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2021-12-31-accounts

DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY

Report of the Council of Management and Financial Statements

For the year ended 31 December 2021

Registered Charity Number 213811

DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY REPORT OF THE COUNCIL OF MANAGEMENT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

Contents Page
Reference and Administrative Details 1
Report of the Council of Management 2 - 6
Independent Auditors' Report 7 - 9
Statement of Financial Activities 10
Statement of Financial Position 11
Statement of Cash Flows 12
Notes to the Financial Statements 13 - 25

DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021

REGISTERED CHARITY NUMBER: 213811

COUNCIL MEMBERS

Dr C Y Barlow, President Professor S Conway Morris, Vice-President Professor R R Horgan, Vice-President Dr T K Carne, Treasurer Dr J Fraser, Biological Secretary Dr F J Leeper, Physical Secretary Professor G P Paternain, Mathematical Secretary Dr A Agarwal Dr R Asher Dr R Collepardo-Guevara Dr D Fusco Dr L Fruk Professor H Griffiths Professor W Harris Professor N Hopwood Professor J Lasenby Dr Bartomeu Monserrat-Sanchez Dr N Pugh

REGISTERED OFFICE

17 Mill Lane Cambridge CB2 1RX

BANKERS

Barclays Bank PLC 9-11 St Andrews Street Cambridge, CB2 3PZ

SOLICITORS

Hewitsons Shakespeare House 42 Newmarket Road Cambridge, CB5 8EP

INVESTMENT MANAGER

Rathbone Investment Management Limited 8 Finsbury Circus London, EC2M 7AZ

AUDITORS

Chater Allan LLP Chartered Accountants 7 Quy Court Colliers Lane Stow-cum-Quy CB25 9AU

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY REPORT OF THE COUNCIL OF MANAGEMENT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

The Council of Management present their annual report together with the audited financial statements of Cambridge Philosophical Society (the charity) for the year ended 31 December 2021. The Council members confirm that the Annual Report and financial statements of the charity comply with the current statutory requirements, the requirements of the charity's governing document, Charities Act 2011 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019).

Structure, governance and management

GOVERNING DOCUMENT

The Society was established on 15 November 1819 with the aim, in the words of that time ‘of promoting scientific inquiry, and of facilitating the communication of facts connected with the advancement of Philosophy and Natural History’. In modern terminology the aims of the Society are to promote research in all branches of science and to encourage the communication of the results of scientific research. The Society became a Body Corporate by virtue of a Charter granted by his late Majesty King William the Fourth and dated 6 August 1832.

METHOD OF APPOINTMENT OR ELECTION OF COUNCIL MEMBERS

The affairs of the Society are conducted by its Council, consisting of up to nine Officers and up to twelve Ordinary Members who are all senior scientists working within the University of Cambridge. The Council members who served during the year were:-

Professor R R Horgan, President Dr Claire Barlow, President-Elect Professor S Conway Morris, Vice-President Dr T K Carne, Treasurer Dr F J Leeper, Physical Secretary Professor G Paternain, Mathematical Secretary Dr D K Summers, Biological Secretary Dr A Agarwal Dr R Asher Dr J Berni Professor A F Blackwell Dr Rosana Collepardo-Guevara Professor S Bohndiek Dr J Fraser Dr L Fruk Professor H Griffiths Professor W Harris Professor A W Jones (Resigned 5 July 2021) Professor J Secord

Council members are elected at the Society's annual general meeting.

The President, President-Elect, Vice-Presidents, Treasurer and Secretaries constitute the Officers of the Society. The Officers and at least four ordinary Members of the Council are elected at each annual general meeting and serve from the first day of January following their election. The President serves for no more than two years successively, the President-Elect for one year, the Vice-Presidents for no more than three years successively, the Treasurer for no more than twelve years successively and the Secretaries for no more than nine years successively. Ordinary Members of Council serve for no more than six years successively.

Council meetings are held six times a year at which scientific activities are decided, formal business is concluded and strategy matters are discussed.

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY REPORT OF THE COUNCIL OF MANAGEMENT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

POLICIES ADOPTED FOR THE INDUCTION AND TRAINING OF COUNCIL MEMBERS

New members of Council following formal election after the Annual General Meeting are given a complete set of minutes for the previous Michaelmas Term, a list of the Council Officers and Ordinary Members, a copy of the Society’s byelaws, the Society’s most recent Financial Accounts and the Charity Commission Leaflet for Charity Trustees (CC3(a)). The Officers and Executive Secretary answer any questions they may have.

ORGANISATIONAL STRUCTURE AND DECISION MAKING

The Council sets out the general policy of the Society and has sole management of the income and funds of the Society. The day to day affairs of the Society are delegated to the Executive Secretary, Mrs Beverley Larner and the Treasurer, Dr Keith Carne.

Employees' remuneration is bench-marked with the University of Cambridge to ensure that the remuneration set is fair and not out of line with that generally paid for similar roles.

INVESTMENT POWERS

These are governed by the Charter and Bye Laws which permits the funds to be invested in any security listed on the London Stock Exchange and all the main Stock Markets of the World.

RISK MANAGEMENT

The Council of Management has examined the major strategic, business and operational risks which the charity faces and confirm that systems have been established to enable regular reports to be produced so that the necessary steps can be taken to lessen these risks. The Council of Management have identified the loss of sales of journals and the collapse in the Stock Market resulting in a reduction in investment income as areas of risk.

