2007 annual review by PhySoc

The Physiological Society Annual Report and Accounts for the year ended 31 December 2007

Annual Report and Accounts for the year ended 31 December 2007

Review of the year

Prize and Plenary Lectures

Governance

Objects and activities

Benevolent Fund

History & Archives Committee

Financial review

Treasurer’s statement

Independent auditor’s report

Statement of financial activities

Balance sheet

Cash flow statement

Standing information

This is the Trustees’ Annual Report and Accounts for the year ended 31 December 2007 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.

Review of the year

Review of the year I am happy to report that 2007 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. Our strong financial position allows us to carry out our activities, supporting physiology education and research, which ultimately benefit healthcare and underpin the prevention and treatment of disease. I would like to thank the Trustees for their hard work throughout the year, in particular Ole Petersen and Ian McGrath who will be standing down as President and Chair of the Executive Committee, respectively, in 2008. 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. Mike Collis, Chief Executive

The year in focus Publishing high quality research papers and disseminating advances in scientific knowledge is a major activity of The Society. Our two journals are frequently cited and highly regarded by the scientific community and both showed an increase in impact factor and in downloads (36% for The Journal of Physiology and 70% for Experimental Physiology) in 2007.

discoveries. In 2007 we held our main meeting in conjunction with the Biochemical Society and the British Pharmacological Society. The translation of basic science discoveries into benefits to health requires collaboration between biologists with a range of expertise and specialisation and the joint meeting reflected this admirably.

The 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 both journals and free or low cost access to the journals has increased by an impressive 33% in 2007.

We also organised four focused scientific meetings in the UK and a joint international meeting with the Slovak Physiological Society and FEPS. International workshops were held in Krakow and Yaremche to promote the involvement of young physiologists worldwide.

The Society runs a variety of scientific meetings, providing an ideal environment for scientists to share information and discuss new

A new initiative was the first in a series of public workshops focusing on the contribution of physiology to translational research, Cystic fibrosis: latest advances in medical research and 4

Review of the year

Where our money has gone (£2.9m)

Where our money came from (£3.3m)

Events 17%

Membership services 9%

Publications 81%

Publications 51%

Other income <1% Events and education 2%

Membership subscriptions 4%

Investment income 13%

Investment fees 1%

Governance 7%

Education 11%

External relations 4%

implications for patients and their families, which we organised in partnership with EuroCareCF.

distribution of our free DVD for schools, Animal research: make up your own mind.

The expansion of our membership base to a wider range of physiologists remains an important target for The Society. During 2007 our membership increased to 2,683. We introduced new membership categories for non-academics who use physiology in their jobs, such as those working in health and wellbeing, and for undergraduate students. We also encouraged teachers in schools and universities to join and participate actively in our meetings.

Where appropriate, we work with other learned societies. We are active supporters of the Biosciences Federation and collaborate with other member organisations on educational and careers events, enhancing public awareness of science, especially on animal research issues and science policy matters. Our income in 2007 was £3.29 million, virtually the same as in 2006. Expenditure reflected our charitable objectives with publications, scientific events, membership services and education accounting for 88%. We have reviewed our procedures and governance throughout the year. Future financial scenarios for The Society have been modelled and we set up a working group to examine new income sources.

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 enthuse the next generation of physiologists by supporting education in schools, universities and research institutes, providing resources, practical training courses and careers advice. A highlight of 2007 was the successful launch and

The Society has built up healthy reserves to fund future major commitments such as the 2013 IUPS meeting and to provide an income for The Society if our publishing income is 5

Review of the year

reduced by open access. A Publications Committee has been set up to oversee this important aspect of our activities and our major income source.

membership applications and provide more information about our activities. The governance of The Society will be updated with the combination of the roles of Chair of the Executive Committee and President, giving a clearer line of authority and responsibility. Our meetings will be organised within scientific themes to allow all Members to have regular opportunities to present their work and there will be a greater emphasis on teaching and education.

An important infrastructure activity throughout the year has been the development of a new website, which will go live in 2008.

The year to come In 2008 we will continue to build on our range of charitable activities and will strive to be more cost-effective in our operations. Both our journals will be seeking to increase the quality of papers they publish with further increases in impact factor.

The international focus in 2008 will be on China with a joint meeting, a workshop and a Journal of Physiology symposium in that important centre of developing science.

Experimental Physiology celebrates its centenary in 2008 and there will be a number of events and activities throughout the year to celebrate this milestone. It will move to monthly online publication, increasing the speed with which its papers are made available to the scientific community. We will review our publication processes seeking increased efficiency to allow more of our income to be spent on charitable activities.

KEY ACHIEVEMENTS IN 2007 Increase in the impact factor of both journals Successful organisation of LifeSciences 2007 and four focused meetings in the UK

A major new initiative in education is the development of PHILTER (Physiologists’ Image Library and Teaching Resource), a webbased, educational resource for university teachers. We will run more events for schools and the general public such as Fit4Life which encourages family participation in exercise and sports and a follow-up event on cystic fibrosis at the BA Festival of Science.

