P R OVI D I N G P U B LI C B E N E F I T

RSE

T H E R O YA L S O C I E T Y O F E D I N B U R G H

ANNUAL REVIEW APRIL 2004 MARCH 2005

t h e r oya l s o c i e t y o f e d i n b u r g h

Introduction from the President

In fullling our Royal Charter for the Advancement of Learning and Useful Knowledge, the RSE has focused its energies and resources on providing a wide range of public benet activities throughout Scotland and beyond. We have had another very successful year and have continued to grow on several fronts, through harnessing the willingness, experience and expertise of our multidisciplinary Fellowship, perhaps most notably in our developing International Programme led by Professor Rona MacKie. By forging strategic links with National Academies, we have entered into agreements with our counterparts in China (both mainland and Taiwan), Denmark, Norway, Poland, the Czech Republic and Hungary. These links will strengthen our science base and enhance Scotlands reputation as a leading country for research excellence. Recognising the importance of partnership, we have been working with others, such as the British Council (Scotland) and Scottish Development International on key projects like Science Scotland. This publication showcases to the rest of the world the many centres of excellence active in Scotland today. By working together, we can achieve more, so that public and private funds are spent wisely. The RSE continues to do its utmost to support Scotlands research base and support the commercialisation of research and innovation. Our highly competitive Research Fellowships and Enterprise Awards schemes have continued to support some of the brightest home-grown talent, as well as attracting top academics to develop their ideas here in Scotland. Running these various schemes is a signicant responsibility and they have ourished under the guidance of Professor David Saxon and Dr Ian Sword. It is pleasing that BBSRC was sufficiently impressed with our Enterprise Fellowship schemes funded by Scottish Enterprise and PPARC, that it decided to create new Fellowships run through the RSE. I am delighted that an independent Review of our Research Awards programme has been chaired by Sir John Enderby. This has conrmed the high quality and usefulness to Scotland of our schemes, and made helpful suggestions on how they can continue to attract and retain the best. The welcome decision by Government to recognise the need for University research to be funded on a sustainable basis, covering full economic costs, will, however, have major implications for the funding of RSE Research Awards. It is essential that the Government funded schemes managed and delivered so successfully by the RSE, continue to hold their place alongside those available in Scotland from UK national academies and Research Councils, which will be funded on a full economic costs basis. Another notable development was a major streamlining of the way the Society is governed and managed to bring us in line with recognised best practice and to provide a sound basis for continued growth. The changes are described in more detail at the end of this Report, and allow the RSEs elected Council to concentrate on governance and strategy policy, whilst allowing delegation of operational delivery to the senior staff and those Office-Bearers with specic functional responsibilities. An Audit and Risk Committee (operating on a joint basis with our connected charitable Trust, the RSE Scotland Foundation) has also been created to advise the Society and Foundation Trustees on their nancial and risk management obligations. Of course, it is not only suitable structures, but able and dedicated people that make organisations succeed. In that regard, I should wish to pay particular tribute to Sir Laurence Hunter who served as Treasurer for 5 years until October 2004; also to Professor Andrew Miller as General Secretary, and Professor Colin Bird as Fellowship Secretary, who demit office at the Annual Statutory Meeting in 2005, both having served the RSE most ably. The format of this Review of the Societys activities from April 2004 to March 2005, illustrates ways the Society is providing public benet, through the six core activities dened by our Corporate Plan. This document offers only a avour of the range and high quality of activity undertaken by the RSE in the past year. Full details are available on our website and in the formal Trustees Report & Accounts, available upon request. Finally, I am delighted that Sir Michael Atiyah, a former President of our sister Royal Society in London, has been elected to succeed me. He has a wealth of experience to offer and will be an outstanding leader, as the Society further expands its international activities and develops its range of public-benet activities in Scotland.

