## **THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**COUNCIL REPORT AND FINANCIAL STATEMENTS 31 DECEMBER 2020**
**SOMERBYS LIMITED CHARTERED ACCOUNTANTS 30 NELSON STREET LEICESTER LE1 7BA**
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
## **CONTENTS YEAR ENDED 31 DECEMBER 2020**
|**Legal and Administrative Information**|**1**|
|---|---|
|**The Annual Report of the Council**|**2 - 9**|
|**Report of the Independent Auditors**|**10 - 12**|
|**Statement of Financial Activities**|**13 - 14**|
|**Balance Sheet**|**15 - 16**|
|**Statement of Cash Flows**|**17**|
|**Notes forming part of the Financial Statements**|**18 - 25**|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**1**
## **CHARITY NUMBER: 226222**
|President|Mr Ken Smith|
|---|---|
|Vice-Presidents|Dr Mark Gardiner|
||Mr Paul Oldham|
||Ms Kathryn Stubbs|
||Professor Barbara Yorke|
|Honorary Secretary|Dr Pete Wilson|
|Honorary Treasurer|Dr Andrew Williams|
|Honorary Editor|Dr Lisa-Marie Shillito|
|Meetings Secretary|Dr Rachel Swallow|
|Council Members|Full list given on page 8|
|Correspondence Address and registered address|c/o The Society of Antiquaries|
||Burlington House|
||Piccadilly|
||London|
||W1J 0BE|
|Bankers|Co-operative Bank plc|
||PO Box 250|
||Delf House|
||Southway|
||Skelmersdale|
||WN8 6WT|
||CAF Bank Ltd|
||25 Kings Hill Avenue|
||Kings Hill|
||West Malling|
||Kent|
||ME19 4JQ|
|Auditor|Somerbys Limited|
||30 Nelson Street|
||Leicester|
||LE1 7BA|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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**THE ANNUAL REPORT OF THE COUNCIL YEAR ENDED 31 DECEMBER 2020**
The Council presents the statutory report with the accounts of The Royal Archaeological Institute for the year ended 31 December 2020.
The annual report and accounts are presented in the form of a Statement of Financial Activities, in order to comply with the _Statement of Recommended Practice for Charities: Accounting and Reporting by Charities_ as issued by the Charity Commission in 2015 and comply with the requirements of the Charities Act 2011.
## **Structure, Governance and Management**
The Institute was founded in 1844 and received its Royal Charter in 1961. This defines the nature and legal status of the Institute, which is responsible to the Privy Council for the conduct of its affairs. These include the holding of monthly lectures in London during the Season, which runs from October to May, short Spring and Autumn meetings and an Annual Summer Meeting of a week’s duration when visits are paid to areas of archaeological and architectural interest in the British Isles and Europe. An annual conference and occasional seminars are also held on a variety of topics. The Institute publishes a journal and awards research and other grants annually.
The Institute is a Registered Charity - No. 226222 - and the registered address is c/o The Society of Antiquaries of London, Burlington House, Piccadilly, London, W1J 0BE.
The Institute's governing body is its Council, whose members are the council members of the Institute for the purposes of Institute legislation, and which is constituted as follows:
- The President, elected by the members in general meeting for a three-year term of office.
- Four Vice-Presidents, each elected by the members in general meeting for a five-year term of office.
- Twelve Ordinary Members, each elected by the members in general meeting for a four-year term of office.
- Four Honorary Officers (Secretary, Treasurer, Editor and Meetings Secretary) who are appointed by Council, are _ex officio_ members of it, and who have no restriction on their term of office.
Council's work is supported by Editorial, Meetings and Research Committees. An Audit & Investment Committee provides oversight of the conduct of its financial affairs.
The members of the Council who served during the year are listed on page 8. The Institute gratefully recognises the support and assistance that all retiring members of Council have given during their period of office.
## **Aims**
The aims and objectives of the Institute are as follows:
- (a) To examine, preserve and illustrate the ancient monuments, past history, manners, customs, arts and literature of Great Britain and Northern Ireland and other countries.
- (b) To publish the _Archaeological Journal_ .
- (c) To contribute funds for the preservation of ancient monuments and promote archaeology and archaeological research through grant giving.
- (d) To run a lecture programme where papers are read and subjects discussed. (e) To hold meetings at archaeological sites.
## **Risk Management**
The council members have a duty to identify and review the risks to which the Institute is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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**THE ANNUAL REPORT OF THE COUNCIL (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
## **Public Benefit**
In meeting its aims and objectives, the Society provides public benefit by advancing learning and education about archaeology at all levels and through promoting knowledge and understanding of archaeology.
Council confirms that it has 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.
## **Achievements and Performance**
The global Covid-19 pandemic impacted the Institute’s programme of meetings and lectures.