Collaboration with colleagues to produce three high quality international meetings Support to two Young Physiologists’ Symposia and three techniques workshops A rise in membership to 2,683 Public workshop on physiology research and cystic fibrosis

We will continue our drive to expand membership, particularly at undergraduate level. The launch of our new website will streamline processes for grant and

Revision of The Society’s governance structure 6

Prize and Plenary Lectures

Prize and Plenary Lectures supported by The Society in 2007 Annual Review Prize Lecture Thomas Bolton (St George’s Hospital, London, UK) Smooth muscle excitation

Michael de Burgh Daly Prize Lecture Michael J Joyner (Mayo Clinic College of Medicine, USA) A sympathetic view of the sympathetic nervous system and human blood pressure regulation

Paton Prize Lecture Denis Noble (University of Oxford, UK) Claude Bernard, the first systems biologist, and the future of physiology

G L Brown Prize Lecture Nina Balthasar (University of Bristol, UK) Feeding signals to the hungry mind

UK/Australian Visiting Lectureship David Allen (University of Sydney, Australia) Invited Society Lecture in Bratislava Ian McGrath (University of Glasgow, UK) Regulation of all cell types in blood vessels by catecholamines? 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.

Plenary and Prize Lecturers in 2007: (clockwise from top left) Thomas Bolton, Michael Joyner, Nina Balthasar, Ian McGrath, David Allen, Denis Noble

Prize Lectures play an important role in The Society’s commitment to advancing and promoting the physiological sciences. 7

Governance

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

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 those 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 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

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.

Council of Trustees The Trustees are legally responsible for the overall governance, management and policy of The Society, ensuring that the charitable objectives 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. 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.

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.

Trustees’ responsibilities

Trustee induction and training

Company law requires the Council of Trustees to prepare financial statements for each

On appointment each Trustee is sent a handbook which includes Charity Commission 8

Governance

leaflet CC3 and Companies House leaflet GBA1. In 2007, one Trustee attended a Charity Finance Directors’ Group training course.

External Relations Policy, History & Archives, Meetings, Nominations, and Publications. The main working groups are Alternative Income, Grants, and Membership.

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.

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 London office provides central direction for all aspects of policy and strategy implementation. The office in Cambridge supports the publishing activities of The Society, including The Journal of Physiology and Experimental Physiology.

Executive committee The Executive Committee oversees the dayto-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.

Annual General Meeting The Society’s Annual General Meeting, open to all Ordinary and Honorary Members, was held on 11 July 2007 at the Scottish Exhibition and Conference Centre during the LifeSciences meeting in Glasgow. Minutes of the meeting are available on The Society’s website.

The Executive Committee in 2007 comprised Ole Petersen (President), Ian McGrath (Chair), Clive Orchard (Vice-Chair), Graham McGeown (Treasurer), Prem Kumar (Meetings Secretary), David Eisner (International Secretary) and William Large (Editor-in-Chief, The Journal of Physiology).

Risk management The Trustees continuously review potential risks to The Society. The Audit & Risk committee reviews the effectiveness of internal financial controls and risk management systems, the effectiveness of our internal audit function and the clarity and completeness of disclosures in the financial statements of The Society.

Committees and working groups The Council also has committees and working groups to which it delegates powers, and these groups report back to the Council via the Executive Committee. Membership of these committees and working groups is drawn from the Council but can also include other invited members. Committees are aligned with the various functional groups in the London and Cambridge offices. The main committees are Audit & Risk, Education,

The main area of identified risk is the potential reduction in publishing income that may be caused by open access. We are working with Wiley-Blackwell to assess the risk to income so as to ensure that The Society has preventative measures in place. 9

Objects and activities

Objects and activities The Journal of Physiology

The Physiological Society’s objects, as laid down in the Memorandum of Association, 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.’

In 2007 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. Twenty-four 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.

The major activities we undertake to achieve our charitable objects are: • • • • • •

The impact factor, a measure for ranking journals according to the number of times their articles are cited in later publications, increased to 4.407, and The Journal moved from 11th to 10th in the physiology list. The half life of articles remained high at 9.1 years.

Publishing Events Membership services Education External relations Resources, administration and infrastructure

Six symposia were sponsored at international meetings in the USA and Australia. Changes in Editorial Board structure were introduced to help achieve a key goal of reducing the acceptance rate by accepting only those papers likely to make a significant impact in the field. A new Techniques for Physiology section will be introduced in January 2008.

Publishing To maximise the value of publication activities to The Society and to the wider physiological community

In the coming year 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.

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.

Experimental Physiology In 2007 submissions to Experimental Physiology rose by 40%. In order to maintain the high standard of published articles and reinforce 10

Objects and activities

the remit of the journal, a stricter triage policy was adopted and the rejection rate increased. Competitive review turnaround times were maintained. The impact factor rose by 13.5% to 2.339 and Experimental Physiology moved from 41st to 34th in the physiology list.

