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D The Royal Institution

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Science Lives Here

Trustees Report and Financial Statements for the year ended 30 September 2015

Trustees’ Report

and Financial Statements

For the year ended 30 September 2015

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Science Lives Here

Trustees’ Report and Financiai Statements for the year ended 30 September 2015

Contents

CHARITY INFORMATION 2

TRUSTEES’ REPORT FOR THE YEAR ENDED 30 SEPTEMBER 2015 3

INTRODUCTION 3

PURPOSE 4

OBJECTIVES 4

CHARITABLE ACTIVITIES AND ACHIEVEMENTS 5

DIGITAL 5

EDUCATION 6

COLLECTIONS 9

DAVY FARADAY RESEARCH LABORATORY 10

MEMBERSHIP 10

COMMERCIAL OPERATIONS 11

RIGB LTD — VENUE HIRE AND CATERING 11

VOLUNTEERS AND DONATED SERVICES 11

FINANCIAL REVIEW 11

PRICING POLICY 12

INVESTMENT POWERS AND POLICY 12

RESERVES POLICY 12

PLANS FOR FUTURE PERIODS 12

STRUCTURE, GOVERNANCE AND MANAGEMENT 12

GOVERNING DOCUMENT 12

APPOINTMENT OF TRUSTEES 13

TRUSTEE INDUCTION AND TRAINING 13

ORGANISATION 13

RELATED PARTIES 13

RISK MANAGEMENT 13

MAJOR RISKS 14

TRUSTEES’ RESPONSIBILITIES IN RELATION TO THE FINANCIAL STATEMENTS 14

INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE ROYAL INSTITUTION OF GREAT

BRITAIN 15

RESPECTIVE RESPONSIBILITIES OF TRUSTEES AND AUDITOR 15

SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS 15

OPINION ON FINANCIAL STATEMENTS 15

EMPHASIS OF MAYrER — USE OF FUNDS 15

MATrERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION 15

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 30 SEPTEMBER

2015 16

BALANCE SHEETS AS AT 30 SEPTEMBER 2015 17

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 SEPTEMBER 2015 18

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 SEPTEMBER 2015 19 Page 1


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Science Lives Here


Charity registration number: Nominations Committee:

227938 Sir Richard Sykes — ChairmanProf Alan Davies — Trustee — resigned May 2015

Principal office: Lord Julian Hunt — Trustee — appointed June 2015

21 Albemarle Street, London, W1S 4BS Ms Lis LongMr Christopher Adam

Websites: Prof David Phillips

jitp://www. rig b.org/http://richannel.org/ Chief Executive Officer:

Mr Chris Rofe

President:HRH The Duke of Kent Auditor:

RSM UK Audit LLP (formerly Baker Tilly UK Audit

Honorary Vice President: LLP)

Sir John Ritblat 25 Farringdon Street, London, EC4A 4AB

Current Trustees who served during the entire Bankers:

financial year: HSBC Bank plc

Sir Richard Sykes - Chairman 79 Piccadilly, London Wi] 8EU

Prof Christopher BishopProf Julia Buckingham Investment advisors:

Mr Hugh Harper HSBC Global Asset Management (UK) Limited

Lord Julian Hunt 78 St James’s Street, London SW1A 1E]

Dr Martin KnightProf Sir Peter Knight Solicitors:

Mrs Sarika Patel Farrer & Co

Prof Chris Toumazou — appointed Sept 2015 66 Lincolns Inn Fields, London WC2A 3LH

Lord Robert WinstonField Fisher Waterhouse LLP

Trustees who served during part of the financial 5 Vine Street, London EC3N 2PX

year 2014/15 were:Prof Alan Davies — retired May 2015 Olswang Solicitors

Prof Chris Toumazou — appointed Sept 2015 90 High Holborn, London WC1V 6XX

Finance Committee: Travers Smith LLP

Dr Martin Knight - Chair and Trustee 10 Snow Hill, London, EC1A 2AL

Prof Julia Buckingham — TrusteeMr Chris Lowe Wilsons Solicitors LLP

Mr Hameed Khan — retired November 2015 4 Lincoln’s Inn Fields, London WC2A 3AA

Dr Chris Potts — resigned November 2015

Audit Committee:Mrs Sarika Patel — Chair and TrusteeProf Sir Peter Knight - TrusteeMr Nick Hills — appointed November 2015Mr Simon RobinsonMr David PhilipMrs Zoe Wyatt — resigned Sept 2015


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Science Lives Here

Trustees’ Report and Financial Statements for the year ended 30 September 2015

The RI is now debt freeSubsequent to the financial year addressed in thisreport, the Ri has fully repaid its debt. The transactionsby which this was achieved are described in Note 30 on2 of the Financial Statements. This constitutes asignificant achievement and leaves the Ri well placed todeliver excellent programmes in the future. Theexecutive and the Trustees are delighted and proud tobe able to report this to members at this time.

I IntroductionThe Trustees are pleased to present their report and theconsolidated financial statements of the RoyalInstitution of Great Britain (also referred to as the “Ri”or the “Institution”) and its subsidiary RiGB Limited forthe year ended 30 September 2015.

The financial statements comply with the Charities Act2011 and the Statement of Recommended Practice —

Accounting and Reporting by Charities — (SORP 2005).

The Royal Institution’s mission, which underpinseverything we do, is to encourage people to think moredeeply about the wonders and applications of science.In order to meet our mission more effectively, the Rihas expanded and developed all aspects of the Ri’sprogramme of science communication, education andheritage activities. The achievements outlined in thisreview demonstrate that the Ri has the diversity ofexpertise, creativity and digital capacity needed toengage a national and international audience withcutting edge science, technology, engineering andmathematics in a more meaningful way. The Ri hasbuilt on its existing reputation as a provider of worldclass public and educational activities and curator ofscience history to also become a celebrated trailblazerin the development and distribution of thought-provoking and inspiring digital content across all fieldsof science.

Central to our success has been our continuedcommitment to collaborative working between Ri teamsand a diverse range of respected partners, supporters,scientists and educators; our investment in digitaltechnology and expertise; the integration of free highquality digital content across a broad range of the Ri’sprogrammes; and an increased regional presence

The critically acclaimed Ri Channel has continued toexperience impressive growth and original Riproductions on the Channel have gained over 14 millionviews representing over 104 million minutes of sciencewatched. Our YouTube channel reaches an audience ofover 170k subscribers, which includes viewers in almostevery country in the world. Winning the EuropeanScience TV and New Media Award for our STFC-fundedCelebrating Crystallography animation illustrates howthe quality of our content and the strength of ourpartnerships are being recognised and celebrated byboth the public and the scientific community.ExpeRimental, project between the Ri’s Education andRi Channel team to encourage parents to do science athome with their young children was launched in thesummer to much positive media attention, and effortsto increase the accessibility of the Ri’s archives throughnew digital platforms such as the RI Channel, Ri blogand Tumblr have been rewarded with an enthusiasticand loyal online following.

The CHRISTMAS LECTURES continue to be a hugesuccess with tremendous viewing figures, over twomillion on BBC4 and iPlayer. The tradition of extendingthe benefit of the Lectures internationally continuedwith attendees at the filming from Australia, and theLectures being delivered and broadcast in Singaporeand Japan over the summer. Increased diversification ofCHRISTMAS LECTURES inspired content and the freelyavailable and expanding film archive of Lectures on theRi Channel includes production of a video adventcalendar, the creation of online teaching resources anda Family Fun Day at the RI means the iconicprogramme’s impact is sustained throughout the year.

In the year ended 30 September 2015, the Ri had atotal income of £3,514k (2014: £4,158k) and a netdeficit before gains and losses of £346k (2014: £265kdeficit before taking into account £500k endowmentincome resulting in a surplus of L265k). The net debtwas £698k (2014: £158k) at year end but has beenrepaid subsequent to year end, and the general funddeficit stood at £2,560k.

These operating results, taken together with the verypositive post balance date events described in Note 30to the Financial Statements reinforced the Trustees’

Trustees’ Report for the yended 30 September 2O1

through outreach activities such as the RI MasterclassProgramme and the L’Oreal Young Scientist Centre. Asa result, we now engage with the many hundreds ofthousands of people across the UK and beyond and soour mission is a truly global one.

D The Royal InstitutionId Science Lives Here


confidence in delivering a sustainable future. Inparticular the receipt on 13 November 2015 of a £1.5m

lease premium and the £927k proceeds in January 2016

from the 1 December 2015 book auction have enabled

the repayment of the £2.Om loan, clearing the lastpiece of debt from the balance sheet, which represents

a significant milestone in the Ri’s recent history has. Anew Membership scheme, launched in November 2015,

is designed to accelerate membership growth, through

a simplified structure to attract more like-minded

individuals. The new Patron scheme, also launched in

November 2015, has been developed to create closer

interactions with those members who seek a deeper

engagement with the Ri, and to create a clear route for

philanthropic giving. With the repayment of alloutstanding debt subsequent to year end, Management

and the Trustees have also initiated development of a

forward looking growth oriented strategy to raise the RE

visibility and impact necessary to deliver our mission.

Purpose

The Ri is at the forefront of public engagement with

science. Our charitable purpose has always been to

encourage people to think more deeply about the

wonders and applications of science, and we continue to

be guided by our founding ‘prospectus’ over 200 years

ago:

“The speedy and general diffusion of the knowledge of

all new and useful improvements in whatever quarter of

the world they may originate; and teaching the

application of scientific discoveries to the improvement

of arts and manufactures in this country, and to the

increase of domestic comfort and convenience.”

Over the last two centuries the Ri has been home to

eminent scientists whose discoveries have helped to

shape the modern world. The likes of Faraday, Davy,

Tyndall, Lonsdale and Hodgkin not only conducted their

research at the Ri, but just as importantly shared this

work with a wide public audience.

Today, scientists and engineers around the world are

making equally ground-breaking discoveries that enrich

our culture and have countless positive effects, but also

possible consequences that need to be discussed by

wider society. This means that our relevance is greater

than ever before — we must continue to open up the

world of science and technology, not just by providing a

platform for the public to gain access to credible

information, but also by genuinely involving them in

discovery, innovation and discussions about the

future.

This commitment drives everything we do — from theintellectually stimulating public events and the world

famous CHRISTMAS LECTURES to activities specifically

tailored to capture the imagination and curiosity ofyoung people. For example, our nationwide programmeof problem-solving Masterclasses in mathematics,

engineering and computer science, our enquiry-led

educational activities at the L’Oreal Young Scientist

Centre and our policy discussions with science students.

Our critically acclaimed video platform, the RI Channel,

enables us to engage with people around the world andwe make award-wining short films and animations totell the stories at the heart of cutting-edge science.

The RI museum displays and interprets original scientific

apparatus used by those who have researched, lectured

and lived at the RI over the past two centuries. The Ri

also possesses and makes accessible a significant

archive of administrative and personal papers relating

to all aspects of its heritage, as well as a library andimage collection.

Objectives

In shaping the objectives for the year and planning the

activities the Trustees have had regard to the Charity

Commission’s guidance on public benefit. Further, the

Trustees are mindful of the internal focus of recent

years necessary to effect a successful turnaround andimprove financial stability, the focus on the long-term

science, education and digital strategy is increasingly tothe fore.

The objectives set out in the Ri’s strategy are:

• The diffusion of knowledge through the delivery of

education and communication programmes to

existing and new audiences;• Development of fundraising capabilities and an

increase in core earnings to support the full scope

of activities;• Development of the digital strategy to grow national

and global reach;• Review and development of long term strategic

options to finance a sustainable future for the RI.

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Charitable activities and achievements

The Ri carries out its charitable objectives through itspublic engagement, education and digital programmesfor people of all ages, and through its appreciation ofthe history of science by conserving, researching andexhibiting the unique Ri collection and archive. This

year the Trustees awarded a personal chair in Science,Culture and Society to Dr Gail Cardew, Director ofScience and Education. This award was in recognition ofher valuable work in placing the RI at the forefront ofpublic science engagement on a national andinternational stage.

Digital

Ri Channel

The digital RI Channel enables audiences from aroundthe UK and worldwide to engage with the RI and beencouraged to think more deeply about the wondersand applications of science. The Ri partnered with theBBC’s BritLab YouTube science channel for a sciencedemo video collaboration, and during the summer alsoworked with the Science Museum on a videocollaboration featuring Helen Sharman and her SOKOLspace suit. By partnering with other organisations tomaximise the dissemination of the best science contentavailable the Ri further extends its public benefit andacts as a catalyst for the science communicationcommunity, a role it is well placed to fulfil. The qualityof the content and the increasing size of audiencesconsuming it is being affirmed by large volumes ofpositive feedback. We also worked with psychologistNicholas Humphrey to produce a follow up video fromlast year’s ‘The Magic of Consciousness’ video,addressing questions from viewers of the original video.

YouTube subscribers during 2014/15 grew at a rate of6k per month, up from 4k per month during the sameperiod last year.

The RI currently has 174k YouTube subscribers in total,and its videos have been watched over 14 million times(twice the viewing figures for 2013-14 of 7,088,500),which amounts to about 104 million minutes watched,equivalent to almost 200 years. The audience is trulyglobal with about 14% from the UK, 36% from theUnited States and viewers from 236 countries andterritories.

To build our audience the RI Channel team have focusedon regular content releases and are now committed toreleasing a full-length RI Talk video every fortnight.During 2014/15 the Channel also released a further 37

original RI productions. This included five Tales from the

Prep Room demo-based films, two animations, five

related to the 2014 CHRISTMAS LECTURES and 11

ExpeRimental videos.

