The British Computer Society & - BCS

Annual Report
and Consolidated
Financial
Statements
Year ended
30 April 2004
Registered charity number 292786

Index
Page No
OFFICERS, DISTINGUISHED FELLOWS AND EXECUTIVES............................................... 1
PRESIDENT’S REPORT........................................................................................................... 2
CHIEF EXECUTIVE’S REPORT............................................................................................... 4
TRUSTEE REPORT.................................................................................................................. 5
1. STRUCTURE ............................................................................................................. 5
2. ACTIVITY REPORTS................................................................................................. 6
3. FINANCE OVERVIEW (INCLUDING POLICY STATEMENTS).............................. 10
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF
THE BRITISH COMPUTER SOCIETY ................................................................................... 13
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES ............................................. 14
SOCIETY STATEMENT OF FINANCIAL ACTIVITIES .......................................................... 16
CONSOLIDATED CASH FLOW STATEMENT...................................................................... 18
NOTES .................................................................................................................................... 20

The British Computer Society
OFFICERS, DISTINGUISHED FELLOWS AND EXECUTIVES
PATRON HRH The Duke of Kent KG GCMG GC ADC FREng
TRUSTEE BOARD �
President Past President - N G McMullen CEng FBCS CITP
W Hall CBE FREng CEng FBCS CITP P S Barnes CEng MBCS CITP R J Jardine CEng MBCS CITP
Deputy President D Basu FBCS CITP R G Johnson CEng FBCS CITP
D Morriss CEng FBCS CITP A J Beasley CEng FBCS CITP S Kay CEng MBCS CITP
Vice-President Products & Services L A Beddie CEng MBCS CITP 2
S F M Keddie MBCS CITP
M D Allen FBCS CITP D A Bell CEng FBCS CITP L Keighley CEng FBCS CITP
Vice-President Finance S E Black MBCS CITP J E McLean MBCS CITP
J K Nix FBCS CITP A S Brown MBCS 3
R A Newell FBCS CITP
Vice-President External Relations P J Coats CEng MBCS CITP J M Roberts CEng MBCS CITP
B S Collins CEng FBCS CITP M G Cullen CEng FBCS CITP P E Ross CEng MBCS CITP
Vice-President Forums A J Fox CEng FBCS CITP 2
M Ross CEng FBCS CITP
R H A Burnett FBCS CITP T A Freedman MBCS CITP E K Somogyi FBCS CITP
Vice-President Knowledge Services M A Garvey MBCS CITP M B Stranks CEng FBCS CITP
N R Shadbolt FBCS CITP G Gee MBCS CITP C J I Stuart MBCS CITP
Vice-President Member Services
K R G Harper CEng FBCS CITP C J White CEng MBCS CITP
C E Hughes CEng FBCS CITP S I Herbert MBCS CITP J Yip CEng FBCS CITP
Vice-President Qualifications & Standards
J G Chapman CEng FBCS CITP
D Holdsworth CEng FBCS CITP A J Young CEng MBCS CITP
Immediate Past President
J L Ivinson FBCS CITP
Council Representative
D Anketell CEng FBCS CITP
Council Representative PAST PRESIDENTS
R K Baker FBCS CITP
Council Representative 2002/03 J L Ivinson 1980/81 F J Hooper CEng
R A McLaughlin CEng FBCS CITP 2001/02 N G McMullen CEng 1979/80 J L Bogod
Council Representative 2000/01 A J P Macdonald CB 1978/79 F H Sumner
B McManus CEng FBCS CITP 1999/00 D F Hartley CEng 1977/78 P A Samet CEng
Council Representative 1998-99 I C Ritchie CBE CEng FREng FRSE 1976/77 G A Fisher
F B Moran FBCS CITP 1997/98 Sir Brian Jenkins GBE 1975/76 C P H Marks*
1996/97 R J McQuaker CEng* 1974/75 E L Willey
� Members of Council and continuing Trustees 1995/96 G W Robinson CBE FREng 1973/74 R L Barrington
1994/95 D W Mann CEng 1972/73 G J Morris CEng
1993/94 J P Leighfield CBE 1971/72 A S Douglas CBE CEng
1992/93 R G Johnson CEng 1970/71 A d’Agapeyeff OBE *
1991/92 S C T Matheson CB 1969/70 The Earl of Halsbury FRS FREng*
1990/91 A R Rousell 1968/69 B Z de Ferranti*
1989/90 Dame Stephanie Shirley DBE CEng 1967/68 S Gill*
1988/89 B W Oakley CBE 1966/67 The Earl Mountbatten of
1987/88 E P Morris TD Burma KG PC OM*
1986/87 Sir John Fairclough FREng * 1965/66 Sir Maurice Banks*
1985/86 R A McLaughlin CEng 1963/65 Sir Edward Playfair KCB*
1984/85 E S Page CEng 1962/63 R L Michaelson*
EXECUTIVE BOARD 1983/84 D Firnberg 1961/62 D W Hooper*
1982/83 HRH The Duke of Kent KG 1960/61 F Yates CBE FRS*
Chief Executive GCMG GC ADC FREng 1957/60 Sir Maurice Wilkes FRS FREng
D Clarke
Deputy Chief Executive
C J Thompson
1981/82 P D Hall OBE CEng
* deceased
Director, Qualification Products
P Bayley
DISTINGUISHED FELLOWS
Director of External Relations, G M Amdahl Sir Antony Hoare KBE FRS
Knowledge Services & Forums C W Bachman P T Kirstein CBE FREng
M Rodd CEng FBCS CITP I M Barron CBE D E Knuth
Finance Director Sir Tim Berners-Lee KBE FREng FRS A J R G Milner FRS FRSE
P L Jones FCA MBCS F P Brooks FREng W M Turski FREng
IT Director D Deutsch Sir Maurice Wilkes FRS FREng
J Orton MBCS CITP W H Gates III R Wilmot OBE
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MEMBERS OF COUNCIL 1
1 Trustees until 30 April 2004 3 Not a Trustee
2 Retired 30 April 2004

The British Computer Society
PRESIDENT’S REPORT
Anyone who is honoured with the role of BCS President for the year can be assured of a hectic period
of enormous activity. I can vouch for this as I come towards the end of my presidential term. The year
began with the BCS Annual Dinner. Our guest of honour at the Intercontinental Hotel, Park Lane, was
the highly amusing broadcaster Sandy Toksvig, who had us roaring with laughter. I was delighted that
she began my term of office with a reminder to our predominantly male audience that women are a
force to be reckoned with, even in IT! Raising the profile of women in IT has been one of my main aims
during my presidential year. I have tried throughout the year to invite high profile women to share the
platform with me to celebrate the role of women in our community.
My other main aims have been to focus on the role of BCS as a ‘learned society in the 21st century’,
and to support the Society in its quest to increase professionalism in IT. So many things have
happened this year that it is hard to record them all in this report. So I will mention just some of them to
illustrate what a varied and interesting year it has been.
A key item early in my calendar was to announce the results of the ballot on the new BCS membership
criteria. Although we all felt pretty confident that we would persuade our members that a broader
membership was not only important for the IT profession generally but for the long term prosperity and
success of the Society, we still awaited the result with bated breath. Success! Over 90 percent of votes
by the membership were in favour of the new changes, which means that BCS is at last relevant to the
majority of the IT profession, rather than just the minority.
The New Year started with Professor Fred Piper’s Turing Lecture at the IEE. Fred focussed on peoples
worries about cyber-security. Perceived weaknesses were cited as threatening society and inhibiting ecommerce.
Yet every advance intended to protect the 'good guys' from the 'bad guys' can work in
reverse. His broad interest lecture examined the social and political implications of 'misuse' and
considered some technical solutions. As ever this was a tremendously successful event.
A lot of hard work has gone into the creation and promotion of the activities of the recently formed UK
Computer Research Committee (UKCRC). In collaboration with UKCRC and the Council of Professors
and Heads of Computing (CPHC), BCS sponsored a Grand Challenges in Computing conference in
Newcastle in March 2004. This attracted a huge cross section of British computer scientists, as well as
some key figures from Europe and the USA. It was also a privilege to present the newly created Roger
Needham Award at the conference to Jane Hillston from the University of Edinburgh, who is the creator
of a revolutionary new software modelling language that predicts performance related problems at
software design stage.
