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THE SCIENTIFIC AND MEDICAL NETWORK 31 DECEMBER 2009

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COMPANY REGISTRATION NUMBER 4544694

THE SCIENTIFIC AND MEDICAL NETWORK FINANCIAL STATEMENTS

31 DECEMBER 2009

Charity Number 1101171

THE SCIENTIFIC AND MEDICAL NETWORK FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2009
CONTENTS Members of the Board and professional advisers Directors Annual Report Independent auditor's report to the directors Statement of financial activities (incorporating the income and expenditure account) Balance sheet Notes to the financial statements PAGE 1 2 6 8 9 10

THE SCIENTIFIC AND MEDICAL NETWORK

MEMBERS OF THE BOARD AND PROFESSIONAL ADVISERS

Registered charity name Charity number Company registration number Registered office

The Scientific and Medical Network 1101171 4544694 I Manchester Court Moreton-in-Marsh Gloucestershire GL56 OBY Dr Peter Fenwick MB, BChir, BA, DPM, FRCPsych Diana Clift MA. MPhil Geoffrey Leytham MA, AFBPs.S Claudia Nielsen MA (appointed 3rd July 2009) Max Payne MA, BSc Dr Amit Biswas MBBB, DO, MRCPsyc, MDCH Professor Bernard Carr MA, PhD Professor John Clarke BA, MA (Chairman) Raymond Dawkins MA, MSc (resigned 24th April 2009) Dr Chris Lyons BSc, MB, BS, MRCGP, MSc Geraldine McManus BSc, MSc Professor Marilyn Monk BSc, MSc, PhD, MSTAT Jaqueline Nielsen BA, BL Martin Redfern BSc Claudia Nielsen MA (appointed 3rd July 2009) Dr Athar Yawar BA, BM BCh, MRCPsych, MSc Rupert Stewart-Smith MA David Lorimer MA, PGCE, FRSA Dr Oliver Robinson MA, MSc, PhD Charla Devereux Bright Grahame Murray Chartered Accountants & Statutory Auditor 131 :Edgware Road London W22AP Barclays Bank Plc Leicester LE87 2BB

President Vice presidents

Directors

Secretary Programme director & editor of "Network Review"

Fundraising and communications manager Network manager Auditor

Bankers

THE SCIENTIFIC AND MEDICAL NETWORK DIRECTORS ANNUAL REPORT YEAR ENDED 31 DECEMBER 2009

The directors have ple as ure in presenting their report and the financial statements of the charity for the year ended 31 December 2009. REFERENCE AND ADMINISTRATIVE DETAILS Reference and administrative details are shown in the schedule of members of the board and professional advisers on page 1 of the financial statements. THE DIRECTORS The directors who served the charity during the period were as follows: Dr Amit Biswas MBBB, DO, MRCPsyc, MDCH Professor Bernard Carr MA, PhD Professor John Clarke B.A, MA (Chairman) Raymond Dawkins MA, MSc (resigned 24th April 2009) Dr Chris Lyons BSc, MB, BS, MRCGP, MSc Geraldine McManus BSc, MSc Professor Marilyn Monk. BSc, MSc, PhD, MSTAT Jaqueline Nielsen BA, BL Martin Redfern BSc Claudia Nielsen MA (appointed 3rd July 2009) Dr Athar Yawar BA, BM BCh, MRCPsych, MSc STRUCTURE, GOVERNANCE AND MANAGEMENT The Scientific and Medical Network is a company limited by guarantee and governed by its Memorandum and Articles of Association. The Directors review financial and other risks when appropriate and have established procedures to ensure that all transactions and projects are properly authorised.
The Directors of the Company on 1st January 2009 were Professor John Clarke (Chair), Professor Bernard Carr (Vice-Chair), Dr Amit Biswas, Mr Raymond Dawkins, Dr Christopher Lyons (Treasurer), Ms Geraldine McManus, Professor Marilyn Monk, Ms Jacqueline Nielsen and Mr Martin Redfern.

