2020-12-31-accounts

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

REPORT AND FINANCIAL STATEMENTS

Year ended 31 December 2020

The Geological Society of London Registered Charity Number 210161

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

1. Report of the trustees ............................................................................................................................................. 3 1.1 Objectives and activities .................................................................................................................................. 3 1.2 Achievements and performance ...................................................................................................................... 6 1.3 Financial review ................................................................................................................................................ 8 1.4 Plans for future periods .................................................................................................................................. 13 1.5 Structure, governance and management ...................................................................................................... 14 1.6 Reference and administrative details ............................................................................................................ 18 2. Reports of the President, Treasurer and Executive Secretary ........................................................................... 20 3. Responsibilities of the trustees ............................................................................................................................ 24 4. Independent auditor’s report to the Council of the Geological Society of London ............................................. 25 5. Statements of Financial Activities ........................................................................................................................ 28 6. Balance Sheets at 31 December 2020 ................................................................................................................ 30 7. Consolidated Cash Flow Statement for the year ended 31 December 2020 .................................................... 31 8. Notes forming part of the Financial Statements .................................................................................................. 32

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

1. Report of the trustees

1.1 Objectives and activities

This report provides information intended to help the user understand:

• the Society’s aims and how they fulfil its legal purposes;

• the activities that the Society undertakes; and

• the achievements of the Society.

This includes explanation of the Society’s purpose, its strategies for achieving objectives, and how the activities undertaken contribute to fulfilling its aims.

1.1.1 Purpose and aims of the Society

The Object of the Society is set out in its Charter as being:

“To investigate the mineral structure of the Earth”.

This is interpreted to mean:

• (i) improving knowledge and understanding of the history, structure, constitution and dynamics of the Earth and its processes;

• (ii) promoting all forms of education , awareness and understanding of the Earth and their practical applications for the benefit of the public globally; and

• (iii) promoting professional excellence and ethical standards in the Earth sciences for the public good.

In meeting this Object the Society provides public benefit through advancing Earth sciences education at all levels, promoting wider knowledge of the Earth, and promoting professional standards that advance environmental protection, further the improvement of human health, and guard against natural hazards. In setting the Society’s aims for the year and preparing this review, the trustees have had regard to the Charity Commission guidance on public benefit.

These objectives are translated into long-term strategy and more immediate priorities and aims in a number of ways. Section 1.1.2 sets out the Society’s current over-arching 10-year strategy and priorities; sections 1.2 and 1.4 explain how these are translated into the main ongoing activities of the Society and how these in turn support the charitable purpose and aims.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

1.1.2 Strategies for achieving stated aims

Serving science, profession and society – a strategy for the Geological Society, 2017 - 2027

Council agreed a new 10-year strategy for the Society in January 2017, the key points of which are summarized as:

Our purpose:

• supporting the work of geoscientists;

• inspiring interest in the physical world; and

• connecting science, profession and society.

Our values:

All that we do is underpinned by scientific excellence, professional and ethical integrity, and quality of service. To that end:

• we strive to be impartial, authoritative, trustworthy and transparent;

• we promote diversity, equality, inclusion and respect for others across the geoscience community;

• we promote social and environmental sustainability, responsibility and stewardship;

• we seek opportunities to work collaboratively, and aim to be recognised as a valued partner.

Themes:

A home for geoscien ce: we will promote and support the geosciences and act as the scientific and professional home for an engaged, diverse and inclusive geoscience community.

Serving and supporting geoscientists: we will provide services and support for our Fellows and other geoscientists throughout their careers.

Maintaining standards: we will assure high professional standards in geoscience, for the public benefit.

Trusted voice: we will be the trusted voice of the geoscience community.

Education and outreach: we will promote geoscience education and share our science widely, to inform public debate and to inspire future geoscientists to address the challenges facing humanity.

Strengthening our organisation: we will ensure that the Geological Society remains a sustainable, resilient and thriving organisation over a generational timescale, in order to deliver our strategic aims and objectives.

Section 1.2 sets out how the Society has been implementing this strategy during the year. As part of this process, it has also developed a Business Plan to prioritize work towards strategic goals over a rolling three-year basis. This is further detailed in section 1.4.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

1.1.3 The main activities of the Society

In seeking to fulfil its objectives and provide broad public benefit, the Society undertakes the following main charitable, trading and other activities:

Charitable activities

• (i) Science and education – development of scientific policy and advice to public and private bodies in respect of Earth science; provision of specialist and public conferences and events on aspects of Earth science; working with schools and universities to provide educational outreach support; provision of public information on geoscience matters via the website, blogs and tweets.

• (ii) Professional and academic standards – ensuring academic and technical rigour, and the highest standards of quality assurance through promotion of academic, professional and ethical standards, both throughout the Society’s membership (individual and corporate) and, more widely, through accreditation of geoscience teaching and training.

• (iii) Scholarly publishing – the Society is a major international Earth sciences publisher dedicated to providing high-quality publications through a diverse range of geoscience articles, books and journals, electronically and in printed form; it promotes publishing via the Open Access route and produces over 10,000 pages of new, peer-reviewed geoscience literature every year.

• (iv) Library and archives – the Society maintains one of the finest Earth sciences libraries in the world, with more than 300,000 volumes of books and journals, and 40,000 maps; each year it further adds to this collection of national importance which is accessible to Fellows, Corporate Patrons and visitors at Burlington House and increasingly online.

Trading activities

• (v) Room hire and catering – limited hire of spare capacity in the facilities at Burlington House, including meeting rooms and lecture theatre, to associated bodies and third parties, as permitted under our lease; associated catering.

Other activities

• (vi) Financial investment – activities associated with management of the Society’s invested funds.

Funds generated through trading and other activities are used to support the charitable aspects of the Society’s work.

Social investments, grant-making activities and use of volunteers

The Society is required to explain the purposes of any grant-making activities of a material nature, as well as its use of volunteers. Its grants and award-making activities are currently limited to a level not exceeding £60,000 per year.

A number of Fellows give freely of their time to attend committee meetings and editorial boards, and to take forward the work of those committees, in support of their science and profession. Members of the trustee body (Council) and its standing committees also give their time freely to the discharge of their responsibilities under the Society’s governance arrangements. We are most grateful to these Fellows.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

1.2 Achievements and performance

1.2.1 Overall achievements and performance

The global pandemic and subsequent nationwide lockdowns had an unprecedented impact on the Society. The ability of the Society to meet its charitable objectives was curtailed by the restrictions imposed upon it but the Society managed to fulfil its objectives to varying degrees. Fellowship numbers continued to decline in 2020, whilst publishing continues to grow and offer relevant and varied content. The Society’s scientific, professional and public events programme was necessarily curtailed during much of 2020 although virtual events organised in the latter part of 2020 proved to be popular. In respect of the Society’s financial objectives, the reported 2020 surplus largely arises from unrealised changes in value of the Society’s investment portfolio. The underlying financial and operational performance was impacted by the pandemic. Conference and event income were significantly reduced due to cancellation of much of the 2020 programme. Due to the closure of the Burlington House venue for much of the year, the ability to generate revenue from this asset ceased. Fellowship income was adversely impacted by lower renewals and an increased use of the fee concession scheme. In this regard, the Society felt it imperative to support the Fellowship where possible in times of financial stress and will continue to do so. The operational losses were somewhat mitigated by use of the furlough scheme. To ensure that the Society can better balance its cost base against anticipated lower future income, the Society reluctantly reduced the number of staff working in the Society. The costs of the redundancy programme were incurred in 2020 as an operational expense. Whilst the 2021 outlook remains uncertain, the Society has reduced its core costs and has the flexibility to react to changing events as they arise.

The Society’s significant achievements against its objectives in 2020 are set out as follows.

1.2.2 Science and education

During 2020, the Society reacted to quickly move to virtual delivery of events and activities. The Society held five virtual public lectures, in addition to two in-person talks held in the first two months of the year. Other highlights include conferences on the sulfur cycle and mineral resources, and an international event on the future of geology, which saw over 1,000 attendees. This open event was followed by a closed summit of key stakeholders in the UK higher education community and employment sector, which resulted in the joint GSL-UGUK publication: Enrolment in crisis: A UK-wide strategy for exciting, engaging and retaining students in the geosciences .

The Society held five virtual meet a scientist events, which allowed secondary school students the chance to hear from a practicing geologist and ask them questions about their career. A virtual Careers Day in October was also a success, with 800 university students registered to attend 20 events over four days.

The Society launched a number of activities around the theme of energy transition, beginning with the inception of the Decarbonisation Working Group at the start of the year and the appointment of a theme leader in the second half of the year. The working group is preparing resources on the role of geoscience in energy transition including briefing notes and responses to government consultations. A briefing note on geological disposal of radioactive waste was published ahead of the UK government’s new siting process.

Our LinkedIn, Twitter and Facebook followings continue to grow, as did the Society’s Instagram account. Whilst a lack of key baking supplies in many shops threatened a cancellation of the popular Geo-bakeoff, a quick change of rules allowed for baked and crafted entries, resulting in a wealth of creative projects.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

1.2.3 Professional and academic standards

Total 2020 membership was 11,691 (2019 – 11,952) across all categories, which is slightly down on the previous year. This modest reduction is consistent with trends within membership organizations and reflects the challenge to maintain relevance to those working and studying in geology and associated fields. The Society’s Fellow grade membership (as measured at mid-2020) was 10,962 with its Candidate and Junior grade membership at 729. The number of Chartered Geologists stood at 2,734.

The Society is currently in the process of reviewing its membership categories and benefits to ensure these are still fit for purpose and meet the needs of its Fellows. This process will conclude in June 2021. Regional and Specialist Group activity was significantly impacted by the pandemic and whilst some virtual events took place during the year, little in the way of field trips and student and public engagement was possible.

1.2.4 Scholarly publishing

The Society’s publishing programme continues to generate a significant proportion of the revenues required to fund Society activities, whilst simultaneously fulfilling our charitable objectives. Despite the disruption Covid-19 caused, an ambitious programme of work was undertaken through 2020 to adapt to a quickly changing publishing landscape, meet the needs of the community and future-proof the portfolio responsibly.

As a result, we entered 2021 with the launch of the Society’s first fully Open Access journal, Earth Science, Systems and Society (ES[3] ); negotiated our first transformative agreements, which combine read and publish services, with two major library consortia; and moved the Society’s owned and co-owned journals to electronic-only. This work is underpinned by our focus on excellent customer service to all of our communities and strong collaborations with our partners.

1.2.5 Library and archives

Covid-19 and the subsequent closure of Burlington House provided significant challenges for the provision of library and information services. Innovative remote solutions such as ‘click and collect’ loans were available alongside usual remote services and for a short period in-person services resumed where government guidance allowed.

Through 2020 a Library Review was conducted by a Working Group who examined existing evidence, interviewed expert witnesses and conducted a Fellowship survey. The final report and recommendations were approved by Council on 25 November 2020 and communicated to Fellows in March 2021 ahead of an implementation plan being formulated.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

1.3 Financial review

1.3.1 Financial position and performance

Funds

Society funds are split between three main categories, as defined by the Charity Commission:

• (i) Unrestricted income funds – (including both general and designated funds) that may be spent or applied at the discretion of the trustees in furtherance of the Society’s charitable objectives;

• (ii) Restricted income funds – that are held under specific trusts in charity law that limit how those funds might be spent or applied; and

• (iii) Endowment funds – that comprise gifts made either where there is no power to convert capital into income (permanent endowments) or where trustees have the power to convert capital into income (expendable endowments).

Total Society funds and reserves at the end of 2020 were £10,410,001 (2019 - £9,972,106). This is analysed over the three categories defined above as follows:

Analysis of Funds

Unrestricted Restricted Endowment	2020 £7,235k £881k £2,294k
	£10,410k

Unrestricted income funds represent the primary operation and activities of the Society and increase or decrease depending upon operating surpluses or deficits made each year. Restricted income funds and endowment funds support specific activities but are primarily dependent upon performance of the Society’s investments for growth or the provision of new legacies. Approximately £7.2m of the Society’s funds are placed in an investment portfolio and are subject to wider market variations. 2020 was a volatile year in the investment markets but active management by the Society’s investment managers led to an appreciable overall unrealised increase in the value of the investment portfolio. The portfolio strategic objective was modified during 2019 to a ‘total return’ objective rather than an emphasis on income generation. This change protected the Society from some of the market downturn and led to value growth in excess of expectations. Note 19 to the Financial Statements provides further information on investments. Notes 26 to 29 set out material funds by category, showing significant movements in those funds during the reporting year and their position at year-end. Note 31 explains the proportion of total funds available as free reserves – see also section 1.3.2.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

The following illustration identifies how the above noted funds are deployed;

Principal sources of funding

Total consolidated income, excluding gains and losses from investments and foreign exchange, was £5.30m in the year ending 31 December 2020 (201 - £5.58m). The Society’s principal sources of funding remain closely linked to its charitable activities and these are set out below:

The Society had a challenging year during 2020 with overall income levels below 2019. Reduced activity led to a reduction in operating costs and charges totalling £5.51m (2019 - £6.15m) resulted in a deficit of income over expenditure of £0.21m (2019 - £0.57m). Unrealised gains in the year from movements in the value of investments and both realised and unrealised currency differences resulted in an increase in funds for 2020 of £0.65m (2019 - £0.69m). The value of the Society’s investment portfolio increased from £6.6m at 31 December 2019 to £7.2m at the end of 2020.

end of 2020.
Donations Events (Science & Education) Membership Fees (Professional and Academic) Publishing Library Trading Investments Other	2020	2019
	Source Reallocation Statements	Source Reallocation Statements
	£k £k £k	£k £k £k
	48 - 48 161 26 187 1,997 (1,356) 641 2,748 703 3,451 6 610 616 35 17 52 142 - 142 166 - 166	47 - 47 351 25 376 2,078 (1,400) 678 2,604 729 3,333 20 632 652 256 14 270 228 - 228 - - -
	5,303 - 5,303	5,584 - 5,584

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

Expenditure of funds

The Society’s total expenditure for the year ending 31 December 2020 was £5.51m (2019: £6.15m). Society expenditure has been in line with its charitable objectives and principal sources of funding. Note 8 to the accounts sets out expenditure for the year in further detail, including analysis of direct and support costs across each charitable activity. The following tables summarize expenditure by activity and type for the current and previous years:

Analysis of Expenditure: by activity	Analysis of Expenditure: by activity	Analysis of Expenditure: by activity		Analysis of Expenditure: by type
Trading Investments Science Professional Publishing Library Total	2020	2019		Charitable Activity Trading Investment Support Total	2020	2019
	£72k £55k £1,109k £582k £2,583k £1,114k	£190k £50k £1,378k £698k £2,717k £1,116k			£3,237k £72k £55k £2,151k	£3,957k £190k £50k £1,952k
					£5,515k	£6,149k
	£5,515k	£6,149k

Support costs are detailed in note 9 to the Financial Statements and staff costs in notes 12 to 15.