Festschrift for K Michael Spyer in March and a symposium at The Societyâ&#x20AC;&#x2122;s main meeting in Cambridge in July, when a celebratory dinner for past Chairmen of the Editorial Board will be held. Physiology News

Six issues were published containing Research Papers, Lectures, Hot Topic Reviews, Review Articles, five sets of Symposium Reports and one set of Themed Issue Papers. Viewpoints, a new article type highlighting selected papers, was introduced. Experimental Physiology was promoted at a number of scientific meetings including Experimental Biology 2007. The US profile was successfully raised, with submissions from the US increasing from 14% to 21% of the total. In 2008 Experimental Physiology will celebrate its centenary. From January the journal will be published monthly online, with print issues continuing to be produced bimonthly. Special centenary branding has been commissioned, and an updated history of the journal and a series of Historical Perspective Articles will be published. The journal will also sponsor a

The quarterly magazine continued to promote physiology by publishing news, views and articles prepared by Members and other physiologists, as well as providing information on Society and other related activities. Soapbox and From the Archives were introduced as new regular features and the 25th anniversary year in 2008 will see an enhanced web presence. Proceedings of The Physiological Society Nearly 700 general abstracts and 230 symposium abstracts from the LifeSciences meeting were published as Proc LifeSciences. Abstracts from Society meetings held in Edinburgh, Belfast, Manchester and Bristol were also published. Abstracts are reviewed, but corrections are not allowed after the submission period closes

Objects and activities

(except in response to ethical omissions). A submitted abstract may be ‘Accepted as submitted’, ‘Accepted as title only’ or ‘Rejected’. This has resulted in a shorter period from abstract submission to the meeting, something that is welcomed by all. Key achievements in 2007 • Increase in the impact factor of both journals • Journal of Physiology sponsorship of six successful symposia at major international meetings and publication of the proceedings as high-quality reviews • 40% increase in submissions for Experimental Physiology

LifeSciences 2007 welcome reception at Kelvingrove Art Gallery & Museum

and comprised 62 symposia, seven plenary and prize lectures, and over 600 free communications.

Key goals for 2008 • Further increase in the impact factor of both journals • Increased awareness of Experimental Physiology by publicising its centenary and changing to monthly online publication • Enhanced online publication of Physiology News

Four smaller focused meetings were held in Edinburgh, Belfast, Manchester and Bristol. In total, over 400 participants attended these meetings and over 145 free communications were presented. The Society made a large impact on international physiology throughout 2007. A joint international meeting was held in Bratislava in partnership with the Slovak Physiological Society and FEPS, attracting 500 participants who enjoyed 15 symposia, three plenary lectures and over 230 free communications.

Events To recognise and promote excellence in physiology through scientific meetings Scientific meetings are one of the original activities of The Society and remain of the highest importance. Our meetings facilitate the dissemination and discussion of the latest scientific advances, supporting and promoting physiology.

Two international workshops were held in Krakow (Poland) and Yaremche (Ukraine) where all participants presented a free communication. We also honoured the contributions to physiology of three distinguished physiologists – Vladimir Skok, Richard Olver and Sir Andrew Huxley – by supporting three special symposia during the year. The Society contributed over

The Society visited Glasgow in July to take part in LifeSciences 2007 in partnership with the British Pharmacological Society and the Biochemical Society. The meeting was attended by over 1,500 participants, 12

Objects and activities

preceded by an international workshop in Shanghai.

£8,000 in support of non-Society symposia covering a wide range of topics of interest to physiologists.

Key achievements in 2007 • Successful organisation of LifeSciences 2007 and four focused meetings • Collaboration with colleagues in Slovakia, Poland and Ukraine to produce three high quality international meetings

In 2008, The Society will return to hosting its own annual main meeting, Physiology 2008, which will take place in Cambridge in July. A thematic approach is being introduced to our meetings, with the creation of six overarching themes.

Key goals for 2008 • Organisation of Physiology 2008 in Cambridge and three themed meetings • Organisation of joint international meeting in Beijing and an international workshop in Shanghai, in partnership with colleagues in China

Focused meetings are to be renamed themed meetings, and will be hosted in Leeds (Cardiac & Respiratory), Oxford (Metabolism & Endocrinology) and London (Vascular & Smooth Muscle). Internationally, The Society’s focus shifts to China with a joint meeting in Beijing in October

Society Meetings in 2007 12–13 February

University of Edinburgh

Focused Meeting: Perinatal physiology: from uterus to brain 4–5 April

Queen’s University Belfast

Focused Meeting: Ion channels and the microcirculation 9–12 May

Jagiellonian Medical Research Centre, Krakow

International Workshop: Endothelium: the determinant of cardiovascular health and disease 9–12 July

SECC, Glasgow

Main Meeting / LifeSciences 2007 5–6 September

University of Manchester

Focused Meeting: Cardiac electrophysiology 11–14 September

Bratislava, Slovakia

Joint International Meeting with The Slovak Physiological Society and FEPS 19–23 September

Yaremche, Ukraine

International Workshop: Molecular physiology of membrane transport and cell excitability 17–18 December

University of Bristol

Focused Meeting: Renal cortex: physiological basis of glomerular and tubular diseases 13

Objects and activities

Membership

of extending the membership and raising awareness of The Society and associated benefits.

To promote membership of The Society among the physiological community and support physiologists at a formative stage in their careers

Membership recruitment and retention have both been highlighted as areas for focus in 2008. We will develop targeted advertising to help us attract new members. Improved services offered by the new website, such as online payment and discussion forums, will help retain our current membership base.

The Society strives to attract new Members whilst continuing to support its established membership base. In 2007 the criteria for Ordinary membership was reviewed and three new membership categories, Associates, Undergraduate Associates and School and College Associates, were introduced.

Key achievements in 2007 • Membership rose to 2,683 • Three new membership categories were introduced and criteria updated for teaching specialists

Teaching specialists applying for Ordinary membership are now able to submit teaching products in place of peer reviewed publications, demonstrations or communications.

