Annual Report 2012

Company No. 323575

Annual report and accounts

for year ended 31 December 2012

The Physiological Society Annual Report and Accounts 2012 Company No. 323575

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Contents Page

Report of the Trustees 2

Independent auditor’s report 31

Statement of financial activities 33

Balance sheet 34

Accounting policies 35

Notes to the financial statement 37

Standing information 48


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Report of the Trustees

The Trustees are pleased to submit this report and the financial statements for the year to 31 December 2012. Further information about The Physiological Society’s activities is given in a separate document, the Annual Review, which can be obtained from the registered office or online from www.physoc.org.

Charitable objects of The Society The objects of The Physiological Society, also referred to in this report as ‘The Society’ as set out in its Articles 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.’

The major activities we undertake to achieve our charitable objects include publishing two journals, supporting a number of scientific meetings annually, and awarding grants to allow Members to travel to scientific meetings and to carry out research collaborations. Interaction with outside bodies is encouraged through representation on various councils and committees, and active membership of the Society of Biology and the Federation of European Physiological Societies.


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President’s report

My term as President of The Society began at the Annual General Meeting (AGM) in Edinburgh in July 2012 when Mike Spyer stepped down. I have inherited from him a Society in excellent shape. Although presidents may come and go, it is clear that the substantial changes we have seen in 2012 are in large part due to Mike’s experience of handling complex affairs during times of rapid change.

My priority is, as it was for Mike and previous Society presidents, to place physiology as the central discipline in the understanding of the nature of living beings. To do this we need to foster the science that makes this understanding possible. By supporting The Society’s membership we inevitably support and further the discipline. Like the constellation of ideas it represents, ‘physiology’ is a word with historic roots (actually being in the dictionary long before the arriviste word ‘biology’, which appeared only in the early 1800s). We should recognise that The Society has and continues to have a key role in furthering the discipline, by helping us speak up for physiology in the places where we work, in the funding agencies and in our outreach programmes to educate in schools and universities alike.

Thus it is a great pleasure to be able to thank, along with Mike Spyer, Louise Robson, who stepped down at the AGM in Edinburgh in July as an indefatigable chair of the Education Committee, and Jeremy Ward who, after longer than almost anybody on Council can now remember, relinquished the reins of the Policy Committee and helped steer The Society to its new home in London. Their roles have been taken up by Blair Grubb and Mary Morrell respectively and they, along with Richard Vaughan-Jones as Deputy President, form part of the new Executive Committee. We bid farewell to Patricia de Winter, Susan Jones and Ian McGrath. Ian in particular has contributed to the work of the Executive Committee in many key roles since 2004 and deserves special thanks. We also welcome new members of the Council which in its first few meetings has shown how vigorous and robust the physiological discussion can be.

The year 2012 has been a year of exceptional change for The Society. Philip Wright, the Society’s Chief Executive, describes these changes in his report, but, momentously, this has been the year when The Society finally acquired and moved into its own headquarters, Hodgkin Huxley House. The proposal of a wholly-owned office had been discussed regularly (and rejected) at The Society’s committee meetings for well over 50 years. With these new headquarters we can now plan for an exciting and dynamic future. In addition we took steps to launch a new open access journal in conjunction with our colleagues in the American Physiological Society. As I now write, Physiological Reports has just published its first paper. The coming International Union of Physiological Sciences (IUPS) Congress hosted by The Society in Birmingham in July is a major event in the calendar and represents the result of long-term planning by The Society. It is a meeting we can look forward to keenly and I am sure it will be, as with the last IUPS congress The Society hosted in Glasgow in 1993, a truly outstanding international meeting.

Jonathan Ashmore

President


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Chief Executive’s report

2012 was a very busy year for The Society: in addition to running a full programme of meetings, much of the groundwork was completed for the scientific programme of the IUPS Congress in 2013; we expanded our education, outreach and policy activities; we negotiated a new contract with our publishers; and on top of all that, we purchased a building into which we moved in December.

The publications contract negotiation was carried out under the auspices of the Publications Task Force and the leadership of Jonathan Ashmore. Mike Shipston led the negotiations with Wiley, with whom we had entered into pre-negotiation discussions. Our position was well developed with a clear idea of what we expected from the new contract beyond our current one, which runs to the end of 2013. After discussions lasting several months, we reached a very satisfactory settlement that not only provided improved financial returns to The Society through to December 2018, but also gave us greater flexibility for new initiatives. The team from Wiley (formerly Wiley-Blackwell) was very constructive in the discussions and we look forward to working with them on the respective journals going forward. During the discussions they also committed a significant sum to the fit-out of the auditorium in our new premises and committed to being the principal sponsor at IUPS 2013, for which we are very grateful.

The Publications Task Force laid the groundwork for the creation of a new open access (OA) publication for The Society. After discussions with the American Physiological Society (APS) initiated at the joint executive meeting at EB2012 in San Diego in the spring, the societies agreed to launch a jointly owned ‘gold OA’ journal to be called Physiological Reports. An agreement was signed in the autumn and following discussions, entirely separate to our own negotiations, we signed a five-year contract with Wiley to publish the journal.

The early discussions with APS were built on a series of interactions over recent years and the OA journal is not the only product of these: we have established reciprocal support of meetings with submitted symposia and significantly increased our collaboration on education and outreach matters. Much of this is about learning from each other and ensuring we do not ‘reinvent the wheel’.

The purchase of Hodgkin Huxley House (HHH, originally called Priory Court) was the culmination of a great deal of work by the Property Task Force, under the leadership of Mike Spyer. The Task Force, with strong input from Council, carried out a search against a clear brief and with some good fortune quickly identified a location near Farringdon Station. During the design and fit-out, consideration was given not only to the building as an office, but also to its ability to support our charitable activities and provide a revenue source through sub-letting of some floors and through the external hire of meeting rooms.

The purchase of HHH also allowed us to re-locate two offices. It was a significant upheaval for the Cambridge staff and I would like to thank them for their support and contribution in assisting the move: indeed all the staff not only sustained our operations during the upheaval, but also pitched in to make sure the move was a success. The single location is already paying off in greater collaboration between events, publications, and education and outreach activities that will benefit The Society and physiology as a whole.


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Last year saw the retirement or departure of three long-serving members of staff. Lynn Jeppesen and Jill Berriman, both of whom gave well over 20 years’ service to The Society as part of the Publications team. 2012 also saw the retirement of Carol Huxley after 25 years’ service, latterly serving as Head of Publications and Managing Editor of The Journal of Physiology. All three have contributed to the success of the journals, especially Carol who helped with the previous contract negotiation with Blackwell (now Wiley) and, with the Publications Committee, Editors-in-Chief and Senior Editors, put The Society’s publications on such a sound footing. On a personal level Carol provided me with good advice and insight during my early days at The Society. So a big thank you to Carol, Jill and Lynn.

In addition to my thanks to all the staff for their support during the move I also want to add my thanks to Mike Spyer who stepped down as President in July 2012. He provided excellent leadership of Council and the Executive and gave me good advice as I became familiar with The Society. I would also like to thank Louise Robson and Jeremy Ward, who stepped down as chairs of the Education and Outreach, and Policy Committees respectively. I very much enjoyed working with them and, indeed continue to enjoy working with the new Executive Committee and Council.

Philip Wright

Chief Executive


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Public benefit statement

Physiology is the science of how humans and other animals function in an integrated way and is the basis for many biological and clinical sciences. The Society supports research to advance the understanding of physiology and disease, as well as education and public engagement to develop an informed society.

The charitable purposes of The Society are to support and sustain the discipline of physiology through the advancement of science and education and thereby the advancement of health.

The benefits provided by The Society are in the form of: the publication of scientific journals; the holding of meetings and conferences to disseminate advances in physiology; the provision of educational resources to support the understanding of, and encourage the study of, physiology; the provision of grants to support attendance at scientific meetings; and the promotion of the importance of physiology to the public, through free public lectures and other outreach activities to provide an insight into how basic research translates directly to improving human health. We support our Members who conduct research, providing that this is within the principles of UK and European legislation.

The beneficiaries of The Society include those involved in research, teaching or studying physiology in universities, industry, colleges and schools. Members of the public who wish to learn more about physiology are beneficiaries and all will ultimately benefit from physiological advances that promote health and treat disease. Further beneficiaries are other charities promoting science, education and health.

Some benefits are restricted to Members of The Society who are scientists or trainee scientists. These benefits (e.g. grants to present work at scientific meetings or provide access to specialist training courses) would not be directly relevant to the public. Other benefits such as educational materials, scientific publications and outreach events are available to all.