In March it was announced that the Prime Minister had appointed me, alongside 15 others, to his
Council for Science and Technology, the Government's top-level advisory body on science, engineering
and technology policy. This was a real mark of recognition, not just for me but also for the Society. This
announcement coincided with the launch of a new initiative for BCS, our Thought Leadership Dinners.
These are rapidly becoming one of the most sought after invitations in town! We invite experts in a
particularly controversial or new area related to IT to attend a dinner to discuss that subject whilst
enjoying their meal. Rapporteurs at each table report back in plenary session after the dinner, and
contribute to the final report. This serves to inform BCS on the subject and helps foster networking in
new areas. These dinners are proving very popular and have already attracted sponsorship. We are
planning many more of them.
Another great social evening, the type that BCS excels in, is the annual Lovelace Lecture. It was given
this year by Dr John Warnock, co-founder of Adobe, and at the lecture I was able to present him with
the Lovelace Medal, which is given to individuals for making a significant contribution to the
advancement, or the understanding, of information technology.
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The British Computer Society
President’s Report (continued)
The BCS was honoured again at a reception at the Dali Universe in London to mark our new
membership launch. Sir Peter Gershon and Lord Sainsbury graced the occasion with their presence
and televised support respectively. Both highlighted the need for increased professionalism in IT and
discussed what BCS’s role in such an initiative might be. It is really good to see BCS now being treated
with real recognition within government circles after all the hard work that has been put in over so many
years.
As is the case for most Presidents, much of my year has also been given over to supporting the work
and activities carried out by our Specialist Groups and Branches. I attended both of their annual
congresses and assemblies as well as doing more than my usual amount of travelling around the
country but being royally treated nevertheless wherever I visited. I have enjoyed these visits very much
as it has given me tremendous insight into the many and varied activities of our members.
I have thoroughly enjoyed my Presidential year and I now appreciate even more the enormous amount
of hard work that goes on behind the scenes by the staff at HQ. My year started with a major social
event, and it will come to a close with another one, namely the BCS IT Awards Dinner. If last year’s
dinner is anything to go by this will be a spectacular evening, and I look forward to announcing the
winners of the new award we have established this year for the company or organisation that has done
the most to support women in IT. This will be a fitting end to a memorable year.
W Hall
President
28 July 2004
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The British Computer Society
CHIEF EXECUTIVE’S REPORT
The last year has again been a tremendously challenging and rewarding year for the Society. Following
the approval of our changes to governance and membership late in 2003, the first half of 2004 has been
heavily focussed on implementation.
The changes to the Charter and Bye-laws, approved by both Privy Council and Membership have
introduced the new Chartered IT Professional (CITP) qualification and enabled the recruitment process
for other grades, including MBCS, to be radically improved allowing processing of applications and
awarding MBCS to become immediate. This achieves our aims of both being inclusive to all relevant
members and at the same time providing an efficient service - yet still retaining our gold standard
Chartered Levels.
To give you some idea of the success of the membership changes to date, like most institutions our
membership has been flat since its peak in 1994. In fact many institutions have been losing members at
a considerable rate in recent years, though thankfully we have maintained our total numbers. Our
target for the new financial year for new members is an additional 10,000 members, which is seen by
many people as extraordinarily ambitious, but if the first few weeks are anything to go by we will
certainly make this number.
The funding for the Society comes predominantly from our IT certification products businesses. This
year over 80% of our revenue came from these areas, principally ECDL, ISEB, BCS Professional
Products and BCS Exams. The IT Training market, has had a difficult time in the last three years,
reducing cumulatively in that time by 30%, back to the levels we saw in 1996, and if you allow for
inflation, 1995; and we have been seeing increasing competition in our key markets in the last two
years. Despite all of this, we have grown our overall product revenues by 16% this year to over £15
million, and also achieved our planned net surplus of 5%. In addition we are starting to see real inroads
from our investment in ICDL Asia Pacific Limited.
We have achieved these results whilst continuing to invest substantial amounts of money to make sure
our income continues to grow into the future. We have launched 15 new products this year, and have
over 40 new products in development.
Our approach to drive improved “Professionalism in IT” which has evolved over the last eighteen
months to colour much of our thinking, has proved incredibly successful at opening doors in all sorts of
directions. Our press profile has never been higher, we currently stand at no 37 in the PRA rating for IT
organisations, (we weren’t in the top 250 two years ago) and we are constantly receiving requests from
government and industry to participate in a whole variety of IT related activities. We have built an
excellent response process to manage these requests, with my staff handling the process and the world
class knowledge of our members providing the content.
During the last twelve months, we have been redeveloping the concept of a “Learned Society for the
21 st Century” We believe this should be about leading the thinking about where information technology
in all of its aspects will be going in the future. Together with the Council of Professors and Heads of
Computing (CPHC), we hosted a tremendously successful conference in Gateshead in April 2004 on
the future “Grand Challenges in Computing”.
We have also developed a series of “Thought Leadership” debates amongst key influencers on a whole
series of IT related topics, which are again leading the thinking in the development of IT policies and
directions for the future.
We have a feeling in the Society of making real progress in many areas of our organisation, and are
having some fun doing it.
D Clarke
Chief Executive
28 July 2004
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The British Computer Society
TRUSTEE REPORT
1. Structure
BCS is the Institution for Information Technology Professionals, established in 1957 and incorporated
under Royal Charter in 1984. The Society’s registered charity number is 292786.
The Society’s objectives are prescribed by the Royal Charter; the main objective is ‘to promote the
study and practice of computing and to advance the knowledge and education therein for the benefit of
the public’. It serves three main constituencies: IT professionals, employers of IT professionals and
society at large, and its governing documents are the Royal Charter, Bye-laws and Regulations.
Approval of the governance and membership criteria changes were approved at the Extraordinary
General Meeting in September 2003 by the Privy Council in November 2003. These changes were
effective from 1 May 2004 when the trusteeship of BCS passed from Council to the Trustee Board. The
continuing function of Council is to provide support to the Trustee Board in an advisory capacity and to
approve the appointment of Honorary Officers.
Trustee Board delegates much of the strategic work of the Society's key activities to Boards,
Committees, Expert Panels and Strategic Panels. Each Board is normally chaired by a Vice-President,
and also includes a senior member of HQ staff appointed by the Chief Executive. The Boards adopt
and progress programmes of work in their respective areas to meet the Society's objectives.
Lists of Council Members, all of whom were the trustees of the Society up to 30 April 2004 and the
Trustee Board Members who are the trustees from 1 May 2004, are included on page 1. Trustees are
elected to office in accordance with the Bye-laws by the Professional Membership and by Council itself.
Trustees are precluded from receiving remuneration from the Society, except when acting as examiner
for professional exams.
The Society works through a set of Boards and Committees whose responsibility transferred from
Council to Trustee Board on 1 May 2004 and which have delegated authorities. These in turn have
subsidiary committee structures appropriate to their areas of work.
KEY BOARDS AND COMMITTEES OF TRUSTEE BOARD
Forums Board Development of Forum activities and overview of the
current three Forums – Education & Training,
Engineering & Technology and Management.
External Relations Board External representation and employer liaison.
Knowledge Services Board Development and dissemination of knowledge about IT
and its application to the IT professional community.
Member Services Board Provision of relevant information and services to
members and other interested parties (includes
overview of Specialist Groups and Branches).
Products & Services Board Operational review and monitoring of the Society’s
portfolio of products and services including ECDL,
ISEB, Professional Products, Publications and
Membership Services.
Qualifications & Standards Board Professional admissions, accreditation and
development.
Audit Committee Review of audit and risk management.
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The British Computer Society
Trustees Report (continued)
The administration of the Society is undertaken by a full-time executive staff based at the Society’s
registered office in Swindon. The Society also maintains offices in London, which are used primarily for
meetings.
At the Society’s Annual General Meeting in October 2003 the 2002/2003 Annual Report and Accounts
were adopted, 13 new Council Members were elected, and the Auditors were re-appointed for the fiscal
year 2003/2004. Membership subscription rates were also approved for the year 2004/2005.