Lord Sutherland of Houndwood

KT, FBA, PRSE

t h e r oya l s o c i e t y o f e d i n b u r g h

providing public benefit through

authoritative, independent advice and making recommendations to policy decision-takers

THE RSES INDEPENDENT INQUIRIES IN THE MEDIA SPOTLIGHT: PROFESSOR MAXWELL IRVINE & BBCS LOUISE BATCHELOR

THE SOCIETYS 1400 PEER-ELECTED FELLOWS ENABLE THE RSE TO PROVIDE INDEPENDENT, AUTHORITATIVE RESPONSES TO KEY DECISION-MAKERS

A NON-PARTY-POLITICAL, IMPARTIAL BODY, THE RSE SUPPORTS PARLIAMENTARY PROCESS

Independent inquiry into Scotlands Energy

Instigated by the Council of the RSE, the Society set in train a major independent Inquiry into issues for Scotlands energy supply. Chaired by Professor Maxwell Irvine, the Committees remit is to review the issues for Scotlands energy supply and demand between the present and the year 2050; review the options for providing for Scotlands energy supply and demand and provide an evidential base for energy policy in Scotland within the framework of strategies for transport, industrial, commercial and domestic needs. This broadly-based independent Inquiry began taking evidence from a broad range of individuals and organisations nationally and overseas. The RSE expects to publish the Inquiry report by Summer 2006.

Waste Management consultation on Long-term radioactive waste management; The Scottish Executive Enterprise and Lifelong Learning Departments consultation on the Merger of the Scottish Further Education Funding Council and the Scottish Higher Education Funding Council; The House of Lords Constitutional Reform Bill and The Medical Research Councils Code of Practice for the Use of Human Stem Cell Lines.

making the situation worse. Therefore the Scottish Executive has stated that by 2020 40% of Scotlands electricity should come from renewable resources. The students proposals have been compiled in a report, which was sent to decision-making bodies, including the Scottish Parliament, so that the views of the young people can be heard.

Scottish Parliament Science Information Scheme

The RSEs successful pilot Scottish Parliament Science Information Scheme, became a fully endorsed activity of the RSE during this period. The Scheme had been set up by the RSE, the Royal Society of Chemistry, and the Scottish Parliament Information Centre (SPICe) to help inform Parliamentary debates involving scientic issues; raise the prole of science in the Parliament and help ensure MSPs are provided with information by appropriately knowledgeable experts. Over the course of the pilot, MSPs raised inquiries on topics including: Broadband coverage in Scotland; Renewable Energy; Biomass fuels; Smoking in public places; Alternative feed for farmed salmon; Mobile phone radiation, & wind turbines.

Young People Discuss Scotlands Energy Crisis

In June 2004 senior school students from throughout Dumfries and Galloway gathered at University of Glasgow, Crichton Campus, Dumfries to debate the economics, ethics and environmental considerations of Scotlands energy policy in an RSE discussion forum entitled The Energy Crisis: what are the alternatives? Experts from different sectors of the energy industry, including traditional fuels, renewable energy and energy efficiency, introduced the issues and sparked some thoughtful discussions on Scotlands future energy needs. Fossil fuels are running out and have serious environmental consequences. Our current heating and transport fuel consumption is

Evidence Advice & Comment

The expertise of the RSEs multidisciplinary Fellowship was harnessed to provide 27 authoritative responses to a wide range of public consultations, including: The RSEs rst Position Paper: Climate Change and the Management of Scotlands Natural Heritage; The Committee on Radioactive

t h e r oya l s o c i e t y o f e d i n b u r g h

providing public benefit through

supporting and enhancing excellence in the Scottish research base

scottishscience
advisorycommittee

THE RSE SUPPORTS LEADING RESEARCHERS WORKING IN SCOTLAND

THE SCOTTISH SCIENCE ADVISORY COMMITTEE IS HELPING IDENTIFY SCIENCE PRIORITIES IN SCOTLAND

TEACHING FELLOW MS KAREN McNISH AND THEN DEPUTY FIRST MINISTER JIM WALLACE MSP

Research & Enterprise Awards

Each year, more than 1.7million is made available to exceptionally talented academics and potential entrepreneurs through the Society. These awards enable some of the brightest researchers from home and around the world to develop their ideas here in Scotland. The following were awarded during 2004 2005: 1 BP Personal Research Fellowship, 3 Scottish Executive Personal Research Fellowships, 3 Scottish Executive Support Fellowships, 2 Lloyds TSB Personal Research Fellowships, 2 Lloyds TSB Research Studentships, 2 Wellcome Research Workshops, 2 Cormack Undergraduate prizes, 1 postgraduate prize and 6 vacation research scholarships, 6 Lessells Travel Scholarships & 3 Scottish Executive Science Fellowships for Teachers.

enables the teachers to bring an added dimension to the course work they teach in the hope of stimulating their pupils in their chosen subject. It is also hoped that the new material produced through this Fellowship scheme will be of broad benet within the Scottish education system. At a Science in the Parliament event held on 10 November, the three 2004 Teaching Fellows received their awards from Jim Wallace MSP, then Deputy First Minister.

