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Annual Report and Accounts

The Physiological Society

for the year ended 31 December 2008

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Financial review

Activities

Charitable objects

Review of the year

Treasurer’s statement

Governance

Balance sheet

Independent auditor’s report

Standing information

Cash flow statement

Statement of financial activities

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This is the Trustees’ Annual Report and Accounts for the year ended 31 December 2008 for The Physiological Society. In preparing this report the Trustees have complied with the Charities Act 1993, the Accounting and Reporting by Charities: Statement of Recommended Practice (Revised 2005) (’SORP’) applicable accounting standards, and also the Companies Act 1985.

The Physiological Society was incorporated by guarantee on 27 January 1937 under number 323575. It has no share capital and is registered with the Charity Commission for England and Wales under number 211585. The liability of each Member is limited to £1.

The governing document is the Memorandum and Articles of Association of the Company and the members of the Council of Trustees are the Directors of the Company.

Annual Report and Accounts for the year ended 31 December 2008

Physiology is the science of how humans and other animals function in an integrated way and is the basis for many biological and clinical sciences.

The Physiological Society was founded in 1876 and is a learned society with over 2,600 Members (including 14 Nobel Laureates) and Affiliates (early career scientists) drawn from 60 countries. The majority of Members are engaged in research, in universities or industry.

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The Society runs a variety of scientific meetings for physiologists to share information and discuss new discoveries. In 2008 we held our Main Meeting in Cambridge and introduced smaller Themed Meetings throughout the year, which have proved popular. Our international focus was on China where we held a Joint International Meeting with the Chinese, American, Canadian and Australian societies in Beijing, and an International Workshop in Shanghai.

We continued our series of public workshops focusing on the contribution of physiology to health and wellbeing with a Fit4Life day at Essex University, attended by over 250 school children and adults.

We are continuing to build and widen our membership base, which increased by 5% over the year. We have been particularly successful at recruiting undergraduates through targeted

Review of the year

The Physiological Society supports physiology education and research, which ultimately benefit the health of the population and facilitate the prevention and treatment of disease.

A major activity of The Society is publishing high quality research papers and reviews to disseminate advances in scientific knowledge. Our two journals are highly regarded by the scientific community and both have increased their impact factors and rankings in 2008.

Experimental Physiology celebrated its centenary and has moved to monthly online publication in recognition of the increase in quality and quantity of papers submitted. Both journals give immediate free public access to review articles and free access to all content one year after publication. Institutions in designated developing countries are granted immediate free access to all content.

I am happy to report that 2008 was another successful year for The Physiological Society. This annual report illustrates the wide range of charitable activities with which The Society supports its Members and physiologists around the world.

Despite the current financial climate, the commercial performance of our journal publications allows us to carry out our many activities.

I would like to thank the Trustees for their hard work throughout the year, in particular Graham McGeown who will be standing down as Honorary Treasurer in July 2009.

I would also like to thank our staff in the London and Cambridge offices, on whose expertise and professionalism we are reliant. I hope you enjoy reading this report and I encourage your comments and feedback.

Clive Orchard, President

Review of the year

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curriculum that will help medical schools to reverse this trend.

Our income in 2008 was £3.4 million, a small (4%) increase from last year. Expenditure reflected our charitable objects with publications, scientific events, membership services and education accounting for 90%. Our free reserves fell by nearly £2 million, due to the adverse market conditions and were about £8.9 million at the end of 2008.

A significant event in 2008 was the signing of a new contract with Wiley-Blackwell, the publisher of our journals. This guarantees a minimum income for a number of years. It will allow better financial planning than has been previously feasible, which is welcome in the current turbulent economic climate.

In 2008 our governance and management structure was clarified by combining the role of President and Chair of the Executive Committee. A Finance Committee was introduced which includes external members with business and finance experience. Their suggestions have been very valuable in planning our financial policies.

campaigns. All of our Members benefit from reduced cost or free access to our meetings and publications and can apply for a variety of grants to support attendance at scientific meetings, vacation research projects and seminar schemes.

The Society aims to inspire the next generation of physiologists by supporting education in schools, universities and research institutes, by providing resources, practical training courses and careers advice. Highlights this year were a teaching symposium and a feasibility project to investigate the potential of Philter, an online teaching resource for physiologists.

Where appropriate, we work with other learned societies to organise career fairs, techniques workshops and to contribute to a web-based resource of practical projects for schools. We encourage and support young physiologists to organise their own scientific meetings, of which two were held in 2008.

The Society has concerns about the lack of training in physiological principles for medical students and has been working with the British Pharmacological Society to develop a core

Review of the year

Where our money came from (£3.4m)

Publications 79%

Investment income 12%

Other income 1%

Events and education 4%

Membership subscriptions 4%

Publications 50%

Events 21%

Education 8%

Governance 6%

Membership services 10%

External relations 4%

Investmentfees 1%

Where our money has gone (£3.0m)

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Review of the year

I hope that all Members will have been impressed by the new Society website which went live this year. It has received plaudits from other learned societies for its impact and functionality. Over 95% of membership applications, renewals, events registration and grant applications are now made through the site, resulting in reduced administration and faster response times.

In 2009 we plan to continue to build on our range of charitable activities and to be more cost-effective in our operations. Both our journals will be seeking to increase the quality of papers they publish with resulting increases in impact factor and status. An Editor-in-Chief elect will be appointed for The Journal of Physiology to take over from the current Editor-in-Chief, who stands down in 2010.

The major initiative in education will be the launch of Philter, and we will also update our popular publication for schools, Understanding Life. Outreach events for schools and the public will continue with a series of events on neuroscience with Bristol University and the Science Centre Explore-At-Bristol during Brain Awareness Week.

Where we have common aims, we will continue to work with other learned societies, for example by holding joint meetings on

Integrative Physiology and Pharmacology and on the 3Rs (reduction, replacement and refi nement in animal experimentation). We have been supporters of the Biosciences Federation and we are in favour of its merger with the Institute of Biology to provide a stronger voice for UK biology with government.

Our drive to expand membership will continue in 2009, particularly at undergraduate level and by encouraging Affi liates to convert to full membership. An important new initiative to support our women Members will be the launch of a mentoring scheme and sponsorship of a Daphne Jackson research fellowship to enable a female Member to return to research after a career break.

Our Main Meeting will be in Dublin and, as well as running Themed Meetings, we will sponsor a UK based International Workshop and launch three new international grant schemes.

Despite the current adverse economic climate and a fall in our reserves, The Society is in a strong fi nancial position and will develop a fi ve year business plan in 2009 to ensure the continued ability to achieve its charitable objectives in years to come.