Objectives and Activities

PUBLIC BENEFIT

The Council of Management, as charity trustees, confirm that they have complied with the duty in section 17 of the Charities Act 2011 to have due regard to the Charity Commission’s general guidance on public benefit. Cambridge Philosophical Society is a registered charity whose charitable purpose defined within the Charities Act 2011 is the promotion of scientific enquiry and the publication of results of scientific research.

The Society provides public benefit primarily by the publication of its two journals, Mathematical Proceedings and Biological Reviews . In addition, the Society provides assistance to scientists by the award of travel grants and short-term research studentships and also arranges a series of lecture meetings which are open to the public. From 2010 the Society has been funding two to three, three-year Research Fellowships each year.

STRATEGIES FOR ACHIEVING OBJECTIVES

The Society aims to publish six issues of Mathematical Proceedings and from 2019 six issues of Biological Reviews will be published every year, to make every effort to achieve the highest academic standards, to increase the circulation, readership and subscription to the journals to maintain and increase revenue. Management of the Society’s investment portfolio to ensure secure financial protection for the Society’s activities and to generate funds for charitable distribution to support and advance science.

In addition the Society aims to maintain its assistance to scientists by awarding Travel Grants and short-term Research Studentships to research student members.

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY REPORT OF THE COUNCIL OF MANAGEMENT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

STRATEGIES FOR ACHIEVING OBJECTIVES (continued)

The Society also arranges nine lecture meetings, open to the public, including an Honorary Fellow’s award and Lecture, and three named lectures. Two are in memory of Sir Geoffrey Taylor and Sir Joseph Larmor and in 2013 a new named Lecture was instituted called the A V Hill Lecture in the Lent Term. The Society also sponsors a one-day meeting open to all members of the University and members of the public (a Special Anniversary two-day meeting in 2019).

The Society aims to maintain and recruit new Fellows by promotion of the Society to graduate students within the University of Cambridge; to make additional donations as agreed by Council in support of natural sciences; and to create Research Fellowships for terms of three years.

GRANT MAKING POLICIES

For 2021 the Society allocated a budget of £40,000 for Travel Grants and a budget of £180,000 for short term Research Studentships. The grant budgets are increased annually in line with inflation. Four Travel Grants meetings were held after the grant deadlines of 1 February, 1 May, 1 July and 1 November 2021 and two Research Studentship grant meetings were held after the grant deadlines of 31 March and 30 September 2021. Three members of Council constitute the panel at each of these meetings. The recommendations of the panel are submitted to Council for final approval. The Society also intended awarding at least eight bursaries up to a total of £4,000 to the Isaac Newton Institute for Mathematical Sciences to assist young scientists to attend symposia at the Institute. These grant budget figures are subject to increase at the request and agreement of Council at its meetings and approval by the Treasurer. In addition four members of Council form a panel to award two three-year research fellowships, currently £180,000 for each. These recommendations from the panel are submitted to Council for final approval.

Achievements and performance

GOING CONCERN

After making appropriate enquiries, the trustees have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Further details regarding the adoption of the going concern basis can be found in the Accounting Policies.

REVIEW OF ACTIVITIES

During the year the Society published six issues of Mathematical Proceedings and six issues of Biological Reviews . Two Editorial Boards (consisting up to 30 members for Biological Reviews and 12-13 members for Mathematical Proceedings , all of whom are selected from senior academics), an Editor, and a Secretary are appointed by and report to Council. Mathematical Proceedings produced a surplus lower than the forecast and the 2020 actuals. Biological Reviews produced a surplus higher than both the forecast and the 2020 actuals.

Wiley (formerly Blackwell Publishing Limited) is the publisher of Biological Reviews and Cambridge University Press remains the publisher of Mathematical Proceedings .

In addition the Society has maintained its assistance to scientists by awarding Travel Grants and short-term Research Studentships. Due to the continuing restrictions on travel imposed by the Government in 2021 only twenty-eight Travel Grants were awarded to a total value of £6,686 and thirty-nine short-term Research Studentships were awarded to a total value of £74,000. The Society intended to award at least eight bursaries up to a total value of £4,000 to the Issac Newton Institute for Mathematical Sciences to assist young scientists to attend symposia at the Institute, however these were not taken up due to the continuing restrictions on travel during the year. Two Research Fellowships for three-year terms were also awarded to commence in the Michaelmas Term 2021, in addition to those currently ongoing. The Society also awarded Covid-19 related hardship awards to Post-Docs in 2020. £100,000 was allocated and nine awards were made totalling £97,230. No allocations for Post-Doc awards were made in 2021.

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY REPORT OF THE COUNCIL OF MANAGEMENT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

REVIEW OF ACTIVITIES (continued)

Due to the ongoing closure of the University Estate in the Lent Term 2021 five lectures were videoed and hosted as online lecture meetings, open and available to the public, including the three named lectures in memory of Sir Geoffrey Taylor, Sir Joseph Larmor and A V Hill. In the Michaelmas Term 2021, four Lectures including the Larmor and the AV Hill were able to be held in person in lecture theatres, with social distancing in place. Videos of the four Michaelmas Term lectures were also taken to continue the programme of online lectures. The Society’s Honorary Fellows Lecture also took place in the Michaelmas Term 2021. The Society's Annual Sponsored One Day open to all members of the University and members of the public, due to have taken place at the end of the Lent Term 2021, had to be cancelled once again due to ongoing restrictions. Details of the name lecture bequests appear in note 9 to these financial statements.

There have been no material changes to policy during the year.

