2022-12-31-accounts - The Geological Society Of London

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THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

REPORT AND FINANCIAL STATEMENTS

Year ended 31 December 2022

The Geological Society of London

Registered Charity Number 210161 FT V4.55 – 23 Apr

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

Report of the trustees ........................................................................................................................................3 1.1 Objectives and activities .............................................................................................................................3 1.2 Achievements and performance .................................................................................................................5 1.3 Financial review ..........................................................................................................................................7 1.4 Plans for future periods ............................................................................................................................. 12 1.5 Structure, governance and management .................................................................................................. 13 1.6 Reference and administrative details ........................................................................................................ 17 2. Reports of the President, Treasurer and Executive Secretary ........................................................................ 19 3. Responsibilities of the trustees ........................................................................................................................ 23 4. Independent auditor’s report to the Council of the Geological Society of London ........................................... 25 6. Balance Sheet as at 31 December 2022 ......................................................................................................... 31 7. Consolidated Cash Flow Statement for the year ended 31 December 2022 ................................................... 32 8. Notes forming part of the Financial Statements .............................................................................................. 33

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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 Object 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 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.

1.1.2 Strategies for achieving stated aims

Council agreed new strategic objectives in 2020, building on the 2017 strategy work. These objectives are to:

Advance multidisciplinary Earth science to inform global issues
Be the inclusive and collaborative home for UK Earth scientists and increase our international orientation
Support professional development, careers, and education in Earth science
Become a dynamic and responsive organisation with a strong digital identity

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

The Society’s vision:

We aim to be an inclusive and thriving Earth science community advancing knowledge, addressing global challenges, and inspiring future generations.

The Society’s purpose:

We exist to support Earth scientists, grow interest in the natural world, and connect science, the profession and society.

The Society’s mission:

We do this to advance and share knowledge of planet Earth and beyond for the benefit of humanity.

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; funding of scientific research projects; 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.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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.

1.2 Achievements and performance

1.2.1 Overall achievements and performance

2022 was a year of changes for the Geological Society and saw us embrace hybrid working for the long term, opening Burlington House for both face-to-face events and for Fellows to use again whilst continuing a variety of online or hybrid events to maintain an extended reach across the UK, and beyond. We conducted virtual geological tours of regions across the globe via media using our Map Collection and delivered a host of new training courses entirely online to support the continuing professional development of our Fellows and Chartered Geologists.

The Society’s significant achievements against its objectives in 2022 are set out as follows.

1.2.2 Science and education

In April 2022 the society held its first discussion meeting under the strategic scientific themes, ‘What does Geoscience need to do now for a sustainable transition to net zero? This hybrid event was the culmination of 3 earlier smaller webinars held under the societies Energy Transition theme in 2021 which aims were to bring together geoscientists, the energy transition communities, and policymakers, with the purpose of assessing the on-going directions and priority roles for the geosciences in the Energy Transition. There was sufficient material for two full day sessions and the themes covered Mining & metals for the low C economy, Responsible resource stewardship, What does geoscience need to do to enable a just transition? Energy Systems: Decarbonisation & Waste Energy Systems: Powering the transition. It also tackled what a just transition means in the context of the Geosciences, and skills required to achieve the transition. The event both teased out and integrated geoscience, policy, sustainable development, and the Energy Transition. In doing so, it identified new opportunities for Geoscience research, development, and impact, and explored what the Geosciences need to do now for a sustainable transition.

2023 will see our first conference under our Climate & Ecology theme and the launch of our Public Lecture series to introduce the strategic scientific themes.

Other event highlights from 2022 include: Asian Climates, Tectonics and Biodiversity, a 3-day international, hybrid conference in September with over 60 participants worldwide covering Asian, Tectonics and Biodiversity with a variety of approaches bridging Earth and Life sciences. This conference is at the review stage to be turned into a Special Publication in 2023.

Careers Days were held for the second time virtually in 2022 and included a specialist session for GCSE and A Level stage students which was projected into classrooms. The programme was designed to complement the societies’

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

strategic scientific themes and we welcomed over 120 students. Looking ahead we are keen to return to in-person for this event with a smaller virtual element in tandem planned for November 2023.

1.2.3 Professional and academic standards

Total 2022 membership was 11,577 (2021: 11,620) across all categories. This was a positive outturn considering the continued impact of the Covid pandemic. The Society’s Fellow grade membership (as measured at mid-2022) was 11,066 (2021: 11,034) with its Candidate and Junior grade membership at 511 (2021: 586). The number of Chartered Geologists stood at 2,758 (2021: 2,749).

In 2021, the Society concluded the review of its membership categories and received consent from the Fellowship to implement the changes from 2022.

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. Our work is underpinned by our focus on excellent customer service to all our communities and strong collaboration with our partners. A major improvement to user experience was made through 2022 with the successful migration of the Lyell Collection to a new, future-focused platform. This also supported the launch of a new journal, Geoenergy, in partnership with the European Association of Geoscientists and Engineers (EAGE).

The Society continues to proactively adapt to an increasingly Open Access publishing landscape by adopting sustainable models such as transformative read and publish agreements and by achieving ‘Transformative Journal’ status for the Society’s owned journals. Both ensure that researchers with Open Access mandates can continue to publish with the Society in a compliant manner.

1.2.5 Library and archives

The year began, as it did in 2021, with the library closed to visitors. It reopened in February and went on to enjoy a four-fold increase in visits compared with the previous year.

Online resources showed strong growth with over 71,500 full-text downloads, whilst a new online training programme was developed, and there was a strong archives fundraising campaign which, to date, has raised over £25,000, with more donations in the pipeline.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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 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 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 2022 were £9,802,007 (2021: £10,736,621). Funds are split between the three categories defined above as follows:

Fund Type	2022(£000)	2021(£000)
Unrestricted	6,863	7,369
Restricted	851	930
Endowment	2,088	2,437
	9,802	10,736

Unrestricted funds are used to support 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 £6.9m of the Society’s funds are placed in an investment portfolio and are subject to wider market variations. In 2022 the Society’s income was £5.1m (2021: £4.87m), whilst expenditure including asset depreciation and impairments was £5.15m (2021: £5.28m). Investment losses from the portfolio were £0.9m (2021: investment gain of £0.71m) resulting in net decrease in fund movement for the year of £0.942m (2021: fund gain of £0.33m). 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.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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

----- Start of picture text -----
Current
Fixed Assets Assets Liabilities
£8.804m £4.398m £3.401m
----- End of picture text -----

Principal sources of funding

Total consolidated income, excluding gains and losses from investments and foreign exchange, was £5.1m in the year ending 31 December 2022 (2021: £4.87m). The Society’s principal sources of funding remain closely linked to its charitable activities and these are set out below.

s and these are set out below.
Donations and legacies Events (Science & education) Membership Fees (Professional & academic standards) Publishing Library Trading Investments Other Income	2022 £000 60 231 2,099 2,488 7 101 131 5 5,122	2021 £000 55 248 1,935 2,454 5 24 127 19
		4,867

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

Expenditure of funds

Costs were closely controlled by budget holders in the year resulting in a reduction from the previous year to £5.16m (2021: £5.28m) including depreciation (£0.21m), with a deficit of income over expenditure of £0.03m (2021: £0.41m). It should be noted, included within the 2021 expenditure total was a write off of the value of the Society’s Customer Relationship Management (CRM) system of £490k. Unrealised losses in the year from movements in the value of investments and both realised and unrealised currency differences resulted in a decrease in funds for 2022 of £1.06m (2021: increase of £0.33m). 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 2022 2021 £000 £000 Trading £57 £58 Investments £62 £59 Science £1,082 £1,095 Professional £845 £721 Publishing £2,459 £2,698 Library £650 £646 £5,155 £5,277	Analysis of Expenditure: by type 2022 £000 Charitable Activity £3,087 Trading £57 Investment £62 Support £1,949 £5,155	2021 £000 £2,779 £58 £59 £2,381
		£5,277

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.

As previously reported, the Society has 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 prioritising 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 value of the investment portfolio was £6.9m at the end of 2022 (2021: £7.9m), and it is 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

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

activities of the Society. To achieve this, professional advisors are set performance targets against which the Investment Committee (IC) measures performance. Investment income in 2022 was £131k (2021: £127k).

Investment management charges comprise the advisor’s annual fees (proportional to the value of the portfolio) 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 £62k in 2022 and £59k in 2021.

Investment valuations are further explained in note 19 together with a list of the Society’s top 20 investments by value as of the end of 2022.

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.

In 2022, the trading company saw an increase in activity through room hire and booking following the 2021 downturn due to the effects of the Covid pandemic. The limited trading activity provided income of £86.5k (2021: £7.4k). Net profit for the year is £65.7k (2021: £6.6k). The Board entered into a Deed of Covenant during 2019 whereby profits generated by GTL are donated to the Society. The 2022 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 always behave reasonably. 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 free reserves sufficient to cover unforeseen near-term reductions in income or increases in expenditure. The level of contingency is set annually by Council after detailed consideration by and a recommendation from the Financial & Planning Committee. In determining the level, future income and expenditure is assessed for reliability and commitment respectively. In addition, future capital expenditure, other commitments and contingency are considered. The minimum free reserve requirement, having considered the above noted elements, is assessed to be £2.37m as at 31 December 2022.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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 2022 free reserves stood at £4.4m (2021: £5.3m) which is in excess of assessed requirements. Note the designated Burlington House Fund (£1.6m), provided for liabilities associated with a Burlington House relocation is in addition to the free reserves figure above.

