RSE Scoiland ftsundaiion Financial Statem¢nts and Trustees, Annual Report Y¢&r ended 31 Mar¢h 2025 RSE Scotland Foundation Financial statements and Trustees, Annual Report Charity number SC024636 Year ended 31 March 2025 RSE Scotland Foundaiton Finan¢i81 StstemeHts gDd Trustees, AknnuAI Report Yvar ¢Dd¢d 31 March 2025 Contents Reference and Adminlstrative Details Trustees. Annual Report Independent Auditorfs Report to the Trustees of RSE Scotland Foundation statement of Financlal Activltles li Balance Sheet 12 Statement of Cash Flows 13 Notes to the Financial Statements 14 RSE Scotland Found8lÉon TrindiKiJI Siaiemtnig #nd Tru4tves' Aniiual keport Y¢ai' ¥ll(ILd 31 Murch 2025 Reference and Administrative Detalls The Trustees of the Foundation during the year and up to the date ¢f signing the tinancial statements were 3$ follows-. Nomintsted Trustees Trustees are appointed by the Council o( the Royal Society of Edfrnbureh (the RSEI in accordance wrth the ptDvisions of the Trust Deed. Five Ol'ficeis of the RSE are ex-officio Trustees and the minimum number of nomlnated Trustees 15 four. The Foundotion is registered iri Scotland u5 Scott15h Churity No. SC024636 22~26 George Street, EdinbuTgh EH2 2PQ BANKERS BANK OF SCOTLAND PLC THE MOUND, EDif48URGH EHI IY2 ALtDITORS HENOf RSOY LcGSl£ LLP LEVEL 5. T￿E STAMP OFFICE. 10-14 WATERLOD PLACE, EDINBb'RGH, EHI 3EG SOLICITORS SHEPHERD & WEDOEIE8URf4 LLP 9 HAYNIARKET SQLIARE, EDINBURGH EH3 8FY Lliariry number SLU2463b RSE Sc()IlaHd Foundatio Trinanci01 Statements and Tn]stees' Annual R¢port Y¢aT ended 31 March 2025 Trustees, Annual Report The Trustee5 present their report together with the financial Statements for the year ended 31 March 2025. The legal and administrative information set out on pa8e I forms part of this report. Objectives ondArtAvities of the Foundation The public benefit oblectives Contained in the RSE Scotland Foundation (the "Foundation.) Trust deed are to: Advance the education of the PLFblic in Scotlarnd in science, engineering and technology. Research and explore developing areas of learning and human knowledge and to disseminate bv whatever mean5 the results of such research, particularly in Scotland. Promote the greater public understanding of èll sciences, engineering and technology and their part in increasing the wealth and quality of life of the people of Scotland. Encourage for the benefit of the people of Scotland collaboration between the academic and business communities in Scotland. Preserve and tonserv@ the architectural, scientif ic and cultural herltage of Scotland and to collect, for the purposes of prese￿atiOn. conservation and exhibition, for the benefit of the people of Scotland, writings, instruments, artefacts. specimen5 of natural history and any other material which, in the oplnion of the Trustees relates to the cultural and scientific heritage of Scotland. Call upon the broad intellectual resourceg of the Fellowship of the Royal Society of Edinburgh and such other Societies and organisation5 as appropriate in the promotion of the fore8oing purposes. In fulfilllng these aims. during the year the Foundation has.. Published two learned journals. Managed the assets of the Caledonian Research Foundation Fund, to fund appointments Ltnder the research awards scheme5. Rented surplus space to provide income to support charltable activities. Achievements and performance Publlcatlons The Foundation publishes two journals, Earth ond Environmentt715cience Transoctions of the Royul society of Edinburgh (EESTRSE) and Proceeding5 01 the Royol society of Edinburgh, Section A.. Mothemotics IPro¢eeding5 A), on behalf of the RSE. Six iSSLtes of Proceedings A were published during the 2024-25 financial year, Dn a regular bi-monthly schedule issues 154.2 to 154.6120241 and 155. 1120251. Two EEsfRSE issues were published, 115.1-2120241 on a h31f- yearly basis. Both Journals were published under the current Cambfidge University Press agreement. Copie5 Of the journals are sent to over 300 Univer51ties, Libraries, Academies and Institutions world-wide, as part of the R5E'5 long-standing exchange programme. The journals are also part of the Research4Life scheme, which provides institutions in lower income co¢Jntries with online access to research published by the journal5. Caledonian Research Foundation (CRF) In March 2009 the Foundation re¢elved o transfer of assets from the Caledonian Research Foundation ICRFI. Under the transfer agreement the Trustees agreed to honour the existing grant-moking commitments of the CRF in 5UPPOrt of scientific research, and thereafter to apply the assets at their discretion, with the proviso that they should have regard to the existing activities of the CRF, but that this should not place any restrictlons on the purposes for which the assets may be used. Whilst the grant-making policy since 2009 has been to continue to support a wide range of research, including through Postdoctoral Research Fellowships, European Vi51ting Fellowships and Postgraduate Scholarships, during 2024-25, the CRF Fund, in conjunction with The CarneEie Trust for the Universities of Scoiland, supported Charity number SC024636 RSE Scoiland Foundatio Financial Staiemenis and Trustees. Annual Report Year ended 31 Marcli 2025 Achievement5 undperfomiance (continued) three students from the Universities of Glasgow, Aberdeen and St Andrews. with duration of funding ranging from 2021-2026. The research subjects funded comprised- M8thematical Physics Biomechanical En8ineerin8 Ecologv. The CRF Fund also supported a new partnership between the Royal Society of Edinburgh {the "RSE"l and the Ministry of Science and Culture of Lower Saxony I"Lower Saxonw) by providing funding to help early to mid- areer academics foster new international collaborations between researcher5 in Scotland and Lower Saxony. The joint research projects may be in any area of academic reseorch. but there will be particular focus on themes identified by the research sector such as ener8y, life sciences, social mobiliry and security sectors. The Memorandum of Understanding between the RSE and Lower Saxony was signed on 12 February 2025. with the first research awards being announced during july 2025. Property During 2024-25. the Foundation rented space to Lakeland for their Hanover Street shop and let office space to the ITcompany Corero Network Security. Further, it provided short term lets of parts of the facilities for meetings and conference facilitie5 to external parties. The Foundation resumed letting Space dLtrin8 the Edinburgh Fringe Ithe "Fringe'l, with Greenside Venues hiring space across the building for the durètion of the Fringe. Following the success of 2024-25, Greenside Venues has rehired the space for the 2025 Fringè. Finally. the facilities are also used by the RSE for internal and public engègement events. See income notes below for further detail. Looking to the Future The CRF Fund Going forward, the CRF Fund will be used to fund two new initiatives. 