Mike Collis, Chief Executive

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Review of the year

Plenary Lecture in BeijingDenis Noble (University of Oxford)

Annual Review Prize Lecture *Robert G Edwards (University of Cambridge)

Biller Prize Lecture **Gavin Stewart (University College Dublin, RoI)

Hodgkin-Huxley-Katz Prize Lecture ** Eric Kandel (Columbia University, USA)

GL Brown Prize Lecture ** Mark Boyett (University of Manchester)

* not delivered owing to ill-health** awarded in 2008, will take place in 2009

The Physiological Society Public LecturePeter Weissberg (BHF Medical Director)

Joan Mott Prize LectureAbigail L Fowden (University of Cambridge)

Sharpey-Schafer Prize LectureWalter F Boron (Case Western Reserve University, USA)

Wellcome Prize LectureAndrew Trafford (University of Manchester)

Paton Prize LectureMike Spyer (University College London)

UK/Australian Visiting LectureshipColin Sibley (University of Manchester)

The Physiological Society awards a number of Prize Lectures each year.

The Lectureships have been instituted at various times in The Society’s history, and many owe their existence to the generosity of donors.

Prize Lectures play an important role in The Society’s commitment to advancing and promoting the physiological sciences.

Prize and Plenary Lectures awarded in 2008

Scientifi c Meetings in 2008Themed Meeting: Cardiac & Respiratory Physiology 17–19 March, University of Leeds

Main Meeting: Physiology 2008 14–16 July, University of Cambridge

Themed Meeting: Metabolism & Endocrinology 9–11 September, University of Oxford

Joint International Meeting 19–22 October, Beijing, China

Themed Meeting: Vascular & Smooth Muscle Physiology 5–6 December, King’s College London

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The Society’s charitable objects are:

‘To promote, for the benefit of the public, the advancement of physiology, and facilitate the intercourse of physiologists both at home and abroad, and thereby contribute to the progress and understanding of biomedical and related sciences and the detection, prevention and treatment of disease, disability and malfunction of physical processes in all forms of life.’

The Society’s main strategic objectives are:

• To support physiological research through publications and scientific meetings• To support education in physiology• To communicate the importance of physiology• To support our membership and maintain our operations

Through our activities, which support physiology education and research, The Society’s work benefits the health of the population and facilitates the prevention and treatment of disease.

Charitable objects

Charitable objects and activities

Undergraduate Associates create the world’s longest DNA model during National Science & Engineering Week

Dinner at Queens’ College during Physiology 2008

Paralympian Anne Wafula Strike addresses schoolchildren at the Fit4Life event

Posters at the Leeds Themed Meeting

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Activities

Membership

The Society aims to build, maintain and support a community of physiologists that continue to ‘advance the science of life’. In 2008 we continued to increase the number of Members – specifically within the undergraduate category, which increased from 64 to 167.

It is important that we strive not only to increase numbers but also to increase the feeling of community amongst our Members and ensure commitment is rewarded. In 2008 we introduced a questionnaire to new Members asking what The Society is doing right and what could be improved. Responses showed that Members particularly value Physiology News and the new website.

With the aid of the website, we have also been able to address issues raised by some Members. For example, we now process travel grants on a monthly basis and have reduced the processing time for new membership applications.

The Society wishes to encourage undergraduates to stay within the discipline and to support career development. In 2008 we introduced an undergraduate handbook and made travel grant funding available for those attending the Life Science Careers Conference.

We will continue our commitment to improving the benefits of membership into 2009. Travel grant funding will increase to £700 per year for Ordinary Members and £500 per year for Affiliates; our Undergraduates will be eligible to claim up to £100 per year.

We aim to continue increasing the number and diversity of our membership. We have begun a more active recruitment drive with visits

to King’s College London, University College Dublin, Trinity College Dublin and the Royal College of Surgeons in Ireland.

Our total membership rose by 5% throughout 2008 and we hope to continue this trend, with a focus on both the Associate and Undergraduate category. We will also be seeking to improve membership progression and retention, ensuring, for example, a greater number of Affiliates progress to Ordinary or Associate membership.

In 2009 The Society will set up a new mentoring scheme for women Members who are in the final stages of studying for a PhD or who already have PhDs and are in the process of establishing their career in academia or industry.

The Society will also co-sponsor a 2-year Daphne Jackson Trust fellowship to support a Member who wishes to retrain and return to research after a career break. Daphne Jackson fellows are usually at the PhD level and the majority are women, although men can also apply.

Key achievements in 2008• Increase in membership levels, especially

at undergraduate level• Implementation of a one month deadline

for travel grants

Key goals for 2009• Increase membership by 5% with a focus

on Associates• Improve membership progression,

especially for Affiliates• Develop undergraduate benefits and

encourage participation in meetings• Establish mentoring scheme for women

Members

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Activities

Publications

The Society publishes original scientific literature online and in print in its two highly regarded journals, The Journal of Physiology and Experimental Physiology, through our publisher Wiley-Blackwell. The journals are also published online on HighWire Press. The Society publishes a Members’ quarterly magazine, Physiology News, and the proceedings of Society meetings, and is developing its publishing outlets through the Publications Committee.

The Journal of Physiology

In 2008 The Journal of Physiology continued to attract submissions and readers by maintaining a competitive time to first report, publishing high quality research papers in all areas of physiology as well as invited articles in new and exciting areas. 24 issues of The Journal were published containing Research Papers, Rapid Reports, Topical Reviews, Symposium Reports, Perspectives, Journal Club reviews, Letters to the Editor and Editorials, and two new article types – Techniques in Physiology and Clinical Perspectives.

The impact factor, a measure for ranking journals according to the number of times their articles are cited in later publications, increased to 4.58, and The Journal moved from 10th to 6th in the physiology list. The half life of articles remained high at 9.2 years.

Six symposia were sponsored at international meetings in the USA, Europe and China to promote The Journal. An Olympics Special Issue on Exercise Physiology and Human Performance was published in January. Following widespread publicity, the issue received record online readership. A Journal Editor and the Chair of the Publications Committee took part in a publishing workshop

in China aimed at helping Chinese scientists publish in Western journals.

In the coming year, the number of Clinical Perspectives will be increased in light of a high level of interest in the articles. It is hoped to further improve the impact factor by maintaining fast review times and a rigorous review process for original research papers and continuing to commission state-of-the art reviews by leaders in the field. Emphasis will also be placed on improving the visibility of The Journal and promoting physiology through press releases and lay summaries.

Experimental Physiology

In 2008 Experimental Physiology celebrated its centenary and started publishing monthly online while remaining bi-monthly in print. The January issue contained an updated history of the journal and a series of Historical Perspective articles were published throughout the year. The journal cover and marketing material were centenary branded. Celebratory events included centenary dinners for past Chairmen and the current Editorial Board, a journal-sponsored Festschrift for K Michael Spyer at The Society’s Themed meeting in Leeds and a sponsored symposium at The Society’s Main Meeting in Cambridge. The journal and its centenary were promoted at a number of scientific meetings.