Investments

The Society invests funds held in its Unrestricted, Designated, Restricted and Endowment Funds to obtain an income whilst seeking to maintain the long term value of the investments in excess of inflation. These investments are managed according to the powers defined in the Society’s Bye Laws. Independent investment managers are appointed by the trustees, under the oversight of an Investment Committee of Fellows of the Society, reporting to trustees via the Finance and Planning Committee. The Society’s working capital funds on deposit do not presently fall within the mandate of the Investment Committee.

During 2020, the Society adopted a Responsible Investment Policy to ensure that investments are consistent with the Society’s values and ethos and do not conflict with the Society’s aims. The policy considers environmental, social and governance criteria in proritising investments and employs a number of exclusions in respect of tobacco, alcohol, arms, etc. Companies with material involvement in extraction/combustion of certain high emissions fossil fuels are also excluded, subject to possible mitigations. Details of this policy can be found on the Society’s website.

The Society maintains an investment portfolio of around £7.2m, managed by professional advisors who make regular, quarterly reports to the Treasurer’s Investment Committee. The primary purpose of the portfolio is to provide income through returns and growth in capital to support the current and future charitable activities of the Society. To achieve this, professional advisors are set performance targets against which the Investment Committee (IC) measures performance. Investment income in 2020 was £142k (2019: £228k). The reduction in investment income is reflective of the change of portfolio strategy mentioned earlier, namely, to focus on total returns rather than income generation, and the adverse impact of the pandemic on corporations’ ability or willingness to pay dividends. Note 5 to the Financial Statements provides further detail.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

Investment management charges comprise the advisor’s annual fees plus a share of support staff and other overhead charges to reflect internal management of this activity. These charges are apportioned to individual funds within the investment pool on the basis of the value that each fund has invested within the pool. Year on year total investment management charges were £55k in 2020 and £50k in 2019.

Investment valuations are further explained in note 19.

Trading activities

The Society undertakes non-primary purpose trading (i.e. the hire of facilities and associated catering other than in relation to Society events) through a wholly-owned subsidiary company, Geological Trading Limited (GTL). The company’s results are consolidated into the Society’s annual statement of accounts and are set out at note 32 in further detail. Hire of facilities associated with Society events is accounted for within the Society.

During 2020, the activity of GTL was significantly impacted by the Covid pandemic and the subsequent and enduring lockdown. Its revenue is predominantly derived from in-person events including meetings, conferences and room hire. The limited trading activity provided income of £2.9k (£64.5k in 2019) against costs of sales of £1.6k (£17.0k in 2019). When administration costs are also taken into account to cover use of the Society’s staff and facilities, the net profit for the year is £0.7k (2019: £31.6k). The Board entered into a Deed of Covenant during 2019 whereby profits generated by GTL are donated to the Society. The 2020 profits have now been donated in accordance with this Deed.

Fundraising

Section 162a of the Charities Act 2011 requires charities to make a statement in respect of fundraising activities. Although we do not undertake widespread fundraising from the general public, the legislation defines fund raising as ‘soliciting or otherwise procuring money or other property for charitable purposes.’ Such amounts receivable are presented in our accounts as donations and include legacies and grants. We confirm that all solicitations are managed internally, without involvement of commercial participators or professional fund-raisers, or third parties. The day-today management of all income generation is delegated to the Senior Leadership Team, who are accountable to the trustees.

The Society is not bound by any undertaking as part of any regulatory scheme relating to fundraising. It has received no complaints in relation to fundraising activities. Its terms of employment require staff to behave reasonably at all times; as we do not approach individuals for funds we do not particularise this requirement to fundraising activities, nor do we consider it necessary to design specific procedures to monitor such activities.

1.3.2 Reserves

The Society’s reserves policy is to maintain a contingency sufficient to cover 9 months (75%) of core operational expenditure (within a range of 20% above or below this value, i.e. within a 55%-95% range). Core operational expenditure is defined as the full cost of undertaking the Society’s charitable activities (including support and administration overheads), as identified in the Statement of Financial Activities.

Under the Charities SORP 2019 free reserves are calculated as the total of investments and net current assets classified as unrestricted funds, less any assigned to designated funds. At 31 December 2020 free reserves stood at £4.17m (2019: £4.0m) against core operational costs of £5.4m (2019: £5.9m). This represents 77.4% of the target (2019: 67.8%) and is, therefore, within the range set out above.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020 Note 31 to the Financial Statements sets out the calculation of these figures.

1.3.3 Principal risks and uncertainties

The Society receives no funding from central government or public bodies. It is dependent, therefore, upon its own initiatives to generate the income required to carry out its charitable activities. With an annual turnover of £5.5m - £6.0m it is not financially a large organization and, whilst it enjoys reasonably healthy revenues at present from its various income streams, these streams are not many and are not immune to change. For these reasons financial control and decision-making is given a high priority in the Society’s affairs.

The Society cannot and does not assume that individuals and corporate bodies within the geoscience community will automatically wish to become and remain members: it must keep its membership offering relevant and communicate its activities in a coherent manner. At present individual Fellowship and Chartership income and numbers and corporate membership via the Corporate Affiliate programme are declining overall.

Publishing is a competitive activity and in order to remain successful the Society must manage this activity with a view to market changes and uncertainties. The Society faces significant revenue challenges arising from the growth of Open Access publishing and is responding to these challenges with a view to expanding the Society’s Open Access offering whilst maintaining careful control on cost. Competition within the sector remains strong and the Society is alert to the variability of customer demand and the need to maintain investment in technology; all without eroding the high standards of service and quality of content associated with the Society’s publishing activities.

Conference and events activity is also subject to volatility, that is mitigated by providing a varied events programme and adapting, where possible, to take account of likely demand peaks and troughs. During 2020, a more focused events marketing strategy was initiated but due to the Covid-19 pandemic, the value of this was impacted. Focused marketing will continue during 2021 as originally envisaged.

Whilst some uncertainty remains over the affordability of future lease costs in respect of Burlington House, discussions with the Landlord and their agents continue along with other measures including the assessment of alternative locations.

The ongoing impact of the Covid-19 pandemic continues to affect the Society’s ability to continue fulfilling its charitable objectives. The Society has adapted well to remote working and objectives continue to be effectively fulfilled in many areas. Journals, books and the updated Geoscientist publication continues and events and conferences that were impacted by Covid-19 have either successfully been rescheduled to a virtual platform or continue to be deferred. Forward detailed financial planning and forecasting is frequently updated and reported to the Finance & Planning Committee and costs, wherever possible have been and continue to be mitigated. The Society has evolved to be more agile and adaptable and is now better capable of reacting to changes as the country emerges from the pandemic. Management and Trustees continue to monitor events and financial performance take the appropriate action to ensure the ongoing impact of the pandemic is minimised.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

1.4 Plans for future periods

1.4.1 Summary of future plans

Business Plan 2021

In order to achieve the objectives of the Society’s 2017-2027 Strategy (see section 1.1.2), Council approved a 2021 Business Plan in November 2020. This sets priorities for achieving strategic objectives on a three-year rolling basis and is divided into themes that are tied back directly to the Strategy. Operational objectives and deliverables are defined, together with timescales, resources and responsibilities.

Priorities identified in the 2021 Business Plan are as follows.

Advance multidisciplinary Earth science to inform global issues

• Deliver a high profile, high impact science programme across the Energy Transition & Materials and Geohazards science themes

• Deliver Year of Space programme

• Develop a high profile and varied science programme across the Climate Change theme

• Develop and implement a low-resource, high-impact policy activity strategy

Support professional development, careers and education in Earth science

• Support the professional development of Earth scientists including full support for career pathways towards CGeol

• Measurably improve the Society's relationships with academic institutions

• To communicate the importance and societal relevance of Earth science to STEM students to foster future generations of Earth scientists

• Review and revise Chartership Development Plan with objective of increasing Chartership uptake in targeted sectors

Be the inclusive and collaborative home for UK Earth scientists and increase our international orientation

• Provide a clear commitment and pathways to improved diversity, equality and inclusion within the organisation and across our science

• Undertake stakeholder mapping exercise as a basis for an outcome-centred prioritisation of engagement with external organisations and joint activities

• Support and deliver the degree course accreditation review

• Deploy an equitable, accessible membership model which targets under-represented demographics

Become a dynamic and responsive organisation with a strong digital identity

• Overhaul the Society's purpose and vision statements, and values

• Develop a 5 year digital strategy

• Transform the culture of the Society to instil greater agility, accountability, responsiveness, productivity, improved customer care and commercial awareness

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

Publishing

• Launch EScubed in line with proposal, publish first content and establish a development plan

• Deliver 26-28 accepted book proposals within calendar year, including two Geoscience in Practice titles

• Achieve sustained and measurable improvement in standard publication metrics of journal titles and book series

Library and information services

• Continue to improve the Library user experience by increasing our capacity to support users remotely and developing further our e-resources offering

• Develop a plan for the long term preservation, enhancement and promotion of our special collections and archives

• Implement fully all recommendations from library service review

1.5 Structure, governance and management

1.5.1 Governing instrument

The Society was founded in 1807 and incorporated by Royal Charter in 1825 (amended by a Supplemental Charter in 2005). This remains its governing instrument, from which its Bye-Laws (revised in 2000 and amended in 2003) are derived.

1.5.2 Organizational structure of the Society

The Society is based on two sites: its headquarters at Burlington House, Piccadilly, London; and its Publishing House in Bath.

Its governing body of trustees is known as Council and its governance and decision-making structures are set out in section 1.5.3 below.

The Society’s work is carried out on a day to day basis under the direction of the Executive Secretary. Staff of the Society are organized into the following areas of responsibility:

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

The majority of the Society’s activities are undertaken by the Society as a charitable body. Geological Trading Limited is the Society’s single wholly-owned subsidiary company. Its principal activity is to undertake the non-primary purpose trading of the Society, primarily hire of rooms and catering at Burlington House. The subsidiary company files separate accounts in accordance with the requirements of the Companies Act 2006; its results are also consolidated within the Society’s financial statements, which are annotated accordingly.

Details relating to the organizational structure of the Society’s subsidiary company are set out at section 1.5.4 below.

1.5.3 Governance and decision making

Governance structure

The Society is governed by a Council of 23 members (plus any additional co-opted members), including the President, and four secretaries; there are also up to three Vice Presidents. All official roles are honorary. Council is chaired by the President, and meets five times each year, including one strategy meeting in September.

Presidents are elected for two years, and the President-designate serves for one year on Council before assuming office. Council members are drawn from the Society’s Fellowship and may be proposed by any Fellow or by Council, as set out in the Society’s bye-laws. Council members are elected for three years and are collectively the Society’s trustees. The Fellowship elects Council members by ballot of all present at the Annual General Meeting. All elections are overseen by an Elections Committee. There is an annual Induction Day, open to both new and existing Council members, to ensure that they are made aware of the Society’s activities, objects and governance structures, as well as Charity Commission guidance on public benefit and their responsibilities as trustees.

New Fellows are elected by the Fellowship at Ordinary General Meetings (OGMs) of the Society, when names submitted to Council are formally proposed.

On President's Day, the Society has its Annual General Meeting (AGM), when the Fellowship receives reports from Officers and the Annual Accounts and approves fellowship dues for the coming year. Occasionally, for such matters as altering its Bye-laws, the Society may call a Special General Meeting (SGM). More detail about AGMs, OGMs and SGMs can be found in the Society's Bye-laws. All meetings are advertised in the Events section on the Society’s website.

Decision making

All significant decisions relating to the running of the Society are taken or approved by Council. In addition, the Society has formally constituted decision-making bodies in which detail will be considered before a recommendation is made to Council. The members of these bodies are set out online at www.geolsoc.org.uk/About/Governance/Committees and comprise the following:

• (i) Council Officers Group – the President, Vice-Presidents, Secretaries and Treasurer meet prior to each meeting of Council and are responsible for ensuring the efficient management of the Society. Chaired by the President. The Officers group met 4 times during 2020.

• (ii) Finance and Planning Committee – responsible for the financial health of the Society through effective control and transparency of the accounting processes, timely financial planning and investment management. Chaired by the Treasurer. The FPC met 5 times during 2020.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

• (iii) Professional & Chartership Committee – responsible for promoting professional excellence and ethical standards in the Earth sciences for the public good. Chaired by the Secretary, Professional Matters. The PC met 5 times during 2020.

• (iv) Science Committee – responsible for maintaining and implementing a science strategy for the Society that reflects its charitable aims and objectives, including through the Society’s conference programme. Chaired by the Secretary, Science. The SC met 3 times during 2020.

• (v) External Relations Committee – responsible for setting the Society’s approach to policy, education and outreach, communications, media relations, international matters and links with other organizations. Chaired by the Secretary for Foreign and External Affairs. The ERC met 3 times during 2020.

• (vi) Publications and Information Committee – responsible for the publication and distribution of high-quality, peer-reviewed Earth science literature in accordance with the Society’s charitable aims, and maintaining a library of physical and electronic resources for the Earth science and wider community. Chaired by the Secretary, Publications. The PIC met 3 times during 2020.

• (vii) Audit Committee – responsible for reviewing accounting procedures, internal control and financial risk, as well as for conducting a detailed examination of the Society’s draft annual financial statements. Chaired by a Fellow of the Society. The Audit Committee met twice during 2020.

• (viii) Awards Committee – responsible for consideration of nominations received from the Fellowship for the Society’s awards and medals. Chaired by the President. The Awards Committee met twice during 2020.

• (ix) Elections Committee – responsible for ensuring the proper conduct of elections to Council, including the nomination and election of officers. Chaired by the President. The EC met twice during 2020.

The Society also operates various sub-committees and special groups which report to these standing committees.

Executive Secretary and Senior Leadership Team

The Executive Secretary is the senior executive of the Geological Society. He is responsible to the President for operational management of the Society’s affairs and successful delivery of strategy and business plans. The Executive Secretary assists Council in determining strategic objectives and ensures these are achieved through effective deployment of resources, strong relationships with key partners, and leadership of the Society’s staff.

The Executive Secretary is assisted in the day-to-day running of the Society by three Directors, as set out in the diagram at section 1.5.2. The Executive Secretary and Directors together form the Society’s Senior Leadership Team.

Risk management

The Trustees and Senior Leadership Team actively review the major risks to which the charity is exposed on a regular basis. Systems and procedures have been put in place to manage those risks. These include a formal Risk Register that is reviewed regularly by the Senior Leadership Team, standing committees and Council. The Finance and Planning Committee also carries out an annual review of all risks. In late 2020, the Society licenced improved software to facilitate tracking of risks and mitigatory actions, and this product was implemented in early 2021.