## Publications
Volume 177 of the _Archaeological Journal_ was published online during the year. Two articles were Open Access.
The digitised version of the _Archaeological Journal_ Volumes 1 - 177 is currently available online to libraries and to members through the RAI website.
Two Newsletters were published which, besides reporting on the Institute's activities, included short reports on research projects that had received awards from the Institute's research funds.
## Lectures
The following lectures were held at the Rooms of the Society of Antiquaries in Burlington House, London:
## **8 January**
From the Romans to the Saxons: results from the archaeological fieldwork at the site of St Martin-in-the-Fields Church, Trafalgar Square
Alison Telfer
## **12 February**
Anglo-Saxon timber buildings: archaeological evidence for the forms and the processes of construction Dr Mark Gardiner
## **11 March**
A Distinctive Neolithic in Devon, Cornwall and Scilly? Recent work on ceramics, axes and other things Henrietta Quinnell
## **8 April** (Cancelled)
3 p.m. Work by the Roman Roads Research Association David Ratledge, Rob Entwistle and Mike Haken
5 p.m. Churches in the Irish Landscape, 400-1100 Dr Tomás Ó Carragáin
## **13 May: The President’s lecture** (Cancelled)
## **14 October** (Livestreamed)
Legend, Lordship and Landscape: Understanding the Queen's Gate, Caernarfon Castle, N. Wales Dr Rachel Swallow
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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## **THE ANNUAL REPORT OF THE COUNCIL (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
## **11 November** (Via Zoom)
3 p.m. Current Post-Graduate Research, University of Birmingham David Marsh, Theo Reeves and Abigail Taylor
5 p.m. The Genesis of Northumbria: Reconsidering the origins of an ‘English’ kingdom in light of new data Dr Rob Collins
## **9 December** (Livestreamed)
Le Catillon II: investigating and conserving the world’s largest Iron Age hoard Neil Mahrer
During 2020, the Institute’s world-class lectures continued to be made available online to Ordinary members, and those streamed live were, and remain, available online to all.
## Meetings
All meetings were cancelled. It is hoped to reinstate them all in 2021.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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**THE ANNUAL REPORT OF THE COUNCIL (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
## Research Grants
Research grants to the value of £19,037, one of the highest in the Institute’s history, were made possible by the use of an £8,000 underspend in 2019. Sadly, many funded projects were unable to proceed in 2020. Grants to the value of £13,742 have been held over until 2021.
|Dr Peter Halkon|Petuaria Revisited – Looking for a lost Roman theatre|£2,594|
|---|---|---|
|Dr Niall Finneran|The archaeology of death and memory in the old Jewish East End of London|£1,451|
||(Whitechapel) (STARTED then POSTPONED)||
|David Brooks|A Community Exploration by the Swaledale and Arkengarthdale|£2,592|
||Archaeology Group (SWAAG) of a Romano-British site at Hagg Farm,||
||Swaledale, North Yorkshire (POSTPONED)||
|Dr Duncan Wright|St Hugh’s: Origins and evolution of an historic suburb £1250 (Research)|£1,250|
||(Unable to proceed with project)||
|Prof. Martin|Excavations at Isurium Brigantum, Aldborough (North Yorks) 2020|£4,900|
|Millett|(POSTPONED)||
|Nathalie Cohen|Exploring Smallhythe £1250 (Research) (POSTPONED)|£1,250|
|Dr Nick Overton|Exploring Mesolithic belief systems through the treatment and disposal of|£5,000|
||animal remains (POSTPONED)||
The Institute made donations of £1,500 to the library of the Society of Antiquaries of London, where members have reading rights, and of £600 to the Young Archaeologists’ Club section of the Council for British Archaeology. A grant of £2,000 towards editing costs was made to support the publication of the Institute’s Neolithic of Northern England Conference proceedings in addition to the £2,000 already provided to support inclusion of colour in the publication.
Exceptionally, grants were made to the CBA towards the Festival of Archaeology’s Day in Archaeology, and to help support Early Career Development as an immediate Covid-19 response. These totalled £14,336.
## The Tony Baggs Undergraduate Dissertation Prize
The RAI Tony Baggs undergraduate dissertation prize, covering years 2019 and 2020, had been awarded to Yannick Signer from the University of York for his dissertation, ‘Agricultural Change in Early Medieval Yorkshire: A Landscape Approach’.
## Cheney Bursaries
The Cheney Bursary was applied towards the fees of the 2019 Masters Dissertation Prize recipient for attendance at the March award lecture.