The impact factor rose again from 2.339 to 3.014 and the journal moved from 33rd to 28th place in the physiology list. The 40% increase in submissions seen in 2007 was maintained, as were the strict triage policy and increased rejection rate.

Twelve online and six printed issues were published including Research papers,

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Activities

Viewpoints, Lectures, Review Articles, Hot Topics, Translational Reviews, Symposium Reports and one Themed issue on ACE2 and (pro)Renin Receptor.

In 2009 the page allocation will increase from 1,000 to 1,200 pages. An Early Author Prize will be introduced. Content will include a Themed issue on The Cardiac Physiome, and an Exchange of Views on the control of blood pressure will be published.

Physiology News

In its 25th anniversary year, The Society’s quarterly magazine continued to provide Members with a diverse range of articles and news as part of the membership benefi ts. 2008 has also seen an enhanced web presence for Physiology News, with archives from the fi rst Society Newsletter in 1984 now online.

Proceedings of The Physiological Society

In 2008, over 450 general abstracts and 133 symposium abstracts from meetings held in Leeds, Cambridge, Oxford and London

were published as part of Proc Physiol Soc. Proceedings abstracts are currently created using the ScholarOne system. In 2008 we made improvements in the effi ciency in our workfl ow, taking the correction of abstracts in-house and improving the online publication time.

Key achievements in 2008• Rises in impact factor and ranking in ISI’s

Physiology category for both journals• Experimental Physiology now published

monthly online

Key goals for 2009• Journal of Physiology - reduce acceptance

rate to 20% and maintain number of papers triaged without full review to ensure only highest priority papers are published

• Experimental Physiology - maintain rejection in proportion to submissions and page allocation and increase number of papers triaged without full report to ensure only highest priority papers are published

• Further increases to impact factors• Searchable website for Physiology News

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Activities

Our scientific meetings support and promote physiology by facilitating the dissemination and discussion of the latest scientific advances in the field.

The Society’s Main Meeting, Physiology 2008, took place in July at the University of Cambridge. Over 700 participants attended 19 symposia, six plenary lectures, and viewed over 300 free communications.

In 2008 Themed Meetings replaced Focused Meetings. Themed Meetings allow anyone working within the broadest remit of a theme, including PhD students and postdocs, to present original research as an oral communication and/or poster. Themed Meetings are an excellent forum for establishing scientific networks and collaborations as well as learning from each other about new developments in related fields within a scientific theme. The overall aim is to produce a modern, cutting-edge and friendly environment for uninhibited scientific exchange.

The six main themes are Cardiac & Respiratory Physiology, Cellular & Integrative Neuroscience, Epithelia & Membrane Transport, Human & Exercise Physiology, Metabolism & Endocrinology, and Vascular & Smooth Muscle Physiology. There is also a seventh theme to cover cross-thematic concepts, from molecular to integrative, as many physiologists use a variety of approaches in their research programmes.

The Themed Meetings in 2008 proved more popular than the Focused Meetings held in 2007. Total attendance was up from 400 to 450, free communications from 145 to 175.

Internationally, The Society made efforts to forge closer links with Chinese physiologists

at all levels. A Joint International Meeting, in association with the Chinese, American, Canadian, and Australian societies, was held in Beijing and attracted over 600 delegates, including over 50 from the UK. Prior to this, an International Workshop was held in Shanghai involving 40 participants from nine countries.

The Society supported 12 non-Society meetings in 2008. These meetings covered a wide range of topics of interest to our Members and the scheme continues to be popular. A Special Symposium grant of £5k was awarded to the University of Edinburgh to host a Festschrift in honour of John A Russell, to take place in July 2009.

In 2009 we will build on the success of last year and continue to embed our new meeting formats. The Society’s Main Meeting, Physiology 2009, will be held at University College Dublin. Every theme will be represented and the programme will include symposia, prize lectures, free communication and workshops, as well as many social events.

Themed Meetings in Human & Exercise Physiology, Epithelia & Membrane Transport, and Cellular & Integrative Neuroscience will be held at King’s College London, Newcastle University, and Cardiff University, respectively.

The 2009 international focus will be on the USA, with a Joint International Meeting with the Society of General Physiologists, on the topic of Basic Biology and Disease of Muscle, at Woods Hole, Massachusetts. The Society will seek ratification of our bid to host the 2013 IUPS Congress and detailed planning will begin with the establishment of the Scientific Programme Committees.

2009 will also see the first International Workshop to take place within the UK,

Scientific Meetings (Events)

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Activities

at King’s College London. Forty junior physiologists will attend a programme of lectures, poster communications, and hands-on demonstrations, on the topic of Human and Clinical Physiological Techniques.

Key achievements in 2008• Introduction of Themed Meetings with

increased attendance• Successful international events in China

Key goals for 2009• Further increases in attendance and

abstract submission• Confirmation and planning of IUPS 2013• Launch the new UK-based International

Workshop

Physiology 2008: Welcome reception at King’s College Cambridge

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Education

The Society invests significantly in the scientists of tomorrow to ensure continued advances in physiology. Our activities extend from secondary school to the postdoctoral level and focus on the provision of educational and career support. Where appropriate, we work closely with other learned societies to ensure our educational efforts are coordinated and not duplicated.

For example, The Society continues to contribute a speaker to Biology in the Real World, a series of talks held at the annual meeting of the Association for Science Education (ASE). Through supporting this conference, we help teachers and their students understand key physiological concepts.

The Society is concerned about the impact of the reduced amount of practical work undertaken in schools. In 2008 The Society provided sponsorship and contributed physiology-specific content to a new website (www.practicalbiology.com) to help teachers design and run biology practicals in schools. Physiology is a key element of the National Curriculum and we hope that our ongoing contribution to this website will help enrich understanding and enjoyment of the subject.

In 2008 The Society raised the profile of physiology teaching in universities with a number of new initiatives. At Physiology 2008 in Cambridge we ran our first Teaching Symposium along with a teaching workshop and poster session. The interest in the symposium and associated events was excellent and another is planned for 2009.

In 2008, we also started to develop Philter, the Physiologists’ Image Library and Teaching Resource. The concept of an online resource

for teaching material has been well received by the membership and we plan to launch the pilot website in 2009.

For a number of years, The Society has funded or part funded a number of workshops to provide practical experience of key physiological techniques. Workshops include short courses on in vivo physiology/pharmacology, qPCR and microelectrode techniques. In 2008, with input from our Members, we evaluated the courses we currently support and identified potential new areas for funding. We plan to launch a new techniques workshop in 2010.

Providing careers advice is a key element of The Society’s education remit. We provide advice to students at school and university, often through the medium provided by larger organisations such as UCAS. In collaboration with many other learned societies and the Biosciences Federation we organised a bioscience-specific careers event at King’s College London. In 2009, The Society will offer CV workshops to universities across the UK and Ireland.