New Appointments for SSAC

The Scottish Science Advisory Committee (SSAC) is an entirely independent body, chaired by Professor Wilson Sibbett, and was set up in 2002 to provide strategic advice on scientic issues to the Scottish Executive. The RSE Council appoints the members of SSAC, but does not control the advice given by the SSAC. Having completed its rst phase, and with a more focused remit from the Scottish Executive, eleven new replacement members were appointed in June 2004, following an open, highly-competitive process which attracted over 70 applicants, including several from overseas. The new appointees are: Professor Steven Beaumont; Professor Geoffrey Boulton; Professor Muffy Calder; Professor Sir Kenneth Calman; Professor

John Coggins; Professor Julie Fitzpatrick; Professor Peter Grant; Dr Stuart Monro; Professor Peter Morgan; Professor Richard Morris; Dr John Nicholls; Professor Stuart Reid; Professor Jonathan Seckl; Dr Barbara Spruce; Professor Joyce Tait; Professor Chris van der Kuyl; Eur Ing Graham Wren. In this period, the SSAC produced key reports on: Investing in Scientic Talent, November 2004; Knowledge Transfer: Science to Scottish Businesses, November 2004. These can be found on its website: www.scottishscience.org.uk

Teaching Fellowships
Funding from the Scottish Executive Transport, Enterprise and Lifelong Learning Department (SETELLD) enables the Society to award Science Fellowships for Teachers. These awards make it possible for teachers, based in Scottish schools, to take time out of the classroom to update and refresh their knowledge and develop new connections likely to be of benet to schools. This

Strategic advice will strengthen our science base and enhance Scotlands reputation as a leading country for research excellence

t h e r oya l s o c i e t y o f e d i n b u r g h

providing public benefit through

supporting the commercialisation of research and innovation

PROFESSOR IAN UNDERWOOD 2004 WINNER OF THE GANNOCHY TRUST INNOVATION AWARD OF THE ROYAL SOCIETY OF EDINBURGH

THE SOCIETY CONTINUES TO DO ITS UTMOST TO SUPPORT THE COMMERCIALISATION OF RESEARCH AND INNOVATION

MED'S ULTRA-MINIATURE DISPLAY DEVICE, PIONEERED BY PROFESSOR IAN UNDERWOOD & COLLEAGUES

Innovation & Enterprise

Innovative research in such areas as healthcare, the ageing population, communications, and the environment is being supported through the RSE, in partnership with key funders in the public and private sectors. In the period 2004-2005, the Society awarded 14 Enterprise Fellowships, 12 funded by Scottish Enterprise and 2 by PPARC. The aim of these highly competitive schemes is to increase the commercialisation of the Scottish academic research base, raise understanding of commercialisation throughout Scottish universities and research institutes, and to create sustainable companies with high-value jobs. Enterprise Fellows receive a years salary, business training, support funds and access to business advisers and mentors to assist them form their spin-out companies. Following the success of the Fellowships funded by Scottish Enterprise and PPARC and managed by the RSE, the BBSRC is also now working with the RSE to support the commercialisation of research and innovation.

Encouraging & Rewarding Innovation in Scotland

Scotlands top award for innovation, The Gannochy Trust Innovation Award of The Royal Society of Edinburgh was presented to Professor Ian Underwood, for the contribution he has made throughout his career to the development in Scotland of highly innovative optoelectronic display devices. Professor Underwood has created a world record-breaking technology an ultra-miniature television-quality display built on a silicon chip. The coveted title, which also carries a cheque for fty thousand pounds and a specially-commissioned gold medal, was bestowed upon Professor Underwood by RSE President Lord Sutherland of Houndwood, at an awards ceremony held at The Royal Museum of Scotland on 1 October 2004. Following an open competition run by The Royal Society of Edinburgh, Professor Underwood was selected by a distinguished judging panel, Chaired by Lord Ross, and including: Sir Bruce Pattullo, Professor Andy Walker, Dr Ian Sword and Dr Russell Leather. Professor Underwood gave an update on his work at a lecture given at the Society on March 7 2005. The Panel also selected

the 2005 winner, Mr John Harrison of the Surfactant Technologies Group whose innovation, MicroEmulsions Technology, has the potential to make a signicant environmental and economic contribution in Scotland through its industrial cleaning applications.