## Membership
Council regrets to note the deaths of nine members during the year, of whom three were Life members, five were Ordinary members and one was an Associate member. Eight members resigned: six Ordinary members and two Associate members. As a result of the review of the membership roll, past members were removed from the membership list due to non-payment: ten Ordinary members, twenty Associate members and fifteen Student members. Two Ordinary members each became an Associate member and two Associate members each became an Ordinary member. Fifty-two new members were elected: thirty-three Ordinary members, three Associate members and sixteen Student members. Three of the new Student members are sponsored by the Institute.
||**2020**|**2019**|
|---|---|---|
|Life members|89|92|
|Ordinary members|519|507|
|Associate members|74|94|
|Student members (under 26 years of age)|29|28|
|Individual members|711|721|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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**THE ANNUAL REPORT OF THE COUNCIL (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
## **Financial Review**
The Statement of Financial Activities shows net outgoing resources of £8,612 (2019: £187,826) before unrealised gains on investments.
The Institute maintained its scrutiny of administration costs during the year; governance costs were reduced due to the holding of virtual meetings. The Institute is very grateful to Somerbys for having held its charges for its services.
The Institute’s net assets as at 31 December 2020 are £1,681,960 (2019: £1,561,038), which are more than sufficient to meet its obligations.
In 2020, the Council continued to monitor carefully the performance of its invested funds managed by CCLA. The total assets had been proportioned between different fund types which would provide an ambitious, but not stretching, annual yield, and growth in the long-term value of the investments to be equal to but not greater than inflation. Council was satisfied with the income achieved.
## **Risk Policy**
Council receives an annual report from the Audit and Investment Committee. The most recent, received in March 2020, highlighted the following (action taken in italics):
- Involve Council and committees in strategy design and delivery – _Council decided to commission an external strategic review of the UK archaeological sector, the role of the Institute, and the effectiveness of its management. The Consultant’s report was received on 14[th] December and will be considered by Council during the first quarter of 2021._
- Strategic Review brief established and monitored by working group – _Council urged to beware of exceeding operational capacity and jeopardising current “offer”._
- Review of insurance cover recommended – _Comparisons demonstrated the current provider met the Institute’s needs._
- Encourage legacies and gifts – _Ongoing_
- Journal publication and Open Access – _Two articles were published Open Access in Volume 177. Further plans are under discussion._
## **Reserves Policy**
Council’s policy is to retain sufficient resources to enable it to carry out its charitable activities from a sound financial base and to achieve its long-term objectives. Capital, in the form of fixed asset investments, is maintained with a view to generating as much investment income as is possible as part of incoming resources to meet charitable expenditure year by year, in line with its investment policy.
Reserves at 31 December 2020 amounted to £1,681,960 and of this £1,586,919 represented investments and tangible assets held to generate income to carry out the charitable objectives. Free reserves, the amount of unrestricted net current assets, totalled £83,280.
## **Investment Policy**
The Institute’s primary investment objective is to monitor the performance of the Investment Manager with the aim of generating an agreed and ambitious income stream, and of maintaining the value of total investment funds equal, over the long term, to the inflation rate. Reports on the Institute’s portfolio are received quarterly, an annual meeting takes place between a representative of the CCLA and the Audit and Investment Committee and ad hoc assistance is readily available throughout the year.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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**THE ANNUAL REPORT OF THE COUNCIL (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
## **Plans for 2021**
The Institute plans to publish online Part 2 of Volume 178 of the _Archaeological Journal_ in the Summer of 2021 (having achieved publication of Part 1 online in November 2020), and to continue to publish newsletters in Spring and Autumn.
Lectures will continue to take place on a monthly basis, from January to May and October to December. These will, at least initially, be virtual and livestreamed. The Institute will consider and decide on its future policy for the holding of lectures at Burlington House.
Three meetings will be held through the year, pandemic restrictions permitting. The Spring meeting is planned to be in Dover in May, the Summer meeting in Copenhagen and Malmö in July and the Autumn meeting in Newark in October.
The Institute will continue to award annual research grants and also its Masters and Undergraduate Dissertation Prizes in alternate years. In 2021, the Masters Dissertation Prize will be judged. The Institute will also continue to work with other bodies to promote the British Archaeological Awards.
Having received the report of the External Review from Dr Gemma Tully in the middle of December, Council will decide other actions at special meetings in January and February. The strategic direction of the Institute, and its actions in 2021 will be notified to the membership following Council’s decisions.
The website will include a synopsis of lecture contents and host these lectures online for the benefit of Ordinary members.
All of these activities will be promoted through the website and social media.