Content highlights produced in 2014/15 include ‘Slow

motion contact explosive — nitrogen triiodide’, a Tales

from the Prep Room demo film which gained 650,000

views within the first month of release; ‘How to stop

yourself being ticklish — with Dr Emily Grossman’ which

has been viewed over 195,000 times; and ‘Four

dimensional maths: things to see and hear in the fourth

dimension’ with Matt Parker, an hour-long RI Talk filmed

in the Lecture Theatre, which has also been viewed over

195,000 times.

The RI has also created two animations during 2014/15,the most recent being ‘The risks of the everyday’, based

on an audio clip from a 2013 interview with JaredDiamond at the Ri. This video has been particularly

popular on Vimeo, a video sharing platform popularwith the creative community, where it was awarded a‘Staff Pick’ and has been viewed 60,000 times.

During 2014/15 Ri videos have featured on manyprominent websites including the Guardian, New YorkTimes, Reddit, Huffington Post, BuzzFeed, Metro and1100 (the Independent), and our animations haveenabled us to reach new audiences on platforms suchas BrainPickings.org, Aeon.co and OpenCulture.com.

Social Media

This has been another year of growth for the Ri’s socialmedia channels. Followers on Twitter and Facebookhave increased by 20% each to 38,400 and 37,000respectively, and the Ri now has 42,700 followers onGoogle+, an increase of 200% from this time last year.The RI Friday Twitter quiz has been particularly popularresulting in an increase in audience interaction andonline discussions.

The RI Tumblr site is going from strength to strength. Itwas featured on Tumblr’s year in review, under the‘New and Notable’ category, and it now has over 32,400followers, up from 23,626 last October. The content mixof heritage and RI Channel science videos has resulted

in a substantial increase in engagement, with our mostpopular post being ‘reposted’ and ‘liked’ over 250,000times.

The RI has also been exploring new social mediachannels, including the long-form blogging platformMedium.com where it now has 2,500 followers, andexperimenting with the video streaming platformPeriscope with a view to exploring its potential as anonline science engagement tool over the coming year.

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The RoyaL InstitutionILl I Science Lives Here

Trustees Report and Hnancial Statements for the year ended 30 September 2015

Education

CHRISTMAS LECTURES

The 2014 CHRISTMAS LECTURES ‘Sparks will fly: How

to hack your home’, presented by Prof Danielle George,

attracted 2 million viewers on BBC Four and iPlayer.

The Lectures and associated live events were attended

by just under 2,500 people and the digital content

released in the build up to the Lectures have been liked

and shared 7,500 times. This year, the scale and

ambition of the demonstrations and content were more

spectacular than ever before. Each Lecture culminated

in a spectacular finale (playing Tetris on the London

Shell headquarters, beaming a ‘hologram’ into the

theatre and conducting a robot orchestra). Through the

rest of the show we explored topics that helped us to

fulfil that challenge, a format that allowed us to unpick

the process of engineering.

The ballot for tickets to attend the filming sessions

attracted 13 applications for every seat available in the

Theatre. In addition to tickets allocated through the

ballot, every year we set aside a number of tickets to

prioritise disadvantaged groups attending the lectures.

This year, in partnership with Barts Health NHS Trust

we brought three groups of their patients and carers

from the Royal London Hospital in Whitechapel to watch

the lectures. Thanks also to a generous donation we are

able to provide tickets and cover travel and

accommodation costs for students from a

disadvantaged background who live in the North West

of England to attend the lectures each year.

We secured generous support for the Lectures from a

consortium of partners, comprising Schlumberger

Cambridge Research, Raspberry Pi, EPSRC, The lET,

RAEng, The Royal Commission for the Exhibition of

1851, IMechE and CIBSE.

For our audiences on social media, including YouTube,

Twitter, Google+, Instagram and Facebook, we

produced a collection of CHRISTMAS LECTURES-inspired

digital content, whimsically titled ‘Things to do with

stuff’, which expanded and developed the content of the

broadcast lectures. The focus was placed on fun, simple

and cheap ways to get involved with inventing and

tinkering at home, showing people simple tips and

tricks to ‘engineer’ the technology around them.

We developed a range of lesson plans and lesson

sections, which use clips from the CHRISTMAS

LECTURES, resources aimed at secondary school-age

students, and also worked with the University of

Manchester’s Science Education Research and

Innovation Hub to prepare resources for use in primary

‘I’m an engineer, get me out of here’, allowing schoolgroups and members of the public the chance to ask

questions about the science from the lectures and have

them answered by scientists working in the field.

In terms of international reach, as well as welcoming a

group of underprivileged Australian children to the

filming (in collaboration with RiAus), the 2014

CHRISTMAS LECTURES travelled to Singapore in

partnership with the Singapore Science Centre to

participate in the Singapore Science festival in July2015, and we reinstated our visits to Japan, travelling

to Tokyo in September 2015, in partnership with the

Yomiuri Shimbun, the world’s highest circulation

newspaper.

Public Programme

Our celebrated public lecture programme continues to

inspire, educate and delight audiences throughout the

year. In keeping with the rich heritage of the Ri many

of the greatest scientists from around the globe

welcomed the opportunity to discuss their science

research and thoughts with a knowledgeable public

audience in the conic environment of the Ri’s famous

theatre.

This year we welcomed three Nobel Prize winners, Prof

Adam Riess, Prof Serge Haroche and Prof Frank

Wilczek, as well as Fields Medal winner Prof Cedric

Villani, to speak in the Theatre. The Turner Prize

winning artist Grayson Perry also delivered a Discourse

on the subject “What does art do best?” 69 events were

organised in total in 2014-15, nine more than in 2013-

14. The total attendance was 20,163 people, 15% more

than the 17,601 attendees last year. To appeal to a

younger adult age group we introduced a new event

format in 2014, ‘Ri Lates’. These building-wide adult-

only events give audiences the chance to get up close

and personal with science. Three Lates were organised

in 2014-15 on themes such as the rules of attraction

and life and death, attracting over 1600 people. The

Lates also enabled us to work in partnership with a

number of organisations, such as the British

Psychological Society, Royal Veterinary College, Royal

Society of Biology, Science London and the Society for

Endocrinology, as well as staff from a wide range of

universities including UCL, Imperial College, Kings

College London, Queen Mary, Bristol, Huddersfield,

Leicester, Nottingham and Cambridge.

We were delighted to welcome back the Chief Scientist

of NASA Dr Ellen Stofan for an event in November

thanks to our ongoing relationship with the US

Embassy. We are also pleased to be continuing our

I schools. We partnered with online engagement project

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The Royat InstitutionI iiI Science Lives Here

Trustees Report and Fnancal Statements for the year ended 30 September 2015

collaboration with the French Embassy and are forging

links with other embassies in London. We hope to host

events featuring scientists from Canada, Sweden, India

and Germany in the future.

We once again partnered with Hiscox Insurance, a

major supporter of the Royal Institution, for a debate

about conservation in art. Given their continued

popularity, we now run two joint events per year with

the U3A. We further partnered with the Royal Society of

Biology on a public event debating malaria eradication

and a photography exhibition.

Members of the 14-10 club enjoyed 10 events

throughout the year, with two speakers per event on

topics such as economics, astrobiology and statistical

analysis of astrophysical and cosmological data.

The background of the Ri audience is monitored via

questions in the post-event evaluation form, giving

more of an indication of the level of scientific

experience of the audience. The split between those

with a general interest, scientists in other disciplines

and scientists in the field is similar to previous years. It

is pleasing that a large majority (7Q%, similar to lastyear’s 72%) have a general interest but are not

professionals.

Further audience feedback indicates that 93°h of

attendees either agreed, or strongly agreed that they

enjoyed the event they attended, and 92% of attendees

say they learnt something new, with 81% wanting to

find out more about the subject after an Ri event.

The L’Oreal Young Scientist Centre

The L’Oreal Young Scientist Centre’s (LYSC) core aim is

to provide enquiry-led laboratory-based scienceexperiences to young people between the ages of 7 and

18.

Over the 2014-15 period 3,125 students attended

workshops from the core LYSC programme (up from

3,068 last year). In the first quarter of the year a large

percentage of bookings were from schools participating

in workshops funded by the Equitable Trust. These

workshops were for disadvantaged schools in the

London boroughs of Tower Hamlets and Hackney. We

also continued to work with the schools team to provide

free workshops for students in the London Borough ofRichmond funded by the Richmond Parish Lands

Charity.

The majority of LYSC workshop participants are from

the state sector (70Db). The percentage of home

educated participants has dropped to 2°h (from 9% last

year). This is believed partly to be due to increased

demand for bookings from the state sector but also an

increased take up from home educated students in our

out-of-term individual booking sessions such

summer schools. Bookings by international

independent schools have remained steady.

LYSC visitors by school type2014 -15

State

S Independent

S Home Ed

• International

S Mixed groups

We have continued to expand the age profile of our

attendees and whilst our biggest attendance is still from

Key Stage 2 (KS2) students we have had a marked

increase in upper K52 students, which was one of ourtargets last year.

LYSC attendance by agerange

6 7 8 9 10111213141516171819

To monitor the level of engagement we ask teachers ifthey think that their students have learnt anything new

about the scientific method and over 93% either agreeor strongly agree.

An important aspect to our evaluation is how

attendance at an LYSC workshop may change if a

student feels that they want to study science at ahigher level. Feedback shows that this year 68°h ofrespondents said that they are more interested in

studying science (up from 62% last year) whilst 28°hsaid they felt the same, as they already wanted to

study science.

asand

25%

20%

15%

10%

5% I0% L1II

4 2013-2014

2014-2015

I I ii ii I -

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The LYSC team also organised 157 events (compared to

153 in the year 2013-2014). Ri public events that the

LYSC were involved in such as family fun days and the

new adult-only ‘Ri Lates’, allowed an extra 2,300

children and 1,660 adults to engage with the LYSC.

Further to this an additional 4,000 students and 600

teachers attended LYSC organised programmes at large

outreach events such as the Association for Science

Education (ASE), Cheltenham Science festival and The

BIG BANG fair. Our total reach for the year 2014-15

was an estimated 10,900 (Up from 9,369) young

people.

This year the reach of the LYSC has broadened

extensively with attendance at the first Festival for

Science and Creativity in Saudi Arabia. Running

workshops over a period of seven days we estimate

1,400 people were reached, who were a mix of school

groups and families. LYSC workshops were also run in

Kazakhstan for a further 60 pupils.

The LYSC participated in the first Butlin’s astonishing

science weekend in Minehead, Somerset. This was the

first leisure science event of its kind and over a period

of two days the LYSC ran 12 workshops and a drop in

stand. Both workshops and the stands were for families

with the workshop attendance totalling 204 people and

the estimated reach of the drop in stand being 1,200.

The LYSC continued to expand its programme of

summer school workshops this year providing 16 (up

from 11 in 2013-14), reaching 265 students. We also

ran two special CHRISTMAS LECTURES-themed

workshops on the filming days called ‘Hack your own

speaker’ and ‘Hack your own gamer’. These were

attended by 32 children and we aim to expand this

offering for the 2015 Lectures.

2015 also saw the official launch of the LYSC sister

centre in partnership with the University of Central

Lancashire. In its first year this new partnership

attracted 1,486 students from locations spanning 65

miles around the Preston area.

Masterciasses

The Ri’s Masterciass Programme is going from strength

to strength, with this academic year providing activities

for very able young people led by professional

mathematicians, engineers and computer scientists.

There were 123 mathematics, 15 engineering and four

computer science (CS) series around the UK, either

organised or supported by Ri staff, with over 6,900

young people regularly attending whole series. This also

involved participation by over 3,000 teachers. Another

3,300 young people attended one-off events with 800

either supporting these sessions or being

in teachers’ support sessions for

Within the Masterclasses network, we have worked with

a number of new presenters this year, bringing new and

exciting ideas of all areas of the programme. Our

celebration events for Masterclass students have

brought over 1,100 members of the Masterclass

community to the Ri with a further 400 attending

Celebrations outside London.

Mathematics and Engineering Masterciasses

With continued funding from ERA Foundation, Kirby

Laing Foundation, the Reece Foundation and DS Smith,

Engineering Masterclasses have expanded into new

areas, such as: Amersham, Atomic Weapons

Establishment (AWE) Hampshire, EDF Nuclear Power

Station Hartlepool, Northumbria University and a school

in Newcastle. Two full day’s Celebrations brought nearly

300 students and families into the Ri from series in and

around Greater London, as well as Manchester and

Warwickshire, plus another at Northumbria University,

Newcastle which, due to venue capacity, also gave

opportunities for an existing Mathematics Masterclass

audience to experience engineering-focused speakers.

A 12-month funding grant from RAEng Ingenious

enabled an extremely successful collaboration with

Birmingham University to develop robotics content for

Engineering Masterclasses. This also supported the

training of nine engineers from academia and industry

who were interested in outreach experience. Robotics

sessions have been well received in existing series

across the network

Computer Science Masterciasses

With the five-year endowment from Causeway

Technologies Ltd, the new Ri Computer Science (CS)

Masterciass Programme commenced in January 2015.

The outcomes of the initial four series, reaching 120

students in London and Birmingham, were extremely

successful and have established a firm base on which to

build the network. The sessions have engaged

promising Year 9 students with a broad swathe of topics

in Computer Science, from binary and recursion to

applications in the arts and engineering. The sessions

have seen students taking on design challenges,

enacting algorithms, building robots and much, much

more.