RSE Entrepreneurs Club

Past and present Enterprise Fellows, commercialising their research with support from the Society and key funding partners, Scottish Enterprise, PPARC and BBSRC, met at the RSE in January to share their experiences at the inaugural meeting. RSE Fellows with knowledge of spin-out companies act as guest speakers at these events and as mentors to Enterprise Fellows.

By working together, we can achieve more so that public and private funds are spent wisely.

t h e r oya l s o c i e t y o f e d i n b u r g h

providing public benefit through

communicating knowledge and understanding

obesity become the most important nutritional problem of the new millennium? What impact does obesity have on health? How can we prevent this rising tide of obesity which if not countered could reverse the increased longevity achieved in the last three decades by improvements in health?

HIV and AIDS in Scotland: Beyond the 1980s

Dr Gordon Scott, Department of Genito-Urinary Medicine, Royal Inrmary, Edinburgh and Mr Neil Gerrard MP, Chair, All Parliamentary Group on AIDS were the keynote speakers at the Societys Discussion Forum on 8 December 2004. Having once been dubbed the AIDS Capital of Europe much has been achieved in terms of infection control and patient care in Edinburgh, and Scotland generally. However, we are inevitably seeing the international dimensions of this epidemic and the knock on effects that this is having on many countries as well as our own. The meeting considered the future of this epidemic and what can be done to control it.

THE RSE IS A MULTI-DISCIPLINARY FORUM WHERE THE PUBLIC AND SPECIALISTS DISCUSS ISSUES OF ENDURING IMPORTANCE

THE SOCIETYS HANDS-ON ACTIVITIES SEEK TO INSPIRE OUR YOUNG PEOPLE AND STIMULATE THEIR INTEREST IN SCIENCE AND SOCIETY

Forums for Knowledge

A neutral forum providing events for the public and the specialist, the Society delivered 20 Lectures, 4 Discussion Forums, 6 Conferences, 1 Workshop, and 3 Award Ceremonies. These included: The Bruce Preller Prize Lecture, The Threat of Terrorism The Place of Science by Sir Keith ONions, The Coming Century Ten Trends to Back, by Frances Cairncross, Fire and Structures Implications of the World Trade Center Disaster, and the CRF Prize Lecture, entitled Pre-mRNA Splicing: the Tie that Binds by Professor Joan Steitz, Yale University. Three meetings a joint lecture with the Scottish Crop Research Institute, the CRF Prize Lecture, and a joint conference with the Royal Swedish Academy of Sciences were held outwith Edinburgh. The four Discussion Forums, on Fingerprint Identication, Secular Europe and Religious Turbulence, HIV and AIDS in Scotland and Neurosurgery for Mental Disorder met with an encouraging response, audiences being over target in most cases. Several full reports have been published and are available in hard copy from the Society, or on the RSE website.

Taylor Woodrow plc, explored whether there is there a Two Cultures gap between engineering and the creative arts and if engineers understand the contribution they make to the arts and do those in the arts understand the contribution made by engineering. He said the so-called creative industries are the critical battlegrounds for the wealth-creating society, that Engineering has a key role to play and there is much to be gained from strengthening the communication bridge between the two disciplines. Considering the relationship between engineering and some areas of the arts, Dr Hawley expressed the hope that his lecture might start off a process leading to a greater mutual understanding between the two disciplines.

Inspiring Young People

The Society's programme of educational activities for Young People has expanded the scale of its activities. Thirteen Talk Science schools talks were given in this period and Maths Masterclasses organised by the RSE at Aberdeen City Council, The University of Dundee, Kelvinside Academy, and Queensferry Primary School. The weeklong non-residential Summer School at Heriot-Watt University gave S5 and S6 students from the City of Edinburgh, East Lothian and Midlothian a taste of university life and of the courses and careers they might want to take up in the future. The RSE Young Peoples Programme visited Arbroath on 26 28 October for an RSE Roadshow. Professor Sue Black gave a talk to S2 students at Arbroath Academy entitled Who am I? Professor Ian Wilmut delivered the Societys 2004 Christmas lecture in Pitlochry Festival Theatre to an audience over 250 local Standard Grade students. Entitled, Why Clone? Cloning in Biology and Medicine, the schools talk was followed by an illustrated public lecture in the evening.