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 c.£4m - £5m it is not a large organization and, whilst it enjoys reasonably healthy revenues at present from its various income streams, these streams are few and are not immune to change. For these reasons financial control and decisionmaking is given a high priority.

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 Patrons programme remain stable. The Society, however, is optimistic that the new CRM and website, due in 2023/24 will enhance stakeholder engagement and provide opportunities for growth.

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 continues to face significant revenue challenges in the medium term from the rapid shift to Open Access publishing in some regions and is responding through the introduction of new Open Access models and products, whilst maintaining a careful control on cost. The challenges have been compounded by Covid-related institutional subscription budget cuts and volatility in the corporate market. Competition within the sector remains strong with increasing complexity 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.

Discussions with the Landlord have continued into 2022 with the trustees taking the decision that the Geological Society will stay in Burlington House if a reasonable offer is presented which demonstrates a financially sustainable situation. However, failing this, the GeolSoc will look to purchase a premises in central London providing a permanent home and asset for the Society. Council is monitoring the situation closely with both the Chair and Treasurer participating in the negotiations with the Landlord. The Fellowship will continue to be updated as and when developments arise.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

1.4 Plans for future periods

1.4.1 Summary of future plans

Business Plan 2022

In order to achieve the objectives of the Society’s 2017-2027 Strategy (see section 1.1.2), Council approved a 2023 Business Plan in November 2022. 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 2023 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
Develop a programme of activities under the Planetary Science theme
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
Set up the Geofutures and Fermor funds disbursement mechanism
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 the Chartership Development Plan with objective of increasing Chartership uptake in targeted sectors
Expand upon and grow the continuing professional development (CPD) course offer

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

Become a dynamic and responsive organisation with a strong digital identity

Implement the 5 year digital strategy
Replatform and update the CRM system, the Society website and conclude the rollout of the publishing platform
Transform the culture of the Society to instil greater agility, accountability, responsiveness, productivity, improved customer care and commercial awareness

Publishing

Migrate the Lyell Collection to a new future-focussed platform that provides a best in class user experience

THE GEOLOGICAL SOCIETY OF LONDON

Annual report and financial statements for the year ended 31 December 2022

Expand global uptake of the Society’s transformative read and publish agreements that combine read access to the Lyell Collection with uncapped open access publishing
Publish the first Geoscience in Practice book title and commission two more for the 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
Implement a plan for the long term preservation, enhancement and promotion of our special collections and archives

Other

Conclude the Burlington House options review and implement findings

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.

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.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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 5 times during 2022.
(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 2022.
(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 2022.
(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 2022.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

(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 2022.
(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 2022.
(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 2022.
(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 2022.
(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 2022.
(x) Development Committee – responsible for matters related to fund-raising and sponsorship. The DC met 3 times during 2022.

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 Council through 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. The Executive Secretary and Directors together form the Society’s Senior Leadership Team.

Risk management

The Trustees and Senior Leadership Team 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 and Audit Committees carry out periodic reviews of all risks.

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 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 GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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

During 2021, The Society entered into a cooperation agreement with the PESGB to run a 2023 Energy Geoscience Conference. Costs and profits arising from this joint endeavour will be shared 50/50.

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 a global membership from across both industry and academia. We maintain a variety of professional and special interest groups, as well as regional groups in the UK and abroad, details of which can be found on our website.

In addition, the Society collaborates with several international organisations such as the UNESCO International Geoscience & Geoparks Programme, Geologists for Global Development, the European Federation of Geologists, and the International Union of Geological Sciences. The Society also maintains strong links at home in the UK with University Geoscience UK, the Earth Sciences Teachers Association, and the Geological Association, working collaboratively to further our scientific and charitable ambitions.

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 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 scheme in which all staff equally participate, senior staff may receive an annual bonus. Details relating to senior staff pay are also set out in Notes 14 and 15 to the accounts.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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: Ruth Allington Vice President: Gemma Sherwood 51 Secretaries: Dr Jennie Gilbert Dr Joel Gill Prof James Griffiths Prof Robin Strachan Treasurer: Dr Keith Myers

Other members of Council

Joanna Alexander, Prof Mark Allen, Prof Mark Anderson, Dr Anna Bird, Natasha Dowey, Hollie Fisher, Neil Frewin, Martin Griffin, Dr Michael Kehinde (EDI Officer), Daniel Le Heron, Ben Lepley, Pete Loader, Dr Amanda Owen, Dr John Perry, Lucy Thomas and Lucy Williams.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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:

Dr Michael C Daly, Dr Kathryn Goodenough, Andrew Moore, Sarah Scott, Jessica Smith and Dr Alex Whittaker.

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 (left 31 October 2022)
	Simon Thompson (joined 01 November 2022)
Director of Science & Communications:	Dr Alicia Newton
Director of Publishing:	Maggie Simmons
Director of Finance & Operations:	Alex McPherson (left 31 July 2022)
	Michael Clayton (joined 04 July 2022)

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

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

2. Reports of the President, Treasurer and Executive Secretary

2.1 President’s report

The Geological Society Presidency passed from Dr Michael Daly to myself in July 2022, and I would like to thank Mike for his leadership between 2020 and 2022 during a time when, due to the disruption caused by the pandemic, his reassuring calmness, experience, and expertise in navigating through change were much needed and appreciated.

We also said goodbye to Richard Hughes, who retired as Executive Secretary after five years with the Society. Among other things, Richard oversaw the 2020 Strategic Options Review, a shift towards digital access, a more systematic approach to fundraising, and eye-catching initiatives such as the 2021 Spacescapes Exhibition.

The Society’s scientific publishing has, since 1811, been one of its central activities. In 2022 we made strides in expanding the reach of our publications by making more of our scientific research widely accessible through Open Access. We now have agreements with over 50 institutions across seven countries to fund more of our authors to make their work freely available. We also achieved Transformative Journal status for the Society’s journals, which means our publication routes are compliant with major funders’ mandates. Our annual Open Access content almost doubled from 2021 to 2022.

The Lyell Collection, the Society’s published journal and book content, was migrated to a new and greatly improved online platform. The new platform enables users to access the same high-quality content more easily and with improved functionality.

We strengthened our partnership with the European Association of Scientists and Engineers (EAGE) to jointly launch Geoenergy. This new journal focuses on timely research in subsurface geoscience, reflecting the critical role the geosciences will play in delivering the energy transition. We also published the first book in our new Geoscience in Practice series, Deciphering Earth’s History: the Practice of Stratigraphy. Written by the Society’s Stratigraphy Commission and invited colleagues, this series provides step-by-step pragmatic advice on applying geological techniques.

The year marked a return to in-person conferences and meetings. We hosted 172 days of events at Burlington House and many more at venues around the UK. It has been wonderful to meet in person, reconnect with old friends and make new connections. Our in-person events are mostly now available online as well, so they are accessible for anyone whose schedule, budget or circumstances make personal attendance difficult.

The Society launched online training courses in January 2021, and the past year saw this grow. We now offer a portfolio of courses on topics ranging from Groundwater Control to Geoethics.

We are committed to supporting professional development, careers, and education in Earth Science. The Society has recruited volunteers for our Earth Science Ambassador’s Scheme and provided training for Ambassadors to deliver rocks and fossils workshops in schools. The ENGIE Project culminated in October 2022, with the Society organising several events during 2021 and 2022, intended to help inspire girls to study geosciences and geo-engineering.

Our archive collections cover the history and evolution of geological science. Most of these are catalogued and available to researchers. In 2022 we asked for support to preserve an important series that have had to be closed-off to researchers due to their extremely poor condition: the in-coming letters of the Assistant Secretary dating from 1834-

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

Thanks to the generosity of supporters, these are now able to be conserved and will finally be available for researchers studying the development of geology at this important moment in the history of our science.

Alongside these historically important materials, we also launched major expansion of the e-journals and e-books available to Fellows on the ScienceDirect platform. In 2022 the number of items downloaded from this platform was nearly double that of 2021.

I would like to thank everyone at the Geological Society for the warm welcome and support I have received in my first six months as President. The skill, hard work and commitment shown by our staff is inspiring, as is that of Council members and other volunteers who give of their time and talents so generously. Thanks also to the generosity of sponsors, funders and benefactors who have helped us host events, publish valuable material, preserve precious artefacts, and provide outreach to young people whose engagement in geoscience is so vital to its future.

Thanks also of course, to our Fellows, Chartered Geologists, Chartered Scientists, and Friends, whose contribution to the Society, and to society at large, is immeasurable.

2.2 Treasurer’s report

From the Treasurer, Dr Keith Myers

2022 was a year of recovery for the Society, posting its first increase in income since 2018. Income for the year increased 5% to £5.12m (2021: £4.87m) and total expenditure including depreciation decreased by 2% to £5.16m (2021: £5.28m). Excluding depreciation charges, the Society delivered an operating surplus of £0.18m (2021: - £0.12m). The Executive should be commended for delivering income and expenditure very close to budget, despite the change of leadership mid- year. Turbulence in the financial markets led to the value of the Society’s investment portfolio declining by £0.87m (2021: £0.71m gain) meaning that the overall net income for the year taken to reserves was -£0.9m.

Membership and professional accreditation income increased by 8% to £2.10m (2021: £1.93m). The number of members renewed and subscribed at mid-year was 11,577 (2021: 11,620). It should be noted that the number of Fellows increased year on year with the overall decrease being driving by a drop in student membership. The revised Fellowship categories implemented in 2021, along with the compelling new strategy for the Society, helped increase Fellowship revenue on stable Fellowship numbers.