1.5.4 Subsidiary company

Geological Trading Limited, registered in England as Company number 3522033, is a wholly-owned trading subsidiary of the Geological Society of London, offering room hire and associated catering services to the limited extent that is

16

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

permitted under the lease. The company’s results are consolidated into the Society’s Financial Statements and further details are provided in notes 1 and 32 to the Financial Statements. The company also produces separate accounts in accordance with the Companies Act 2006.

The company is governed by a board of directors who are nominated by the Geological Society as shareholder. Directors may serve either until they decide to step down voluntarily, they leave the Society, or the Society determines that their services are no longer required. Board meetings are held at least once every year.

The company is managed on a day-to-day basis by the staff of the Geological Society, acting on behalf of the directors. For this service the Society charges the company an administration fee which is shown in the company’s accounts at note 32.

1.5.5 Related parties and wider networks

Interests in other bodies

The Society has a[1] /3 interest in Petroleum Geology Conferences Ltd, a joint venture with the Energy Institute and the Petroleum Exploration Society of Great Britain, for the purpose of organizing, promoting and running a series of petroleum geology events which took place at intervals of four to six years. To date, 8 events have been organised since 1974. During 2020, the dissolution by way of a member’s voluntary liquidation commenced and was gazetted in March 2021. The dissolution will conclude mid-2021.

With the exception of listed investments, the Society holds no other interests, in whole or in part, in any other organization.

Collaborations

The Society is the oldest national geological society in the world and draws its memberships from all parts of society around the globe. It maintains a range of regional and specialist groups (details of which may be found on its website) and collaborates with a number of other organizations in fulfilling its charitable aims. These include specifically:

• (i) University Geoscience UK – we work together on a wide range of issues relating to higher education and research in the university sector, including through our Joint Higher Education Committee.

• (ii) Earth Science Teachers Association – ESTA is a key partner for delivery of our schools programme, including the annual Geoscience Education Academy.

• (iii) Geologists’ Association – the GA plays a vital role as the national body for amateur geologists, and we work together on areas including geoconservation, public engagement and raising the visibility of geology.

• (iv) Geology for Global Development – we work together to identify and promote challenges in future sustainability that can be addressed and championed by the geology community.

The Society accredits undergraduate and MSc degree programmes provided by universities and other Higher Education Institutions. It also validates in-house professional training schemes provided by employers. As the UK’s professional body for Earth science, it awards to suitably qualified Fellows the titles of Chartered Geologist, Chartered Scientist and European Geologist (under licence from the Science Council and European Federation of Geologists respectively); it also co-operates with other similar overseas bodies, including the American Association of Petroleum Geologists, the American Institute of Professional Geologists, the Institute of Geologists of Ireland and many others

17

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

now recognised through its Associated Societies scheme. The Society is the UK adhering body to the International Union of Geological Sciences.

1.5.6 Pay policy for senior staff

The senior staff members of the charity are identified at section 1.6.3. The pay of the senior staff is reviewed annually at the same time and in line with the review of pay for all staff. Senior staff receive a recurring pay award that is the same as that awarded to all staff and which has been considered and approved by the Finance and Planning Committee. In addition and as part of a new scheme in which all staff equally participate, senior staff may receive an annual bonus that is linked to achievement of agreed objectives. Details relating to senior staff pay are also set out in Notes 14 and 15 to the accounts.

1.6 Reference and administrative details

1.6.1 Legal and administrative information

Charity details

Name of charity: The Geological Society of London Charity registration number: 210161 Principal office: Burlington House, Piccadilly, London W1J 0BG

Subsidiary company details

Name of company: Geological Trading Limited Company registration number: 03522033 Registered office: Burlington House, Piccadilly, London W1J 0BG

1.6.2 Trustees

Council is the trustee body of the Society. The following named persons were trustees of the charity on the date this report was approved:

Honorary Officers -

President:

Vice Presidents:

Dr Michael Daly

Mr John Booth Mr Nicholas Reynolds Ms Jessica Smith

18

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

Secretaries: Prof. James Griffiths Dr Joel Gill Prof. Robin Strachan Dr Alexander Whittaker Treasurer: Mr Graham Goffey (Dr Keith Myers – Treasurer designate)

Other members of Council

Ms Joanna Alexander, Mr Thomas Backhouse, Mr Andrew Bloodworth, Dr Jennie Gilbert, Dr Kathryn Goodenough, Dr Michael Kehinde, Prof Chris King, Mr Andrew Moore, Prof Bryne Ngwenya, Dr John Perry, Ms Gemma Sherwood, Dr Helen Smyth and Mrs Lucy Williams.

The following named persons also served on Council as trustees during the financial year to which this report relates but stepped down prior to the date this report was approved:

Lesley Dunlop, Sarah Gordon, Nick Rogers, Kate Royse, John Talbot

There are no corporate trustees of the charity and no trustee holds title to property belonging to the charity.

1.6.3 Senior Leadership Team

The following named persons were senior staff members of the charity to whom day-to-day management of the charity was delegated by the trustees for the financial year to which this report relates:

Executive Secretary Dr Richard Hughes Director of Science & Communications: Dr Alicia Newton Director of Publishing: Maggie Simmons Director of Finance & Operations: Alex McPherson

1.6.4 Professional advisors and other relevant organizations

The following named organizations and persons have been associated with the charity for the financial year to which this report relates:

Bankers: Coutts & Co, 440 Strand, London WC2R 0QS Solicitors: Bristows, 100, Victoria Embankment, London EC4Y 0DH Auditors: RSM UK Audit LLP, 25 Farringdon Street, London, EC4A 4AB Investment advisors: Sarasin & Partners LLP, Juxon House, 100 St Paul’s Churchyard, London EC4M 8BU

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

2. Reports of the President, Treasurer and Executive Secretary

2.1 President’s report

From the President, Dr Mike Daly

Foundations for the future

In the midst of the challenging times of 2020 the Geological Society (GSL) laid some new foundations for its future. Covid-19 provoked an accelerated move to virtual communications making the Society more accessible to its membership and the science community at large. The Society also made significant strides in the matter of strategy, degree accreditation, our view of climate and environmental change and the long running issue of the Burlington House lease. In addition, it sanctioned a new Open Access journal and a redesign of the Geoscientist magazine.

With respect to the Covid pandemic, I would like to acknowledge and thank Richard Hughes and the GSL team, both in the Publishing House and Burlington House, for their pragmatism and resilience throughout the pandemic. The Society responded quickly and good use was made of the opportunity to move to virtual meetings, be they our science programme, early career events or Council meetings. This change was rapid and welcome and now represents an enhanced capability in the Society.

As the Society was ‘locking down’ in March, it was also beginning a strategic review to set the direction for the next decade. The Strategic Options Project engaged with Fellows and other stakeholders ranging from students to CEOs across the UK and overseas. The project identified four priorities to guide our activities over the coming decade:

1. Advance fundamental, multidisciplinary Earth and Planetary science to inform global issues

2. Support professional development, careers and education in Earth sciences

3. Be the inclusive home for UK Earth scientists, and increase our international collaboration

4. Become a more dynamic and responsive organisation with a strong digital identity

The launch of five scientific themes under priority one is central to the strategic aims. The first of these, the Energy Transition, was launched at the end of 2020 and will be steered by Nick Gardiner of St Andrews University. Activities within the remaining four themes: Planetary Science; Geohazards; Environmental and Climate Change; and Advanced Computing and Big Data will ramp up in 2021.

These themes augment the deep expertise of the Society’s Specialist Groups and will also feature in the GSL’s recently launched Open Access, online journal – Earth Science Systems and Society (ES[3] ). As the journal grows it will position the Society well in the growth of Open Access publishing.

The refresh of the degree accreditation process began with the appointment of Mark Anderson of Plymouth University. Mark has already added significant energy and direction to the long needed updating of the requirements for Earth Science qualifications. It is particularly timely given the recent decline of the numbers of students applying to read Earth Sciences at British Universities.

Throughout 2020, the GSL and its Burlington House neighbours continued to engage with the Government on the long-running problem of escalating rents and restrictions on how we can use the Burlington House premises. Discussions have resulted in the Society being presented with a fixed annual rent increase of 8% per annum for the next 5 years. These terms mean that our rent will become unaffordable over the same time period.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

Given the lack of progress on this issue Council decided to increase its Government-focussed lobbying effort and, as a contingency plan, set up a working group to assess the needs of a modern scientific society and what a future beyond Burlington House could look like for the GSL. Ex-President David Shilston is leading the New Premises Project and has gathered an impressive team to support him. Together with the Society of Antiquaries, the Astronomical Society and the Linnaean Society we have also engaged ‘April Sixth’, a PR company, to support the final campaign to engage Government in a resolution of the Burlington House rental issue.

This has not been the year I was expecting as President. Whilst more time consuming, it has also been far more varied and interesting. It has caused me to learn much about the history of our Society and its relationship with Britain’s past[1] . It has also clarified the relevance and role of the Geological Society for the future: in the medium term developing the underlying science required to deliver the energy transition; and in the longer term, underpin planetary exploration and the ever increasing geohazard, tectonic and crustal monitoring of our environment. It has also brought into sharp focus that we should be more active in ensuring the preservation and accessibility of geological data such as our unique map collection.

I would like to end this by thanking you, the membership, for your continued support for the Society. As ever we are only as good, and as relevant, as our membership makes us.

2.2 Treasurer’s report

From the Treasurer, Mr Graham Goffey

A challenging year for staff but much achieved…

2020 was a challenging year for the Society, with a financial outturn that reflects two major themes. COVID constrained much of the Society’s output, thereby reducing expenditure on subsidised activities such as education, policy and science. In parallel, and benefitting from a deliberate 2019 shift in investment strategy, the investment portfolio recovered from market falls to end with a substantial gain. Both income of £5.3m (2019 £5.6m) and expenditure of £5.5m (2019 £6.1m) were well below budget. The income figure includes £0.16m of furlough grant, reflecting the number of staff furloughed due to COVID. Investment and foreign exchange gains of £0.65m lead to an overall positive outturn of £0.44m. These largely unrealised, ‘paper’ gains dominate the financial outturn and obscure the deficit of expenditure over income at the operating level.

The pre-COVID receipt of most Fellowship dues limited the impact on this income stream and the Society was able to respond flexibly to Fellows experiencing COVID-related financial challenges. Publishing House revenues were inevitably reduced, with modest expectations for any near term recovery. During 2020 the Society’s planned response to the shifting publishing environment included the launch of two fully open access journals; Lithosphere (through Geoscience World) and new Society journal Earth Science, Systems and Society (ES[3] ). It is important and gratifying that the Publishing House has introduced a comprehensive open access journal offer although open access provides very limited revenue relative to our hybrid (mixed open access and free-for-author) publications. Concerns persist as to the income impact of open access on learned society publishers such as ours, without the scale benefits of the large commercial publishers. Since publishing provides some 50% of Society income, reduction in this income stream will be a significant challenge for the Society.

1 Reference Caroline Lam, 2020, Report on The Geological Society’s Archives and Special collections.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

To ensure that the Society lives within its means and reflecting a multi-year trend of falling income, in early 2020 a target was set to reduce annual outgoings by around £0.5m (c.10%) from 2021. A reduction of around 16% in headcount was achieved through the removal of several unfilled posts and most regrettably via a staff redundancy programme in Q4. Such programmes are difficult for all involved and especially for those losing employment, some of whom had long service with the Society and all of whom leave with our sincere thanks and best wishes for the future. Redundancy costs of £0.14m were paid in 2020.

After considerable benchmarking and analysis, a modernised Fellowship fees structure is proposed for 2022; ending the age-based scheme that had become both an anachronism and deterrent to new Fellows. The replacement scheme aims as far as possible to avoid fees increases and to minimise likely income losses for the Society. Additionally, the recommendations of the 2020 library review were accepted by Council. Having served on the review’s steering group I would highlight the shift to greater emphasis on digital delivery of science in order to broaden and simplify Fellows’ access. The review reaffirmed the importance of the Society’s map and core historic collections supported by the specialist expertise of key library staff. With falling visitor numbers and rising costs, some costsavings have been made, including reduced library staffing and ending subscription to infrequently read and unread journals. Also approved by Council in 2020 was the long overdue Responsible Investment Policy, aiming to align our investments with Paris Accord goals within a framework reflecting the Society’s deep understanding of the extractive sector.

After seven years on Council, I step down this year, confident that the Society is in the capable hands of my successor, Keith Myers. It has been a rewarding experience to collaborate with many highly motivated volunteers on numerous committees and working groups, to work with the Society’s capable staff, to whom I express my sincere thanks, and to see the Society clearly onto a modernising path. Despite long-running Burlington House interactions with HMG, rapidly rising rent valuations have been the continuing theme of my tenure. Seven years of service allows one to really appreciate the deep reach of the Society within our science and to see beyond the potential impacts of departing our historic apartments. I urge Fellows to support Council in making decisions first and foremost for the long term future of the Society, and to recognise, as I wrote last year, that there is also opportunity in a move should it become necessary.

2.3 Report of the Executive Secretary

From Dr Richard Hughes

When I wrote to you at this time last year the country was in the grip of the first lockdown related to the Covid-19 pandemic. As a consequence the Society’s Burlington House premises were closed to staff, Fellows and visitors for large parts of 2020, with only a limited re-opening of the Library possible in the early autumn.

An unexpected, but positive, impact of the pandemic was its acceleration of digital working practises. A rapid transition to virtual meetings enabled a much more inclusive attendance at lectures and events, making it possible for people to join from far-flung locations. Our Annual General Meeting, for example, was attended by Fellows joining this webinar-style event from Hong Kong and South America. A highlight of our events was the half-day panel discussion on the ‘Future of Geoscience’, attended by over 1,000 participants from around the world. This was followed by a

22

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

Society’s ‘summit’ on student enrolment at UK universities, from which a joint action plan with University Geoscience UK has been developed for implementation.

In 2018 the Society appointed its first Head of Development with the objective of increasing income from philanthropic sources. Strong progress has been made in laying down the foundations for growth, our former ‘Corporate Patrons’ scheme has been completely overhauled, and a legacy framework will soon be rolled-out. Corporate support can take different forms, and a successful bid into the JP Morgan ‘Force for Good’ programme has resulted in substantial pro bono expertise to implement the digital infrastructure to host the Society’s ‘Geoscience Education and Outreach Network’. When the network launches in 2021 it will provide a forum for all those interested in education and outreach to share resources and connect with volunteers, providing a digital platform to underpin our aspiration to inspire the next generation of Earth scientists.

