Trustees, Annual Report
and Accounts
for year ended 31 December 2020
Company number: 323575
Registered charity: 211585
www.physoc.org
The
Physiological
Annual Report and Accounts
Company No. 323575
Contents
Introduction Irom Presh4enrand Chief ExecuiNe
Report oftheTrustee5
Charitable obiects3ndwbli¢ behefft
Strate8icaims and performance
siru¢ture, 8o¥emance•nd Mana8tnt
Siinins ol rewrt
independent avdil(Vsreport
51aternentof financ1 actryitse5
St4terneDt of cash IILr*4s
A¢c¢vThiirt8 p¢licles
Note5 to the Iinancial statements
Inwme from charitèb* acti¢
Incomefrom in¥estmentS
Analwsolexpendituie
ADI150f supportaDd80s*rTranee<05ts
Anal$01 8rants
Related partytrnnsadi¢Jns
Investment property
7.LO
Investments
7.11
Debtors
7.L2
Creditor5
7.13
Deferred incame
7.14
Anal$01 net lunds
Reconciliation of net MotMent infundstonet tashfiow fvomoForatinRartlts
Ana150f cash and ca5hequwalenrs
Comparatlve SoFApei FRS 102 ISORP20151
514nding InlDTm?tyon
7.15
7.16
7.17
The
Physiological
Annual Report and Accounts
1.1 Report of the Trustees
The Trustees are pleased to submit this report and the financial statements for the year
ended 31 December 2020.
Thi5 15 the Trustee5' Annual Report and Accounts for the year ended 31 December 2020 for The Physiological
Sotiety I'The Society"). In preparing this report, the Trustees have complied with the Charities Att 2011, the
Companies Act 2006, the Articles of A550ciation I"Articles-I, and Accounting and Reporting by Charities..
Statement of Retommended Practice applicable to tharities preparing their atcounts in accordance with the
Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021.
The Society was incorporated by guarantee on 27 January 1937 under number 323575. It has no share capital and
is registered with the Charity Commission for England and Wales under number 211585. The liability of each
member is limited to £1.
The governing document is the Articles of the Company. and the members of the 8oard of Trustees 1.the Board")
are the Directors of the Company.
he Physiological Society~ and The Physiolo8ical Society logo are tra(Jemarks belon8ln8 to The Society and are
reglstered in the UK and in the EU, respectively.
The Society also produces an Impact Report which features further information on the activities of The Society,
including reports and case studies which demonstrate the impact of our work over 2020. The Impact Report can
be obtained from the registered office, Hodgkin Huxley House, or online from www.physoc.or8.
Trustees, responsibilities
The Trustees, as Directors of the charitable company. are responsible for preparin8 the Trustees, Report and the
financial statements in accordance with applicable law and regulations.
Company law requires the Trustees to prepare financial statements for each financial year. Under that law, the
Trustees have elected to prepare the financial statements in accord3n¢e with United Kingdom Generally Accepted
Accountlng Practice (United Kingdom Accountin8 Standards and applicable13wl. Under company law, the
Trustees must not approve the financial statements Unless they are satisfied that they give a true and fair view of
the state of affairs of The Society and the income and expenditure for that year. In preparing these financial
statements, the Trustees are required to..
select suitable accounting policies and then apply them consistently;
observe the method5 and principles in the Charities Statements of Recommended Practice;
make judgement5 and accovnting estimates that are reasonable and prudent;
prepare the financial statements on the Éoing con¢em basis unless it is inappropriate to presume that the
company will continue in business..
state whether applicable UK Accounting Standards have been followed. subject to any material
departures disclosed and explained in the financial statements.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain The
Society's transattions and disclose with reasonable accuracy at any time the financial position of The Society and
enable them to ensure that the financial statements comply with the Companies Act 2006. They are also
responsible for safeguarding the assets of The Society and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The Trustees have tonfirmed that as far as they are aware at the time the report is approved. there is no relevant
audit information of which The Society's auditors are unaware. They have taken all steps necessary to make
themselves aware of any relevant audit information and to establish that The Socievs auditors are aware of that
information.
The
Physiological
Annual Report and Accounts
1.2 Financial Highlights
Our principal funding sources were from publications- £4,023.00012019: £4,094,000),
events- £3,000 {2019: £159.0001, membership - £61,00012019: £153,000) and
investments and investment property- £365,000 (2019: £397,000).
Overview of the year
Charitable expenditure of £3,565,00012019.. £4,656,0001 wa5 incurred during the year and ha5 SUPPOrted our
charitable obje¢ts as set out in the statement of financial activities on page 25 of this report.
Publishing income190% of total income) fell slightly by £71,C(Q11.7%1.
Events income in 2020 decreased by £156.OCQ. from £159.(W in 2019 which included Physiology 2019. The
Society's first 'solo' Annual Conference for a number of years. The impact of the COVID-19 pandemic led to the
cancellation and delay of The Societ¢s portfolio of events as face-to-face meeting5 were not POS5ible.