Student feedback has provided valuable guidance on

how to optimise the delivery of Masterclasses, whilst

teacher feedback has suggested that the Masterciasses

could play a pivotal role in assisting teachers to improve

teachersinvolvedMasterciasses.

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classroom learning.

We have also exceeded our projections for singlesessions, having held 33 single sessions and reached1,393 students, more than twice the projected number.This has meant that the impact of the programme interms of opening students’ eyes to Computer Scienceand its wonders and possibilities has been extended tomany hundreds of students beyond the attendees of theinitial four series.

Looking forward, the Computer Science Masterclassesare projected to expand to new areas across the UK.Locations for an additional eight series have alreadybeen identified prior to the start of the 2015/16academic year, including Newcastle, Lancashire,Sheffield, Brighton and Exeter.

STEM Directories - Enrichment and Enhancement

We coordinate and manage this comprehensive nationalonline directory for teachers, giving them details ofscience, technology, engineering and maths (STEM)enrichment activities that they can participate in tosupport their teaching. The project is supported by theClothworkers’ Foundation and the CausewayFoundation. Their support also allows us to provide twogrant schemes enabling schools in disadvantaged areasacross the UK to be awarded a grant to be used for anenrichment activity from the online listing in the STEMDirectories. The Clothworker’s grant supportsmathematics-only schemes, and the CausewayFoundation supports STEM schemes. We received over600 applications for the 70 grants available.

Science for Schools

To increase our national reach beyond London, and inrecognition of the increasing difficulties schools face intaking groups of students on school trips, the Rilaunched the Science in Schools outreach programme,which takes the magic of science directly into schoolsand communities. The programme provides a packageof fascinating science enrichment activity that takesplace in participating schools and is aimed at widercommunity audiences as well as the students andteachers.

There are three elements to the package — an in-schoolscience show for teachers and students focused on aparticular topic, an additional show aimed at communityaudiences, and Continuing Professional Developmenttraining for teachers with a specific focus on the use ofdemonstrations in the classroom to inspire students. Todeliver this programme, freelance sciencecommunicators based around the UK have beenrecruited to present the shows and carry out the CPD

training. They are supported by Ri staff based in Londonwho develop the shows, take care of logistics andsupport the presenters to ensure a high and consistent

quality of delivery.

The new programme was piloted over the summer of

2015, during which time we reached 10 schools and anestimated 1,000 students. The programme will be rolled

out nationally for the 2015—16 year starting in the

autumn. We estimate this will reach up to 10,000students in the course of the first full year.

Family Activities

In spring 2015 the second series of the ExpeRimentalfilms brought chemistry activities to children aged 4—9and their parents/carers. This second series was fundedby the Royal Society of Chemistry. We expanded thecontributors to the series, featuring presenters inScotland, Wales and Northern Ireland. As well asparents and children, we have filmed videos in an inner-city adventure playground and with a pack of Browniesin Northern Ireland. The finale of this second series wasreleased during British Science Week and we partneredwith the British Science Association to promote the

videos during the course of the week. An evaluation ofthe second series confirmed that our videos are wellreceived and generally make viewers more confident indoing a science activity at home. We also discoveredthat although they aren’t currently reaching manyviewers who are less confident in science, when they dosee them they want to try the activities. The report alsogave us practical ways to better reach these audiences.

The Family Fun Days continued to offer families hands-on experience of science, by combining hands onactivities throughout the Ri building with short talks inthe theatre. This year we ran three Family Fun Days,and the February event was the most popular everattracting over 980 visitors. We also ran seven eventsfor families in the evening as part of the publicprogramme of events.

Summer Schools Programme

This year’s summer schools programme ran successfullyfor five weeks over July & August. The offering wasincreased to 76 individual sessions which attracted1,650 students aged 7 to 18 with a 92% take up acrossthe whole programme. The programme successfullyreached many newcomers with 56% of attendees beingnon - members.

[Collections

The Royal Institution possesses an internationallysignificant collection of scientific apparatus, archives,

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Science Lives Here


books, artefacts and images, associated with the major

scientific figures who researched, lectured and lived inthe building, including Humphry Davy, Michael Faraday,

John Tyndall, James Dewar, William Bragg, LawrenceBragg and, more recently, George Porter. The MichaelFaraday Museum is a nationally accredited museum.

The team is significantly supported in its work by anumber of volunteers and interns. Two students (both

registered with UCL), partly supported by Freer

Studentship Grants, continued researching George

Porter and Humphry Davy’s lecture audience. A newFreer supported student (registered at the University of

St Andrews) commenced a comparative study ofscientific publication in Britain and the German statesover the period 1770-1830. All these topics are ofrelevance to understanding the processes of publicengagement with science.

Other Royal Institution-centred research includes the

study of Davy’s practical work, Tyndall’s biography(undertaken by a Visiting Research Fellow), and the lifeand work of Kathleen Lonsdale. The team activelysupports the long-term projects underway to publish allthe letters of Davy and Tyndall. Volume one (out of aprojected eighteen) of Tyndall’s correspondence waspublished during the year (with a Foreword by Prof

Frank James) and was launched at a meeting held atthe Royal Institution.

The team ensures access to the entire collection,including maintaining the publicly open exhibition

across the lower three floors of the building where

about a fifth of the apparatus collection is displayed. In

total the exhibition on the Lower Ground Floor received

75,403 visitors during the year. The team also

facilitates, by appointment, public access to the reserve

collection and archives (where there were about 190

separate visits during the year). The team also

responded to over 500 queries from the public andmedia.

In addition to ensuring public access to the Collections,

the team is also responsible for overseeing the

recording, preservation and conservation of the

material. Whilst the archive, which represents the

history of science at the Royal Institution, is stored and

accessible in the building, other parts of the reserved

core collections are located at the National Secure

Storage facility at Upper Heyford. As part of the Royal

Institution’s conservation programme, bench space in

the conservation laboratory on the fourth floor is let to

Christopher Woods of the National Conservation Service

who undertook some conservation work for the Royal

Institution during the year.

Work has been on going to digitise tapes of theCHRISTMAS LECTURES as part of the EMC HeritageTrust Project. A grant of £7,900, awarded by theNational Manuscript Conservation Trust, was used toconserve the Conybeare Album of letters andphotographs related to Faraday and the album of lettersfrom Honorary Members (including Albert Einstein)accepting the honour.

Frank James, Professor of the History of Science, gavea number of talks relating to his research. This includeda talk on Davy and Cornwall on the occasion of theunveiling of a Royal Society of Chemistrycommemorative plaque on the house in Penzancewhere Davy was apprenticed as an apothecary in the179 Os.

Davy Faraday Research Laboratory

_______________

The work of the Davy Faraday Research Laboratory iscarried out through an arrangement with UCL.Scientists are conducting research in nanotechnology

for the pragmatic goal of delivering life-changing newbiomedical advances into the hands of physicians forreal patient benefit.

Membership

________________________

With over 5,200 members the Ri has enjoyed a 15%increase in its membership numbers throughout theyear, with the largest increases coming in the FaradayJunior category. This recent growth has resulted incurrent member numbers being the highest in the Ri’s216 year history.

To better understand the needs of our membership the

Ri carried out a member-wide consultation in the

summer of 2015. This resulted in the development of a

new membership structure, including the introduction of

a new patron scheme, which was approved by the

Trustees in September 2015.

The growth in individual members has also been

complemented by growth of the Ri’s Corporate

Membership, with Abu Dhabi Investment Authority, P&G

Prestige, AWE, Causeway Technologies and Hiscox

continuing their memberships and being joined by

6point6 Technology Services. The scheme provides an

easy entry point to enable science-based organisations

to both get involved with and support the work of the

Ri.

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D The RoyaL Institutioniii Science Lives Here


Venue Hire and catering activities, managed through

the R1GB Limited trading company, generate income to

support the Ri’s charitable science, education andheritage programmes.

RiGB Ltd — venue hire and catering

Venue hire turnover for 2014/15 was £1,562k,representing a 15°h increase from the previous yearand profit increased 90% to £658k. This growth is

largely attributable to strong repeat bookings, a shifttowards larger events and ‘exclusive’ hires plus anincreased commission from our catering partner, Elior.The creation of a new public space on the first floorclose to the famous lecture theatre has enhanced thescale and quality of the venue hire offering resulting inthe ability to hold larger events for up to 400 people.

During an exciting year the team also formedrelationships with more than 50 new clients, many ofwhom returned at least twice more in the same year.In line with a proactive sales and marketing strategy,the venue hire team worked with a number ofcompanies that resulted in the Royal Institutionfeaturing favourably in online reviews and articles andin the media nationwide.

Volunteers and Donated Services 1The Ri is grateful for the valuable contribution madevoluntarily to its work. This includes not only that madeby its members and supporters but also to those whoserve on various committees supporting the Ri’sactivities who give their time and expertise sogenerously.

The Ri would like to express its thanks to the manyvolunteers for their significant contribution in helping todeliver its heritage, communication and educationcharitable activities. Volunteers assist the Collectionsand Heritage team in advancing the cataloguing of theCollection and Archive. The remarkable quality andreach of the Science Learning Programme is enhancedby the work and support of volunteers most notably inareas such as the Mathematics Masterclasses, publicevents (such as Ri Lates) and Family Fun Days. Avolunteer force of 19 individuals has been developed,nurtured and deployed, to assist the Membership teamin converting non-member event attendees intomembers, up-selling at events and improvingmembership retention.

The Ri is also grateful to those who have been able to

provide their services pro-bono and/or at significantly

reduced costs, and in particular would like to thank

Olswang Solicitors for contract and trademark legal

support; Christies for their extremely supportive

proposal to manage an auction for selected heritage

items; Travers Smith for property legal advice; Pro

Bono Economics and FF1 Consulting for their analysis of

Ri Channel metrics, and to Hameed Khan who hasprovided invaluable strategic support to the Finance

team.

Financial ReviewThe Ri is supported by income raised through:

donations, legacies and sponsorship; ticket sales;membership subscriptions; venue hire and hospitality;and rental of office space.

In the year ended 30 September 2015, the Ri had a

total income of £3,514k (2014: £4,158k) and a netdeficit of £346k (2014: £265k deficit before taking intoaccount a £500k endowment from Causeway making anet surplus of £235k).

Our trading subsidiary, RiGB Ltd has delivered a strongperformance increasing the income to £1,562k (2014:£1,354k) and profit to £658k (2014: £347k).

The RI has continued to enjoy the support of numerouscompanies, philanthropic trusts and foundations for itscharitable activities, attracting restricted income of£595k (2014: £715k).

The net debt at 30 September 2015 was £698k madeup of a cash balance of £1,302k less a loan of £2.Om.The cash position worsened by some £540k in the year,primarily due to the net cash outflow from operatingactivities and payments to acquire fixed assets duringthe year. Since year end, substantial cash flows asdescribed in Note 30 to the Financial Statements hasallowed the Ri to repay its £2.Om loan and is now debtfree with a strong cash balance.

The £1.Om overdraft facility was renewed by HSBC for afurther 11 months to October 2016, which providesfinancial reserves in the event of an unexpected eventwith very significant financial consequence.

During the course of the year, the Trustees took anumber of steps to put the Royal Institutions financeson an even more stable footing. Two specific actionsmerit noting: following a Scheme issued by the CharityCommission (Dec 2014) and appropriate planningpermission approval (May 2015) the Trustees agreed a20 year lease for part of No. 20 Albemarle Street.

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D The RoyaL Institutionlvi Science Lives Here


Secondly, the Trustees agreed that a sale of a number

of non-core heritage items, that had been identified

through a set of strict criteria based on the Ri’s

accessioning policy, should be undertaken as a one-off

event. Given the significant post balance date events

described in Note 30 to the Financial Statements,

including the repayment of debt and the renewal of the

overdraft facility, the Trustees consider that it is

appropriate to prepare the financial statements on a

going concern basis.

Pricing Policy

Ticket prices for the Programmes and Public events are

established to strike a balance between appropriate

cost recovery and ensuring accessibility for those of

modest means.

Certain activities such as the Mathematics

Masterclasses and L’Oreal Young Scientist Centre, are

made available free of charge or for a nominal fee and

this is made possible by the generous support of

companies, trusts and foundations that help fund our

educational and charitable activities.

The Michael Faraday Museum is free of charge to

maximise access and enhance the experience of visiting

the Museum and its artefacts.

The pricing policy remains under review to ensure

appropriate economic returns to support the work of the

RI and promote both its public benefit and future

sustainability.

Investment Powers and Policy

The Trustees are empowered to invest the Charity’s

funds at their discretion, except where a donor has

given specific instructions. The funds held by the Ri are

invested with HSBC Global Asset Management. The Ri

investment policy is to achieve optimal income whilst

balancing risk.

The current approach towards the strategy and risk

profile on the Ri’s investment portfolio is embodied in

the selected returns strategy categorised as ‘long term

growth & income’ The 12-month performance

benchmark for the growth and income/medium risk

portfolio was minus 1.290/c. The actual 12-month

performance was positive l.0l0/c due largely to the

weak returns in Q2 and Q3 of 2015.

Reserves Policy -

The Trustees seek to ensure that unrestricted money

raised by the Ri is reinvested in the services that it

delivers. As a policy, it aims to establish an Operating

Reserve of around £3.5m which would equate to one

year’s total operating expenditure.