Key goals for 2008 • Increase membership especially at undergraduate level • Implementation of a one month deadline for travel grants

In 2007 The Society gained 306 new Members, bringing our membership to a total of 2,683, a figure that we hope to build on in 2008.

Education

The Society continues to provide excellent benefits for Members. Regular, informative contact through Physiology News ensures our Members are kept up to date with the latest news and developments.

To foster and support the learning and teaching of physiology at the secondary and tertiary stages of education

The Society provides a range of funding opportunities for personal and departmental support, and these will continue to evolve to best suit the needs of our Members. In 2007 The Society awarded £93,175 through its travel grant scheme. In 2008, our new online application process will allow The Society to move towards monthly consideration of travel grants.

The future of physiology lies within the hands of young scientists and The Society’s activities and resources reflect this. In January we participated in the general meeting of the Association for Science Education, interacting with school and college teachers. We discussed the career opportunities that studying physiology brings, and distributed resources for teachers and students. We also co-organised a lecture series to provide new ideas for teaching the GCSE and A-level curriculum.

To ensure that The Society has a focused approach to membership, a strategy document has been developed to consider methods 14

Objects and activities

form of techniques workshops. In 2007, The Society ran workshops on microelectrode techniques, molecular techniques and polymerase chain reaction. In 2008, these workshops will be reviewed to enable The Society to determine their relevance and value to our Members.

The Society’s membership stand at LifeSciences 2007

The Society provided hands on, practical support to teachers, with a workshop at Coventry University designed to update knowledge and practical skills. In previous years we have also organised sixth form workshops which provide students with an insight into higher education and studying within a university setting. In 2008, we hope to organise two sixth form workshops. Each year The Society supports the British Association for the Advancement of Science, both during National Science and Engineering Week (NSEW), and at the National Festival of Science. In 2007 we sponsored events on performance enhancement, the bionic ear and experimental approaches to understanding diseases and developing treatment. 2008 will be the eighth year that The Society has co-organised the Life Science careers conferences, under the umbrella of the Biosciences Federation. These conferences aim to raise the awareness of the many career opportunities open to science graduates. 2007 saw three events in Leeds, Bristol and London attended by over 300 students. Affiliates benefit from a wealth of funding opportunities and educational support in the

In 2007, The Society supported Young Physiologists’ Symposia (YPS), arranged entirely by early career scientists for their peers, in Bratislava and Glasgow. In 2008, meetings have been arranged by students at Manchester and Cambridge Universities. The Society supports development overseas through grants for junior physiologists and laboratories whose research is hindered by the lack of funds. In 2007, Junior Fellowships were awarded to two physiologists from Ukraine and one from Romania; a Centre of Excellence grant was made to the Kazan State Medical University in Russia. The Society aims to encourage young scientists to study physiology and in 2007 46 undergraduates were awarded Vacation Studentships to work on a physiology-related research project in a Member’s laboratory. A review of this scheme in 2008 will further ensure funding is allocated in the best possible way. In 2007, the profile of physiology teaching was highlighted with the introduction of membership criteria specific to teaching specialists. The Society’s Teaching Special Interest Group held a workshop to discuss the challenges and successes associated with teaching physiology. The Society’s commitment to teaching will be continued with a teaching specific symposium at Physiology 2008.

Objects and activities

Other teaching-related activities planned for 2008 include the development of PHILTER (Physiologists’ Image Library and Teaching Resource), a web-based, educational resource for university teachers.

professions who would not normally have attended a Society event. A working group on medical training issues, set up in partnership with the British Pharmacological Society, identified the need to develop a core curriculum in physiology to help inform the training of medical students and health professionals. Following strong support from heads of UK medical, dental, nursing and allied health profession schools, a consultant has been engaged to work on a core curriculum in 2008.

Key achievements in 2007 • Supported two YPS meetings and three techniques workshops • Co-organised three Life Sciences careers conferences Key goals for 2008 • Establish Teaching SIG symposia and workshop at Physiology 2008 • Planning and developing of PHILTER

The Society is actively represented on a number of external bodies. The Animal Welfare and Legislation Working Group contributed to a well received BSF/ABPI report on in vivo training skills. Legislation activities included lobbying for sensible provisions in the proposed revision of EU Directive 86/609 on animal research.

External relations To identify external relations policy matters of relevance to physiologists, and to promote for the benefit of the public the advancement of physiology by influencing government policy

Our new DVD for schools on the ethics of animal experimentation, Animal research: make up your own mind, received excellent feedback from teachers at the Association of Science Education conference and was distributed to all UK schools. A welcome surprise was the large number of requests received from organisations abroad, feedback from them indicating that there was no equivalent material available internationally.

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 other promotional materials for the general public, lobbying government and other organisations on issues of concern to physiologists, fostering relationships with like minded organisations and liaison with the media.

