EUROPEAN ORTHODONTIC SOCIETY TRUSTEES' REPORT AND … · EUROPEAN ORTHODONTIC SOCIETY TRUSTEES' REPORT AND ... The European Journal of Orthodontics had another ... A major update

Charity Registration No. 1095190

Company Registration No. 4539916 (England and Wales)

EUROPEAN ORTHODONTIC SOCIETY

TRUSTEES' REPORT AND ACCOUNTS

FOR THE YEAR ENDED 31 DECEMBER 2007


INFORMATION

Trustees Dr S Affolter

Professor H.Bantelon

Dr S.Cunningham

Professor L Dermaut

Professor N.Erverdi

Professor A Kuijpers-Jagtman

Professor P.Leitao

Professor F McDonald

Dr O.Mauchamp

Dr L.Medin

Professor R.Miethke

Dr M.Ovsenik

Dr K.Roald

Dr N.Samoylova

Professor D.Suarez Quintanilla

Professor I Thesleff

Professor A.Zentner

Charity number 1095190

Company number 4539916

Principal address Flat 20, 49 Hallam Street

London W1W 6JN

Auditors Gerald Edelman

25 Harley Street

London W1G 9BR

Bankers Alliance & Leicester

Carlton Park

Narborough

Leicester

LE19 0AL

Solicitors Berwin Leighton Paisner

Bouverie House

154 Fleet Street

London

EC4A 2JD

Investment advisors J.M.Finn & Co

4 Coleman Street

London

EC2R 9HA


CONTENTS

Page

Trustees' report 1 - 6

Statement of Trustees' responsibilities 7

Independent auditors' report 8 - 9

Statement of financial activities 10

Balance sheet 11

Notes to the accounts 12 - 20


TRUSTEES' REPORT


- 1 -

The Trustees present their report and accounts for the year ended 31 December 2007.

The accounts have been prepared in accordance with the accounting policies set out in note 1 to the accountsand comply with the charity's memorandum and articles of association, the Companies Act 1985 and theStatement of Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005.

Structure, governance and management

The company is limited by guarantee and was established on 18th September 2002. The business of thesociety was previously carried on via an unincorporated charity.

The Trustees, who are also the directors for the purpose of company law, and who served during the yearwere:

Term expires

Dr S Affolter (Secretary EBO co-opted) June 2009

Professor H.Bantelon (Past President) June 2010

Dr S.Cunningham (Associate Editor co-opted) Appointed 17 September 2007 June 2010

Professor L Dermaut (Honorary Secretary) June 2012

Professor N.Erverdi (President Elect) June 2015

Dr A.Johal Retired 2 October 2007

Professor M.Kaminek Retired 2 October 2007

Professor A Kuijpers-Jagtman (Past President) June 2009

Professor P.Leitao (Past President) June 2012

Professor F McDonald (Honorary Editor) June 2010

Dr O.Mauchamp (Honorary Councillor) June 2011

Dr L.Medin (President EFOSA co-opted) June 2010

Professor R.Miethke (Past President) June 2011

Professor B Melsen (Past President) Retired 25 July 2008

Dr M.Ovsenik (Vice President) June 2014

Dr K.Roald (Honorary Councillor) June 2011

Dr N.Samoylova (Honorary Councillor) June 2011

Professor D.Suarez Quintanilla (President Elect) June 2016

Professor I Thesleff (President) June 2013

Professor A.Thordarson (President Elect) June 2017

Professor A.Zentner (Honorary Treasurer) June 2011

The Council consists of the following officers, namely a President, Vice President, five Presidents Elect, threePast Presidents, three Honorary Councillors, an Honorary Secretary, an Honorary Treasurer and an HonoraryEditor.The term of each office varies. Members of the Council are appointed as follows:

a) The Presidents Elect and all of the Honorary positions are elected by a ballot of the Council and/or themembership.b) At the conclusion of each AGM the President Elect that has served the longest automatically takes up theoffice of President.The term of office is one year.c) Upon the expiry of their term of office the outgoing President automatically suceeds to the office of VicePresident and the outgoing Vice President succeeds to the office of Past President.

