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SCIENTIFIC AND MEDICAL NETWORK CHARITABLE TRUST TRUSTEES' REPORT AND AUDITED FINANCIAL STATEMENTS FOR THE YEAR

ENDED 31 DECEMBER 2006

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SCIENTIFIC AND MEDICAL NETWORK CHARITABLE TRUST CONTENTS

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Charity information Trustees' Annual Report Independent Auditors' Report Statement of Financial Activities Balance Sheet Notes to the Financial Statements

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SCIENTIFIC AND MEDICAL NETWORK CHARITABLE TRUST CHARITY INFORMATION FOR THE YEAR ENDED 31 DECEMBER 2006 Legal and administrative details
CHAIRMAN OF TRUSTEES TRUSTEES Janine Edge, M.A., M.Sc.

Janine Edge, M.A., M.Sc. Dr Paul Filmore, B.Sc., Ph.D., M.Inst. P., C.Phys., M.B.A., ILTM, FRSA Oonagh M Harpur, B.A. Rupert Stewart-Smith M.A. Max Gascoyne Payne, M.A., B.Sc. Spofforths LLP
1 Horsham Gates North Street Horsham West Sussex RH13 5PJ

AUDITORS

BANKERS

Lloyds TSB PLC Shrewsbury Shropshire 295267

CHARITY REGISTRATION NUMBER

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SCIENTIFIC AND MEDICAL NETWORK CHARITABLE TRUST TRUSTEES' ANNUAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2006
The Trustees submit their annual report and the audited financial statements for the year ended 31 December 2006. The Trustees have adopted the provisions of the Statement of Recommended Practice (SORP) "Accounting and Reporting by Charities" issued in March 2005 in preparing the annual report and financial statements of the charity. Structure, governance and management The Scientific and Medical Network Charitable Trust was established by a Trust Deed dated 1 July 1986 and registered by the Charity commission on 17 October 1986. Objects The Charity's objects are the advancement of learning and religion in any part of the world by the study of the various aspects of Truth represented through arts, the sciences and all religions in which may be found spiritual truths necessary for man's fullest development through his understanding the laws of life and living.
Trustees Chairman of Trustees Janine Edge, M.A., M.Sc. Trustees Janine Edge, M.A., M.Sc. Oonagh M Harpur, B.A. Max Gascoyne Payne, M.A., B.Sc. Dr Paul Filmore, B.Sc., Ph.D., M.Inst., P. C.Phys., M.B.A. Rupert Stewart-Smith M.A.

The Trust is managed by the Board of Trustees. The existing Trustees have the power to appoint new Trustees when a vacancy arises. The Trustees do not retire by rotation so new trustees are only appointed when a vacancy arises as a result of retirement or removal, or when specialist knowledge is needed. The methods adopted for recruitment of a new trustee, and the procedures to be adopted for induction, are therefore decided by the existing trustees in the light of the particular vacancy to be filled. No policies and procedures have been adopted for ongoing training of trustees. Principal address
PO Box 11 Moreton-in-Marsh Gloucestershire GL56 OZF

Objectives, achievements, performance and financial review


The Trust aims to achieve its objectives through its support of the Scientific and Medical Network ("SMN") (company number 4544694, charity number 1101171). This associated charity was set up to undertake activities formerly conducted by the Trust and has similar objects to the Trust. During the year, the Trust made a grant of 14,000 to SMN for their general projects and 7,500 for educational projects. The Trust received a donation of shares valued at 72,525 from the GB Blaker Charitable Trust. The Trustees have designated these funds to be used specifically for education projects until 1 January 2027 when any remaining balance shall be transferred to income funds.

Investment policy

The investment policy of the Trust is to invest in low risk investments which maintain a balance between capital growth and investment income and the trustees consider that this investment objective was met during 2006.
Future plans

The charity plans to continue to support the activities of SMN by the making of grants as approved by the trustees from time to time.

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SCIENTIFIC AND MEDICAL NETWORK CHARITABLE TRUST TRUSTEES' ANNUAL REPORT


FOR THE YEAR ENDED 31 DECEMBER 2006
Reserves

The Trust does not maintain a specific amount of general funds as monies will not be donated unless sufficient funds are available

Risk Assessment The Trustees review financial and other risks when appropriate and have established procedures to ensure that all transactions and projects are properly authorised. Statement of Trustees' Responsibilities The Trustees are responsible for preparing the report and financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice. Under the Charities Act 1993 the Trustees are required to prepare a statement of accounts for each financial year which gives a true and fair view of the state of affairs of the charity at the end of the year and of its incoming resources and application of resources in the year. In preparing the statement, the Trustees are required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the statement of accounts; prepare the accounts on the going concern basis unless it is inappropriate to presume that the charity will continue its operations. The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the charity at that time and to enable the Trustees to ensure that any statement of account prepared by them complies with the regulations under Section 42(1) of the Charities Act 1993. They are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. This report was approved by the board on 4 U,V- ZOq and signed on behalf of the board by

