2012 Trustees' Report - Royal Society of Chemistry

Trustees’ Report
The RSC uses the following controls to mitigate risk:
formal agendas for all committee and board activity,
detailed terms of reference for all committees,
comprehensive strategic planning, budgeting and
management accounting, established organisational
structure, clear lines of reporting and clear authorisation
levels. The RSC mitigates risk from economic conditions
by regularly reviewing its risk profiles.
The RSC has two locations in the UK and has
infrastructure in place to keep essential operations
functioning from either location. It has a detailed
business continuity plan, which is revised regularly.
It maintains insurance against loss of business
and assets, as well as Trustee indemnity insurance
and reviews all insurance cover annually using
independent advisers.
Fixed assets are periodically reviewed to make sure
their net book value does not exceed their recoverable
amount. No excess valuations were identified in 2012, so
a more detailed impairment review was not necessary.
Where appropriate, forward exchange contracts are
used to manage exposure to currency exchange risk.
Contracts to the value of US $7,000k and €540k (2011:
$26,100k and €540k), were entered into during the
year ended 31 December 2012. Given the level of sales
in US$, these deals secure the value of US$ income.
Credit risk is reduced by a large proportion of income
being paid in advance, and although some risk remains,
this is mitigated by using robust credit control.
Liquidity risk is kept low by maintaining significant
levels of cash, near cash holdings, avoiding long term
loans, and undertaking regular cash flow forecasting
and good cash control.
Objectives and activities
The RSC’s mission is the advancement of the chemical
sciences and their applications. Our Royal Charter lists
the following as the organisation’s primary objects:
• to foster and encourage the growth and application
of such science by the dissemination of chemical
knowledge;
• to establish, uphold and advance the standards of
qualification, competence and conduct of those
who practise chemistry as a profession;
• to serve the public interest by acting in an advisory,
consultative or representative capacity in matters
relating to the science and practice of chemistry; and
• to advance the aims and objectives of members of
the Society so far as they relate to the advancement
of the science or practice of chemistry.
The RSC’s strategic priorities for 2012 were set out
in alignment with these objectives and are outlined
in more detail in the following section. They focus
on influencing the chemical science agenda in
the UK and internationally, raising awareness and
understanding of the role and value of the chemical
sciences, ensuring the supply of people adequately
equipped to practise chemistry competently at all
levels, disseminating chemical science knowledge
through high-impact publishing and fostering
collaborations and partnership for organisational
development.
The Trustees have complied with the duty in the
Charities (Accounts and Reports) Regulations 2008
to consider the public benefit guidance published
by the Charity Commission. The Trustees are
satisfied that RSC activities provide public benefit
by advancing chemical sciences through publishing
chemistry books, journals and magazines; informing
and influencing policymakers; supporting and
advancing chemical science education; recognising
and regulating professional standards in the chemical
sciences; organising meetings, conferences and
networking events and informing and engaging the
public.
8 | Financial Statements and Trustees’ Report 2012