No member of the Council can serve more than two terms in the same office.

None of the Trustees has any beneficial interest in the company. All of the Trustees are members of thecompany and guarantee to contribute £10 in the event of a winding up.


TRUSTEES' REPORT (CONTINUED)


- 2 -

Policy and long term planning decisions regarding the affairs of the Society are made at Council meetingswhich are attended by all Trustees and take place three times a year. Issues are resolved on a majority vote.Each member of the Council has one vote except those Trustees who have been co-opted.

The management on a day to day basis is controlled by the Executive Council which meets four or more timesa year. Administrative matters are undertaken by Sue Austin and her support staff based at the office ownedby the Society in Hallam Street, London W1.

The Trustees have undertaken a full risk assessment of the charity's operations. The principal risks have beenidentified and systems established to mitigate those risks.

Objectives and activities

The principle object of the Society is to advance all aspects of orthodontics and its relations with the collateralarts and sciences for the public benefit. In particular focus is made on the following:

-to raise the standard of the members involved in dental practice activities and in particular the speciality oforthodontics-the publishing of journals and periodicals-grants towards research and development on social sciences and humanities

In order to achieve these objectives the society carries on the following activities:

Congress

The 83rd Congress and 100th anniversary of the Society was held in Berlin, Germany. A total of 3,203delegates from 77 countries attended the meeting which was held in conjunction with the DeutscheGesellschaft für Kieferorthopädie (German Orthodontic Society).

Prior to the start of the Congress, the 4th meeting of the EPSOS, arranged by students from the University ofBerlin, and the postgraduate course, both sponsored by the EOS, took place. Professor Sabine Ruf of theUniversity of Gießen gave the postgraduate course on 'Treatment principles of patients with an Angle Class IIdivision 1 malocclusion'. The pre- and post-congresses courses were given by Vittorio Cacciafesta of Italy on'Treatment of adult patients with severely compromised dentitions' and Axel Bumann of Germany on 'Howmuch does the temporomandibular joint affect orthodontic treatment'. All the courses were well attended. More than 400 research posters were on display during the Congress.

The Sheldon Friel Lecture entitled 'Myths and legends in orthodontics' was given by Professor Frans van derLinden of the Netherlands. The keynote lecturers during the meeting were: Thomas Schnalke (Germany),Fraser McDonald, Neil Pender, Kevin O'Brien and William Shaw (U.K), Birte Melsen (Denmark), RobertIsaacson, Robert Keim, David Turpin, James Vaden and Rohit Sachdeva (USA).

The Houston Oral Research Award was given to Dr Rui Xie of the Netherlands chosen by a committeeconsisting of Luc Dermaut (Belgium), Hans-Peter Bantleon (Austria) and Irma Thesleff (Finland). The threeEOS Poster awards judged by Lars Medin (Sweden), Kari-Line Roald (Norway) and Neil Pender (U.K.) weregiven to Dr Aikaterina Mesimeri (Germany), Dr Verena Nedwed (Germany) and Dr Jun-ichi Takada (Japan).The winner of the Beni Solow Award for the best article published in the European Journal of Orthodonticschosen by the Editorial Board was given to Dr Riyad Al-Qawsami of the USA for their paper 'Root resorptionassociated with orthodontic force in inbred mice: genetic contributions'.




- 3 -

The European Journal of Orthodontics had another successful year. There was a further increase in thenumber of submitted articles. In addition, a special issue was produced for the 100th anniversary of seminalpapers from 1907 to 1976 and also a disk containing the history of the Society and photographs from 1907 to2007. These were distributed free to the members of the Society.

The Houston Research Poster Award was given to Dr Nazan Adali of the U.K chosen by a committeeconsisting of Fraser McDonald (UK), Paul-Georg Jost-Brinkmann (Germany) and Timo Peltomäki(Switzerland).

