## **THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**COUNCIL REPORT AND FINANCIAL STATEMENTS 31 DECEMBER 2021**
**SOMERBYS LIMITED CHARTERED ACCOUNTANTS 30 NELSON STREET LEICESTER LE1 7BA**
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
## **CONTENTS YEAR ENDED 31 DECEMBER 2021**
|**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 (Retired 22 June 2021)|
|---|---|
||Ms Lindsay Allason-Jones (Elected 22 June 2021)|
|Vice-Presidents|Dr Mark Gardiner (Retired 22 June 2021)|
||Professor Barbara Yorke (Retired 22 June 2021)|
||Mr Hedley Swain (Elected 22 June 2021)|
||Mr Paul Oldham|
||Ms Kathryn Stubbs|
|Honorary Secretary|Dr Pete Wilson (Retired 22 June 2021)|
||Mr Brian Kerr (Elected 22 June 2021)|
|Honorary Treasurer|Dr Andrew Williams (Retired 22 June 2021)|
||Vacant Post|
|Honorary Editor|Dr Lisa-Marie Shillito|
|Meetings Secretary|Dr Rachel Swallow (Resigned 12 May 2021)|
||Mr Peter Ginn (Appointed 15 July 2021)|
|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**
**2**
**THE ANNUAL REPORT OF THE COUNCIL YEAR ENDED 31 DECEMBER 2021**
The Council presents the statutory report with the accounts of The Royal Archaeological Institute for the year ended 31 December 2021
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. The Institute publishes a journal and awards research and other grants annually. It holds 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.
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, 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 THE ANNUAL REPORT OF THE COUNCIL (CONTINUED) YEAR ENDED 31 DECEMBER 2021**
**3**
## **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**
Despite the impact of Covid-19, the Royal Archaeological Institute has continued to publish T _he Archaeological Journal,_ deliver lectures, hold meetings across the country and to award grants in support of archaeological and historical research.
## Publications
Volume 178 of the Archaeological Journal was published online during the year. The printed versions of Volumes 177 and 178 have, regrettably, experienced distribution problems which, it is hoped, will be rectified in 2022.
The digitised version of the Archaeological Journal Volumes 1 - 178 is currently available online to libraries and to members through the Institute’s 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 online and at the Rooms of the Society of Antiquaries of London, Burlington House:
**13 January** (Live streamed) Petuaria revisited: new light on Roman Brough-on-Humber Dr Peter Halkon
**10 February** (Live streamed)
Fortifying rulership: the emergence and development of Pictish power centres in Northeast Scotland, c. 3001000 AD
Professor Gordon Noble
**10 March** (Live streamed) Roman frontiers in their landscape settings Professor David Breeze
**14 April** (Live streamed) 3 p.m. Work by the Roman Roads Research Association David Ratledge, Rob Entwistle and Mike Haken 5 p.m. M.R. James’s East Anglia
Dr Richard Hoggett
**13 May** (Live streamed) The archaeology of the Greenwich World Heritage Site Dr Jane Sidell
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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## **THE ANNUAL REPORT OF THE COUNCIL (CONTINUED) YEAR ENDED 31 DECEMBER 2021**
**22 June** (Live streamed)
4.15 Annual General meeting
5 p.m. The Staffordshire Hoard and the history of seventh-century England Professor Barbara Yorke
**13 October** (Burlington House and Live streamed) Putting the pieces back together: what slighting can tell us about the past Dr Richard Nevell
**10 November** (Burlington House and Live streamed) Tattershall Castle: the newly built personality of Ralph Lord Cromwell Dr James Wright
**8 December** (Burlington House and Live streamed) Talking torcs: a craft perspective on Iron Age gold Dr Tessa Machling and Roland Williamson
During 2021, the Institute’s lectures continued to be made available online to all.
## Meetings
The Spring Meeting in Dover was cancelled due to Covid restrictions. On 15 May **,** an alternative online event (Zoom) on Dover’s Environs was held. The following three papers were presented **:** 'Julius Caesar’s Landing Sites' by Andrew Fitzpatrick, ‘Roman Richborough: Some New Insights' by Tony Willmott and **‘** The archaeology of Hellfire Corner: National Trust sites at the White Cliffs' by Nathalie Cohen.