The Publishing House income was £2.49m and ahead of budget (2021: £2.45m). Lyell Collection revenue was £1.54m in 2022 (2021: £1.55m) in part due to continued success in negotiating transformative read-and-publish agreements. These agreements migrate subscription revenue to publishing revenue and are important in ensuring future sustainability in an increasingly open landscape. Temporary IT issues in 2022 reduced physical book sales but individual journal revenue remained steady despite a long-term declining trend. The inclusion of content in the notfor-profit aggregator GeoScienceWorld meant the Society benefitted from their strong year of sales.

Income from the science events and education programme was £0.23m (2021: £0.25m). This was below budget as one planned Energy Group conference was postponed. The CPD training course programme delivered income of £0.12m (2021: £0.07m). A business plan has been agreed to accelerate growth from the CPD programme. Expenditure on the Science and Education programme was £1.08m (2021: £1.11m). Science and education spending was supplemented by sponsorship income as well as pro bono support.

The financial markets were in turmoil for much of 2022 and the performance of the Society’s investment portfolio suffered as a result. Investment income was £0.13m (2021: £0.13m) while the capital value of the portfolio at the end

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

of December 2022 fell to £6.81m (2021: £7.87m). The portfolio had recently underperformed benchmark returns and the Investment Committee decided to tender to replace the investment manager. Quilter Cheviot was appointed as the Society’s new investment manager.

The Society’s overhaul of its IT systems continues. A lower-cost and more flexible online publishing platform, Atypon, was delivered by the Publishing House on time and within budget in 2022. Progress on a new Customer Relationship Management (CRM) system and refresh of the Society’s website has been slower than planned. A discovery exercise for the CRM has been completed and a completed statement of work (SOW) was prepared for a competitive tender process that began in January 2023. A supplier is expected to be chosen shortly. The CRM is a key project and will underpin the Society’s digital strategy and deliver productivity improvements and enhanced services for the membership. In 2023, a further significant IT project will begin to upgrade the Society’s website, rebuilding this on a modern platform with a modern look, with better functionality and ease of navigation. Staff changes in the Society have delayed the project, but this will be taken forward once a CRM supplier is appointed.

The cost of occupying Burlington House rose to £0.71m (2021: £0.61m) due to a combination of higher energy, rent and insurance costs. The Finance team continues to plan and make provision for a prospective move from Burlington House if negotiations with Government fail, with the preference being to use the Society’s reserves to fund a purchase that will secure a permanent home for the Society with substantially reduced operating costs.

Looking at longer-term trends, after three years of declining income, the Society grew income by 5% in 2022; though its income is still some £0.7m lower than its peak in 2018. The short-term outlook for Publishing has improved with the signing of read-and-publish agreements providing some protection against the impact of Open Access publishing trends. Nonetheless, the longer-term outlook appears challenging for publishing and the Society is looking at building new revenue streams to plug the gap.

The Society does have the cushion of considerable financial reserves and is financially robust. The biggest financial uncertainty for the Society remains the costs associated with a potential Burlington House move and ensuring funds are in place to expedite such an event.

The standard measure used by charities to gauge financial flexibility is ‘free reserves’, defined as the proportion of its unrestricted funds that a charity is free to spend on its charitable activities. At the end of 2022, the Society’s free reserves stood at £4.35m (2021: £5.35m). The fall in free reserves is due almost entirely to losses in the investment portfolio. Including £1.6m held in a designated Burlington House Fund for potential moving costs, the Society had a total of £6.4m (2021: £7.4m) of its reserves that it could freely spend on any of its charitable activities including a potential move from Burlington House.

All charities are expected to hold sufficient reserves to provide for unforeseen loss of income or expenditure. A riskbased method has been used to calculate an appropriate free-reserves target to cover both an unforeseen operational deficit and planned capital commitments to the end of 2025. For 2022 this is calculated at £2.4m (2021: £2.6m), which leaves £4.0m (2021: £4.8m) of reserves at the end of 2022 free to fund both future potential Burlington House moving costs and discretionary investment.

In 2021 the Society decided to release funds from its free reserves (initially £0.25m per year) into a Futures Fund primarily focused on investing in membership services and activity that will deliver future income. While £0.25m was designated to the Futures Fund, none was drawn in 2022. In addition, Council also decided that up to £0.5m will be released annually over a three-year period from the £2.3m Fermor Endowment Fund to fund the furtherance of minerals research. The Fermor Fund does not count towards free reserves because it is an endowment. The Society expects to start disbursing from the Futures and Fermor funds in 2023.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

The Society remains financially robust, and the Council has approved a 2023 budget that is targeting a 4% increase in income to around £5.3m and an increase in budgeted operating expenditure to £5.37m. The long- delayed new CRM should deliver substantial productivity gains for the organisation, which will be apparent from 2024 onwards.

I would like to take this opportunity to thank Alex McPherson the former Director of Finance and Operations who left the Society during 2022, for his sterling work, and to welcome Michael Clayton as Alex’s successor.

2.3 Report of the Executive Secretary

From Simon Thompson

I joined the staff of the Geological Society in November, so cannot take any credit for the achievements of 2022, but take pleasure in reporting some of them to you on behalf of my colleagues. I would like to thank everyone for the warm welcome I have received, and my predecessor Richard Hughes for his important work, which I hope to continue building on.

The Society is a true membership organisation, with volunteers participating in almost every area of Society life. Members take part in the governance of the Society; in regional groups and special interest groups; help organise, chair, and speak at events; edit and peer-review journal articles; help formulate policy; support or assess Chartership candidates, and lots more.

We were heartened to learn from the December 2022 Membership Survey that 91% of people involved in such activities said volunteering met or exceeded their expectations. Many see it as a way to give something back to geoscience and to wider society, and it is a great way to build connections, deepen involvement in our community, and help shape the future.

We have a rich heritage, which we rightly celebrate, but we were pleased to see also that 81% of survey respondents described the Society as “forward looking”. During 2022 we put in place a number of initiatives to help us better meet the future needs of members and of society. In July we launched our new journals and books platform to make information easier to find. In November, Council gave the go-ahead for a major improvement to our technical infrastructure so that we can communicate in a more user-friendly and personalised way, provide information that is more relevant to peoples’ needs and interests and better support regional and special interest groups in connecting with their members. More content is being made accessible to members online, and we will continue to invest in the online conference programme alongside in-person events.

The Byelaws Review began work in April on updating and modernising our constitution. This aims to create a governance system that is clear, consistent and that makes us better connected and more inclusive.

The Relocation Project reported to Council in March. This looked at the long-term needs of the Society regarding its premises. In addition to this, we held constructive negotiations with our landlords to see whether a viable solution can be found at our existing site. We continue to actively explore all options with a view to determining a clear path within 2023.

Beyond our technical and physical infrastructure, we are looking outwards and towards the future – at the ways geoscience positively shapes the world and how we can best support our members to drive this forward.

Our strategy prioritises five science themes: The Energy Transition; Geohazards, Geoengineering & Georesilience; Climate & Ecology; Planetary Science; and Digital Geoscience.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

These cut across the Society’s policy, outreach, and education work, and serve as the focus of the conference programme. In 2022, the Energy Transition theme successfully launched following a campaign for volunteers, and involving the Energy Group, Decarbonisation Working Group, and others. The Climate & Ecology theme announced a two-day ‘Sea Levels’ meeting for February 2023. The Geohazards, Geoengineering & Georesilience (G3) theme will host its inaugural meeting in 2023, and plans are underway to launch further activity under the Digital Geoscience and Planetary Science themes.

Geoscience is needed perhaps more than ever before to address many of the world’s most urgent challenges and opportunities. Among other things, the growing need for infrastructure, homes, and sustainable energy requires expertise that only properly qualified geoscientists can provide. We will be doing more to support schoolteachers and help inspire young people to consider a future in geoscience. We are also exploring how we can help reduce barriers and ensure the field is relevant, inclusive, and appeals to as broad a range of people as possible.

As we look ahead to 2023 and beyond, the Geological Society is focusing on the sustainability of the organisation, the professional development of our members, promoting geoscience and helping to make it more welcoming, and inspiring young people to enter this rewarding field. Our success will depend on the continued involvement and enthusiasm of our entire community. Please join us in helping to build on the important work underway, and in shaping an exciting future for the Society and our science.

3. Responsibilities of the trustees

The Trustees are responsible for preparing the Trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). The law that is applicable to charities in England and Wales requires the Trustees to prepare financial statements 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 statements, the Trustees are required to:

select suitable accounting policies and apply them consistently;
observe the methods and principles of the Charities Statement of Recommended Practice (‘SORP’) 2019;
• make judgements and estimates that are reasonable and prudent;
state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charity’s transactions and disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011 and the Charity (Accounts and Reports) Regulations 2008. They are also responsible for safeguarding the assets of the group and the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. This is published in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements and may differ from legislation in other jurisdictions.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

The Trustees who were in office on the date of approval of these financial statements have confirmed that, as far as they are aware, there is no relevant audit information of which the auditors are unaware. Each of the Trustees has confirmed that they have taken all the steps that they ought to have taken as a Trustee in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor.

Signed on behalf of the Trustees:

Dr Ruth Allington President Date: 26[th] April 2023

Dr Keith Myers Treasurer

Date: 26[th] April 2023

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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

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 2022 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 2022 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.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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 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 23 and 24, 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

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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 non-compliance 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.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team:

obtained an understanding of the nature of the sector, including the legal and regulatory frameworks, that the group and parent charity operate in and how the group and parent charity are complying with the legal and regulatory frameworks;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Charities SORP (FRS 102), Charities Act 2011 and the parent charity’s governing document. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements including the Trustees’ Report, remaining alert to new or unusual transactions which may not be in accordance with the governing documents.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to the General Data Protection Regulation. We performed audit procedures to inquire of management and those charged with governance whether the group is in compliance with these regulations.