Financial review

RESERVES POLICY

Council has stated the policy to establish a financial base from which its activities at the present level would be secure in the event of future financial problems, such as might arise from loss of subscriptions to its publications as a result of electronic publishing. The Council has agreed to aim to hold liquid assets and free reserves at the year-end, a sum held equal to the budgeted expenditure of the Society for the forthcoming year as set out in the approved Estimates of the Society, plus a sum equal to the estimated financial commitments of the Society beyond that year. For the purposes of calculating the value of liquid assets and free reserves, cash deposits, money market funds and government and corporate bonds with a maturity of less than 5 years that may be liquidated within a one day trading period are included in the definition of liquid assets and free reserves. For 2021 this equates to the sum of £699,540. As at 31 December 2021 the value of the Society's holdings of liquid assets and free reserves amounted to £318,128. Restricted reserves at the year end were £69,167.

FUNDING AND RESULTS

The results for the year are set out in the attached financial statements.

Sales of current volumes during the year to 31 December 2021 totalled £472,416 compared with £451,588 in the previous year. Total incoming resources amounted to £794,952 (2020: £759,224) which, after resources expended of £668,312 (2020: £664,108), resulted in net incoming resources of £126,640 (2020: £95,116) before investment gains and losses.

Council has established an Investment Committee which makes investment decisions in the light of advice from external bodies. The agreed investment policy is to maximise overall long term return without undue risk by sustained investment in equities with significant exposure to all the main stock markets of the World. This involves purchases of securities and units in index-tracking and other funds which give exposure to equities listed in the US, UK, Europe and to a lesser extent Japan and the Far East.

The function of the Society’s assets is to provide security for its continuing activities, to provide for the development of future charitable activities and to provide in perpetuity for the achievement of the Society’s charitable aims – the advancement and promotion of science.

The value of the Society's investments has increased from £13,376,787 to £15,846,856, an increase of £2,470,069, due to a net investment of £392,840, coupled with unrealised gains of £2,077,228 on revaluation. At the end of the year the Society had net assets of £16,987,958 compared with £14,695,841 at the end of the previous year.

Plans for the future

FUTURE DEVELOPMENTS

The Council plans to return back to all it's pre-Covid activities outlined above in the forthcoming years i.e. the maintenance of its awards for Travel Grants four times a year and in addition the award of grants for Research Studentships twice a year; the fund allocated for these awards is reviewed annually and increased in line with current inflation. The current level of bursaries awarded to the Isaac Newton Institute is reviewed annually and in 2012 the amount for each individual award was increased from £250 to £500.

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY REPORT OF THE COUNCIL OF MANAGEMENT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FUTURE DEVELOPMENTS (continued)

Two additional Research Fellowship grants for three-year terms were approved by Council to commence in 2022 and two Research Fellows grants in 2023, and a further two are planned for both 2024.

Nine public lectures are also confirmed for 2022 and nine are currently being planned for 2023 including a Oneday meeting planned for 2022/23. The 2021 One-day meeting was cancelled once again, due to the closure of the University estate and the ongoing travel restrictions imposed by the Government due to the Covid-19 virus. The Council is also planning to continue the publication of its journal Mathematical Proceedings six times a year. Biological Reviews continues to be published as an online only publication having increased from four to six issues a year. No changes to the Publishers of the journals are currently anticipated. New editorial procedures and software to bring the editorial processes of both journals up to date have taken place and are ongoing. Digitisation of the back issues of both journals is now complete back to 1923 and further digitisation of the remaining back issues to 1819 is progressing. Again modernisation and improvements in the promotion, production and editorial procedures of both journals will take place in 2022. It is anticipated that taking advantage of efficiencies in technology and making other changes will further decrease the costs associated with publishing.

The Council plans to continue all the activities outlined above for the longer term.

A comprehensive insurance policy is in place to cover the possibilities of any future litigious circumstances arising through the activities of the Society, including the publication of its Journals, and in particular claims arising from plagiarism.

COUNCIL MEMBERS' RESPONSIBILITIES STATEMENT

The Council members are responsible for preparing the Council members' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England & Wales requires the Council members to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the Council members are required to:

The Council members 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, the applicable Charities (Accounts and Reports) Regulations 2008 and the provisions of the governing document. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

This report was approved by the Council members on 9th May 2022 and signed on their behalf by:

18 " [¢ ABDF841C8B83441...DocuSigned by: Dr C Y Barlow Date: 23 September 2022

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY INDEPENDENT AUDITORS' REPORT TO THE COUNCIL MEMBERS FOR THE YEAR ENDED 31 DECEMBER 2021

We have audited the financial statements of Cambridge Philosophical Society for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Statement of financial position, the Statement of Cash Flows and the related notes 1 to 23. The financial reporting framework that has been applied in their preparation is applicable law and the Statement of Recommended Practice: Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) and the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the 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 Council Members' 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 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 Council Members with respect to going concern are described in the relevant sections of this report.

Other information

The Council Members are responsible for the other information. The other information comprises the information included in the annual report , other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY INDEPENDENT AUDITORS' REPORT TO THE COUNCIL MEMBERS FOR THE YEAR ENDED 31 DECEMBER 2021

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Council of Management’s report.