The Society also provides financial support to help our Members develop their careers. In 2008, we provided 39 Vacation Studentships, supporting undergraduate students with lab-based research during the summer holiday. We also funded two Young Physiologists’ Symposia, giving early stage physiologists at Cambridge and Manchester Universities the opportunity to organise and run their own scientific meetings.

Internationally we continued to provide funding for Junior Fellows in Russia and Ukraine, and our financial support continued to the Centres of Excellence in Belarus, Ukraine and Russia.

Activities

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Activities

The Society believes it is important to encourage the next generation of physiologists and reward them for effort and achievement. In 2008, we awarded 30 undergraduate prizes to outstanding students in physiology.

In 2009, we will continue to provide financial support for Young Physiologists’ Symposia, Vacation Studentships and Undergraduate Prizes. However, we will also be launching a number of new grants including the David Jordan International Teaching Fellowship, International Junior and Senior Research Grants, and a new scheme to support scientific outreach events that communicate the excitement of physiology to young scientists and the wider community.

Key achievements in 2008• Teaching Symposium and workshop

introduced at Physiology 2008• Planning and developing of Philter, ahead

of launch in 2009

Key goals for 2009• Launch a new funding scheme to support

outreach activity to schools • Develop a schools careers leaflet to be

incorporated in an updated version of Understanding Life

• Identify and design new techniques workshop for implementation in 2010

• Launch three new international schemes to promote scientific excellence in physiology worldwide

Networking lunch at the Manchester Young Physiologists’ Symposium 13

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Activities

Fit4Life was attended by over 250 school children and adults

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Activities

External Relations

The Society aims to raise the external profile and promote the interests of physiology to as wide an audience as possible. This involves running events and creating educational and promotional materials for the public, lobbying government and other organisations on issues of concern to physiologists, fostering relationships with like minded organisations and liaison with the media.

Two events were held in 2008 focusing on the contribution of physiology to health and the treatment of disease. Fit4Life, held in April at Essex University, was attended by over 250 school children and adults, who benefited from direct participation in activities exploring what a healthy lifestyle is and how it can be achieved.

Cystic Fibrosis: Better Understanding, Better Lives, in partnership with the Biosciences Federation (BSF), EuroCareCF and the Society for General Microbiology, was held at the BA Science Festival in September, and was attended by over 70 members of the public and clinicians. Audience participation was excellent with parents of children with CF actively debating the issues with our speakers. A series of events on neuroscience will be held in partnership with Bristol University and the Science Centre Explore-At-Bristol during Brain Awareness Week in March 2009.

A Working Group on medical training issues, set up in partnership with the British Pharmacological Society (BPS), identified the need to develop a core curriculum in physiology to help inform the training of medical students and health professionals. A draft curriculum is currently under preparation for distribution to all UK medical schools in 2009, and will inform The Society’s response to the GMC’s Tomorrow’s Doctors consultation.

A concept paper on opportunities for learned society involvement in science & technology capacity building in developing countries was prepared and widely circulated, drawing a very positive response from other learned societies and policy makers. Some outline proposals for new capacity building programmes will be discussed with BSF and other partners, and will be developed further in 2009.

The Society is actively represented on a number of external bodies. A major activity throughout the year was responding to science policy consultations – 12 major consultations in 2008 – many in conjunction with the BSF. This has included making a major input to co-ordinating UK submissions lobbying for sensible provisions in the proposed revision of EU Directive 86/609 on animal research. The Society will continue to work with the BSF and other organisations on responses to consultations in 2009.

Other planned projects for 2009 are a joint workshop on the 3Rs and animal research issues in heart disease research in partnership with the NC3Rs and BPS. In science communication, The Society will also become a sponsor of Sense About Science’s Voice of Young Science Programme, enabling our Affiliates to take part in their media training workshops and on-going support network.

Key achievements in 2008• Creation of core physiology curriculum for

medical training• Two public events focusing on health

Key goals for 2009• Dissemination of core physiology

curriculum• Run an event on the 3Rs • Participation in BSF working groups

developing position papers and consultation responses

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Activities

Our new website was launched in March and has proved popular with Members. Over 95% of membership applications, renewals, events registration and grant applications are now made through the online application and payment portal, resulting in a significant reduction in administration, a quicker turnaround time and increased accuracy.

Since the launch a number of other societies have expressed an interest in pursuing a similar project and this will hopefully aid us in building inter-society relationships with a useful pool of shared knowledge and experience. In 2009 further enhancements for Members will include automatic membership renewal reminders and improved news delivery, including a regular eNewsletter and RSS feeds.

At an EGM held in March, a new Executive Committee structure was introduced to clarify lines of authority and to bring us into line with the governance structures of most other learned societies. The roles of President and Chair were subsumed into one, to be called President, who chairs both Council and the Executive Committee.

The Executive Committee now consists of the President, a Deputy President, the Treasurer and four other Trustees who may be chairs of other committees of The Society. The International Secretary role and direct representation from The Journal of Physiology were phased out, bringing the Executive Committee into line with the committee and staff structure serving it. All Council Members are now directly elected by Members of The Society.

The Executive Committee will develop a 5 year business plan in 2009 to ensure the continued ability to pursue its charitable objectives in years to come.

In 2009 The Society’s Memorandum and Articles of Association will be updated following advice from our solicitors to incorporate a number of changes required by the Companies Act 2006.

Key achievements in 2008• Revised governance structure introduced• New website launched

Key goals for 2009• Upgrade to office IT systems, membership

database and journal hosting platforms• Develop a 5 year business plan

Resources, administration and infrastructure

Following the creation of the new Finance Committee, a major review of the entire financial accounting and banking systems commenced. We transferred from a modem based banking system to a new internet-based service. Greater integration between the Sage accounting system and the iMIS membership database will be implemented in 2009.

The new website was launched in March

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Activities

History & Archives

The History & Archives Committee actively promotes interest in all aspects of the history of physiology. The committee oversees The Society’s various archival collections which are currently held at the Wellcome Trust Library and the Science Museum. The committee publicises the need for institutions and departments to identify and maintain any historically important physiological equipment, images and documents. It also encourages individual physiologists to donate relevant personal and professional records to an appropriate repository. papers including minutes and agendas

relating to finance, governance, membership, education, and animal welfare and legislation. It also holds files from individual officers, and recordings and transcripts from the oral history programme.

The archive also includes The Society’s photographic collection started by HE Lewis in his role as official photographer for The Society and developed by Martin Rosenberg. As well as these pictures, the collection contains many photographs taken by Members and others.

The committee exhibited historically interesting physiological equipment at The Society’s Main Meeting in Cambridge, including Richard Adrian’s muscle bicycle and the Keith Lucas spring pendulum from 1908. The committee is particularly keen to identify unique pieces of equipment, usually handmade or modified in departmental workshops, that have contributed to the advancement of physiology.

