowledge through our events programme and 2023 saw an increase in events activities resulting in an increase in revenue from £1.4m in 2022 to £1.7m in 2023.
We have continued to review and prioritise our activities based on their strategic impact. We earned £70.9m in 2023, an increase of £4.9m above the income recorded in 2022 (£66.0m). The total spend in 2023 was £85.1m, an increase of £13.0m from 2022 (£72.1m). Our net expenditure of £14.3m was offset by investment gains of £6.2m, leaving a net group expenditure of £8.1m.
information on how we are making knowledge more open and accessible.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
34
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Charitable activity outturn
How our surplus generating activities and use of funds have supported our net expenditure activities
**----- Start of picture text -----**
0.7
1.9
8.1
4.3
6.2 8
1.5
10.7
9.8
**----- End of picture text -----**
n Use of funds and reserves
n Events and conferences
n Investment Gain
n Chemistry World
n Other surplus generating activities
n Membership
n Publishing
n Education & professional practice
n Advocacy and awareness
Royal Society of Chemistry | Trustees’ report and financial statements 2023
35
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
Similar to 2022, we continued to foster the sharing of information through our events programme in 2023. We spent £2.4m (2022: £2.0m) on organising and sponsoring conferences and symposia, including those events which moved online.
In order to ensure a strong, diversified, and sustainable pipeline of chemists at all levels, we continued to invest in education and professional practice programmes. In 2023, we invested £8.1m (2022: £6.2m) in our educational and professional practice initiatives. For additional information on how we have aided people in evolving and growing at each point of their chemistry journey, see page 17.
In addition, we continued our support of chemical science professionals and students through our member services, spending a total of £8.3m (2022: £6.5m) on membership activities. For details on how we have developed and supported our membership community, refer to page 16.
We invested a total of £11.1m (2022: £9.6m) on Advocacy and Awareness programmes in 2023. These programmes provided support on activities that are aimed at educating and engaging the public and policymakers on matters such as inclusion & diversity, Outreach work to foster awareness in all ages, grants & prizes which advocate excellence in the chemical sciences, engagement with Industries as well as wider international engagement activities.
## Total income
n Fundraising - £0.5m
The breakdown of our sources of income are shown in the chart.
n Membership - £4m
n Chemistry World - £0.7m
n Scientific conferences and events - £1.7m
n Education & professional practice - £0.2m
n Advocacy & awareness - £0.4m
n Publishing - £60.5m
n Other income & trading activities - £2.7m
Royal Society of Chemistry | Trustees’ report and financial statements 2023
36
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
All the income earned from activities undertaken in the year has been spent on our charitable and fundraising activities or retained in our charitable reserves (see notes 25 and 26).
Overall, we saw a net operating deficit of £14.3m (2022: net operating deficit of £6.1m), and a net deficit of £8.1m after investment movements (2022: net deficit of £14.4m).
Our usable reserves, consisting of general funds, funds retained in non-charitable subsidiaries and designated funds,
remain healthy with a balance of £84.0m (2022: £94.2m).
Similarly, our Restricted funds remained stable at £23.9m (2022: £23.6m).
Overall, we continue to be in a strong financial position with ample reserves readily available to ensure operational stability and fund future activities. We will continue to focus on
allocating our resources to deliver our strategy in a sustainable and effective way.
## Total expenditure
The breakdown of our areas of expenditure are shown in the chart.
n Fundraising - £0.4m
n Membership - £8.3m
n Chemistry World - £2.9m
n Scientific conferences and events - £2.4m
n Education & professional practice - £8.1m
n Advocacy & awareness - £11.1m
n Publishing - £50.7m
n Other expenditure - £1.2m
Royal Society of Chemistry | Trustees’ report and financial statements 2023
37
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
The table below reconciles the net group expenditure of £8.1m in the financial statements to the operating deficit of £7.3m reported in our internal management accounts.
**----- Start of picture text -----**
‘Real’ operating deficit
(£7.3m)
As reported in internal management accounts
Add: Investment Income
Not included in the management accounts as the income was reinvested in the portfolio rather than used to fund operating expenditure. £1.8m
The income is shown in the Consolidated Statement of Financial Activities (SOFA) as required by accounting rules.
Less: Designated funds spend
(£5.9m)
Not included in the Management Accounts as these report unrestricted general fund movements only.
Less: Restricted funds spend
(£1.3m)
Not included in the Management Accounts as these report unrestricted general fund movements only.
Less: Defined benefit pension fund interest
(£0.7m)
Not included in the management accounts because this is a notional cost that accounting rules require to be shown in the SOFA.
Less: Foreign exchange
(£0.2m)
Not included in the Management accounts as notional revaluations do not form part of operational budgeting.
Less: Investment management costs
(£0.6m)
Not included in the management accounts because investment portfolio costs do not form part of the operational budgeting.
Add: Member network grants
Grant expenditure in respect of Member Networks is included within our internal management accounts but is represented as a transfer £0.3m
on the SOFA.
Less: Year End Adjustments
Adjustments made in the financial statements as part of the year end procedures are not reflected in the internal management accounts as (£0.4m)
these occurred after their production.
Net operating deficit (net expenditure before investment movements)
(£14.3m)
Per the SoFA
Less: Investment movements
£6.2m
Not included in the management accounts because investment portfolio movements do not form part of the operational budgeting.
Net expenditure
(£8.1m)
Per the statement of financial activities
**----- End of picture text -----**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
38
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Investments
We hold financial investments to maximise the security of our reserves and generate returns. Our investment portfolio is designed to ensure long-term growth and to provide additional funding to support our charitable objectives.
The long-term investment objectives for general funds and restricted funds are to achieve an annual rate of return of 2.0% (2022: 2.0%) in excess of the rate of UK inflation, as measured by the Consumer Price Index (CPI), after fees and costs at an acceptable level of risk for the investment portfolio. Performance is also monitored in comparison against the ARC Cautious Index, which monitors the investment performance of UK charities, in which historic variability of returns has been less than 40% of that recorded by world equities.
The portfolio generated investment income of £1.8m in 2023 (2022: £1.0m), all of which was reinvested. Together with value gains of £6.2m (2022: loss of £8.3m), investment management costs of £0.6m (2022: £0.7m) and net withdrawals of £15.4m (2022: £4.0m) the value of our investments decreased overall to £103.0m (2022: £111.0m), a decrease of £8.0m during the year.
Overall this represented a 1.2% surplus (2022 – 6.6% deficit), over the long-term target surplus of 6.0% (2022 – 13.5%) and over the ARC Cautious Index Performance of 5.5% surplus (2022 – 8.1% deficit).
Our commitment to projects and responsibilities identified within our Designated and Restricted funds, along with our obligation to reducing our DB pension scheme liability was supported by a withdrawal from our investment portfolio
in 2023 of £15.4m. This withdrawal also supported the net operating spend on the charitable activities necessary to ensuring our continued engagement with the chemical community.
Trustees adopt an investment time horizon of at least 10 years, over which they aim to achieve their objectives and expect the portfolio to remain substantially invested. The Trustees accept that investment performance objectives may not be achievable every year and that there will be occasional temporary adverse movements. As a result, we will review investment performance over relevant time frames.
Responsibility for investment strategy resides with the Board of Trustees, acting under advice from the Finance and Resources Board and the Investment Portfolio Advisory Group. Investment parameters are agreed with our investment managers, whilst monitoring performance in the context of long-term objectives and external benchmarks.
JP Morgan primarily manages our investments, with a small residual private equity investment maintained by Schroders Investment Management Limited. Risk is managed through diversification of the portfolio between different asset classes and geographic markets, and the wider social and environmental impact of the portfolio is monitored through independently provided Environmental, Social and Governance (ESG) Quality Scores where possible.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
39
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Reserves policy
Our reserves policy is continuously reviewed. Our goal is to keep our reserves at a sufficient level that ensures our financial sustainability and resilience, including safeguarding us against risks identified in the Risk Register.
Our reserves policy sets out the target reserves level and the key principles by which we will manage any excesses or deficits compared to the target. Our aim is to strike the appropriate balance between ensuring a sustainable financial position and using our funds to fulfil our charitable mission.
Free reserves represent unrestricted general funds of the RSC and exclude both the restricted funds held and funds that have been designated by our Trustees. The free reserves also exclude any funds that could only be realised by disposing of fixed assets held for charitable use.
Free reserves are held to smooth volatility and minimise disruption to RSC activities and:
- Provide contingency funding in the event of temporary income disruption
In 2023, we revised our policy to maintain our free reserves within a target range of £23.9m - £26.5m, being £25.2m +/- 5% (2022: £29.3m +/- 5%) consisting of:
- Publishing surplus – 10% reduction for 1 year (£3.0m)
- Non-publishing income – 20% for 1 year (£1.4m)
- Foreign exchange volatility - 10% USD devaluation for 1 year (£1.6m)
- Inescapable costs – 5% of operating budget (£3.8m)
- Investment volatility cushion (£6m)
- Funding of planned operating deficits 2024-2027 (£9.4m)
- The reduction in the free reserves target allowed for funds to be directed to the charitable activities of the RSC, as well as supporting spend within our Designated and Restricted funds.
If free reserves fall below the target range, we will aim to address any deficits within 5 years. If free reserves are above the target range, we will transfer surpluses to designated funds and spend these within 5 years.
- Pay for unbudgeted essential costs, where these cannot be funded by other means
- Smooth volatility by giving the organisation time (up to 3 years) to make structural changes on a strategic and phased basis
Royal Society of Chemistry | Trustees’ report and financial statements 2023
40
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Reserves policy
The level of accumulated usable funds held at 31 December 2023 was £84.0m (2022: £94.3m). Of this, £24.5m (2022: £26.9m) relates to the Charity’s unrestricted general funds and represents the ‘free reserves’ available to the group, falling within our planned target range. Our designated funds total £56.2m (2022: £64m), which have been earmarked for specific purposes. The balance of £3.3m (2022: £3.4m) relates to funds retained within the group’s non-charitable subsidiaries.
n General funds (free reserves) – £24.5m
- n Funds retained within non-charitable subsidaries – £3.3m
n Designated funds – £56.2m
n Restricted income funds – £23.9m
**----- Start of picture text -----**
Total usable and
restricted funds
**----- End of picture text -----**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
41
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Designated funds
The designated funds consist of earmarked funds totalling £48.8m (2022: £56.9m), designated trust and lecture funds totalling £5.1m (2022: £4.8m) as well as reserves totalling £2.3m (2022: £2.3m) held by branches of the Royal Society of Chemistry including our Local Sections, Regions and Interest Groups. Each of these branches is managed by a committee, which organises activities to advance the chemical sciences in local and specialist areas. Earmarked funds are established by appropriating amounts out of the general funds and are subject to Board of Trustees approval. Please refer to note 26 for a full list of Designated Funds.
## Restricted funds
The total restricted funds, including restricted income and endowment funds, held at 31 December 2023 were £23.9m (2022: £23.6m) and represents income for restricted purposes specified by the donor that are not available for the general purposes of the charity.
Of this, £15.6m (2022: £15.7m) relates to the Chemists’ Community Fund (CCF), which provides a flexible range of financial and non-financial help to members and their dependents, and where funds allow the funding of initiatives prioritising support for those most in need in our community. The target range for the CCF restricted funds is set at £14.0m to £16.0m. The remainder comprises other restricted income and endowment trust funds totalling £0.6m (2022: £0.6m) and £7.8m (2022: £7.4m) respectively.
The purpose of these trust funds is to recognise excellence through prizes, awards and other specified means as set out by the benefactors.
Our strategy for all of our restricted funds is to maintain capital over the long-term while generating income to meet current and expected expenditure levels.
## Pensions
Employees who joined from January 2003 are entitled to join a defined contribution pension scheme. For employees who joined prior to that date, we operate a defined benefit scheme, which commits to pay a pension based on the number of years worked and the final salary of the members. This was closed to new members in 2002 and the scheme was closed to future accrual for existing members in 2011.
The Defined Benefit pension fund is managed by a separate committee of Pension Fund Trustees.
Following the triennial valuation of the pension scheme as at 31 December 2022, we agreed a revised recovery plan. This replaces the previous recovery plan. The funding valuation method is used to determine the recovery plan and the annual deficit payments made by the RSC, and therefore this method has a direct impact on the actual costs falling upon the RSC.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
42
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Pensions
In accordance with the recovery plan, the RSC will pay the following contributions per year to 2027 inclusive, when the shortfall is expected to be eliminated.
- January 1 to December 31 2023 : £2,500,000
- January 1 to December 31 2024 : £3,250,000
- January 1 to December 31 2025 : £3,550,000
- January 1 to December 31 2026 : £3,750,000
- January 1 to August 31 2027 : £2,750,000
Accounting rules require the use of an accounting valuation method, which measures the pension fund’s assets and liabilities on a different basis to the funding valuation method, and results in a larger deficit. FRS 102 is the accounting standard that dictates how the scheme is presented in the financial statements and the valuation is determined by an actuary. The FRS 102 valuation (accounting valuation) of the deficit on the Defined Benefit Pension Scheme was £9.9m at the end of 2023 (2022: £14.4m).
This reduction in the overall net defined benefit pension liability followed an increase in the liabilities of the scheme of £0.5m, as well as a corresponding increase in the value of assets held with the scheme of £5.0m. Both these factors resulted in an overall reduction in the net defined benefit pension liability in 2023. Further information on the in-year movements is detailed in Note 12 of the Financial Statements.
The accounting valuation results in a notional deficit that does not directly impact on the actual costs falling upon the RSC. The funding valuation is considered the real figure and this, along with the agreed recovery plan, will remain until the next triennial valuation process as at 31 December 2025 which takes place in 2026.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
43
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Pensions
The differences between the 2023 accounting valuation and 2022 funding valuation measures of the pensions fund deficit are summarised in the table below:
|**Details**|**Accounting valuation**
**31 Dec 2023**
_For use in the 2023 financial_
_statements £m_|**Funding valuation**
**31 Dec 2022**
_As used in the recovery plan agreed in_
_2023 £m_|**Diference**|
|---|---|---|---|
|Scheme assets|79.8|75.9|3.9|
|Scheme liabilities|(89.7)|(90.9)|1.2|
|**Net deficit**|**(9.9)**|**(15.0)**|**5.1**|
Over time, the deficit will vary in line with market interest rates and equity returns and may ultimately become a surplus. Given the length of time over which the scheme will exist, the FRS 102 figures represent only a best estimate of the final position if existing market factors remain unchanged. We are maintaining a separate designated fund, the pension long term strategy fund, with the objective of achieving a permanent settlement of our obligations by means of a buyout transaction. This is estimated to take place between 2027 - 2030.
## Risks
Our Leadership team regularly review the strategic risks facing the RSC and oversee plans for mitigating these risks. Our Strategic Risk Register is updated regularly, and the strategic risks and associated mitigations are a standing item in the Audit and Risk Committee agenda, to ensure thorough oversight on behalf of our Trustees.