Provisions are in place for those on low incomes. Membership and registration fees are reduced or waived for students and for those from developing countries. Educational materials and our magazine are available to all free of charge. Our journals are offered at a reduced price in developing countries and online access to articles is freely available to all after twelve months from their date of publication. Publishing work in our journals is free to authors, unless they want to make their article freely available immediately on publication (open access), in which case an article-processing charge will apply.

Private benefits are incidental and mainly consist of prizes for exceptional scientific or educational achievements.

In reviewing The Society’s performance during the year, Council has had regard to the guidance on public benefit issued by the Charity Commission.


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Treasurer's statement

The principal funding sources of The Society in the year were its publishing income (£3,331,000), events income (£372,000), membership subscriptions (£115,000), and income from The Society's investments (£265,000). Charitable expenditure was increased by 21% during 2012, and has supported the objects of The Society as set out in the Statement of Financial Activities on page 33 of this report.

Publishing income, which accounts for 80% of The Society’s total income, showed modest year-on-year growth in 2012. During the year, the Publications Task Force was instrumental in two major developments for The Society; the first was a five-year renewal, through to the end of 2018, with improved financial terms and greater flexibility for The Society, of the main publishing agreement with Wiley. The second was a partnership with both the American Physiological Society and Wiley, to publish the new open access peer-reviewed journal, Physiological Reports, which will launch early in 2013.

Membership income fell by 4% and investment income fell by £105,000 (28%), mostly as a result of the sale of the investment property portfolio in the year.

Events income increased by £277,000 in the year, boosted by advanced income from the IUPS 2013 meeting (£131,000) and income from the Biomedical Basis of Elite Performance (BBEP) meeting (£149,000) which included a £60,000 sponsorship deal with the Gatorade Sports Science Institute. Income from The Society’s Main Meeting remained relatively constant at £74,000.

The operating deficit of £579,000 resulted primarily from the advance expenditure in respect of the IUPS meeting (£309,000), the cost of the BBEP meeting (£184,000) and also non-capitalised legal and professional costs associated with the acquisition of Hodgkin Huxley House (HHH, £115,000). Over a five-year period to December 2012 The Society has generated a cumulative operating surplus of £608,000.

Prior-year losses in the financial markets were recovered in 2012 with fund investments yielding net gains of £507,000 (2011: losses of £411,000) and contributing to an overall fund balance for The Society of £11,900,000.

With the acquisition of HHH, the most significant financial event in the year, The Society has restructured its asset base from primarily investments to a mix of investments and tangible assets. The full cost of HHH (£3,500,000) has been capitalised as a fixed asset, and as such will be depreciated to zero over a period of 50 years. This accounting practice does not of course affect the intrinsic value of the property, which The Society may wish to determine periodically.

The Society held freely available income funds of £6,756,000 at the year end, which represents an operating capacity of 17 months at current levels of expenditure and excludes the guaranteed income included in our publishing agreement with Wiley. These reserves are held to ensure the long-term viability of The Society, particularly in the event of a serious decline in its publishing income. £6,910,000 is held in investments to provide an income stream, should the need arise, to support the charitable activities of The Society for the longer term. The reserves


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policy will be reviewed in 2013 following the rebalancing of The Society’s assets, and in conjunction with the developing five-year business plan.

There was no change in the level of designation (£1,000,000) in respect of the IUPS fund which had a balance of £623,000 at the year-end. This fund will continue to be expended in the run-up to the event in July 2013. No funds are in a deficit position.

Due to both the on-going business review and the uncertainty surrounding future publishing incomes, The Society takes a medium-term view on its investments and their performance. The Society aims to produce above average returns on its portfolio whilst adopting a cautious risk profile. All fund investment income is reinvested. The Society’s investment fund portfolio is managed by Bestinvest (Brokers) Ltd. During 2012 an independent review of The Society’s investment fund managers was initiated that will be completed early in 2013.

In 2012, the Bestinvest managed portfolio returned 9.0%, against its benchmark return of 8.0%. The Society invests in collective investments (unit and investment trusts) plus investment companies. This is designed to give a broad level of diversification across all major assets classes, with the exception of property which has been specifically excluded. The managers have general discretion over the asset allocation and selection of investments within agreed investment parameters. The stated benchmark is the ARC Sterling Balanced index.

Following a recommendation by the Finance Committee, the Council of Trustees sold its portfolio of four investment property units in the year. The disposal, by the managing agents Bidwells Property Consultants, generated £1,417,000, which represented a book loss of £254,000, reflecting the deteriorating property market outside London. Overall, the properties have provided a good return as an investment, though this was unlikely to be sustained. Rental incomes to completion of £80,000 (2011: £167,000) were all applied to charitable activities.

Since this is my last statement as Treasurer, I would like to take the opportunity to say what a privilege and pleasure it has been to work so closely with The Society over the last four years. I believe that The Society is on a sound financial footing that can sustain its vision for future activities going forward. I have greatly enjoyed working with all of The Society’s staff, particularly those with whom I have most closely interacted, Chief Executives Mike Collis and Philip Wright, and Director of Finance, Casey Early. Casey’s professionalism and support has been a major factor in making my tenure a rewarding and enjoyable experience. Finally, I would like to acknowledge the unstinting support of the Finance Committee and to thank its external members who have so generously contributed their expertise to The Society.

Rod Dimaline

Honorary Treasurer


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Structure, governance and management

Council of Trustees The Trustees are legally responsible for the overall governance, management and policy of The Society, ensuring that the charitable objects for which it has been set up are met. The Trustees are also the Directors of the company. The Council of Trustees meets at least 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 22, including two Affiliate representatives. 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 office in London.

Trustees’ responsibilities The Trustees, as directors of the charitable company, are responsible for preparing the Trustees’ Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of The Society and the income and expenditure for that year. In preparing these financial statements, the Trustees are required to:

Select suitable accounting policies and then apply them consistently Observe the methods and principles in the Charities SORP Make judgments and accounting estimates that are reasonable and prudent Prepare the financial statements on the going concern basis unless it is inappropriate to

presume that the company will continue in business State whether applicable UK Accounting Standards have been followed, subject to any

material departures disclosed and explained in the financial statements

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain The Society’s transactions and disclose with reasonable accuracy at any time the financial position of The Society and enable them to ensure that the financial statements comply with the Companies Act 2006. 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.

The Trustees have confirmed that as far as they are aware at the time the report is approved there is no relevant audit information of which The Society’s auditors are unaware, and that they have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that The Society’s auditors are aware of that information.

Trustee induction and training On appointment each Trustee is sent an induction pack which includes Charity Commission leaflet CC3, the governing documents and details of further resources. All new Trustees are


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invited to attend an external Trustee Training course. In 2012, seven Trustees attended Trustee Training courses. In addition, Chantrey Vellacott DFK hosted a Trustee training session prior to the September Council meeting. Trustee group training will be undertaken on a biennial basis at the start of each new term of Presidency.

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.

Executive Committee The Executive Committee works through the Chief Executive to oversee the day-to-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 four years.

The Executive Committee in 2012 comprised:

Mike Spyer President to 5 July 2012 Jonathan Ashmore Deputy President to 5 July 2012

President from 5 July 2012 Richard Vaughan-Jones Deputy President from 5 July 2012 Rod Dimaline Honorary Treasurer David Wyllie Meetings Secretary Louise Robson Chair, Education Committee to 5 July 2012 Blair Grubb Chair, Education Committee from 5 July 2012 Jeremy Ward Chair, Policy Committee to July 2012 Mary Morrell Chair, Policy Committee from July 2012 Mike Shipston Chair, Publications Committee

Committees The Council also has committees and working groups to which it delegates powers, and these groups report back to the Council. Membership of committees is drawn from the Council but also includes other invited members who may be Members of The Society or external. Committees are aligned with the various functional groups in the London office. The main committees in 2012 were Education and Outreach, Finance, Meetings, Membership and Grants, Policy, Publications and Remuneration.

The Finance Committee acts as a reviewing mechanism of all strategic and statutory financial aspects of The Society. It is delegated by Council to oversee all financial aspects so as to ensure The Society’s short and long term ability to achieve its charitable objectives.

In 2012, the Nominations Committee was re-established to ‘seek and assess all nominations for the President, Honorary Membership and membership of the Executive Committee’. It comprises the President, the Deputy President and two other Trustees.


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Management and administration The Society employs a Chief Executive who reports on performance against the strategic and operational plans approved by the Trustees. During the year, the operations in both London and Cambridge were transferred to a newly acquired freehold property in Farringdon, London. The new building will act as both The Society’s primary headquarters as well as supporting its charitable activities.

Annual General Meeting The Society’s Annual General Meeting, open to all Members, was held on Thursday 5 July 2012 at Edinburgh International Conference Centre during the Physiology 2012 Main Meeting. Minutes of the meeting are available on The Society’s website.