Our Geoscience Education and Outreach Network work is not the only initiative to benefit from digital transformation. From the start of 2021, the Geoscientist will move to reduced frequency of hard-copy publication and a muchenhanced online presence with a new website optimised for mobile devices.

In late 2019 Council requested an in-depth review of the Society’s Library and Information Services. The review began in early 2020 and was undertaken by an independent expert panel, led by Professor Hazel Rymer. The review’s recommendations were accepted by Council in November 2020, and their implementation will result in an increased shift towards digital delivery of resources while emphasising the importance of our unique maps, heritage and science collections. The review also made recommendations which anticipate a possible re-location from Burlington House to smaller premises.

Neal Marriott stood down from his role as Director of Publishing in January 2020 and has been replaced by Maggie Simmons. Neal made an enormous contribution to the Society over the years, leaving behind a highly accomplished scholarly publishing operation highly regarded on the international stage. The transformation of the Society’s publishing operations in response to a rapidly changing landscape continued with the launch of new, online open access journal Earth Science Systems and Society (ES[3] ).

The review of current Fellowship categories, fees and benefits gathered pace in the second half of 2020. It is recognised that current, largely age-based fee structure, has been in place a long time, is unpopular, and seen by some as unaffordable and discriminatory. A consultation to gather Fellows’ and non-Fellows’ views on current and potential new structures and benefits ran in December 2020, and your feedback will be incorporated into new proposals that will be tabled at our 2021 Annual General Meeting.

2020 was an extraordinary year for the Society, with many highs and lows. In addition to the many highlights described above an important ‘Strategic Options’ Review was accomplished under entirely remote working conditions. On the ‘down side’ the Society’s financial position led to a small number of unavoidable and regrettable redundancies. I am very grateful to the staff affected for their service and dedication to the Society over the years, and wish them every future success.

Finally, it gives me enormous pleasure to thank all the Society’s staff, both at Burlington House and Bath, for their exceptional adaptability and resilience throughout the difficult circumstances created by the continuing pandemic. It is entirely due to them that the Society was able to migrate rapidly and seamlessly to remote working patterns, so

23

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial slalements for the year ended 31 December 2020 avoiding significant disruptM)n to most Fellowship servi￿$ and ￿tiV1b'eS, and allowng us to look forward in 2021 with renewed optimism. The Trustees are responsible for preparing the Trustees, report and the financial statements in accordance with applicable law and United Kingdom AcLounting Stsndards Iunited Kingdom Generally Ac￿pIed Accounting Praclicel, The law that is applicable lo charib'es in England and Wales requires the Trustees to prepare financial slalements for each financial year that give a true and fair view of the state of affairs of the group and the charity and of the incoming resources and application of resources of the group for that period. In preparing these financial slatemenls, the Trustees are required to.. select suitable accounting policies and apply them consistently.. observe the melhcmjs and principles of the Charikn'es Statement Of Recommended Practice {'SORP'I 2019., make judgements and eslimales that are re￿nable and prudent. stale whether applicable accounting standards have teen followed, subpct lo any material departures disclosed and explained in the financial statements,. and prepare financial slalements on the going con￿rn basis unless it is inappropriate to presume that the charity will ￿ntinUe in OFeration. The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity's transactions and disclose with reasonable ￿UraCY al any lime the financial position of the charity and enable them to ensure that the financial slalemenls comply with the Charities Act 2011 and the Chanly {Accounls and Reports) Regulations 2008. They are also ￿s￿nsIble for safeguarding the assets of the group and the charity and hence for taking reasonable steps for the prevention and detetbjn of fraud and other irregularities. The Trustees are responsible for the Maintenan￿ and integrity of the charity and financial infomialion included on the charity's website. This is published in accordance with legislalK)n in the United Kingdom goveming the preparation and dissemination of financial statements and may differ from legislats'on in other jurisdictions. The Trustees who were in office on the dale of approval of these financial slalements have confirmed that, a5 far as they are aware, there is no relevant audil infom)abon of which the auditors are unaware Each of the Trustees has confirmed that they have taken all the steps that they ought lo have taken as a Trustee in order to make themselves aware of any relevant audit infomlalion arKI lo establish that it has been ¢J)mmunicaled lo the auditor. Signed n behalf of the Trustees: Ichael Daly resident Date.. 7 Aprll 2021 Mr Graham Goffey Treasurer Dale- 7 Apfll 2021 24

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

4. Independent auditor’s report to the Council of the Geological Society of London

Opinion

We have audited the financial statements of the Geological Society of London (the ‘parent charity’) and its subsidiaries (the ‘group’) for the year ended 31 December 2020 which comprise the Consolidated Statement of Financial Activities, the Charity only Statement of Financial Activities, the Consolidated and Charity only (Parent Charity) Balance Sheets, the Consolidated Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and charity’s affairs as at 31 December 2020 and of their incoming resources and application of resources for the year then ended;

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

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

Basis for opinion

We have been appointed as auditors under section 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.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the Trustees’ Report and Consolidated Financial Statements other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the Trustees’ Report and Consolidated Financial Statements. Our opinion on the financial statements does not cover the other information and, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be

25

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

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

• the information given in the financial statements is inconsistent in any material respect with the Trustees’ Report; or

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

• the parent charity 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.

Responsibilities of trustees

As explained more fully in the Statement of Trustees’ responsibilities set out on pages 24 and 25, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the group’s and 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.

The extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of noncompliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

26

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 D￿rnber 2020 In identfyin9 and assessirrfJ risks of rnaleria misstatern£nt in re$r￿t of irregularilps. ir￿lUding fraud, the group audit engagernenl team.. obtained an understsndiThJ of the nature of the sector. incI￿lIr￿J the legal and regulatory frameworks, that the group and parent charity opeiate in and how the grc4Jp a￿1 parent chanty are complying wth the legal and regulatory frameworks., inquired ol management, and those chatggj pvemaK8. atoul their own idenbficab'on and assessment of the risks ol irregularities, including any knovm aclual, suspecbj ¢y alw instances ol fraud,. discussed mattef5 about nOn-¢0m￿lar￿è with laK and regulations and hjw fraud mvJhl occur including assessment of how and where the financial ststenEnts may be suscepb'ble to fraud. As a result ol these procedures we consider Ihe most spjnificanl lavts and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP IFRS 1021, Chanb'es Act 2011 and the parent charity's goveming document. We performed audit prwedures to delecl non-compliances which may have a material imp&1 on the financial statements which included reviewiro the fina￿la1 statements including thè Tnjstees. Report, rematning alert lo new or unusual Iransacts'ons which may not be in &cordance with the govemiro d￿￿[l￿nts. The most Signif￿nI laws and regulat￿nS that have an i￿JIreCt IM￿ on the financia statem&nts are those in relation to the General Data ProleGtson Regulation. We Ferfomied a￿111 procedures to Inqui￿ of management and those charged with govemance whether the group is in compliance wlh these regUla1K￿s. The group audrt engagernEnl team identified the risk of mana3ement override ol conlrds as the area where the financial stslements were most susceptible lo matenal misslalement due lo fraud. Audit prttedures perfomed included but were not limited lo testing rnanual joumal ent￿$ arKi other ajjustments. evaluab'rvj the busness rats'onale in relation lo any significant, unusual Iransaclv)ns and tranwlK)ns entered into Ihè rnmial course of business, and challeNJing judgments and eslimales. A further descriptson of our responsibilitss for the awjrt of ts fin￿￿la1 stslements is pffjvided on the Financial Reporting Council's website al httP.'Il%w￿.fr¢.org.UkI8UditorsIeS[13n￿b1Ilts8s. This deS￿1Ption fomis part of our audilorfs report. Use of our report This report is made sobly to the charity's Iruslees as a tojy, in ￿COrda￿e wth the Ch￿treS Act 2011. Our audit work has been undertaken $0 that we might slate lo the chanty's trustees ihose matters we are wuired to gla1& lo them in an auditorf5 report and for no other purpJse. To the frJlbsl extenl pemitted by law, *e do rKsl xcepl or assume wponsibility lo anyone other than the charity and the charity's tnjstees as a ttsjy. lorouf audit for this reFrt or for Ihe opin￿9 wè have forffled, ft Sfr4 LLP RSM UK AUDIT LLP Slatulory Auditor 25 Farringdon Street London EC4A 4AB Dale.. 17 L•L( RSM UK Audit LLP is elNJible to act as an auditor in temis of secth)n 1212 of the Companie5 Act 2(M)6. 27

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

5. Statements of Financial Activities

5.1 Consolidated Statement of Financial Activities as at 31 December 2020

Note Income and endowments from: Donations and legacies 2 Charitable activities - Science & education 3.a - Professional & academic standards 3.b - Scholarly publishing 3.c - Library & archives 3.d Other trading activities - Room hire & catering 4 Investments 5 Other Income 6 Total income Expenditure on: Raising funds - Room hire & catering 7.a - Investment management costs 7.b Charitable activities - Science & education 8.a - Professional & academic standards 8.b - Scholarly publishing 8.c - Library & archives 8.d Total expenditure (Deficit) of income over expenditure Net gains / (losses) on investments 19 Net income/(expenditure) Transfers between Funds Other gains / (losses) in year 20 Tax Payable 36 Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward	2020		2019
	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 27,643 20,000 - 47,643 187,425 - - 187,425 641,019 - - 641,019 3,451,579 - - 3,451,579 616,089 - - 616,089 51,897 - 51,897 131,770 9,852 - 141,622 165,996 - - 165,996		Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 46,592 - - 46,592 376,335 - - 376,335 677,920 - - 677,920 3,332,840 - - 3,332,840 651,962 - - 651,962 270,003 - - 270,003 211,496 16,619 - 228,115 - - - -
	5,273,418 29,852 - 5,303,270		5,567,148 16,619 - 5,583,767
	71,750 - - 71,750 37,847 3,512 13,335 54,694 1,081,375 26,504 1,511 1,109,390 582,053 - - 582,053 2,582,503 - - 2,582,503 1,113,986 - - 1,113,986		189,638 - - 189,638 46,546 653 2,740 49,939 1,340,849 34,327 2,350 1,377,526 696,393 1,884 - 698,277 2,678,931 27,804 10,456 2,717,191 1,115,895 543 - 1,116,438
	5,469,514 30,016 14,846 5,514,376		6,068,252 65,211 15,546 6,149,009
	(196,096) (164) (14,846) (211,106) 427,219 46,410 176,238 649,867		(501,104) (48,592) (15,546) (565,242) 451,740 55,507 232,854 740,101
	231,123 46,246 161,392 438,761 - - - - 7,454 (1,734) (6,586) (866) - - - -		(49,364) 6,915 217,308 174,859 (7,012) 7,012 - - (42,098) (754) (3,162) (46,014) (903) - - (903)
	238,577 44,512 154,806 437,895		(99,377) 13,173 214,146 127,942
	6,996,026 837,016 2,139,064 9,972,106		7,095,403 823,843 1,924,918 9,844,164
	7,234,603 881,528 2,293,870 10,410,001		6,996,026 837,016 2,139,064 9,972,106

The notes on pages 32-58 form an integral part of these Financial Statements.

28

THE GEOLOGICAL SOCIETY OF LONDON

Annual report and financial statements for the year ended 31 December 2020

5.2 Charity only Statement of Financial Activities as at 31 December 2020

Note Income and endowments from: Donations and legacies 2 Charitable activities - Science & education 3.a - Professional & academic standards 3.b - Scholarly publishing 3.c - Library & archives 3.d Other trading activities - Room hire & catering 4 Investments 5 Other Income 6 Total income Expenditure on: Raising funds - Room hire & catering 7.a - Investment management costs 7.b Charitable activities - Science & education 8.a - Professional & academic standards 8.b - Scholarly publishing 8.c - Library & archives 8.d Total expenditure (Deficit) / Surplus of income over expenditure Net gains / (losses) on investments 19 Net income/(expenditure) Transfers between Funds Other gains / (losses) in year 20 Tax Payable 36 Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 59,940 20,000 - 79,940 187,425 - - 187,425 641,019 - - 641,019 3,451,579 - - 3,451,579 616,089 - - 616,089 49,023 - - 49,023 131,770 9,852 - 141,622 165,996 - - 165,996 5,302,841 29,852 - 5,332,693 70,194 - - 70,194 37,847 3,512 13,335 54,694 1,080,717 26,504 1,511 1,108,732 582,053 - - 582,053 2,582,503 - - 2,582,503 1,113,986 - - 1,113,986 5,467,300 30,016 14,846 5,512,162 (164,459) (164) (14,846) (179,469) 427,219 46,410 176,238 649,867 262,760 46,246 161,392 470,398 - - - - 7,454 (1,734) (6,586) (866) - - - - 270,214 44,512 154,806 469,532 6,959,636 837,016 2,139,064 9,935,716 2020	2019
		Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 46,592 - - 46,592 376,335 - - 376,335 677,920 - - 677,920 3,332,840 - - 3,332,840 651,962 - - 651,962 205,461 - - 205,461 211,496 16,619 - 228,115 - - - -
		5,502,606 16,619 - 5,519,225
		157,636 - - 157,636 46,546 653 2,740 49,939 1,340,849 34,327 2,350 1,377,526 696,393 1,884 - 698,277 2,678,931 27,804 10,456 2,717,191 1,115,895 543 - 1,116,438
		6,036,250 65,211 15,546 6,117,007
		(533,644) (48,592) (15,546) (597,782) 451,740 55,507 232,854 740,101
		(81,904) 6,915 217,308 142,319 (7,012) 7,012 - - (42,098) (754) (3,162) (46,014) - - - -
		(131,014) 13,173 214,146 96,305
		7,090,650 823,843 1,924,918 9,839,411
	7,229,850 881,528 2,293,870 10,405,248	- 6,959,636 837,016 2,139,064 9,935,716

The notes on pages 32-58 form an integral part of these Financial Statements.