## **Statement of the Council's responsibilities in respect of the preparation of financial statements**
The Council Members are responsible for preparing the Annual 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 and the Institute's Royal Charter requires the Council to prepare financial statements for each financial year, which are required by law to give a true and fair view of the state of affairs of the Institute at the year-end and of the surplus or deficit of the Institute for that period. In preparing these financial statements, the Council is required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles of the Charities SORP (FRS 102);
- make judgements and estimates that are reasonable and prudent;
- state whether the applicable accounting standards and statements of recommended practice have been followed, subject to any departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Institute will continue in operation.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE THE ANNUAL REPORT OF THE COUNCIL (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
**8**
The Council is responsible for keeping accounting records, which disclose with reasonable accuracy at any time the financial position of the Institute and which enables it to ensure that the financial statements comply with the requirements of the Royal Charter and Statutes and the Charities Act 2011. It is also responsible for safeguarding the assets of the Institute and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
## President
Mr Ken Smith (E) (R) (A) (M)
March 2020 until May 2021
Council members Elected/Retired/Resigned
Mr Paul Oldham (Vice-President) (A) Dr Mark Gardiner (Vice-President) Dr Sara Lunt (Vice-President) Retired May 2020 Professor Barbara Yorke (Vice-President) Ms Kathryn Stubbs (Vice-President) (M) Elected May 2020 Ms Nathalie Cohen (M) Retired May 2020 Dr Steven Ashby (E) Professor John Collis (E) Mrs Henrietta Quinnell Dr Adrian Olivier Dr Andrew Seaman (E) Dr Hugh Willmott Mr Geoffrey Morley Ms Caroline Raison Mrs Sue Shaw (M) Dr Rachel Swallow Mr Adam Gwilt Elected May 2020 Ms Alison Telfer
Elected May 2020 Elected May 2020 Position Honorary Secretary Honorary Treasurer Honorary Editor Meetings Secretary: Retired May 2020 Meetings Secretary: Elected May 2020
## Officers
Dr Pete Wilson Dr Andrew Williams Dr Lisa-Marie Shillito Mr Hedley Swain
Dr Rachel Swallow
In addition to the above, the following served throughout the year:
Ms Sharon Gerber Ms Katherine Barclay Dr Andy Valdez-Tullett Ms Caroline Raison
Administrator Newsletter Editor Reviews Editor Assistant Meetings Secretary
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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## **THE ANNUAL REPORT OF THE COUNCIL (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
The following members of the Institute also served on committees:
Dr Brendan O’Connor (A) Professor Martin Millett (A) Sir Rupert Jackson (A) Dr Andrew David (R; _Tony Clark Award_ ) Mr William J. Britnell (R) (E) Dr Margaret Nieke (E) Professor Anthony Quiney (M) Ms Janette Booth (M) Dr Stephen Sherlock (M) (R) Dr Eileen Wilkes (R)
(E): Member of Editorial Committee (A): Member of Audit & Investment (M): Member of Meetings Committee (R): Member of Research Committee
Approved and signed on behalf of Council on 10 March 2021.
**PRESIDENT FOR COUNCIL Mr Ken Smith**
**HONORARY TREASURER FOR COUNCIL Dr Andrew Williams COUNCIL MEMBER FOR COUNCIL Mr Adam Gwilt COUNCIL MEMBER FOR COUNCIL Dr Andrew Seaman**
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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**INDEPENDENT AUDITORS’ REPORT TO THE COUNCIL YEAR ENDED 31 DECEMBER 2020**
## **Opinion**
We have audited the financial statements of The Royal Archaeological Institute (the ‘Institute’) for the year ended 31 December 2020 which comprise a statement of financial activities, balance sheet, cashflow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 _The Financial Reporting Standard applicable in the UK and Republic of Ireland_ (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
- give a true and fair view of the state of the Institute’s affairs as at 31 December 2020, and of its incoming resources and application of resources, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Charities Act 2011.
## **Basis for opinion**
We 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 Institute 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**
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
- the council members’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
- the council members have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Institute’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
## **Other information**
The council members are responsible for the other information. The other information comprises the information included in the council members’ 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.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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**INDEPENDENT AUDITORS’ REPORT TO THE COUNCIL YEAR ENDED 31 DECEMBER 2020**
## **Matters on which we are required to report by exception**
We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:
- the information given in the financial statements is inconsistent in any material respect with the council members’ report; or
- sufficient accounting records have not been kept; or
- the financial statements are not in agreement with the accounting records; or
- we have not received all the information and explanations we require for our audit.
## **Responsibilities of council members**
As explained more fully in the council’s responsibilities statement set out on page 8, the council members are responsible for the preparation of financial statements which 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 Institute’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 Institute 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 145 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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Institute’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the council members.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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## **INDEPENDENT AUDITORS’ REPORT TO THE COUNCIL YEAR ENDED 31 DECEMBER 2020**
- Conclude on the appropriateness of the council members’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Institute’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Institute to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
## **Use of our report**
This report is made solely to the Institute’s council members, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken so that we might state to the Institute’s council members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Institute and the Institute’s council members as a body, for our audit work, for this report, or for the opinions we have formed.