2-years of funding has béen committed to in relation to the Lower Saxony initiative detailed above, with funding currently in place into financial year 2026127. In addition, funding is being prDvided to a Researth Leadershlp programme whereby Scotland-ba5ed early career academics who demonstrate research ambition to lead significant project5 will be supported in developing research leadership skills. This proEramme will be launched during the 2025126 Financial Year and will continue for circa 2 years. A5 part of the 2025126 Bud8et, the Foundation Board agreed to provide c.£691,OtXl of funding via the CRF Fund to the on-80ing RSE Research Award5 programme, with the CRF Fund financing the autumn 2025 Research Awards open call which will further help support Scotland's vibrant research sector across a range of academic disciplines. Finally, the Foundation is in dialogue with The Carnegie Trust for the Universities of Scotland regarding the next tranche of funding the CRF Fund may provide to help support widening ètcess to stLfdents who wish to continue studyin8 at a Postdoctoral level. It Is hoped that discussions will conclude during the 2025126 Financial Year. Buildin8 Redevelopment The RSE, in conjunction with the Foundation, is undertaking a review of its buildings with a view to redeveloping them. A Buildings Feasibility Study Ifunded by the RSEI was completed during the 2024125 Financial Year, with plans forthe redevelopment of the building now being created together with the as50Clated fundraisin8 required to fund the programme of work. The plans are being developed on a phased basis, and the refurbishment Wofks are unlikely to Start before 2027. However, the works will impact the venue-lettin8 activitie5 of the Foundation durin8 the build phase. C'harity number SC024636 RSI Scoiland Foundatio Financial Stai¢men15 lind Ttustees. Annual Report Year endtd 31 March 2025 Finonciol review andpolicies Income and expendlture Income for the year endin8 31 March 2025 totalled £1,078,879. an increase of £26,308 compared to the prior year12024 £1,052,571). This was primarily driven by an increase in Venue income from conference facilities letting income1+£47,4391 due to Greenside Venues hiring space during the Edinburgh Fringe Festival and higher other letting income throughout the year as well as increased Publications income being recognised in the year, including income from sales of the digital archive {+£13,8681. This offset a decrease in Licence fees income due from the RSE1-£30,0901. The reduction in this income is due to lower costs being incurred that were recharged to the RSE. Investment income received in the year amounted to £324,656, a reduction of £7,231 compared to the prior year12024 £331,8871. Rental arsd service chorge income in respect of sublets of The Royal Society of Edinburgh's IRSEI George Street Buildings at 53155 Hanover Street totalled £168,869 (2024 £166.547}. Grants of £59,838 {2024 £87.8261 were paid to The Carnegie Trust for the Universities of Scotland to fund the CRF activitiÈs administered by them. The year-on-year reduction in grants paid was due to one of the PHD students completing their studies during the year. The net operating result for the year was a surplu5 of £201,771 {2024 Surplu5 £100,866J. However, total reallsed and Ltnreèli5ed 105se5 On the investments of the CRF Fund amounted to £91,605 versus total realised and unre?lised gains of £561,724 for 2024, a net movement of £653,329. As a Consequence, net income and movement on funds for the year was a surpltss of £110,16612024 surpltss £622,590) comprising an unrestricted general f und surplus of £109,676 12024 deficit £93,273> and an unrestritted CRF designated surplus of £490 {2024 surplus £755,863). Balance sheet Fixed assets 3t 31 Marth 2025 wère £1.202,032 12024 £1,278.534}. Additions during the year included new equipment and computers totalling £28,358 (2024 £58,601). The market value of the investments of the CRF fsjnd at 31 March 2025 amounted to £10,139,396 12024 EIO,280,3251. The overall decrease in the value of the investments of £140,929 during 2024-25 is the net impact of an unrealised105s on investment of £36,255 and realised loss on investment of £261,313, offset by other cash movements of £156,639. This is compared to a net overall increase in market value in 2023-24 of £515,058, which included an unrealised gain on investment of £S48,802. Overall, debtors have increased by E25.016 from £93.809 to £118,825 Comprising an increase in the amount due from general debtors of £23,064. including dividend income due 3t the year end of £18,052, and prepoyments of £6,439. Thi5 was offset in part by a decrease in amounts due from the RSE of £4,487. Creditors decreased bv £22,977 to £99,67012024 £122,6471 prirnarily driven by a £IO,OOQ decrease in accruals and deferred income nd £18.889 (Jecrea5e in advance receipts for publications following the income being reiognised in the year, offsetting an increase in VAT due of £6,504. Net current assets increased to £708,799 at 31 March 2025 from £381,202 in 2024, driven by the increase and decrease in, respectively, debtors and creditors outlined above together with an increase in cash held at the bank at the year-end of £279,604. The unrestricted General Fund surplus for the year of £109,676 (2024 deficit £93,273) resulted in a final balance on the General Fund of £691,50612024 £58J,830J. The unrestricted designated CRF Fund balance has increased by £490 to £11,358,721 12024 £11,358.231), driven by the operating surplus for the CRF Fund of £92.095 offsetting the total loss on investments for the year of £91,605. Charity number SC024636 RSE Sloiland Fouttdatioft FiTiancial Sialem¢nts and Trustees. Ai)nual R¢pon Year ended 31 Mar¢li 2025 Financial review ond policies (continuedj Investment powers Under the Trust Deed. the Trustees have power to invest in investments of any description. The Trustees have delegated the detailed monitoring of performance to an Investment Committee, constituted jointly with the RSE, which includes at least one Trustee and two investment advisers with appropriate expertise. The investment management arrangements We￿ reviewed in April 2016 and, since l July 2016, the management of the investment funds of the RSE and the Foundation has been carried out by Rathbones and Brooks MacDonald. Each manages half of the portfolio on a discretionary basis. The objectlves set by the Trustees are to ensure a sufficient level of income to meet the target set annually and to invest for real capital rowth over the long term with a medium degree of risk. Investment income for the year of £324,656 was received against a target of £334,000. This result represented an income yield of around +3.18%12024.' +3.31%). Overall, the total return for the year was a positive 0.27% (2024.