29

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial slalemenls for the year ended 31 December 2020 6. Balance Sheets at 31 December 2020 Con¥did•J Balm Shqot 1019 Chwty ￿lY Sh¢•t 2019 Fld as￿.. Intsryible a55ets -VdebsiÈ leyeh)p￿nt - ITSYSb￿ devebprrort T3ryib￿ 8ss8ts - lease￿10 propety - equipment fixts8s & fiknTrJ5 - compuÈrequipfflenl Heritsge assets - librdry knvestrnenb - liitsd and baded in¥e$hr - portblio cash 16 16 17 $51,075 W852 5 674,(e3 %1,075 5M852 674.083 17 17 17 31&282 31 397.338 5174 421.926 .125 YZ 51749 421,916 68,125 542.988 18 1.M7WJ 1.257. 1.257.996 19 19 7,W972 IN686 7,XI858 &53).135 118.5n &fA707 7,D29.9T2 Iw.186 7,210, 6.5￿,135 118.572 6,648,707 YO￿ >7x•rf•wts.' 9,1￿,￿4 9,￿,226 ,123,774 Cuirent41• Sbck$ . stock in progTr¥¥ 21 211715 45,047 312,524 1.231.618 1.810.418 45,047 D8bb hv8$thents Cash al bk in h8TrJ 6,576 1,231,818 1.699,1n 1206,5 3.$97. 3.435,sn 3,559, Crediknra . arnounts flliry 1 yew .749. .747,123 9J1,022 811,942 Totsl n￿•￿Its wll•blllLT 10,41Q,C•l 9.9n.11% 10,4Th248 9,￿5,716 The run￿ 01th•c￿tr. Un￿$￿¢d Reshcbd inco￿* •Jr￿S End0WFr￿nt fi￿5 7.2M 881,528 1291810 7,229,89J 1,528 837,016 li￿,[64 7,016 2,139,064 rotsl fvftds 10,41IWI 9.9nl(6 10,401248 9,935,716 The notes on pages 32-58 fom &) integral part ol Ihege Fmanoal Statements. Appro ed by the trustees on 7th April 2021 and s￿ned on their t¢half by.. r Michael Daly resident Mr. Graham Goffey Treasurer 30

THE GEOLOGICAL SOCIETY OF LONDON

Annual report and financial statements for the year ended 31 December 2020

7. Consolidated Cash Flow Statement for the year ended 31 December 2020

Note Cash flows from operating activities: Net cash provided by operating activities: 33 Tax paid 36 Cash flows from investing activities: Dividends and interest from investments: 5 Purchase of property, plant and equipment 16,17,18 Proceeds from sale of investments: 19 Purchase of investments: 19 Net cash provided by investing activities: Cash flows from financing activities: Net cash provided by financing activities: Change in cash and cash equivalents in the reporting period: Cash and cash equivalents at the beginning of the reporting period: 34 Change in cash and cash equivalents due to exchange rate movements: 20 Cash and cash equivalents at the end of the reporting period: 34	£ £ (269,766) - 141,622 (187,630) 2,210,638 (2,122,722) 41,908 - (227,858) 3,042,036 (866) 2,813,312 2020	£ £ (269,766) - 141,622 (187,630) 2,210,638 (2,122,722) 41,908 - (227,858) 3,042,036 (866) 2,813,312 2020	£ £ (770,441) (903) 228,115 (250,346) 4,808,161 (4,808,161) (22,231) - (793,575) 3,881,625 (46,014) 3,042,036 2019
		(227,858) 3,042,036 (866)
		2,813,312

The notes on pages 32-57 form an integral part of these Financial Statements.

31

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

8. Notes forming part of the Financial Statements

1 Accounting policies

The accounting policies set out below have been applied consistently in the preparation of the financial statements.

(a) Basis of preparation

The financial statements have been prepared in accordance with applicable accounting standards, the Charities Act 2011, and the Statement of Recommended Practice, Accounting and Reporting by Charities (‘SORP’), effective 1 January 2019 and Financial Reporting Standard (‘FRS’) 102, which the Society has adopted. The 2005 Charities SORP, which has been withdrawn but is still referred to in the extant Charities (Accounts and Reports) Regulations 2008, is not used in order for the financial statements to show a true and fair view in accordance with United Kingdom Generally Accepted Accountancy Practice effective for accounting periods beginning on or after 1 January 2019.

Figures are prepared using the historical cost convention, with the exception of investments which are included at market value.

The Society’s accounts are prepared on the basis that it is a going concern. It continues to produce an annual surplus of income over expenditure and has set its 2021 budget on the reasonable assumption that this will continue. In the light of the ongoing impact of Covid 19 pandemic, the Trustees and management have re-assessed and updated the forecast and are confident there are sufficient reserves to continue operating for the foreseeable future. The Society continues to monitor events as they unfold, and the forward projections are updated accordingly.

The Trustees confirm that at the time of approving the financial statements, and based on their forecasts until 31 May 2022, there is a reasonable expectation that the Society has adequate resources to continue in operational existence for the foreseeable future. In arriving at this conclusion, the Trustees have taken account of current and anticipated financial performance in the current economic conditions, and the Society’s reserves position. At 31 December 2020, the Society held unrestricted cash balances of £2.8m and unrestricted investments of £4.7m.

(b) Changes in accounting policy

There were no changes to accounting policies in the 2020 financial year.

(c) Consolidated accounts

These financial statements are consolidated, bringing together on a line by line basis the accounts of the Geological Society of London and its wholly owned subsidiary trading company: Geological Trading Limited. The reporting dates for both entities is 31 December of each year.

Separate Statements of Financial Activities and Balance Sheets are also provided that show the charity-only position at the reporting date. The results, assets and liabilities of Geological Trading Limited are shown in Note 32.

(d) Income

Income is recognised and accounted for on an accruals basis. This means that it is attributed to the reporting year to which it relates rather than the year in which it may be received. For example, income received which relates to activities and benefits that occur in the following year is excluded from the Statement of Financial Activities and is

32

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

included as deferred income in the Balance Sheet. All income of this nature will be released to the Statement of Financial Activities in the financial year that the activities and benefits occur.

Fellowship fees, Corporate Affiliate fees and subscriptions for publications are usually collected in the months leading up to the membership year (and financial year) to which they relate. Generally, those fees collected from September of each year when the fee renewal process is commenced are attributable to the following year and treated as set out above. Income relating to conferences, events and room-hire may also be received in advance and so is treated in accordance with the accruals concept.

Recognised income collected through Fellowship fees and a proportion of income collected as Corporate Affiliate fees is re-allocated to those activities from which the fee payers derive benefit. Note 3 provides further detail.

Income from legacies is recognised when receipt becomes probable, i.e. probate is granted, the executors have established that sufficient funds exist for distribution, and any conditions attached are either discharged or fall within the Society’s control.

Any tax credit arising on income received net of tax is accrued as part of the income arising. Legacies are recognised when there is a legal entitlement, it is probable that they will be received and when they are measurable with sufficient reliability.

(e) Expenditure

Expenditure is recognized and accounted for on an accruals basis. This means that it is attributed to the reporting year to which it relates rather than the year in which it may be made. For example, creditor invoices received after year-end but relating to goods or services received by the Society prior to year-end are included as costs in the Statement of Financial Activities and shown as accruals in the Balance Sheet.

Expenditure relating to purchase of fixed assets is capitalized and not included in the Statement of Financial Activities at point of purchase. Depreciation is charged back to the Statement of Financial Activities, however, over the useful life of the asset. Notes 16-18 set out further details of capital costs, depreciation and net book value held.

Expenditure relating to support activities, facilities costs and governance is allocated to front-line activities in the form of overheads. Note 9 describes how this is done.

Grants payable are charged in the year when an obligation arises in accordance with the requirements of the Charities SORP 2019 and are allocated to appropriate charitable expenditure headings.

The Society makes contributions to a group personal pension scheme. The pension cost charge shown represents contributions payable by the Society to the scheme. Any difference between amounts charged in the Statement of Financial Activities and paid to the pension scheme is included in the balance sheet as a liability or asset.

Value Added Tax on purchases and expenses, the reclamation of which is disallowed under partial exemption regulations, is charged as a cost against activities during the year.

(f) Accounting estimates and judgements

Accounting estimates and judgements are continually evaluated based upon experience and reasonable expectations of future events. These include:

• (i) Income recognition of legacies – income may be recognized prior to receipt of all funds from a legacy. Where this is the case an estimate of the likely benefit will be made based upon information available from the donor’s estate.

33

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

• (ii) Provisions for bad debt – the Society provides in full for all debt that is over 12 months old. This is based upon experience and ongoing review of debt recovery. Any debt adjudged unrecoverable is fully written off.

• (iii) Provisions for lease payments due – provisions are included in creditors for the sums calculated as due under the lease but not yet billed by the landlord’s agent.

• (iv) Reserves – the Society’s reserves policy is set out at Section 1.3.2 and is based upon covering expenditure for up to nine months.

(g) Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the Balance Sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the Statement of Financial Activities as foreign exchange gains or losses.

(h) Fixed assets

Redevelopment of the Society’s website, which is seen as an important mechanism for delivering its charitable activities, is classified as an intangible fixed asset. Upgrade of core business systems, and those used for Fellowship and Publishing is treated in the same way. Note 16 sets out further details of capital costs, amortization and net book value held.

Tangible fixed assets include improvements to the leasehold property occupied by the Society at Burlington House, capitalized equipment, fixtures and fittings at both London and Bath sites, and computer equipment. Note 17 details costs, depreciation and net book value held, as well as the basis for charging depreciation to Income and Expenditure accounts. No land is owned by the Society.

The Society classifies its library collection and collection of portraits, busts, historical furniture and the Society’s Charter as heritage assets. Note 18 sets out how such assets are treated.

Equities and bonds held by the Society to generate income over a period longer than a single year are classified as fixed asset investments. Note 19 sets out further details.

(i) Current assets

The Society holds stock of scientific publications produced by its Publishing House, as well as a small stock of works produced by third parties for re-sale. These are recognized as current assets in the balance sheet and Note 21 provides further detail, including policy on the treatment of Work In Progress.

Debtors include amounts owed to the Society and incorporate a provision for bad debt. This is based on providing for non-payment of all debt that is more than 12 months old. Note 22 sets out further details.

In addition to its fixed asset investments, the Society separately operates a money market account, which is classified as current asset investments. These are further described in Note 23.

Cash is held by the Society and its Regional Groups primarily in Sterling but also in US Dollars and Euros. Foreign currency is accounted for as set out above.

(j) Current liabilities

Creditors include amounts owed by the Society. Deferred income collected during the year but relating to following years (see above) is also classified as a creditor. Note 24 sets out further details.

34

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

(k) Funds and reserves

The Society recognizes the following classifications of funds and reserves:

• (i) Unrestricted general funds – balances arising from income that is not otherwise restricted or designated in any manner;

• (ii) Unrestricted designated funds – unrestricted balances that the trustees have earmarked for specific purposes (and which may be re-assigned at trustees’ discretion);

• (iii) Restricted income funds – balances that are restricted by a deed of trust to use only for specific purposes;

• (iv) Endowment funds – expendable endowments where the trustees have the power to convert funds into income as established by the terms of the trust under which the endowment was provided;

Notes 26 to 29 analyse the make-up of these funds and include summaries of each separate, material fund. Note 30 analyses how assets are allocated across funds.

The reserves policy set by the trustees is to build and maintain a contingency sufficient to cover nine months of core operational expenditure (within a range of 20% above or below this value). Note 31 sets out how this is calculated.

As a result of its review of funds in 2016, Council also adopted a Policy for Effective Use of Funds, which will govern how income held in different funds types is applied, taking into account any restrictions imposed by donors or by the nature of the fund.

(l) Cash flow statement

A consolidated cash flow statement is provided that is compliant with FRS 102 and the Charity SORP 2019. Notes 33 and 34 detail reconciliation of the financial statements to the cash flow statement and total cash and cash equivalents.

No charity only cash flow statement has been prepared as advantage has been taken of the reduced disclosure framework at paragraph 1.12 of FRS 102.

2 Donations and legacies

During the year the Society received a number of donations totalling £47.6k (2019: £46.6k). These include two significant anonymous donations and a number of smaller equally generous donations. These have been recorded as donations in the Statement of Financial Activities. The Directors of Geological Trading Ltd (GTL) have entered into a Deed of Covenant whereby profits are automatically donated to the Society. These profits will be included in the financial statements. In 2020, GTL donated £32k to it’s parent.

3 Income from charitable activities

Income from the Society’s charitable activities is analysed over the following areas of activity. Core Fellowship fees are collected annually from members of the Society and allocated across activities to reflect the benefit received in return. Similarly, those elements of the Corporate Patron fee, collected from bodies which support the Society, and which are attributable directly to benefits provided in return, are allocated to the appropriate activity.

35

Annual report and financial statements for the year ended 31 December 2020

THE GEOLOGICAL SOCIETY OF LONDON

Allocation of Fellowship fee and Corporate Patron income:

Activity Science & education Professional & academic Publishing Library & archives Trading	Core Fellowship Fee Income	Core Fellowship Fee Income	Corporate Patron Fee Income	Corporate Patron Fee Income
	2020	2019	2020	2019
	% £ % £ 1.1% 17,154 1.1% 17,803 18.1% 293,016 18.1% 304,108 43.4% 702,648 43.4% 729,247 37.4% 607,480 37.4% 630,477 0.0% - 0.0% -		% £ % £ 6.3% 9,051 6.3% 6,993 79.9% 114,786 79.9% 88,689 0.0% - 0.0% - 1.5% 2,155 1.5% 1,665 12.3% 17,670 12.3% 13,653
	100.0% 1,620,298 100.0% 1,681,635		100.0% 143,662 100.0% 111,000

Analysis of charitable income:

Analysis of Charitable activity	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2020	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2019
3.a Science & Education Flagship meetings & events 30,179 - - 30,179 Energy Group meetings 123,626 - - 123,626 Other meetings & events 500 - - 500 Grants & other direct funding - - - - Friends of the GSL - - - - Other Income 6,915 - - 6,915 Membership fees redistributed 26,205 - - 26,205 Sub-total: 187,425 - - 187,425	30,179 - - 30,179 123,626 - - 123,626 500 - - 500 - - - - - - - - 6,915 - - 6,915 26,205 - - 26,205	88,257 - - 88,257 256,965 - - 256,965 24 - - 24 - - - - 292 - - 292 6,001 - - 6,001 24,796 - - 24,796
		376,335 - - 376,335
3.b Professional & academic standards Fellowship & Chartership fees 452,250 - - 452,250 Corporate Patrons fees 148,662 - - 148,662 Accreditation 20,350 - - 20,350 Specialist & Regional Groups 19,469 - - 19,469 Other Fellowship Income 288 - - 288 Sub-total: 641,019 - - 641,019		441,442 - - 441,442 111,000 - - 111,000 17,791 - - 17,791 107,125 - - 107,125 562 - - 562
		677,920 - - 677,920
3.c Scholarly publishing Book sales & distribution 212,630 - - 212,630 Lyell Collection 1,646,365 - - 1,646,365 GSL journals 525,086 - - 525,086 Non-GSL Journals 35,583 - - 35,583 Geology Today 13,472 - - 13,472 Geofacets 30,109 - - 30,109 Geoscientist 4,537 - - 4,537 GSW Ebooks 67,389 - - 67,389 Royalties & copying income 213,090 - - 213,090 Other Publishing Income 670 - - 670 Membership fees redistributed 702,648 - - 702,648 Sub-total: 3,451,579 - - 3,451,579	212,630 - - 212,630 1,646,365 - - 1,646,365 525,086 - - 525,086 35,583 - - 35,583 13,472 - - 13,472 30,109 - - 30,109 4,537 - - 4,537 67,389 - - 67,389 213,090 - - 213,090 670 - - 670 702,648 - - 702,648	237,849 - - 237,849 1,552,755 - - 1,552,755 474,431 - - 474,431 38,387 - - 38,387 12,886 - - 12,886 38,464 - - 38,464 11,096 - - 11,096 78,472 - - 78,472 158,974 - - 158,974 279 279 729,247 - - 729,247
		3,332,840 - - 3,332,840
3.d Library & Archives Library Income 6,454 - - 6,454 Membership fees redistributed 609,635 - - 609,635 Sub-total: 616,089 - - 616,089	6,454 - - 6,454 609,635 - - 609,635	19,820 - - 19,820 632,142 - - 632,142
		651,962 - - 651,962
Grand total: 4,896,112 - - 4,896,112		5,039,057 - - 5,039,057