The Ri has a deficit on free unrestricted funds of

£2,560k as a consequence of overspending on the

building refurbishment, the additional cost of running

the refurbished building and a shortfall in capital and

operational funding. This compares to a deficit of

£2,286k in 2014.

In previous periods the Ri had been considering the

appropriateness of its funds structure and the alignment

of certain endowments funds to its current strategy and

charitable programmes. This process has neared its

conclusion and now focuses on only two funds as set

out in note 24.

Plans for future periods

The RI continues to review its operating model to

ensure its plans for the future create a sustainable

organisation, deliver public benefit and continue to

inspire the next generations of scientists. The Ri seeks

to reach a wider public to extend its national and

international reach and influence for the benefit of the

public, with particular emphasis on science

communication and education.

Attention will focus on its digital strategy to deliver a

full and vibrant young person’s and public programme

whilst ensuring its business strategy raises sufficient

sustainable annual income for the Ri’s charitable work.

A new Membership and Patrons programme was

launched in October 2015 to better engage with all

Members and Patrons and provide them with value. The

RI will also focus on strengthening relationships with its

existing and potential funding partners, sponsors and

supporters.

Structure, governancemanagement

• Governing documents

The Governing documents of the Royal Institution of

Great Britain (the Ri) are the Royal Charter dated 13

January 1800; the Act of Parliament dated 18 April

1810; an Amending Act dated 14 May 1958; a

Supplementary Charter dated 14 November 1958; an

Amendment to the Charter of 1800 granted on 22

February 1967; Schemes of the Charity Commission

dated 17 April 1959, 26 May 1959, 30 March 1965, 26

January 1967, 26 April 1971, 10 April 1984 and 30

March 2011, and Orders in Council dated 22 February

1967, 11 April 1984 and 7 April 2011. The RI is

and

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D The Royat InstitutioniI Science Lives Here

which are made under the Governing Documents.

Appointment of Trustees

The Byelaws of the RI require nine elected Trustees and

up to two appointed Trustees to make up the Board of

Trustees. Appropriate provision to ensure both

continuity and refreshment of Trustees is made within

the Byelaws though a process whereby one third of the

elected Trustees are elected by the membership of the

RI each year via a ballot (in the event of the number of

nominations exceeding the number of vacancies). Three

Trustees retired in 2014-15, two of whom were

nominated for re-election. No further nominations were

received and so they were re-elected to two of the

three vacant positions, with the results announced at

the Annual General Meeting held in May 2015. Following

a review of skills the Board of Trustees resolved to

appoint a trustee with a specific remit for supporting

fundraising activities, and duly appointed a trustee to

fill this position in September 2015.

Trustee Induction and Training

New Trustees receive half a day’s induction, consisting

of an overview of each operating department of the Ri,

delivered by staff. They are briefed and receive a copy

of the Byelaws and Governing Documents of the RI and

the Charity Commission’s “The Essential Trustee: What

you need to know”. Trustees are kept up-to-date

throughout the year with regular briefings from Senior

Management at quarterly meetings of the Board of

Trustees; are invited to attend staff briefings; andinvited to attend Trustee training events run by various

industry charity advisors (e.g. RSM, our auditors).

Organisation

The organisation is governed by a Board of Trustees

(nine elected, two appointed) and three Standing

Committees (an Audit Committee, a Finance Committee

and a Nominations Committee). The Board of Trustees

and the Finance Committee meet quarterly; the Audit

Committee meets three times a year and the

Nominations Committee meets as required.

Sub-Committees are developed as and when therequirement arises and are governed by a terms of

reference approved by the Board of Trustees. The

Science & Education Sub-Committee, chaired by Prof

Julia Buckingham, has continued to meet to provide

advice and guidance on the development of the 3-Year

Science and Education Strategy and charitable

programmes of the RI.

manage the daily operations, and is assisted in these

tasks by the Senior Management Group of four,

including the CEO.

Related Parties

None of the Trustees receive remuneration or other

benefits for their work with the RI.

The RI is the sole shareholder of the trading subsidiary

R1GB Limited, registration number 04065626. This

company hires out space to the corporate organisations

and to the public for events in the RI buildings at 20

and 21 Albemarle Street, to maximise the return on the

Ri’s charitable assets and provide income for the

charitable programmes. The directors of R1GB Limited

are the RI CEO and Director of Operations at the RI and

a former Honorary Treasurer and member of the former

Council of the RI. The CEO is also Secretary of RiGB

Limited. RIGB Limited pays a management fee and gift

aids its profits to the RI.

R1GB generated revenues of £1,562k during 2014-15.

The Ri’s event space is now established as an attractive

destination for many corporate clients and the diversity

of these clients has increased dramatically.

The RI has no financial or controlling interest in any

other organisation.

IRisk Management

The major risks to which the RI is exposed have beenreviewed and systems have been embedded to mitigatethose risks. The Trustees are ultimately responsible forensuring that proper arrangements are in place foradequate and effective risk management and control.The active management of risk is delegated to theSenior Management Group with reliance upon the AuditCommittee to assess the adequacy of the riskmanagement arrangements. Strategic and operationalrisk registers are in place, and are reviewed andmanaged by management.

Regular reviews of business performance throughoutthe year highlight the strategic and operational risksfacing the RI, particularly the need to attract sufficientfunding, manage cash flow, meet loan obligations andinvest in the core infrastructure. The Trustees remainwatchful over the Ri’s ability to raise sufficient funds tosupport the charitable activities, whilst generatingsufficient cash to meet liabilities as they fall due.

The Trustees, through the quarterly meetings of theFinance Committee, Audit Committee and regularupdates from the CEO, monitor financial progress and


Governed by these documents and by the Byelaws, A Chief Executive Officer of the RI is appointed to

-

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R. The Royal Institution

_____

Science Lives Here


risk management. Additionally, the Audit Committeetracks the continuous improvement of the Ri’sprocedures and systems by monitoring managementresponses and proposed actions to matters raisedthrough the external statutory audit and internal auditsundertaken.

Major Risks

The RI regularly monitors its operational and financialrisks, which are core to ensuring a sustainable andvalued charitable business. The current major risks,which attract the highest risk rating, relate to the abilityto attract unrestricted funding, responding to longer-term cash flow pressures, and developing a robust andsustainable strategy for the future.

The RI response to the constrained unrestricted incomein recent years has been to closely manage costs andthe operating deficit. Initiatives instigated in the recentpast, as described in Note 30, Post Balance DateEvents, will create a more stable financial foundationand contribute to future successful fundraisinginitiatives. The Ri mitigates potential short-term cashflow pressures by close management of cash flows andregular financial and management reporting.

Since charitable programme content is the core elementof the RI Royal Charter and charitable activities, thefinal major risk, monitored regularly, is the potentialfailure of programme content or reach to attractsponsorship. This is mitigated by the programme beingcarefully matched against a clear needs propositionrelating to public benefit; which aligns well withcorporate social responsibility and trust/foundationfunding criteria.

The Trustees are confident that with the repayment ofdebt the RI is now in a more stable financial positionthat better meets the stringent criteria of fundingbodies, and will enable the RI to attract supporters andfunders to underpin the future growth and developmentof the Ri’s charitable programmes.

Trustees’ Responsibilities in relation to the financialstatements

The Trustees are responsible for preparing the Trustees’Report and the financial statements in accordance withapplicable law and United Kingdom AccountingStandards (United Kingdom Generally AcceptedAccounting Practice).

The law applicable to charities in England & Walesrequires the Trustees to prepare financial statementsfor each financial year which give a true and fair view ofthe state of affairs of the Charity and of the incoming

resources and application of resources of the Charity forthat period. In preparing these financial statements, theTrustees are required to:

select suitable accounting policies and then applythem consistently;

• observe the methods and principles in the Charities’Statement of Recommended Practice;

• make judgments and estimates that are reasonableand prudent;

• state whether applicable accounting standards havebeen followed, subject to any material departuresdisclosed and explained in the financial statements;

• prepare the financial statements on the goingconcern basis unless it is inappropriate to presumethat the charity will continue in business.

The Trustees are responsible for keeping properaccounting records that disclose with reasonableaccuracy at any time the financial position of the charityand enable them to ensure that the financial statementscomply with the Charities Act 2011, the Charity(Accounts and Reports) Regulations 2008 and theprovisions of the Royal Charter. They are alsoresponsible for safeguarding the assets of the charityand hence for taking reasonable steps for theprevention and detection of fraud and otherirregularities.

The Trustees are responsible for the maintenance andintegrity of the charity and financial informationincluded on the charity’s website. Legislation in theUnited Kingdom governing the preparation anddiss nation of financial statements may differ fromle slati n in other juisdictions.

B ord r of the Truste

Sir Richard SykesDate: IS ILWIA 2 c2tE

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We have audited the financial statements of The Royal

Institution of Great Britain for the year ended 30 September

2015 on pages 15 to 42. The financial reporting framework

that has been applied in their preparation is applicable law and

United Kingdom Accounting Standards (United Kingdom

Generally Accepted Accounting Practice).

This report is made solely to the charity’s Trustees as a body,

in accordance with the Charities Act 2011. Our audit work has

been undertaken so that we might state to the charity’s

Trustees 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 charity and the charity’s Trustees as a

body, for our audit work, for this report, or for the opinions we

have formed.

Respective responsibilities of Trustees and auditor

As explained more fully in the Statement of Trustees’

responsibilities set out on pagel4, the Trustees are responsible

for the preparation of the financial statements and for being

satisfied that they give a true and fair view.

We have been appointed as auditors under section 151 of the

Charities Act 2011 and report in accordance with regulations

made under section 154 of that Act. Our responsibility is to

audit and express an opinion on the financial statements in

accordance with applicable law and International Standards on

Auditing (UK and Ireland). Those standards require us to

comply with the Auditing Practices Board’s (APB’s) Ethical

Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is

provided on the Financial Reporting Council’s website at

In our opinion the financial statements:

• give a true and fair view of the state of the group’s and

charity’s affairs as at 30 September 2015 and of their

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.

Emphasis of Matter — Use of Funds

We draw attention to Note 24 to the financial statements,

which describes the need to replenish endowment and

restricted funds, as agreed with the Charity Commission, once

a surplus has been established on the general fund. Our

opinion is not modified in respect of this matter.

jMatterson which we are required to report by exception

We have nothing to report in respect of the following matters

where the Charities Act 2011 requires us to report to you if, in

our opinion:• the information given in the Trustees’ Report is

inconsistent in any material respect with the financial

statements; or

• the parent charity has not kept sufficient accounting

records; or

• the parent charity financial statements are not in

agreement with the accounting records and returns; or

• we have not received all the information and

explanations we require for our audit.

tSM A L—

RSM UK AUDIT LLP (formerly Baker Tilly UK Audit LLP)

20 ApUStatutory Auditor

25 Farringdon Street

London EC4A 4AB

RSM UK Audit LLP is eligible to act as an auditor in terms of

section 1212 of the Companies Act 2006.

Independent Auditor’s Reportto the Trustees of the RoyalInstitution of Great Britain

Opinion on financial statements

htto://www.frc.org. uk/auditscopeukrivate

20I,

-

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D The Royat Institution

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Science Lives Here


Incoming Resources

Incoming resources fromgenerated funds

Voluntary income

Activities for generating_funds

Investment income

Incoming resources fromcharitable activities

Total Incoming Resources

Resources Expended

Costs of generating funds

Costs of generating voluntaryincome

Fundraising trading: cost ofgoods sold and other costs

Investment management costs

Unrealised flosses)/gains oninvestments

Actuarial (losses)/gains ondefined benefit pension scheme 27

Net Movement In Funds

Fund balances brought forwardat 1 October 2014

Fund balances CarriedForward at 30 September2015

2015Total Funds

£,000

87

tConsolidated Statement of Financial Activitiesfor the year ended 30 September Z015 - -

N tUnrestricted Unrestricted Restricted Endowment

0 esGeneral Designated Funds Funds

£,000 £,000 £,000 £,000

2 74

3 2,060

4 10

13

5 775

2,919

97

485

595

6 273

Charitable activities

7 904

2014Total Funds

,000

616

- 2,060 1,919

- 107 119

- .ic”j’ 1,260 1,504

- 3,514 4,158

273 214

- 904 1,007

48 53 55

2,561 2,534

- 69 113

495 176 3,860 3,923

=-------

(176) - - (346) 235

(18) - - -

(194)

8 2

9

_______

1,944

Total Resources Expended

Net (outgoing)/incomingresources before transfers

Governance costs 10 63 6

2 1

1

3,186

488

3

(267)

Transfers --- -

(3) 100

Gross transfers between funds 13 130 (30) (82)

Net (outgoing)/incomingresources before otherrecognised gains and losses (137) (33) 18

----_---_------_

Other recognised_gains and losses

Realised Gains 16

16 (5)

Reconciliation Of Funds

(39)

235

(3) (1)

26 Y.’ 28- -y- --

(73)

-(39)

(180) (35) 17 (241)

19

81

(186)

(439) - 149

(2,813) 25,856 625 7,073

(2,993) 25,821 642

Amounts relate to continuing activities. The notes on pages 19 to 42 form part of these financial statements. The charitable group has no recognised gains

or losses, other than those included in the statement of financial activities above, and consequently no separate statement of total recognised gains and

losses has been presented.