European Board of Orthodontists

The examination committee consisted of Dr Lorenz Moser (Chairman and Examiner, Italy), Dr Stefan Affolter(Secretary, Switzerland), Dr Mauro Cozzani (Executive Officer and Examiner, Italy), Dr Guido Herzog(Examiner, Switzerland) and Dr Frank Weiland (Examiner, Austria). Ten candidates applied to sit the Board,three of whom withdrew before the examination. he records of two candidates were incomplete and theywere not examined. Four candidates were accepted as members. They were: Arturo Fortini (Italy), MassimoLupoli (Italy), Patrick Vallon (France) and Kyoto Takemoto (Japan).

In order to improve communication between EBO members, a meeting is to be arranged and will take placelater in the year, probably in Vienna.

European Orthodontic Teachers' Forum

The 2nd meeting of the Teachers' Forum was attended by 65 delegates. Advances were made towardscertification/accreditation of orthodontic postgraduate programmes. The minutes of the meeting and a list ofthe delegates attending is available online at www.eoseurope.org.

Society contacts

The co-operation with the European Federation of Orthodontic Specialist Associations has continued with theEOS representative, Professor R-R Miethke, attending the meetings of the EFOSA and their President, LarsMedin, attending the meetings of the Council of the EOS.

Distinguished Teacher Award

The Distinguished Teacher award for 2007 was given to Professor Christoph Bourauel of Germany who is anexpert in Materials Science Relating to Orthodontics. He will undertake four one day lectures in Sofia,Bulgaria, Rome, Italy, Barcelona Spain and Amsterdam, Netherlands.

Website

A major update of the EOS website is currently taking place to make it more user friendly, to enable membersof the Society to pay their subscription online and to provide both members of the Society and the public witheasier access to relevant information.




- 4 -

Grant making

The Society makes a number of awards and grants which include the following:

a) The Houston Memorial Research ScholarshipEvery three years a scholarship of up to £60,000 is financed in order to allow a member to travel to anothercentre and carry out research into a specific problem under the guidance of a senior research worker.

b) Research GrantsThese grants are normally between £5,000 and £15,000 and can be used for equipment, travel expenses,subsistence or other areas that it is felt would assist in research.

c) Distinguished Teachers AwardA sum of up to £5,000 can be used for travel expenses and subsistence to assist an outstanding lecturer toundertake a tour of Europe.

Policies are in place as to the processing of grant applications and the making of these awards which can beobtained upon request. In all cases an applicant must be a current member of the Society.

A committee consisting of Dr Yves Bolender (France), Dr Agneta Linder Aronson Karsten (Sweden) andProfessor Fraser McDonald (U.K.) had considered eight applications submitted for a research grant, togetherwith reports from expert referees.

It was agreed that two of the applications should be funded: Jochem Verstappen of the Netherlands andMaisa Seppala of the U.K. Further consideration will be given to two applications if the researchers are able tocomply with the suggestions of the Committee.

Achievements and performance

Investment performance The investment portfolio as a whole fell a total of 2% in value overall in the year under review while the valueof the equity fund fell 2% compared to a 3% rise in the FTSE 100.The fixed interest portfolio, held for incomepurposes, maintained its value during the period. The Trustees consider that overall investment performancewas somewhat unsatisfactory. However a reinvestment has taken place,with a greater proportion of theportfolio held in fixed interest bonds, which will reduce the equity exposure. The Trustees acknowledge thatthe return on the equity portfolio in terms of capital growth needs to be regularly reviewed to attempt to ensurethe targets set are actually met.

As previously mentioned the portfolio is now split into three different funds following a reorganisation in theyear under review.

The investments in the 'Houston Memorial Reserve Fund' and the 'Awards and Distinction Fund' are investedin low to medium risk fixed interest bonds to provide a sustained level of income as detailed in note 17 to theaccounts. The value of these bonds has not materially altered since the balance sheet date.