The Society’s membership at 30 April 2004 and 2003 is shown below:
Number of Members
2004 2003
Fellows 1,348 1,329
Members 24,809 15,483
Associate members 229 1,652
Companions 20 22
Students 7,402 8,972
Graduates - 7,322
Affiliates 3,020 3,604
36,828 38,384
The change in profile reflects the grade changes during the year. There was a small reduction in
numbers during the last twelve months due to a hold on promoting and seeking new applications
pending the launch of the new membership structure on 1 May 2004. As noted by the Chief Executive,
the growth in numbers has dramatically taken off since 1 May 2004 with over 2,000 new members
recruited during May/June 2004.
2. Activity Reports
A review of the activities of the Society is included in the President and Chief Executive’s Reports on
pages 2 to 4.
A summary of the activity of each individual Board is described by the relevant Vice-President below:
Forums Board
Vice-President Rachel Burnett
The primary importance of each Forum lies in its ability to act strategically as a source of professionally
recognised expertise in its particular sector, both in ensuring that the Society meets the concerns of its
members in that sector and in driving the outward-facing role of the Society.
The Forums Board co-ordinates the ideas and views developed in the Forums, and the work which
results, to facilitate implementation, and as a channel of communication to Council and the Trustee
Board. It will drive the Forums forward, ensuring their relevance and continuing contribution to the
overall success of the Society.
There are currently three Forums whose Strategic Panels report to the Forums Board through the
Forum Chairs:
• Education & Training
• Engineering & Technology
• Management.
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The British Computer Society
Trustees Report (continued)
Education and Training Forum
The Chair of the Education and Training Strategic Panel is Lesley Beddie
“The Education and Training sectors are recognised by the Society as crucial to its future and that of
computing professionals. We have established the Forum to work for the people in both these important
communities, which have a huge part to play in the support, instruction, and ongoing development of
computing professionals. The Forum has already ensured that the work of education and training
professionals in IT is incorporated into the Industry Structure Model. We will be setting up our Strategic
Panel over the next few months, and I’m glad to say that I will be helped in this by Gillian Lovegrove as
Interim Forum Manager.
Several BCS Specialist Groups address spheres of interest which are clearly closely related to the
Education and Training area. In fact it could be argued that they all do as they all address either an
aspect of learning/research or management/delivery of IT in the sectors! It is important that we work
with the Groups, which all count people who work in the Education and Training sector amongst their
members, to develop jointly new resources both for them and BCS members.
This Forum will work in partnership with other bodies or groups, and with other individuals and is
responsible for our very active Schools Expert Panel.”
Engineering and Technology Forum
The Chair of the Engineering and Technology Strategic Panel is Dr Allan Fox.
“The primary focus of our Forum’s Strategic Panel lies in the challenge of developing high consequence
computing systems with their technological challenge to the computing supply industry and their
extreme importance to many of the key engineering industries in the UK. In particular the Forum is
responsible for the BCS Safety Critical Systems Expert Panel which is supported jointly by the IEE. This
Panel seeks to raise Government awareness of this important societal concern as well as developing
an insight into available technological support.
Over the past few months as Chair of the Forum, together with my immediate predecessor Professor
John McDermid, we have been deeply involved in the joint BCS/Royal Academy of Engineering working
party report into the “Challenges of Complex IT Projects”; this authoritative report was in part funded by
the Engineering and Technology Forum. Certainly the Report’s widespread and public acceptance by
such key figures as Sir Peter Gershon of the Office of Government Commerce is a good example of
how the Forum can be influential.”
Management Forum
The Chair of the Management Strategic Panel is Gill Ringland.
“Our mission is to represent IT Managers, working with other representation bodies where appropriate.
We aim to do this by improving the overall quality and professionalism of IT Management, providing
improved support to managers who are closely associated with IT and/or given responsibility for
directing IT and making the BCS the first port of call for government and industry leaders/market
makers on all IT Management issues.
We have set up the Strategic Panel, which had its first meeting on 22 April 2004. This meeting was very
successful with much discussion and several ideas put forward for research and implementation being
followed through.
There are several BCS Specialist Groups whose spheres of interest are clearly in the IT management
area. These are: Business Information Systems, Business-IT Interface, Consultancy, Financial
Services, ICC, Law, PROMS-G, Quality, Sociotechnical and SPIN. We plan to work with them to
develop activities of interest to IT managers.”
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The British Computer Society
Trustees Report (continued)
External Relations Board
Vice-President Professor Brian Collins
“At an Organisational level members of the External Relations Board (ERB), with the Senior Officers,
directly represent the Society. The Board co-ordinates members’ interactions with other bodies through
the other Vice-Presidents and provides advice and guidance and annual communication sessions for
members with links to bodies such as EURopean InforMation Society Group (EURIM) and the
International Federation for Information Processing (IFIP).
We maintain a dialogue with Ministers, MPs and Senior Officials in departments with an IT related
responsibility. Among these are the Department of Trade and Industry (DTI), Department for Education
and Skills (DfES), Office of Government Commerce (OGC), Department of Health (DoH) and the
eEnvoy. We are active in EURIM and the Parliamentary IT Committee (PITCOM), the forums for
government/industry liaison. These activities are overseen by the Government Relations Group.
We are developing relationships with major employers and their representative bodies such as Intellect.
A good example of this is the IT for Communities (IT4C) initiative, which also includes the Worshipful
Company of Information Technologists (WCIT) and Business in the Community.
We also work with other membership bodies. As well as bilateral cooperation with these organisations,
the Society was instrumental in founding the IT Strategy Forum, chaired by past President Sir Brian
Jenkins, which has brought all these bodies together to cooperate on issues of mutual interest.
Internationally we work through the Council of European Professional Informatics Societies (CEPIS)
and IFIP, as well as being members of the European Computer Driving Licence (ECDL) Foundation.”
Knowledge Services Board
Vice-President Professor Nigel Shadbolt
“Knowledge Services Board (KSB) exists to support the development and dissemination of all forms of
knowledge about IT and its applications. The audience for this knowledge includes the IT professional
community, IT users and organisations, both education and research communities. Importantly KSB
strives to encompass both the Professional and Learned Society roles of the BCS.
Its current initiatives include; advising the new Products and Services Board on the strategic direction of
its procurement of titles, working with the BCS IT Director to help develop our web and IT infrastructure
so that we can offer the services needed to communicate information and content about IT in a timely
and attractive manner, developing taxonomies that will describe areas of research, business activity and
members skills, establishing a Learned Society Awards committee to oversee a number of prestigious
awards.”
Member Services Board
Vice-President Charles Hughes
“Member Services Board (MSB) brings together the important issues of member recruitment, retention
and engagement. It measures and monitors member attitudes and aspirations and ensures information
and services are directed to meet member needs. MSB is building on the successful networks of
Branches, Specialist Groups and Young Professionals, which together with a range of first class
products and services add significant value to all members.
Specialist Groups
The 50+ BCS Specialist Groups are formed by groups of individuals who share a common interest in
some specific aspect of IT, its application, and/or its bearing on other professional disciplines or society
at large. The SGs exemplify a time-honoured mechanism for supporting physical and electronic
networking among members, both within the UK and internationally, covering areas as diverse as
Health Informatics, Natural Language Translation and Financial Services.
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The British Computer Society
Trustees Report (continued)
SGs undertake a variety of activities, including regular meetings for the delivery of papers, discussion
groups, interactive workshops, or simply the provision of opportunities for the members to get together
for professional networking. SGs also organise conferences (either local or international), instigate
working parties to study specific aspects of current topics within its scope, or produce position
statements and prepare technology surveys.
Branches and International Sections
Our 40 UK Branches and 13 International Sections provide an important networking service for our
members. They hold regular meetings in their area, on a diverse range of IT and IT-related topics, as
well as arrange company visits/presentations, workshops and networking events. Some groups
maintain links with schools, colleges and universities and get involved in careers fairs, competitions and
prize giving. Over the past year topics covered have ranged from ‘Computer Forensics' and the
'Semantic Web' to 'Developments in Data Protection and Freedom of Information' with high profile
speakers such as Russell May, the former Head of Hi Tech Crime Unit, and Richard Thomas, the
Information Commissioner.
Other events included live programming robotic performances by Steve Grande OBE, schools
competitions, the Belfast Branch IT Professional of the Year Award, and the annual, high profile
Birmingham Branch IT Security Conference.