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

Responsibilities of trustees

As explained more fully in the Council Members responsibilities statement, the Council Members 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 Council Members 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 Council Members are responsible for assessing the 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 Council Members either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 154 of that Act.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the annual financial statements from our general commercial and charity specific experience, through discussion with the Council of Members (as required by auditing standards), and from inspection of the charity's regulatory correspondence, and we discussed with the Council of Members the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indication to non-compliance throughout the audit; the audit team are deemed both competent and capable of identifying non-compliance with rules and regulations. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY INDEPENDENT AUDITORS' REPORT TO THE COUNCIL MEMBERS

FOR THE YEAR ENDED 31 DECEMBER 2021

Auditor's responsibilities for the audit of the financial statements (continued)

The potential effect of these laws and regulations on the annual financial statements varies considerably. Firstly, the charity is subject to laws and regulations that directly affect the annual financial statements including financial reporting legislation and taxation legislation, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related annual account items. Secondly, the charity is subject to other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance non-compliance with industry regulations. We assessed the risk of fraud in the financial statements through discussion with management and from our experience of the charity. We communicated identified fraud risk areas throughout our team and remained alert to any indication of fraud throughout the audit. In particular, we assessed the potential impact of the global pandemic known as Covid-19 on the risk of fraud. We did not identify any instances of fraud during the course of our audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-andguidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditorsresponsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of report

This report is made solely to the charity’s Council of Management, as a body, in accordance with section 145 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the charity’s Council members those matters we are required to state to them in an Auditors' 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 Council of Management as a body, for our audit work, for this report, or for the opinions we have formed.

Chater Allan LLP Chartered Accountants and Statutory Auditors 7 Quy Court Colliers Lane Stow-cum-Quy CB25 9AU

13 October 2022 Date

Chater Allan LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY STATEMENT OF FINANCIAL ACTIVITIES (incorporating income and expenditure) FOR THE YEAR ENDED 31 DECEMBER 2021

Note
INCOME FROM:
Donations and legacies
2
Charitable activities
3
Investments
4
TOTAL
EXPENDITURE ON:
Raising funds
6
Charitable activities
7
TOTAL
5
Net income/(expenditure) before
gains and losses on investments
Net gains/(losses) on investments
14
NET INCOME/(EXPENDITURE)
Transfers between funds
17
NET MOVEMENT IN FUNDS
Reconciliation of funds
Total funds brought forward
Total funds carried forward 31 December 2021		 Unrestricted
Funds
2021
£
42,226
472,416
273,110
787,751
53,917
613,894
667,812
119,939
2,165,208
2,285,147
(324)
2,284,823
14,633,968
16,918,791		 Restricted
Funds
2021
£
5,000
-
2,200
7,200
-
500
500
6,700
269
6,970
324
7,294
61,873
69,167		 Total
Funds
2021
£
47,226
472,416
275,310
794,952
53,917
614,394
668,312
126,640
2,165,477
2,292,117
-
2,292,117
14,695,841
16,987,958		 Total
Funds
2020
£
50,779
451,588
256,857
759,224
42,180
621,928
664,108
95,116
606,709
701,825
-
701,825
13,994,016
14,695,841

All of the above results are derived from continuing activities. The statement of financial activities includes all gains and losses recognised in the year.

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2021

Note 2021 2020
£ £
FIXED ASSETS
Tangible assets 13 8,882 3,825
Heritage assets 13 894,640 894,640
Investments 14 15,846,856 13,376,787
16,750,378 14,275,252
CURRENT ASSETS
Debtors 15 187,588 137,963
Cash at bank and in hand 269,211 513,596
456,799 651,559
LIABILITIES
Creditors: amounts falling due within one year 16 (191,842) (196,624)
NET CURRENT ASSETS 264,957 454,935
PROVISIONS FOR LIABILITIES 22 (27,377) (34,346)
NET ASSETS 16,987,958 14,695,841
THE FUNDS OF THE CHARITY:
Restricted Funds 17 69,167 61,873
Unrestricted funds: 17
General fund 16,913,357 14,628,867
Designated funds 5,434 5,101
16,918,791 14,633,968
TOTAL CHARITY FUNDS 16,987,958 14,695,841

The financial statements were approved by the Council members on 9th May 2022 and signed on their behalf by:

…………………………………………………… Dr T K Carne

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2021

Note
Cash flows from operating activities:
Net cash (used in)/provided by operating activities
21
Cash flows from investing activities:
Interest and dividends from investments
4
Purchase of furniture and equipment
13
Proceeds from sale of investments
14
Proceeds from Investment redemption
Purchase of investments
14
Net cash provided by/used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
(207,530)
275,310
(7,573)
853,462
-
(1,158,054)
(36,855)
(244,385)
513,596
269,211		 2020
£
(322,042)
256,857
(1,407)
4,291,237
-
(4,314,537)
232,150
(89,892)
603,488
513,596

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Accounting policies

Basis of preparation

The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value, and in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) and the Charities Act 2011.

The charity constitutes a public benefit entity as defined by FRS 102.

The presentation currency of the financial statements is the pound sterling (£).

Going concern

The Council members have a reasonable expectation that the charity has adequate resources to continue in operational existence for the foreseeable future and the charity is well placed to manage its business risks. In particular the Council members have considered the impact of the global pandemic known as Covid-19. Though there are inevitable uncertainties they believe there will be no material adverse impact on the Society's ability to continue as a going concern. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Incoming resources

All incoming resources are included in the Statement of Financial Activities (SOFA) when the charity is legally entitled to the income, it is probable that the income will be received and the amount can be quantified with reasonable accuracy.

Subscriptions received in advance are included within creditors falling within one year.

Donations are recognised when the charity has been notified in writing of both the amount and settlement date. In the event that a donation is subject to conditions that require a level of performance before the charity is entitled to the funds, the income is deferred and not recognised until either those conditions are fully met, or the fulfilment of those conditions is wholly within the control of the charity and it is probable that those conditions will be fulfilled in the reporting period.