The investment in th,e 'Development and Research Fund' is made with a target of achieving a balance ofincome and capital growth. Upon reviewing this fund the Trustees agreed that a realistic projected overallcapital return in the medium to long term is a rate of 5% per annum. However the value of the equity portfoliohas fallen by in excess of 15% since the balance sheet date due to the recent difficult market conditions.




- 5 -

Financial review

The net incoming resources for the year amounted to £163,620 (2006-£192,650). The decrease arosebecause of the much lower surplus of £112,270 (2006-£153,165) that arose in respect of the 2007 annualcongress held in Berlin.

The Statement of Financial Activities shows that income from operating activities amounted to £1,088,122(2006-£1,005,390). The increase of £82,732 once again stems from additional income (£38,083) that arosefrom the annual congress. The income on the sale of publications issued by the society also increased to£108,070 (2006-£65,206). Investment income for the year also increased to £44,819 (2006-£33,458). Themembership subscription was £50,637 an increase of £5,555 on the prior year.

Expenditure increased by £111,762 of which £62,792 related to the annual congress. Research grants andother awards were made of £63,679 (2006-£53,215) whilst overall management costs, both direct andindirect, increased by £37,448 to £185,220 (2006-£147,772) primarily as a result of an increase in the costs ofthe Society's journal. This was partly offset by a fall in support costs of £13,663 due to reduced overheads.Governance costs at £6,932 were similar to the prior year.

Scrutiny of the balance sheet reveals net assets of the society of £1,794,177 compared to the prior year figureheld by the society of £1,654,811 representing an increase of £148,366. Cash was retained of £251,307 at thebalance sheet date. The Trustees hold a leasehold property at Hallam Street, London W1 which is utilised forthe purposes of the management and administration of the society. For this reason the property has beenincluded in the accounts at cost as allowed by the SORP. The Trustees are of the opinion that the actualmarket value is substantially in excess of cost.

The Trustees have reviewed the ongoing funding requirements with regard to future research grants andother awards to be made by the Society. It was agreed that separate designated funds be established in orderthat sufficient income should accrue on an annual basis to finance anticipated payments. Three funds havebeen established as described in note 17 and a transfer has been made from unrestricted funds todesignated funds in the year of £613,760 in order to fulfil this objective.The total of £1,399,391 was held asdesignated funds at the balance sheet date. Details of the assets held within designated funds can be found innote 18.

At December 2007 the Charity had free reserves of £78,001 (excluding funds designated for other purposesand tangible fixed assets). The Trustees have reviewed the position as to the utilisation of reserves as detailedout above resulting in the increase in designated funds. It has been decided that unrestricted funds whichhave not been designated for a specific use should be maintained at a level at least equivalent to six monthsexpenditure. This amounts to £82,835 when the annual congress and journal publication costs are excluded(as they are self funding).

The investment portfolio held as at December 2007 had a market value of £1,166,434 aimed at producingincome and capital growth to support the Society's charitable activities. The portfolio is invested in UK equitiesand quoted fixed interest bonds . A reorganisation of the portfolio, following the reinvestment resulting fromthe establishment of the new designated funds, resulted in the holding of quoted bonds increasing to 61%(2006-21%) in value of the portfolio. This reflects the requirement to provide a sustained income level to fundanticipated grant and other expenditure requirements.

Disclosure of information to auditors

Each of the Trustees has confirmed that there is no information of which they are aware which is relevant tothe audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriatesteps to identify such relevant information and to establish that the auditors are aware of such information.




- 6 -

Auditors

In accordance with section 385 of the Companies Act 1985, a resolution proposing that Gerald Edelman bereappointed as auditors of the company will be put to the Annual General Meeting.

On behalf of the board of Trustees

Professor McDonald

Trustee

Dated: 21 October 2008


STATEMENT OF TRUSTEES' RESPONSIBILITIES

- 7 -

Company law requires the Trustees to prepare accounts for each financial year which give a true and fair viewof the charitable company's state of affairs at the end of the year and of its income and expenditure for thatperiod.

In preparing those accounts, the Trustees are required to:

- select suitable accounting policies and then apply them consistently;

- make judgements and estimates that are reasonable and prudent;

- prepare the accounts on the going concern basis unless it is inappropriate to presume that the company willcontinue in business.