30,741 30,592

6,832 30,302 30,741

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Science Lives Here


—l Group Charity Group Charity

2015 2015 2014 2014

Notes —___________ LEO

Fixed Assets

Tangible assets 14 22,615 22,550 22,511 22,503

Heritage Assets 15 5,300 5,300 5,300 5,300

Investments 16 4,383 4,383 4,531 4,531

Total Fixed Assets 32,298 32,233 32,342 32,334

Current Assets-

Debtors 17 393 -- 247 406 330

Cash at bank and in hand 1,302 1,197 1,842 1,523

Total Current Assets 1,695 1,444 2,248 1,853

Liabilities

Creditors Amounts tailing due within one year 18 (3 166) (2 942) (3 316) (2 919)

Net Current Liabilities (1,471) (1,498) (1,068) (1,066)Creditors: Amounts falling due after more than oneyear 19 (92) - - -

Net Assets Excluding Pension Liability 30,735 30,735 31,274 31,268

Defined Benefit Pension Scheme Liability (433) (433) (533) (533)

Net Assets Including Pension Liability 30,302 30,302 30,741 30,735

The Funds Of The Group and Charity —

Endowment funds 21 6,632 6,832 7,073 7,073

Restricted income funds 22 642 642 625 625

Unrestricted income funds 23

General fund (2.560) (2,560) (2,286) (2,286)

Non charitable trading funds - - 6 -

Designated funds 25,821 25,821 25,856 25,856Unrestricted income funds excluding pensionreserve 23,261 23,261 23,576 23,570

Pension reserve 27 (433) (433) (533) (533)

Total FunØ 30,302 30,302 30,741 30,735

Approved by t Board of Trustees orfl.5 Ma h 2 16 authorised for issue, and signed on its behalf by:

ChairmanDate:

The notes on pages 19 to 42 form part of these financial statements.

- ---,--- .----

Balance Sheets as at 30 September 2015 :-

L,000 L,000 L,000

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The Royal Institution1 Science Lives Here

Trustees’ Report and Financial Statements for the year ended 30 September 2015-

Notes to the financialstatements for the year ended30 September 2015

hr Accounting policies

Accounting Convention

These financial statements have been prepared under the

historical costs convention, as modified for the revaluation of

certain fixed assets, and in accordance with the Statement of

Recommended Practice “Accounting and Reporting by

Charities” (SORP) published by the Charity Commission in

March 2005 and applicable United Kingdom accounting

standards.

These financial statements consolidate the results of The

Royal Institution of Great Britain and its wholly owned

subsidiary RiGB Limited on a line-by-line basis. They do not

include a Charity only Statement of Financial Activities,

because the charity has taken advantage of the exemptions

conferred by paragraph 397 of the SORP. The financial

statements of the subsidiary are detailed in note 16 on

Investments.

The Trustees are aware that a core underlying structural

deficit remains in the current operating model and is planned

to be circa £400k in the 2015/16 year. The relatively small

operating losses of the last two years have benefitted

substantially by the receipt of legacy income at a level which

cannot be relied upon. However, in November 2015, a new

Membership and Patron programme was launched to

Members that is expected to result in significantly stronger

financial support from Patrons which is expected to deliver

strong growth in Membership income and elimination of the

annual operating deficit and a surplus operating result from

2016/17 onwards.

The Trustees are aware of the need to strengthen the

financial resources and reserves of the charity and are

investigating various strategies to address the necessity for a

long term, sustainable and financially robust operating

model. Some progress has been made in this regard with the

full repayment of the Hiscox £2m loan in November 2015

and January 2016.

The Trustees approved the sale of a number of books in

December 2015, which fell outside the current accessioning

policy, and which generated proceeds of £967k enabling

repayment of the Hiscox debt and protecting the core

collection in perpetuity (see note 15).

GoIng concern

Whilst the Trustees recognise there is further progress

required to secure a sustainable future, the progress to date

is positive with elimination of debt and new Member and

Patrons programmes to improve income. This progress,

taken together with the elimination of debt, the renewal of

the overdraft facility, and options being developed to further

strengthen the financial resources of the charity have

resulted in the trustees’ confidence in their ability to deliver a

sustainable future based in Albemarle Street. Accordingly,

the trustees have concluded that there are no significant

uncertainties regarding the ability of the charity to continue

as a going concern in the foreseeable future. The Trustees

have also considered and satisfied themselves on the

adequacy of the disclosures on “going concern” in these

financial statements.

Recognition of Income

Donations are credited to the Statement of Financial

Activities on a receivable basis, including the related income

tax recoverable under Gift Aid.

Donated services are credited to the Statement of Financial

Activities and the equivalent is debited to the corresponding

expense account.

Legacies are credited to the Statement of Financial Activities

in the year in which The Royal Institution of Great Britain is

notified of the entitlement and is able to measure the

amount with reasonable certainty.

Membership subscriptions are apportioned on a straight-line

basis over the relevant periods.

Consolidated income is recognised in accordance with the

delivery of contracted services.

Grants are included in incoming resources when the charity

has met all conditions of receipt.

Recognition of Liabilities

Expenses are recognised as they are incurred. Where

services and goods received have not been invoiced on the

balance sheet date, accruals have been established and

included in the financial statements.

• Allocation of costs

Costs of generating voluntary income comprise expenditure

incurred in encouraging the financial support of The Royal

Institution of Great Britain.

Page 19

The Royal Institution

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relating to the objects of The Royal Institution of GreatBritain and a proportion of expenses relating to the support

of such activities.

Governance costs comprise costs attributable to compliance

with constitutional and statutory requirements. This includes

audit and other advisory costs, the costs of Trustees

meetings and certain legal expenses.

Support costs comprise premises, operations, IT, finance,office and legal and professional costs. Support costs areapportioned to the Charity’s activities based on staff

nu m bets.

A cost sharing agreement with the trading company wasimplemented in 2015 detailing the apportionment of supportcosts to RiGB Ltd.

Properties and depreciation

Properties are stated at historical cost in the case of

properties for charitable use, or at nominal value, where theproperty is considered to be an inalienable asset.

Freehold and long leasehold land and buildings used forcharitable purposes ate listed buildings maintained to a highstandard that retains their service potential and hence noprovision for depreciation has been made. The cost for

upkeep is part of the maintenance costs. An annualimpairment review has been undertaken as required underFinancial Reporting Standards 11 and 15.

Assets with a purchase value of less than £500 are expensedwhen acquired.

Depreciation is provided on tangible fixed assets at ratescalculated to reduce them to residual value over theirestimated useful lives. The principal rates used are as follows(full year depreciation is charged on assets acquired andcapitalised during the year):

Freehold and long leasehold land and buildings: NilComputer equipment and software: 5-50°h pa straight lineRestaurant fixtures and fittings: 20% pa straight lineFixtures and fittings: 10-2O% pa straight lineTheatre equipment: 33% pa straight line

Fixed asset investments

Fixed asset investments are included in the financialstatements at market value on the Balance Sheet date.Realised gains or losses on disposals and unrealised gains orlosses resulting from fluctuations in market value are takento the Statement of Financial Activities in the year in whichthey occur. The allocations of these gains or losses are basedon number of units held by each fund under the differentcategories of unrestricted, designated and endowment.

Income from investments is included in the financialstatements on an accruals basis.

The majority of the Endowment funds’ investments, and partof those of the restricted funds, are held jointly in The Royal

Institution Investment Pool.

Heritage Assets

The Ri’s collection of printed works, archives, images,

scientific apparatus and instruments and furniture, silver,

clocks and watches are considered to represent heritage

assets. On acquisition, heritage assets are initially recorded

in the balance sheet at cost (for those acquired by purchase)or at valuation (for those acquired by donation). In

subsequent years, heritage assets are measured atvaluation.

The Trustees have considered guidance from FRS3O relating

to the valuation of the heritage assets. The Collections areincluded in the Balance Sheet using a valuation by Christies

in February 2011 at the lower range of an auction estimate(see analysis in note 15).

New accessions to the collection, since 1 October 2010, are

usually made by donation and are recorded at the currentvalue where available, unless it is not practicable to obtainsuch a valuation.

There have been no disposals during the 2014/15 period. Wehave accessioned into the Collections working documentsfrom other departments in the Ri and a few objects from theRi Prep Room associated with the Christmas Lectures. Thesedocuments and objects have minimal monetary value but aresignificant in continuing to tell the story of the RoyalInstitution.

There has been no impairment to documents or objectsduring the period.

The Ri adopts the policy of valuing its collections every fiveyears. Over the last twenty years such valuations have beenfound to reflect the general rate of inflation and theadditional value of any accessions made during theintervening period. However, the Collections and HeritageTeam do pay attention to the market when similar items aresold, and would respond appropriately to any significantalteration. We have noticed no alteration in the market valueof similar material and accordingly we have made no changeto the current valuation.

Cash and liquid resources

Cash includes cash in hand, deposits repayable on demandand, if any, overdrafts. Deposits are repayable on demand ifthey are in practice available within 24 hours withoutpenalty.

Liquid resources comprise assets readily disposable, but notwithin 24 hours without penalty. They include short termdeposits and other instruments held as part of the Group’streasury management activities.

P Trustees’ Report and Financial Statements for the year ended 30 September 2015

Charitable expenditure comprises expenditure directly

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Operating leases endowment and restricted funds to give Ri more flexibility in

delivering its charitable objects in the future.Rentals payable under operating leases are charged on astraight line basis over the term of the lease.

Pension costs

Contributions payable to The Royal Institution of Great

Britain’s defined benefit pension scheme are charged to the

Statement of Financial Activities so as to spread the cost of

pensions over the service lives of employees in the scheme.

The pension charge is calculated on the basis of actuarial

advice.

The pension scheme liabilities are measured using aprojected unit method and discounted at a high quality

corporate bond rate. The pension scheme deficit is

recognised in full on the balance sheet.

The current service cost and net return on the scheme’s

assets and liabilities for the year are allocated across the

resources expended categories in the Statement of Financial

Activities. The actuarial gain/floss) on the scheme for the

year is included in the gains/flosses) section of the

Statement of Financial Activities.

Other contributions payable to other schemes are charged to

the Statement of Financial Activities in the period to which

they relate.

accounting

Funds held by The Royal Institution of Great Britain are

either:

Unrestricted general funds — These are funds which can be

used in accordance with The Royal Institution of Great

Britain’s objects at the discretion of the Trustees.

Designated funds — These form part of the unrestricted funds

but these represent amounts which have been set aside for a

specific purpose by the Trustees.

Restricted funds — These are funds that can only be used for

particular restricted purposes within the objects of The Royal

Institution of Great Britain. Restrictions arise when specified

by the donor or when funds are raised for particular

restricted purposes.

Endowment funds — Permanent endowment funds are funds

normally arising as a result of a will where the income but

not the capital sum can usually be spent. Expendable

endowment funds are funds where provision is usually

provided for both the income and capital to be spent on

defined activities

The Trustees are in contact with the Charity Commission

regarding the possible broadening of the terms of certain

Page 21


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Donations, legacies and similar

income

Donations — Education

Maths Set Up_Fund

Donations — Other

Legacies

____________

Donations — Causeway

Total voluntary income

Unrestricted

General

E,000

Unrestricted Restricted Endowment 2015 2014

Designated Funds Funds Total Funds Total Funds

£,000 £,000 E,000 £,000 £,000

_______________________________ _____________

102 115

- 5 4

- 97 - 107 119

2. Voluntary income

Unrestricted

General

Unrestricted

Designated

_____________

£,000 £,000 £,000

Restricted

Funds

11 - 12

Endowment 2015 2014

Funds Total Funds Total Funds

E,000 £,000 £,000

-- 1

—_________________________________———-——--—_______________

— ————- -

- -y’.;-’

48 48--

- z--— ——--

—_______________________

74 - 13 - $7

23 14

1 1

15 100

3. Activities for generating funds

Rents receivable

RiGB Limited room hire income

Sundry income

Total activities for generating

funds

500

616

426

1,562

72

2,060

Unrestricted Restricted Endowment 2015 2014

Designated Funds Funds Total Funds Total Funds

£,000 £,000 £,000 : -. £,000 £,000

- S 426k- ‘ 1562 1354-r’

72106

- 2,060 1,919

1 Investment income —

Unrestricted

General

£,000

Total investment income

Quoted investments 5 - 97

Deposit interest 5 - -

10

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5. Incoming resources from charitable activities

Unrestricted Unrestricted Restricted Endowment 2015 2014

General Designated Funds Funds Total Funds Total Funds

£,000 £,000 £,000 E,000 £,000 £,000

Membership subscriptions 265 - - - 265 241

14/10 Membership subscriptions 15 - - - iS 33 -

Members activities 5 5 5

Public and educational events 405 405 372

Sponsored events 1 - 212 - H 213 257

Educational programme grants — 81

_____________________

263

______ _____________

344

_____

536

Research - - 2 -2 3

Heritage 3 - 8 - — ii 57

Total incoming resources from —

charitable activities 775 - 485 - 1,260 1,504

6. Costs of generating voluntary income


General Designated Funds Funds .XotaI Funds Total Funds

£,000 £,000 £,000

______

£,000 . £,000 £,000

Fundraising and Development - ——

_____________

Direct costs 134 - - - 134 114

Support costs 139 - - - 139 100

Total costs of generating

7. Fundraising trading: cost of goods sold and other costs ---

. Unrestricted Restricted Endowment 2015 2014Unrestricted

Designated Funds Funds Total Funds Total FundsGeneral

£,000 E,000 £,000 £,000 £,000 £,000

RIGB Limited direct costs 372 - - -373 360

Support costs 532 - - - - 532 647

Total fundraising trading: cost of

goods sold and other costs 904 - - - 904 1,007

8. Investment management costs


General Designated Funds Funds rotal Funds Total Funds

£,000 £,000 £,000 E,000 £,000 -— £,000- —----——- ——_________

2 2 1 48 1Investment Management & AuditFees

_____________________________

__________

Total investment management -

costs 2 2 1 48 53 55----.- -

Page 23

D The RoyaL Institutioniii Science Lives Here

2015 2014Total Funds Total Funds

£,000 £,000

“ 134 43

90 78

224 121

__

640 622

145 188

176 95

121 — 151

____

970

2,024 2026

128 152—

________

32 24

151 161

311 337

2,561 2,534

- :,. 20 17

2 -

1 1

Auditor’s remuneration excluding VAT was E19k for audit services and Elk for other accountancy services (2014: E19k for audit services and £nil

for other accountancy services).