- positive +8.84%) reflecting the unrealised loss of £36,256 in market value of shares held being les5 than the reallsed investment105s made during the year of £261,313. The Investment Committee aims to meet twice eath year with the investment managers to discuss their compliarsce with the constraints let by the Committee and risk environment. In the year under review no compliance isssjes arose whith required to be reported to the Commlttee. Reserves policy and going concern The Trustees have considered the Foundation's reserves and cash position and the secured and expected incoming resource5 over the next 12 months. The Foundation has significont unrestricted reserves and relatively iquid investment portfoli05 which give flexibility to absorb the impact of possible reductions in income over the next 12 month5. The Trustees therefore consider that it is appropriate to prepare the financial statements on a going concern bas1S. The pollry of the Trustees is to maintain a level of free reserves over a period of time to provide financial security. The CRF Fund is derived from a donation in 2009 and is unrestricted but has been designated as a separate fund mainly to be used for support of research. The General Fund repre5entS the balance of unrestrirted funds. In the context of current economic circumstances and the risk profile of the Foundation, the Trustees believe that a reserve to cover six month'5 expenditure on expected support Costs of approximately £553,500 is appropriate. The General Fund balance of £691,506 remains in excess of the planned reserve range. The Trustees acknowledge that the General Fund balance includes Fixed Assets. However, they are aware that there are significant free reserves sitting within cash and investments within the designated CRF Fund which could be called upon if required. Strurture• governance, and manogement The Foundation was created in March 1996 under a Trust Deed with public benefit objectives. The Foundation has five ex-officio Trustees drawn from the Council and office bearers of the RSE and a minimum of four nominated Trustees appointed by the Council of the RSE. The Chair of the Foundation is an ex-officio observer on the Council of the RSE. Staff members are all joint employees of the RSE and the Foundation. Through this mechanism the RSE staff manage the activities of the Foundation in conjunction with those of the RSE, with the Trustees of the Foundation providing governance and oversight of the management. New Trustees are inducted by written briefing material and an introduction to the operations of the Foundation through discussions Wlth the RSE Chief Executive and senlor staff. Related parties The Foundation is closely connected to the RSE, its ultimate controlling party, throu£h its governance and through its management and shared occupation of the buildings at 22-26 George Streèt. and the publication of the RSE'S journal. All of the grant-making activities of the Foundation's CRF Fund are administered on behalf of the Charity number SC024636 RSI ScollaDd Foundation Financial Siat¢nien15 TtU51e¢.%' Annual Report Year ¥nded 31 Marcl) 2025 Structure+ governance, ond mano9ement (continued) Foundation by the RSE, except the postgraduate Scholarship scheme which is administered by The Carne8ie Trust for the Univer51tie5 of Scotland. Pay policy The Trustees and the senior management team are the key management personnel. No Trustees receive remuneration,. details of the reimbursement of Trustees expenses are in Note 9 to the financial statements. All staff are joint employees of the RSE and the Foundation. The pay of senior staff is reviewed 3nnually in line with inflation by the RSE Finance and Resources Committee and benchmarked on a regular basis against similar or8anisations. Risk management The remit of thÈ Audit & Risk Committee. reporting to the Trustees, includes keeping under review the effectiveness of internal control and risk management 5VStems in the Found3tion. The Trustees belleve that the existing Systems and the structure of the decision taking and reporting through the staff management group and Audit & Risk Committee continues to provide assurance that risks are properly assessed and carefully managed. The major risks to which the Foundation is exposed are: finantial rlsks from change5 in the sub-letting of surplus office space and these are mitigated by managing and monitoring relationships with tenants, investment risk arising from the management of the CRF Fund invèstments. which is managed through the oversight of the investment managers by the Investment Committee. the risk of cyber-attack or breach of IT security which is managed by an ongoing programme of IT risk mana8ement. Charity number SC024636 RSE Scoiland Foundalion ir&ancial Statements 2nd TNsiee5' Anrnual R¢port Y¥aT Lnded 31 Mai'ch 202% Stotement OA Trustee5' Responsibilities The Trustees are responsible for preparing the annual report and the financial statements in accordance with applicable Law and United Kingdom Generalty Accepted Accounting Practice (UK GAAPI. Under the Foundatlon's Trust Deed. the Trustee5 are required LO ensure that full and punctual accDunt5 3re prepared in accordance with the Charities and Trustee Investment Iscotlandl Act 2005 and the Charitie5 Accounts {Scotlandl Regulations 200S las amended). Under this leEi51otion, the Trustees are required to prepare financial statements for each financial year which give a true and fair view Df the st3te of affairs of the Foundation and of the incoming resources and appltcatior) of r2sources of the charity fDr that period. In