Risk management The Trustees have given consideration to The Society’s major risks to achieving its strategic direction and satisfied themselves that systems or procedures are established in order to mitigate those risks. The major risks were considered to be the dependency on publications income, reputational and quality risks relating to The Journal of Physiology, and risks associated with Trustee board selection and composition.

Volunteers We could not achieve our charitable objectives without the commitment and hard work of our Members (and some non-members), many of whom give freely of their time to act as journal editors, committee members and volunteers to support our events and activities. The Society wishes to thank all those who have supported it over the last year.


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Publications: The latest research, the highest standards

In 2012, The Society renewed its partnership with Wiley-Blackwell (now Wiley) for publication of its two existing journals, The Journal of Physiology (The Journal) and Experimental Physiology, for a further five years. The journals continued to be available in print and online, via HighWire Press, the Wiley Online Library and on PubMed Central. In addition, The Society laid the groundwork for a new, open access journal, Physiological Reports, jointly owned by us and the American Physiological Society. After registration the new journal will be published by Wiley, with a launch date in early 2013.

The Journal of Physiology’s editorial board continued its strategy to reconnect with and attract content from research communities that have traditionally been its strongholds, in particular, neuroscience, biophysics and computational physiology.

In addition to attending a number of key conferences in these fields, The Journal published several special, virtual and symposium issues. The 1 September 2012 issue marked the first anniversary of the publication of JP Neuroscience (JPn), with 8 out of 24 print and online issues of The Journal now dedicated to neuroscience every year. The aim of JPn, in response to feedback from the neuroscience community, is to consolidate for the benefit of readers those papers elucidating physiological mechanisms in the brain and nervous system. The issues have attracted a high number of readers and submissions are rising.

Increased visibility of The Journal in 2012 was reflected in the number of full-text downloads over the year, which, for the first time, exceeded 5 million. Submissions to The Journal rose to 1,613 – a 10.5% rise – continuing the trend seen in 2011.The acceptance rate for original research articles remained unchanged at 25%.

The Journal’s new CrossTalk series published its first two debates in 2012, aiming to provide readers with explicit accounts of both sides of a current controversy in physiology, allowing them to understand the arguments and arrive at an informed conclusion on the topic. Comments on the articles can be submitted by readers and will be published if deemed by the editors to contribute substantially to the topic under discussion.

A series of filmed interviews with Consulting Editors Peter Ratcliffe, Colin Blakemore, Peter Hunter, David Attwell, Frances Ashcroft and Bert Sakmann were recorded in 2012 and have been published to coincide with appropriate events or issues. The interviews provide an overview of the work of these eminent physiologists and communicate the ‘excitement of physiology’ to a broader audience. Each of these videos has been viewed several hundred times on YouTube and shown on our conference stand at events including Experimental Biology, the Society for Neuroscience and the Chinese Association of Physiological Sciences. Other Consulting Editors will be filmed during 2013.

Experimental Physiology published 12 online and 6 print issues in 2012, containing high-priority research articles in all areas of physiology, with a focus on translation and integration, alongside commissioned content written by experts in fields of current high interest. Submissions to the journal rose to 525 in 2012, a 6% rise, which continues the trend seen in 2011. The acceptance


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rate of original research papers was 29%. One themed issue and four sets of symposium reports were published in Experimental Physiology in 2012.

As the readers’ interest in print over 2011 and 2012 waned in favour of a clear preference for the online version, the decision was taken to switch Experimental Physiology to online only from January 2013. To coincide with this switch, the editorial board developed a strategy to enhance the online reader’s experience, including development of a mobile optimised version, a ‘New findings’ feature on research articles and an opportunity to comment on review articles, as well as development of a policy for data deposition and accessibility. The latter requires authors to submit their relevant large data sets to the appropriate internationally recognised data repositories and provide links from their paper to the repositories, whilst encouraging authors to upload their small data sets as supplemental files where this facilitates validation of findings and may help lead to further discovery.

Achievements Amongst primary research journals in the Physiology category, The Journal of Physiology

ranked: o First in Total Cites (46,154) o First in Cited Half-life (>10.0) o Second in Immediacy Index (1.386) o Eigenfactor Score (0.08269) o Article Influence Score (1.91) o Third in number of articles published (420) o Fourth in Impact Factor (4.881)

10.5% rise in submissions to The Journal of Physiology; 6% rise for Experimental Physiology

More than 5 million Journal of Physiology papers downloaded; over 900,000 Experimental Physiology papers downloaded

Collaboration with The American Physiological Society (APS) agreed for new open access journal, Physiological Reports, and partnership secured with publisher, Wiley

Strategic aims in 2013 and beyond

The Journal of Physiology Continuing to encourage high-quality submissions through dedicated and focused issues in neuroscience and cardiovascular physiology, with a more thematic and coordinated approach taken generally to the presentation of content to provide authors and readers with the benefits of a specialist journal alongside the traditional benefits of a general journal.

Experimental Physiology Further enhancing journal focus on integrative physiology, encouraging high-quality research submissions and inviting reviews that reflect current topics of interest. Continue to development online publishing features that enhance reader experience including optimal access from mobile devices.


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Physiological Reports Launching a new, open access journal through a unique collaboration between the two largest physiological societies, for the benefit of the physiology community worldwide.

Objectives for 2013 To sustain The Journal of Physiology’s profile at major international meetings and to

reach out to other physiology disciplines such as might be achieved through a presence at the American Heart Association's annual conference

Continue to develop themed Journal of Physiology issues and videos of leading physiologists both for The Journal and The Society

To sustain and further develop the distinct profile of Experimental Physiology by moving to online-only publication and exploring new ways of disseminating research and making data usable, taking advantage of new media opportunities

Successfully launch Physiological Reports, an open access journal produced in partnership with the American Physiological Society


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Events: Cutting-edge scientific exchange

The Society’s Main Meeting, Physiology 2012, took place in July 2012, in Edinburgh. Over 606 abstracts were submitted – the most we have ever received for a Main Meeting. In response to delegate feedback from 2011, our flagship event was held in a dedicated conference centre for the first time. Following the success of Physiology 2012, which was attended by nearly 1000 physiologists, it is the intention to continue this in the future. Post-meeting feedback was extremely positive with an overall participant rating a healthy 2.85 from a possible 3.0 (based on 165 responses).

Earlier in the year, a unique meeting was held at the QEII Conference Centre in London preceding the London Olympic and Paralympic Games. The Biomedical Basis of Elite Performance attracted 500 participants and 107 abstracts. This collaborative meeting featured major partnerships with the British Pharmacological Society, Wiley and the Gatorade Sports Science Institute. Speakers were invited to submit full manuscripts, which were published and made available prior to the meeting.

Our series of Themed Meetings continued to be successful in 2012, covering Cardiac & Respiratory Physiology in September in Manchester, and Metabolism & Endocrinology in December in London (see table, Themed Meetings held in 2012).

We also recognised excellence in physiology by awarding a number of prizes in 2012 (see table, Prizes awarded in 2012).

Our planning for IUPS 2013 really gathered pace in 2012. Following two and a half days of intense meetings, the International Scientific Programme Committee established the full schedule of 103 symposia (over 500 speakers) that will showcase the exceptional range of the physiological sciences in July 2013. Abstract submission, registration and accommodation bookings all opened on 1 September 2012. We all also welcomed Wiley as our principal sponsor and gratefully acknowledge generous support from Lilly UK, the University of Manchester and ADInstruments.

The Society awarded a number of events-related grants in 2012. Two £5000 Special Symposium grants were made to help ensure the success of events held to honour contributions to The Society and physiology by John Coote and David Brown, both of which have received approval to form part of the official satellite meeting programme at IUPS 2013. In addition, an award was made to Cambridge Neuroscience for an event in celebration of the 60th anniversary of the publication of the Hodgkin–Huxley model of the action potential in The Journal of Physiology for which the authors received the Nobel Prize for Medicine or Physiology.

