The Society’s budget aims to fund its events, grants and publications from its income. The Society’s financial position has been monitored regularly by the Council and in discussions with representatives of Investec Wealth and Investment, our investment advisers. Dividend income from investments within the financial year amounts to £14,636, a return of 3.56% against 4.0% in the previous year. The market value of the Society’s investments in this year has risen by 0.2%. The investment advisers continue to work towards achieving the level of income that the Society has previously enjoyed. Our liquid reserves in the Charities Deposit Fund have increased only slightly thanks to the small amount of interest that the fund attracts. The overall general unrestricted funding base of the Society has increased by some 4.5% to £445,460. This includes cash held by the Charities Deposit Fund and Investec at the year end of £53,464.

Reserves policy
The Society’s reserves comprise an unrestricted fund derived from past benefactions and its annual subscriptions, including the proceeds from the sale of the Philosophical Hall to Leeds City Council in 1921. The fund has increased in value over the years as income exceeded expenditure. Since the Society adopted its new constitution in 1997, Council’s aim in the medium term has been to balance its expenditure and income without depleting the capital value of its investments. The Society’s income and expenditure do, however, vary from year to year depending on a number of factors. The Council therefore considers it prudent to hold liquid reserves in the Charities Deposit Fund and current bank account. The policy on reserves is reviewed annually by the Council as part of its annual budget review.

Investment policy
There are no restrictions in the Society’s Memorandum and Articles on the Society’s power to invest. The Council’s investment objectives are to maintain a level of income sufficient to fund the Society’s activities, while maintaining the capital value of its invested assets over the long term in line with inflation. To this end, it is the Society’s normal practice to reinvest realised gains on its assets. The Council has delegated the management of its investments on a discretionary basis to Investec Wealth and Investment.

Risk management
1) Income: The investment managers pursue an active investment policy on the Society’s behalf. The arrangements are regularly reviewed by the Trustees.
2) Expenditure: Expenditure on individual Grants, Publications and Events usually represents a small part of total expenditure and risks are minimised by standard procedures for authorisation of all financial transactions. The potential risks at the Society’s events are considered as part of the planning for them, and appropriate steps are taken, including the arrangement of Public Liability insurance as necessary.
3) The quality of the Society’s Events and Publications and the outcome of Grants that have been awarded are reviewed by the Trustees at their regular meetings so as to ensure that all the Society’s activities are of a high standard consonant with its Aims.
The Society has taken advantage of the small companies’ exemption in preparing this Directors’ Report.

Approved by the members of the Council on 14 November 2014 and signed on their behalf by
J. M. Hill (President) and J. R. Evans (Treasurer).

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