The Health and Psyche of the Scottish Nation

The Health and Psyche of the Scottish Nation was the topic considered at the Society in association with the Edinburgh Lectures Partnership. The Society hosted Professor Roland Jung, Chief Scientist, Scottish Executive and Dr James Robson, National Team Medical Co-ordinator, Scottish Rugby Union on 21 January 2005. Sport and exercise play an ever-increasing role in the health of both the individual and the population at large, whether actively participating or simply observing the achievements of others. So, how has

Bridging the gap between Engineering & The Creative Arts

In an event organised in association with The Royal Academy of Engineering, entitled Engineering and the Creative Arts A New Frontier?, Dr Robert Hawley, Chairman,

t h e r oya l s o c i e t y o f e d i n b u r g h

providing public benefit through

promoting the international awareness of Scottish research and innovation

Visit by the National Natural Science Foundation of China
As part of a European tour, a delegation from the National Natural Science Foundation of China, led by Professor Zhu Zuoyan, Vice-President, visited the RSE in September 2004 to meet Professor Stephen Blackmore and RSE staff. While in Scotland, the group also visited the universities of Aberdeen and Edinburgh. The NNSFC is keen to develop more extensive links with Scotland. Chinas science base is developing fast both in scale and quality, and 2005 has also been designated the Year of UK Science in China. In this context, opportunities for Sino-Scottish scientic collaboration would seem to be opening up at a rapid rate. The Society has responded by setting up the RSE China Forum, chaired by Professor Stephen Blackmore, which met for the rst time in January 2005.

PROFESSOR RONA MACKIE & PROFESSOR JAN PALOUS, SIGN A MEMORANDUM OF UNDERSTANDING

SCIENCE SCOTLAND SEEKS TO SHOWCASE TO AN INTERNATIONAL AUDIENCE, CENTRES OF EXCELLENCE IN SCOTLAND

International Exchange Programmes

The RSE's expanding International Exchange Programmes enable top Scottish-based researchers, in any eld, to collaborate with the best of their counterparts anywhere in the world. They offer researchers from Scotland the opportunity to travel on a short visit of up to 4 weeks to further research collaboration and also for Scottish researchers to invite foreign colleagues to visit Scotland. They have been well subscribed, with a total of 45 exchanges taking place 8 on the bilateral programmes run with China, Poland and Taiwan and 37 on the open programme with visits to/from various countries including Armenia, Argentina, Australia, Belgium, Brazil, Denmark, France, Germany, Hungary, Italy, Jordan, Lao PDR, Latvia, The Netherlands, New Zealand, Nigeria, Russia, Slovakia, South Africa, Spain, Turkey, Ukraine, and the USA.

of the Academy, Professor Helena Illernov. Professor MacKie visited the Institute of Molecular Genetics where she met its Director, Professor Vclav Pac es, now President of the Academy. This visit led to the joint signing of an agreement at the RSE in May 2005 by Professor Jan Palous , President of the Council for International Affairs, Academy of Sciences of the Czech Republic and Professor MacKie.

RSE European Policy Forum

A small discussion dinner was held on the eve of a conference, Scotlands Role in the Enlarged Europe to allow conference speakers and other invited guests to discuss how the RSE may take forward the idea of a European Policy Forum. This body was created in Autumn 2004 and is chaired by Sir David Edward.

Brain Science
The Scottish Executive organised a season of trade mission events in the Netherlands in autumn 2004, promoting Scotland. The RSE was invited to organise a one-day, scientic meeting similar to the event held during the Scotland in Sweden season in 2002. An event on Brain Science was organised jointly by the RSE and the Royal Netherlands Academy for Arts and Sciences and was held at the Academys 17th-century headquarters in the centre of Amsterdam on 1 October 2004. This top-level scientic meeting brought together experts from Scotland and the Netherlands to stimulate discussion and identify possible research collaboration in the future. The preceding evening, Professor Richard Morris gave a well attended public lecture on how Brain Science could transform our lives in the 21st Century.