Several more oral histories were recorded and transcribed for addition to the archive. The Paton Prize Bursary, which encourages the study of the major ideas and concepts that have shaped modern physiology, was actively promoted in 2008.

The muscle bicycle made for Richard Adrian in the Cambridge Physiological Laboratory

An oral history session – Peter Kirkwood and Martin Rosenberg recording Tom Sears

In 2008 the committee’s major work was to fund an archivist at the Wellcome Trust for a nine-month period to catalogue materials that have accrued over the last 15 years. A complete catalogue of the archive is available to all researchers on the Wellcome Library’s website although access to some material requires The Society’s permission.

The collection reflects the activities of The Society from its foundation, with minute books dating from 1876, and membership proposals from 1888. It includes proceedings and Meetings Secretaries’ minutes of scientific meetings; annual reports; administrative

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Governance

Governance

Council of Trustees

The Trustees are legally responsible for the overall governance, management and policy of The Society, ensuring that the charitable objects for which it has been set up are met. The Trustees are also the Directors of the company. The Council of Trustees meets three times a year.

Elections to the Council take place each year, and any Member of The Society is eligible to stand. The normal length of service on Council is four years. The current size of the Council is 20. A full list of The Society’s Trustees during 2008 is in the Standing Information section. Meetings of the Council are chaired by the President.

Administrative support is provided to the Council and its committees by The Society’s staff based in our offices in London and Cambridge.

Trustees’ responsibilities

Company law requires the Council of Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of The Society and the income or expenditure for that year. In preparing these financial statements, the Council of Trustees has:

• Selected suitable accounting policies and then applied them consistently

• Made judgements and estimates that are reasonable and prudent

• Followed applicable accounting standards and statements of recommended practice without any material departures

• Prepared the financial statements on the going concern basis

The Council of Trustees is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of The Society and which ensure that the financial statements comply with the Companies Act 1985. They are also responsible for safeguarding the assets of The Society and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees have confirmed that as far as they are aware there is no relevant audit information of which The Society’s auditors are unaware, and that they have taken all the steps that they ought to have taken as Directors of the company in order to make themselves aware of any relevant audit information and to establish that The Society’s auditors are aware of that information.

Trustee induction and training

On appointment each Trustee is sent a Trustee Handbook which includes Charity Commission leaflet CC3 and Companies House leaflet GBA1. All new Trustees are invited to attend an external Trustee Training course.

In 2008, four Trustees attended a Governance Magazine Trustee Training course and two Trustees on the Finance Committee, along with the two invited external members, attended a Charity Finance Directors’ Group Introduction to Charity Finance course.

Trustees have a legal duty to avoid conflicts of interest so that they can focus exclusively on the best interests of The Society. If and when any conflicts of interest arise, Trustees are required to make a declaration to be recorded on The Society’s Register of Interests, which is maintained by the Company Secretary and reviewed by the Council on an annual basis.

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Governance

Executive Committee

The Executive Committee works through the Chief Executive to oversee the day-to-day operations of The Society and meets frequently throughout the year. Members of the Executive Committee are drawn from, and elected by, the Council. The Council can delegate any of its powers to the Executive Committee as it sees fit. The normal term of office on the Executive Committee is 4 years.

At an EGM held at the University of Leeds on 17 March 2008, a new Executive Committee structure was introduced to clarify lines of authority and to bring The Society into line with the governance structures of most other learned societies.

The Executive Committee in 2008 comprised:

Jan – JulyO Petersen PresidentJC McGrath ChairC Orchard Vice-ChairJG McGeown Honorary TreasurerP Kumar Meetings Secretary

July – DecC Orchard PresidentM Spyer Deputy PresidentJG McGeown Honorary TreasurerP Kumar Meetings SecretaryL Robson Chair, EducationJ Ward Chair, External Relations Policy

Committees

The Council also has committees and working groups to which it delegates powers, and these groups report back to the Council. Membership of committees is drawn from the Council but also includes other invited members who may be Members of The Society or external. Committees are aligned with the various functional groups in the London and

Cambridge offices. The main committees are Education, External Relations Policy, Finance, History & Archives, Meetings, and Publications.

In 2008 a Finance Committee was introduced which superseded the Audit & Risk Committee. The committee takes delegated responsibility on behalf of the Council for overseeing all financial aspects of The Society so as to ensure its short and long term ability to achieve its charitable objectives and report back to Council accordingly. The committee acts as a reviewing mechanism of all strategic and statutory financial aspects of The Society.

Management and administration

The Society employs a Chief Executive who reports on performance against the strategic and operational plans approved by the Trustees. The Society has two offices. The Administration Office in London provides central direction for all aspects of policy and strategy implementation. The Publications Office in Cambridge supports the publishing activities of The Society, including The Journal of Physiology and Experimental Physiology.

Annual General Meeting

The Society’s Annual General Meeting, open to all Members, was held on Wednesday 16 July 2008 at the University of Cambridge during the Physiology 2008 Main Meeting. An Extraordinary General Meeting was held on Monday 17 March 2008 at the University of Leeds during the Themed Meeting. Minutes of both meetings are available on The Society’s website.

Risk management

The Trustees continuously review potential risks to The Society. The Finance Committee reviews the effectiveness of internal financial controls and risk management systems, the

20

Governance

effectiveness of our internal audit function and the clarity and completeness of disclosures in the financial statements of The Society.

Financial risk is formally reviewed on an annual basis but updated continuously as required. The major financial risk facing The Society remains the open access threat to future publishing income, although this is mitigated in the short term by a new publishing contract.

A five year business plan is to be reviewed by Trustees in 2009 and this will include income sustainability. During the year, the level of risk attached to banking and investments was upgraded and this forms a major area of the Finance Committee’s scrutiny. Further details are given in the Financial Review.

Public benefit and public benefit reporting

The Charity Commission has finalised its guidance on public benefit. This is of importance as the Commission now has the role of assessing the compliance of charities with their legal duty to benefit the public in order to qualify for charitable status.

The Physiological Society is required to report on how it delivers public benefit in the 2009 Trustees’ Annual Report. This will include the following:

• Confirmation that Trustees have paid due regard to the Charity Commission guidance on public benefit in deciding what activities the charity should undertake

• Explanation of significant activities undertaken in order to carry out The Society’s aims for the public benefit, as well as their aims and strategies

• Explanation of The Society’s achievements measured by reference to The Society’s aims and the objectives set by the Trustees

The Trustees will consider the timetable for their public benefit reporting obligations at the July 2009 Council meeting.

Biosciences Federation

The BSF is currently one of the channels for submitting The Society’s responses to public consultations. The Society is closely involved with the BSF Animal Sciences Group that is tackling difficult issues concerning legislation and the activities of animal rights activists.