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracyat any time the financial position of the charitable company and to enable them to ensure that the accountscomply with the Companies Act 1985. They are also responsible for safeguarding the assets of the companyand hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.


INDEPENDENT AUDITORS' REPORT

TO THE MEMBERS OF EUROPEAN ORTHODONTIC SOCIETY

- 8 -

We have audited the accounts of the EUROPEAN ORTHODONTIC SOCIETY for the year ended 31December 2007 set out on pages 10 to 20. These accounts have been prepared under the historical costconvention as modified by the revaluation of certain fixed assets and the accounting policies set out on page12.

This report is made solely to the company's members, as a body, in accordance with Section 235 of theCompanies Act 1985. Our audit work has been undertaken so that we might state to the company's membersthose matters we are required to state to them in an auditor's report and for no other purpose. To the fullestextent permitted by law, we do not accept or assume responsibility to anyone other than the company and thecompany's members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of Trustees and auditors

As described on page 7, the Trustees, who are also the directors of EUROPEAN ORTHODONTIC SOCIETYfor the purpose of company law, are responsible for the preparation of accounts in accordance withapplicable law and United Kingdom Accounting Standards. Our responsibility is to audit the accounts inaccordance with relevant legal and regulatory requirements and United Kingdom Auditing Standards.

We report to you our opinion as to whether the accounts give a true and fair view and are properly preparedin accordance with the Companies Act 1985. We also report to you if, in our opinion, the Trustees' Report isnot consistent with the accounts, if the charity has not kept proper accounting records, if we have not receivedall the information and explanations we require for our audit, or if information specified by law regardingtrustees’ remuneration and transactions with the charitable company is not disclosed.

We read other information contained in the Trustees' Report, and consider whether it is consistent with theaudited accounts. We consider the implications for our report if we become aware of any apparentmisstatements or material inconsistencies with the accounts. Our responsibilities do not extend to any otherinformation.

Basis of opinion

We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) issued bythe Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to theamounts and disclosures in the accounts. It also includes an assessment of the significant estimates andjudgements made by the Trustees in the preparation of the accounts, and of whether the accounting policiesare 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 weconsidered necessary in order to provide us with sufficient evidence to give reasonable assurance that theaccounts are free from material misstatement, whether caused by fraud or other irregularity or error. Informing our opinion we also evaluated the overall adequacy of the presentation of information in the accounts.


INDEPENDENT AUDITORS' REPORT (CONTINUED)

TO THE MEMBERS OF EUROPEAN ORTHODONTIC SOCIETY

- 9 -

Opinion

In our opinion:- the accounts 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 2007 and of its incomingresources and application of resources, including its income and expenditure, for the year then ended;

- the accounts have been properly prepared in accordance with the Companies Act 1985; and

- the information included in the Trustees report is consistent with the accounts

Gerald Edelman

Chartered Accountants

Registered Auditor

25 Harley Street

London

W1G 9BR

Dated: 21 October 2008


STATEMENT OF FINANCIAL ACTIVITIESINCLUDING INCOME AND EXPENDITURE ACCOUNTFOR THE YEAR ENDED 31 DECEMBER 2006

- 10 -

Unrestricted Designated Total Total

funds funds 2007 2006

Notes £ £ £ £

Incoming resources

Incoming resources from generated funds

Investment income 2 22,230 22,589 44,819 33,458

Incoming resources from charitable activities 3 1,043,303 - 1,043,303 971,932

Total incoming resources 1,065,533 22,589 1,088,122 1,005,390

Resources expended

Charitable activities

Expenses arising from charitable activities 853,891 - 853,891 753,651

Grants payable 3,500 60,179 63,679 53,215

857,391 60,179 917,570 806,866

Governance costs 6,932 - 6,932 5,874

Total resources expended 4 864,323 60,179 924,502 812,740

Net incoming/(outgoing) resources before transfers 201,210 (37,590) 163,620 192,650