Young Professionals Group (YPG)
The Young Professionals Group (YPG) provides representation, services and a support network to all
BCS members under the age of 35. As one of the largest member groups in the BCS, the membership
body of the YPG is diverse, representing over 15,000 young IT professionals from many countries: all at
varying stages of their careers and with a wide breadth of skills and specialisations. YPG members
represent young IT professionals at many high-profile events around the UK and, at a local level,
organise events in universities and Branches of relevance to young professionals.”
Products and Services Board
Vice-President Mike Allen
“The formation of the Products and Services Board (PSB) is a recent development, approved by
Council in September 2003. PSB will adopt sound business practices to manage the Society's portfolio
of products and services, including establishing priorities and approving investment plans to achieve
this.
Its specific objectives are:
• To carry out a constant review of the products and services portfolio within the scope of the
Society's activities, and identify gaps and duplications in the products areas
• To manage the lifecycles of the individual product and service activity and performance.
The setting up of PSB is a key mechanism in ensuring that BCS investment in new products and
services delivers value for money for our members and secures our income streams for the future. It is
a big challenge but one on which we and the Swindon team have made a good start. Success will
depend on the application of sound business practices and ensuring that the products and services are
relevant to the IT community and society."
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The British Computer Society
Trustees Report (continued)
Qualifications and Standards Board
Vice-President John Chapman
“The role of the Qualifications and Standards Board (QSB) is to:
• establish and maintain the standards for education, competence and conduct of IT practice
• promote adequate provision of education and training to allow practitioners to develop and
maintain effective careers
• provide mechanisms and related quality assurance to review the performance of individuals
in relation to standards
• provide mechanisms to review appeals against the decisions related to performance.
It is our aim to see a BCS that is respected by its members, industry, academia and government for the
contribution it makes in moving IT forward, the expertise of its members, staff and publications and the
overall value it adds to society.
QSB have three major objectives in the following areas:
• Skills - how do we ensure that IT people stay current in today's changing world? This
includes 'Soft Skills' such as communications
• Career Management - how to we provide people with the best ideas and processes to allow
themselves to own their careers and thus avoid getting left behind?
• Women in IT - how can we increase the proportion of women to men and take advantage of
the perspective that women can bring as well as the potential extra resource that’s badly
needed? “
Audit Committee
Vice-President Jim Nix
“The Audit Committee was introduced on 1 May 2004 as part of the governance changes and will
implement an audit and risk management programme during 2004/05.”
3. Finance Overview (including policy statements)
These financial statements comply with current statutory requirements and with the requirements of the
Charity’s governing document and with the Statement of Recommended Practice – “Accounting and
Reporting by Charities” (SORP 2000).
During the year ended 30 April 2004 the Society and its Group activities had net incoming resources of
£746,000 (2003: £1,116,000). This has been another successful financial year and is supporting the key
strategic programme of change being implemented by the Society.
Total income for the year of £15.4 million is an increase of 16% on the previous year. This growth
represents increased income from professional programmes - especially ECDL, ISEB and BCS Exams.
This is a satisfactory performance within the current economic climate and is in line with our business
plan.
The Society has established an ongoing programme of investment to update existing programmes and
launch new products to ensure that this set of educational products continues to meet the needs of both
individuals and industry. This is largely funded from the use of designated funds and £737,000
expenditure was incurred on professional programmes during 2003/04.
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The British Computer Society
Trustees Report (continued)
The reduction in surplus of £370,000 from the previous year reflects the ongoing implementation costs
of the planned developments including:
• Launch of the new membership structure
• Implementation of the governance changes
• Increased support to Branches and Specialist Groups
• Developing and establishing the new Forums
• Product development including Skills Manager, SFIA plus, ISEB certificates and increasing
the ECDL portfolio
• Improvements to strengthen and increase the infrastructure and staff resources to support
these changes.
BISL, which is a 100% owned subsidiary company, achieved a surplus for 2003/2004 of £2,000
(2002/2003: £2,492) after the payment of Gift Aid from BISL to BCS of £10,335 (2002/2003: £45,000).
The performance during the year reflects the financial and operating stability achieved by BISL in
continuing to support part of the publications and conference programmes on behalf of the Society.
We are maintaining the strong financial position and operating performance that is necessary to fuel
stability and continuity to the current ambitious and realistic programme of change. Nevertheless, we
recognise that we need to maintain the operating performance close to the current level to generate
sufficient development funding - alongside the sound management and financial disciplines and
procedures we already operate. This has provided the platform for significant growth in recent years
and the Society is confident in expecting this growth to continue in future.
The healthy financial position is enabling the Society to provide the support its members require and to
develop the influence and profile required by the relatively “new” wider IT profession.
Reserves Policy
The consolidated total reserves of the Society are represented by general and designated funds. The
basis of the individual designated funds is described in note 12 of the financial statements.
The Society operates the policy of maintaining the self-financing nature of its core activities and the
retention of adequate accumulated general funds to ensure efficient operations and provide financial
stability for future development. The current level of general funds represents approximately four
months’ operating costs which is within the three to nine month target range monitored by the Society
on an annual basis. The general consolidated reserves at 30 April 2004 are £5,339,000 (2003:
£4,621,000).
Risk Management Policy
Trustee Board is responsible for the management of risks faced by the Society. Detailed considerations
of risk are delegated to the Audit Committee and PSB, who are assisted by the Senior Staff
Management team. Risks are identified, assessed and controls established on an ongoing basis,
however, a formal review of the risk management processes of the Society is undertaken on an annual
basis.
The key controls of the Society include:
• Formal structure and agendas for Trustee Board, Council, Boards and Committees
governed in line with detailed terms of reference
• Specific support to the trustees from the Audit Committee and PSB
• Comprehensive business planning, budgeting and management accounting
• Established organisational structure and lines of reporting
• Formal written policies including authorisation and approval procedures.
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The British Computer Society
Trustees Report (continued)
Through the risk management process of the Society, the trustees are satisfied that the major risks
identified have been adequately mitigated where necessary. It is recognised that systems can only
provide reasonable assurance that major risks have been adequately managed.
Investment Policy
The Society has continued the policy of recent years to hold surplus cash as bank deposits and has not
invested in higher risk equity investments. The trustees have adopted this approach, given both the
short and medium term requirements for the use of these funds, and the current economic volatility and
uncertainties. Accordingly, the Society is not exposed to any equity investment risk. During the next
financial year the Society will be reviewing the continuance of this policy as part of its routine business
processes.
Statement of the Responsibilities of the Trustees
Law applicable to charities in England and Wales requires the 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 Group
at the end of the year and of its financial activities for the year then ended. In preparing those financial
statements, the trustees are required to:
• select suitable accounting policies and then apply them consistently
• make judgements and estimates that are reasonable and prudent
• state whether applicable accounting standards have been followed, subject to any material
departures disclosed and explained in the financial statements
• prepare the financial statements on the going concern basis unless it is inappropriate to presume
that the charity and group will continue its activities.
The trustees are responsible for keeping proper accounting records which disclose with reasonable
accuracy at any time the financial position of the Society and which enable them to ensure that the
financial statements comply with the Charities Act 1993. They have general responsibility for taking
such steps as are reasonably open to them to safeguard the assets of the Society and to prevent and
detect fraud and other irregularities.
Relationships with Related Parties
Relationships with related parties are detailed in notes 10 and 16 to the financial statements.
Banking and Legal Advisers
The Society’s bankers are Lloyds TSB Bank in Swindon and Langham Place, and its solicitors are
Charles Russell of 10 New Fetter Lane, London EC4 1RS.
Auditors
A resolution for the reappointment of KPMG LLP as auditors of the Society is to be proposed at the
forthcoming Annual General Meeting.
Registered Office
The registered office of the Society is 1 Sanford Street, Swindon SN1 1HJ.
W Hall
Chair Of Trustee Board
28 July 2004
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The British Computer Society
INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF THE BRITISH
COMPUTER SOCIETY
We have audited the financial statements on pages 14 to 32.