Mr Raymond Dawkins resigned as a Director on. 24th March 2009, as he was moving to Italy. The Board accepted his resignation with understanding and regret. At the Seventh Annual General Meeting held on Friday 3rd July 2009, the directors retiring by rotation were Professor Bernard Can, Dr Christopher Lyons and Ms Jacqueline Nielsen. Dr Athar Yawar, who had been co-opted since the last Annual General Meeting, also retired under the Articles. All four, being eligible, had indicated they wished to continue. No other nominations had been received. Professor Bernard Carr, Dr Christopher Lyons, Ms Jacqueline Nielsen and Dr Athar Yawar were re-elected Directors. On Friday 3rd July 2009, Ms Claudia Nielsen was elected a Director by co-option.

THE SCIENTIFIC AND MEDICAL NETWORK DIRECTORS ANNUAL REPORT (continued) YEAR ENDED 31 DECEMBER 2009
On 31st December 2009, the members of the company were the directors listed above. The members are the guarantors, each in sum not exceeding l. On 16th April 2010, Professor John Clarke resigned as a director for personal reasons with effect from 18th April 2010. The Board wishes to record its deepest gratitude to Professor Clarke for his outstanding tenure of the Chair and its best wishes for his retirement. The Board elected Professor Bernard Carr to succeed him as Chairman. At the eight Annual General Meeting, the directors retiring by rotation are Dr Amit Biswas, Miss Geraldine McManus and Professor Marilyn Monk. Ms Claudia Nielsen, who has been co-opted since the last AGM also retires under the Articles. All are eligible for re-election or co-option and all have indicated their wish to continue. Members wishing to be considered for election at this Annual General Meeting have been asked to write to the Secretary before the end of May. There are four vacancies for Directors to be elected at the Annual General Meeting. There are three further vacancies available by co-option by the Board. We are very saddened to report the death of Professor Br-.an Goodwin who was a Vice President of the Network and who contributed as a speaker to many of our public events. In his final years, he was Professor Emeritus of Etiology at the Open University and Scholar in Residence at Schumacher College. He was a distinguished and original scholar in his field of embryology and evolution theory, and was the author of many books and articles in learned journals. OBJECTIVES AND ACTIVITIES The Charity's objects as set out in the Memorandum and Articles of Association are:- for the benefit of the public, to advance education in the study and application of science and medicine, in particular but not exclusively, by adopting an interdisciplinary approach. The directors confirm that they have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the Charity's objectives and activities. ACHIEVEMENTS AND PERFORMANCE Review of the year During the year, the Company continued the activities previously undertaken by arranging lectures, conferences and seminars on subjects relevant to its charitable purposes. These were open to the general public, apart from one meeting held for members of the Network only at the time of the AGM. Work on various projects jointly with partners in these relevant fields continued. Further details of the projects are given in the Network Review, which is edited, published and distributed to members of the Network and others three times a year.
Development fund

In the three years since its inception, 44,000 had been donated to the Development Fund. In the prevailing economic climate, this was felt to be a creditable achievement, especially as it did not include two major legacies, which had been donated direct to the Scientific and Medical Network Charitable Trust. Nevertheless it looked as if our original target of raising 250,000 (50,000 each over 5 years) was unrealistic; thus it was decided to amalgamate the Development Fund into the Unrestricted Funds of the Company. Asking for donations would continue to be an important way of maintaining the Network and the Board planned to go on seeking donations where and when it was suitable.

THE SCIENTIFIC AND MEDICAL NETWORK DIRECTORS ANNUAL REPORT (continued)

YEAR ENDED 31 DECEMBER 2009
FINANCIAL REVIEW The directors monitor the resources of the Charity to ensure that sufficient funds are maintained to meet its future needs and to ensure that it has sufficient working capital. At 31 December 2009, the charity had reserves of 73,445. PLANS FOR FUTURE PERIODS In the coming year, we will be giving our main attention to building on two projects begun last year. The first involves the development of a new website which has a number of features which will give enhanced service to our members and will provide a much improved means for publicising our vision and events to the wider world. These features include: (a) an. archive of on-line recordings from past conferences and public lectures, (b) an archive of on-line re-issues of past copies of the Network Review going back many years and (c) interactive facilities involving blogging and related electronic amenities, which we believe will enable us to make contact with a wider range of interested parties than would otherwise be possible. The second is an ambitious project for facilitating discussion of the need for a new worldview in the face of global crises. This will involve, inter alia, the publishing later this year of an edited book of writings on this subject by experts in various related fields, and the development of a network of like-minded organisations with a view to widening the scope and appeal of this project. In addition we will be mounting our usual annual programme of public conferences and lectures. RESPONSIBILITIES OF THE DIRECTORS' The directors (who are also the directors of the Scientific and Medical Network for the purposes of company law) are responsible for preparing the Directors Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the directors to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the directors are required to: select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP; make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial stalements; prepare the financial statements on the going concern. basis unless it is inappropriate to presume that the charitable company will continue in operation. The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006. The directors are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. In so far as the directors are aware: there is no relevant audit information of which the charitable company's auditor is unaware; and