Resources expended

All expenditure is accounted for on an accruals basis and has been included under expense categories that aggregate all costs for allocation to activities. Where costs cannot be directly attributed to particular activities they have been allocated to activities on a basis consistent with use of the resources.

Grants payable are charged in the year when the offer is made except in those cases where the offer is conditional, such grants being recognised as expenditure when the conditions attaching are fulfilled. Grants offered subject to conditions which have not been met at the year end are noted as a commitment, but not accrued as expenditure.

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CAMBRIDGE PHILOSOPHICAL SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Accounting policies (continued)

Fund accounting

General funds are unrestricted funds which are available for use at the discretion of Council members in furtherance of the general objectives of the charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Council members for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

All gains and losses are taken to the SOFA as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value (purchase date if later). Unrealised gains and losses are calculated as the difference between the fair value at the year end and opening carrying value (purchase date if later).

Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Furniture & Equipment

20% straight line

Heritage assets

Heritage assets represent books held by the Society for their contribution to knowledge and culture. The books were valued by an independent expert in 2014 based on insurance value. No depreciation is charged on the heritage assets as their economic life and high residual value mean that any depreciation would not be material. Heritage assets are reviewed at the year end for evidence of impairment and adjusted accordingly within the Statement of Financial Activities.

Foreign Currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at rates of exchange ruling at the balance sheet date.

Transactions in foreign currencies are translated into sterling at the rate ruling on the date of the transaction.

Exchange gains and losses are recognised in the Statement of Financial Activities.

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CAMBRIDGE PHILOSOPHICAL SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

1. Accounting policies (continued)

Pensions

The Society participates in the Cambridge University Assistants' Contributory Pension Scheme (CUACPS) which is a defined benefit scheme. The Society's contributions are affected by a surplus or deficiency in the CUACPS but the Society is unable to identify its share of the underlying assets and liabilities in the Scheme on a consistent and reasonable basis. The Society therefore accounts for its contributions to the CUACPS as if it were a defined contribution scheme. To the extent that the Society is committed to funding the deficit through additional monthly contributions, a liability is recognised in the accounts.

Stocks

Stocks of back issues of the Society's journals have not been valued.

Gifts in Kind

The University of Cambridge provides accommodation to support the Society as a Gift in Kind.

2. INCOME FROM DONATIONS AND LEGACIES

Members' subscriptions & donations
Life members' subscriptions
Grant from Cambridge University
Gift in kind - accommodation		 Unrestricted
Funds
2021
£
12,150
3,676
-
26,400
42,226		 Restricted
Funds
2021
£
5,000
-
-
-
Total
Funds
2021
£
17,150
3,676
-
26,400
47,226		 Unrestricted Restricted
Funds
Funds
2020
2020
£
£
8,317
-
3,080
-
12,983
-
26,400
-
50,779
-		 Total
Funds
2020
£
8,317
3,080
12,983
26,400
5,000 50,779

3. INCOME FROM CHARITABLE ACTIVITIES

Sales of journals
Royalties from journals		 Unrestricted
Funds
2021
£
307,772
164,643
472,416		 Restricted
Funds
2021
£
-
-
Total
Funds
2021
£
307,772
164,643
472,416		 Unrestricted Restricted
Funds
Funds
2020
2020
£
£
317,229
-
134,359
-
451,588
-		 Total
Funds
2020
£
317,229
134,359
- 451,588

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CAMBRIDGE PHILOSOPHICAL SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

4. INCOME FROM INVESTMENTS

INCOME FROM INVESTMENTS
Unrestricted
Funds
2021
£
Dividends and interest (gross)
273,110
Bank deposit interest
-
273,110		 Restricted
Funds
2021
£
2,200
-
2,200		 Total
Unrestricted
Funds
Funds
2021
2020
£
£
275,310
253,865
-
22
275,310
253,887		 Restricted
Funds
2020
£
2,970
-		 Total
Funds
2020
£
256,835
22
2,970 256,857

5. ANALYSIS OF RESOURCES EXPENDED BY EXPENDITURE TYPE

Staff
Costs
2021
£
Investment management costs
-
Costs of sales of journals & grant funding
135,722
Governance
16,946
152,668
EXPENDITURE ON RAISING FUNDS
Unrestricted
Funds
2021
£
Investment management costs
53,917		 Other
Costs
2021
£
53,917
452,268
9,458
515,643
Restricted
Funds
2021
£
-		 Total
Staff
Costs
Costs
2021
2020
£
£
53,917
-
587,990
137,960
26,404
17,226
668,312
155,186
Total
Unrestricted
Funds
Funds
2021
2020
£
£
53,917
42,180		 Other
Costs
2020
£
42,180
458,500
8,243		 Total
Costs
2020
£
42,180
596,460
25,469
508,923 664,108
Restricted
Funds
2020
£
-		 Total
Funds
2020
£
42,180

6. EXPENDITURE ON RAISING FUNDS

7. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES

Grants to individuals (see note 9)
Printing and publication costs
Donations
Prize awarded
Expenses of meetings, including honoraria
Expenses of special one day meetings
200th Exhibition costs
Office costs
Wages and salaries
National insurance
Pension costs
Governance costs (see note 10)
Gift in kind - accommodation costs		 Publications,
Grant
Lectures &
Total
funding
meetings
2021
£
£
£
303,481
-
303,481
-
87,834
87,834
750
-
750
-
-
-
6,599
1,910
8,509
-
-
-
-
-
-
19,617
5,677
25,294
93,025
26,923
119,948
6,382
1,847
8,229
5,852
1,693
7,545
20,478
5,926
26,404
20,474
5,926
26,400
476,658
137,736
614,394		 Total
2020
£
303,498
98,746
-
-
3,015
6,075
2,920
17,847
92,187
8,041
37,731
25,468
26,400
621,928

Basis of allocation

Costs have been allocated between charitable activities based on proportion of the direct costs of each activity.