Membership income recognised in the period fell from £I53.oC to £61.000 as a result of a decision to spread the
income across the period of membership. this is a one off accounting adjustment.
Investment fund income, which is all reinvested, fell slightly by £31,C(O116%1. Rental income associated with the
rental of space in Hodgkin Huxley House held static at £204,000 compared to £205,OCQ in 2019. To help safe8uard
the property asset, £500,CQO has been des18nated to reflect the ten-year building maintenance programme.
The impact of COVID-19 led to the postponement of a number of costs, external and internal meetings, travel
grants, public engagement activities and policy and communication activities were all impacted with an overall
reductlon In Charitable spend of £1,091,0 over the prior period.
The impact of these costs not occurrin8 tO8eiher with the relative strength of publishing in a pandemlc year and
other income has led to an operatin8 surplus of £865.OCQ compared to £122.000 in the prior year. The surplus
has arisen because of the impact of the COVID-19 pandemic on the planned expenditure for the year and the
Trustees have therefore designated the total surplus for the year to a COVID-19 fund.
Investment performance
Following the net gain of £972,000 from the investment portfolio in 2019 the current turbulent year ended up
returnin8 a £464,000 gain representing a 5.9% return. The cash held on 190-day deposit matured towards the
year end and was held within cash at the balance sheet date. As a result of this change oftset by the gain for the
vear the total value of listed investments and cash held within the portfolio decreased from £9,9S7,000 to
£9,524,IX)O.
As a result of the pandemic The Society has reviewed the carrying value of the portion of Hodgkin Huxley House
held for investment purposes and based on local evidence have reduced the carrying value by £514,000 as at 31
December 2020, to reflect both the uncertainty in the commercial property market and subdued demand as at
that date.
The Society's investment policy. which takes into account the underlying investment in Hodgkin Huxley House. is
to achieve long-term capital growth which can ultimately provide a significant income Stream, regardless of
fluctuations in our publishing income, to support key charitable activities.
The
Physiological
Annual Report and Accounts
The long-term investment target is inflation, as measured by Consumer Price Index ICPII, plus 4%. A composite
benchmark, across three asset classes, is used in the quarterly valuations. In 2020, the manaÈed portfolio
returned a gain of 5.9% while the inflation target ICPI + 4.0%) amounted to a @ain of 4.S%. The composite
benchmark returned a gain of 5.9% for the same period. The Society invests in collective investments (unit and
investment trusts). This is designed to give a protective broad level of diversification across all major asset classes.
Cazenove Capital Management ICCMI. our fund managers. have general discretion over the asset allocation and
selection of investments within pre-agreed investment parameters as set out in our Investment Policy Statement.
In 2021 The Society engaged consultants PWC to develop a new Investment Poliry Statement IIPSI which better
supports The Society's goals including incorporating a more robust Responsible Investment Policy statement. as
well as review potential fund managers, which would inclLbde the incumbent, to mana8e The Society's portfolio
under the new IPS.
Reservps Policv
The society's current ReseNe Policy is a risk based policy that will help to achieve The Societvs objectives, as set
out in the 2018- 2022 Strategy. This risk-based policy was developed by the Finance Committee following an
escalation of The Society's publishing income risk and also following updated guidance from the Charitv
Commission, which require5 the Reserves Policy to be clearly laid out with strong justifications on why the stated
reserves are needed. The new policy balances the need to hold back reserves to mitigate the publishing income
risk but also signals intentions to fulfil charitable objects for current beneficiaries le.8. strategic projects). In
addition, a proportion of the funds have been set aside for sustainability and income diversification initiatives.
The major exposure in The Society's income portfolio is its dependence on publishing income, which represents
around 90% of annual iurnover. The hiBh commitment to expenditure allied to substantial exposure to a single
sourte of income is a major risk to the organi5ation. The Society has designated a Continuity Fund1£5.6ml to
mitigate this risk and provide medium-term stability. The Continuity Fund ensures sufficient time to transition to
alternative operating models, in an orderly fashion, shoul¢J publishing income collapse. The Continuity Fund
represent$ 24 months operatin8 costs ex¢lvdin8 publishing, grants expenditure and one-off costs. These are
around 40% staff costs that cannot be immediately adjusted in a new operating environment.
The Society has further designated a HHH Property Fund1£4.823.c((Jl comprising the current carrying value of
The Society's freehold property in London. currently split between tangible fixed assets (held at depreciated costl
and investment property Iheld at market value). and as such it is not available to meet the general running costs
of The Society. As well as non-property fixed assets. £0.5m has been designated to an HHH Maintenance Fund to
recognise essential future spending associated with the maintenance of the freehold property.
The Strategic Investment Fund will be allocated to new activities and specific major projects Specified in the 2018-
22 Strategic Plan, for example, an Innovation Fund to support sustainability and income diversification, for which
a sum of £l,l(X),000 ha5 been de518nated.