The Society supports the planned merger of the Biosciences Federation and the Institute of Biology as it has the potential to provide a powerful umbrella and lobbying organisation for the life sciences in the UK.

Benevolent Fund

The Benevolent Fund of The Physiological Society was established in 1976 ‘for the purpose of assisting Members of The Society, staff and former staff (who by the nature of their employment can be considered to have contributed to the advance of physiology) employed at teaching, research and industrial establishments who are in necessitous circumstances, and their dependants.’

Income in 2008 was £5,849 of which £4,071 came from charitable giving, £156 from raffles and the remainder from investment income and bank interest. In 2008 one grant totalling £1,000 was made and £150 of book tokens and vouchers were given to children of current or recent beneficiaries.

The Society is connected by virtue of common object and administration with The Benevolent Fund (Registered Charity No. 272800) and contact may be made through The Society. The Society supports The Fund by the free provision of employees’ time and administrative resources.

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Standing Information

The Physiological Society is registered in England as a company limited by guarantee, No. 323575. Registered Charity No. 211585.

Head Office and Peer House, Verulam Street, London WC1X 8LZRegistered Office Tel: 020 7269 5710 Fax: 020 7269 5720 www.physoc.org

Publications Office PO Box 502, Cambridge CB1 0AL Tel: 01223 400 180 Fax: 01223 246 858

Chief Executive Michael Collis

Company Secretary Simon Kellas

Finance Manager Casey Early

Auditors haysmacintyre, 15 Fulwood Place, London WC1V 6AY

Solicitors Russell-Cooke, 2 Putney Hill, London SW15 6AB

Bankers Child & Co, 1 Fleet Street, London EC4Y 1BD

Investment managers Bestinvest (Brokers) Ltd, 6 Chesterfield Gardens, London W1J 5BQ

Property consultants Bidwells, Trumpington Road, Cambridge CB2 2LD

Pension advisors Punter Southall Financial Management Ltd, 126 Jermyn Street, London SW1Y 4UJ

Trustees in 2008 J Ashmore P de Winter 2 V Gladwell P Greenhaff 1

J Hanrahan S Jones2 A King 3 P Kumar

W Large1 S Lightman1 JG McGeown JC McGrath

C Orchard O Petersen1 C Schwiening L Robson 2

G Smith M Spyer 2 D Sugden A Tepikin

T Tiffert J Ward2 J Winpenny D Wyllie

1 to July 2008 2 from July 2008 3 to Jan 2008

Standing Information

22

Financial reviewBasis of accounting

The summarised financial statements of The Physiological Society are attached to this report. The full statutory accounts are prepared in accordance with the requirements of the Charities SORP, including a full analysis and allocation of support costs across the charitable activities.

Review of the year

Overall summary

The Society’s total income increased by 4% in 2008 to £3,429,000 (2007: £3,290,000). Expenditure increased by £92,000 to £3,009,000 (2007: £2,917,000). As a result, net incoming resources increased slightly by £47,000 to £420,000 (2007: £373,000).

The difficult financial market conditions towards the end of 2008 meant that investments yielded net losses of £2,309,000 (2007:net losses of £60,000). The overall effect on reserves was a decrease during the year of £1,889,000 (2007: increase of £313,000).

Publications

The Journal of Physiology total income increased by a modest 2% to £2,572,000 (2007: £2,527,000). Standard subscriptions remains the largest single income stream at 38% (2007: 42%) although this continues to decline in the face of evolving online models (increases of 17-19%). Other journal income, which is less than 5% of total income, has fallen by £16,000 (16%).

Experimental Physiology total income increased by £6,000 (4%). Subscription income increased

slightly to £137,000 (2007: £132,000). Rights, colour revenue and other journal income remained constant at around £8,000.

Publication costs for the two journals remained stable at £1,498,000 (2007: £1,493,000). Savings in production (£37,000) and distribution costs (£19,000) were mostly offset by increases in editorial (£19,000) and staff costs (£22,000).

Events

Income from scientific events increased by a considerable £65,000 in the year. The main reason for this were the financial arrangements for the Main Meeting; registrations for the 2007 Joint Life Sciences Meeting were not handled by The Society and consequently there was no Society income stream associated with this event. By contrast, the 2008 Cambridge meeting yielded total income of £80,000. Total registration income in 2008 was £39,000 compared with £11,000 in 2006; the most comparable year. Events expenditure increased by £119,000 (23%) to £627,000 (2007: £508,000). The primary reason were the costs, of £182,000, associated with the 2008 Main Meeting compared with just £17,000 for the Joint Meeting in 2007.

Taking into account the associated income streams; the net cost to The Society of the Main Meeting was £102,000 (2007: £17,000). Support for Themed Meetings increased by £20,000 to £87,000 but costs for the Joint International Meeting fell by £23,000 to £23,000. One international workshop was funded in the year at a cost of £27,000 (2007: two, £55,000) and allocated staff costs fell by £15,000 (9%).

Financial review

23

Membership services

Total membership subscriptions increased by £7,000 (6%) to £134,000. Total costs associated with the provision of membership services increased by £28,000 (10%) to £298,000 (2007: £270,000). Member grants and Physiology News costs were of a comparable level to 2007. Allocated staff costs increased by 24% and this was mostly attributable to the costs of funding an archivist (£19,000) to catalogue materials in the year.

Education

Educational activities decreased by £57,000 (18%) to £255,000. Expenditure associated with schools increased by £4,000 (50%) but that for universities fell by £14,000 (13%). International activities fell by £19,000 (48%) due to a major review of activities. Staff, support and allocated costs all decreased.

External relations

Resources expended on activities associated with external relations policy increased slightly

by £6,000 (5%) to £116,000 (2007: £110,000). New activities in the year in respect of Fit4Life and the draft core curriculum accounted for the increase.

Governance

Costs relating to the general running of The Society decreased slightly at £190,000 (2007: £191,000).

Apportioned support costs

Joint overhead costs associated with the London office increased by £23,000 (12%) to £219,000 (2007: £196,000).

Other incoming resources

Investment income decreased by £33,000 (8%) over the previous year. Fund income fell by £32,000 (15%) in the year and this was due to an increased holding in ‘accumulation units’ compared with 100% ‘distribution units’ from the middle of 2007. Rental income remained constant at £180,000 and bank interest fell by £4,000 (9%).

Financial review

1,798 1,988 2,056 2,219 2,093 2,499 2,585 2,628 2,667 2,718

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Cambridge University Press Blackwell Publishing/Wiley-Blackwell

Publication income 1999 – 2008The chart below shows the value (£’000) of The Society’s publication income overthe last 10 years.

24

Balance sheet

Despite a solid operating surplus, The Society’s exposure to equity investments meant that its overall net wealth fell by £1,889,000 (16%) to £10,027,000 in 2008. This takes The Society back to a pre-2005 wealth level although this position would have been much worse had The Society retained a tracker-based investment policy.