## **SOMERBYS LIMITED**
Chartered Accountants and Statutory Auditor
Date: 30 Nelson Street LEICESTER LE1 7BA
Somerbys Limited is eligible to act as an auditor in terms of Section 1212 of the Companies Act 2006.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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## **STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2020**
|**Current Financial Year**
**Note**
**Income and endowments from**
Donations & legacies:
Donations, grants & legacies
2
Subscriptions
Gift aid on subscriptions
Other trading activities:
Income from meetings
6
Sale of publications
Sundry income
Investments
3
**Total income**
**Expenditure on:**
Raising funds:
Publication of journal
4
Speakers
5
Expenditure on meetings
6
Membership printing & postage
Charitable activities:
Grants and prizes
7
Subscriptions and donations
Administration costs
8
**Total expenditure**
**Net income before gains and losses on**
**investments**
Net gains/(losses) on investments
**Net income and net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**Funds**
**£**
1,886
20,985
3,275
-
23,520
-
46,822
96,488
9,302
2,044
2,544
6,563
16,960
20,871
46,629
104,913
(8,425)
128,742
120,317
1,520,409
1,640,726|**Restricted**
**Funds**
**£**
824
-
-
-
-
-
989
1,813
-
-
-
-
2,000
-
-
2,000
(187)
792
605
40,629
41,234|**Total**
**2020**
**£**
2,710
20,985
3,275
-
23,520
-
47,811
98,301
9,302
2,044
2,544
6,563
18,960
20,871
46,629
106,913
(8,612)
129,534
120,922
1,561,038
1,681,960|**Total**
**2019**
**£**
180,270
21,125
3,499
29,092
10,577
-
45,236|
|---|---|---|---|---|
|||||289,799|
|||||7,662
7,100
32,903
5,800
9,713
4,690
34,105|
|||||101,973|
|||||187,826
175,479|
|||||363,305
1,197,733|
|||||1,561,038|
All income and expenditure derive from continuing activities.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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## **STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2020**
|**Prior Financial Year**
**Note**
**Income and endowments from**
Donations & legacies:
Donations, grants & legacies
2
Subscriptions
Gift aid on subscriptions
Other trading activities:
Income from meetings
6
Sale of publications
Sundry income
Investments
3
**Total income**
**Expenditure on:**
Raising funds:
Publication of journal
4
Speakers
5
Expenditure on meetings
6
Membership printing & postage
Charitable activities:
Grants and prizes
7
Subscriptions and donations
Administration costs
8
**Total expenditure**
**Net income before gains and losses on**
**investments**
Net gains/(losses) on investments
**Net income and net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**Funds 2019**
**£**
178,270
21,125
3,499
29,092
10,577
-
44,182
286,745
7,662
7,100
32,903
5,800
9,713
4,690
34,105
101,973
184,772
172,518
357,290
1,163,119
1,520,409|**Restricted**
**Funds 2019**
**£**
2,000
-
-
-
-
-
1,054
3,054
-
-
-
-
-
-
-
-
3,054
2,961
6,015
34,614
40,629|**Total**
**2019**
**£**
180,270
21,125
3,499
29,092
10,577
-
45,236|
|---|---|---|---|
||||289,799|
||||7,662
7,100
32,903
5,800
9,713
4,690
34,105|
||||101,973|
||||187,826
175,479|
||||363,305
1,197,733|
||||1,561,038|
All income and expenditure derive from continuing activities.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**15**
## **BALANCE SHEET AT 31 DECEMBER 2020**
|**Note**
**Fixed assets**
Investments
10
Tangible assets
11
**Current assets**
Debtors and prepayments
12
Prepayments and other
debtors
Short term deposits
Cash at bank and in hand
**Creditors: amounts falling due**
**within one year**
Creditors
13
Accruals
**Net current assets**
**Net assets**
**Represented by:**
Restricted funds
15
Unrestricted funds
General funds
Designated funds
14|200
3,066
111,768
27
115,061
13,742
6,278
95,041
1,601,929
38,797|**2020**
**£**
1,586,586
333
1,586,919
1,681,960
41,234
1,640,726
1,681,960|**2019**
**£**
1,337,052
-|
|---|---|---|---|
||||1,337,052
10,200
4,350
224,954
1,383|
||||240,887|
||||-
16,901|
||||223,986|
||||1,561,038|
||||40,629
1,481,554
38,855|
||||1,520,409|
||||1,561,038|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**16**
**BALANCE SHEET AT 31 DECEMBER 2020**
These financial statements were approved on behalf of Council on 10 March 2021 and signed on its behalf by:
**PRESIDENT FOR COUNCIL Mr Ken Smith HONORARY TREASURER FOR COUNCIL Dr Andrew Williams COUNCIL MEMBER FOR COUNCIL Mr Adam Gwilt COUNCIL MEMBER FOR COUNCIL Dr Andrew Seaman**
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**17**
## **STATEMENT OF CASH FLOWS YEAR ENDED 31 DECEMBER 2020**
|**Note**
**Cash flow from operating activities**
Cash generated from operations
21
**Net cash flow from operating activities**
**Cash flow from investing activities**
Payments to acquire tangible fixed assets
Payments to acquire investments
Receipts from sales of investments
Interest received
Dividends received
**Net cash flow from investing activities**
**Net increase in cash and cash equivalent**
Cash and cash equivalents at 1 January 2020
Cash and cash equivalents at 31 December
2020
**Cash and cash equivalents consists of:**
Cash at bank and in hand
Short term deposits