The key risks faced by the RSC along with their associated mitigations, are detailed in the table on the following page:
Royal Society of Chemistry | Trustees’ report and financial statements 2023
44
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Risks
**----- Start of picture text -----**
Strategic risk Mitigation
**----- End of picture text -----**
|**Strategic risk**|**Mitigation**|
|---|---|
|||
|**Focus**
Our ability to remain relevant and
sustainable will be at risk if we do not have a
clear understanding of our purpose and are
unable to focus our resources accordingly.|Our current organisational strategy was approved in July 2021. This includes a clear link between our Charter, our
purpose, our vision/mission, our business strategies and our implementation plans. The budget and financial plans
support the priorities for transformation and growth within our strategy, alongside a continued commitment to
support our community.|
|**Reputation**
The RSC is acknowledged as champion
for the chemistry profession, a thought
leader in the global chemistry community
and influencer of key UK decision-makers
in the public interest. Any negative impact
on our reputation, as a result of either
internal action or external threat, will risk
undermining the credibility and significance
of our role.|We take our reputation very seriously. Trustees and the Leadership Team ensure that full consideration of
reputational risks form part of the decision-making process at both strategic and operational levels. Reputational
risk is also considered in the context of actions taken by any person or organisation within the RSC community.|
|**Publishing**
Our ability to disseminate chemical
science knowledge and operate in a
market providing a reliable income to
support the RSCs work is dependent on us
delivering compelling author and customer
propositions. Our work is at risk if we are
not able to remain relevant and provide a
reliable income.|We are investing in our digital, marketing and editorial capabilities, allowing us to deliver compelling author
and customer propositions to grow our content and manage our transition to 100% Open Access by 2028. These
investments mitigate the income risks associated with our Open Access transition as does the evolving commercial
strategy which seeks to identify income streams to help diversify the sources of our surplus.|
|**Financial resilience**
Our ability to deliver impact for chemistry
depends on our financial resilience. We
need to ensure that spending can be
planned with confidence.|Our Medium Term Financial Plan, Rolling Budget and Reserves Policy are the key financial management tools by
which we maintain our financial resilience. By anticipating challenges and opportunities in advance, we bring
resources to bear to address them in a timely fashion. Our spending plans are swifly revised when changes in
circumstances arise. We maintain suficient liquid reserves to provide suficient contingency and to fund internal
investment and external com-mitments. A current priority for the organisation is to reduce the current gap between
our operatingrevenues and expenditure. Activities to achieve this outcome by 2027 are beingprogressed.|
Royal Society of Chemistry | Trustees’ report and financial statements 2023
45
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Risks
**----- Start of picture text -----**
Strategic risk Mitigation
**----- End of picture text -----**
|**Strategic risk**|**Mitigation**|
|---|---|
|||
|**Information Governance**
Our IT systems, data and ability to operate
efectively are at a risk of being disrupted by
cyber attacks.|We are transitioning to the CIS framework allowing us to further build cybersecurity maturity. There is mandatory
Cybersecurity training for all our staf to ensure knowledge is maintained and updated. The Information Security
Manager ensures that an appropriate framework for managing security risks is in place, and that risks are
recognised and understood, and mitigations implemented.|
|**Regulatory compliance**
As an international organisation, it is
essential that we comply with all applicable
statutory requirements, risking exposure to
financial & legal penalties.|Policies and procedures remain in place to ensure that current regulatory requirements are fulfilled in all material
respects. New requirements are considered and addressed as appropriate. We ensure compliance with our domestic
and international regulatory and statutory obligations, including the Bribery Act, Charity Commission requirements,
Data Protection, EU GDPR, employee rights, health and safety regulations, international trade sanctions, Modern
Slavery Act, SafeguardingChildren & Vulnerable Adults, statutory financial reportingand tax legislation.|
|**Estates**
Without access to appropriate workspaces
& venues our staf, members & wider
community are at risk of not being able to
fulfil our purpose & undertake the business
of the RSC.|An Estates Strategy is being developed to ensure that our estates meet our future needs. In the UK, we have made
progress in securing our long-term tenancy in Burlington House and are currently exploring our future ofice needs
and options in Cambridge. The International Steering Group (Operations) reviews the leases and operations of our
international ofices every quarter to ensure our staf are supported and we are securing value for money.|
|**Business resilience**
Our organisational activities are at risk of
being significantly disrupted if proportionate
business continuity plans are not inplace.|All our business continuity plans are regularly reviewed, audited, tested and updated. Our plans are particularly
focused in ensuring business continuity in the face of risks arising from our publishing and sales operations.|
|**Workforce**
There is a high dependency on our staf
being engaged, motivated and high
performing. If capacity & capabilities are
impacted our ability to deliver our strategy
on an afordable basis is at risk.|We regularly review key employee metrics, including turnover and wellbeing, and benchmark reward against local
markets to ensure that we retain and develop our talent. We are investing in key roles or the future to deliver against
our people challenges and organisation ambitions.|
Royal Society of Chemistry | Trustees’ report and financial statements 2023
46
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Structure, governance and management
The Royal Society of Chemistry is a registered charity governed by a Royal Charter that was granted on 15 May 1980, following the amalgamation of the Chemical Society, the Royal Institute of Chemistry, the Faraday Society, and the Society for Analytical Chemistry.
We are governed by our Board of Trustees, members of which are elected or appointed in accordance with our Royal Charter and By-laws.
Our Board of Trustees comprises:
- President
- President Elect
- Honorary Treasurer
- Seven Elected Trustees
- Up to eight Appointed Trustees, who may be chairs of our boards or other persons appointed by The Board of Trustees.
In accordance with the By-laws of the Society, the Trustees are elected to position at the Annual General Meeting. Any member of the RSC may stand for election as an Elected Trustee and any Honorary Fellow, Fellow or Member, may stand for election as President. All members are eligible to nominate candidates and vote in elections. Voting takes place electronically and is managed by an external provider approved by the Board of Trustees.
The Board of Trustees have control of the Society and its property and funds, and must ensure these are applied only for the object for which the Society is constituted. The Board of Trustees delegates some of its powers and duties to boards and committees and requires them to be responsible for key functions and areas of strategy.
The Board of Trustees delegates the day-to-day management of the organisation and implementation of strategy to the Chief Executive Officer (CEO). Members of staff are in place to support and progress the work of governance bodies.
Each board and committee has a chair appointed by the Board of Trustees. More details on the remit and membership of each board and committee can be found on our website:
**- - - https://www.rsc.org/about us/our structure/#boards committees**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
47
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Our governance structure
**----- Start of picture text -----**
Performance
Inclusion and Diversity Management and
Committee Remuneration
Committee
Board of Trustees
Nominations Audit and Risk
Committee Committee
Member Finance and Professional
Publishing
Communities Resources Standards
Board
Board Board Board
**----- End of picture text -----**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
48
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Trustees
The Society’s Royal Charter and By-laws specify that the Board of Trustees is responsible for the government and control of the Society and its property and affairs, and as such Board of Trustees members are trustees to the charity. A list of the Trustees for the period from January 2023 to the date of this report is shown on page 53.
Trustees are required to attend trustee training sessions covering the responsibilities of Trustees, including financial and business planning and strategy development. Trustees are also offered training and are provided with a Governance Handbook and trustee induction pack that they are asked to familiarise themselves with.
We also conduct an annual skills audit to ensure that the Board of Trustees includes the right skills to provide effective strategic direction and oversight for the organisation.
In shaping our objectives for the year and planning our activities, the Trustees have considered the Charity Commission’s guidance on public benefit, including the guidance ‘ **public benefit: running a charity (PB2)** ’. The Trustees are satisfied that the RSC’s activities provide public benefit by advancing the chemical sciences through publishing chemistry books, journals and magazines; informing and influencing policy makers; supporting and advancing chemical science education; recognising and regulating professional standards in the chemical sciences; organising meetings, conferences and networking events for members, and informing and engaging the public.
All members of the Board of Trustees and its Boards and committees give their time voluntarily to the RSC.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
49
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Remuneration of key management personnel
Our Leadership Team (LT) led by the Chief Executive Officer (CEO), manages the implementation and operational delivery of the RSC’s agreed strategy, programmes of activity by promoting leadership and direction, and works closely with the Board of Trustees to ensure we are governed effectively. The Performance Management and Remuneration Committee is responsible for:
- Setting objectives for and reviewing the performance of the CEO, and determining his or her salary in accordance with the organisation’s performance management procedures.
- Ensuring that appropriate benchmarking is in place to understand how the salary and remuneration packages of the CEO, COO and LT members compare to those in similar organisations.
- Providing general advice to the CEO on people management issues, in accordance with by-law 74.
Remuneration for the CEO, COO and the LT is reviewed on an annual basis at the same time as the annual pay review for all staff. Please refer to disclosure note 7 for more information on LT remuneration.
- On the basis of recommendations from the CEO, discussing and agreeing any major changes to the duties of senior staff i.e. the Chief Operating Officer (COO) and the leadership team, their annual remuneration and any change in the number of such posts.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
50
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Subsidiary Companies
## **Overview**
The RSC has two wholly owned UK registered subsidiaries, Chemistry Limited and RSC Worldwide Limited. The profit before taxation for Chemistry Limited was £165k (2022: £56k). The profit before taxation for RSC Worldwide Limited was £908k (2022: £788k).
The principal activity of RSC Worldwide Limited is to facilitate the RSC’s activities overseas. It also holds the ChemSpider asset, a database providing fast text and structure search access to over 100 million chemical structures from hundreds of data sources.
In 2023, RSC Worldwide Limited continued to facilitate operations in the US, China, India, Japan, Brazil and Germany, representing activities to advance the chemical sciences internationally.
The principal activity of Chemistry Limited is to promote Burlington House as a unique venue for both chemistry and non-chemistry related events and to carry out any nonprimary purpose trading on behalf of the RSC. Chemistry Limited continues to recover well following the disruption caused by COVID-19 to the events and hospitality sector.
## **Consolidation shown on page 61**
We have reflected in the Consolidated Statement of Financial Activities and Balance Sheet the following entities covered by the Royal Society of Chemistry charity registration:
- Chemistry Limited
- RSC Worldwide Limited
- RSC Worldwide (US) Inc
- RSC (Beijing) Chemical and Science Technology Company Limited
- Royal Chemistry India Private Limited
- Royal Chemistry India Foundation
- Royal Society of Chemistry Japan KK
- Friends of RSC Inc.
- RSC Worldwide (Germany) GmbH
Royal Society of Chemistry | Trustees’ report and financial statements 2023
51
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Connected charities
The RSC jointly administers the Sir George Beilby Memorial Fund. An annual prize of £1,000 is awarded and sustained by a trust fund commemorating Sir George Beilby FRS, President of the Society for Chemical Industry (SCI) (1898-99), the Institute of Chemistry (1909-12) and The Institute of Metals (1916-1918) and founding Chairman of the Fuel Research Board.
The award is administered in rotation by the RSC, the Institute of Materials, Minerals and Mining and the SCI. It recognises substantial work of exceptional practical significance in chemical engineering, applied materials science, energy efficiency or related field, and is made to scientists or engineers. The assets of the fund are held in a named portfolio with Schroders Investment Management Limited. The RSC’s share of the fund has not been consolidated within the Consolidated Balance Sheet and Statement of Financial Activities on the basis of materiality.
The RSC works with a broad range of UK and international charities. Details are available on request.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
52
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Royal Society of Chemistry Trustees
Board of Trustees Members for the year 1 January 2023 to 31 December 2023
## Honorary Officers
## **President**
Professor Gill Reid CChem FRSC FRSE
## **President Elect**
Dr Annette Doherty OBE FRSC
**Honorary Treasurer and Chair, Finance and Resources Board**
Claire Gallery-Strong CSci CChem FRSC
## Appointed Trustees
## **Chair, Publishing Board**
Professor Duncan Graham CChem FRSC FRSE
## **Chair, Member Communities Board**
Jonathan Oxley CChem FRSC CMgr FCMI
**Chair, Professional Standards Board** Professor David Smith CChem FRSC
**Chair, Inclusion and Diversity Committee**
Professor Robert Mokaya OBE FRSC (from July 2023, previously an Appointed Trustee)
Professor Marina Resmini FRSC (retired July 2023)
Professor Saiful Islam CChem FRSC
Dr Alexander Reip CChem FRSC FIMMM (from November 2023)
Dr Rehana Sidat CSci CChem FRSC (from November 2023)
## Elected Trustees
Dr Louise Armstrong-Denby CChem FRSC (retired July 2023)
Dr Stephen Byard CSci CChem FRSC (from July 2023)
Professor Edwin Constable CChem FRSC CorrFRSE (from July 2023)
Dr Amanda Cooke MRSC
Professor Richard Jackson CChem FRSC Professor Aline Miller FRSC (from July 2023)
Remya Norris CChem FRSC
Professor Annie Powell CChem FRSC (retired July 2023)
Dr Elizabeth Rowsell OBE CChem FRSC (retired July 2023)
Professor Jeremy Sanders CBE FRSC FRS
All the members named above, except for those who retired in 2023, form the Board of Trustees as at the date of signing the Trustees’ report.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
53
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Responsibilities of the Trustees
## Trustees’ responsibilities statement
The Trustees are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and regulations.
The Charities Act 2011 requires the Trustees to prepare financial statements for each financial year. The Trustees have to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. The Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of resources, including the income and expenditure, of the group for that period. In preparing these financial statements, the Trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP (FRS 102);
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s and group’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and the group and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the Royal Charter. 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.
## On behalf of the Trustees
**Professor Gill Reid FRSC**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
54
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Independent Auditors’ Report to the Trustees of the Royal Society of Chemistry
## Opinion
We have audited the financial statements of Royal Society of Chemistry (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 December 2023, which comprise the Group Statement of Financial Activities, the Group and parent charity’s Balance Sheets, the Group Cash Flow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 financial statements:
- give a true and fair view of the state of the group’s and parent charity’s affairs as at 31 December 2023 and of the group’s incoming resources and application of resources for the year then ended;
## Basis for opinion
We have been appointed as auditor under sections 151 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act. We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the ‘Auditor’s responsibilities for the audit of the financial statements’ section of our report. We are independent of the group and parent charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
- 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.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
55
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Conclusions relating to going concern
We are responsible for concluding on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the parent charity and group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the parent charity or group to cease to continue as a going concern.
In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group’s and parent 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 directors with respect to going concern are described in the relevant sections of this report.
In our evaluation of the trustees’ conclusions, we considered the inherent risks associated with the parent charity’s and group’s business model including effects arising from macroeconomic uncertainties such as the cost of living crisis, we assessed and challenged the reasonableness of estimates made by the trustees and the related disclosures and analysed how those risks might affect the group’s and parent charity’s financial resources or ability to continue operations over the going concern period.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
56
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Other information
The other information comprises the information included in the Trustees’ Report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 requires us to report to you if, in our opinion:
- the information given in the Trustees’ Annual Report is inconsistent in any material respect with the financial statements; or
- the parent charity has not kept sufficient and proper accounting records; or
- the parent charity’s financial statements 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.
We have nothing to report in this regard.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
57
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Responsibilities of trustees
As explained more fully in the Trustees’ Responsibilities Statement set out on page 54, the trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the trustees are responsible for assessing the 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 parent charity or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of noncompliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
• We obtained an understanding of the legal and regulatory frameworks that are applicable to the parent charity and the Group. We determined that the following laws and regulations were most significant: the Charities Act 2011, the Charity SORP (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), The Financial Reporting Standard applicable in the UK and the Republic of Ireland (FRS 102), and current UK corporation tax legislation
Royal Society of Chemistry | Trustees’ report and financial statements 2023
58
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
• We understood how the parent charity and the Group is complying with these legal and regulatory frameworks by making inquiries of management and those charged with governance. We enquired of management and those charged with governance whether there were any instances of non-compliance with laws and regulations, or whether they had any knowledge of actual or suspected fraud. We corroborated the results of our enquiries through our review of the board minutes.