Cash and bank balances fell by 5% although this includes a transfer, to debtors, of balances formerly held with Kaupthing Singer Friedlander (KSF) totalling £523,000.

The Society have submitted a claim to the Financial Services Compensation Scheme (FSCS) in respect of KSF and we anticipate the funds being returned by the middle of 2009. Debtors increased by £229,000 (13%) in the year; the FSCS redisclosure was offset by falls in trade debtors (£341,000) and accrued

income (£79,000). Creditors fell by £70,000 (4%) and this was mostly due to a lower VAT liability for the final quarter of the financial year.

Investment policy and performance

Investment funds

The Sociey’s investment funds saw major losses in the second half of 2008, leading to an overall reduction in the market value of £1,450,000 (18%). The first full year of The Society’s investments under the management of BestInvest coincided with a year of great uncertainty in the world financial markets.

In March 2007, the Trustees approved a change from a passive tracker-based approach with only six funds to a more diversified ‘active management’ arrangement. As well as increasing the number of invested funds to 23, the exposure to ‘large-cap’ companies was reduced and growth units purchased at

Financial review

1999

8,640

1,840

1,820

Investment property

Investment funds

1,805

1,8351,725

1,880

7,923 6,546 5,051 5,772 6,162 7,290

2,360

7,755

2,870

8,207

2,595

6,757

1,900

2000 2001 2002 2003 2004 2005 2006 2007 2008Newton LGIM Bestinvest

Investment performance 1999 – 2008The chart below shows the value (£’000) of the rental property and investment fund over the last 10 years. The investment property has been managed by a single firm, Bidwells, over this time. The investment fund has had three managers, Newton, LGIM and Bestinvest, in the same period.

25

the expense of income. Although a direct comparison is not straightforward, evidence strongly suggests that The Society benefited from changing its investment approach even if this was to limit its downside loss.

In November 2008, Bestinvest made global changes to all their investment models to account for the prevailing financial crisis. The Society’s revised model saw a reduction in equity and hedge fund holdings and an increase in bond holdings. All The Society’s investments will continue to be regularly monitored by the Finance Committee.

Property

The Society continues to hold a portfolio of four properties. As of 31 December 2008 the portfolio was re-valued downwards by £695,000 (2007: re-valued downwards by £275,000), following an independent valuation, giving a market value of £1,900,000 (2007: £2,595,000). Total rental income during the year was £180,000 (2007: £178,000). The net income return of the portfolio in 2008 was 6.4% (2007: 6.9%). Investment property manager’s fees remain at 5% gross rentals.

Reserves policy

The Trustees have adopted a reserves policy which they consider appropriate to ensure the continued ability of The Society to meet its charitable objects. The free reserves are defined as unrestricted funds less designated funds less fixed assets. The free reserves as at 31 December 2008 were £8,906,000 (2007: £10,859,000) and 97% of these are represented by long-term investments.

Following the revised Wiley-Blackwell publications contract, the Finance Committee has been considering The Society’s requirements for free reserves in the context

Financial review

of an overall Business Plan. This plan will be discussed by the Trustees at the July 2009 Council Meeting along with a review of the Statement of Investment Principles.

Grant making policy

The Society awards grants both in the UK and internationally, to support the careers of physiologists and to promote the understanding of physiology amongst the wider community. Assessment criteria for applications include the benefit of funding an application to the applicant and/or the community, and to the furtherance of physiology. Details of the policy and application procedures are available to Members and non-Members on The Society’s website.

The types of grants available are:

• Travel Grants for attendance at meetings, workshops and laboratory visits

• Vacation Studentships to support undergraduate summer research projects

• Departmental Seminar Schemes to attract visiting speakers to take part in department-run seminars

• Outreach Grants to support outreach activities that communicate the excitement of physiology to young scientists and the wider community

• Non-Society Symposium to provide up-to-date presentations on a specified symposium topic at a non-Society meeting

• International Junior and International Senior Research Grants to support researchers overseas

• The David Jordan International Teaching Fellowship provides funding for recipients to visit an institution in order to acquire teaching methods of benefit to the teaching of physiology

26

It will not have escaped anyone’s notice that financially we are living in uncomfortably ‘interesting times’. However, many aspects of the financial statements presented here remain encouraging. The growth in total income, at 4%, was slightly greater than growth in expenditure (3%), resulting in net incoming resources of £420k for the year.

The pattern of expenditure also reflects the general priorities agreed by the Trustees, with the publication of original science and scientific meetings accounting for 71% of total expenditure. When the re-investment of investment income is taken into account, the operating surplus for 2008 was £196k.

This is some £227k more than was planned for in the budget deficit set at the end of 2007, due to the combined effects of an increase in net income (£66k more than budget), a reduction in general running costs (£55k under budget) and a reduction in the costs of the main activities of The Society (£106k under budget). I think this last figure should concern The Society most, as it is a crude measure of our charitable activity itself.

We will continue to work towards more accurate budgeting of costs and Trustees and staff will do all they can to ensure that the approved budget for their area of responsibility is spent.

Some of the underspend may reflect a more systemic problem, however, with reduced numbers of Members who are ready and willing to organise relevant activities in their own institutions or areas. As ever, the future

health of The Society relies on the enthusiasm and participation of its Members.

Clearly, this has been a bad year for investments, and The Society has not been immune from the effects of the global downturn. There was a reduction in the value of our investments, both managed funds and property, of £2,145k during 2008. The banks have not proved the safe havens they were previously considered to be.

Many Members will be aware that The Society had £523k invested in Kaupthing, Singer and Friedlander (KSF). I am glad to report that we have now received compensation in full from the Financial Services Compensation Scheme, including the interest due at the time KSF went into administration.

All classes of investment assets showed similarly poor performances over 2008, although I believe the increased diversification of our funds under the active financial management of Bestinvest has provided limited protection from the worst effects of the credit crunch on global markets.

It should be emphasised, however, that the value of our investments will only have an impact on the activities of The Society when we are regularly required to tap our reserves. So, while we cannot be complacent about our investment decisions, sustaining our income remains the major concern.

With 79% of that income from publishing, we remain at risk should there be a serious downturn in subscriptions to our journals. It

Treasurer’s statement

Treasurer’s statement

27

The Annual Report and Accounts were approved by the Trustees of The Physiological Society and signed on this 1st day of May 2009 on their behalf by:

CH Orchard JG McGeownPresident Honorary Treasurer

is unlikely, in my opinion, that any alternative income stream of equivalent value can be developed in the foreseeable future.

On the positive side, there is no obvious evidence as yet that Open Access publishing is affecting the expenditure of institutional libraries on journals. More worrying, perhaps, is the potential threat of a general reduction in university funding at the next government Comprehensive Spending Review, which is unlikely to be generous.