COVID-19 Fund
As reported above The Society has designated the surplus arising in 2020 of £865.CN)O into a specific COVID-19
fund..
to acknowledge the one-off nature of these monies and the need to fund a number of delayed activities
into the future to raise the visibility of The Society and the discipline,.
to support any shortFall in incorne from publications due to the uncertain landscape,.
to tover the costs of external tonsultanty 5UPPOrt where spÈtiali5t knowledge, expertise and
independent professional opinion is required. for example to build membership engagement and
numbers alongside and increasing inclusion and diversity across The Societies activities..
The
Physiological
Annual Report and Accounts
to provide 5UPPOrt for hybrid conference5 which by their nature are more re50urce intensive to run wtth a
physical venue and a virtual platform whith is essentially another venue which must be paid for alongside
additional production and staffing costs.
The Society hold5 the balance of reserves to ensure it can meet its operational need5 and working capital
requirements (the free reserve). The free reserve aims to hold approximately six months operating costs,
currently £1.8m excluding third party operating costs and grants. to provide operational cash flow. At 31
December free reserves held totalled £3,497,CIJO, however since the Balance Sheet date the growing uncertainty
in the academic publication sector means there is likely to be an ongoing redurtion in income and these available
reserves may need to be utilised.
Frnnk 5engplel
Honorory Treasurer
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The
Physiological
Annual Report and Accounts
Objective
Activity
Perlormancelimpact
Building the community
Our Editorial Board Fellowship
scheme, which invites early-c3reer-
stage physiologists to apply to join
the Editorial Board of IP under the
mentorship of a Senior Editor.
continued to attract many
outstanding applications.
Out of 63 applications in 2020, eight
new Fellows were appointed. Four of
the original cohort of Fellows (from
20181 proved to be of such a high
calibre that they were appointed as
Reviewing Editors.
In order to Promote wide
readership and signal our interest in
attractinB submissions from more
Countrie5 worldwide, we hosted
webinars in with local Editors in
Chin3 and Brazil, with translations
of key messages in the attendees.
native language.
Both JP and EP appointed new
Editors in China. Board
appointments have also been made
in currently under-represented
countrie5 including Germany and
Hungary.
In order to engage more junior
We hosted nine VJC webinars in 2020
readers of JP. in 2020 we embarked land already have our calendar full for
on a new scheme called the 'Virtual 20211 and a had good number of
Journal Club, IVICI. which invited
attendees participating in discussions.
eligible hosts to present their
review of a recent research article
of interest published in the journal
to a wide audience.
Improved quality of submissions from
these countries.
Developing the brands
In 2020 JP introduced a new service Clear, professional and journal-
for authors- access to our
branded schematic figures in article5,
premium BioRender account that
which, when shared and re-used
enables authors to create visually
promote JP'S brand and commitment
appealing and scientifically accurate to authors by offering this service.
schematic figures.
EP introduced a new feature.
EPicks.
These short11-2 minl researcher-led
videos celebrate our authors, research.
The videos are usually from the junior
author on the paper. They help build
author loyalty and increase
accessibility of research to the wider
community.
The
Physiological
Annual Report and Accounts
Raising the bar for scientific
integrity
EP introduced 3 new article type
called Registered Reports. In these.
a research question and proposed
methods are evaluated for
suitability prior to any data being
collected.
The Registered Reports scheme helps
authors refine experimental design
and data analysi5. reduces publication
bias and improves reporting of results,
irrespective of the outcome of the
study. The first protocol submission
has been reviewed and published.
Transition to Open Access
JP and EP are part of Wile5 new
read-and-publi5h deal with li5C,
covering authors in UK HEIS.
With the Jisc deal, IP and EP are
compliant with Plan S (which took
effert on 1st January 20201 in the
countrie5 where the cOAlition S
funders are active. This is in line with
the objective of complying with or
exceed funders. OA mandates. Phys
Rep was born OA.
Future Plans- 2021 and beyond
Adoption of Open Sclence Ba¢Jges
scheme.
Roll out of new EP statistics policy
Publishing peer review reports.
Improved IFAS to guide authors,
writing Style for better
communication of research.
Introduction of abstract figures for
JP research articles.
Conferences
Advancin8 physio108y through our conferen¢es.' excellent science, wide and artive participation, lastin8 impact
Researchers go to scientific conferences to present new work and get feedback on it from their peers, to make
connections with other 5cient15ts, to learn about new research, technique5 and ideas, and to catch up with friends
and colleague5. Conferences also have a role in setting the dirertion of research, particularly by highlighting hot
topics. Through its programme of meetings, The Society showca5e5 phy5ioIo8ical research, spotlights new areas of
discovery, delivers training for early career re5earcher5 and provides an opportunity for phy5ioI0815t5 to interact.
2020 felt like a watershed year for academic conferences. With travel restricted and venues closed f¥om March
onwards, the Trustees made an ear decision not to hold in-person events for the rest of 2020.
Having a clear-cut decision allowed the Events team to=
Mitigate the financial loss through cancellation of bookings;
To postpone meetings and individval symposia to 2021 and 2022,.
To avoid reputational damage to The Society through leaving would-be attendees in limbo and to focus
on how we might replace the 2020 programme.