The group audit engagement team identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments, evaluating the business

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

rationale in relation to any significant, unusual transactions and transactions entered into outside the normal course of business, and challenging judgments and estimates.

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

Use of our report

This report is made solely to the charity’s trustees as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might state to the charity’s trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

RSM UK AUDIT LLP Statutory Auditor 25 Farringdon Street London EC4A 4AB

Date: 5 June 2023

RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

5. Statements of Financial Activities

5.1 Consolidated Statement of Financial Activities for the year ended 31 December 2022

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 (losses) / gains on investments 19 Net (expenditure) / income Transfers between Funds Other (losses) / gains in year 20 Tax Payable 36 Net movement in funds Reconciliation of funds: Total funds brought forward Total funds carried forward	2022	2021
	Unrestricted RestrictedEndowment Total Funds Funds Funds Funds £ £ £ £ 25,028 34,650 - 59,678 231,460 - - 231,460 2,094,304 5,000 - 2,099,304 2,488,148 - - 2,488,148 6,604 - - 6,604 100,935 - 100,935 121,126 10,152 - 131,278 4,698 - - 4,698	Unrestricted Restricted Endowment Total Funds Funds Funds Funds (Restated) (Restated) (Restated) (Restated) £ £ £ £ 53,262 2,000 - 55,262 247,889 - - 247,889 1,882,232 52,736 - 1,934,968 2,453,964 - - 2,453,964 4,634 - - 4,634 23,931 - - 23,931 118,096 9,047 - 127,143 17,957 1,000 - 18,957
	5,072,303 49,802 - 5,122,105	4,801,965 64,783 - 4,866,748
	57,058 - - 57,058 40,340 4,558 16,831 61,729 1,043,141 34,016 4,599 1,081,756 845,516 - - 845,516 2,414,925 10,250 33,545 2,458,720 649,864 482 - 650,346	58,330 - - 58,330 39,882 3,929 14,784 58,595 1,029,522 63,113 2,200 1,094,835 720,918 - - 720,918 2,697,640 - - 2,697,640 646,029 - - 646,029
	5,050,844 49,306 54,975 5,155,125	5,192,321 67,042 16,984 5,276,347
	21,459 496 (54,975) (33,020) (545,372) (69,120) (255,245) (869,737)	(390,356) (2,259) (16,984) (409,599) 471,618 50,880 191,437 713,935
	(523,913) (68,624) (310,220) (902,757) - - - - 18,032 (10,631) (39,258) (31,857) - - - -	81,262 48,621 174,453 304,336 30,972 - (30,972) - 22,193 82 9 22,284 - - - -
	(505,881) (79,255) (349,478) (934,614)	134,427 48,703 143,490 326,620
	7,369,030 930,231 2,437,360 10,736,621	7,234,603 881,528 2,293,870 10,410,001
	6,863,149 850,976 2,087,882 9,802,007	7,369,030 930,231 2,437,360 10,736,621

The notes on pages 33-60 form an integral part of these Financial Statements.

Annual report and financial statements for the year ended 31 December 2022

THE GEOLOGICAL SOCIETY OF LONDON

5.2 Charity only Statement of Financial Activities for the year ended 31 December 2022

2022		2021
Unrestricted RestrictedEndowment Total Funds Funds Funds Funds £ £ £ £ 90,764 34,650 - 125,414 225,752 - - 225,752 2,094,304 5,000 - 2,099,304 2,488,148 - - 2,488,148 6,604 - - 6,604 20,150 - - 20,150 121,126 10,152 - 131,278 4,698 - - 4,698		Unrestricted Restricted Endowment Total Funds Funds Funds Funds (Restated) (Restated) (Restated) (Restated) £ £ £ £ 59,904 2,000 - 61,904 247,889 - - 247,889 1,882,232 52,736 - 1,934,968 2,453,964 - - 2,453,964 4,634 - - 4,634 16,449 - - 16,449 118,096 9,047 - 127,143 17,957 1,000 - 18,957
5,051,546 49,802 - 5,101,348		4,801,125 64,783 - 4,865,908
36,749 - - 36,749 40,340 4,558 16,831 61,729 1,042,693 34,016 4,599 1,081,308 845,516 - - 845,516 2,414,925 10,250 33,545 2,458,720 649,864 482 - 650,346		58,673 - - 58,673 42,228 3,929 14,784 60,941 1,046,707 63,113 2,200 1,112,020 573,439 - - 573,439 2,454,830 - - 2,454,830 1,015,604 - - 1,015,604
5,030,087 49,306 54,975 5,134,368		5,191,481 67,042 16,984 5,275,507
21,459 496 (54,975) (33,020) (545,372) (69,120) (255,245) (869,737)		(390,356) (2,259) (16,984) (409,599) 471,618 50,880 191,437 713,935
(523,913) (68,624) (310,220) (902,757) - - - - 18,032 (10,631) (39,258) (31,857) - - - -		81,262 48,621 174,453 304,336 30,972 - (30,972) - 22,193 82 9 22,284 - - - -
(505,881) (79,255) (349,478) (934,614)		134,427 48,703 143,490 326,620
7,364,277 930,231 2,437,360 10,731,868		7,229,850 881,528 2,293,870 10,405,248
6,858,396 850,976 2,087,882 9,797,254	-	7,364,277 930,231 2,437,360 10,731,868

The notes on pages 33-60 form an integral part of these Financial Statements.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

6. Balance Sheet as at 31 December 2022

Consolidated Balance Sheet	Consolidated Balance Sheet	Consolidated Balance Sheet	Charity Only Balance Sheet	Charity Only Balance Sheet
£ £ 48,763 322,021 370,784 250,306 26,008 50,427 326,741 1,297,383 6,474,106 335,571 6,809,677 8,804,585 321,145 52,255 437,185 586,130 3,002,110 4,398,825 (3,401,403) 997,422 9,802,007 6,863,149 850,976 2,087,882 9,802,007 2022		£ £ 11,023 103,886 114,909 283,294 32,476 41,005 356,775 1,296,301 7,752,463 118,118 7,870,581 9,638,566 248,139 56,708 298,353 1,373,414 2,060,703 4,037,317 (2,939,262) 1,098,055 10,736,621 7,369,030 930,231 2,437,360 10,736,621 2021	£ £ 48,763 322,021 370,784 250,306 26,008 50,427 326,741 1,297,383 6,474,106 335,571 6,809,677 8,804,585 321,145 52,255 543,135 586,130 2,891,407 4,394,072 (3,401,403) 992,669 9,797,254 6,858,396 850,976 2,087,882 9,797,254 2022	£ £ 11,023 103,886 114,909 283,294 32,476 41,005 356,775 1,296,301 7,752,463 118,118 7,870,581 9,638,566 248,139 56,708 323,815 1,373,414 2,030,488 4,032,564 (2,939,262) 1,093,302 10,731,868 7,364,277 930,231 2,437,360 10,731,868 2021

	9,802,007
	6,863,149 850,976 2,087,882
	9,802,007

The notes on pages 33-60 form an integral part of these Financial Statements.

Approved by the trustees on 26[th] April 2023 and signed on their behalf by:

Ms Ruth Allington President

Dr. Keith Myers Treasurer

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

7. Consolidated Cash Flow Statement for the year ended 31 December 2022

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: 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	£ £ 300,018 - 131,278 (436,483) 2,975,480 (2,784,313) (114,038) - 185,980 3,434,117 (31,857) 3,588,240 2022	£ £ 300,018 - 131,278 (436,483) 2,975,480 (2,784,313) (114,038) - 185,980 3,434,117 (31,857) 3,588,240 2022	£ £ 669,702 - 127,143 (252,338) 2,778,504 (2,724,490) (71,181) - 598,521 2,813,312 22,284 3,434,117 2021
		185,980 3,434,117 (31,857)
		3,588,240

The notes on pages 33-60 form an integral part of these Financial Statements.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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.

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

The Charity constitutes a public benefit entity as defined by FRS102.

The financial statements are presented in sterling, which is also the functional currency of the charity. The amounts are presented to the nearest £1.

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 2023 budget on the reasonable assumption that this will continue. 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[st] December 2024, 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 2022, the Society held unrestricted cash balances of £3.6m and unrestricted investments of £4.3m.

(b) Changes in accounting policy

There were no changes to accounting policies in the 2022 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

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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 recognised 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.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

(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 on a risked based method to calculate an appropriate minimum free reserves target to cover both unforeseen operational deficits and capital commitments to the end of 2025.

(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.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

(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 for both unforeseen operational deficits and capital commitments to the end of 2025. 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.

(m) Financial Instruments

The Charity has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the charity becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, are initially recognised at transaction price.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

2 Donations and legacies

During the year the Society received a number of donations totalling £59.7k (2021: £55.3k).

The Directors of Geological Trading Ltd (GTL) have entered into a Deed of Covenant whereby profits are automatically donated to the Society. In 2022, GTL donated £65.7k (2021: £6.6k) to its parent.

3 Income from charitable activities

Income from the Society’s charitable activities is segmented into the following areas of activity: Science and Education; Professional and Academic Standards; Scholarly Publishing; Library and Archives.