preparlng these linzncial statements, the Trustees are required to: • select sultable accounting policies and then apply thern consistentlv." observe the methods and principles of the Charf(ie5 SORP {FRS 1021-, makejudgements and estimates that are reasonable and prudent,. state whether applicable accountin8 stardards and statements o* recommended practice have been followed, subject to any departures dis¢losed and explained in the finBncial statements: alid prepare the financial Statements on a goin8 concern basi5 unless it is inappropriate to assume the Foundation will corltinue in Iyeration. The Trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any tiTne the financial position of the Foundation and enable them to en5uie that the fsnancial sta:ements cornp.v with the Charities and Trustee Investment (Scotlandl Act 200S and thp Charities Accounts Iscotlandl Regulations 200G las Bmendedl and the Trust Deed. They are also rospon5ible foi safeguarding the assets ol the tharity and 4ence for taklnÉ reasonable steps for the preventioTr and detection of fraud and other irregularities. The Trustees are rÈspop.sible for the maintenance and inte8fFty of the general and financial information included on the Foundatiop's web51te. Legislation in the United Kingdom 8overnlng the preparaEion and dissemination of financial statements rnay differ from legislation in other jurisdirtion5. Approval of the report At the time ol approvin8 this report-. so fai as each Trustee is aware. there is no relevant audit information of which the auditor is unaware.. and each trustee has taken all the 5tep5 that they ought to h￿e taken as 3 Trustee to make themselve5 aware of any relevant audit inlormation and to establish that the auditors are aware ot that information. Approved on behalf of the Trustees. Chair 7 October 2025 22-26 George Street, Edinburgh EH2 2PQ Ch&rity Yhumber SLO24636 RSE S¢oiland foundation TrinancÉal Stateni¢nls and Trnstees, Annuol Report Year cnded 31 March 2025 Independent Auditorfs Report to the Trustees of RSE Scotland Foundation Oplnion We have audited the financial statements of RSE Scotland Foundation Ithe'charity'l for the year ended 31 March 2025 which comprise the Statement of Financial Activities, the Balance Sheet. the Cash Flow Statement and notes to the financial statements, including significant éccounting policies. The financial reportlAg framework that ha5 been applied in their preparation is applicable law and United Kingdom Accounting Standards, includin8 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland Iunited Kingdom Generally Accepted Accounting Practice}- In our opinion the flnancial ststements.. give a true and fair view of the state of the charity's affairs as èt 31 March 2025 and of it5 incomin8 resource5 and application of resources for the year then ended,. have been properly prepared in accordance with United Kingdom Generally Accepted Accountlng Practice- and have been prepared in accordance with the requirements of the Charities and Trustee Investment Iscotlandl Act 2005 and regulation 8 of the Charities Accounts Iscotlandl Regulations 21)06. Bosisfor opinion We conducted our audit in accordance with International Standards on Auditing IUK}11SAs IUKI) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements sertion of our report. We are independent of the charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRCS Ethical Standard, and we have fulfilled our other ethic21 responsibilities in 3ttordance with these requirements. We believe that the audit evidence we have obtained is suffitlent and appropriate to provlde a basis for our opinion. Concluslons relating to going concern In 3uditirLg the financial statements. we have concluded that the trustees. use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfoimed, we have not identified any Mater￿34 uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the chèrity'5 ability to continue as a going concern for a period of at least twelve months f rom when the financial statements are authorised for issue. Our responsibilitieg and the responsibilitie5 of the trustees with respect to going concern are described in the relevant section5 of this report. Other information The other information comprises the information included in the annual report, other than the financial 5tatement5 and our auditorfs report thereDn. The trustees are responsible for the Dther information contained within the annual report. Our opinion on the financial statements does not cover the other information and we do not express any lorm of assurance conclusion thereon. Our responsibility is to read the other information and, in doinE so, consider whether the other information is materially inconsistent with the financial statements or our knowled8e obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement In the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information. we are required to report that fact. We have nothing to report in this regard. Charity number SC.024636 RSE Scotland Foundation Financial Statunenis amd Trustees, Annual Report Year ended 31 March 2025 Independent Auditorfs Report to the Trustees of RSE Scotland Foundatlon (continued) Matter5 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 (Scotland) Regulations 2006 requires us to report to VOLt if, in OLtr opinion: the information gFven in the financial statements is inconsistent in any material respect with the trustees, report,. or proper 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 explanation5 we require for our audit. Responsibllltles of trustees As explained more fully in the statement of trustees, responsibilities set out on page 7, the trustees are responsible for the preparation of the financial statements which give a true and fair VIÈW, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free Irom material mi5Statement, whether due to fraud or error, In preparing the financial statement5, the trustees are responsible for assessing the charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustèes @ither intend to liquidate the charity orto cease operations, or have no realistic alternative but to do so. Audltorfs responsibilitiesfor the audit of thefinancial stotement5 We havè been appointed as atsditor under Section 44llllcl of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with re8ulations made under that Act. Our objective5 are to obtain reasonable 35surance about whether the financial statements as 3 whole are