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CAMBRIDGE PHILOSOPHICAL SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

8. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES BETWEEN FUNDS

. ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES . ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES BETWEEN FUNDS
Unrestricted Restricted
Funds
Funds
2021
2021
£
£
Grants to individuals (see note 9)
303,481
-
Printing and publication costs
87,834
-
Donations
750
-
Prize awarded
-
-
Expenses of meetings, incl. honoraria
8,009
500
Expenses of special one day meetings
-
-
200th Anniversary
-
-
Office costs
25,294
-
Wages and salaries
119,948
-
National insurance
8,229
-
Pension costs
7,545
-
Governance costs (see note 10)
26,404
-
Gifts in kind - rent payable
26,400
-
613,894
500		 Total
Unrestricted
Funds
Funds
2021
2020
£
£
303,481
303,498
87,834
98,746
750
-
-
-
8,509
3,015
-
6,075
-
2,920
25,294
17,846
119,948
92,187
8,229
8,041
7,545
37,731
26,404
25,469
26,400
26,400
614,394
621,928		 Restricted
Funds
2020
£
-
-
-
-
-
-
-
-
-
-
-
-
-
Total
Funds
2020
£
303,498
98,746
-
-
3,015
6,075
2,920
17,846
92,187
8,041
37,731
25,469
26,400
613,894
500		 - 621,928

9. GRANTS TO INDIVIDUALS

Research Grants
Travel Grants
Isaac Newton Institute Bursaries
Henslow Fellowships
Post Doc Covid-19 grants
Total		 2021
Number
18
1
-
5
-		 2021
£
61,751
4,662
(2,000)
239,068
-
303,481		 2020
Number
19
7
-
15
8
49		 2020
£
59,005
3,015
-
144,248
97,230
24 303,498

Research grants are awarded to fund the scientific research of post graduate students. Grants awarded range between £500 and £3,000.

Travel grants enable postgraduate students to travel in order to meet their research goals. Grants are awarded up to the value of £350.

Isaac Newton Institute Bursaries are awarded to young scientists to enable them to attend symposia at the Isaac Newton Institute for Mathematical Studies. The Society intended to award at least eight bursaries up to a value of £4,000 to the Isaac Newton Institute, however these were not taken up due to the continuing restrictions on travel during the year. The £2,000 credit in 2021 relates to the write back of these costs.

Henslow Fellowships are awarded to various Cambridge Colleges to fund scientific teaching positions. Fellowships awarded range between £14,000 and £35,000.

The Council allocated £100,000 towards a fund to help post graduates affected by the current Covid19 restrictions. During 2020, £97,230 was paid out in grants.

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CAMBRIDGE PHILOSOPHICAL SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

10. GOVERNANCE COSTS

Auditors' remuneration
Auditors' non audit fees
Office costs
Wages
National Insurance
Pension cost
11. NET INCOME/(EXPENDITURE)
This is stated after charging:
Depreciation of tangible fixed assets:
- owned by the charity
Auditors' remuneration
Auditors' other financial services
Pension costs		 Unrestricted
Total
Unrestricted
Funds
Funds
Funds
2021
2021
2020
£
£
£
5,500
5,500
5,300
800
800
715
3,158
3,158
2,228
14,977
14,977
11,510
1,027
1,027
1,004
942
942
4,711
26,404
26,404
25,468
2021
£
2,517
5,500
800
8,487
Total
Funds
2020
£
5,300
715
2,228
11,510
1,004
4,711
25,468
2020
£
1,487
5,300
715
42,443

12. ANALYSIS OF STAFF COSTS AND REMUNERATION TO KEY PERSONNEL

Wages and salaries
Social security costs
Other pension costs
The average monthly number of employees during the year was as follows:		 2021
£
134,925
9,257
8,487
152,668
2021
No.
9		 2020
£
103,698
9,045
42,443
155,186
2020
No.
8

No employee received remuneration amounting to more than £60,000 in either year.

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CAMBRIDGE PHILOSOPHICAL SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

13. TANGIBLE FIXED ASSETS

Cost or valuation:
As at 1 January 2021
Additions
Disposals
As at 31 December 2021
Depreciation:
As at 1 January 2021
Charge for the year
Elimination on disposal
As at 31 December 2021
Net book value
As at 31 December 2021
As at 31 December 2020		 Heritage
assets
£
894,640
-
-
894,640
-
-
-
-
894,640
894,640		 Furniture and
equipment
£
23,053
7,573
-		 Total
£
917,693
7,573
-
30,626 925,266
19,227
2,517
-		 19,227
2,517
-
21,744 21,744
8,882 903,522
3,825 898,465

Heritage assets represent books held by the Society for their contribution to knowledge and culture. The books were valued by an independent expert in 2014 based on insurance value. There have been no additions, disposals or impairment of heritage assets during the current and four preceding years.