Analysis of charitable income:

Analysis of Charitable activity	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2022	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2021
3.a Science & Education Flagship meetings & events 12,385 - - 12,385 Energy Group meetings 94,370 - - 94,370 Other meetings & events 115,553 - - 115,553 Grants & other direct funding - - - - Friends of the GSL - - - - Other Income GSL 3,444 - - 3,444 Total Charity only 225,752 - - 225,752 Other Income GTL 5,708 - - 5,708 Sub-total: 231,460 - - 231,460	12,385 - - 12,385 94,370 - - 94,370 115,553 - - 115,553 - - - - - - - - 3,444 - - 3,444	61,572 - - 61,572 110,536 - - 110,536 70,944 - - 70,944 - - - - - - - - 4,837 - - 4,837
	225,752 - - 225,752 5,708 - - 5,708	247,889 - - 247,889
		- - - -
		247,889 - - 247,889
3.b Professional & academic standards Fellowship & Chartership fees 1,893,474 - - 1,893,474 Corporate Patrons fees 109,697 5,000 - 114,697 Accreditation 17,350 - - 17,350 Specialist & Regional Groups 73,783 - - 73,783 Other Fellowship Income - - - - Sub-total: 2,094,304 5,000 - 2,099,304		1,841,991 - - 1,841,991 20,611 52,736 - 73,347 19,600 - - 19,600 30 - - 30 - - - -
		1,882,232 52,736 - 1,934,968
3.c Scholarly publishing Book sales & distribution 220,240 - - 220,240 Lyell Collection 1,544,722 - - 1,544,722 GSL journals 384,233 - - 384,233 Non-GSL Journals 28,376 - - 28,376 Geology Today 11,004 - - 11,004 Geofacets 46,381 - - 46,381 Geoscientist 5,963 - - 5,963 GSW Ebooks 170,653 - - 170,653 Royalties & copying income 76,576 - - 76,576 Other Publishing Income - - - - Sub-total: 2,488,148 - - 2,488,148	220,240 - - 220,240 1,544,722 - - 1,544,722 384,233 - - 384,233 28,376 - - 28,376 11,004 - - 11,004 46,381 - - 46,381 5,963 - - 5,963 170,653 - - 170,653 76,576 - - 76,576 - - - -	257,929 - - 257,929 1,546,831 - - 1,546,831 363,305 - - 363,305 30,066 - - 30,066 12,086 - - 12,086 46,755 - - 46,755 3,011 - - 3,011 92,761 - - 92,761 100,840 - - 100,840 380 380
		2,453,964 - - 2,453,964
3.d Library & Archives Library Income 6,604 - - 6,604 Sub-total: 6,604 - - 6,604	6,604 - - 6,604	4,634 - - 4,634
		4,634 - - 4,634
Grand total: 4,820,516 5,000 - 4,825,516		4,588,719 52,736 - 4,641,455

THE GEOLOGICAL SOCIETY OF LONDON

Annual report and financial statements for the year ended 31 December 2022

4 Other trading activities

4 Other trading activities
Consolidated Income Unrestricted Restricted Endowment Total Analysis of Funds Funds Funds Funds Other trading activities £ £ £ £ 2022	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2021
Room hire: Fellows & associates 1,350 - - 1,350 Room hire: subsidiary company 56,104 - - 56,104 Catering: Fellows & associates - - - - Catering: subsidiary company 38,627 - - 38,627 Other activities 4,854 - - 4,854	1,350 - - 1,350 2,099 - - 2,099 - - - - 5,682 - - 5,682 14,800 - - 14,800
Grand total: 100,935 - - 100,935	23,931 - - 23,931

Charity-only Income Unrestricted Restricted Endowment Total Analysis of Funds Funds Funds Funds Other trading activities £ £ £ £ 2022	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2021
Room hire: Fellows & associates 20,150 - - 20,150 Catering: Fellows & associates - - - - Other activities - - - -	16,449 - - 16,449 - - - - - - - -
Grand total: 20,150 - - 20,150	16,449 - - 16,449

5 Investment income

5 Investment income
Analysis of Investment income	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2022	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2021
Investment income received 117,588 10,152 - 127,740 Bank interest on funds held 3,538 - - 3,538 Grand total: 121,126 10,152 - 131,278	117,588 10,152 - 127,740 3,538 - - 3,538	117,915 9,047 - 126,962 181 - - 181
		118,096 9,047 - 127,143

Note: Investment income received on the proportion of the portfolio allocated to endowment funds is treated as unrestricted.

6 Other income

6 Other income
Analysis of Other income	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2022	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2021
Grant Income - - - - Other Income 4,698 - - 4,698 Grand total: 4,698 - - 4,698	- - - - 4,698 - - 4,698	- 1,000 - 1,000 17,957 - - 17,957
		17,957 1,000 - 18,957

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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

7.a Room hire and catering
Analysis of Consolidated Room hire & catering costs	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2022	Unrestricted Restricted Endowment Total Funds Funds Funds Funds (Restated) (Restated) (Restated) (Restated) £ £ £ £ 2021
Room hire costs 13,595 - - 13,595 Catering costs 4,499 - - 4,499 Overheads recharged 38,964 - - 38,964 Grand total: 57,058 - - 57,058	13,595 - - 13,595 4,499 - - 4,499 38,964 - - 38,964	4,281 - - 4,281 1,249 - - 1,249 52,800 - - 52,800
		58,330 - - 58,330

Analysis of Charity Only Room hire & catering costs	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2022	Unrestricted Restricted Endowment Total Funds Funds Funds Funds (Restated) (Restated) (Restated) (Restated) £ £ £ £ 2021
Room hire costs 13,595 - - 13,595 Catering costs 4,499 - - 4,499 Overheads recharged 18,655 - - 18,655 Grand total: 36,749 - - 36,749	13,595 - - 13,595 4,499 - - 4,499 18,655 - - 18,655	4,281 - - 4,281 1,249 - - 1,249 53,143 - - 53,143
		58,673 - - 58,673

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	2022 Total Costs £	2021 Total Costs (restated) £
Management Fee 57,351 Overheads recharged 4,378 Grand total: 61,729	57,351 4,378	55,128 3,467
		58,595

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

8 Expenditure on charitable activities

Analysis of charitable expenditure:

Analysis of Charitable activity	Unrestricted Restricted Endowment Total Funds Funds Funds Funds £ £ £ £ 2022	Unrestricted Restricted Endowment Total Funds Funds Funds Funds (Restated) (Restated) (Restated) (Restated) £ £ £ £ 2021
8.a Science & education Flagship meetings & events 62,129 - - 62,129 Energy Group meetings 52,098 - - 52,098 Other scientific & educational events 8,156 - - 8,156 Science & Education Committee 50,319 27,279 4,599 82,197 Direct staff costs 431,527 6,737 - 438,264 Overheads recharged 438,464 - - 438,464 Total Charity only 1,042,693 34,016 4,599 1,081,308 Other Expenditure GTL 448 448 Sub-total: 1,043,141 34,016 4,599 1,081,756	62,129 - - 62,129 52,098 - - 52,098 8,156 - - 8,156 50,319 27,279 4,599 82,197 431,527 6,737 - 438,264 438,464 - - 438,464	16,092 - - 16,092 (7,763) - - (7,763) 771 - - 771 19,633 51,958 2,200 73,791 393,185 11,155 - 404,340 607,604 - - 607,604
	1,042,693 34,016 4,599 1,081,308 448 448	1,029,522 63,113 2,200 1,094,835
		- - - -
		1,029,522 63,113 2,200 1,094,835
8.b Professional & academic standards Fellowship support 74,979 - - 74,979 Corporate Patrons - - - - Accreditation - - - - Professional Committee 1,916 - - 1,916 Specialist & Regional Groups 100,954 - - 100,954 Direct staff costs 236,196 - - 236,196 Overheads recharged 431,471 - - 431,471 Sub-total: 845,516 - - 845,516		90,124 - - 90,124 - - - - - - - - 4,283 - - 4,283 15,995 - - 15,995 191,566 - - 191,566 418,950 - - 418,950
		720,918 - - 720,918
8.c Scholarly publishing Book sales & distribution 76,334 5,000 33,545 114,879 Lyell Collection 157,072 - - 157,072 GSL journals 88,783 - - 88,783 Non-GSL Journals 12,700 - - 12,700 Geoscientist 103,586 - - 103,586 GSW E-books - - - - Publishing House running costs 277,431 5,250 - 282,681 Direct staff costs 915,331 - - 915,331 Overheads recharged 783,688 - - 783,688 Total Charity only 2,414,925 10,250 33,545 2,458,720 Other Expenditure GTL - - - - Sub-total: 2,414,925 10,250 33,545 2,458,720	76,334 5,000 33,545 114,879 157,072 - - 157,072 88,783 - - 88,783 12,700 - - 12,700 103,586 - - 103,586 - - - - 277,431 5,250 - 282,681 915,331 - - 915,331 783,688 - - 783,688	217,264 - - 217,264 148,359 - - 148,359 72,294 - - 72,294 21,251 - - 21,251 105,369 - - 105,369 - - - - 177,359 - - 177,359 888,696 - - 888,696 1,066,208 - - 1,066,208
	2,414,925 10,250 33,545 2,458,720 - - - -	2,696,800 - - 2,696,800
		840 - - 840
		2,697,640 - - 2,697,640
8.d Library & Archives Library running costs 150,058 482 - 150,540 Direct staff costs 203,786 - - 203,786 Overheads recharged 296,020 - - 296,020 Sub-total: 649,864 482 - 650,346	150,058 482 - 150,540 203,786 - - 203,786 296,020 - - 296,020	146,528 - - 146,528 163,954 - - 163,954 335,547 - - 335,547
		646,029 - - 646,029
Grand total: 4,953,446 44,748 38,144 5,036,338		5,094,109 63,113 2,200 5,159,422

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

9 Support, facilities and governance costs

The Society identifies three types of support cost relating to: facilities; support staff; and governance. During 2022 an exercise was undertaken to review the support cost allocation methodologies. Each is allocated to charitable activities on the bases set out below. The allocations for 2021 have been restated for comparative purposes.