free from material misstatement, whether due to fraLJd or error. and to 1S5ue an auditor's feport that includes our opinion. Reasonable assurance is 8 high level of assurance but is not a guarantee that an audil conducted in accordance with ISAS (UKI will always detect a material misstatement when it exists. Misstatement5 can arise from f raud or error and are considered material if, individually or in the aggregate, they tould reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The extent to which the oudit was considered cupoble of detectlng irregularities, includingfroud 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; As part of our planning process.. We enquired of management the systems and controls the charity h2s in place, the areas of the financial statements that are most Susceptible to the risk of irregularitles and fraud, and whether there was any known, suspected or alleged f raud. Management informed us that there were no instances of known, suspected or alleged fraud,. We obtained an understanding of the legal and regulatory frameworks applicable to the charity. We determined that the following were most relevant.. FRS102, Charities SORP IFR51021, Charities and Trustee Investment (Scotlandl Act 2005, and regulation 8 Csf the Charities Accounts IScotl3ndl Regulotions 2006 las amendedl, as well as indirectly the Data Protection Act 2018; We considered the incer*tive5 and opportunities that exist in the charity. including the extent of mar>agement bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment occordingly. and Chariiy nuinber SC024636 RSI S¢o1I0nd Foundalion Finun¢i81 SI8ILTii¢nis a￿d Tni.%iees R¢port Year ended 31 March 2025 Independent Auditor's Report to the Trustees of RSE Scotland Foundation (continued) Using our knowledge of the charity, toBether with the discLl55ioll5 held with managemenl al. Ihe planning stage. we formed a conclusion on the risk of misstatement due to irregularities includin8 f raud and tailored our procedures according to ihis risk a55essment, The key procedures we undertook to detect irreeularitie5 including fraud during the CDurse of the audit included.. Inquiry of management about any known or suspecled inslances of noi)-ctsmpliance with laws and regulations and fraud,. Reviewing minutes ol board and sub.committee meetings; Challenging assLrmption5 and judgements made by management in their sienificant accountlnE estimates, in partitular valu4tlDn ol in¥es'tment5 and recognition o* income: and Auditing the risk of management ovorrlde of controls, including through testin8 Journ31 entrles and other adjustments for appropriateness. Owine to the inherent limitation5 of an audit. there is unavoidable risk that some material misstatements in thè fin3ncial statements may not be deterted, even though the audit is properly planned and performed in accordance with the ISA5 IUKI. Foi instance, the further removed non-compliance is from the events and transactions reflected in the financial statements. the less Ilkely the auditor is to become aware of it or to recognise the non"cornplianre. The risk 15 a150 greater regarding irregularities occurrlng due to fraud rather than error. as f raud involves intentional coTrcealment. forgery, collusion, omission or misrepresentation. The primary responsibility for the prevention and detection of irregularities and fraud rests with the trustees. A further de.scription of our re5ponsibilitie5 for the audit of the financial statements 15 located on the Financial Reporting Council's webslte at https'.l/www.frc.or8.uk/auditorsresponsibilities. This description forms part of our auditorfs report. Use of our ￿pOrt This report is made solely to the charitws trustees, as a body. in accordance with Regulation 10 ol the Ch3riries Accounts Iscotlandl Regulation5 2006. Our audit work ha5 been undertaken so that we might state to the charity's trustees those matters we are required tts stète to them in an auditor's report and for no other p¢Jrpose. To the fullest extent permitted by law. we do not accept or assume re5ponsibiltty to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinion5 we have forrned. Henderson Loggle LLP Statutory Auditor Chartered Accountants Level 5 The Stamp Orfice JO-14 Waterloo Place Edinburgh EHI 3EG Henderson Loggie LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. 7 October 2025 Chariiy number SC024636 10 RSE Scoiland Foundation Ftnancial Statcments and TTuslees' Annual Report Year ended 31 March 2025 Statement of Financial Activities Year ended31 A4orch 2025 Unrestrirted Generèl Designated 2025 2025 Total Total 2025 2024 Notes Income from: Charitsble activities Other trading attivities Investment Income 585,354 168,869 585,354 168.869 324,656 554,137 166.547 331,887 324ffi56 Total Income 754.223 324ffj56 1.078,879 1,052,571 Expenditure on Raising funds Charitable activities 1221,9491 {d22,5981 149.245) 1183.3161 1271.194) 1605,9141 1281,5971 1670,1081 Total expendlture 1644.5471 1232.5611 1877.108} 1951,7051 Operatin8 surplu51{lossl befo￿ 8aln$l {lossesl on Investments 109,676 92,095 201,771 100,866 Total net 8ains/llossesJ on investments li {91,6051 191,605) 561,724 Net Income/(expendlturel Ind movement o fund5 109,676 490 110.166 662,590 Funds brought forward $81,8ao 11.358.231 11.940.061 11,277,471 Funds carried forward 14 691,506 11,358.721 12,050.227 11.940.061 All octivities were continuing. The note5 on poges 14 to 24form PGYrt of thesefinanciol stotements. Comporotive informotion is disclosed in Note 20. Clsarity number SC024636 RSL Scuildnd l.uund31lOD Finan¢i81 St¥ienknis and TTusicLS' Aniiual RLp)n Ytar tndeé 31 Nlarch 2025 Balance Sheet At31 Mcrch 2025 Note 2025 2025 2024 2024 Fixed a55ets Tangible fiKed asset5 Investments io li 1,202,032 10,139,396 1.278,534 10,280,325 11.341.428 11.558,859 Cuirènt assets Debtors Cash èt bank and in hand 12 118.82S 689.644 410,040 808A69 503,849 Current 113bllltles Crethtors.. amounts fallin8 due within one year 13 199.6701 1122.6471 Net Current 0Ssets 708,799 381,202 Total a55ets le55 current liabllStles 12,050,227 11.940,061 Ilet assets 15 12.050,217 11.940,061 Funds Unrestykted Fund5 34 iU150,227 11.940,061 15 12.050.227 l L.9tl0,061 The financial staternent5 were approved and authorise(I for issue by the Trustees on 7 October 2025 and si8ned on their behalf by: Chair Charity number SC'(L?4636 12 RSE Scoiland Foundarion Financial St2twn¢nts and Truste¢s' Ani)ual Report Yeat ended 31 March 2025 Statement of Cash