Trtistees’ Report and Financial Statements for the year ended 30 September 2015

9. Charitable activities

Unrestricted Unrestricted Restricted Endowment

General Designated Funds Funds

£,000 £,000 £,000 £,000

Education

Programme costs

Members’ Costs -___________________

Direct costs 134 - - -

Support costs 90 - - -

Total Members’ Costs 224 - - -

Young Scientist Centre

Online

Christmas Lectures

Support costs

266

31

164

Total Education

Research

DERL direct costs

244 128

114

44 1 76 -

942

12

Total Research

Heritage

1,449 1 446 128

2

2

Collection costs 120 8

Philip Freer Fund - 32

Support costs 151 -

Total Heritage 271 40

Total charitable activities 1,944 1

10. Governance costs -

Unrestricted UnrestrictedGeneral Designated

Auditor’s remuneration:

Audit services of current auditors

488 128

£,000 £,000

Restricted Endowment 2015 2014

Funds Funds Total Funds Total Funds

£,000 £,000 £,000 £,000

20 - -

Other accountancy services 2 - - -

Costs of Trustees’ meetings

_________________

1 - -

-

Alchemy Project Fees - - --

20 Albemarle Support Costs - - 6 -

Other support costs 40 - - -

Total governance costs 63 6

6

40

- 69

55

40

113

-

Page24


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42 25 278 46 39

6 12 49 7 24 14

16

professional 6 3 - 11 ,E:

Depreciation 7 4 47 8 - 15 81 60

Marketing 9 5 79 9 - - 102 125

Total BeforePensionMovement 141 91 1 1,942 2,000

Net movement ofpenorifund (2) —- (1)(1i) (2) (3) 1 (19) 8

Total SupportCosts 139 90 942 151 69 532 i .i,923 2,008

2014E,000

1,363

163 141

86 75

Total Staff Costs 1,820 1,579

No remuneration or expenses have been paid to the Trustees during the year (2014: Enil).

11. Allocation of support costs

Fundraising & Members’Development Costs

£,000 £,000

Premises costs 55 32

Operations,Finance and IT

Staff recruitment,training andwelfare

RiGBLimit

Education Heritage Governance ed

£,000 £,000 £,000 £,000

359 60 — 6 — 356

106 d’

Office costs

Legal and

10 106 17

Total Total2015 2014

£,000 E,000

868 1,025

536 539

112 38

182 159

________

61 54

33

12. Staff costs

Wages and salaries

Social security costs

Pension costs

2015£,000

1,571

Page 25

R. The Royal Institution

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12. Staff costs (continued)

_______________________________________________ _______________________________

Employees earning £60,000 or more fell into the following bands:

£60,00 1-f70,000

E80,001-E90,000

£1 10,001-f 130,000

£ 130,001-f 140,000

2015 2014No.

1

1 1

1

All 3 (2014:2) of the above employees benefited from employer’s contributions to their stakeholder schemes during the

year totalling f25k (2014: £19k).

Average number of employees, analysed by function

Educational Programme

Heritage

Premises

Directorate

Fundraisers

Membership department

Operations, Finance and IT

Total Staff

2015 2014

No. No.

18 20

-t”.. 1 1

- 3

2

1

- 4 4

41 -- 41

At 30 September 2015, staff loans totalled £8k (2014: E7k). No interest is charged on these loans, which mainly relate to advances for travel season tickets.

Page 26


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13. Gross transfers between funds

Unrestricted General Designated Funds Restricted Funds Endowment Funds

E,000 £,000 £,000 £,000

Christmas lectures fund a 47 - (47)

Young Scientist Centre fund b (10) - 10

Online c 3 - (3) -

Maths Fund - Primary d (6) - 6 -

Maths Fund - Secondary e 1 - (1) -

Maths Fund - Engineering f 26 - (26) -

John Lyons Foundation Grant g 1 - (1) -

Enrichment & Enhancement Grant h 6 - (6) -

Philip Freer Studentships Income i 8 - (8) -

Sponsored events j 2 - (2) -

ExpeRimental k (1) - 1 -

Causeway I 18 - - (18)

Educational m 5

________________________

(5)

Library fundn

30(30)

________________________________

Total Transfers 130 (30) (82) (18)

a) This is the remainder of the funding received to set oft against overheads incurred at the CHRISTMAS LECTURES.

b) This is the remainder of the funding received to set off against overheads incurred at the Young Scientist Centre

c) This is the contribution on the Sfumato grant towards direct costs in the general fund

d) This is the shortfall on the funding received towards Maths Fund — Primary expenditure during the year.

e) Maths Fund — Secondary is afforded from multiple sources with whom it is agreed all funding provided will contribute to overheads.

f) Maths Fund — Engineering is afforded from multiple sources with whom it is agreed all funding provided will contribute to overheads.

g) John Lyon’s Charity Grant stipulates a contribution to both overheads and staff salary for the period ending 2013-14

h) This is the contribution on the Enrichment & Enhancement grant towards direct costs in the general fund

i) This is the contribution on the Philip Freer Studentships Income grant towards direct costs in the general fund

j) This is the allocation of sponsorship income received for the Public Events Programme towards applicable costs.

k) This is the shortfall of funding received to set off against costs incurred on the ExpeRimental project.

I) This is the contribution on the Causeway Endowment fund towards costs in the general fund in relation to the Computing Masterciasses Programme.

m) This reflects the contribution to general fund costs from educational grant income released from earlier years.

n) This is the contribution on the Library Fund towards direct costs in the general fund for Heritage and Collections.

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D The Royal Institutioniii Science Lives here


14. Tangible assets

Depreciation:

_________ ________________ _________

___________________

At 1 October2014

___________________________________________ _________

_______________________

Charge for theyear

- - - 47

______________

At30 -‘

. September2015

- - 36 686

___________

Net BookValue:

At 30September2015 22,332 1 82

At 30 September2014 - 22,332

___________

1 77

The freehold of 20 Albemarle Street is considered to be an inalienable asset and is therefore stated at a nominal value of £1. The long leasehold of 21

Albemarle Street is largely restricted to being used for the purposes of the charity and is accordingly been stated at cost in these financial statements. The

greater part of tangible assets comprises the cumulative cost of the refurbishment of 21 Albemarle Street. The work was complete at 30 September 2008. In

July 2011, the Trustees commissioned a valuation of the property by Christie & Co. This valuation was E45m and there is no evidence of any impairment. As

the Heritage Lottery Fund has contributed £4.5m to the refurbishment of 21 Albemarle Street, the use of this property cannot be changed nor can a loan be

secured on it without the consent of the Heritage Lottery Fund. In the event the property is sold, an amount may become payable to the Heritage Lottery

Fund. The Ri has no intention of selling the property and no provision has been made in these financial statements for any repayment to the Heritage Lottery

Fund.

Cost orValuation:

At 1 October2014

Long Restaurant Computer

Freehold Leasehold - Fixture Equipment Fixtures

Land and Land and and and and Theatre Charity RiGS Group

Buildings Buildings Fittings software Fittings Equipment Total Limited Total

Group andCharity £,000 £,000 £,000 £,000 £,000 E,000 ,000 £,000 £,000

- 22,332 37 716 528 125 23,738 111 23,849

Additions - - - 52 76 - 128 63 191

At30September2015 -___ 22,332 37 767604 12 23,866

-

- 36 639 435 125 1,235 103 1,338

34 - 81 6 87

469 125 1,316 109 1,425

135 - 22,550 65 22,615

93 - 22,503 8 22,511

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15. Heritage Assets

Printed Scientific apparatus Furniture, silver,

Group and Charity works Archives Images & instruments clocks & watches Total

_____

£,000 £,000 £,000

________

£,000 £,000 ,oooJ

Valuation at 1 October 2014 1,170 2,630 100 1,000 400 5,3001AdditionsValuation at 30 September /2015 1,170 2,630 100 1,000 400 5bO’

The Royal Institution holds an extensive heritage collection relating to its history and to those scientific and other figures who have researched, lectured and

lived in the building.

The collection is in six main areas:

• Printed works: The collection contains around 30,000 volumes of books and periodicals, published from the sixteenth century to the present day.

The main strength of the collections is in the 19th and early 20th centuries, especially in natural philosophy and chemistry.

• Archives: An internationally significant record on the contribution to scientific knowledge and its communication made by the Royal Institution over

more than two centuries. The archive collection is a unique resource for all those interested in the development of science and its changing

relationship with society and other areas of culture. It probably contains around a million items which could be catalogued.

• Images: The collection includes about 100 paintings in various media, approximately 40 sculptures, several hundred engravings and several

thousand photographs, all of which are related in various ways to the Royal Institution and its work.

• Scientific apparatus & instruments:i. Apparatus: This section includes some of the iconic objects of science including the world’s first miners’ safety lamp, electric

transformer and generator. In total there are about 3,000 items in this collection all of which were used by researchers in the

Royal Institution to make their seminal discoveries.

ii. Instruments: Comprising around 2,000 items, these instruments were presented at various times and were mostly used in the

Royal Institution for communicating scientific knowledge.

• Furniture, silver, clocks, watches etc: This includes about twenty items of furniture, about twenty clocks and watches and various pieces of silver all

of which are either closely associated those who lived in the Royal Institution or used for institutional purposes.

The Collections are included in the Balance Sheet using a valuation by Christies in February 2011 at the lower range of an auction estimate.

New accessions to all these collections are usually made by donation and are recorded at the current value where available. The cost of obtaining an annual

valuation outweighs any resultant benefit. The Royal Institution holds and retains the collections as a long-term policy for use in its charitable purposes.

The collections are accessible to the public and scholars in a number of ways. Roughly a thousand objects are displayed around the building, whilst the

archives and reserve collection may be visited by appointment.

As an accredited museum the Ri has adopted a set of Heritage Asset policies which meet the standard required by the Museum & Library Archive (MLA).

These cover acquisitions, preservation and management of Heritage Assets.

In conjunction with the Ri collections policy, the collection represents the work of the Ri — consequently there i no acquisition budget. Any additions to the

collection are generated through donations of artefacts assessed as being culturally relevant to the Ri’s history. Similarly, the Trustees consider the case for

disposals in light the heritage assets policy and net economic benefit to the Ri. In the year the Trustees reviewed certain items in the collection in light of the

current accessioning policy.

During the course of the year there have been no disposals or impairment of Heritage Assets.

Valuations of heritage objects, especially those related to science, do not usually vary significantly on an annual basis. The Ri has adopted a policy of valuing

its collections every five years with the last valuation undertaken by Christies in February 2011 upon which the current valuation is based. Such valuations

reflect the general rate of inflation and the additional value of any accessions made during the intervening period. However, the Collections and Heritage

Team monitor the market for sale of similar items and would respond appropriately to any significant alterations.

No such alterations in the market value of similar items have occurred and accordingly no change to the current valuation has been made,

There have been no new accessions and no disposals or impairments to documents or objects during the 2014/15 financial year.

On 1 December 2015, heritage assets valued at £582k were sold at an auction run by Christies for a value of E967k. The proceeds of this sale were received

in January 2016 and a profit on disposal of £385k will be recognised in the 30 September 2016 Financial Statements. See post balance sheet events (Note

30).

Page

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Group and Charity Cash Quoted Investments

.--——,000 E,000

Market value at 1 October 605 3,926

Group Total Group Total2015 2014

£,000 £,000

4,531 3,959

(1 119)

____

(1,119) (2,901)

28

_________

28 19

1,064 1,064 2,854

(79)Net unrealised investment (losses)! gains on quoted

investments

Cash movements (42) — -

New Cash Investment -

Market value at 30 September 563 4,. 4,531

Historical cost at 30 September 563 3,653 4,216 4,232

The RI operates an Investment Pool which is shared by all the funds. All participating funds share in the income, expenditure, gains and losses of the

Investment Pool in proportion to their investment in it.

With the acceptation of the Philip Freer permanent endowment, the Pool investments are held in separate accounts from the Ri’s on-going activities.

The above figures are inclusive of the Philip Freer endowment as well as all Pool funds. All of the above is held for support of charitable activities.

Quoted investments

HSBC-UK Fixed Interest

HSEC- Overseas Fixed Interest

HSBC-UK Equities

HSBC-Overseas Equities

HSBC- Alternative Investment Property

Total quoted investments

2015 2014

£,000 £,000

197 172

376 438

1,636LZ

_______

1,318 1,059

293 483

3,926

The RI owns the entire issued share capital of R1GB Limited of one pound, a company incorporated in England and Wales which lets surplus room space

at the Royal Institution of Great Britain.

The profit and loss account of the subsidiary is as follows:2014

2015(Restated)

______

£,000______ £,000

1,562 1,354

________

(372) (360)-A w

(532) (647)

658 347

Interest receivable..