(i) Facilities costs

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 costs	2022 Total Costs £	2021 Total Costs £
Burlington House running & maintenance costs 653,088 Facilities manager staff cost 57,840 Grand total: 710,928	653,088 57,840	577,259 32,803
		610,062

Note: £190,528 of the above total in 2022 (2021: £116,202) is allocated to support staff and governance costs before being re-allocated as part of those costs.

(ii) Support costs

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, non-staff expenditure and depreciation. The basis of allocation for such costs is based on headcount for each activity.

Analysis of Support costs	2022 Total Costs £	2021 Total Costs (Restated) £
Executive 336,195 Finance 303,449 HR Support 201,723 IT Support 358,006 Marketing - Other Projects 28,101 Restructuring Costs - Business Development 91,972 Sub Total Support Costs: 1,319,446 Fixed Asset Impairment - Grand Total Support Costs: 1,319,446	336,195 303,449 201,723 358,006 - 28,101 - 91,972	391,907 306,532 98,421 508,398 - 30,577 - 90,525
		1,426,360 493,083
		1,919,443

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

(iii) Governance 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 costs	2022 Total Costs £	2021 Total Costs (Restated) £
Audit fees 41,689 Annual report 1,400 Council elections 5,393 Trustees' expenses 5,840 Share of Facilities costs recharged 98,819 Grand total: 153,141	41,689 1,400 5,393 5,840 98,819	27,098 1,367 5,303 - 84,799
		118,567

(iv) Allocation of support costs

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

Support Cost Allocation *Charitable activities* Science & education Professional & academic standards Scholarly publishing Library & archives *Other activities* Trading Investments	2022	2021
	Support Total Facilities Costs Governance Costs £ £ £ £	Support Total Facilities Costs Governance Costs (Restated) (Restated) (Restated) (Restated) £ £ £ £
	141,475 289,486 7,503 438,464 208,302 160,840 62,329 431,471 - 707,883 75,805 783,688 167,068 128,646 306 296,020 3,554 32,194 3,216 38,964 - 396 3,982 4,378	121,402 479,666 6,536 607,604 178,748 191,945 1,423 372,116 - 1,007,517 58,691 1,066,208 143,365 191,945 237 335,547 3,050 47,986 1,764 52,800 - 384 3,083 3,467
	520,399 1,319,445 153,141 1,992,985	446,565 1,919,443 71,734 2,437,742

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.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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 met directly by the Society are primarily to cover costs incurred whilst fulfilling their duties, such as travel and accommodation, and also for charges made for speaker fees.

Analysis of Trustees' expenses	2022 Totals	2021 Totals
Total value of expenses paid Total number of trustees paid	£ 1,795	£ 759
	8	3

11 Transactions with related parties

As the Geological Trading Limited’s ability is recovering after the pandemic, there is a charge from the parent entity to GTL for support costs, £20.3k (2021: £0).

12 Staff costs and employee benefits

Total staff costs for the Society are set out below:

Analysis of Staff costs	2022 Total Costs £	2021 Total Costs £
Wages and salaries 2,095,133 Social security costs 249,078 Pension contributions 197,510 Sub-total: 2,541,721 Temps & agency staff 113,074 Staff insurance 23,864 Recruitment costs 54,104 Sub-total: 191,042 Grand total: 2,732,763	2,095,133 249,078 197,510	1,881,929 199,948 176,264
		2,258,141
	113,074 23,864 54,104	169,999 15,686 4,122
		189,807

		2,447,948

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 GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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)	2022 Totals	2021 Totals
*Charitable activities* Science & education Professional & academic standards Scholarly publishing Library & archives *Other activities* Trading Investments *Support* Support staff Grand total:	8.6 4.7 18.3 4.0 0.6 0.2 9.4	7.8 3.1 19.2 3.4 0.2 0.1 8.9
	45.8	42.7

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 -----
2022 2021
Number Number
£130,000 - £139,999 - 1
£110,000 - £119,999 1 -
£100,000 - £109,999 - 1
£70,000 - £79,999 2 2
£60,000 - £69,999 3 2
6 6
----- End of picture text -----

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

15 Remuneration of key management personnel

The total employee benefits of the 6 (2021:4) key management personnel during the year, which comprised salary and pension benefits, were £434,083 (2021: £388,585) and Employer’s National Insurance of £52,890 (2021: £48,769).

16 Intangible assets: website and systems development

The Society's website and business systems are capitalised at cost and amortized at a rate of 25% per annum with the expectation of a four-year life-cycle. Capitalisation does not begin until the development of the intangible asset has been completed and the asset is in use. 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, was being amortised over a 10-year period. During 2021, the Society decided to replatform its CRM system, with an alternative product expected to operate from early 2024. A consequence of this decision was to impair the unamortized portion of the original development cost and recognise the charge in 2021.

Analysis of Intangible assets	Website	Website	IT Systems	IT Systems	Total Intangible Assets	Total Intangible Assets
	2022 Totals £	2021 Totals £	2022 Totals £	2021 Totals £	2022 Totals £	2021 Totals £
Cost or valuation brought forward: - Acquisitions in year: - Disposals in year: - Revaluations in year: - Impairment provisions - Transfers in year: Cost or valuation carried forward: Cumulative amortization b/fwd: - Adjustments on disposal: - Amortization charged: - Impairment provisions Cumulative amortization c/fwd: Net book value brought forward: Total movements in year: Net book value carried forward:	11,023 37,740 - - - -	211,405	263,764	894,412	274,787	1,105,817
		11,023 - - (211,405) -	238,200 - - - -	104,434 - - (735,082) -	275,940 - - - -	115,457 - - (946,487) -
	48,763	11,023	501,964	263,764	550,727	274,787
	- - - -
		(207,628)	(159,878)	(333,337)	(159,878)	(540,965)
		- (2,511)	- (20,065) -	- (76,748) 250,207	- (20,065) -	- (79,259) 460,346
		210,139
	-	-	(179,943)	(159,878)	(179,943)	(159,878)
	11,023 37,740	3,777 7,246	103,886 218,135	561,075 (457,189)	114,909 255,875	564,852 (449,943)
	48,763	11,023	322,021	103,886	370,784	114,909

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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
	2022 Totals £	2021 Totals £	2022 Totals £	2021 Totals £	2022 Totals £	2021 Totals £	2022 Totals £	2021 Totals £
Cost or valuation brought forward: - Acquisitions in year: - Disposals in year: - Revaluations in year: - Impairment provisions - 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:	1,503,491 - - - - -	1,503,491	832,890	853,015	1,959,774	1,961,118	4,296,155	4,317,624
		- - - - -	8,750 - - - -	- - - (20,125) -	24,646 - - - -	23,325 - - (24,669) -	33,396 - - - -	23,325 - - (44,794) -
	1,503,491	1,503,491	841,640	832,890	1,984,420	1,959,774	4,329,551	4,296,155
	(1,220,197) - (32,988) - -	(1,187,209)	(800,414)	(800,120)	(1,918,769)	(1,908,369)	(3,939,380)	(3,895,698)
		- (32,988) - -	- (15,218) - -	- (19,200) 18,906 -	- (15,224) - -	- (29,344) 18,944 -	- (63,430) - -	- (81,532) 37,850 -
	(1,253,185)	(1,220,197)	(815,632)	(800,414)	(1,933,993)	(1,918,769)	(4,002,810)	(3,920,474)
	283,294 (32,988)	316,282 (32,988)	32,476 (6,468)	52,895 (20,419)	41,005 9,422	52,749 (11,744)	356,775 (30,034)	421,926 (65,151)
	250,306	283,294	26,008	32,476	50,427	41,005	326,741	356,775

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 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.