This report is made solely to the charity’s trustees, as a body, in accordance with section 43 of the
Charities Act 1993 and regulations under section 44 of that Act. 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
The trustees are responsible for preparing the trustees’ report and, as described on page 12, the
financial statements in accordance with applicable United Kingdom law and accounting standards. Our
responsibilities, as independent auditor, are established in the United Kingdom by statute, the Auditing
Practices Board and by our profession’s ethical guidance. We have been appointed as auditors under
section 43 of the Charities Act 1993 and report in accordance with regulations made under section 44 of
that Act.
We report to you our opinion as to whether the financial statements give a true and fair view and are
properly prepared in accordance with the Charities Act. We also report to you if, in our opinion, the
trustees’ report is not consistent with the financial statements, if the charity has not kept property
accounting records, if we have not received all the information and explanations we require for our
audit, or if information specified by law is not disclosed.
We read the other information accompanying the financial statements and consider whether it is
consistent with those statements. We consider the implications for our report if we become aware of
any apparent misstatements or material inconsistencies with the financial statements.
Basis of audit opinion
We conducted our audit in accordance with Auditing Standards issued by the Auditing Practices Board.
An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in
the financial statements. It also includes an assessment of the significant estimates and judgements
made by the trustees in the preparation of the financial statements, and of whether the accounting
policies are appropriate to the Society’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations which we
considered necessary in order to provide us with sufficient evidence to give reasonable assurance that
the financial statements are free from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation
of information in the financial statements.
Opinion
In our opinion the financial statements give a true and fair view of the state of affairs of the Society and
Group as at 30 April 2004 and of the Group’s incoming resources and application of resources for the
year then ended and have been properly prepared in accordance with Bye Law 73 of the Royal Charter
and the Charities Act 1993.
KPMG LLP
Chartered Accountants
Registered Auditor
28 July 2004
100 Temple Street
Bristol
BS1 6AG
United Kingdom
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The British Computer Society
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES
(incorporating an income and expenditure account)
for the year ended 30 April 2004
Notes General Designated Total Total
Fund Funds 2004 2003
£000 £000 £000 £000
Incoming resources from operating activities in
furtherance of the Society’s objects:
Membership subscriptions 3 2,544 - 2,544 2,488
Professional programmes 4 (a) 11,140 - 11,140 9,260
Events, meetings and special projects 4 (b) 1,108 - 1,108 1,076
Publications 4 (c) 275 - 275 277
Other income 240 - 240 90
Interest receivable and exchange loss/gain 270 - 270 320
───── ───── ───── ─────
15,577 - 15,577 13,511
Less: income of joint venture (included above) 4 (c) (141) - (141) (150)
Less: income of associated undertaking (66) - (66) (15)
───── ───── ───── ─────
Total incoming resources 15,370 - 15,370 13,346
───── ───── ───── ─────
Resources expended in furtherance of the
Society’s objects:
Charitable expenditure
Professional programmes 4 (a) 10,805 737 11,542 9,705
Events, meetings and special projects 4 (b) 2,106 - 2,106 1,693
Publications 4 (c) 492 - 492 381
Management and administration of the charity 4 (d) 691 - 691 616
Less: costs of joint venture (included above) 4 (c) (7) - (7) (8)
Less: costs of associated undertaking (215) - (215) (401)
───── ───── ───── ─────
Total resources expended 13,872 737 14,609 11,986
───── ───── ───── ─────
Net incoming/(outgoing) resources 6 1,498 (737) 761 1,360
Net share of results of joint venture 4 (c) 134 - 134 142
Net share of results of associated undertaking (149) - (149) (386)
Transfer (to)/from designated funds 12 (765) 765 - -
───── ───── ───── ─────
Net incoming resources for the year 718 28 746 1,116
Balance at 1 May 2003 4,621 3,175 7,796 6,680
───── ───── ───── ─────
Balance at 30 April 2004 5,339 3,203 8,542 7,796
───── ───── ───── ─────
There is no material difference between the Group results as reported and on an unmodified historical cost
basis. Accordingly, no note of historical cost income and expenditure is included.
All funds are unrestricted income funds. All results arose from continuing activities.
The Group has no recognised gains or losses other than the net movement in funds for the year.
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The British Computer Society
Consolidated balance sheet
at 30 April 2004
Notes 2004 2003
£000 £000 £000 £000
Fixed assets
Tangible fixed assets 10 1,210 1,275
Investments 10 210 174
───── ─────
Current assets
1,420 1,449
Trade debtors 2,778 2,645
Prepayments and other debtors 228 188
Cash at bank – current holdings 1,243 1,393
– held on deposit 9,081 7,772
───── ─────
13,330 11,998
Creditors: amounts falling
due within one year
───── ─────
Members’ subscriptions received in advance (1,045) (960)
Trade creditors (423) (444)
Other creditors (2,019) (2,130)
Accruals (1,655) (928)
Deferred income (729) (872)
───── ─────
(5,871) (5,334)
───── ─────
Net current assets 7,459 6,664
───── ─────
Total assets less current liabilities 8,879 8,113
Provisions for liabilities and charges 11 (337) (317)
───── ─────
Net assets 8,542 7,796
───── ─────
Funds (unrestricted)
General fund 5,339 4,621
Designated fund 12 3,203 3,175
───── ─────
8,542 7,796
───── ─────
These financial statements were approved by Trustee Board on 28 July 2004 and signed on its behalf by:
W Hall J K Nix D Clarke
President Vice-President Finance Chief Executive
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The British Computer Society
SOCIETY STATEMENT OF FINANCIAL ACTIVITIES
(incorporating an income and expenditure account)
for the year ended 30 April 2004
Notes General Designated Total Total
Fund Funds 2004 2003
£000 £000 £000 £000
Incoming resources from operating
activities in furtherance of the Society’s
objects:
Membership subscriptions 3 2,544 - 2,544 2,488
Professional programmes 4 (e) 11,074 - 11,074 9,250
Events, meetings and special projects 4 (f) 1,092 - 1,092 1,054
Publications 4 (g) 128 - 128 109
Other income 265 - 265 116
Interest receivable and exchange loss/gain 8 268 - 268 319
───── ───── ───── ─────
15,371 - 15,371 13,336
Income receivable from joint venture 4(g) 134 - 134 142
───── ───── ───── ─────
Total incoming resources 15,505 - 15,505 13,478
───── ───── ───── ─────
Resources expended in furtherance of
the Society’s objects:
Charitable expenditure
Professional programmes 4 (e) 10,590 737 11,327 9,304
Events, meetings and special projects 4 (f) 2,071 - 2,071 1,663
Publications 4 (g) 520 - 520 373
Management and administration of the charity 4 (h) 695 - 695 638
───── ───── ───── ─────
Total resources expended 13,876 737 14,613 11,978
───── ───── ───── ─────
Net incoming/(outgoing) resources 6 1,629 (737) 892 1,500
Transfer (to)/from designated funds 12 (765) 765 - -
───── ───── ───── ─────
Net incoming resources for the year 864 28 892 1,500
Balance at 1 May 2003 4,970 3,175 8,145 6,645
───── ───── ───── ─────
Balance at 30 April 2004 5,834 3,203 9,037 8,145
───── ───── ───── ─────
There is no material difference between the Society’s results as reported and on an unmodified historical
cost basis. Accordingly, no note of historical cost income and expenditure is included.
All funds are unrestricted income funds. All results arose from continuing activities.
The Society has no recognised gains or losses other than the net movement in funds for the year.