Profit on ordinary activities before taxation 658 347

Taxation - -

Retained profit for the year 658 347

16. Investments

Disposals - Quoted investments

Net realised gains on sale of quoted investments

Purchase of quoted Investments

3,820

(79) 81

(42)

________

19

500

Turnover

Cost of sales

Management fee

Operating profit

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16. Investments (continued)

The balance sheet of the subsidiary is as follows:

2015Group£,000

250

Charity£,000

106

__________

33

110 108

393 247

Fixed assets

Tangible fixed assets

Current assets

Debtors

Cash at bank

Creditors: Amounts falling due within one year

Net current assets

Creditors: Amounts falling due after more than one year

Total assets less current liabilities

Capital and reserves

Called up share capital

Profit and loss account

Shareholder’s funds

17. Debtors

•“ 1,477

____

(1,5

____

-

20142015 (Restated)

E,000 £,000

65 8

_______________

1,069

319

(1,390)

(2)

(92) -

- 6

- 6

- 6

2014Group£,000

182Trade debtors

Amount owed by subsidiary undertaking

Other debtors

_______

Tax recoverable

Prepayments and accrued Income

Total Debtors

Charity£,000

59

10

9

205

50

10

9

202

406 330

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Trustees’ Report and Financa! Statements for the year ended 30 September 2015

18. Creditors: Amounts falling due within one year

_____________

The Hiscox loan for the sum of £2.Om was received in June 2010. The purpose of the loan is to provide working capital for the Ri. The terms of the loan require the

repayment of the loan on the fifth anniversary from the date the loan was received by the Ri, and the interest is payable on the loan balance at 2.5% above the bank

base rate. The loan was originally repayable in June 2015 and was therefore reported under creditors falling due within one year in the 30 September 2014 accounts.

The loan term was extended to 30 November 2015 with interest payable on the loan balance in the extended period at l.5% above the bank base rate. A repayment of

E1.5m was made on 30 November 2015 and the balance of £0.5m was repaid on 29 January 2016. The loan has therefore been reflected in Creditors: Amounts due

within one year above, and the subsequent repayments have been described in Post Ealance Sheet Events (Note 30).

19. Creditors: Amounts falling due after more than one year

This relates to room hire deposits (2k) and a premium on a catering contract of £150k received during 2014/15 being recognised over the period of the contract being

five years from 2014/15 to 2018/19 (E90k falling due after more than one year).

Hiscox Loan

Trade creditors

Amount owed to subsidiary undertaking

Other tax and social security

Other creditors

2015Group£,000

2,000

318

Income received in advance (see note 20)

2014Charity Group Charity

£,000 E,000 £,000

2,000 2,000 2,000

99

Accrua

__________________________________________

98

491 476

Total Creditors: Amounts falling due within one year 3,166

633 *

266

143

62

17

395

59

2,942

99 39

18 17

645 338

63 49

3,316 2,919

Income received in advance (see note 20)

2015

Total Creditors: Amounts falling due after more than one year 92

GroupE,000

92

2014

Charity Group Charity

£,000 £,000 £,000

.-

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Science Lives Here

Trustees Report and Financi& Statements for the year ended 30 September 2015

20. Income received in advance

Balance as at Income received Balance as atIncome released -

30 September in advance 30 September

2014in the year

during the year 2015

£,000 £,000 £,000 .. C,000

Charity ‘s” —

Grant income 151 (126) 149 174

Subscnption income 107 (107) 112 112

Events income 1 (1) 8 /... B

Sponsored income 176 (176) 50 50

Advanced Rental & Service Charge 3 (3) 50 50

Total charity 438 (413) 369 394

lIed 207(205)329

Group -645 (618) 698 725

• Grant Income: Payment of grant received in advance and monies not spent are carried forward.

• Subscription Income: Payment of subscriptions by members is apportioned equally over the period of membership. The unapportioned amounts at the

yearend are carried forward.

• Events Income: Monies received in advanced for events to be held at the Ri between October and September 2015.

• Sponsored Income: This is income received from L’Oreal UK Ltd. who support the running of the Young Scientist Centre and Hiscox PLC who assisted in

the running of public events at the Ri throughout the year.

• Advanced Rental & Service Charge: Rent and service charge paid in advance by one of the tenants occupying the fourth floor.

• RiG8 Limited: This is income received in respect to room hire deposits (for 50°h of the room hire by outside parties for functions to be held after 30

September 2015) and a premium for a catering contract received of £150k being recognised over the period of the contract being five years from 2014/1E

to 2018/19. Of these amounts, £92k will fall due after more than one year (see note 19).

-

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D The Royal InstitutioniI Science Lives Here

Trustees’ Report and FinancaI Statements for the year ended 30 September 2015

Permanent FundsThe Gillespie Trust Is to encourage an Interest in, and knowledge of, physics.

Dr Ludwig Mond’s Endowment was given for the maintenance of 20 Albemarle Street, which also formed part of his Endowment.

The Philip Freer Studentships Fund provides help to students of science research and the history of science at The Royal Institution of Great Britain. As per trust deed, 90% of original

capital value cannot be depleted and, as such, is treated as Permanent Endowment.

Expendable FundsThe Philip Freer Studentships Fund provides funds to help students of science research or the history of science at The Royal Institution of Great Britain. As per trust deed, 10% of the

fund Is shown as Expendable, acting as a bursary, covering expenses incurred by the selected student In the course of their studies.

The Building preservation fund Is to be used to maintain the lecture theatre.

The British Aerospace Educational Endowment is to be used to encourage young peoples’ Interest in science.

The Clothworkers’ Endowment supports technical staff In the Preparation Laboratory.

The Clothworkers’ Masterclasses Endowment is to be used for Secondary Mathematics Masterciasses.

The Royal Institution Research Endowment provides funds to help with research at The Royal Institution of Great Britain.

The Causeway Endowment has been given to match funding for the Enhancement & Enrichment programme designed to provide grants to teachers working In disadvantaged areas

The Old Broad Street Charity Trust fund provides funds to send young scientists to the Australian Science Festival.

The Victoria Woodhull Endowment provides funds to further knowledge of genetics.0 The Ri is in discussion with the Charity Commission to review the objects of these funds to reflect the modern day equivalent application.

InvestmentManagement

Fee(Outgoing)

£,000

TransfersBetween

Funds

OtherRecognised

Gains

,000 £,000

Balance As At30 September

2015

21. Endowment funds

Balance AsAt 1 October

2014 Incoming

Group and Charity £,000 £,000

________

Permanent Endowment Funds:

______- - --

Gillespie Trust fund 795 --

________

776

Dr Ludwig Mond’s fund

____

--

464

Philip Freer Studentships Fund 1,246 - - (19) - (16) 1,211

Total Permanent Endowment Funds 2,509 - - (30) - (28) - 2,451

Expendable Endowment Funds:

____________________

Philip Freer Studentships Fund - - - (2)

________________________ __________ _______________________________________

(1) 239

__________ ________________________________________________________

(2) 386

E,000 . .- £,000

109 (2)

1,673

Building Preservation fund 88 - - (1)

British Aerospace_Educational fund 241 - - (1)

Clothworkers’ Endowment fund 412 - (22) (2)

Clothworkers’ Masterclasses fund -

The Royal Institution Research fund 337 -

Cau5eway Endowment 500 -

Old Broad Street Charity Trust fund* 590 - - (2)

Victoria Woodhull Endowment fund* 614 - (2)

(56) (7)

(50)

(1)

Total Expendable Endowment Funds

Total Endowment Funds

(8)

4,564

(1)

1,602

335

-

—;

—-----

- (2) - 586

- (3) f:: s 609

- (19) ‘-- 4,381

7,073 - (128) (48) (18) (47) . 6,832

(128) (18)

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Science Lives Here


22. Restricted income funds

Investment Transfers Other

Balance As At 1 Pool Management Between Recognised

October 2014 Incoming income (Outgoing) Fees Funds Gains

Group and Charity £,000 £,000 £,000 £,000 £,000 £,000 £,000

______

Davy Faraday Researchlaboratory fund - 2 - (2) - - -

Bragg Lecture fund 12

American Friends fund 28 -

Barclays Creative fund 9 - - - - - - .5.—-,-——-———-—--,---—————-———____

6Webcast grants_fund

Maths set-up fund 34 1 - - - -

Christmas lectures fund - 121 - (74) - (47)

Young Scientist Centre fund 1 102 - (113) - 10

Ri Online - 22 - (12) - (3)

Permanent Endowment

zL (13) - - -

Expendable Endowment-Income 110 -

Ternality Trust 62 -

Maths Fund - Primary - 29 - (35)

Maths Fund - Secondary -

Maths Fund - Engineering - 82 -

John Lyon’s Charity Grant (1) 5 - (3) - (1)

Educational Funds 113 5 1 - (1) (5) -

96 - 1 - - - f1).

The Bragg Lecture fund supports a biennial series of lectures at various locations.

American Friends was set up to enable American citizens to donate to The Royal Institution tax efficiently from the USA.

The Barclays Creative fund is used for supporting the transport costs of bringing schools from less privileged areas of London to the Ri’s Science Events for Schools programme.

The Webcast grant has been used to create webcasting facilities to broadcast school5 lectures to UK schools and colleges.

The Honeybourne legacy is to be used for research in The Davy Faraday Laboratory as the Director of the Laboratory sees fit.

The Maths set up fund is a fund established to maintain, expand and improve mathematics programmes at the Royal Institution.

The Christmas Lectures fund Is used for supporting the production of the CHRISTMAS LECTURES and associated educationai learning materials.

The Young Scientist Centre is a bespoke laboratory with state of the aft facilities providing hands on experimental opportunities for students.

The RI Online fund from Microsoft Research Is used to support the initiai set up of an online science channel.

The Permanent Endowment-Income fund is the investment income arising from the permanent endowment funds.

The Expendable Endowment-Income fund is the investment income arising from the expendable endowment funds.

The Ternality Trust fund has been given to improve the support services and overall efficiency of the RI.

The Maths Fund — Primary fund is to support primary mathematics masterclass groups around the UK providing extracurricular mathematics for gifted and talented children

The Maths Fund — Secondary fund is to support secondary mathematics masterciass groups around the UK providing extracurricular mathematics for gifted and talented children

The Maths Fund — Engineering to organise and run engineering masterclasses in London for gifted and talented students

The John Lyon’s Charity Grant is provided to manage, develop and expand the Ri’s Young Peoples Programme in the Charity’s beneficial area,

The Educational Funds consist of the Davenahall Bequest, Acton and Neate funds transferred from Permanent Endowments to Restricted as part of the modernisation proposal set out

by the trustees.

(1)

Balance As A30 Septembe

201

33 (34)

3

13

(1) 40 (38)

6

(56)

10

Research Funds

Enrichment & EnhancementGrant .

(1)

- (1)

(26)

Sponsored events 2

Conservation work grants B

(43)

ExpeRimental - 29 (30)

Philip Freer Studentships -,

Income 33 - 41 (32)

Total Restricted Income

Funds .625 498 (494)

(8)

-

__

(2) - :. -.

1

- (8)

(1) (82) (1)

- Page3S

D The RoyaL InstitutionRI Science Lives Here

Trustees’ Report and FinancaI Statements for the year ended 30 September 2015

22 Restricted income funds (continued)

The Research Funds consists of the Fullerian Accumulated, Professorship of Chemistry and Professorship of Physiology transferred from Permanent Endowments to Restricted as part of

the modernisation proposal set out by the trustees.Enrichment & Enhancement grant is designed to provide grants to teachers working in disadvantaged areasThe Philip Freer Studentships Fund provides funds to help students of science research or the history of science at The Royal Institution of Great Britain

E,000 £,000 £,000

_______

(2) 1,196 (43) (2,560)

- (1,196) -

(2) - 30

General fund (2,286) 1,352 5 (2,812)

Non charitabletrading funds 6 1,562 - (372)

UnrestrictedFund Total (2,280) 2,914 5 (3,184)

Designatedfunds:ChristmasSursary fund

Tangible fixedassets fund

Heritage assets

TotaldesignatedfundsTotalUnrestrictedIncome FundsExcludingPensionReserve

The General fund is unrestricted funds not held or designated for other purposes and used for the general work of the Ri. The reserves policy on free reserves

refers to this fund.The non-charitable trading fund represents the net assets/(liabilities) of the trading subsidiary, RiGO Limited.

The Christmas Bursar-y designated fund is to enable underprivileged children from outside London to attend the CHRISTMAS LECTURES.

The Library fund is invested to provide annual contributions to conservation costs of the library collection.

The Life Membership fund is life membership fees invested to give an annual return to membership income.

The Tangible fixed assets fund is a designated fund set aside to reflect the fact that these amounts are tied up in assets used by the charity to undertake itscharitable activities and which are therefore not available for use on other purposes.

The Heritage Assets fund represents the value of the extensive heritage collection, held by the Ri, relating to its history and to those scientific and other

figures who have researched, lectured and lived in the building. These can be categorised into Printed works, Archives, Images, Scientific apparatus &

instruments, Furniture, silver, clocks and watches.

The pension reserve represents the pension’s liability relating to the defined benefit pensions scheme.