The Summer Meeting scheduled for Copenhagen and Malmö was postponed until 2022.
The Autumn Meeting in Newark was postponed until October 2022. An alternative meeting was held from 4-9 October and was based in Caernarfon. The President, Lindsay Allason-Jones and the Honorary Secretary, Brian Kerr attended together with twenty-seven members. The meeting was led by the Meetings Secretary, Peter Ginn and the Assistant Meetings Secretary, Caroline Raison. The castles of Caernarfon, Beaumaris and Conwy were visited. The Llanberis Slate Mine, Segontium, Penrhyn, Plas Mawr, and Plas Newydd were also on the list of sites. The President and Honorary Secretary helped guide the group around some of the above sites. Dr Peter Jarvis was kind enough to help guide the group around Plas Mawr, and the Institute was grateful for his help. On the final day, a local archaeologist, Rhys Mwyn guided the group around some of the prehistoric sites of Anglesey. We were lucky enough to see inside Barclodiad y Gawres, which is usually locked, together with Din Dryfol, Castell Bryn Gwynn,Trefignath Burial Chamber and the South Stack Huts. The gallery at Oriel Mon was also visited. The Institute would like to thank the President, Honorary Secretary, Dr Jarvis and Rhys Mwyn for the guiding as well as Frances Lynch and Rhys for their help in planning the visits.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**5**
## **THE ANNUAL REPORT OF THE COUNCIL (CONTINUED) YEAR ENDED 31 DECEMBER 2021**
## Research Grants
Research grants totalling £18,906 were awarded in 2021, as follows:
|Dr Benjamin Roberts|How ancient are the massive Cornish tin ingots found around St Austell?|£1,134|
|---|---|---|
|Beverley Still|Exploring the prehistoric landscape of Upper Teesdale (County Durham)|£2,192|
|Dr Peter Halkon|Petuaria revisited – looking for a lost Roman theatre|£2,821|
|Dr Rob Wiseman|Gathering the harvest: collating evidence on the rural economy of Iron|£4,620|
||Age and Roman Cambridgeshire||
|Dr Robert Fry|What lies beneath Longis? Searching for Iron Age and Roman Alderney|£3,890|
|Prof Steven Mithen|Rubha Port a t-Seilich: excavating an Upper Palaeolithic site in Western|£4,249|
||Scotland||
The Institute made donations of £1,500 to the library of the Society of Antiquaries of London, where members have reading rights, and of £10,000 to the Council for British Archaeology’s Archaeological Achievement Awards (Early Career Archaeologist).
## Cheney Bursaries
No Cheney Bursaries were awarded in 2021.
## Archaeological Achievement Awards
The Institute sponsored the Early Career Archaeologist Award which was presented to Grace Griffith and the Highly Commended Award was presented to Dr Iris Kramer. We are grateful to our member Dr Tanja Romankiewicz for presenting the award in an online ceremony on behalf of the Institute.
## Membership
Council regrets to note the deaths of ten members during the year, of whom two were Life members and eight were Ordinary members. As a result of the review of the membership roll, twenty-four Ordinary members and six Student members were removed from the membership list due to non-payment. Eight Ordinary members resigned. Four Student members and one Associate member each became an Ordinary member and one Associate member and two Ordinary members each became a Life member. Sixty-five new members were elected: fortyfour Ordinary members, one Life member, three Associate members and seventeen Student members. Six of the new Student members are sponsored by the Institute.
||**2021**|**2020**|
|---|---|---|
|Life members|91|89|
|Ordinary members|526|519|
|Associate members|75|74|
|Student members(under 26 years of age)|36|29|
|Total Individual members|728|711|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE THE ANNUAL REPORT OF THE COUNCIL (CONTINUED) YEAR ENDED 31 DECEMBER 2021**
**6**
## **Financial Review**
The Statement of Financial Activities shows net incoming resources of £17,424 (2020: £8,612 net outgoing resources) 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 2021 are £1,913,235 (2020: £1,681,960), which are more than sufficient to meet its obligations.