A major activity throughout the year was responding to science policy consultations, many in conjunction with the BSF. High notes were the witness statements in Parliamentary Committee reports by Ole Petersen to the House of Commons Education and Skills Committee, and Ian McGrath to the House of Commons Science and Technology Committee. The Society will continue to

The first in a series of workshops focusing on the contribution of physiology to translational research, Cystic fibrosis: latest advances in medical research and implications for patients and their families took place in partnership with EuroCareCF at the Royal Society in November. The workshop attracted people from the health

Objects and activities

work with the BSF and other organisations on responses to consultations in 2008. Other planned projects for 2008 are an external relations event for schools, media and the general public in April at Essex University. The event, Fit4Life, will look at how exercise affects the body and explore how to pursue a healthy and active lifestyle. We will also be following up contacts made with the World Bank and others by drafting a discussion paper with the Royal Society on opportunities for learned society involvement in science and technology capacity building in developing countries. Key achievements in 2007 • DVD received excellent feedback in the UK and internationally • Public workshop on physiology research and cystic fibrosis Key goals for 2008 • Draft a core physiology curriculum for medical training • Explore opportunities for learned society involvement in science and technology capacity building in developing countries

Resources, administration and infrastructure To ensure that the administrative structure and finances of The Society are adequate to achieve the charitable objects The Society’s new website has been developed over the last year in conjunction with Fisher Technology. It will incorporate our rebranded image, resulting in a fresh modern look and improved navigation. The website will be fully integrated with our existing membership database, providing Members with the facility

to apply and pay for membership, grants and events online, update their personal information, and preview subscription dues and forthcoming events. It will also offer additional features including a searchable Member directory, bulletin boards and forums, online voting and questionnaires, personalised content, news and jobs listings, mailing list signup, and secure online payments by card or direct debit. Originally planned for launch in 2007, the site will go live in 2008 due to the increased complexities of the project and our desire to deliver a fully operational site. In 2008, our entire financial accounting and banking systems will be reviewed. We will look at options for greater integration between the Sage accounting system and the iMIS membership database. In addition we will be transferring from the modem-based banking system to a new internet-based service. In 2007, the governance of The Society was reviewed by a working group of Council. The major recommendation was to combine the role of President with that of Chair of the Executive Committee in order to clarify lines of authority and responsibility in The Society. These recommendations will be voted on by the membership at an EGM in 2008 to allow implementation by the following AGM, at which time the current Chair of the Executive Committee and President will step down and the new system can be introduced. A formal terms of reference was introduced for each of The Society’s committees. The future financial position of The Society is unclear and potentially threatened by a reduction in publishing income, as a result of open access directives from a number of research funders.

Objects and activities

Biosciences Federation

During the year a working group reviewed alternative income streams for The Society. The major recommendations were to (a) build up reserves to provide an alternative income stream; (b) introduce registration fees for meetings to supplement income; and (c) introduce new membership categories and increase Member numbers. We reviewed our investment strategy and changed from a relatively high risk portfolio in trackers to one with less risk and less correlation with the stock market.

The Society continues to support the Biosciences Federation (BSF) as a powerful umbrella and lobbying organisation for the life sciences in the UK, and provides office accommodation, IT support and funding for the organisation. The BSF is 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.

In the London and Cambridge offices we have rationalised the production of documents and promotional materials such as meetings programmes so that those staff most involved in preparing the content are also actively involved in the production of the document.

Benevolent Fund of The Physiological Society

Looking to the future and building on our successful joint meeting in 2007 with the British Pharmacological Society and the Biochemical Society, we are actively discussing how the three societies could work more closely together in the future, to the benefit of all our Members and of the UK biomedical sciences.

The Benevolent Fund 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.’

Key achievements in 2007 • Introduction of formal terms of references for all Society committees • Modelling future financial scenarios including loss of journal income, and preparing contingency plans

Income in 2007 was £5,849 of which £4,071 came from charitable giving, £156 from raffles and the remainder from investment income and bank interest. In 2007 one grant totalling £1,000 was made and £150 of book tokens and vouchers were given to children of current or recent beneficiaries.

Key goals in 2008 • Implementation of revised governance structure • Integration between Sage accounting system and iMIS membership database

The Society is connected by virtue of common object and administration with The Benevolent Fund of The Physiological Society (Registered Charity No. 272800) and may be contacted through The Society. The Society supports The Benevolent Fund by the free provision of employees’ time and administrative resources. 18

Objects and activities

History & Archives Committee The History & Archives Committee actively promotes interest in the history of physiology. The committee oversees The Society’s archival collections which are held at the Wellcome Trust Library and the Science Museum. The collections mainly comprise paper records of The Society’s activities, a photographic and film collection showing individuals, laboratories and experiments, and a growing collection of oral history interviews conducted with academic and technical staff who have contributed to physiology and to The Society. The committee publicises the need for institutions and departments to identify and maintain any historically important physiological equipment. Additionally it encourages individual physiologists to donate relevant personal and professional records to an appropriate repository. The committee’s commemoration of the work of Sydney Ringer culminated in October at a special ceremony at St Mary’s Church, Lastingham. Several Members of The Society attended as guests of the Lastingham Society. David Miller gave an entertaining lecture in the church on the life of Ringer and his legacy to physiological science while David Eisner demonstrated why ions are so important for physiological mechanisms. A memorial plaque was unveiled, together with the launching of David Miller’s booklet, A solution for the heart, which describes Ringer’s life and his contribution to physiology. During the year: • The Paton Prize Bursary was re-activated. The prize, which encourages the study of major ideas and concepts that have shaped modern

Dafydd Walters unveiled the plaque and toasted Ringer’s memory

physiology, takes the form of a bursary with funding of up to £1,000. The bursaries are financed by interest from the Paton Fund, which originated as a donation from Professor Sir William Paton, with a matching donation from The Society. The first Paton Prize was awarded in 2007 to David Miller for research into the life and work of Sydney Ringer. • Historical equipment from the Glasgow laboratories was exhibited at LifeSciences in July and a continuous cycle of photographs of past and present Members was projected. • A temporary archivist was appointed to catalogue the records of The Society that have accrued over the past 10 years. This work, for which the committee secured special funding, will start in April 2008. • Several oral histories were recorded and transcribed for the archives with photograph portraits taken by Martin Rosenberg. Activities for 2008 include the continuation of the oral history programme, further efforts to ensure the preservation of items of historical interest; active promotion of the Paton Prize and dealing with the problems of digitising images and storing electronic records. 19

Financial review

Financial review Publication costs for the two journals also increased slightly to £1,493k (2006: £1,484k). Savings in distribution (£25k) and office costs (£20k) were mostly offset by increases in production (£24k), editorial costs (£17k) and staff costs (£30k).