As Treasurer, one of the most positive developments over the last year has been the inception of a Finance Committee, which has taken over the financial aspects of the work of the Audit and Risk Committee, along with broad terms of reference covering all aspects of The Society’s finances.

This committee includes external members bringing expertise not easily found within the membership of The Society itself, and has already been most helpful both in identifying areas of financial risk not previously considered and also in helping define appropriate actions to mitigate these risks.

These individuals, some of whom have no personal connection with The Society, give freely of their time and considerable expertise, and I have greatly valued their help and advice. I am sure the contribution made by this committee in advising The Society can only increase as they become more familiar with our activities and the risks and opportunities we face.

I would like to record The Society’s gratitude for a generous bequest from the estate of the late David Jordan. This has been used to establish an International Teaching Fellowship in his memory, something we believe he would have appreciated, given his strong commitment to education. In this report, my last as Treasurer, it is also, I hope, appropriate for me to add a few words of personal thanks and appreciation. It has been a great privilege to be involved in this way with the work of The Society over the last 4 years.

Although our discipline undoubtedly faces many challenges, I still believe The Physiological Society has much to offer its Members and the life sciences in general.

It has also been a pleasure to work with The Society’s staff, particularly those with whom the Treasurer interacts most closely, Mike Collis as Chief Executive and Casey Early, our Finance Manager. Casey’s professionalism and enthusiasm will, I’m sure, prove as much a support and encouragement to my successor as they have to me.

Treasurer’s statement

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Independent auditors’ report

Independent auditors’ report

We have examined the summarised financial statements of The Physiological Society set out on pages 29 to 31.

Respective responsibilities of Trustees and Auditors

The Trustees are responsible for preparing the summarised financial statements in compliance with the relevant requirements of section 251 of the Companies Act 1985 and the regulations made there under the recommendations of the charities SORP.

Our responsibility is to report to you our opinion on the consistency of the summarised financial statements with the full financial statements and Trustees’ Annual Report. We also read the other information contained in the summarised annual report and consider the implications for our report if we become aware of any apparent misstatements or material inconsistencies with the summarised financial statements.

Basis of opinion

We conducted our work in accordance with Bulletin 1999/6 The auditors’ statement on the summary financial statement issued by the Auditing Practices Board for use in the United Kingdom.

Opinion

In our opinion the summarised financial statements are consistent with the full financial statements and the Trustees’ Annual Report of The Physiological Society for the year ended 31 December 2008.

haysmacintyreChartered AccountantsRegistered AuditorsFairfax House, 15 Fulwood PlaceLondon WC1V 6AY

1 June 2009

The summarised accounts are a summary of information extracted from the annual accounts and contain information relating to both the Statement of Financial Activities and the Balance Sheet.

These summarised accounts may not contain sufficient information to allow for a full understanding of the financial affairs of The Society. For further information, the full accounts, which received an unqualified audit opinion, should be consulted. These may be obtained from the registered office or from www.physoc.org.

The annual accounts were approved by the Trustees on 1 May 2009 and have been submitted to the Charity Commission and Companies House.

29

Statement of financial activities

Statement of financial activities

UnrestrictedFunds

RestrictedFunds

Total2008

Total2007

£’000 £’000 £’000 £’000

Incoming Resources

Activities to further the Charity’s objects:

Journal sales and subscriptions 2,718 - 2,718 2,667

Events and education income 122 - 122 58

Membership subscriptions 134 - 134 127

Other incoming resources 4 51 55 5

Activities for generating funds:

Investment income 400 - 400 433

Total incoming resources 3,378 51 3,429 3,290

Resources Expended

Cost of generating funds:

Investment management fees 25 - 25 33

Charitable expenditure:

Costs of activities to further the Charity’s objects:

Publications 1,498 - 1,498 1,493

Events 625 2 627 508

Membership Services 298 - 298 270

Education 255 - 255 312

External Relations 116 - 116 110

Governance costs 190 - 190 191

Total resources expended 3,007 2 3,009 2,917

Net incoming resources before transfers 371 49 420 373

Transfer between funds (1) 1 - -

Net incoming resources 370 50 420 373

Realised losses on investments (330) - (330) (32)

Unrealised (losses)/gains on investments (1284) - (1,284) 247

Revaluation of investment property (695) - (695) (275)

Net movement in funds (1,939) 50 (1,889) 313

Fund balances as at 1 January 2008 11,868 48 11,916 11,603

Fund balances as at 31 December 2008 9,929 98 10,027 11,916

All the above results are derived from continuing activities. All gains and losses in the year are included above; accordingly a statement of total realised gains and losses has not been prepared.

(330) (32)

(1,284)

(695) (275)

(1,889)

(1)

(330)

(1,284)

(695)

(1,939)

30

Approved and authorised for issue by the Trustees of The Physiological Society this 1st day of May 2009 and signed on their behalf by:

CH Orchard JG McGeownPresident Honorary Treasurer

Balance sheet

Balance sheet2008 2007

£’000 £’000

Fixed Assets

Tangible assets 19 9

Investments

Securities 6,757 8,207

Investment properties 1,900 2,595

8,657 10,802

Current Assets

Debtors 2,033 1,804

Cash at bank and in hand 960 1,013

2,993 2,817

Liabilities

Creditors: Amounts falling due within one year (1,642) (1,712)

Net Current Assets 1,351 1,105

Net Assets 10,027 11,916

Funds

Unrestricted Funds:General (including deficit revaluation reserves of £652k (2007: £1,298k surplus)) 8,925 10,868

1,004 1,000

9,929 11,868

Restricted 98 48

Total Funds 10,027 11,916

(1,642) (1,712)

31

All the above results are derived from continuing activities. All gains and losses in the year are included above; accordingly a statement of total realised gains and losses has not been prepared.

Cash flow statement

Cash flow statement

2008 2007

£’000 £’000

Net Cash Outflow from Operating Activities (272) (636)

Returns on Investments

Income from listed investments received 176 207

Interest received 44 48

Rent received 180 178

Capital Expenditure and Financial Investment

Payments to acquire fixed assets (18) (3)

Purchase of investments (2,718) (8,096)

Disposal of investments 2,540 7,935

Decrease in Cash in the Year (68) 367

(2,718)

(18)

(68) (367)

(272) (636)

(3)

(8,096)

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Physiology 2010Main Meeting of The Physiological Society

University of Manchester, UK

30 June - 2 July 2010

Abstract submission& Registrationopens 1 March 2010

For more information, please visitwww.physiology2010.org

33

Many members of staff contributed to this report. Edited by Simon Kellas. Printed by The Lavenham Press Ltd.

34

The Physiological Society Peer House, Verulam StreetLondon WC1X 8LZ

Tel: 020 7269 5710 Fax: 020 7269 5720 www.physoc.org