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 2021, 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 2020 and will be considered by Council during 2021 and 2022._
- Strategic Review brief established and monitored by working group _– Council urged to beware of exceeding operational capacity and alienating current members._
- 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 – _Three articles were published Open Access in Volume 178._
The Covid Pandemic has impacted on the way societies function in unforeseen ways and this has revealed unprecedented risks. During 2022, the Institute’s Risk Policy will be reviewed and any identified shortcomings addressed
## **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 investment income as part of incoming resources to meet charitable expenditure year by year, in line with its investment policy.
Reserves at 31 December 2021 amounted to £1,913,235 and of this £1,800,830 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 £100,365.
## **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 THE ANNUAL REPORT OF THE COUNCIL (CONTINUED) YEAR ENDED 31 DECEMBER 2021**
**7**
## **Plans for 2022**
The Institute plans to publish Volume 179 of the _Archaeological Journal_ in the Summer of 2022, 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 be livestreamed and in-person at Burlington House if possible. The Institute will consider and decide on its future policy for the holding of lectures in view of the threat to the Society of Antiquaries’ tenancy at Burlington House. The website will include a synopsis of lecture contents, and the lectures will be available online for the benefit of Ordinary members. Most lectures will also be available to the general public on the Institute’s YouTube channel.
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 the Lune Valley 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 2022, the Undergraduate Dissertation Prize will be judged. The Institute will contribute to work with other bodies, such as the Council for British Archaeology, to promote national awards.
The recommendations arising from the External Review produced by Dr Gemma Tully were passed at the Institute’s Annual General Meeting on 22[nd] June 2021. When the new Council met in October 2021, it was felt that we could not proceed directly to the recruitment of new posts in light of the continuing constraints and uncertainties imposed by the continuing Pandemic, and by the pressing need to address issues relating to the Governance of the Institute. It was therefore agreed to prioritise changes to the Governance of the Institute, building on the recommendations contained in the Review, before proceeding to the implementation of other recommendations as are still considered applicable, desirable and affordable. A programme of priorities will be devised, and sub-committees established when needed, to include members with specific skills, to address specific recommendations.
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**
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**THE ANNUAL REPORT OF THE COUNCIL (CONTINUED) YEAR ENDED 31 DECEMBER 2021**
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.
## **Officers from June 2021 to May 2022**
## President
Mr Ken Smith (E) (R) (A) (M) Ms Lindsay Allason-Jones (E) (R) (A) (M)
Retired 22 June 2021 Elected 22 June 2021
## Council members Elected/Retired/Resigned (6 Vacant Posts)
Mr Paul Oldham (Vice-President) (A) Dr Mark Gardiner (Vice-President) Professor Barbara Yorke (Vice-President) Ms Kathryn Stubbs (Vice-President) (M) Mr Hedley Swain (Vice-President) 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 Ms Alison Telfer
Retired 22 June 2021 Retired 22 June 2021
Elected 22 June 2021 Retired 22 June 2021 Retired 22 June 2021 Retired 22 June 2021
Resigned 12 May 2021
Resigned 12 May 2021 Resigned 5 February 2021
## Officers
## Position
Dr Pete Wilson
Mr Brian Kerr
Dr Andrew Williams
Honorary Secretary: Retired 22 June 2021 Honorary Secretary: Elected 22 June 2021 Honorary Treasurer: Retired 22 June 2021 (Vacant Post)
Dr Lisa-Marie Shillito Dr Rachel Swallow
Mr Peter Ginn
Honorary Editor Meetings Secretary: Resigned 12 May 2021
Meetings Secretary: Appointed 15 July 2021
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 2021**
The following members of the Institute also served on committees from May 2020 – June 2021:
Dr Brendan O’Connor (A) Professor Martin Millett (A) Sir Rupert Jackson (A) Mr Edward Thornton-Firkin (A) Dr Alex Gibson (A) Dr Andrew David (R; _Tony Clark Memorial Fund_ ) Mr William J. Britnell (R) (E) Dr Margaret Nieke (E) Professor Anthony Quiney (M) Dr Stephen Sherlock (M) (R) Dr Eileen Wilkes (R) Ms Nathalie Cohen (M)
(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 9 March 2022.