Science Scotland
This is a publication which aims to enhance the reputation of Scottish science internationally. Three issues, two on physics and one on Understanding the Genome, were published in the past year. The publication is distributed to a wide international readership of scientists, science managers, policy makers and government staff around the world, using the networks of the FCO science attachs, British Council science staff, Scottish Development International eld offices and other networks. The project is being run by the RSE, with support from the Scottish Executive. As well as the paper edition, Science Scotland has a website (www.sciencescotland.org) and readers may register to receive an ezine. A CD has been made of the rst two issues.

Forging Strategic Links with Overseas Academies

In this period, much work was put into laying the foundations for Memoranda of Understanding between the RSE and overseas academies. The Societys International Convener, Professor Rona MacKie visited the Academy in Prague in December 2004 and met the President

t h e r oya l s o c i e t y o f e d i n b u r g h

providing public benefit through

sustaining and utilising the expertise of its multidisciplinary Fellowship, and recognising outstanding achievement and excellence
contribution to academic life in Scotland and internationally and to Professor Robin Milner for his outstanding contributions to software engineering. The Medallists were selected by the RSE in recognition of intellectual endeavour which has had a profound inuence on peoples lives worldwide.

Breadth of Expertise Increases

Fellows are greatly involved in helping the Society to deliver public benet activities in partnership with its dedicated, professional staff. The Society currently has 1299 Ordinary Fellows, 30 Corresponding Fellows and 68 Honorary Fellows. In March 2005 the RSE announced the election of 55 Ordinary, 7 Corresponding and 4 Honorary Fellows including: Writer and Broadcaster, David Attenborough; Michael Porter, a globalauthority on competitive strategy; John McCarthy, the Co-founder of Articial Intelligence; Michael Berry, one of the worlds most famous Theoretical Physicists; and Elizabeth Loftus, internationally renowned expert on Eyewitness Recall. This election was carried out by Postal Ballot for the rst time.

LORD SUTHERLAND CONGRATULATES PRESIDENT ELECT SIR MICHAEL ATIYAH

ROYAL MEDALLISTS SIR PHILIP COHEN, PROFESSOR ROBIN MILNER, SIR NEIL MacCORMICK (l r)

Alan Greenspan joins the ranks of Honorary Fellows of the RSE

Honorary Fellowship of the Society was conferred, in person, upon the Chairman of the Board of Governors of the Federal Reserve, Dr Alan Greenspan Hon KBE. He is internationally recognised as a leading gure in United States' economic policy. Lord Sutherland admitted Dr Greenspan to Honorary Fellowship of the Society at a ceremony in St. Bryce Kirk, Kirkcaldy, following the Bank of Scotland Adam Smith Lecture, held under the auspices of Fife College on February 6 2005. Dr Greenspan delivered the Adam Smith lecture at the invitation of the Chancellor of the Exchequer, Gordon Brown, MP.

Abel Prize, regarded as the Mathematicians' Nobel Prize, presented by His Majesty King Harald of Norway. Sir Michael is only the second person to have been sometime President of both The Royal Society of Edinburgh and The Royal Society in London, the rst being Lord Kelvin. Sir Michael was one of the pioneers in the development of K-theory. Knighted in 1983, he received the Order of Merit in 1992, was Master of Trinity College Cambridge from 1990 to 1997 and was President of The Royal Society of London from 1990 to 1995 where he had been elected to Fellowship at the notably young age of 32. Sir Michael was until recently President of Pugwash and is Chancellor of the University of Leicester.

Bicentenary Medals
The outstanding service to the Society of Professor John Beck, Professor John Laver and The Rt Hon Lord Ross was recognised in Dundee during the Summer of 2004 when each was awarded the RSEs Bicentenary Medal. This prestigious award for distinguished service was presented by the President, Lord Sutherland during a reception held at The University of Dundee. Around 150 RSE Fellows and guests were present at the Summer Reception held during the University of Dundees graduation celebrations. Professor John Beck, Professor John Laver and Lord Ross have played key roles in recent years as the RSE has positioned itself to be of greater benet to the wider community in post-devolution Scotland.