- We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur and the risk of material override of controls. Audit procedures performed by the engagement team included:
- Identifying and assessing the design effectiveness of certain controls management has in place to prevent and detect fraud
- Challenging assumptions and judgments made by management in its significant accounting policies
- Identifying and testing of unexpected journal entries
- Identifying and testing unexpected related party transactions
• These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it.
- The assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team’s:
- Understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation
- Knowledge of the sector in which the charity operates, and
- Understanding of the legal and regulatory requirements specific to the entity including the provisions of the applicable legislation.
- Inspecting the board minutes
- Assessing the extent of compliance with the relevant laws and regulations as part of our procedures on the related financial statement item
Royal Society of Chemistry | Trustees’ report and financial statements 2023
59
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
- The team communications in respect of potential noncompliance with laws and regulations and fraud included the potential for fraud in revenue recognition.
- In assessing the potential risks of material misstatement, we obtained an understanding of:
- The parent charity and the Group’s operations, including the nature of its revenue sources, to understand the classes of transactions, accounts balances, expected financial statement disclosures and business risks that may result in risks of material misstatement, and
## Use of Our Report
This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and section 154 of the Charities Act 2011. 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 its trustees as a body, for our audit work, for this report, or for the opinions we have formed.
- The parent charity and the Group’s control environment, including
- n Management’s knowledge of relevant laws and regulations and how the parent charity and the Group is complying with those laws and regulations
- n The adequacy of procedures for authorisation of transactions and review of management accounts, and
- n Procedures to ensure that possible breaches of laws and regulations are appropriately resolved
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: **www.frc.org.uk/**
## **Grant Thornton UK LLP**
Statutory Auditor, Chartered Accountants
London
## Date
Grant Thornton UK LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006
**auditorsresponsibilities** . This description forms part of our auditor’s report.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
60
Financial review
Financial statements
CONTENTS
Pg-6
Pg-8 Pg-11 Pg-16 Pg-23 Pg-25
Pg-3
Pg-5
## Financial statements
**----- Start of picture text -----**
Unrestricted funds Restricted funds
Consolidated statement of Total Total
General Designated general and Pension unrestricted Restricted Endowment Total
financial activities for the year funds funds designated funds reserve funds income funds funds restricted funds Total Total
ended 31 December 2023 2023 2023 2023 2023 2023 2023 2023 2023 2023 2022
Note £000 £000 £000 £000 £000 £000 £000 £000 £000 £000
Income and endowments from:
Donations and legacies 1 169 5 174 - 174 142 158 300 474 497
Other trading activities 2 759 - 759 - 759 - - - 759 406
Investment income 3 1,260 71 1,331 - 1,331 433 - 433 1,764 975
Charitable activities
Membership 3,979 45 4,024 - 4,024 14 - 14 4,038 4,032
Chemistry World 696 - 696 - 696 - - - 696 1,027
Scientific conferences and events 576 1,150 1,726 - 1,726 - - - 1,726 1,399
Education and professional practice 117 - 117 - 117 123 - 123 240 284
Publishing 60,500 - 60,500 - 60,500 - - - 60,500 57,129
Advocacy and awareness 7 - 7 - 7 427 - 427 434 154
Other income 227 - 227 - 227 - - - 227 69
Total income and endowments 68,290 1,271 69,561 - 69,561 1,139 158 1,297 70,858 65,972
Expenditure on:
Raising funds
Donations and legacies 407 25 432 5 437 - - - 437 427
Other trading activities 594 - 594 - 594 - - - 594 349
Investment management costs 404 24 428 - 428 2 133 135 563 712
Charitable activities
Membership 4,696 1,803 6,499 60 6,559 1,737 - 1,737 8,296 6,589
Chemistry World 2,762 90 2,852 22 2,874 - - - 2,874 2,764
Scientific conferences and events 2,274 116 2,390 14 2,404 - - - 2,404 1,985
Education and professional practice 7,093 654 7,747 74 7,821 328 - 328 8,149 6,208
Publishing 46,977 3,302 50,279 397 50,676 - - - 50,676 43,398
Advocacy and awareness 9,497 1,194 10,691 86 10,777 344 - 344 11,121 9,639
Total expenditure 8 74,704 7,208 81,912 658 82,570 2,411 133 2,544 85,114 72,071
Net expenditure before investment gains/(losses) (6,414) (5,937) (12,351) (658) (13,009) (1,272) 25 (1,247) (14,256) (6,099)
Gains/(losses) on investment assets 16 4,376 256 4,632 - 4,632 26 1,544 1,570 6,202 (8,278)
Net expenditure (2,038) (5,681) (7,719) (658) (8,377) (1,246) 1,569 323 (8,054) (14,377)
Transfer between funds 25, 26 (429) (2,071) (2,500) 2,500 - 1,292 (1,292) - - -
Net group (expenditure)/income before other recognised gains and losses (2,467) (7,752) (10,219) 1,842 (8,377) 46 277 323 (8,054) (14,377)
Remeasurement on defined benefit pension scheme 12 - - - 2,693 2,693 - - - 2,693 10,414
Net movement in funds (decrease)/increase (2,467) (7,752) (10,219) 4,535 (5,684) 46 277 323 (5,361) (3,963)
Reconciliation of funds
Fund balances brought forward 30,270 63,977 94,247 (14,405) 79,842 580 23,039 23,619 103,461 107,424
Fund balances carried forward 27,803 56,225 84,028 (9,870) 74,158 626 23,316 23,942 98,100 103,461
**----- End of picture text -----**
Notes 1 - 33 form an integral part of these Financial Statements. Refer to note 32 for the accounting policies that have been used in preparing these financial statements.
A separate statement of financial activities has not been presented for the Charity alone. Refer to note 24 for further disclosure on the Charity’s financial outturn for 2023.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
61
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Consolidated and Charity balance sheets as at 31 December 2023
**----- Start of picture text -----**
Group Group Charity Charity
2023 2022 2023 2022
Note £000 £000 £000 £000
Fixed assets
Intangible assets 14 12 28 12 28
Tangible assets 15 4,464 4,506 4,146 4,490
Investments 16 102,970 111,016 102,970 111,016
Total fixed assets 107,446 115,550 107,128 115,534
Current assets
Debtors 18 13,424 17,245 13,636 17,403
Cash at bank and in hand 16,075 19,506 13,366 16,073
Total current assets 29,499 36,751 27,002 33,476
Current liabilities
Creditors 19 (7,799) (8,387) (8,615) (8,727)
Deferred income 19 (20,531) (25,410) (20,347) (25,340)
Total current liabilities (28,330) (33,797) (28,962) (34,067)
Net current assets 1,169 2,954 (1,960) (591)
Long-term liabilities
Deferred income 20 (645) (638) (645) (638)
Defined benefit pension liability 12 (9,870) (14,405) (9,870) (14,405)
Total long-term liabilities (10,515) (15,043) (10,515) (15,043)
Net assets 21 98,100 103,461 94,653 99,900
Accumulated funds
Unrestricted funds:
Usable funds
General funds (free reserves) 26 24,469 26,883 24,469 26,883
Funds retained within non-charitable subsidiaries 26 3,334 3,387 - -
Designated funds 26 56,225 63,977 56,225 63,977
Total usable funds 84,028 94,247 80,694 90,860
Unusable funds
Pension reserve 12, 26 (9,870) (14,405) (9,870) (14,405)
Total unusable funds (9,870) (14,405) (9,870) (14,405)
Total unrestricted funds 74,158 79,842 70,824 76,455
Restricted funds:
Restricted income funds 25 626 580 513 406
Endowment funds 25 23,316 23,039 23,316 23,039
Total restricted funds 23,942 23,619 23,829 23,445
Total charity funds 98,100 103,461 94,653 99,900
**----- End of picture text -----**
Approved by Board of Trustees and authorised for issue on 25 April 2024.
**Gill Reid,** President
**Stephen Joyce** Finance Director
Notes 1 - 33 form an integral part of these Financial Statements. Refer to note 32 for the accounting policies that have been used in preparing these financial statements.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
62
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Consolidated and Charity statements of cash flows for the year ended 31 December 2023
**----- Start of picture text -----**
Group Group Charity Charity
2023 2022 2023 2022
Note £000 £000 £000 £000
Reconciliation of net income to net cash outflow from operating activities
Net (expenditure) for the reporting period (8,054) (14,377) (7,940) (15,030)
Adjustments for:
Depreciation and amortisation 720 676 508 635
Loss on disposal of fixed assets 9 22 8 22
Proceeds from the sale of fixed assets - (11) - (11)
(Gains)/loss on investments (6,202) 8,278 (6,202) 8,278
Investment income 3 (1,764) (975) (1,764) (975)
Investment management fees deducted from investments 16 662 627 662 627
Decrease/(Increase) in debtors 3,821 (2,008) 3,767 (1,469)
(Decrease)/Increase in creditors and accruals (588) 480 (112) (310)
(Decrease)/Increase in deferred income (4,872) 3,758 (4,986) 3,719
Receipt of endowment (158) (293) (158) (293)
Exchange rate movements on cash and cash equivalents 397 (818) 254 (636)
Employer's contributions payable to the defined benefit pension scheme 12 (2,500) (2,800) (2,500) (2,800)
Net pension interest expense 12 658 463 658 463
Net cash (outflow) from operating activities (17,871) (6,978) (17,805) (7,780)
Cash flows from investing activities
Investment income 3 1,764 975 1,764 975
Investment income reinvested 16 (1,764) (975) (1,764) (975)
Proceeds from sale of investments 16 15,350 4,000 15,350 4,000
Proceeds from the sale of fixed assets - 11 - 11
Purchase of tangible fixed assets 15 (671) (208) (156) (198)
Net cash inflow from investing activities 14,679 3,803 15,194 3,813
Cash flows from financing activities
Receipt of endowment 158 293 158 293
Net cash inflow from financing activities 158 293 158 293
(Decrease) in cash and cash equivalents (3,034) (2,882) (2,453) (3,674)
Cash and cash equivalents at the beginning of the reporting period 19,506 21,570 16,073 19,111
Change in cash and cash equivalents due to exchange rate movements (397) 818 (254) 636
Cash and cash equivalents at the end of the reporting period 16,075 19,506 13,366 16,073
**----- End of picture text -----**
## **Analysis of changes in net debt**
|**Analysis of changes in net debt**||||
|---|---|---|---|
|**Group**|Group|**Charity**|Charity|
|**2023**|2022|**2023**|2022|
|**£000**|£000|**£000**|£000|
|**Cash and Cash Equivalents**||||
|Cash and cash equivalents at the start of the reporting period
**19,506**|21,570|**16,073**|19,111|
|Cash flows
**(3,034)**|(2,882)|**(2,453)**|(3,674)|
|Non cash flows
**(397)**|818|**(254)**|636|
|**Cash and cash equivalents at the end of the reporting period**
**16,075**|19,506|**13,366**|16,073|
A reconciliation of net debt is required per the Charities SORP (FRS 102). There was no debt within the group during 2023 (2022: Nil), and there were no non-cash flows to reflect other than the change in cash and cash equivalents due to exchange rate movements.
Notes 1 - 33 form an integral part of these Financial Statements. Refer to note 32 for the accounting policies that have been used in preparing these financial statements.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
63
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Notes to the financial statements
## 1. Donations and legacies
||**General**|**Designated**|**Restricted**|**Endowment**|**2023**|2022|
|---|---|---|---|---|---|---|
||**funds**|**funds**|**income funds**|**funds**|**Total**|Total|
||**£000**|**£000**|**£000**|**£000**|**£000**|£000|
|Donations|7|5|142|139|**293**|205|
|Bequests and legacies|162|-|-|19|**181**|292|
|**Total**|169|5|142|158|**474**|497|
## 2. Income from other trading activities
Income from other trading activities consists entirely of turnover from Chemistry Limited, a wholly owned trading subsidiary of the RSC. Its principal activity is to promote Burlington House as a unique venue for both chemistry and nonchemistry related events and to carry out any non-primary purpose trading on behalf of the RSC. All the profit from the trading subsidiary is passed to the charity under the gift aid scheme. Refer to note 17 for more detail.
## 3. Investment income
|3. Investment income||||||
|---|---|---|---|---|---|
||**General**|**Designated**|**Restricted**|**2023**|2022|
||**funds**|**funds**|**income funds**|**Total**|Total|
||**£000**|**£000**|**£000**|**£000**|£000|
|**Assets outside the UK**||||||
|Interest|470|27|162|**659**|97|
|Fixed income|399|22|137|**558**|632|
|Equities|85|5|29|**119**|130|
|Alternative Investments|306|17|105|**428**|116|
|**Total**|1,260|71|433|**1,764**|975|
## 4. Government grants
The RSC receives grant funding from national and international governmental bodies. In 2023 £84k of government funding was recognised in the statement of financial activities (2022: £98k) for education related and teaching training programmes.
Funds have been used for the RSC’s Initial Teacher Training Scholarship scheme which offers packages of support to eligible trainee chemistry teachers.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
64
Financial review
Financial statements
CONTENTS
Pg-6
Pg-11 Pg-16 Pg-23
Pg-8
Pg-25
Pg-3
Pg-5
## 5. Analysis of grant expenditure (Group and Charity)
||**Grants to**|**Grants to**||**Grants to**|**Grants to**||
|---|---|---|---|---|---|---|
||**institutions**|**individuals**|**Total**|**institutions**|**individuals**|**Total**|
||**2023**|**2023**|**2023**|**2022**|**2022**|**2022**|
||**£000**|**£000**|**£000**|**£000**|**£000**|**£000**|
|Hardship|-|386|**386**|-|291|**291**|
|Prizes & Awards|100|298|**398**|80|251|**331**|
|Travel & Divisions|2|4|**6**|13|23|**36**|
|Research|-|1,264|**1,264**|-|1,472|**1,472**|
|Diversity|347|176|**523**|89|246|**335**|
|Education & Outreach|163|655|**818**|144|535|**679**|
|Industry|72|-|**72**|87|-|**87**|
|Intl Engagement|32|151|**183**|31|-|**31**|
|Member Network Grants|311|-|**311**|186|-|**186**|
|**Total**|**1,027**|**2,934**|**3,961**|**630**|**2,818**|**3,448**|
The RSC provides grants through the Chemists’ Community Fund , with its primary purpose being the prevention and relief of poverty of its members. As a secondary purpose, the Chemists’ Community Fund is used for the benefit of other legally charitable purposes insofar as funds not being required for the primary purpose.
To help promote excellence in chemistry, the RSC also funds a number of prizes and awards as well as providing grants to fund education, outreach, diversity, industry, international engagement activities and travel to events and conferences.
The RSC operates a number of grant schemes to promote original research in the science of chemistry funded by the Research fund. During 2023, no single individual research grant awarded was over the value of £10k (2022: £10k).