The Society's strategy for 2018-21 referred to-a prediction that rising travel co%t% and the advent of sotial-media
communities would signal the end of the academic conference~. When the pandemic struck the Events team was
io
The
Physiological
Annual Report and Accounts
Objettive
Activity
| Pertomiancelimpact
'excellent' and all 5Bid they wotjld recornmend the
club to 3 colleague, collaborator, or peer.
on webinars arhd with membership on
the 2020 Member Forum.
We also hosted Wariability.. How to Deal with It,
Interpret It, and Learn from It, where the attendance
wa5 231.
Ensure evaluation Online allows easy collection of digital
is ernbedded into
data on user behaviour.
our programme5
Being able to collect data on user behaviour is
invaluable in informing and refining plans for future
online conferences. Networking meetings after the
Virtual Journal Club meetings were implemented
following attendee feedback.
The activities in 2020 have demonstrated the
importance of maintaining audience engagement for
online conferences and this is a priority for 2021,
particularly gamification.
Introduce more
audience
participation
With the switch to online we have seen
a surge of innovation in software
enabling hosting of conferences.
including real-time interaction between
speakers, chairs. and audience. Manv
platforms offer gamification which
awards points based on an attendee's
behaviour eg for watching a talk. asking
questions etc.
AII 2020 meetings were in a new style.
The impact of the 2020 online conferences and
The virtual 2-day meeting on variability
webinars means that going forward they will be an
will be followed up by an in-person one- important addition to The Society's meetings
day workshop.
calendar.
Online events have low fixed costs, a
Having successfully delivered online events means
near-zero marginal cost ol attendance
that they will play a role in our plannin8 either as a
and involve no travel. Althou8h most of stand-alone event or as part of a hybrid event which
the virtual events were free, there was
would have an in person and virtual component.
a small ¢har8e for non-members to
attend the Variability.. How to Deal with
It, Interpret It, and Learn from It
webinars. The Events team is exploring
registration charges for hybrid events.
Online frees event5 from geographical
¢onstraint5 Other than tiffle zone5 afbd
differences in access to technologv.
Research
opportunities for
new styles of
meeting
Agree a
sustainable
business model
lor our meetin85
programme
Ensure there is
Beographical
spread to the
meetings we
deliver
We have seen a significant increase in the number of
countrie5 attending our events. For example, 18
countries attended Future Physiology 2019 in
Liverpool and 36 countries attended Future
Physiology in 2020.
With much of the 2020 and 2021 programme
postponed to 2022. the impact of this is yet to be
seen.
Review the roles
of the Theme
Leads and
Meetings
Committee to
ensure that we
are using the
right group to
Some of the Theme Leads were
involved in arrangin& and promotin& a
well-attended series of Theme-based
webinars. including 12 of the physiology
of obesity. A new team of Early Career
Theme Leads was enlisted in late 2020
and quickly played an important part in
organising Future Physiology 2021.
12
The
Physiological
Annual Report and Accounts
Objective
decide on
Four new member5 were recruited to
programmes and Conferentes Committee to replace
content
positions and improve diversity.
Activity
| Perlormancelimp3ct
Engagement
Engage for success- improving our two-way commitment and communication to increase recognition of the
importance of physiology
The goal of the engagement strategy is to increase awareness of physiology in order to strengthen the pipeline of
physiologists across the discipline. The successful achievement of this goal will be measured by an increase in The
Society's membership numbers and the number of engaged members.
As part of an agile response to the pandemic. The Society adapted its activities and resources to support
members livlng and working in unprecedented circumstances. The Society consolidated existing resources and
built new ones to respond quickly to the ch3n8in8 landscape. The ~COVID-19 Hub" was launched as a go-to area
on the website to make it easy for members to access and keep up to date on all the activities to support them.
Beyond our response to the pandemic. we continued to work on strengthening The Society through building our
support and activities committed to increase diversity and inclusion within physiology.
Our communications activity engaged our strategic target audiences. responding to the COVID-19 pandemic by,
for example, producing a series of rapid response information videos to inform the public about physiological
aspects of the disease. Our policy work enBaBed key stakeholders to raise the visibility of physio108y among
funders, higher education institutions, public health organisations and policymakers.
Objective
Performance/imp3ct
Increasing the level of The Society completed a review of its
The Impact of the new membership categories
engagement of our
membership categories with a view of
will take time to emerge. but the categories
members and the
increasing the accessibility of
complement our diversity and inclusion work to
number delivering
membership to all those working within
increase access to non-academic physiologists.
engagement activities
physiology- whether within or outside of Movin8 to an online format enabled The Society
academia.
to run webinars to support a range of
communities within our membership le.g. those
that are teathing, underÈraduates, or early
career researchers). We worked with our
members to identify and deliver webinars and
reSourS appropriate for the environment and
audience.
Throughout the pandemic The Society
ran three programmes of professional
development and support webinars that
were co-created with members.