36

THE GEOLOGICAL SOCIETY OF LONDON

Annual report and financial statements for the year ended 31 December 2020

4 Other trading activities

Consolidated Income Unrestricted Restricted Endowment Total Analysis of Funds Funds Funds Funds Other trading activities £ £ £ £ 2020	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2019
Room hire: Fellows & associates 14,937 - - 14,937 Room hire: subsidiary company - - - - Catering: Fellows & associates 28,132 - - 28,132 Catering: subsidiary company - - - - Other activities (8,842) - - (8,842) Membership fees redistributed 17,670 - - 17,670	74,219 - - 74,219 38,298 - - 38,298 101,951 - - 101,951 26,244 - - 26,244 15,638 - - 15,638 13,653 - - 13,653
Grand total: 51,897 - - 51,897	270,003 - - 270,003
Charity-only Income Unrestricted Restricted Endowment Total Analysis of Funds Funds Funds Funds Other trading activities £ £ £ £ 2020	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2019
Room hire: Fellows & associates 24,808 - - 24,808 Catering: Fellows & associates 26,772 - - 26,772 Other activities (20,227) - - (20,227) Membership fees redistributed 17,670 - - 17,670	85,219 - - 85,219 101,951 - - 101,951 4,638 - - 4,638 13,653 - - 13,653
Grand total: 49,023 - - 49,023	205,461 - - 205,461

5 Investment income

Analysis of Investment income	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2020	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2019
Investment income received 126,673 9,852 - 136,525 Bank interest on funds held 5,097 - - 5,097 Grand total: 131,770 9,852 - 141,622	126,673 9,852 - 136,525 5,097 - - 5,097	204,063 16,619 - 220,682 7,433 - - 7,433
		211,496 16,619 - 228,115

6 Other income

Analysis of Other income	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2020	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2019
Grant Income (Furlough grants) 163,779 - - 163,779 Other Income 2,217 - - 2,217 Grand total: 165,996 - - 165,996	163,779 - - 163,779 2,217 - - 2,217	- - - - - - - -
		- - - -

37

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

7 Expenditure on raising funds

Expenditure relating to trading and investment activities is shown below. This includes a fair share of support and governance costs, apportioned to the Society’s activities as explained in Note 9.

Non-staff costs include payments to outside bodies for the provision of catering services. Direct staff costs represent the time of a member of the Conference Office who is involved in administering room hire bookings.

7.a Room hire and catering

Analysis of Consolidated Room hire & catering costs	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2020	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2019
Room hire costs 9,748 - - 9,748 Catering costs 22,779 - - 22,779 Overheads recharged 39,223 - - 39,223 Grand total: 71,750 - - 71,750	9,748 - - 9,748 22,779 - - 22,779 39,223 - - 39,223	36,306 - - 36,306 110,021 - - 110,021 43,311 - - 43,311
		189,638 - - 189,638
Analysis of Charity Only Room hire & catering costs	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2020	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2019
Room hire costs 9,748 - - 9,748 Catering costs 21,223 - - 21,223 Overheads recharged 39,223 - - 39,223 Grand total: 70,194 - - 70,194	9,748 - - 9,748 21,223 - - 21,223 39,223 - - 39,223	18,145 - - 18,145 96,180 - - 96,180 43,311 - - 43,311
		157,636 - - 157,636

7.b Investment management

Investment management costs are allocated across fund classes on the basis of share of the total investment fund attributable to each class.

Management costs for the year amounted to :

Analysis of Investment Management Costs	2020 Total Costs £	2019 Total Costs £
Management Fee 49,172 Overheads recharged 5,522 - Grand total: 54,694	49,172 5,522 -	42,585 7,354
		49,939

38

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

8 Expenditure on charitable activities

Analysis of charitable expenditure:

Analysis of Charitable activity	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2020	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2019
8.a Science & education Flagship meetings & events 27,797 - - 27,797 Energy Group meetings 7,728 - - 7,728 Other scientific & educational events 7,581 - - 7,581 Science & Education Committee 18,911 26,504 1,511 46,926 Direct staff costs 454,640 - - 454,640 Overheads recharged 564,718 - - 564,718 Sub-total: 1,081,375 26,504 1,511 1,109,390	27,797 - - 27,797 7,728 - - 7,728 7,581 - - 7,581 18,911 26,504 1,511 46,926 454,640 - - 454,640 564,718 - - 564,718	59,643 - - 59,643 187,848 - - 187,848 27,723 - - 27,723 28,019 34,327 2,350 64,696 531,462 - - 531,462 506,154 - - 506,154
		1,340,849 34,327 2,350 1,377,526
8.b Professional & academic standards Fellowship support 77,067 - - 77,067 Corporate Patrons - - - - Accreditation - - - - Professional Committee 1,315 - - 1,315 Specialist & Regional Groups 51,808 - - 51,808 Direct staff costs 221,567 - - 221,567 Overheads recharged 230,296 - - 230,296 Sub-total: 582,053 - - 582,053		77,151 1,884 - 79,035 - - - - 1,762 - - 1,762 8,375 - - 8,375 146,590 - - 146,590 252,668 - - 252,668 209,847 - - 209,847
		696,393 1,884 - 698,277
8.c Scholarly publishing Book sales & distribution 217,336 - - 217,336 Lyell Collection 162,588 - - 162,588 GSL journals 231,122 - - 231,122 Non-GSL Journals 23,650 - - 23,650 Geoscientist 167,469 - - 167,469 GSW E-books 359 - - 359 Publishing House running costs 223,123 - - 223,123 Direct staff costs 874,204 - - 874,204 Overheads recharged 682,652 - - 682,652 Sub-total: 2,582,503 - - 2,582,503	217,336 - - 217,336 162,588 - - 162,588 231,122 - - 231,122 23,650 - - 23,650 167,469 - - 167,469 359 - - 359 223,123 - - 223,123 874,204 - - 874,204 682,652 - - 682,652	243,256 27,804 10,456 281,516 180,143 - - 180,143 213,871 - - 213,871 20,993 - - 20,993 167,105 - - 167,105 1,744 - - 1,744 357,529 - - 357,529 880,927 - - 880,927 613,363 - - 613,363
		2,678,931 27,804 10,456 2,717,191
8.d Library & Archives Library running costs 147,865 - - 147,865 Direct staff costs 293,001 - - 293,001 Overheads recharged 673,120 - - 673,120 Sub-total: 1,113,986 - - 1,113,986	147,865 - - 147,865 293,001 - - 293,001 673,120 - - 673,120	153,302 543 - 153,845 339,765 - - 339,765 622,828 - - 622,828
		1,115,895 543 - 1,116,438
Grand total: 5,359,917 26,504 1,511 5,387,932		5,832,068 64,558 12,806 5,909,432

39

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

9 Support, facilities and governance costs

The Society identifies three types of support cost relating to: facilities; support staff; and governance. Each is allocated to charitable activities on the bases set out below in methods of calculation adopted by the Society in 2015.

(i) Facilities overheads

Facilities costs are those relating to the running of the buildings occupied by the Society. Those used at Bath by the Publishing House are 100% attributable to Publishing activities and included in Publishing House running costs. The costs of Burlington House, however, are allocated across support and frontline services on the basis of space usage.

Analysis of Facilities overheads	2020 Total Costs £	2019 Total Costs £
Burlington House running & maintenance costs 622,986 Facilities manager staff cost 68,078 Grand total: 691,064	622,986 68,078	631,552 45,460
		677,012

Note: £131,632 of the above total in 2020 (2019: £128,955) is allocated to support staff and governance costs before being re-allocated as part of those costs.

(ii) Support staff overheads

These costs relate to the Society’s general management and administration functions that provide a support service across the whole organization. This includes both staff and non-staff expenditure for the following:

Analysis of Support overheads	2020 Total Costs £	2019 Total Costs £
Executive 325,942 Finance 412,402 HR Support 124,933 IT Support 436,545 Marketing - Other Projects 31,787 Restructuring Costs 141,454 Business Development 89,120 Grand total: 1,562,183	325,942 412,402 124,933 436,545 - 31,787 141,454 89,120	380,987 301,575 122,403 438,937 12,335 - - 80,725
		1,336,962

40

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

(iii) Govenance costs

These relate to the overview provided by the Trustees through Council and by independent audit scrutiny of the Society’s accounts. Governance costs are shared on the basis of total income for each activity, this being deemed to reflect the levels of scrutiny each is likely to require from both audit and Trustees.

reflect the levels of scrutiny each is likely to require from both audit and Trustees.
Analysis of Governance overheads	2020 Total Costs £	2019 Total Costs £
Audit fees 22,261 Annual report 849 Council elections 5,508 Trustees' expenses 1,651 Share of Facilities overhead recharged 43,646 Grand total: 73,915	22,261 849 5,508 1,651 43,646	50,987 6,580 5,469 13,509 41,293
		117,838

(iv) Allocation of overhead costs

Overhead costs are shown individually against activities in notes 7 and 8. The following table shows the reconciliation of total costs with the analysis above.

Overhead Allocation Charitable activities Science & education Professional & academic standards Scholarly publishing Library & archives Other activities Trading Investments	2020	2019
	Support Total Facilities Staff Governance Costs £ £ £ £	Support Total Facilities Staff Governance Costs £ £ £ £
	153,116 403,778 7,824 564,718 26,554 195,051 8,691 230,296 8,667 629,484 44,501 682,652 346,373 319,175 7,572 673,120 24,332 12,922 1,969 39,223 390 1,773 3,358 5,521	141,154 354,072 10,928 506,154 26,014 169,996 13,837 209,847 8,491 533,442 71,430 613,363 339,330 271,675 11,823 622,828 32,686 6,267 4,358 43,311 382 1,510 5,462 7,354
	559,432 1,562,183 73,915 2,195,530	548,057 1,336,962 117,838 2,002,857

The allocation to trading includes charges that are levied on the trading subsidiary (see Note 7.a) as well as charges on the Society’s charitable room-hire activities.

41

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

10 Trustees’ remuneration and expenses

None of the trustees have been paid any remuneration or received other benefits from an employment with the Society or related entity. Expenses claimed by trustees or met directly by the Society are to cover costs incurred whilst fulfilling their duties. These relate primarily to travel and accommodation.

their duties. These relate primarily to travel and accommodation.
Analysis of Trustees' expenses	2020 Totals	2019 Totals
Total value of expenses paid Total number of trustees paid	£ 1,651	£ 13,509
	11	24

11 Transactions with related parties

Given the impact of the pandemic, The Society elected not to recharge costs to its trading company, Geological Trading Limited. The charge was therefore £0 (2019: £14,145).

12 Staff costs and employee benefits

Total staff costs for the Society are set out below:

Analysis of Staff costs	2020 Total Costs £	2019 Total Costs £
Wages and salaries 2,080,447 Social security costs 226,532 Pension contributions 190,819 Redundancy Costs 141,454 Sub-total: 2,639,252 Temps & agency staff 258,984 Staff insurance 24,519 Recruitment costs 15,397 Sub-total: 298,900 Grand total: 2,938,152	2,080,447 226,532 190,819 141,454	2,147,736 215,495 186,767 -
		2,549,998
	258,984 24,519 15,397	219,026 18,101 11,306
		248,433
		2,798,431

Pension contributions represent employer payments made by the Society during the year into its group personal pension scheme. Contributions are paid at a rate of 10% of salary cost by the Society and 5% by employees.

The Society underwent a staff reduction programme in 2020 and made redundancy payments in line with statutory requirements, subject to a minimum payment level in situations where staff had short service periods.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

13 Staff numbers

Total staff numbers (full time equivalent) by activity for the reporting period were as follows:

Total staff numbers (full time equivalent) by activity for the reporting period were as follows:
Analysis of Staff numbers(average FTE equivalent headcount)	2020 Totals	2019 Totals
Charitable activities Science & education Professional & academic standards Scholarly publishing Library & archives Other activities Trading Investments Support Support staff Grand total:	10.5 3.9 19.4 6.1 0.2 0.1 9.2	10.8 4.7 16.9 6.5 0.5 0.1 9.1
	49.4	48.6

14 Remuneration of higher paid staff

Employees who received total payments in excess of £60,000 (excluding employer pension costs) for the reporting period fell into the following ranges:

----- Start of picture text -----
2020 2019
Number Number
£130,000 - £139,999 1 1
£90,000 - £99,999 1 1
£80,000 - £89,999 - 1
£70,000 - £79,999 1 -
£60,000 - £69,999 1 1
4 4
----- End of picture text -----

43

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

15 Remuneration of key management personnel

The total employee benefits of the 4 (2019:4) key management personnel during the year, which comprised salary and pension benefits, were £409,729 (2019: £412,837) and Employer’s National Insurance of £46,664 (2019: £48,315).

16 Intangible assets: website and systems development

Major redevelopment of the Society's website and business systems is capitalized at cost and amortized at a rate of 25% per annum with the expectation of a four-year life-cycle. This policy is reviewed and amended from time to time as is appropriate. Costs of running and maintaining the website are charged directly to income and expenditure accounts, together with amortization charges on the capitalized sum. IT Systems includes membership, finance and publishing systems. Implementation of the membership system based on the Microsoft Dynamics 365 platform, is being amortised over a 10-year period.