16 of 32

The British Computer Society
Society balance sheet
at 30 April 2004
Note
s
2004 2003
£000 £000 £000 £000
Fixed assets
Tangible fixed assets 10 1,210 1,275
Investments 10 745 560
───── ─────
1,955 1,835
Current assets
Trade debtors 2,756 2,622
Amounts due from Group undertakings 25 -
Prepayments and other debtors 228 173
Cash at bank – current holdings 1,105 1,323
– held on deposit 9,081 7,772
───── ─────
13,195 11,890
───── ─────
Creditors: amounts falling
due within one year
Members’ subscriptions received in advance (1,045) (960)
Trade creditors (423) (439)
Amounts due to Group Undertakings - (36)
Other creditors (1,490) (1,752)
Accruals (2,089) (1,204)
Deferred income (729) (872)
───── ─────
(5,776) (5,263)
───── ─────
Net current assets 7,419 6,627
───── ─────
Total assets less current liabilities 9,374 8,462
Provisions for liabilities and charges 11 (337) (317)
───── ─────
Net assets 9,037 8,145
───── ─────
Funds (unrestricted)
General fund 5,834 4,970
Designated fund 12 3,203 3,175
───── ─────
9,037 8,145
───── ─────
These financial statements were approved by Trustee Board on 28 July 2004 and signed on its behalf by:
W Hall J K Nix D Clarke
President Vice-President Finance Chief Executive
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The British Computer Society
CONSOLIDATED CASH FLOW STATEMENT
for the year ended 30 April 2004
Net cash inflow from operating activities
Notes 2004 2003
(a)
£000 £000 £000 £000
Net cash inflow on investments and servicing of
finance
Interest received 294 320
1,251
Capital expenditure and financial investment
Payments to acquire tangible fixed assets (186) (294)
Income receivable from joint venture 134 142
Share of costs in associated undertaking (149) (386)
Net cash outflow from capital
───── ─────
expenditure and financial investment
(201)
Acquisitions and disposals
Investment in associated undertaking and loans (185) (510)
───── ─────
Net cash inflow before management of liquid
1,159 1,462
resources
Net increase in short term deposits (b) (1,309) (2,104)
───── ─────
Decrease in cash (b) (150) (642)
───── ─────
(a) Reconciliation of changes in resources to net cash inflow from operating activities
2,190
(538)
2004 2003
£000 £000
Net incoming resources before transfers and interest in joint
ventures
761
1,360
Interest receivable and exchange loss (294) (320)
───── ─────
467 1,040
Depreciation
251
279
Increase in debtors (173) (621)
Increase in creditors 686 1,473
Increase in provisions for liabilities and charges 20 19
───── ─────
Net cash inflow from operating activities 1,251 2,190
───── ─────
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The British Computer Society
Consolidated cash flow statement (continued)
(b) Analysis of changes in net funds
At 1 May Cash flow At 30 April
2003
2004
£000 £000 £000
Cash at bank and in hand 1,393 (150) 1,243
Current asset investments – cash held on deposit 7,772 1,309 9,081
Total net funds 9,165 1,159 10,324
`
(c) Statement of changes in resources applied for fixed assets for charity use (Group):
2004
£000
2003
£000
Net incoming resources for the year 746 1,116
Resources used for net acquisitions of tangible fixed assets 65 (15)
Resources used for net acquisitions of associated undertaking (185) (510)
Net incoming resources available for future activities 626 591
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The British Computer Society
NOTES
(forming part of the financial statements)
1 Status of the Society
The Society is incorporated by Royal Charter and is a registered charity.
2 Accounting policies
The following accounting policies have been applied consistently with the items which are
considered material in relation to the Society’s financial statements.
Basis of preparation
These statements have been prepared in accordance with applicable accounting standards and
under the historical cost accounting rules. They have been prepared in accordance with the
Statement of Recommended Practice “Accounting and Reporting by Charities” (SORP 2000), and
the Society’s bye laws.
The consolidated financial statements incorporate the accounts of the Society and its subsidiaries,
British Informatics Society Limited, Information Systems Examinations Board Limited and BCS
(ITEXT) Limited, for the year ended 30 April 2004.
Basis of consolidation
These statements consolidate the results of the Society and its wholly owned subsidiary British
Informatics Society Limited (BISL) on a line by line basis made up to 30 April 2004.
The acquisition method of accounting has been adopted. Under this method, the results of
subsidiary undertakings acquired or disposed of in the year are included in the consolidated
statement of financial activities from the date of acquisition or up to the date of disposal.
An associate is an undertaking in which the Group has a long-term interest, usually from 20% to
50% of the equity voting rights, and over which it exercises significant influence. A joint venture is
an undertaking in which the Group has a long-term interest and over which it exercises joint control.
The Group’s share of the profits less losses of associates and of joint ventures is included in the
consolidated statement of financial activities and its interest in their net assets/liabilities, (other than
goodwill), is included in investments in the consolidated balance sheet.
Fund accounting
General funds comprise accumulated unrestricted surpluses and deficits on general funds and are
available for use at the discretion of the trustees in furtherance of the objects of the charity.
Designated funds represent earmarked funds allocated by the trustees from the general funds for
specific purposes for which no binding commitment has been established at the time the financial
statements are prepared. Details of each designated fund are disclosed in note 12 to the financial
statements.
The Society has no restricted funds. Restricted funds are funds subject to specific instructions by
the donor, but still within the objects of the Society.
Incoming resources
Incoming resources are reported gross and the statement of financial activities recognises all
incoming resources receivable during the year after adjustments for any deferred income which is
included in the balance sheet as creditors.
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The British Computer Society
Notes (continued)
2 Accounting policies (continued)
Membership subscription income is accounted on an accruals basis and represents only that part of
the subscription which relates to the financial year in which it is paid.
Life membership is accounted for on an accruals basis and released into the Statement of Financial
Activities over ten years.
Resources expended
Resources expended are shown gross and an accruals adjustment has been made for all known
liabilities at the year end.
Direct costs are allocated on an actual basis to the relevant expense heading.
Central overheads are reallocated to the relevant expense heading on the basis of staff numbers
engaged in the relevant activity. The remaining management and administration costs comprise
costs of the management of the charity’s assets, organisational management and administration,
and compliance with constitutional and statutory requirements.
Provisions for liabilities and charges
Provisions are accrued at the balance sheet date for dilapidations in respect of current lease
obligations.
Foreign Currencies
Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the
transaction. Monetary assets and liabilities denominated in foreign currencies are translated using
the contracted rate or the rate of exchange ruling at the balance sheet date and the gains or losses
on translation are included in the statement of financial activities.
Taxation
The Society is a registered charity and under s505 ICTA 1988 is not subject to taxation on its
charitable activities.
The profits of the non-charitable subsidiary are normally gift aided to the parent Society any surplus
remaining is subject to a taxation charge. The charge for taxation is based on the result for the
year. Deferred tax is recognised without discounting, in respect of all timing differences between the
treatment of certain items for taxation and accounting purposes which have arisen but not covered
by the balance sheet date, except as otherwise required by FRS 19.
Operating leases
The cost of operating leases is charged to the revenue account over the period to which they relate.
Fixed Assets and depreciation
Tangible fixed assets are stated at cost less accumulated depreciation.
A provision is made for depreciation at a rate based on the estimated useful life of each class of
asset. The rates currently in use are as follows:
Office equipment - 25% per annum on cost
Fixtures & fittings - 10% per annum on cost
Computer equipment - 33% per annum on cost
Long leasehold buildings - 2% per annum on cost
21 of 32

The British Computer Society
Notes (continued)
2 Accounting policies (continued)
Investments
Investments in subsidiary, associate and joint venture undertakings are carried in the balance sheet
of the Society at cost, less any provisions for diminution in value.
Pensions
The Society operates a defined contribution pension scheme. The assets of the scheme are held
separately from those of the Society in an independently administered fund. The amount charged to
the Statement of Financial Activities represents the contributions payable to the scheme in respect
of the accounting period.