THE SCIENTIFIC AND MEDICAL NETWORK

DIRECTORS ANNUAL REPORT (continued) YEAR ENDED 31 DECEMBER 2009
the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. AUDITOR At the seventh Annual General Meeting it was resolved that Messrs. Bright Grahame Murray, Chartered Accountants, of 131 Edgware Road, London, W2 2AP continue to be Auditors until the conclusion of the next following General Meeting and that their remuneration should be fixed by the Board. Signed on behalf of the directors

R. STEWART-SMITH Secretary 21 May 2010

THE SCIENTIFIC AND MEDICAL NETWORK

INDEPENDENT AUDITOR'S REPORT SCIENTIFIC AND MEDICAL NETWORK TO THE DIRECTORS OF THE

YEAR ENDED 31 DECEMBER 2009

We have audited the financial statements of The Scientific and Medical Network for the year ended 31 December 2009 on pages 8 to 14, which have been prepared on the basis of the accounting policies set out on page 10. This report is made solely to the charity's directors, as a body, in accordance with section 43 of the Charities Act 1993 and regulations made under section 44 of that Act. Our audit work has been undertaken so that we might state to the charity's directors 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 directors as a body, for our audit work, for this report, or for the opinions we have formed. RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITORS The responsibilities of the directors for preparing the Directors Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and for being satisfied that the financial statements give a true and fair view are set out in the Statement of Responsibilities of the Directors on page 4. The directors have elected for the financial statements to be audited in accordance with the Charities Act 1993 rather than the Companies Act 2006. Accordingly 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. Our responsibility is to audit the financial statements in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK and Ireland). We report to you our opinion as to whether the financial statements give a true and fair view and have been prepared in accordance with the Companies Act 2006. We also report to you if, in our opinion, the information given in the Directors Annual Report is not consistent with those financial statements, if the charity has not kept adequate accounting records, if the charity's financial statements are not in agreement with these accounting records and returns, or if we have not received all the information and explanations we require for our audit. We read the Directors Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it. BASIS OF AUDIT OPINION We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) 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 charity'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 wilh 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.

THE SCIENTIFIC AND MEDICAL NETWORK

INDEPENDENT AUDITOR'S REPORT TO THE SCIENTIFIC AND :MEDICAL NETWORK (continued) DIRECTORS OF THE

YEAR ENDED 31 I)ECEMBER 2009

OPINION In our opinion: the financial statements give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the charity's affairs as at 31 December 2009 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended; and the financial statements have been prepared in accordance with the Companies Act 2006.

131 Edgware Road London W2 2AP 28 June 2020 Company Registration Number: 4544694

ROBERT MOORE (Senior Statutory Auditor) For and on behalf of BRIGHT GRAHAME MURRAY Chartered Accountants & Statutory Auditor

THE SCIENTIFIC AND MEDICAL NETWORK

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING THE INCOME AND EXPENDITURE ACCOUNT)
YEAR ENDED 31 I)ECEMBER 2009
Unrestricted Funds Restricted Funds Total Funds 2009 Total Funds 2008

Note INCOMING RESOURCES Incoming resources from generating funds: Voluntary income Investment income Incoming resources from charitable activities TOTAL INCOMING RESOURCES RESOURCESEXPENDED Charitable activities 5/6 Governance costs 7 TOTAL RESOURCES EXPENDED NET INCOMING/(OUTGOING) RESOURCES FOR THE YEAR RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD

2 3 4

52,375 39 144,310 196,724 (202,425) (4,437) (206,862)

96,200 96,200 (77,591) (77,591)

148,575 39 144,310 292,924 (280,016) (4,437) (284,453)

205,684 2,482 120,110 328,276 (328,395) (4,500) (332,895)

(10,138)

18,609

8,471

(4,619)

41,785 31,647

23,189 41,798

64,974 73,445

69,593 64,974

The Statement of Financial Activities includes all gains and losses in the year and therefore a statement of total recognised gains and losses has not been prepared. All of the above amounts relate to continuing activities.