Basis of accounting The summarised financial statements of The Physiological Society are attached to this report. The full statutory accounts are SORP compliant and include a full analysis and allocation of support costs across the charitable activities.

Events In 2007, all income associated with the Joint Life Sciences Meeting was administered by the British Pharmacological Society with the three Societies sharing equally the net cost. However, income from other meetings increased by a considerable £33k contributing to an overall total of £50k (2006: £47k). This was mostly due to an increase in sponsorship activity.

Review of the year Overall summary The Society’s total income increased by 1% in 2007 to £3,290k (2006: £3,259k). However, expenditure fell by £154k to £2,917k (2006: £3,071k) and, as a result, net incoming resources increased by £185k to £373k (2006: £188k).

Events expenditure decreased by £173k (25%) to £508k (2006: £681k). The net cost of The Society’s major meeting, LifeSciences 2007, was £17k (2006: £100k); this fall was due

A mixed performance by our investments in 2007 led to net losses of £60k (2006: net gains of £975k). Consequently, The Society’s reserves increased during the year by £313k (2006: £1,163k). Publications

2.59m

2.63m

2.67m

2.50m

The Journal of Physiology total income increased by a disappointing 1% to £2,527k (2006: £2,492k). The shift towards online-only subscriptions continues with a 43% share of total institutional subscriptions in 2007 (2006: 30%). Consortia income increased by £10k (7%).

2.09m

Experimental Physiology subscription income increased to £113k (2006: £111k). Increased consortia, rights and colour revenue increased total income to £140k (2006: £136k).

2003

2004

2005

2006

Total journal income 2003–2007

2007

Financial review

to both the increased registration fees and economies achieved by the three Societies. Ring-fenced international meeting grants were discontinued and rolled in the general Member grant scheme (2006: £26k). Apportioned support costs fell by £47k but staff costs increased by £15k (11%). Membership services Total membership subscriptions were constant at £127k. Costs associated with the provision of membership services increased by £22k (9%) to £270k (2006: £248k). Grants payable in 2007 were £95k (2006: £71k). Direct costs associated with Physiology News fell by £2k to £23k. Staff costs increased by £26k (33%) but this was offset by a fall in apportioned support costs of £25k (48%). Education Educational activities increased by £12k (4%) to £312k. Expenditure on schools fell by £2k and universities by £1k. Costs associated with international activities increased by £13k. Staff costs increased by £14k (18%) but this was offset by a fall in apportioned support costs of £14k (28%). External relations Resources expended on activities associated with external relations policy fell by £33k (23%) to £110k (2006: £143k). The main reason for the decrease was the cost, in 2006, of the Schools’ DVD project (£27k). In addition, apportioned support costs fell by £10k (43%). Governance Costs relating to the general running of The Society fell by 5% to £191k (2006: £201k).

Legal and professional fees fell by £15k and apportioned support costs by £16k. This was offset by an increase in staff costs of £20k (25%). Apportioned support costs Shared overhead costs associated with the London office fell by £134k (41%) to £196k (2006: £330k). The main reason for the fall was the ongoing website/rebranding project which incurred costs of £28k in 2007 (2006: £126k). In addition, VAT write-offs (£17k) and membership debtor provisions (£10k) were not required in 2007. Other incoming resources Investment income increased slightly by £6k (1%) over the previous year. Fund income fell by £33k (14%) as a result of increased holdings in ‘accumulation units’ following the switch from Legal & General Investment Management (LGIM) to Bestinvest. Rental income increased by £22k (14%) due to a number of completed rent reviews in the year. Bank interest increased by £17k (61%) mostly as a result of the new IUPS long term fixed deposit account.

Balance sheet The balance sheet remains in good shape ensuring that The Society has the assets required to meet its charitable objects. The performance of The Society’s investments was mixed. The investment fund increased by £452k (6%) to £8,207k although the post yearend period has seen considerable volatility in the investment markets. The investment property portfolio saw a devaluation of £275k (2006: revaluation of £510k) to reflect the climate in the commercial property markets.

Financial review

Total debtors decreased by £131k to £1,804k (2006: £1,935k). This was mostly to do with the timing and magnitude of transactions with Wiley-Blackwell.

against the FTSE APCIMS Income benchmark for each subsequent calendar year following the transfer. While issues relating to investment management and ethicality were considered in 2007, the Trustees will fully review and update the Statement of Investment Principles (SIP) at the July 2008 Council Meeting.