----- Start of picture text -----
Website IT Systems Total Intangible Assets
2020 2019 2020 2019 2020 2019
Analysis of Totals Totals Totals Totals Totals Totals
Intangible assets £ £ £ £ £ £
Cost or valuation brought forward: 211,405 211,405 894,412 894,412 1,105,817 1,105,817
- - - - - -
- Acquisitions in year:
- - - - - -
- Disposals in year:
- - - - - -
- Revaluations in year:
- Write Offs - - - - - -
- - - - - -
- Transfers in year:
Cost or valuation carried forward: 211,405 211,405 894,412 894,412 1,105,817 1,105,817
Cumulative amortization b/fwd: (204,017) (187,004) (227,717) (128,892) (431,734) (315,896)
- - - - - -
- Adjustments on disposal:
- Amortization charged: (3,611) (17,013) (105,620) (98,825) (109,231) (115,838)
- - - - - -
- Impairment provisions
- Write Offs - - - - - -
Cumulative amortization c/fwd: (207,628) (204,017) (333,337) (227,717) (540,965) (431,734)
Net book value brought forward: 7,388 24,401 666,695 765,520 674,083 789,921
Total movements in year: (3,611) (17,013) (105,620) (98,825) (109,231) (115,838)
Net book value carried forward: 3,777 7,388 561,075 666,695 564,852 674,083
----- End of picture text -----

44

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

17 Tangible assets

Tangible fixed assets are capitalized at cost and depreciated at the following rates calculated to write-off the value of each asset evenly over its expected useful life:

Leasehold property: 10% per annum Equipment, fixtures and fittings: 15% per annum Computer equipment: 25% per annum

Analysis of Tangible assets	Property	Property	Equipment	Equipment	Computers	Computers	Total Tangible Assets	Total Tangible Assets
	2020 Totals £	2019 Totals £	2020 Totals £	2019 Totals £	2020 Totals £	2019 Totals £	2020 Totals £	2019 Totals £
Cost or valuation brought forward: - Acquisitions in year: - Disposals in year: - Revaluations in year: - Write Offs - Transfers in year: Cost or valuation carried forward: Cumulative depreciation b/fwd: - Adjustments on disposal/write-off: - Depreciation charged: - Impairment provisions - Transfers: Cumulative depreciation c/fwd: Net book value brought forward: Total movements in year: Net book value carried forward:	1,551,051 - - - (47,560) -	1,497,600 53,451 - - - -	853,015 - - - - -	840,280 12,735 - - - -	1,944,845 16,273 - - - -	1,932,379 12,466 - - - -	4,348,911 16,273 - - (47,560) -	4,270,259 78,652 - - - -
	1,503,491	1,551,051	853,015	853,015	1,961,118	1,944,845	4,317,624	4,348,911
	(1,153,713) - (33,496) - -	(1,119,595) - (34,118) - -	(775,490) - (24,630) - -	(744,965) - (30,525) - -	(1,876,720) - (31,649) - -	(1,841,131) - (35,589) - -	(3,805,923) - (89,775) - -	(3,705,691) - (100,232) - -
	(1,187,209)	(1,153,713)	(800,120)	(775,490)	(1,908,369)	(1,876,720)	(3,895,698)	(3,805,923)
	397,338 (81,056)	378,005 19,333	77,525 (24,630)	95,315 (17,790)	68,125 (15,376)	91,248 (23,123)	542,988 (121,062)	564,568 (21,580)
	316,282	397,338	52,895	77,525	52,749	68,125	421,926	542,988

18 Heritage assets

The Society classifies the following assets as Heritage Assets within the terms defined by the Charities SORP 2019:

(i) the Library (collection of books, maps and journals); and

(ii) portraits, busts, historical furniture and the Society’s Royal Charter.

The Society's Heritage Assets are held in order to provide a single archive of geological knowledge for the benefit of future generations. Economic benefit is not derived through trade or investment for future trade but through the membership fees individuals and corporate bodies are prepared to pay in order to access this material for research and reference purposes. The duration of scientific currency, which drives this model, varies from item to item but diminishes over time. Even allowing for geological texts having a longer shelf-life than those of other sciences, it is estimated that this period does not exceed 20 years.

The Society's policy on the valuation of Heritage Assets, therefore, is to report capital value on the Balance Sheet at cost value, where known, and to depreciate assets over 20 years through a charge to income and expenditure.

The Society only disposes of heritage assets in the event that there is a duplicate surplus to requirements or if an asset has reached the end of its useful life and does not warrant preservation. Library holdings, portraits and busts

45

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

acquired prior to 2001 are not shown in the balance sheet as their cost value is unknown and alternative forms of valuation would not reliably reflect the economic value at a reasonable cost.

Analysis of Heritage assets	Heritage Assets	Heritage Assets
	2020 Totals £	2019 Totals £
Cost or valuation brought forward: - Acquisitions in year: - Disposals in year: - Revaluations in year: - Transfers in year: Cost or valuation carried forward: Cumulative depreciation brought forward: - Adjustments on disposal: - Depreciation charged: - Impairment provisions - Transfers: Cumulative depreciation carried forward: Net book value brought forward: Total movements in year: Net book value carried forward:	2,275,995 171,357 - - -	2,104,301 171,694 - - -
	2,447,352	2,275,995
	(1,017,999) - (122,563) - -	(904,199) - (113,800) - -
	(1,140,562)	(1,017,999)
	1,257,996 48,794
		1,200,102 57,894
	1,306,790	1,257,996

Analysis of Net Book Value by class of assets	2020 Totals £	2019 Totals £
(i) General holdings (ii) Books (iii) Bindings (iv) Maps (v) Periodicals Grand total:	0 31,952 55,294 25,856 1,193,688	4,000 35,258 61,238 29,213 1,128,287
	1,306,790	1,257,996

The Charities SORP 2019 requires that the Society provide a 5-year summary of Heritage Asset transactions. This is set out below:

Five-year summary of Heritage asset transactions	2016 2017 2018 2019 2020 £ £ £ £ £
Cost of acquisition: (i) General holdings (ii) Books (iii) Bindings (iv) Maps (v) Periodicals	- - - - - 4,766 3,119 3,934 615 809 6,148 6,585 6,713 6,609 - 6,072 699 2,002 1,320 - 153,151 135,570 151,998 163,150 170,548
	170,137 145,973 164,647 171,694 171,357

46

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

In none of the years shown were there any donated assets, disposals or impairments, the value of which is required to be disclosed. Assets are reviewed on an annual basis for any impairments in value other than depreciation already accounted for.

19 Fixed asset investments

Fixed asset investments include equities and bonds held by the Society to generate income, together with any associated portfolio cash. Investments are stated at cost value when purchased and at market value (being the bid price value of the asset), as advised by the Society's Investment Managers, on the last trading day before the year end. Only those investments that are held to generate long-term income and capital growth are shown within fixed assets; those purchased as part of treasury management, which are intended to be held for less than one year, are shown as current assets. Any unrealized and realized gains arising from fixed asset investments are taken to the fund for which the investments are held and shown at the appropriate point on the Statement of Financial Activities.

Income earned by invested funds and charges levied are apportioned across funds on the basis of share of total capital. As at the end of the current and previous reporting years, funds are invested as set out in the following tables. Investment income, management and other charges are further analysed in notes 5 and 7b to the Financial Statements.

Summary of Fixed asset investment totals	2020 Total £	2019 Total £
Listed and traded investments Portfolio cash Grand total:	7,029,972 180,686	6,530,135 118,572
	7,210,658	6,648,707

Movements in invested funds are set out in the following notes.

Analysis of Fixed asset investments	Listed & Traded	Listed & Traded	Portfolio Cash	Portfolio Cash
	2020 Totals £	2019 Totals £	2020 Totals £	2019 Totals £
Market valuation brought forward: - Purchases in year at cost: - Sales in year at cost: - Changes in market value of assets: - Foreign Exchange movements - Other charges and adjustments: Market valuation carried forward:	6,530,135 2,122,722 (2,225,905) 620,059 (2,704) (14,335)	5,763,243 5,207,003 (4,808,161) 426,407 (10,765) (47,592)	118,572 (2,122,722) 2,225,905 29,808 (21,581) (49,296)	145,363 (5,207,003) 4,808,161 313,694 - 58,357
	7,029,972	6,530,135	180,686	118,572

47

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

FRS 102 requires that material amounts held within investment classes must be individually identified. The table below sets out all individual holdings with a market valuation of £150,000 or greater as at 31 December 2020:

FRS 102 requires that material amounts held within investment classes must be individually identified. The table below sets out all individual holdings with a market valuation of £150,000 or greater as at 31 December 2020:	FRS 102 requires that material amounts held within investment classes must be individually identified. The table below sets out all individual holdings with a market valuation of £150,000 or greater as at 31 December 2020:
Market value Analysis of at 31 Dec 2020 Significant investments held £
Bonds:- SARASIN RESPONSIBLE CORPORATE BOND - I INC Property & Other funds:- ASML HOLDING NV ORSTED A/S MICROSOFT CORP NEXTERA ENERGY INC TAIWAN SEMICONDUCTOR-SP ADR MAYFAIR CAPITAL PROPERTY INCOME TRUST CHARITIES GBP THE CHARITIES PROPERTY FUND	582,526
	582,526
	176,855 185,718 167,413 156,288 177,071 165,138 416,974
	1,445,457

20 Other gains/(losses) in year

The Society maintains US Dollar bank accounts which are accounted for in these statements at equivalent Sterling value. A strengthening of the Pound against the US Dollar resulted in unrealised losses during the year that were somewhat mitigated by the sale of some dollars during the year as exchange rate conditions allowed.

Total value of US Dollar cash at bank included in balance sheet: Foreign currency exchange rate gains/(losses) in year:	2020 2019 £ £ 549,726 1,287,913
	(866) (46,014)

21 Stocks

The Society holds stocks of scientific publications produced by its Publishing House. These are shown in the balance sheet at the lower of cost and net realizable value, less an impairment provision of 4% per month which is charged from the thirteenth month after publication to reflect a decline in value due to age. When stock is sold the costs of sale are transferred to income and expenditure accounts, together with any reversal of impairment charged, to offset sale income.

Income and expenditure relating to unpublished works is recorded as Work In Progress and transferred to stock at cost value on the date of publication. Production schedules vary year on year and this is reflected in variations in value between total finished stock and total Work In Progress.

In addition to its own publications, the Society also buys in and sells on a small stock of third-party published books, also of a geological nature.

48

THE GEOLOGICAL SOCIETY OF LONDON

Annual report and financial statements for the year ended 31 December 2020

2020 2019 Analysis of Total Total Stock £ £ Geological Society finished stock: 240,196 191,019 Geological Society Work In Progress: 49,860 45,047 Third-party sale stock: 3,579 7,371 Total: 293,635 243,437 Total finished stock: 243,775 198,390 Total work in progress: 49,860 45,047 Total: 293,635 243,437	2020 2019 Analysis of Total Total Stock £ £ Geological Society finished stock: 240,196 191,019 Geological Society Work In Progress: 49,860 45,047 Third-party sale stock: 3,579 7,371 Total: 293,635 243,437 Total finished stock: 243,775 198,390 Total work in progress: 49,860 45,047 Total: 293,635 243,437	2020 2019 Analysis of Total Total Stock £ £ Geological Society finished stock: 240,196 191,019 Geological Society Work In Progress: 49,860 45,047 Third-party sale stock: 3,579 7,371 Total: 293,635 243,437 Total finished stock: 243,775 198,390 Total work in progress: 49,860 45,047 Total: 293,635 243,437	2020 2019 Analysis of Total Total Stock £ £ Geological Society finished stock: 240,196 191,019 Geological Society Work In Progress: 49,860 45,047 Third-party sale stock: 3,579 7,371 Total: 293,635 243,437 Total finished stock: 243,775 198,390 Total work in progress: 49,860 45,047 Total: 293,635 243,437
	Analysis of Stock	2020 Total £	2019 Total £
	Geological Society finished stock: Geological Society Work In Progress: Third-party sale stock: Total: Total finished stock: Total work in progress: Total:	240,196 49,860 3,579	191,019 45,047 7,371
		293,635	243,437
		243,775 49,860	198,390 45,047
		293,635	243,437

22 Debtors

Debtors include amounts owed to the Society for the provision of goods and services and amounts paid in advance by the Society for goods and services it will receive. Debt is measured at its anticipated recoverable amount, in accordance with the Charities SORP 2019. Debt over 12 months old is provided for in full and written off when adjudged unrecoverable. Where this provision is adjusted year on year, the charge or credit is taken to the Statement of Financial Activities.

Analysis of Debtors	Group	Group	Charity	Charity
	2020 Total £	2019 Total £	2020 Total £	2019 Total £
Amounts falling due within one year Trade debtors: Group and associated undertakings: Prepayments and accrued income: Other debtors: Grand total:	50,751 - 262,631 20,001	123,090 - 154,536 34,898	42,969 30,975 262,631 20,001	96,559 98,840 154,536 34,898
	333,383	312,524	356,576	384,833

23 Current asset investments

Current asset investments are those balances held by the Society for investment purposes, but which have a maturity date of less than a year. This is a separate portfolio from the Society's long-term investments (set out in note 19), and consists primarily of balances from its current accounts invested on a short-term basis in order to maximize returns on balances held. Current asset investments are shown at Sterling cash value as advised by the Society's bankers on the last day of the financial year.

Analysis of Current asset investments	2020 Total £	2019 Total £
Money market account: Grand total:	498,826	1,231,618
	498,826	1,231,618

49

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

24 Creditors

Creditors includes those amounts that the Society owes in payment for goods and services received, as well as advance payments received by the Society for goods or services that it is yet to provide. In both cases the settlement date falls within one year and value is measured at anticipated settlement amount, in accordance with the Charities SORP 2019. There are no amounts falling due to creditors after one year.