Achievements 1000 attendees at Main Meeting, Physiology 2012 The Biomedical Basis of Elite Performance held to tie-in with London 2012 Olympic

Games Three £5000 Special Symposium grants awarded £10,000 awarded to support 15 non-Society events 24 bursaries awarded to allow early-career physiologists to attend their first Society


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meeting

Themed Meetings held in 2012

Focused Topic Organiser(s) Statistics

Cardiac & RespiratoryTheme – ‘New insights into the molecular basis of cardiac arrhythmias: from animal models to computations’

Ming Lei, Henggui Zhang (University of Manchester, UK) and Christopher Huang (University of Cambridge, UK)

Participants – 139 Abstracts submitted – 76 Overall participant rating – 2.96* (29)

Metabolism & Endocrinology Theme – ‘Brown adipose tissue: a new human organ?’ – jointly held with the Academy for Medical Sciences

Jan Nedergaard (The Wenner-Gren Institute, Sweden), Michael Symonds (University of Nottingham, UK) and Antonio Vidal-Puig (University of Cambridge, UK)

Participants – 137 Abstracts submitted – 51 Overall participant rating – 2.86* (29)

*Rating scale 1 (lowest) to 3 (highest) – Number of respondents in ()

Prizes awarded in 2012

Name Award

Holly Shiels (University of Manchester, UK) GSK Prize LectureHow cool are ectotherm hearts

Jere Mitchell (UT Southwestern Medical Center, Dallas, USA)

Paton Prize LectureNeural circulatory control during exercise: Early insights

Gareth Leng (University of Edinburgh, UK) Annual Public LectureThe loving brain: Monogamy to maternity

Cori Bargmann (Rockefeller University, New York, USA)

Hodgkin-Huxley-Katz Lecture Decoding the olfactory world in time and space

Eugene Lloyd (University of Bristol, UK) Otto Hutter Teaching Prize Lecture Dangerous assumptions and misconceptions: Can physiology teaching help to improve patient safety?

Peter Ratcliffe (University of Oxford, UK) Annual Review Prize Lecture Oxygen sensing in animals

Diane Lipscombe (Brown University, Providence, USA)

Joan Mott Prize LectureThere and back again: G proteins inhibit neuronal calcium ion channels

Strategic aims in 2013 and beyond Following our successful delivery of the 37th Congress of the International Union of Physiological Sciences (July 2013), longer-term planning will incorporate the continued presence of our established flagship annual meeting Physiology, working on dates and venues 3–5 years in advance. From 2013, our Main Meeting will be supported by ‘Topic Meetings’, 2–3 day events with a broad appeal attracting attendees from all of our theme areas, potential partnerships from cognate societies and interest from major funding bodies and sponsors. The


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structure will be based on the highly successful Biomedical Basis of Elite Performance meeting and will incorporate both outreach and education activities together with coordination of publications in our journals. We will also host a series of smaller, specialised meetings here at Hodgkin Huxley House, and Members can still bid to host these at their own institutions, providing further opportunities for Members to input ideas in the events calendar. The overall aim for The Society events portfolio will continue to be to ensure that they provide modern, cutting-edge and friendly environments to foster uninhibited, scientific exchange.

Objectives for 2013 To ensure the continued and successful management and delivery of the IUPS 2013

Congress by creating a lasting legacy; hosting an internationally appealing, well attended and critically acclaimed event. To deliver a meeting that will appeal to the international physiological community and place the science, The Society and our journals at the forefront of the life sciences both in the UK and internationally. To achieve 3500 registered participants and secure 2000 submitted abstracts

To ensure the successful management and delivery of the December 2013 Joint Themed Meeting of the Epithelia & Membrane Transport and Vascular & Smooth Muscle Physiology themes, in Dublin

To secure the venue and dates for Physiology 2014 and to select and schedule both the symposia programme and prize lectures. To negotiate and secure venues and dates for Physiology 2015, 2016 and 2017

To establish a full calendar of Topic Meetings for 2014 and 2015 To develop the concept of focused meetings hosted at Hodgkin Huxley House. To place a

call for proposals, review and schedule a minimum of two such events from 2014


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Membership: Supporting the core of physiology

2012 has been an exceptionally busy year with progress on many fronts, including the re-launch of Physiology News, continued growth in membership and, of course, the purchase of a new home for The Society. However, progress has been less clear in other areas, such as maximising use of the new website, improving the Member directory and support for Society Representatives, who are critical in supporting our Members within institutions.

During 2012 our overall membership increased only modestly, though from an already high level: at the end of 2011 membership stood at 3,198, and rose to 3,240 by 31 December 2012. These figures are based on two factors: retention of full Members and the ability to continue to recruit Undergraduate and early-career Affiliate Members. Such numbers bode well for the future, though we must take care of a potential mid-career membership gap if we do not retain Undergraduate Members as Affiliates, nor convert Affiliates to full membership.

Member figures 2010 2011 2012

Ordinary 18081 1486 1523

Ordinary Retired 313 311

Honorary 59 59 64

Affiliates 841 956 997

Associate 302 20 16

Undergraduates Institutional 167 328 294

Undergraduates Individual 35 36 35

Total 2940 3198 3240

12010 Ordinary Member figures include retired Members, as we did not break these down separately.

2Associate figures in 2010/2011 also included any year’s free Associate membership awarded as part of an undergraduate prize, etc. Associate membership is no longer offered as an option for the schemes.

In January 2012 The Society’s Property Task Force completed its work of establishing a strategy in relation to our future accommodation needs. The review looked beyond office space and explored opportunities to support our charitable objectives and provide a sound investment. In early 2012 we were lucky enough to identify Priory Court, as it was then named, and were able


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to purchase it well within our budget. Contractors were appointed and designs agreed on the fit-out for the new premises. We sought suggestions from Members on names for the property and meeting rooms. On 10 December 2012 The Society moved into the re-named Hodgkin Huxley House.

Hodgkin Huxley House (HHH) provides:

flexibility for the future should our needs change an auditorium (The Bernard Katz Auditorium) that can host theatre-style lectures for a

maximum of 75 or cabaret-style tables for up to 48 people a state-of-the-art meeting room suite (3 x 10 people and combinations thereof) two sub-let upper floors providing rental income

In 2013 we shall be letting Members know how they can use the facilities at HHH for small scientific meetings or other events. The Society will, of course, continue to host meetings and activities across the whole of the UK and Ireland.

In 2012 we re-launched Physiology News (PN) with a new Editor, Michael Collis, and Advisory Board. The redesign was in part a response to the feedback through the 2011 Member survey. We sought to create a more purposeful, modern and structured publication that served the membership in the first place and stakeholders as a secondary audience. In addition to regular reports on Society activities, we are also coordinating content across our communication platforms, from social media, monthly email newsletter and the website. Four issues of the new-format PN have now been produced, including an education-themed special issue.

Our website saw a 12% increase in traffic, with 160,357 visits over the course of the year. The site continued to evolve: new media galleries were launched to share photos, audio and video; a facility was developed for Society committees to allow sharing and discussion of committee papers; and PN was brought online through a new page viewing facility that makes it easier to browse online and provides an optimised facility for mobile devices.

Our travel grants are a key Member benefit as well as a critical element in The Society achieving its charitable objective of supporting the interaction of scientists. In 2012 we awarded almost exactly the same number of Travel Grants as the previous year – which was an all-time high. We awarded 432 travel grants giving a total spend of £215,000. Of these 201 were for The Society’s meetings and 205 for overseas events including 11 laboratory visits.

Achievements Awarded 432 travel grants, a total spend of £215,000 Registered 1,755 Members at four reduced-fee scientific meetings Registered 45 attendees at four free techniques workshops Affiliates were given free online access to The Journal of Physiology and Experimental

Physiology – a benefit previously enjoyed only by full Members 66 sign-ups to free online access to Physiology (the APS’ Quarterly journal) Published 12,500 print editions of Physiology News Received 160,357 unique visits to the website Provided access to membership personnel and stand at eight events


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Improving our membership management and support Our objectives for 2013 are focused on three key activities: improving our membership administration and support; ensuring we maximise the use of HHH and provide access to our Members; and continue to develop the functionality of our website and other communications through a web working group.

Objectives for 2013 To maximise the use of HHH and provide opportunities for Members to use the

auditorium and meeting rooms To improve our membership administration and support for Members through: a review

of our membership recruitment and retention strategy; a review of our Membership Relationship Management system; ensuring rapid responses

To initiate a Governance review to ensure our governing documents are up to date and consider changes to the membership structure, including the appointment of Fellows: changes will be presented at the 2014 AGM

To conduct a membership survey, following up on that in 2011, for the purposes of benchmarking changes, evaluating recent activity and guiding Society actions over the next two years

To develop and launch a new edition of the Grey Book online, to give Members easy and enhanced access to all the standing information that the book provided and a complete, searchable directory of Members

To continue to review and improve our website, with the help of a Member working group, with a view to making it more user-friendly and purposeful, and to further develop the site to more fully integrate audio and video content and social media


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Education: Learning in physiology

With the Olympics coming to London in 2012, we were handed an exciting opportunity to focus attention on the physiology behind elite sports. This, then, provided a theme for our activities in 2012.

Under this umbrella, we launched the nationwide schools’ competition, The Science of Sport: How to Win Gold. Students aged 16–19 were invited to direct their own sports physiology research project and submit their initial findings. Twelve of the entries were shortlisted and presented as posters at the March 2012 meeting, The Biomedical Basis of Elite Performance, with the gold prize going to a team from Northgate High School, Suffolk.