13
Annual Report and Accounts
The
Physiological
Objective
Activities
Perfomiance/impact
Increasing the number
of young people
choosing to study
physiology-based
courses through
traditional routes and
emerging educational
options.
In 2020. 20 undergraduate members
were awarded a summer studentship,.
this scheme provides undergraduates
with funding to undertake an 8-week
research project in the lab of a member.
The summer studentship provides an importhnt
opportunity for students to validate or inform
their plans for a researth tareer in physiologv.
Of the 20 students awarded, not all were able to
take up their funding in 2020 and The Society
was flexible with the option to defer funding
until 2021.
In 2020, The Society launched a
competition aimed to increase the take
up of higher education in physio108y
called "Aspiring Black Physiologists"
Aspiring Black Physiologists provides funding for
members to go into schools to highlight Black
physiologist5 that worked or are working within
physiology. The competition is for Black students
to write about their own experiences or the
experience5/wtsrk of Black physiolo8lSts that
have gone before them.
The physiology curriculum has been accepted bv
the GMC into the undergraduate medical
curriculum, thereby increase the visibility of
physiology amon8 clinician5 and improving the
physiology education medicèl students receive.
Developing a policy
and funding
environment
favourable to
physio108y
We carried out three significant policy
projects.. lil producing a physiology
curriculum for medical students,. lill
explored physio108y's contribution to
keeping older people healthy during the
COVID-19 pandemic,. and liiil reviewed
the sc3le of knowledge exchan8e activity
undertaken by physiolo8lSts and how this
can be increased.
Our COVID-19 report was launched at a virtual
meeting of the Parliamentary & S¢5entlflc
Committee, and recommended a 'national
resilience programme, and helped set the
agenda at a political and public policy level. It
established TPS role within public health.
Our knowledge exchange project has
established links with industry. funders and
policymakers. as well as bolstering our member
offering. and The Society is sector leading in this
approach.
Our public infom)ation videos were watched by
820,0(M) people, with the COVID-19 Hub on our
website visited by almost S0,0(K) people.
Increasing the
understanding of
physiology among our
target audience and
increase the visibility
of physiological
research in the media
in particular, the
importance of
physiology to lifelong
health
In response to COVID-19 we launched a
series of information31 videos with a
physiologist explaining 3 key. timely
aspect of the disease and the public
health response to it.
14
Annual Report and Accounts
The
Physiological
Objective
Activities
Perfomiance/impact
Future Plans- 2021
and beyond
In 2021. we will be working to intrease
the engagement of our members and to
attratt new members in the Full member
category. We will be unveiling a series of
Blue Plaques across the UK to recognise
key historical figures in physiology- at
each unveiling there will be a guest
speaker and a series of short talks aljout
Society membership. We will also be
launching an online member community
area to encourage networking and to add
value to membership with additional
member-only resources.
Our policy plan for 2021 builds directly on
our 2020 activities. with further projects
focused on key areas required for the
delivery of our strategic objectives. This
will include a focus on improving the
landscape for interdisciplinary research
and analysing the impact of physio108V
hi8her education.
Internal processes
Harnessing technology, working smarter. increasing transparency and improving performance to support delivery
of the strategv
Driving forward a successful strategy relies on appropriate and efficient systems and processes to underpin
activity delivery. This includes infrastructure, financial planning, 8oveman¢e and administration.
All our operational processes were adapted to the response to COVID-19 in 2020, which included the lockdown
closures of Hodgkin Huxley House. The Society was well placed to facilitate all operational processes whilst staff
worked fmm home throughout 2020. with all business-critical systems cloud based, providing accessibility to all
systems. and facilitating meetings and collaboration throughout lockdown. All staff were provided with the
necessary support and resources to operate a remote working situation. and The Society provided a successful
programme of remote training for all staff. The Socie$ financial processes. which were in part paper based,
were migrated to a new online payment processing and authorisation platform. and our 2020 audit was
successfully concluded entirely remotelv.
Whilst Hodgkin Huxley House was unoccupied during the highest level of COVID-19 restrictions, the building was
made COVID-19 ready in accordance with the government's COVID-19 Risk A55essment Framework, allowing The
Society to safely reopen the building to those staff and tenants struggling to work from home. Despite the
c105ures and restrictions throughout 2020, Hodgkin Huxley House maintained full tenant rental income, and a
small redLJCtion in service tharge intome and expenditure. Throughout 2020, the essential maintenance
programme at Hodgkin Huxley House was maintained.
15
Annual Report and Accounts
The
Physiological
2020 saw the restrutturing of the Operations Team. The new structure is led by a new Head of Operations role,
and incorporates a new Business & Operations Man3Èer role, and an uplift in the use of our outsourced finance
partners lat both a director and administrative level).
The Society was awarded the government's Cyber Essentials certification in 2020. This certification tests the
security of our network. devices. software and platforms. to ensure the data we hold is as securely as possible.
complementing our continued commitment to Data Protection regulations.