3 Membership subscriptions
Group and Society
2004 2003
£000 £000
Subscriptions received during year 2,653 2,557
Adjustments for subscriptions received
in advance
(109) (69)
──── ────
Net subscription income 2,544 2,488
──── ────
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The British Computer Society
Notes (continued)
4 Incoming resources and resources expended
Group Income Staff
costs
Other
direct
costs
Central
overheads
Charitable
expenditure
Surplus/
(deficit)
2004
Surplus/
(deficit)
2003
£000 £000 £000 £000 £000 £000 £000
4 (a) Professional
programmes
Professional development 379 213 234 246 693 (314) (258)
Examinations 10,543 1,516 4,694 1,692 7,902 2,641 2,205
Professional formation 218 607 533 736 1,876 (1,658) (1,746)
Professional affairs - 119 86 129 334 (334) (145)
───── ──── ──── ───── ───── ───── ─────
11,140 2,455 5,547 2,803 10,805 335 56
───── ──── ──── ───── ───── ───── ─────
4 (b) Events, meetings and special projects
Specialist Groups 927 105 1,090 129 1,324 (397) (135)
Branches 46 30 184 103 317 (271) (166)
Conferences/seminars 122 - 111 - 111 11 (4)
External relations - 127 111 103 341 (341) (308)
Awards schemes 13 - 13 - 13 - (4)
───── ──── ──── ───── ───── ───── ─────
1,108 262 1,509 335 2,106 (998) (617)
───── ──── ──── ───── ───── ───── ─────
4 (c) Publications
Journals and books 134 186 94 103 383 (249) (114)
Computer Bulletin - - 102 - 102 (102) (132)
Share of joint venture 141 - 7 - 7 134 142
───── ──── ──── ───── ───── ───── ─────
275 186 203 103 492 (217) (104)
───── ──── ──── ───── ───── ───── ─────
4 (d) Other expenditure
Management and
administration of the
charity
- 1,709 2,223 (3,241)
- (691) (616)
──── ──── ──── ───── ──── ───── ─────
Total expenditure 2004 4,612 9,482
──── ────
Total expenditure 2003 3,608 8,286
──── ────
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The British Computer Society
Notes (continued)
4 Incoming resources and resources expended (continued)
Society Income Staff
costs
Other
direct
costs
Central
overheads
Charitable
expenditure
Surplus/
(deficit)
2004
Surplus/
(deficit)
2003
£000 £000 £000 £000 £000 £000 £000
4 (e) Professional programmes
Professional development 379 213 234 246 693 (314) (254)
Examinations 10,477 1,516 4,479 1,692 7,687 2,790 2,639
Professional formation 218 607 533 736 1,876 (1,658) (1,793)
Professional affairs - 119 86 129 334 (334) (145)
───── ──── ──── ───── ───── ─────
11,074 2,455 5,332 2,803 10,590 484 447
───── ──── ──── ───── ───── ───── ─────
4 (f) Events, meetings and special projects
Specialist Groups 927 105 1,090 129 1,324 (397) (135)
Branches 45 30 184 103 317 (272) (166)
Conferences/seminars 106 - 75 - 75 31 4
External relations - 127 111 103 341 (341) (308)
Awards schemes 14 - 14 - 14 - (4)
───── ──── ──── ───── ───── ───── ─────
1,092 262 1,474 335 2,071 (979) (609)
───── ──── ──── ───── ───── ───── ─────
4 (g) Publications
Journals and books 128 186 129 103 418 (290) (132)
Computer Bulletin - - 102 - 102 (102) (132)
───── ──── ──── ───── ───── ───── ─────
128 186 231 103 520 (392) (264)
Share of joint venture 134 - - - - 134 142
───── ──── ──── ───── ───── ───── ────
262 186 231 103
520 (258) (122)
4 (h) Other expenditure
───── ──── ──── ───── ───── ───── ─────
Management and
administration of the
charity
- 1,709 2,227 (3241)
- (695) (638)
──── ──── ──── ───── ──── ───── ─────
Total expenditure 2004 4,612 9,264
──── ────
Total expenditure 2003 3,608 7,869
──── ────
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The British Computer Society
Notes (continued)
5 Other direct costs
Group Society
2004 2003 2004 2003
£000 £000 £000 £000
Office costs 1,234 887 1,238 909
Premises costs 509 619 509 619
Depreciation 251 279 251 279
Other administrative costs 229 101 229 101
───── ───── ───── ─────
2,223 1,886 2,227 1,908
───── ───── ───── ─────
6 Net incoming resources
Group Society
2004 2003 2004 2003
£000 £000 £000 £000
Net incoming resources is stated after
charging:
Auditors’ remuneration:
Audit 29 26 25 24
Taxation advice 4 5 2 2
Other services 6 - 5 (3)
Depreciation and other amounts written off owned 251 279 251 279
tangible fixed assets
Hire of plant and machinery - rentals payable
under operating leases
78 85 78 85
and after crediting:
Rent receivable 33 31 33 31
7 Staff numbers and costs
The average number of employees employed by the Group during the year was 164 (2003:140).
The aggregate payroll costs of these persons were as follows:
Group and Society
2004 2003
£000 £000
Wages and salaries 4,023 3,174
Social security costs 356 282
Other pension costs (see note 15) 233 152
───── ─────
4,612 3,608
───── ─────
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The British Computer Society
Notes (continued)
7 Staff numbers and costs (continued)
Remuneration of Trustees
No trustees have received any form of remuneration for their services provided to the Society or its
subsidiary undertakings. During the year 36 (2003: 36) trustees were reimbursed for expenses of
£51,700 (2003: £47,079) incurred for undertaking their duties and attending meetings on behalf of
the Society.
Employees
The number of employees whose emoluments for the year fell within each of the following bands is
as follows:
2004 2003
£120,000 - 129,999 1 1
£80,000 - 89,999 1 1
£70,000 - 79,999 3 1
£60,000 - 69,999 1 4
£50,000 - 59,999 2 1
The above analysis of emoluments excludes pension contributions of £44,171 (2003: £29,876) in
respect of 8 (2003: 8) employees.
8 Interest receivable and exchange (loss)/gain
Group
2004 2003
£000 £000
Interest receivable on bank balances 294 280
Exchange (loss)/gain (24) 40
───── ─────
270 320
───── ─────
The above interest and exchange loss/gain arose as follows:
Head Office 227 276
Specialist Groups 35 37
Branches 6 6
Subsidiary Undertaking 2 1
───── ─────
270 320
───── ─────
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The British Computer Society
Notes (continued)
8 Interest receivable and exchange (loss)/gain (continued)
Society
2004 2003
£000 £000
Interest receivable on bank balances 292 279
Exchange (loss)/gain (24) 40
───── ─────
268 319
───── ─────
The above interest and exchange (loss)/gain arose as follows:
Head Office 227 276
Specialist Groups 35 37
Branches 6 6
───── ─────
268 319
───── ─────
9 Taxation
There is no UK corporation tax due for either years ended 30 April 2004 or 30 April 2003. The Society
is not liable to corporation tax on its primary charitable activities. No tax is payable by its subsidiaries
as any profits are gifted to the Society.
There is no provided or unprovided deferred taxation liability at 30 April 2003. There is a deferred
tax asset at 30 April 2004 of £1,828 (2003: £2,208), which has not been recognised, arising in
respect of timing differences on assets qualifying for capital allowances.
10 Fixed assets
a) Tangible fixed assets:
Group Long
leasehold land
and buildings
Office
equipment
Fixtures and
fittings Total
£000 £000 £000 £000
Cost
At 1 May 2003 1,017 1,581 557 3,155
Additions during the year - 160 26 186
───── ───── ───── ─────
At 30 April 2004 1,017 1,741 583 3,341
───── ───── ───── ─────
Depreciation
At 1 May 2003 196 1,317 367 1,880
Charged during the year 20 200 31 251
───── ───── ───── ─────
At 30 April 2004 216 1,517 398 2,131
───── ───── ───── ─────
Net book value
At 30 April 2004 801 224 185 1,210
───── ───── ───── ─────
At 1 May 2003 821 264 190 1,275
───── ───── ───── ─────
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The British Computer Society
Notes (continued)
10 Fixed assets (continued)
Society Long
leasehold
land
Office
Equipment
Fixtures and
fittings
Total
and buildings
£000 £000 £000 £000
Cost
At 1 May 2003 1,017 1,225 545 2,787
Additions during the year - 160 26 186
At 30 April 2004
─────
1,017
─────
1,385
─────
571
─────
2,973
Depreciation
───── ───── ───── ─────
At 1 May 2003 196 961 355 1,512
Charged during the year 20 200 31 251
At 30 April 2004
─────
216
─────
1,161
─────
386
─────
1,763
Net book value
───── ───── ───── ─────
At 30 April 2004 801 224 185 1,210
At 1 May 2003
─────
821
─────
264
─────
190
─────
1,275
───── ───── ───── ─────
Part of the premises at 1 Sanford Street, which constitute land and buildings, is leased out under an
operating lease.
The fixed assets are held for charitable activities.
b) Investments:
Society
2004 2003
£000 £000
Investment in subsidiary undertakings - -
───── ─────
The investment in subsidiary undertakings at cost represents 100% of the issued ordinary share
capital, being 2 £1 ordinary shares, in each of British Informatics Society Limited and BCS ITEXT
Limited. The principal activities of British Informatics Society Limited are publications, conferences
and managing consultancy projects whereas BCS ITEXT Limited is a dormant company. Both
subsidiaries are incorporated and registered in England and Wales. During the year ended 30 April
2004 the turnover of British Informatics Society Limited was £104,936 (2003: £114,645). The
company had pre tax profits of £12,335 (2003: £47,492) of which £10,335 (2003: £45,000) was
distributed to the Society under gift aid.