In collaboration with the team behind I’m a Scientist: Get me out of Here we produced a free debate kit for secondary schools asking, ‘Should ALL drugs be banned in sport?’ This resource was very popular and all 2000 original kits were distributed to school teachers eager to run the activity in their classrooms. We also sponsored one of our Members to give a talk at the Annual Conference of the Association for Science Education in January on the physiological factors that make an athlete succeed.

We increased our engagement in schools-related policy and committed funding to SCORE (Science Community Representing Education). SCORE is a partnership of five leading science organisations and aims to improve school science education in the UK by promoting effective education policy. We contributed to two consultations through SCORE in 2012 on the UK Government’s proposed reforms to GCSEs and A-levels. One of our key messages was that the resulting qualifications should facilitate good progression into higher education.

The Society continued to fund a broad range of schemes to encourage the study of physiology at undergraduate level. One of the most competitive of these is the Vacation Studentship scheme, which allowed 47 undergraduates to complete a summer research project in a laboratory supervised by one of our Members. We also provided funding to five undergraduate students to gain a Home Office Licence for final-year projects involving in vivo research.

A new scheme recognising outstanding undergraduate research was also launched, the Rob Clarke Awards, for the best undergraduate abstracts and posters presented at The Society’s Main Meeting. We selected 18 abstracts for an abstract award and for presentation at Physiology 2012, of which six were then chosen for a presentation award. The awards will run again at IUPS 2013 with a view to attracting a number of international students.

We continued to expand the opportunities for physiologists to gain practical skills for progression into research by introducing two new molecular biology workshops to our well-established techniques workshop programme, both of which received excellent feedback from delegates.

For academics in their first permanent position or those with a teaching focus, we launched two new schemes offering grants of up to £10,000 each to encourage their career development; namely, the Research Grant and David Jordan Teaching Grant schemes. Both schemes were competitive, with eight of 32 Research Grant and three of ten Teaching Grant applications receiving funding.


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Finally, we were pleased to appoint Blair Grubb of the University of Leicester as the new Chair of the Education and Outreach Committee.

Achievements Completed our largest ever nationwide competition for schools, The Science of Sport:

How to Win Gold, and hosted presentations from school students at one of our scientific meetings for the first time

Launched the Rob Clarke Awards to recognise excellence in undergraduate research at The Society’s Main Meeting

Established the Research Grant and David Jordan Teaching Grant schemes, which offer up to £10,000 to early-career researchers and teaching-focused academics respectively

Strategic aims in 2013 and beyond High on the agenda for 2013 will be revisiting the strategy for the Committee and outlining the plans for the coming 3–5 years, which will feed into the wider strategy for The Society. This will involve a review of the strategic aims, followed by an evaluation of current activity in light of these, where appropriate.

In 2013, we plan to increase our engagement with schools by launching another nationwide schools’ competition and developing new practical resources to support physiology teaching in schools. We also plan to increase our contribution to education policy in 2013: by continuing to work with SCORE as the UK Government pursues its reforms to education in schools; and by leading discussions on improving reward and recognition for teaching in higher education.

We will also continue to support our existing schemes for developing undergraduates and early-career researchers.

Objectives for 2013 Develop a set of resources to support the teaching of practical physiology in secondary

schools Launch a second nationwide competition for schools Increase The Society’s engagement in school education policy through continued

contributions to the work of SCORE Lead and coordinate the discussions regarding reward and recognition for teaching in

higher education


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Outreach: Taking physiology to the public

With Olympic fever gripping the UK in 2012, our outreach activities followed suit. A series of events entitled Designer Athletes: Fair Play or Foul? examined the science and ethics of drug use, gene doping and individually tailored training regimes in sport. Aimed at adult audiences, it was run at the Edinburgh, Glasgow and Cambridge science festivals, and in London alongside The Biological Basis of Elite Performance meeting. Each event featured a panel of speakers including sports physiologists, pharmacologists and ethicists, and was chaired by a sports journalist or broadcaster. In Glasgow, Olympic skier Alain Baxter offered his unique perspective on the role of science in sport. In total, 187 members of the public attended these events and at each event they proved eager to quiz the panel.

In the spring, Society funding allowed the online project I’m a Scientist: Get me out of Here to establish a ‘Sports Zone’, in which school students could talk directly to sports physiologists about their research and life as a scientist. It was, unsurprisingly, the most popular zone that term. Five physiologists battled it out to be the final scientist standing following votes by the students – a title taken by Affiliate Member Fiona Hatch, a PhD student at the University of Hull. Questions from students ranged from ‘How much exercise do we need to do to prevent obesity?’ to ‘What is the craziest experiment you have ever done?’

Society-funded Bright Club: Bodies comedy evenings in Brighton and Edinburgh saw a group of physiologists, including five Society Members, exploring the humorous side of their work. These popular events were compered by professional comedians Andy Zaltzman and Angela Barnes to packed audiences.

For younger audiences, The Society ran its popular Modern Pentathlon Challenge stand at both the national and south-west regional Big Bang Fairs and at the Brighton Science Festival. The national Big Bang Fair attracted over 60,000 visitors across three busy days in the National Exhibition Centre, Birmingham. The stand, developed with Valerie Gladwell from the University of Essex, simulates the final event of the Modern Pentathlon, a combined running and target shooting event, allowing visitors to experience the effects of exercise on accuracy. The University of Essex team ran the stand at the Blue Peter Roadshow and at the Hands- (and feet-) on at the Hunterian Museum event hosted by the Royal College of Surgeons. Members in Aberdeen, Norwich and Leeds also ran the activity at locally organised events.

Aside from our sports-related events, The Society attended the Cheltenham Science Festival presenting an event called While You Were Sleeping. Joining anaesthetist and broadcaster Kevin Fong, consultant anaesthetists from UCL, Bath and the Royal Navy discussed the physiology behind the anaesthetist’s role in manipulating consciousness and controlling pain.

The Society awarded 12 outreach grants, totalling £10,000, to Members for their own outreach projects. Funds went to school roadshows, science magazines, lab visits and talks across a broad range of physiology research areas. The first of our new Public Engagement Grants was awarded to Sheila Dargan, Cardiff University, for her project creating resources for school and public audiences, and facilitating engagement opportunities between undergraduate physiology students and local schools. Offering up to £5000 for Members and non-members, the Public


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Engagement Grants seek to fund innovative and creative projects that engage public audiences about physiology research.

Embracing the inaugural Biology Week run by the Society of Biology, The Society appropriated 19 October as ‘Physiology Friday’, using it as a focus for our events. Using Outreach Grant funding, Members across the country put on events aimed at public audiences, raising awareness and appreciation of physiology amongst adult audiences, families and academic colleagues. To stimulate the brain cells of a younger audience we posed the question ‘What do you think is the holy grail of human biology research?’ We were delighted to receive 22 responses, of which one from 16-year-old Oliver Neely, at Tiffin School, was selected and published in Physiology News.

Achievements 187 people attended Designer Athletes: Fair Play or Foul? panel discussion events in four

UK cities 234 UK school students took part in Society-sponsored I’m a Scientist: Get me out of

Here ‘Sports Zone’ Bright Club: Bodies comedy evenings held in Brighton and Edinburgh, bringing physiology

to a new audience Modern Pentathlon Challenge taken to nine events nationwide £10,000 in Outreach Grants supported 12 projects run by Society Members Public Engagement Grants scheme established Established Physiology Friday (19 October) during the first Biology Week


Focusing our work and expanding our reach In 2013 we will use our theme of ‘physiology in extreme environments’ to provide pro-active and thought-provoking events for children and adults. We will seek to have an exciting presence at major science festivals across the UK in the form of interactive exhibits and performance events.

We will also be seeking to increase our sponsorship of outreach events on a local and national level through our grants schemes and to further support activity to promote physiology amongst the general public by our Members.

Objectives for 2013 Take ‘Extreme physiology’ exhibits for a younger audience to Big Bang Fair, and

Cheltenham and Brighton Science Festivals Target an adult audience with ‘Extreme physiology’ activities at the Edinburgh,

Cheltenham and Manchester Science Festivals Target £20,000 of awards through the Public Engagement Grants scheme to Members

and non-members Create a community of Members participating in engagement projects through an online

network Bring the public to the IUPS Congress in Birmingham through a ‘Physiology for All’ stand

and the Mobile Teaching Unit, as well as supporting the public lecture


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Policy: Creating a supportive environment for physiology

Creating a positive environment that supports the research and teaching in physiology is a critical element in The Society’s work. Without the right policy framework, poor decisions can be made on funding physiological research and unintended consequences can arise from new legislation and regulation. The Society therefore adopts both a reactive and pro-active approach to policy development, responding to Government, Parliamentary and European consultations on new regulations and legislation, and engaging with key stakeholders to raise awareness of the discipline and seek to reduce unnecessary regulatory burdens.