THE GEOLOGICAL SOCIETY OF LONDON

Annual report and financial statements for the year ended 31 December 2022

2022 2021 Analysis of Totals Totals Heritage assets £ £ Cost or valuation brought forward: 2,560,908 2,447,352 - Acquisitions in year: 127,147 113,556 - Disposals in year: - - - Revaluations in year: - - - Transfers in year: - - Cost or valuation carried forward: 2,688,055 2,560,908 Cumulative depreciation brought forward: (1,264,607) (1,140,562) - Adjustments on disposal: - - - Depreciation charged: (126,065) (124,045) - Impairment provisions - - - Transfers: - - Cumulative depreciation carried forward: (1,390,672) (1,264,607) Net book value brought forward: 1,296,301 1,306,790 Total movements in year: 1,082 (10,489) Net book value carried forward: 1,297,383 1,296,301 Heritage Assets	2022 2021 Analysis of Totals Totals Heritage assets £ £ Cost or valuation brought forward: 2,560,908 2,447,352 - Acquisitions in year: 127,147 113,556 - Disposals in year: - - - Revaluations in year: - - - Transfers in year: - - Cost or valuation carried forward: 2,688,055 2,560,908 Cumulative depreciation brought forward: (1,264,607) (1,140,562) - Adjustments on disposal: - - - Depreciation charged: (126,065) (124,045) - Impairment provisions - - - Transfers: - - Cumulative depreciation carried forward: (1,390,672) (1,264,607) Net book value brought forward: 1,296,301 1,306,790 Total movements in year: 1,082 (10,489) Net book value carried forward: 1,297,383 1,296,301 Heritage Assets	2022 2021 Analysis of Totals Totals Heritage assets £ £ Cost or valuation brought forward: 2,560,908 2,447,352 - Acquisitions in year: 127,147 113,556 - Disposals in year: - - - Revaluations in year: - - - Transfers in year: - - Cost or valuation carried forward: 2,688,055 2,560,908 Cumulative depreciation brought forward: (1,264,607) (1,140,562) - Adjustments on disposal: - - - Depreciation charged: (126,065) (124,045) - Impairment provisions - - - Transfers: - - Cumulative depreciation carried forward: (1,390,672) (1,264,607) Net book value brought forward: 1,296,301 1,306,790 Total movements in year: 1,082 (10,489) Net book value carried forward: 1,297,383 1,296,301 Heritage Assets
Analysis of Heritage assets	Heritage Assets
	2022 Totals £	2021 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:	2,560,908 127,147 - - -	2,447,352 113,556 - - -
	2,688,055	2,560,908
	(1,264,607) - (126,065) - -	(1,140,562) - (124,045) - -
	(1,390,672)	(1,264,607)
	1,296,301 1,082
		1,306,790 (10,489)
	1,297,383	1,296,301

Analysis of Net Book Value by class of assets	2022 Totals £	2021 Totals £
(i) General holdings (ii) Books (iii) Bindings (iv) Maps (v) Periodicals Grand total:	- 24,060 43,778 19,813 1,209,732	- 27,829 49,350 22,765 1,196,357
	1,297,383	1,296,301

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

set out below:	set out below:

Five-year summary of Heritage asset transactions	2018 2019 2020 2021 2022 £ £ £ £ £
Cost of acquisition: (i) General holdings (ii) Books (iii) Bindings (iv) Maps (v) Periodicals	- - - - - 3,934 615 809 - - 6,713 6,609 - - - 2,002 1,320 - - - 151,998 163,150 170,548 113,556 127,147
	164,647 171,694 171,357 113,556 127,147

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.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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	2022 Total £	2021 Total £
Listed and traded investments Portfolio cash Grand total:	6,474,106 335,571	7,752,463 118,118
	6,809,677	7,870,581

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

Movements in invested funds are set out in the following notes.
Analysis of Fixed asset investments	Listed & Traded		Portfolio Cash
	2022 Totals £	2021 Totals £	2022 Totals £	2021 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:	7,752,463 2,784,313 (3,197,602) (865,068) - -	7,029,972 2,724,490 (2,609,179) 607,180 - -	118,118 (2,784,313) 3,197,602 (4,669) (133,768) (57,399)	180,686 (2,724,490) 2,609,179 106,755 1,149 (55,161)
	6,474,106	7,752,463	335,571	118,118

THE GEOLOGICAL SOCIETY OF LONDON

Annual report and financial statements for the year ended 31 December 2022

FRS 102 requires that material amounts held within investment classes must be individually identified. The table below sets out the top 15 individual holdings by market value as at 31 December 2022:

below sets out the top 15 individual holdings by market value as at 31 December 2022:	below sets out the top 15 individual holdings by market value as at 31 December 2022:
Market value Analysis of at 31 Dec 2022 Significant investments held £
Property & Other funds:- THE CHARITIES PROPERTY FUND MAYFAIR CAPITAL PROPERTY INCOME TRUST CHARITIES GBP MICROSOFT CORP AIA GROUP LTD MASTERCARD INC - A ARAMARK AIR LIQUIDE SA THERMO FISHER SCIENTIFIC INC SERVICE CORP INTERNATIONAL HDFC BANK LTD-ADR ESSILORLUXOTTICA SHISEIDO CO LTD RECKITT BENCKISER GROUP PLC LONDON STOCK EXCHANGE GROUP CME GROUP INC	382,835 171,249 145,937 138,680 132,112 131,490 130,626 130,476 126,668 126,481 122,912 122,038 121,640 121,597 121,181
	2,225,922

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 (losses) / gains in year:	2022 2021 £ £ 667,933 1,447,249
	(31,857) 22,284

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. In prior years, stock was shown at the lower of cost or net realisable value, less an impairment provision of 4% per month which was charged from the thirteenth month after publication. For 2022 onwards, the blanket 4% impairment will no longer be made. Stocks are still shown on the balance sheet at the lower of cost and net realisable value, but a more considered impairment approach has been taken. For books selected to be placed the book sales, the revised selling price is compared to the production cost of that book. If this selling price is below cost, an impairment is made.

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.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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.

Analysis of Stock	2022 Total £	2021 Total £
Geological Society finished stock: Geological Society Work In Progress: Third-party sale stock: Total: Total finished stock: Total work in progress: Total:	316,481 52,255 4,664	245,150 56,708 2,989
	373,400	304,847
	321,145 52,255	248,139 56,708
	373,400	304,847

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
	2022 Total £	2021 Total £	2022 Total £	2021 Total £
Amounts falling due within one year Trade debtors: Group and associated undertakings: Prepayments and accrued income: Other debtors: Grand total:	79,004 - 316,855 41,326	73,671 - 198,335 26,347	66,291 118,663 316,855 41,326	60,940 38,193 198,335 26,347
	437,185	298,353	543,135	323,815

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	2022 Total £	2021 Total £
Money market account: Grand total:	586,130	1,373,414
	586,130	1,373,414

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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. Deferred income represents subscription income paid in 2022 relating to 2023.

income paid in 2022 relating to 2023.
Analysis of Creditors	Group		Charity
	2022 Total £	2021 Total £	2022 Total £	2021 Total £
Amounts falling due within one year Trade creditors: Group and associated undertakings: Accruals: Deferred income: Taxation and social security: Other creditors: Grand total:	(524,298) - (468,583) (2,282,325) (55,822) (70,375)	(166,403) - (427,665) (2,219,158) (51,112) (74,924)	(524,298) - (468,583) (2,282,325) (55,822) (70,375)	(166,403) - (427,665) (2,219,158) (51,112) (74,924)
	(3,401,403)	(2,939,262)	(3,401,403)	(2,939,262)

Further analysis of Deferred income	Group		Charity
	2022 Total £	2021 Total £	2022 Total £	2021 Total £
Accruals for payments due in year: Income received in advance - Fellowship fees: Income received in advance - Publishing fees and subscriptions: Grand total:	(1,390,994) (891,331)	(1,391,133) (828,025)	(1,390,994) (891,331)	(1,391,133) (828,025)
	(2,282,325)	(2,219,158)	(2,282,325)	(2,219,158)
	Group Charity 2022 2022 Total Total £ £ (2,219,158) (2,219,158) 2,219,158 2,219,158 (2,282,325) (2,282,325) (2,282,325) (2,282,325)
Movement in Deferred income	Group	Charity
	2022 Total £	2022 Total £
Balance B/F Amount Released to Income during the year Amount deferred in the year Balance C/F	(2,219,158) 2,219,158 (2,282,325)	(2,219,158) 2,219,158 (2,282,325)
	(2,282,325)	(2,282,325)

THE GEOLOGICAL SOCIETY OF LONDON

Annual report and financial statements for the year ended 31 December 2022

25 Financial instruments

25 Financial instruments
Analysis of Financial Instruments	Group		Charity
	2022 Total £	2021 Total £	2022 Total £	2021 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	6,474,106	7,752,463	6,474,106	7,752,463
	120,330	100,018	226,280	125,480
	79,004 - 316,855 (316,855) 41,326	73,671 - 198,335 (198,335) 26,347	66,291 118,663 316,855 (316,855) 41,326	60,940 38,193 198,335 (198,335) 26,347
	6,594,436	7,852,481	6,700,386	7,877,943
	650,495	292,439	650,495	292,439

being: - Trade creditors Group undertakings Accruals and deferred income _Less_accruals and deferred income Taxation and social security Other creditors	524,298 - 2,750,908 (2,750,908) 55,822 70,375	166,403 - 2,646,823 (2,646,823) 51,112 74,924	524,298 - 2,750,908 (2,750,908) 55,822 70,375	166,403 - 2,646,823 (2,646,823) 51,112 74,924

In the above table, the debtors and creditors are fully set out for completeness. To the extent prepayments, accrued income, accrued expenditure and deferred income are not required to be disclosed as a financial instrument, they are reversed.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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
	2022 Total £	2021	2022 Total £	2021	2022 Total £	2021	2022 Total £	2021
		Total £		Total £		Total £		Total £
Balance brought forward: Income in year: Expenditure in year: Transfers in year: Corporation Tax Gains and losses: Balance carried forward:	7,369,030 5,072,303 (5,050,844) - - (527,340)	7,234,603 4,801,965 (5,192,321) 30,972 - 493,811	930,231 49,802 (49,306) - - (79,751)	881,528 64,783 (67,042) - - 50,962	2,437,360 - (54,975) - - (294,503)	2,293,870 - (16,984) (30,972) - 191,446	10,736,621 5,122,105 (5,155,125) - - (901,594)	10,410,001 4,866,748 (5,276,347) - - 736,219
	6,863,149	7,369,030	850,976	930,231	2,087,882	2,437,360	9,802,007	10,736,621

Summary of Funds (Charity only)	Unrestricted		Restricted		Endowment		Total Funds
	2022 Total £	2021	2022 Total £	2021	2022 Total £	2021	2022 Total £	2021
		Total £		Total £		Total £		Total £
Balance brought forward: Income in year: Expenditure in year: Transfers in year: Corporation Tax Gains and losses: Balance carried forward:	7,364,277 5,051,546 (5,030,087) - - (527,340)	7,229,850	930,231 49,802 (49,306) - - (79,751)	881,528	2,437,360 - (54,975) - - (294,503)	2,293,870	10,731,868 5,101,348 (5,134,368) - - (901,594)	10,405,248
		4,801,125 (5,191,481) 30,972 - 493,811		64,783 (67,042) - - 50,962		- (16,984) (30,972) - 191,446		4,865,908 (5,275,507) - - 736,219
	6,858,396	7,364,277	850,976	930,231	2,087,882	2,437,360	9,797,254	10,731,868

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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.

e. Other general funds

This consists of small balances of unrestricted funds accumulated over the years.