14. FIXED ASSET INVESTMENTS

Movement in fixed asset listed investments
Fair Value at 1 January 2021
Additions
Disposals (proceeds £853,462, gain on disposal of £88,248)
Net gain/(loss) on revaluation
Fair value at 31 December 2021
Historical cost at 31 December 2021
Listed investments
Cash
Listed investments at fair value comprise:
UK
Overseas		 2021
£
13,376,787
1,158,054
(765,214)
2,077,228		 2020
£
12,746,778
4,314,537
(4,338,579)
654,051
15,846,856 13,376,787
8,580,514 7,741,657
15,760,874
85,982		 13,376,787
-
15,846,856 13,376,787
2021
£
6,595,383
9,165,491		 2020
£
12,614,780
762,007
15,760,874 13,376,787

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CAMBRIDGE PHILOSOPHICAL SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

14. FIXED ASSET INVESTMENTS (continued)

Material investments

Details of material investments at the balance sheet date of 31 December 2021, represents more than 5% of the total portfolio, are as follows:

Charifund - Equities Investment Fund for Charities
15. DEBTORS
Trade debtors
Prepayments and accrued income
VAT
16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Taxation and social security
Other creditors
Accruals and deferred income		 2021
£
1,129,728		 2020
£
948,942
2021
£
130,756
38,959
17,873		 2020
£
80,078
47,951
9,934
187,588 137,963
2021
£
3,820
141,467
46,555		 2020
£
3,050
140,454
53,121
191,842 196,624

Included in Accruals and deferred income above is income of £NIL (2020: £NIL) that relates to the following year.

17. SUMMARY OF FUND MOVEMENTS

Unrestricted funds
General Funds
Designated funds
Henslow Fund
William Bate Hardy
Prize Fund
Post Graduate COVID
19 Fund
Total unrestricted funds
Restricted funds
William Hopkins
Prize Fund
Sir Joseph Larmor's
Fund
G I Taylor Trust Fund
Dr Heywood
Total Funds		 At 1
January
2021
£
14,628,867
-
2,331
2,770
14,633,968
2,602
250
59,021
-
61,873
14,695,841		 Income
£
787,751
-
-
-
787,751
93
9
2,099
5,000
7,200
794,952		 Expenditure
£
(428,744)
(239,068)
-
-
(667,812)
-
-
(500)
-
(500)
(668,312)		 Transfers
£
(239,725)
239,068
333
-
(324)
333
(9)
-
-
324
-		 Gains/
(Losses)
£
2,165,208
-
-
-		 At 31
December
2021
£
16,913,357
-
2,664
2,770
2,165,208 16,918,791
269
-
-
-		 3,297
250
60,620
5,000
269 69,167
2,165,477 16,987,958

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CAMBRIDGE PHILOSOPHICAL SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

17. SUMMARY OF FUND MOVEMENTS (continued)

The Henslow Fund was established in 2010 when Council set aside the initial sum of £20,000 from General Funds to meet the cost of the Henslow Fellowships. An amount equal to the expenditure in the year is transferred from unrestricted General Funds. The fund is represented by net current assets.

The William Bate Hardy Prize Fund was founded in 1964 to fund a prize for the best original memoir, investigation or discovery by a member of the University of Cambridge in connection with Biological Science that may have been published during the three years immediately preceding. The prize is adjudged once in three years by three Fellows of the Society, nominated by the Council of the Society for each occasion. The fund is represented by net current assets.

The William Hopkins Prize Fund was founded in memory of William Hopkins (1793-1866) to fund a prize for the best original memoir, invention or discovery by a member of the University of Cambridge in connection with Mathematico - physical or Mathematico - experimental science that may have been published during the three years immediately preceding. The prize is adjudged once in three years by three Fellows of the Society nominated by the Council of the Society for each occasion. The fund is represented by investments with a market value of £1,932 and by net current assets of £1,364.

The Sir Joseph Larmor's Fund was set up with a bequest of £250, the terms of which were that the income thereof be used to promote the interest of undergraduate members of the University of Cambridge in the aims of the Society. The fund is represented by net current assets.

The G I Taylor Trust Fund was set up with monies subscribed in response to an appeal in 1976. The income of the fund is used to meet costs associated with a lecture to be held each year in Cambridge. The lecturer is appointed each year by the Council of the Society after consultation with the Heads of the Departments of Applied Mathematics and Theoretical Physics, Engineering and Physics in the University of Cambridge. The fund is represented by net current assets.

The Dr Heywood Fund was established from a gift to the Society of £5,000 from Dr Jonathan Heywood, to enable the society to continue to support research students who overrun their original funding. The gift will be used in 2022 towards the award of Research Studentships .

18. ANALYSIS OF NET ASSETS BETWEEN FUNDS

ANALYSIS OF NET ASSETS BETWEEN FUNDS
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Provisions for liabilities		 Unrestricted Restricted
Total
Funds
Funds
Funds
2021
2021
2021
£
£
£
903,522
-
903,522
15,844,923
1,933
15,846,856
389,565
67,234
456,799
(191,842)
-
(191,842)
(27,377)
-
(27,377)
16,918,791
69,167
16,987,958		 Total
Funds
2020
£
898,465
13,376,787
651,559
(196,624)
(34,346)
14,695,841

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CAMBRIDGE PHILOSOPHICAL SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

19. PENSION COSTS

The Society participates in the Cambridge University Assistants' Contributory Pension Scheme (CUACPS) which is a defined benefit scheme. The Society's contributions are affected by a surplus or deficiency in the CUACPS but the Society is unable to identify its share of the underlying assets and liabilities in the Scheme on a consistent and reasonable basis. The Society therefore accounts for its contributions to the CUACPS as if it were a defined contribution scheme.

The most recent full actuarial valuation of the CUACPS was carried out as at 31 July 2018 by an independent actuary, Robert Sweet, who is a Fellow of the Institute of Actuaries. He is not an employee or officer of the Society. The CUACPS is not a closed scheme nor one in which the age profile of the active membership is rising significantly.