In 2012 The Society responded directly to 12 consultations and inquiries that had significant bearing on their work in research and teaching, including responses to the Department for Business, Innovation and Skills (BIS), and both Houses of Parliament. We also worked closely with other societies, including the Society of Biology, the British Pharmacological Society and the Academy of Medical Sciences. Such collaboration increases the leverage we can have on common themes, but where necessary The Society submitted its perspective independently wherever this was required to raise specific issues.

The priorities for The Society have not changed significantly, although new areas have come onto the agenda. The main priorities include:

Teaching and education policy, from schools curriculum to support for teaching in higher education

Support for research: especially the Research Excellence Framework Open access publishing: emphasising the role of Learned Societies and the practical issues

associated with implementation Creating a supportive environment for animal research

Of these arguably the last was the most important in 2012 (and indeed 2013) with the transposition of the EU Directive 2010/63/EU – on the protection of animals used for scientific purposes – into UK legislation. We are indebted to a number of Members on the Policy Committee in particular, who have led the work of The Society on this with great diligence and much work looking through the details of the legislation. Undoubtedly The Society, through contributing Members, has been a key influence, being specifically and positively mentioned in the debate in the House of Commons. As part of our efforts, over 173 Members contacted their MPs, with over 70 MPs receiving letters that had significant impact.

Because of our work, in close collaboration with sister societies and like-minded organisations, the legislation was passed on 17 December 2012 as we had expected, and we avoided a potentially more onerous legislative framework. Not all the work is done as the accompanying Code of Practice and supporting Guidelines are still being worked on in 2013.

The Society recognised the need not only to facilitate the path of the new animal legislation through Parliament, but also to increase the understanding of the general public. In 2012, there was an Ipsos MORI poll that indicated the public had become less trusting of people doing animal


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research. In response, The Society worked with like-minded organisations to make a declaration of openness and this will be followed by a concordat in 2013.

The Society also engaged with MPs, hosting a dinner-discussion with George Freeman, MP for Mid-Norfolk, who was appointed a ‘Life Sciences champion’ by the BIS. The Society also supported the SET for Britain event in Parliament at which nearly 60 early-career life scientists presented their work. In addition we had a presence at the three party conferences, working with other organisations to address key policy issues.

The Policy Committee also launched a regular column, ‘Policy Corner’, in our quarterly magazine, Physiology News. This regular feature aims to provide contextualised policy updates, highlighting the relevance to the membership. Moreover, we have also begun building a database of expertise, enrolling physiologists with an interest in policy to get involved in our actions. We will continue to develop this valuable resource to ensure that we have a bank of experienced physiologists willing to contribute to relevant policy discussions.

The Society also continued to monitor the Accreditation Programme launched by the Society of Biology. With one of the major drivers for this initiative being to ensure a pipeline of essential life science skills, The Society was keen to see how the in vivo sciences would be represented. In 2012, the first accredited degrees were awarded but none in the in vivo sciences; this reflects the complexity of the training required and the limited number of institutions that can provide the appropriate training. In 2013, we will continue to work with the Society of Biology to ensure they develop an accreditation process that is fit for purpose.

Achievements Responded to over 12 consultations independently Had significant positive impact on the transposition of the EU Directive 2010/63/EU on

animal research into UK legislation Laid the foundation for major initiative, ‘The Health of Physiology’, that will have wider

implications for the work of The Society

Strategic aims in 2013 and beyond Towards the end of 2012, The Society laid the foundations for an increase in activity in our policy work by recommending a project investigating ‘The Health of Physiology’. It is envisaged that this project will take the form of a review and report to inform future policy work and The Society’s wider strategy in facilitating physiology. One area that we hope to address through this study is the perception and visibility of physiology in the context of funding and teaching. The project will have a number of phases and will aim to report in Spring 2014.

The start of 2013 does not mark the end of work on the transposition of the EU Directive on animal research. The Code of Practice and the associated Guidelines are critical in determining how it is implemented on the ground.


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Objectives for 2013 To review the strength of physiology across the UK and Ireland; prepare a report to

present the results and map out recommendations for The Society, Government and funding agencies in early 2014

To continue responding to consultations and inquiries that are relevant to The Society and its membership and to build a bank of position statements, all of which will be made available online

To continue to increase Member engagement in policy matters and to build a database of expertise

To continue our work on raising the profile of physiology with funders, Government and other stakeholders

To work with the Society of Biology to develop appropriate criteria for accreditation of in vivo skills that are fit for purpose

To ensure a positive environment for animal research is maintained with the completion of the Code of Practice and related guidance to the recently passed animal research act


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International work: Supporting physiology around the world

The Society has a strategic objective to promote and advance physiology around the globe. We seek to support and, where appropriate, fund education, training and research either directly, through Society initiatives, or indirectly, working in partnership with other organisations and sister societies, especially the International Union of Physiological Sciences (IUPS) and the Federation of European Physiological Societies (FEPS). In addition, The Society is taking a leading role in the international governance of physiology through our ties with emerging countries and working in partnership with physiological societies around the world.

In 2012 The Society’s executive visited Experimental Biology (EB) 2012 in San Diego to discuss a number of substantive issues with the American Physiological Society (APS) that have since led to new developments. The foremost of these has undoubtedly been the agreement to launch a new, open access journal, but it has also led to greater collaboration, especially on education and training matters, as well as allowing us to share views on the future governance of the IUPS in the run-up to the 2013 Congress in Birmingham. This interaction at EB and in Oxford during the previous year at The Society’s annual meeting signifies a growing relationship.

Preparation for IUPS, especially marketing the meeting internationally, was a high priority in 2012. Attendance and marketing at international meetings around the globe allowed us to promote the IUPS 2013 Congress, as well as The Society’s publications and membership (around 30% of our Members are from outside the UK and Ireland). In 2012, this included the annual meetings of the Society for Neuroscience, the Biophysical Society and supporting the Annual Meeting of the Chinese Association of Physiological Sciences (CAPS) in Suzhou.

In 2012, The Society also continued in its international ambassadorial role by sending representatives to deliver guest lectures at both the 6th Annual Congress of the African Association of Physiological Sciences (AAPS) and on a peripatetic lecture tour of India. Our international exchange symposia continued its established cycle with reciprocal symposia being hosted between The Society and the Scandinavian Physiological Society and our continued presence at EB as a formal guest society of the APS. International guests at Physiology 2012 included representatives from the Chinese Association of Physiological Sciences.

Our journals continue to maintain a strong international focus. In 2012, 82.2% of corresponding authors of accepted manuscripts for The Journal of Physiology were from outside UK and Ireland and 85.7% for Experimental Physiology.

In 2012 we received a number of applications for both our Junior and Senior International Research Grants. However, only one Senior International Research Grant was awarded and two Junior International Research Grant winners withdrew after they had been approved.


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Achievements Promoted IUPS 2013 around the world leading to 320 symposia submissions, of which

100 were accepted Signed agreement with APS to launch a jointly owned open access journal and agreed

contract with Wiley to publish and launch it globally in early 2013

Strategic aims in 2013 and beyond The focus in 2013 will be squarely on hosting the 2013 IUPS Congress in Birmingham, with the opportunity to engage Societies from around the world.

Objectives for 2013 Work towards a successful delivery of the 2013 IUPS Congress, including working with

others in the run up to the Meeting of the General Assembly and consultations on governance of the IUPS

To review the International Research Grant scheme and consider the best way for supporting physiology and physiologists outside the UK and Ireland

Sustain and develop our collaboration with sister societies, especially APS


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Signing of report

This report was approved by the Trustees of The Physiological Society and signed on this 21st day of May 2013 on their behalf by:

Jonathan Ashmore

President

Rod Dimaline

Honorary Treasurer


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Independent auditor’s report to Members of The Physiological Society

We have audited the financial statements of The Physiological Society for the year ended 31 December 2012 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an Auditors’ 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinion we have formed.

Respective responsibilities of Trustees and auditor As explained more fully in the Trustees’ Responsibilities Statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors.

Scope of the audit of the financial statements An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the charitable company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the Trustees; and the overall presentation of the financial statements.

Opinion on financial statements In our opinion the financial statements:

give a true and fair view of the state of the charitable company’s affairs as at 31 December 2012 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006


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Opinion on other matter prescribed by the Companies Act 2006. In our opinion the information given in the Trustees’ Annual Report for the financial year for which the financial statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of Trustees’ remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit.

