 Welcome to the Treasurer's Presentation of the Society's Annual Report and Financial Statements of 2019-20, and this year the presentation is only at Unfraid Online for obvious reasons. The Finance Committee examined the draft report and accounts in detail, and they were then approved by Council. The auditors gave us a clean bill of health and certified that we are a going concern for the next 18 months sign off of the accounts. That's what the auditors are obliged to do as long as we are a going concern. They're not obliged to look beyond 18 months. It doesn't mean that we're not being concerned after the next 18 months. The accounts have already been published around the Society's website as well as the Parity Commission's website. The purpose of this presentation is to explain the financial position of the Society both in 2019-20, that is the financial year ending last March 2020, and going forward beyond that, and to give you an opportunity. The Annual Report and Accounts is in normal structure as shown on this slide. It's the usual format to comply with the statutory requirements, and there are four elements to the report. As you can see, the narrative of activities and outcomes, the legal structure and governance, the auditors' report, and then finally detailed financial information. I'd just like to emphasise the importance of the first element, the narrative, which includes information on the outcomes secured by the Society over the air. The Society is a charity, and as such we're required to demonstrate wider public benefit. That section of the report is good. So, some headlines, and first some headlines about the fellowship itself, and the graph you can see on the slide shows the trend in the number of fellows from 2013 to March 2020. Over this period, the number of fellows has been fairly static, an increase of only around 100 over seven years, and that's at a time when, despite the economic situation, the profile of the heritage sector and interest in the past continues to grow. Fellow subscriptions are, of course, a key part of our income. If we are to be financially sustainable going forward, it is critical that we find ways to grow the fellowship, and that's not happening at the moment, as you can see. And I'll come back to that point a little later. Headline figures for our income, first of all, total income for the Society in Lucerne Limited, which is our trading company, as you know, for Kalmsgall, which is 2.57 million, down 2.5% from the previous year, 2018-19. And there were two main reasons for that. The first unrestricted legacies and donations were 8.5,000, whereas in 2018-19, they were 64,000. In 2019-20, we did not receive any restricted legacies, whereas in 2018-19, we received 14,000. So that's one reason for the decline in income. The other is the trading income from Kalmsgall, which is 91,166 pounds, was lower by 1.7% than the previous year. The open season in 2019, whilst I think as you're aware, curtailed to only five months, April to August in order to prepare for the major conservation, restoration, and improvement works part of Kalmsgall, and a part of the future project, funded by the National Lottery Heritage Fund, 79%, and other donations, 21%. Now, headline figures for expenditure. Consolidated expenditure was down 105,000, that's 4.4%. This was due to several factors, but the most significant were Kalmsgall Manor, past, present, and future project. Most of the spend on this has been capitalised, and therefore excluded from financial activities. Melt's charges as a expenditure on the project were 84,000. In 2018-19, 176,000. Capitalised costs on the project were 815,000, compared to 104,000 in 2018-19. And a second significant factor was Burlington House and, of course, the rental costs and related legal and professional fee. In 2018-19, we incurred back rent, which was a one-off cost. Our rental costs in 2019-20 are lower, so that's artificial. Headline figures on the net position then, taking into account the income and the expenditure. So, as you can see on the slide, our net financial position, before gains in our investment, is therefore a surplus of 312,000. Up by 14 compared to 2018-19. And some headline figures on our investments. The investment portfolio was down from 16,279,315, to 15,637,572, as at the end of March 2020. And you can see the figures on the slide. And, of course, markets dipped during March, the last month of the financial year, on the emergence of COVID-19. You may recall that in June 2018, we had drawn down 655,000 from our capital, the ever-escalating rent up until 2023. And I'll come back to the rental position later in the presentation. With uncertainty gripping the markets, we completed further capital drawdown of 765,000 in May 2020. Despite this drawdown and turbulence in the markets, the December 2020 valuation of our investments, that is, a month ago, had improved on the valuation in March 2020. And you can see that figure. A little more detail on our income streams. The society's income streams in 2019-20 comprised, as you can see on the pie chart, fellow subscriptions at 22%. Investment income 21%, trading activities, that's Lucerne Limited and Elbsgott in the main, 15,000, sorry, 15,000. Donations excluding funding raised for Elbsgott Manor, past presence is huge, 4%, Elbsgott Manor, past presence and future grants and donations 34%, and sales 3%. So that shows the major positive impact of Elbsgott Manor, past presence, and how this is helping with our finances rather than hindering, because it contributes to our overall running costs. Looking to the future, it will be valuable to continue to have externally funded projects like