Flows At 31 Morch 2025 Nore 2025 2025 2024 2024 Cash Itows generatedl(usedl In operatlng attlvltles 16 71254 1298.5281 Cash Ilows from Investln8 J¢tlvltles Dividends and interest from invèstments Proceeds from sale of investments Fixed Assets movements Purchase of property. plant &equipment 324.656 188,9481 331,887 46,666 128,3581 158,6011 Net¢ash provided by investing activities 207.350 319,952 Net cash used In flnanclnE artivltles Change in cash In the year 279,604 21,424 Cash brought forward at l April 410.040 388,616 Cash at bank carrled forward at 31 March 689,644 410.040 Reconclllation ol net Iuvbds Cash at bank and in hand 689,644 410,040 Net Cash 689.644 410,040 Chariiy nuniber SC024636 13 RSE Scotland Foundation Finallcial Statements and Tru8t¢es' Annudl Report Year ended 31 March 2025 Note5 to the Financial Statements Ac¢ountlng basis a) Basls of preparation- The RSE scotland Foundation Ithe Foundation) is a public benefit entity and the financial Statements have been prepaFed accordance with Accounting and Reporting by Charities- Statement of Recommended Practice Icharities SORP {FRS10211 applicable to Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and the Republic of Ireland ISORPI, with FR5102, and with the Charities and Trustee Investment (Scotlandl Act 2005 and the Charities Account5 (Scotlandl Re8ulations 2006 (as amended). The financial statements comprise three primary financial statementS'. the statement of financial activities. which incorporates the income and expenditure account,. the balance sheet,. and the statement of cash flows. The financial statements have been prepared under the historical cost accounting rules as modified to include the revaluation of investments. The functional currency of the Foundation is pound5 Sterling. The registered address is given on page l. b) Critical accounting estimates and areas of Judgement Estimates, assumptions and judgement are necessarily part of the preparation of the financial statement5. There are no critical estimates or assumptions included in the financial statements of the Foundation. There are no critical judgement5 that have been made in applying the Foundation's accounting policies that would have a signif icant effect on the amounts re¢oEnised in the financial statements. c) Going concern The Trustees have considered the Foundation's reserves and cash position and the secured and expected incoming resources over the next 12 months. The Foundation ha5 significant unrestricted reserves and relatively liquid investment portfoli05 which 8ive flexibility to absorb the impact of possible reductions in income over the next 12 months. There 8ie no material uncertalnties with regards to the Foltndation's abilities to continue a5 a going concern. The Trustèes therefore consider that it 15 appropriate to prepare the financial Statements on a going concern basis. Funds The Foundation's funds are classified in accordance with the definitions in Charities SORP IFRS1021 into Restricted funds, where there are restriction5 placed by a donor as to the use of income or capital- Designated funds where the Foundation has set aside sums from its unrestricted funds for a particular purpose,- and the General (unrestrictedl Fund. The classlflcations made are as follows: GeneralAund A discretionary fund available to the Trustees to meet the ordinary activities of the Foundation. De5iqnatedfund Coledonion Reseorch Foundation Fund (CRF Fundj Funds received by transfer from the CRF. now an vnrestricted fund designated by the Trustees for support of appropriate activities includin& but not limited to, research activities. Actoyntlng policies Income Income is recognised in the period in which the Foundation is entitled to receipt, when receipt is probable, and when the amount can be measured ¥eliably. Revenue grants are credited to income in the period in which the Foundation becomes entitled to the resources. For performar)ce-related grants, where terms or cornditions have not been, or may not be, met, the income is deferred and included in the balance sheet as deferred income. Donations ond le9ucies included in other income are recognised when it is probable that they will be received. any ttsnditions associated with the donation or le8acy have been rnet. and the amount can be measured reliablv. Charity nuinb¢r SC024636 14 RSE Sc(TrilaTrd Foundalion inancial Siaiemei)ts and Trusiees, Annual R¢port Y￿ellded 31 March 2025 Notes to the Financial Statements (continued) Accounting poll¢le5 (continued) Interest and dividends are included when receivable and the amount can be measured reliably; this is normally upon nDtification by the bank, or from investment managers. Publicotion income received on an annual subscription bas15 15 recognised on publication of the relevant issues of the volume subscribed for. Income received in advance of publication is deferred. Income receivable in foreign curren¢ie5 15 converted into sterling at rates of exchange ruling at the date of receipt. Income received for specific projects and received in 3dvènce of the commencement of the project, is deferred. If the project were not to proceed as planned the charity would not be entitled to retain the funds. Expenditure All expenditure is included on an accruals basis exclusive of VAT except that, where it relates to non- trading activity expenditure, it is included on a VAT Inclusive bzsis. Support costs Where directly attributable. expenditure Is allocated to the relevant activity. Support costs, including governance costs. are allocated tr) activities in proportion to direct staff costs in each area of activity. Governance costs are those incurred in connection with the management of the Foundation assets, organisatlonal administfation and compliance with constitutional and statutory requirements. Cost of rui5ing funds The costs of generating funds relates to investment management fees ènd costs of building management in relation to leasing of surplus property. Choritoble activitftes Grants payable are recognised as a liability when the Foundation is under an actual or constructive obligation to make a transfer to a third party. Where grants are time-related to future periods and are to be financed by specific grants receivable in those future periods, they are treated as liabilities of those periods and not as liabilitie5 at balance sheet date. Such grants are di5¢105ed as future commitments. Grants comprise payments made to the RSE and The Carnegie