## 6. Funding activities outturn analysis
**----- Start of picture text -----**
Note General Designated Restricted Endowment 2023 2022
funds funds income funds funds Total Total
£000 £000 £000 £000 £000 £000
Funding activity income
Donations and legacies 1 169 5 142 158 474 497
Restricted grant income 25 - - 693 - 693 395
Total 169 5 835 158 1,167 892
Funding activity costs
Direct staff costs 8 (243) - - - (243) (197)
Direct and support costs 8 (169) (25) - - (194) (230)
Total (412) (25) - - (437) (427)
Net income from funding activities (243) (20) 835 158 730 465
**----- End of picture text -----**
The RSC receives donations and legacies as well as restricted income including grants as part of its funding activities. This table provides an outturn analysis of the income generated through our funding activities and the associated costs incurred on raising funds.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
65
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 7. Total staff costs
**----- Start of picture text -----**
2023 2022
£000 £000
Gross wages and salaries 33,244 28,452
National insurance 3,498 3,117
Pension and related cost 3,376 2,661
Redundancy payments - 2
Other payments 1,308 944
Temporary staff and contractors 950 708
Total 42,376 35,884
Employee earnings Number of employees 2023 Number of employees 2022
£60,000 - £69,999 75 62
£70,000 - £79,999 47 34
£80,000 - £89,999 25 13
£90,000 - £99,999 11 5
£100,000 - £109,999 3 3
£110,000 - £119,999 2 -
£120,000 - £129,999 1 1
£130,000 - £139,999 1 2
£140,000 - £149,999 4 3
£150,000 - £159,999 1 1
£160,000 - £169,999 1 -
£190,000 - £199,999 - 1
£210,000 - £219,999 1 1
£220,000 - £229,999 1 1
£230,000 - £239,999 1 -
£280,000 - £289,999 - 1
£290,000 - £299,999 1 -
Total 175 128
**----- End of picture text -----**
As required by FRS 102, an amount of £419k (2022: £278k) relating to holiday pay owed to staff at 31 December 2023 has been accrued for. A total of 26k (2022: £3k) was paid in relation to compensation for loss of earnings under agreed settlement agreements. There were no outstanding obligations at year end. In 2023 the RSC paid a total of £Nil (2022: £2k) in respect of statutory and other employment severancerelated payments. The number of employees across the Group who earned more than £60k during the year (including taxable benefits in kind, but excluding employer pension costs) is shown in the employee earnings table.
The total number of employees earning more than £60k in 2023 was 175 (2022: 128), an increase of 47 compared to the prior year. This increase is primarily due to pay exceeding the £60k+ threshold in 2023 for certain employees following the annual base salary increases plus additional bonus and commission payments.
The number of employees who earned more than £60k, for whom pension benefits are accruing under the RSC defined contribution scheme is 161 (2022: 112). 14 employees (2022: 16 employees) did not accrue pension benefits under the RSC defined contribution scheme.
The key management personnel of the RSC comprises the trustees and the leadership team. Key management personnel are in charge of directing and controlling the charity and running and operating the charity on a day to day basis. All trustees give their time freely and no trustee remuneration was paid in the year. Details of trustee expenses and related party transactions are disclosed in note 31 to the accounts. Total employee benefits of £1,462k (2022: £1,279k) were paid to the RSC’s leadership team personnel in 2023. Employer national insurance contributions of £148k (2022: £139k) were paid over to HMRC in respect of RSC leadership team personnel. The leadership team consisted of 8 personnel in 2023 (2022: 8 personnel).
**Average monthly headcount (number of staff employed)**
|**Average monthly headcount(number of staf employed)**|||
|---|---|---|
||**2023**|2022|
|Membership|**48**|47|
|Chemistry World|**17**|16|
|Scientific conferences and events|**14**|13|
|Education and professional practice|**71**|56|
|Publishing|**352**|307|
|Advocacy and awareness|**69**|61|
|Support|**159**|148|
|Fundraising|**5**|4|
|**Total**|**735**|652|
|**Average monthly FTE**|||
||**2023**|2022|
|Total average FTE|**708**|624|
Royal Society of Chemistry | Trustees’ report and financial statements 2023
66
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 8. Total expenditure
## **Unrestricted funds**
**----- Start of picture text -----**
General funds Designated funds
Total
Direct staff Direct Support Total general Direct staff Direct Support designated 2023 2022
costs costs costs fund costs costs costs costs fund costs Total Total
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000
Expenditure on raising funds
Donations and legacies 243 13 156 412 - 4 21 25 437 427
Other trading activities 154 434 6 594 - - - - 594 349
Investment management costs - 404 - 404 - 24 - 24 428 553
Total 397 851 162 1,410 - 28 21 49 1,459 1,329
Charitable activities
Membership 1,885 1,078 1,793 4,756 25 1,535 243 1,803 6,559 5,393
Chemistry World 1,088 1,033 663 2,784 - - 90 90 2,874 2,764
Scientific conferences and events 472 1,387 429 2,288 49 9 58 116 2,404 1,922
Education and professional practice 3,002 1,943 2,222 7,167 223 129 302 654 7,821 6,002
Publishing 18,875 16,673 11,826 47,374 76 1,623 1,603 3,302 50,676 43,398
Advocacy and awareness 3,606 3,405 2,572 9,583 234 611 349 1,194 10,777 9,560
Total 28,928 25,519 19,505 73,952 607 3,907 2,645 7,159 81,111 69,039
Total expenditure 29,325 26,370 19,667 75,362 607 3,935 2,666 7,208 82,570 70,368
**----- End of picture text -----**
Direct costs and support costs include a foreign exchange loss of £243k (2022: Gain of £1,040k). Direct costs also of £469k). include debt write offs totalling £178k (2022: £169k) and doubtful debt provision releases of £71k (2022: Charge
## **Restricted funds**
**----- Start of picture text -----**
Restricted income funds Endowment funds
Total Total
Direct staff Direct Support restricted income Direct staff Direct Support endowment 2023 2022
costs costs costs fund costs costs costs costs fund costs Total Total
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000
Expenditure on raising funds
Investment management costs - 2 - 2 - 133 - 133 135 159
Total - 2 - 2 - 133 133 135 159
Charitable activities
Membership 530 1,207 - 1,737 - - - - 1,737 1,196
Scientific conferences and events - - - - - - - - - 63
Education and professional practice 67 254 7 328 - - - - 328 206
Publishing 43 301 - 344 - - - - 344 79
Total 640 1,762 7 2,409 - - - - 2,409 1,544
Total resources expended 640 1,764 7 2,411 - 133 - 133 2,544 1,703
**----- End of picture text -----**
Defined contributions and other pension related costs totalling £3,376k (2022: £2,661k) are included within direct staff costs charged to general funds and restricted income funds.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
67
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 9. Support costs
**----- Start of picture text -----**
Information Human 2023 2022
Management Finance technology Comms resources Accomm. Governance Total Total
£000 £000 £000 £000 £000 £000 £000 £000 £000
Basis of allocation Head count Head count Head count Head count Head count Head count Head count
Donations and legacies 8 23 77 13 32 21 3 177 139
Other trading activities - - - - - - 6 6 9
Membership 94 269 875 146 370 247 35 2,036 2,010
Chemistry World 35 100 323 54 137 91 13 753 715
Scientific conferences and events 22 64 210 35 89 59 8 487 446
Education and professional practice 116 334 1,085 181 459 306 50 2,531 1,922
Publishing 618 1,774 5,765 963 2,439 1,626 244 13,429 11,678
Advocacy and awareness 135 385 1,256 210 531 354 50 2,921 2,591
Total 1,028 2,949 9,591 1,602 4,057 2,704 409 22,340 19,510
**----- End of picture text -----**
## 10. Governance costs
**----- Start of picture text -----**
2023 2022
Note £000 £000
Trustee expenses 31 13 8
Legal fees - 2
Audit and accounting fees See below 115 111
Governance support costs 281 226
Total 409 347
Analysis of auditor’s remuneration
2023 2022
£000 £000
Breakdown of audit and accounting fees:
RSC charity and consolidated accounts external audit fees 66 60
Other RSC charity external audit work, including grant audits 5 5
Tax and advisory services 15 12
International external audit work 12 9
Internal audit and risk assurance services 17 25
Total 115 111
**----- End of picture text -----**
The RSC’s internal policy on the ‘use of external auditors to provide non-audit services’, limits the amount of non-audit services that can be commissioned without Audit and Risk Committee pre-approval to 50% of the average of the previous three years’ audit fee. A total of £15k (2022: £12k) of non-audit services including other tax and advisory services have been incurred in 2023, which is below the policy threshold for 2023 of £32k.
## 11. Outturn per charitable activity
**----- Start of picture text -----**
2023 2022
Net income/ Net income/
Income Expenditure (expenditure) Income Expenditure (expenditure)
£000 £000 £000 £000 £000 £000
Donations and legacies 474 (437) 37 497 (427) 70
Other trading activities 759 (594) 165 406 (349) 57
Investments 1,764 (563) 1,201 975 (712) 263
Membership 4,038 (8,296) (4,258) 4,032 (6,589) (2,557)
Chemistry World 696 (2,874) (2,178) 1,027 (2,764) (1,737)
Scientific conferences and events 1,726 (2,404) (678) 1,399 (1,985) (586)
Education and professional practice 240 (8,149) (7,909) 284 (6,208) (5,924)
Publishing 60,500 (50,676) 9,824 57,129 (43,398) 13,731
Advocacy and awareness 434 (11,121) (10,687) 154 (9,639) (9,485)
Other 227 - 227 69 - 69
Total 70,858 (85,114) (14,256) 65,972 (72,071) (6,099)
**----- End of picture text -----**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
68
Financial review
Financial statements
CONTENTS
Pg-6
Pg-11 Pg-16
Pg-8
Pg-23
Pg-25
Pg-3
Pg-5
## 12. Pension fund
**----- Start of picture text -----**
Defined benefit scheme: employee benefit obligations
2023 2022
£000 £000
Present value of funded obligations (89,660) (89,207)
Fair value of scheme assets 79,790 74,802
Net liability (9,870) (14,405)
Defined benefit scheme: Statement of financial activities impact
2023 2022
£000 £000
Net interest cost (658) (463)
Total expense (658) (463)
Defined benefit scheme: Amount recognised in the Statement of financial activities after net income/(expenditure)
2023 2022
£000 £000
Remeasurement on defined benefit scheme liability 2,693 10,414
Net cumulative actuarial losses (13,036) (15,729)
**----- End of picture text -----**
**Defined benefit scheme: Reconciliation of fair value of the defined benefit obligation and fair value of plan assets**
**----- Start of picture text -----**
2023 2022
£000 £000
Change in the present value of the defined benefit obligation:
Opening defined benefit obligation (89,207) (139,114)
Interest expense (4,359) (2,468)
Actuarial (loss)/gain (178) 48,395
Benefits paid 4,084 3,980
Closing defined benefit obligation (89,660) (89,207)
Change in the fair value of plan assets:
Opening fair value of plan assets 74,802 111,958
Interest Income 3,701 2,005
Return on plan assets less interest income 2,871 (37,981)
Contributions by employer 2,500 2,800
Benefits paid (4,084) (3,980)
Closing fair value of plan assets 79,790 74,802
**----- End of picture text -----**
## **Group and Charity**
The RSC operates a defined benefit scheme in the UK. This is a fund, administered by independent and separate trustees, holding the pension scheme assets to meet long term pension liabilities. A full actuarial valuation was carried out at 31 December 2022 by a qualified actuary, independent of the scheme’s sponsoring employer. The major assumptions used by the actuary are shown in this note. The most recent actuarial valuation showed a deficit of £14,996k. The RSC has agreed with the trustees that it will aim to eliminate the deficit by annual payments as per an agreed recovery plan for a period of 4 years and 8 months from 1 January 2023 to 31 August 2027.
In addition, the RSC earmarked £15m in 2018 to facilitate a buyout transaction in 2033, which will provide a permanent resolution to the deficit and fully discharge the RSC’s obligations to the defined pension fund. In 2020 the RSC transferred a further £9m to a new designated fund to ensure we can meet our remaining contractual commitments in the recovery plan. Refer to note 26 for more detail.
The difference of £5,126k between the triennial actuarial valuation net liability of £14,996k and the FRS 102 net liability of £9,870k shown in these financial statements arises due to differences in the dates at which the respective valuations took place and the differences in the valuation basis applied. The triennial actuarial valuation (carried out at 31 December 2022) allows for the actual investments in which the Scheme is invested, and these expected returns are used to discount the liabilities. In contrast the FRS 102 valuation (carried out as at 31 December 2023) discounts the liabilities using the yield on high quality corporate bonds as required by accounting standards.
The RSC also operates a defined contribution scheme. The contributions are administered by investment managers on behalf of the employees. The cost for the year to the employer was £3,304k (2022: £2,613k).
The actual gain on the plan assets over the period ended 31 December 2023 was £6,572k (31 December 2022: loss of £35,976k).
Royal Society of Chemistry | Trustees’ report and financial statements 2023
69
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 12. Pension fund (continued)
## **Defined benefit scheme: Principal actuarial assumptions at the balance sheet date**
**----- Start of picture text -----**
At 31/12/2023 At 31/12/2022
% %
Rate of discount 4.80 5.00
Inflation (RPI) 3.15 3.25
Inflation (CPI) 2.35 2.25
Salary increases n/a n/a
Allowance for revaluation of deferred pensions of CPI or 5% p.a. if less 2.35 2.25
Allowance for revaluation of deferred pensions of CPI or 2.5% p.a. if less 2.35 2.25
Allowance for pension in payment increases of RPI or 5% p.a. if less 3.00 3.00
Allowance for pension in payment increases of RPI or 3.5% p.a. if less 2.55 2.55
Allowance for commutation of pension for cash at retirement 90% take-up 90% take-up
Defined benefit scheme: The mortality assumptions adopted at 31 December imply the following life expectancies:
Life expectancy (years) Life expectancy (years)
At 31/12/2023 At 31/12/2022
Male retiring in 2023 (2022) 26.7 27.1
Female retiring in 2023 (2022) 28.9 29.0
Male retiring in 2043 (2042) 28.2 28.6
Female retiring in 2043 (2042) 30.4 30.5
Defined benefit scheme: assets in the plan as a percentage of total plan assets
At 31/12/2023 At 31/12/2022
Equity instruments and Other 74% 74%
Debt instruments 25% 25%
Cash 1% 1%
Defined benefit scheme: Movement in net liability during the year
2023 2022
£000 £000
Net liability at beginning of the year (14,405) (27,156)
Movement in year
Employer's contributions 2,500 2,800
Interest Income 3,701 2,005
Return on plan assets less interest income 2,871 (37,981)
Interest on pension liabilities (4,359) (2,468)
Experience gains arising on the plan liabilities 1,535 (6,357)
Changes in assumptions underlying the plan liabilities (1,713) 54,752
Total movement 4,535 12,751
Deficit in plan at end of the year (9,870) (14,405)
Defined contribution scheme
2023 2022
£000 £000
Employer's contributions 3,304 2,613
**----- End of picture text -----**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
70
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 13. Operating leases
Charges under operating leases to the Statement of Financial Activities during the year was £32k (2022: £35k).
At 31 December the RSC was committed to making the following payments for each of the following periods:
## **Group and charity**
|**Group and charity**|||
|---|---|---|
||**2023**|2022|
||**£000**|£000|
|**Leases payments:**|||
|Within a year|**32**|34|
|Within two to five years|**15**|15|
|Later than five years|**1,073**|1,076|
|**Total**|**1,120**|1,125|
The RSC, along with the four other courtyard societies, have been in negotiation with the landlord of Burlington House regarding the purchase of the long term leasehold of the property. As of the 8th March 2024, The UK Department for Levelling Up, Housing and Communities announced the successful conclusion of these negotiations which grants the RSC a 999 year leasehold agreement for our part of Burlington House.