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SCIENTIFIC AND MEDICAL NETWORK CHARITABLE TRUST INDEPENDENT AUDITORS' REPORT TO THE TRUSTEES

We have audited the financial statements of the Scientific and Medical Network Charitable Trust for the year ended 31 December 2006 which comprise the Statement of Financial Activities, the Balance Sheet and the related notes. Th ese financial statements have been prepared in accordance with the accounting policies set out therein. This report is made solely to the charity's trustees, as a body, in accordance with Section 43 of the Charities Act 1993 and regulations made under section 44 of that Act. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the charity's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Respective responsibilities of trustees and auditor The responsibilities of trustees for preparing the Trustees' Annual Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) are set out in the Statement of Trustees' Responsibilities. We have been appointed as auditors under section 43 of the Charities Act 1993 and report in accordance with the regulations made under section 44 of that Act. Our responsibility is to audit the accounts in accordance with relevant legal and regulatory requirements and International Standards on Auditing (UK & Ireland).
We report to you our opinion as to whether the financial statements give a true and fair view and are properly in accordance with the Charities Act 1993. We also report to you if, in our opinion, the Trustees' Annual Report is not consistent with the financial statements, if the charity has not kept proper accounting records, or if we have not received all the information and explanations we require for our audit. We read the Trustees' Annual Report and consider the implications for our report if we become aware of any apparent misstatements within it.

Basis of opinion We conducted our audit in accordance with International Standards on Auditing (UK & Ireland) issued by the Audit Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts and disclosures in the financial statements. It also includes an assessment of the significant estimates and judgements made by the trustees in the preparation of the financial statements and of whether the accounting policies are appropriate to the charity's circumstances, consistently applied and adequately disclosed. We planned and performed our audit so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the financial statements are free from material mis-statement, whether caused by fraud or other irregularity or error. In forming our opinion we also evaluated the overall adequacy of the presentation of information in the financial statements.

Opinion In our opinion the financial statements: - give a true and fair view, in accordance with United Kingdom Generally Accepted Accounting Practice, of the state of the charity's affairs as at 31 December 2006 and of its incoming resources and application of resources for the year then ended; and - have On properly prepared in accordance with the Charities Act 1993.

Spofforths LLP Chartered Accountants and Registered Auditors 1 Horsham Gates North Street Horsham West Sussex RH13 5P]

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SCIENTIFIC AND MEDICAL NETWORK CHARITABLE TRUST STATEMENT OF FINANCIAL ACTIVITIES


FOR THE YEAR ENDED 31 DECEMBER 2006 Unrestricted funds
Incoming resources Voluntary income Donations Incoming resources from generated funds Investment income Total incoming resources

Notes

Restricted funds

Permanent endowment fund

2006

2005 E

72,525 14,018 86,543

72,525 14,018 86,543

17,212 17,212

Resources expended Cost of generati ng funds


Investment management costs Cost of charitable acti vities Costs of grants made Governance Total resources expended 2 488 21,500 1,410 23,398 488 21,500 1,410 23,398 19,317 1,175 20,492

Net outgoing resources before recognised gains and losses

63,145

63,145

(3,280)

Other recognised gains and losses:


Gains on investment assets 2,965 3,303 6,268 6,645

Net movement on funds


Funds at 1]anua ry 2006 Funds at 31 December 2006 8

66,110
178,775 244,885

1,218 1,218

3,303
135,751 139,054

69,413
315,744 385,157

3,365
312,379 315,744

The notes on pages 7 to 9 form part of these financial statements.

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SCIENTIFIC AND MEDICAL NETWORK CHARITABLE TRUST BALANCE SHEET AS AT 31 DECEMBER 2006
Notes 2006 383,060 2005 E

Fixed assets Investments Current assets 3

325,661

Cash at bank and in hand Creditors: amounts falling due within one year
Net current assets

10,506

27,492

(8,409)

(37, 409) 2,097


385,157

(9,917)
315,744

Funds Permanent endowment Unrestricted funds Restricted funds

5 5 5

139,054 244,885

1,218
385,157

135,751 178,775 1,218 315,744

Th e financial stat

Tents were app roved by the board on

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Oonagh M Ha / - - he Edge, M.A., M.Sc.

------------------------

Rupert Stewart-Smith M.A.