The notes on pages 10 to 141 form part of these financial statements.

THE SCIENTIFIC AND MEDICAL NETWORK BALANCESHEET 31 DECEMBER 2009

2009 Note FIXED ASSETS Tangible assets CURRENT ASSETS Debtors Cash at bank and in hand CREDITORS: Amounts falling due within one year NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS Restricted income funds Unrestricted income funds TOTAL FUNDS 11 13 6,182 102,141 108,323 14 (35,471) 72,852 73,445 73,445 593 6,853 71,447 78,300 (13,351) 64,949 64,974 64,974 2008 25

15 16

41,798 31,647 73,445

23,189 41,785 64,974

The directors are satisfied that the charity is entitled to exemption from the provisions of the Companies Act 2006 (the Act) relating to the audit of the financial statements for the year by virtue of section 477, and that no member or members have requested an audit pursuant to section 476 of the Act. However it is required to have a statutory audit under the Charities Act 1993. The directors acknowledge their responsibilities for: (i) (ii) ensuring that the charity keeps adequate accounting records which comply with section 386 of the Act, and preparing financial statements which give a true and fair view of the state of affairs of the charity as at the end of the financial year and of its profit or loss for the financial year in accordance with the requirements of section 394 and 395, and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to the charity.

These financial statements were approved on the 21 May 2010 and are signed on their behalf by:
C. LYONS Director B.J. CARR Director

The notes on pages 10 to 141 form part of these financial statements.

THE SCIENTIFIC AND MEDICAL NETWORK NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 I)ECEMBER 2009
1. ACCOUNTING POLICIES Basis of accounting The financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom accounting standards, the Statement of Recommended Practice "Accounting and Reporting by Charities" issued in March 2005 (SORP 2005) and the Companies Act 2006. Cash flow statement The directors have taken advantage of the exemption in Financial Repo rt ing Standard No I (revised) from including a cash flow statement in the fi nancial statements on the grounds that the charity is small. Fund accounting The unrestricted funds are those which are available for use at the discretion of the directors in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. Investment income and gains are allocated to the appropriate fund. Depreciation Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows: Computer Equipment Office Equipment Incoming resources Donations and subscriptions are recognised as income when received. Investment income is included in the accounts on a receivable basis and includes amounts accrued for outstanding refunds of tax deducted at source. Resources expended All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Where costs cannot be directly attributed they have been allocated to activities on a basis consistent with the use of resources. Stock No value has been ascribed to the stock of publications on the basis that the majority of these are normally given away and therefore it is prudent to account for all publication costs in the period they are incurred. Foreign currencies Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account. - 25% per annum on cost - 25% per annum on reducing balance

THE SCIENTIFIC AND MEDICAL NETWORK NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2009
2. VOLUNTARY INCOME Unrestricted Funds Donations Donations Donations from the Scientific and Medical Charitable Trust Income tax recoverable 13,810 32,207 6,358 52,375 3. INVESTMENT INCOME Unrestricted Funds 39 Total Funds 2009 39 Total Funds 2008 2,482 Restricted Total Funds Funds 2009 96,200 96,200 110,010 32,207 6,358 148,575 Total Funds 2008 195,539 4,240 5,905 205,684

Bank interest receivable 4.

INCOMING RESOURCES FROM CHARITABLE ACTIVITIES Unrestricted Total Funds Funds 2009 47,679 47,679 96,631 96,631 144,310 144,310 Total Funds 2008 48,486 71,624 120,110

Subscriptions Lectures, meetings etc

5.