The final contracting stage is currently underway and as such future financial commitments have not yet been finalised and therefore are not included in these accounts. Current rent payments are made up to date with retrospective rent increases in the process of being discussed and agreed with the landlord, with appropriate financial provision made based on our assessment of the likely outcome.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
71
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 14. Intangible fixed assets
## **Group**
**----- Start of picture text -----**
Index and databases Web platform Total
£000 £000 £000
Cost
Balance at 1 January 2023 1,768 3,651 5,419
Disposals - (120) (120)
Balance at 31 December 2023 1,768 3,531 5,299
Accumulated amortisation
Balance at 1 January 2023 1,755 3,636 5,391
Disposals - (120) (120)
Charge for Year 3 13 16
Balance at 31 December 2023 1,758 3,529 5,287
Net book value at 31 December 2023 10 2 12
Net book value at 31 December 2022 13 15 28
Charity
Index and databases Web platform Total
£000 £000 £000
Cost
Balance at 1 January 2023 726 3,651 4,377
Transfers - (120) (120)
Balance at 31 December 2023 726 3,531 4,257
Accumulated amortisation
Balance at 1 January 2023 713 3,636 4,349
Charge for Year - (120) (120)
Transfers 3 13 16
Balance at 31 December 2023 716 3,529 4,245
Net book value at 31 December 2023 10 2 12
Net book value at 31 December 2022 13 15 28
**----- End of picture text -----**
The intangible asset index relates to the intellectual property rights of the Merck Index acquired for $750k by the RSC during 2012. The intangible asset database relates to ChemSpider owned by RSC Worldwide Limited and Marin Lit owned by the RSC. RSC Worldwide Limited is a wholly owned subsidiary of the RSC.
The web platform provides access to RSC online purchases of journal articles, books, CPD courses and other ecommerce purchases and is owned by the RSC. The amortisation charge for the year is included as part of support costs which in turn are allocated across expenditure headings in the consolidated statement of financial activities, as detailed in notes 8 and 9.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
72
Financial review
Financial statements
CONTENTS
Pg-6 Pg-8 Pg-11
Pg-16
Pg-23
Pg-25
Pg-3
Pg-5
## 15. Tangible fixed assets
## **Group**
**----- Start of picture text -----**
Leasehold land and buildings Fixtures, fittings and equipment Total
£000 £000 £000
Cost
Balance at 1 January 2023 9,101 9,701 18,802
Additions - 671 671
Disposals - (331) (331)
Transfers 70 (149) (79)
Balance at 31 December 2023 9,171 9,892 19,063
Accumulated depreciation
Balance at 1 January 2023 6,148 8,148 14,296
Disposals - (322) (322)
Charge for year 250 454 704
Transfers 80 (159) (79)
Balance at 31 December 2023 6,478 8,121 14,599
Net book value at 31 December 2023 2,693 1,771 4,464
Net book value at 31 December 2022 2,953 1,553 4,506
Charity
Leasehold land and buildings Fixtures, fittings and equipment Total
£000 £000 £000
Cost
Balance at 1 January 2023 9,101 9,529 18,630
Additions - 156 156
Disposals - (331) (331)
Transfers 70 (149) (79)
Balance at 31 December 2023 9,171 9,205 18,376
Accumulated depreciation
Balance at 1 January 2023 6,148 7,992 14,140
Disposals - (323) (323)
Charge for Year 250 242 492
Transfers 80 (159) (79)
Balance at 31 December 2023 6,478 7,752 14,230
Net book value at 31 December 2023 2,693 1,453 4,146
Net book value at 31 December 2022 2,953 1,537 4,490
**----- End of picture text -----**
The RSC has not adopted a revaluation accounting policy and the asset classes disclosed in this note are capitalised at cost. During 2023, an updated valuation of the Thomas Graham House (TGH) building in Cambridge took place for scenario planning purposes.
Transfers relate to items which have been reclassified within the Fixed Asset Register during the year and where corrections between cost and accumulated depreciation have taken place.
## **Heritage Assets**
As one of the foremost chemical societies in the world, the RSC is the guardian of an extensive historical collection of over 3,500 books, the oldest of which dates back to 1505, and over 2,000 journals. The collection is primarily composed of materials from the Chemical Society, further augmented by the collections of other societies and further added to by donations, bequests and loans.
The library provides access to items of interest to walk-in visitors, whilst other, older and more valuable items are kept securely elsewhere throughout Burlington House. Many of the items within the collection are irreplaceable originals to which no reliable value can be attributed.
Reliable cost information or comprehensive valuations are not readily available for these assets and such information cannot be obtained at a cost commensurate with the benefit to the users of the accounts and to the RSC. Accordingly, these assets are not capitalised in the financial statements. The Trustees take the view that any further and detailed particulars of the numerous items making up this collection would unduly clutter the accounts and thus detract from their primary purpose.
Due to the importance of the collection the RSC has a policy to not dispose of any items held within it.
During 2023 a donation of approximately 140 books published between 1930 and 2010 was made to the RSC. A further donation of 15 books published between 1826 and 1928 was also received. (2022: c350 additions)
There were no disposals (2022: Nil)
Royal Society of Chemistry | Trustees’ report and financial statements 2023
73
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 16. Fixed asset investments
## **Group and charity**
**----- Start of picture text -----**
Unrestricted funds Restricted funds
General Designated Restricted Endowment 2023 2022
funds funds income funds funds Total Total
£000 £000 £000 £000 £000 £000
Investments listed on recognised stock exchange in the UK
Mixed funds - - - - - 23,722
Investments listed on recognised stock exchange outside the UK
Fixed income 13,835 5,583 325 6,781 26,524 33,381
Equities 9,378 3,785 220 4,596 17,979 13,203
Mixed funds 28,852 11,643 678 14,140 55,313 28,285
Total investments listed on recognised stock exchange 52,065 21,011 1,223 25,517 99,816 98,591
Cash held for investment 1,970 795 47 965 3,777 12,623
FX hedging (325) (131) (8) (159) (623) (198)
Total liquid investments 1,645 664 39 806 3,154 12,425
Total investments 53,710 21,675 1,262 26,323 102,970 111,016
**----- End of picture text -----**
## **Movement in market value**
**----- Start of picture text -----**
||||||||
|---|---|---|---|---|---|---|
|Unrestricted funds|Restricted funds|
|General|Designated|Restricted|Endowment|2023|2022|
|funds|funds|income funds|funds|Total|Total|
|£000|£000|£000|£000|£000|£000|
|Investments listed on recognised stock exchange|
|Market value at 1 January 2023|56,627|18,952|1,348|21,664|98,591|123,235|
|Realised and unrealised gains/(losses)|4,586|349|32|1,661|6,628|(9,643)|
|Net transfers to cash held for investment|(9,148)|1,710|(157)|2,192|(5,403)|(15,001)|
|Market value at 31 December 2023|52,065|21,011|1,223|25,517|99,816|98,591|
|Cash and liquid assets held for investment|
|Market value at 1 January 2023|7,273|2,420|367|2,365|12,425|(289)|
|Transfers from investments|
|9,148|(1,710)|157|(2,192)|5,403|15,001|
|listed on recognised stock exchange|
|Investment management costs|(404)|(24)|(2)|(133)|(563)|(712)|
|Cost accrual movements|(72)|-|3|(30)|(99)|85|
|Investment income|1,260|71|433|-|1,764|975|
|Add: Capital contributions|(15,350)|-|-|-|(15,350)|(4,000)|
|Less: Capital distributions|-|-|(913)|913|-|-|
|Movements on FX Hedging|(210)|(93)|(6)|(117)|(426)|1,365|
|Market value at 31 December 2023|1,645|664|39|806|3,154|12,425|
|Total investments at 31 December 2023|53,710|21,675|1,262|26,323|102,970|111,016|
**----- End of picture text -----**
During the year, £15,350k was withdrawn from investment portfolios (2022: £4,000k), and £Nil was deposited in the investment portfolios (2022: £Nil).
The sum of ‘realised and unrealised gains/(losses)’ of £6,628k and ‘movements on FX hedging’ of (£426k) equates to a total investment return of £6,202k for 2023 (2022 Loss: £8,278k).
The historical cost of investments held at fair value as at 31 December 2023 is £92,199k (2022: £90,709k).
Royal Society of Chemistry | Trustees’ report and financial statements 2023
74
Financial review
Financial statements
CONTENTS
Pg-6 Pg-8
Pg-11 Pg-16 Pg-23
Pg-25
Pg-3
Pg-5
## 17. Investment in subsidiaries
## **Charity**
|**Charity**|||
|---|---|---|
||**Investment**|**Capital and Reserves**|
||**£**|**£000**|
|RSC Worldwide Limited*|100|405|
|RSC Worldwide (US) Inc**|6,431|762|
|RSC Worldwide (Germany) GmbH**|21,869|192|
|Chemistry Limited*|2|269|
|RSC (Beijing) Chemical and Science Technology Consulting Co., Ltd.**|120,000|1,325|
|Royal Chemistry India Private Limited***|157,272|761|
|Royal Society of Chemistry Japan K.K.**|69,729|234|
|Royal Chemistry India Foundation****|151|83|
|Friends of the RSC, Inc.|-|30|
- RSC owns 100% of the Issued Share Capital.
- ** RSC Worldwide Limited owns 100% of the Issued Share Capital.
- *** RSC Worldwide Limited owns 99.99% of the Issued Share Capital.
- **** Royal Chemistry India Private Limited owns 100% of the Issued Share Capital.
The Consolidated Balance Sheet incorporates the above balance sheets of these subsidiary companies after elimination of the intercompany debtor and creditor balances due to and from the RSC.
The primary purpose of all subsidiaries with the exception of Chemistry Limited is to promote the RSC and its charitable objectives in different territories of the world.
The activities of RSC Worldwide Limited span across publishing, scientific conferences and events.
The principal activity of Chemistry Limited is to promote Burlington House as a unique venue for both chemistry and non-chemistry related events and to facilitate the nonprimary purpose trading of the RSC.
## **2023 profit and loss and balance sheet for the charity’s controlled subsidiaries**
**----- Start of picture text -----**
RSC Worldwide Limited Chemistry Limited
Registered no. 06702733 Registered no. 03801760
2023 2022 2023 2022
£000 £000 £000 £000
Profit and loss account
Gross income 6,962 6,318 759 406
Total expenditure (6,054) (5,530) (594) (349)
Profit for the financial year 908 788 165 57
Gift aid distributed (1,345) (883) - -
Balance sheet
Aggregate assets 4,465 3,689 922 496
Aggregate liabilities (4,060) (2,847) (654) (392)
Total funds 405 842 268 104
**----- End of picture text -----**
The directors of RSC Worldwide Limited and Chemistry Limited have passed a resolution to pay any taxable profits made to the RSC under Gift Aid within 9 months of the year end. In 2023 a total of £1,345k (2022: £883k) was paid over to the RSC under Gift Aid.
£845k related to the distribution of RSC Worldwide Limited’s 2022 taxable profits and the remaining £500k was a part payment in respect of 2023 taxable profits. The remaining balance will be paid in 2024.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
75
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 18. Debtors
**----- Start of picture text -----**
Group Group Charity Charity
2023 2022 2023 2022
£000 £000 £000 £000
Trade debtors
Journal subscriptions 7,422 11,673 7,422 11,673
Journal covers 195 228 195 228
Open access 198 249 198 249
Advertising 295 234 179 201
Book distribution 369 286 369 286
Venue hire 114 70 - -
Other trade debtors 118 252 117 252
Total trade debtors 8,711 12,992 8,480 12,889
Other debtors 1,972 2,024 1,396 1,493
Amounts due from group undertakings - - 1,102 858
Prepayments and accrued income 2,741 2,229 2,658 2,163
Total 13,424 17,245 13,636 17,403
**----- End of picture text -----**
Trade debtors are shown net of doubtful debt provision which totals £654k (2022: £725k) for the Group and £628k (2022: £609k) for the Charity. A total of £71k was released to the SOFA in 2023 (2022: £469k charged to the SOFA) which reflects the net value of bad debts provided for in prior years which were recovered in 2023. In addition, total bad debt write-offs of £178k (2022: £169k) were charged to expenditure during 2023. The largest individual provision amounting to US$507k relates to a journal subscriptions debt held with a South American consortia which has remained outstanding since 2021.
The bulk of trade debtors relates to journal subscriptions, which total £7,422k (2022: £11,673k). Our journal subscription debtors have decreased by £4,251k compared to 2022. The main reason for the decrease is due to the completion of contracts for the 2024 subscription year being less advanced as at 31 December when compared with the prior year. As a result, less orders were billed in 2023 compared to 2022 and resulted in a decrease in debtors raised as well as an associated decrease in deferred income at year end.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
76
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 19. Creditors: Amounts falling due within one year
||**Group**|Group|**Charity**|Charity|
|---|---|---|---|---|
||**2023**|2022|**2023**|2022|
||**£000**|£000|**£000**|£000|
|Trade creditors|**(1,400)**|(1,865)|**(1,277)**|(1,705)|
|Other creditors|**(1,153)**|(725)|**(793)**|(651)|
|Taxation and social security|**(957)**|(940)|**(955)**|(936)|
|Amounts due to group undertakings|**-**|-|**(1,688)**|(942)|
|Accruals|**(4,289)**|(4,857)|**(3,902)**|(4,493)|
|**Total creditors**|**(7,799)**|(8,387)|**(8,615)**|(8,727)|
|Deferred income|**(20,531)**|(25,410)|**(20,347)**|(25,340)|
|**Total**|**(28,330)**|(33,797)|**(28,962)**|(34,067)|
Deferred income in short term creditors represents income from subscriptions relating to the 2024 financial year. Revenue held in short term deferred income will be recognised in full during the 2024 financial year. The bulk of deferred income falling due within one year relates to journal subscriptions which total £18,952k (2022: £24,045k) for the Group and £18,952k (2022: £24,044k) for the Charity. Substantially all of the deferred income as at 31 December 2022 was released to the Statement of Financial Activities in the year ended 31 December 2023.
Deferred income has decreased by £4,879k compared to 2022. The main reason for the decrease is due to the completion of contracts for the 2024 subscription year being less advanced as at 31 December when compared with the prior year.