Objective
Performancelimpact
During 2020, we reviewed and upgraded
It has been beneficial during this period of
our payroll system moving from paper
homeworking and lockdown for staff to be
payslips to online payslips.
able to acce5S their payment profile online
The review involved benchmarking systems and payslips. The impact can also be seen by
used by other or8anisations, researching
HR with the reduction in their time and the
different providers, and seeking quotes
costs associated with p05ta8e. The system
nd online demonstrations from our
also allows for HR to have more control and
preferred options.
transparency over what is entered into the
system.
Oeveloping the
organisation and
infrastructure
Durin8 the previous year and the difficult
clrcumstances, we maintained a full
Feedback has shown staff have contlnued to
programme of training for all staff.
feel developed, supported, and included
Adapting to the circumstances at this time, with our trainlng and team bulldln8
the training and workshops were held
pro8rammes.
virtually. The all-staff training focused
particularly on ways of working such as
building empathy. and the tools to provide
managers and staff to be able to give and
receive effective feedback. We also
focused on diversity and inclusion.
The Society continued to invest in staff
specific learning and development
programmes.
Alongside the training and to support team
buildin8 and bonding, we also held a virtual
away day and social team building events.
Our new Ways of Working Policy, adapted
for homeworking lent itself to ensuring
staff were supported while working
remotely and gave svgge5tion5 and
signposted resource5 to support good
mental health.
In 2019 the Finance Commtttee at their
noted that The Society had been with the
The Society will conduct its first audit with
new auditor Buzzacott in 2021.
16
Annual Report and Accounts
The
Physiological
Objettive
Activities
Performancelimpact
Incumbent auditor5 for nearly 20 year5. It
was felt that it would be good practice to
rotate audit firms with some regularity.
The following process was then approved
for rotation of auditois.
A full review and tender process
every terh years.
Incumbent auditors Can be
reappointed annually by Council.
subject to satisfactory
performance, up to a maximum of
ten years. partners to rotate after
five years.
In 2020 Finance Committee made a
recommendation to the Board to the
approve the new auditors who were
selected to bring the right combination of
qualifications, experience, techrl081eS
and approach to the task.
Developlng a hl8h-
performance Board
David Paterson stepped up as President in
The Board ran smoothly in 2020 after the
November 2020 and the David Attwell was
2019 adoption of the new 8overnance
appointed by the Board as President-elect.
structure and revised Articles and
Lucy Green stepped up 35 the new Chair of Regulations. Good communlcation between
the Education, Public Engagement and
Trustees, the Chief Executive and the senlor
Policy Committee IEPEPI. Daniel Brayson
Management Team enabled The Society to
was elected as first Early Career Trustee.
be innovative and agile to navigate the
Honorary Treasurer Frank Sengpiel agreed
unforeseen disruptions due to COVID-19
to an extension of his role by a year to
pandemic while continuing to deliver the
provide stability during COVID-19 and
strategy. The Board was able to run
allow for a second round of recruitment.
meetings effectively by Zoom and continued
Catherine Hall was appointed as the
to make important decisions and hold
incominE Chair of Conferences and Paul
insightful conversations. The transition to a
McLouEhlin as the incominE Chair of
new President and President-elect set the
Publications Committee Iboth to take
stage for a new post- COVID-19 strategy. The
office in November 20211.
appointment of an Early Career Trustee and
new Chair of EPEP120201, and well as
incoming Chairs of Conferences and
Public3tions120211 ensured new skills and
experience as well as fresh perspectives.
The Task Force, chaired by a Trustee
Champion for Diversity and Inclusion,
includes representation from each of the
Advisory Committee5. The Group lead5 work
to ensure that the principles of diversity and
Improving inclusion
The Society established a Diversity and
Inclusion Task Force in 2020.
17
Annual Report and Accounts
The
Physiological
Objettive
Pertormance/impart
Inclusion are embedded across all Bctivitie5
and reports regularly to the Board.
In 2020 we increased our quantitative EDI
data to 18% of members. We have begun to
analyse engagement in activities15uch as
grants) in the context of this data. The next
step will be to build qualitative data.
The Society is building an evidence base for
action towards increasing diversity and
equality of opportunity.
The Society launched a competition
entitled -Aspiring Black Physiologists" to
encourage 16-18 year old Black students to Funding 15 available for members to visit
consider a career in physiology.
schools lin person, or virtually) to highlight
the work of physiologists- in particular Black
physiologists- to encourage Black students
to participate in the competition.
Future plans- 2021
and beyond
Maximising the building revenue potential.
2021 will see our tenant contract5 Teach
their mutual break period, and an end of
our current facilities management
contract. In preparation of this, we will
conduct a property review in 2021. The
results of the property review will ensure
that the buildin8 meeis the future
requirements of The Society as a source of
Income and also meets the needs of our
activities. A recommendation on the
optimum model will made to the Board via
our Finance Committee during 2021.
Utilising new technology platforms. 2021
will see the adoption of new platforms to
better meet our requirements in expenses
and grant management. risk and voting.
together with the implementation of a new
security software.