Kathryn Burton (Senior statutory auditor) for and on behalf of haysmacintyre Statutory Auditors

Fairfax House 15 Fulwood Place London WC1V 6AY


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Statement of financial activities for the year ended 31 December 2012

Unrestricted Restricted Total Total Notes Funds Funds 2012 2011 £'000 £'000 £'000 £'000Incoming resources Incoming resources from generated funds: Investment income 265 - 265 370Incoming resources from charitable activities: Trading in furtherance of charitable objectives 2 3,911 2 3,913 3,541

Total incoming resources 4,176 2 4,178 3,911

Resources expended Cost of generating funds: Investment management costs 46 - 46 33Charitable activities: Publications 1,998 - 1,998 1,707Events 1,326 - 1,326 775Membership services 444 - 444 615Education and outreach 577 5 582 423Policy 133 - 133 144Governance costs 228 - 228 231

Total resources expended 3 4,752 5 4,757 3,928

Net outgoing resources (576) (3) (579) (17)Realised gains/(losses) on listed investments 162 - 162 (161)Realised losses on investment properties (254) - (254) -Unrealised gains/(losses) on listed investments 345 - 345 (250)Revaluation on investment properties - - - (125)

Net movement in funds (323) (3) (326) (553)Fund balances as at 1 January 2012 12,140 86 12,226 12,779

Fund balances as at 31 December 2012 16 11,817 83 11,900 12,226

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. The accounting policies on page 35 and the notes on pages 37 to 47 form part of these accounts.


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Balance sheet as at 31 December 2012

Unrestricted Restricted Total Total Funds Funds 2012 2011 £'000 £'000 £'000 £'000Fixed Assets Tangible assets 12 4,438 - 4,438 18Investments 13 6,910 - 6,910 11,458

11,348 - 11,348 11,476Current Assets Debtors 14 2,878 - 2,878 2,909Cash at bank and in hand 382 83 465 540

3,260 83 3,343 3,449Liabilities Creditors: Amounts falling due within one Year 15 (2,791) - (2,791) (2,699)

Net Current Assets 469 83 552 750

Net Assets 11,817 83 11,900 12,226

Funds 16 Unrestricted funds General 11,194 - 11,194 11,293Designated 623 - 623 847

11,817 - 11,817 12,140Restricted - 83 83 86

11,817 83 11,900 12,226

The accounting policies on page 35 and the notes on pages 37 to 47 form part of these accounts. This report was approved by the Trustees of The Physiological Society and signed on this 21st day of May 2013 on their behalf by:

Jonathan Ashmore

President

Rod Dimaline

Honorary Treasurer


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Accounting policies for the year ended 31 December 2012

Basis of preparation of accounts The accounts have been prepared under the historical cost convention with the exception that investment assets are included at mid-market prices as at the Balance Sheet date. The accounts are in accordance with the Statement of Recommended Practice (SORP), ‘Accounting and Reporting by Charities: Statement of recommended practice’, published in March 2005 (revised May 2008), applicable accounting standards and also the Companies Act 2006. The Society has taken advantage of the exemption from preparing a cash flow statement conferred by Financial Reporting Standard No. 1 on the grounds that it qualifies as a small company under the Companies Act 2006.

Fund accounting Unrestricted funds are available for use at the discretion of the Trustees in furtherance of the charitable objects of The Society. Designated funds comprise unrestricted funds that have been put aside at the discretion of The Trustees for particular purposes. Restricted income funds are funds subject to specific restrictions imposed by donors or by the purpose of the appeal.

Incoming resources All incoming resources are accounted for as soon as The Society has entitlement to the income, there is certainty of receipt and the amount is quantifiable. The following specific policies are applied to particular categories of income:

Investment income is included when receivable. Publishing, events and other income are included when receivable. Members’ subscriptions are recorded in the year in which they become due.

Resources expended Expenditure is recognised on an accrual basis as a liability is incurred. Expenditure includes any VAT which cannot be fully recovered, and is reported as part of the expenditure to which it relates.

Costs of generating funds consist of investment management fees and certain legal and professional fees.

Charitable expenditure comprises those costs incurred by The Society in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.

Governance costs include those costs associated with meeting the constitutional and statutory requirements of The Society. These costs include the audit and legal fees, costs linked to the strategic management of The Society together with an apportionment of overhead and support costs.

All costs are allocated between the expenditure categories of the accounts on a basis designed to reflect the use of the resource. Costs relating to a particular activity are allocated directly; others are apportioned on the basis of time spent.


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Grants payable Expenditure on grants is recorded once The Society has made an unconditional commitment to pay the grant and this is communicated to the beneficiary or the grant has been paid, whichever is the earlier. The Society has not made any grant commitments of more than one year.

Pension costs The Trustees of The Society decided to close The Society’s Occupational Pension Scheme to new members from 1 March 2000. From that date, a defined contribution (money purchase) pension scheme has been in place and operated in compliance with the Stakeholder pension requirements.

The Society makes contributions towards the defined contribution schemes, up to a maximum of 10% of basic salary. The amount charged to the accounts in respect of pension costs is the contribution payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

Fixed assets Tangible fixed assets are stated at cost less accumulated depreciation. Minor additions to fixed assets, defined as those costing less than £1,000 each, are expensed in the year in which the cost is incurred. Depreciation is provided to write off the cost of assets by equal monthly instalments over their estimated useful lives as follows:

Freehold property: 50 years Freehold improvements: 15 years Fixtures, fittings and equipment: 3–10 years.

Investments Investments listed on a recognised stock exchange are stated at mid-market value at the balance sheet date.

Net investment gains/losses for the year are credited/charged in the Statement of Financial Activities.


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Notes to the financial statements for the year ended 31 December 2012

1. Investment income 2012 2011 £'000 £'000Dividend income 184 196 Rental income 80 167 Bank deposit interest 1 7

265 370

2. Trading in furtherance of charitable activities 2012 2011 £'000 £'000Publications 3,331 3,313Events 372 95Membership subscriptions 115 120Other 95 13

3,913 3,541

All of The Society’s trading activities are carried out within its prime charitable purposes. The Society was exempt from income tax, corporation tax or capital gains tax on income derived from its trading or charitable activities.


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3. Analysis of resources expended Grant

Other direct

Support Total Total

costs costs costs 2012 2011 £'000 £'000 £'000 £'000 £'000Cost of generating funds Investment management costs - 46 - 46 33Charitable activities: Publications - 1,276 722 1,998 1,707Events 19 987 320 1,326 775Membership services 215 72 157 444 615Education and outreach 202 144 236 582 423Policy - 47 86 133 144Governance costs - 128 100 228 231

Total resources expended 436 2,700 1,621 4,757 3,928

4. Support costs Staff costs Operating costs 2012 2011

£'000 £'000 £'000 £'000Charitable activities 1,106 415 1,521 1,198Governance costs 79 21 100 139

Total 1,185 436 1,621 1,337


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5. Staff costs 2012 2011 £'000 £'000Gross wages and salaries 999 869Social security costs 94 90Pension costs 92 84

1,185 1,043

The average number of persons employed including part-time and agency staff, calculated on a full-time equivalent basis analysed by activity, was:

2012 2011 Number Number

Publications 8.4 7.7Events 4.0 3.4Membership services 1.0 1.0Education & outreach 3.6 2.9Policy 1.0 0.5Central 6.9 7.5

24.9 23.0

Emoluments of employees The number of employees of The Physiological Society 2012 2011whose emoluments fell within the following bands: Number Number £60,001 - £70,000 1 1

£100,001 – £110,000 1 1

During the year, pension contributions on behalf of these staff amounted to £18,000 (2011: £16,000)


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6. Operating costs 2012 2011 £'000 £'000Employee-related costs 67 62Premises 212 114Communications and IT 79 80Postage and printing 8 8Insurance 17 6Irrecoverable VAT 27 10Financial costs 8 7Depreciation 18 7

436 294

7. Governance direct costs comprise 2012 2011 £'000 £'000AGM, Council and committee expenses 57 34Auditors remuneration: - Audit fee 8 8- Non-audit services 5 2Legal and professional 13 5Academic support 45 43

128 92

8. Related party transactions

All Trustees are Members of The Physiological Society. The Trustees received no remuneration in respect of their services to The Society but certain host departments received academic support amounting to £45,000 (2011: £43,000) and Trustees (26 in total) incurred expenses totalling £72,000 (2011: 17, £38,000).