## 20. Creditors: Amounts falling due after more than one year
||**Group**|Group|**Charity**|Charity|
|---|---|---|---|---|
||**2023**|2022|**2023**|2022|
||**£000**|£000|**£000**|£000|
|Deferred income|**(645)**|(638)|**(645)**|(638)|
|**Total**|**(645)**|(638)|**(645)**|(638)|
Deferred income in long term creditors represent income from subscriptions relating to the 2025 financial year and beyond and the associated income will be recognised in the financial years to which they relate.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
77
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 21. Analysis of net assets between funds
## **Group**
**----- Start of picture text -----**
Unrestricted funds Restricted funds
General Restricted income
funds Designated funds Pension reserve funds Endowment funds Total
£000 £000 £000 £000 £000 £000
Fund balances at 31 December 2022 are represented by:
Tangible fixed assets - 4,506 - - - 4,506
Intangible fixed assets - 28 - - - 28
Investments 63,900 21,372 - 1,715 24,029 111,016
Net current (liabilities)/assets (32,992) 38,071 - (1,135) (990) 2,954
Long term creditors (638) - - - - (638)
Pension liability - - (14,405) - - (14,405)
Total net assets 30,270 63,977 (14,405) 580 23,039 103,461
Fund balances at 31 December 2023 are represented by:
Tangible fixed assets - 4,464 - - - 4,464
Intangible fixed assets - 12 - - - 12
Investments 53,710 21,675 - 1,262 26,323 102,970
Net current (liabilities)/assets (25,262) 30,074 - (636) (3,007) 1,169
Long term creditors (645) - - - - (645)
Pension liability - - (9,870) - - (9,870)
Total net assets 27,803 56,225 (9,870) 626 23,316 98,100
Charity
**----- End of picture text -----**
|**Charity**||||||
|---|---|---|---|---|---|
||General
funds
£000|**Unrestricted funds**
Designated funds
£000|Pension reserve
£000|**Restricted funds**
Restricted income
funds
Endowment funds
**Total**
£000
£000
**£000**||
|**Fund balances at 31 December 2022 are represented by:**
Tangible fixed assets
Intangible fixed assets
Investments
Net current (liabilities)/assets
Long term creditors
Pension liability
**Total net assets**|-
-
63,900
(36,379)
(638)
-
26,883|4,490
28
21,372
38,087
-
-
63,977|-
-
-
-
-
(14,405)
(14,405)|-
-
1,715
(1,309)
-
-
406|-
**4,490**
-
**28**
24,029
**111,016**
(990)
**(591)**
-
**(638)**
-
**(14,405)**
23,039
**99,900**|
|**Fund balances at 31 December 2023 are represented by:**||||||
|Tangible fixed assets|-|4,146|-|-|-
**4,146**|
|Intangible fixed assets|-|12|-|-|-
**12**|
|Investments|53,710|21,675|-|1,262|26,323
**102,970**|
|Net current (liabilities)/assets|(28,596)|30,392|-|(749)|(3,007)
**(1,960)**|
|Long term creditors|(645)|-|-|-|-
**(645)**|
|Pension liability|-|-|(9,870)|-|-
**(9,870)**|
|**Total net assets**|24,469|56,225|(9,870)|513|23,316
**94,653**|
Tangible and intangible assets are represented within designated funds from 2020 onwards due to a Board of Trustees’ resolution to move the balance held within tangible and intangible assets to a specific designated fund to aid transparency of usable general funds.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
78
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 22. Financial derivatives
Forward exchange contracts are used to manage exposure to currency exchange risk.
Forward contracts to the value of US$17,000k were entered into during the year ended 31 December 2023 (2022: US$16,500k).
Forward contracts totalling US$16,500k (2022: US$16,000k) matured during 2023. As at 31 December 2023 there were forward contracts totalling US$13,000k which will mature in the next financial year (2022: US$12,500k). The year end valuation on the open forward contracts resulted in a fair value gain of £316k (2022: gain of £308k).
## 23. Financial Assets and Liabilities
|23. Financial Assets and Liabilities|||||
|---|---|---|---|---|
||**Group**|Group|**Charity**|Charity|
||**2023**|2022|**2023**|2022|
||**£000**|£000|**£000**|£000|
|Financial assets measured at fair value through income and expenditure|**103,286**|111,324|**103,286**|111,324|
||||||
Fixed Asset Investments are valued at quoted prices through the recognised stock exchange in the UK and outside the UK.
The RSC uses forward foreign currency contracts to reduce exposure to foreign exchange rates. The fair value of the forward currency contracts is calculated by reference to current forward exchange contracts with similar maturity profiles.
## 24. Royal Society Of Chemistry
Included in the accounts is income of £77,437k (2022: £57,888k) from the RSC as a single entity and a deficit of £7,940k (2022: £15,030k deficit).
Royal Society of Chemistry | Trustees’ report and financial statements 2023
79
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 25. Restricted funds
## **Group – movement in funds**
**----- Start of picture text -----**
Restricted income funds Endowment funds
Chemists’ Trust and Friends of Royal Chemistry Chemists’ Trust and Total
Community Fund lecture funds Grant income the RSC, Inc. India Foundation Community Fund lecture funds restricted funds
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000
Balance at 1 January 2022 - 421 15 30 91 557 17,563 8,055 25,618 26,175
Income 146 72 238 - 157 613 293 - 293 906
Expenditure (1,017) (180) (245) - (104) (1,546) (109) (48) (157) (1,703)
Gains on investment assets - (27) - - - (27) (1,209) (523) (1,732) (1,759)
Transfers 871 112 - - - 983 (871) (112) (983) -
Balance at 31 December 2022 - 398 8 30 144 580 15,667 7,372 23,039 23,619
Income 294 152 550 - 143 1,139 39 119 158 1,297
Expenditure (1,423) (315) (469) - (204) (2,411) (92) (41) (133) (2,544)
Gains on investment assets - 26 - - - 26 1,069 475 1,544 1,570
Transfers 1,129 163 - - - 1,292 (1,129) (163) (1,292) -
Balance at 31 December 2023 - 424 89 30 83 626 15,554 7,762 23,316 23,942
**----- End of picture text -----**
## **Charity – movement in funds**
**----- Start of picture text -----**
Restricted income funds Endowment funds
Total restricted Total
Chemists’ Trust and income funds Chemists’ Trust and endowment funds Total
Community Fund lecture funds Grant income Community Fund lecture funds restricted funds
£000 £000 £000 £000 £000 £000 £000 £000
Balance at 1 January 2022 - 421 15 436 17,563 8,055 25,618 26,054
Income 146 72 238 456 293 - 293 749
Expenditure (1,017) (180) (245) (1,442) (109) (48) (157) (1,599)
Losses on investment assets - (27) - (27) (1,209) (523) (1,732) (1,759)
Transfers 871 112 - 983 (871) (112) (983) -
Balance at 31 December 2022 - 398 8 406 15,667 7,372 23,039 23,445
Income 294 152 550 996 39 119 158 1,154
Expenditure (1,423) (315) (469) (2,207) (92) (41) (133) (2,340)
Gains on investment assets - 26 - 26 1,069 475 1,544 1,570
Transfers 1,129 163 - 1,292 (1,129) (163) (1,292) -
Balance at 31 December 2023 - 424 89 513 15,554 7,762 23,316 23,829
**----- End of picture text -----**
As required by the Statement of Recommended Practice, investment income attributable to endowments cannot be added to endowment capital and instead the income is allocated to restricted income funds. Endowment related expenses, with the exception of investment management fees, are charged to restricted income funds.
## **Chemists’ Community Fund**
Note 27 to these financial statements provides a memorandum account disclosing the Chemists’ Community Fund income and expenditure for the year ended 31 December 2023.
## **Trust and lecture funds**
Note 28 to these financial statements provides a breakdown of Trust and lecture funds.
## **Transfers**
Transfers from expendable endowment funds to restricted income funds take place to match the expenditure funded from expendable endowments. The transfer of £1,129k out of the CCF endowment funds to the CCF restricted income fund was required to meet expenditure incurred within restricted income. A £163k transfer out of expendable endowment trust funds to restricted income trust funds was also required to meet expenditure incurred within restricted income.
Transfers from general funds to restricted income funds takes place where expenditure incurred is in excess of income generated and brought forward available funds. There were £Nil transfers into restricted income funds from general funds in 2023.
Refer to note 26 and note 28 for more detail on transfers between funds.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
80
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 26. Unrestricted funds
## **Group and Charity**
**Movement in unrestricted funds**
**----- Start of picture text -----**
General funds Funds held within Designated Pension
(free reserves) non-charitable activities funds reserve Total
£000 £000 £000 £000 £000
Balance at 1 January 2022 38,010 2,787 67,608 (27,156) 81,249
Income 57,249 6,727 1,090 - 65,066
Expenditure (58,664) (6,127) (5,114) (463) (70,368)
Losses on investment assets (4,977) - (1,542) - (6,519)
Transfers (4,735) - 1,935 2,800 -
Actuarial gain - - - 10,414 10,414
Balance at 31 December 2022 26,883 3,387 63,977 (14,405) 79,842
Income 60,561 7,729 1,271 - 69,561
Expenditure (66,922) (7,782) (7,208) (658) (82,570)
Gains on investment assets 4,376 - 256 - 4,632
Transfers (429) - (2,071) 2,500 -
Actuarial gain - - - 2,693 2,693
Balance at 31 December 2023 24,469 3,334 56,225 (9,870) 74,158
**----- End of picture text -----**
## **Pension reserve**
The RSC operates a defined benefit scheme in the UK. Refer to note 12 of these financial statements for more detail.
## **Group and Charity**
## **Designated funds – movement in funds**
|**Balance at**|||Losses on||**Balance at**|||Gains on||**Balance at**|
|---|---|---|---|---|---|---|---|---|---|---|
|**1 January**|||investment||**31 December**|||investment||**31 December**|
|**2022**|Income|Expenditure|assets|Transfers|**2022**|Income|Expenditure|assets|Transfers|**2023**|
|**£000**|£000|£000|£000|£000|**£000**|£000|£000|£000|£000|**£000**|
|Fixed assets reserve
**4,977**|-|-|-|(459)|**4,518**|-|-|-|(360)|**4,158**|
|Pension scheme recovery fund
**9,000**|-|-|-|(2,800)|**6,200**|-|-|-|(2,000)|**4,200**|
|Strategic alignment reserve
**7,939**|-|(1,188)|-|(5,100)|**1,651**|-|(1,582)|-|-|**69**|
|Strategic initiatives fund
**11,056**|14|(1,150)|-|-|**9,920**|-|(1,247)|-|-|**8,673**|
|New Ventures Fund
**5,161**|-|(47)|-|-|**5,114**|-|(58)|-|-|**5,056**|
|Technology Roadmap fund
**2,725**|-|(1,430)|-|-|**1,295**|-|(1,295)|-|-|**-**|
|Pension long term strategy fund
**18,385**|148|(96)|(1,266)|-|**17,171**|-|-|-|-|**17,171**|
|TGH repairs fund
**1,100**|-|-|-|-|**1,100**|-|(13)|-|-|**1,087**|
|Publishing Business Modernisation
**-**|-|(206)|-|10,100|**9,894**|-|(1,528)|-|-|**8,366**|
|Member networks
**2,127**|894|(947)|-|191|**2,265**|1,200|(1,448)|-|289|**2,306**|
|Trust and lecture funds
**5,138**|34|(50)|(276)|3|**4,849**|71|(37)|256|-|**5,139**|
|**Total**
**67,608**|**1,090**|**(5,114)**|**(1,542)**|**1,935**|**63,977**|**1,271**|**(7,208)**|**256**|**(2,071)**|**56,225**|
Royal Society of Chemistry | Trustees’ report and financial statements 2023
81
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23 Pg-25
Pg-11
Pg-3
Pg-5
## 26. Unrestricted funds (continued)
## **Fixed assets reserve**
The Fixed Assets Reserve mirrors the current balance held in fixed assets. Fixed assets represent a portion of the free reserves which are locked and not readily available and historically have been deducted from general funds when calculating the free reserves number. Transferring the tangible assets and intangible assets net book value to this separate designated fund improves transparency of the amount of spendable funds on the face of the balance sheet.
## **Pension scheme recovery fund**
The Pension Scheme Recovery Fund ensures we can meet our remaining contractual commitments in the Recovery Plan
## **Strategic alignment reserve**
The Strategic Alignment Reserve will enable strategy implementation, realignment of our priorities and implement our cost efficiencies programme.
## **Strategic initiatives fund**
The fund will be used to deliver impactful charitable activities over the next five to ten years and to enable the delivery of the RSC’s Strategy by funding the non-recurring costs of major projects without having to afford this from day-to-day operating budgets.
## **New ventures fund**
Previously referred to as the commercial strategy fund, this fund will enable investment into new revenue generating activities, including commercial acquisitions, over the duration of the Commercial Strategy (until 2025).
## **Technology Roadmap Fund**
## **Publishing Business Modernisation**
This fund was created during 2022 to deliver our publishing strategic objectives over the next five years, supporting the open access transition and journal business growth as well as the development and modernisation of our publishing platforms.
## **Member networks**
Each Member Network has, as its objectives, those that are embodied in the RSC’s Charter. There is no time frame for usage of the funds. The groups can use the funds as needed for their ongoing activities.
## **Trust and lecture funds**
Note 28 to these financial statements provides a breakdown of Trust and lecture funds. There is no time frame for usage of the funds.
## **Transfers**
Transfers between funds arise when there is a charge from unrestricted general funds to other funds or releases from designated funds back to general funds.
The £2,500k transfer from the Pension scheme recovery fund to the pensions reserve (2022: £2,800k) reflects the employer defined benefit recovery plan contributions paid in the year. A £500k transfer from the General Fund to the Pension scheme recovery fund (2022: £Nil) also took place to ensure we continue to meet our remaining defined benefit pension fund recovery plan commitments.
The £289k transfer from general funds to designated funds (2022: £191k) reflects the grants made by the RSC to Member networks to support activities at the level.
The fund comprises four strategic programmes which have been developed to support the RSC strategic objectives.
## **Pension long term strategy fund**
A capital sum of £15m was earmarked in 2018 to facilitate a buyout transaction of £30m in 2033, which will provide a permanent resolution to the deficit and fully discharge the RSC’s employer obligations to the defined benefit pension fund. It was determined in 2023 that a fund level of £17m was sufficiently appropriate to meet these obligations.
## **TGH repairs fund**
Future capital repairs planned on the Thomas Graham House (TGH) building over the next five to ten years will be funded from this designated fund.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
82
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 27. Chemists’ Community Fund Memorandum Account
The RSC Chemists’ Community Fund was established to provide financial relief of its Beneficiaries, and insofar as the income is not required for such relief, to carry out such other legally charitable purpose as the RSC shall in its absolute discretion think fit. The Chemists’ Community Fund operates within a well defined strategy to provide a flexible range of financial and non-financial help to members and their dependants to relieve poverty.
In addition, and where funds allow, the funding of initiatives prioritising support for those most in need in our community.
This memorandum account discloses the Chemists’ Community Fund income and expenditure for the year ended 31 December 2023.
**----- Start of picture text -----**
2023 2022
Expendable
Restricted Expendable Restricted endowment
income funds endowment funds Total income funds funds Total
£000 £000 £000 £000 £000 £000
Income
Casual Donations - 20 20 - 11 11
Legacies and Bequests - 19 19 - 282 282
Investment Income 294 - 294 146 - 146
Total income 294 39 333 146 293 439
Expenditure
Grants Awarded (784) - (784) (468) - (468)
Investment & Banking Fees - (92) (92) - (109) (109)
Staff Costs (495) - (495) (413) - (413)
Volunteer and Member expenses (15) - (15) (12) - (12)
Other (129) - (129) (124) - (124)
Total expenditure (1,423) (92) (1,515) (1,017) (109) (1,126)
Net (expenditure)/income before investment gains (1,129) (53) (1,182) (871) 184 (687)
Gains on investment assets - 1,069 1,069 - (1,209) (1,209)
Net (expenditure)/income (1,129) 1,016 (113) (871) (1,025) (1,896)
Transfer between funds 1,129 (1,129) - 871 (871) -
Net movement in funds (decrease) - (113) (113) - (1,896) (1,896)
Reconciliation of funds
Fund balances brought forward - 15,667 15,667 - 17,563 17,563
Fund balances carried forward - 15,554 15,554 - 15,667 15,667
**----- End of picture text -----**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
83
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 28. Trust and lecture funds
Trust and lecture funds with either an opening or closing cumulative balance over £100k are disclosed in the table below together with the movements that have
taken place during 2023. All other trust and lecture funds that fall below the £100k threshold have been grouped together for each fund type.