President-elect
Described as one of the worlds greatest living mathematicians, Sir Michael Atiyah is to be the Societys next President. In 2003 he was presented with The Royal Medal by HRH The Duke of Edinburgh, in recognition of intellectual endeavour which has had a profound inuence on people's lives, worldwide. In 2004, he was joint recipient of the

Royal Medals for Outstanding Achievement

The achievements of three individuals whose work has brought about public benets on a global scale received Royal recognition in September 2004. Royal Medals were presented by Lord Sutherland to: Professor Sir Philip Cohen for his outstanding contribution to Life Sciences; to Professor Sir Neil MacCormick for his outstanding

t h e r oya l s o c i e t y o f e d i n b u r g h

Corporate Governance & Management

At a well-attended Extraordinary Meeting of Fellows in September 2004, extensive changes to the Societys Laws were unanimously approved, to introduce improved governance and management structures. These changes followed extensive consultation with Fellows and deliberation by Council, and took effect from the Annual Statutory Meeting (ASM) on 25 October 2004. The main purpose of the changes is to allow greater clarity of roles between those responsible for governance and management, and to allow more delegation to those responsible for operational delivery. One of the rst consequences is that the Trustee membership of Council was reduced from 25 to 12, with the 7 Office-Bearers and 5 Ordinary Members elected at the ASM, as shown below. The Curator, International Convener, Programme Convener, Research Awards Convener and Young Peoples Convener continue with largely unchanged roles, except they will not be Trustees, and they will be elected members of a newly created separate Executive Board which replaces the Business Committee. It is chaired by the General Secretary and also includes as voting members, the Treasurer, the Convener of the RSE Scotland Foundation, the Executive Secretary (who has been retitled as Chief Executive) and the Director of Finance. This Board will have substantial delegated authority from Council and will meet quarterly along with the other members of the senior staff management group. A new independent Audit and Risk Committee will be created to replace the Treasurers Committee. There will no longer be Secretaries to Meetings and their duties will be reallocated to the Programme Convener and Fellowship Secretary. The election or re-election of Council members and other Officebearers will take place annually, normally at the Annual Statutory Meeting, but will be by postal ballot of all Ordinary Fellows so that the vote is no longer restricted to those able to attend the ASM, which will now be held earlier in October. It is intended the ASM will allow much more detailed consideration of the Trustees and Office-Bearers reports and hence not followed by a public event. This format was used for the ASM on 25 October 2004 and was much appreciated by those present. Most Trustees and Office-Bearers will continue to serve up to 3 years but the terms of the General Secretary, Treasurer and Programme Convener have been reduced from 5 to 4 years.

Council of The Royal Society of Edinburgh (RSE) President: Lord Sutherland of Houndwood Vice-President: Professor R G L McCrone Vice-President: Professor J Coggins Vice-President: Professor J Mavor (From October 2004) General Secretary: Professor A Miller Treasurer: Mr E Cunningham (From October 2004) Councillors Professor R Asher Mr E Brown Professor T Durrani Professor R M MacKie Dr I P Sword

Executive Board General Secretary: Professor A Miller Treasurer: Mr E Cunningham Curator: Dr B E Moon Research Awards Convener: Professor D H Saxon International Committee Convener: Professor R M MacKie Programme Convener: Professor I H Stevenson Young Peoples Committee Convener: Professor C A Tickle Chief Executive: Dr William Duncan wduncan@royalsoced.org.uk

The Society is registered in Scotland as Scottish Charity No. SC000470 Inland Revenue Claim Board Reference CR 18102

t h e r oya l s o c i e t y o f e d i n b u r g h

nancial review
Income
Income for year ended 31 March 2005 Promotion of research and innovation Research awards Scottish Executive Research awards Scottish Enterprise Research awards charitable trusts 000 2005 633 616 554 1,803 Science promotion and advice Meetings Education Academic/industry links International activities
Research Awards Scottish Executive Research Awards Scottish Enterprise Research Awards charitable trusts Science Promotion & Advice Scottish Executive grant for activities Scottish Science Advisory Committee Own Income Appeal Receipts 21% 20% 18% 9% 13% 5% 13%
(including secondment of staff from British Council)