Transfers between funds 17 (613,760) 613,760 - -

Net incoming/(outgoing) resources before revaluations (412,550) 576,170 163,620 192,650

and investment disposals

(Loss)/gains on revaluation and disposal of investments (7,566) (7,688) (15,254) 34,945

Net movement in funds (420,116) 568,482 148,366 227,595

Fund balances at 1 January 2007 814,902 830,909 1,645,811 1,418,216

Fund balances at 31 December 2007 394,786 1,399,391 1,794,177 1,645,811


BALANCE SHEETAS AT 31 DECEMBER 2007

- 11 -

2007 2006Notes £ £ £ £

Fixed assets

Tangible assets 12 316,785 319,061

Investments 13 1,166,434 837,884

1,483,219 1,156,945

Current assets

Debtors 14 101,540 40,549

Cash at bank and in hand 251,297 532,326

352,837 572,875

Creditors: amounts falling due within one year 15 (41,879) (84,009)

Net current assets 310,958 488,866

Total assets less current liabilities 1,794,177 1,645,811

Income funds

Unrestricted funds 394,786 814,902

Designated funds 17 1,399,391 830,909

1,794,177 1,645,811

The accounts were approved by the Board of Trustees on 21 October 2008 and were signed on their behalf by:

Professor F.McDonald

Trustee


NOTES TO THE ACCOUNTSFOR THE YEAR ENDED 31 DECEMBER 2007

- 12 -

1 Accounting policies

1.1 Basis of preparation

The accounts have been prepared under the historical cost convention modified to include therevaluation of certain fixed assets.

The accounts have been prepared in accordance with applicable accounting standards, the Statementof Recommended Practice, "Accounting and Reporting by Charities", issued in March 2005, theCharities Act 1993 and the Companies Act 1985.

1.2 Incoming resources

Subscriptions received from members are accounted for in the year in which they fall due. As such feesare invoiced in advance the accounts include a creditor for deferred income of £32,337 (2006-£78,616).Income receivable regarding the Annual Congress is included in the accounts on an accruals basis.Investment income received in the form of dividends are credited to the accounts when received. Allother income is included on an accruals basis.

1.3 Resources expended

Liabilities are recognised as resources expended as soon as there is a legal or constructive obligationcommitting the charity to the expenditure. All resources expended are accounted for an accruals basisand the irrecoverable amount of VAT is included in the expense to which it relates.

The costs relating to charitable activities comprise sums expended by way of grants, and also the costsof services and activities provided to members of the Society. The latter costs include those incurreddirectly and those costs of an indirect nature necessary to support them.

Governance costs comprises all expenditure relating to the public accountability of the charity and itscompliance with regulation and good practice. These costs include those related to strategic planning,legal and professional, audit fees and other costs of complying with constitutional and statutoryrequirements.

1.4 Tangible fixed assets and depreciation

Tangible fixed assets other than long leasehold property are stated at cost less depreciation.Depreciation is provided at rates calculated to write off the cost less estimated residual value of eachasset over its expected useful life, as follows:

Fixtures, fittings & equipment 10% Reducing balanceComputer equipment 25% Reducing balance

Long leasehold property is included in the accounts at acquisition cost as it is retained for charity use.

No depreciation is provided in respect of long leasehold property.

1.5 Leasing and hire purchase commitments

Rentals payable under operating leases are charged against income on a straight line basis over theperiod of the lease.

1.6 Investments

Investments are included in the financial statements at market value.

Any gains and losses arising in respect of the revaluation and disposal of investments are included in theStatement of Financial Activities.


NOTES TO THE ACCOUNTS (CONTINUED)FOR THE YEAR ENDED 31 DECEMBER 2007

- 13 -

1 Accounting Policies (continued)

1.7 Foreign currency translation

Transactions denominated in foreign currencies are recorded at the rate ruling at the date of thetransaction.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the ratesof exchange ruling at the balance sheet date. All differences are included in net outgoing resources.