## **Fund Balances as at 31 December 2021**
**----- Start of picture text -----**
2023
Accumulated
2023 investment 2023 2022
Opening balance Donations Income Expenditure movement Transfers Closing balance Closing balance
£000 £000 £000 £000 £000 £000 £000 £000
Designated funds
Research Fund 1,480 - 20 (6) 70 - 1,564 1,480
Saville Fund 147 - 2 (1) 7 - 155 147
A Spinks Symposia Fund 144 - 2 (1) 7 - 152 144
Marriot Legacy 233 - 3 (5) 12 - 243 233
W A Waters 258 - 3 (1) 13 - 273 258
Colman-Porter Fund 399 - 5 (2) 19 - 421 399
Memorial Fund 132 - 2 (1) 6 - 139 132
Sir Derek Barton Fund 1,812 - 31 (18) 110 - 1,935 1,812
C Sulzbacher 104 - 1 - 5 - 110 104
Other designated trust funds 140 - 2 (2) 7 - 147 140
Total 4,849 - 71 (37) 256 - 5,139 4,849
Restricted income
A Robertson Bequest 251 - 4 (1) 17 - 271 251
Other restricted income trust funds 147 - 148 (314) 9 163 153 147
Total 398 - 152 (315) 26 163 424 398
Expendable endowment
William Briggs Fund 227 - - (1) 15 - 241 227
J O Cutter 764 - - (4) 49 (19) 790 764
Charles Rees Award 122 - - (1) 8 - 129 122
Sir G Wilkinson Fund - 119 - - - (9) 110 -
Recognition Fund 2,102 - - (11) 135 (135) 2,091 2,102
Other expendable endowment trust funds 77 - - - 5 - 82 77
Total 3,292 119 - (17) 212 (163) 3,443 3,292
Permanent endowment
Sir Derek Barton Award Fund 268 - - (2) 17 - 283 268
Recognition Fund 3,812 - - (22) 246 - 4,036 3,812
Other permanent endowment trust funds - - - - - - - -
Total 4,080 - - (24) 263 - 4,319 4,080
Total trust funds 12,619 119 223 (393) 757 - 13,325 12,619
**----- End of picture text -----**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
84
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 28. Trust and lecture funds (continued)
Further details regarding trust funds with an accumulated balance in excess of £250k are disclosed below.
## **Research Fund**
The fund has been established to promote original research in the science of chemistry. The fund is administered by the RSC and is awarded by the Research Fund Committee, which is authorised to make a limited number of awards in any one year.
## **A Robertson Bequest**
The fund was founded in 1975 for the promotion of teaching and study of chemistry at secondary school level.
## **W A Waters Bequest**
The fund was founded in 1986 following a bequest of a 12.5% share of the residuary estate of the late William Alexander Waters to the RSC.
## **J O Cutter**
The fund was founded in 1987 following a bequest by John Cutter. The income from the bequest is to establish and maintain a scholarship at a university approved by the RSC.
## **Colman–Porter Fund**
The fund was founded in 1999 following a bequest from Mrs I V Colman–Porter for the purpose of helping needy but able post-graduate chemistry students. The capital is invested and the interest used to provide bursaries to students to allow their attendance at courses peripheral to their research but essential to their understanding of the world of business and current practices in industry.
## **Sir Derek Barton Fund and Award Fund**
The fund was founded in 2000 following a bequest by Sir Derek Barton and is held for the advancement of public education in the field of chemistry and to award a prize for organic chemistry together with an annual dinner.
## **Recognition Fund**
In 2021 the RSC established a new RSC Recognition Fund as a special trust with the charitable purpose to advance the science of chemistry and its application for the public benefit by recognising excellence through the provision of awards, prizes and other means. 31 existing trust funds that had been created following donations, bequests and designations over the last century were identified as having a purpose aligned to the Recognition Fund, or had the potential to be realigned following consultation with donors and descendants. Following Trustee approval, and subsequent Charity Commission approval, the RSC Recognition Fund was created by the transfer from the identified Trust Funds.
## 29. Post balance sheet events
The financial statements were authorised for issue on 25 April 2024. Events taking place after this date are not reflected in the financial statements or notes. Where events taking place before this date provided information about conditions existing at 31 December 2023, the figures in the financial statements and notes have been adjusted in all material respects to reflect the impact of this information.
Where events taking place before this date did not relate to conditions at the balance sheet date but provided information that is relevant to an understanding of the Group’s financial position, these events are disclosed as part of this note.
There were no non-adjusted post balance sheet events to disclose.
There were no adjusted post balance sheet events for the 2023 financial statements.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
85
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 30. Connected charities
## **Sir George Beilby memorial fund**
|**Sir George Beilby memorial fund**||
|---|---|
|**2023**|2022|
|**£000**|£000|
|**Accumulated fund**
**78**
**Represented by:**
Investments
**94**
RSC creditor
**(16)**
**Total**
**78**|77
92
(15)
77|
This fund is jointly administered by the RSC, the Society of Chemical Industry, and the Institute of Materials, Minerals and Mining. The RSC’s share of the above figures are not included in the Statement of Financial Activities, Charity’s Balance Sheet or Consolidated Balance Sheet on the basis of materiality.
## 31. Transactions with Trustees and related parties
## **Trustees’ Royalty Payments**
No Trustee received a royalty payment relating to contributions made to RSC publications during the 2023 year (2022: £nil).
## **Trustees’ Remuneration**
No Trustees received or waived remuneration for their role as a trustee during the 2023 year (2022: £nil).
## **Trustees’ Expenses**
The total amount of expenses reimbursed to 12 (2022: 9) Trustees or paid directly to third parties in respect of travel to meetings and related expenses in 2023 was £13k (2022: £8k).
## **Donations from Trustees**
Total donations received without conditions from trustees was £Nil in 2023 (2022: £Nil).
## **Trustees’ Indemnity Insurance**
The amount paid in 2023 for Trustees’ Indemnity Insurance was £14,492 (2022: £15,774).
## **Related Parties**
The following transactions took place between the Charity and its subsidiaries:
||**2023**|2022|
|---|---|---|
||**£000**|£000|
|Service payments to RSC Worldwide Limited|**(6,615)**|(6,002)|
|Gif aid received from RSC Worldwide Limited|**1,345**|883|
|**Debtor amounts due from subsidiaries**|||
|Chemistry Limited|**504**|282|
|RSC Worldwide (US) Inc|**539**|567|
|Friends of the RSC, Inc.|**13**|14|
|RSC Worldwide Limited|**62**|5|
|RSC Worldwide Germany GmbH|**6**|6|
|**Creditor amounts due to subsidiaries**|||
|RSC Worldwide Limited|**(1,230)**|(648)|
|Royal Society of Chemistry Japan K.K.|**(30)**|(8)|
|Chemistry Limited|**(432)**|(285)|
There have been no other related party transactions in 2023.
## **Guarantees**
The RSC operates a group registration for Value Added Tax (VAT) purposes, including the Charity, Chemistry Limited and RSC Worldwide Limited. Each entity within the VAT group is jointly and severally liable for any UK VAT liabilities present within the Group. The VAT liabilities as at 31 December 2023 in respect of RSC Worldwide Limited and Chemistry Limited were Nil (2022: £1k) and £7.1k (2022: £3.6k) respectively.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
86
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 32. Accounting policies
## **Accounting convention**
The Royal Society of Chemistry (RSC) is a company established by Royal Charter and limited by guarantee, and domiciled in England and Wales, registration number RC000524 . The principal office is Burlington House, Piccadilly, London, W1J 0BA.
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), Charities: Statement of Recommended Practice (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), and the Charities Act 2011.
The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) issued on 16 July 2014 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.
The Royal Society of Chemistry meets the definition of a public benefit entity under FRS 102.
## **Going concern**
At the time of approving the financial statements, there are no material uncertainties regarding the RSC’s ability to continue in operational existence for the foreseeable future. In arriving at this conclusion, the RSC has considered a period of at least 12 months from the approval date of these financial statements and has taken account of the current and anticipated financial performance, liquidity, its reserves position and the ability to draw down on readily realisable investments as required. In addition, the RSC has performed various sensitivity analyses to support the going concern assumption, including a reverse stress test which models a highly unlikely situation whereby the investment portfolio loses a significant proportion of its value combined with a significant loss of revenue from 2024 onwards. For these reasons, the going concern basis continues to be adopted in the preparation of the RSC’s financial statements.
## **Basis of consolidation**
The consolidated statement of financial activities (SoFA) and the consolidated balance sheet include the financial statements of the charity and its subsidiaries consolidated on a line by line basis. Intra-group transactions and profits are eliminated fully on consolidation.
## Accounting policies are consistent across the group.
Chemistry Limited and RSC Worldwide Limited are wholly owned subsidiaries of the RSC.
RSC Worldwide (US), RSC (Beijing) Chemical and Science Technology Consulting Co. Ltd., Royal Chemistry India Private Limited, Royal Society of Chemistry Japan K.K. and RSC Worldwide (Germany) GmbH are wholly owned subsidiaries of RSC Worldwide Limited.
Royal Chemistry India Foundation is a wholly owned subsidiary of Royal Chemistry India Private Limited. Both companies have a reporting date of 31 March.
Friends of the RSC, Inc. is registered in the US and receives donations to support the RSC’s wider charitable objectives. As a Section 501(c)(3) corporation, it is not a wholly owned subsidiary but all of the members and controlling officers are employees of the RSC group operating under the direction of the RSC and therefore the company has been included in the consolidated financial statements. The company has a reporting date of 30 November.
The local sections, regions and interest groups and Chemists’ Community Fund are separately constituted by Trust Deeds. Their results and net assets are accounted as branches in these Financial Statements.
## **General funds**
The General funds mainly represent undesignated monies earned from publishing activities. They also comprise financial or other gifts bequeathed in a Will without any restriction upon their use, or stated as being for ‘general use’. The funds are managed in accordance with the RSC’s reserves policy.
## **Designated funds**
Designated funds are unrestricted funds which have been internally ‘ring fenced’ for a specific use/purpose. The purpose of these funds can be varied by internal resolution.
The member network designated funds relate to the large number of member led groups which allow the wider community to connect with fellow chemists based on either geographical location or subject interest. The geographical network consists of 35 local sections in the UK and Ireland and 23 sections based outside the UK. Regions and interest groups are subject specific covering the breadth of the chemical sciences research, education, innovation and policy. The groups are run by members and organise annual programmes of events, award portfolios and bursaries. The income within the designated funds is taken and held directly by the Interest Groups and used solely for the purposes of that group. As such it is classified as designated fund income and not recognised as general fund income.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
87
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 32. Accounting policies (continued)
## **Restricted funds**
Restricted income funds can comprise grants restricted to specific projects, or a financial or other gift bequeathed in a Will or Trust Deed with a specific direction as to use.
An expendable endowment fund allows both the capital and income of the fund to be applied in accordance with specific conditions. Income generated from expendable endowment is spent in accordance with any restriction within a reasonable time of receipt. Capital is held in perpetuity unless expended at the discretion of Trustees.
A permanent endowment fund requires the permanent investment of the capital of the fund, with only the income being applied in accordance with any conditions.
The RSC’s restricted funds are the Chemists’ Community Fund, various trust funds, restricted grants, Royal Chemistry India Foundation and Friends of the RSC, Inc.
The Chemists’ Community Fund provides financial and non-financial assistance to the RSC’s members, past members, their partners and dependents. The Chemists’ Community Fund holds contracts that allow it to nominate occupation of 15 units of sheltered housing. In accordance with FRS 102, the value is held as zero as these rights have no realisable value.
Various trust funds are restricted to specific aspects of the RSC’s activities. The income of the various trust funds finances lectureships, awards, prizes, and research grants.
The restricted grants are restricted to specific projects by the donors that further the RSC’s charitable activities. Income is recognised when the RSC is entitled to the grant, which is usually when the grant is received, except for performance related grants: income for these is recognised when a specified output is achieved.
Royal Chemistry India Foundation is a charitable foundation, registered in Delhi, India. Its primary purpose is to deliver educational programmes in chemistry within India, including teacher training and student outreach camps.
Friends of the RSC, Inc. is a US private foundation which was incorporated to offer a tax efficient way for US citizens to make donations to support scientific research and projects at educational institutions in the United Kingdom.
## **Voluntary income, including donations and legacies**
Voluntary income, including donations and legacies, is recognised in the SoFA when any conditions for receipt have been met and when the entitlement is probable and measurable.
## **Trading income**
Trading income relates to income generated by non-charitable trading subsidiaries. Profit from trading subsidiary undertakings is transferred to the Charity under the gift aid scheme and included as investment income in the RSC’s own accounts.
## **Investment income**
Investment income is recognised on an accruals basis and apportioned between funds on the basis of the level of funds invested. Investment income is reinvested into the investment portfolio and not withdrawn to defray operating expenditure.
## **Deferred Income**
Income received in the year or invoiced in advance for journal and membership subscriptions relating to future years is shown as deferred income in the balance sheet. The income is treated as income in the year the subscription covers.
Conference income received in advance is deferred and treated as income in the year the respective conference is held.
## **Membership**
Membership subscription income is treated as income in the year the subscription covers. Any receipts in respect of future years are shown as deferred income on the balance sheet. Life membership subscriptions are accounted for on a received basis. In 2023 these subscriptions amounted to £3k relating to 4 members (2022: £4k, 12 members).
## **Conference income**
Income for conferences is recognised in the year of the event.
## **Income recognition**
Income is measured at the fair value of the consideration received or receivable. The fair value of the consideration received or receivable takes into account the amount of any trade discounts, prompt settlement discounts and volume rebates. Income is shown net of Value Added Tax.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
88
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 32. Accounting policies (continued)
## **Publishing income**
Income from publishing activities, including Chemistry World, is recognised in two separate ways, dependent on the specific product:
- Income for the sales of institutional subscriptions, package subscriptions and consortium deals, is recognised in equal monthly proportions during the subscription year.
- Income for the sales of journal archive and eBooks is recognised when access to the product is passed to the customer.
## **Government grants**
Income from government and other grants, whether ‘capital’ grants or ‘income’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
## **Intangible income**
No value has been placed on the support given to the RSC by way of volunteer assistance. The RSC has not received any other intangible income or gifts in kind.
## **Expenditure**
All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed to a particular heading they have been allocated to activities on a basis consistent with the use of resource. Governance costs include expenditure on compliance with constitutional and statutory requirements.
Costs of raising funds include investment management fees and corporate fundraising costs. Fundraising costs include the salaries and overheads of the staff who directly undertake fundraising activities plus allocated support costs.
## **Staff Costs**
The costs of short-term employee benefits are recognised as a liability and an expense.
Employees are entitled to carry forward up to 5 days of any unused holiday entitlement at the reporting date. The cost of any unused entitlement is recognised in the period in which the employee’s services are received.
The best estimate of the expenditure required to settle an obligation for termination benefits is recognised immediately as an expense when the RSC is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
## **Apportionment of support costs**
Support costs are those which provide indirect support to front-line activites. Support costs not attributable to a single activity have been apportioned on the basis of head count for each of the respective departments. Refer to note 9 for details.