**PRESIDENT Ms Lindsay Allason-Jones**
**FOR COUNCIL Mr Adam Gwilt**
**HONORARY SECRETARY Mr Brian Kerr**
**FOR COUNCIL Mrs Sue Shaw**
**THE ROYAL ARCHAEOLOGICAL INSTITUTE INDEPENDENT AUDITORS’ REPORT TO THE COUNCIL YEAR ENDED 31 DECEMBER 2021**
**10**
## **Opinion**
We have audited the financial statements of The Royal Archaeological Institute (the ‘Institute’) for the year ended 31 December 2021 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 2021, 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**
In auditing the financial statements, we have concluded that the 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 foundation’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
## **Other information**
The 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 2021**
## **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.
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.
The risk of not detecting a material misstatement resulting from error is considered to be low. The risk of not detecting a material misstatement resulting from fraud is higher, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls.
In the context of the Royal Archaeological Institute, we have not identified any specific laws and regulations other than general commercial laws and regulations such as: Charities Act 2011; Charity Commission guidance; and GDPR.
In response to the audit risks identified, we have undertaken the following procedures:
- Enquiry of Trustees to identify any instances of non-compliance with laws and regulations.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
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## **INDEPENDENT AUDITORS’ REPORT TO THE COUNCIL YEAR ENDED 31 DECEMBER 2021**
- Enquiry of Trustees of actual and/or potential litigation and claims.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluation of the rationale of any significant transactions falling outside the normal course of activities.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
## **Use of our report**
This report is made solely to the 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 2021**
|**Current Financial Year**
**Note**
**Income and endowments**
Donations, grants & legacies
2
Subscriptions
Gift aid on subscriptions
Income from meetings (excursions)
6
Sale of publications
Sundry income
Investment income
3
**Total income**
**Expenditure:**
Archaeological Journal
4
Lectures
5
Meetings (excursions)
6
Printing & postage
Charitable activities:
Grants and prizes
7
Subscriptions and donations
Administration and governance costs
8
**Total expenditure**
**Net income before gains and losses on**
**investments**
Net gains on investments
**Net income and net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
**Total funds carried forward**|**Unrestricted**
**Funds**
**£**
360
23,485
3,223
12,420
29,098
-
47,964
116,550
9,680
2,405
15,156
6,341
13,966
12,615
35,042
95,205
21,345
209,653
230,998
1,640,726
1,871,724|**Restricted**
**Funds**
**£**
-
-
-
-
-
-
1,019
1,019
-
-
-
-
4,940
-
-
4,940
(3,921)
4,198
277
41,234
41,511|**Total**
**2021**
**£**
360
23,485
3,223
12,420
29,098
-
48,983
117,569
9,680
2,405
15,156
6,341
18,906
12,615
35,042
100,145
17,424
213,851
231,275
1,681,960
1,913,235|**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|
All income and expenditure derive from continuing activities.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**14**
## **STATEMENT OF FINANCIAL ACTIVITIES YEAR ENDED 31 DECEMBER 2021**
|**Prior Financial Year**
**Note**
**Income and endowments**
Donations, grants & legacies
2
Subscriptions
Gift aid on subscriptions
Income from meetings (excursions)
6
Sale of publications
Sundry income
Investment income
3
**Total income**
**Expenditure:**
Archaeological Journal
4
Lectures
5
Meetings (excursions)
6
Printing & postage
Charitable activities:
Grants and prizes
7
Subscriptions and donations
Administration and governance costs
8
**Total expenditure**
**Net income before gains and losses on**
**investments**
Net gains 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|