23. Unrestricted income funds

BalanceAs At 1

October Pool2014 Incoming Income (Outgoing)

InvestmentManagement

FeeConsolidatedAdjustment

£,000 £,000

TransfersBetween

Funds

OtherRecognised

Gains

Balance AsAt 30

September2015

£,000 £,000 £,000

3D

25 - - (1) - - - -

Library fund 235 - - - (1) - (30) (1)

Life Membershipfund — 187 (1) (1)

(43) (2,560)

—

24

203

185

20,119 - - - - - - -

fund 5,290 - - - - - - -

20,119

5,290

TotalUnrestrictedIncome Funds

25,856 - - (1) (2) - (30) (2) 25,821

23,576 2,914 5 (3,185) (4) - (45) 23,261

Pension reserve (533) - - - - 100 - (433)

23,043 2,914 5 (3,185) (4) - 100 (45) 22,828

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Science Lives Here

Trustees’ Report and Financiai Statements for the year ended 30 September 2015

24. Analysis of net assets between funds

Use of fundsIn previous years Restricted Funds amounting to £3.2m were used for the refurbishment of 21 Albemarle Street. The Ri raised the matter with the Charity

Commission, seeking the Commission’s advice and guidance. In 2009, the Ri made a commitment to the Charity Commission to replenish the amounts of

endowments and restricted funds invested in the refurbishment and to rebuild its reserves as follows:

• Priority 1: To replenish a total of £2.lm of endowment and restricted funds invested in the refurbishment within a 15 year timeframe; and

• Priority 2: To replenish a total of film in its reserves within a 15 year timeframe.

The Charity Commission noted that these endowment and restricted funds have been applied to secure the long-term success of the charity and the

Trustees have made an undertaking to replenish these funds. The Trustees are still in contact with the Charity Commission on the progress of the

replenishment programme and the possible broadening of the terms of certain of the endowment and restricted funds to give Ri more flexibility in

delivering its charitable objects in the future. It has been agreed with the Charity Commission that £2.lm of these funds will be repaid into endowed /restricted funds, as the remaining film became expendable for use at the trustees’ discretion since 2010. Whilst a deficit remains on the general fund, no

replenishment of the endowment and restricted funds has yet taken place. The repayment is due to be completed by 30 September 2025.

25. Reconciliation of net movement in funds to net cash flow from operating activities

Net movement in funds

Investment income

Net losses/(gains) on investment assets

Depreciation

Decrease in debtors

Decrease in creditors

(Decrease)/increase in pension liability

Net cash (outflow)/inflow from operating activities

2015 2014

_______

£,000 £,000

(439) 149

i(107) (119)

________

—

______

55—-------

87 80

11 295

(60) (25)

(100) 58

41, (553) 338

Tangible HeritageAssets Assets

£,000 £,000

Net Current Long TermInvestments Liabilities Liabilities

£,000 £,000£,000

Expendable endowment 4,383

Endowment Funds - -. -

Permanent endowment - - 2,456 (5) - - 2,451

Total Endowment Funds - 6,839

Pension -

Liability TotaI

£,000 • £,000

Total Restricted Income Funds - 212

(2)

(7)

430

Unrestricted Income Funds

General fund 2,431 10 (3,056) (1,945) - - (2,560)

4,381

6,832

642

(92)Non charitable trading funds 65 - - 27

Designated Funds

Fixed Assets 20 119 5 290 25 409

Other - - 388 24 - - 412

Total Designated Funds 20,119 5,290 388 24 - - 25,821

Pension reserve - - - - - (433) ‘ (433)

Total Funds 22,615 5,300 4,383 (1,471) (92) (433) 30,302

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Cash Movement

Cash at bank and in hand

Balance at 1Cash Flows

October 2014

27. Pension commitments

The charity operates three staff pension schemes.

The first scheme, The Royal Institution of Great Britain Pension and Life Assurance Scheme (1977), is a final salary pension scheme that was closed and

ceased to accrue benefits on 30 September 2007. The assets of the scheme are held separately from those of the charity, part being invested with an

insurance company and with effect from 1 October 2007, a second and better yielding investment vehicle has been established to cover the balance of

liabilities of the now closed scheme.

Being a final salary scheme, this is accounted for as a defined benefit pension scheme for the purposes of Financial Reporting Standard 17: Retirement

Benefits. The scheme’s liabilities are assessed by a qualified actuary and the last full actuarial valuation was carried out at 1 October 2010. The scheme

currently has nine pensioners and nine deferred members.

The second scheme is a stakeholder pension scheme where the Ri makes contributions, but has no liabilities from a financial performance point of view. The

assets of the scheme are held separately from those of the charity, being invested with an insurance company. This scheme is accounted for as a defined

contribution scheme under Financial Reporting Standard 17: Retirement Benefits. The amount charged to the statement of financial activities in respect of

pension costs is the total contributions payable for the year. There are currently nineteen members in this scheme.

The third scheme is a multi-employer defined benefit pension scheme known as the Universities Superannuation Scheme into which the Ri makes

contributions for scientific and academic staff. This is a centralised scheme with the assets held in a separate fund independently administered by the Trustee

company, USS Limited. The charity is unable to identify its share of the underlying assets and liabilities of the scheme, and therefore, this scheme is

accounted for as if it were a defined contribution scheme under Financial Reporting Standard 17: Retirement Benefits. The amount charged to the statement

of financial activities in respect of pension costs is the total contributions payable for the year.

The Royal Institution of Great Britain Pension and Life Assurance Scheme (1977)

Major actuarial assumptions used in the full valuation at 1 October 2013:

Rate of increase in salaries 6.00%

Rate of increase in pensions in payment 3.80%

Rate of increase of existing assets and future contributions 7.00%

Pensions at retirement bought using annuity rates consistent with a long-term interest rate of: 5.00%

Inflation assumption 3.3O%

General increases in earnings will be at

Active members GMP will be revalued at

The employer’s pension charge for the year was p120k (2014: p130k).

5.00%

5.00%

26 Analysis of net debt

£,000 E,000

talance at 30September

2015

£,000

1,302

Bank overdrafts - - -

-

Increase in Cash 1,842 (540)

Analysis of debt

1,842

Debt due within one year (shown under current liabilities note 19) (2,000)

1,302

Debt due after more than one year

(2,000) - (2,000)

Net debt (158) (540) (698)

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I D The Royal Institution

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Science Lives Here


27. Pension commitments (continued)

The Royal Institution of Great Britain Pension and Life Assurance Scheme (1977) (continued)

The full scheme valuation undertaken as at 1 October 2013 has been updated to 30 September 2015 by the scheme actuary Mr K O’Donnell of Cartwright

Group Limited. The underlying mortality assumption for both years is that based upon the standard table known as PA92 on a year of birth usage with

medium cohort future improvement factors. The other principle actuarial assumptions at the balance sheet date (expressed as weighted averages) were as

follows:

2015 2014

3.60% 3.80°h

5.90% 6.50%

3.10% 3.30°h

3.90% 4.00%

2015 2014

The amounts recognised in the balance sheet are as follows: £,000 £,000

Present value of scheme liabilities (1,871) (1,825)

Fair value of schemeassets

____________________________ _______

1,438 1,292

DeFicit in the scheme and net pension liability

_________________

(433) (533)

The amounts recognised as resources expended in the statement of financial activities for the year are as follows: £,000 £,000

Interest on scheme liabilities 69 67

Expected return on scheme assets (88) (75)

Total

_______

(19) (8)

Actual return on scheme assets 26 - 84

Discount Rate

Expected long term rate of return on scheme assets

Inflation assumption

Pension increases

Page 39

D The RoyaL InstitutionII Science Lives Here

fr Trustees’ Report and Financial Statements for the year ended 30 September 2015


2015 2014

Changes in the present value of the scheme liab!lities for the year are as follows:

__________________________

£,000 £,000

Present value of scheme liabilities at 1 October

_______ ___________ _________________________________

1,825 1,563

Inte rest on scheme ha bilities -

__________________ ________ ___________________________________

69 67

Actuarial (gains) I losses

________ ____________________________

(23) _5

Present v&ue of scheme habWbes at 30 September

______________

1 871_

Changes in the fair value of the scheme assets for the year are as follows:

Fair value of scheme assets at 1 October

_________________________________________

1,292 1,088

Expected return on scheme assets 88 75

Contributions paid by the employer

____________

120 120

Actuarial c’9!LL’1._____

______ _____________

‘(62) 9

Fair value of scheme assets at 30 September 1,438 1,292

The current agreed employer contributions for the forthcoming year are LiOk per month but will be subject to review at future actuarial valuation dates.

The major categories of scheme assets as a percentage of total scheme assets at the balance sheet date are as follows:

2015 2014

Equities and property

_______ ________

‘‘ 95% 99%

Bonds

_____________________

5% 1%

100% 100%

The expected long-term rate of return on scheme assets has been calculated based upon the major asset categories shown above and expected rates of

return as follows:

, 2015 2014

Equities and property

_______________________________

6.00% 6.50%

Bonds 3.60°/a 3.80%

Cash

___

-050% 050%

The amounts recognised as other recognised gains and losses in the statement of financial activities for the year are as follows:

2015 2014

_______ _______ ___________________________________ _________ _______

£,000 £,000

Actual return less expected_return on scheme assets (6249

Experience gais and losses arising on scheme habhities t4 60 (9)

Changes in assumptions underlying the present value of scheme liabilities

_____________ ______________________

(37) (186)

Actuarial loss on defined benefit pension schemes r. (39) (186)

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Science Lives Here



The cumulative amounts of actuarial gains and losses recognised as other recognised gains and losses in the statement of financial activities for the year

are as follows:

2015 2014

_______ _______ ______

£,000 £,000

Cumulative actuarial loss at 1 October (1,237) (1,051)

Recognised during the year 1i (39) (186)

Cumulative actuarial loss at 30 September “ (1,276) (1,237)

The movement in the scheme deficit during the year was as follows -

_____________________________________________

Scheme deficit at 1 October

_______ ____________________

(533) (475)

Amounts recognised as resources expended 19 8

Contributns paid by the employer , 120 120

Actuarial loss

___________

(39) (186)

Scheme deficit at 30 September iL: (433) (533)

The key figures applicable to the scheme for the current and previous four accounting periods are as follows:

2015 2014 2013 2012 2011

£,000 £,000 £,000 £,000 £,000

Present value of scheme liabilities

________

(1,871) (1,825) (1,563) (1,440) (1,097)

Fair value of scheme assets

________ ________ _______________

1,438 1,292 1,088 816 584

Deficit in the scheme (433) (533) (475) (624) (513)

Actual return less expected return on scheme assets :; (62) 9 95 68 (71)

Experience gains and losses on scheme liabilities : . 60 (9) (7) (27) (2)

Changes in assumptions underlying the present value of scheme liabilities ‘.:. , (37) (186) (58) — (261) 21

Universities Superannuation Scheme:

Employers’ contributions are currently payable at a rate of 16°h of pensionable earnings. Employees’ contributions were equivalently 7.5°h.

The Universities Superannuation Scheme is valued formally every three years by the scheme actuary, who is currently Mr E S Topper of Mercer Limited.

The 2014 valuation has recently been finalised and the audit is in progress. Therefore the latest available valuation was carried out as at 31 March 2011

using normal actuarial principles, and the projected unit method in particular. The 2014 valuation indicates that employer contributions will increase to lB/c

from 1 April 2016. The following key financial actuarial assumptions were used in the 31 March 2011 valuation:

Investment return - past service 4.4°h per annum

Investment return - future service 6.1% per annum

Pensionable salary increases 4.3% per annum

Pension increases 3.3% per annum

Price inflation (long-term) 3.6% per annum

The actuarial valuation applies to the scheme as a whole and does not identify surpluses or deficits applicable to individual participating employers. As at 31

March 2011, the fair value of the scheme’s assets was £32.4bn and the estimated present value of the scheme’s liabilities was £35.3bn resulting in a

scheme shortfall of E2.9bn.

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Science Lives Here

Trustees’ Report and FinanciaJ Statements for the year ended 30 September 2015

28. Other financial commitments

At 30 September 2015, the charity was committed to making the following payments under non-cancellable operating leases in the year to 30

September 2016 in relation to equipment:2015 2014

_______

£,000 ,000

Operating leases which expire:

Within 1 year50

Within 2 to 5 years

________

1 1

- Total other financial cornmftments1

29. Rents receivable and related party transactions

The Ri has space available in its building which is surplus to requirements and in order to utilise its assets to the maximum benefit of the organisation these

rooms are let to organisations independent of the Ri.

No related party transactions took place during this period.

The charity has taken advantage of the exception in Financial Reporting Standard Number 8 from the requirement to disclose transactions with group

companies on the grounds that consolidated financial statements are prepared by the ultimate controlling party.

30. Post Balance Sheet Events and Other Matters

On 4 November 2015, HSBC Bank PLC confirmed the renewal of the Elm overdraft facility for the next 11 months.

On 13 November 2015, E1.5m (plus VAT of E300k) was received as payment of a premium for the lease of part of 21 Albemarle Street, London. This lease

was signed on 14 October 2015 and the lease term is due to commence on 1 April 2016 from which date rent, initially £242k per annum payable quarterly

in advance, is payable and subject to rent reviews to market rates every five years. The lease expires 20 years after possession is given on 1 April 2016.

The lease premium will be amortised over 20 years from 1 April 2016.

On 30 November 2015, £1.5m was repaid to Hiscox in respect to their loan to the Ri of £2.Om. The remaining E0.5m of the loan was repaid to Hiscox on

29 January 2016. From this date to the date these accounts were signed, the Ri had no debt.

On 1 December 2015, heritage assets valued at £582k were sold at an auction run by Christies for £974k. The proceeds of this sale were received in

January 2016 and a profit on disposal of E385k will be recognised in the 30 September 2016 financial statements.

..-.

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