Trust for the Universlties of Scotland in respect of the research award schemes administered by them. Tonglblelixed ossets Expenditure incurred in the improvements to the leasehold property of 26 George Street, octupancy of which is shared with RSE under a licence agreement, is held at cost and is being depreciated over the period of the lease from the date of completion of the refurbishment to 30 June 2047. It is the pollcy of the RSE to maintain the buildings to a high standard. Any permanent diminutlons in value are reflected in the statement of financial activities. Equipment is held at cost and is depreciated over 3-20 years on a straight-line basis. Investments Investments are stated at their market value at the balance Sheet date. Gains and losses on disposal and revaluation of investment5 ore charged or credited in the statement of financial activities. Flnonciol In5trumentS Financial assets and liabilities are retognised when a contractual right or obligation arises arsd are stated 8ross unless there is a legally enforceable right to set off the recognised amounts, which is intended to be exercised. Charity nuinber SC024636 15 RSE Scotland Foundation FTI)ancial Siaienients anil TEustees' Annual Report Year ended 31 March 2025 Notes to the Financftal Statements (continuedj Attounting policles Icontinuedj Debtors Trade and other debtor5 receivable within one ye3r are measured at the transaction price receivable, unless there is an impairment. Provision for impairment is made when there is evidence that the amounts due will not be collected in accordance with the related contract. Prepayments are valued at the amount prepaid. Accrued income is measured èt the amount recoverable. Cush ut Bunk Cash at bank and in hand comprise basic financial assets and include cash in hand. deposlts held at call with banks, and other short term liquid investments with original maturities of three months or less. Creditors Trade and other creditors are mèasured at the transaction price payable. Loans payable due over one year are stated at amortised c05t. Income Current year to 31 Morch 2025 other Iradlng adEv5tl•s Charitable Attivities 2015 Total 2024 Total Investment Investment income Rental incon)e P￿blicationS Licence fees Conference facilities lettinE (Note 5} 324.656 324.656 168,869 112,142 319.604 153,608 331,887 166.547 98.274 349,694 106,169 I68￿69 111.142 319,604 153,608 585.354 168.869 324,656 1,078,879 1,052,571 Conference tacilities letting 2025 2024 Roorn hire income from rerstal and servi£es (Note 41 Service costs and Marketing Idirecr c05tsl INote 61 153,608 {11,336) 106,169 123.0481 142.Z72 83,121 Charity number SC024636 RSE Scotland Foundation Financial Siatei))enls and Trustees, Annual Report Year ended 31 Maich 2025 Notes to the Financial Statements (continued) Total resources expended. 2025 Total 2024 Total Totol resOU￿e$ Dlrect Support (Note 71 Direct Support (Note 71 Roisingfunds Building management Investment mana8ement 221,949 221.Y19 49245 234,242 234,242 47.355 49.245 47.355 49,245 221,949 271,194 47.355 234.242 281,597 Choritoble activities Grant to RSE rn support ol PLtblicatTrons Expenditure recovered through licence fee to RSE Conference facilities hire Research Fellowship Grants (Note 81 112.142 111142 319,604 319,604 98,275 98,275 349,694 349,694 11.336 59,838 102,994 114,330 59,838 23,048 87,826 108,698 131,746 2.567 90,393 183.316 422.598 6DS,914 209,149 460.959 670.108 Total Expenditure 232.561 644.547 877,108 256,504 695,201 951,705 Investment management fees1£49,2451, Research Fellowship grants1£59,8381. charitable 8rant to RSE 1£112,1421 and conference facilities hire l£11,3361 are charEed out of designated fund5 and all other expenditure is treated as unrestrittèd. Support tosts 2025 2024 Salaries (Note 91 E5toblishment expenses Computer and equipment costs Communit3tion, stationery and printing costs sank charges Legal & professional fees Audit fee Depfeciat40n- Equipment Depreciation- Bulldings 223,956 209,421 90,795 6,714 165 222.582 258,734 78,748 22,836 66 8,205 6,825 52.732 44.473 8,637 59,50B 45,351 644.547 695,201 Support costs have been allocated to activities in proportion to the employment cost in each area of activity as set out in Note 6. Cl)aiiÉy number SC024636 RSE Scoiland Foundation Financial Staiem¢nls #nd Tntst¢¢$' Annual Reporl Year ended 31 March 2025 Notes to the Flnanclal Statements (continued) Grants payable 2024 Promotlon olreseorch Postgraduate scholarships 59,838 87.826 59,838 87,826 Grants were pald to 4 individuals {3 FtEI12024: 4, 4 FTE). In 2025 there are 3 indivlduals receivlng fundin& however one invoice from a prior awardee is included in the year for £392 and this is Included in the total shown above. Employees The average number of employees of the Foundatlon during the period, employed under joint contracts with the RSE was 4412024.. 421. The c05ts as disclosed below represent the amounts rech3rged from RSE to the Foundation. 2025 2024 Wages and salaries Social Secuiity costs Other pensions costs 165,941 16,886 41,129 172,221 17.576 32,785 223,956 222.582 No employee earned more than £60,000 in the year in thelr role for the Foundation. The number of employees, including the Chief Executive, who received remuneration during the year (excluding penslon contributions) 8reater than £60,000 in their joint role with the RSE. In the following ranges was.. 2025 Number 2024 Number £60,000- £69,999 £70,000- £79.999 £80,000- £89,999 £90,000- £99.999 £100.000- £110,999 Total pension contributions were £41,69012024., £45,633). Pension costs are more fully descrlbed In the financial statements of the R5E which during previous year5 was an admitted l>ody member of the Lothian Pension Fund. The Foundation is not a member but is responslblè for paying the relevant proportion of these costs. throu8h the RSE. The R5E exited the Lothian Pension Fund during the year ended 31 March 2025. The Trustees of the Foundation received no payments for reimbursement of expenditure on travel and subsistence durin8 the year. Charity numbeT SC024636 18 RSI Scotland Foundalio Trinanei#l Statement5 and Tnjstees. Annual Report Y¢ar cnded 31 March 2025 Notes to the Financial Statement5 (continued) io Tangible T￿ed assets Leasehold Improvement Equipment Computers Total Cost At l April 2024 Additions 2.136,070 430,372 860 166,458 27,498 2,732,900 28,358 At 31 Marth 2025 2,136,070 431,232 193,956 2,761.258 Deprecffation At I Apfil 2024 Charge for the year 