All income and expenditure derive from continuing activities.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**15**
## **BALANCE SHEET AT 31 DECEMBER 2021**
|**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|3,273
3,123
114,540
2,086
123,022
5,000
5,617
112,405
41,511
1,830,503
41,221
1,871,724|**2021**
**£**
1,800,437
393
1,800,830
1,913,235
1,913,235|**2020**
**£**
1,586,586
333|
|---|---|---|---|
||||1,586,919
200
3,066
111,768
27|
||||115,061|
||||13,742
6,278|
||||95,041|
||||1,681,960|
||||41,234
1,601,929
38,797|
||||1,640,726|
||||1,681,960|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**16**
## **BALANCE SHEET AT 31 DECEMBER 2021**
These financial statements were approved on behalf of Council on 9 March 2022 and signed on its behalf by:
**PRESIDENT FOR COUNCIL Ms Lindsay Allason-Jones Mr Adam Gwilt**
**HONORARY SECRETARY FOR COUNCIL Mr Brian Kerr Mrs Sue Shaw**
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**17**
## **STATEMENT OF CASH FLOWS YEAR ENDED 31 DECEMBER 2021**
|**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 2021
Cash and cash equivalents at 31 December 2021
**Cash and cash equivalents consists of:**
Cash at bank and in hand
Short term deposits
**Cash and cash equivalents at 31 December 2021**|**2021**
**£**
(43,812)
(43,812)
(340)
-
-
13
48,970
48,643
4,831
111,795
116,626
2,086
114,540
116,626|**2020**
**£**
(41,853)|
|---|---|---|
|||(41,853)|
|||(500)
(120,000)
-
146
47,665|
|||(72,689)|
|||(114,542)
226,337|
|||111,795|
|||27
111,768|
|||111,795|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE NOTES FORMING PART OF THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2021**
**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 2021**
**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|**Unrestricted**
**Funds**
**Restricted**
**Funds**
360
-
-
-
360
-|**Total**
**2021**
360
-
360|**Total**
**2020**
2,210
500|
|---|---|---|---|
||||2,710|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**20**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2021**
## 3 **Investment income and interest receivable**
|Dividend income
Bank interest
4
**Archaeological journal**
Expenditure on journals:
Publications and other expenses
Editors’ honoraria and expenses
5
**Lectures**
Travelling, lecture room hire
and accommodation
6
**Meetings (excursions)**
Income from Meetings
Expenditure on meetings
Honoraria
7
**Grants**
Research Grants
Tony Clark Memorial Fund
Cheney Bursary
Prizes
Bunnell Lewis Fund|**Unrestricted**
**Funds**
47,951
13
47,964
3,040
6,640
9,680
2,405
12,420
(13,356)
(1,800)
(2,736)
13,966
-
-
-
-
13,966|**Restricted**
**Funds**
1,019
-
1,019
-
-
-
-
-
-
-
-
-
2,690
2,250
-
-
4,940|**Total**
**2021**
48,970
13
48,983
3,040
6,640
9,680
2,405
12,420
(13,356)
(1,800)
(2,736)
13,966
2,690
2,250
-
-
18,906|**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|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**21**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2021**
|8
**Administration and governance costs**
Salary and pensions costs
Office administration
Bank charges
Computer equipment depreciation
Audit fees
Consultancy fees
Accountancy and bookkeeping
Travel and accommodation
Administration travel
Governance
Room hire
9
**Staff costs and employee benefits**
The average monthly number of employees during the year was:
**Number of employees**
Current
**Employment costs**
Wages and salaries
Other pension costs|**Unrestricted and Total**
**2021**
**2020**
18,991
18,992
1,367
1,1229
1,101
280
1,000
167
4,440
400
4,200
16,951
927
1,110
3,302
160
3,323
2,140
253
130
751
558
35,042
46,629
1
1
1
1
18,452
18,458
539
534
18,991
18,992|**Unrestricted and Total**
**2021**
**2020**
18,991
18,992
1,367
1,1229
1,101
280
1,000
167
4,440
400
4,200
16,951
927
1,110
3,302
160
3,323
2,140
253
130
751
558
35,042
46,629
1
1
1
1
18,452
18,458
539
534
18,991
18,992|
|---|---|---|
|||46,629|
|||1|
|||1|
|||18,458
534|
|||18,992|
No employee received total employee benefits (excluding employer pension costs) of more than £60,000.
