Annual Review

AICR has completed another successful year. In spite of increasing pressures in the ever more competitive charities sector, income was sustained at £16.7 million (£16.6 million in 2004/05). Support and governance costs increased to £0.8 million (£0.7 million in 2004/05) whilst fundraising costs were held at £5.4 million (£5.7 million in 2004/05).

Research grants with a first-year total cost of almost £2.9 million were awarded to support sixty eight research projects in sixteen countries. A further research fellowship was awarded, bringing the total to four, all in the UK. The total funding liability over the next six years is £23 million and is the principal reason for holding reserves of £18 million.

Shortly after the financial year end, two Directors resigned from the Board.   Professor Roland Wolf, with more than a decade of service on the Scientific Advisory Committee and the Board, has other increasingly heavy commitments and Mr Alasdair MacIntyre resigned for personal reasons. The Board thanks Professor Wolf and Mr MacIntyre for their years of service and wishes both well.

The annual audited accounts for 2005/06 were prepared in accordance with the latest statement of recommended practice (SORP 2005) which calls for all liabilities to be included in the statement of income and expenditure. Liabilities falling due after the end of the financial year (i.e. second and third year payments for research project grants already awarded, and payments for Fellowships up to six years in advance) were previously displayed in a note to the accounts. They now have to be included in the accounts, giving rise to an apparent large deficit. However, although showing liabilities (i.e. expected expenditure) up to six years in advance, we cannot take into consideration expected income, giving rise to the deficit. There has, however, been no material change in the underlying financial health of the Association. The abbreviated accounts at the end of the Review show financial years 2003/04 and 2004/05 restated in line with SORP 2005.

March 2006 saw the introduction in Scotland of the Act banning smoking in public places. Auguries of doom and economic collapse in the licensed trade proved un­founded, and indeed many pubs have reported improved takings as trade has increased. Life in Scotland has become markedly more pleasant. By this single Act the Scottish Executive has done more for the health of the Scottish public than any other single initiative since it first took office in 1999. The benefits are so obvious that the question is “Why did we wait so long?” The introduction of similar legislation in England and Wales cannot come too soon, bringing ever closer the prospect of a smoke-free and healthier United Kingdom.