000 2004 21% 20% 18% 564 591 509 1,664 85 6 3 160

76 10 182 268 9% 13% 5%

254 406 156 146 59 155

Scottish Executive grant for activities

(mainly allocated to science promotion and advice and including staff secondment)

Scottish Science Advisory Committee Own income Fellows subscriptions Other donations Interest and dividends

423 149 161 67 168 396 22 3,061

Appeal receipts
1%

13% 1% 100%

360 57 2,897

Total income

Expenditure

Expenditure for year ended 31 March 2005 Cost of generating funds Promotion of research Research awards Prizes and grants Science promotion and advice Publications Meetings Educational activities Academic/ industry links International activities Evidence, advice and comment

000 2005 7 1,781 131

1% 59% 4% 21 240 65 10 186 115

000 2004 9 1,626 137

36 204 78 7 212 78 615 149 52 244 2,979 82 21% 5% 2% 8% 100%

Research Awards Prizes and grants Science Promotion & Advice Scottish Science Advisory Committee Fellowship Office Buildings, management & administration Cost of generating funds

59% 4% 21% 5% 2% 8% 1%

Scottish Science Advisory Committee Fellowship Office Buildings management and administration Total expenditure Net incoming resources for the year

637 156 49 223 2,837 60

t h e r oya l s o c i e t y o f e d i n b u r g h

nancial review
As described earlier, the RSE continues to engage in a wide range of activities and thereby has been successfully contributing to the Scottish community. The nancial results for the year 2004/05 demonstrate, through the income and expenditure accounts, that these activities were carried out so as to generate a modest surplus which nonetheless showed an increase on the year 2003/04. The principal source of income continues to be the Scottish Executive which provides 45% of total income, mainly through grant in aid. However, there was an encouraging increase in income from charitable trusts. Fellows also made an increased contribution through their subscriptions and donations. This source is especially valuable as it is not tied and therefore available for allocation to wherever there are uncovered needs. At the same time, the balance sheet was strengthened in part through the performance of the RSE's investment portfolio and in part through the effective management of our current assets. These improvements have contributed towards the RSE's goal of achieving a stronger nancial base from which it can offer an expanding service to the community in the future. Edward Cunningham CBE, FRSE, Treasurer September 2005
Balance Sheet 31 March 000 2005 Tangible Fixed Assets Fixed Asset Investments Loan to RSE Scotland Foundation 2,420 2,180 1,985 6,585 Current Assets Current Liabilities Net Assets Represented by General Funds Designated Funds Restricted Funds 173 5,764 1,343 7,280 69 5,764 1,214 7,047 1,249 (554) 7,280 000 2004 2,476 1,989 2,031 6,496 961 (410) 7,047

The gures above have been extracted from the audited accounts for the period ended 31 March 2005 which carried an unqualied audit report. The full Trustees' report and audited accounts are obtainable in hard copy from 22-26 George Street , Edinburgh, EH2 2PQ or on the RSE website www.royalsoced.org.uk INDEPENDENT AUDITORS STATEMENT We have examined the summarised nancial information which is prepared for the purpose of inclusion in the Societys annual review. The Council is responsible for the preparation of the nancial information. We have agreed to report on its consistency with annual accounts on which we reported on 5 September 2005. Basis of opinion We have carried out the procedures we consider necessary to ascertain whether the summarised review is consistent with the annual accounts from which it has been prepared. Opinion In our opinion the nancial review is consistent with the annual accounts for the year ended 31 March 2005.
HENDERSON LOGGIE, EDINBURGH, SEPTEMBER 2005

RSE
The Royal Society of Edinburgh was founded in 1783. It is Scotlands national academy. Its Fellowship includes some of the best intellectual talent in academia, the professions and business. It facilitates public debate, research programmes, educational projects and strategy formulation. Its strength is its diversity and impartiality. The Societys unique multi-disciplinary approach enables it to draw from and link with a broad spectrum of expertise to advance the understanding of globally important issues. In fullling its Royal Charter for the advancement of learning and useful knowledge, the RSE is seeking to contribute to the social, cultural and economic wellbeing of Scotland.

The Royal Society of Edinburgh 22-26 George Street, Edinburgh EH2 2PQ T F E W 0131 240 5000 0131 240 5024 rse@royalsoced.org.uk www.royalsoced.org.uk

Scottish Charity No. SC000470 ISSN 1742-1810