**Cash and cash equivalents at 31 December**
**2020**|**2020**
**£**
(41,853)
(41,853)
(500)
(120,000)
-
146
47,665
(72,689)
(114,542)
226,337
111,795
27
111,768
111,795|**2019**
**£**
152,393|
|---|---|---|
|||152,393|
|||-
-
-
122
45,114|
|||45,236|
|||197,629
28,708|
|||226,337|
|||1,383
224,954|
|||226,337|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE NOTES FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2020**
**18**
1. **Accounting policies**
- (a) **General information and basis of preparation** . The Royal Archaeological Institute is a registered charity in England and Wales and its governing document is a Royal Charter dated 11 October 1961. The financial statements have been prepared on a going concern basis under the historical cost convention as modified by the revaluation of investments, with items recognised at cost or transaction value unless otherwise stated in the relevant note(s) to these financial statements. The financial statements are presented in sterling which is the functional currency of the Institute and rounded to the nearest £.
The financial statements have been prepared in accordance with the charity's governing document, the 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 (FRS 102) (effective 1 January 2019)". The charity is a Public Benefit Entity as defined by FRS102.
The financial statements have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a true and fair view. This departure has involved following the Statement of Recommended Practice for charities applying FRS 102 rather than the version of the Statement of Recommended Practice which is referred to in the Regulations but which has since been withdrawn.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
- (b) **Income recognition** . With the exception of voluntary income arising from legacies, donations and gifts, all income is recognised once the Institute has entitlement to the income, it is probable that the income will be received, and the amount receivable can be measured reliably.
- Legacies are credited to the Statement of Financial Activities once the Institute has been notified of its entitlement to the income and the value of the legacy is capable of financial measurement.
- Donations and gifts are credited to the Statement of Financial Activities when they are receivable. Gifts are valued by the Council on the basis of their worth to the Institute.
- (c) **Expenditure** is accounted for on the accruals basis and has been classified under headings that aggregate all costs related to the category.
- (d) **Fixed asset 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. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.
- The Institute does not acquire put options, derivatives or other complex financial instruments. The main form of financial risk faced by the Institute is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors and subsectors.
- (e) **Current asset investments** are short term liquid investments. These include cash on deposit and cash equivalents with a maturity of less than one year.
- (f) **Stock.** No value is placed on the stocks of unsold publications due to the resale value being negligible.
- (g) **Tangible fixed assets** are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
- Computer equipment - 33 1/3% per annum of cost.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
**19**
- (h) **Debtors and creditors receivable / payable within one year** with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.
## 1. **Accounting policies (continued)**
- (i) **Funds structure** . General funds are unrestricted funds which are available for use at the discretion of the Council in furtherance of the general objectives of the Institute. Designated funds comprise unrestricted funds that have been set aside by the council members for particular purposes.
- Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or have been raised by the Institute for particular purposes.
- (j) **Employee benefits** . When employees have rendered service to the Institute, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The Institute operates a defined contribution pension plan for the benefit of its employees. Contributions are charged as an expense as they become payable.
- (k) **Going concern** . The financial statements have been prepared on a going concern basis as the Council believes that no material uncertainties exist. The Council has considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure are sufficient with the level of reserves for the Institute to be able to continue as a going concern.
- (l) **Judgements and key sources of estimation uncertainty.** The Institute makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustments to the carrying amounts of the assets and liabilities within the next financial year are addressed below.
## _(i) Useful economic lives of tangible assets:_
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic levels and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets. See accounting policy note (above) for the useful economic lives for each class of assets.