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Academic support

The following Trustees’ institutions received academic support payments during the year:

Trustee Institution £

J F Ashmore University College London 10,000

R Dimaline University of Liverpool 7,000

B Grubb University of Leicester 2,000

M Morrell Imperial College London 2,000

L Robson University of Sheffield 2,000

M J Shipston University of Edinburgh 3,000

K M Spyer University College London 7,000

R Vaughan-Jones University of Oxford 3,000

J P T Ward Kings College London 2,000

D J A Wyllie University of Edinburgh 7,000

£45,000

Free basic membership

The following Trustees received free membership, worth up to £90, in 2012 as follows:

Trustee Reason

J F Ashmore Editor of The Journal of Physiology

S Egginton Editor of Experimental Physiology

L Robson Editor of The Journal of Physiology

S Sage Society representative

M Shipston Society representative

K M Spyer Honorary Member

D Thwaites Society representative

R Vaughan-Jones Editor of The Journal of Physiology

J Ward Editor of Experimental Physiology

M White Editor of Experimental Physiology


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Editorial support

During the year, the institutions of senior journal editors received a total of £89,000 (2011: £115,000) in respect of editorial support and stationary allowances. This included a payment to the University of Birmingham in respect of M White, a Trustee, totalling £2,000.

Travel grants

Travel grants were awarded to one Trustee in the year. The two applications by R Burton, totalling £700, were approved by an independent panel of Members of The Society composed of not less than three Members who are not Trustees.

9. Leasing commitments

At 31 December 2012, The Society had the following leasing commitments:

An annual commitment for rent under a non-cancellable operating lease in respect of occupation of Third Floor, Peer House, Verulam Street, London. The future commitment for rent was £44,000 (2011: £44,000) per annum. The lease, which was due to expire on 1 April 2014, was surrendered along with a premium of £29,000 on 4 March 2013.

An annual commitment for rent under a non-cancellable operating lease in respect of occupation of Building 4A, The Michael Young Centre, Purbeck Road, Cambridge. The future commitment for rent is £26,000 (2011: £38,000) per annum. The lease expires on 06 September 2013.

10. Capital commitments

Capital expenditure of £63,000 (2011: none) had been authorised and contracted but not provided at 31 December 2012. This amount was in respect of lift shaft works at Hodgkin Huxley House.


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11. Grants payable The Society awarded grants to a number of institutions and individuals in the furtherance of its charitable activities. 2012 2011 2012 2011 No. No. £'000 £'000Events Early-career bursary scheme 24 40 4 6Non-Society symposium 15 16 10 14Special symposium 1 3 5 15 Membership services Travel grant 432 435 215 217Paton prize bursary fund - 3 - 2 Education and outreach Vacation Studentships 48 43 51 45Outreach Grants 12 14 10 12International Junior Research Grant 2 3 6 14International Senior Research Grant - 2 - 14Microelectrode Workshop 1 1 15 10Departmental Seminar Scheme 29 27 20 27David Jordan International Teaching Fellowship Fund 1 - 5 -Research grants 8 - 80 -Teaching grants 2 - 15 - Policy Daphne Jackson Trust - 1 - 30

575 588 436 406


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12. Tangible fixed assets

Freehold Freehold Fixtures,

fittings and

property improvements equipment Total £'000 £'000 £'000 £'000Cost At 1 January 2012 - - 49 49 Additions 3,500 758 189 4,447Disposals - - (35) (35)

At 31 December 2012 3,500 758 203 4,461

Accumulated depreciation At 1 January 2012 - - 31 31Charge for the year 6 6 10 22Disposals - - (30) (30)

At 31 December 2012 6 6 11 23

Net book value at 31 December 2012 3,494 752 192 4,438

Net book value at 31 December 2011 - - 18 18


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13. Investments 2012 2011Analysis of investments at 31 December by category of holding £'000 £'000Investment properties - 1,670Listed investments 6,862 9,511

6,862 11,181Cash held as part of the portfolio 48 277

6,910 11,458

Analysis of investments at 31 December by location Investments held in the UK 6,486 11,252Investments held outside the UK 424 206

6,910 11,458

Analysis of movements in investments Valuation at 1 January 2012 11,181 11,113Additions 1,200 4,594Disposals in the year (proceeds £5,773,000 (2011: £3,990,000)) (5,864) (4,151) Net unrealised gains/(losses) 345 (375)

Valuation at 31 December 2012 6,862 11,181

The Trustees do not consider any particular investment holding to be material in the context of the investment portfolio. 14. Debtors 2012 2011

£'000 £'000Trade debtors 21 75Other debtors 2,733 2,661Prepayments and accrued income 124 173

2,878 2,909

15. Creditors 2012 2011

£'000 £'000Trade creditors 138 63Other taxes and social security costs 27 26Other creditors 16 11Accruals and deferred income 2,610 2,599

2,791 2,699


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16. Analysis of total funds Opening Incoming Outgoing Net Closing balance resources resources gains Transfers Balance £'000 £'000 £'000 £'000 £'000 £'000Unrestricted funds Designated funds: IUPS fund 801 131 (309) - - 623 Website project fund 26 - - - (26) -Property task force fund 8 - (1) - (7) -Publications task force fund 12 - (8) - (4) -

847 131 (318) - (37) 623 General funds 11,293 4,045 (4,434) 253 37 11,194

Total unrestricted funds 12,140 4,176 (4,752) 253 - 11,817

Restricted funds: David Jordan international teaching fellowship fund 48 1 (5) - - 44 Paton prize bursary fund 22 - - - - 22 Other restricted funds 16 1 - - - 17

Total restricted funds 86 2 (5) - - 83

Total funds 12,226 4,178 (4,757) 253 - 11,900

In November 2006, the Trustees agreed to set aside £1,000,000 to underwrite potential commitments for the XXXVII IUPS Congress in 2013. £309,000 was charged to the fund in the year with £131,000 received in income; primarily exhibition and sponsorship. The fund will continue to incur significant costs in the run up to the meeting in July 2013, including a payment of £106,000 in respect of venue hire in May 2013 and speaker expenses of ~£309,000 from August to December 2013. Registration and exhibition income began to be collected from 1 September 2012 by BioMedEx Ltd, a third-party conference and exhibition management service.

In November 2010, the Trustees approved the designation of three additional funds which earmarked new projects that commenced in 2011. The projects involved an upgrade of The Society’s websites, a review of its accommodation strategy and an analysis of its publications arrangements.

The Society’s main website upgrade and the new Understanding Life website were launched in 2011. In 2012, further development of The Society’s online education and resources presence was not progressed. The balance of £26,000 was transferred back to the general fund and on-going running costs will be charged to this fund thereafter.

The Property Task Force met two times in 2012 and incurred costs, including legal and professional fees, of £1,000. Following the acquisition of The Society’s new headquarters in Farringdon, the Task Force was discontinued and the balance of £7,000 was transferred back to the general fund.

The Publications Task Force met three times in 2012 and incurred costs, including legal and professional fees, of £8,000. Following the successful renegotiation of The Society’s main publishing contract and the launch of Physiological Reports, the Task Force was discontinued and the balance of £4,000 was transferred back to the general fund.

In 2008, The Physiological Society received a bequest from the estate of Professor David Jordan. As a fitting tribute to his memory, the Trustees proposed a new scheme, which commenced in 2010, that will


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help support physiology teaching worldwide. A maximum of one grant will be awarded per annum. In 2012, a grant of £5,000 was awarded to Nicholas Freestone (Kingston University).

The Paton Prize Bursary Fund awards bursaries to promote the study of the history of major concepts that have shaped modern physiology. There was no award in 2012.


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Standing information

The Physiological Society is registered in England as a company limited by guarantee, No. 323575.

Registered Charity No. 211585 www.physoc.org

Registered Office: Hodgkin Huxley House, 30 Farringdon Lane, London EC1R 3AW

Tel: +44 (0)20 7269 5714

Trustees in 2012

Jonathan Ashmore Stephen Bolsover Rebecca Burton William Colledge Patricia de Winter

(to 5 July 2012) Rod Dimaline Julian Dow Stuart Egginton Michael Evans Blair Grubb

(from 5 July 2012) Judy Harris

(from 5 July 2012) Susan Jones

(to 5 July 2012) Ian McGrath

(to 5 July 2012) Mary Morrell

Ken O’Halloran (from 5 July 2012)

Louise Robson (to 5 July 2012)

Stewart Sage Lucia Sivilotti

(from 5 July 2012) Mike Shipston Mike Spyer

(to 5 July 2012) David Thwaites

(from 5 July 2012) Andy Trafford Richard Vaughan-Jones

(from 5 July 2012) Jeremy Ward

(to 5 July 2012) Michael White David Wyllie

Chief Executive Philip Wright

Company Secretary Casey Early

Bankers Child & Co, 1 Fleet Street, London EC4Y 1BD

Solicitors Russell-Cooke, 2 Putney Hill, Putney SW15 6AB

BPE Solicitors LLP, St James’ House, St James Square, Cheltenham, GL50 3PR

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

Investment fund managers Bestinvest (Brokers) Ltd, 6 Chesterfield Gardens, London W1J 5BQ

Investment property managers Bidwells, Bidwell House, Trumpington Road, Cambridge CB2 9LD

Annual Report 2012

Documents

Transcript of Annual Report 2012