Dr Paul Filmore, B.Sc., Ph.D., M.Inst. P., C.Phys., M.B.A., ILTM, FRSA

The notes on pages 7 to 9 form part of these financial statements.

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SCIENTIFIC AND MEDICAL NETWORK CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2006


PRINCIPAL ACCOUNTING POLICIES

Basis of accounting The financial statements have been prepared under the historical cost convention, with the exception of investments which are included at market value. The financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting and Reporting by Charities" published in March 2005 and the Charities Act 1993. Fund accounting The unrestricted funds are available for use at the discretion of the trustees in furtherance of the general objectives of the charity and which have not been designated for other purposes. Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the charity for particular purposes. The cost of raising and administering such funds are charged against the specific fund. Investment income is allocated to general unrestricted funds and investment gains are allocated between unrestricted and endowment funds. Incoming resources All voluntary income is included in income on receipt except where the donor requires the sum to be invested to provide income for the Charity's purposes, in which case it is treated as a permanent endowment.
Donations are recognised as income when received.

Investment income is included in the accounts on a receivable basis and includes amounts accrued for outstanding refunds of tax deducted at source. Resources expended All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category.
Investments

Investments are stated at market value at the balance sheet date. The Statement of Financial Activities includes the net gains and losses arising on revaluations and disposals throughout the year.

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SCIENTIFIC AND MEDICAL NETWORK CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006
Total resources expended
Investment management costs Investment management costs Auditors remuneration Travelling General expenses Donation to the Scientific and Medical Network - general - education projects 488 Costs of grants made 14,000 7,500 21,500

Governance 1,410 1,410

2006 488 1,410 14,000 7,500 23,398

2005 E 479 1,175 143 103 18,592 20,492

488

There were no employees in this year or the previous year. No trustee received any remuneration in respect of their services as a trustee during the year (2005 -nil). No expenses were reimbursed in the year (2005 -146).

Fixed asset investments 2006 325,661 72,525 (21,394) 6,268 383,060 2005 f 351,072 (79,500) 47,444 6,645 325,661

Market value at 1 January 2006 Additions

Disposals Movement in cash Net realised and unrealised investment gains


Market value at 31 December 2006

2006 Cost

2006 Market value

2005 Cost

2005 Market value

17,000 Halifax 6.375% Notes 4,000 M&G Securities Limited 82,000 Charities Aid Income Fund 2,760 Associated British Foods 3,400 Bankers Investment Trust 2,000 BP 550 Rio Tinto 1,125 BAE Systems 2,100 Reed Elsevier 46 Comcast Corporation 7,000 Close Finsbury Eurotech Trust 969 Glaxosmithkline 38 Telent WTS Cash held by stock brokers 17,108 29,068 49,825 18,018 12,750 11,640 13,899 4,447 12,443 907 2,660 13,779 153,730 340,274

17,962 64,448 51,000 22,784 13,634 11,350 14,949 4,790 11,771 994 2,625 13,023 153,730 383,060

E
17,108 29,068 49,825 18,018 175,124 289,143

E
18,453 55,427 53,501 23,156 175,124 325,661

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SCIENTIFIC AND MEDICAL NETWORK CHARITABLE TRUST NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2006
4 Creditors: amounts falling due within one year
Accruals and deferred income Loan

2006
8,409 -

2005
1,409 36,000

8,409

37,409

Funds At 1 January 2006 Incoming resources Resources expended At 31 December Revaluation 2006 139,054

Permanent endowment fund

135,751

3,303

Unrestricted funds
General funds Designated funds - education projects 178,775 178,775 13,778 72,765 86,543 ( 15,898) (7,500) (23,398) 2,354 611 2,965 179,009 65,876 244,885

Restricted fund
Network Schools speaker service GP Library project 763 455 1,218 763 455

1,218

During the year, the trustees received a donation from GB Blaker Charitable Trust. The trustees have designated these funds for use on education projects until 1 January 2027 when any capital remaining will be transferred to general unrestricted funds. 6 Analysis of assets between funds
Unrestricted Fund balances at 31 December 2006 are represented by: funds Restricted funds Permanent endowment funds 139,054 139,054 383,060 10,506 (8,409) 385,157 Total funds

Investments Cash Current liabilities

244,006 9,288 (8,409) 244,885

1,218 1,218

Intentions During 2006, the trustees expressed an intention to make an additional grant of up to 20,000 to The Scientific and Medical Network (company number 4544694, charity number 1101171) if The Scientific and Medical Network experienced severe cash flow problems, and at the request in writing by The Scientific and Medical Network. No request has since been made for the grant.

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