Competencie5 and training.. 2021 will See a
review of our competency framework. The
competency indicator5 will be
differentiated to reflects roles 3n(I
responsibilities. They will be better able to
help identify where more focused training
is required.
Alongside this development the
Behavioural descriptors are now broader
but continue to underpin The Societrfs
value5.
The Core/Essential Behavioural descriptors
are..
18
Annual Report and Accounts
The
Physiological
Objective
Activities
Performancelimpact
Fostering Teamwork
Effective Communication
Personal awareness
Personal effectiveness
Problem solving
Job knowledge
The SMT specrfic Behavioural descriptor5
are..
Partnership working
Leadership
1.5 Structure, governance and management
Board of Trustees
The Trustees are ultimately responsible for the overall strategy, governance, management and Board policies of
The Society, ensuring that the charitable objects for which it has been set up are met. The Trustees are also the
Directors of the ¢ompany. The Board meets four times a year. Following a skills assessment ea¢h yeèr, any
Sdentified vacancies on the Board are recruited followin8 the processes dictated in the Articles of Associatlon and
Regulations. The normal length of service on the Board is four years. The current size of the 8oard is 13, including
two independent Trustees and an Early Career Trustee. Board meeiings are chaired by the President. From 2021
the General DSrectors shall always Include in their number one person resi¢Jent Sn the Republlc of Ireland.
Trustee induction and training
On appointment new Trustees are provided with an induction pack which includes various information and
resources such a5 the Charity Commission leaflet CC3, the governing documents and Board policies. They are also
required to $18n a Trustee Code ol Conduct agreement and complete a Conflicts of Interest declaration survey.
Trustees attend introductory meetin85 Wlth each member of the Senior Management Team to familiarise
themselves with The Societies activities, strate8y, and priorities. In addition, all Trustees are encouraged to attend
trainin8 courses, for example, those targeted for Trustees run by the Civil Society.
Governance structure
It is the Board of Trustees, collective responsibility to set the strategy to deliver The Society's charitable objects
and to ensure the effective governance of the charity. The Board then in turn delegates details of the governance
oversight and delivery of the strategy to a series of cofflmittees and smaller groups which report back to the
Board quarterly. The three advi50ry committee5 are Conference5, Publication5 and Education, Public Affairs and
Policy. Each Advisory committee has a Membership Champion at established career level,. an early career
Membership Champion,. a Diversity and Inclusion Champion. Thi5 person may also be one of the two Membership
Champions.
The three governance committees are Finan. Nominations. and Remuneration.
Further details regarding the governance of The Society including the Articles of Association. Regulations, Trustee
Annual Reports and Board make-up can be found on the newly updated governance pages of The Societvs
website.
Managcmcnt and adniinistration
The Society has approximately 30 staff and operates out of Hodgkin Huxley House, which was acquired in 2012.
The Chief Executive is the senior executive of The Society appointed by the Board and 15 accountable to the Board
19
The
Physiological
through the Chair. The Board has delegated day to day responsibrlity for the operational decisrons and
administration of The Society to the Chief Executwe to manage The Sociews actwitie5 for optimal performance,
including the plans. setting balanced budgets. property and staffing and other resources of The Society in
accordance with the strategic and budgetary parameters and risk management strategy. All decisions, apart from
those delegated to the Chief Executive as set out in the Delegated Authority Framework, are made by the Board.
Anything outside the approved Strategic Framework or Budget has to be approved by the 8oard. For the efficient
and effective management and proper operation of The Society. the Chief Executive delegates at their discretion
a number of their responsibilities to the Senior Management Team ISMTI and other employees. This further
delegation of responsibilities does not release the Chief Executive from the overall responsibility which has been
delegated to them by the Board.
Key management personnel remuneration
The key management personnel of The Society comprise the Board of Trustees, the Chief Executive and all other
members of the SMT in charge of directing and controlling The Society 3nd running and operating The Society on
a day-to-day basis. All Trustees give of their time freely. and no Trustee remuneration was paid in the year. Details
of all Trustee expenses and related party transactions are disclosed in note 7.7 to the accounts.
Trustee5 have a legal obligation under Charity Law to act in the best interests of The Society, in accordance with
The Society's Articles, and to effectively manage situations where there may be a potential conflict of interest.
The Society adopted a Conflicts of Interest policy in 2019 which details how to identify, manage and report
conflicts of inierest. Trustees and SMT are required to disclose all relevant interests and re8lSter them with the
Governance and Risk Manager and manage them in accordance with The Society's Conflicts of Interest Policv.
Trustees complete an annual declaration of related party interests which infomis the Society's Register of
Interests. The Articles of Association also include a sertion on Conflicts of interests and conflirt5 of loyalty which
stipulate what Trustees must do when they arise.
The pay of the Chief Executive is reviewed annually by the Remuneration Committee, and normally increased in
aceordance with avera8e earnin8s to reflect 3 cost-of-living adjustment. In view of the nature of The Society, the
remuneration 15 a150 benchmarked against similar membership or8ènisations in the sector and the relevant
location, or with reference to sector reports to ensure that the remuneration set is fair and not out of line with
that generally paid for similar roles. While the Chief Executive is spOnSible for determining staff salaries. within
the approved salary budget set by the Board. the provision of such information could be required for due
diligence purposes.