Cash balances at the year-end decreased by £439k to £1,013k (2006: £1,452k). In December 2006, a voluntary VAT disclosure required The Society to collect £607k from Wiley-Blackwell and pass over to HM Revenue & Customs in January 2007. This had the effect of inflating both cash balances and creditors around the 2006 year-end. As well as the VAT aspect, the £712k fall in creditors to £1,712k can also be explained by a £194k reduction in deferred income.

Property The Society continues to hold a portfolio of four properties. At 31 December 2007 the portfolio was re-valued downwards by £275k (2006: re-valued upwards by £510k), following an independent valuation, giving a market value of £2,595k (2006: £2,870k). Total rental income during the year was £178k (2006: £156k).

Investment policy and performance Investment funds

The rental yield (based on the opening market value) was 6.2% (2006: 6.6%). Standard property managers fees (5% of rental income) were £10k in 2007 (2006: £9k). During 2007, The Society resolved two rent reviews and completed a lease renewal in respect of the Sudbury property; legal and professional costs associated with these were £23k.

In March 2007, the Trustees approved a proposal to transfer the investment funds managed by LGIM to Bestinvest. This proposal was put forward following a lengthy investment review and tendering process. The Trustees agreed that while the tracker funds had provided an excellent return over the period since July 2005, the lack of diversification needed to be addressed and the portfolio could offer little protection against a falling market.

Reserves policy

Bestinvest proposed a well diversified growthcautious model and the transfer was carried out throughout the middle of 2007. In addition, the Trustees approved that all income would be reinvested, to build up reserves, and that it would not be practical to pursue an ethical investment 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 2007 were £10,859k (2006: £10,549k) and equate to 44.7 months’ worth of expenditure (2006: 41.2 months).

The number of funds in the portfolio has increased from 6 to 22 and will be judged

Following the revised Wiley-Blackwell contract, The Trustees will fully review The Society’s 22

Financial review

Free reserves shown as percentage of total reserves

11.9m 11.6m 91%

10.4m

91%

99%

8.7m 8.2m

Grant making policy

99%

96%

2003

In addition, the Trustees agreed to designate £1million to underwrite potential commitments for the IUPS Congress in 2013. In February 2007, £400,000 was transferred to a one year fixed term deposit account for this purpose. A further injection of £100k was made in January 2008.

2004

2005

2006

2007

Net assets 2003–2007

The Society awards grants to support the careers of physiologists in the UK and internationally. Assessment criteria for applications include the benefit of funding an application to the applicant and to the furtherance of physiology. Details of the policy and application procedures are available to Members and are listed on The Society’s website. The types of grants available are:

requirements for free reserves in line with the guidance issued by the Charity Commission. This will be carried out at the July 2008 Council Meeting along with a review of the SIP. Free reserves are needed to allow for the development of new initiatives, to meet the working capital requirements of The Society and to compensate for a significant drop in publishing income. The Trustees consider it prudent that free reserves, which essentially represent the value of investments, should be sufficient to generate £550,000 of investment income, if required, to offset the possible loss of publishing income.

• 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 • Non-Society Symposium grants to provide up-to-date presentations on a specified symposium topic at a non-Society meeting • Centres of Excellence Support Scheme and Junior Fellowships to support physiologists in developing countries

Using a notional yield of 5%, the level of free reserves required is ~£11 million. Free reserves are currently below that range by approximately £100k; The Society will re-invest investment income and make periodic cash injections to attain the target level. 23

Financial review

Treasurer’s statement The summarised statements presented here confirm that The Society remains strong financially. Although gross income showed little growth, at 1% (£31k) for the year, a reduction in net expenditure resulted in an increase in net income from £188k to £373k, while free reserves grew to £10,859k. These funds should help ensure that The Society can fulfil its charitable and academic objectives for the foreseeable future.

set at a low level, however, and meetings remain free to Retired and Honorary Members, and to Affiliate Members who register early. The impact of this change, which brings Society events into line with the vast majority of other scientific meetings, will be reviewed at the end of 2008. • Staff costs accounted for 28% of total expenditure for the year (23% in 2006). This rising trend reflects both payrises and staff appointments, eg to cover maternity leave. These costs are of course necessary if The Society is to carry out its activities and were only 2% higher than budgeted for the year. Active management of the total salary bill will be ever more important, however, since income is unlikely to grow substantially.

While surpluses are always reassuring, the increase in net income for the year is a matter of some concern and reflects difficulties in accurately budgeting for each year’s activities ahead of time. The budget approved by Council for 2007 actually showed a small net deficit but several cost areas spent considerably less than predicted. It is the Trustees’ intention that The Society’s income should be used to support and improve The Society’s activities and one important goal is to balance income and expenditure more closely in future.

• Income from membership fees remained stable at £127k, which was less than half of the total expenditure on membership services (£270k). This represents a 9% increase over the membership services expenditure in 2006. Despite this, it is proposed to leave membership fees unchanged for 2009, partly in recognition of the introduction of registration fees for Society Meetings. Overall, we believe the services offered to Members represent excellent value for the fee paid.