## 2. **Donations, grants and legacies**
|Donations and gifts
Tony Baggs Prize
Publication grant Historic England
Student fund in memory of W Phillips|**Unrestricted**
**Funds**
**Restricted**
**Funds**
1,886
324
-
500
-
-
-
-
£1,886
£824|**Total**
**2020**
2,210
500
-
-
£2,710|**Total**
**2019**
180,070
-
-
200|
|---|---|---|---|
||||£180,270|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**20**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
## 3 **Investment income and interest receivable**
|Dividend income
Bank interest
4
**Publication of journal**
Expenditure on journals:
Publications and other expenses
Editors’ honoraria and expenses
5
**Speakers**
Travelling, lecture room hire
and accommodation
6
**Net meetings expenditure**
Income from Meetings
Expenditure on meetings
Honoraria
7
**Grants**
Research grants
Tony Clark Memorial Fund Grants
Grants – Cheney Bursary
Prizes
Bunnell Lewis Fund Grants|**Unrestricted**
**Funds**
46,675
147
£46,822
2,662
6,640
£9,302
£2,044
-
(256)
2,800
£2,544
16,287
-
173
500
-
£16,960|**Restricted**
**Funds**
989
-
£989
-
-
£-
£-
-
-
-
£-
-
-
-
500
1,500
£2,000|**Total**
**2020**
47,664
147
£47,811
2,662
6,640
£9,302
£2,044
-
(256)
2,800
£2,544
16,287
-
173
1,000
1,500
£18,960|**Total**
**2019**
45,114
122|
|---|---|---|---|---|
|||||£45,236|
|||||1,022
6,640|
|||||£7,662|
|||||£7,100|
|||||(29,092)
30,103
2,800|
|||||£3,811|
|||||9,100
-
613
-
-|
|||||£9,713|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**21**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
|8
**Administration costs**
Salary and pensions costs
Office admin
Bank charges
Warehouse
Computer equipment depreciation
Audit fees
Consultancy Fees
Accountancy and bookkeeping
Travel
Room Hire
9
**Staff costs and employee benefits**
The average monthly number of employees during the year
was:
**Number of employees**
Current
Retired (receiving pension)
**Employment costs**
Wages and salaries
Other pension costs|**Unrestricted and Total**
**2020**
**2019**
18,992
19,201
1,258
2,003
1,000
-
167
995
(1,000)
-
4,200
16,951
4,110
-
1,110
1,812
2,393
5,602
558
1,382
£46,629
£34,105
1
1
-
1
1
2
18,458
18,718
534
483
£18,992
£19,201|**Unrestricted and Total**
**2020**
**2019**
18,992
19,201
1,258
2,003
1,000
-
167
995
(1,000)
-
4,200
16,951
4,110
-
1,110
1,812
2,393
5,602
558
1,382
£46,629
£34,105
1
1
-
1
1
2
18,458
18,718
534
483
£18,992
£19,201|
|---|---|---|
|||£34,105|
|||1
1|
|||2|
|||18,718
483|
|||£19,201|
No employee received total employee benefits (excluding employer pension costs) of more than £60,000.
|10
**Investments**
**Listed investments**
Market value at 1 January 2020
Acquisitions at cost
Net unrealised investment gains/(losses)
Net realised investment gains/(losses)
Market value at 31 December 2020
Historical cost at 31 December 2020|**Total**
**2020**
1,337,052
120,000
129,534
-
£1,586,586
£1,115,364|**Total**
**2019**
1,161,573
-
175,479
-|
|---|---|---|
|||£1,337,052|
|||£995,364|
Listed investments held at 31 December 2020 comprised wholly of Charities Official Investment Funds.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**22**
**NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
|11
**Tangible fixed assets**
Cost:
At 1 January 2020
Additions
31 December 2020
Depreciation:
At 1 January 2020
Charge for year
31 December 2020
Net book value
At 31 December 2020
At 31 December 2019
12
**Debtors and prepayments**
Prepayments
Accrued income
Other debtors
13
**Accruals and deferred income**
Grant and Other Creditors
Accruals
Social security
Deferred income|**2020**
3,066
-
200
£3,266
**2020**
14,132
5,368
-
520
£20,020|**Computer**
**Equipment**
5,523
500|
|---|---|---|
|||6,023|
|||5,523
167|
|||5,690|
|||333|
|||-|
|||**2019**
4,350
-
10,200|
|||£14,550|
|||**2019**
2,758
5,272
-
8,871|
|||£16,901|
Deferred income of £520 (2019 - £8,871) relates to funds received in the year to 31 December 2020, for the year ended 31 December 2021.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**23**
**NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
## 14 **Designated funds**
The income funds of the Institute include designated funds comprising the following:
|Mr Frank S Cheney
Life Membership|**Balance**
**01/01/2020**
26,752
12,103
£38,855|**Incoming**
86
29
£115|**Expenditure**
(173)
-
(£173)|**Balance**
**31/12/2020**
26,665
12,132|
|---|---|---|---|---|
|||||£38,797|
The funds are held for the following purposes:
Mr Frank S Cheney
- In 1996 Council applied a bequest from Mr Frank S Cheney as a designated fund to pay for attendance by students at meetings. Providing there is sufficient income, 3% of the COIF Fixed Interest income will be allocated to the Mr Frank S Cheney Fund, £86 (2019: £86).