COSTS OF CHARITABLE ACTIVITIES BY FUND TYPE Unrestricted Funds 44,997 139,203 5,500 12,725 202,425 Restricted Total Funds Funds 2009 44,997 139,203 3,000 3,000 74,591 74,591 77,591 5,500 12,725 280,016 Total Funds 2008 40,210 110,898 166,088 5,450 5,749 328,395

Subscriptions Lectures, meetings etc GP library project Character education project Theoria to theory fund Blaker education grants Support costs

THE SCIENTIFIC AND MEDICAL NETWORK NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 I)ECEMBER 2009
6. COSTS OF CHARITABLE ACTIVITIES BY ACTIVITY TYPE Activities undertaken Total Funds directly Support costs 2009 44,997 5,090 50,087 139,203 7,635 146,838 3,000 3,000 74,591 74,591 5,500 5,500 267,291 7. GOVERNANCE COSTS Unrestricted Total Funds Funds 2009 4,437 4,437 Total Funds 2008 4,500 12,725 280,016 Total Funds 2008 42,510 114,347 166,088 5,450 328,395

Subscriptions Lectures, meetings etc GP library project Character education project Theoria to theory fund Blaker education grants

Audit fees 8. ANALYSIS OF SUPPORT COSTS Subscriptions 2,130 2,960 5,090 9.

Rental - office and associated costs Website maintenance

Lectures, meetings etc 3,195 4,440 7,635

Total 2009 5,325 7,400 12,725

Total 2008 5,313 436 5,749

NET INCOMING/(OUTGOING) RESOURCES FOR THE YEAR This is stated after charging: 2009 200 4,437 2008 1,000 4,500

Depreciation Auditors' remuneration: - audit of the financial statements 10. STAFF COSTS AND EMOLUMENTS Total staff costs were as follows:

Wages and salaries Social security costs

2009 47,250 5,151 52,401

2008 45,117 4,657 49,774

THE SCIENTIFIC AND MEDICAL NETWORK NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2009
10. STAFF COSTS AND EMOLUMENTS (continued) Particulars of employees: The average number of employees during the year, calculated on the basis of full-time equivalents, was as follows: 2009 2008 No No Number of administrative staff 2 2 No employee received remuneration of more than 60,000 during the year (2008 - Nil). No remuneration was paid and no expenses were reimbursed to the directors by the charity during the year. 11. TANGIBLE FIXED ASSETS Office & computer equipment COST At 1 January 2009 Additions At 31 December 2009 DEPRECIATION At 1 January 2009 Charge for the year At 31 December. 2009 NET BOOK. VALUE At 31 December 2009 At 31 December 2008 12. INVESTMENTS The Scientific and Medical Network holds the entire issued share capital of SMN Projects Limited, a dormant company which it acquired for no cost. The net assets of SMN Projects Limited at 31st December 2009 are 1,000 which have been lent to the parent company (see Note 18). 13. DEBTORS 2009 1,809 4,373 6,182 2008 1,623 5,230 6,853 5,021 768 5,789

4,996 200 5,196

593 25

Other debtors Prepayments

THE SCIENTIFIC AND MEDICAL NETWORK NOTES TO THE FINANCIAL STATE MENTS YEAR ENDED 31 DECEMBER 2009
14. CREDITORS: Amounts falling due within one year 2009 1,000 5,500 15,000 13,971 35,471 15. RESTRICTED INCOME FUNDS Balance at 1 Jan 2009 3,035 13,818 6,336 23,189 16. UNRESTRICTED INCOME FUNDS Balance at 1 Jan 2009 41,785 Incoming resources 196,724 Outgoing resources (206,862) Balance at 31 Dec 2009 31,647 Incoming resources 96,200 96,200 Outgoing resources (74,591) (3,000) (77,591) Balance at 31 Dec 2009 3,035 35,427 3,336 41,798 2008 1,000

Amounts owed to group undertakings Grants payable Other creditors Accruals

12,351 13,351

Theories to Theory Fund Character Education Project GP Library Project

General Funds 17.

ANALYSIS OF NET ASSETS BETW EEN FUNDS Tangible fixed assets Restricted Income Funds: Theories to Theory Fund Character Education Project GP Library Project Unrestricted Income Funds Total Funds 593 593 Net current assets 3,035 35,427 3,336 41,798 31,054 72,852 Total 3,035 35,427 3,336 41,798 31,647 73,445

18.

RELATED PARTY TRANSACTIONS The Scientific and Medical Network Charitable Trust: During the year, the Scientific and Medical Network Charitable Trust (charity registration number 295267) made a donation of 32,207 (2008 -4,240) to the company. SMN Projects Limited: SMN Projects Limited (company registration number 3011944) is a subsidiary company of The Scientific and Medical Network. SM[N Projects Limited is owed 1,000 (2008 -1,000) by the company at the year end.