1,105,262 45,351 212,238 44,650 136,866 14.859 1.454,366 104,860 At 31 March 2025 1,150,613 256.888 151,725 1,559.226 Net book volue At 31 March 2025 985A57 174,344 42.231 1.202.03Z At 31 March 2024 1,030,808 218,134 29.592 1,278,534 li Investmènts Market value l April 2024 Investrrtents mode at cost PrO￿ed$ on sale of InvèsimÈnts Galnlllos$l Market valtse 31 Marth 2025 Managed Funds Fixed Interest Equities Czsh deposits 4.255,808 2267,342 3.658,913 98.262 1.461,202 866,256 469,910 12.797.3681 11,464,180) 517,8981 1736,3421 2,708.420 133,1521 15,617 1280,0331 156,639 4,219.678 2,631,317 3,122,448 165.953 10,280,325 1140,9291 10,139,396 The net loss in the year was £140,92912024 Gain £561,7241. The net loss is the net of realised losses of £261,313. unrealised losses £36,255 and other cash movements of £156,639. The net loss on investments the year is represented by net loss on investments of £91,605 and investment management charges of £49,245 {note 61, The historical cost of investments was £9,276,55112024.. £9,288.6711. There were no investments comprising more than 5% of the market value of the portfolio. 12 Debtors 2025 2024 GeneT31 Debtors Prepayments Amount due from group undertaking 56.755 38.804 23,266 33,691 32,365 27.753 118.825 93.809 Charily number SC024636 19 RSE Scoiland Foundaiion In￿tial Stateikncnts and Trusiees, Ani)ual Report Y¢aT ¢nd¢d 31 March 2025 Notes to the Financial Statements (Continued) 13 Creditors: Amounts falling due within one year 2025 2024 Accruals and deferred income VAT payable General creditors Advance receipts- Publicattons lsee below) 56,468 35,S79 7,623 66,468 29,075 8,215 18,889 99,670 122,647 Analysls of advance re¢eipts 2025 2024 At beginnlng ol year Received in year Reco8nised in year 18M9 71,442 45,722 198,2751 118,8891 At end of year 18,889 14 Funds The movements on fund5 during the year ended 31 Marth 2025 las defined in Note 21 were.. Galn I Other (Lossl on Income Expenditure Investments Balance at Invertment l Aprll intome 2024 Balance at 31 March 2025 Unrestrlttèd DeSff9llOted Caledonian Research Foundation Fund {CRF Fund) 11,358,231 324.656 1232.5611 (91,6051 11,358.721 General Fund S81￿30 754.2Z3 1644.5471 691,506 11.940.061 324.656 754,223 1877,1081 191,6051 12.050.227 Chariiy rjumber SC024636 20 RSI Scotland Foundation F311ancial Statemen1% and TrusEee.8' Annudl Report Year ¢niE¢d 31 March 2025 Notes to the Flnanclal Statements {continued) The movements on funds during the year ended 31 March 2024 las defined ir> Note 21 were.. Galn I Other ILossl o Income Expendlturè Investments Balance at Investment l April In¢ome 2023 Balance at 31 MaTih 2024 Unrestricted Desi9r)ated Caledonian Research 10,602,368 Foundation Fund ICRF Fundl 331.887 1137.748) 561,724 11,358231 GenerolFund 675.103 720,684 (819,957 S81￿30 11.277,471 331.887 720.684 1951,705) 561.724 11,940,061 15 Analysis of net assets between funds Analysis of net assets for the year ended 31 March 2025 Noto General Fund Desi8n*ted CRF Fund Total Tangiblè fixed assets Investments Cash Other net current assets / Iliabilitiesl io li 1,202,032 1.202.032 10,139.396 689,644 19,155 10.139.396 619.108 600.217 70.536 1581.0621 691.506 11,358.721 12,050,227 Investmènts at 31 March 2025 includes £165,953 of Cash Deposits held by Investment Managers. Analysis of net assets fot the year ended 31 Mar¢h 2024 Note General Designated Fund CRF Tpt41 Tangible fixed assets Investments Cèsh Othei net current assets I Iliabilitie51 io li 1,278,534 1,278,534 10.280.325 410,040 128,8381 10,280.325 368,130 709,776 41,910 1738,6141 581,830 11.358.231 11,940,061 Chariiy number SC.024636 21 RSI Scotland Foundatio Financial Statem¢nt5 and Trustee.%' Annual Reporl Year ¢nded 31 Marth 2025 Notes to the Financial Statements fcontinued) 16 Reconciliation of net incomellexpenditure) to net cashflow from operating activltles 2025 2024 Net iftcome I Ideficitl for the yeai las per the statement of financial activttiesl Adjustments for.. Depreci8tion thar8e5 (Gains) / losses on investments Divtdends, interest and rents from investments Decrease / IIF¥cre3sel in debtors Increase / Idecreasel in creditors 110,166 662.590 104 229,877 1324,6561 125,016) 122,977J 97,205 1561,7241 1331.8871 16,4371 1158,2751 Net Cash generated I lusedl in operating activitles 72.2S4 1298,5281 17 Flnanclal ¢ommitments The Foundation is committed to rental payments In respect of its lease of 26 George Street which expires on 30June 2047 and had an initial rent of £1 per annum and carried an obligation to refurbish the premises within three years from date of entry. The rent31 remains £1 per annum as long as the licence to share occupancy of offit@ fatilltie5 Wlth RSE is in for¢e. The financial commitment at 31 March 2025 in respect of operating leases expiring within five years for printing and copying equipment, was £5,560 (2024.. £9,885). Operating Le05e5 2025 2024 Less than I year 8etween 1-5 years 2.471 3.089 2,471 7,414 5,560 9,885 Charity number SC024636 22 RSE Scutland Found8tion Financial Staren)enis and TnJste¢s' Annual Report Year ended 31 Mar¢h 2025 Notes to the Financial Statements (continued) Related parties The Royal Society of Edinburgh IRSEI 15 an educational charity (registered number SC000470) and is a related party by virtue of being RSE Scotland Foundation's parent entity. RSE Scotland Foundation received licence fees of £319,604 12024.. £349,694J from the RSE. The RSE received total income of £112.142 {2024.' £98,275) from RSE Scotland Found3tion. Staff Costs for the group are borne by the RSE and a total of £223,95612024.' £222,582) was recharged as disclosed in Note 9 of the accounts. The amount outstanding at year end from the RSE was £23,266 (2024.. £27,753). The amount outStandin8 at yeaf end due to the RSE was £nil (2024.. £nilJ. No Trustee was paid expenses for Foundatlon artivitie5 durin8 the year,12024.' £nilJ. 19 Ultimate controlling party The ultimate controlling party is the R5E, which is a charity registered in Scotland ISC0004701 with broad edLtcational objettives. The Foundation had five ex-off icio Trustees during the year ended 31 March 2024 and during the year ended 31 March 2025. The Trustees are drawn from the Council and office bearers of RSE and a minimum of four nominated Trustee5 appointed by the Council of the RSE. Copies of the RSE'S financial statements are available from 22-26 George Street, Edinburgh. EH2 2PQ. Charity number SC.024636 23 RSE Scoiland Foundation Financial Statements and T￿St