The method used in the actuarial valuation as at 31 July 2018 was the Projected Unit method. The main assumptions were:

Rate of interest: . in deferment 5.15% pa . in payment 5.15% pa Rate of salary increases: 4.25% pa Rate of increases in pensions in payment: 3.25% pa

Rate of mortality before and after retirement:

121% of S2NMA pension Mortality tables for males and 90% of S2NMA Pension Mortalities for females. Plus a projection based upon the CMI_2017 model with a long term 1.75% p.a. improvement.

Expenses:

. past service 1.0% of the liability excluding expenses . future service 0.9% of Pensionable Salaries

Age at Retirement: . active members 63 for males and 62 for females . deferred members 61 for males and 61 for females

Assets:

Value of the assets as shown in the accounts

The result of the valuation using the above assumptions was:

Past Service (service to 31 July 2018)

Past Service (service to 31 July 2018)
Value of Past Service Liability (a) 742,670,000
Actuarial Value of Assets (b) 708,068,000
Deficiency
(b) - (a)		 34,602,000
Funding Level
(b)/(a) x 100		 95%

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CAMBRIDGE PHILOSOPHICAL SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

19. PENSION COSTS (continued)

In respect of the shortfall in funding, the Employer have agreed to continue to pay additional contributions of £14,595,000 p.a, payable monthly to 31 July 2025, which will eliminate the shortfall.

In respect of the future accrual of benefits, the expenses of administering the Scheme, death in service benefits and PPF levies, members who joined the scheme prior to 1 January 2013 will pay contributions at the rate of 5% pa of Pensionable Salaries, members who joined after 1 January 2013 will pay contributions at the rate of 3% pa of Pensionable salaries and all Employers will Pay:

SalarySacrifice Members SalarySacrifice Members Non Salary Sacrifice
Members		 Non Salary Sacrifice
Members
Active
Members		 Employers Active
Members		 Employers
% % % %
Pre-2013 Members paying
additional contributions		 Nil 20.0 8.5 11.5
Other Pre-2013 Members Nil 16.5 5.0 11.5
Post-2013 Members Nil 8.8 3.0 5.8

From 23 April 2010 to 31 July 2025.

The contributions payable by the Society for the accounting period ended 31 December 2021 amounted to £8,487 (2020: £8,028). The outstanding contributions at 31 December 2021 amounted to £997 (2020: £993).

Material post valuation date events:

On 26 October 2018 the High Court announced its decision in the Lloyds Bank GMP equalisation case. This confirms that GMPs should be equalised from the Barber judgment date, 17 May 1990. It is far too soon for the Trustee to have reviewed the impact of this on the Scheme. In particular, there are still questions to be answered around how the equalisation should be applied in practice, and it is expected that the DWP will be issuing further guidance on this matter.

No allowance has been made for GMP equalisation in this valuation.

The next triennial valuation will be carried out as at 31 July 2021. As this Scheme has more than 100 members, interim actuarial reports will be required as at 31 July 2019 and 31 July 2020.

20. RELATED PARTY TRANSACTIONS AND TRUSTEES' EXPENSES AND REMUNERATION

The council members all give freely their time and expertise without any form of remuneration or other benefit in cash or kind (2020: £nil). No expenses were paid to the council members during 2021 or 2020.

There have not been any related party transactions during the year.

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

21. RECONCILIATION OF NET INCOME/(EXPENDITURE) TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net income/(expenditure) for the year
Depreciation charges
(Gains)/losses on investments
Movement on provision
Dividends and interest from investments
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net cash (used in)/provided by operating activities
. PROVISIONS FOR LIABILITIES
Defined benefit pension scheme deficit
Movement in defined benefit pension provision:
As at 1 January 2021
Provision increase/(decrease)
Transferred to creditors
Interest
As at 31 December 2021		 2021
£
2,292,117
2,517
(2,165,477)
(6,969)
(275,310)
(49,625)
(4,782)
(207,530)
2021
£
27,377
2021
£
34,346
1,606
(8,575)
-
27,377		 2020
£
701,825
1,487
(606,709)
29,331
(256,857)
(20,103)
(171,016)
(322,042)
2020
£
34,346

22. PROVISIONS FOR LIABILITIES

The pension provision is in respect of the pension deficit recovery plan agreed for the period to 31 July 2025.

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DocuSign Envelope ID: 84A8EED2-EB56-4105-83F7-5D6ACAC1575D

CAMBRIDGE PHILOSOPHICAL SOCIETY STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 DECEMBER 2021

23 COMPARATIVE STATEMENT OF FINANCIAL ACTIVITIES

INCOME FROM:
Donations and legacies
Charitable activities
Investments
TOTAL
EXPENDITURE ON:
Raising funds
Charitable activities
TOTAL
Net income/(expenditure) before
gains and losses on investments
Net gains/(losses) on investments
NET INCOME/(EXPENDITURE)
Transfers between funds
NET MOVEMENT IN FUNDS
Reconciliation of funds
Total funds brought forward at 1 January 2020
Total funds carried forward 31 December 2020		 Unrestricted
Funds
2020
£
50,779
451,588
254,120
756,488
42,180
621,928
664,108
92,380
606,631
699,011
(821)
698,190
13,934,495
14,632,685		 Restricted
Funds
2020
£
-
-
2,737
2,737
-
-
-
2,737
77
2,814
821
3,635
59,521
63,156		 Total
Funds
2020
£
50,779
451,588
256,857
759,225
42,180
621,928
664,108
95,116
606,709
701,825
-
701,825
13,994,016
14,695,841

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