1.8 Accumulated funds

Designated funds comprise funds which have been set aside at the discretion of the trustees for specificpurposes. The purposes and uses of the designated funds are set out in the notes to the accounts.

1.9 Taxation

As a registered charity the Society is exempt from taxation on its activities which fall within the scope ofsection 505(1) of the Taxes Act 1988 and section 256 of the Taxation of Chargeable Gains Act 1992.

2 Investment income

2007 2006£ £

Dividends receivable 19,152 18,166 Bond interest 7,889 6,881

Bank Interest receivable 17,778 8,411

44,819 33,458

3 Income arising from charitable activities

2007 2006

£ £

Members subscriptions and other fees 150,637 145,082

Annual conference 780,941 759,044

Examinations 3,655 2,600

Publications 108,070 65,206

1,043,303 971,932



- 14 -

4 Total resources expended

Staff Depreciation Other Total Total

costs costs 2007 2006£ £ £ £ £

Charitable activities

Operating activities - direct costs - - 103,056 103,056 51,945

Operating activities - support costs 42,180 2,407 37,577 82,164 95,827

Annual conference - - 668,671 668,671 605,879

Grants payable - - 63,679 63,679 53,215

42,180 2,407 872,983 917,570 806,866

Governance costs - - 6,932 6,932 5,874

42,180 2,407 879,915 924,502 812,740

5 Expenses Arising Directly From Operating Activities

2007 2006£ £

European Board of Orthodontists exam costs 6,861 11,548

Journal publications 90,161 37,546

EPSOP 3,051 -

Other costs 2,983 2,851

103,056 51,945

6 Support Costs

2007 2006Relating to operating activities £ £

Staff salaries 42,180 58,636

Office overheads 18,520 20,687

Council meeting expenses 14,407 7,739

Depreciation 2,407 2,893

Bank charges 3,474 5,036

Other costs 1,176 836

82,164 95,827



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7 Grants payable

Unrestricted Designated Total Total

funds funds 2007 2006

£ £ £ £

Grants to individuals

Research grants (9) - 50,179 50,179 46,715 Other grants (7) 3,500 10,000 13,500 6,500

3,500 60,179 63,679 53,215

8 Annual congress results

Summary of 2007 Berlin Congress results 2007 2006

£ £

Income

Registration and other fees 705,591 529,430

Exhibition income 73,057 210,885

Other income 1,000 1,250

779,648 741,565

Expenditure

Exhibition costs 69,532 69,390

Printing, postage and stationery 24,006 7,006

Hire of venue and associated costs 285,836 177,534

Hotel and travel expenses 40,514 56,095

Catering and entertainment costs 51,289 130,595

Management and administration 180,464 163,821

Other conference expenses 17,030 1,438

668,671 605,879

Net income from 2007 Congress 110,977 135,686

2006 Congress - additional income received 1,293 17,479

Total net income 112,270 153,165



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9 Governance costs

Total Total

2007 2006

£ £

Audit fees 6,357 5,329

Legal and professional 575 545

6,932 5,874

10 Trustees

None of the Trustees (or any persons connected with them) received any remuneration during the year,but 15 of them were reimbursed a total of £20,402 (2006-£17,389) in respect of travelling, hotel andother expenses incurred in connection with the business of the Society.

11 Employees

Number of employees

The average monthly number of employees during the year was:2007 2006

Number Number

Administration 1 2

Employment costs 2007 2006

£ £

Wages and salaries 34,736 53,125

Social security costs 3,784 5,511

Other costs 3,660 -

42,180 58,636

There were no employees whose annual emoluments were £50,000 or more.



- 17 -

12 Tangible fixed assets

Longleaseholdproperty

Computers Fixtures,fittings &

equipment

Total

£ £ £ £

Cost

At 1 January 2007 302,231 27,044 40,613 369,888 Additions - 132 - 132

At 31 December 2007 302,231 27,176 40,613 370,020

Depreciation

At 1 January 2007 - 22,439 28,389 50,828 Charge for the year - 1,184 1,223 2,407

At 31 December 2007 - 23,623 29,612 53,235

Net book value

At 31 December 2007 302,231 3,553 11,001 316,785

At 31 December 2006 302,231 4,605 12,225 319,061

All of the tangible fixed assets are retained for charity use.