## **Grants**
Grants made by RSC in relation to the Chemists’ Community Fund are treated as expenditure as soon as they are approved in office or by the Chemists’ Community Fund Committee as there is an expectation of receipt by the Beneficiary.
Other grants made from designated funds represent grants made to local sections, divisions and interest groups, which are treated on a cash payment basis.
## **Leases**
Rentals under operating leases are charged to the SoFA on a straight-line basis over the lease term allocated to the charitable activities to which they relate.
## **Taxation**
The RSC is registered as a charity (Charity Commission reference 207890) and as such the income arising from and expended on its charitable activities is exempt from corporation tax. It is also registered for Value Added Tax with HM Revenue and Customs and is subject to partial exemption rules. Any irrecoverable VAT is either included in fixed asset costs or in support costs that are then allocated to the charitable activities as applicable.
## **Foreign currency**
The consolidated financial statements are presented in sterling, which is the charity’s and the group’s presentation and functional currency.
Monetary assets and liabilities in foreign currencies are translated into sterling at the rate 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 transaction or at an exchange rate that approximates the actual rate. Exchange differences are taken into account in arriving at the operating result.
Forward exchange contracts are used to manage the exposure to foreign exchange rate risks related to US dollar income and cash balances.
The balance sheet values of subsidiaries have been translated at the closing rate on 31 December 2023. The profit and loss transactions have been translated at the rate of exchange ruling at the date of transaction or at an exchange rate that approximates the actual rate.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
89
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 32. Accounting policies (continued)
## **Intangible fixed assets**
Intangible assets are capitalised at cost, including any directly attributable costs. These are currently amortised on a straight-line basis over a five year period, which is the useful economic life of the asset. A full impairment review is carried out in the year of acquisition with consideration given in subsequent years to whether any indicator of impairment exists.
Amortisation of the index and databases are charged to publishing activities. The web platform is used for activities across the whole organisation and therefore amortisation is apportioned across all charitable activities.
## **Tangible fixed assets and depreciation**
Items of a capital nature are capitalised at cost if their individual purchase price is valued at £10k or above. For groups of items that cumulatively exceed £10k the previous point still applies, as the categorisation will be based on the unit price.
The only exception to this is where individual components are integral to a main asset coming into use. Purchased software is capitalised at cost. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost or valuation of each asset to its estimated residual value on a straight line basis over its expected useful life, as follows:
## _**Leasehold land and buildings:**_
|Thomas Graham House|2%|
|---|---|
|Burlington House|5%|
## _**Fixtures, fittings and equipment:**_
|Computer sofware|20%–33%|
|---|---|
|Personal computers|25%|
|Other computer hardware|20%|
|Other fixtures and fittings|2%–25%|
## **Investment in subsidiary undertakings**
Investments in subsidiary undertakings are stated at cost, but are written down to their realisable value if it is considered that there has been a permanent diminution in their value.
## **Heritage assets**
The RSC does not capitalise its heritage assets as neither reliable cost information nor comprehensive valuations are readily available and such information cannot be obtained at a cost commensurate with the benefit to the users of the accounts and to the Charity. The RSC was founded in 1841 and the library collection has been built over time to contain a large number of unique and irreplaceable historical items. Therefore due to the number of books held and the lack of comparable market values these assets have not been recognised on the balance sheet as any value attributed to these assets would be purely subjective and of limited practical use.
## **Recognition of liabilities**
Liabilities are recognised when an obligation arises to transfer economic benefit as a result of past transactions or events.
## **Derivative instruments**
The RSC uses forward foreign currency contracts and forward options to reduce exposure to foreign exchange rates. Forward options involve buying a contract which would give the RSC the right but, unlike forward foreign currency contracts, not the obligation to exchange foreign currency for GBP at a pre-agreed rate on a specified date. Forward option premiums are expensed to the SoFA. Derivative financial instruments are initially measured at fair value on the date the derivative contract is entered into and are subsequently re-measured to fair value at each reporting date. Fair value gains and losses are recognised in the SoFA.
Fixed Assets are written down to their realisable value if it is considered that there has been a permanent diminution in their value. Assets are reviewed annually for impairment.
## **Investments**
Quoted investments are stated at market value, using quoted bid price, at the balance sheet date. Account is therefore taken of both realised and unrealised gains in the SoFA. Investment income is stated on an accruals basis.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
90
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 32. Accounting policies (continued)
## **Pensions**
The RSC has two types of pension scheme:
## _**Defined contribution plan**_
The RSC operates a defined contribution scheme. The RSC’s contributions are charged to the SoFA’s general funds and restricted income funds during the period in which the employee is an active member of the scheme. The cost of administering the scheme and providing for death in service are met by the RSC.
## _**Defined benefit plan**_
The RSC operates a defined benefit pension scheme. The defined benefit plan closed to new entrants on 31 December 2002 and was closed to future accrual on 30 November 2011.
The pension liability recognised in the balance sheet is the obligation of the RSC, being the present value of its defined benefit obligation at the reporting date minus the fair value at the reporting date of plan assets out of which the obligations are to be settled.
The pension costs for the scheme are recognised as follows: (i) the change in the net defined benefit liability arising from employee service rendered during the reporting period in the SoFA; (ii) net interest on the net defined benefit liability during the reporting period in the SoFA; (iii) the cost of plan introductions benefit changes, curtailments and settlements in the SoFA; (iv) remeasurement of the net defined benefit liability in other recognised gains or losses on the SoFA. The net interest element is determined by multiplying the net defined benefit liability by the discount rate, at the start of the period taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in the SoFA as other income or apportioned in expenditure.
Remeasurement of the net defined benefit liability comprises: (i) actuarial gains and losses; and (ii) the return on plan assets, excluding amounts included in net interest on the net defined benefit liability. Remeasurement of the net defined benefit liability recognised in other gains or losses on the SoFA shall not be reclassified to profit or loss in a subsequent period.
## **Financial assets and liabilities**
The RSC has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102, in full, to all of its financial instruments.
Financial assets and financial liabilities are recognised when the RSC becomes a party to the contractual provisions of the instrument, and are offset only when the RSC currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Fixed asset investments and forward exchange contracts are measured at fair value through the SoFA. All other financial instruments are measured at amortised cost.
## **Debtors**
Trade and other debtors are recognised at the settlement amount due after any trade discount offered, less any impairment. Prepayments are valued at the amount prepaid net of any trade discounts due.
## **Cash and cash equivalents**
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
## **Key judgements and assumptions**
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The RSC makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts and liabilities within the next financial year are discussed below.
The cost of the defined benefit pension plan has been determined by updating the results of the 31 December 2022 full actuarial valuation to 31 December 2023. This was carried out by a qualified actuary independent of the RSC. The actuarial valuation involves making assumptions about discount rates, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long term nature of the scheme, such estimates are subject to significant uncertainty. In determining the appropriate discount rate, management considers the market yields of AA corporate bonds consistent with the currency and term of the defined benefit obligation. The mortality rate is based on publicly available mortality tables, which uses data for UK self-administered pension schemes and allowing for expected future improvements in longevity. Future salary increases and pension increases are based on expected future inflation rates as determined by the Bank of England spot rate with a consistent term of the defined benefit obligation at the valuation date.
Furthermore, in June 2023 there was a High Court ruling in the case of ‘Virgin Media Limited vs NTL Pension Trustees II Limited and Others’ which related to the validity of benefit changes made to salary-related contracted-out pension schemes without obtaining the necessary actuarial confirmations at the time. The court ruled that the benefit changes were null and void. The ruling has subsequently been appealed and the outcome is uncertain. The Pension Trustees have taken legal advice and have opted to wait on the outcome of the appeal decision before considering any potential effects. The appeal hearing is due to take place in the summer of 2024. The assumptions applied in arriving at the 2023 actuarial FRS102 valuation excluded any impact this case could potentially have as a result.
Further details are given in Note 12.
Royal Society of Chemistry | Trustees’ report and financial statements 2023
91
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## 33. Consolidated statement of financial activities for the year ended 31 December 2022
The prior year consolidated statement of financial activities is shown below:
**----- Start of picture text -----**
Unrestricted funds Restricted funds
General Designated Total general and Pension Total Restricted Endowment Total
funds funds designated funds reserve unrestricted funds income funds funds restricted funds Total
2022 2022 2022 2022 2022 2022 2022 2022 2022
£000 £000 £000 £000 £000 £000 £000 £000 £000
Income and endowments from:
Donations and legacies 26 22 48 - 48 156 293 449 497
Other trading activities 406 - 406 - 406 - - - 406
Investment income 579 182 761 - 761 214 - 214 975
Charitable activities
Membership 3,998 29 4,027 - 4,027 5 - 5 4,032
Chemistry World 1,027 - 1,027 - 1,027 - - - 1,027
Scientific conferences and events 493 846 1,339 - 1,339 60 - 60 1,399
Education and professional practice 174 11 185 - 185 99 - 99 284
Publishing 57,129 - 57,129 - 57,129 - - - 57,129
Advocacy and awareness 75 - 75 - 75 79 - 79 154
Other income 69 - 69 - 69 - - - 69
Total income and endowments 63,976 1,090 65,066 - 65,066 613 293 906 65,972
Expenditure on:
Raising funds
Donations and legacies 318 106 424 3 427 - - - 427
Other trading activities 349 - 349 - 349 - - - 349
Investment management costs 432 121 553 - 553 2 157 159 712
Charitable activities
Membership 4,182 1,163 5,345 48 5,393 1,196 - 1,196 6,589
Chemistry World 2,665 82 2,747 17 2,764 - - - 2,764
Scientific conferences and events 1,830 81 1,911 11 1,922 63 - 63 1,985
Education and professional practice 5,362 594 5,956 46 6,002 206 - 206 6,208
Publishing 41,139 1,983 43,122 276 43,398 - - - 43,398
Advocacy and awareness 8,514 984 9,498 62 9,560 79 - 79 9,639
Total expenditure 64,791 5,114 69,905 463 70,368 1,546 157 1,703 72,071
Net (expenditure)/income before investment (815) (4,024) (4,839) (463) (5,302) (933) 136 (797) (6,099)
gains/(losses)
(Losses)/gains on investment assets (4,977) (1,542) (6,519) - (6,519) (27) (1,732) (1,759) (8,278)
Net (expenditure)/income (5,792) (5,566) (11,358) (463) (11,821) (960) (1,596) (2,556) (14,377)
Transfer between funds (4,735) 1,935 (2,800) 2,800 - 983 (983) - -
Net group (expenditure)/income before other (10,527) (3,631) (14,158) 2,337 (11,821) 23 (2,579) (2,556) (14,377)
recognised gains and losses
Remeasurement on defined benefit - - - 10,414 10,414 - - - - 10,414
pension scheme
Net movement in funds (decrease)/increase (10,527) (3,631) (14,158) 12,751 (1,407) 23 (2,579) (2,556) (3,963)
Reconciliation of funds
Fund balances brought forward 40,797 67,608 108,405 (27,156) 81,249 557 25,618 26,175 107,424
Fund balances carried forward 30,270 63,977 94,247 (14,405) 79,842 580 23,039 23,619 103,461
**----- End of picture text -----**
Royal Society of Chemistry | Trustees’ report and financial statements 2023
92
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Reference and Administrative Details
## Charity Registration Number
The Royal Society of Chemistry’s charity registration number is 207890 and this registration encompasses the RSC Chemists’ Community Fund, the Royal Society of Chemistry and its trust and lecture funds and member networks.
Leadership team for the year 1 January 2023 to 31 December 2023
**Chief Executive Officer** Dr Helen Pain CSci CChem FRSC
**Chief Operating Officer** Paul Lewis FRSA FlnstLM
**Finance Director** Stephen Joyce FCPFA
**Director of Science and Communities** Dr Jo Reynolds FRSC
**Director of People and Culture** Rebekah Ayres
**Director of Commercial Innovation** Sarah Robertson FRSC
**Director of Publishing** Dr Emma Wilson MRSC
**Director of Technology** Dr Amanda Spencer
Royal Society of Chemistry | Trustees’ report and financial statements 2023
93
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Auditors, Bankers and other Professional Advisors
## Auditors
## **Grant Thornton UK LLP**
30 Finsbury Square London
EC2A 1AG
## Principal Bankers
**National Westminster Bank plc** Cambridge Petty Cury Branch 21 Petty Cury Cambridge CB2 3NE
## **Nationwide Building Society**
Nationwide House Pipers Way, Swindon SN38 1NW
## **Goldman Sachs Asset Management International**
## **Citizens**
One Citizens Plaza, Providence, RI 02903 USA
**Barclays Bank plc** 1 Churchill Place London E14 5HP
**Lloyds Bank plc** 25 Gresham Street London EC2V 7HN
## Investment managers
**J P Morgan** 25 Bank Street Canary Wharf London E14 5JP
## **Schroder Investment Management**
**(UK) Limited**
1 London Wall Place London EC2Y 5AU
## Actuary
**Mercer Limited**
1 Tower Place West Tower Place London EC3R 5BU
## Pension Advisors
**Atkin Trustees Ltd** Cornwall House Blythe Gate Blythe Valley Park Solihull B90 8AF
Plumtree Court 25 Shoe Lane
London
EC4A 4AU
Royal Society of Chemistry | Trustees’ report and financial statements 2023
94
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Legal Advisors
_**Charity, technology, intellectual property and commercial matters:**_ **Mishcon de Reya**
Four Station Square Cambridge CB1 2GE
_**Publishing matters:**_ **Farrer & Co. LLP**
66 Lincoln’s Inn Fields London WC2A 3LH
_**Charity, commercial, compliance, data protection and employment matters:**_ **Mills & Reeve LLP**
Botanic House 100 Hills Road Cambridge CB2 1PH
_**Commercial property matters:**_ **Harrison Clark Rickerbys Solicitors** 50-60 Station Road
Cambridge CB1 2JH
_**Translation and Document Review**_ **Han Kun Law Offices – Shanghai** 3/F, HKRI Centre Two HKRI Taikoo Hui, 288 Shimen Road (No.1) Shanghai 200041, P.R. China
_**Compliance:**_ **ARC – Arfiff Rozhan & Co** Solaris Mont Kiara 50480 Kuala Lumpar Malaysia
_**Safeguarding:**_
**Mason Haynes and Curran** South Bank House Barrow St Dublin 4 Ireland
Royal Society of Chemistry | Trustees’ report and financial statements 2023
95
Financial review
Financial statements
CONTENTS
Pg-6
Pg-16
Pg-8
Pg-23
Pg-25
Pg-11
Pg-3
Pg-5
## Principal Offices
## **Royal Society of Chemistry**
Burlington House Piccadilly London W1J 0BA
## **Royal Society of Chemistry**
Thomas Graham House
Science Park Milton Road Cambridge CB4 0WF
Royal Society of Chemistry | Trustees’ report and financial statements 2023
96
Thomas Graham House Science Park, Milton Road Cambridge CB4 0WF, UK T +44 (0)1223 420066
Burlington House Piccadilly, London W1J 0BA , UK T +44 (0)20 7437 8656
**International offices** Beijing, China Shanghai, China Berlin, Germany Bangalore, India Tokyo, Japan Philadelphia, USA Washington, USA
**www.rsc.org**
@RoyalSocietyofChemistry
@RoySocChem
@roysocchem
@wwwRSCorg
linkedin.com/company/roysocchem
Registered charity number: 207890 © Royal Society of Chemistry 2024