Life Membership
- Providing there is sufficient income, 1% of the COIF Fixed Interest income will be allocated to the Life Membership Fund.
- Receipts from Life Subscriptions to be applied in this way total £29 (2019: £29).
## 15 **Restricted funds**
The income funds of the Institute include restricted funds comprising special trusts and unexpended balances of grants held as funds to be applied for specific purposes, as follows:-
|The Bunnell Lewis Research Fund
The Tony Clark Memorial Fund
Tony Baggs Dissertation Prize|**Balance**
**01/01/2020**
26,145
14,484
-
£40,629|**Incoming**
**Expenditure**
617
(1,500)
696
-
500
(500)
£1,813
(£2,000)|**Gains**
1,296
(504)
-
£792|**Balance**
**31/12/2020**
26,558
14,676
-|
|---|---|---|---|---|
|||||£41,234|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**24**
**NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
## 15 **Restricted funds (continued)**
The funds are held for the following purposes: -
Bunnell Lewis Research Fund - To be applied in the furtherance of Roman archaeological research. Tony Clark Memorial Fund - To be applied to archaeological research with priority going to small organisations and individuals, with preference to projects in which archaeological prospecting and archaeomagnetic dating are significant components.
|Tony Baggs Fund
16
**Analysis of net assets between funds**
Fund balances at 31 December 2020
are represented by:
Fixed Assets
Fixed asset investments
Current assets
Current liabilities
**Total net assets**
Fund balances at 31 December
2019
are represented by:
Fixed asset investments
Current assets
Current liabilities
**Total net assets**|Tony Baggs Fund
16
**Analysis of net assets between funds**
Fund balances at 31 December 2020
are represented by:
Fixed Assets
Fixed asset investments
Current assets
Current liabilities
**Total net assets**
Fund balances at 31 December
2019
are represented by:
Fixed asset investments
Current assets
Current liabilities
**Total net assets**|-
For the undergraduate
**Unrestricted**
**Funds**
**Restricted**
**Funds**
333
-
1,557,113
29,473
103,300
11,761
(20,020)
-
£1,640,726
£41,234
1,308,371
28,681
228,939
11,948
(16,901)
-
£1,520,409
£40,629|-
For the undergraduate
**Unrestricted**
**Funds**
**Restricted**
**Funds**
333
-
1,557,113
29,473
103,300
11,761
(20,020)
-
£1,640,726
£41,234
1,308,371
28,681
228,939
11,948
(16,901)
-
£1,520,409
£40,629|-
For the undergraduate
**Unrestricted**
**Funds**
**Restricted**
**Funds**
333
-
1,557,113
29,473
103,300
11,761
(20,020)
-
£1,640,726
£41,234
1,308,371
28,681
228,939
11,948
(16,901)
-
£1,520,409
£40,629|dissertation award.
**Total**
**Funds**
333
1,586,586
115,061
(20,020)
£1,681,960
1,337,052
240,887
(16,901)|dissertation award.
**Total**
**Funds**
333
1,586,586
115,061
(20,020)
£1,681,960
1,337,052
240,887
(16,901)|
|---|---|---|---|---|---|---|
|||||£41,234|||
|||1,308,371
228,939
(16,901)
£1,520,409||28,681
11,948
-
£40,629|||
|||||||£1,561,038|
## 17. **Transfer between funds**
No transfers between funds were made in the year.
## 18. **Pension and other post-retirement benefits**
The Institute operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £534 (2019 - £483).
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**25**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2020**
## 19. **Capital Commitments**
Contractual commitments for the acquisition of tangible fixed assets contracted for but not provided in the financial statements amounted to £nil (2019 - £nil).
## 20. **Council members’ remuneration and related party transactions**
No members of the Council received any remuneration in respect of their services as a member of the Council during the current or preceding year, although a sum totalling £2,140 (2019 - £5,756) was paid by way of travelling expenses to twenty-five Council and Committee members during the year. Honoraria and expenses of £9,440 (2019 - £9,440) were paid to the Meetings Secretary, Assistant Meetings Secretary, Editor and Reviews Editor of the _Archaeological Journal,_ and Newsletter Editor. No further related party transactions require disclosure.
## 21 **Reconciliation of net income to net cash flow from operations**
|**Net income for year**
Depreciation of tangible fixed assets
Gains on investments
Investment income
(Increase)/decrease in debtors
(Decrease)/increase in creditors
Net cash flow from operations|**2020**
120,922
167
(129,534)
(47,811)
11,284
3,119
(£41,853)|**2019**
363,305
(175,479)
(45,236)
3,055
6,748|
|---|---|---|
|||£152,393|