13 Investments

£

Cost

Brought forward 708,951

Additions 658,773

Disposals (315,904)

Carried forward 1,051,820

Revaluation 114,614

Market Value 1,166,434

Represented by :-

UK Quoted equities 458,016

UK Fixed interest stocks 226,983

Eurobonds 481,435

1,166,434



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14 Debtors 2007 2006

£ £

Other debtors 55,475 8,029

Prepayments and accrued income 46,065 32,520

101,540 40,549

15 Creditors: amounts falling due within one year 2007 2006

£ £

Taxes and social security costs 923 -

Accruals 8,619 5,393

Subscriptions received in advance 32,337 78,616

41,879 84,009

16 Share capital

The company has no share capital being limited by guarantee. The members will contribute a maximumof £10 each in the event of liquidation.



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17 Designated funds

The income funds of the charity include the following designated funds which have been set aside out ofunrestricted funds by the Trustees for specific purposes.

Houston Memorial Reserve FundThis fund is utilised for the provision of special annual awards to deserving students judged by a panel ofthe Trustees and presented at the Annual Congress.This includes a scholarship for research of £60,000paid every three years equivalent to £20,000 per annum. Transfers were made to this fund in prior yearswhich increased the balance to £400,000 which the Trustees believed would be sufficient to fund theongoing commitments (assuming a targeted a rate of return of 5%). Following a review by the investmentmanagers it was confirmed that, in their opinion, the actual fund required to meet the set objective was£340,000. An adjustment of £60,000 has been made via transfers in the Statement of Financial Activitiesto reflect this revised position.

Development and Research Fund (formerly Research Grants Fund)This fund is utilised to pay grants and scholarships to research students on a discretionary basis as well asfunding any new initatives determined by the Board which enhance the aims and objectives of the Society.A transfer was made in the year of £558,760 to provide additional income to finance anticipated expansionin the activities of the Society in this area. The Society has targeted the provision of grants from this fund at£50,000 per annum (in line with total payments in recent years). In order to finance this provision on anongoing basis a fund of circa £1 miliion will need to be established which assumes a rare of return of 5%.Ffurther transfers to this fund will be regularly made based on the results of the Annual Congress.In theyear under review the sum of £50,000 was transferred in this manner.

Awards and Distinction FundThis fund is utilised to pay grants on a discretionary basis to teachers where special merit has beenachieved. The anticipated expenditure on this fund is £10,000 per annum which includes the Beni Solowaward, the Sheldon Friel Award and the Distinguished Teachers Award. Transfers were made to this fundin prior years which increased the balance to £200,000 which the Trustees believed would be sufficient tofund the ongoing commitments (assuming a targeted a rate of return of 5%). Following a review by theinvestment managers it was confirmed that, in their opinion, the actual fund required to meet the setobjective was £265,000. An adjustment of £65,000 has been made via transfers iin the Statement ofFinancial Activities to reflect this position.



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17 Designated funds (continued)

The movements on designated funds during the year was as follows:£

Balance at 1 January 2006 830,909

Investment income 22,589

Losses on investment assets (7,688)

Transfers from unrestricted funds 613,760

Grants paid (60,179)

Balance at 31 December 2006 1,399,391

Represented as follows:

Houston Memorial Reserve Fund 347,181

Research Grants Fund 783,619

Awards and Distinction Fund 268,591

1,399,391

18 Analysis of net assets between funds

Unrestrictedfunds

Designatedfunds

Total

£ £ £

Fund balances at 31 December 2007 are represented by:Tangible fixed assets 316,785 - 316,785

Investments - 1,166,434 1,166,434

Current assets 119,880 232,957 352,837

Creditors: amounts falling due within one year (41,879) - (41,879)

394,786 1,399,391 1,794,177

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