Councilman and past presence, which can help with our running costs in this way. A bit more detail on the expenditure. Expenditure is split between restricted and unrestricted funds. Performance of these funds is closely monitored, and they are detailed in the narrative section of the report. The breakdown of expenditure is as follows. Conservation activity, which includes activity at Elbsgott, plus the costs related to the Councilmanor, past presence and future project, the Moritz grants to churches and the care of our own collections, 34%. Research activities, including the costs of running the library, 137,000, support costs for research activities, 166,000, and research grants, 82,000, are 21%. Dissemination, including the publications programme, the costs of communicating with fellows, and the running of our lecture programmes, 32%. Fundraising, which includes the costs incurred to raise voluntary income, that is the development of it and the costs of rentals and room hire, 13%. Allocated across all of these areas are the costs of providing support, which include finance and administration, human resources, health and safety, and the maintenance of our office space in the Burlington House. A few words about our rent for Burlington House. A bit of history for this, which I hope you're all familiar with, from 2014-15 until February 2019, there was no indication of how fast rents would eventually rise, although we knew they were going to rise. We assumed a 12% annual increase. In order to meet this projected rise, we made some library staff redundant, as well as other cost-saving measures. Well, I have to say making the library staff redundant and in the context of making the library more efficient and delivering a better service. Even an increase of 12% per annum would seem very challenging, and our unrestricted income was growing at a much slower rate. In 2017, it was considered prudent to commission a report on costs and options and relocation to the Burlington House. In 2018, we also liquidated 655,000 of unrestricted rentals in order to pay rent and to contribute to ongoing rent increase. In early 2019, the true extent of proposed rent increases to the Burlington House finally became apparent with the issuing of rent demands by the government for background. Leads were far higher than the society at Crude were met by allocating John Casey the best of 527,000 pounds. The cash we put aside will now only cover the increasing rent payments until March 2023. After that, rent would have to be paid either by further ongoing liquidation of capital or from other unrestricted income streams. Both of these options would result in cuts to our charitable activities delivering public benefit and would eventually be unsustainable. I stress that, and we've said before in Salon, that if we are faced with the rent increases as projected by the government, then we are in an unsustainable position. To put it simply, the present and projected rent for the Burlington House, as shown on the slide, is unaffordable and cannot be paid beyond March 2023, an existential threat. Looking at another challenge that we face, which is our pension contribution, and that is the increasing level of those pension contributions. We're a member of the university's superannuation scheme. The fund is in deep trouble. Contributions rose earlier this year as a result of the 2018 valuation. In October 2019, employees have been contributing 9.6% of pay, and society is contributing 21.1% and you can see that in the form of figures. And thereafter, well, it's not clear how the rates will change as a result of fluctuations in the market due to Brexit. Although they are highly likely to increase gain to a level that will be frankly unaffordable, many employees and employers. So some conclusions and indeed reflections are looking to the future. The society's future financial viability depends on the resolution of two key costs. First, either realistic financial arrangements for the tenure of Burlington House have to be secured from the government, or new premises will have to be found adequately held to the library in our collections, be affordable, and easily accessible to fellows and to the public. Either option may mean a strategic re-evaluation of the nature and type of design we want to be in the future. If you know, council has recently launched a public campaign to persuade the government to agree terms which will enable us to stay in the level, which I stress throughout has been our preferred one. Secondly, our membership of the university superannuation scheme is likely to become unaffordable. On the other hand, we cannot afford to buy ourselves out of the scheme, even where we are allowed to mitigate the risks. We have set up a service company with a separate pension scheme to employ any new staff, so that our liabilities in the university superannuation scheme will not increase even more. Turning to income, we continue to subsidize our running costs year on year by drawing down capital. This is not a satisfactory position. We must increase our income by growing the fellowship substantially, but also by introducing a new membership scheme. And indeed, if we can resolve the lease issue for Burlington House, we will have the opportunity to reconfigure the building so that there can be increased public access and a greater ability to generate income, room higher and even better. Please, I would urge you, if you have any questions or observations on this financial report, please don't hesitate to email myself or Jerry Guam who is our Head of Finance and Operations, and the email addresses are there for you on this final slide. Thank you very much.