|10
**Investments**
**Listed investments**
Market value at 1 January 2021
Acquisitions at cost
Net unrealised investment gains/(losses)
Net realised investment gains/(losses)
Market value at 31 December 2021
Historical cost at 31 December 2021|**Total**
**2021**
1,586,586
-
213,851
-
1,800,437
1,115,364|**Total**
**2020**
1,337,052
120,000
129,534
-|
|---|---|---|
|||1,586,586|
|||1,115,364|
Listed investments held at 31 December 2021 comprised wholly of Charities Official Investment Funds.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**22**
**NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2021**
|11
**Tangible fixed assets**
Cost:
At 1 January 2021
Additions
31 December 2021
Depreciation:
At 1 January 2021
Charge for year
31 December 2021
Net book value
At 31 December 2021
At 31 December 2020
12
**Debtors and prepayments**
Prepayments
Accrued income
Other debtors
13
**Accruals and deferred income**
Grants and Other Creditors
Accruals
Social security
Deferred income|**2021**
3,123
-
3,273
6,396
**2021**
5,000
5,537
-
80
10,617|**Computer**
**Equipment**
6,023
340|
|---|---|---|
|||6,363|
|||5,690
280|
|||5,970|
|||393|
|||333|
|||**2020**
3,066
-
200|
|||3,266|
|||**2020**
14,132
5,368
-
520|
|||20,020|
Deferred income of £80 (2020 - £520) relates to funds received in the year to 31 December 2021, for the year ended 31 December 2022.
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**23**
**NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2021**
## 14 **Designated funds**
The income funds of the Institute include designated funds comprising the following:
|Mr Frank S Cheney
Life Membership|**Balance**
**01/01/2021**
26,665
12,132
38,797|**Incoming**
74
2,355
2,424|**Expenditure**
-
-
-|**Balance**
**31/12/2021**
26,739
14,482|
|---|---|---|---|---|
|||||41,221|
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, £74 (2020: £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 £25 (2020: £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**
**01/01/2021**
26,558
14,676
-
41,234|**Incoming**
**Expenditure**
654
(2,250)
365
(2,690)
-
-
1,019
(4,940)|**Gains**
3,168
1,030
-
4,198|**Balance**
**31/12/2021**
28,130
13,381|
|---|---|---|---|---|
|||||41,511|
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**24**
**NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2021**
## 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 -
For the undergraduate dissertation award.
|16
**Analysis of net assets between funds**
Fund balances at 31 December 2021
are represented by:
Fixed Assets
Fixed asset investments
Current assets
Current liabilities
**Total net assets**
Fund balances at 31 December 2020
are represented by:
Fixed Assets
Fixed asset investments
Current assets
Current liabilities
**Total net assets**|**Unrestricted**
**Funds**
393
1,770,964
110,984
(10,617)
1,871,724
333
1,557,113
103,300
(20,020)
£1,640,726|**Restricted**
**Funds**
-
29,473
12,038
-
41,511
-
29,473
11,761
-
£41,234|**Total**
**Funds**
393
1,800,437
123,022
(10,617)
1,913,235
33
1,586,586
115,061
(20,020)|
|---|---|---|---|
||||£1,681,960|
## 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 £539 (2020 - £534).
**THE ROYAL ARCHAEOLOGICAL INSTITUTE**
**25**
## **NOTES FORMING PART OF THE FINANCIAL STATEMENTS (CONTINUED) YEAR ENDED 31 DECEMBER 2021**
## 19. **Capital Commitments**
Contractual commitments for the acquisition of tangible fixed assets contracted for but not provided in the financial statements amounted to £nil (2020 - £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 £3,302 (2020 - £2,140) was paid by way of travelling expenses to twenty-five Council and Committee members during the year. Honoraria and expenses of £8,440 (2020 - £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**
|**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|**2021**
231,275
280
(213,851)
(48,983)
(3,130)
(9,403)
(43,812)|**2020**
120,922
167
(129,534)
(47,811)
11,284
3,119|
|||(41,853)|