The Society owns 100% (50% directly and 50% through British Informatics Society Limited) of
Information Systems Examinations Board Limited, a company limited by guarantee. The company
is incorporated and registered in England and Wales and is jointly guaranteed by The British
Computer Society and British Informatics Society Limited. The company is dormant and does not
trade.
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The British Computer Society
Notes (continued)
10 Fixed assets (continued)
Group 2004 2003
£000 £000
Investment in joint venture:
- share of gross assets 4 4
- share of gross liabilities (3) (3)
───── ─────
1 1
Investment in associated company 49 49
Loan to associate company 160 124
───── ─────
210 174
───── ─────
Society 2004 2003
£000 £000
Investment in joint venture:
- share of gross assets 4 4
- share of gross liabilities (3) (3)
───── ─────
1 1
Investment in associated company 49 49
Loan to associate company 695 510
───── ─────
745 560
───── ─────
The investment in joint venture represents 50 £1 ordinary shares, being 50% of the issued ordinary
share capital, and £900 of £1 preference shares of ITEXT Limited. The principal activities of ITEXT
Limited are the production of publications. ITEXT Limited is incorporated and registered in England
and Wales. The undertaking covenants all its pre-tax profits to its shareholders and is therefore
valued at cost.
The investment in associated company represents 49,000 £1 ordinary shares, being 49% of the
issued ordinary share capital of International Computer Driving Licence Asia Pacific Limited (ICDL-
AP).
During the year BCS increased the unsecured loan to ICDL-AP which is repayable on 31 December
2006 and is guaranteed by a debenture on the assets of ICDL-AP from £510,000 to £695,000. The
interest rate on this loan is at 1% over base rate and will be charged annually in arrears. The
principal activity of ICDL-AP is the launch of the ECDL concept on an international basis, namely,
the International Computer Driving Licence. ICDL-AP was incorporated and registered in England &
Wales on 2 April 2001 and commenced trading in January 2003.
Other investments:
The Society is a member of the European Computer Driving Licence Foundation Limited (ECDL-F).
ECDL-F is a company limited by guarantee, incorporated in Ireland, and the Society has guaranteed
an amount not exceeding £1.
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The British Computer Society
Notes (continued)
11 Provisions for liabilities and charges
Group and Society Dilapidation
provision
£000
Balance at 1 May 2003 317
Provided 20
─────
Balance at 30 April 2004 337
─────
12 Designated funds
Balance at
1 May 2003
Group and Society
The accumulated funds of the charity include the following designated funds which have been set
aside out of the above unrestricted funds by the trustees for specific purposes.
Building
Fund
KSB Fund
Strategic
Development
Fund
QSB Fund
PSB Fund
ECDL Fund
Charitable
Fund
£000 £000 £000 £000 £000 £000 £000 £000 £000 £000 £000
898
116
964
79
New designations (20) 25 195 100 125 172 10 96 12 50 765
Expenditure - (24) (399) (27) (50) (105) (10) (92) (30) - (737)
Transfers - (60) - (115) 175 - - - - - -
──── ──── ──── ──── ──── ─── ─── ──── ─── ─── ───
Movement in year (20) (59) (204) (42) 250 67 - 4 (18) 50 28
──── ──── ──── ──── ──── ─── ─── ──── ─── ─── ───
Balance at
30 April 2004
-
413
312
MSB Fund
199
ERB Fund
89
Forums
105
Total
3,175
878 57 760 37 250 480 312 203 71 155 3,203
──── ──── ──── ──── ──── ─── ─── ──── ─── ─── ────
The Building fund was set aside for the purchase of premises at 1 Sanford Street. These premises
were purchased during the year ended 30 April 1994 and are being depreciated over a period of 50
years. The fund is being released on an equivalent annual basis to the accumulated fund by an
amount equal to the depreciation charge on the premises.
The Knowledge Services Board (KSB) fund represents the funds earmarked in 1992 to ensure
ongoing support to the development of both written and electronic communication by the Society.
The Strategic Development fund was established by the trustees in 1996 to identify funds available
within the accumulated reserves to fund initiatives under the control of the Policy and Resources
Committee. The current key initiatives include the Web Initiative, Programme 2000 and the Branding
launch.
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The British Computer Society
Notes (continued)
12 Designated funds (continued)
The Qualifications & Standards Board (QSB) fund and Products and Services Board (PSB) fund
represent funds earmarked by the trustees to support projects required to update and develop new
products and services which are tailored to enhancing and promoting IT professionalism.
The ECDL fund was established to earmark funds required to support the ongoing development of
this qualification. Currently development includes automated testing.
The External Relations Board (ERB) fund has been established to promote special projects to raise
the profile of both the Society and membership with Society at large – including employers,
government and the general public.
Separate funds have been established to promote new activities being undertaken following the
launch of each of the three forums – Engineering & Technology, Education & Training and
Management.
The Council of the Society approved the establishment of a designated charitable fund to record
and monitor the use of funds on special issues. These are not restricted funds.
The Member Services Board (MSB) fund has been established by the trustees to promote Specialist
Group, Branch, International and YPG activities respectively.
13 Operating leases
In the following accounting period the Group and Society are committed to the following payments in
respect of operating leases:
2004 2003
Land & Other Land & Other
Buildings
Buildings
£000 £000 £000 £000
Expiring within 1 year - 2 - 4
Expiring within 2 to 5 years inclusive 114 69 114 48
Expiring after more than 5 years 91 - 69 -
───── ───── ───── ─────
205 71 183 52
───── ───── ───── ─────
14 Capital commitments
There were no capital commitments at 30 April 2004 and 30 April 2003.
15 Pensions
The Group operates two pension schemes arranged through Standard Life and Scottish Widows.
Both schemes invest contributions individually in the name of each scheme member. Members
receive individual valuations of their own fund on an annual basis.
The Standard Life scheme is a defined contribution arrangement to which the member and the
employer contribute 2- 9% of scheme earnings. The Group recognises the cost of contributions
when they fall due. The pension costs charge for the year represents contributions by the Society to
the fund and amount to £233,206 (2003: 152,391). There are no outstanding or prepaid
contributions at the balance sheet date.
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The British Computer Society
Notes (continued)
15 Pensions (continued)
The Scottish Widows scheme is a non-contributory defined contribution scheme which has been
closed to new members. It is the policy to account for contributions in line with actuarial advice. At
the year end a provision of £120,000 (2003: £98,000) has been included within accruals.
16 Related party disclosures
The transactions between the Society and ITEXT Limited, the joint venture referred to in note 10,
are as follows:
i) The Society received income during the year of £133,799 (2003: £141,871) being the
covenanted 50% share of the pre tax profits of ITEXT Limited; and
ii) The Society purchased publications of £102,400 (2003: £131,949) from ITEXT Limited.
The British Computer Society own 49% of the share capital of the International Computer Driving
License Asia Pacific Limited (ICDL-AP). A management agreement was put in place on 17
December 2001 setting out the services BCS will provide to ICDL-AP. As at 30 April 2004 BCS
had not charged for any services.
17 Operating result of subsidiary company
The wholly-owned trading subsidiary British Informatics Society Limited (BISL), which is
incorporated in the United Kingdom, pays its profits to the Society by gift aid. BISL undertakes
publications, event and conference activities on behalf of the Society. The Society owns the entire
issued share capital of two ordinary shares of £1 each. A summary of the trading results is
shown below:
Summary profit and loss account 2004 2003
£000 £000
Turnover 105 114
Cost of sales and administrative expenses (94) (68)
Interest receivable 1 1
───── ─────
Net profit 12 47
Amount gifted to the Society (10) (45)
───── ─────
Retained in the subsidiary 2 2
───── ─────
The assets and liabilities of the subsidiary were:
Current assets 160 147
Creditors: amounts falling due with one year (120) 109
───── ─────
Total net assets 40 38
───── ─────
Aggregate share capital and reserves 40 38
───── ─────
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