Analysis of Creditors	Group	Group	Charity	Charity
	2020 Total £	2019 Total £	2020 Total £	2019 Total £
Amounts falling due within one year Trade creditors: Group and associated undertakings: Accruals: Deferred income: Taxation and social security: Other creditors: Grand total:	(215,206) - (362,379) (1,833,795) (47,295) (75,880)	(207,974) - (184,841) (2,250,350) (57,557) (48,943)	(215,206) (1,322) (362,379) (1,833,795) (47,295) (75,880)	(205,776) (559) (184,841) (2,250,350) (56,654) (48,943)
	(2,534,555)	(2,749,665)	(2,535,877)	(2,747,123)

Movement in Deferred income	Group	Charity
	2020 Total £	2020 Total £
Balance B/F Amount Released to Income during the year Amount deferred in the year Balance C/F	(2,250,350) 2,250,350 (1,833,795)	(2,250,350) 2,250,350 (1,833,795)
	(1,833,795)	(1,833,795)

50

THE GEOLOGICAL SOCIETY OF LONDON

Annual report and financial statements for the year ended 31 December 2020

25 Financial instruments

Analysis of Financial Instruments	Group	Group	Charity	Charity
	2020 Total £	2019 Total £	2020 Total £	2019 Total £
Carrying amount of financial assets Equity instruments measured at cost less impairment Debt instruments measured at amortized cost being: - Trade debtors Group undertakings Prepayments and accrued income _Less_prepayments and accrued income Other debtors Total carrying amount of financial assets Carrying amount of financial liabilities Liability instruments measured at amortized cost	7,029,972	6,530,135	7,029,972	6,530,135
	70,752	157,988	62,970	230,297
	50,751 - 262,631 (262,631) 20,001	123,090 - 154,536 (154,536) 34,898	42,969 - 262,631 (262,631) 20,001	96,559 98,840 154,536 (154,536) 34,898
	7,100,724	6,688,123	7,092,942	6,760,432
	338,381	314,474	339,703	311,932
being: - Trade creditors Group undertakings Accruals and deferred income _Less_accruals and deferred income Taxation and social security Other creditors	215,206 - 2,196,174 (2,196,174) 47,295 75,880	207,974 - 2,435,191 (2,435,191) 57,557 48,943	215,206 1,322 2,196,174 (2,196,174) 47,295 75,880	205,776 559 2,435,191 (2,435,191) 56,654 48,943

26 Funds summary

The Society's funds are set out in notes 27 to 29 and summarized by type in the following tables:

Summary of Funds	Unrestricted	Unrestricted	Restricted	Restricted	Endowment	Endowment	Total Funds	Total Funds
	2020 Total £	2019 Total £	2020 Total £	2019 Total £	2020 Total £	2019 Total £	2020 Total £	2019 Total £
Balance brought forward: Income in year: Expenditure in year: Transfers in year: Corporation Tax Gains and losses: Balance carried forward:	6,996,026 5,273,418 (5,469,514) - - 434,673	7,095,403 5,567,148 (6,068,252) (7,012) (903) 409,642	837,016 29,852 (30,016) - - 44,676	823,843 16,619 (65,211) 7,012 - 54,753	2,139,064 - (14,846) - - 169,652	1,924,918 - (15,546) - - 229,692	9,972,106 5,303,270 (5,514,376) - - 649,001	9,844,164 5,583,767 (6,149,009) - (903) 694,087
	7,234,603	6,996,026	881,528	837,016	2,293,870	2,139,064	10,410,001	9,972,106

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

27 Unrestricted funds

The Society holds the following unrestricted funds:

General funds: -

a. General Fund

The Society's General Fund consists of balances of unrestricted income not otherwise allocated to specific or designated funds.

b. Albert & Dennis Curry Funds

Funds arising from donations made by Dennis Curry. In keeping with the origin of the income, these funds are applied from time to time in support of technology and IT development activity.

c. Stephen John Mills Fund

Money was left to the Society without any restriction on use by the estate of Mr Stephen John Mills.

d. Coke Fund

A fund established under the will of Lt Col Basil Elmsley Coke in memory of his cousin's sons, Maj John Sacheverell A'Deane Coke and Maj Edward D'Ewes Fitzgerald Coke, both of whom were killed in action in 1944.

Designated funds: -

e. Constituted Specialist and Regional Groups

The Society allocates a proportion of its income to its Constituted Specialist and Regional Groups. These groups also raise their own funds through course fees, publications and other sundry income. The Trustees have agreed that any accumulated reserves in respect of Groups should be designated as Group Funds. These are held as cash and shortterm investments.

f. Burlington House Buildings Fund

This fund was created to provide against future costs chargeable to the Society under the terms of its lease for the occupancy of Burlington House, a Grade II* listed building. From time to time the landlord will carry out major repairs to the fabric of the building and notify the tenants of charges due. The fund is also used for the ongoing upkeep and refurbishment of the internal apartments, which must likewise be maintained to a standard befitting that of a heritage building. In February 2015 Council agreed to set aside additional funds, drawn initially from part of any surplus in the 2014 accounts, to offset likely costs arising from lease renewal in 2015, including legal expenses and associated costs. This has continued in subsequent years and it is anticipated that this fund will be utilised in the event of any move from Burlington House.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

g. Other Designated Funds

Consolidated Analysis of Unrestricted income funds	Balance Balance B/fwd Income Expenditure Transfers Gains C/fwd £ £ £ £ £ £
General funds - a. General Fund 37,374 5,182,728 (5,434,809) - 7,541 (207,166) b. Curry Funds 3,073,438 53,754 (19,384) - 253,220 3,361,028 c. Mills Fund 280,818 4,911 (1,772) - 23,137 307,094 d. Coke Fund 1,802,545 31,526 (13,369) - 148,512 1,969,214 e. Other General Funds 48,323 - - - - 48,323 Sub-total: 5,242,498 5,272,919 (5,469,334) - 432,410 5,478,493 Designated funds - f. Constituted groups 136,320 499 (180) - 2,263 138,902 g. Buildings Fund 1,617,208 - - - - 1,617,208 Sub-total: 1,753,528 499 (180) - 2,263 1,756,110 Grand Total: 6,996,026 5,273,418 (5,469,514) - 434,673 7,234,603	37,374 5,182,728 (5,434,809) - 7,541 (207,166) 3,073,438 53,754 (19,384) - 253,220 3,361,028 280,818 4,911 (1,772) - 23,137 307,094 1,802,545 31,526 (13,369) - 148,512 1,969,214 48,323 - - - - 48,323
	5,242,498 5,272,919 (5,469,334) - 432,410 5,478,493
	136,320 499 (180) - 2,263 138,902 1,617,208 - - - - 1,617,208
	1,753,528 499 (180) - 2,263 1,756,110
Charity Only Analysis of Unrestricted income funds	Balance Balance B/fwd Income Expenditure Transfers Gains C/fwd £ £ £ £ £ £
General funds - a. General Fund 984 5,212,151 (5,434,106) - 7,541 (213,430) b. Curry Funds 3,073,438 53,754 (19,384) - 253,220 3,361,028 c. Mills Fund 280,818 4,911 (1,772) - 23,137 307,094 d. Coke Fund 1,802,545 31,526 (13,369) - 148,512 1,969,214 e. Other General Funds 48,323 - - - - 48,323 Sub-total: 5,206,108 5,302,342 (5,468,631) - 432,410 5,472,229 Designated funds - f. Constituted groups 136,320 499 (180) - 2,263 138,902 g. Buildings Fund 1,617,208 - - - - 1,617,208 Sub-total: 1,753,528 499 (180) - 2,263 1,756,110 Grand Total: 6,959,636 5,302,841 (5,468,811) - 434,673 7,228,339	984 5,212,151 (5,434,106) - 7,541 (213,430) 3,073,438 53,754 (19,384) - 253,220 3,361,028 280,818 4,911 (1,772) - 23,137 307,094 1,802,545 31,526 (13,369) - 148,512 1,969,214 48,323 - - - - 48,323
	5,206,108 5,302,342 (5,468,631) - 432,410 5,472,229
	136,320 499 (180) - 2,263 138,902 1,617,208 - - - - 1,617,208
	1,753,528 499 (180) - 2,263 1,756,110

28 Restricted income funds

The Society holds the following restricted income funds:

a. Henry Woods Fund

Established in 1955 to fund those memoirs deemed too long to be included as part of the Quarterly Journal of the Geological Society. In 1960 the Society began its Special Publications series with the purpose of providing this facility. For at least 10 years prior to 2016, however, this fund had not been used to support those publications. As a result of the 2016 Review of Funds, therefore, Council have agreed that this fund will continue to contribute towards the costs of Special Publications.

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

b. Alan and Charlotte Welch Fund

This fund was created as the result of a legacy from Mr Alan and Mrs Charlotte Welch. The purpose of this legacy is to fund geological research. Although the fund remained untouched for a number of years, following the 2016 Review of Funds it is planned to use it to contribute towards the Society's increased Research Grants scheme, as well as in supporting those conferences and publications that encourage geological research.

c. Other Restricted Income Funds

In addition to the two larger funds described above, the Society has 26 other Restricted Income Funds, each with individual balances of less than £100,000 as at the end of the financial year. The main purpose of these funds is the financing of awards and medals.

Analysis of Restricted income funds	Balance Balance B/fwd Income Expenditure Transfers Gains C/fwd £ £ £ £ £ £
a. Henry Woods Fund 208,051 4,572 (1,649) - 20,731 231,705 b. Alan & Charlotte Welch Fund 261,388 3,639 (6,022) - 16,501 275,506 c. Other Restricted Income Funds 367,577 21,641 (22,345) - 7,444 374,317 Grand Total: 837,016 29,852 (30,016) - 44,676 881,528	208,051 4,572 (1,649) - 20,731 231,705 261,388 3,639 (6,022) - 16,501 275,506 367,577 21,641 (22,345) - 7,444 374,317

29 Endowment funds

The Society holds two expendable endowment funds, summarized as follows:

a. Fermor fund

The Fermor Fund is an expendable endowment to further research into the principles governing ore deposition, the occurrence of minerals and of mineral-bearing rocks, and fundamental research into the origins of Pre-Cambrian rocks, including extra-terrestrial occurrence. At present the majority of this fund is invested, although amounts are also drawn down each year against the publication costs of books and journals that satisfy the terms of this fund.

b. Robert Scott

In 2013 the Society received an expendable endowment from the Cambridge Arctic Shelf Programme (CASP) in memory of Mr Robert Scott to be used to fund field work within the Arctic Circle.

memory of Mr Robert Scott to be used to fund field	work within the Arctic Circle.
Analysis of Endowment funds	Balance Balance B/fwd Income Expenditure Transfers Gains C/fwd £ £ £ £ £ £
a. Fermor 2,077,092 - (13,101) - 164,736 2,228,727 b. Robert Scott 61,972 - (1,745) - 4,916 65,143 Grand Total: 2,139,064 - (14,846) - 169,652 2,293,870	2,077,092 - (13,101) - 164,736 2,228,727 61,972 - (1,745) - 4,916 65,143

54

THE GEOLOGICAL SOCIETY OF LONDON

Annual report and financial statements for the year ended 31 December 2020

30 Summary of net assets by funds category

Summary of Net assets by funds category	2020 Total £	2019 Total £
Unrestricted funds Fixed assets Investments Net current assets Sub-total: Restricted funds Fixed assets Investments Net current assets Sub-total: Endowment funds Fixed assets Investments Net current assets Sub-total: Grand Total:	2,168,669 4,740,256 325,678	2,335,630 3,959,419 700,977
	7,234,603	6,996,026
	124,899 514,945 241,684	139,437 517,656 179,923
	881,528	837,016
	- 1,955,457 338,413	- 2,171,632 (32,568)
	2,293,870	2,139,064
	10,410,001	9,972,106

31 Reserves

Free reserves are calculated according to the Charities SORP 2019 as the total of unrestricted funds, excluding any investments and net current assets in designated funds or other commitments of funds not provided in the accounts or held as fixed assets.

Calculation of Free reserves	2020 Total £	2019 Total £
Investments held in unrestricted funds Net current assets held in unrestricted funds Less investments and assets held in designated funds adjusted for deferred income Free Reserves:	4,740,256 1,405,407	3,959,419 1,798,087
	6,145,663 (1,756,110)	5,757,506 (1,753,528)
	4,389,553	4,003,978

In 2016 Council set a free reserves target equivalent to 75% of annual core operational expenditure (i.e. 9 months), within a range of tolerance of +/- 20% of target. In practical terms, this sets the free reserves target at no lower than 60% of core operational expenditure, which is defined as the sum expended on charitable activities during the year, as reported on the Statement of Financial Activities.

Calculation of Free reserves achieved against target	2020 Total £	2019 Total £
Free reserves as calculated above: Total core operational expenditure for year: 75% of core operational expenditure for year (Reserves Target): Free Reserves expressed as apercentage of Core Operational Expenditure:	4,389,553 5,387,274 4,040,456	4,003,978 5,909,432 4,432,074
	81.5%	67.8%

55

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2020

32 Geological Trading Limited

Geological Trading Limited, registered in England as Company Number 3522033, is a wholly-owned trading subsidiary of the Geological Society of London, offering room hire and catering services. The company's results are consolidated into this statement of accounts on a line by line basis and are summarized as follows:

Geological Trading Limited Summary balance sheet	2020 Total £	2019 Total £
Assets - debtors: - cash at bank and in hand: Liabilities - creditors falling due within one year: Total net assets or liabilities: Funds - retained profit / (losses): - share capital: Total funds:	7,784 27,949 (30,977)	27,090 111,245 (101,942)
	4,756	36,393
	4,754 2	36,391 2
	4,756	36,393

Share capital consists of 2 ordinary shares, each of £1, allotted and fully called-up.

Geological Trading Limited Summary statement of income, expenditure and retained earnings	2020 Total £	2019 Total £
Turnover: Cost of sales: Administrative expenses: Operating profit before taxation Tax liability Charitable donation to parent Retained profit for financial year Funds brought forward Funds carried forward	2,874 - (2,214)	64,542 (31,134) (868)
	660 - (32,297)	32,540 (903) -
	(31,637) 31,637	31,637 -
	-	31,637

33 Reconciliation of net income to net cash flow from operating activities

Reconciliation of Net income to net cash flow from operating activities	2020 Total £	2019 Total £
Net income for the reporting period as per Statement of Financial Activities: -788823 Adjusted for - Depreciation charges: 322866 (Gains) / losses on investments: -427473 (Profit)/Loss on disposal of fixed assets Dividends and interest from investments: -227702 (increase) in stocks: (50,198) (increase) in debtors: (20,859) (decrease) in creditors: (215,110) Net cashprovided by operating activities:	438,761 321,569 (649,867) 47,560 (141,622) (50,198) (20,859) (215,110)	174,859 329,870 (740,101) - (228,115) 48,603
		(24,634) (330,923)
	(269,766)	(770,441)

56

THE GEOLOGICAL SOCIETY OF LONDON

Annual report and financial statements for the year ended 31 December 2020

34 Analysis of cash and cash equivalents

Analysis of Cash and cash equivalents	2020 Total £	2019 Total £
Cash in hand: Notice deposits (less than 3 months): Total cash and cash equivalents:	2,314,486 498,826	1,810,418 1,231,618
	2,813,312	3,042,036

Analysis of changes in net debt	Balance Other non-cash Balance B/fwd Cashflows changes C/fwd
Cash and cash equivalents Cash Cash equivalents Borrowings Total	£ £ £ £ 3,042,036 (228,724) - 2,813,312 - - - -
	3,042,036 (228,724) - 2,813,312 - - - -
	3,042,036 (228,724) - 2,813,312

35 Operating Lease Commitments

Operating Lease Commitments	2020 Total £	2019 Total £
Payments due: Not later than one year Later than one year and not later than five years Later than five years Total operating lease commitments:	11,711 18,747 -	11,711 30,188 -
	30,458	41,899

36 Taxation

Taxation	2020 Total £	2019 Total £
The tax charge on the profit for the period was as follows: UK Corporation Tax at 19% Tax on Profit This is tax on GTL profit arising from 2018	-	903
	-	903

37 Related Party Transactions

During 2020, a director of GTL, Dr Iain Bartholomew, donated £20k to GSL for the purpose of supporting the Society’s building appeal.

57