Designated funds: -

f. 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.

g. 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.

h. Futures Fund

A designated fund taking sums from the Society’s free reserves to invest in large-scale, future-focused or revenue generation initiatives. The November 2021 Council approved taking forward the Futures Fund with an initial sum of £250K to be ring-fenced from 2022.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

i. Other Designated Funds

Consolidated Analysis of Unrestricted income funds	Balance Balance B/fwd Income Expenditure Transfers Gains C/fwd £ £ £ £ £ £
*General funds -* a. General Fund 368,824 4,992,203 (5,014,883) - 18,028 364,172 b. Curry Funds 2,867,945 44,112 (19,804) (250,000) (300,340) 2,341,913 c. Mills Fund 326,435 5,021 (2,254) - (34,185) 295,017 d. Coke Fund 2,000,186 30,765 (13,812) - (209,465) 1,807,674 e. Other General Funds 48,323 - - - - 48,323 Sub-total: 5,611,713 5,072,101 (5,050,753) (250,000) (525,962) 4,857,099 *Designated funds -* f. Constituted groups 140,109 202 (91) - (1,378) 138,842 g. Buildings Fund 1,617,208 - - - - 1,617,208 h. Futures Fund - - - 250,000 250,000 Sub-total: 1,757,317 202 (91) 250,000 (1,378) 2,006,050 Grand Total: 7,369,030 5,072,303 (5,050,844) - (527,340) 6,863,149	368,824 4,992,203 (5,014,883) - 18,028 364,172 2,867,945 44,112 (19,804) (250,000) (300,340) 2,341,913 326,435 5,021 (2,254) - (34,185) 295,017 2,000,186 30,765 (13,812) - (209,465) 1,807,674 48,323 - - - - 48,323
	5,611,713 5,072,101 (5,050,753) (250,000) (525,962) 4,857,099
	140,109 202 (91) - (1,378) 138,842 1,617,208 - - - - 1,617,208 - - - 250,000 250,000
	1,757,317 202 (91) 250,000 (1,378) 2,006,050


Charity Only Analysis of Unrestricted income funds	Balance Balance B/fwd Income Expenditure Transfers Gains C/fwd £ £ £ £ £ £
*General funds -* a. General Fund (129,012) 4,971,446 (4,994,126) - 18,028 (133,664) b. Curry Funds 3,361,028 44,112 (19,804) (250,000) (300,340) 2,834,996 c. Mills Fund 326,435 5,021 (2,254) - (34,185) 295,017 d. Coke Fund 2,000,186 30,765 (13,812) - (209,465) 1,807,674 e. Other General Funds 48,323 - - - - 48,323 Sub-total: 5,606,960 5,051,344 (5,029,996) (250,000) (525,962) 4,852,346 *Designated funds -* f. Constituted groups 140,109 202 (91) - (1,378) 138,842 g. Buildings Fund 1,617,208 - - - - 1,617,208 h. Futures Fund - - - 250,000 250,000 Sub-total: 1,757,317 202 (91) 250,000 (1,378) 2,006,050 Grand Total: 7,364,277 5,051,546 (5,030,087) - (527,340) 6,858,396	(129,012) 4,971,446 (4,994,126) - 18,028 (133,664) 3,361,028 44,112 (19,804) (250,000) (300,340) 2,834,996 326,435 5,021 (2,254) - (34,185) 295,017 2,000,186 30,765 (13,812) - (209,465) 1,807,674 48,323 - - - - 48,323
	5,606,960 5,051,344 (5,029,996) (250,000) (525,962) 4,852,346
	140,109 202 (91) - (1,378) 138,842 1,617,208 - - - - 1,617,208 - - - 250,000 250,000
	1,757,317 202 (91) 250,000 (1,378) 2,006,050

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.

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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 252,992 3,892 (1,747) - (26,499) 228,638 b. Alan & Charlotte Welch Fund 295,165 4,541 (2,039) - (30,916) 266,751 c. Other Restricted Income Funds 382,074 41,369 (45,520) - (22,336) 355,587 Grand Total: 930,231 49,802 (49,306) - (79,751) 850,976	252,992 3,892 (1,747) - (26,499) 228,638 295,165 4,541 (2,039) - (30,916) 266,751 382,074 41,369 (45,520) - (22,336) 355,587

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. During 2021, a decision was made to draw down significantly more funds from the Fermor endowment to support research compliant with the stipulated conditions of the 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.

Analysis of Endowment funds	Balance Balance B/fwd Income Expenditure Transfers Gains C/fwd £ £ £ £ £ £
a. Fermor 2,369,391 - (49,921) - (286,292) 2,033,178 b. Robert Scott 67,969 - (5,054) - (8,211) 54,704 Grand Total: 2,437,360 - (54,975) - (294,503) 2,087,882	2,369,391 - (49,921) - (286,292) 2,033,178 67,969 - (5,054) - (8,211) 54,704

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

30 Summary of net assets by funds category

30 Summary of net assets by funds category
Summary of Net assets by funds category	2022 Total £	2021 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:	1,894,624 4,270,010 698,515	1,656,081 5,199,306 513,643
	6,863,149	7,369,030
	100,284 541,184 209,508	111,904 561,172 257,155
	850,976	930,231
	- 1,998,483 89,399	- 2,110,102 327,258
	2,087,882	2,437,360
	9,802,007	10,736,621

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.

or held as fixed assets.
Calculation of Free reserves	2022 Total £	2021 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:	4,270,010 2,089,509	5,199,306 1,904,776
	6,359,519 (2,006,050)	7,104,082 (1,757,317)
	4,353,469	5,346,765

In 2022, Council agreed to a revised risk-based method to determine a free reserves target. The method requires future income and expenditure to be assessed for reliability and commitment respectively, with sufficient reserve to be set aside to mitigate unforeseen adverse changes to predicted income and expenditure. In addition, future planned capital and project expenditure and contingency is taken into account to ascertain the minimum reserve to set aside on any year. The proposed reserve figure is examined by FPC and a recommendation is put before Council for approval.

Determination of Free Reserve Requirement	2022 Total £000	2021 Total £000
Free reserves as calculated above: Provision for unforeseen shortfall of income over expenditure in next financial year Provision for future capital expenditure, future income over expenditure shortfalls and contingency Reserves Target Free Reserves expressed as a percentage of Core Operational Expenditure:	4,353 608 1,767 2,374	5,347 749 1,818 2,567
	183%	208.3%

THE GEOLOGICAL SOCIETY OF LONDON Annual report and financial statements for the year ended 31 December 2022

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	2022 Total £	2021 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:	14,551 110,705 (120,500)	12,733 30,218 (38,195)
	4,756	4,756
	4,754 2	4,754 2
	4,756	4,756

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	2022 Total £	2021 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	86,494 - (20,758)	7,482 - (840)
	65,736 - (65,736)	6,642 - (6,642)
	- -	- -
	-	-

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

33 Reconciliation of net income to net cash flow from operating activities
Reconciliation of Net income to net cash flow from operating activities	2022 Total £	2021 Total £
Net income for the reporting period as per Statement of Financial Activities: -788823 *Adjusted for -* Depreciation charges: 322866 (Gains) / losses on investments: -427473 Impairment loss on tangible and intangible fixed assets Dividends and interest from investments: -227702 (increase) / decrease in stocks: (68,553 (increase) / decrease in debtors: (138,832 Increase/ (decrease) in creditors: 462,141 *Net cash provided by operating activities:*	(902,757) 209,560 869,737 - (131,278) ) (68,553) ) (138,832) 462,141	304,336 284,836 (713,935) 493,083 (127,143) (11,212)
		35,030 404,707
	300,018	669,702

THE GEOLOGICAL SOCIETY OF LONDON

Annual report and financial statements for the year ended 31 December 2022

34 Analysis of cash and cash equivalents

34 Analysis of cash and cash equivalents
Analysis of Cash and cash equivalents		2022 Total £	2021 Total £
Cash in hand: Notice deposits (less than 3 months): Total cash and cash equivalents:		3,002,110 586,130	2,060,703 1,373,414
		3,588,240	3,434,117

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	£ £ £ £ 3,434,117 154,123 - 3,588,240 - - - -
	3,434,117 154,123 - 3,588,240 - - - -
	3,434,117 154,123 - 3,588,240

35 Operating Lease Commitments

35 Operating Lease Commitments
Operating Lease Commitments	2022 Total £	2021 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:	7,375 6,336 -	6,772 13,455 -
	13,711	20,227

36 Taxation

36 Taxation
Taxation	2022 Total £	2021 Total £
The tax charge on the profit for the period was as follows: UK Corporation Tax at 19% Tax on Profit	-	-
	-	-