Mombor Forum
Under the newly adopted Articles of Ass¢xiation120191 The Society is no longer obligated to hold an Annual
General Meetin8 and on 20 November 2020 The Society hosted its first annual Members Forum which provided
members with an opportunity to hear from the President, President-Elect, Incoming President-Elect, Chief
Executive, Honorary Treasurer, Incoming Trustees and Editors-in-chief about our activities and future plans. To
retain transparency and enable open discussion between the Board and the membership there was opportunity
for members to ask question5. The Forum concluded with our award5 ceremony, recognising our Honorary
Members, Fellows and Rob Clarke Award winners. We also presented our first ever Award for Exemplary Service
to The Society. Due to COVID-19 restrictions this event had to take place online but was recorded and can be
viewed on The Societws YouTube Channel.. htt
utube.com
WatCh?UNaPoRvofA8
Principal risks and uncertainties
The Trustees identify their approach to risk as aiming to minimise adversity and maximise opportunities to
balance the successful advancement of The Sociews charitable objects with appropriate due diligence and
financial prudence to safeguard a 5UStainable fijture for The Society and for the physiology discipline. Trustees
acknowledge that ri5k-taking at 3 strategic level is necessary for innovation and opportunity and consider a
balance of prudente and venture essential to successtul management of the organisation and realisation of its
objectives.
20
The
Physiological
2 Independent auditor's report to the members of
The Physiological Society
Opinion
We have audited the financial statements of The Physiological Society for the year ended 31 December 2020, which
comprise the Statement of financial activitie5, the balance Sheets, the statement of cash flow5 and the notes to the
financial 5tatement5, includin8 a svmrnary of significant accounting policie5. The financial reporting framework that
has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including
Financial Reporting Standard 102 Yhe Financial Reporting Standard applicable in the UK and Republic of Ireland,
(United Kingdom Generally Accepted Accounting Practicel.
In our opinion, the financial statements..
give a true and fair view of the state of the charitable compan¢s affairs as at 31 December 2020 and of
the charitable companWs income and expenditure for the year then ended-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice.. and
have been prepared in accordance with the requirements of the Companies Act 2(M)6.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII ènd applicable law.
Our responsibilities under those standards are further described in the Ayditor's responsibilities for the audit of the
financlal statements section of our report. We are independent of the charitable company 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
aceountin8 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 charity's ability to continue as a going
concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the
relevant sections of this report.
Other information
The other information comprises the information included in the Trustee's Annual Report. Our opinion on the
financial statement5 does not cover the other information and, except to the extent otherwise explicitly stated in
our report, we do not expre55 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 themselve5. If, based on the work we have performed, we conclude that there 15 a material
misstatement of thi5 Other information, we are required to report that fart.
We have nothing to report in this regard.
22
The
Physiological
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit=
the information given in the Trustees. report. which is also the directors. report for the purposes of
company law, for the financial year for which the financial statements are prepared is consistent with the
financial statements.. and
the Trustees, report, which is also the directors, report for the purposes of company law. has been
prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the charitable company and its environment obtained in the
course of the audit. we have not identified material misstatements in the Trustees. report. We have nothing to
report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to
vou if. in our opinion..
adequate accounting records have not been kept. or returns adequate for our audit have not been
received from branches not visited by us.. or
the financial statements are not in agreement with the accounting records and returns,. or
certain disclosures of Trustees, remuneration specified by13w are not made,. or
we have not received all the information and explan3tions we iequire for our audit,. or
the Trustees were not entitled to prepare ihe financial statements in accordance with the small
companies re8ime and take advantage of the small companies, exemptions in preparing the trustees,
report and from the requirement to prepare a strategic report.
Responsibilities of Trustees
A5 explained more fully in the Trustees, responsibilities statement, the Trustees Iwho ère also the directors of the
charitable ¢ompany for the purposes of company lawl are rest)onsible for the preparation of the financial
statement5 and for being sat15fied that they give a true and fair view, and for such internal control a5 the Trustees
determine is ne¢essary 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 charitable company's ability
to continue as a going concern. disclosin& as applicable. matters related to going concern and using the going
concern basis of accounting unle55 the Trustees either intend to liquidate the charitable company or to cease
operations, or have no realistic alternative but to do so.
Auditorfs 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 IUKI will always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if. individuallyor in the aggregate. they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.
Irregularities. including fraud. are instsnces of non-compliance with13ws and gUlatiOns. We design procedures in
line with our responsibilities, outlined above. to detect material misstatements in respect of irregularities. including
fraud. The extent to which our procedures are capable of detecting irregularities. including fraud is detailed below..
We obtained an understanding of the legal and regulatory frameworks applicable to the charity and the sector in
which it operates. We determined that the following laws and regulations were most significant.. Accounting and
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