I would also like to draw Members’ attention to a number of other trends highlighted in these financial statements. • Publication income, which continues to generate 81% of total income, shows little growth, and is falling in real terms. On the positive side, however, there is no indication that Open Access is having any major effect on journal income as yet, although this situation will continue to be monitored. Following review by a working group, it appears unlikely that alternative income streams can be developed in the short-term, other than from registration fees for meetings, which have already been introduced. These fees have initially been

• The Society’s investments showed a small net loss in capital value over 2007, with increases in Securities being more than offset by the down-valuation of our rental property. Investment funds were transferred from LGIM ‘Tracker funds’ to more active management using BestInvest 24

Financial review

as financial advisers in mid-2007. This was done with a view to increasing investment diversification and attempting to reduce the impact of a downturn in equities. Investment policy will be reviewed regularly in the light of performance and the balance of need between growth and income generation. â&#x20AC;˘ Free reserves at the end of 2007 were close to the target set in our Reservesâ&#x20AC;&#x2122; Policy. These reserves include funds designated for use in support of the XXXVII IUPS Congress to be organised by The Society in 2013. Given the current instability in the financial markets, it seems likely that our reserves, which reflect the capital value of our investments, will fall in 2008. This should not affect the activities of The Society in the short term, however, assuming income is maintained.

The Annual Report and Accounts were approved by the Trustees of The Physiological Society and signed on this 29th day of April 2008 on their behalf by:

J C McGrath Chairman of the Executive Committee

J G McGeown Honorary Treasurer

Overall, The Society is in good financial health. Capital investments such as the new website help keep us relevant to the needs of Members and the outside world. It is up to all of us to ensure that the considerable resources available are used imaginatively to promote and develop the scientific and educational profile of physiology both nationally and internationally. Finally, I would like to acknowledge the staff who manage the finances of The Society from day to day, particularly Casey Early, our Finance Manager, and Mike Collis, the Chief Executive. It is a pleasure to work with such highly motivated professionals, without whom The Society could not carry out its activities.

Financial review

Independent auditors’ report Opinion

We have examined the summarised financial statements of The Physiological Society set out on pages 27 to 29.

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 2007.

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 thereunder the recommendations of the charities SORP.

haysmacintyre Chartered Accountants Registered Auditors Fairfax House, 15 Fulwood Place London WC1V 6AY

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.

30 May 2008 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.

Basis of opinion

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.

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.

The annual accounts were approved by the Trustees on 29 April 2008 and have been submitted to the Charity Commission and Companies House.

Financial review

Statement of financial activities Unrestricted Funds

Restricted Funds

Total 2007

Total 2006

£’000

2,667

2,628

127

433

427

3,290

3,259

1,493

1,484

Incoming Resources Activities to further the Charity’s objects: Journal sales and subscriptions Membership subscriptions Events and education income Other incoming resources Activities for generating funds: Investment income

Total incoming resources Resources Expended Cost of generating funds: Investment management fees Charitable expenditure: Costs of activities to further the Charity’s objects: Publications Events

507

508

681

Membership Services

269

270

248

Education

312

300

External Relations

110

143

191

201

2,915

2,917

3,071

Net incoming resources before transfers

375

(2)

373

188

Governance costs

Total resources expended

Transfer between funds

(11)

Net incoming resources

364

373

188

Realised losses on investments

(32)

Unrealised gains on investments Revaluation of investment property Net movement in funds Fund balances as at 1 January 2007

Fund balances as at 31 December 2007

247

465

(275)

510

304

313

1,163

11,564

11,603

10,440

11,868

11,916

11,603

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.

Financial review

Balance sheet 2007

2006

£’000

Securities

8,207

7,755

Investment properties

2,595

2,870

10,802

10,625

Debtors

1,804

1,935

Cash at bank and in hand

1,013

1,452

2,817

3,387

(1,712)

(2,424)

1,105

963

11,916

11,603

10,868

10,564

Fixed Assets Tangible assets Investments

Current Assets

Liabilities Creditors: Amounts falling due within one year Net Current Assets Net Assets Funds Unrestricted Funds: General (including revaluation reserves of £1,298k (2006: £2,517k)) Designated

1,000

11,868

11,564

11,916

11,603

Restricted Total Funds

Approved and authorised for issue by the Trustees of The Physiological Society this 29th day of April 2008 and signed on their behalf by:

J C McGrath Chairman of the Executive Committee

J G McGeown Honorary Treasurer

Financial review

Cash flow statement

Net Cash (Outflow)/Inflow from Operating Activities

2007

2006

£’000

(636)

174

207

243

178

156

Returns on Investments and Servicing of Finance Income from listed investments received Interest received Rent received Capital Expenditure and Financial Investment Payments to acquire tangible fixed assets

(3)

(2)

Purchase of fixed asset investments

(8,096)

Disposal of fixed asset investments

7,935

(Decrease)/Increase in Cash in the Year

(367)

599

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.

Standing Information

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

Head Office and Registered Office

Peer House, Verulam Street, London WC1X 8LZ 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 2007

J F Ashmore S K Hall1 W A Large O Petersen A V Tepikin

D R Corfield1 P T Harrison1 S L Lightman C J Schwiening K D Thornbury1

to July 2007

to Nov 2007

D A Eisner2 J W Hanrahan J G McGeown S V Smirnov1 J T Tiffert

V F Gladwell A E King J C McGrath G Smith3 J Winpenny3

P L Greenhaff P Kumar C H Orchard D Sugden D J A Wyllie

from July 2007

Many members of staff contributed to this report. Edited by Simon Kellas.

Printed by The Lavenham Press Ltd.

The Physiological Society Peer House, Verulam Street London WC1X 8LZ Tel: 020 7269 5710 Fax: 020 7269 5720 www.physoc.org